Steps to income Freedom

media and YouTube and such. So team, today I am coming to you talking to you about creating income freedom. Now, this is one of the biggest things that most people crave for and they want for when they get started out on the journey of growing an investment portfolio is for the ultimate outcome to create financial freedom. Now, financial freedom means different things to different people. However, when I think about financial freedom, what I really think about is how can we build a portfolio of quality and diversified assets which deliver a predictable and sustainable income stream into our lives to be able to fund the lifestyle you desire. Now, that's what I consider to be success when it comes to investing and growing a strategic wealth portfolio to create the income stream to fund the lifestyle you desire. That's what the entire game is all about. Now, if you agree with that definition or if you've got some adaptations to that definition, I would love to know. Put it in the comments. And by the way, Before I get too far into it, let me know that you can see me okay. Let me know that you can hear me okay. And let me know what you had for breakfast this morning, just so I know you can find the chat box as well. Would be super good. So today what we're going to be talking about is how do you make the switch from effort-based income streams to asset-based income streams? Because this is the only way, and I repeat, it's the only way that that you are ever going to create financial freedom in life is making that switch. Because if you're always held in effort-based income streams, then you are the one that's always putting the effort in. Okay, it's always up to how much effort you put in, how much time you put in, you always have to be involved. And there's no true financial freedom out of that because you're still involved. Yes, you can leverage it, there's a whole bunch of things you can do, but you are still involved, right? Then asset-based income streams is when your assets are out there earning the income for you. Okay, so this is where you can create that true level of passive income. Now, I generally don't really like the word passive income. It's a bit of a buzzword. A lot of people use it, but nothing is ever truly passive. We just have different levels of involvement associated with it, right? What I really like to call it is leveraged income stream, because if you think of something as truly passive, what that means is that you never have to be involved in it at all. And to me, you are neglecting your wealth business, and any wealth business which is neglected winds up dying. So instead, we move from being actively in the trenches creating the income and building our portfolio to ultimately be a steward of wealth where we're still kind of, you know, the chess master on the chessboard of our own portfolio. Now, this is a bit of a working session with you guys. There is a guide there for you. You should have it in the description section already. If you do not, make sure you put in the chat guide and my team will make sure they get it over to you as well, okay? But there should be a guide in the description session. If you're keen to come and work through this with me, then let me know that you're keen because we're in a bit of a working session this morning as we're kind of building out what is your steps to income freedom. Now, by the end of today's session, here's what my outcome for you is. I want you to have a strong, strong understanding of how do you make the switch from effort-based to asset-based income streams, what your next steps are going to be, where you want to hold your wealth that's going to create the income stream to fund the lifestyle you desire, and for you to actually have some understanding of where you're going to be directing your attention and your focus in order to start bridging the gap from where you are to where you want to go in the future. That's my income for my that's my outcome for you guys to drop for running alongside with Matt. Just say up for it. Let me know that you are, and let's dive into the session and into the training. So I'm just going to share my screen so we can see this, and hopefully you can see this now. If you can see it, just let me know. Just type in seen. Let me know that you can see it. Okay, just so I can. Make sure that we're all looking at the same thing. And so if you want to download this guide, there is a link in the comments and you're able to go jump in and download this guide. Okay, now this is the this is the income freedom formula. Now I want to know. I want to make sure you guys can see that. Okay, hopefully you can. Yep, hopefully you can see that. Okay, let me know if you can see it okay, otherwise I could try to blow it up a little bit more. No worries. Too easy. Okay, so this is the Income Freedom Formula. Let me walk you through this model step by step so you can get an understanding of what really goes into this right now. I want to point out a couple of key things. On the left-hand side of the Income Freedom Formula is the— are the effort-based income streams. On the right-hand side are the asset-based income streams. Now, what you're going to find at the different corners are the different metrics. Now it's saying that— okay, it looks like I might be back again. Uh, team, let me know if I'm back. Looks like I just— I had a rainforest internet. Okay, team, hopefully I'm back. and you guys can see me again okay, and you can hear me again okay. We just had a bit of a dropout in the connection, but