Financial Insecurity & Fluctuating Income

By: Mandy Nield

I am a farmer’s wife and have lived through some good and bad seasons on the farm. If farming was all about money, then we wouldn’t still be here. Most of us farmers genuinely LOVE the lifestyle that farming brings.

However, being a ‘city girl’ and marrying a farmer, I struggle with the insecurity and irregularity of income. These days, you’d have to be a top financial professional to get it right 100% of the time. Some years we seem to have plenty of money and other we’re in debt before we even start paying for seeding expenses (and that doesn’t even include the tax due!). Does this sound familiar?

Well, I’ve got some great news for you. I have discovered a way that provides a regular income that is not affected by the rainfall! My husband and I have been investing in real estate now for a couple of years and have found that even in bad times, we still have that income to fall back on.

This brings real ‘peace of mind.’ Trust me, it’s really not as hard or as expensive, as it sounds, and we as farmers have an extra huge benefit that we can take advantage of, and that is – the fluctuating seasons and income! (I bet that’s a surprise!)

Firstly, real estate investing builds not only income for now (assuming you buy cash flow positive properties), but will also prepare you for a comfortable retirement. As a bonus, you also get the capital increase (real estate is said to double in value every 7-10 years approximately), as well as tax advantages. And if this isn’t enough, then you can also use other people’s money to acquire it and pay it off.

Sounds like a winner all around, don’t you think?

Not convinced yet?

Well, how could we use our fluctuating income to our advantage? As farmers, on a good year we could put money in a ‘mortgage offset account’ or just pay extra off the loan. This would reduce your interest payments. In a bad year, you can redraw the extra equity you have in the property, or properties. This investment vehicle can be used totally to your advantage (check with your accountant or tax advisor though).

I really could go on for ages about this brilliant opportunity because I am so passionate about it and it has been our saving grace over the last couple of years as well as having comfort in knowing that we’re planning for a secure financial future.

I really hope you have got some benefit out of this article, at least be inspired to check it out further. Good luck in your enterprises, whatever you doFeature Articles, and I hope that this year is a great one for you!

Money Management
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