Stop Waiting For A PayRise Give Yourself One

The concept about increasing income through investing and business is something I talk about a lot on this blog, but I wanted to discuss it through this point of view as it was thinking about investing through this point of view that flicked a switch for me and I finally saw the appeal of investing.

I don’t but investments particularly for market gains generally there nice but cashflow is what will pay for your future life (my view may not suit your way of looking at investing and that’s fine we all have different ways of rationalising and approaching things.) . Capital gains are however somewhat important for stocks as the dividend percentage yields stay the same increasing your cashflow (assuming the dividend yield grow proportionally to the growth of the stock). I know the last two sentences were a slight contradiction but what i’m saying is I won’t pick a growth stock with no dividend yield over a steady growth dividend stock as high net worth isn’t my goal monthly cashflow that will one day replace the need for me to work is(I hope that makes sense).

Heres an example of how to give yourself a raise:

let’s say you Earn £40,000 after tax (I understand this is high for a lot of people but I believe this can be reached by adding one or two side hustles.)

You save 50% to invest and live on the rest.

You invest £20,000 into a deposit on a rental property valued at £80,000

The Rent is £600 a month

Your Mortgage is £293 a month for 35 years at a 3.93% invest rate

you take 30% for other costs and emergencies and are left with £127 a month extra before tax

Giving you £1524 additional a year in just cashflow

(please note number used here are fairly random and are just used as an example)

Doing this every year would boost your income significantly eventually letting you quit your job the same thing can be done with stocks or other investment vehicles. This will slowly compound, if you invest your additional cash-flow into creating more it will speed up this process.