it looks like I might be back again. So where I was before we got so rudely interrupted by the internet issues, what I'm talking about is that there's 2 sides of the Income Freedom Formula. The first side of the Income Freedom Formula is all about education. Effort-based income streams, and the right-hand side of the triangle is all about asset-based income streams. And our ultimate goal is to make the switch. We want to go from effort-based income streams to asset-based income streams. That's our entire goal when it comes to, you know, making the switch in the portfolio. Now, on the left-hand side is all about potential. So we've got the low potential over here, we've got the high potential over here. And on the right-hand side is is all about risk versus revenue. We've got the low-risk, low-revenue type of income streams and the high-risk, high-revenue type of income streams. Now, just because they are on the page doesn't mean that you need to be doing every single one of these income streams, and frankly, it would be a ridiculous mistake for you to attempt to be able to do that. Instead, what we want to be doing is that we want to be crafting a plan to make a shift from where you are to where you want to go. Now, where most people begin in terms of their own journey is that they start down here. They either have a job or they are self-employed, which is often just a glorified job. And if you are stuck down here in this zone right now, then you're in the slave zone, right? That's what it is. You're in the slave zone. You're on this treadmill of life. You're exchanging time for money. You're going round and round and round and round. And it's very, like, almost impossible to get off if you just stay in that zone. Now, on the asset-based side of the income streams of this, this is where you have money sitting in a bank, like in an offset account or a high-interest savings account, whatever the bloody hell that means. Or you might have government and institutional bonds, for example. Now, in this marketplace, maybe you're going to save 6. 6% on your, on your offset account, for example. Or maybe you might get, you know, 4% income from here. You might get 4 to 5% on bonds. But the problem we have with that is that inflation is up and above 6% right now. So if your money is not growing by at least 6% or more, then quite frankly, you're going backwards. And once again, consequence, you're stuck in the slave zone. Now, but this is where everyone starts. And we use this as a tool. And so our outcome behind this is that we want to go and generate some income streams. That's what our outcome is. So we want to generate some income streams that we can then use to start moving up the quadrant, right? That's what we want to start focusing on doing. Now, the next level is what I call the freedom zone. Okay, let's get another color for that. I'm not sure it's going to work in this color over here, but this is what we call the freedom zone, right? And so we've got 2 parts of it. We've got the effort-based income streams on the freedom zone. And so this is where you might go and start a side hustle. And one of the things that I teach a lot of my students to do is, well, how can you go and create another higher leveraged income stream? Sure, you may still be putting in effort into this, no issues. But if you're only relying on one income stream, I think that's incredibly risky. I think 2 is okay. I think 3 is where stability begins. Hear what I'm saying? Stability begins at 3 income streams and over above that is abundance. One of the things I teach a lot of my students to do is how do we generate those first 3 income streams in the next 12 months of us working together. That's one of my primary goals for people. Doesn't mean they're all like flowing abundance flows of income in the first 12 months, but we want the foundation set and something that we can grow and scale towards. So remember, wealth creation is marathon, it's not a sprint. Now, so we want to go start our side hustle, and this is where you can use your skill sets, use your inherent genius, of which I know that every single person has one. Use what you know, use your experience, genius, and passion, and find the conduit in between and go and find a way to make some money out of it. Okay, it's one of the first steps for a lot of people. The other side of the hustle quadrant over here is doing joint ventures. Now, this is an interesting one. This is where there's still effort being put into making the income stream, but perhaps the effort is not yours that you are putting in. Okay, what do I mean? So for example, I've got a bunch of clients who partner with some property developers, and they partner with a property developer in a joint venture. The developer is still putting in all the effort. Right? My investors are just acting as lenders and they're supporting it. Okay? Is that it's not an asset? Let me explain the difference. This is a really important distinction because there's a start and there's a finish time. Okay? So it's not something that you can rely upon. Definition of financial freedom is to build a portfolio of quality assets diversified over different locations, different markets, different products. which you can rely upon to create a consistent, reliable income stream to fund the lifestyle you desire. That's what the definition is all about. But if you've got an income stream which you go into a joint venture, then 2 years later, you might make a chunk of money out of it, but then it ends. That's not something you can rely upon