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- Herausgeber: John Wiley & Sons
- Kategorie: Ratgeber
- Sprache: Englisch
Do you dream of being the first to reach the millionaire milestone?
Do you have big money ambitions? Are you committed to being so successful with investing that you not only set up yourself, but future generations as well? Virgin Millionaire is here to help you create a step-by-step game plan for true money and investing success. The goal? To live your ideal lifestyle WITHOUT sacrificing all your waking hours to work. If you want to become the first millionaire (or multimillionaire) in your family — and guarantee your long-term financial security — this book shares expert advice to get you there.
Virgin Millionaire combines the psychology behind wealth and money-habit building with simple strategies and frameworks to give you the why, what and how. You’ll learn about the five Smart Money Stages every person moves through on their journey to financial independence. With the Smart Money Stages, you’ll determine where you’re at now and get clear, actionable strategies for growing your wealth so you can progress through each stage faster. Discover the tactics that will help you focus, optimise and accelerate your money for ultimate impact.
Virgin Millionaire will show you how to:
- Set up the building blocks for serious money success
- Automate your money management to save time and drive better results
- Cut your tax bill to get ahead faster
- Buy your dream home, without a crippling mortgage
- Do it all without making drastic lifestyle sacrifices today
With this book, you’ll see why author Ben Nash is Australia’s most-followed financial adviser — and the founder of Australia’s most-awarded financial advice company. Don’t settle for anything short of achieving your full financial potential. Virgin Millionaire will show you how to realise your inner millionaire.
“Jargon-free and straight to the point. This book is a must-read for anyone serious about unlocking their inner millionaire.” — Victoria Devine, founder and author of She’s on the Money
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Seitenzahl: 423
Veröffentlichungsjahr: 2024
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Table of Contents
Cover
Table of Contents
Title Page
Copyright
About the author
Introduction
Your cash is going backwards
Stages of money
Aiming for bigger goals
CHAPTER 1: The Smart Money Stages
Unpacking the Smart Money Stages
The right move at the wrong time is the wrong move
Your focus through the Smart Money Stages
The 5 per cent rule unpacked
Money milestones
CHAPTER 2: You need debt to get rich
Smart debt accelerates your wealth building
Smart debt gives you tax breaks
How to use debt
Investing with equity
Manage your risk
Smart Money Stages and leverage
CHAPTER 3: Not all property wisdom is wise
The sooner you buy your first home, the poorer you'll be
How to choose a good property
Three property mistakes to avoid
Smart Money Stages and property
CHAPTER 4: Replace your salary by investing
Listening to the gurus
Active vs passive investing
Always be investing
Types of investments
Smart Money Stages and investing
CHAPTER 5: Sexy investing
Cryptocurrency
Gold and precious metals
Bonds
Startup investing
Commercial property
Where sexy investments fit for smart investors
Smart Money Stages and sexy investments
CHAPTER 6: Why rich people need a budget (the most)
Why you need a budget
Why you need a pay rise
Create a smart saving plan (budget)
Smart Money Stages and saving
CHAPTER 7: Tax strategies
The Australian tax system
Top tax-saving strategies
Smart Money Stages and tax strategies
CHAPTER 8: Tax structures
Marginal tax rates
Where you own your investments is important
Tax entities and structures
Smart Money Stages and tax structures
CHAPTER 9: Your Virgin Millionaire roadmap
Benefits of having a plan
Smart Money Stages: how to plan
CHAPTER 10: Your money dream team
Your money dream team
Smart Money Stages and your money dream team
Bonus: Take action with more confidence
Conclusion: Your next steps
Your Virgin Millionaire roadmap
Your next steps
End User License Agreement
List of Tables
Introduction
Table I.1 30-year returns on different investments
Chapter 1
Table 1.1 Smart Money Stages: a progress tracker
Table 1.2 financial focus projects
Table 1.3 calculating your net asset position
Table 1.4 calculating your smart money freedom gap
Table 1.5 how much you need to save to build different levels of wealth
Chapter 2
Table 2.1 how property equity grows over time
Table 2.2 how equity increases your borrowing ability
Table 2.3 returns on shares vs property
Table 2.4 property investment value over time
