"The Financial Freedom Formula - Seven Secrets of the Wealthy Revealed"

So now on to something serious but light heartedly informative. It's my absolute pleasure to be introducing Dave Parry, an accomplished finance consultant, passionate educator, presenter and wealth Coach with over 32 years experience in financial consulting, education and property investing, DOE's passion and mission is to inspire and enable everyday Australians to achieve their own sense of financial freedom. A keen businessman, an international presenter and trainer, Dave has interviewed over two dozen multi million dollar earning entrepreneurs and has rubbed shoulders with the likes of Hugh Jackman, Rick Astley, Sir Cliff Richard and of course Sir Richard Branson. Today, as part of the Financial Freedom Formula series, dav running us through a whirlwind of ancient and contemporary financial wisdom and will generously share principles with you that if you take hold of and put into action, will have extraordinary benefits for you not only today, but in years to come. So get ready to be inspired, open your mind and learn something new while having fun. Please give a thunderous round of applause for your host for, for today, Dave Parry.

Well, welcome, welcome, welcome. Thank you everybody for joining me today. Lovely to see you, Lovely to see you. If you do have the ability to put your camera on, it would be greatly appreciated because this is quite an interactive activity we're going to be going through today. So I hope you're excited. In fact, just put in the chat box if you don't mind. First question, where are you coming in from? Just don't mind putting the chat box. Where are you flying in from? Got a Kate from Brisbane. Kate from Brisbane, we got debates from Melbourne, we've got Lisa from Perth, another Melbourne. Awesome, awesome. We got the country pretty much covered there, which is great. So thank you and it's lovely that some of you are joining me today and I know some of you had trouble was coming along before, so thank you very much for coming along and to get the ball rolling, really. I just want to start with this and it's simply why am I here? Is a good question to ask, is anything why am I here? Well, I know I'm here. I kind of like talking about this money and finance stuff. I've been doing it for years and hundreds of conversations everyday. Australians and I have a lot of fun doing it. And on the topic of fun, actually, who's here to hopefully have some fun today? Just put in the chat box or how are you feeling? Are you feeling tired, worn out, excited? What are you hoping to get out of today? What are you hoping to get out of today? Learn something new. Well, you're going to learn something new while having fun and the guarantee is, if nothing else, I'm going to have some fun. So that's the guarantee for you today. All right, so general financial info. We are definitely going to be covering some general financial info, so don't worry about that. In the right place. Just to make sure that you are in the right place, though, is it okay if I ask a few questions just to make sure we're in the right place? Can I have a show of hands or if you don't mind just putting a quick Y in the chat box, if you would actually like to have more money. None of us. Okay. Oh, good. You would. Oh, good. Would you actually like to find out maybe how to increase your income? Yep. Would you like maybe to actually create a bit more cash flow, have a bit more of this stuff sliding through your fingers? Yep. Okay, cool. What about if you've got debts? Would you like to find out how to get them down, down and down? Yep. Awesome. Would you maybe like to find out how to pay less tax? Awesome. And last question. One day, would you like to have a future to look forward to? That is fantastic. If you answered yes to any of those, you're in the right place and you are quite normal. See, after thousands of hours and hundreds of conversations with everyday Australians like you, I've discovered generally these are the five things you tend to want or we tend to want. That is to be able to increase our income, create more cash flow, get our debts down, pay less tax, and have a fantastic future to look forward to. I just want to dig a little bit deeper on one of those, and that's cash flow. See, cash flow is often misunderstood, but cash flow, not only in business, but cash flow in our personal lives, is very, very important, because cash flow is the thing when it comes to our money, that gives us cash choice. Now, choice is very important to us as human beings. My wife Jasmine, who is a gorgeous, gorgeous lady, she's also a developmental psychologist, and she often sees me, you know, stressed or just bugging out or whatever. And she says, dave, you're acting like you haven't got any choice. And it's true. I don't feel as though any choice. I feel hemmed in. I feel trapped. I get stressed. Because choice is the thing that gives us a sense of freedom. We take away our choice. We take away our freedom. In fact, we understand this very well in society. So just by a show of hands, if anyone's prepared to admit this, has anybody actually maybe ever been a little bit naughty and sped their car a bit too fast? No. One's prepared. Kate's laughing, but she's not prepared to admit, well, if we do that, what tends to happen? We take away your license, we take away your choice and freedom. In fact, for the worst offenders in our society, we use this in our penal system, don't we? If you're a very, very naughty person, we take away all your choice and all your freedom and put you in a place that begins with P and ends with risen. And that place is, of course, prison, where you don't really get much choice or freedom at all. In fact, for the worst offenders in prison, we put you in solitary confinement, where for 23 out of 24 hours a day, you get no choice or freedom whatsoever. So the point I'm trying to make here is that choice is the thing that gives us freedom. Does that make sense? Excellent. Now, when it comes to our finances, I want to suggest to you that it's cash flow that gives us choice and choice gives us freedom. That make sense? Cash flow gives us choice, choice gives us freedom. So, with that context, just by a show of hands or. Yes, in the chat box, would you like to have a bit more cash flow, choice and freedom today? Yes. Excellent. Would you like a bit more cash flow, choice and freedom to perhaps Monday be able to retire on your terms when you want? Awesome. What about some cash flow, choice and freedom within that thing we call retirement? Cash flow, choice and freedom to maybe upgrade the car whenever you wanted to, or maybe take the family on that massive around the world holiday, if that's presuming, of course, travel is a thing again one day in the future? We hope so. We won't go down that path, but we hope so. Or maybe some cash flow, choice and freedom to help out the kids get their kickstart in life? Or cash flow, choice and freedom to help out those that you love? Or cash flow, choice and freedom maybe even to think about starting to leave a legacy for those that you love. See, if those are the things you want, you're not alone and you're very normal. However, I'm going to show you some statistics that are a little bit scary. And the first one is this, and it's from some people you might have heard, I'd call the Australian Bureau of Statistics and this is what they have to say. 76% of Australians will retire on $20,000 a year or less. 76% of Australians will retire On $20,000 a year or less. Let me ask you this. How much cash flow, choice and freedom do you think you'll have on $20,000 a year or less. Now, in perspective, that's less than $400 a week. Now, if you don't own your home by that stage, you can probably work out there won't be much less because you'll either be paying one of these mortgages that are still very high or you'll be having to rent somewhere. But even if you do own your home, how far does that go? Well, to run a normal home, on average, it costs about $5,000 a year by the time you look at your rates, your water, electricity, utilities, et cetera, and that's $100 a week gone. So now we're down to $300. If you choose to run a car, even the cheapest cars to run, maintain, change tires, do the servicing, add licensing. Petrol is at least $50 a week. It's made down to $250 a week. We haven't spoken about food, clothing or entertainment. You can probably see that $20,000 a year isn't going to give you very much cash flow, choice or freedom at all. Now, for the ladies in the room, there's another statistic that actually is very personal to me, even though probably worked out I'm not a lady, but this is personal to me because this is what happened to my nana when she was alive and it's also happened to my gran, who was alive till very recently, and that's this. And so one in three single women over the age of 60 are living below the poverty line. One in three single women over the age Of 60 are living below the poverty line. Now, you may not be aware of this, but divorce is on the increase in a certain age bracket. That's for people in their 50s to 60s. So this is a real thing, that women aren't looking after their finances as well as they could, and it's a great tragedy. And as an example, I want to tell you about this lovely lady I met recently. I'm going to call her Jane. Now, Jane is a gorgeous lady. She was 64 years old with short, spiky, bright purple hair. Now, Jane was telling me a little bit about her story, and her story was that she and her husband for years had run a very successful healthcare professional business, we'll just call it that, a healthcare professional business. And it was very successful business and they always had quite a bit of money. They found themselves going through that stage in their late 50s where they wasn't working and they decided to go through the divorce. So Jane was telling me that at the divorce proceedings, she inherited quite A large sum of money. And now she's telling me a few years later at 64 years old about the love of her life. I want you to picture