Quick and easy ways to grow wealth
By Paul Meaton & Phillip Mortimer
Have you ever heard Warren Buffet’s wisdom “if you don’t find a way to make money while you sleep, you will work until you die.”?
Well… the heading might be catchy, there aren’t too many quick or easy ways to do it BUT we do have a few helpful tips to get you started.
Welcome to some insights and thoughts on the wealth making journey.
What is wealth?
Wealth is not just about money, but also about the value you create and the impact you make. Maybe it’s through good honest hard work, good honest smart work or just working smarter not harder?
Consider that there are different ways to grow your wealth, whether it is ‘active’ wealth growth or ‘passive’ wealth growth, you can be:
Paid for your skills: Work with your brain or your body – although you are limited with the hours in the day and your own hourly rate or wage. You can improve this by investing in your skills, managing your spending and investing your savings.
Running a business (or maybe a side hustle): You could buy and resell, manufacture, provide a service, or create experiences that people want or need. Think about your market size, point of difference, gross profit, marketing, and overheads.
Investing: You can make money while sleeping with assets that generate income, appreciate in value over time or do both. The magic of compound growth, gearing your investments, and take advantage of tax benefits to boost your returns.
Yes - that all sounds easy to invest and make money while you sleep, however there’s generally different stages of life that we see with clients in business.
A typical business & wealth journey could look like:
Consider what stage of this journey are you at and what help do you need?
Are you starting out?
At this point you will be taking on the risk and have a lot to think about!
What is your vision and mission for your business, what’s the plan?
Plan, plan, plan and then plan some more – what structure fits best? Where’s the money coming from and where’s it going? What level of funding, people or other resources do you need?
And while you are starting out consider that you are in an Active Wealth Growth phase, all that effort you are putting in should be growing your wealth – possibly as the value in the business (the goodwill).
Are you currently in business?
The business is ticking along but could do with some fine tuning?
Keep an eye on the prize and get some help with the strategy, develop your skills and knowledge with some coaching or consider getting some outside eyes looking over the business.
All this will be helping to consolidate that Active Wealth Growth and hopefully you’ll have some capacity to work on some Passive Wealth to really set yourself up. Maybe it’s time to find a financial planner to help you in the future?
Are you looking to get out and spend that well earned wealth?
Consider how you are going to get your business ready to sell and maximise the value.
You’ve got capital gains tax to think about and plan to minimise with some good accountant advice! How are your investments tracking if you are planning to live on them, maybe consider some financial planning advice.
You are now at the tail end of your Active Wealth Growth journey and will be keeping a close eye on that Passive Wealth into the future.
What’s around to help you on your own journey?
There’s almost an unlimited number of resources and tools that you can use to help. In our opinion the starting point is getting some great advice, reach out to us and we are happy to help.
But if you want to do some digging on your own we did come up with some of the favourite resources used by some of the team here at Lincolns:
For reading or audiobooks you could try out:
The Barefoot Investor by Scott Pape
Making Money Made Simple by Noel Whittaker
Happy Money by Ken Honda.
For websites - have a look at the government ASIC Moneysmart website where you can find a wealth of information and tools on financial topics.
Good luck with your journey and we look forward to being a part of it with you.
Not for Profit Changes
Upcoming Changes to the Reporting Requirements
If you are involved with a Not-for-Profit organisation and are not a registered charity then there will be changes to your reporting requirements from this financial year. If your not-for-profit has an active ABN then you will need to lodge a NFP Self-Review Return each year to continue to access Income Tax Exemptions.
This can be done through Online Services for Business as long as you have the organisation linked to your MyGovID.
To find out more please see the tax office website here.
Reach out to us on (08) 9841 1200 if you need any assistance.
2024 Rural Tour
In this half day seminar we will cover the topics most relevant to the farming industry right now - cashflow and funding concerns as commodity prices drop, succession as an ongoing and ever evolving discussion, carbon requirements plus much more. Join the Lincolns team and guest presenters for this collaborative and interactive session. See full details here.
Tea and coffee on arrival and a light lunch provided.
For enquiries please email events@lincolns.com or call 08 9841 1200.
Aged Care
Demand for aged care services, both for in-home and residential care, is on the rise. As too is the need for granny flats and retirement villages. Yet the complexity of the costs and the available government support involved to assist with ageing is becoming more and more difficult for families to navigate.
Our team can help you. We see and hear what our clients are having to do for themselves, their parents and their families in general to ensure growing old doesn’t become a burden.
You don’t need to tackle this on your own. Lincolns can provide comprehensive advice on the home and residential care programs offered by My Aged Care. This includes assessing costs involved, planning ahead, Centrelink implications and pension strategies along with assisting with the paperwork.
Spinathon 2024
We need your support during the 2024 Spinathon.
Spinathon is an annual fundraising event for Albany Community Hospice. The Spinathon will run over a 24 hour period from 12pm Saturday 9th March to 12pm Sunday 10th March. Participants will be taking on the challenge of keeping stationary bikes spinning over this time to raise funds for Hospice at Haz Beanz at the Albany Marina.
All funds are donated to the Albany Community Hospice who provide award-winning holistic palliative care to all who need it. It is the aim of the Hospice to provide this service at no cost to their guests or their families. Thanks to the ongoing generosity of the community, they have been able to continuously achieve this aim.
We hope you can support the Lincolns team to help raise funds for the Hospice.
