January 6, 2025 • 19 mins
Imagine breaking free from the relentless cycle of living paycheck to paycheck. In this episode, I share my personal story of how a simple shift in mindset—from scarcity to abundance—transformed my relationship with money. It's not about earning more but about thinking and acting differently with what you already have. We tackle the power of the Kaizen philosophy, focusing on being just 1% better each day through daily habits like waking up early and practicing gratitude. These small changes can accumulate into significant financial freedom, reducing stress and leading a more satisfying life.
We also explore practical strategies like the 50-30-20 budgeting rule to maintain control over your finances, ensuring you're not just spending impulsively. Discover the potential of leveraging other people's money through loans and mortgages to build wealth, as inspired by the insights from "Rich Dad, Poor Dad." This episode is packed with actionable advice on how to harness available resources, continuously work on personal growth, and unlock your potential for financial independence. Join us to learn how these strategies can pave the way to a more secure and prosperous future.
For any enquiries or to connect with Oscar, Zeke, or their company, Asset Road, listeners can visit the following links:
The advice shared on The Finance Bible is general in nature and does not consider your individual circumstances. The Finance Bible exists purely for educational / entertainment purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs.
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Disclaimer:
The information provided in this podcast is general in nature and does not constitute personal financial advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Asset Road Pty Ltd recommends you seek independent financial, legal, taxation or other advice as required. All investments carry risk. Past performance is not indicative of future results.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Imagine going from living paycheck to paycheck to
finally having control over yourmoney and living life on your
own terms.
It all starts with three simplethings that completely changed
my financial game.
These aren't about workingharder or getting a bigger
paycheck.
They're about shifting how youthink and act with money.
You want to know what they are.
(00:20):
Stick around, because thesehabits can completely transform
your relationship with money.
(00:40):
Welcome back to another episodeof the Finance Bible Podcast.
Zeke here and your co-host,oscar.
But before we get into it,please note that nothing in this
podcast should ever beconsidered as personal financial
advice.
Of course, if that is what youare seeking, reach out.
We'll get you in touch with thecorrect professionals.
Get the job done properly.
Sit back, relax and enjoy theshow.
(01:03):
Let's get into it.
Welcome back to another episodeof the Finance Bible Podcast
Today.
You and enjoy the show.
Let's get into it.
Welcome back to another episodeof the Finance Bible Podcast
Today.
You're with me, oscar, andtoday I've got a bit of a
special one for you.
So this one's all about my ownpast experiences in mainly
hidden habits to help you shiftyour mindset and unlock the door
(01:23):
to financial freedom.
They're personal habits that Iused to do three to four years
ago when I was feeling a bitstuck financially and mentally
in the same environment and kindof worked on those every day to
get out of that situation andthen try to help other people
get to the same.
I'll get straight into it.
Four years ago I was in a bitof a financial mess and when I
(01:48):
say mess I do mean it.
Looking back on it now I meanit.
So I had credit card debt.
I was on a minimum wage, I hadhigh rent because I was living
in the eastern suburbs in Sydney.
So, as you can imagine, therent was a lot higher than the
money coming in.
So I was left with basicallynot much money on the weekend.
So that's when the credit cardcame in and started spending on
(02:11):
the credit card to fund my life,really to fund my weekends out,
because I was new to Sydney, Iwas wanting to get to meet
people and go out, and go outfor dinner, for drinks etc.
And I was also living in asmall apartment, a two bedroom
small apartment.
I was constantly stressed abouthow I was going to get through
the week money-wise andfinancially, because I had X
(02:33):
amount of money coming in and,mind you, I was getting paid per
week, so a lot of people getpaid on a fortnightly,
especially a monthly, basis.
So the fact that I was stressedon a weekly basis that's an
issue looking back, likethinking about that now freaks
me out.
So, yeah, I was gettingstressed out how I was going to
(02:55):
get through and have money leftover.
Some weeks I had 50 bucks leftover.
Some I was negative.
Yeah, it felt like every step Itook there was a couple
backwards, but the hardest partwasn't about the money.
It was the mental toll that youhad, that it had on me.
So we all know we're onInstagram.
You're looking at people livingthe life, people you may not
(03:18):
know, people you may know, andthey're making all this money,
having a good life, traveling,and you then think to yourself
why aren't I doing the same?
Why aren't I traveling?
Why aren't I living the life?
Why don't I have a good income?
Why aren't I making money?
So the first thing I realizedwas comparison is a thief of joy
(03:38):
.