this. There's Kate, life of the party, funky, spiky, bright purple hair, telling me about the new love of her life, which was a bright blue Subaru wrx, this funky sports car with a whale tail and everything. And that was really cool. But the sad thing about it was that was where Jane slept every night as well, because that's all she had left to her name. See, people, we're not taught how to master our money. We're not how to manage our wealth. And after all the conversations I've had with everyday Australians, I've come to this conclusion. This is not your fault because we're just not taught this stuff at school. I said that's a personal thing for me as well, because my nana, when she was alive, was one of these ladies and my gran also was one. There's one more statistic I want to share with you. And has anybody here heard of Morgan Stanley by any chance? For those of you that haven't, Morgan Stanley isn't a person, it's actually an institution. Now, Morgan Stanley are this big, what we call a merchant bank. What they do is they take hold of people's money and you basically give them money and they look after it, invest it on your behalf. Now, Morgan Stanley actually happened to manage a lot of money. They actually managed $2.3 trillion. Now, to try and get this perspective, how much is $2.3 trillion? Okay, I want to play a little guessing game with you, if that's okay. Hopefully you've seen this, you recognize it as $100. Note, they're not very thick, they're quite thin. Have you ever seen one of these things? If you haven't, they're about the same dimensions as a $20 bill and a $10, but they're about the same, but they are different color. Now if I had a whole bunch of these, how high? If I piled them one on top of the other, on top of the other, on top of the other, how high would the pile have to be to get to a million dollars? Don't you have a guess? Are we talking a few, Are we talking a few centimeters? Are we talking a double story building? So a million dollars in hundred dollar notes stacked up, how high would we have to get? Have a guess. It's a lot of $100, but how many is it Someone's Kate's playing along. She says two Meters. Two meters. Five meters from Deirdre. One more. One more. No idea. Okay, we'll have to say the closest prize today is going to Kate at 2 meters. It's actually a meter. It's actually a meter high. It's only, it's only about as high as the back of your chair. So a million dollars, $100 is about as high as the back of your chair. Like if you're in a normal room 3 1/2 to 4 meters wide, if you stacked $100 bills up side by side by side by side by side by side, you'd have three and a half to $4 million. Okay, so that's a million. How much is a billion? Well, you would have to take $100 notes and walk side by side by side by side by side by side for a kilometer to get to a billion. How much money does Morgan Stanley manage? They manage a lot more than that. So how much is a trillion? A trillion dollars. You would have to do this. Hopefully we've heard of these two places in Australia. You would have to start. Imagine you were starting in the Sunshine Coast. If you walk from the Sunshine coast and put $100 notes down, side by side by side by side by side by side by side by side by side by side by side. You have to walk all the way from Sunshine coast to Byron Bay, all the way back up again and back to Byron Bay again to get to a trillion dollars in $100 notes. It's 10, 14 kilometers and 400 meters worth of $100 notes. Now, for Lisa, who's Perth, it's about the same as going from Joondal up to Margaret river to Joondal up to Margaret river again. That's how far it is. Long way now. Why? It would be a work. It'd be a walk worth doing though, I guess, wouldn't it? I might even smoke it at Byron. You never know. You never know. Let's not go there. So it's a lot of money. But why have I tried to make this point about how much Morgan Stanley managed? 2.3 trillion US because this, you only get to manage $2.3 trillion if you're pretty good at what you do and you pay attention to what's going on around the world. Does that make sense? So when Morgan Stanley says something, I pay attention. Now when Morgan Stanley says something about Australia, I particularly pay attention. Are you with me? This is what Morgan Stanley had to say about Australia and our debt position globally. Australia has the highest or near highest levels of household Debt across most measures. So you've got this international company that manages $2.3 trillion saying Australia, your debts are amongst the highest in the world. We're not doing a few things too well. 76% of us are going to retire on less than 20 grand a year. One in three single ladies over the age of 60 are going to live below the poverty line. And according to Morgan Stanley, Australia has the highest or near highest across all measures of household debt. And as I mentioned earlier, and this is not your fault because we simply, we simply were not taught this at school. And that's the biggest comment back to me when I start mapping this out for clients one on one with my private clients. They just said, Dave, it's not that hard but we just never taught this stuff. So that's my mission and passion. It's quite simple to help everyday Australians like you become debt free or soon as possible. So you can actually start living a lifestyle of choice and freedom not only today but well into your retirement. So that is some of what we're going to be covering today. Now the way we're going to be covering it is by looking at a few things and the first thing we're going to have to look at is a short fat man. This short fat man in the middle of the photo here, that's actually my grandpa. There's another little chubby guy next to him and that's me as a 10 year old. Why am I talking to you about my grandpa Cliffy? Well, he was a great guy. He was a role model with all sorts of things as a kid growing up. In my eyes he's a wealthy guy. He ran a whole chain of optometry shops. He was a son of a very poor butcher. He had nine, he actually had eight brothers. And he and his brother came out to Perth years and years ago in the 50s, whatever. And he set this thing up and did very well but by turns it wealthy. Like he was the first car that I remember being in as an 8 year old or so, the first car that had windows that you actually didn't manually wind down. You pushed a button and they went up and down. I think it was a Holden Statesman or something. Anyway, Cliffy did quite well with his business and he seemed to have a lot of money so he got some things right, worked hard to earn his money and he had this black box of money under his bed where he's keeping his money as well. And anyway, there's a whole lot of stories I can tell you but what happened is that when Cliffy was in the 60s, I believe Grandpa Cliffy, he bought some land in this suburb in the middle of nowhere, cheap as chips and gave a block to my dad. And that's me as a kid and just about finishing the building our house. And that's me and my third birthday in this house in the suburb. Practically was in the middle of nowhere at the time. And that's a couple of years now, playing in the garden with my favorite puppy. Now what? So that could do with anything. Look, because he bought some blocks in the middle of Nowhere as an 18 year old, I bought some blocks of land in the middle of nowhere. It did quite well. But where I'm heading to with all of this is that if you'd met me about 25 years ago, you actually just simply would have found me working as a high school chaplain in the government school system, trying to make a difference to the lives of the staff, the students and their parents. And because I bought some land earlier and I'd had some investments that had done okay, I found myself in a position where I was able to buy my first house. Now, I did what you did back then, which was look in the newspaper section because the online wasn't around then, as my friend calls it. And I found a house I like the look of. I thought, that'll do. And I went to speak to the bank about getting a loan and they just confused the heck out of me. It was all complicated and everything, but the real estate agent introduced me to a pretty clever guy who was a mortgage broker. Now this broker took a complicated thing, broke it down into simple steps that I could follow along and the result was excellent. I got this house. But that line seemed pretty big and pretty scary to me. Now I was 25 years old, not earning much money at all. So I decided to stay living with mum and dad and I rented out the property and I threw every dollar I had at that debt and I watched it go down, down and down. And then if you met me 10 years after that, you would have found me married to my lovely wife Jasmine, with two kids and one more almost on the way. And because we'd both been throwing a lot of money into our debts, we'd seen them just go down, down and down. And we kept on our journey of finding people that had more knowledge, expertise and skills than us, that had guide us through some investment decisions and they had gone up, up and up. So we found ourselves, I was 38 years old with two kids and one more almost on the way in A position where we just built a pretty nice dream home, $1.1 million home, and we found ourselves debt free. Now, that gave us this incredible sense of choice and freedom, gave me the choice and freedom to do what I do now, which is my ultimate passion of helping everyday Australians get their debts down, down and down, and start living a life of choice and freedom today and well into retirement. And it gave my wife, Jasmine, the freedom and choice to just do what she loves, which is being the best mum in the world for the three kids that we have and volunteering her time with the toughest kids that need the most help with her developmental psychology skills at the primary school. So, for me, it was a little bit important for you to understand some of where I'm coming from and why I do what I do. So I hope that makes sense. And what I'm going to be doing today is showing you through a whole lot of stuff. And