If You Want To Be Rich Focus On This One Thing

We want to step a bit away from property today
to talk about this concept of the rich don’t work for money, which comes from Robert Kiyosaki’s
book, Rich Dad, poor dad, if you haven’t read it already, but it’s this idea that the rich
don’t work for money, which sounds really strange on the surface because you think you’re
rich. Then you’re gonna have lots of money, so the
bridge to work for money, but it’s just kind of a bit of tweaking in your mindset and what
you focus on that can change the whole trajectory of your life and the whole trajectory of your
finances to move towards being rich, to move towards financial freedom. So we want to spend an entire episode talking
about this concept that the rich don’t work for money and hopefully get it across to you
so that you can start making little practical changes in your life today to set you up to
be Richard, to be financially free in the future. Yeah. Like can you sort of explained to me what
you might mean by this? Because I sometimes grapple with this concept
as well. Like to me it means something and then you
say something else. I’m like, oh, I kind of get that high level
meaning. Yeah, because I think as you said, like it
flies over a lot of people’s heads and would’ve flying over mine for a long time as well. Yes. I think the concept the rich don’t work for
money is it’s only a partial statement. It says the rich don’t work for money, but
the rich work to acquire assets or to build assets is really the crux of it. And so what that means is Robert Kiyosaki
divides assets as things that generate you passive income or that put money into your
pocket. So if you were to stop working, if you were
to quit your job, you were to get fired like Ben did all those years ago. Then assets we put money into your pocket
and liabilities are things that take money out of your pocket, so require ongoing expense
that you need to pay. And so the idea is that the rich don’t work
for money in the form of income or even in the form of a lump sum cash or things like
that, but the rich work to build or to create or to acquire assets in that life. And I think you’re really cool way of explaining
is from my perspective is you know, obviously we still continued to work, but what that
work is, is a transfer of money that is transactional into an asset which provides great care and
in a completely different way hopefully for the rest of your life, or at least for a period
of time where you can take that income and again put it into something else that is going
to create income for life. So it is almost the transfer of money from
one class into a completely separate class. At least from my perspective. That’s how I said it. It’s the truth. It’s the really the transfer of money from
one place to another. But for you, for you, with property investing, you’re not. You’re working to acquire an asset. You’re not working to make a particular amount
of 100 percent. It’s different. It’s hard because you are working to make
a particular amount of money and you’ve done your sons on it and stuff like that, but you’re
working to acquire the. You’re not going to get paid $50 an hour,
$100 an hour or anything like that to do the job or to acquire the property you’re acquire. You’re working and you’re putting in all this
effort to acquire an asset that you hope will pay off for you in the future hundred percent and he’s such a different
concept like it is. That asset from my opinion, becomes and now
the you in a way that works whether you’re awake or whether you’re asleep and therefore
completely changes the employee. Like since I’ve Read Rich Dad Poor Dad at
age 23 and then started buying properties at 24. That concept has been in the back of my mind
the entire time. The first concept that I really, really understood
was acquiring assets because at the time I didn’t have the skillset, the knowledge or
the confidence to go start a business and then you know, after I’d build that asset
basically support me and my family. It was very easy to take that next step. Yeah. I initiate for the business which, you know,
business can be a great asset class as well. Whereas I took a different avenue because
I didn’t want to work for the man. I quit. I decided to create my assets from scratch,
which at the time were websites or still are that website that deliver passive income for
me. So you went down the path where you would
work hard and then you would use money to acquire assets. And then I went down the path where I’ll create
assets and poor in the short term. Building that up and I think the hardest time
to have this strategy in the hardest time to work like a rich person is in the beginning
when you’re rich and you’ve got no assets, your name, you’ve got no passive income coming
in because there’s no leeway there. Especially being in a situation if you’re
married, if you have kids, there’s expenses in your life and you say, well, how can I
work to okay acquire assets or how can I work for assets because I’ve got bills to pay and
that’s. That’s the roadblock. That’s the hardest thing to get past in order
to become rich is I’ve got these bills to pay. I need to work for money to be able to pay
my bills and to be able to step outside of that immediate pressure that says I need to
work to pay my bills and to be able to then say you got flooded. To then be able to say, well, I’m going to
