Mortgage Free 2x Faster - Crown Money

Hi, guys. My name is Scott Parry, CEO of Crown Money, and I'm going to run through a huge amount of financial education over the next hour or so. It's going to be everything I've learned about banks and money over the last 18 years. Jam packed into this one session here. So I might just wait for a few more people to join the call and then from there we'll get stuck into it. I do appreciate you making the time. I think that this is such an important part of your world, money. I mean, no one's teaching people money in school or high school, university. And the bottom line is you usually learn money off your parents and if they didn't have great money management habits, then there's a chance that you may also not have such great money management habits. So I wanted to show you a system and a strategy which has helped Australians pay off their mortgages in half the time. Every 23 days at Crown, we have a client pay off their house using this exact system. This is the exact system I've used to create an investment portfolio of more than 10 investment properties. This is the strategy which people have paid $100,000 a year off their mortgages. It's something where it's simple, it's effective, and it works. Let's get stuck into it. It's something where it's not as hard as what you think. I know that the whole concept of paying off a mortgage faster means that you have the thought process you may have to sacrifice or go with that. This is certainly not the case. What this program does is it helps eliminate all your impulse buyers and helps you keep more of the money that you make. Everyone's so focused these days on how much money they're making. I really want to draw the attention to how much money are you keeping? What's your savings rate? They are the most important figures. So a little bit about us you can see there, we've helped Australians pay more than $50 million off their home loan balances over the last decade. That's $50 million worth of equity that we've created in our home. So when you pay down debt, that's exactly the same as you creating equity. Debt reduction equals equity creation. They are the same thing. We're the only company that, that wants to help people get out of debt. Everyone I've spoken to in finance for the last 18 years has been trying to get people into debt. Banks want you in debt, brokers want you in debt. We're so focused on trying to get you out of debt as Quickly as possible. Why? Because we know what difference that makes to your life and to your family's life. When you no longer have a mortgage repayment coming out of your income every single month, you've got all this extra money to spend on lifestyle or to invest and set yourself up for a very comfortable retirement. As we said before, very, very lucky that every 23 days I get to phone a client and tell them they've just paid off their mortgage using our program. So there's such a different variety of responses. Some clients are just ecstatic and just can't believe it and super grateful and thankful. Other clients are in disbelief. Are you sure? Is this real? Have you cross checked this? They actually don't believe that they've paid off their mortgage. It's just so surreal. I think so many of us actually believe we'll ever pay off our mortgage. And so for them, it was just one of those amazing moments where they are truly financially secure or financially free of that mortgage repayment every single month coming out of their cash flow. So we're going to run through that system and show you exactly how it has worked and why it works. Over the last 18 years, I've had a huge amount of press, a lot of journalists, a lot of TV stations, a lot of newspapers, a lot of magazines saying, scott, how are you getting py debt in under 15 years? What are you doing differently? Why is this working? And so we're going to run through all that there. You can see that photo in the center there with my arms crossed. That's my wall at work here. Every single one of my clients, I chop up their credit cards. I would certainly like to think of myself as Australia's leading plastic surgeon. The amount of credit cards I've chopped up, it's a little bit of a game. It's so crazy how people react when, when you chop up their credit card. Some people start giggling like school kids. Other people start sort of shaking with nerves because they feel that's their safety net. A credit card is not a safety net. A credit card just allows you to spend money you don't have. So we want to teach you how to create safety nets or emergency funds, not having to rely on credit or money that you don't actually have there. So what drives us? I mean, I set up Crown 18 years ago, and it all came about because I sat down with hundreds of people and I asked them, what do you want to do financially? What's your number one financial goal? And more than 80% of those people said, I Just want to own my own home, Scott. I just want to pay off my house. So I was fascinated that no one out there is actually legitimately helping people pay off their house faster. Everyone is focused on getting them into debt, getting them a loan, and then as soon as it settles, that's the last you hear of the bank or the broker. Whereas we sort of thought, well, if we help people get out of debt and therefore their life's going to be better and they're going to be telling a lot more people and they may even get an investment probably down the track, which means they get another loan, which means obviously we are in the picture again there. So I want you to experience a life with no mortgage repayments. And imagine that. Imagine all this surplus cash flow you have with that mortgage repayment left still in your bank account each and every month. That's what you deserve. And then from there, you can start to