for financial freedom. That's a bit of a distinction that you need to understand. The assets are the ones that we rely upon that we can create ongoing income streams out of or ongoing profit returns out of. So, and so I've got some clients doing some of these at the moment. They're looking to make 50% over an 18-month type of period is what they're looking to make in one of the ones we've got going on now. Next one we've got going on looks to be about 60% over 2 years, which is very, very sexy figures. But you're not the one putting in the effort, okay? Now, on the dividend side of the equation, when I talk about dividends, this is where you're owning assets which are delivering dividends for you. So in the business world, this is where you might own shares. You might own public shares or you might own private shares. So public shares is what we already know. It's on the standard share market. You know, you go to the ASX 200, the S&P 500, things like that. You buy some shares and you buy those shares and then you wind up getting some dividends out of it, right? And so on a private level, you know, I do a lot of investing with private businesses. Um, and, uh, in those private businesses, uh, it's not a publicly listed company, but you can still own shares and you can still receive dividends out of it. You know, one of the businesses that a bunch of my investors are getting a part of right now, which I'm, I'm in as well, uh, it's going to be delivering, you know, a 75% of the net profit return until everyone is 100% de-risked, and then delivering anywhere from a 15 to 25% dividend on an ongoing basis. Like, great, great bloody deal. Now, another way to create dividends is the dividends you receive from owning strategic real estate. So when I talk about that, this is like rental income. That's really what I'm talking about. I'm talking about what you're going to receive from owning a property and receiving a rental income. And you know what? A lot of people are going to stop right here. And that's it. And that's totally fine. No one said you have to move up to this next phase over here, right? It's not required. A lot of people, your journey is gonna be, let's go here so we can begin creating another income stream and then push money across and move money across, right? And that's what people's journey is going to be. But we've gotta maximize these elements here in order to be able to funnel more money back over across to the asset side of things. Okay, did everyone get that distinction? That's really important to understand. So, but like no one said you have to go any higher than this. You just simply stay at that freedom zone, it's totally fine. A lot of people will. Now, if you decide to go up the, the level a little bit further, this is where you move into— let's get another color. Yellow for this one, just such a gills. This is the Empire Zone. This is where some serious wealth can be made, okay? Serious wealth. So this is where you might look at things like traditional business. Now look at this though, potential is a lot higher, 100%. Business is probably the highest potential income stream and wealth generator that you will wind up creating, okay? But at the same time, it's also a bloody gladiator sport. And there's a reason that 9 out of 10 businesses go out of business within the first 5 years. It's a gladiator sport. It's a very, very high-risk realm. So we have to understand that, and it's not for everybody. I've met some very successful business people, and I love asking this question, knowing what you now know, would you still go and do what you built, the business that you've built? And do you know what? So many say no, I would just get a high-paying job, buy real estate over a 10 to 15 year period, And then be financially free forever without going through all taking all the risk, going through all the heartache, working you know eighty hours a week and all that type of stuff that's kind of gone into it. The next is all about trading. So this is where we might be flipping real estate or we're going to be flipping property, flipping shares for example. I seem to be a little bit dyslexic this morning. I keep like highlighting the wrong one at the wrong time, right? So it's why we're trading shares. Now again, great way to make some, uh, coin. I've traded extensively in my life, in my, my younger years. Uh, not really my gig now. I don't really want to spend my time doing it. Um, I've got other things that I prefer to spend my time on. Uh, but it's also very high-risk sport. You can make a lot of money, but you can also lose a lot of money very quickly. And flipping real estate, right? A lot of effort involved in that and a lot of, um, risk involved in that as well. Now the difference is what mitigates the risk is the system. So obviously with all these things which are higher risk, there's ways to mitigate the risk as well. So if you're willing to put the time in, get yourself educated, get the system, get the team— hint hint, right? Like, this is the same with success in anything. Get the education, raise your financial IQ, get the team around you, get the system around you, and get a framework in which to operate in and follow a proven model which has been proven before you so you don't have to go and repeat the same same mistakes. Welcome to the formula of success in any endeavor in life, and you can mitigate the risk associated. Now, on the asset side of the equation, this is where you might be tempted to get involved in the cryptocurrency world. Now, of course, the potential here is