56. Cost of living is killing you. What the rich know that you don’t. Our Personal Portfolios Revealed.

Inflation Australia is around 6%. What we're saying that if you work your ass off over the next five years to save $50,000 by the time you've saved that over the next five years it's gone in purchasing power. This is like what people don't understand. You are fighting against the system.

Welcome back to another episode of the Benneberg show with your favorite NBA and high school dropout. Today we're talking why you're getting absolutely railed by holding cash and why having crypto in your portfolio is a good thing and how Bergs and I have our portfolio set up now we've done a similar episode about six months ago but we thought it'd be a good time with everything that's going on with inflation and the Fed rising interest rates and CPI and cost of living and everyone you know talking about how little money they have left over the end of the week, how to actually get out of that system, how to get escape the rat race. Why there's only two real ways you can actually get out of that consistent battle of like living paycheck to paycheck and how Bergs and I are thinking about that and how we are investing ourselves the time horizons and goals we have so you can take that into your own investing strategies and execute a better crypto and just broader investing strategy Burgs, how are you mate?

I'm doing so well. I'm post surgery, I can breathe normally and I'm really looking forward to this episode and the way that Ben and I have prepared for this is did a video a few weeks back how to calculate your net worth in five minutes and we've got our allocations and we're big not financial advice warning on this. Do see your professional. This is just general and what we're doing and how we are structured given our station in life. I'm really excited to hear your thoughts on this Ben. Mate, let's kick this off and get into it.

Let's kick it off now. This is a bit of a follow on from episode 53 of How I became a millionaire from crypto and how you can too. So that goes a bit deeper into my specific crypto investing strategy as well as how you can.

Trial building up your crypto portfolio and how I would be allocating crypto right now if I was starting from zero. So if you haven't checked out that episode number 53 is a cracking one. But I want to start.

It's amazing there's. You dropped a lot of knowledge in there man. And all of our lessons really came out the years and years that I've been investing. But also crypto and you in crypto too. You can learn so much from that episode.

Yeah, yeah, so go and check that out. Episode 53. But what we wanted to start off with is just the cost of living Bergs like I've been speaking to some people, you know, even some people close, close to me that you know, are really struggling with you know, living right now. Like you know, having enough money at the end of the week to pay for food and like you know, looking to downsize their already small one bedroom apartment in like suburban like Melbourne and Sydney to go and live with other people to try and save money. And they're on 70, 75,000 people. 70, $75,000 a year, like that's a decent salary. And like people are struggling. The cost of living has soared. And this is off the back of the amount of money that was printed during COVID from the U.S. government. You know, we printed trillions of dollars in the ecosystem and then you know, we inflation was out of control. We got up to close to 10% here in Australia. In the U.S. uK is already, sorry, still at about 10% inflation. And the Fed are fighting to try and reduce that inflation by rising interest rates. So when you rise interest rates theoretically it slows down the velocity of money but it also impacts you know, things like mortgages and loans that you're having to pay back to the bank. You know, the amount of people with sort of like jobs. So like the unemployment rate is at all time lows which means that it's becoming harder to hire more staff. It means that you're having to pay more for those staff which means that you know the cost of your business is increasing which means you need to increase revenue which equals you need to increase prices. Like this is just all interconnected.

Yeah.

And people are struggling bugs.

The flow on effects are absolutely huge. And even just what you said there, think about this, you have to hire someone new cost of living has gone up. You have to pay them more than the other people in your business. They see the ad or they find out how much they've been paid. You have to increase their wages as well. And then what do you do? You got to increase prices so consumers pay more and it's just a never ending cycle. And then your mortgage rates go up so you have to pay more over there. Everything you buy in your life goes up. And what we're doing is we're paying for our sins. Like we had Covid we had lockdowns, we printed a lot of money and we smoothed that out and now we have to pay the piper. The reason we're doing that is to, to avoid hyperinflation, to calm things down, constrict the money supply, make it more expensive. So there's a disincentive to spend and it seems to be kind of, you know, working for now. And it's one of those things where you take shorter term pain than a longer term, you know, multi, two, three, five year kind of pain.

