Index

  • Ackerie, Stefan 175
  • active growth 101, 102, 237
  • active dividend strategy 145–146
  • ageing population 37, 87, 138, 176
  • Andrew’s story 24–25, 54–55, 88, 93, 174–175
  • arc, generational 12
  • asset
  • assets
    • — addiction to 90
    • — building 206–207, 225–228, 231–232, 234–235
    • — business 102, 117–120, 223–224
    • — creation of 100–102, 223–225, 121
    • — database as 226, 244
    • — growth and passive 124–125
    • — property 100–102
  • attachment theory 17
  • automation 42
  • baby boomers 34, 55, 76, 90, 92, 138, 141
  • bad customers, dealing with 192–193, 196
  • beliefs 4–5, 8, 28; see also values
  • The Big Short (film) 87
  • brain structure and function 7–8, 112
  • Brisbane floods 232–233, 235–236
  • Buddenbrooks effect 11
  • budget 115–116, 120, 128, 163, 164, 165–166, 178, 179
  • business, creating a big 174–175
  • business, small see also Andrew’s story; David’s story; Melissa’s story
  • business, starting a 157–159, 179–187; see also Andrew’s story; David’s story; Melissa’s story
    • — generalist vs specialist 152–153, 158–159
  • calorie restriction 4
  • Chau, Amy 11
  • chess 148
  • children
    • — best financial support for 75–76
    • — effect of financial support on 73–77
  • choices, increasing 83, 167–170, 197, 199
  • civilisations, cycles 12, 140–141
  • clients, losing 209–210
  • cold calls 185–186
  • compound interest 150
  • Confucius 4
  • consumer mindset 96, 133, 135
  • consumption 28, 75, 115–116, 133–134, 135, 162, 165
  • cost-cutting 136–137
  • credit 119
  • customer spend, increasing 200–201
  • cycles 137–148, 151
    • — awareness of 147
    • — civilisational 140–141
    • — consumer 137
    • — decade 138–139, 141–142
    • — El Nino 232–233
    • — La Nina 232–233
    • — lifetime 137–138
    • — market 146
    • — presidential 140
    • — trends and countertrends 63, 79–80, 90, 94, 124, 138, 141, 144, 153, 233
    • — using for prediction 141–143
    • — using for wealth 141–144
    • — yearly 139–140
  • David’s story 68–69, 119–120, 152–153, 177, 214, 216–217, 223–224, 225–228, 230, 234
  • debt
    • — addiction to 85
    • — attitudes to 90–93
    • — cost of 92–93, 107
    • — credit ratings 91
    • — dependence on 77, 85–107
    • — effects of 114
    • — financialisation of 87, 90, 96, 100
    • — good 52, 87, 88, 90, 92, 93, 105, 107, 122, 157
    • — prioritising repayment 104–105, 163
    • — recovery from 90–102
    • — slavery 90, 92
    • — stability, illusion of 85–87
    • — student 91–92
    • — techniques for getting out of 104–105, 163
  • debt, freedom from 102–106
    • — reasons for 105–106
    • — techniques for 104–105
    • — vs escape 105–106
  • debt snowball technique 104–105, 163
  • deflation 10, 86, 87–88
  • dependence 32; see also debt; income; job
    • — on a boss 68–69, 71–72, 89
    • — freedom from 71–84, 189–197
    • — on parents 73–78
    • — on a pension 78–80
    • — on a platform 81–82
    • — stigma of 80–81
    • — on stock market 89–90, 100
    • — trap 68–69, 71–84, 191
    • — vs independence and interdependence 82
  • depreciation 126
  • derivatives 97, 100–101
  • Digital Great Depression 35
  • disinflation 88
  • diversification 81–82
  • Dostoyevsky, Fyodor 40
  • Dunbar, Robin see Dunbar’s Number
  • Dunbar’s Number 31–32
  • Economic Outpatient Care (EOC) 73–75
    • — effects of 77–78
  • econo-system 131, 137, 144, 151
  • education
    • — benefit of 35
    • — costs 90–91, 93
    • — as an investment 117–118
    • — value of 90–96, 93
    • — valuing 13–14
  • Eisenhower Principle 193
  • emergency fund 160, 161, 162
  • equality 30
  • equity vs income 101–102
  • Facebook 226, 227
  • fame as a value 23–26, 45
  • financial advice 18, 22, 34, 88–89, 103, 160, 166, 172
  • financial instruments, investing through 96–99, 137–138, 145–147
    • — assets, creating 100–102
    • — control vs ownership 97–99, 126–126
    • — covered calls 126–127
    • — falling market 99–100
    • — options 97–100, 126–127, 145–147
    • — without debt 96–99
  • financialisation of debt 87, 90, 96, 100
  • FIRE economy 86
