You can achieve financial freedom in the future, while living the life you want now. This is property investing as an insurance policy.
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0:00 – You don’t need financial freedom to live the life that you want
0:37 – How this concept impacted Ben’s life and investment portfolio
2:24 – The advice “you need financial freedom to live the life you want” is wrong
3:59 – What you need for this concept to work
7:01 – How am I going to pay a property outright is 15 years?
9:57 – This insurance policy means you don’t have to live on the pension
11:43 – Take the pressure off needing to achieve financial freedom as quickly as possible
13:19 – You don’t need to obsess about annual capital growth
18:12 – Tess’ Story
20:41 – Buwin’s Story
24:00 – Hayden’s Story
28:43 – What to do if this idea resonates with you
Simple vs Complex Property Investment Strategies –
The Life You Want…Without Financial Freedom (With Simon Everingham) – https://www.youtube.com/watch?v=Oz4Q4Q4n21k
Everyone out that talks about investing in property as a way to achieve financial freedom so that you can quit the job that you hate and you can go and live the life that you love, but something that’s come up for me and Ben and a lot of our audience and clients is this new idea that rather than needing financial freedom to live the y life that you want, that property can be an insurance policy if things go wrong, but you can live the life that you want anyway. So we’re going to delve more into that concept today, which is really exciting and I think is going to help a lot of people. So. Hey Ben, how’s it going?
Hey Man, I’m excited about this one. This is going to be sick.
Yeah, and so this is something that actually came out. It’s probably over a year ago now that this concept first started bubbling out when me and you were having a conversation on the phone. You called me and you had some really complex idea of how you’re going to alter your entire property portfolio for some reason. And basically we went through it and we looked at the numbers and we’re like, okay, do you love your job and love your business right now? And you’re like, yeah. I’m like, okay, do you need the money from these properties right now? And you’re like, no. And then I’m like, if you just left your property portfolio, because I think it was positive cashflow, if you just left it and it paid itself off over time, would it give you the income that you want for financial security? And you’re like, Yep. I’m like, okay. So property is effectively an insurance policy for you that is going to go on in the next, I think it was seven years when we talked about it to get to the income level that you want, you don’t need that money right now. Why you stressing and reworking everything. And I think I’m pretty sure that changed what you ended up doing.
It changed it in a huge way. Um, you know, for whatever reason, at that time I was having a minor meltdown like I probably do to you about once every six months, just sort of a lot to re assess and look at all of the areas of my life and as I learn new information, I’d like to pivot as well. I don’t know why I’ll second sand at that time about the number of properties that I owned or the strategy that I had. But I’m so grateful we had that conversation because it’s completely changed my concept from our properties from transactional making money, short term to, okay, worst case scenario, I’m going to be swayed in the future as a result of this activity today.
Yup. And so I think all of the teaching for about property investing up until this point probably ourselves included, um, with the exception of maybe the last six months of last year where we’re talking about the two properties to financial freedom strategy. Um, all of the content is around you invest in property, you achieve financial freedom, and then you go and live the life that you want. And so we want to flip that on its head because both of us are currently living the lives that we want, um, but we don’t need the financial freedom from properties in order to do it, but we to have that financial security that properties provide. So if our businesses were to go backwards, um, you know, if something was to happen and we weren’t able to earn the income that we need to earn, well then we’ve got the properties there that can pay for our lifestyle and that can pay for our future.
That’s a really interesting concept because it takes a huge amount of pressure off, you know, ramming the property strategy to the point way, you know, you burn out from it or it’s just, you’re really forcing around peg into a square hole or whatever they say. We know, you know, on the flip side of that, it takes a lot of pressure off your longterm self knowing that you can enjoy today. But you can work towards exactly where you want to be as well. And in fact, you don’t have to work towards it. You already are. Which for me was like, I’m already going to be exactly where I want to be. Everything I do between now and then just upside.
Yeah. And so I think for this concept to work is getting to the point where your property portfolio is kind of its own island compared to your life and the job and the income that you’re earning. So that’s getting your property portfolio into a cashflow positive or cashflow neutral situation because if you’re investing in negatively geared properties then you need a high paying job in order to support those properties to get the high chance of capital growth. If you’re investing in properties that are neutral or positively geared, that naturally just paying themselves off over time, any way they can kind of be their own little site entities and can, you know, pay themselves off and you can accelerate paying them off, etc. But they don’t really impact your life. They’re just there. You purchased the property. So you take a period of mayBe one to five years to work hard into purchase the properties that form your foundation. And then those properties pay themselves off over time. So at the end of a 15 year or 20 or 25 year period that paid themselves off and made you financially free. So I think that’s like the core requirement in order to have this insurance policy property portfolio is that they are paying for themselves. They don’t need you and an influx of cash from your job in order to support them. Would you agree with that or would you disagree?