Yeah, and to put this into context, there's this thing called the CPI inflation, which is the inflation rate that the government uses to track. It's called the Consumer Price Index. You know, how the increase year on year or month over month, the price, the, you know, price of goods and services increases. Now the equation for how they figure this out, Bergs, is just ridiculous. Like, it's like, it's like 15 plus 21 equals 3. Like that's, that's the, basically how they figure it out. Like they pick and choose select goods and services to bring that number down. And we're looking at a chart here in front of us, so maybe Bergson bring it up if you've got it there.

So I said on the flag, but talking about it for the podcast listeners. So this is basically a chart that's showing a range of different consumer goods and services in the US and the price changes between January 2000 and June 2022. Now this chart is showing us that over the course of the last 22 years, the overall inflation has actually been closer to 74%. Now this is over 20 years, but some of these things are insanely more expensive and heading past. You know, there was sort of steady growth for a lot of these things through like 2010 to 2020, but after 2020 to now, there's been a sharp increase. And some of these things include new cars, household furnishing up maybe 15 to 20% in the last couple of years. Housing, food and beverages, average hourly wages, hospital services, medical care services have skyrocket into sort of the 80, 90, 100% increase of prices for these services over the last, you know, few years, which is just astronomical.

Burgs, it's so crazy. And I was reading the Psychology of Money recently and they were saying that they basically linked 9, 11 to college tuition fees and how that happened. Then they printed money and they went through a GFC and then there was huge unemployment. Housing fell and then people went in droves to get reskilled, go to college, which is uni and then upskill and then the fees go through the roof. It is just like it is phenomenal. All those knock on effects and fat tails. Yeah, you just. It's really well illustrated in this graph and I like your point about we get. Okay, let's talk about CPI for a sec. Cpi, what they do is they get a basket of goods. So the average person will need these things. Fruit, vegetables, home car, whatever it may be. The challenge with CPI is first of all, it's not representative of my lifestyle or your lifestyle. It's an average, which is okay because you're comparing averages to averages. But what they do over time and the big failing in CPI is they don't account for quality. So you get a TV. TV 20 years ago was small, it was shitty. Now it's like bloody 80 inch whatever it may be, huge technology increase. Same with laptops as well. It's more productive, you can do more. But no, a laptop is a laptop is a laptop. And maybe 50 years ago your home might have been a quarter acre block, four by two. Now they're like, oh no, an average home nowadays will be a three by one or an apartment. So the quality has actually shrunk. And the incentive of the government, what they want to do is keep inflation to 2 to 3%. So that means the economy is increasing a little bit each year, but not too much. That is uncontrollable. So people are generally happy when it's out of control. And you're the guy that has to report it. What do you want to do? You want to report the lowest number you can. If you report the high number, someone's coming and chopping off your head tomorrow. You better watch out. And this is the thing, like we look at petrol that's like doubled. We look at a lot of costs that have increased, you know, 2, 3, 4, 5 fold. Yet we're getting these 8 to 10%, 6% inflation numbers. They don't really match up.

Yeah, it's wild times. And for a lot of people you know, including, you know, people I know don't hold any assets, they only hold cash. And what we're saying here is cash, cash itself is an inflationary. Like if you put $10 in your bank, it's not worth 15 like a year later, right? Like the interest rates are so low, you're never going to get that sort of increase on your cash. So what happens is this thing called your purchasing power, the ability to purchase goods and services with that cash decreases. And this is a Major problem for big businesses, right? Like if you're sitting on a absolute truckload of cash, the purchasing power by holding that cash continues to decrease. And when you're talking about massive volumes of cash, like it's a big, it's a big decline in what you can buy. So the same problem is with your families and individuals and just everyone. Like by holding cash, you're not in an asset that grows with inflation, right? So if we think about property, if you were to buy a property 10 years ago and Bergzown's a property like that, that total value of that property will increase over the time, but so does other properties as well, right? So if you go and sell that property now, it's probably only going to buy you sort of a similar style of house down the road. It all increases, but the value increase over that period of time. If you just held cash at that same point, that won't increase. You won't be able to get any, any additional purchasing power.

