Money can be
fascinatin|
...when you know how it works :)
But if you didn't learn about personal finance at school or at home, you might be feeling lost as to where to start.
You're in the right spot.
Money School's goal is to take you from confused to confident by helping you start your financial education journey off on the right foot, so you can enjoy a time rich life.
Let's start with some terminology Money School uses regularly around here...
We talk about Financial Independence (FI) ...a lot :)
Lots of people have a personal definition of FI. It can be being able to support yourself, or owning your own home.
We use this definition: FI is when your investments pay enough income to cover your living costs.
This is sometimes known as 'passive' income - though the word 'passive' can be misleading, as FI income definitely still requires effort on your part!
Your chances of getting to FI greatly improve if you:
Save
Pay yourself first by keeping some of every dollar you earn. Have a cash buffer to get you through emergencies. Excess savings can then be used to start building wealth through investing.Buy assets
Investments that pay you an income (e.g. coupons from bonds, dividends from shares, rent from property) means you don't have to rely on exchanging your time for money. You also get to keep the asset while being paid.Avoid bad debt
Going into debt for things that don't go up in value means you end up paying more than the sticker price through fees and/or interest plus declining value. It's not the best use of your money, and ought to be used judiciously (if at all).
"Financial independence doesn't mean you have to sit on a beach sipping Aperol Spritzes. It means getting to choose whether you work or not. How you use your FI is up to you. It's all about freedom of choice and about becoming time rich, which is why we talk about Financially Independent = Time Rich (FITR) rather than retiring early or work being optional."
Lacey Filipich, Founder and Author of Money School
The path to FI
The FI Supply model helps you make the most of your money in the areas you can control, and minimise your risks in the areas you can't control.
It's the basis for Money School's international award-winning book on becoming financially independent and reclaiming your life, out now with Penguin Life:
Check out Money School's book and resources
How Money School can help
Keen to learn more about financial independence and how to get there? Here's some content to help:
FI Supply Calculator
Knowing your personal FI target helps you work out how much you need to save and invest.Listen: Podcasts
Lacey speaks about financial independence and becoming time rich regularly on radio and as a podcast guest.Read: Articles
Check out our articles for outlets like ABC and Kidspot, along with our in-house blogs.Money School book
Winner of Best Book at the 2022 Money Awareness and Inclusion Awards (MAIAs).Grow Your Wealth Course, A$347
Learn how to invest and borrow wisely, taking into account economic context and your personal preferences.Check out our page on investing
Across what FI means and you're ready to start investing? We've got a page for that :)
Podcasts Appearances
On financial independence, becoming time rich, investing, retirement and tax
She Mines
You’re Not Bad With Money - Navigating Finances in FIFO
Length (mins): 64
Get Rich Slow Podcast
- Will climate change crash the housing market? (part 2)
Length (mins): 47
Get Rich Slow Podcast
- 1 in 10 properties could become uninsurable due to climate change by 2035. What happens then? (part 1)
Length (mins): 34
The Growth Concept
How to Protect Your Wealth in an Uncertain Future: Climate Change, Property & Investing
Length (mins): 59
See more