really spend your time and your money doing what you want to be doing, rather than being a slave to of the banks there. So we've spoken to, helped guided over 6200 Australians and working with them in their financial positions. We've had a huge amount of IP that we've seen what most Australians are doing wrong. We've learned so much from that. But now we can teach you what they're also doing right and how to do it right. So these are some of our club champions. So every month we have a club champion, which is basically one of our clients which has got the best results for that month. I mean, this client here, you can see on the left, Brad and Jemima. They've managed to pay $111,000 off their home loan balance in one year. $111,000 in one year. Which you probably think, how is that possible? They must be earning $500,000 a year. No, she's a school teacher. He's working on a job that's certainly not paying hundreds of thousands of dollars a year. Pure and simple money management, getting their income working for them rather than for the bank. So you can see Daniel and carla there paid $29,000 off their home loan in just one year. So all these clients were paying around about six or seven thousand dollars a year off their home loan, which is what the average Australian does. We put them onto the program, we get their income working for them, we reverse the flow of their money, and. And all of a sudden they're now creating huge amounts of equity in their home really, really quickly. You see Peter and Lisa there. They paid $41,000 off their mortgage in the last 12 months. Now obviously debt free, which is a phenomenal achievement for them. It means nothing better than getting a client debt free. And then down the bottom there, another set of clients, they are debt free. They just say that first line there, best thing we ever did. Just wish we'd known about it 30 years ago and just hope our kids take it up as well. So it's going to make their life so much easier. So when you are mortgage free, look at the smiles in their faces, like genuinely happy. And when you're making financial progress, that equals happiness. And so I think so many of us are frustrated. We're working our guts out. We're throwing the kitchen sink at the mortgage in terms of repayments, but doesn't seem to be moving. It doesn't seem to be coming down as much as what we'd hoped there. So this is a strategy which is actually going to make you feel like you're making progress financially and that's going to create happiness not only for you but also for your family. Some more reviews. We've thousands of these reviews, thousands of them. These are just some of them. So this first one here, this has been the best decision we've made. We're so happy with our results and not having to worry about paying bills and credit cards, etc. Craig's been so helpful and honest. It's been awesome working with him. Another client down at the bottom there. Brilliant. Couldn't begin to imagine we would be in a position we are in already. Thanks to Crown, we are pretty much stress free about the scary mortgage payments everyone told us about. These guys were first home buyers so they were obviously a bit concerned about the mortgage repayments before they go into their first home. And this other client, everyone we communicate via the phone and email are always amazing. They genuinely want to help us achieve the goal of paying off our mortgage. Always helpful with any questions, big or small. Thousands of those. If you want more of them, we can certainly send you some of them to read through. But it is something where we really do care about you getting debt free. It's not just saying this to then hopefully get your business. Every single month we're working with our clients every single month, we're managing their cash flow. Every single month we're helping create equity in their home and we do that every single month until they're debt free. And so this is not a little quick fix. Here's the information. Good luck. Go get them. We're like that personal trainer at the gym and we always know you're going to get better results when you've got a personal trainer than if you're trying to go to the gym by yourself. And it comes down to two reasons. One, accountability. That's what we bring to the table. We keep you accountable, we weigh you in, we watch you and report to you on your progress. And also self discipline and basically taking the impulse buyers out of your budget or the evaporation effect, I call it. And also that lifestyle creep where you're getting pay rises but your living expenses are consistently increasing. So these are some of the strategies that we're also helping our clients with to make sure they get the best results and are in the strongest financial position. I believe the banking system is stacked against you. It's stacked against me. So these banks, I'm going to go through a little bit about how much money they make, how they make all this money. But primarily these are the five key things that I've learned about banks. One, they make huge amounts of money off our hard earned money. The second thing is 80% of your loan repayments go in interest. They actually don't come off the principal. So your monthly mortgage repayment or weekly mortgage repayment. 