Pay Off Debt

Final Steps

Step 7 - Save your money

Once you have eliminated your debt, your surplus money can go directly into your savings account. I encourage to have scheduled weekly amounts deposited as interest is calculated daily. The more frequently you deposit into your savings account, the more interest you will earn.

Step 8 - Re-invest your money

Investing

Look at ways of being able to invest your money in order to achieve an average 10% return on your funds that compounds daily, weekly or monthly. Challenge yourself to find these opportunities and do your due dilligence to ensure they are legitimate, safe and consistent. If an investment looks too good to be true, there's a chance that it may well be something that you should steer clear of. Ensure that the investment is a registered investment scheme through ASIC which you can find by searching on their website.

When investing in property, there can be good purchases and not-so-good purchases. If the term "negative gearing" is used to promote their property, proceed with caution as it may be overpriced. You're looking for property that will put money into your pocket every month, not cost you money. At the end of a financial year with all associated income (rent, tax refunds) taken into consideration as well as the associated costs (loan interest, rates, body corporate, repairs, management fees etc) you should stand to make a profit rather than a loss. Ensure that you're purchasing a property that has great potential for capital growth as you can refinance to utilize these capital gains to further invest in property.

Step 9 - Adjust your plan

Always look for ways to improve your plan. If you want to increase your spending money account by $50 a week but you don't want it to affect your financial plan, what can you cut out of your budget in order achieve this? You could also look for ways to make some extra money on the side.

  • Sell to a niche market using Amazon or eBay.
  • Start a network marketing business.
  • Run a stall at the markets.
  • Educate people online with your knowledge. What are your hobbies and interests? Could you create an educational series that you could profit from?
  • Learn about stocks, options or futures investing.
  • Anything that makes your money work for you
  • Google "make extra money" and see if any opportunites are jumping out at you.