enormous, but the risk here is enormous. Anyone that's seen the— been involved in the world of cryptocurrency already know that it's is a roller coaster ride. There's no two ways about it, right? It's a roller coaster ride. Over the last 7— okay, yesterday we dropped about 5%. We've come back up 1.65% today on Bitcoin. We're down 5% over the last 7 days. But we've grown 90% since the start of the year. But guess what? 2 years before that, we dropped 90%. And this is just what kind of happens in this world. So it's a high risk, high reward game. And you can also choose to get involved in, you know, angel investing or initial public offerings or initial coin offerings, for example. Again, potential high-risk, high-reward type of game. So what is it for you? Like, where do you want to hold your wealth? Are you— what zone are you interested in? Just going to the Freedom Zone and staying there, or are you interested in playing up in this Empire Zone, right? No one should be answering that I want to stay in the Slave Zone. Like, where do you want to go? And there's no right or wrong answer, it's just right or wrong for you. So Are you more a freedom zone person? You are an empire zone person. Which is for you? Put in the chat in the comments for me. Let me know which is which is you. Now, I have a few activities for you to take and you can do with this, right? So you can start mapping out your pathway to to income freedom. Let's have a talk about what that looks like now, and then I want to take you through this final personal income profile down the bottom over here. As I told you, it's a working session today, so I hope that you guys get involved and you kind of get it done. So step 1, complete your current personal income profile in the color. So we're going to do this over here. I'm going to show you this in a moment. Get 2 colored pens, complete your current personal income profile in one color and answer, what is the primary income zone that you're operating from right now? Okay, are you in the slave zone right now, or have you already transitioned up into the freedom zone, or are you up in the empire zone? Where are you operating from right now? Question number 2, are you more heavily weighted on the effort-based income streams or the asset-based income streams? At what approximate percentage of the total income you receive? So you might go, okay, all right, um, I am 100% just kind of doing the work thing right now, and I really don't have any assets. I'm not earning income from anything else right now. Then you already know that you're 100% over here. Maybe out of $100,000 of total income, you're earning $10K from over here. Well, guess what? That's 10% from the asset-based income streams and 90% from over here. So you want to start to identify what that is, and I'm going to show you, we're going to do this in a moment. What delights you about your current profile, if anything, right? And what concerns you about your current profile? Okay, so let's get some of those answers down, like go through this process. So you can get really, really clear on your current situation and where you are and be honest, and then where you actually want to be going in the future. Now, what we are now going to do is go into the desired, like the future income profile. So let's do this first one first. Let me show you how to do this. Let's rotate this. How do I stop this? Okay, there we go. Okay, so I call this your PIP. It's your personal income profile. That's what I call it, right? So what I want you to do is that I want you to write down, okay, what's your total income? Okay, so We're going to start with the effort-based income streams in the bottom here. So what's the amount that you earn from a job or self-employed? So you might go, okay, well, I earn $100,000 from a job and I have, you know, $10K from a side hustle that I'm doing at this point in time. And sorry, from a side hustle. And we have $10K from a side hustle. And that's what your personal income profile may look like at this point in time. Okay, so out of your total income stream, right, we've got $100,000 here, we've got $10,000 there, so we've got $110K as total. So what that's going to mean— let me get my trusty calculator out because I'm terrible at math— 10 divided by 110. So what that means is that your allocation of income is 9% of the total. And that would mean that over here, this is 91% of the total, okay? Now, we don't have any joint ventures at this point in time. We're not self-employed, another pathway in. So we just move it over here. And so what I want you to start identifying is what percentage of your income is coming from what quadrants at this point in time and what areas, right? Are you stuck down the work section, in the hustle section, or in the— are you up in the business section? Okay, so that's what we want to start to identify. Now, if you currently have some asset-based income streams, that goes in the top. Remember, this is your current level. Then we're going to start to map out what you want your future to be. Okay, that's the next step. So you might then go, okay, well, I have a $10K in my offset account, right? But hey, I'm not earning any income from it, but that's where I have it, right? Uh, I have a property at the moment. Maybe I have a property and I'm earning, um, $10,000 a year from that. And I, I might be staking in the cryptocurrency world and maybe I'm earning, I don't know, $2,000 from that, whatever it actually might be. So based on all this Your total is $22,000 a year in income from the asset-based profile. 