June 30, 2017
A NEW FINANCIAL YOU!
GOAL: Get control of my finances
The start of the new Financial year a perfect time to set your financial goals.
A new financial you, NOW!
I think there are two opportune times every year to set or review your goals – January and June. The start of a new financial year can trigger in you the opportunity to set new financial goals for you personally.
Setting goals in the areas of Debt Reduction and Wealth Creation are critical if you wish to build genuine wealth. Then with your goals in place, it’s important to be organized and have a system to help you. That’s where Think Money can help. Everyone is different, we all start at a different spot financially, have different timelines and goals. We look at where you are starting from, what you want to achieve and create an individual strategy to help you get there.
Creating wealth through property is a long-term strategy, but it must start somewhere and that’s normally with a goal of what you want to achieve. Call us today and make a time to chat with Chris or one of our Think Money team and see what a difference we could make to your life.
Looking forward to seeing you soon.
Change your thoughts to change your behaviour
Taking the first step requires taking action and the action is to set a goal. Once the goal is set, you can then set a plan to gather the required information to create new wealth beliefs that will allow you to make the brave decisions required for financial success. If you surround yourself with like-minded people and develop a great mindset, you will create certainty.
Embrace the change and challenges you will face
We all like to be in control, as most people fear change and uncertainty. The way to overcome fear is with knowledge. What knowledge? The answer lies in seeking out anything or anyone that will help you embrace your goal. If that goal is financial security then you need to take action. Go to a seminar, listen in on a webinar, read books, discuss options with property and wealth experts, or join a financial property group and surround yourself with people who have what you want.
If you vividly imagine reaching your financial goals, and the life that comes with them, you will be more likely to attain them!”
Create a great financial mindset
Stop procrastinating and talking about what you know and look for something you don’t know! Find new information. Talk to me about what you want and where you would like to be in three months, six months, two years, five years and ten years time. The key to financial freedom is what you don’t know, not what you know now and have been doing. What is it that you can do differently? Is there a better way to reach your financial goals? Creating a great financial mindset requires asking questions and means getting uncomfortable. It’s learning about your budget, where you spend your money, what you can do with your money and getting advice from experts.
Use your goals to keep you moving forward
If you vividly imagine reaching your financial goals, and the life that comes with them, you will be more likely to attain them – and be happier along the way. Happiness is the key and it is a definite link to a wealth mindset. You must write down your goals. Post your goals in visible places to remind yourself everyday of what it is you intend to do.
Don’t go it alone
Procrastination, fear and neglect are the most common causes for lack of financial security. It’s important to have a good support team – often people who are not related to you can be the best support. When you are embarking on a new venture or learning curve that may be outside your family or friend’s comfort zone, they may try to talk you out of taking action. Surround yourself with like-minded professionals, and most importantly, advisors who have wealth and a wealth mindset.
Book in to a Think Money event!
Think Money Wealth Through Property specialises in helping people just like you to get out of the debt cycle, and start to accumulate wealth, without affecting your lifestyle. We teach you how to beat the banks at their own game, by using our Cash Management System and the right loan structure so you can own your home sooner, get rid of your credit cards and consumer debt, and start living the life of your dreams.
The 7 things I wish I’d learnt at school …THAT WOULD HAVE MADE ME A MILLIONAIRE BY THE AGE OF 25
1. Where to go for advice
Most people go to a bank for advice on the right bank accounts and loans to have. A bit of a laugh really when you consider their profit margins. It’s like asking the mouse where to put the cheese! I wish I had been taught to ask someone who has money the best way of handling it.
2. Credit cards are like fast cars
A fast car driven recklessly is dangerous, but treated correctly it isn’t. Credit cards are the same. Most of us just use them to help the banks, but you can turn the tables and use the banks money for free and use your money to reduce your interest. This secret could have saved me thousands!
3. More organised = more money!!
It is a fact that if you get organised with your money, you have more of it. Bills get paid on time, you don’t waste precious money on fines, fees and overdue payments, and you make your money work for you instead of against you. A cash management program accelerates your debt reduction and wealth creation.
4. You can make compound interest work for you or against you
Saving to buy something instead of borrowing can halve the price you pay for most items. This sounds boring to us in this ‘have it now’ world, however, compound interest working for you instead of for the loan company saves you thousands. I wish someone had told me that ‘interest free’ isn’t free at all. The interest has been tacked onto the price – ask for the ‘cash’ price and see.
5. Debt consolidation can be your best friend or your worst enemy
Consolidating credit card and consumer debt onto your home loan can reduce your repayments each month and lower the amount of interest you pay. I wish I had been told to use this extra money to then reduce the home loan much faster, and not fall into the same trap again and again – burning up precious equity that could have been used for investing.
6. The power of separating your life from your investments
There are 1.7 million people in Australia who invest in property, less than 2 per cent get to five properties or more. Why? They don’t keep their personal and investment money separate. I wish I had learned that the key to successful investing and stress-free living was to keep these sides quite separate from each other.
7. Don’t assume a home loan is a long term debt
I wish I had been taught that a home loan doesn’t have to be a stone around my neck for 25 years, or best case, if I paid weekly or fortnightly, 17 years. What most people don’t know is that if handled correctly, a mortgage should be paid off in five to seven years just by doing your banking differently.
Chris continues to cover each of the 7 things about money over the next editions of Wealthy and Wise.
#4 You can make compound interest work for you or against you
It is amazing how many of us take borrowing money to pay for our little pleasures in life as the norm nowadays. In our parents era, if you wanted a new car or boat, motorbike or holiday they would save their money and pay cash.
Today we live in a world of instant gratification. Even buying a computer or lounge suite finds offers of “buy now pay later” everywhere… financing our consumer spending eats up 65% of incomes in the 20 to 30 year old age group. The other downside is you will often pay two or three times more for the item by compound interest working for the bank, than if you were to save and pay cash. A further downside is there has been a huge rise in bankruptcies in the under 30s in the last 10 years.
