Looking to give your bank balance a well-deserved boost?
The recently released 2018 Federal Budget revealed more than 10 million low and middle-income earners will get a tax break of up to $530 a year – $10 a week – from next year. While any income tax concessions are welcome, the rising costs of living continue to strip any additional cash flow from the typical Australian household.
The Australian Bureau of Statistics cited that age pensioners and benefit recipients (+2.3%), employee households (+2.0%) and self-funded retiree households (1.8%) all experienced rising living costs for the opening quarter of 2018. Whether you’re faced with back-to-school costs, rising rents or bloated credit card balances from the festive season, or getting prepared for retirement many families are exploring ways to give their monthly budget a much-needed shot in the arm. With that said, we’re exploring the top 4 possible ways you can build wealth through boosting your monthly income.
1. Seek passive income
Find ways to make your money do the work for you through a passive income stream. Passive income is regular earnings you receive despite having little active involvement in your investment. This could include rental income received from real estate, product royalties, selling an e-book online or fees from equipment rental. Finding a passive source of income means you’ll continue earning, even when your attention has switched to other important areas of life.
2. Create an investment portfolio
Why not create an investment portfolio? Consult with a licensed Financial Adviser who can work with you and your own circumstances. Also taking into account your personal risk appetite. Trilogy’s own Monthly Income Trust is a great example of seeking income through an investment that delivers consistent monthly returns. After an initial minimum outlay of $10,000, investors have been receiving an average net rate of return of 7.85% p.a. since the inception of the Trust in 2007, and most recently a return of 7.69% p.a.* for the month of April. This monthly boost to the bank balance can help reduce lifestyle debt, fund further investments or give investors some much needed flexibility in their budget.
3. Advertise for a housemate or get on board the short-term rental train
Are you an empty nester? Turn those spare rooms into additional income by renting them out.
For renters out there, finding the right place can be a tiresome process and in major metropolitan areas there is no shortage of people looking for a comfortable abode. Your place could be exactly what they are looking for. Just remember, if you rent out a room you’ll need to declare your rental income in your tax return and consider the long term impact from a capital gains tax point of view. You may be able to claim deductions for some associated expenses. If your new ‘roomy’ is a family member, monies exchanged for board and lodging are not considered rental income. You can find out more on the ATO website and you should also seek advice from a tax adviser.
Not looking for a permanent housemate? Advertising your spare room on sites like Airbnb or Stayz, make for an ideal way to boost your monthly income. Even if you’re not sure your home or property fits the typical holiday destination, don’t cross this option off your list yet, you may be surprised by the demand for a variety of types of short-term rentals through these platforms.
4. Consider leveraging your knowledge and experience
People pay good money for expertise. If you’re a specialist in your field and it is not in breach of your current employment contract, why not explore opportunities to consult to other businesses or professionals? Moonlighting can be a great way to extend your network of business contacts, share knowledge and pocket a secondary source of income along the way. In these entrepreneurial times, there is no shortage of students, small businesses and start-up operations hungry for success, but lacking the necessary experience to transform their unbridled enthusiasm into tangible outcomes. You could bring this nous to the table and be handsomely rewarded, just be sure to consider the impacts on any current employers to make sure you’re not stepping on any toes, as well as considering whether you need any registrations, insurance, legal and tax advice.
Are you interested in earning monthly income? Learn more about the Trilogy Monthly Income Trust or chat to a member of our Investor Relations Team to discuss investment opportunities that might suit you and your portfolio.
*Past performance is not a reliable indicator of future performance.
This advice is general advice only and does not consider your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances and we recommend that you seek personal financial product advice on your objectives, financial situation or needs and obtain and read the Trilogy Monthly Income Trust Product Disclosure Statement before making any investment decision. Trilogy has issued a Product Disclosure Statement for the Trust dated 1 September 2017 which is available at www.trilogyfunds.com.au or by contacting us. Applications will only be accepted on the current application form that accompanies the PDS. You should obtain a copy, understand the risks, and seek personal advice from a licensed Financial Adviser before investing. Investment in the Trust is subject to terms and conditions, and risks which are disclosed in the PDS. These risks include the risk of losing income or principal invested. The Trust is not a bank deposit and Trilogy does not guarantee its performance. Trilogy provides only general financial product advice on its own products and does not consider your objectives, financial situation, or needs in providing such advice.