How to Have Better Finances Than 95% of Australians (in 3 Months)

Give me a few minutes. I want to show you how to become financially unbreakable, no matter your debt, your income or what's happening in the economy. I've spent the last two decades helping Australian families get ahead financially. Not by cutting their lifestyle, but by getting in control of their finances. And what I'll share in this video has helped thousands of Australians improve their financial position and when they thought it was too late, end up retiring debt free with no mortgage. Let's dive in because the sooner you implement this, the sooner you're going to stop worrying about money and look forward to a life of financial peace and freedom. If you feel like you're working hard, but your money's not working hard for you and you're not moving forward financially, this is what we do. We've spent over 20 years helping Australians just like you pay off their loans faster, get back in, control their finances, and not have to ever worry about mortgage repayments again. There's a link below with the details. Take a look if you want see how it works. Okay, so in the next few minutes we're just going to cover off two of the main things you want to know how to make money or save money. I'm going to go through those, the effective ways to do that. So what this comes down to is dollar cost averaging and compounding equals freedom. Let's break that down. Dollar cost averaging, what is that? It's putting a set amount of money into an investment or a mortgage or a debt on a set period of time. And what compounding is, is getting interest on interest on interest and like a snowball gathers momentum. And so let's break this down into saving money. So the best way to own your home 200% faster, like all my clients have done over the last 20 years, is to actually get dollar cost averaging working on your mortgage. What does that mean? That is really about getting your income working for you finally. I mean, you work so hard for your money, but for it to happen, actually start working as hard as you are for it, for you changes everything. So to get your income working for you, you want to dollar cost average it into your mortgage. That means putting every single dollar you earn from your employer into your mortgage account. As long as you're not going to be turning your current home into an investment property, this strategy has worked phenomenally well. If you are going to be turning this property into an investment property when you move out, then I've got another strategy for you. But let's pretend that you are like an everyday Australian part Paying off their home as fast as we can. So we've got income going to the home loan. That dollar cost averaging. You can't dollar cost average any more frequently than you're paid. Right. And you can't put more money in than every dollar you're earning. So that's maximizing every single cent you earn. It goes into the principal and reduces the debt and offsets interest. A lot of people are making the mistake of putting the money into an offset account. That's just offsetting interest, it's not reducing principal. And so over my 24 years of doing this, I have Australians pay their house off using the offset account. Not saying it hasn't been done, I'm just saying I haven't seen it. And so the offset account is all well and good, it's cute. Offsets interest. I want you to offset interest and reduce principal. And so by dollar cost averaging, your income into your home loan balance. The minute you're paid, every night, the bank takes a photo of that loan balance, takes the interest out for the day and at the end of the month they take out one big hit. So that's dollar cost averaging. That's going to help you get your income earning you 4, 5, 6% net. How is that the case? Interest saved is exactly the same as interest made. What does that mean? That your money sitting in your home loan account is exactly like you putting in a term deposit, earning you 6 or 7%. Because obviously any money in the term deposit you get taxed on, whereas money in your home loan you're investing in debt. There's no tax on that. It's tax free. It's a risk free 6% return on your income. Game, set, match. You put that money into a transaction account paying you 0.01% 0 0.01% versus 6%. No. Absolutely no chance of being able to perform as well as what it is in your mortgage account. So that's the dollar cost averaging part. Now the compounding part. So we've got compounding. We understand what that means, right? You're getting interest on interest on interest. It starts to sort of grow and that snowball gathers momentum. And our good friend Albert Einstein said it is the eighth wonder of the world. Compound interest. Those who know it benefit from it. Those who do not know it, pay it. And so what we want to do is compound your mortgage in reverse. That works in the mindset where salary hits a home loan, the balance drops. Taking a photo every night of the loan balance to work out what the interest is Every single month, as your loan balance plummets because your salary is going directly into the home loan, the interest plummets. And so every month as your debt comes down, the interest comes down. What that means is you have more money left to go off the principal, which the following month means more money off the principal, less interest, and then the show goes on and goes on. So your mortgage is reverse compound interest, okay? As your debt's going down, your interest is going down. That means more money comes off the principal every month. So the debt reduction gets faster and faster and faster. And that snowball at the top of the hill just gathers a huge amount of momentum. So at the, towards the bottom of the hill there you're paying like 50. We got clients paying $100,000 a year off their principal in one year. You're probably only doing 10,000 a year. The average Australian doing 10 grand a year in debt reduction, you're going to be doing 50, $100,000 in those last few years because of that reverse compound interest. So dollar cost averaging salary going into the home loan plus the compounding reverse compound interest. Every single month the debt goes down, the interest goes down, more money off the principal, and so on and so forth equals freedom from mortgage prison. So that is how we save the most amount of money. Your mortgage is the biggest debt of your life. It's the biggest cost of your life cash flow wise. If you've got a mortgage repayment of three or four thousand dollars per month, the day you paid off, you get a three or $4,000 per month net pay rise. What that's like going, getting another job net, no tax, that's just pure savings. What would your life be like if you had an extra 3, 3 or 4,000amonth net hitting your account? You're doing more of everything. You're doing more fun, family experiences, friends, all the good stuff in life. So the faster you're free from mortgage prison, the quicker your life changes. I am lucky enough to sit with one of our clients every 28 days and say you paid your house off today and man, like the tears of happiness. Some people are like, are you sure? Can you cross check the numbers? Doesn't feel real. We free a client from mortgage prison every 28 days because of the system and strategy and plan and coach coaching and tracking and measuring and accountability that we bring to the table. So that is how we save the most amount of money through dollar cost averaging plus compounding. That's going to