As a kid, remember being told that money doesn’t grow on trees? When were young, it’s hard to grasp the concept of money, but as adults, it makes sense why parents always say this to kids when they’re asking for the latest toy or newest game. But wouldn’t it be nice if it did? And while we haven’t found the enchanted seed that grows a money tree, we do have our own little bit of magic to help you uncover some extra cash.
What are these magical areas where extra, investable cash can be found? What are some other places where you might find more investable cash? As discussed earlier, we encourage executives to review their company benefits programs to make certain they’ re taking full advantage of them, like being sure to fill up their 401(k)—especially if there’s a company match. Other questions to ask is if there is a deferred bonus system or deferred compensation plan at work, which could potentially help you to save tens of thousands if not hundreds of thousands of dollars a year. Can you invest in stock options plans? Are there free or low-cost life and disability insurance programs? Look at your life insurance policy. Sometimes an employer plan allows you to pay less through group coverage than if you were to buy life insurance individually, and some providers offer this same benefit on disability or long-term insurance policies. By seeking out ways to lower your costs while still receiving the same benefits, you’ve found extra cash that you can reinvest somewhere else.
What are some other ways to find investable cash? An obvious solution that you may be overlooking is through your current job. Ask yourself – what does the future holds, and what does your position look like in two, five, or ten years? What’s the opportunity for growth n in terms of promotion and in your compensation and any other benefits that you could get? We’ve worked with some high-level executives who were getting toward the end of their careers, but their employers still found them extremely valuable. Through this knowledge, they were able to structure and adapt their positions for themselves and work as independent contractors or consultants, which made them more money, increasing their cash flow by 30 to 40 percent or more. Part of this was since the employer did not have to provide benefits to them, but if that is an option for you, you could increase your cash flow. And from there, multiple other options arise: you might qualify for a home office tax deduction along with other business expense deductions, and you could be a contractor for multiple companies.
For more tips about finding more investable cash flow, visit tswealth.com.