Table 2.5 Smart Money Stages: leverage and property
Chapter 3
Table 3.1 Smart Money Stages and property
Chapter 4
Table 4.1 how investments grow assuming 15 per cent annual return
Table 4.2 return on managed funds vs ETFs
Table 4.3 Smart Money Stages and investing
Chapter 5
Table 5.1 Smart Money Stages and sexy investments
Chapter 6
Table 6.1 spending and savings planning
Table 6.2 Smart Money Stages and saving
Chapter 7
Table 7.1 Australian marginal tax brackets and rates
Table 7.2 how debt recycling works in practice, day 0 to year 10
Table 7.3 how debt recycling works in practice over the long term
Table 7.4 the impact of $5 daily super contributions over time
Table 7.5 Smart Money Stages and tax strategies
Chapter 8
Table 8.1 tax rates across a family group
Table 8.2 tax rates applicable on investment income
Table 8.3 investing $10 000 p.a. through super by tax bracket
Table 8.4 personal vs company income tax
Table 8.5 example 1 — family with older children
Table 8.6 example 2 — high-income couple with young kids
Table 8.7 example 3 — couple with lower income earner and no kids
Table 8.8 Smart Money Stages and tax structures
Chapter 9
Table 9.1 calculating your net wealth position
Table 9.2 Smart Money Stages and planning
List of Illustrations
Chapter 1
Figure 1.1 the five Smart Money Stages
Chapter 4
Figure 4.1 ASX200 company values
Figure 4.2 the effect of diversification
Chapter 6
Figure 6.1 the Pivot automated saving system
Guide
Cover
Table of Contents
Title Page
Copyright
About the author
Introduction
Begin Reading
Bonus: Take action with more confidence
Conclusion: Your next steps
End User License Agreement
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Money can be confusing and even overwhelming, but in Virgin Millionaire Ben cuts through the noise with simple, practical steps anyone can follow to do better. Jargon free and straight to the point, this book is a must-read for anyone serious about unlocking their inner millionaire.
— Victoria Devine, founder and author of She's on the Money
Getting wealthy doesn't just happen by accident. Like being successful in any endeavour, it takes time, focus, and an intelligent approach. It also comes down to doing the right things at the right time as you progress through life’s key milestones. If you want to get (or be) wealthy, trying to figure it all out on your own can be overwhelming, however, Ben Nash makes it easier with practical tips and his easy-to-understand approach. This reduces the anxiety when making some of your investment decisions, or at the very least, empowers you to ask the right questions. Ben’s focus on the different financial stages and how to move through them faster and easier allows readers to make more progress, avoid common pitfalls, and do it all without making drastic lifestyle sacrifices.
— Grant Hackett, CEO of Genlife and Olympic Gold Medal Athlete
If you want honest advice and a step-by-step guide on how to get rich, then you're going to love this book! Should you invest in property or shares? What are the secret financial strategies of the rich? And more importantly, how can you use this information to get ahead in your own life? Ben answers all these questions and more. You're going to love this!
— Queenie Tan, founder of @investwithqueenie
Ben has once again nailed it! With clear, actionable steps and invaluable insights, this is the ultimate guide on wealth-building for millennials to reach their first million and beyond. A must-read for anyone ready to take control of their financial future.
— Fred Schebesta, founder of Finder.com.au
I've applied several strategies discussed in Virgin Millionaire and I'm already over halfway to becoming a millionaire at 26. Ben's insights on leverage, tax considerations, and how property and shares work together to build wealth are particularly valuable. This book is an excellent and practical guide to becoming a millionaire.
— Natasha Etschmann AKA Tash Invests, co-author of How to Not Work Forever
Making your first million is hard. But Virgin Millionaire makes it easier. In this book, Ben outlines the simple steps to build a solid financial foundation in order to get ahead quicker. Setting up your ideal future doesn't have to come at the expense of your life now. Instead, Ben outlines that you can set yourself up financially and enjoy your journey there.
— Ana Kresina, co-author of How to Not Work Forever and author of Kid's Ain't Cheap
Read it. Apply it. Make money from it. Virgin Millionaire is the practical guidebook for everyone who wants to learn the skills to master your money, forever. If you're serious about your money, I encourage you to read this book and follow Ben's action items and implement them as soon as you can!
