Welcome to Your Curated Journey to Building Wealth! In this guide, we’ll take you through the steps to supercharge your surplus money and build wealth for a brighter financial future. Whether you want to use the surplus to pay off your mortgage or invest in property, we’ve got you covered with a couple of scenarios to help you understand how you can make your money work for you.
Get ready for an absolute ripper of an article! Inspired by Case Study 4 from our best-selling book, “Make Money Simple Again,” this article is packed with captivating graphs, charts, tables, and real-life scenarios. Discover life-changing tips and strategies that will revolutionise your finances. Don’t miss the chance to download the book for FREE here and embark on a journey to financial freedom!
This article will suit you if you have a healthy monthly income, good monthly surplus, a mortgage and is now thinking about building up your nest egg for retirement. You have two choices: pay down your debt or invest in an additional property.
To start this journey, assess your current financial standing.
You need to find your motivation and use it as a drive forward.
The first step toward building wealth is believing in the goal. You must want to achieve this and believe in your ability to achieve financial discipline and self-control.
Once you’re clear with your motivation, you’ll be ready to embrace this change.
If possible, combine your finances by setting up a joint bank account. This will allow your combined money to work harder for you, improving your overall outcome. If you prefer separate accounts, you can still use the Money SMARTS system with virtual Jars to track your surplus amounts.
For this stage, go hunting for your financial documents including payslips, bank statements, and credit card statements. Familiarise yourself on where to look for those information cause you’ll need it soon. Is it on an online banking platform? What’s your log in to it? Or is it a paper trail? Do you know where you’ve stored them? Or perhaps, is it in your email inbox?
By gathering your financial documents, you’ll start to understand your income, savings, assets, and outstanding debts. Identifying your surplus money will be crucial in creating a plan for building wealth.
How can Moorr Help?: Create your free account, log in to Moorr, and follow the prompts. You’ll be asked to enter some numbers. Don’t worry if you don’t know it off the top of your head. Just put in a rough figure, and you can update it once you know for certain.
Organize your financial documents and sort through the numbers. Record your income, savings, assets, and outstanding debts. Having a clear understanding of your finances is essential in crafting a successful wealth-building plan.
How can Moorr Help?: Now that you have the financial documents, update each section on Moorr, particularly the income, assets, and borrowings sections. We’ll work on the expenses next.
Break down your spending into essential living expenses and discretionary items. Identify your surplus money, which will be crucial in paying down debts or investing. Knowing how much you can allocate to your financial goals is key to success.
How can Moorr Help?: Let’s track your spending!
Once you’ve completed all this, check out your Dashboard on Moorr!
This is the coolest part because it tells you how much surplus you have and more. It’s like a profit and loss statement. If the dashboard shows that you should have a surplus in place, but you don’t, it means you may have overestimated your income or underestimated your expenses/repayments. Make sure to check and update accordingly.
Establish a solid banking setup for successful execution of your plan. Ideally, set up your Primary Bank Account and Living & Lifestyle Bank Account as 100% offset account on your owner occupier property. And manage your credit card wisely.
If you’re keen to optimise your spending, Use the Money SMARTS virtual Flour Jar categories to calculate your income and expenditure. Identify discretionary spending and areas where you can cut back to increase your surplus income.
Categorise your regular spending, credit card expenses, direct payments, loans, and planned provisions spending. Analyse each category to determine where you can save more and increase your trapped surplus money. Here are some examples:
How can Moorr Help?: Check out our default recommendations!
As you go through Steps 1 to 3, you’ll be amazed at the awareness and understanding you’ve developed about your own money habits. Fascinating, isn’t it? From the very beginning of this journey, we mentioned that having awareness and the correct mindset will help you in the long run. Now, when you look at your Dashboard on Moorr, we hope you’ll clearly see your household’s money in and money out, which will assist you in setting up your banking structure.
Additionally, leveraging on our years of experience in money management and insights from the thousands of users we’ve served, we’ve incorporated our account structure recommendations for each category of bills and spending. Please note that this is a general recommendation based on the fundamentals of MoneySMARTS, and it may not be suitable for your unique spending habits. So, feel free to tweak it as you see fit.
Once you’ve reorganized your banking structure, make sure to update them in Moorr!
Commit to your financial transformation and stay motivated. Use Moorr’s Monthly Checkup feature to track your progress and ensure you’re on course towards your financial goals.
How can Moorr Help?: Monthly Checkup!
Monthly check-ups allow you to track and understand your money and cashflow position in a shorter timeframe to give you some clearer insights into how well you are progressing and controlling your money. In short, you are assessing the cashflow for the month – money in and money out – and tracking it against your yearly targets.
The great news here is, when set-up and it’s running smoothly, this check-up should take less than 10 minutes a month to do! To see the full reporting and insights, you only need to input three figures in Moorr:
As you embark on your financial journey, remember that flexibility is key. Be open to adjustments and improvements that will help you reach your goals faster. Increase your surplus money by reducing discretionary spending and stay grounded in reality while working towards your goals. You can refer to Step 4 on some suggestions on how to optimise your spending.
