Оглавление
Glen James. Sort Your Money Out
Table of Contents
List of Tables
List of Illustrations
Guide
Pages
hi, I'm Glen!
introduction
Life On Own Terms (LOOT: my version of FIRE)
1 debt and how to get out of it. tl;dr
Debt consolidation: a cautionary tale
Good debt, bad debt and ‘life debt’
Car loans
A final word. on car loans
Your home mortgage
My 5 steps to get out of debt
Step 1: you must hit rock bottom
Step 2: get your money system in place
Step 3: focus on building an emergency fund
Practical steps for your emergency fund
Step 4: commence the debt snowball
Step 5: know your financial reason for living — smash that debt
Karina, 34. Geelong
Focus and determination
Reward yourself
Pull a budget lever, temporarily
Gumtree and Marketplace
Existing savings
Side hustles
HECS/HELP debt
When you might pay off your HECS/HELP debt early
The truth about credit scores in Australia
BNPL: Afterpay, Zip Pay, etc
Loans from family and friends
Debt and mental health
A final word. on consumer debt
resources
2 get rich and make it rain: mindset and money. tl;dr
The answer is not a lotto ticket
So how do you get rich?
Money mindset, habits and making them work together
Manage your money well
Buy and hold assets for the long term
Have the mindset of an investor, not a saver
Set goals
Spend less than what you earn
Do the opposite of what (some) others do
Celebrate other people's successes
Optimise your tax position
Business and leadership
Become a leader in your field
Focus on helping solve people's problems
Start a business
A final word. on starting a business
Scale your business
Maximise human capital and transfer it
Your career matters more than you think
Jess, 28. Gold Coast
A final word. for employees
resources
3 a sound financial house. tl;dr
How did the sound financial house come about?
Building your sound financial house
Foundation 1: have a spending plan in place
Cameron, 26. Yeppoon
Foundation 2: cashed up and debt free
Foundation 3: a personal protection plan
Foundation 4: a Will and estate plan
Superannuation
Walls of the house: lifestyle goals
Roof of the house: investing for the future
Your emergency fund (cashed up)
Izzy, 21. Gold Coast
How much should you keep in your emergency fund?
What is and isn't an emergency?
Where to keep your emergency fund
Why not invest your emergency fund?
Your first ‘self-insured’ insurance policy
What about offset accounts and mortgage redraw?
What happens after an emergency?
Wills and estate planning
Dying intestate (without a Will)
Rachael, 48. Auckland
What can be covered in a Will?
What is not covered in a Will?
Your estate plan
The executor
Other Will considerations
Power of attorney
Enduring Guardian and Advance Care Directive
Laura, 27. Melbourne
A final word. on Wills and estate planning
resources
4 budgets suck: setting up your spending plan. tl;dr
Spender vs saver
Budget types
Lifestyle inflation
Couples and money
Nhan Do, 28. Perth
Singles and money
Low-income earners
My money hierarchy
Where do people go wrong?
When should you start to invest?
When should you start to give?
The Glen James Spending Plan
Banks and bank accounts
Your ‘weekly spend’ account
Your ‘cash hub’ account
Savings accounts
Setting up your spending plan: learn to fish (or grow soybeans)
Spending plan observations
Irregular incomes
Salary packaging arrangements
Izzie, 28. Sunshine Coast
A final word. about spending plans
resources
5 learn how to be the wolf of your own street. tl;dr
Coroner's formal report on cause of death
Mindset of an investor: how to be great at investing
Ella, 24. Brisbane
Asset allocation and diversification
Growth asset classes
Australian shares
International shares
Property
Venture capital or private equity
Alternative assets
Infrastructure
Defensive asset classes
Cash
Fixed income
Government bonds
Corporate bonds
Cryptocurrency
Risk it to get the biscuit
Risk profiles
Investment returns with asset allocation
A final word. on asset allocation
resources
6 move over Warren Buffett, I'll take it from here. tl;dr
Passive (index) vs active investment styles
Passive (index) investing
How do you invest practically in an index?
Active investing
Does passive or active win?
Building your portfolio: why diversification matters
Building a portfolio of individual shares
‘Buying shares is just like gambling’
Mechanics of share investing
Stock exchange
Share registry
Broker
Before you start investing
Ownership overview
Understanding micro-investing apps
Understanding platforms
What's with all the names?
Direct ownership
Understanding CHESS
Managed funds vs ETFs
Listed investment companies (LICs)
Understanding fees and costs
A final word. on fees
Start investing
Placing your first trade
Once you've placed your trade
Need help?
