We’re unpacking a fundamental concept that impacts every mortgage holder, saver, and investor out there — the cash rate.

The Reserve Bank of Australia, or as we say the RBA, uses the cash rate as a tool to implement monetary policy. The RBA Board meets to decide whether to change the cash rate target, that put very simply is the level they want the cash rate to sit at.

We dust off the pages of on The Clever Investors dictionary to break it down in simple terms, explain how it works, and why it matters to you as a property investor.

What happens when the cash rate goes down? and will borrowing money always become cheaper or expensive? 

 

If you found this episode helpful, don’t forget to subscribe and share it with your friends who are keen to grow their property portfolio! And as always, if you have questions or want us to cover a specific topic, reach out to us — we love hearing from you.

While most kids were busy kicking footballs, Stuart Wright was already diving into the world of real estate.

Right after high school, he secured a job in property sales in his hometown of Sydney.

Fast forward to today, at just 23 years old, Stuart owns two investment properties and has an incredible journey to share.

His story proves that investing in property is within reach, even for young people.

People set New Year's resolutions as a way to reflect on the past year, identify areas for personal improvement, and set goals for the upcoming year. The transition to a new year symbolises a fresh start, providing a psychological reset and a sense of optimism.

We know that setting resolutions allows us to define our aspirations, whether related to health, personal development, relationships, or other aspects of their lives. While the tradition of making resolutions is deeply ingrained in lots of cultures, the practice also stems from a desire for self-improvement and a commitment to positive change.

Jerry Seinfeld, one of the most iconic comedians in the world, achieved fame not only through his wit and humour, but also through a simple, yet effective rule and that rule is so elegantly straightforward, you’ll love it.

To become a better comedian, he aimed to write jokes consistently every single day. He did this by marking a calendar with a red "X" each day he wrote new material.

His objective was simple: ‘Don't break the chain’ of consecutive days with an "X". Over time this practice became a powerful motivator for him to continuously work on his craft.

How can we all use ‘Don't Break the Chain’ for a productive 2024?...tune into the podcast. 

Ok, I admit to catching your eye with 'sexy' in the title and for most of you (with the exception to maybe accountants) the though of trying to start a budget is a million miles away from ever being sexy.

But if you are struggling to make ends meet or want to one day buy that home or investment, you need to stop wasting time, wasting money and consider that a budget is a tool to help you get the job done. You'll eventually find this very arousing.  We talk about goal setting and here's the effective way to do it using S.M.A.R.T.

• Specific, make them defined not vague.
• Measurable, add a time of financial value.
• Actionable, you must be really capable of being able to achieve your financial goals.
• Realistic, make them challenging but make them achievable. 
• Timetabled, put a fine time line or deadline on them, progressive milestones dates a great to use.

Evaluate your progress, celebrate you wins, learn from your mistakes, don't ever give up. Let us know how you are going.  

Part two of the battle of the major investment classes.

We dip a toe into their past histories, the highs and lows. Take a look at the term Gearing and then the acquisition, borrowing and disposal costs for each one.  You get to find out who Franking Credit is and what CGT really means. 

All this packed up and delivered faster than your Uber eats dinner. 

Should you investing in property or shares? 

Its a question that many grapple with and sadly many put it in the too-hard basket and never do anything.

We put the gloves on these long time adversaries and let them duke it out in 'The Clever Investor octagon'. 

There are many reasons why you would pick one over the other. It will depend on your individual financial circumstances and goals. Listen to the episode on 'building your team' as these are the people you'll need in your corner to give you the right advise. We are going to look at the basics of property and share market investing and give you an insight to help you answer this perennial question. We've split this into two episodes or should we call them Rounds ?

If you’ve been to any family multi-generational gathering, you would have heard a 20/30ish year old say

‘I’m never going to be able to afford to buy property.’  

It's been hot topic around the BBQ grill for years and right now, you could say its boiling.

Especially around the rising property prices in Sydney. Feeling frustrated about it? 

We have a solution.

We are personally inviting you, family, friends, loved ones to an all NEW online webinar event called

“Helping your kids into the property market.”

It's being presented by my good friend and CEO of Blue Wealth Property Dr Tony Hayek.

Tony will be debunking the common myths surrounding the affordability of property, explaining why now is the best time to be investing and how using research will get them the results they want.

Here are 3 things you will learn at the event:

• We are debunking the myth that your kids will never be able to buy property
• We’ll give you solutions to help your adult kids enter the property market sooner
• Learn where the property markets are, and what opportunities our research is uncovering.

Booking link: Helping Your Kids into the Property Market

https://www.bluewealth.com.au/event/booking/1626/

There is an old saying that 'if you fail to plan, you plan to fail'. A budget is a personal financial plan that you can use to make sure you have plenty of pay left at the end of the month.  Learning to make, plan and run your own Budget is a skill that takes time to perfect.

The Benefits of Budgeting

• You take control of your money
• Avoid unnecessary debt
• Pay off debt faster
• Show banks you are a low credit risk
• Much better for your mental health
• You become a better lover (I might have made this one up)

Property investment can be complex for first time investors.

In our typical 'Clever Investor' style you know it doesn't have to be that way, follow these nine simple steps.

#1 Have a Plan

#2 Know your Numbers

#3 Use a Mortgage Broker

#4 Get Educated

#5 Think with your Head

#6 Avoid Negative People

#7 All good things take Time

#8 Use a Property Manager

#9 Reflect, Review, Refocus

A terrible thing about growing up is thinking about all those grown-up things. 

Understandably, dying is not something any of us really want to dwell on. However, if no will is found on that fateful day, it is usually presumed you passed away intestate.

That is, without a will. 

The best way to ensure you have covered all bases is to get advice from a licensed legal or estate planning professional. You can also learn more about intestacy on the NSW Trustee and Guardian website.

Come along to this very special webinar event where we will help you explore the strategies behind what Rentvesting is, and how you can still own AND live in the location you love.

If you have been faced with the difficult decision of wanting to buy, but not knowing if you can afford it in your chosen location?

The ‘Great Australian Dream’ of owning your own home and being able to retire comfortably has had to change. Lets explore how many Australians are set to achieve financial freedom.  