this is the promise I'm going to leave you with. You can write this down if you like. Hold me accountable to the end. This is my big promise. Over the next, let's call it 40 minutes or so, I'm going to show you the tools that you can take hold of to save hundreds to thousands in tax tens of thousands off your home loan and Potentially add another 2, 3 or even 400,000 to your retirement figure. Would that be okay? Great. Should we get onto it then? All right, so how are we going to do all this? Well, I've got a bit of a methodology that you need to understand, and the methodology is simply this. First of all, you need to master your money. I think I got three things. You might have seen them early on. Master your money, prosper with property, and focus on your future. You must learn how to master your money. So we're going to be digging into some of the master your money stuff. And the saying I have is, master your money or you will become its slave. Master your money or you will become its slave. I'm going to show you some things we can do to turn that around. I'm going to introduce you to the cash flow conundrum to show we can make some simple changes to start mastering your money. But that's the start. At the same time, we need to work out how to prosper with property. Because if you don't learn how to prosper with property, you will pay the price. And I'll show you what I mean later about paying the price. And the third thing is, of course, to focus on the future. We need to have Something solid, exciting and fantastic to look forward to. So we can start to master our money, prosperity property, focus on our future. You'll find that you start getting a cycle and all starts making sense. And over the next 30, 40 minutes or so, you'll see I kind of like these cycles. And you'll see a few of my secret cycles later on. And if there's time, I might even show you one or two magic tricks. So that's a little bit about it. Master your money, prosperity property and focus on your future. And for me, it comes down to these five pillars to wealth. There's five pillars to wealth and we're going to have a look at what they are, but we're also going to have a look at what goes wrong. So at the beginning of today, I asked you five things and this is the time we can play along. So if you want to unmute yourself, there's not a lot of people here. There's a whole bunch of people that just haven't turned up. So you've got a bit of a special treat. So there's a bit of a chance to be interactive if you like. So if you want to unmute and yell at the answers, that's not a problem today. But the first thing we want to look at out of these five pillars is generally said we would like people to work out how to increase their income. Want to increase our income. Great. Now the second thing we want to have a look at is how to create more cash flow. Flow, cash flow. Awesome. Now, if you happen to have a piece of paper and a pen to write this down on, I'd highly recommend it. In fact, even better if you've got one of these sort of multicolored pen things so you can do the color coding, some colored stuff later on, but up to you. Income, cash flow. Now, there's something else that if we have it, we'd probably like it to get down. Down. And debt. Well done. Want to get our debt down. And there's something we'd probably like to take home more of or pay less of. It begins with T and ends with X tax. Oh, you're all very sharp. And the final thing is there's something we'd like to look forward to that's going to be fantastic in our few future. Future. In our future. Okay, cool. So these are my little five pillars to wealth. Now I explain to you what I mean by the cash flow conundrum. This is what we generally think and it sounds fair enough. We generally think, look, if I'm Increasing my income, surely I'll have a bit more cash flow, therefore I can pay my debts down. I kind of get, I gotta pay a bit of tax, but surely my future's gonna look good. That's what we generally think. But what actually happens? Well, this is generally what happens instead. See, as our income goes up, what's the very first thing guaranteed to go up? It's our cash flow. Well, cash flow doesn't go up. I'm going to suggest to you, the first thing that actually goes up is our tax or tax. Tax, tax. Every time we earn more money, we pay more tax. Okay? Now being the society that we are, what is generally the next thing that goes up as we earn more money? Spending, spending, spending. I just going to put that in the category of debt, okay? We take the bigger credit card, the bigger car, the bigger house, whatever it is, all of that goes up, okay? So our debts tend to go up. So let me ask you this. If our tax has gone up and our debts have gone up, what actually tends to happen to our cash flow sometimes tends to go down. Now we're paying more tax, increased our debts have less cash flow, what do you think happens to our future goes down. It kind of just gets ignored. We end up being the ostrich bearing our head in the sand, hoping it'll all go away, it's all too hard. And in fact, please don't be too offended by this, but we often end up in this situation with these three letters that scream at us. There's wtf, of course, stands for we totally failed or forgot. Now, would you like me to show you a way with a few simple tweaks and tricks to flip that around. So instead of we totally failed becomes we are tasting freedom. Okay, then I will, if you don't mind muting yourself up because it's making my camera go a bit spazzy. Just unmute one by one if you've got something to say. So now some of the old cooking shows used to say something like this. So here's one I prepared earlier. This time we're going to do something a little bit different, if we don't mind. So this is what we're going to do. We are going to as our income increases, which is a good thing we're going to talk about. Now don't get me wrong, I'm all about helping people increase their income. In fact, a lot of the work I do with my private clients and some of my day events, we work on not only increasing your income, but developing what I'D call multiple income strengths. So I'm all about increasing our income, but in a certain way. So this time, as our income goes up, we only do something different and we're going to make a decision to pay a percentage to our future. We're going to talk about the two U's of the future in a moment, but that's what we're going to do different. To start with, you're going to put a percentage towards our future and at the same time, have a think about what can we do to start siphoning some money towards our debt. Now, let me ask you this. If you start paying your debts down, are you going to have a better future or a worse future? Monday's going to be better. So by paying our debts down, we are helping our future. Now, do you think there also might be some ways that clever people, in fact, the wealthy, use that? Some ways, in fact paying something into your future? If we're clever, we can actually reduce our tax position. The answer is, yes, there are. I'm going to show you what some of them are. So focusing on our future in certain ways, we can reduce our tax and I'll break them out in a moment. But the way we do that is by looking at these things, which I just loosely call IPAs, C, gas and WPAs. Okay, so if you write those down, we've got IPA, CGA and WPA. So by focusing our future, we could also reduce our tax. Now, if by reducing our tax, does that mean perhaps we've also increased our cash flow? And it can be, yes, in some cases we can. Now, as we've got more cash flow, we can look at siphoning more back into our debt and we start a different cycle, going a little bit of a different cycle. Now, what do I mean by ipa? Now, if you don't completely get all this, it'll start getting clearer and clearer and clearer as we unravel it. So some of you are going, well, this is amazing. Some of you going, that's all right, play along, we'll get there in the end. So what's these IPAs? Essentially, they're three types of asset classes and the first one I'll show what they are. Quite simple. This. These are three things. As it look, actually you need to understand there's really multiple asset classes, but I just like to roughly loosely band them into these three things so it keeps it simple for you to understand. Of course, there's a lot of detail within it, but to start with, it's just as simple as this three asset classes. First one, income producing assets. IPA is an income producing asset. What's an income producing asset? What's any asset you have that produces income? It's an asset that produces income. Makes sense. So some things we have around our house that we call assets maybe aren't assets, but maybe they are. But one of the assets we need to focus for our future are income producing assets. In a chat box, can anyone think of an example of what an income producing asset may be? And there's three broad categories, but a share property, the third one is roughly rental property. Sure. Begins with B and ends with isness. Begins with B and ends with isness. Business. So it can. Now all these three things can. Okay, so shares can be income producing assets. Property can become an income producing assets. Of course, within property there's 13 different subsections that I talk about in my day events. And with shares there's a whole lot about it as well. And but please bear in mind, don't get too hung up on the fact that just because you think it's an income producing asset, it isn't really. There's a test you need to go through which I have covered today. What I'm saying is not all properties obviously are income producing. Some people lose a lot of money with property. Not all shares are income producing. Some people lose a lot of money. And not all business income producing. Some people lose a lot of money. But you can in the right structure, with the right system, the right everything going on, they can. So that's an income producing asset. The second one type of asset you need to build is a bunch of capital growth assets. Capital growth assets. What a