I completely agree with you because if the is costing you something, it’s keeping you indebted in a job that you may not may or may not like. And you know the conversation here is in just that 15 years from now you’re in, sharon’s policy’s going to pay out. The asterisks to that is way both want you to enjoy the journey and make better decisions all the way through to speed it up or to live the life that you want now. And I think it’s completely spot on what you said.
Yeah. And I think having it where it pays for itself and it’s its own entity separate to your life, that then gives you the freedom to know that, okay, long term this is going to deliver me financial freedom even though it’s not right now because I’m paying off the loans, but long term this will provide enough cashflow for baseline financial freedom. That then gives you the freedom to look at your existing life and to say, okay, I still got bills to pay their electricity bills still coming in. I’ve still gotta pay for groceries, all of this sort of stuff. If you’ve got kids, you got to pay for schooling and kids are expensive, but you can then look at that and say, okay, I know my financial future is secure. I know I’ve got these investments that they’re my insurance policy there, my financial future, but right now what can I do to live a great life and work at something that I’m passionate about that may not provide me with excessive wealth, but my property portfolio is taking care of that longterm. But what can I do to really enjoy my life right now? What’s a job that I’m going to be passionate about or a business that are run that will still pay the bills for my life and so you can focus on earning enough to live your life while you’ve got that financial freedom tucked away off to the side.
One of the things that I shocked about because I’ve put mYself in, if I was watching this video five years ago, my question would be how am I going to pay off the property outright in 15 years like isn’t a standard line 30 years. And I remember you sent me the spreadsheet when you first started this concept of you know, houses plus dual income properties and this financial freedom conversation we’ve had and you said that if I was to pay off principle and interest on my property and then use the increases of rent over the next 15 years to keep re paying debt and to use the tax return or the tax benefit from holding that property over that 15 years to pay off debt plus just contribute 100 bucks extra on top of that per week out of my own pocket. BaSed on the numbers that you did all would go pretty close to being able to pay off that property outright.
And what I heard is cool. All of that stuff is, you know, just rent from someone else, a tax return benefit from the government principle and interest is pretty much what most people are going to do on properties these days. And they’re being heavily incentivized by banks anyway. I just heard, well, if I just am diligent 100 bucks a week, which I can afford, um, you know, I could be where I want to be and I love that concept man, because as you said, it allows you to enjoy your life all the way through the journey as well.
Yeah. And so that’s the whole idea of being in a cashflow neutral or cashflow positive situation is that, you know, the property is almost in effect. It’s our own island and its own entity and it completely pays for itself. And then the idea there is if you have invested in a high quality area that’s got that longterm demand there, that means overtime rents are going to go up on that property. And so as the rents go up, because it’s a self contained entity, that extra money is just going back into your offset account or going back into paying off your loan faster and speeding up the process and obviously as you put more money in the offset account or as you pay off your loan, then you’ve got less interest that you have to pay each week or each month, which then means you’ve got a bit of extra money going to pay off the loan as well.
So it kinda like speeds up the process as you use that extra cash from rental increases or maybe you decide to accelerate it and do a renovation on the property to increase the rent. Or you go ahead and you build the granny flat to get that extra rental yield. Then you use that extra rental yield to pay off the loan. And so it’s, yeah, that idea of keeping it so it pays for itself. And then if you have extra money in your life and in your job and in your business, then you can take that extra money and paid off faster if you want. But you don’t necessarily have to like that’s up to you, you could take that extra money and put it into your lifestyle or you could take extra money invested into stocks. You could take the extra money and do whatever you want with it. But if you can put it on the line, then obviously it’s going to speed up the payment period.
I think a lot of investors, if we’re honest with each other, live in constant fear, whether it’s fear of the market crashing, whether it’s fear or property prices going down, whether it’s fear of what the media saying all, it’s the fear of changing everything you ever wanted to achieve. All, you know, having a passive income for life and having to make true choices or not getting there fast. So like there’s all of these things that we feel as invested. I love this concept of the insurance policy because it enables me to not live on the pension, which I’m shit scared out. And I think anybody that’s not scared about that, you know, obviously you didn’t have a grandma or grandpa that ended up there. I don’t think so. There’s gonna be enough for the average person with the effect of inflation over time and I don’t think the average return in the average superfund is really strong enough to justify the money that people dumping their most of the time.