Wednesday, 23rd March 2022 7:30pm - 8:30pm AEDT

Rentvesting webinar

 

Have you been laying asleep at night thinking 'What really is a Contract of Sale?'  and when you've discovered the answer to that you'll be asking yourself...

'Can I sell or buy property in Australia without one?'  'Are all these contracts are the same ??'

Oh you're hooked now........

Find out the answers to all of that and so much more by our studio guest Peter Ishak, property contract expert, all round nice guy and founder of Ishaks 

Ishaks is a professional, experienced team with a commitment to meticulous process and individual service. The organisation has deep knowledge of the conveyancing industry and are specialists in off the plan and house & land acquisitions. 

What does most people’s superannuation look like?

Most Australians are in superannuation funds selected by their employer.

And of the 15 million superannuation fund members, 40% of you have multiple accounts !!! That collectively costing you $2.6 billion in additional fees each year.

60% of Australians make no choice on how their super in invested, by default most of it is invested into the share market (and nearly 50% of that is in the equites markets).

What's the alternative??

This week we take a short peak into Self Managed Super Funds (SMSF).

 

 

 

Lets get you ready for a great 2024 because life is all a bit too fast-paced at times and the idea of multitasking has been hailed as a coveted skill, almost a badge of efficiency. Yet, scientific research consistently tells a different story, humans simply cannot multitask. What we perceive as multitasking is in fact just task-switching. A rapid shifting of attention from one task to another.

Understanding this phenomenon requires a journey back to the origins of the term ‘multitask’. This concept of multitasking gained popularity in the computer industry during the 1960s when operating systems were designed to execute multiple tasks simultaneously. The term gradually trickled into everyday language, implying the human ability to perform several tasks simultaneously. However, neuroscientific studies debunked this notion, revealing the brain's limitations in handling multiple tasks concurrently.

The human brain operates on a limited bandwidth for conscious attention. When attempting to multitask, it divides this finite resource among the tasks at hand, resulting in reduced efficiency and increased errors. Research from the University of London found that multitasking lowered IQ points more than smoking marijuana or losing a night's sleep.

The myth of multitasking reflects the brain's inability to perform multiple tasks simultaneously. This phenomenon underscores the importance of focus and concentration in achieving goals, especially in the realm of wealth building. By acknowledging the limitations of multitasking and embracing a focused approach, you, me and everyone else can optimise our efforts, make informed financial decisions.

Short term loans are not a new thing and since Adam was a boy there has been a need for quick no questions cash.

 

It's a well backed big business now as the Australian payday loan market has become a billion-dollar industry.

With the growth and ease of the internet in our world its now estimated that 90% are applied for online.

We look at what to watch out for when utilising this type of credit.

 

We talk about a very unique bank, we’ve all heard of it, but you can't get a credit card with them. They have no need for adverts on TV, they don't sponsor a footy team and you can't get a mortgage from this bank.

Opening the lid on The Reserve Bank of Australia. 

 

This week Owun teaches us to no longer take that innocent piece of paper for granted.

Within its great mysteries it harbours a multitude of must-have-information-bits and if you think its confusing to look at, then you can bet that the loan assessor at the bank will push your file into the to-hard basket.

Owun lifts the lid on Gross and Net pays and introduces you to Beryl in payroll.  

You are not alone when you are trying to build your wealth, so please stop trying to do it all on your own. 

Don't fall in to the horrid trap of spending time trying to Google(Edu)cate yourself.

There are beautiful, qualified, trained, experts out there, waiting to join your team. 

Who are they and what do they do?...welcome to this weeks show. 

Banks and other lenders use your credit score to decide if they feel you are a good or bad risk. Knowing what is on your credit file can help you understand why a lender might reject your application or get a great deal.

Your credit score is calculated:  

• the amount of money you’ve borrowed
• the number of credit applications you’ve made
• whether you pay on time

The score will be between zero and either 1,000 or 1,200. A higher score basically means lenders consider you less of a risk.

You have a right to get a copy of your credit report for free every 3 months and I highly recommend you get a copy at least once a year.

Jump online and get a credit score for free from an online credit score provider, such as Equifax Credit Simple, Finder Canstar

Let us know how you went getting your credit file.

An introduction to The Clever Investor Podcast:  Do you wish that all things wealth and finance were much easier to understand and not presented by a bunch of beige cardigan wearing geeks. We are dishing up the easiest to understand finance program, served in bite-sized chunks, no show is any longer than 20 minutes, your brain will thank you as your knowledge grows. Hosted by Owun Taylor, a multiple award-winning expert with a glorious knack for explaining the complex world of wealth in the simplest of ways. 

In preparation for that no-man’s land between Christmas day and New Years when you pleasantly forget what day it is and might just become a little bored. I walked around the Blue Wealth office and asked the team their favourite books. Each of these books offers unique insights and here's a concise summary for each book and why they're worth reading….and most of these are available as audio books.

 

"The Richest Man in Babylon" (George S. Clason):

Timeless financial wisdom wrapped in captivating ancient parables, making complex money principles accessible for everyone's understanding and application.

 

"Rich Dad, Poor Dad" (Robert Kiyosaki):

A perspective-shifting narrative highlighting the significance of financial education and investing, delivered through relatable storytelling that inspires proactive wealth-building strategies.

 

"Losing My Virginity" (Richard Branson):

Branson's exhilarating autobiography captures this entrepreneur’s audacity, resilience and innovation, offering invaluable lessons on risk-taking, creativity and building an empire.

 

"The Intelligent Investor" (Benjamin Graham):

A classic masterpiece shaping modern investing, imparting crucial principles on value investing, risk management and disciplined decision-making in financial markets.

 

"Outliers" (Malcolm Gladwell):

Unveiling the hidden factors behind success, Gladwell's exploration of outliers challenges conventional thinking, emphasizing the roles of environment, opportunity and dedication in achieving extraordinary results.

 

"Useful Belief: Because it's Better than Positive Thinking" (Chris Helder):

A pragmatic guide redirecting focus from mere positivity to actionable belief systems, empowering readers to adopt practical mindsets that yield tangible outcomes. Each book carries transformative lessons applicable across personal and professional domains, making them invaluable reads for anyone seeking growth and understanding.

