Hot Tips to Create Wealth for Happiness

Creating Wealth 

1. Mind Your Debt
   There are a few tricks you can do with your mortgage that are bound to amaze the neighbours. One of them is turning it into a tax break, the next best thing to getting rid of it altogether. Make your home loan interest-only and then plough the savings from the much lower repayments into super. That gives you the normal tax breaks on super but you can do better. Use the savings to pay for a salary sacrifice into super, so you get the cut your tax from your marginal rate 15% on what you put in. You may even pull yourself down a tax bracket or two. If you're already on 15%, again start with an interest-only mortgage but use the cash savings to take out an investment loan for shares or property. The interest on your investment loan will be tax-deductible. This certainly won't be suitable for everyone, and in any case all returns from your investment - dividends or rent - would have to be used to pay off your normal mortgage for it to work. You can let the investment loan capitalize because the interest is deductible anyway. If you already have a mortgage and investment loan, knock off the home loan faster by paying the bare minimum on the investment loan, which should be just interest.
2. Pay Yourself
   Money gurus always say, "Pay yourself first". There's just one little catch. By "pay" they really mean "save", which of course is a different kettle of fish. But there's no doubt it's the way to go. You have to force yourself to set some money aside for savings before you tackle all those bills. The best way to do this is have a amount - advisers suggest 10% of your salary but I'll leave the detail to you - direct-credited to a bank account can't easily get to. Oh, and don't run up the credit card because you're getting short of cash.
3. Don't save, INVEST
   Once you've got the debt under control, it's time to invest. In fact, that 10% you're paying yourself can be invested. But where to invest? The truth is it doesn't matter, so long as you don't do anything silly such as putting everything on a risky stock or buying a property in the wrong location.
4. Rent You Home
   Don't think property is the best way out. Although renting is seen as dead money, having a mortgage is no great shakes either. It's a big mistake to think of your home as an asset when in truth it's a liability. An investment property is different matter. In fact, the best way to accelerate your wealth is to rent where you live and buy and let an investment property. It's all about deductible debt. There's no capital gains tax on owning a home, nor rent to be paid, but remember you're paying higher interest than on an investment property or other asset, not to mention maintenance and annual expenses, if not a renovation or two.