And so if soup is not going to be enough and the pension is not going to be enough, then you know there’s going to be a generation of people that have to take their financial future into their own hands. And if we can create a simple strategy that enables that safety net and so instead of getting to retirement age and having 30 grand a year, 40 grand a year from pension and super, you can get there with 30 grand, 40 grand a year from super plus 100 grand from your properties. Then it enables us to be a lot more comfortable at a time when we need that cash flow and to make much, much better choices. Far earlier in life. And I, I love that man. It takes a lot of the pressure and the fee that I think every person has, which is how am I going to look after myself in the future? It also enables us to leave a legacy for the people like you and I that have children that want to create something that we probably weren’t brought up with as well.
Yeah, and I think aS well, it takes the pressure off your property investing as well because if you’re trying to achieve financial freedom as quickly as possible, then are going to look at more complex strategies and we just did a video on simpler simple versus complex strategies where we talk more about that and I’ll link that up in the description down below, but when you’re doing more complex strategies, often you’re taking on more risk unless you’re really skilled in a certain area and so that can actually set you backwards rather than move you forwards. But taking the pressure off from needing to achieve financial freedom as quickly as possible because you know what will happen over time. You can start living the life that you want now without financial freedom, I think allows people to invest more smartly allows people to invest less greedily, less high risk that they can make better investment decisions that are going to be better for them long term.
At least that’s what I hope that this idea of property investing as an insurance policy will kind of lead people down that path where they’re making wise investment decisions for their longterm financial future as well as then being freed up mentally knowing that they’ve got that in the bank or knowing that they’ve got that. Working towards that then frees them up to explore their life and to say, okay, well who am I? What do I want to be? What do I want to do? What can I contribute to the world? What am I special passions or special skills that I can really add value to people’s lives rather than just working in a job that they don’t enjoy and maybe don’t feel like they’re contributing to society in the way that they want to.
I love that man. Like the biggest thing for me when you sort of enabled the penny dropped for me in my life was I used to just obsess about my annual capital growth. I used to look at my quarterly results, my six months results, my 12 months results. I’d look at the value of the property at the start of the versus the end of the year and I’d be constantly looking at these paper wealth as my measuring stick of, you know, where I’m heading in, am I heading in the right direction? I haven’t looked at the performance of any of my properties in the last year and I just don’t care what happens year to year anymore because I’m now applying these 15 to 48 game that you’ve taught me to play. It takeS all of the pressure off the annual results when people are gettIng spooked by certain things instead of running away from those things.
Because my measuring stick is how much money can I make in the next 12 to 24 months? I’m going, how much? How, how much of the bottom of the market or the right timing can I buy in to take advantage of conditions over a 30 year period and instead of measuring, okay, I’ve achieved this much growth on looking at how can I increase the rent return, how much debt did I reduce this week and how much closer is that enabling me to be to my actual medium term goal of the financial freedom I’m looking for. It’s just it’s crazy to be an investor and not looking at capital growth, but the reality is this is what that pressure is now off me because I know I’m buying good quality assets that will achieve that. I’m just not measuring it in a traditional way because the equity really means nothing to me. It’s the cashflow. I’m often now.
Yeah, well the equity would mean something to you if you wanted to leverage against that to invest again and so you would look at your capital growth at that point and I’m sure you’ve got tabs on the market so you know, you’re like, you’re not going backwards anyway. Of course,
slightly. I’m always keeping a finger on the farm, but yeah,
not as obsessive about it and looking at those dollar figures because at the end of the day your end goal is to like have those properties paid off and so you can really focus on, as you said, like reducing your debt, increasing your rental income because that’s moving you towards the end goal. The paper wealth of the capital growth isn’t something that you need to obsess over, but I’m guessing it is something that you would check in because you might want to, you know, move money from a poor performing asset and sell that and then buy a better performing property. So it’s not that you never look at it is that it’s not your obsession or it’s not required for your end goal. It’s kind of like it’s, it’s, it’s a perk and something that can accelerate your performance and your financial freedom rather than something that’s required to achieve it.
