It's impossible to get ahead financially if you are not maximizing your earning potential. So here are some ways you can make more money before and after retirement.
1. Work more. Pick up extra shifts at your job. If you get paid extra to work on Stat holidays then sign up to take on those days. Make sure your boss knows that you want extra work.
2. Ask for a raise. Don't wait for the annual review - just ask right now. Ask your boss what you need to do to get a pay raise.
3. Start a side hustle. Right now you can easily start a side hustle as an Uber driver, Amazon parcel delivery, Skip the Dishes. How about grass mowing/snow removal service, painting and handyman service. Before and after-school care. Babysitting. Dog walking. Running erands for shut-in seniors.
4. Sell crap on Kijiji or Marketplace. Start with the crap in your home and then look for crap that other people are selling, buy it, and resell it. People love to buy crap online.
5. Start a small business from your home. We have had some sort of small home-based business our entire married lives. It enables you to write off a portion of our home's expenses, like utilities, taxes, upkeep, interest on our mortgage, etc. There has to be a reasonable expectation of a profit.
6. Investing. We currently have about 20 different types of investments that are all earning money for us each month. There's a guiding proverb that we follow, "He who gathers little by little makes it grow". It's easier than ever to set up an investing account and make monthly automated deposits.
7. Renting out a part of your home. We have been landlords since 1996. We have literally made hundreds of thousands of dollars in rental income.
8. Teaching your expertise to others. I'm a Certified Financial Planner and people pay me $250/hour for my planning services and I have new clients every month. Find a very narrow niche and become an expert in that niche. My expertise is in the area of de-accumulating retirement assets in the most tax-efficient manner. I have other clients who do editing and life counseling and have clients all over the place.
9. Spend less. Go through your budget (bank account/credit card statements) and see where your money is going. Cell phones, home internet, Cable TV, eating out, and new vehicles are some of the biggest money wasters of all time. Only spend money on the things that bring you joy and happiness. Avoid non-tax-deductible interest expenses like credit card debt.
10. Reduce taxes. the easiest way to reduce taxes is by making RRSP contributions. The higher the tax bracket you are in the more beneficial this can be. The average Canadian is in the 30.5% tax bracket. If you put $1000 into your RRSP then you save $305 in taxes. If your employer has a matching program make sure you are participating to the max. Use a TFSA to generate tax-free income. Splitting income with a spouse can save a couple $5000/year. Take advantage of tax credits like the age 65 tax credit or $2000/year tax-free RRIF conversion.
Most people are not willing to do any of the things listed above. That's why most people never reach their goals and they retire broke. Because most people are not willing to do what it takes, it provides an unlimited opportunity for those who are willing.
Regardless of your age or stage in life if you have someplace you want to get, then you need a plan that you can execute. Achieving financial freedom, becoming debt-free, starting a business, retiring at age 60, fill in the blank. You have to take action with a plan you can follow. If you don't have a plan contact us and we'll work with you to create one.
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Retirement Income, Investment &Tax Planning
Willis J Langford BA, MA, CFP