work to acquire assets and for me the way that I did it was that most of my time was
spent acquiring assets and I was poor in the short term in order to do it, but people can
do it in other ways where you continue to work and you continue to pay the bills, but
then you also work on the side to create assets or you invest to create asset so you take
the money that you’re earning to create assets like that’s the hardest time in your life,
but as you start to do it, as you continue to do it and you’re building up assets in
your life, whether they be all assets like a small share portfolio or property or a small
side business, as you start to build them up, got income coming in. Then you get this snowball effect where you
no longer need to spend your time working for money and you can now spend all of your
time building. It’s such a powerful position to be in like it is very,
very, very difficult. Who did the start? Because one, you don’t have the financial
resources or the skill set to actually allow that plane to take off and it takes so much
momentum and energy to get up the grand to save that first deposit. I don’t think there’s anything harder that
you can actually do in life. Like I really think that mentally if you can
save your first deposit, you can end up paying financial ray and wealthy just because of
the energy that it takes to get into that position. Yeah. But once you’re over that hurdle, you know,
it becomes scalable. Definitely easier. And our member, when I used to be very much
just to be attracted when I was working my way towards this journey and I think at 26
or 27 years, years of age, I looked at all of the income that I was generating from like
the side business that I had at the time, the projects that I was involved in time my
conditions in my job, plus my base salary in my job and my rental properties. And then I also that year overlaid the capital
gains that are made thinking that particularly the capital gains that I’ve made on those
properties that are holding was something like six times my actual combined income from
all the hard work that I was doing. And so it does get to a point where over time
that momentum builds like a four percent return on a property that’s worth $200,000 is you
know, 8,000 bucks in your hand effectively, but a four percent return on 2 million bucks
is, you know, 80,000 bucks in your pocket. And so when you start getting to that point
where you’ve got leverage and you’ve got more money working for you and more assets working
for you exponentially becomes easier. And you know, like all good exponential growth
curves that kind of looks really hard. And then it starts to spike. Yeah. And I think the idea here is to get away from
just trying to make more money as the solution to your financial problems. So a lot of people think, oh, adjust, need
to earn more in my job or I just need to make a bit more on the side or something like that
to get away from that to be able to step outside of that, like I’ve
already said, that instant pressure that you’re feeling
right now, to be able to actually step outside of that to say, okay, how am I going to build
assets in my life and you can go about it so many different ways so you can do what
Ben did, which was he focused on his career and he built his career so. And he say like a dog. So he started earning not a whole lot, how
much we in 50 grand a year. So 45 then was my first year salary in my
graduate program and then it went up to 55. Yeah. And so he started doing that, but then obviously
build his career and then took all the extra money from that to build assets on the side
through his property portfolio, which then eventually gave you the passive income that
you needed to take the risk to start your own business and to start building that asset
so you can take that path where you’re still working for money, you’re still building your
career, but the is not on earning extra for the sake of earning extra focuses, earning
extra for the sake of building assets, and that’s what I think changes you from being
a regular person to becoming a rich person. It’s just that shift in focus from money to
acquiring assets that deliver you that passive income. It’s a complete shift of mindset because as
you said, like when I was working for someone, what else? I always knew that I was going to start my
business and I wasn’t working for somebody else in those hours. I was working for myself because it’s your
time that you’re trading and trading time for money. I was trading my time for a foundation of
marketing skills, sales skills management skills in business should tag or strategy
related skills to business that would enable me to start my own business and if you start
thinking about everything that you’re doing in your life from that perspective, not, you
know, how my trading dcf for these stolen but what, you know, return in terms of the
foundation that you’re building, texture rate, something thing in the future that is such
a better way to look at it. And then, you know, Ryan and I did a video
recently on budgeting. We both hate budgeting and we talked about
that in that video. But what I do love them, I think what you’re
into now is just paying yourself a small amount verse. I think at that time in my life I was saving
150 bucks away, but I was paying myself that hundred and 50 bucks a week before everything
else came in. And you know, it all compounds and adds up