 

"How to Win Friends and Influence People" (Dale Carnegie): Timeless guide on effective communication and relationship-building, offering practical tips applicable in personal and professional life.

 

"Atomic Habits" (James Clear):

Insightful strategies for habit formation and productivity enhancement, providing actionable methods to transform behaviours and achieve lasting change.

 

"Limitless" (Jim Kwik):

Unleashing mental potential through memory enhancement and accelerated learning techniques, fostering personal growth and cognitive optimization.

 

"Extreme Ownership" Jocko Willink:

Leadership principles rooted in accountability and responsibility, empowering individuals to take charge and excel in both work and life.

 

“Empire of Debt: The Rise of an Epic Financial Crisis” (Addison Wiggin and Bill Bonner):

Insightful exploration of historical and economic factors contributing to contemporary financial crises, providing valuable perspectives on global finance.

 

“Confessions of an Economic Hitman” (John Perkins):

Revealing firsthand accounts of economic manipulation and its global implications, offering a critical look at geopolitical influences on international economies.

 

“Principles for Dealing with the Changing World Order” (Ray Dalio):

Dalio's insights into navigating a shifting global landscape, offering principles for adapting and thriving amidst evolving world dynamics.

 

“The Subtle Art of Not Giving a F**k” (Mark Manson):

A refreshing take on personal development, advocating for focusing on what truly matters and letting go of societal pressures.

 

“The Old Man and the Sea” (Ernest Hemingway):

Hemingway's poignant tale of determination and resilience in the face of adversity, a timeless classic about the human spirit.

 

“Fahrenheit 451” (Ray Bradbury):

 A dystopian narrative highlighting the dangers of censorship and the importance of critical thinking, still relevant in today's society.

 

"The Mountain Is You” (Brianna Wiest):

A guide to self-discovery and inner transformation, encouraging readers to confront personal obstacles and find empowerment within themselves.

 

"Never Split the Difference: Negotiating as if Your Life Depends on It” (Chris Voss):

Insightful negotiation tactics derived from high-stakes situations, offering practical strategies applicable in various aspects of life and business. Each book holds valuable insights, from personal development to navigating complex global issues, making them essential reads for diverse perspectives and knowledge enrichment.

 

“The Four Agreements: A Practical Guide to Personal Freedom” (Don Miguel Ruiz):

Timeless wisdom outlining four guiding principles for personal growth and freedom, offering transformative insights to break self-limiting beliefs and achieve emotional liberation.

 

“The Alchemist” (Paulo Coelho):

A captivating tale of self-discovery and destiny, inspiring readers with its profound narrative on pursuing dreams and finding meaning in life's journey. Both books offer profound insights into personal growth and fulfilment, making them essential reads for anyone seeking wisdom and inspiration.

 

Once upon a time in the sprawling city of Cashington, there lived a gentleman named Hugh Mann, an uneducated property investor whose ambitions rivalled the grandeur of the city itself.

Hugh had risen from humble beginnings, he lacked formal investment training but he felt he always possessing a natural judgment for spotting profitable opportunities in the real estate market.

On a bitterly cold Christmas Eve, Hugh found himself in his chilly cramped office, surrounded by stacks of papers and blueprints.

The flickering candlelight cast elongated shadows on the peeling wallpaper, creating an atmosphere both dim and cosy.

His mind, however, was far from the festivity of the season, engrossed in plans and strategies to expand his property empire..........but then.

When first-time property buyers make mistakes, they are financial and strategic decisions. This week with the assistance of our special guest Diya Dhadda, Social Media Manager extraordinaire at Blue Wealth. Owun and Diya are going to navigate the daunting journey of the first-time property buyer.

Diya recently put together a very successful education event aimed right at Gen Z that unravelled the complexities and gave expert insights and tips to empower the younger generation in making informed decisions.

We chat about how to avoid the financial pitfalls to navigating the market and pave the way for a smooth and savvy entry into real estate ownership.

 

Stuck in this predicament?

Here is a super special show that was a Pop-up webinar event, so we are pushing past the normal bite-sized show and filling you with a massive amount of brilliant information.

This will help you make an informed decision and answer all your “sell vs hold” questions!   With 13 interest rate increases in the last 18 months, a few clients had been in touch to chat about whether they should sell their investment property or continue to hold? 

So together with @bluewealthproperty we made a Pop-Up webinar event hosted by Dr Tony Hayek to answer your questions and give you all the information you need to make the right decision for you. Like, subscribe and follow. 

Have you got 30 minutes to spare during your lunch break or after work? With 13 interest rate increases in the last 18 months, a few clients have been in touch to chat about whether they should sell their investment property or continue to hold. In light of this, we're hosting a Pop-Up event where we'll answer your questions and give you all the information you need to make the right decision for you. Tune into the online event at 12:30pm or 7:30pm on Tuesday 12 December. Register HERE: 12:30pm - https://bit.ly/3NaWIs7 7:30pm - https://bit.ly/3RmmLPA  

In this world where currently live, convenience reigns supreme, the extreme ease of ordering takeaway food has become a go-to solution for many. While it satisfies cravings and offers a break from the thought of slaving away in your own kitchen, this seemingly harmless habit can leave a lingering and detrimental aftertaste on your financial health and any long-term investment plans. At first glance, the occasional order of takeout may seem inconsequential. A quick fix for hunger or a treat after a long day. However, these seemingly minor expenses can quietly erode your financial foundation.

Consider this,  Australians are spending an average of $60 on the various food delivery services each and every week, so this habit of ordering food delivery will blow-out to well over $3,120 a year. The compounding effect of these small expenses is often underestimated. Every dollar spent on takeaways denies your investments the opportunity to grow and accumulate future value. Let’s not forget the impact of excessive takeaway consumption extends beyond the financial realm. Regularly indulging in fast food not only affects your wallet but also your health. But we’re not just taking about a possible expanding waistline, think of the hidden cost that lay in the potential health issues that can arise, leading to medical expenses that can put dents your finances. These health concerns can further disrupt your ability to save and invest, and the knock on effect of creating a cycle that hampers your long-term financial security. So, what strategies can be employed to counteract this impact? It’s not necessarily about completely eliminating the convenience of a takeaway from your life, but rather about adopting a mindful approach to spending and consumption.