  • freedom
    • — achieving 46, 209, 210
    • — homeownership and 54–55
    • — lack of 25
    • — as a motivator 41–47, 103
    • — valuing 19, 46–47, 51–54
    • — vs wealth 215
  • freedom, financial 22, 51, 81
    • — freedom first and 224–225, 239–242
    • — wealth and 32–33
  • freedom, traps from lack of 151,157–158, 157–237 199
  • Freedom Escape Velocity 101, 128, 175–187
    • — defined 176–177
  • freedom first 107, 128
    • — achieving 155–252
    • — benefits of 49–61, 81
    • — creativity and 243–246
    • — compass not ladder 239, 240–241
    • — for financial freedom 224–225, 239–242
    • — getting free first 155
    • — as a motivator 41–47, 103
    • — perfect motivator 41, 47
    • — putting freedom first 49
    • — two sides of xii
    • — vs homeownership 54–55
    • — vs status 55–56
    • — what is meant by x
  • Freedom First Wealth Creation Formula 132–137, 182
    • — use of 135–137
  • Freedom Quadrant 189
    • — activities 193–197, 201
    • — four quadrants 195–197
    • — goals 194
    • — values 194
  • freedom window 187
  • gig economy 35
  • Global Financial Crisis (GFC) and its aftermath 10, 19, 50, 52, 72, 76, 83, 87–88, 93, 100, 125, 139, 141, 142, 144–145, 157–158, 172, 236
    • — predicting 87, 137–138
  • goals
    • — big 43–44
    • — focus on 10, 43–44
    • — pleasure and 43
    • — risk-reward calculations 43
    • — short-term 45–46
    • — values and 45–46
  • Great Depression 35, 37, 142, 172
  • growth 148–153, 228–237; see also business, small
    • — assets, building 225–228
    • — converting income to 218–220, 224–225, 227
    • — creating an asset 223–225
    • — exponential/compounding 148, 149–150
    • — opportunities 153
    • — passive 85, 87–90, 101
    • — personal 39, 180, 225, 230–231
    • — potential for 151
    • — power of 149, 150, 175–187
    • — predicting 177–178
    • — tech billionaires and 148–150
    • — working for 223–237
  • growth vs fixed mindset 150–151
  • homeownership
    • — alternatives 57–59
    • — incentives for 56–57
    • — real cost of 54–55
    • — rent vs buy 93–95
    • — six-year rule 57–58
    • — vs stock market 94–95
  • hunter-gather societies 31–32, 111
  • income see also investment
    • — active 146
    • — allure of 125
    • — attitudes to 110–113
    • — beyond passive 145–147
    • — from capital 221–222
    • — consumption 114–116
    • — converting to growth 221–222
    • — debt and 114–115
    • — escaping trap of 128
    • — farming and 110–111
    • — increasing 196, 199–208
    • — inequality 10
    • — as input and output 29, 113, 116, 117, 118, 119, 122, 158, 158, 160, 166, 169, 178
    • — investment, effect on 120–124
    • — investment for 124–129
    • — passive 101, 124–126, 127, 145–147
    • — reason it is a trap 112–113
    • — replacing 122
    • — security and 112–113, 114
    • — supra stimulus 111–112
    • — as a trap 109–129, 131, 147, 216–217, 243
    • — vs growth 218–220, 221–222
  • immigrant families 13–14, 16–17, 31
  • inequality 10, 77–78
  • inflation 10, 35–36, 86, 88–89, 219
  • insurance 100
  • interest rates 88
  • investment see also income; financial instruments; growth; property
    • — bargains 101–102
    • — big risk 121–122
    • — consumption and 115–116
    • — control vs ownerships 97–98
    • — financial instruments 96–99, 137–138, 145–147
    • — for income 124–129
    • — income trap and 120–121
    • — income trap, reason for 124–129
    • — loans 90
    • — margin calls 100
    • — missing 149
    • — passive 123
    • — passive, risks of 146–147
    • — past performance 121
    • — production minded 135
    • — in self 117–118, 150–151
    • — straight line thinking 123–124
    • — strategy 93, 95
    • — vs home ownership 93–95
    • — without debt 96–99
  • job, regular see also David’s story; income; Melissa’s story
    • — income 71
    • — platform dependence 82
    • — security and 121, 122
    • — style and income trap 120–124
    • — as a trap 25, 173, 175
    • — upside 160
    • — vs small business 117–120
  • leverage without debt 96–99
  • levers 197, 199–211, 216–217
    • — types of 200–205