80% goes into the bank's pocket. Only 20% comes off your balance. And that's why you feel frustrated. That's why you're spinning the wheels and not moving forward financially as fast as you should be. I also believe that we've been conditioned to focus on the wrong number. I think the banks have trained us to look at rates. I want to train you to look at the total cost of the loan. What's the dollar figure that's come out of your pocket to pay this loan off? It's an unbelievably important number. You only see it once from the banks. It's in those thick mortgage documents that you get when you get to sign your loan documents before settlement. You never see it ever again. It's the most important number. And they don't want you to look at that because it's such a huge number. They wanted to dangle that carrot of rate, rate, rate in front of you. So you're like, oh, I've got a great rate. This must be the cheapest loan. We're going to run through that in a little bit more detail as well. No system to track or measure your progress. This blows me away. I ask every single client I speak to, do you know your net worth? No one can answer me. Not one person has ever been able to tell me their net worth. But then I ask them, do you know your body weight? Yeah, of course I know my body weight. So I find it fascinating that everyone knows their body weight, but no one knows their financial weight. And so what a net worth is, is if you sold everything that you've got, how much money would you be left with? So what equity is there in your house? How much do you have in your super fund that is really net worth? All your assets minus all your liabilities. So everyone's focused on their body weight. I think that is super important. But I also think your financial weight is just as important and I want to get you focused on that. I want to give you a tool and an app which is actually going to track it all for you. And you can log in every day or every week or every month or every six months, however often you want. And it's going to track your net worth for you. It's going to be tracking how you're making progress financially and show you that you're moving forward. This last statement is probably a little controversial. I believe this is just my belief. I believe if you're not banking your income directly into your home loan balance, you'll never pay it off. That's just something that I've seen. I've got so much experience with so many people and they've been running with offset accounts or normal loans or fixed loans or even line of credits. They're just not paying off their houses, not every 23 days anyway. So that's just something which I want to expand on in a little bit more detail. How do these banks make money? So remember the days back at school where you were a dolomite kid? Remember the school dolomite accounts with cba and they were training us from year one pretty much thing put money into a savings account. That's the best way for you to save your money in a savings account. Well, which is true. And as a kid you were thinking money in a savings account is a great concept. Mom, dad put a dollar coin, two dollar coins into my dollar mart account. And that's just the way we're from school. Now take a step back. Have you ever thought about what happens when your money is in your savings account? Doesn't wait for you to go to the ATM and pull it out, doesn't sit there patiently hoping that you're going to come and get it one day? As soon as you bank your savings account, the bank relends that back out to other customers for credit cards at 16%, car loans at say 8%. Even personal loans at 10%. Or even you on your own home loan at say 3%. So the money you put into your savings account or transactional account or Visa debit account, whatever you want to call it, doesn't sit there. It actually goes straight back out and is relent out to other customers. So if you're the bank, put your bank hat on. I've got all these people banking their salaries or their savings into these savings accounts. Do you know what the banks pay in terms of interest on a transactional account? 0.01%. That's not 1%. It's not 0.1%. It's 10% of 0.1%. That is nothing. It's free. You're literally not getting anything. If you put $5,000 into your savings account every, you'll get 50 cents per year. It's nothing. But then the banks are relending that five grand that you put in there out to Mary on her credit card at 16% or Bob on his personal loan at 10%. So they're getting your money for free and then relending it back out at 16%. That, my friends, is how you make $45,000 per minute as a business. Or $2.7 million per hour. That's how much the banks are making. $2.7 million an hour, every hour of every day of every week of every month. It is the best business model ever. Get money for free, relend it back out at 16%. That is how the banks are making money. And that is why I don't want you putting your money into a transactional savings account. Because it's not working for you, it's working for the banks. So I believe we all pay too much tax and we pay too much interest based on a $400,000 mortgage. Yours may be more than that, it may be less than that. With a bit of luck, you're going to be paying around about $25,000 a year in repayments. Remember we said 80% of that goes in interest? Well, that's 20 grand out of the 25. So 5,000 comes off your balance. The other 20 grand goes in profit interest to the bank. We have to flip that. I want you having 20,000 coming off your balance, not 5,000. I'm going to show you how to do that. Now. This is a quick quiz for you. Which of those two loans do you believe is the cheapest? The short term, 3.65 over 15 years, or the low rate, 2.79 over 30 years. Which of those two loans is going to be the cheapest overall? Let's look at the numbers. Total interest costs $187,000 for the low rate loan. Total interest costs $124,000 for the short term loan. So this whole time you've been told rate is the most important factor. That is not true. The shortest term equals the cheapest loan. So that's why we're all focused on what's your loan term, how fast can you pay this off? The faster you pay this off, the less interest you pay, the more money left in your POC, where it belongs. So we want the cheapest loan, which is the shortest term the banks have made us think we want. The cheapest loan equals the cheapest