Hi guys,
I've just finished reading Steve's newest book and thought it to be very informative and practical.
I am working towards savings for a deposit on my first IP and unfortunately it will take a while with my current personal cash flow as I am on minimum wage with a girlfriend who is a stay at home mother to my 2 year old daughter. The good news is I'm young with plenty of time to set my family up.
I am now going to be focusing on creating an income accelerator and don't know where to really start. I understand this is a very broad question but would anyone have any advice on something small and easy to get into so that I can start a part time business to create extra income? I am in sales and believe myself to be a very well spoken individual with great communication skills, I am also good at general administration duties and competent in most computer programs. My best trait is that I'm really willing to put in the hard work to get my business up and running so if I have to learn a completely new industry or market I'd be more than happy to do so.
The amount of money I'd be expecting from the business in the initial stage is any profit at all because I will be investing it into a super saver account and looking for other ways to create passive income before having enough capital for that first property purchase.
If you're still with me then thanks heaps for reading and any advice you could offer I would greatly appreciate.
Regards,
Matt Horne.
Matt, are you in sale (ie register jockey) or sales – business to business? If you move across into b2b sales, then you would have greater opportunity not to be on the minimum wage but working for a base + commission (often uncapped).
Starting a business will require spending capital to start up as well as ongoing expenses – do you have the capital for the start up?
Hey Scott,
Im internal sales to trades people, so not B2B.
I do not have much capital base for a business so I was thinking of a service style business to start off which would only require a laptop, car and phone which I have. What do you think?
Hi Matt
Look forward to having a chat with you when i get back from the UK as i have a few ideas which might help you with such Income Acceleration.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hey Richard, that sounds very exciting and can't wait to talk to you!
When are you getting back from the UK?
I note that Steve mentioned in the book that he was never able to make share trading work and I would add my vote to removing it completely from anything related to income enhancement or extra cash on the side, for a few hours a week, the kind of dream most people making money from selling the dream (rather than actually trading) would have you believe.
Most difficult way to make easy money I have yet encountered! Sales on the other hand would have to be one of the more useful and valuable skills you can teach yourself in life, we all have our own bias on viewing the world however
Transitioning and improving the sales skills into a business that has potential sounds like a decent idea.Hi. What involves in an income accelerator and how does it work? Thanks.
Jenny an Income Accelerator is a way of increasing your short term income to enable you to be able to invest in more long term property.
Whilst my background in the UK was Currency / Share trading i wouldn't recommend this as a strategy for investors.
Ideally potential investors want to reduce their non deductible debt whilst increasing their deductible debt.
When they have paid off their non deductible debt they can look at reducing the deductible debt and producing true cash flow.
Rental income cash flow can then replace PAYG income.
An Income Accelerator could be a small one off development that you do or a short term investment etc to increase your income. Such an increase could be a modest weekly / monthly / annual amount to boost serviceability.
They only 2 factors which limit investors are serviceability and equity and with a strategy in place to overcome these then there is no reason why an investor cannot substantially increase their portfolio.
It is something we will be covering at our Property Know How Club meetings over the coming year.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
In his most recent market update session in Adelaide, Steve talked about his income accelerator, which was the internet business he still runs to this day (PropertyInvesting.com).
As mentioned, income accelerators are any business/activity that you can take on that will increase your income further, and could even include a second job after hours or freelancing in a skill that you have, however the best ones are less dependent on your time. Things like writing an eBook that you sell – spend the time once to write it, and then sell it many times over.
Kevin.
We feel reasonably lucky in that our income accelerator is the cash flow from our vendor finance properties, i.e. we didn't have to move out of real estate to establish our income accelerator. This positive cash flow now supports our buy and hold portfolio and our lifestyle, i.e. we live off it.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thank you all for the great feedback.
I have been trying to think of a low cost business I can set up part-time from home. I have been thinking of creating some business cards and advertising myself as an "Independent Sales Consultant" for small businesses. The rough idea is I can approach businesses to use my service without any upfront fee at all, the way I'd make money is take a commission from the sale. This would then bring them extra business that they didn't have to work for or pay anyone for, which I believe would leave both parties happy.