So, at all costs, never compareyourself to anyone else,
because you're never going tofeel good about it.
It's as simple as that.
You're on your own race.
You're on your own.
It's your own life.
Your only competition should beyourself and if it is yourself,
great, and it should be yourpast self.
So are you better than you wereyesterday?
And I always use the philosophyof 1% better every day.
(04:02):
It's a Japanese one of KaizenK-A-I-Z-E-N, so that just is
daily improvement, every singleday.
So always compare yourself toyourself if you are comparing.
Never compare yourself toanyone else, because you're
never gonna feel good about it.
Truly believed back then, I wasnever going to get ahead.
(04:23):
I felt like there was a ceilingabove me.
No matter how hard I tried, oryou know, to push through, I
couldn't really do it.
But over time I startedrewiring my brain because daily
habits, I started reading booksabout personal finance and
personal growth and personaldevelopment, which now it's the
(04:44):
only things I read, because Ijust resonate and I love them so
much.
And all about daily habits.
So getting up early, going,even just going for a walk,
going to the gym, going to get acoffee, I like to get up before
6am, ideally, you know, 5, 5.30is my ideal time Because, as
(05:06):
you know, if you do get uparound that time, there is
something different in the airwhen you get out.
It's a good feeling.
You feel like you are wellahead of the curve of the day
and you're in control for thewhole day ahead, because not
many people are up at that time.
But yeah, I started doinghabits, I started reading, I
started doing a bit of greatdaily gratitude, which I'll jump
(05:29):
into in the next bit in amoment.
But yeah, all these habits cametogether and then all of a
sudden, you get up, you'reexcited to tick off all these
habits before you go to work.
So it's perfect.
The first habit isn't aboutmoney at all, even though that
was the thing I was stressedabout.
It was just about my mindset.
So how could I rewire mymindset to help me with my money
(05:52):
thought?
And you often hear that mindsetis everything, which is true,
but I didn't truly get it untilI was facing a bit of credit
card debt and couldn't really goout and socialize and live the
life I wanted to because Ididn't have the money for it.
So I did make a choice One ofthose mornings when I woke up
and realized all right, I needto actually get ahead of my life
.
I can't stay in this constantstatus quo.
(06:14):
What do I do?
So the first thing I started, Idecided to move from a scarcity
mindset to a abundance one.
With that comes practicinggratitude every day.
So I still do that today, evenif it's three things.
I literally just write threethings in my diary every single
morning.
It can be money related, it canbe friendship related, it can
(06:36):
be relationship related, it canbe just literally going to the
gym or having a glass of water,it's whatever you're grateful
for.
It just sets up your day.
It makes you appreciate thesmall things and even if you are
stressed out with things goingon, it makes you really humble
and come back to earth andrealize it's actually not as bad
(06:56):
as we think.
You know, I get to go to thegym, I get to have a sweat every
morning, I get to go see myfriends, I get to go on a
weekend trip, for example.
There's so many things which wetake for granted.
But if you just take fiveminutes or not even like three
minutes a day and just jot themdown on your even on your phone
(07:17):
app or say it to yourself, itwill go a long way.
And that's the first thing I didto kind of shift my mindset to
this whole belief of that I canbetter myself, and that goes
literally back to the power ofbelief.
If you haven't done that before, activity for you.
So every morning for the nextseven, write down three things
(07:38):
that you're grateful for.
As I mentioned, it doesn't haveto be about the money.
It could just be as simple asI'm grateful for the opportunity
to learn about personalfinances, or I'm thankful for a
roof over my head.
Just doing the simple practiceof gratitude will rewire your
brain over time, and you may notthink it will, but it does, and
(07:58):
it happened to me.
I surround myself with manypositive influences in my life
now, which, over time, you kindof filter through and figure out
what do you want to achieve?
And then you surround yourselfwith those people, and people
around me do the same andthey're successful.
They're doing it.
They're doing it.
They're doing it every day.
And before I got into propertyinvestment, one of the first
(08:21):
mindset shifts I had was I readRobert Kiyosaki's book Rich Dad,
poor Dad, which talks aboutborrowing money to invest in
property, like borrowing debtfrom the bank, for example, and
I really wanted to do it myself,but I was terrified,
realistically, because I thoughtabout what if I lost everything
(08:42):
?
And then it took me a couplehours to realize.
But instead of focusing on thefear of loss, I rewired that to
focus on the opportunity infront of me.