give you mortgage freedom. How do we make the most amount of money. Great question. That's a sexy stuff. No saving money. No one really wants to know about saving money. They all want to know about making money. So let's run with the same strategy. Dollar cost averaging plus compounding equals freedom, but on the wealth side of things. So like the mortgage, like the saving money, I call that the weight loss program, right? Like you want to lose the fat. Once you started to lose the fat, all of a sudden you want to go into the muscle gain program or building muscle, building strength, building wealth. So dollar cost averaging, when it comes to building wealth, you should be putting a certain amount of money into investments on a set period of time. Your superannuation going in from your employer is the perfect example of dollar cost averaging. That's why super is growing because of dollar cost averaging. Because you can't touch it, otherwise you would have touched it and it wouldn't be growing as much. So with dollar cost averaging, your employer puts in your super every quarter or every month or however often paid into your super fund. So that's like a set amount of money going to the super fund on a set period of time. You should be doing that outside of super as well. Like that just, I mean you should definitely be salary sacrificing and trying to max out your contributions. But once that has happened, you should be looking at dollar cost averaging into investments outside of Super. Some of those investments that some of our clients have used in the past, dollar cost averaging into micro investing app that you've got on your phone like Raise or Bamboo or Spaceship, those sort of apps where not only are you dollar cost averaging 50 dol week or per month, whatever it may be, but it rounds up all your expenses. So every time you buy a coffee for $4.20 around that purchase up to $5, it invests that extra 80 cents in spare change. And so every time you're spending, you're investing, but your dollar cost averaging because every time you're spending every day that spare change is going into that investment of yours which you can see and touch at any time. So that's dollar cost averaging in two micro investing apps we talked about. Super. Another idea is property. So dollar cost averaging is like topping rent and a mortgage every week or every month with your repayments. Like that's another form of putting a set amount of money on a set frequency into an investment that's going to grow over time. So dollar cost averaging, we've covered the wealth side of things. So many different sort of ideas on how to do that. What we want to look at is the compounding side of things. So compounding with wealth, superannuation, you're getting interest on interest. You have 100 grand in super today, that does 10% return this year. Now you've got 110,000 in super, that does 10% the next year. You're getting the 10% return on 110,000, not the 100,000. That's the compounding effect. You're getting interest on interest on interest. It continues to grow and compound and that snowball gathers momentum. What if we talked about compounding interest on a property? Okay, so if you invest in property, one of the beautiful parts about that is the ability for that property to compound over time. Now, I'm not talking years here, I'm talking decades. If you buy, let's just run my numbers, keep my maths simple. A million dollar property, ok? So you buy a million dollar property today, the property, that suburb that you bought in does 10% growth. And then now your property's worth 1.1 million. Amazing. Well done. Congratulations. The beautiful part that is you've got leverage. So you haven't put down a million cash. You've usually gone to a bank and they've lent you maybe 80% up to 90% of the value of that property. So they've only probably put down maybe a few hundred thousand tops. But you're getting a 10% return on million. So you've made 100 grand. If that property does 10%, however, you only put down 100 or probably 200 grand to get into it. So that's a good return on investment, cash on cash. So let's fast forward 10 years. Let's say the property is now worth 1.5 million and the suburb in the 10th year does 10% growth. You're getting 10% on 1.5 million, not the 1 million you originally purchased it for. 10% on 1.5 million is 150,000. So that 10th year, you've made $150,000 in one year when your total investment was probably only a few hundred thousand ten years ago. Now obviously you got shortfall between rent and mortgage, et cetera, et cetera, but I'm talking about the actual compounding effect of the asset. Let's Fast forward another 10 years to 20 years. Now this is where it gets sexy. Let's say the property is now worth 2 million. Okay? Your property's worth 2 million. The suburb does 10% growth in the 20th year. You've made 200 grand in one year. That is a power of compounding. You're getting the actual interest on the new value of, of the asset, not the original purchase price. So you're getting interest on interest on interest and growth on growth on growth. And so if you're going to be buying a property, I definitely wouldn't be looking at something to pick up and flick over the next few years. Like you need to be looking at. Every property is your super fund. Every property you need to buy and hold and look at it when you're ready to retire, that's when you should be looking at these properties. Because the first 10 years of any investment property is not that sexy. The next 10 years, yeah, getting a little bit more fun. But the 20th year onwards it's like, oh my God, this is amazing. We've got so much equity, it's cash flow positive, it's washing its own face, it's everything you've ever dreamed property to be. So dollar cost averaging in terms of wealth, we talked about the superannuation, salary sacrificing, micro investing apps like those ones I just mentioned there, but also property could be dollar cost averaging into property on a weekly monthly basis and then the compounding of the property, all the micro investing apps or your super, you're getting interest on interest on interest and every year it gets more and more and more, which the key is not to touch it, not to take it out, let it actually compound. So dollar cost averaging plus compounding equals freedom. We talked about how to save money, the mortgage. We can run that strategy. With your investments, you can run that strategy. But the bottom line is that equation of dollar cost averaging plus compounding equals freedom. If you want freedom, which I know you do, you need to be implementing both of those or one of those into your strategy. If you want any help with it, reach out. We've been doing this for over 20 years, helped six and a half thousand Australians get back in control of their finances. And more importantly, our client on average does 456% better in the first 90 days of joining us than what they were doing, running things by themselves with their old strategy and leaving their finances up to them, which in my eyes most of the time is out of control. If you don't know your savings rate, surplus, cash flow position, your debt free date, like net worth, I mean if you don't know those numbers, I don't know, maybe not in control financially. And that's what we're here to do, is put you back in control, give you all the data, give you all the tools to track and measure everything and make sure that you are moving forward financially, so you too can enjoy a life of freedom.