Exactly. And I'll say it again in the function of inflation is to erode capital. And I've done, I've done the math spin, I've done the calculations. So let's say you've got $100,000. You know, you got a nice chunk of money good on you in the bank at 6% inflation after five years, five years have gone by. Your $100,000 is worth $74,000 purchasing power. So if you could buy $100,000 car, you could buy a Tesla year one, year five, you can't anymore. And if it's at 10% after five years, it's only worth 70 grand. Let's bump that up, let's go to 10 years. You hold your. Because people are very risk averse, right? People. The price for investing is doubtless fear, uncertainty. It's watching the numbers go up, watching them go down, watching you lose money but also make money. That's very scary to a lot of people. But that is the price you have to pay if you want to succeed. And if you don't, you have your money in the bank. After 10 years, at 6%, your 100 grand is worth 54,000. And at 10%, it's worth 48,000. After 10 years, at 6% or 10%, you've lost half your purchasing power, you've lost half your money. So think about this $50,000. How long would you have to work for 50,000? Take your 50 grand, add your tax on top, and that is how many hours you would have to work by not investing so it's incredible.

Let's just slow that down again. This is happening right now. This is not potentially, if inflation increase. This is right now inflation. Australia is around 6%. What we're saying that if you work your ass off for the next five years to save $50,000, by the time you've saved that over the next five years, it's gone in purchasing power. This is like what people don't understand. You are fighting against the system.

Yes. And having your money in the bank, you get maybe, let's say be generous, 3% interest. The bank takes your money, lends it out at 6%, gives you 3% on that 3%. You have to pay tax because that's income. So you're going to pay another at least 30% on top of that, you end up with 2%. You're making 2% a year, you're losing 4% a year extra on top of that.

And can I add, you don't put the money in the bank. So the, you know, because the mainstream, you know, narrative is that you save cash and all this. So by all means that you should hold cash. But do you think the banks are holding your cash? No, the banks are lending that out. The banks are literally. It's called. Oh shit, what's it called? Bergs. The hypothecation. Rehypothecation.

Yeah.

Which basically is a big word for. We're just going to take, take that 100 exit and just lend it all out.

And let's, let's get even more granular here. So in the States, this is really bad. So they do two things, and this is mainly with financial institutions. And you can Google this, it's called co mingling. Hypothecation and rehypothecation commingling is Ben and I both put $100 in the bank. They put it in their safe. We go to the bank, I'm like, can I have $100? They show me the hundred dollars. Ben goes to bank, can I have my hundred dollars? They show him the hundred dollars. It's still there, but it's the same hundred dollars. Right. That's the challenges with co mingling. Hypothecation is where you take that hundred dollars and you have an IOU against it and you lend it to, I know Fred down the road and you say, we've got a hundred dollars at our bank, we'll lend it to you. But then you have rehypothecation where you actually lend out Fred's lent out money. Right. And there was a Classic. And pretty much the numbers in the States, if you look at Cathie Wood stuff, it's roughly two to three and a half times the actual amount they have. So they have a hundred dollars, they'll lend it out two and a half to three times. What happens when an event happens or a bubble or inflation or we all make claims on that? Well, you go to your safe and you don't have the money there and you're in trouble. And that's what we're starting to see.

We just saw that a couple of weeks ago with Silicon Valley Bank. This is exactly what goes on as soon as you get people running to get the money out of the bank. Guess what guys? The money isn't there.

Yeah, that's it. And this is the game they're playing. And specifically with those guys, they invested in long term bonds because they're like great. Bonds are safe. It's the safest thing you can do. The problem is inflation is outpacing bonds. So if you're getting inflation 6% a year and you've got a 10 year treasury bond and it's at like 3 or 4% when you, when that's at maturity, you're going to end up with less money than inflation. So you're actually losing money by investing in that bond. You need to report that on your balance sheet. You've got a hole in your balance sheet that you need to patch. So if there were all claims on the money that you had, you would not be able to produce that money for your customers. And banking, that's a problem. And one thing I will say, banking in Australia is a lot better than the States. We have a lot stricter rules around commingling and hypothecation and deposits and guarantees. So I'm a lot more confident in Australia. But these are just the things that are happening globally that, that will eventually flow on and affect us.