The most important part here is to regularly review your progress and make tweaks to your spending to stay on track. You’re doing great so far, but you can always do better. We’re going to be upfront with you… The first few months of MoneySMARTS are the hardest. From our data, most users tend to missed out on their unconscious spending. That’s mainly because we’re simply not aware of ALL the money out transactions. But, like any good habit, with time and persistence, it becomes second nature. Soon enough, you’ll be a seasoned MoneySMARTS user, and your money will be on autopilot, saving surplus and preventing unconscious overspending. Keep at it, and financial freedom will be yours to enjoy!
How can Moorr Help?: The best way to do this is to get a trendline of your spending
If you noticed either of these scenarios:
Review it, ask yourself if you can optimise this and get fitter with the spending and update Moorr. Stay grounded in reality, but never lose sight of the ultimate goal— living your lifestyle by design. Moorr is here to support you every step of the way, providing the tools and resources you need to succeed.
Review your progress at the end of the year and set new financial goals for the next 12 months. The journey to wealth-building is ongoing, and each year offers a chance for renewal and improvement.
How can Moorr Help?: Annual Rollover
We’ve made it super easy for you to do an Annual Rollover on Moorr! Simply head to the rollover section on the MoneySMARTS page and follow the prompts.
And don’t miss out on all the amazing insights you can get on your dashboard! Here are some suggestions to give you a better insight on what you’ve achieved so far and what you can do in the next 12 months:
Once you’ve got a system in place to trap more surplus, what should you do next? In this section, we’ll explore several scenarios to illustrate the potential impact of your efforts. We’ll assess the different approaches to paying down debt or investing in property and see how it affects your net wealth position and passive income over time.
We’ve got two potential financial outcomes for you – Paying off the Mortgage or Investing in Property while paying the minimum off the Mortgage. We will be using Moorr’s Money SMARTS system for both scenarios to forecast their financial future.
This section below is based on the numbers and scenarios in the Case Study 4 of our best selling book, Make Money Simple Again. There are heaps more graphs, charts, tables and examples so make sure you check it out. It’s free to download!
In this scenario, you will utilize Moorr’s Money SMARTS system, trapping the Targeted Yearly Surplus to pay off your owner-occupied mortgage. Once the mortgage is paid off, the surplus money will be placed into a high-interest savings account.
In the case study, the couple trapped the Targeted Yearly Surplus of $36,412 to pay off their owner-occupied mortgage quicker and placed the surplus into a high-interest savings account earning 3% interest per year.
Find out which scenario is better for the case study couple in the table below.
In this scenario, you will continue using Money SMARTS and purchase an investment property. All additional surplus money will be trapped and placed in the Offset Primary Account linked to your owner-occupied mortgage.
In the case study, the couple bought an investment property worth $550,000.
Please note that there are a few assumptions made for the table below. To find out what these assumptions are, download our Free Make Money Simple Again book below.
Here’s what each scenario turned out for the case study couple based on our simulation:
|Scenario 1: Pay Down Mortgage||Scenario 2: Buy Investment Property|
|Home Mortgage fully offset by Nov 2025||Home Mortgage fully offset by September 2027. Investment Loan fully offset by August 2033|
|Net Wealth Position: $6,255,187.89 In Present Day Value Terms: (no inflation of 3%) $3,463,345.87||Net Wealth Position: $7,510,083.17 In Present Day Value Terms: (no inflation of 3%) $4,158,150.97|
|Passive Income: ($1,139,954 x 3%) = $34,199||Passive Income: ($426,657 x 3%) + Rental Income ($67,411) = $80,211|
If you’ve been enjoying what you’ve read so far, we’re excited to offer you a complimentary copy of “Make Money Simple Again.” Inside, you’ll discover some fantastic charts, graphs, and tables that make wealth building and retirement planning a breeze.
Whether you’re looking to build your wealth or plan for a comfortable retirement, this guide has you covered. Just choose your path below, share your first name and email, and it’ll arrive in your inbox within the next 5 minutes. Let’s embark on the journey to financial security and a worry-free retirement together!
Congratulations on completing Your Curated Journey to Building Wealth! With the power of Moorr’s Money SMARTS system, conscious spending, and smart choices, you now have the tools to take control of your finances and build wealth for a brighter future. Stay focused, keep learning, and make informed financial decisions to achieve your financial goals. And always reach out to independent, qualified and experienced advisors to make sure that your banking structure is set up for success, optimised for your unique financial circumstances and will not hamstring you in your journey toward financial freedom.
Remember, building wealth is a lifelong journey, and with your newfound knowledge and discipline, the possibilities are endless. You have the power to create the life you desire and secure a financially abundant future.
Spend money on the things you want without guilt and save for the future with confidence. You can have the best of both worlds. Achieve more, with Moorr
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