That’s the truth. Like I’m just looking at, you know, constantly looking at allocation of funds against that particular return on investment and as I learn more, that’s why in the last couple of years up sold four of my properties might sell another one in the next 12 months to just re allocate that capital to a better yield to a better property with potential for upside and a better property in terms of following what I know is now going to lead to better longer term capital growth. And I’m looking at mark is being, you know, percentages of one or two percent yield here in one or two percent per year in terms of longterm capital growth performance as opposed to cool, I own five properties and my net worth on papers 2 million bucks and who gives a shit? I’m still having to work a job every day. I haTe.
Exactly. And so we’ll talk more about this concept over the year so we hope you guys will subscribe and stay with us because we really think that this is a really important concept. We’ll get better at talking about it over the course of the year as well because this is so live transformational. I’ve done a video with simon, which I’m going to link up as well, where we talk about how this is already changing the lives of people and clients are pumped on property who are buying those foundational properties and then their life is expanding and they’re looking at different job opportunities or they’re moving up to the sunshine coast or they’re relocating or they’re doing a whole bunch of different cool staff that their mind has now been open to that because of this idea of property as an insurance policy, buying those foundational properties, building those granny flats that will go on to achieve financial freedom and then living a life now rather than waiting 15 years when you’re financially free to do a job that you enjoy.
Because let’s face it, most people aren’t going to want to fully retire and do nothing like your brain will probably waste away from boredom. Um, you know, we want to pursue things that we’re passionate about and contribute. So I think for most people this is really going to resonate and going to be really impactful and powerful idea for them in their lives where they can achieve financial freedom, they can live a much better life than they were living out at the same time without needing that financial freedom yet, but they’ve got it as an insurance policy. So I’m really excited about that.
I love that. Do we have a moment for me to share like three really quick stories of people who have sort of implemented this? Yeah, dude, I love the stories. We lived for the stories. The first story is um, a lady code tests, um, I call it the swedish mama. Like she’s a swedish bird that merit an absolute legend destroying glass surfer from the gold eagle kodaly and they’ve got two beautiful children. I live in a beautiful home in burley. I’m on the gold coast near the beach now. That’s where they’re at. When they came to us and she basically had that one property, she connected the dots. That property was getting her out. She’s since gone on and bought two properties. She’ll add granny flats to one of those properties and she’s just engaged as to go by a third, which aladdin granny flat to that third property now and effectively made.
she’s got her own home. She’s got a really high quality property that’s getting grow from a capital perspective close to the city. And then she’s got these two houses with granny flats longer term, which will give her income. She plans on that Work hard and pay off their home themselves that will sell that property closer to the city to ultimately in 15 years’ time, 10 years’ time, pay off the two houses in granny flats. Now, when I came to test, she was lost. She just come back from a trip from overseas where she’d effectively had a breakdown, which I’ve experienced, you’ve experienced, which is I want to connect the dots between who I truly am and how I want to live. And the reality of being in a capitalistic world where we have to work and make money to survive. Um, so she’s now got this clear plan, which he knows exactly what she needs to do to execute on it.
And she actually quit her job and his dad driving business because she’s now locked in this portfolio of properties that are going to do what she needs to do. Her partner leads doing work that he enjoys, so he’s going to stay there as the primary income earner to make things happen. And then she gets to explore what’s important to her now. And it’s so inspiring, man. Like I’ve done videos with are on my website and stuff. She’s just like these powerhouse. It’s like exploding with ideas and energy because unlike most people and most of us who are walking through without a strategy and a plan, shana is exactly where she is. She knows where she wants to be and she knows what her next steps are and that just makes her life a lot easier to cope with the day to day because it’s connected to the bigger picture.
Now though. One’s another dude. He’s been living the flying flower loft style for 12 years now. He’s on the. He’s in Bahrain bay, which is where he grew up. He’s had enough of fly in, fly out where he’s certainly not like the normal cultural fit. Like he does yoga every morning watching the sunrise listens to podcasts and couple of years ago he started to get involved in property. I think he was listening to us and he is now bought two houses. He’s a builder so he’s going to renovate them and he’s going to add the granny flats and after 12 years of fly in, fly out, he’s now locked in his financial future and for the first time in 12 years he can comfortably move back to byron half he’s wage and not stress about it because he knows exactly what’s coming next
and so that’s a great way of someone using a high income in a job that they don’t really prefer in order to get the loans in order to save the deposit in order to purchase the properties. He like did a time period where he took that high income, took advantage of it to securitas foundational properties and now that he’s got them, now he can take the foot off the gas and you know, live locally and work locally. And take that pay cut, but he’s taken that time. Yeah.