Now there's two way, two main ways you can get out of this system, right? And out of the system is, you know, you're losing your, your money through just holding cash. One is investing, investing into assets. Assets like property, gold, Bitcoin stocks, et cetera, et cetera. The second way is owning a business. So owning a business that is generating revenue from other people so that, you know, could be a solopreneur business, it could be you selling art, it could be you delivering a service, it could be, you know, whatever that might be where there's money coming in 24, 7 or you know, or you know, sort of all day or year round when you aren't directly tied to, you know, every single hour that you put in, basically a revenue generating model. And that's a, that's a business. They're kind of the two main ways you can get out of that system.

Yeah. And that really the top 30% of people, and by when we say top, we mean they have more money or they're wealthier, they control more assets than the lower 70%. They understand one thing you need to invest in appreciating assets that are tax friendly. You need to put your money somewhere and you don't need to earn heaps of money to do this. You just need to get started. And the general rule that all the finance guys say is something like 10% of your pay. There's even the book Profit first for businesses. Take 10% and put it in your profit account with that, invest it and the rest, you know, is for your spending, your bills, everything, and stick to that lifestyle that way, week on week, or if you get paid monthly, you're getting that 10%, you're putting it away, you're compounding, you're investing in those assets and you're benefiting. And even things like the bank, there's a saying like don't put your money in the bank, buy the bank. Why would you give them your cash when you can own a piece of the bank, get a dividend and share in the profits? And even just like you're incredibly right where you need to invest, there's two other ways you can get rich as well. You can marry into wealth and you can inherit it. But look, the reality is like 99.9999% of people aren't going to be able to do that. And personally, I suggest you don't marry for money, otherwise you're going to earn every cent every day. And inheritance, again, like that's very rare and also can't be relied on. But you're right, Ben, you need to put that money somewhere where it is going to grow. Leave it alone, let it compound and appreciate over time.

That's a good leeway into now how we're going to sort of segue everything we just spoke about into Bergs and I. We have our own personal strategies and they're very different. And I think that's why what's valuable Podcast is like Bergs is the NBA with, you know, a family and a house and I'm the single high school dropout with, you know, no belongings, you know, completely different. You know, yeah, my life, you're Single.

You'Re homeless, you live out of a suitcase. You're pretty much a hobo that owns a business. You could. You could create like, a new, like, subculture. It's like extreme nomading.

But.

So I think the main things are, like, I'm. I'm closer to 40 and I've got uni education, done a master's. I have a family, I have a home. And Ben is early 20s, he's got a business, he dropped out of high school, he's run multiple businesses, he's an investor, he's a speaker. And we're at very different stations in life. So what we've done is gone through and looked at our portfolio allocation, how we're currently allocated, and I'm excited to see this as well, and we can just talk through it. Ben, your one's pretty straightforward. Did you want to go with yours first and how you think about investing and why you're invested in that way?

Yeah. And I've actually put together and followed Berg's advice and create a little spreadsheet with my personal net worth. And if you haven't listened to that episode, that's also a crack. Episode 48 on how to calculate your net worth in five minutes. But really there's two main investments I have, but in terms of total exposure, it's pretty much 99.9% in crypto. So I own crypto assets, predominantly bitcoin, and then I also own Ethereum and a couple of other altcoins as well. Predominantly my wealth's in bitcoin, and I've been buying crypto for the last six years. And again, if you want to go deeper on how I did that, I started out with nothing, by the way. Like, you know, I was living at home when I first started. Started with literally zero. You can head over to episode 53, which I was talking about. But the other one is I own a business and, you know, I'm love entrepreneurship. I love building businesses. I've been doing that since I've been young. Started with, you know, selling face finger paintings and then iPhone repair business, and then an events company and a sportswear business, and then worked for another crypto company before this one, and then. And then collective Shift. So I've had a number of businesses. And for me, building.