This tasty habit of ordering takeaway food might seem harmless in the moment, but it can have far-reaching consequences for your financial future. If you want to make a difference its going to take some effort on your behalf. Revaluating spending habits, setting (or starting) budgets, embracing home-cooked meals and redirecting saved funds into investments, you’ll pave the way for a more secure financial future.

I think you’ll enjoy the taste of financial success and find it far more satisfying than any fleeting pleasure from a takeaway.

 

Australia’s inflation, how prices for things go up, slowed down a lot in October.

People didn't spend as much money, so it's less likely the Reserve Bank will increase interest rates, which affects how much it costs to borrow money. The cost of living, or the average prices for things, went up by 4.9% over the past year. That's slower than the 5.6% rise in September.

The Australian Bureau of Statistics said this on a Wednesday. Those supposed experts thought prices would go up by 5.2%.

Some of the things that got more expensive were housing by 6.1%, transport by 5.9%, and food and drinks by 5.3%. But the government helped keep some costs from rising too much, like rents and electricity.

Compared to the month before, prices went down by 0.3% in October. Rents went down by 0.4%, and holiday travel costs dropped by 7%. These inflation numbers are the last big ones the Reserve Bank will look at before their final meeting of the year about interest rates. Before this, the bank had increased interest rates 13 times in a year and a half.

Michele Bullock, the newish boss of the Reserve Bank, talked about how they need to be careful. They want to control how much prices go up, but they also don't want to make it hard for the economy to grow or for people to find jobs. Some experts think because people are spending less and prices aren't going up so fast, the Reserve Bank might not increase interest rates again soon.

Talking of the RBA:

The Reserve Bank of Australia's boss, Michele Bullock, was talking at an event in Hong Kong this week. She mentioned that even though there's been a lot of talk about the 13 times interest rates went up, people's money situations at home are doing okay.

She seemed surprised that the economy in Australia handled these interest rate increases so well. Bullock said in The Australian Financial Review that despite all this talk or "noise," households and businesses in Australia are actually doing pretty well. Their money situation, called their "balance sheets," is in a good place.

Bullock mentioned that even though many families and businesses are facing a cost of living challenge, their situations are still good. But she also said it's "very uncertain" if prices will go back to normal in the next two years. She talked about being surprised by how strong the economy has been. It's doing better than expected, which means some prices for things like services are going up a bit more than they thought they would.

Bullock's little talk was to a group of important bankers, all this just before the final meeting of the Reserve Bank's board next Tuesday the 5th of December.

This week, the government will be making those legislation changes to how the Reserve Bank works. They want to change things a lot, like how often the bank's board meets to talk about interest rates. They are supposed to reduce the number of meetings from 11 a year to eight, and each meeting might be held over two days.

In the world of sports and finance, the journey from being a high-level professional athlete

to using the skills learned to create wealth is a fascinating paradigm.

 

The desire to win:

Both paths require dedication, resilience and strategic thinking, but each offers distinct challenges and rewards.

High-level professional athletes often measure success in terms of physical prowess, competitive achievements and the fame it attracts. Athletes are often devoting years to rigorous training, mastering their craft and pushing the boundaries of human performance. These athletes understand that any form of greatness requires sacrifice,

Similarly, wealth creation demands dedication and hard work. Successful entrepreneurs and investors apply the same tenacity and discipline they honed as athletes to navigate the world of finance. They’ll strive for greatness in their chosen field, continuously learning, adapting and pushing their limits.

Andrew Mortimer is our very special guest, if you know anything about Rugby League you'll know the Mortimer name sits proudly in the sport. Andrew knows lots about playing sport at a high level and the parallel of creating wealth using the same skills in creating wealth for the long term.

Athletes face injuries, failure, defeats and setbacks, us mere mortals who are aiming to create our own wealth will encounter financial risks, market volatility and occasionally failures.

 

Often depicted in movies as the pinnacle of the financial world and constantly popping up in our weekly news broadcasts, Wall Street is a symbol of financial power and influence, but what exactly is it?

 

Wall Street is more than just a street in Lower Manhattan, New York. It's the beating heart of the American financial system. This bustling epicentre is home to some of the world's largest financial institutions, including banks, stock exchanges and investment firms.

The New York Stock Exchange's history traces back to the signing of the Buttonwood Agreement by twenty-four New York City stockbrokers and merchants on May 17, 1792, under a Buttonwood tree located outside 68 Wall Street.

This agreement organized securities trading in New York City and marked the beginning of the New York Stock Exchange.

At its core, Wall Street serves as the centre of the stock market in the United States. The New York Stock Exchange (NYSE) and NASDAQ*, two of the most prominent stock exchanges globally are based here. These exchanges provide a platform for buying and selling shares of publicly traded companies.

The connection of global financial markets means that what happens on Wall Street doesn't stay confined to its physical location. News of a major economic event or a shift in investor confidence on Wall Street can and will quickly travel worldwide, affecting markets in Asia, Europe and elsewhere for the positive and the negative. This link underscores the significance pull Wall Street in shaping the broader global financial landscape.

Owun

Christmas is a time of joy and celebration, but for many it can also be a financial challenge if you're not well-prepared. To ensure your holiday season is filled with merriment rather than money worries, here are five financial tips to help you better prepare for an Aussie Christmas.

1. Create a Christmas Budget:

One of the most effective ways to prepare for Christmas is by determining a comprehensive budget. Start by a list of all your expected expenses, including gifts, decorations, food, and travel. Be realistic and avoid overspending. Setting a budget not only helps you keep track of your expenses but also allows you to allocate those precious funds wisely, preventing unnecessary debt accumulation in the months after.

1. Save in Advance:

If you haven't already, start setting aside money well before the 25th of December to cover your expenses. Try opening a dedicated savings account and contribute regularly. A great idea is to set up an automatic transfer on payday so you consistently add to your Christmas fund. This saving in advance will avoid you resorting to credit cards.

1. Make a Gift List:

Gift-giving is an big part of Christmas for so many of us, but it can be expensive. Create a list gift-receivers before you head off shopping and determine a spending limit for each person. This is going to get you to be creative and that’s not at all a good thing. Thoughtful, heartfelt gifts often mean more than expensive ones. If you’re artsy or a baker, consider homemade gifts which can be more budget-friendly and memorable.

