This is Why Most Tradies are Broke
One of the main reasons why tradies are broke is because you’re spending all this money on junk you don’t need. You’re also getting charged too much money for your materials and you’re getting charged for your materials too quickly.
Start to look at your payment terms. The further out you can get those terms, the better. I remember when I first started out, I was on a 7 or a 14 day trading account. I’m now on a 60 day account. I’ve pushed that out for 60 days and I’ve also increased when I’m getting paid so I get paid on the day of a job.
When it comes down to buying junk, I’m talking about things you don’t need.Maybe you’re getting charged too much for your insurances – check out Compare the Market on different things like that. Look at your office rent. We just moved into a warehouse/office combo and save tens of thousands of dollars every month.
But the main reason why tradies are broke is you guys are paying too much money – you’re throwing it out! And you’re getting charged too soon and you’re not getting paid quick enough.