A machine that delivers value to people that can pay you through scale and leverage, and Naval talks about this all the time, is leveraging your time through processes and systems and leverage. So leveraging content and people to deliver.

A product that a lot more people can consume and pay for that doesn't require just hour for hour time. And I've read the, you know, all the, the, the books from blanking on him. Now.

Who'S the money. The gold guy, the gold bug that's in a bitcoin. The money man.

Oh, Robert Kiyosaki.

That's him. So I read all. No, no, yeah, Robert Kiyosaki, yeah. Read all his books. And he's got the, he's got the four. He's got the quadrant, you know, the, you know, the, the four part quadrant.

Cash flow quadrant.

Yeah, boy. Yeah, boy.

Got it behind me. Yeah.

So, you know, that's, that's a great book to start with about, you know, learning about, you know, there's different types of businesses that are going to return different typ. Check that book out as well. But, you know, all in all, like, I have so much conviction on the crypto space, I'm genuinely all in. You know, not only do I own crypto assets, but my business is in crypto. So in terms of exposure, I'm there. And the reason being is just because I, at this point in time am high risk, high reward. And the, you know, the downside is. Is relatively.

Relatively. I wouldn't say catastrophic, but it's relatively bad in a sense of like, it would take me right back to zero. But I'm in that position where, you know, I don't have a family. Like, I don't have, like, you know, I've got a family, but I'm not. I'm on a relationship. I don't have kids, I don't have a mortgage.

Yeah.

You know, don't have any of that. So, like, for me, I'm going big and in my 20s, I want to learn and grow and do as much as I possibly can. And that's why I'm going hard at this point in time. And that's overall my strategy, you know, and that'll change over time. I'll start to diversify. But for now, crypto it is.

Yeah. And you touched on a key point in terms of leverage. Leverage with people, capital code. That is what you want to do. You want to create something that makes money while you sleep. That is how you exit the rat race and wake up and do whatever you want to do every single day. And the other thing is your risk, highly risk on. And I would be doing the exact same thing at your age with crypto. Put everything in there because you've got time. It can all go to zero. You can still, you know, make it back. You can invest in other things and the rate at which you're learning in the business is incredible. And those are skills and learnings that you will take with you and you will find success. I already think you've got success. And actually your, I would say your value in the business because you're a majority owner is worth more than your crypto. It's just that, yeah, it's hard. It's hard to value a startup and it's not liquid. Right. You can't, you can't get rid of it. Yeah, but in terms of what you're doing, I would be doing exactly the same thing. I would be majority crypto, but I'll probably be a little bit of shares as well, depending on how much money I had, because I'd be young and I wouldn't have much money.

Yeah, awesome, man. How about you?

All right, let's. Let's go through mine. So a bit about my investing journey. I started investing when I was 21 and the book I started with, like, I read Rich Dad, Poor Daddy, which is great for Mindset, but it was called, I'm pretty sure it's called Making Money by. Yeah, it's called Making Money by Paul Clithero. So Paul Clithero, he's a guy who used to be on Channel nine. There was a show called Money. I used to read Money magazine. He's a really tall guy and it's just basic sense about how to structure things. It's really actionable. It's an amazing book. I actually read and reread it to make sure I've got the basics right. And I started off with that guy. It's essentially like the equivalent of the bare foot investor without the cult like bullshit. It's just like, it's just tools and nuts and bolts. Right. And I would also recommend the Psychology of Money. Probably those, those two books. Right. So I started when I was 21 and I'm like, I need to get into shares and I'm reading Money magazine and they're going through all these shares and what to invest in. I didn't know anything and, and I, at the time I was going with my mates every weekend we're going to JB hi Fi and we'd always go there, we'd buy DVDs and bolster like, man, this place is pumping. There's so many people here buying heaps of crap. Shit, man, I might buy some of these shares. So I put a little bit of money into their shares and I bought like all these, you Know, dodgy things you do, like speculative miners, whatever, whatever. Lost a lot of money. But with JB hi Fi, it went from, I think I got it like a couple of dollars and it went to about $20. And that was incredible for me because at that time, probably 45 years later or whenever it was, I ended up, yeah, five or six years later, I ended up cashing out that money and buying some land. I used that for a home deposit. And this, this was great, right, because it would have taken me forever to save up, save up for that deposit. And then I was able to use that deposit to buy a house. Then, you know, get the capital, growth and appreciation in there and on and on it goes until where I am today. And obviously I've invested in my education, I've increased roles, I've got more pay, those kind of. So let's look at my asset allocation and I was fascinated. When I do this, I do this quite regularly. And it always astonishes me because things can bloom. You know, crypto can go through the roof. It can go to zero, like, you know, go really close. And so this is how I'm allocated percentage. So I've got about 30% of my net worth in real estate, about 27% in cash.