So I started telling myselfthis property could help me
build wealth over time.
And with that, here I am today.
So it's funny how that happened.
The second habit I put in placewas mastering a budget.
(09:07):
I did the 50-30-20 rule, whichsome people are different,
everyone's different in thebudgeting, google budgets online
and there's thousands ofdifferent ones you want to do.
But yeah, I did the 50-30-20rule.
So before I get into that, it'sjust a different technique.
(09:28):
You might've heard it beforeand if you haven't, well, I'm
about to walk you through it.
But budgeting itself whenpeople hear it, don't really get
too excited because it meansyou've got a reel in your
spending and you've kind of gotto put together a plan.
But even though it may not bethe most exciting topic, getting
your money under control isessential if you want to build
(09:49):
wealth.
Without a solid plan for howyou actually allocate your money
, it's easier to fall behind inthese habits and end up spending
more than you earn, which iswhat I was doing for a couple of
years.
And if you do that, especiallywith credit cards, you can fall
behind.
So the 50-30-20 rule is 50% ofyour income goes to your needs.
(10:11):
So once you get paid, 50% goesto your needs.
So it might be your rent thatwas the first thing I did goes
to your needs, so it might beyour rent.
That was the first thing I did.
Your bills, your utilities, thethings you actually need to pay
to live.
So if you're renting, you'vegot to get all the bills out of
the way.
If you own a home, you've gotto pay your mortgage and your
rates and et cetera.
(10:32):
And then you've got 30% thatgoes to your wants, so dining
out, entertainment, travel, alltogether.
You may make different accountsif you want in that category.
And then 20% goes to savings orinvestments, so building wealth
, emergency funds, retirementsavings.
When I was on a lower wage, Iwas doing it like that and then,
(10:55):
once I gradually was increasing, I kind of switched that.
So I switched it to 30% goes tosavings and investments and 20%
goes to dining out.
But yeah, it's up to you howyou want to do that, but that's
the way I did and I kind ofswitched the two.
But this simple rule helped mestop feeling so overwhelmed with
(11:16):
my finances and, mostimportantly, it helped me build
a cushion of savings and startinvesting.
So once you get a clearbreakdown of where your money's
actually going, to the cent,you're less likely to fall into
the trap of impulse spending orliving paycheck to paycheck,
because when you're wanting tobuy a shirt, for example, and
(11:37):
you're about to check out, youknow in the back of your mind
that you've only got 53 left forthe week in terms of your
spending for your dining out andentertainment, um 30 percent
category.
So you're not going to buy thatshirt if it's cost 80 bucks,
because then you're going to bein the in the back, because then
you're going to be behind.
So knowing your money, whereyour money's going, how your
(12:01):
money's working, how much moreyou can spend, is vital.
If you budget, perfect.
If you don't take 15 minutestoday to go through your monthly
income and expenses, break themdown into 50, 30, 20 categories
and I'll tell you what you'lllikely be surprised at where
your money is actually going.
(12:22):
You might be spending more onmovie nights or Uber Eats and
things that you don't need to do.
If you just go to thesupermarket, it saves up and
Netflix saves up, or evensubscriptions.
They're big.
You may have a lot moresubscriptions than you think.
They're big.
You may have a lot moresubscriptions than you think,
(12:42):
but once you see where the gapsare, redirect that 20% towards
savings or investments, becausethis will help you build your
long-term wealth rather thanjust getting by day to day.
When I first applied the rule, Iwas actually shocked at how
much I was spending on thingssuch as subscriptions and going
out.
I knew I was going out andexploring Sydney when I moved
(13:03):
there, but I didn't know howmuch money I was actually
spending, which was ridiculous.
So, but yeah, over time I didthe budget, my savings grew and
I felt more secure, knowing thatI had money working for me,
rather than constantly chasingbills and getting told hey, you
got to pay this, you got to pay.
Hey, you got to pay this, yougot to pay this, you got to do
this, blah, blah, blah, blah,blah.
I'll keep it to the third habit, which there's just three quick
(13:27):
habits and three quick lessonsthat help you change your mind
and how to get ahead.
So I mentioned earlier aboutborrowing other people's money
to invest personally.
So borrowing the bank's moneyto buy an asset in your name and
then paying it back over time.
So this is all about leveragehow to use other people's money
(13:50):
to build wealth.
This is one of the mostpowerful tools you can use to
grow your wealth, especially inproperty investing.
The idea is simple you don'tneed to have all the cash to
invest.
