Lovely reminder today that its almost over 🙂↕️
By April 2027 i will free up nearly £1,500pcm in short term debt in my personal name, which i consider the most important.
In just over 10 years, using debt strategically has helped me grow my net worth from next to nothing to almost £3m, excluding residential property.
More importantly it has given me control of businesses generating crica £600k in annual EBITDA
My current salary is only £20,000 a year and increasing it has never been my priority. My focus is on building ownership and growing capital, where the potential returns aren’t capped by the ceiling of hours available to work per week.
There’s a tax consideration too. A much larger salary would push more of my earnings into the 40% or 45% income tax bands, plus employee National Insurance and the company’s employer National Insurance costs.
Whats the point 🤷🏾♂️
By comparison, realised gains on shares outside my ISA are currently taxed at 18% or 24%. For me, growing my yearly capital gains bill through larger realised profits is a better ambition than growing my PAYE salary.
The cash flow from those businesses became the flywheel, allowing me to invest larger and larger amounts through directors’ loans.
That recurring cash flow has given me the confidence to take bigger risks in pursuit of larger returns. When something hasn’t worked, I’ve been able to rebuild and go again.
That’s also why maxing out my ISA doesn’t mean I stop investing. If I see an opportunity worth pursuing, I’ll use my Trading 212 Invest account and CFD and factor the tax into the decision.
The ISA allowance limits how much I can shelter from tax, but it doesn’t and should not set the limit on ambition.
I’ve never needed every investment to work. The business cash flow has given me room to take risks, learn from the misses and keep going.
There’s a cost to taking risk, but there’s also an opportunity cost to always playing it safe.
Learn the rules and play the game, Fortune favours the brave 💪🏽🫡