Thursday, 28 February 2013

February 2013 in review

The Millionaire on Heel’s mission to accumulate $1 million is going gangbusters at the moment.  It’s mostly due to the bull share market here in Australia, but it is quite pleasing to see the numbers climbing!  This month’s progress looks like:

That’s more than double where I’d forecast to be when I set up the plan last month – or two months ahead of schedule!

Other highlights of the month include:
  • Finalising the settlement on my mortgage refinance
  • Continuing to try at least one new savings tip a week from my blog
  • Getting all the paperwork done to establish my small business venture (one small goal in my financial plan for 2013)
The settlement on my mortgage refinance is finally complete.  All I’m waiting on now is the final cash reimbursement from the cash back mortgage broker I used.  I will be better off by more than $5,000 after tax per annum for the next three years – or the equivalent of cutting more than eight years off my mortgage term.

Book review: Ordinary Millionaires

Ordinary Millionaires by Jim McKnight was written in the early 2000s.  Its focus is on ordinary people who have built a property portfolio, not through shonky property schemes or highly leveraged lending scenarios, but rather through determination and generally hard work.

The book is structured into a series of case studies based on interviews conducted by the author:

Chapter 1: Ordinary Millionaires
Chapter 2: The Benchmark – borrow, buy, and never sell
Chapter 3: The Renovators – how to get a harbourside mansion on average wages
Chapter 4: The Cash Flow Approach – how to make $7 million by breaking every rule in real estate investment
Chapter 5: The Speculator – gambling on real estate using computers
Chapter 6: The Scrounger – how to get ahead on very little
Chapter 7: The Owner Builder – dealing with minor annoyances such as not having a building licence
Chapter 8: Higher Use – something’s beneath the grunge
Chapter 9: The Agent – it’s a fearful temptation, but how could you possibly go wrong?
Chapter 10: The Banker – to lie against the wall is to die
Chapter 11: The Taxpayer – slow, slow and steady, but inevitable
Chapter 12: The Builder – he who has the most toys when he dies wins
Chapter 13: Selling Ideas – how to get there quickly if you are in a hurry
Chapter 14: Extraordinary Millionaires? – do something, anything