rate. Shortest term equals cheapest loan. So how to save more and spend less? We talked about your net worth. You know your body weight, you don't know your financial weight. So 86% of Australians don't know what their monthly expenses are. So that's normal for everyone. You pretty much know 86% of 100 people don't know where their monthly expenses go. 14% do. They're like the accountants or the engineers, they live in a spreadsheet all day, every day. But the other 86% don't know where their living expenses go. And as a result of that, that's a big problem. And so I want to bring that to the forefront here. It's super important to know your numbers, but we don't have time. We've got work and kids and family. And so what we want is everything to be done for us. And so there is an app, it's called Crown Money Tracker. It's on the App Store whether it's Google or Apple. You can download it now, it's free. And what this does is this tracks where all your money goes for you, it categorizes it for you. It also tracks your property price, it also tracks your super fund value, it also tracks your loan and everything about your spending. So you've got your whole financial life on one screen. That is how you going to be able to get some visibility and be able to start to know your numbers. You can see your net worth on that increasing throughout the months over the years. And as long as it's trending upwards, things are moving forward. So highly recommend, if you do have a spare minute or two, jump onto the App Store, download Crown Money Tracker, a free app. It's going to track your whole financial life and put it on one screen for you. Like A dashboard for everything in your world financially. Cash diets. We're going to talk about these. What are they? That is basically getting off the credit card program and getting onto a cash based system or a Visa debit card, for example. It is something where I've done a lot of work with behavioral psychology. Why do we think the way we think? Why do we spend the way we spend? And the data coming out of that is phenomenal. We're spending more when we're using credit cards because our thought process is different to full spending with cash. And so a great little example of this is if you go shopping, Coles or Woolworths, wherever you go shopping next week. And you know what your rough shopping bill is? Let's call it $200 for the week. Next time you go shopping, just take $200 in cash. Don't take any cards at all. Leave all your cards at home and go do grocery shopping. With $200 cash, you start to look at what you're buying, what the prices are, because you don't want to go over the $200. Because when you get to the checkout, you can't sort of hit the card and as a result get more money. You've got to make sure it's under $200. And that's called spending consciously. When you're using a credit card, it's very difficult to spend consciously. So that's a nice little experiment for you. I think the stats coming out are saying if you're spending on your credit card, when you're doing your shopping every weekend, you're spending more, 14% more every week that you do your grocery shopping than if you'd use cash. $200 grocery bill would be around about $28 more every single week in expenses on your groceries. Because using credit, not cash. So just try that there. I think everyone should have a spending plan. Some people like to call it a budget. I think it's very constrictive and restraining. I don't like that word. I love the word spending plan. So having a spending plan is just very, very vital to a get some visibility where all your money is going and what gets measured gets done. If you got a personal trainer and you're trying to lose weight, you're going to have a set of scales, you're going to be weighed in, you're going to be measured. And so you should be doing that with your money as well. Not saying that you should be doing it personally, but you should have someone who's helping you do that, who's weighing you in and keeping you accountable. So those are some key tips on how to save more and spend less. Our friends are credit cards. I absolutely love this quote down the bottom. A debit card can do everything a credit card can do except put you in debt. Financial quicksand. Credit cards. In my mind, I've just seen so many families destroyed by credit card debt. So what are the positives of credit cards? I can hear some of you saying, oh, but I get all the flybys and the frequent flyers and whatnot. Yeah, like when Anset was around, that was a pretty good deal. They've watered them down so much these days. You've got to spend $80,000 on your credit card to probably get a kettle. I mean, it's just crazy how fewer points you're getting for how much you're spending. They cap everything. And so flyby points are worth $0.0005, which is like very, very, very little. Hence $80,000 for a kettle. What are the cons of credit cards? They help you spend more than what you earn. If any of you have a credit card debt, let's say you've got, hey, Scott, I've got $10,000 credit card debt. That's you saying to me, Scott, I've spent $10,000 more than what I've earned. So credit cards allow you to spend money you don't have. You've got to obviously pay it all back. The study is coming back saying you're spending between 12 to 18% more on every purchase when you're using credit as opposed to cash. Because your psychology is different. There's no pain associated with credit cards. And it also promotes unconscious spending. One of the key factors here is when you. I mean, these days you're tapping your phone. Even now they've got wearable rings where you tap a ring and you can pay for stuff. They've tried to delink the pain of spending money so we could spend more. Obviously, back in the day, you'd go into a store, you'd hand over a $20 