Replace Your Salary by Investing: Save More, Invest Smart and Maximise Your Money

Cover
Title Page
Copyright Page
Contents
About the author
Introduction
Chapter 1 Build your money muscle
	Money is a muscle
	How to build your money muscle
		The importance of tracking your progress
		Is your current strategy the best one for you?
	Money success — myth vs reality
	Urgent vs important
	Money stages
		Building wealth
		Winding back on your salary
		Financial freedom
	The building blocks to getting there
		Saving
		Investing
		Property and leverage
	Financial wellbeing
		A clear plan
		Know your unknowns
		Manage your risks
	Money psychology
		We stick to defaults
		Parkinson’s Law
		The power of barriers
		Willpower is limited
Chapter 2 Become a savings superstar
	Saving challenges
		Saving and spending habits
		The juggle
		Finding balance
	What a budget isn’t
	Importance of a system
		Why most money goals fail
		Nailing your fail-safe savings system
	Build the last budget you’ll ever need
		Step 1: Lay out your income and expenses
		Step 2: Prioritise
		Step 3: Think ahead
		Step 4: Segregate and automate
		Practical banking tips and hacks
		Your banking buckets
Chapter 3 Invest to replace your salary
	How much do you need to replace your salary by investing?
	Underestimate long term, overestimate short term
		Growth vs defensive investments and your investment timeline
		Diversification
		Small company vs big company risk
		Active vs passive investing
		Ethical investing
	Formulate your investment strategy
	Franking credits are your friend
	Types of investments
		Direct shares
		Managed funds
		Exchange-traded funds
		Listed investment companies
		Micro-investing
		Choosing between the options
	How much should you invest
		The wrap
		Your action steps
Chapter 4 Buy property like a pro
	Property vs shares
	The power of leverage
		Property wins
		Tax impact
	Investing with equity
	How equity release works
		Family guarantee
	You don’t need 10 properties
	How much does it cost to own an investment property?
		Initial costs of buying a property
		Ongoing costs of owning a property
		Property costs are tax deductible
		Financial benefits of an investment property
	Buying your dream home can make you seriously poor
		Balance your home vs non-home assets
		Your own home is an expense, not an investment
	Property risk and how to manage it
		Spending the wrong amount on a purchase
		How to choose a good property
		Premium properties
		Target as much land as possible
		Aim for lower ongoing costs
		Hold for the long term
	Cashflow risk
		Medical risk
		Interest rates
	How to structure your mortgage
		Principal and interest vs interest only
		Fixed vs variable interest rates
		Rate rises have been priced in
		Step 1: Understand the costs of fixing your mortgage
		Step 2: Assess how this fits with your savings and investment plan (budget)
	Three property mistakes to avoid
		Buying off the plan
		Investing for tax purposes alone
		Sacrificing growth for income
	Who helps you with property?
		Lawyer or conveyancer
		Mortgage broker or bank
		Property buyer’s agent
		Financial adviser or financial planner
		How to build your property professional dream team
Chapter 5 Crypto, bro?
	How much risk do you need?
	Where people go wrong with cryptocurrency and digital assets
	What is cryptocurrency?
		Types of digital assets
		Choosing between types of digital assets
	What are the risks with buying cryptocurrency?
		Volatility risk and asset class risk
		No income risk
		Staking risk
		Counterparty risk
	Where cryptocurrency fits in a smart investment portfolio
	How to manage risk if you buy cryptocurrency and digital assets
		Foundations first
		Only invest a small proportion of your total wealth
		Stick to the big players
		Have an emergency fund
		Only invest money you don’t need to touch
		Minimise your ‘sells’
		Understand and stay on top of your crypto tax
		Choose a good platform
		Take your crypto ‘off exchange’
Chapter 6 Sort your super
	Super is a tax structure
	Super won’t be your first investing strategy
	You have full control over your super investments
		A note on default super options
	Super contributions are tax deductible
	‘Catch-up’ concessional contributions
	After-tax contributions
		First home buyer super hacks
	Different types of superannuation funds
		Industry funds
		Retail funds
		Corporate super funds
		Self-managed superannuation funds
	How to choose a super fund
		Start with your investments
		Look at fees
		Look at features and user experience
	Don’t set and forget
		The wrap
		Your action plan
Chapter 7 Get tax smart
	Your after-tax return is all that matters
	You only get one tax rate
		Tax bills are a good thing
	Marginal tax rates
		More is more when it comes to your income
	Value of deductions increases with your income
	Tax rates are different for different entities
		Companies
		Trusts
	Tax planning across family units is valuable
	My five most effective tax-saving strategies
	Franked dividend share investing
	Debt recycling
		Debt recycling in action
		What are the risks of debt recycling?
	Superannuation contributions
		Selling a property
	Borrowing to buy shares
	Negative gearing
	Maximise your deductions and tax return
		Understand your potential deductions
		Bring forward (necessary) purchases
		Sell investments in a loss position
		Prepay deductible interest
		Get good professional advice
		Keep good records
	Who helps with your tax planning?
		The wrap
		Your action plan
Chapter 8 Your game plan
	A typical replace your salary journey
		Stage 1: Growing your assets
		Stage 2: Transition to income
	Choose your wealth-building weapons
	Fear > inaction > missed opportunities
	How to crunch your numbers
		The wrap
		Your action plan
Chapter 9 DIY, get help or procrastinate
	Early momentum compounds into serious dollars
	DIY, get help, get good help or delay
		Do it yourself
		You can get some help
		You can get good help
		You can procrastinate
	Where is the actual benefit in financial advice
		Value of advice
		Advice upside
		Results are everything
	Types of financial advice
	Which financial adviser will make you the most money
		You need an expert on your particular problems
		Plans are your pathway to results
		Fees are important, but not just because of the cost
		You should want to pay a lot for your advice
	How to choose an adviser
		Screen 1: Content and philosophies
		Screen 2: Size and support
		Screen 3: Track record
		Screen 4: Relationships and products
		Screen 5: Money vs lifestyle focus
Your next steps
Index
EULA