capital. Capital growth is just a fancy word of saying it goes up in value. That's it. It's just going up in value, not necessarily producing income. It's just going up in value. It's getting bigger some reason or other. So anyone in the chat box any idea or example what a capital growth asset could be? Anyone have a guess? Again, shares can be. The house you live in can be. There's another thing that begins with G and ends with old antiques. Yeah, because that begins with gold. Yet antiques. So the antiques, collectible artwork, gold, precious metals, a lot of those things can go up in value, but they don't necessarily produce an income. Makes sense. Gold just sits there. That's all it does is sit there. It goes up and down, up and down. Doesn't produce an income. Now of course, some of my preferred assets that you look at do a bit of both they go up in value and produce an income. And now you're double turbocharging things. But that's another conversation. Okay, so they're the two general types that you look at then. The third one we talk about are the WPAs, and they are your wealth protecting assets. Wealth protecting assets. What's a wealth protecting asset? Let me explain this way. My next door neighbor, great guy, he loves his cars. He fairly recently came home with a 2009, bright red with only 9,000 kilometers on it. Ferrari. He was a bit cagey to tell me exactly how much it was. I think it was somewhere around the $300,000 mark. So you've got a $300,000 Ferrari in his garage. Now, do you think he would be comfortable driving that around if he had no insurance on the car? Probably wouldn't do it. So he would pay some money to get insured. Now if you've got a $300,000 car, do you think you might pay a little bit of attention actually to the insurance policy and make sure, for example, you haven't misunderstood and you accidentally insured like a Toyota Prius or a Mini Minor rather than a Ferrari? It might make sense. You actually get the insurance policy to fit the asset. Yeah. So in that sense, sometimes insurance can be a wealth protecting asset. Superannuation can be a wealth protecting asset. Wilson Estate planning can be a wealth protecting asset. This system and structure you can put in place all in that category of wealth protecting assets. Why is that important? You might have heard of a guy called Warren Buffett, one of the most successful investors of all time. And you write this down if you like. Do you know what Warren Buffett's first rule to investing is? Anyone? Warren Buffett's first rule to investing. Anyone got any idea? Don't lose money. Simple as that. Don't lose money. And the second rule of investing is never forget rule number one. There is two main rules. So protecting your wealth, protecting your assets is very, very important thing to do. Now let's go make a little suggestion to you that a lot of people do insure their house, they insure their car, and that's fantastic. But there's a particular asset that often is neglected in your life. And it's probably your most precious asset that has the ability to give you great joy and you great wealth and you great fulfillment. And who do you think the biggest asset is that I'm talking about? It's you. It's you. And it saddens me sometimes that people spend more time fussing over the insurance over their car or their house without thinking about themselves. Just a thought. Wealth protecting assets because protecting yourself to be able to enjoy your life, enjoy your health, enjoy your freedom, enjoy your future and have money. Maybe something worth considering. Okay, so they're the, roughly speaking, the three asset classes that I talked about there. And with those three, there are 100%, lots of ways by siphoning money to these things, you can improve your tax position dramatically. I'm going to show you how a little bit later on. Okay. How are we doing so far? Making sense so far? Yep. Good. Happy. Happy. Good. We've got some nods from someone. That's good. All right, so that's the thing there. Let's turn now when we talk about the future, I'm just going to pin this now and we'll come back to it later. Now, I want you to bear in mind that when we talk about the future, there's in fact two you's I want to talk about in the future. In the future, there's a real you, as in the real you. There's real Deirdre, there's real Lisa, there's a real Kate, there's a real Deb, there's a real me. That's a real you. Okay? So over the future here, they've got you've got a real you, 100% new now. And over here, there's what I'd call often the forgotten you or the neglected you. And we're going to talk about how that is later, keep you wondering. But for now, I'm going to talk about something else, because when I mentioned this concept of money before, I used a hundred dollar note. Now this time I'm going to use a slightly smaller thing here. Okay? It's $2. Why have I got $2 in front of me? Well, it's got to do with this guy over here. If you can recognize this guy, you're doing well. Anybody know who this is? Anybody recognize him? Just happens to be one of the smartest men that ever lived. Apparently Albert Einstein. Albert Einstein said all sorts of clever things. In fact, we were taught some of his clever things at school, like the theory of relativity, or you might know the equation E equals MC squared. Not necessarily very helpful to us. He also made this comment, which I think is kind of fun. He said this, Only two things are infinite, the universe and human stupidity. And I'm not sure about the former. Okay, so it's a bit cheeky. It's probably why I like him. But does anybody know what actually Einstein said was the Eighth wonder of the world to talk this stuff about this clever guy. Theoretic E equals MC squared. But Albert Einstein said this. He said compound interest is the eighth wonder of the world. He who understands it, earns it and he who doesn't pays it. Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, he earns, pays it. Now let me ask you this. In Australia, who do you think understands compound interest the best? Begins with B and ends with anx. It's the banks. Okay, so back to the $2. Look, money is a good thing. Usually when we have money we can do a few things, but we can buy some things that we like. And I'm all for buying things that I like. Don't get me wrong, I like putting money aside to buy things I like. But with $2, what can you do? You can go to the shop and usually like, let's say you go to the shop, you see a Mars bar or something for $2 and we exchange value for money. That's all we do. So I value that right now. So I'll give you money and the shopkeeper gives you the Mars bar. Yep, that's how it works. See, something we like or value, we give money exchange and value fairly common sense. We understand that now you may have had this experience when it came to buying a house. Now from now on I'm going to start using generic figures about things. Why? Because I like numbers to be simple. I like them to be simple because I can keep up with them mostly and simple and average them down. Because I also like to play within the average of what's going on around this great country of ours. So I'm going to use the example from now on in about a property of being $400,000. Why? Look, it's actually about the average of the average. There's thousand eight hundred statistically viable suburbs in the country. And you break it down is about 72% of people either live in or rent or want to buy something around the $400,000 mark. So that's, that's just what is the 400 grand a figure? So you picture this, it might be similar to how you experienced it. If you've ever bought a house. You're looking around for a house in the. Probably on the online now on the newspaper. Google around looked at domain real estate, whatever. He went, oh, there's a house. I like the look of that. So go to the real estate agent and you say, oh look, you know what? We'll take it and you go back home. You go back home and with your partner, you can start getting your suitcases of all your money out of the cupboard. You go back to the real estate agent. You say, Here we go, Mr. Or Mrs. Real Estate Agent. Here is the $50,000. Here is the $150,000. Here is the 300. Hang on. Oh, honey, you brought the wrong suitcase. We've given him too much. Is it actually how we buy houses and property in this country? Usually not. Usually not. If that is actually how you buy property, I can't help you. I'll send you off to someone else. Nonetheless, normally we have a small amount of money. We have a small amount of money and we end up with this thing called a loan, a mortgage. What do you call it? Mortgage, interesting enough, is actually the translation from French is death pledge. Interesting. Nonetheless, we have this thing. A lot of it's big. So as I saying, Einstein says, compound interest. He who understands it, earns it. He who doesn't, pays it. If you can play along and just hold your hand up a bit like a fist, why don't you imagine. But this is your $400,000 house. Now, in a normal home loan rate normally paid over 30 years, how much do you end up paying back? Starts with 400. You end up paying equivalent to about that, about $728,000, I think. That cost you 400, ends up costing you $728,000. Few simple things you can do to start turning that around. And one of the things you can do is $2. See, I'd like to think that if you had $2 in your pocket and you saw someone that you knew quite well that needed $2, you'd probably gladly give them the $2. And if you saw them the next day and they still needed the $2, you're probably quite glad to give them the $2 again. Would that be fair? And you probably wouldn't miss it. It's only $2. I'd like to suggest to you that you are the person that needs to give yourself the $2, because you can write this down, if you like, as a way to remember it. On an average home loan, $2 a day will save you 20k. $2 a day will save you $20,000. Now, with today's interest rates, it's probably a bit less than that. But on average, the very fact of paying $2 a day extra into your home loan can save you up to $20,000. The catchphrase