Additional income strategies

[nicholas91]

i am low income earner myself of 55k in the family business and started my portfolio, however after 1 , 2 and to go onto 3 investment properties, the serviceability is going an issue. so I'm looking at alternative, extra methods of income.. would love to hear some other members stories of what options or what you have done to add to cash-flow, and minimised tax, whilst working a full-time wage.

i have just signed up to Uber -the rideshare application. I'm not adversed to putting in a good 10-16 hour shift if i need to on the weekend for a bit of a boost, however not sure how this will equate to serviceability in the long run/ if it would be factored in, or just used in future for stamps & deposits etc.

would like to hear your thoughts.

thanks in advance,

regards,

nicholas

 

[Ausprop]

how can you make money out of Uber? From what I could see the pay barely covered the cost of fuel

 

[nicholas91]

how can you make money out of Uber? From what I could see the pay barely covered the cost of fuel

my girlfriend is a regular user of uber, and has met quite a few drivers stating $28 per hour for very few hours per week. with my insurance and registration aside, my car is 5L/100km..

but i'd like to stay on topic, re: cash jobs and other methods etc.

 

[Ace in the Hole]

What's your business ?
Can your 55k be increased?

 

[pinkboy]

What's your business ?
Can your 55k be increased?

Or further to this, leave the family business and look for another job in the same or similar industry and go out and earn more.

Who wants to lose 50 odd Saturdays a year to earn $15k taxed hard, when you can go out and earn more $$$ for the same amount of time.


pinkboy

 

[Encarta]

I did it through some innovative duel living, 250 a week straight into the hand

 

[Ace in the Hole]

Here's a better way.

Write up a plan on how you can make 1 million dollars in the next year, and do whatever it takes to achieve it.
Even if you fall short, you'll be personally and financially well ahead of where you currently are.

 

[neK]

I did it through some innovative duel living, 250 a week straight into the hand

Duel living eh? Like underground fights?

 

[fullylucky]

i am low income earner myself of 55k in the family business and started my portfolio, however after 1 , 2 and to go onto 3 investment properties, the serviceability is going an issue. so I'm looking at alternative, extra methods of income.. would love to hear some other members stories of what options or what you have done to add to cash-flow, and minimised tax, whilst working a full-time wage.

i have just signed up to Uber -the rideshare application. I'm not adversed to putting in a good 10-16 hour shift if i need to on the weekend for a bit of a boost, however not sure how this will equate to serviceability in the long run/ if it would be factored in, or just used in future for stamps & deposits etc.

would like to hear your thoughts.

thanks in advance,

regards,

nicholas

Rent out spare rooms to international students. Host (home stay) charge $200 - $240 per room. Through universities. (That's an extra $12k a year.)

Is 55k a year TR or profit?

Study economics and understand what is normal profit and economic profit. Once you understand this; get into an industry where you are earning economic profit not just normal profit. Work smart not hard (more hours).

 

[Ace in the Hole]

Study economics and understand what is normal profit and economic profit. Once you understand this; get into an industry where you are earning economic profit not just normal profit. Work smart not hard (more hours).

Is this just a fancy way of saying passive/leveraged profit vs personal services income?

 

[Paul@PFI]

Lenders often dislike tax returns when you declare income from non-wage sources. eg Uber. Like cash in the hand it doesn't really impress many lenders. They just ask more questions and its too hard. Itinerant work and income isn't same as a PT job stacking shelves three times a week at Coles for the past two years.

Try telling them you make $2,000 a week clear profit selling tablets at dance clubs....How do our SS mortgage specialists see that going down ???

 

[fullylucky]

Is this just a fancy way of saying passive/leveraged profit vs personal services income?

It's not a mean saying. Understanding normal profit and economic profit is the first step towards escaping the rat race. it's to do with competitive market. and perfect competition.

Nothing to do with leveraged profits.

 

[Ace in the Hole]

I still don't get it, never studied economics.

 

[fullylucky]

https://www.youtube.com/watch?v=bEgfOF5u8bI

boring video but explains the difference between account profit and economic profit and normal profit.

I think driving for Uber there isn't much economic profits.

1. It's low barrier to entry and exit (you just need a car), 2. everyone selling a standardized good (Homogeneous products) you can try to differentiate yourself with a fancy car, uniform etc from others but at the end of the day people just want to get from point A to point B,) 3. There is perfect information as users can see prices of competitors, 4. A large number buyers and sellers, (there are other people driving not just you). All of these attributes make the taxi market perfect competition. or near perfect competition. The moment a market (or profession) becomes perfect competition you will just earn normal profit.

This just means you are earning money (accounting profit) but the amount you earn is just equal to what you are "worth". You couldn't switch to any other earning option and earn more. If you could earn more then you would be earning economic profit....

The more a market has those 4 attributes listed the more competitive it is and the less the economic profit you can earn.

For example, Dentists do not publish prices on their website. Their association forbids it. This removes perfect information. Their market also has high barriers to entry. You need to have a degree and invest alot in equipment before you can start. So even with 2 out of the 4 attributes reduced it's miles away from perfect competition and hence there's a lot of economic profit, you can work less and earn more...

Example 2. There was a time when the market was flooded with MP3 players. Everyone was competing in near perfect competition. But what did Apple do? It used marketing to say hey, we are not selling an MP3 but an iPod. iPod is still an mp3 but with marketing it was able to differentiate itself from competitors and pull away from perfect competition as it's no longer selling a standardize good. And there is no longer many sellers. It can earn monopoly profits.

Anyways if you intend to enter a market that's near perfect competition you can expect to earn what every one else earns. Low hard working fresh immigrant wages. Instead you should try to enter a market or job market that's not perfect competition.