— Jessica Brady, Money Expert
If you want to get seriously wealthy, this book is an absolute must read! Ben breaks down the key stages of money from just getting started all the way to being a multimillionaire — and it's all backed up with exactly what you need to do to make progress to each stage faster. For readers, Ben's practical approach and explanation of the specific frameworks and tactics you can use to get more out of the money you have today, and set up your ideal future while you enjoy today is a game changer for anyone that is serious about their money and getting ahead.
— Robbo Roper, founder of Trusted Finance and Australia's most followed mortgage expert
For those earning good income and confused as to how to make the most of it, this book is a game-changer. Ben has built a career helping people focus on the most important things across each stage of wealth accumulation, starting with a self-assessment of where they are ‘at financially’, and identifying the most crucial steps forward.
— Clayton Daniel, CEO of Ensombl, the leading digital platform for financial advice professionals
First published in 2024 by John Wiley & Sons Australia, LtdLevel 4, 600 Bourke St, Melbourne, Victoria 3000, Australia
© John Wiley & Sons Australia, Ltd 2024
The moral rights of the author have been asserted
ISBN: 978-1-394-25591-7
All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should be made to the publisher at the address above.
Cover design by Alex Ross Creative
DisclaimerThe material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the author and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.
About the author
If you're not familiar with me or Pivot Wealth, you might be wondering why I'm the best person to help you become a Virgin Millionaire.
I'm a financial adviser and the founder of Pivot Wealth, Australia's most awarded money management company that helps people invest smarter to create a life not limited by money (or a lack of it). I'm deeply passionate about helping people make better money choices so they can live better lives. Through my work I draw on my practical experience to simplify the often-overwhelming field of investing and wealth creation by distilling complex tactics into simple, practical, actionable steps.
I'm Australia's most followed financial adviser on social media and am a speaker, podcaster and financial educator. I write regularly for news.com.au, and I'm the author of Get Unstuck (2018) and Replace Your Salary by Investing (2023).
My content is authentic, practical, to the point and jargon-free. It's designed to drive rapid implementation and rapid results.
Unlike most financial advisers in Australia I've chosen to focus on people in their thirties and forties who are still building their investments and wealth to achieve financial independence. And unlike traditional financial advice, my work has a strong focus on lifestyle alongside money outcomes, something I feel is crucial to driving a money plan that will actually work for you.
I'm a finance geek at heart. I have two Master's degrees in finance, together with a number of professional financial-advice qualifications. That said, the concepts in this book are drawn mainly from my practical experience.
For seven consecutive years I have been formally listed among the Financial Standard Top 50 Most Influential Financial Advisers in Australia. I have been named the Independent Financial Adviser (IFA) Industry Thought Leader of the Year, Innovator of the Year (twice), Practice Principal of the Year, Best Social Network, Association of Financial Advisers Excellence in Education Award, and Best Client Servicing Financial Adviser in Australia. Pivot Wealth has been recognised as Australia's Best Client Servicing Financial Advice Firm, and Marketing Program of the Year (twice), and as a finalist for Wellness Program of the Year, Digital Advice Strategy of the Year, Women's Community Program of the Year, Self Licensed Firm of the Year and SME Employer of the Year. Pivot has also been listed among the Australian Financial Review's 100 Fastest Growing Companies in Australia, AFR's Most Innovative Companies and AFR Boss Best Places to Work.
I've partnered with leading organisations to deliver financial education content, including working with the National Rugby League (NRL) to create and deliver their financial education program for all professional male and female NRL players. We've also delivered content for the Australian Government, Newscorp, GlaxoSmithKline, WeWork, Pearler, SelfWealth, Raiz Invest, Volt Bank, Work-Shop and Publicis Media, among others.
In addition to my work at Pivot, I'm a co-founder of Ensombl, Australia's biggest community of Financial Advisers. Ensombl is dedicated to driving the positive evolution of Financial Advice in Australia and around the world.
Having advised and coached over a thousand people directly through one-on-one financial advice, and educated millions more through my content, I've found what really works (and what doesn't).
