Forget Your Past, Create Your Future

Forget Your Past, Create Your Future

Are you leading your life based on your past experiences?

So many of us are walking around in life totally corrupted by subconscious thought patters, which in turn start to become the patterns that create our future.

If you wake up in the middle of the night, you don’t need to turn on a light because you know exactly where the bathroom is.

This same kind of unconscious behaviour is also present in the day to day decisions we make.

Try something new? Nah, last time I did that I failed.
Apply for a new job? I will rejected
Start a new business venture? I am not smart enough

These thought patterns are like channeled out rivers streaming through our sub-conscious, but much like the beggining of a new stream, all you need is a small deviation of the water to create a new channel, and new pattern.

Do You Know How Much Money You Will Need to Retire Financially Free Without Relying on Your Super?

Do You Know How Much Money You Will Need to Retire Financially Free Without Relying on Your Super?

The problem with attempting to answer this question is that it is far more painless to avoid the truth.

Why?

Because the truth behind the answer can, for most people, be very painful.

Why is that?

Because the number seems so BIG that it’s better to avoid it and just pretend that something magical will happen in the future that will address all our financial needs. 

But the real truth is far from what you are thinking.

Look, I had nothing. Zip…not a cent….broke…and I had no education. Yep, I didn’t fail my end of school exam….I didn’t even sit through them all.

So, just like most people, things looked a little hopeless for me. Then one day I met my mentor and everything changed. Here’s what he told me to do, and you can do it too.

 Just before we go there, I want to answer the question above.

Do you know how much money you will need to retire financially free without relying on your super?

The answer is easy to work out, so here goes.

1. Financial freedom equates to $60,000 a year debt free.

2. Debt free means you have over 90% of your home mortgage paid off, and no significant credit debt.


3. $60,000 a year means that you can, in retirement, take 2 holidays a year (I’m not talking about cheap Bali flights, I mean taking holidays that inspire you, that are adventure driven such as Caribbean Cruises, the Great Wall of China, the Seven Wonders of the World, Himalayan mountain trekking and so on). It also means that you never, ever again stress about bills or gifts for the family at Christmas. All that is finally behind you. You are now living in inspiration and not desperation.

4. The average Australian in their 40’s to 60’s today, on average, will live to their early 90’s. So, we have to take best case scenario, that you are healthy and will live to the average.

5. On average we retire at 68. That doesn’t mean you can’t retire from the ‘9 to 5’ grind earlier, it means that we are using 68 years old as an indicator.

6. Therefore, on average you will live for 23 years in retirement needing $60,000 a year, that’s just short of $1,400,000.

Now let me show you first how difficult it is to reach that level of financial worth, and how easy it is.

If in property you had an investment property that is positively geared returning $160 a week to you, and you received this with an additional 3% bank interest, for 97 years (yes, 97 years), you’d only just hit $1million. Well short of the mark.

So it’s NOT about getting into property, it’s about getting into a property that delivers the result YOU NEED. Here’s how you do it.

1. The median value of property in Australia today is around $680,000

2. The median income tenant market, CANNOT afford rent at the $680,000 level.

3. You must focus on the median income tenant market. Why? Because the tenant is your business partner. You need them. They pay for your journey to financial freedom. So, you need to focus on the mass market to get the best outcome.

4. That market has a comfortable affordability range for a property valued between $400k and $500k.

5. Now here’s the key – You need a property cycle of around 10 to 12 years (a cycle means the property doubles in value).

6. Therefore 1 property, valued at say $450,000, going through one cycle will grow your worth by $450,000.

7. Do that 4 times over 5 to 12 years (whatever is comfortable for you), and you will have a net worth of $1,800,000, well beyond your requirement. So, it only takes 4 investment properties BUT the properties must fit a particular demographic because only 4% of investment properties meet the requirement you need for financial freedom.

Now back to what my mentor told me to do, and this is how I made it all happen. You can too. His name was Paul, a great man who hailed from a mega wealthy property family.

 Paul told me the following:

1. It doesn’t matter that you had no education.

2. Find someone who has cut the path through life that you are trying to cut, and simply follow their lead.

3. Get into a community of likeminded people, that way you feel supported and inspired.

5. The successful people in life have a system. Learn it and follow it
.

6. Whatever you have been told about making money….forget it. It most likely doesn’t fit your goal.

7. When getting into property, NEVER EVER go it alone.

8. Property is a long-term strategy, be in for the long haul. It’s all worth it in the end.
 AND MOST IMPORTANT, PAUL DRILLED THIS INTO ME.