note, you'd get the goods or product that you purchased, and you maybe get some change, but you handed over a note and you received a good or a service. Unfortunately, where this sits is if you're using a credit card, you're tapping your credit card, you get your goods or product and you get your credit card back. There actually has been no exchange there. There's been no pain. We haven't lost anything. And that psychologically is why we've been really in this sort of debt trap where easy access to a credit card, most people, I think the stats coming out saying the average Australian is owing around about $3,000 on their credit card. The ATO saying 1/3 of Australians think they're paying interest on their credit cards. But in actual fact, two thirds of Australians are paying interest on their credit cards. So bottom line is you're probably marking what I'm kicking here. Credit cards are not great for anything financial. I don't care what you're saying, that I don't pay any interest. I'm not saying you're paying interest, I'm saying you're spending more because you're spending unconsciously. Your psychology is I'm not at my limit, I can afford this. Just because you're not at your limit doesn't mean you can afford this. So if you've already got the Visa debit card and you're running on that system, then great, we can be totally friends. If you're not, then I would love you to perform some plastic surgery, chop up your credit card, send me a photo. I seriously love it because I just know that's such a huge shift for you financially. Not all home loans are created equal. Once again, I don't believe if you're not paying your income into your home, if you're not paying your salary into your home loan directly, I think it's going to be very difficult to pay it off from what I've seen. So let's go through that in a little bit more detail. Offset accounts. A lot of you probably have offset accounts. I just don't think they work. I don't think they work except for one circumstance, and that is if you are currently living in a home which you will be turning into an investment property when you move out of it in that instance, I think offset accounts are great because you're not going to be paying down the debt which when you move out of that house is going to be turned into good debt. So that is positive. And unfortunately, the amount of debt reduction and offset account does help promote is very limited. We're going to go through some data in a second, but they just don't get you out of debt that fast. When you've got money in an offset account, how to explain it for people who don't have one is let's say you've got a $400,000 home loan and let's say you've got $40,000 in cash in your offset account. That means that $40,000 in cash is offsetting the interest on the 400 grand. So you're actually paying interest on $360,000. However, you still owe $400,000. Now there's only one way to pay off a house, that's to pay down principal. So the offset account offsets interest, it doesn't pay down principal. And so unfortunately, like most Australians, if they have access to money, they usually spend it, they usually nibble into it. So that $40,000 today after a year could be 32,000, for example. They just spend what they have direct access to. So that's where the offset account I feel doesn't do as well as what people would hope. And here are the stats. So this is an ANZ offset account. Let's say this is at 2.54%. It was that $400,000 home loan. You've got a $40,000 offset balance, which means you've got $40,000 in cash and savings in offset account, which is tremendous going. And let's say you never spend it, you Never touch the 40,000 ever. The red line here you can see is no offset account. The blue line is with the offset account. So by having 40,000 in your offset account at all times, it's going to pay a 30 year loan off. Two years faster, you're going to be in debt for 27 years and 11 months. Still with 40 grand in cash in your offset account. A lot of you are thinking that doesn't sound right. Surely it would make more than 2 years difference if I had 40,000 in cash in offset account. I'll show you why it doesn't. First thing. Sorry, first thing. The 15 year mark is a super important point in your home loan. The reason why it's very important is that's how long it takes the banks to get all their interest. They want as much interest out of you up front. They front end load your home loan so you pay all the interest up front. Once you pay the interest, then your home loan balance starts to reduce. So you can start to see here the principal starting to come down a lot faster in that second 15 years than it was in the first 15 years. Now here's the thing. I've never once in my whole career of sitting with 6,200 families seen one person hold their home loan for 15 years. Never once, I always ask, how long have you had this home loan? Three years, five years, four years. No one's ever said, oh, I've had this loan for 15 years. So no one ever holds their loan for 15 years, which is Actually, when the offset account starts to kick in the gear, so to speak, why don't they hold their home loans for 15 years? Well, the other important figure is every 3.9 years, Australians refinance. And what does that mean? That means you walk into the ANZ or CBA or WESTPAC or NAB where it may be, and you say, hey guys, I want to renovate, I want to consult my car loan, my credit card, or I just want to find a cheaper rate, for example. And what the bank and the broker does is they reset the clock and on your loan term back to the start of another 30 year period. So you've gone back to ground zero. 3.9 years later, you'll go through the motions again, refinance, they'll reset the loan term back to 30 years. And so most Australians are stuck in this debt treadmill. They're spinning the