Understanding what's really possible gives you the confidence to make the smartest money choices. I believe passionately that every person should be able to experience the sense of empowerment, and relief, that comes from knowing your money is sorted. I feel very privileged to be able to help people make this happen for them.
Virgin Millionaire
(noun phrase)
Someone who has built or is building $1 million or more in wealth without the advantage of a trust fund, windfall or a big leg-up from their family.
CHAPTER 1The Smart Money Stages
Paul and Lara were a couple in their early forties with two young kids. Paul worked as an executive making a really strong salary, and Lara worked in marketing and was just getting back into the work groove after five years of maternity leave followed by part-time work.
They had some really good things going on with their money, but when we started working together, I discovered they’d made some serious mistakes that were holding them back. We realised that if these issues weren’t fixed, and quickly, they’d essentially be stuck with working forever.
Paul and Lara had bought their own home a while back and made some good money as it increased in value. Their savings capacity was strong so they purchased a lovely lifestyle property on the NSW South Coast, a place they could enjoy with their family.
Paul had set up a trust for investing based on some research he’d done and advice from friends in a similar position. He had started doing some ETF investing through this trust to generate another income stream for their future.
Things were going along pretty well, and Paul and Lara were happy, but then everything changed …
Through the 2023 interest-rate-tightening cycle, the repayments on the debt on Paul and Lara’s home and their lifestyle property started crimping their cashflow. They weren’t struggling, but they weren’t able to save very much at all. They were treading water financially.
When we started getting into the detail, we realised there were a few issues at play. First, while their home had made them money through its growth, they had a large mortgage on this property. When interest rates were ultra-low, around 2 per cent, this was fine, but in a normal interest-rate environment it meant a huge chunk of their income was needed to cover their repayments.
Further, the lifestyle property they had was awesome, but having around a million dollars in debt to service on a property that wasn’t generating any income was a challenge. It meant a cashflow cost for the repayments themselves, but it also meant Paul and Lara couldn’t borrow more money to make further property investments.
And while I love trusts as an investment structure (I will dive into these later), because there wasn’t a lot of money invested through this investment account, it was costing more for the annual tax returns than the amount of tax that was being saved — by a significant margin.
You’d be forgiven for thinking that Paul and Lara were doing all the smart things with their money. Buy a home, smart. Set up a trust, smart. Buy ETFs, smart. Buy a lifestyle property, lovely.
The real issue here isn’t that these moves weren’t good things to do; it was that the timing was wrong relative to the other things that were going on with their money. As a result, their progress suffered.
And that’s the thing with money, you have to not only do good things; you have to do them at a good time.
Unpacking the Smart Money Stages
This is a concept I’ll refer to throughout this book, so it’s worth unpacking here.
From my experience with helping people with their money directly through one-on-one advice, and indirectly through my education content, I’ve found there are five key stages people go through on their money journey (figure 1.1). The good news is that if you know what to look for and what to do at each of these stages, you can accelerate your progress and put yourself in the best possible position sooner.
Figure 1.1 the five Smart Money Stages
There are a lot of different labels given to true money success: financial freedom, financial independence, financial security, financial stability, abundance, independence, and the list goes on. I refer to this as ‘smart money freedom’ and my definition is simple. You own your home, mortgage free, and have sufficient investments to provide enough income to live your ideal lifestyle.
For a Virgin Millionaire, smart money freedom is something you need to achieve without a trust fund or massive leg-up from family. It’s something that will take years, often decades to achieve. But the juice really is worth the squeeze.
Fast forward into the future. You’ve achieved smart money freedom. You now have enough money rolling into your bank account every week or month to allow you to live your ideal lifestyle without ever having to work again.
This isn’t to say you won’t work. Most people I talk to about this don’t actually want to retire. They’re often hardworking high achievers who have deep passions and a solid skill set, and they want to be and feel productive.
But there’s a huge difference between working because you need the money and working because you choose to. The feeling of having a choice is a total game changer.
Smart money freedom is exactly what I’m going to help you to plan and prepare for and, ultimately, to create as you work through this book. We’re going to do this knowing you can make it happen on your own without a huge leg-up from your family. And we’re going to assume you don’t have other people in your family or close circle who have done this before.
