It’s a common tale – all too common. You have a typical Aussie couple, let’s call them Tina and Jack Smith, who are saving up their money, working hard and trying to get their mortgage down. They are in their 40s and comfortable enough, their kids are in their teens and their house is worth about $650,000 with $200,000 worth of debt. They only have $100,000 in super and no other investments to speak of. That doesn’t sound too good…
Sadly we see this pattern cropping up a lot – people who are in their mid 40s and even sometimes mid 50s with more debt than super and absolutely no plan or idea how to get rid of their debt, but with the mindset that if they keep working hard and chipping away at the mortgage they’ll see a better tomorrow. Oftentimes, people think that they don’t have the capacity to invest in property, they simply think it’s beyond them. Many people have no idea that they’re actually fully capable of investing and have the capacity to do so straight away. The cost of not doing so is huge, compared to not investing.
The facts are that the way they’re going currently, their tomorrow is going to be tough financially if they don’t do something.
Tina and Jack want to get ahead – but they have a couple of things stacked up against them: being busy, and being afraid.
They’re totally missing out on the many legal tax breaks that Australia has for property investment, and thus they are missing the effective and powerful debt elimination tools at their fingertips! Being busy will keep them working for years, and working for every dollar they get because they’ve got bills to pay – but they don’t realise that by making smart property investments their money can work for them! There’s also the fear that accompanies the mindset of working hard for your money, and that’s the fear of loss and debt. No one likes to lose money or to be in debt – but that’s the very mindset of a successful investor. They get comfortable with debt and start to see their money working for them.
To some people it may seem easier in the short term to avoid the fear and go back to being busy working.
The end result for Tina and Jack is that they take home only two thirds of the money they work so hard for.
Without an understanding of the tax system and how to use it legally, their reality is that the harder they work the more the tax man gets.
So Tina and Jack just keep on working hard, while their internal dialogue (or permission for wealth) is to keep on working hard to pay for the house and educate the kids. And they probably see their friends all doing it the same way, and making the same mistakes. This creates the illusion that they’re on the right track – but they’re not! The reality is that their friends’ assets, just like Tina and Jack’s assets, wont be enough for retirement.
Like so many Australians, Tina and Jack don’t know how to get ahead financially and are afraid of losing the money they have worked so hard to earn.
They are financially naïve.
And being financially naïve is one of the most expensive luxuries anyone can indulge in. So what should they do? And what can you do?
For starters, it is important to take some proactive steps to take charge of your financial future.
If you don’t know where your future is headed make sure you check out our FREE property investment seminars or even request a complimentary consultation with our property coaches