Good financial advice can change your life completely. Here’s the best financial advice we have ever received and the impact it had on our lives.
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0:00 – Introduction
0:25 – The best piece of advice Ryan ever received
2:38 – How greed holds up back from achieving financial freedom
4:00 – The best piece of advice Ben ever received
9:20 – Make sure you don’t just focus on your job, but focus on growing your passive income
10:34 – Honorable Mention: More great financial advice
10:59 – Timing market cycles
11:37 – You only need one business to succeed to achieve financial freedom
14:04 – How to set up your bank accounts and pay yourself first
15:51 – Ben recommends “Money Master The Game” by Tony Robins
Barefoot Investor Bank Accounts Explained – https://www.youtube.com/watch?v=YMKss1bLycw
There’s good financial advice out there and bad financial advice and in this episode we want to talk about what’s the best financial advice with ever received and how has that actually impacted our life and our finances. That’s cool man, because we didn’t say anything before we started. This is just sort of thrown in the deep end, which I love. I just hit record. I knew what we’re talking about. Straight as and say what’s yours? So my best piece of advice that I ever received actually came from a book. So I don’t know if that counts as advice. Can I, can I run with that one facial? It’s like sitting down with the author. So my best piece of advice was from Robert Kiyosaki and that was basically the concept of assets being income generating assets rather than just things that hold value and if you want to become rich, if you want to be financially free, then focus on either buying or creating income generating assets.
So what do you mean by income generating? Like what does that mean for you? So income generating asset is something that generates you passive income basically. So that could be something like a positive cashflow property or for me in my life that’s mainly looked like income generating passive online businesses or like dividends from shares or something for dividends from shares as well as another really good one, but basically the idea that rather than focusing on trying to work for money rather than focusing on trying to earn as much per hour, spending your working time, focusing on building or creating those assets or if you are working for an hourly rate, then take as much money as you can to buy those income generating assets. So that advice really hit me hard about eight or nine years ago when I just spent ages reading through all of this and that just changed the total outcome of my life.
So I continued to work full time for another three or four years after that before I start full time into my businesses. But just that idea of focusing on things that are going to generate a passive income rather than what I was looking at probably earlier than that. Which was the get rich quick schemes. How can I make money really quickly? And I think now that are not financially free anymore, I’m really coming back to that. It’s just simple strategy. Don’t get greedy, focus on just. Yeah, getting more and more passive income. And then eventually you are financially free. I love that man. Like it. Can you make it sound so simple? Like I’ve never heard anyone talk about I’ll just go make passive income like 10 years to do runs that. I have set up a couple of businesses six months ago now. I’m financially free now.
No, but I think. But I think we do. We get greedy, right? And we’re like, there’s so many different strategies to make money and so many different good strategies as well. Even in property investing, there’s so many different ways you can do it. There’s development opportunities. I go on the road with Simon and we see so many great opportunities that are kind of outside your bread and butter. Just buy property, build a granny flat, get passive income that you can see these other development opportunities, those properties where you can build like eight stories high or something like that and say, well, this could be great in 20 years. You know, any kind of get into that cycle of looking for those sorts of things, but I often find when you’re in that cycle of looking for the get rich quick stuff or looking for the quick box, you lose focus of your goal which is financial freedom and then often you don’t take the action you need to take or it’s just daily consistent action to build your passive income.
Whether that be through investing in property, through building businesses, through investing, in dividend paying chairs, whatever it may be. We just keep going with that. Eventually you get there. Yeah, I absolutely love that. Like I think that consistent, disciplined and consistent daily or weekly activity over a longer term period of time is what completely transformed your life and you know, like destiny I suppose is just consistent work. Like whatever you’re focusing on becomes your future. And I think it’s just, it’s so easy, but it’s so hard not to as well. Yeah. So what about you? I love Robert as well. Obviously talks about that off camera before. But I actually caught up with this dude. I used to have that goal is, you know, catching up with 3 million hours a week. I did that for five years. And just so you had that goal. So I had this goal from the time I was 21 until I was 26 and every single week I couldn’t finish the week before I’d made three appointments with people.
How would you find these people? Well, the last question, I always ask grinder, tinder, tinder, seriously, that how would you find these people? So I knew a bunch of people and then the question that I learned to ask at the end of every meeting was, um, is there someone else that you could recommend that I could have a chat with? Like what’s her name, what’s that number? Enter just be the same as this. And I would always have like a handful of people because wealthy people hang out with other wealthy people, business owners know other business people and it was just, I was just sort of these like little slot working my way around and talking to everyone that I possibly could that would spend anytime with me buy them lunch, buy them a coffee, which was pretty much all of my discretionary income because at the time I was at uni and not making money.
