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Get Rich, Stay Rich . . . and become financially free Martin Hawes and Joan Baker
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Martin and Joan welcome comments on this and their other books. They can be contacted at:
First published in 2003 Copyright © Martin Hawes and Joan Baker 2003 All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without prior permission in writing from the publisher. The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10 per cent of this book, whichever is the greater, to be photocopied by any educational institution for its educational purposes provided that the educational institution (or body that administers it) has given a remuneration notice to Copyright Agency Limited (CAL) under the Act. Allen & Unwin 83 Alexander Street Crows Nest NSW 2065 Australia Phone: (61 2) 8425 0100 Fax: (61 2) 9906 2218 Email:
[email protected] Web: www.allenandunwin.com National Library of Australia Cataloguing-in-Publication entry: Hawes, Martin, 1952– . Get rich, stay rich . . . and become financially free. ISBN 1 74114 105 2. 1. Finance, Personal. 2. Saving and investment. I. Baker Joan, 1956– . II. Title. 332.02401 Set in 12/14 pt AGaramond by Bookhouse, Sydney Printed in Australia by McPherson’s Printing Group 10 9 8 7 6 5 4 3 2 1
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Contents Contents Introduction
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Part I Getting the life you want 1 Financial freedom is not for everyone 2 Having it all 3 What is financial freedom? 4 Capitalism is the name of the game 5 The ‘virtuous circle’ of wealth 6 The ‘vicious spiral’ of bankruptcy 7 Planning to survive so that you can thrive
1 3 6 14 17 20 23 27
Part II Dreams, goals and plans for a bigger life 8 Your dreams, goals and plans for a bigger life 9 The dream’s the thing! 10 Setting your goals 11 The Get Rich, Stay Rich plan 12 Keeping it in proportion 13 A planning example
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Part III Smart use of income 14 What will you do with your income? 15 Stop your mindless spending 16 Your house and your consumption 17 Budget tips 18 Monitor, monitor, monitor 19 Four things that boost your ego but deflate your wealth 20 Look at what you have now
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III
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G E T R I C H , S TAY R I C H
Part IV Start from here 21 What are you worth? 22 Applying the model to what you own 23 Balance is the key 24 The house might have to go 25 Some people already have enough 26 Some people already earn enough
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Part V Getting rich 27 Wealth-creating Assets 28 What Wealth-creating Assets are out there 29 Choose only one 30 Don’t fish in a dry ditch 31 The anatomy of scams 32 Successful wealth creators manage th