Instead, you use leverage, likemortgages or loans, to fund
your property investments and,over time, the aim is for your
(14:10):
assets to appreciate in value.
So this allows you to grow yourwealth without tying up all
your own resources.
If you're considering propertyinvestment, take a look at your
own borrowing capacity.
So you may have a mortgagebroker, you may not.
If you do speak to them aboutit, they'll be able to whip it
up.
If not, there's so manydifferent websites you can go to
online and they can.
You know they'll ask for yourincome, your debt level, your
(14:32):
age, et cetera, what you'rewanting to purchase.
But have a look at yourborrowing capacity.
How much can you comfortablyborrow from the bank?
Understand the terms of themortgage and calculate the
rental income that you think youcan expect.
But when done correctly, therent from the property can cover
the mortgage repayments and thevalue of the property can
(14:53):
appreciate over time.
So this is the main when welook at leveraging and helping
clients leverage down the track.
This is what we look at.
We want to make sure that canthe rent pay the property and
cover the mortgage repaymentsand then, over time, that
property goes up in valuewithout the client having to do
anything at all.
If it does, perfect.
(15:13):
But have a look at your ownsituation.
For example, when I bought myfirst investment property, I
didn't have the full amountsaved up.
I used a 10% deposit and thebank literally covered the rest.
So I literally borrowed 90% ofthe purchase price for this
property from the bank topurchase an asset for myself and
(15:36):
my partner.
We both bought it together.
The aim is that this propertygrows over time, pays for itself
.
The rent does pay for itself,which is great.
And then, down the track, oncethe property goes up, you can
refinance, you can pull out theequity, you can invest in more
properties.
There's so many opportunities.
You can pull out the equity andif you've got renos or you want
(15:58):
to buy it on your occupy, youcan do that.
But leveraging allows you to dothese things and gives you so
much opportunity with buildingyour wealth and I didn't learn
that until I started readingbooks and listening to podcasts
that if you just hustle for acouple of years and build up 10%
, 20% of a property price thatyou want to purchase and no, it
(16:20):
doesn't have to be a million,1.5, $2 million property in
Sydney or Melbourne that youwant to live in it can be an
investment property for $400,000.
People think you can only buy aproperty if it's an
owner-occupier, but times havechanged.
It's not the case, especiallynow, because the price of
properties is so high and noone's going to save that money.
(16:42):
The best way to do it is to, inmy opinion and our opinion as a
company, is to, if you don'thave the income and don't have
the savings, to start withinvestment properties and then
leverage, leverage, build anabsolute empire and then, down
the track, you can sell oneproperty, for example, and that
can pay for your owner occupier.
It is so simple when you thinkabout it, but it's all about
(17:04):
mindset.
Shifting your mindset will helpyou get ahead in life and get
ahead in your investment journeyas well.
So to wrap up, here are thethree habits, simplified, that
turned my finances around.
So number one was my mindset.
So mindset over money.
Shift from a scarcity mindsetto one of abundance.
Practice your gratitude, threethings you're grateful for each
(17:27):
day.
Promise you it pays off.
Second, master your budget.
Get a budget, be used to it,live by the budget, use the
50-30-20 rule, and that will getyou control over your spending,
which is vital.
Third and last thing isleverage.
So, yeah, using other people'smoney to grow your wealth.
(17:48):
It is so important and sopowerful it's yeah, I can't even
say anything about it.
It's just insane If you haven'tread it as well.
Rich Dad, poor Dad, literallytalks all about leverage how to
do it, how it works, can't faultit.
It is perfect book and leverageis an amazing thing.
(18:09):
It can really help you set upyour life.
These habits don't just helpyou manage your money.
They help you change the wayyou think about wealth building.
Think about yourself.
What's your next move?
Are you going to start shiftingyour mindset today, or are you
going to keep doing what you'vebeen doing, especially last year
, year before, and not go alongwith your new year's resolutions
(18:32):
?
Are you going to put a budgetin place?
Are you going to start thinkingabout how you can leverage to
scale up your financial freedom,or are you not?
It's all about yourself.
You've got the resources,you've got people, you've got
podcasts, you've got teams likeus, you got pages like us.
It's so.
It's such a digital age, suchan informative age where we can
(18:54):
all literally just grab ourphone and we're educated.
So you've got everything atyour fingertips.
The question is, it's up to you.
How are you going to do it?
Are you going to take the leap?
Are you going to betteryourself?
Are you going to stay in thestatus quo?