wheels. That's why they're only paying like 6, 7 grand a year off their principal, because they're stuck in the first three to four years of their home loan. I'm sure if you're thinking about it yourself right now, actually, yeah, I have been refinancing every probably three or four years. So from where this sits is that is the flattest part of the graph and certainly by no means an accident. And that's why people are really frustrated because they're stuck on that debt treadmill there. I want to take this out of the equation and I want your loan starting here. So from day one, you're getting into the principal and you're going to have a shorter mortgage term because you don't have to pay as much interest back to the bank because we're out of debt in half the time. So that's how we want to fast track it starting at the 15 year mark and that's how we end up with a 15 year loan term because we don't have to waste our time refinancing every 3.9 years. So this is how I run my money. This is how clients who are paying their house off every 23 days run their money. This is just a concept and a strategy which I found works beautifully. But for you it may or may not work. It's just some information to help you make an informed decision about is what you're currently doing, working for you, getting the results, how does it go? First and foremost, all your income from you, whether it's you and your partner, should be banked directly into a home loan account. We're very lucky where we have a Transactional home loan account. And what that really means is the minute the income hits a home loan account, it comes straight off the principal and the balance instantly drops down to $489,000. We pay interest every single day of every single month on $489,000 rather than $500,000. It may not sound like a lot, paying interest daily on 11 grand or whatever your salary is. If it's 5 grand, it will be 5 grand less. But we're paying interest every day of every week of that month on a lower amount. And then that over 15 years adds up to a huge amount of savings. Because this is a transactional home loan account. All we can actually have all of our direct debits coming out of our home loan gas bills, phone bills, insurances. All of our direct debits come out of the home loan account. Money is always in that account. Now we don't have to worry about bills anymore. We don't have to stress about when's that due, when's that coming up, because money is always in this home loan account. It's probably best to think of this home loan account as your new savings account. And then from there, what we then go through is a spending plan to work out where all your money goes. And then you say, okay, every week I'm spending about $500, for example, on my food, my fuel, my fun, my groceries, my fuel and my entertainment. So every single week, that 500, for example, we then transfer that into your Visa debit account with whatever bank you wish. And your job is to blow whatever is in the Visa debit account. You're very good at this. I know you can do it. At the end of the week, another five or six hundred dollars comes across. Whatever that figure is, it's free, fully flexible, can be changed at any time. But, you know, whatever is in my VISA debit account is there for me to spend without any guilt for the week on me for my groceries, my fuel, and my fun. The rest of my income is safe and sound sitting in my home loan account, off my principal, working for me for the whole month. And then whenever I need any extra money for birthdays or Christmas or Car Reggio or any of those monthly, quarterly, half yearly, or annual expenses, you put the request through. And in 24 hours, those funds are released from the Money Coach and into your VISA debit account. Why 24 hours? There is a little bit of method in madness there. What that does is it eliminates impulse buyers. If you're down in shops and you're seeing an unbelievable set of shoes or dress, whatever it may be, and say, hi, I'd absolutely love that. Normally you'd hit the credit card bang, impulse buy, no consequences. With this strategy is you've got to think about it, say, okay, I want that dress or I want those shoes. That's not a problem. But you've got to put the request through. That takes 24 hours and then the funds are there. Then you go grab the shoes or the dress, whatever it may be. That process stops the impulse of ah, I can't be bothered coming back here tomorrow and it's too hard. And all those sort of great excuses that we sort of say we're too busy. If we save you one impulse buyer per year, poof, we've done our job. That there is the key. Your budget. Without any impulse buyers throughout the year, all of a sudden we've got surplus. That surplus is sitting off your home loan balance working for you. And so if we can take the impulse buyers out of your budget, you're going to be in such a strong position. But it also gets you conscious of your spending. Your mindset shifts from whatever you've got in your account today after your salary hits is what you've got to spend to I've got $500 in my visa debit account to last me till Monday. What do I need, not what do I want. And so really the maths here is we've got to make sure there's always more money coming in than what there is going out. As long as that's happening, we're driving down the debt, we're creating equity in our home and moving forward towards a debt free life as quickly as possible. So what actually happens is we reverse the flow of your money. Rather than you banking into your savings account, paying the home loan, we've just reversed the flow of that. We now bank into the home loan and we pay the savings account. And by doing that, we're able to shave 15 years off your mortgage and get you debt free a hell of a lot faster than what you're currently tracking for. So