Episode Details

Today's episode is unashamedly about becoming rich and getting more money.

I've often said that money's important in those areas where it's important and not important at all in other areas.

But any problem that can be solved by money isn't really a problem, is it?

So please let me show you how you can obtain more money.

First of all, we're going to explain why property investors develop financial freedom. In my mindset moment, we'll talk about some of the money habits of the rich.

Then, I'm going to share the steps you need to take to develop financial freedom.

It's a process, it takes time. There are no get rich quick schemes here.

But if you're patient and follow a proven strategy, money doesn't discriminate. You can have as much of it as you want.

Why property investors develop financial freedom

We dream of it, work for it, and plan for it. But can the average Australian develop financial independence?

Yes.

If others have done it, you can too. Wealthy people don't do different things, they just do things differently. And you can learn to do the same.

Not everyone works hard for their money. The rich earn recurring passive income. That means that they control a money source that makes money for them even when they're not there. This is how business owners or property investors build wealth.

When it comes to how people make money, we can all be placed in one of four categories.

Employees – Employees trade hours for dollars. They really only get what's left after the government takes its share in taxes.

Self-Employed – a self-employed person owns a job. They want to be their own boss, but often they've simply swapped one boss for many bosses, called customers or clients. Self-employed people aren't business owners, but they do have an advantage over employees, in that they get to take advantage of tax deductions that allow them to pay their business expenses before being taxed on what's left over.

Business Owner – A business owner owns a system and people work for them. They don't have to be at work in order for the business to run. They invest their money in an idea and a business system, then let that investment – in the form of a business – work for them.

Investor – Investors don't have to work because their money works for them. This is the group that you want to belong to if you hope to be wealthy someday. Investors convert money into wealth. By building your own property portfolio with income-earning residential real estate, you are taking the steps to move from employee to investor.

Money Habits of the rich

• The rich know how to work full-time at their job and part-time on building wealth.
• The rich save their money and spend what's left. Learn to live on 70% of your income after taxes.
• The rich contribute to their communities by giving to charity. Of the 30% of your income remaining, 10% of your income should go to charity.
• The remaining balance should go into savings. When you have sufficient savings, you can begin investing in growth assets.

The steps to financial freedom

Many Australians have chosen to invest in property to develop financial freedom and get themselves out of the rat race. As they take their investment journey they fit into one of the following five Levels of Wealth. Let's have a look at these more closely and see where you sit:

Level 0 – Financial instability

Since most Australians live from pay cheque to pay cheque, they are Financially Unstable. If they lose their job or have an emergency, such as an illness or the car breaks down, they have no money reserves to cope.

Level 1 - Financial Stability

To achieve this most basic le