Additional income to increase serviceability?

Whats also great about my bartending job you can have the choice of getting paid cash/ or on the books + tips are distrubuted amongst the team after the night shift.

 

Ahhh cool, thanks for clarification @House. Thought there was something about marginal tax rate. Good to have it detailed for the thread.

More great ideas - saving money = making money

 

I'm all for saving money, even started a thread on money hacks.

I did however read a great quote yesterday, something along the lines of "there is a limit to how much you can cut, how much you can earn is limitless".

 

Luckily my skillset makes it easy to pickup extra work. I do contract estimating, scheduling and supervising on the side. Laid some bricks for a few weekends (more about keeping the skill than the money). Been setting up building software for a new builder at night. On top of all this I have started a business which we are growing slowly doing renovations/additions as my long term goal to working for myself.

Easily making $1k a week on top of my salary. Downside is in between the work, my girlfriend, my dogs and my property, I don't have time for anything else. I tend to sleep about 5 hours a night max. Before work, my 1hr lunchbreak and after work is spent doing more work.

However, being young I don't care. Europe, Canada and South America are'nt going anywhere, nor are the nicer suburbs I wish to live. Small sacrifices now pay big dividends later.

Ultimate goal is to not be working very much by the time I am 40.

 

Amen brother.

 

@boeman are you coming to the perth meetup this weekend? I might need to pick your brains some more great insights and work attitude!

 

Didn't even know there was such a thing. Plus (no surprise here) I am working.

Feel free to drop me a PM.

 

Not sure if it is different now but back in the 90's when I started working, any non primary job was taxed at the top bracket.

At the end of the year your total income from ALL jobs was measured and the appropriate rebate given based on your total earning.

So yes it did equal out but during the year you paid the max rate out then you were then rebated at fin year end.

Otherwise how is Employer 2 supposed to know what Employer 1 is paying you to apply the appropriate tax rate?

 

Not sure what your salary is but if you're easily making $1k a week on top of your salary, have you thought of just doing your side stuff as full time and bump up your income to maybe 250k right away?

 

I will be in the future, but I need to have that $250k work in the pipeline first. The renovation/additions is the plan for the future but we need the workflow and cash reserve first.

 

How is the employer supposed to know?.... ahhh... firstly on the TFN declaration form the employee submits (answer No to claiming tax free threshold) in order to be set up in the employer payroll system.

That takes care of the first tax bracket issue. Secondly, the employee requests the employer to deduct tax at a specified tax bracket or at a specified rate.... you do this based on what you know to be or expect to earn from primary job/income. And yes, this is done all the time & it's an essential part of managing personal finances.

If one can't grasp this simple tax issue for basic PAYG then I wonder how they'd understand essential tax variations for a property investment portfolio which includes things such as depreciation schedules & other fixed cost offsets..... and they're just the most basic of tax management/structuring issues for a portfolio.

 

Pay a good accountant?

 

Yes indeed however having some idea what you need them to do is probably wise & also knowing what you need to be doing.

For instance, would you pay a plumber to change a washer in your PPOR? Probably not.....

 

Theirs also uberEATS, Sherpa(a newly started crowd sourced courier service), uShip and Piggybee

 

Plenty of food bicycle/ vespa delivery companies, Deliveroo, Foodora, eatNow, MenuLog, DeliveryHero...

Late night grind

 

I didn't read a lot of the comments. I just wanted to say that I really value my time, maybe because I gave a young family, so I don't want to work more hours - I want to earn more for doing less. That's basically been my mantra. Although I'm annoyingly low risk so I'll never do anything like start my own business etc. Deep down I know I should.

So I would never sell amway or drive for Uber because those aren't career moves, I'm simply trading time for money and at a relatively crap rate too. I invest in my career, so instead of a second job I'll study and ensure that I'm in a career that pays well. When i was younger i quit and changed companies for promotion opportunities, I finished my 3rd degree at uni (made work pay for it); I got a mentor, I moved cities etc. Anything that meant that I was working 37hrs a week and earning $200k a year in my 20s. Now I'm in my 30s and don't earn much more, but I'm part time'ish, work from home one a week and spend time going to reading and math groups at my kids school etc. I certainly work hard, but most people do, the trick is to work smart.

Investing in your career is by far the best investment you'll make.

 

I get the marking down tax free threshold but I have never had a second job so I have never been exposed to this. I find this strange, Payroll systems are automated and I wouldn't have thought a static rate would be possible as they work on brackets. So you are saying that when you start a second job, you can ask your payroll to just tax you at a static 30%? If this is the case, surely you would want to be taxed at a static 0% and put your own tax into an account and earn interest off it until the end of fin year??

I am not doubting you or questioning your knowledge, I am explaining something that doesn't work out in my mind so am hoping you can share your knowledge and increase mine. Which brings me to your last comment, if I knew everything and didn't have to ask questions to increase my knowledge, why would I be here?

We don't take shots at each other on here, we help each other and teach each other, now I don't know if it was intentional or not but your last paragraph comes across as putting me down. Play nice and remember the internet doesn't convey tone very well, least of all tongue in cheek.

To answer the Question for you though, @Username86 answered it perfectly with the same answer that Chris Gray would give you. Pay a good accountant (or a good team in general). Being that I don't know what I don't know, I would say this is certainly a good investment.

Yes I would, I don't do any of the maintenance on my most valuable asset, I would sooner pay a professional and not have to worry about it and quite frankly, my leisure time is worth more than a couple of hundred bucks to get a plumber out.

Of course I know what a washer is and I even know where it goes and why and I am "pretty confident" that I would do an okay job BUT what if there is something else? do I need teflon tape around it? Once again I say "I don't know what I don't know" how am I going to learn it if I don't know that I don't know it? Pretty sure I would find out when I watched the paid professional do it though.

 

Oh boy you are playing with fire. First you do home cooked meals for lunch and give up alcohol, next it will be quitting smoking and starting an exercise routine. Thats a slippery slope my friend.

 

Ha! I don't smoke and I gym it 3x a week. This slippery slope will see me through quite nicely