to remember is $2 a day. Will save you 20k. Recently, one of my paid day events, we went through a whole lot of online calculators and students actually work it out for themselves. And one young lady was shocked, literally shocked. She put her exact figures in, was shocked just how much she actually saved. Just $2 a day. What's my suggestion if you've got a home loan? My suggestion with a lot of my private clients is just turn off everything and just let the bank take the minimum payment every month off the home loan and you start controlling the extra bits and just start with $14 a week extra. The bank take the minimum and you pay $14 extra a week and just start with that because that's equivalent to $2 a day and just see what happens. It's working well. Increase it, increase it and see what happens. Simple trick to save you up to $20,000 easily. Now, when it comes to money though, would you like me to show you a way to maybe get even a better return on your money? Maybe to double the return on your money? What about even, maybe triple the return on your money? Okay, you'd imagine just giving yourself $2 a day. You just put aside $2 a week. Now, difficult math is about to come. 50 weeks at $2 a week. How much money do you have at the end? Deb? Got it. 100. There's a trick. Wasn't that tricky, was it? $100. All right, so we got $100. So $100 we have. Now, there's a well known guy that writes some books and not that I'm opposed to him, but he suggests you go put it in savings account or in fact set up several savings accounts and it's okay. But I want to show you something that's often not, that's not explained or misunderstood. Now, if you put that in a savings account, you're not going to get very much money at all. If you're lucky. I saw it the other day. If you're lucky, you can get about 1%. All right, if you're lucky for a time. Now for the mathematicians. Deb, this is for you because I saw you answer the other one. $100 at 1% after a year. How much have you got? How much have you earned? You had a dollar. All right, now this is a tricky question. Do you actually get to keep all of that dollar? Why not? Begins with T and ends with X. Because that is counted as increasing your income. Every dollar you earn, you pay tax on. Now, I sort of like using simple figures and I'm going to talk About Bob and Sue, who are real couple, change their names now. And I'm going to use the example of $100,000 salary for Bob because it's a pretty attainable salary for a lot of us in Australia by the time we increase our income in a few areas. Now, if you are earning $100,000, you're actually paying 37 cents in the dollar tax. So if you're that type of category, and honestly it's an income that is quite achievable to get to with investing and property and other things to supplement and you can get to 100 grand with a few things. But $100,000 income means you're paying 37 cents in the dollar tax. So that means you just lost 37 cents of that dollar. So we ended up with a grand total of 63 cents. Not very much. Now, would you like me to show you how to maybe get a double return or a triple return on that instead? Okay, pretty simple. This time we have the same hundred dollars, and this time we're going to find somewhere where we can actually get about 3%. Now, 3%, Deb on $100 would mean we have how much? $3. Now this is where it's a little bit tricky. Not really tricky, it's just a bit of a trick that's misunderstood. See, in Australia we have this brilliant banking system that lets us do something quite unique amongst all other countries with our home loans. You can do it a few different ways, but my preferred way is you have this thing called an offset account. Now, you might understand how they operate, but you might understand completely how powerful they. Because what an offsetter does traditionally around the world, you get a home loan and you get your savings account and they're not really linked in any way. You just pay one to the other and that's all they do. But we've got this thing called an offset account. And what it means is this is your loan and this is your offset account. It's your everyday transactional everything account. But every dollar that's in this magical now offset account, it's as if it was in there. So if you've got a home loan at 3%, you got $100 over here. In the offset account, you've effectively just saved 3% on the hundred dollars. If you've got $1000, you save 3% on $1000, you got 10,000, you save 3% on the $10,000 you mean so far. So by having money in an offset account, you are saving money. This money is money you don't ever have to pay. It didn't accrue interest. Does that make sense? So if that's the case, did you actually earn that $3? No, you didn't actually earn it. It was just money that you never had to pay in the first place. Therefore you don't have to pay tax on it. There's no tax to pay. So I'm here to tell you this. If you have a home loan, I'd suggest you have a really good think about maybe not having savings accounts, but doing what you can to structure things to use these offset accounts. Now, one of the things that I structure with a lot of my private clients is there's a handful of lenders that in fact let you have another one and another one and another one. In fact, some lenders that you have up to nine offset accounts and all of a sudden parking your money, budgeting for the things you want becomes fun and easy and it's all helping you save thousands off your home loan. Let me ask you this, would you rather earn a dollar and pay tax or just never have to pay the $3 in the first place? You never have to pay the $3 in the first place. It's almost a five times return on your money. Okay, simple trick number two. It's about structuring. So heading around this master your money and also prospering the property. Because if you're doing that, you're paying off your property even quicker again. Now we're going to start wrapping it all together and seeing if it forms a bit of a picture. And to do with this thing here. Can anyone type in the chat box? What's that a picture of? It's $100 sitting in a. Sitting in A. Begins with S and ends with A. It's a pin. Any questions you got like that, Kate? And hopefully we'll have time at the end to answer them. It's a safe. See, one of the things I like to do with people is make sure whatever we do is in fact safe. But not only safe, it's super safe. Now, for most of us, the most super safe place we feel is fact in our home. Now, in our home, some of us, we might actually have a safe. In fact, I have two safes and we have two safes in the house that we just put some jewelry of Jasmine's and some heirlooms and the passports, whatever. So on a picture you have a safe in your house and it's a savings safe. So picture. This is a savings safe. Now that safe is reasonably safe. It's in your house. It's not completely safe though, because if a robber got in, they could really, if they wanted to, they could pry it off the wall and run away or if a fire came, it might burn down or whatever. It has some safety. But say it's not super safe. Now what I'm heading towards talking about something now is something that I think is super simple, super exciting and super accessible, but it's super neglected and something you can do some pretty cool super things with. It's also very super safe. Can everybody guess what I'm actually alluding to? It's an ice cream. No, it's just super. It's your superannuation completely misunderstood, completely neglected. Okay, so why don't you start thinking about this superannuation as a super safe. So you've got this saving safe and a super safe. Now the super safe is super safe for a couple of reasons. It's super safe because we put super safe things in it. But it's also super safe because it's actually got some inbuilt protection. Number one, it's not in physically in your house. It's not physically in a bank. It's protected in fact by the government. The government backs up superannuations to a certain amount. There's a government backing to it. But the third part of the superannuation that is makes it super safe actually protects you from someone. Now, it protects you from someone that is near and dear to you. But sometimes you may need a little bit of protecting from. And can you guess who I'm talking about, Yen? It's you. It's you. Sometimes you need to be protected from yourself. What do I mean? Well, I'm going to jump back to this picture over here that I left you hanging with about the you's. See, I want you to understand that there's two you. There's the real dead, the real Kate, the real Lisa, real Deirdre here and there's the you. Now, normally with you and it comes to money and wealth and finance and future, we normally have a few things that's a money dollar symbol. Some of us then also do this thing that begins with P and ends with roperty. And it's a property. Someone rude the other day said it looked like a handbag, but that's a house property. Now, if we're very sophisticated, we also might start doing some of this stuff which are stocks and shares. Okay, that's probably what we do. Now there's another you that is again super neglected and which A bit super sad, but this is the super you. Okay? So there is a super you out there. In the future there's a super you. Okay, so we're going to call it the super you now. The super you can do some cool stuff. Now. The super you. For most of us we talk about our super. All we generally tend to have is there is a little bit of cash managed by whoever manages it. And maybe we have this thing called stocks and shares. That's kind of what we do. But for me the best thing I think we can do with our super is essentially copy what we do or what you do in your real world and let's just do it again in our super. So in certain circumstances you can also look at getting one of these things that begins with P and ends with ropperty and it's called a handbag, that's called a property. Now how do we do that? There's a few different ways we can do about it. We can do that. Now before that then I said a little bit about super and why it's so boring. It's a, it's