Building Wealth Without a Salary: Exploring Fixed-Income Investments

February 3, 2026

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Want to learn how to make money without a salary?

There’s a common misconception that wealth generation can only happen with earned income. That’s far from true. Fixed-income investments have consistently delivered solid returns… Even when stocks go haywire.

Here’s what’s unique about them:

They keep money coming in 24/7. No commute. No manager. And definitely no morning alarms.

The good news is fixed-income investing is larger than ever. As of 2024, the global fixed income market reached $145.1 trillion in value. That’s bigger than the global stock market.

Yep, trillion… with a T.

Here’s what you’ll learn:

Fixed-Income Investments Help Wealth Accumulation
First Mortgage Secured? Here’s What It Means
Fixed-Income = Passive Income
Popular Fixed-Income Investing Strategies
Beginner’s Guide to Mortgage-Based Investing

Fixed-Income Investments Help Wealth Accumulation

Fixed-income investments have one huge advantage over most other markets…

Steady income.

Stocks can fluctuate wildly from day to day and year to year. Fixed-income assets pay reliable returns. Typically in the form of interest paid at regular intervals. No guesswork. No uncertainty.

That’s why they’re ideal for wealth accumulation if you’re not relying on a salary.

If you’re an Australian investor seeking maximum returns, a first mortgage secured investment should be at the top of your list. A high-quality first mortgage is a type of fixed-income investment backed by real estate. And if things go south, the investment itself is secured by physical property. Companies like the best mortgage fund Australia allow investors direct access to these types of high-quality, mortgage-backed investments.

Think about it:

Real estate security + fixed-income = a recipe for wealth creation.

First Mortgage Secured? Here’s What It Means

Let’s break down how a first mortgage secured investment works.

Investors give cash to a mortgage fund. The fund then lends that money to borrowers as first mortgages. The term ‘first’ is very important here. Borrowers pay interest on that loan which gets funnelled back to the investors as income.

A first mortgage secured investment means the loan is secured against the borrowers property and it has priority over all other debts and loans.

Essentially it’s a fixed-income investment where your money is loaned to borrowers as mortgage capital.

The key word? First.

Being a first lien means the investment takes priority over every other debt the borrower may have against the property. First mortgage holders are paid first in the event of a default.

This matters because it substantially lowers your risk.

Fixed-Income = Passive Income

If you want to learn how to make money from home, pay attention.

Investing in fixed-income securities is a great way to generate passive income. And passive income is crucial to accumulating wealth if you don’t have a salary.

Let’s keep it real:

According to Australian Bureau of Statistics research, more retirees are relying solely on superannuation to support themselves in retirement than ever before. In fact, the percentage of retirees using super as their main income source grew from 20% to 28% between 2012 and 2022.

If more retirees need investment income to survive, that means more Australians need passive income.

Income from fixed-interest investments grants you many things:

Predictable payouts
Security of your initial capital
Lower volatility
Ability to compound returns over time

Combine that with real estate security and you have yourself a wealth-building machine.

Income + security = wealth.

Popular Fixed-Income Investing Strategies

Fixed-income isn’t one size fits all. Here are some of the most popular ways people invest with the goal of receiving steady returns.

Bonds

Arguably the oldest form of fixed-income investing, bonds are debt securities issued by entities like corporations and governments.

Government bonds in particular are some of the lowest risk investments around. But that safety comes at a cost. Returns will be among the lowest you’ll find anywhere.

Corporate Bonds

Corporate bonds aren’t much different. They pay lenders interest in exchange for capital. The risk – and therefore reward – is slightly higher than government bonds.

Mortgage Funds

You guessed it. This plays a big role in first mortgage secured investments.

Mortgage funds work by pooling investors money and lending it out to borrowers in the form of mortgages. The interest generated from those loans is paid out to investors.

Mortgage investments often offer higher returns than government bonds while still providing a strong security buffer due to real estate backing.

Remember: The difference between mortgage funds and other forms of fixed-income investments is real asset cover. Mortgages are secured by property which means there’s tangible security behind the investment.

Term Deposits

Term deposits aren’t always classified as fixed-income. Think of them more as ‘risk-free’ savings accounts.

Invest money for a fixed period of time and earn interest on that deposit. Easy. Safe. But it probably won’t beat inflation over the long haul.

Beginner’s Guide to Mortgage-Based Investing

So how do you actually get started with first mortgage secured investments?

Investment due diligence is crucial. There are a few factors you’ll want to consider before allocating funds to a mortgage investment product:

Low LVR (loan to value ratio). Ideally, you want to see LVR’s under 75%.
Operational history. Look for well established funds with a proven track record.
Operational transparency. Make sure you know where your money is going and how investments are made.
First position only. Double check the fund is investing in first mortgages exclusively. Second and third mortgages aren’t secured investments.
Payment frequency. Look for monthly or quarterly pay schedules.

The ideal mortgage fund balances competitive returns with low-risk portfolio positioning. When done correctly, a first mortgage secured investment shouldn’t compromise on one for the other.