That’s so good that you would buy them lunch though. Someone took me out once and wanting to learn internet marketing and how to create passive income online and they’re like, I want to meet up for lunch. I was like, okay, let’s meet up for lunch. Met Up for lunch, didn’t shout me lunch, and then he shot me a copy. Didn’t even eat lunch. It was the most awkward thing ever because I needed to eat because it was lunchtime. I’m like, sweet, we’re going out for lunch. So buy my own lunch. I’m eating lunch by myself while he’s sitting there. Like, I can do that with like obviously a lot of people reach out to both of us to catch up. You’re just flat out now? Most of the time. No, I hang out with people like want to hang out. I’m like, for sure. Oh, Data Jonathan and brought came up.
Yeah. Hanging out with Jonathan and Brooke, a legends. So anyway. Um, I’m sorry I’m getting distracted. Sorry. She’ll be. So you a. So you hanging out with three people a week? Yeah, one of those people that are hanging out with this is in the last job that I had before because I continued on with that for a long, long time just to sort of find the pattern in what makes people financially free and successful. And I caught up with this older dude, Mickey. He was 67 years of age. Um, and he said, Ben, like building wealth is going to take longer than you expect it to. And that was a big lesson, but he said, I’ve talked about this with you before. He talked about a bicycle wheel and wealth generation thing like that, or passive income. And in the middle is the code and then the circle around it is the tire and you’ve got little spokes and so every time you’ve got a different piece of passive income from a business or a second job or a job or a property or a share or whatever it is, you crypto each of those folks.
And in the center is whatever your main income sources. So for most of us it’s a job or a business in reality. Um, but he’s like over time your job is to allow the businesses that you have or the job that you have to become just one of the spokes. And in the middle is your share portfolio or your property portfolio or your passive businesses that you know, generate the bulk of your own companies. Like the more spokes that you have coming into the center, the better off you’ll be longterm because it’s diversifying your risk. And I was like, fuck, that is a really backwards way of thinking about it. But super simple, like, I’ve got things in my life the same as you. One of them might give me 10 grand a year of income and other one of them might give me one another, one got Mike, give me 500 k or something.
It’s like over time it really adds up together and it all becomes your wealth position and that’s okay and that’s something I should have focused on more like I had a couple of folks coming in from online businesses, different ones, some are bigger than the others, but when a big one, when the income drops off from that one, you notice it. Yeah, you notice it. So I have little spokes with other sources of income which are great to keep me afloat, but I think yeah, focusing on building more is definitely something I’m looking at moving forward and then also diversifying into property and into shares and things like that. And the really good thing about that idea of the spokes is that as you build more, you’ve got more income coming in, you’ve got excessive income, which I feel like is makes building well. It’s so much easier when you have excessive income that you can reinvest into building more passive income.
So interesting that you say that because there’s two things that just came to mind. One is spokes attached to the center and go out and they attached to the outside and come back to the center. So it’s a two way conversation. If you’ve got surplus in the Santa UBC, reinvest that money out, which in turn brings more money in. But the very first thing he said that every single person should focus on doing if a job or a business is at the center of the wheel where you know the reality is for most of us, 90 percent of our income comes from there. He’s like the only thing that you should be focusing on is getting enough spokes to replace that center. And then as soon as the center is replaced, focusing back on the business or whatever that, you know, taking that to the next level if you want to go to the next level, sort of focusing on getting financial freedom, that baseline financial freedom that we’ve talked about.
And then once you’ve got that and you’ve got that security and stability than focusing on increasing your main source of income. Exactly. And that’s an interesting one because I just started to interrupt, but wanted to touch on that. A lot of people that start a business or have a high paying job, just focus on that thing in the center. And I talked to so many people in corporate life. One of our clients at the moment works in delight. He’s like a very senior consultant there and everyone around team that’s between 30 and 50 years of age according to him is just chasing the dream of uneven nice suits. I need the nice car and need to be living the lavish lifestyle holidays or the all the shit. But none of them are focusing on those little spokes that if they start thinking about the now in 15 years, time will make them free.
Now here’s 26 years of age. He has absolutely smashed it. Like he’s moved through the corporate hierarchy real quick because he’s a smart dude and he is focusing on, you know, replacing his income. Like he wants to work for the next 30 years because he’s passionate about it. But he is just all about replacing his income so that he’s got choices and that’s uncommon, like the busier you get with family with jobs, the more money you make in a job or a business, the less you focus on investing, but that’s where you and I never take our eye off stuff like you’ve always got your little things on the side. So to wire to just continue to build that pool for the future. And I want to finish this last section, but any honorable mention. So we talked about our favorite piece of advice or the most impactful piece of advice.
If there’s any other little piece of advices that was also valuable, but maybe not the most important. I want to take this time to talk about them now. I had one in my mind, but I’ve just figured, yeah. Um, I’ve talked about this before, but I love Fred Harrison’s work and fill innocence work. They’re both economists. Fred wrote that book, the secret life of real estate and banking. Fred wrote boom and bust and the power and the land. Both of these guys have accurately predicted the last couple of recessions over the last 40 years, very, very clearly and I just think understanding timing has completely changed my life as a businessperson and as an investor and made achieving financial freedom so much easier for me in the future because I understand when to buy and when to sell. My one that I now remembered was again comes from Robert Kiyosaki, but it was this idea because obviously building businesses is risky.