  • loss
    • — aversion 29–30, 149–150
    • — limiting 150
  • Maslow, Abraham 15–16, 19
  • margins 203–205
  • market, defined 225–226
  • marketing 171, 181–184, 197, 199–211, 228; see also Melissa’s story
    • — promotion 200–201
    • — systematising 204, 206
  • market mispricing 143–144, 233, 236
  • Maslow’s hierarchy of needs 15–17
    • — inverting 18–19
    • — testing 17
    • — values and 18–19
  • Melissa’s story 24, 83, 200–211, 243–246
    • — add-ons 184–185, 203–204, 233
    • — assets, building 234–235
    • — bad customers 192–193, 196
    • — business development 189–189
    • — business start-up 157–159, 179–187
    • — choices 197, 199
    • — clients, losing 209–210
    • — cold calls 185–186
    • — customer spend, increasing 200–201
    • — database 244
    • — drones 184, 245
    • — employees 210, 211, 233–234
    • — equipment 185, 228
    • — exclusive offers 189–193, 204, 205
    • — fees 181, 209–211, 228–229
    • — free offer 205, 207
    • — future 244–245
    • — growth 228–237
    • — growth, personal 230–231
    • — income, increasing 196, 199–208
    • — investment, new 232, 235–236
    • — job change 71–72
    • — levers 199–206
    • — linear earnings 193
    • — margins 203–205
    • — marketing 171, 181–184, 197, 199–211
    • — marketing kit 183, 206
    • — outsourcing 186, 190, 229–230, 231
    • — photo editing app 244–245
    • — photography course 206–207
    • — prices, increasing 209–211, 228–229
    • — promotion 200–201
    • — referrals 200, 202, 205
    • — refusing work 208, 209
    • — relationship building 205, 207
    • — retirement 237, 244–245
    • — sale of business 244–245
    • — specialisation 159–160, 167, 181, 204
    • — systemising 234
    • — training courses 231–232, 234–235
    • — value, creating 182–183, 186, 203, 205
    • — website 181, 184
  • meritocracy 30–31
  • mindset
    • — growth vs fixed 150–151
    • — passive 120
  • minimum viable product 169
  • millennials 24, 76, 90, 92
  • Millionaire Next Door, The (Stanley & Danko) 13, 73, 77, 115–116, 178
  • money see also income
    • — erosion of value 113
    • — experience of, individual 118–119
    • — healthy view of 166
    • — production and 117
  • Montaigne, Michel de 16
  • moral exhibitionism 28
  • motivation 6, 15–17, 18
    • — ability for 42
    • — action and 42–43
    • — freedom and 41–47
    • — goal focus 43–44, 45–46
    • — importance of 41–44
    • — process focus 44
    • — security and 39–40
    • — status and 55–56
    • — trap 74
  • motivation equation 44
  • Occupy Wall Street 142
  • Okinawans, values 4
  • optionality 98–99, 150
  • options 97–100, 145–147
    • — call option 127, 145
    • — covered call 126–127
    • — put option 100, 147
  • outsourcing 186, 190, 229–230, 231
  • Parable of the Talents 242
  • parents, children of rich 73–77
  • PayPal 148–150
  • pension see also retirement
    • — consumer behaviour and 79–80
    • — defined benefit 35, 77
    • — defined contribution 35, 77
    • — effects of 37–38
    • — forms of 77–78
    • — government 78–80
    • — as a trap 78–80
  • Perceived Income Level Lag (PILL) 128
  • politicking vs production 33, 83
  • power as a value 30–33
  • prediction
    • — elections 142–144
    • — market corrections 141–142
    • — trends, noticing 144
  • pricing 209–211, 228–229
  • priorities see Freedom Quadrant
  • production
    • — thinking like a producer 134–135
    • — vs consumption 133–134, 136–137
  • productivity 119–120, 152
  • property see also Brisbane floods; homeownership; mispricing
    • — investment 57–59, 93, 100–102
    • — prices and booms 125
    • — renovation 235–236
    • — six-year rule 57–58
  • Ramsey, Dave 104
  • recessions and depressions 141–142; see also Great Depression; Global Financial Crisis
  • relationships and money 60–61
  • relationships, cognitive limit to 30–31
  • retirement see also baby boomers; pension
    • — creating wealth 36
    • — debt 87
    • — dependence 78–80, 89–90
    • — early 36–37, 38, 39, 237, 244–245
    • — earnings in 38–39
    • — economic seasons 86–87
    • — income 126