over time. You know what I mean? Yeah. And then the other strategy will. What I did was I still had a young family
at the time and so I was still working originally working in a part time job, got to in time sales role where I was doing crazy
hours, but for me, because I was so bad at budgeting at the time, whereas you saved like
a dog and then invested to build assets and that’s how you build your assets. I was cracking up but budgeting and so I would work, but then on
the side I was working to build assets so I was creating assets from scratch in the
way that I knew how and I tried so many things and failed so many times and that’s the thing
as well that you have to be comfortable with trying to become rich is that assets on a
guaranteed payoff. If you go to a job and you know that you get
paid 20 bucks an hour, 30 bucks an hour, $50 an hour, you know if you put in that hour
how much exactly you’re going to make, but when it comes to buying an asset or especially
when it comes to creating an asset from scratch, there’s never going to be a guarantee that
you’re going to get a return from that. The amount of effort that I put into projects
that have delivered zero return months of my life going on, something that just didn’t
pan out the way that I thought it would cost me money. It’s crazy. But then because I was consistently looking
at building businesses, looking at creating passive income, string value doesn’t matter
if you can go again because you only need to succeed once. To then have that passive income and so that’s
a big thing as well. So many people say, well, how can you start
a business when nine out of businesses fail within the first five years? And that’s another Robert Kiyosaki thing that
he said. He’s like, but you only need one to succeed,
and if you start a business in such a way that if it fails, you can go again. Then you just keep going until you get it right. Yeah. I think that’s. I think that’s another thing that you know,
wealthy people do that a lot of other people too and that is, you know, they take care
of activated risk and failure is not valued diaries, purely learning and pivoting from
that value point to something that he’s ultimately going to lead to that success that you’re
after, whatever that may be. Whether that is time, whether that’s health,
whether it’s relationships, whether it’s money old, hopefully it’s all of those things and
it becomes much, much easier over time to do these things. It’s just tammy can be very, very challenging
at the start when you’re sort of plucking at straws to see what’s going to work out
for ya. Yeah. I think that’s why we love the two property
to financial freedom strategy because it is focusing on building assets. These are longterm assets that are going to
deliver you cashflow, that are going to pay themselves off and put money in your pocket. I love that, and so it’s something that everyone
can do. If you’re in a job, you might not be like
me, where you just want to spend all your time creating assets and taking huge amounts
of risk. You might enjoy your job or feel more comfortable
doing what Ben did, which is saving and then acquiring assets were purchasing them, but
to be able to purchase something, know that it’s high quality, that it’s positive cashflow
that it’s going to pay itself off, and if you lose your job, if you get fired, if you
decide to throw in the towel and quit and change career paths. Those assets pay for themselves and some and
so even in the short term, you could maybe even take some of that cash flow out to keep
your lifestyle going while you find another job. But it’s not that goal with you are focusing
on acquiring assets and not focusing on investing in property for a quick buck. Just for the sake of it. You’re focusing on acquiring assets and that
doesn’t pay off in year one. It doesn’t pay off in year two or does, but
not as much and then, but over time, as you spend time acquiring those assets, then it
really starts to pay off in your life and then you shift from being paycheck to paycheck. So then being, okay, I’ve got some surplus
money. I’ve got some freedom here to make choices. Do I want to invest again? Do I want to cut back? Do I want to focus on acquiring other assets
or building assets? What do I want to do? And so the shift doesn’t happen immediately,
but slowly over time you start to getting this better cashflow position. Well, you’re not as stressed and you’re more
free to make those choices and once you know your financial life is getting injected with
little pieces of income from maybe a part time business, maybe some bonuses, maybe some
tax return, maybe your base salary, maybe a super, you know, maybe a couple of properties
that you had. All of a sudden that base grows over time. I repeat 10 year period. It exponentially starts to grow and in the
choices that you can get at that time, once you know your sole source of income isn’t
what you trade your time doing is rick and powerful, you know, and you can shoot for
the stars and keep pushing it as far as you want or you can just peel back and enjoy your
life and the choices that you have based on whatever it is that your passion is at that
time. But it is challenging at the start. It does get someone. I’ll look at all of the mistakes that I’ve
made. Just if you just look at property, not business