The reason it is so easy to get loans and credit cards today, is the amount of profit the banks and lending institutions create from these small debts. The interest rates in some cases are over 30% with short term lending or pay day loans skyrocketing even higher.
Interest rates in some cases are over 30% with short term lending or pay day loans skyrocketing even higher.
Saving and paying cash not only reduces the amount you pay for the item, but interest on the money invested can have compound interest working for you instead of the bank. I have calculated figures on the difference of saving vs borrowing on the purchase of a car over five years. While there isn’t enough room here to display the tables, should you be interested in seeing the details you can download my Fast Debt Reduction e-book from our website thinkmoney.com.au or call to have a printed book posted.
Needless to say, thousands can be saved by not falling into the consumer debt trap, taking the time to save before buying is the easiest way to begin the journey of accumulating wealth. Often by the time you have saved enough money to purchase that ‘have to have’ item, you may find it wasn’t that important after all.
The complete e-book is available online at thinkmoney.com.au or call 07 5430 4777 to get your copy.
Pay off your home loan FAST!
Have you been paying your home loan off for years and feel like you are getting nowhere? Let’s look at your current situation:
Add up the amount you have paid into your loan to date:
Your monthly payment – say $2k x 12 months x 5 years = $120k. Yet most loans have only reduced by $5k in that time… now we have an OMG moment!
It’s time to do things differently. Change the way you are doing your banking, follow the next 5 steps and you are on your way to getting out of debt fast.
1. Get the right loan
A line of credit is my preferred financial platform for fast debt reduction. I also prefer to split the debt into 2 sections, a line of credit, and a term loan – both interest only. This enables you to have a smaller chunk of debt to concentrate on paying off at first, therefore you can see a bigger result more quickly which will keep you focused and motivated to do more! How do you eat an elephant? One bite at a time!
2. Set up a Cash Management System
The next vital step is to work out what money comes in and goes out. A Cash Management System lets you organise your money so that your proposed spending is less than your income. It is also very important to track what you spend against what you planned to spend. Otherwise your efforts of debt reduction will always be thrown off track by the ability to afford to re-spend these savings on ‘stuff’ and shoot your debt reduction plans in the foot!
3. Use Your Credit Card
Using a credit card for all of your spending, and then paying it out on the due date means you are using the bank’s money free of charge for up to 55 days. Yes FREE.
Most people deposit their money into a bank account, and the banks pay little or no interest. In fact, they often charge a monthly fee for the privilege of holding your cash. They are usually sitting on a mortgage with the same bank and paying 6% or 7% interest on the money the bank has lent them.
To top it off, they then borrow another few thousand on a credit card and pay through the nose for the ‘short term loan’. Worse still, continue to pay that money again and again, thus making the item they purchased with the card five times more expensive than if they had paid cash! Let’s break the cycle! (sorry, getting off the soap box now!)
4. Bank your pay into your loan
Let’s cut out the middle man, your bank account that earns you nothing, but costs you to have it, is like the middle man in a transaction. Banking your money straight into your home loan is like going straight to the wholesaler – saving you a fortune! Your line of credit is just like a bank account. You can bank money in, set up direct debits (but first check if the direct debit can be on the credit card for no extra cost), you can use an Eftpos card to withdraw cash. All the while your cash is sitting on your loan reducing the principal and you are paying much less interest. All of your normal spending is being done on your credit card, and you are paying no interest at all on the card. The credit card can be paid out in full on the due date from the line of credit. This can also be set up automatically so you don’t forget!
5. Stay organised
This method works so well as long as you stay organised. It is much less effective if you don’t actually do Step 2. If your money is mixed together, you can’t look at the available balance of the line of credit to determine what you can or can’t afford. This will often lead to a financial catastrophe, as it creates a false sense of wealth. By constantly re-spending the amount you have reduced your debt by, you will never pay off your home loan.
Change your life 35 minutes!
Yes I know it sounds impossible, but that is exactly what our clients tell us we can do. If you feel you have lost control of your financial direction, are just treading water, or worse still you are fearful of what your future looks like, then maybe it’s time to change what you are doing.
Get your money working for you, not the banks
We specialize in teaching people to do their banking differently, managing money to reduce debt and not your lifestyle and help you take back control of your life.
Pay off your home loan in 5 – 7 years
How would you feel if you were able to reduce your mortgage by $20,000 and purchase two investment properties in just 12 months? We have clients who have done that and more and are well on the way to creating the lifestyle they want.
The 4 Rules of creating wealth through property
There are 1.7 million property investors in Australia yet less than 2% own five properties or more. Worse still, more than 60% sell their property and get out of the investment market in the first two to three years. The secret is separating your life from your investments and we teach you how to do it.
Call us today to change your life for the better.
Life’s Better For this think money client
Suzanne Macks – Maths & English Teacher
Back in 2013 I went along to the Women’s Lifestyle Expo and listened to Chris Childs speak about what she did at Think Money and thought, yes, this is for me.
As a single woman on a teacher’s wage, plus all those misconceptions you hear about needing a 20 per cent deposit (because that’s what the banks tell you), I didn’t think buying an investment property would even be possible. In fact, as an educator myself, I felt really uneducated listening to Chris speak about finance. I have already bought two investment properties and I am aiming for five in five years and perhaps even 10 in 10 years.
I would love to be able to cut down on the number of hours I need to work and live off my investments eventually, which I never thought would happen. I have introduced three other teachers to Think Money because they have heard me talk about how easy and hassle free it has been. My advice would be to just do it. It’s not as hard as it seems, certainly not as hard as quadratic equations that’s for sure!