9. Operate with absolute integrity. Property is a long-term strategy, and if you are not completely honest and open, your world will collapse.

My advice….follow the simple principles and you will see that your goals are far more achievable than you ever gave them credit for.

 

I am currently doing free property and mindset workshops all over Australia. Check out upcoming events to secure your seat at the next one in your city.

The Alarming Facts as to WHY Most Australians Will Retire With Not Enough Money in the Bank.

The Alarming Facts as to WHY Most Australians Will Retire With Not Enough Money in the Bank.

Here’s the real facts, not the disguised unknowns about retirement in Australia.

This is the real truth behind retiring in Australia.

Don’t let the facts scare you, because there is a group of mum-and-pop’s out there who decided and acted BEYOND the statistics you are about to read.  There is a group of ‘9 to 5’ workers, who decided to act greater than their past and who, by following the path laid down by others who escaped the rat race, actually made it.

The statistics for Australian Workers are as follows:
1. 81% of retirees end up on the aged care pension-  Now it wasn’t long ago the pension was $396 for a single and $512 for a couple.  In my eyes…..that’s poverty here in Australia.

2. 95% of Australian’s never achieve financial independence- This is all down to the fact that they never planned their future, acknowledged that they needed to do something, and were blinkered in their approach.  No matter what, the future is coming whether we like it or not.

3. 40% OF Australian workers are forced into retirement before they are financially ready to retire  – This is due to illness, injury, and many other factors.  Yet we live our lives as though everything tomorrow is going to be just fine.

4. Most Australians are retiring on a benefit far less needed to sustain them in retirement meaning they will need to access social security to survive. (So after working their fingers to the bones for 50 years they end up on government handouts).

5. You are only ok as long as your Super lasts- That means we need to take responsibility and act beyond what our Super will deliver. If your Super isn’t over a million at retirement, you could run out of money.

6. The CPA, the body representing the accountancy profession, compulsory Superannuation has had minimal impact on Australians capacity to save for a self-funded retirement-  Again, Super alone isn’t enough.

7. Positive geared properties without significant growth will not deliver the growth you need for financial freedom.
With a positive geared property offering $600 pm in your pocket, for 97 years at 3% interest, will only just reach $1million.

So how do you work through these stats, and what are the statistics of those who step outside the square.  Here goes:

Association of Super Funds Australian state that financial freedom is $60,000 per year.

But for how any years?  Well in 1898 the average Australian was in their late 50’s and died soon after, on average.  In 1945 the average Australian lived to their late 60’s early 70’s.  In 1985 the average Australian lived to their late 70’s.  Today the average Australian lives to their late 80’s.  So as you can see, we are living longer.  Great news right.

Therefore, financial freedom equates to $60,000 per year between the average age of retirement of 68 and the lifespan of you reading this article.  On average then you need to plan to live to your early 90’s.  So financial freedom is $60,000 x 25 years. That’s $1.5mil

How to achieve this in property?

Property values in Australia ALWAYS double per cycle. Watch these historical values and you will see how you can achieve financial freedom through property.

  • 1972 Australian median was $16,600
  • 1975 Australian median rose to $32,200 (doubled in 3 years)
  • 1983 Australian median rose again to $66,400 (doubled in 8 years)
  • 1988 Australian median rose to $132,800 (again doubled in 5 years)
  • 2001 Australian median hit $270,000 (again doubled)
    Today the median is $658,800

Therefore with 4 x strategically picked (not selected by your mum, dad, or best friend Bob, but by following a system), valued at around $400,000, acquired by you over the coming 5, 10 or 12 years, and going through a cycle, you will have achieved financial freedom.  And the great news is, that those properties will do the same thing, all over again.

The current shortage of housing in Australia today is 248,000 with a big demand IN CERTAIN AREAS, for investment properties (remember, you only need 4 to achieve financial independence)1.25 Million Australians millionaires made it in Real Estate and financial holdings

Property is the cornerstone of many ultra high net worth individuals with residential property the most popular sector for investors

Millionaire numbers will grow in Australia by 82% over the next 5 years and as you can see, most will have achieved that status through property.
Sources:

Australian Bureau Of Statistics ABS

Deloittes – The worlds largest professional network service provider.

Source: Mike Steketee – Inside Story – 18th Feb 2013

Inside Story 2013

Finder.com – Millionaire Calculator

Credit Suisse.

Knight Frank – Domain.com