10 divided by 22 means that this is— you get 45% from over here, 45% from over here, and 9% from over here. So Is going to be. Let's just see if the connection comes back again. Okay, looks like good to go. This is what your current personal income profile is going to be looking like. Now, what we want to do next is that we want to plan out what's next for you. Where do you want to be earning your income from? Now you might find it easier to go and map it up on, on, uh, on this one up here because you can just kind of go wrap it out, like get rid of all my scribble and all that type of stuff. But you can just whiteboard, decide to map it out, like where do you want to own it? Then you can kind of bring it down. Well, you might go, ultimately what I want is that I want to be earning 70% of my income from residential real estate for my financial freedom, right? My future personal— my future income profile, right? You might decide I want to earn 70% from my property. You might decide, okay, I want to own 10% from shares and I want to be earning 10% from cryptos And you know what? Maybe I don't know. Maybe you want to be owning some in some dividends from some business along the way. Okay, ten percent in private. Okay, and that makes up your hundred percent profile, and you have nothing from over here. Maybe that's you. Now, I retired twice before, and I got bored out of my mind very, very quickly. So I still have. Income from over here. And so despite the fact I have assets earning income streams and I can go back to them whenever I want, I got bored after about 4 weeks of being retired. And because it's not about retirement, setting up a life you don't have to retire from. And so, uh, you know, I earn income from traditional business. I, I don't trade the share market or, or cryptos or the— I don't flip real estate. It's not my gig. I earn income from here, right? And so from the effort side of things, these are the two places where I earn income from. But then I earn income from all of these other areas, right? So I'm very heavily weighted now on the asset now. But but interestingly, income majority comes from business, right? Just because I've honed my skills and. Done some certain things over my life and been able to hone my skills in this. Internet today, aren't we? Party with— so the question is, the question is, what do you want your future income to look like? That's what the question is going to be, and that's what we want to start mapping out right now. So for you, as you're looking at your future income profile, do you want to still be earning some income from down over here in the effort-based income streams, or do you want to be fully out of anything to do with effort, right? Fully out of it. Maybe you might just go, do you know what, I'd love to do a side hustle just for shits and giggles, right? And that will be great. So I might go and do And if I could earn $50K from that working a few hours a day, that'd keep me occupied. I'd be super happy with that. But this whole lending strategy and joint venture side of things when someone else is doing the work and making— that sounds great to me. I love that idea. And so you might go, okay, well, let's get some figures. Maybe you want to go and earn I don't know, $70K a year from that. What do we need to make $70K? Um, I need about $350 grand in some of these deals, and you'll make around $70K a year, right, doing that type of stuff on, on average. And so then what we know is what's our total? Well, our total is $120K. So I need to buy by 120. We're going to be earning 58% from joint ventures, and we are going to be earning 41% from here. And so 100% of our future income profile is just going to be coming from this arena right here. Maybe that's what it is for you. Well, if that's going to be the case, then we now have a strategic direction that we can start building a portfolio towards. Is everyone picking up what I'm putting down right now? When we go to the asset-based income stream, where do you want to be earning your income from? Okay, is it that you want to be— maybe it is that $70,000 in property. And so, I don't know. Maybe you want to be earning fifty thousand dollars a year out of your property pro your property portfolio. You might want to own fifteen percent coming in from shares, and then maybe you want to do some farming and earn another you know I don't know ten k from over here. Maybe that's what it's going to look like. And so in total, fifty, sixty, seventy-five k. We do the math. So 66% over here, 20% over here, and 13% over here. Bring it across and, uh, 87% effectively, right? And so this is what it's going to look like. So we now know where we're going to be directing our attention to be growing your portfolio, to be earning your income streams in the effort-based income streams and your income streams in the asset-based income streams for the future. This sets you up for $195,000 a year style income. You might need like that. You might want more for your ultimate freedom that you want to be able to create. Now you have a direction that you want to start heading towards. I then use a process called the steps to freedom, right? I'm not going to go through that today. We've already been rocking and rolling for half an hour now, and that would then take us to a process of actually going, okay, our next income stream is going to be this, right? And here's how we're going to build it. Then after that, we're going to go to this, and then after that, we're going to go to this, and we start building up those income streams