3 Easy Wealth Creation Strategies including Self Employed
The number of Australians who are self-employed has dropped by 3.5%, according to the latest Household Income and Labour Dynamics Australia (HILDA) survey. As of the end of 2016, self-employed workers made up 14% of Australia’s workforce. Whereas, this figure stood at 17.5% back in 2001. Wealth plays a leading role in the reasons why self-employed figures are dropping. Payscale reports that the average annual salary of a self-employed individual is $61,000. However, a typical employee banks $82,436 a year, according to the Bureau of Statistics. When it comes to planning your financial future, earning as much as you can now is always advisable. So, how can the Gold Coast’s self-employed workers increase their wealth without giving up their dream career?
Spend less to accumulate more
One of the best ways for the self-employed to build their wealth is to spend less money. The benefits of doing this include not having to put in any more hours and being able to spend valuable time with family. Indulgence food choices are costing the typical Gold Coast household almost $100 a week, according to the Australian Bureau of Statistics. On average $95.05 is spent every week on takeout food and eating out. Therefore, by cutting this luxury out of your life and sticking to a strict meal plan, you can save yourself thousands over the course of the year. This cash can then be ploughed into your future, such as your retirement fund.
Have side hustles
Most self-employed workers will experience slow periods in their business. Despite this, most freelancers state that they would only consider returning to an employed position if it came with a $50,000 pay rise. This is due to the flexibility that being self-employed brings, including being able to use side hustles to boost your finances. Work from home roles are ideal as you can pick them up as and when. Mobile app jobs often pay immediately and a decent sum can be earnt from completing tasks on the Gold Coast. Similarly, paid consumer surveys can be filled in on an ad hoc basis. Meanwhile, Jason Robinson the director at accounting firm RBK Advisory states that one of his clients earns “$400 every weekend helping strangers move house.” Alternatively, you could turn your business’s website into a passive money-maker by including pay-per-click affiliates and ads on your site’s pages.
Check your taxes
One factor you must consider when you take on any side hustles is your tax obligations. Every cent and every dollar is taxable and so it’s essential that you declare this income to avoid any hefty fines in the future. You can should also ensure that you utilise the Australian government’s $20,000 asset write-off. As a small business owner, you’re entitled to claim a maximum of $20,000 worth of business assets, or a portion of them if the asset is used for personal use too. Therefore, dig out the receipts to your printer, car and phone before completing your taxes to make sure you’re only paying tax on the absolute minimum. A further way to cut your taxes and increase your wealth if your business is unincorporated and your revenue is under $5 million, is to maximize the $1,000 tax offset available.
It’s crucial that the millions of self-employed workers in Australia, keep a close eye on their financial wealth and that they take steps to boost this wherever possible. In doing so, a healthy and prosperous financial future will be created. Therefore, by spending less cash, having reliable side hustles and making the most of various tax deductions, self-employed workers across the Gold Coast will reap the monetary benefits.