a. It's just a boring thing. Became a very boring place. In fact, in the 70s it barely existed. In the 80s it started getting regulated. The 90s they came up with this thing called the. That's called the SGC or the Superannuation guarantee contribution. So if you have a pay slip and you look down the bottom of your pay slip, you might see this thing called SGC or superannuation guarantee Contribution. I told you this. A bit boring. Bit boring. Big, long boring words. But means if you're employed, your boss has to put a certain amount of money into your super. For most of you that are on a salary, it's probably going to be about 9.5% of your salary. For some of you already might be at 10% because the next four years is actually being increased to 12%. You may not have known that the next four years, if you're employed, your superannuation that your boss is paying you is going to go up to 12%. It's a superannuation guarantee contribution. Okay? Now traditionally there was only one way to put the money in. It was through your boss. There's a few other ways you can do it now. But it's important to understand that there's 10 million superannuation funds in the country. In other words, there's 10 million Australians that have got superannuation funds, okay? Now 96% of Australians had them in an industry fund or a retail fund. In an industry fund or retail fund, the balances are about the same. And you can write this down if you like. The average balance over all the years for women is about $128,000. The industry fund or retail fund, the average balance for men is about 168,000. So 128,000 for women, 168,000 for men. So often with the clients I work with, if there's a couple, by the time we put them together, there's about 300. So you need to understand, out of all the super funds in the country, there's 10 million, 96% are in industry or retail and the average balance is 128,000 or 168,000. However, there's about 600,000 funds in this country that are doing something different now. Traditionally they were reserved for the wealthy because they were complicated and expensive and it's just not the case. And hope you're going to see in the next 10 minutes or so why this is becoming my passion. Because it's something that is super accessible for a lot of people and it can seriously supercharge your wealth through your super. And that is called a self managed super fund. Now can anybody guess what the average balance in a self managed super fund is? Got 96% of Australians 128 or 168. What's the average balance of a self managed super fund? Deb's pretty good. 500,000. Everyone is having a guess. No guesses. We got 300,000. Okay, Kate, well look, The answer is this the average balance and this is the average. So some obviously a bit less and some obviously a lot more is $1,222,000. $1,222,000. It's over a million dollars more than the average balance of the industry in retail. Why? My belief is people that have a self managed super fund are focusing on their future. They're mastering their money and prospering with property. And they're doing it all in a super fund which is incredibly tax effective system. And one of the biggest advantages of this that you can do is the secret to wealth. One of the secrets, and that's the secret of opm. OPM means simple, other people's money. So in a super fund you can replicate what you're doing in your life. You can do it over here as well. However, in this situation you'll find out that you end up with a lot of people pouring money into your wealth. More so than you. I'll explain what I mean by that. Later on. How does it look? It looks a bit like this. I'm going to talk about Bob and Sue. But before I talk about Bob and Sue, I said I might end up doing a magic trick for you. Oh, I'm not going to have time for the magic trick. We'll see. We'll see. But the thing about super and super safe is this. You got your savings safe at home, okay? I want to pretend that you've managed with your savings safe. You've saved $100, okay? You've got $100 with me so far, and you put it in your savings safe. Now you also have this super safe, which we now understand to be the super that we're going to put safe things in. Super safe things in. So $2 a week over 50 weeks, you've got your $100. Give yourself two weeks off. To keep the math simple, $100. Now, you take the hundred dollars out. You could spend it or you could put it into the super. Now, if you put it in your super safe, this is where the super safe isn't only super safe, it's super special, but it's something super magical. So you take your hundred dollars, put it in your super safe, put a code, and it just alerts the ato just like that. Now, when you go back to your saving safe, you took the $100 out. So how much is in there? It's empty, right? Gone. You go back and open it and all of a sudden there's $37 there going, what? How did that happen? And it's pretty simple because I'm like, Bob, I'm going to show you. If you're paying 37 cents in the dollar and you decide to pay yourself in the super version of you in the future, the ATO counts that as a tax deduction and gives you $37 back. And I think that's personally just this craziest thing that's underutilised. Now, Deb, I'm going to. I'm going to run a risk here and show you a magic trick with some numbers, if that's okay. All right? Is that all right? Actually, before we do that, so just unmute yourself for a sec because I want you understand this. $100 put in a super special code, $37 back. Now, of course, you've now got a choice. You could spend the money, start again with zero and build it up, or do whatever. Now, if you could do it with $100, can you do it with $1,000? Yes. Can you do it with $10,000? In theory, yes. Okay, so you're going to hopefully play with a figure. Now, Deb, have you got access to a calculator or a phone you can do some sums on, just in case? All right, now give it a go. I want to imagine. I want you to imagine this. Instead of $2 a week, I want you to save $200 a week for a year and give yourself 50 weeks and working on. And give yourself two weeks off. All right? So how much do you have? It's 10,000. 50 weeks. 200 equals 10,000. Okay. Didn't leave myself enough space. Hope you can see that. Now, $200 a week can get to 10,000. I'm going to show you a magic trick, all right? And the magic trick is this. I'm going to show you how $126 a week can get you to $10,000. Do this sum for me, if you don't mind. Deb, what is $126 a week times 50 weeks? 6,300. Did everyone hear that? 50 weeks at $126 equals how much? 6,300. Now, I said I was going to show you how to turn 126 into $10,000 or $126 into $200, or about 6,300. $10,000. Let me show you how to do it. Sure. Pretty simple. This is what you've got to think about this. If I have $10,000 and I decide to put it into my super and let the tax office know, I get a tax return, 37 cents in the dollar, how much do I get back? 37% of $10,000, Deb? 3,700. 3,700. So ATO gives me $3,700. So if I now start with $3,700 and I save $126 a week for 50 weeks, how much have I got? $10,000. $10,000. How much did I physically save each week? One hundred and twenty six. I just turn one hundred and twenty six into ten. Do you get the idea? The second year? The first year is 200. 200. Yep, yep, yep. The second year is 126. Why would you drop it the year after that and the year after that? The year after that, you're still only 126. It's this perpetual cycle of giving yourself money. Good question, Deb. Why would you drop it? Some of my more astute clients and students go, well, why don't I just add the other 200 and start? I'll end up with 13,700. Absolutely. 13,700, you get 4,200 back. Now the another $200 a week, you end up with 14,200. Put that in, you end up with 44,900 back. The snowball. The cycle can continue until you get to your cap. Until you get to your cap, of course, yeah. But on 100 grand a year you've got 15 grand a year you can put in. Sweet. So, all right, just get the idea. So Dave, is it a self managed superannuation fund where you get some money? Because I didn't think you could get tax back on your superannuation. Absolutely you can. Absolutely. Doesn't matter. What is that? Only under a self managed superannuation, any fund, you can do it. You just got to have it set up the right way and know the form or the code to, to tell the ATO about or the super fund provider. So yeah, I've got plenty of clients that want to get to a self managed super fund. They're not quite there, but when they see what they can do with. I'm going to show you in a minute, they get motivated and start doing this to accelerate the stage where they can. All right, you need 1 million in total. Oh no. How do you start? How do you start? We start with whatever you have. I'm going to show you how that works. All right, so if you just don't mind pausing, pinning the microphones for now, I'll hang around for a bit afterwards and ask the rest of the questions. But I'll show you this next little bit, okay. Which is involving Bob and Sue, but I wanted you to get that bit first. All right. Now Bob and Sue, real people, but I've changed their names specifically to Bob and Sue partly for confidentiality reasons, because I like to be very confidential and respectful of all my clients and students. And I've also called them Bob and Sue for one specific reason, because it's very easy to spell. Now, Bob and Sue are reasonably typical and Bob, as it turns out, his salary is 100,000 a year. Now bear with me, if the numbers are doing your head in, I'll do this as speedily as I can to really get to what I'm trying to get to, all right, Because I'm really going to show you how this can start accelerating. So that's their salary is 100 grand, 80 grand. Now they are already on the 10% from the boss superannuation, superannuation guarantee contribution, SGC for short. So that means 10% of Bob pays. Bob's boss pays Bob 10% of the hundred. So he gets 10,000 a year into super. Okay, so we call it SGC. Let's call it 10K. Does that make sense? 