    • — pensions 35, 37–38
    • — rates of savings withdrawal 37, 39, 78–79
    • — saving(s) 35–36, 43, 86–87, 96, 109–110, 121–122, 219–220, 223
    • — secure 39–40
    • — security 36–40
    • — stock-market investment 36–39
  • rich, the
    • — behaviour 10
    • — as evil 5, 23
    • — as good 23
    • — income and consumption 115–116
    • — tax secrets 58–59, 215
  • The Richest Man in Babylon (book) 11
  • ridesharing 35
  • risk 89, 122
    • — investment, big risk 121–122
    • — limiting 98–99
  • salary sacrifice 221, 225
  • Salvo-Reno-Primo strategy 236
  • saving(s) 89, 90, 119–120, 128; see also retirement
    • — accounts 160–165
    • — attitudes to 144–161
    • — automating 166
    • — failure to accumulate 95
    • — freedom 72, 106, 158, 177, 241
    • — for no-thing 72
    • — retirement 35–36, 43, 86–87, 96, 109–110, 121–122, 219–220, 223
    • — systematising 160–166
    • — utility 121–122
  • savings, systematising 160–166
    • — freedom for fun account 165
    • — freedom from bills account 163–164
    • — freedom from debt accounts 163
    • — freedom from expenses account 164
    • — freedom savings account 160–162, 164, 165
    • — objective of 165–166
  • seasons, economic 9, 86
  • seasons, money 131
  • security
    • — cost of 36–39
    • — financial planning and 34
    • — motivation and 39–40
    • — need for 40
    • — savings and 36–37
    • — as a value 17, 22, 33–40
    • — valuing 68–69, 78–79, 125, 126
    • — vs insecurity 35
  • short term
  • side-gigs 35
  • signalling 27, 28
  • specialisation 159–160, 167, 181, 204
    • — for systemisation 159–160
  • Stanley (Thomas J) and Danko, William D 73–77, 115–116, 178
  • status
    • — competition 26–27
    • — property and tax and 56–59
    • — through freedom 59–60
    • — trap 74
    • — as a value 26–30
    • — vs freedom 55–56
  • straight line thinking 123–124, 147–149, 175, 177–178
  • stock-market returns
    • — long-term 36–37
    • — straight line thinking 123–124, 175, 177–178
  • successful, looking 180
  • supra stimulus 111–112
  • systemising 159–160; see also specialisation
    • — marketing 204, 206
    • — savings 160–166
  • tax, freedom from 213–222
  • Tech Wreck 141
  • time
    • — as an asset 99, 128
    • — buying back 99, 161, 171–187, 193
    • — reason to buy back 176–177
  • Theil, Peter 148–150
  • trends, predicting 79–80
  • Trump, Donald 98–99, 143–144
  • 23andme 226, 227
  • unpaid leave 221
  • urgency vs importance see Freedom Quadrant
  • value, creating 159, 182–183, 186, 203, 205, 225; see also assets, building
  • value-added cognitive work 41
  • values
    • — action and 8
    • — changing 19, 21, 46
    • — comfort 7, 41
    • — competing 6, 19
    • — defined 6, 7–8
    • — dominant 21–40, 60–61
    • — fame 23–26, 33
    • — family influence 14
    • — freedom 49–61, 175
    • — generational 11
    • — hierarchy 19, 50–51, 59–61
    • — hierarchy of needs 15–17
    • — identifying 49–61
    • — importance 3–8
    • — Okinawans and 4, 7
    • — personal 22–23
    • — power as 30–33
    • — security 17, 22, 33–40
    • — status 26–30
    • — as subconscious desires 6, 7, 21, 23, 24, 60–61
    • — true 174–175
    • — variation in 42–43
    • — vs beliefs 6
  • values, hierarchy of
    • — identifying your 50–51
  • Values Audit 50, 51
  • volatility 55, 88, 101
  • wages, stagnation of 87, 90
  • wealth see also wealth creation
    • — business and 22
    • — defined 132
    • — fame and 22, 23–26
    • — freedom leads to 170
    • — generational 9, 11–14, 22
    • — paths to 22–40
    • — power and 22
  • wealth creation 3, 129, 131; see also Freedom First Wealth Creation Formula
    • — cycles, understanding 12, 141–144
    • — cyclical nature of 11–12
    • — ecosystem of 137
    • — families and 9–14, 17
    • — fear and 13, 14
    • — loss and gain 29–30
    • — repeating 36
    • — timetable to 49
    • — vs freedom 13
  • wealthy, the see rich, the
  • withdrawal rate 38–39, 78
  • work from home 229–230
  • work vs labour 241
  • Zero Income Founders Club 221
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