1. Shop Smart and Early:

Avoid the last-minute rush and the temptation to overspend by starting your Christmas shopping early. Keep an eye out for sales and discounts throughout the year and take advantage of sales events. Shopping in advance allows you to spread your expenses over several months, reducing the financial burden as the holiday season approaches.

1. Set Realistic Expectations:

It's essential to manage expectations during the Christmas season. Communicate with your loved ones about your budget and encourage them to do the same. Be open about your financial boundaries and explore alternatives like a Secret Santa gift exchange, where each person buys one gift, reducing the overall cost of gift-giving.

As the holiday season approaches, keep these financial tips in mind to help you better prepare for Christmas. By planning ahead, setting a budget, saving in advance, and shopping wisely, you can enjoy the festivities without the stress of overspending.

 

Dictionary definition: lottery ~ noun

• a means of raising money by selling numbered tickets and giving prizes to the holders of numbers drawn at random.
• a situation whose success or outcome is governed by chance.

Winning the jackpot in lotto might seem like a stroke of luck, but have you considered the post-lottery experience?

You allegedly have a 1 in 77 million chance of winning over $1million on Australian Powerball. Remembering the basics of what it is, its gambling designed to raise money for the organiser and as long as there have been lottery winners there are lottery losers.

For years and years, former big-time winners have been sharing insights on how they not only lost all the money, but they also ended up losing companions, friends and attracting unwanted attention along the way.

A dream comes true??

Lottery millionaires often lose their newfound wealth quickly due to a lack of financial education. While winning the lottery seems like a dream come true, the sudden influx of money can be overwhelming and lead to impulsive decisions. Without a proper understanding of managing their finances, these individuals often fall into common traps that erode their wealth rapidly.

Many big-time lottery winners go on wild spending sprees making extravagant purchases without considering the long-term consequences. They buy expensive cars, luxury homes and indulge in lavish holidays. It seems innocent at the start but this reckless spending can drain their funds rapidly, leaving them with little to invest or save for the future. They often overlook the importance of budgeting and financial planning, which are essential for building and preserving wealth.

Lottery millionaires losing their fortunes quickly is a common occurrence due to their lack of financial education. The absence of financial knowhow leads to impulsive spending, susceptibility to scams, poor investments and an inability to plan for the future. Building and maintaining wealth requires an understanding of financial management and without it, the dream of long-term financial freedom can quickly turn into a nightmare of debt and regret.

But who are we kidding, winning lotto would be great, spend wisely, have a plan and as I always say, Knowledge is Power.

Superannuation was introduced to Australia in 1992 through the Superannuation Guarantee (SG) system. This landmark reform mandated that employers contribute a percentage of their employees' earnings to a dedicated retirement savings fund.

Superannuation has since become a critical pillar of Australia's retirement income system, ensuring financial security for retirees.

Australia’s superannuation scheme is relatively unique. While many countries have mandatory pension systems, they may differ in structure and implementation.

Some countries with similar systems include New Zealand and Singapore, but the specifics can vary significantly. It's essential to examine each nation's pension regulations individually.

What should I understand regarding my own Superannuation?

Most Australians are in superannuation funds selected by their employer.  Over 60% of Australians make no choice on how their super is invested and sadly 37% of Australians have little to no understanding of how superannuation works. Of the 23.8 million superannuation fund members, 24% have multiple super fund accounts, this is as a result of changing jobs over the years.

So, as you can imagine, each of these individual funds has annual running costs, this seem painless because it gets paid out of your fund. But having multiple funds running at the same time means long term you could be clocking big fee's associated with having these accounts. Collectively its costing Australians $2.6 billion in additional fees each year. Most Australian’s super is heavily invested in the share market.

Helping shed some light on the mystery of Superannuation, we have Tyron Mitchell, the boss of Orange and Bathurst Financial Planning.

Like, comment and follow.

Over ten years ago, when SMSF property lending started, the highest loan you could get was $500,000.

Back then, house prices were lower, and this type of lending was new. But now, SMSFs are the second biggest superannuation asset class in Australia. We got Strachan Taylor from Helia back on this weeks show, because Helia thinks that SMSF property lending has grown up and done well, so it's time to increase the most you can borrow.

Now, they're making it easier for SMSFs to get more money by increasing the loan-to-value ratio (LVR) to 90%. Most SMSF property loans require you to pay back the interest and principal (P & I) over 20 years or more.  SMSF property loans have done really well. This great news lines up perfectly with Blue Wealth Property's "Buying a Property With Your Super"

education event on the 1st of November.  Follow the links to book in.

Just like a football team adjusts its game plan throughout the season to achieve victory, it's essential to understand the importance of changing your personal financial goals over time.

Just as no two games are the same, the financial journey you embark on is influenced by many variables. In this article, we'll explore how your financial goals can be likened to a football team's game plan and why flexibility is the key to success.

Structuring and adjusting loans are crucial to any transaction, no matter who you are. Nathan Newham and Russell Quinlan are two such experts from Mortgage Choice in Hornsby and Sydney’s Northern Beaches.

We chat about the dangers of not having a game plan, how the young adult kids of home owners have the power to help them get on the pathway to making some great changes. Especially if you encounter setbacks or changes in your life, it's essential to set new goals and adjust your financial plan accordingly

These realities can affect your ability to meet your initial financial goals. By remaining flexible, setting new goals when necessary, and seeking guidance, you can tackle financial challenges head-on and ultimately reach your end game of financial security and success. Remember, it's not about how you start; it's about how you adapt, persevere, and finish strong.

Buy now or wait and save?

Lenders Mortgage Insurance (LMI) has been a big help in letting people who want to own a property get started with less money for a down payment.

It all began in 1965 when the government made a plan to give insurance for home loans that covered up to 95% of the home's cost. The idea was to make it easier for people, especially those buying their first home, to become homeowners.

Strachan Taylor knows everything you need to know about LMI and is in charge of partnerships at Helia, (formerly Genworth), Australia’s first Lenders Mortgage Insurance provider, a company that is dedicated to leading the way for years to come.