100 grand, you get 10K into super. Sue's the same, she gets 8K into super. So grand total between the two of them is 18K. Okay, 10 plus 8 is 18. Now Bob and Sue, they come to me and say, we're doing okay. We probably could do a little bit better. What's going on? We have a look at their funds. It turns out that Bob's got around about that 168 grand and Sue's got about 128. And so look, as it turns out, you've got a fund and you've got a fund. You're paying two sets of fees. If we put them together, you got one fund and one set of fees and we do that sums and what they're already paying. And even though they're low cost superannuation funds, it's still cheaper to roll it into one. So it's a great idea, save fees. Let's roll it into one. So now they've got one fund, self managed super fund with $300,000 in it. Okay, so we took the two funds, rolled it into one, and now there's 300 with me so far. Cool. Now play along with your fingers if you can. This is another. It's not, there's not really a magic trick or showing you the magic trick. But if you like, if you have three fingers over here, is it the same if I got three fingers, three fingers and three fingers, is it the same? Still holding up three fingers. They just put in different places. Yeah, okay. Not bad. Not bad, not bad. Deirdre's not even having a go. That's nice. Now I want you to pretend that each finger is $100,000. Okay? So you say to Bob and Sue, you now got 300 grand, but she's going to split it up. We're going to get 100 to do the stocks and shares thing. Now we're going to get that managed with some low cost ETFs and whatever. And that hundred is probably going to double every seven to 10 years. The rule of 72 sort of thing, quite easy to do, double in about 7 to 10. So the hundred is just going to go up and do its thing. But this 200, we're going to do one of those things called buying a property. And we're not going to look in the newspaper or the Online. We're going to go somewhere we can get an investment grade property that's pre selected for a whole lot of things. Higher rental yield, high capital growth, income producing asset, capital growth asset, all of that stuff. And we look at the $400,000 mark and Bob goes, that's cool. So the self managed super fund is going to buy a property. Yes, it is. Great. So I'm going to put $200,000 towards it and keep 100. He goes, okay, that means we have to get a loan. Yes, we do. And Bob says, I don't know about that, so let's see if it works. So we get this thing that begins with P, ends with rocketty and that's worth 400. But to buy it. So this is one of those few times you actually can turn up literally with buckets of cash or handbags of cash and give it to the agent. Loan plus fees is about 220. So at 400,000 we put down 200 cash. You need a loan of 200 plus fees. So I'm going to be conservative. I like to be conservative. And the loan is $220,000. And Bob goes, oh, I don't like debt. Don't like the look of that. I said, I understand. I don't like it either. Let's see how quickly we can pay it off with an adr. An ADR is accelerated debt reduction strategy. And he goes, what do you mean? I said, well, how much money have you got to pay off the debt? And he goes, I don't know. Well, how much soup have you got going in every year? He goes, oh, I've got 10. Sue's got, oh, we've got 18. So yeah, you do have 18. He said, oh, 18,000 into 220, that's probably 14, 15. I'll get paid off in 14, 15 years or so. I said, well, maybe, but Bob, you forgot something. He goes, what? He said, well, this thing up here called a property, you've now forgotten you own that too. You got this thing called rent. Now, $400,000, property in the right investment grade areas, et cetera, can get about $400 a week. Rent, 20 grand a year. We take off the 5 for the utilities, the water, the rates, etc. About 15,000 net. Again, conservative. It might be more than that, but 15,000 is after fees. Okay, is that fair? 15,000 in rent. So we're going to put Deb on the spot again because she's our mathematician of the day. Now, how much income has Bob and Sue got going into Their superannuation every year, 33,33,000. And Bob has a look at that. He goes, oh, so now we've got $33,000 a year to pay this debt off. How quick? I said, pretty quick, mate. Because even it's less than 10 years, way less. Because mathematically 10 lots of 33 is 330. You've only got to pay off that much. He goes, oh, might be seven or eight. Well, it might be. We'll see. And he likes this idea. So he rolled the two things into one, one set of fees and now we're aiming to pay this off as quickly as possible. He likes it. And I said, but Bob, you also mentioned you wanted to pay less tax. He goes, yeah, I do. I pay a bit of tax, I'd like to pay less. And you also mentioned you'd like to pay your home off quicker too. Yes, I would. Said, why don't we do this? Why don't we start rolling it all into this big thing? So, Bob, remember you got this home loan that you want to pay off. Now we're going to set you up with one of those lenders, fantastic rates, that's actually got one offset account, that's got lots of different offset accounts. And we're going to set up one account and we're going to call it Bob's Super. Just bs, which stands for Bob super is Bob. Shouldn't call it that, should I? Bob Super. Bob's Super Account. So, Bob Super Account. So Bob's super account. And guess what they decide to do? We look at some things called plugging the gaps, saving some money here, or they're not living on baked beans, it's just working out where some money running through their fingers and they decide to put $200 a week into their Bob super account. 50 weeks, give themselves two weeks off a year, they end up at the end of the year, $10,000 in an offset account. Now, if that money's in offset account, has it helped them save interest on their loan? Has it actually earned them money? It just helped them pay off the loan and they haven't paid tax on it. So Bob's already pretty happy. I say, Bob, if you can afford to, around about June, we can have a chat now about putting that $10,000 into your super. So if we do that and we put it up here, okay, Deb, how much money have we now got per year going into the superannuation fund? 43. And Bob kind of looks at me and goes, how quick can you pay that off with $43,000 a year, Bob, Pretty quick, mate. You might be talking five now. Bob's 52, and he starts getting excited. He starts going, if I can pay this off pretty quick, maybe, maybe I'll have another 10 years of working after I own this. And then we have a look. He says, dave, you're telling me that maybe five years that's gone? I said, yep. He said, and then we own that. So. Yep. And in 10 years, that 100 grand's gone up to maybe two. Yep. So now we've at least got two and four. Yep. So at least got six. Yep. And now every year it's going up by $43,000. Yep. If I do that for 10 years, will that be 430,000? Yep. And the penny starts to drop. He goes, does that mean I'm going to be cracking over a million? So, Bob, that's. Even without a capital growth asset growing, it's just the minimum it's probably going to be. And he starts getting a little bit excited at this stage. I said, bob, there's one little thing that you forgot. Every time you put $10,000 into super, how much do you get back? He goes, that's right. I get back 3700 every year I do it. And by this stage, they're pretty happy working out. They're now on a pretty good trajectory to starting to work towards living a lifestyle of choice and freedom today. Well, until their retirement. And they're having a bit of fun. And that's a real scenario of Bob and Sue where they've taken this whole concept, my cash conundrum diagram, and they're taking charge to pay percentage to their future by generating some IPAs, CGAs and WPAs in their super and their real you getting their cash flow to work for them. And the second stage is. He turns around, says, well, Dave, when can we start doing it over here as well? I said, well, maybe we'll wait till next year, but we can look at that too, start doing it over here as well. So that's a little bit of, kind of what I do with my private clients. So hope you got some value out. If you got some value out of that, just put a yes in the chat box. Just put a yes in the chat box. You got some value out of that? Thank you, Deb. Least one of you did. That's cool. So what did we cover? Look, we actually covered. We covered a lot today. I started out by saying, look, there's five things we generally want. We want to increase our income, create more cash Flow, get our debts down, take home more tax and have a fantastic future. I talked about 76% of Australians retiring less than 20 grand a year. One in three women over the age of 60 living below the poverty line. And Morgan Stanley says that our debts are the second highest in the world. I gave you my story about my grandpa Cliffy and some things that I did, becoming debt free, giving me cash flow, choice and freedom, that's really my passion. And that Einstein says compound interest is the eighth wonder of the world. He understands it, earns it, he doesn't pays it. Gave some examples. A simple fact of $2 a day can save you more than $20,000. And I gave you some other tips and tricks about turning that savings account maybe to an offset and three or four times increasing your money. There's that little magic trick of turning $126 equivalent of $200. And Deb was clever enough to work out you could keep growing that snowball and get it bigger and bigger and bigger. Then we worked out the whole thing putting it together and gave the example of Bob and Sue how realistically and from my perspective, in a pretty super simple and super safe way, they are growing their wealth way beyond the average industry and retail fund of 128, 168,000, but easily tipping that million dollars. So that's just a touch of what we covered today. And usually around about now, people that brains haven't melted kind of go, well, where to from here? And it's a good question, It's a good question. And you probably understand all we've done is literally danced around the tip of the iceberg. But I hope I've served you well and got some value. So you've got some value out of 