But look, I hope you enjoyedthis episode.
These three things helped metremendously and I still do them
(19:16):
today.
I still do my budget, I stilldo gratitude and I I still do my
budget, I still do gratitudeand I will continue using
leverage for the rest of my life.
But yeah, if you found thisepisode helpful, please
subscribe, leave a review, shareit with someone else who you
think could benefit from it, butuntil next time, keep unlocking
your potential.
We hope you enjoyed the episode.
As always, you know exactlywhat to do.
(19:37):
Hit that follow button,subscribe whatever platform you
listen to this podcast on.
Also share it to friends,families, co-workers, whoever
you think may benefit from it.
But unfortunately, it's the endand we'll see you next week.
Imagine going from living paycheck to paycheck to
finally having control over yourmoney and living life on your
own terms.
It all starts with three simplethings that completely changed
my financial game.
These aren't about workingharder or getting a bigger
paycheck.
They're about shifting how youthink and act with money.
You want to know what they are.
(00:20):
Stick around, because thesehabits can completely transform
your relationship with money.
(00:40):
Welcome back to another episodeof the Finance Bible Podcast.
Zeke here and your co-host,oscar.
But before we get into it,please note that nothing in this
podcast should ever beconsidered as personal financial
advice.
Of course, if that is what youare seeking, reach out.
We'll get you in touch with thecorrect professionals.
Get the job done properly.
Sit back, relax and enjoy theshow.
(01:03):
Let's get into it.
Welcome back to another episodeof the Finance Bible Podcast
Today.
You and enjoy the show.
Let's get into it.
Welcome back to another episodeof the Finance Bible Podcast
Today.
You're with me, oscar, andtoday I've got a bit of a
special one for you.
So this one's all about my ownpast experiences in mainly
hidden habits to help you shiftyour mindset and unlock the door
(01:23):
to financial freedom.
They're personal habits that Iused to do three to four years
ago when I was feeling a bitstuck financially and mentally
in the same environment and kindof worked on those every day to
get out of that situation andthen try to help other people
get to the same.
I'll get straight into it.
Four years ago I was in a bitof a financial mess and when I
(01:48):
say mess I do mean it.
Looking back on it now I meanit.
So I had credit card debt.
I was on a minimum wage, I hadhigh rent because I was living
in the eastern suburbs in Sydney.
So, as you can imagine, therent was a lot higher than the
money coming in.
So I was left with basicallynot much money on the weekend.
So that's when the credit cardcame in and started spending on
(02:11):
the credit card to fund my life,really to fund my weekends out,
because I was new to Sydney, Iwas wanting to get to meet
people and go out, and go outfor dinner, for drinks etc.
And I was also living in asmall apartment, a two bedroom
small apartment.
I was constantly stressed abouthow I was going to get through
the week money-wise andfinancially, because I had X
(02:33):
amount of money coming in and,mind you, I was getting paid per
week, so a lot of people getpaid on a fortnightly,
especially a monthly, basis.
So the fact that I was stressedon a weekly basis that's an
issue looking back, likethinking about that now freaks
me out.
So, yeah, I was gettingstressed out how I was going to
(02:55):
get through and have money leftover.
Some weeks I had 50 bucks leftover.
Some I was negative.
Yeah, it felt like every step Itook there was a couple
backwards, but the hardest partwasn't about the money.
It was the mental toll that youhad, that it had on me.
So we all know we're onInstagram.
You're looking at people livingthe life, people you may not
(03:18):
know, people you may know, andthey're making all this money,
having a good life, traveling,and you then think to yourself
why aren't I doing the same?
Why aren't I traveling?
Why aren't I living the life?
Why don't I have a good income?
Why aren't I making money?
So the first thing I realizedwas comparison is a thief of joy
(03:38):
.
So, at all costs, never compareyourself to anyone else,
because you're never going tofeel good about it.
It's as simple as that.
You're on your own race.
You're on your own.
It's your own life.
Your only competition should beyourself and if it is yourself,
great, and it should be yourpast self.
So are you better than you wereyesterday?
And I always use the philosophyof 1% better every day.
(04:02):
It's a Japanese one of KaizenK-A-I-Z-E-N, so that just is
daily improvement, every singleday.
So always compare yourself toyourself if you are comparing.
Never compare yourself toanyone else, because you're
never gonna feel good about it.
Truly believed back then, I wasnever going to get ahead.
(04:23):
I felt like there was a ceilingabove me.