We asked Strachan to pop into The Clever Investor Podcast studio and tell us about the benefits of lenders mortgage insurance and how it can make a big difference for people who want to invest in property or buy their first home. You'll learn why LMI can be a useful tool for all types of property investors, not just the first homebuyers. LMI is there to help with the challenge of saving up a 20% down payment.

The Helia estimator provides some good insights into the deposit options that could suit your circumstances, click this link to have a play around. Deposit comparison estimator

Prepare to decode the enigma of superannuation with our latest podcast show, as we go Unravelling the the Mystery and find out the answer to the question, Is it Designed to Baffle?" In this episode, we're thrilled to welcome a special expert guest, Tyron Mitchell, founder of Orange & Bathurst Financial Planning. Tyron brings over two decades of financial wisdom to the microphone and he'll guide us through the labyrinth of questions. When is the right time to first see a Financial Advisor?? Together, we'll demystify complex terms, regulations, and strategies, helping you start to take control of your financial future. Tune in for invaluable insights, actionable advice, and the keys to unlock your superannuation's full potential. Hit the Subscribe button and get some clarity!

 

You can contact Tyron and his team:

Orange Financial Planning enquiries@orangefinancialplanning.com.au

Gen Z, refers to the generation of people born between 1997 to 2012. This means, the oldest Gen Zs would be 26 years old, and the youngest would be 11 years old. 

Dr Tony Hayek is back with us this week. As this podcast was being recorded the rest of the office was putting the finishing touches to an education event aimed at showing Gen-Z (and their family) all about how they can get into property. Educating and planting the seed for your long-term investment journey . Dr Tony and Owun talk about how you can help yourself in creating a plan and set goals to start your investment portfolio.

• Help you create a plan to start your investment portfolio.
• Show you that with the right education, investing is easier than you think.
• Explain how you and other young Aussies are in a great spot to make some serious money through property.

 

WINhDggo1gAAzFqDMhPp

D2UBjETgumjsv0j0YRkJ

Before 1966, Australia used a currency system that might seem to be puzzling for us today. Instead of the dollars and cents we're familiar with now, they used pounds, shillings, and pence. This system had its roots in British traditions, but as times changed, it became clear that a switch to decimal currency was necessary for various practical reasons.

Imagine going to the store and trying to calculate the prices of things using pounds, shillings, and pence. It was like trying to solve a math puzzle every time you wanted to buy something! This made shopping and handling money confusing for everyone and I mean everyone, from everyday people on the streets to businesses and banks. This complex currency system had 12 pence in a shilling and 20 shillings in a pound, leading to lots of tricky calculations.

The world was evolving, and trade and finance were becoming more international.

On February 14, 1966, the new decimal currency was officially introduced in Australia. The switch wasn't always smooth – some people were used to the old ways and were hesitant about change…. (no pun intended). But over time, the benefits of the new system became clear.

It showed that sometimes, embracing change can lead to better outcomes for everyone.

 

You would have heard the word depreciation, but what does it mean?

It's a slow change in value that happens to things over time.

Depreciation affects both cars and property, but in different ways, especially in Australia.

 

When you buy a brand-new car and drive it out of the showroom, it's no longer considered "new". Cars lose value as they get older and are driven more.

This decline in value is called car depreciation. In Australia, cars can lose value quite quickly, often around 20% in the first year and then around 15% each year after that. So, a car that's worth $50,000 when you buy it might only be worth $40,000 or even less after just one year.

Now, think about property, regardless of if it’s a house or an apartment.

Unlike cars, residential property generally tends to appreciate in value over time. This means its value increases as the years go by.

Property values can be influenced by factors like location, housing demand, local demographics and sometimes improvements made to the property. However, it's important to remember that property values don't always go up, there are situations that can cause them to stagnant for long periods or they can fluctuate, swinging up and down, depending on local market conditions.

In Australia, property is often seen as a long-term investment. People buy property with the hope that its value will increase over time, allowing them to be sold for a higher price in the future. This is why many Australians invest in property to help secure their financial future.

So, weather you're thinking about buying a car or investing in property, knowing how depreciation works can help you make informed decisions for your financial goals. Your own team of experts will help guide you along.

The Allure of Buying an Old House for Investment

I think we all understand that investing in real estate has always been an attractive option for those looking to secure their financial future. While many investors focus on buying new properties, there is a certain romantic charm and allure to buying an old house.

Old houses often possess a unique character and history that can be appealing to both buyers and tenants. However, it is important to be aware of the hidden costs and disadvantages that come with buying an old house for investment.

A thorough financial analysis will help you determine if the investment is financially viable and aligns with your investment goals.

Come with me as we will explore the potentially massive downsides of purchasing an old house and provide tips for mitigating these disadvantages.

You might fool yourself into thinking you are buying the house cheaper but.....

 

Have you ever wondered where all the numbers and facts about Australia come from? Well, a big part of that job is done by the Australian Bureau of Statistics, or ABS for short.

A treasure trove of information:

Imagine you're curious about how many people live in Australia, how many babies are born each year, or how many people have jobs. The ABS is the place to go for these kinds of answers. Its main role is to collect, analyse and share all sorts of information about Australia and its people.

The ABS plays a crucial role in helping the government make decisions. Let's say the government wants to know how many people are unemployed or how many new businesses are opening up. They can turn to the ABS for this information. This helps the government create policies and plans that are based on real facts and figures, making sure they're making the right choices for the country.

The Australian Bureau of Statistics is like a friendly detective agency that collects, investigates and shares information about Australia and its people. From population numbers to economic data, the ABS helps us understand how our country works and how it's changing. So, next time you're curious about Australia's facts and figures, you know where to look – the ABS has got you covered. The Australian Bureau of Statistics Website

"If I had asked people what they wanted, they would have said faster horses."

Henry Ford 1863-1947 Founder Ford Motor Company 

 

Henry Ford is a pioneer of the automobile industry, he was the founder of Ford Motor Company and chief developer of the assembly line technique of mass production. His statement holds a profound lesson in innovation and vision.

Before we pull the wheels off this statement, there has been debate for many years if Ford did utter those exact words and the only guy that can really tell us (that being Henry Ford himself), died in 1947.

But let’s still jump aboard my explanation truck and take a drive around the block to unravel the meaning behind this quote and understand why it's more than just a clever phrase.