You know, whatever it is. 90 five percent of businesses go out of business within the first 10 years and so people look at building businesses and see that it’s risky and so they don’t do it, but it’s something that he said which really impacted me was if nine out of 10 businesses fail, then start 10 businesses is like, you only need one to succeed. And I thought that was really interesting because you’re like, well, 90 percent chance of failure is that worth it? But the fact is you only need one to succeed and to create businesses in such a way that if you fail, you can go again. And that really impacted me and the way that I created businesses moving forward was only, yeah, you only need one to say. So I’ve started so many websites and so many different side businesses that completely tanked that I wasted time on that didn’t do anything.
And so I wasted time on that. I wasted money on those things, but I was able to go again. And then the next one that I started with that probably failed to, but then the third one, you know, then that made some money and so being able to fail consistently, but do it in such a way that you can continue to go again, you really only do need that one to succeed to create a good amount of money and then you grow that business that can then set you up for financial freedom. Well, I think you’ve it this way, right? Like let’s say the average asset income in Australia, $100,000, some people below that, some are well above that. If you start a business, it makes $2,000,000 a year in net profit. Effectively, you’ve created income in one year, which is for the average family, 20 years worth of work, and so this is why businesses can make that sound so easy just to mail a year in profit, easy peasy on a zebra like it’s not easy.
It takes a huge amount of sacrifice to do that and a lot of the right skill sets, but I’m saying that you know, your concept around 10 businesses, nine fail. Well, if it takes you 10 years to find that winner yet you’ve still saved yourself 10 years from the average person. Yeah. You know what I mean? Like, yeah. Yeah. I get what you’re saying that even if you fail for nine years, have you succeeded in the 10th and then your businessmen successively more than what a job would have made, you’re going to end up ahead in class. She’ll have more fun doing it. Yeah. I love business. It’s not for everyone, but obviously for me that had a huge impact for me. Another honorable mention for finances was just the barefoot investor and the way to set up bank accounts. Basically the advice there was just make everything automatic and make saving automatic, so income would come in.
Then income would automatically go out, so rank would get paid, but savings and debt reduction will be automatic, so money would automatically go to pay off the credit card. Money would automatically go to save for bills and then money would automatically go for investing as well. So just making it automatic. And I did that within my bank. Accounts were set up on automatic payment that would happen every week on a certain day. Money would get moved into these accounts and so I just didn’t have to think about it in every week I was paying myself first without even having to consciously think about it and that was huge and allowed us to really take control of our finances in a way that we never had before. And that’s, you know, really paying dividends at the moment when things are a bit tighter for me right now.
But having had that habit, still having that habit and having had that money up as slaves in that savings has just been so key or that starts whether you’re earning $100 a week or a hundred grand away like that is just that a habit in one of my favorite business slash motivational speakers of all time is Jim Roan and American guy and he talked about that. And so I brainwashed myself from 23 when I started listening to him about paying myself first. And I just always do it. Like that is the first thing I do. And then I try and figure out all my expenses after that. And even if you can only pay yourself a small amount first, like $10 a week or something like that, I literally started with 30 bucks a week. It’s still worth doing and worth getting into that habit. And then as you earn more, because it’s already automatic as you own more than you can up that amount to it was a week or whatever it may be.
But you know, that habit is so key. Um, there’s another one I just wanted to mention quickly and that is tiny robbins money book where he went in and interviewed more billionaires in hedge fund managers than any person’s ever intervened in history. I think $50 million is to put all of the things that those guys have learnt about money into one book for the average person. It’s kind of like the global version of the barefoot investor stuff, you know, that’s very much Australian scented, but it looks like it’s blowing up overseas now, which is silly. But the reality is like Chinese book, money master the game is the big version. He wrote a smaller version for people like me that don’t want to read the full thing called unshakable. Um, and what he did is he really reviewed the stock market because there’s a property in a business guy.
I haven’t gone down that path yet, but I will. And he just looked at the average performance of funds, the average performance of the best people versus the average performance of the index fund in. And what I realized is we have a 10 percent drop in the stock market or based on his history analysis every year for the last 70, about once every seven years, we have a 30 percent drop maybe, and about once every three odd years we have a pretty significant event to. And it made me just realize that ups and downs in property and shares in businesses just completely natural. It took me about two to three years to really feel comfortable with that. Um, you know, sort of being forced the feel comfortable with it, but you know, it’s kind of Nice to know that history has a funny way of repeating itself and at least understanding it enables you to plan for the future better.
Yep. So there you guys have some of the best financial advice that we’ve received and the way that it’s impacted the allies a hope that this can help you in your life and with your finances as well. Financial Freedom is not going to happen automatically. It’s not going to happen unless you consciously try to achieve it and take steps every single day to achieve it. So yeah, I think we’ll close that one off while you’re here. Go and check out one of the other videos that we did. Um, I’ll just link them up over there or look down below and until next time guys, stay positive.