we coming back to this, knowing your numbers can't improve what we don't measure. And so we do all the measuring, we've got all of the data, the apps to be able to actually show you every single month where you sit. So this client here had a balance of $319,000 over the course of the year, paid that down to $297,000. You can see the balance coming down beautifully there. So what they're able to DO is pay $21,000 off their home loan in just one year with the exact same income and the exact same debt level. On an old loan with a CH, they paid $7,600 off their home loan. How does that work? How can you have the same income and the same debt level but pay 300% more off your home loan the next year when you're on this program? And that is because we reversed the flow of money. We've taken impulse buyers out of the equation, we're conscious of our spending, and now we're moving forward financially. This client created $21,000 worth of equity in their home in one year, not including any capital growth. The other thing which we love to measure, which we talked about, is your savings rate. What percentage of your income are you saving? Super important figure. So this client is saving 24% of their income. The average Australian saves 4% of their income. We're at 24% here. So an awesome result. You can see the savings rate sort of graph here. Most clients will have three months where it's a negative savings rate because the birthdays fall in the same month as Christmas or the rates notices are due, something like that. But nine months out of the 12 is a positive savings rate for most clients. And then sort of three months out of 12 is a negative savings rate. This is the most important figure on the page. Debt free date. So we're literally live tracking exactly what day you're going to be paying off your home at the current run rate, with your current income, your current expenses. On the 4th of September, 2032, you will be debt free. You will never have another mortgage repayment for the rest of your life. So most people are visual, I'm visual. And so what happens is we take a photo of your house and we want to graph your goal of owning it visually. And so you can see this is the house here, this is how much the bank owns on the left, that's how much you own. So every single year, we want to see the amount that you own becoming more and more and more. And so you actually get to see more and more of your house. So it's just a visual way of showing you how you're progressing towards your goal of home ownership and how much equity you're creating in your home. And obviously we want the percentage that the bank owns going down and the percentage of your home you've got going up. This is that data tracking on how fast you can be debt free. So what we've got Here is based on your last six months figures, this client is going to own their home in 13 years. That was where they were sitting with their old home loan. 26 years left to go. They're going to be paying it off here. What does that mean? That means for 13 years they have no mortgage repayments. For 13 years they got all their salary to put towards lifestyle, family, travel, investments, whatever it may be. But no mortgage repayments for 13 years is a huge win financially. The amount of money they can save is $64,000. Do you know how many people will change like an Insurance to save $12 per month or $300 per year? If you change your mortgage over this structure, you're going to save $64,000. Imagine saving $64,000 on some bills. You'd be changing it like this. So just trying to put that into perspective, that's $64,000 extra in your pocket or in your super fund or in travel, whatever it may be, but where it belongs, in your pocket, not in the banks. We've got 12 steps of financial security and so I think paying off a mortgage is a huge goal. And so we break it down into bite sized chunks or milestones. And so the first milestone, step one, build up a $2,000 emergency fund achieved. Congratulations. We obviously are measuring you on all this. We then send you the congratulations, then set you the next target, the next goal. Next goal, save one month's worth of living expenses and debt repayments. We tell you exactly what that is. You've got to save $5,645. Once that's been saved, that's one month's worth of living expenses. So if you get sick or get injured, you've got one month's emergency fund saved, which is a great result. Checkpoint. Next goal, Parfin external debts. We wipe that out. Step four, save three months worth of living expenses. That's $16,000. So once we've achieved that goal. Checkpoint. Next step, step five, pay down your debt by 10%, increase your salary, sacrifice contributions to super step seven, step eight, step nine, etc until we're debt free. So we give you a pathway, we give you checkpoints and milestones so you know what your actual target is. We find that clients who given a target outperform those clients who are drifting. I don't know where I am, I don't know where I should be. This really gives you that pathway and you know exactly where you are and you know exactly where you're heading. So where we come to the table to help you move Forward financially. We give you the system and structure to pay off your home loan in half the time. That Crown Money Tracker app, which is free, it's on the App Store, you can grab that now to track your whole financial life on one screen. It tracks your net worth, your property prices, your super fund, your home loan balance, where your money's going, you get your own private money coach. So like a personal trainer at the gym, you're going to get better results when someone's keeping you accountable. That's what we are, the personal trainer for your money. Just to make sure that you are kept accountable and it's working as hard as possible for you. We're getting monthly, quarterly, annual progress updates. We speak to each client in different ways. Forms of communication around about 18 times per year is the sort of touch points that we're giving our clients. Super high touch, great service to make sure that you're obviously moving forward at the pace that you'd hoped or even faster. And what this does for all of our clients, it puts them back in control financially. 