Another part of the business could be a service of assessing the store (usually a retail outlet) for the way in which they present specials and what types of sales they have to better market their company.
All that I'd need for this business is a laptop, car, phone and business cards and I'd be good to start.
I have been trying to think what my next move should be and this sounds like a very hopeful approach to achieving extra cash to put away for investing.
If anyone has any experience in something like this I would be really interested in hearing your thoughts and any advice you might offer.
Regards,
Matt.
Hi Matt,
It is always a good idea to look at other ways at generating income, When i first started buying property I always did a couple of things, I was working full time in logistics and I was working one day a week at a phone store, The full time wage I used to save in an ING direct account and the Phone store was for living expenses.
All great things do take time and even at 28 I will do a couple of things to get extra money, I work full time as a State manager for a shipping company, we own a tattslotto store that provides extra cash flow (two years ago it was eating my cash flow lol) and as of MARCH I will be lecturing at a TAFE in Melbourne ( twice a week).
Hi Matt,
It is always good to look at other ways at generating an extra income, When I first started buying property I was working two jobs at the time, One for living and one for saving. 10 years later at 28 years old, I still do a few things.
1) Full time –PAYG as a state manager for TAS/ADL/VIC in shipping, 2) Tattslotto store – 1.5 years ago it was eating my cash flow but a bit of changes have made it turn into a good business 3) I will be lecturing two times a week at TAFE, I will be teaching logistics, on a Saturday morning and weekday.
I am always working on another concept but we are having issues in getting a license (BLA in VIC is getting tough)…
But in saying that before you look at a new concept have you looked at your personal budget?
If not have two columns INCOME VS EXPENSES, Out of the income expenses is there any expenses you can cut?
Even if you can cut only $50.00 from your week budget over a year that = to $2600.00
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi Johann,
Thanks for the fantastic input! It sounds like you lead a very busy lifestyle, but also sounds like everything you do is what you like doing so good on ya!
So for me, I have a low-income job which I'm trying to change industries and get a bit of a pay rise by doing so. Then I have started a part-time business in network marketing to try and get any extra income possible out of that, and am now looking at creating another business in sales as mentioned.
Your budget idea is great. I have already sat down for about 2 days to account for every dollar of personal cash flow and have cut any non-essential expenses from it. I did get quite upset once I completed it because I have a very poor personal cash flow from my lack of financial intelligence in the past, but on the upside anything I do now can improve that cash flow and create a better outcome for investing.
Regards,
Matt.
Hi Matt,
I can forward you a profit and loss statement (without my figures though lol) that I use for my own personal need. Its a great simple to which i track every day at 6am before I leave to work.
My life style might sound busy, but its all about time planning, at work JAN/FEB is always quiet, most staff at my work place just have coffees, joke "etc" which is all good but I use my time to network, read, plan and more importantly execute. With the Tattslotto business I have three staff members who I trust so that makes life easy.
Maybe rather then trying to do three or four things to earn more cash, Try and focus on your first primary income,
maybe do a course, invest in your self, and see if you can get a career change to earn more money as well.
some times when you have to many things going on and especially at the "new stage" of every bussiness you may loose focus on your whole goal.
If you want the template please let me know what your email is…
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Sounds great Johann, my email is [email protected]
done,
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
I was just reading in an investment mag while away on holiday this new (ish) site some stanford professors set up called https://www.coursera.org/. I had a look at it the other day and signed up for a couple. The best thing is the courses are free and run by some of the top uni's in the world. I have signed up for a couple in the business/finance side of things to try and complement my income accelerator and market knowledge I don't have the intention of submitting assignments but more listening to and reading the content. This would potentially be a good way to further skill yourself up without spending money I also think they said in the article they make money if you use them to find you work afterwards with the courses you complete. Worth a look at least.
Note this is note spam I have no affiliation with the site.
Vic
Hi Matt,
I was thinking of going into shares but them my friend that was making money in shares told me about banners Broker!
Check out //www.bannersbroker.com/Emech its working for me and may friend.
Yeah when do you get back?
Do you know much about microfinance in the UK?
Hay munmun5 awesome link, I've been doing something similar.
Check out http://www.lynda.com
Transitioning and improving the sales skills into a business that has potential sounds like a decent idea.
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