22% in shares, 14% in crypto, 5% in bonds, 2% in like, other, like debt commodities, those kind of things. Now, the one that sticks out to me is crypto is quite low, 14%. That's because it's down considerably. And I don't like to have too much of my portfolio in crypto. When it really starts to bloom, I like to sell that off and diversify into other assets that aren't as risky. And the reason I do that is because I'm older than Ben, I have a family. My wife is studying at the moment. She's not going to be working for the next few years. And I want levels and layers of security. I want that 6 to 12 months of fuck you money where I could just go, ben, you're a piece of shit. I'm not working for you anymore. I wouldn't do that because you're a great guy. I'll work for you forever. But you know, when you're in that situation in a job that you hate, where you can just say, no, I want to take some time off. I want to figure what I want to be able to do. And I've got that cash in my bank where I'm able to do that. I don't have to sell off my assets. I don't have to sell my crypto, I don't have to sell my shares. And although I have cash at bank, I'm keeping that for a very specific reason. First of all, it's doing me a solid by offsetting my mortgage, which is like 6% or something like that, just doing a refinance at the moment, redrawing more equity and that rate will come down and I'll have another debt facility where I can then use that money to invest in other things. But it is doing me a solid by offsetting that, which is great. While I wait, I'm still averaging in, I'm still using a bit of money, but I'm still waiting for events where I have that freedom to say, hey, that asset I've been eyeing off for a while, that's on sale and that's looking tasty. And now I'm going to pick up a chunk of that. And that is where you make wealth. You make it through concentration and then once you've got your work, because making wealth and keeping wealth are different and I'm not a super wealthy person or everything. I've got enough to like be comfortable. I still need to work and everything like that. But I do have a level of comfort and that has come through concentrating. So I concentrated on a few specific shares and a little bit of crypto and I made a little bit of money where I have that, you know, six or 12 month buffer in the bank, which makes you comfortable. And then from there, once you've got that wealth and you've concentrated making money, making money is easy, you've got to keep it right. So you need to learn about tax, you need to learn about diversification and then how you're actually structured. So you've got layers and layers. It's like, I liken it to security, like home security. If you've got nothing on your house, someone can break in. But if you got like an alarm, you got cameras, you got security doors, you got a dog, it's like having those layers you need to bust through. It offers you a certain level of comfort. And that's the way I'm diversified, the way I am now. And just to recap, real estate, 30% cash, 27% shares, 22% crypto, 14% bonds, 5% and other gold like things, things like gold and those kind of things that, you know, that was like gifted to me a while ago. It's like stored at some place. I don't even remember where it is. I don't want that at my House like, you know what I mean? Just like small amounts of. Just different asset classes, really going the diversification route and that, that has afforded me a level of comfort and security. And I like the way that I'm invested where I sleep well at night, that is a big thing for me. Am I twitchy about it? Do I not like it? Am I able to sleep? I will not sacrifice anymore one night of sleep for an investment. I would just not do that anymore.

Yeah, we've all been there.

And this. Yeah, that's it. This is the thing where you're uncomfortable when you're younger. You can do it, no problem. But, mate, I need myself these days. I tell you what, and the point we're driving home here is if you want to be in that top 30%, you need to understand that you need to invest. There is a price you need to pay, and that is being uncomfortable. It's seeing your portfolio go down, but staying the course and investing over time and understanding how this structural function works, that 30% understands something the 70% don't. That being said, the 70% might understand it, but they might not have the capital to actually invest.