or not my career, like I’ve lost so much money from having the wrong strategy. I’ve bought properties in poor markets where
I’ve lost literally like 35 grand in a year when I was only making 70,000 bucks here and
didn’t. Wasn’t in a place to do it. So I work for six months for free that year. Like I’ve had more advice from accounts for
mortgage brokers that have cost me texts that have cost me opportunities that I’ve looked
for. I’ve sold properties to early companies at
the wrong time. I bought units instead of houses, bought single
income properties instead of dual income properties. Just so many little lessons over time and
all of those lessons now have resulted in a set of rules for financial freedom and if
I, if I follow those rules from a property perspective, then it’s very, very difficult
for me to make all of those mistakes that are made in the past because each time I made
that mistake, I just added it to my ultimate checklist of things to never do again. If you know what I mean, and I didn’t treat
it as like I don’t dwell on any of that stuff. I just focus on how can I use all of that
combined knowledge to make the best decision moving forward and the best decision next
time around and to get myself into a lower risk, higher cashflow position faster and
no matter what you’re earning in your job or your business. I talked to people that are earning a million
bucks a year that have 40 grand savings. I talked to people that are earning 60 grand
a year that have 190 grand savings, you know what I mean? It’s not what you earn, it’s what you do with
that dollar. And that was the biggest thing that I picked
out of Robert Kiyosaki spoken. My position now is a result of earning really
shitting come for a long time, but putting a percentage of that income away consistently. Um, there’s a really, really cool guy that
talks about this in a big way that really wrapped my head around this stuff. His name’s Jim Roan and he talks about the
seasons of life and he comes from a farming background but ended up becoming probably
the most influential business coach of all time. He was Tony Robbins boss originally and then
mentor and he talks about sowing the seeds of what you want in your feature today. That could be relationship, that could be
financial, but financially it takes time to like bear the fruit of that harvest. And I was listening to that stuff when I was
training for my marathon. And so unlikely you’re doing it in six months. I thought I needed to try and for like a year
to build up to it and let’s be honest, I’ll probably fight so. But yeah, I mean it’s just the journey, like
it was so sick. Taking all of that information during days,
like long runs on the road that it just became such a part of it like that. Delaying gratification is another thing that
wealthy people do that, you know, April they don’t have money, don’t do. It’s all about temporary short term thinking,
you know, building longer term assets and thinking about things is a 10, 15, 30 year
journey is just such a different way of looking at it for nice people. But those people that end up getting all the
choices that they want. Ultimately. You all had that same philosophy. Yup. And so that finishes today’s episode. The idea here is the rich don’t work for money, build assets and then it’s up to you how you
do that in your life. Whether you want to take the path that I took
in create assets from scratch in the full of businesses, or you want to take the park
bench where you work hard, save your money and acquire assets or property or do both. It’s really, it’s really up to you what you
want to do and I do think the two properties to financial freedom strategy fits in really
nicely with this idea that you can it work and you can do your regular job so you
have to change your life too much and be crazy like I was in high risk like I was, but then
you can work and build these assets on the side that will go on to create financial freedom
for you in the future. So if you haven’t checked out that video yet,
go to on property.com dot EU five, oh eight. To check out that strategy where we talked
through that. Or if you want to start building these assets
in your life, you want to buy these high quality properties, build a granny flat, get that
passive income, but you just want some help getting started with that strategy, or you
want some help finding those good properties than Ben and the team over at pumped on property,
a offering listeners, free strategy sessions, and so if that’s you and you want to start
acquiring these assets in your life, you’re ready to go, but you want the right strategy. You want to buy the right stuff, go to on-property
dot Condo, you ford slash session, and you can pick a time over there that suits you. We can talk about your situation, you can
say where you’re at, where you want to be, and then get the next steps for you and then
you can hire pumped on property to help you buy those properties. Or you can go out and do it yourself. It really doesn’t matter, but that sessions
completely complimentary. So again, go to on property.com, forward slash
session to check that out. Don’t forget to subscribe to the channel as
we got new videos coming out every week. Day. Amazing spot. It’s king speech, so fun to film on the beach. We hope that this has helped you in your life. Go out there, build assets, and until next
time, stay positive.

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