86% of Australians are out of control. They don't know where their expenses are going. If you don't know where your expenses are, that is out of control financially. I didn't know how much fuel I've got in my tank. What we want to do is put you back in control financially and that feeling is very liberating. So just finish off on a few little pieces here which can add some value to your life financially. Compound interest, I know you've heard of that word. I just want to show you to try and make sure that you actually get it. Compound interest is when you get interest on interest, on interest, on interest. It's like a snowball and it gets bigger and bigger and bigger. Your super fund is compound interest, and that's why it goes up. Every single time your employer puts in your super contribution, you're getting interest on that interest on that interest. And every year it grows. And that snowball gets more and more velocity as it goes down the hill. Compound interest is a mathematical explosion. And I want to explain this to you in simple figures. A lot of clients say, scott, what would you do for your kids? Or how would you help set up your kids for their education? Or how would you help set them up for a deposit for when they're ready to buy a home? This is a prime example of how compound interest can help set your kids up. So let's say we've got two brothers, one name is Ben. At the age of 19, he started putting two grand a year into, let's call it an investment fund, let's call it raise. And so he's got two grand per year he puts into this investment fund and he does that for eight years. Sixteen grand total investment. Eight years, I'm done, I'm out. He stops investing and he never invests ever again. His brother gets a little bit jealous and goes, jeez, my brother Ben's got a bit of a jump on me. So he starts investing at the age of 27 and he invests two grand every single year until he turns 65. So he put in 78 grand over 39 years. Guess who had the most amount of money at the end of that? The guy who put in 16 grand over eight years or the guy who put in 78 grand over 39 years? The guy who put in 16 grand and never invested again had $2.2 million at the age of 65. And the guy who put in two grand every single year for 39 years only had $1.5 million. Can you believe that? That is the power of compound interest. He just couldn't catch it. That snowball was just running at too fast a rate there. So it is something where another question I ask clients is, would you prefer at the end of this month, $1 million or would you prefer $0.01 today and it doubles every single day for a month? Million dollars at the end of the month or one cent today and it doubles every single month? Well, if you'd said a million dollars, you're going to be called a bit short because if you'd said I want a cent today and I want it to double every single month, you'd have $10 million at the end of the month. That is compound interest. Getting interest on interest on interest. So how to make your kids a millionaire, put 50 bucks per week into Raise, which is an investment app which you can download on your phone, where every single time you spend it rounds up to the nearest dollar, puts that spare change into this investment account in your name, which you can see and touch at any time. So it's basically like that piggy bank back in our day where you put 50 cents, 20 cent coins in. This is a digital piggy bank where we don't spend cash as much as what we do hit our cards. And so it rounds up every purchase to the nearest dollar, puts a spare change in. So I for my kid, have set up where every single week, putting in that certain amount of money, and every single week I'm getting compound interest on it. And at the age of 18 or 21 or 30, depends on how well behaved he is, that's when I'll give him that money that's been in that account there. So 50 bucks per week for five years. If you never touch it at the age of, I think 50, he's going to have a million dollars. So if you put 50 bucks a week into account for five years and you never touch it and you let it run for 50 years, that will turn into a million dollars, which is an insane amount. So the key to financial peace and security, studying thousands of Australians and their financial results. It's not the amount you invest. It's not the return that you get on your investment. It's about how frequently you invest. That's why your super fund has done so great, because your employer is investing every single pay, or usually quarterly at least. So every quarter they're putting money into your super fund. It's about how frequently you invest to automate your savings and shift your financial future. I use an app called Raise. There are all different sorts of apps there, but I like it because it rounds up and invests in the top 200 stocks in Australia, top 500 stocks in America. But there's nothing better than having your savings on autopilot. And every time I'm spending, it's rounding up to the nearest dollar. And now I'm saving. So that is everything I've learned about banks and money in the last 18 years. Hopefully got a huge amount of value out of that. If you want any help or guidance or coaching, please reach out. We'd love to help you. And from there, if there's any other questions, we're more than happy to answer those. Look forward to speaking to you very soon. And thank you so much for investing the time.