What would the Objectives for 2021 be in terms of Free Cash and what sort of Plan is going to bring me Home?

I will try to answer these questions in this post.

Past performances are not a guarantee of future results. Even though I have developed a certain degree of traction, I can no longer expect any ‘assured’ profits in terms of interests. On the plus side, I have the advantage of forecasting certain cash inflows that will most likely happen throughout the year. I also have a number of items around the house I can expect to cash-in in the short to medium term. All things considered, an objective of £1,000 for the year or £84/month seems SMART (Specific, Measurable, Achievable, Realistic and Time bound). Experience tells me that there will be ups and downs along the way but that corrective actions can be put in place should there be a need to align results to my monthly objective.

Without ruling out other tried and tested tools, the five main sources of income I will be using are listed as follows:

• Bank rewards.
• Cashback deals & rebates.
• eBay decluttering & casual sales.
• Promotional sign-ups.
• Interests over savings.
• Any other unexpected free cash.

Let me explain individually on each of these vehicles.

Bank rewards

These are cash rewards that banks offer in exchange of: a minimum deposit per month, a minimum number of direct debits, or a combination of both. Used to be more generous in the past but definitely on a shrinking trend nowadays.

Cashback Deals & Rebates

Cashback websites reward their users in exchange for their custom. In other words, the cashback websites reimburse the commission of a sale to the buyer. So rather than a third party pocketing a commission for my purchases, that commission will end up back in my bank account. Prime examples of these are: insurance of any kind, energy supply, broadband contracts, holiday bookings and all types of online purchases.

Rebates are money/cash-able items in return for purchases of goods and services. Good examples are: Nectar Card Points and Tesco Rewards Points. They all add up. You just need to be: first loyal, and second, extremely patient.

eBay decluttering & casual sales

These are purely items that I have no longer a use for and will most likely end up either in the skip or as part of a bundle donation to a charity organisation. It is important to point out that these are not resell items. I will not be buying with the intention to resell or manufacture an item for sale in view to making a profit and meeting an objective. This exercise is all about free cash and not a second job. Examples of these are: toys, clothes, furniture, appliances, books, videogames, phones, etc.

Promotional sign-ups

Companies are happy to offer incentives in order to lure in new customers. Banks will pay straight cash after a new bank account is opened subject to meeting a set of minimum requirements (ie: a certain number of direct debits and moneys credited monthly). Gift cards qualify as well as they can be exchanged for cash.

Interests over savings

Any interest generated as a direct result of keeping money in a bank account.

Any other unexpected free cash

Should I come across some long gone and forgotten cash at the bottom of a drawer, receive a tax rebate or qualify for a free no risk bet at my bookies, the proceeds will go towards building my cash for nothing funds. Casual findings and free gifts susceptible of cashing in will also qualify (more of this on a future post).

Objectives set and means defined. What is the Plan?

As I carry some inertia from my past activities, I can reasonably expect bank rewards and interests to fall in the region of £20/month.

I have some deals already in the pipeline, but mandatory household purchases will necessarily go through a cashback website. I will compile them all on a future post but I will be specifically targeting: home, life and car insurance, broadband, energy and big price tag items. My expectation is an average of £20/month for the year.

I can also expect promotions of between £150 and £200 over the year that I will have to be on the lookout for or set an alert for (stay alert for a post).

That leaves me with a target of £300-£400 worth of items for sale through various channels (ie: eBay). I am confident that I can meet this target. All I need is to do is put together a list of disposable items around the house and start flogging them off.

This planning exercise has led to a breakdown of a high-level objective into smaller child objectives. This approach really works for me as I will tackle them separately armed with the knowledge of their expected individual contribution. It greatly simplifies the task and makes things significantly easier for me.

In Summary:

Objective: £1000 for 2021.

Tools: Bank rewards, cashback deals & rebates, eBay & casual sales, promotional sign-ups, interests over savings and any other unexpected source of free cash.

Plan:

• Banks rewards and interests: £250.
• Cashback: £250.
• Promotions: £200.
• No longer needed items sales: £300.

Let us get down to business…