I’m not going to sugar-coat it. Becoming a Virgin Millionaire will take some serious work and not a small amount of time. Early on in your journey it may seem overwhelming and borderline impossible, but I promise you that with the right approach, some smart tactics and strategies and a consistent focus you can absolutely make it happen.
In each of the Smart Money Stages, there are seven focus areas: investing, saving, tax, property and debt, superannuation, risk and planning. In each of these seven areas there are key outcomes you need to achieve to ‘complete’ the stage and move on to the next.
It’s important you complete each stage, because doing so means you’ve covered all the key areas. It’s common for an investor to be doing well in one or a few areas, but to have left gaps in other areas. Trying to progress to the next stage before these gaps are addressed can result in serious trouble later on.
So one of the most important things you need to focus on if you want to truly nail it with your money is to achieve set milestones in every key financial focus area before you move on to the tactics and strategies of the next stage.
The Smart Money Stages and the outcomes you need to achieve to complete each stage are shown in table 1.1 (overleaf).
Your financial trajectory
As we talk through these stages, I’ll refer to your financial trajectory. This is the pathway you’re on now. As you move forward with your current rate of savings and investing, how much money will you have in a week, a year, 10 years? Everyone has a financial trajectory, but most don’t understand it, which means they don’t know where they’re headed with their money
When you’re clear on your financial trajectory, apart from getting a solid sense of how you’re tracking, you’ll be able to clearly understand whether what you’re doing now is enough, too much or not enough to get you to where you want to be with your money, or when you will reach your target.
I’ll unpack exactly how to map out your trajectory later, but for now I want to frame up the concept as it’s an important element of your Smart Money Stages.
Foundations
The Foundations stage of your money, as the name suggests, involves setting up the building blocks of your future financial success. Because there is a significant gap between your current financial trajectory and where you want to end up, serious change will be required.
Table 1.1 Smart Money Stages: a progress tracker
Investing
Tax
Saving & spending
Property & debt
Superannuation
Risk
Planning
IMPACT
Net investment income equal to double AU average income, w. income plan if employment ceased today
Multiple tax saving structures in place, including PAF
True ideal lifestyle spending while exceeding savings targets
Deductible debt for property investments maximised in line with investment income plan. Own your dream home free of non ded. debt
At superannuation balance transfer cap
Be in a position to self insure against key financial risks
Complete financial freedom with true ideal lifestyle spending + surplus savings capacity
ACCELERATE
Net investment income equal to AU average income
Be 100% confident you’re not paying more than your fair share in tax, using multiple tax saving entities
10/10 satisfaction w. saving & spending - true ‘ideal lifestyle’ spending full achieved
Own multiple investment properties with deductible debt maximised. Own your dream home free of non-deductible debt
On track to (at least) maximise superannuation balance transfer cap
Emergency fund at minimum 12 months living expenses
Be on track to exceed your financial freedom number within your desired timeframe
OPTIMISE
Investing minimum 10% gross household income to shares
Investment strategy to include at least one tax structure outside of superannuation, e.g. bonds, trust, company etc.
9/10 satisfaction with saving & spending at current levels
Own more than one quality investment property to support asset / wealth
Be fully using super contribution limits each year
Emergency fund at minimum six months living expenses. Personal insurance package in place
Be on track to reach your financial freedom number within your desired timeframe
FOCUS
Investing minimum 5% gross household income to shares
Leveraging multiple tax strategies to save a minimum $10k p.a. in tax
Saving and spending well and consistently
Own (at least) one quality investment property
Be making some additional deductible contributions to super each year
Emergency fund at minimum three months living expenses
You have a clear plan and are consistently tracking to milestones you have set
FOUNDATIONS
Have a regular investment plan for shares with automated weekly/monthly contributions
Leverage at least one strategy to save a minimum $1k p.a. tax
Be saving consistently each month to your savings plan with only minor deviations
Understanding the importance of property for wealth building
Superannuation consolidated and invested in line with a set investment strategy
Emergency fund in place
You’re clear on your financial trajectory and have a plan to get there