Record keeping
Basic taxation and dividend reinvesting
Tax on investment properties
Tax on shares
How do franking credits work?
How franking imputation works
The issue with tax and investing in shares
A final word. on tax and the use of platforms
When to buy and when to sell
Investing frequencies, lump sums and dollar cost averaging
Ethical investing
It's more than just investing green
Time for a game!
Perpetual Ethical SRI Fund
Investment objectives
Fund benefits
What they don't invest in
Active vs passive ethical investing
A final word. on ethical investing
Investing overseas
Investment bonds (and investing for kids)
Financial advisers and professional help
A final word. on investment terms
resources
Note
7 property and mortgages: how to pass go with a plan. tl;dr
Key stakeholders
Real estate agent
Mortgage broker
Conveyancer
Accountant
Estate planning lawyer
Buyer's advocate
Property coach
Learning from other people's mistakes
First home buyer mistakes
Emma, 28. Brisbane
First-time property investor mistakes
8 steps for buying your first property
Step 1: build your financial foundations
Step 2: save,optimise your budget and get on the fast track
Step 3: dream and build a strategy
Calum, 31, and Nathan, 26. Melbourne
Step 4: set a savings target and get your deposit
Step 5: do your research and build your team
Property types
Who you need on your team
Other points to consider
Step 6: get finance pre-approval
Step 7: lock it all in and confirm your strategy
Step 8: go shopping
Mortgages and lending
Risk and premium for risk
Key terms
Leverage
Loan-to-value ratio (LVR)
Working out your LVR
Equity
Lenders mortgage insurance (LMI)
Parental (family) guarantee
Principal and interest (P&I) mortgage repayments
Credit score
Mortgage types
Normal/vanilla mortgage
Mortgage with a redraw facility
Mortgage with offset account/s
Why a mortgage with an offset account is good for a future property investor
When is an offset account of no real benefit?
Fixed vs variable rates
Comparison rate
Shirley, 23. Sydney
Finding a mortgage broker
resources
8 superannuation: your first-ever investment account. tl;dr
Pre-tax superannuation contributions
How much can you put into superannuation?
Concessional contributions (CCs)
Non-concessional contributions (NCCs)
Salary sacrificing to superannuation
Salary sacrificing with HECS/HELP debt
A tax-effective environment
Investment options inside superannuation
When should I add more money to superannuation?
Superannuation investment options and fees
Standard risk measure
Compare your own fund
What's not a superannuation fee?
Why it's a bad idea to base your investment decisions solely on the lowest fee
Why compare?
What investment option should you choose?
How to get money out of superannuation
Preservation age
Other conditions of release
Retirement age in Australia
Ways to optimise superannuation for lower income earners
Superannuation splitting
What to do with these optimisation strategies?
Self-Managed Superannuation Funds (SMSF)
The cost of having an SMSF
What can be purchased with an SMSF?
Rules and regulations
A final word. on superannuation
resources
9 sex, drugs and insurance. tl;dr
Do you need insurance for a non-working or lower income spouse or partner?
Life insurance
Group insurance
Direct insurance
Retail advised insurance
Personal insurance
Death cover
TPD cover
Trauma (critical illness) cover
Income protection
Matthew, 39. Central Coast
How much cover do you need?
Premium types
Commonly asked questions
What next?
General insurance
Private health insurance
Medicare Levy Surcharge (MLS)
Lifetime Health Cover loading
Hospital cover
Extras cover
A dose of mixed public and private health please
Chris, 35, and Beth, 33. Newcastle
A final word. on private health insurance
Car, home and contents insurance
Pet insurance
resources. Scan the QR code for these resources and more
where to from here?
Stay motivated
Slow down and help others along the way
Get personal help for your situation
money myths, hacks, luxury items and digital assets
Money myths
‘I'm not smart enough to be wealthy’
‘Rent money is dead money’
Azaria, 24. Brisbane
‘Glen: you must love budgeting’
‘Property always goes up in value’
‘I can just claim that on tax and get it back’
Money hacks
Stick with any spending plan changes for at least six pay cycles
Get your partner on board
Sleep on it
Pay your mortgage fortnightly
Get an accountability partner
Don't take financial advice from broke people
Pay cash upfront — always
Pay cash for holidays and toys
The bigger the purchase, the more time needed between purchases
Always have a goal
Give yourself a break
Get help when you need it
Celebrate the wins along the way
Cryptocurrency, NFTs and digital real estate
Non-fungible tokens (NFTs)
Digital real estate … ummm …
What to do?
disclosures
Index
WILEY END USER LICENSE AGREEMENT
