Part V of the book · the part nobody teaches
The mortgage is step one. What you build next is the point.
Killing the loan leaves you holding two things most people never assemble: a proven monthly surplus, and an automation system that moves it without you. The book's final chapters explain — as education, not advice — what that engine makes possible.
Before payoff · Debt recycling explained
Why lenders treat two identical dollars differently
Australian tax law draws a line based on the purpose of the borrowing, not the security behind it: interest on money borrowed for your own home is not deductible, while interest on money borrowed to produce assessable income generally is. Debt recycling is the name given to the process of converting one into the other over time. The book explains the mechanics so you can follow the conversation — it does not tell you to do it.
- 1. Split — a portion of the mortgage is carved off as a separate sub-loan.
- 2. Pay it down — the engineered surplus is aimed at that split until it is near zero.
- 3. Redraw for an income-producing purpose — the available funds are borrowed again, this time for an investment purpose, which changes how that interest is treated.
- 4. Repeat — each cycle converts more of the balance, at the same total debt.
It is not free money and it is not for everybody: it adds investment risk secured against your home, depends entirely on your own tax position, and requires careful account hygiene to survive scrutiny. Chapter 17 is equally direct about when not to consider it. Anyone weighing it needs a licensed financial adviser and a registered tax agent first — Crown Money is a credit licensee and does not advise on investments.
After payoff · The habit you keep
Don't stop the habit. Redirect it.
The morning after the final repayment, the repayment itself doesn't disappear — it becomes free cash flow, every month, for the rest of your working life. Most people quietly absorb it back into spending within a year. The book's closing chapter is about the alternative: keeping the Friday automation running and giving it a new destination, so the discipline that killed the loan keeps working for you.
$647,952
Interest never paid on the worked example*
25.1 years
Of repayments freed up on the same example*
A proven surplus
Already found, already automated, already yours
Where that surplus should go afterwards — buffers, super, markets, property, or simply a shorter working week — is a genuinely personal question with real risk attached, and it needs a licensed financial adviser who knows your full situation. What this program guarantees you is the thing that makes any of those conversations possible: the money, found and freed.
*Figures from the book's $650,000 worked example at a constant 6.00% p.a. over a 30-year term, computed with standard amortisation maths; your loan, rate and results will differ. This section is general information about how these strategies work, not a recommendation to use any of them, and not advice on any investment, superannuation or insurance product. Crown Money Management holds an Australian Credit Licence, not an AFSL. Seek advice from a licensed financial adviser and a registered tax agent before acting.
