You have a goal – but to achieve it, you need money.
Maybe you need money to help you start, or build a business or real estate portfolio. Or maybe it’s just money you want to be able to spend for things that are fun. Like a house or a holiday.
Accessing Money vs. the Risk of Accessing Money
Way more often than not, you can get access to money. That isn’t the issue for most people.
More often it’s a matter of worrying that the risk is too high.
Risk is a different concern than access. But they relate.
If you’re afraid, chances are you won’t look for access. This can cut your dreams right off at the knees.
If you’re afraid, but you are willing to take the risk on an arrangement that protects you from utter ruin if things go badly, then access to a well-considered arrangement (+ having a smart plan) is an important consideration.
In this post, I’m going to share some basic ideas and thoughts around accessing money so you can consider your options.
If your concern is more of risk and of, say, failing to be able to repay borrowed money, I have different suggestions for you. I am planning on writing a post on this later in the year. If you don’t want to wait, please email me and I’ll reply to you.
If your question is one of accessing money, here are some thoughts to get you thinking….
How to Access the Money You Need to Achieve Your Goals
There are basically two ways to access cash when you need it:
- Earn it yourself
- Borrow it.
Earning it yourself can be slower, but is the only options for those that can’t borrow it.
But borrowing it can be easier and faster, especially if you have time constraints.
If it’s a considerable amount of money you need to borrow, it may require some creativity to consider who would be willing to lend it to you and what’s in it for them.
But if you’re committed to the outcome, it’s worth the creativity.
When you think about lenders, if you provide the right incentives, money is available out there.
There are some lenders who will charge you an arm and a leg. And there are cheaper, and less risky options.
Maybe you have to put it on your mortgage. Or get out a loan. Maybe you need to get a business partner or hire someone to do your website for you in exchange for services you provide them that they want.
Maybe you need to come to an arrangement with and write up an agreement on what they will provide and what you will provide.
Always consider risk and how you’ll repay the money when the time comes to pay the loan.
If you back yourself enough to be able to pay the loan at the agreed rate if the risk doesn’t pay off, then do it.
A Personal Example…
When my husband and I wanted to buy our first home, we needed a 20% deposit to put down to get a mortgage. We didn’t have enough to get a mortgage on the kind of house we wanted to buy, but we really wanted to provide a roof over our kids heads and to create stability for our future.
We spoke to our mortgage broker who told us how much more we needed. We thought long and hard about how we could access this extra funding.
We went to my parents, who didn’t have enough, but were kindly able to lend us some. My mum was also aware that her brother, my uncle, was looking for a way to invest some money for a few years. So she teed up the necessary meeting and we borrowed the remainder from him. Together their contributions enabled us to buy our first home.
In respect to risk, we knew when we made the arrangements that the likelihood was that the house would increase in value enough for us to repay the loan after five years by increasing the value of the mortgage against the equity built in the house. Or through the profit from our businesses.
If it didn’t, we knew we’d be able to find another way. Worst case scenario, if the market dived and we ended up in financial trouble, we could sell the house.
So, what about you?
The issue isn’t whether you have money, but whether you can get enough. If the offer is attractive enough to someone with the necessary cash, then you’ll have yourself a way in.
Otherwise, you might just have to work for a while to earn the starting money you need.
If you don’t have the people you need to fulfil the goal, and you need the people, you need to look for the people.
Get creative. Write a list of who might be willing to help you or lend money to you.
Consider win-win options too. People aren’t often willing to give hand outs, but are willing to help if there is something also in it for them. Same applies with lending institutions.
If you need capital to, say, create a business you’re wanting to create, and it’s truly true that you need capital, then one of the things that you would have on your Structural Tension Chart (if you’ve read what I’ve written about Structural Tension Charts) under ‘current reality’ might be something like “I have no capital and I have no idea where to get capital”. What you might end up writing in your task list would possibly depend on how much money you needed and how you could go about it.
E.g., Work and save for starting capital or talk to Uncle Dave about where i might get capital from or call an investment advisor and ask for advice.
Big love to you + making your goals come true!