Embracing innovation over familiarity:

Picture a world where horses were the primary mode of transportation. In that context, asking people what they wanted might have resulted in responses like "stronger horses" or "faster horses." These answers make sense based on what was familiar and within the existing frame of reference.

Ford's quote means embracing a mindset of innovation and thinking beyond the expected. It means asking "why" and "what if" instead of just "what." It's about creating products and solutions that exceed expectations and address needs people may not even be aware of.

Henry Ford's quote highlights that true innovation and your own wealth growth often come from being provided solutions you didn't know you needed, rather than simply fulfilling a want.

Owun

Knowledge is Power

Owun is the Senior Education Specialist at the Blue Wealth Property Academy and hosts The Clever Investor podcast. He has worked in finance and property for well over 20 years and is known for being able to easily explain the complex world of wealth creation.

 

On this weeks show we have a blunt chat about how putting things off can totally mess with our quest for wealth.

Procrastination comes to visit all of us from time to time. It’s the act of delaying or postponing tasks despite knowing their importance. It’s often due to avoidance from a lack of motivation or time mismanagement. If left unchecked it eventually leads to decreased productivity, increased stress and then the procrastination bush-fire roars back into life.

A slippery slope.

This sounds like a very obvious statement but ‘putting-things-off’ can be a significant hindrance when we are all trying to grow wealth. We know that delaying or avoiding financial actions will have detrimental effects that you’ll be kicking yourself for in years to come.

A few Bite Sized Basics to combat ‘putting it off’.

In most cases it’s not going to be easy, the habits you are in have most likely been with you for years, so overcoming financial procrastination requires discipline, commitment, a proactive mindset and a plan to work with. Here are some of the main points that you can build strategies on to combat procrastination and boost wealth-building.

• Set Clear Financial Goals
• Create a Financial Plan, with the help of an expert.
• Take Immediate Action
• Seek Professional Advice
• Automate Savings
• Stay Educated
• Stay Accountable

By overcoming procrastination and adopting proactive financial habits, individuals can set themselves on a path to build wealth and achieve their long-term financial objectives.

In the time its going to take you to warm up on the treadmill in the gym we'll step you through the ways in which procrastination can work against you.

Hit that like button and subscribe.

When it comes to property investing, the journey can be both exciting and financially rewarding. However, navigating the intricate landscape of real estate and finance requires more than just blind enthusiasm, it demands a team of professionals who specialise in various aspects of the process. From property researchers and mortgage brokers to financial advisors, tax accountants, conveyancers and wills and estate lawyers.

Teamwork makes the dream work.

Assembling the right team is crucial for a successful and stress-free investment venture.

It’s a win-win:

Working together with this multidisciplinary team offers several advantages:

Expertise: Each professional brings specialised knowledge to the table, ensuring that every facet of your investment is meticulously addressed.

Risk Mitigation: Property investment involves financial, legal, and tax-related risks. With experts guiding you, potential pitfalls are identified and minimized, protecting your investment and financial well-being.

Time and Stress Savings: Dealing with property transactions, financial intricacies, and legal matters can be time-consuming and overwhelming. Entrusting these responsibilities to experts frees up your time and reduces stress.

Customised Strategies: A tailored approach ensures that your investment strategy aligns with your unique financial situation, risk tolerance, and long-term goals.

Long-Term Vision: Your team helps you create a roadmap for sustained success. They monitor market trends, evaluate your investment's performance and you as a team can adjust plans as needed.

In the realm of property investing, success isn't a solo endeavour, it's a collaborative journey guided by a team of experts. By enlisting the services of a property and wealth experts you position yourself for a prosperous and secure investment future. Investing wisely isn't just about buying a property, it's about building a legacy.

“The investor’s chief problem and even his worst enemy - is likely to be himself.”

Benjamin Graham was a British-born American economist, professor and investor and one of the granddaddy's of modern day economics theory and thought.

The two main emotions we have are fear and greed – this is why some people are motivated by either the carrot or the stick.

Today we are not taking a peak behind the curtains, I want to lift the top off your head and show you what’s going on inside your head. But I can’t to this alone, we need and expert in the way we move our minds.

You might need to take two laps of the park on todays walk....this is a big subject, but so worth it.

 

Welcome to the podcast!

Tax time always fun and while property investors are often happy with the potential tax credits they can get, it's becoming a horror show for accountants with the increasing workload.

Today, we'll discuss some essential tips to stay on the good side of the Australian Taxation Office (ATO) and avoid potential penalties.

The ATO is taking a closer look at rental property owners who may be incorrectly reporting their taxes.

According to their estimates, nine out of ten landlords are either under-reporting their income or over-claiming deductions, resulting in a staggering $1.3 billion in lost revenue annually – roughly $400 per investment property!

To address this issue, the ATO is collaborating with lenders and property managers, cross-referencing data to ensure that tax returns are accurate. So, what are the key areas they are focusing on?

Remember, failure to comply with the ATO's requirements could lead to penalties of up to 75% of the tax shortfall – something no landlord wants to deal with!

Keep in mind that the ATO may request evidence to support your claims, so having receipts, invoices, and bank statements ready is crucial.

In case of an audit, you must be prepared to provide all relevant documentation.

By being diligent and adhering to these guidelines, you can ensure your tax returns are accurate, and you'll be better equipped to avoid potential penalties.

I hope this help keep it smooth and worry-free!

Borrowing power refers to the amount of money a lender is willing to lend you for various purposes, it can be anything from buying a house, your investment property, a new car, a business, sofa or just about any other financial need.

The borrowing power is determined based on several factors and the exact process may vary depending on the type of loan you're seeking and the lender's specific requirements.