90 minutes with me today. Do you think you actually get a bit more value out of me if you got to spend a whole day with me? Possibly, yeah. Now, I've mentioned along the line, I do have a lot of private clients who work with people privately, and I'm not here to talk about that. I've been developing something over the last six months or so which has been having some incredible success. I'm trying to get this information to as many people as I can in the most cost effective way. You might understand that working with me one on one privately, it's not far more intense, but it gets a bit expensive. So I put together something to try and work out. I was going to tell you what it is and it might make sense to you. I put together this thing called the Financial Freedom Formula blueprint package. It's pretty simple. Pretty similar what we did today. It's a live day intensive on zoom with safe simple actions for you to take including demonstrations and Q and A. But people often ask is this for me or what's it like working with me now? I don't know because I don't know what your current situation is. So I don't know if this is right for you. But I can tell you in a moment what's it like working with me and this is what a few people that have come along and said. I say this that Julie said I've had the pleasure of attending a number of days presentations and could not recommend highly enough. Even if right now is not the time for you, so Julie says even if it's not the right time for you, it kind of is the right time for you. So that's kind of nice. M. Dawson said a few things. I've just highlighted this. It's always fully made to David pick his brain. For people who want to build their personal net wealth to a point where employment income is optional. Dave's a great Go to excellent go to choice. Dave's someone who shoots for the success of his clients whether there's personal gain in it for him or not. Dave's great, knows his stuff, champion. Talk to him. Now with Dave's help R. Brown's on his way to his home in less than two years and started on his third investment property. Dave's been great to work with saving us money. And Brad said when I first met him with Dave I felt very eased and relaxed talking about my finances. And that's what people say. I know that minor funny money. I know that finance can be funny for people and it can be awkward and can be embarrassing. I have the utmost respect for anybody that works with me and happy to work up your pace. And most people say they find it very comfortable working with me. What's the blueprint all about? Well, you got to start somewhere. And why is it called a blueprint? Every major building in the world that's worth building starts with a blueprint and that's where we're starting. We start heading towards this. That. Where does it start? It starts with the most important thing of all and that is having what I'd call your freedom vision. You've got to have a vision of where you're going and we map out in the first large chunk of the day. What's your freedom vision? The freedom vision to me is what day in the sand can you Write down a date and work out. That is the day that I am debt free. There's simple things we work through and some people have some pretty emotional moments working out. If I do that and that and that, that's where I'm heading to work it out your pace. And it's very simple, very easy. So we work out your freedom vision of where you want to get to. The second thing we work out is really what's the best freedom system for you. Now, predominantly with all this kind of stuff, particularly with the debt recycling and the home loan, the offset accounts, I'm going to introduce you to the five major systems that people tend to utilise and you work out one that works for you. Simple as that. Pros and cons for all of them. Each have got different things. So you work out your freedom vision and then you work out your freedom system. And the third thing, of course, the most important part really is your strategy. I want to make sure you have a strategy to walk away with that makes sense. Simple, actionable steps broken down and as a form where they can reuse over and over and over again to start getting some serious traction. And the final part of it, of course you'd understand that no one is successful unless they have the right team amongst them. So the final part of it is helping make sure you build out your freedom team. And throughout the course of that, I introduce you to key people that you need to know and some of them introduced to some of the people that can help you along the way. So that's what it is, the freedom vision, system, strategy and team. What's the package? Well, you might, that's what you get in the full day. But because I don't want you to be left floundering around and whatever, I'm also going to include a few things. There's a freedom formula, Fast Track, which is essentially a recap of the day, broken down the actionable steps over 12 weeks delivered to you. So have you done this, reread that, check that, have you set up this next step, blah, blah. So it's a simple thing that follows you to make sure you get success over the next 12 weeks. But the biggest thing that people ask for is that, Dave, we want more of this, we want more time for Q and A, we want more teaching. So I put together also to include my mastermind, some people just pay for on its own. So it's three month access to my mastermind, where we have monthly zoom training, learning, consolidation in Q and A. So every month we get together for another hour and a half in a small group and we do more of this stuff. I teach more content, we break down the asset classes, we talk about the IPAs, CGAs, WPAs. And it's a time for you to also come with your questions. And as comfortable as you may be or not be, up to you. Sometimes we actually break this down for people within the realms of confidence and people have great, great breakthroughs in those masterminds as well. It's the closest thing you can get to having me as your private coach without, without me doing it. And this is the whole aim of what I'm trying to do. So. And of course there's a blueprint workbook that is designed to accelerate your wealth journey and it's pretty simple and it's pretty cool and you can use it over and over again. Now that whole thing is three grand, $3,800, $3,080. But you're not going to pay that because you've come to an event, you might, you get all this stuff, you get the full day, the 12 week follow up, the 3 month mastermind access pass, which some people alone just want to pay for that and the book and all of that, it's just $495. Just $495. I don't know if you've ever worked with anyone in the financial services industry, but recently I just had to. My dad's in a home, I had to move away all his finances and I'm managing that. And the guy that was managing dad's finances looked after him for a long time. But one of the reasons I moved out, away from that, into one of my trusted contacts instead was because. Which I had to do as power of attorney. You can't get too involved because this guy was charging him $3,600 a year and that's a pretty going rate, $3,600 a year. So as I said, I'm trying to get this accessible to people to really educate, work out, fast track for you. So that's what I've done. Now there's only one more of these this year. Only one more. It's the last one. And you might write this date down, it's coming up quick. It's on Saturday 27th March and the event price is 495. It's, it's to accommodate for my Perth people. It's from 9:00am to 3:00 clock in the afternoon on a Saturday. So if you're in Sydney, you get to sleep in. There's 12 to six easy. You're in Brisbane, 11 to five easy. Pretty simple and easy. And this literally is the last one for the day, for the year that I've scheduled. And here's the thing, there's limited sponsorship. There's five left at 195. I had 10 spots available. This is about all gone. There's five left. So if you want to come this event and you get a money back guarantee as well, the money back guarantee is as simple as this. Come along to the day. At the end of the day I can't show you how to save at least $400. No money, no questions asked, money back. It's as simple as that. So $195 if you get in quick, all those sponsorships are available and that's what it is. So you get the full day, you get the 12 week follow up, the masterminds and the workbook. And really the first five that are in, there's five spots less than 195. And if that's something that resonates with you, I'd love to see you there. I'd like to work with you in this capacity. You all agree the beginning, you're here to try and have more money, increase your income, create more cash flow, get those debts down, take home more tax and work on a secure and fine financial future. And I hope you've seen I kind of got a system that kind of works. So if this resonates with you or is it something that you want to jump hold of, I just really suggest you get in there. How do you do it? Well, it's pretty simple. You just follow that little link that I put in the chat box. There's a simple form to fill out and that's all there is to it. Few clicks of a form and you get to spend the next 12 weeks of your life with me. And wouldn't that be cool? Wouldn't that be cool? So that's really, that's the offer. That's the thing. And as I said, what I will do now is I'll officially say thank you for coming. I really hope you got some value out of that. If you feel comfortable letting anybody else that you know about these events, I don't have any more. I've got one more live one like this next week and then I'm done. Because I can't keep doing this offer at this price. I just literally can't. So it's come to an end. This is the last day it's happening. Let other people know if you want to about what I'm doing. If it is good value and give me a thumbs up on Facebook or something, I'd appreciate that too. So I'll officially say that's it and I will stick around for a few minutes for some questions. So thank you. The link's there and fill it in. Or stick around and ask me questions.