Yeah. And if you don't have that capital, invest. Like I didn't. And like, we all start with not much. You know, even when burgers are 20, like starting out with something small, like, really, Really. I know I've said it a number of times, but, like, go over and listen to episode 53, starting with zero and how to build a portfolio. Like that was. I thought it was one of our best episodes. And really breaking down how we build our portfolios and strategies to build it up. If you're starting with not much.

Absolutely. And it's not to do with income. It's to do with how much you save. Like, even the books I'm reading, you've got people that were just working average jobs, but they saved a higher percentage of their pay. Let it compound for 20, 30, 40, 50 years.

Yeah.

There's a wild stat where Warren Buffett made 81.5 billion of his $85 billion after he was 65 because of compounding. Like, how wild is that? And this, this is the thing that we need to understand. And as long as you get those habits and you set them up, you'll be. You'll be going for that better life. And it's definitely worth doing the, the, you can pay the price at some point, but there's something you need to get through. Manage your psychology, and it takes years and years to do this. You eventually get to a point where you understand things and you're actually comfortable with them.

Yeah. And then you learn over time. Like you said, boys like you get in the markets and you learn, you're going to make mistakes, you're gonna be losing investments. But you know, you've got to start somewhere. And to get to escape the cash race, rat race, you need to get out and invest.

Exactly. And even I look at my parents generation where they went through big interest rates, they went through high unemployment, they're very scared, they just kept cash. And the difference between them and a lot of their friends was at one point they bought a house. They bought one house, they rented it out and they did that for 30 years. It got paid off and they end up with 700,000 to a million dollars more than my parents did just from doing that one simple act and just putting that money away every single week. It's forced dollar cost averaging for savings.

Yeah. And that's fascinating. 6% interest rate over 10 years, you're losing half your money. That's insane when you think about it like that.

Exactly. I'll check this out. Okay. At 6% over 20 years, your 100 grand is now worth 29,000.

Yeah.

Can you imagine that? 20 years. And when you get older, that flies by. So if you're keeping your cash, you're not investing it. And this is why when you have superannuation, it's forced investing. The government and all those institutions invest it for you. Otherwise if you put that money away, it's going to be worth 29% of what it was. So it needs to grow for your retirement so you can actually spend it and have decent purchasing power.

Yeah. Wild times. Hopefully that's been helpful, team. If you're, if you've got a crypto portfolio, maybe you're down, maybe not really confident, you're not really knowing the latest strategies. Maybe you want to add a bit more risk on. We have over collective Shift offering complimentary crypto strategy calls. 15 minutes. I've still got a few left. I'm booked up for the rest of this week. There's been so many people coming in and you know, there's been hugely, hugely popular for our members. So we thought we'd offer them for a limited time. For our listeners and a lot of you Brandenburgs fans, we know you're in crypto. So if it's of any help, we'd love to jump on a quick call and help you out and answer any questions you have. You can head to the link in the description, collective 5th IO forward slash strategy. Completely complimentary. And we'll help you out with your portfolio.

And it's amazing the feedback you've had that you've been telling us during our weekly huddles. Ben has just been awesome. It just puts a smile on my face and it warms my heart where people need to speak to someone else about what's going on and just get a different lens and a different perspective or even confirmation or potentially, you know, the. The paths that they're going down to help them out with all the other advice that they receive and absolutely, just get on a call. It's 15 minutes. Have a chat to Ben and get sorted.

Totally awesome, guys. Hopefully that's been helpful. As always, we'd love for you to share this with a friend, family member, colleague, brother, sister, or pet if you think they need help with their investing. If they're holding too much cash or they're not holding enough investments, get this over to them, tell them Bennett Burke sent them and get them in crypto.

That's right. If your dog is out there hoarding bones, get him to listen to this podcast.

Check the airports on him.

Awesome episode, mate.

Thank you.

Thanks, everyone for listening.

See you next time.