No matter how hard I tried, oryou know, to push through, I
couldn't really do it.
But over time I startedrewiring my brain because daily
habits, I started reading booksabout personal finance and
personal growth and personaldevelopment, which now it's the
(04:44):
only things I read, because Ijust resonate and I love them so
much.
And all about daily habits.
So getting up early, going,even just going for a walk,
going to the gym, going to get acoffee, I like to get up before
6am, ideally, you know, 5, 5.30is my ideal time Because, as
(05:06):
you know, if you do get uparound that time, there is
something different in the airwhen you get out.
It's a good feeling.
You feel like you are wellahead of the curve of the day
and you're in control for thewhole day ahead, because not
many people are up at that time.
But yeah, I started doinghabits, I started reading, I
started doing a bit of greatdaily gratitude, which I'll jump
(05:29):
into in the next bit in amoment.
But yeah, all these habits cametogether and then all of a
sudden, you get up, you'reexcited to tick off all these
habits before you go to work.
So it's perfect.
The first habit isn't aboutmoney at all, even though that
was the thing I was stressedabout.
It was just about my mindset.
So how could I rewire mymindset to help me with my money
(05:52):
thought?
And you often hear that mindsetis everything, which is true,
but I didn't truly get it untilI was facing a bit of credit
card debt and couldn't really goout and socialize and live the
life I wanted to because Ididn't have the money for it.
So I did make a choice One ofthose mornings when I woke up
and realized all right, I needto actually get ahead of my life
.
I can't stay in this constantstatus quo.
(06:14):
What do I do?
So the first thing I started, Idecided to move from a scarcity
mindset to a abundance one.
With that comes practicinggratitude every day.
So I still do that today, evenif it's three things.
I literally just write threethings in my diary every single
morning.
It can be money related, it canbe friendship related, it can
(06:36):
be relationship related, it canbe just literally going to the
gym or having a glass of water,it's whatever you're grateful
for.
It just sets up your day.
It makes you appreciate thesmall things and even if you are
stressed out with things goingon, it makes you really humble
and come back to earth andrealize it's actually not as bad
(06:56):
as we think.
You know, I get to go to thegym, I get to have a sweat every
morning, I get to go see myfriends, I get to go on a
weekend trip, for example.
There's so many things which wetake for granted.
But if you just take fiveminutes or not even like three
minutes a day and just jot themdown on your even on your phone
(07:17):
app or say it to yourself, itwill go a long way.
And that's the first thing I didto kind of shift my mindset to
this whole belief of that I canbetter myself, and that goes
literally back to the power ofbelief.
If you haven't done that before, activity for you.
So every morning for the nextseven, write down three things
(07:38):
that you're grateful for.
As I mentioned, it doesn't haveto be about the money.
It could just be as simple asI'm grateful for the opportunity
to learn about personalfinances, or I'm thankful for a
roof over my head.
Just doing the simple practiceof gratitude will rewire your
brain over time, and you may notthink it will, but it does, and
(07:58):
it happened to me.
I surround myself with manypositive influences in my life
now, which, over time, you kindof filter through and figure out
what do you want to achieve?
And then you surround yourselfwith those people, and people
around me do the same andthey're successful.
They're doing it.
They're doing it.
They're doing it every day.
And before I got into propertyinvestment, one of the first
(08:21):
mindset shifts I had was I readRobert Kiyosaki's book Rich Dad,
poor Dad, which talks aboutborrowing money to invest in
property, like borrowing debtfrom the bank, for example, and
I really wanted to do it myself,but I was terrified,
realistically, because I thoughtabout what if I lost everything
(08:42):
?
And then it took me a couplehours to realize.
But instead of focusing on thefear of loss, I rewired that to
focus on the opportunity infront of me.
So I started telling myselfthis property could help me
build wealth over time.
And with that, here I am today.
So it's funny how that happened.
The second habit I put in placewas mastering a budget.
(09:07):
I did the 50-30-20 rule, whichsome people are different,
everyone's different in thebudgeting, google budgets online
and there's thousands ofdifferent ones you want to do.
But yeah, I did the 50-30-20rule.
So before I get into that, it'sjust a different technique.
(09:28):
You might've heard it beforeand if you haven't, well, I'm
about to walk you through it.
But budgeting itself whenpeople hear it, don't really get
too excited because it meansyou've got a reel in your
spending and you've kind of gotto put together a plan.
But even though it may not bethe most exciting topic, getting
your money under control isessential if you want to build
(09:49):
wealth.