and we map out our road steps to freedom. Now, here's the questions you want to ask yourself. Complete your personal income profile. And so this, you should be on your future desired income profile. Where do you want to hold your financial freedom? What is the next effort-based income stream you're going to install? Okay, let's start to get specific. Is it a side hustle? Do you want to get involved in some of the joint ventures? Like, what do you want to do? Is it an Amazon business? Like, what is it for you? What is the next asset-based income streams you're going to install? Now, that doesn't mean it needs to be flowing abundance of instantly cash flow coming in. We start small and we build up. Like, that's how the game is won. What knowledge or skill gaps do you need to close to realize your future freedom? So this is where we sit there and go, okay, well, in order to create this level of outcome, meaning this increased level of income, who do I need to become as a person that can create that level of income in the first place? That's the strategic question you ask, and then you go to work to getting that information, getting the tools, getting the strategy. You know, a lot of people come and work with me for the pure purpose of that I've been doing this for 20 years, right? And so they want a mentor to be able to help them be able to do the same thing. Maybe for you— and to raise their financial IQ and do a lot of things. Maybe for you it's about, I want to learn how to do an Amazon business. If you want to learn how to do the intricacies of an Amazon business, guess what? I'm completely the wrong person. Never built one, don't want to build one, not my gig, right? But there are some people, other people who are amazing at it, who make a lot of money out of it. And so if that is your specific vehicle, you go find that, but you need the overarching strategy, okay? That has to come first, then the individual, how you're gonna execute that strategy, that comes second. Now finally, who do you need on your team supporting you to create this, right? That's what the next step is gonna be, right? Now, this is where you want to complete. So you actually start to map out a plan to be able to start moving towards income freedom you want to be able to create. Now, what I want to know first and foremost is what you got out of that yourself. Like, what were the big takeaways for you? And I want to know what's your next effort-based income stream and what's your next asset-based income stream? Put them in the comments for me. Put down your plan. What are you going to be starting with as you're going to go through that? Love to know. Secondly, something I want to bring up with you guys. I am putting on the Deal Summit again for the second time. So this is the Off Market Deal Summit. This is an event that I'm going to be running over the next couple of weeks where we are going to be— I'm going to be unpacking for you How do I find all the off-market deals that I do? How do you do the due diligence on them? And how do you actually put them together into a strategic format to create financial freedom? So that's what we're going to be going through. Last year when we did this, it was in about September, October or something like that. It was like people got so much out of it. We had a huge attendance. It was a massive event. It was absolutely awesome. And there's been a lot of demand for people saying, hey, when are you going to put one of those on? And we heard you and we're putting it back on again. This event is absolutely for free. It's called Off Market because the best deals are always done off market, team, pure and simple. And I want to show you how you can start to get access to those off market deals that create more profit, make more cash flow in your situation. If you want to come along to that, there is a link in the comments section or in the description already where you can register. It's absolutely for free. We're going to run it over a couple of days on a weekend for you guys. And we're going to go to town on unpacking strategy, unpacking deals, unpacking due diligence. And you're going to get to see how I've structured and put together some of the deals that a lot of my private investors have been able to access, which are making them 10% to 20% per annum returns. I've even got some at the moment which are doing 2% to 3% a month consistently. There's some deals out there where we're doing 60%. This next joint venture I have coming up is 60% over 2 years, right? Returns like 30% per annum returns. I've got these, some of the cash flow streams that where you're getting your cash on cash return and investment within 2 to 3 years based on conservative numbers, and then you get an ongoing income stream in perpetuity, right? There are some incredible deals out there, team, but you're only going to get the best deals if you know how to shop for them. And the best deals are never done in real estate common domain. Let's be real about it. So if you want to come along for that, There is a link in the description, and if you can't find it, just type in the word off-market into the comments and my team will make sure we get that over to you. But it's going to be a great event. It was an absolute cracker last time and I can't wait to share it with you guys again. So we'd love to know what you guys got out of this. And if you want to come along, guys, make sure you register for the event. The link's in the description right here. Other than that, enjoy the rest of your Thursday, everybody. Hope that's useful.