Here are a few of the general steps to improve your borrowing power....(the lover thing was a bit of a joke). 1 Income and Employment Stability:

Lenders typically want to see a stable and regular income to ensure you can meet your loan repayments. The higher your income, the more borrowing power you can potentially have. But a steady job history can also positively impact your borrowing power. 2 Credit Score and History:

A good credit score demonstrates your ability to manage credit responsibly. Lenders will assess your credit history to determine the level of risk associated with lending to you. A higher credit score can increase your borrowing power. 3 Debt-to-Income Ratio:

Lenders analyse your debt-to-income ratio, which is the percentage of your monthly income that goes towards debt payments (including rent/mortgage, credit cards, and other loans). Keeping your debt-to-income ratio low can enhance your borrowing power. 4 Assets and Liabilities:

Your assets (e.g., savings, investments) can improve your borrowing power, while excessive liabilities (e.g., outstanding debts) may reduce it. 5 Loan Purpose and Collateral:

The purpose of the loan and whether you have any collateral to secure it can impact your borrowing power. Collateral provides the lender with security in case you default on the loan.

6 Loan Term:

The length of the loan term can also influence your borrowing power. Longer loan terms may result in lower monthly payments but could limit the total amount you can borrow. 7 Loan-to-Value Ratio (LVR): For certain types of loans (e.g., mortgages), the lender may consider the loan-to-value ratio, which compares the loan amount to the value of the asset being financed. A lower LTV ratio can increase your borrowing power. 8 Lender's Policies:

Different lenders have varying criteria for assessing borrowing power. Shop around and compare offerings from multiple lenders to find the best fit for your financial situation. To improve your borrowing power, work on maintaining a stable income, building a strong credit history, managing your debts responsibly, and accumulating assets.

You might also want to consider seeking some professional financial advice to better understand your specific situation and options for maximizing your borrowing power.

In a momentous announcement, the Australian federal government has officially confirmed the appointment of Michele Bullock as the new Governor of the Reserve Bank of Australia (RBA).

Scheduled to take office in September, Bullock will be the first woman to hold this prestigious position in the RBA's history, marking a significant milestone for gender representation in the country's central banking sector.

Michele Bullock's appointment comes after a distinguished career in economics and finance, spanning over three decades.

One of the primary concerns will be ensuring a sustainable recovery post the pandemic's impact. As the economy gradually rebounds, the RBA will play a crucial role in managing inflation, interest rates, and unemployment to achieve a balanced and stable growth trajectory.

Bullock is likely to emphasize the RBA's commitment to digital innovation. With ongoing discussions surrounding the issuance of a central bank digital currency (CBDC), her leadership could accelerate efforts to explore the potential benefits and risks of adopting such a digital currency.

This forward-looking approach aligns with the RBA's commitment to staying at the forefront of technological advancements in the financial sector.

Furthermore, her appointment signifies the RBA's dedication to promoting diversity and inclusivity within its ranks.

As the first female Governor, Bullock will serve as an inspiring role model for aspiring women in economics and finance, encouraging more women to pursue leadership roles in the central banking and financial sectors.

So congratulations again Michele, if you happen to be listening to this edition when you're walking the dog, get in touch we'd love to have you on the show.

 

The RBA's decision to keep interest rates unchanged at 4.1% was a welcome relief.

If we consider the CPI from January to May on an annualized basis, it is now below 2.8%. Additionally, there are still 12 previous rate hikes that have not fully impacted the economy.

Over the 12 months leading up to May 2023, inflation has significantly decreased from 6.8% to 5.6%, with a peak of 8.4% in December 2022.

This decline can largely be attributed to the base effect, where current prices are compared to higher prices from the previous 12 months.

Although it may not be a popular opinion, we believe that inflation will decrease more rapidly than what most people anticipate.

Historical trends show that extreme spikes in inflation tend to have a reflexive effect,

Within economics, reflexivity refers to the self-reinforcing effect of market sentiment, whereby rising prices attract buyers whose actions drive prices higher still until the process becomes unsustainable. 

So put simply, they typically decrease as rapidly as they increased.

When the June CPI figures are released this month, we can expect to observe a sharp decline in inflation, provided there are no unexpected shocks.

While the RBA's current thinking may be unclear, one thing is certain: the pressure for further interest rate increases is diminishing, especially considering that the full impact of previous rate hikes is yet to be fully reflected in the data.

Many industry experts often compare interest rate levels in Australia to those in other countries based on a given level of inflation.

They argue that Australia's interest rates are not high enough given the inflation levels.

However, they tend to overlook the fact that Australia is one of the most vulnerable economies to changes in interest rates worldwide.

This vulnerability is primarily due to our substantial levels of household debt relative to disposable income, along with a majority of mortgages being on variable rates.

In comparison, the US has 90% of mortgages on 30-year fixed rates, with a considerably lower overall household debt level.

Higher interest rates tend to impact regional banks, commercial real estate, small businesses reliant on bank loans, and unprofitable tech companies more than households in Australia.

The risk of a recession remains significant, leading to questions about whether the RBA is adopting a strategy similar to that of the US Federal Reserve.

Despite the official mandate of promoting maximum employment and stable prices, every rate hiking cycle in the US has historically resulted in some form of economic disruption.

By analyzing their actions rather than their words, we might mistakenly perceive this as a deliberate tactic.

Creating some sort of economic failure allows for a resumption of rate cuts in an environment where inflation does not initially flow into general goods and services as measured by the CPI.

Instead, inflation would primarily manifest in asset prices, a consequence that policymakers seem unconcerned about.

Is an intentional plan ? or simply a result of incompetence?  It doesn’t fundamentally change the situation.

It is worth noting that historically, the first rate cut has often signalled the beginning of a bull-run in the property market.

A bull-run or bull-market is an period of time when prices rise and investors are optimistic. 

If on you daily walk with your dog see's you face to face with a real bull....we recommend you run.

And after that hit the like button please.

Once upon a time in the bustling city of Prosperis, there lived a young and ambitious woman named Lily. Lily worked diligently at ‘Big City Corporation’, where she dedicated long hours to her job. However, Lily had a burning desire to create wealth for herself and pursue her dreams of building a property portfolio.

One day, as she sat at her desk crunching numbers and writing reports, Lily received an email that instantly sparked excitement within her. It was an invitation to attend a wealth creation event that would take place the next week. The event promised to impart invaluable knowledge and strategies for building financial independence.

Lily pondered over her options. She knew that attending the seminar would require her to take a few hours off work, which could be perceived as unprofessional. But deep down, she realized that this opportunity could be the catalyst she needed to unlock her true potential...

Take a stroll along the mystical pathway towards doing a little someone for yourself today, that tomorrow you will thank you for.

Hit like and show us some love...