Without a solid plan for howyou actually allocate your money
, it's easier to fall behind inthese habits and end up spending
more than you earn, which iswhat I was doing for a couple of
years.
And if you do that, especiallywith credit cards, you can fall
behind.
So the 50-30-20 rule is 50% ofyour income goes to your needs.
(10:11):
So once you get paid, 50% goesto your needs.
So it might be your rent thatwas the first thing I did goes
to your needs, so it might beyour rent.
That was the first thing I did.
Your bills, your utilities, thethings you actually need to pay
to live.
So if you're renting, you'vegot to get all the bills out of
the way.
If you own a home, you've gotto pay your mortgage and your
rates and et cetera.
(10:32):
And then you've got 30% thatgoes to your wants, so dining
out, entertainment, travel, alltogether.
You may make different accountsif you want in that category.
And then 20% goes to savings orinvestments, so building wealth
, emergency funds, retirementsavings.
When I was on a lower wage, Iwas doing it like that and then,
(10:55):
once I gradually was increasing, I kind of switched that.
So I switched it to 30% goes tosavings and investments and 20%
goes to dining out.
But yeah, it's up to you howyou want to do that, but that's
the way I did and I kind ofswitched the two.
But this simple rule helped mestop feeling so overwhelmed with
(11:16):
my finances and, mostimportantly, it helped me build
a cushion of savings and startinvesting.
So once you get a clearbreakdown of where your money's
actually going, to the cent,you're less likely to fall into
the trap of impulse spending orliving paycheck to paycheck,
because when you're wanting tobuy a shirt, for example, and
(11:37):
you're about to check out, youknow in the back of your mind
that you've only got 53 left forthe week in terms of your
spending for your dining out andentertainment, um 30 percent
category.
So you're not going to buy thatshirt if it's cost 80 bucks,
because then you're going to bein the in the back, because then
you're going to be behind.
So knowing your money, whereyour money's going, how your
(12:01):
money's working, how much moreyou can spend, is vital.
If you budget, perfect.
If you don't take 15 minutestoday to go through your monthly
income and expenses, break themdown into 50, 30, 20 categories
and I'll tell you what you'lllikely be surprised at where
your money is actually going.
(12:22):
You might be spending more onmovie nights or Uber Eats and
things that you don't need to do.
If you just go to thesupermarket, it saves up and
Netflix saves up, or evensubscriptions.
They're big.
You may have a lot moresubscriptions than you think.
They're big.
You may have a lot moresubscriptions than you think,
(12:42):
but once you see where the gapsare, redirect that 20% towards
savings or investments, becausethis will help you build your
long-term wealth rather thanjust getting by day to day.
When I first applied the rule, Iwas actually shocked at how
much I was spending on thingssuch as subscriptions and going
out.
I knew I was going out andexploring Sydney when I moved
(13:03):
there, but I didn't know howmuch money I was actually
spending, which was ridiculous.
So, but yeah, over time I didthe budget, my savings grew and
I felt more secure, knowing thatI had money working for me,
rather than constantly chasingbills and getting told hey, you
got to pay this, you got to pay.
Hey, you got to pay this, yougot to pay this, you got to do
this, blah, blah, blah, blah,blah.
I'll keep it to the third habit, which there's just three quick
(13:27):
habits and three quick lessonsthat help you change your mind
and how to get ahead.
So I mentioned earlier aboutborrowing other people's money
to invest personally.
So borrowing the bank's moneyto buy an asset in your name and
then paying it back over time.
So this is all about leveragehow to use other people's money
(13:50):
to build wealth.
This is one of the mostpowerful tools you can use to
grow your wealth, especially inproperty investing.
The idea is simple you don'tneed to have all the cash to
invest.
Instead, you use leverage, likemortgages or loans, to fund
your property investments and,over time, the aim is for your
(14:10):
assets to appreciate in value.
So this allows you to grow yourwealth without tying up all
your own resources.
If you're considering propertyinvestment, take a look at your
own borrowing capacity.
So you may have a mortgagebroker, you may not.
If you do speak to them aboutit, they'll be able to whip it
up.
If not, there's so manydifferent websites you can go to
online and they can.
You know they'll ask for yourincome, your debt level, your
(14:32):
age, et cetera, what you'rewanting to purchase.
But have a look at yourborrowing capacity.
How much can you comfortablyborrow from the bank?
Understand the terms of themortgage and calculate the
rental income that you think youcan expect.
But when done correctly, therent from the property can cover
the mortgage repayments and thevalue of the property can
(14:53):
appreciate over time.
So this is the main when welook at leveraging and helping
clients leverage down the track.
This is what we look at.
We want to make sure that canthe rent pay the property and
cover the mortgage repaymentsand then, over time, that
property goes up in valuewithout the client having to do
anything at all.
If it does, perfect.
(15:13):
But have a look at your ownsituation.
For example, when I bought myfirst investment property, I
didn't have the full amountsaved up.
I used a 10% deposit and thebank literally covered the rest.
So I literally borrowed 90% ofthe purchase price for this
property from the bank topurchase an asset for myself and
(15:36):
my partner.
We both bought it together.
The aim is that this propertygrows over time, pays for itself
.
The rent does pay for itself,which is great.
And then, down the track, oncethe property goes up, you can
refinance, you can pull out theequity, you can invest in more
properties.
There's so many opportunities.
You can pull out the equity andif you've got renos or you want
(15:58):
to buy it on your occupy, youcan do that.
But leveraging allows you to dothese things and gives you so
much opportunity with buildingyour wealth and I didn't learn
that until I started readingbooks and listening to podcasts
that if you just hustle for acouple of years and build up 10%
, 20% of a property price thatyou want to purchase and no, it
(16:20):
doesn't have to be a million,1.5, $2 million property in
Sydney or Melbourne that youwant to live in it can be an
investment property for $400,000.
People think you can only buy aproperty if it's an
owner-occupier, but times havechanged.
It's not the case, especiallynow, because the price of
properties is so high and noone's going to save that money.
(16:42):
The best way to do it is to, inmy opinion and our opinion as a
company, is to, if you don'thave the income and don't have
the savings, to start withinvestment properties and then
leverage, leverage, build anabsolute empire and then, down
the track, you can sell oneproperty, for example, and that
can pay for your owner occupier.
It is so simple when you thinkabout it, but it's all about
(17:04):
mindset.
Shifting your mindset will helpyou get ahead in life and get
ahead in your investment journeyas well.
So to wrap up, here are thethree habits, simplified, that
turned my finances around.
So number one was my mindset.
So mindset over money.
Shift from a scarcity mindsetto one of abundance.
Practice your gratitude, threethings you're grateful for each
(17:27):
day.
Promise you it pays off.
Second, master your budget.
Get a budget, be used to it,live by the budget, use the
50-30-20 rule, and that will getyou control over your spending,
which is vital.
Third and last thing isleverage.
So, yeah, using other people'smoney to grow your wealth.
(17:48):
It is so important and sopowerful it's yeah, I can't even
say anything about it.
It's just insane If you haven'tread it as well.
Rich Dad, poor Dad, literallytalks all about leverage how to
do it, how it works, can't faultit.
It is perfect book and leverageis an amazing thing.
(18:09):
It can really help you set upyour life.
These habits don't just helpyou manage your money.
They help you change the wayyou think about wealth building.
Think about yourself.
What's your next move?
Are you going to start shiftingyour mindset today, or are you
going to keep doing what you'vebeen doing, especially last year
, year before, and not go alongwith your new year's resolutions
(18:32):
?
Are you going to put a budgetin place?
Are you going to start thinkingabout how you can leverage to
scale up your financial freedom,or are you not?
It's all about yourself.
You've got the resources,you've got people, you've got
podcasts, you've got teams likeus, you got pages like us.
It's so.
It's such a digital age, suchan informative age where we can
(18:54):
all literally just grab ourphone and we're educated.
So you've got everything atyour fingertips.
The question is, it's up to you.
How are you going to do it?
Are you going to take the leap?
Are you going to betteryourself?
Are you going to stay in thestatus quo?
But look, I hope you enjoyedthis episode.
These three things helped metremendously and I still do them
(19:16):
today.
I still do my budget, I stilldo gratitude and I I still do my
budget, I still do gratitudeand I will continue using
leverage for the rest of my life.
But yeah, if you found thisepisode helpful, please
subscribe, leave a review, shareit with someone else who you
think could benefit from it, butuntil next time, keep unlocking
your potential.
We hope you enjoyed the episode.
As always, you know exactlywhat to do.
(19:37):
Hit that follow button,subscribe whatever platform you
listen to this podcast on.
Also share it to friends,families, co-workers, whoever
you think may benefit from it.
But unfortunately, it's the endand we'll see you next week.
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