What I love about bu and he’s for the first 10 years he was earning good money, but he didn’t have a strategy for that money or a clear way of getting to what he wanted. So he had a good time. He earned or that money. He traveled a lot. But when the dock was connected because of his income being good, it took him two years to save the deposits for those two properties, which is a long time to be away from his family and friends. But he knew what he needed to do. He got on with doing it. And now after only two years, you know, I think about my journey, your journey man, like how much time he spent doing things that we probably didn’t need to do because we didn’t know what the next step look like and what’s the plan?
Let’s Imagine that, right? Working hard for two years to buy those foundational properties, to buy that insurance policy and then knowing that that’s going to deliver you financial freedom. So you spend two years, you buy to have the right properties in the right areas, you know, you build those two granny flats, so you spent two, maybe three years of your life doing that and then that’s your insurance policy for life. And then it’s like, well now go on. Like it only took two or three years. Sure you’re not financially free right now. You still got to work in a job, but it only took a couple of years to achieve something that will go on to pay itself off and we’ll go on to deliver financial freedom and that only took like active work for such a short period of time.
What I love about bill and his journey is he ha. He didn’t like going to work. He was working for like a really narcissistic and get historical boss and he decided that I’m going to do these and then showing up for work is now a pleasure because every single day he’s being income was increasing. His savings was increasing, which was getting put into property, which now meant that he could get off that site sooner and anyone can do something for two out of 80 years, you know, you’re going to be doing it for the next two years anyway. Why not have five years? Why not have something to show for it at the end of it? The last one I quickly wanted to share is an absolute legend. Twenty three year old guy and his, um, his partner haden who’s 23 now they’re living in like the rough end of south Australia, like they’re living in a poor town.
Pretty tough because hey, thanks a lot, like a lot of you listening to this and he feels really, really isolated down there because he can have these conversations with them. Many of the people in his day to day life, but he’s 23. He’s just bought his first property again after listening to stuff online and educating himself over a few years and grinding hard because his income isn’t high. Obviously as a 23 year old, god is getting started, bought his first property, has it go to buy a second property. He just literally working his ass off like 70 hours a week at the moment to get a second property. He aligned that by sometime between april and journeys is strategy and then he’s like, I’m moving the hell out of south Australia in that particular town to the sunshine coast. He’s like, at that point, I’ve already set up my financial freedom.
He’s gonna. Take his relationship to the next step. They’re going to have kids up here. They’re going to transition into industries that they love and jobs that they love. Knowing that 15, 20 years time, you know, what would they be? Forty eight years of age. They’ll be financially free without even stressing on it and now I’ve got to live the last 15 years. Exactly how they wanted to. Like this stuff just gets me so inspired and it gives me goosebumps. Just that is the cool thing. When the penny drops for all of us like it has for you and me and them. It’s just so exciting. How quickly you can change stuff and how knowing where you’re going can completely change the way that you show up in your day to day life because there’s finally purpose and meaning.
Absolutely. Yeah, and that’s so exciting. Like even thinking achieving financial freedom at 48 or 50, that’s still, that’s still 20 years ahead of most people around like 67, 68 years of age and then also getting that 15 years of time where you can work in a job that you enjoy and sure there’s money stresses that come with that. There’s life stresses thAt come with that, but that’s so much less when you’re working on something you’re passionate about and you enjoy and it brings you fulfillment and you can have the time to raise your family and do that the way that you want because you know your kids are only kids for so long. You want to spend that time with them and working a job where you can, so to get that 15 years but also achieve financial freedom earlier is just super exciting to hear.
None of these people are earning any more than any average person life, you know though, and works hard when I’m talking. Fly in, fly out. Most people go, you’re running big cash. I go, you’re just working two full time jobs on normal wages. Like most fly in, fly out to 60 to 80 hours a week or they’re three out of every four weeks and they’re just working two full time jobs. So when you work two full time jobs, you get compensated, right?
For sure. They did a crazy hours when they’re over there.
Shed 12 hour days. Six, seven days a week. Yeah,
no breaks. Yeah.
It’s how it is. And so what I love is like the more people I talked to you that are doing it, that is starting off like you an idea from completely modest means without good incomes, without savings, without families that are handed out money to make it happen. The more I go evening myself, like I can do this, I can achieve what I want to achieve. And it’s inspiring and it’s infectious. Like once the idea is in your mind that you want to do it and there’s all those fears and challenges we worked through and then we connect the dot with strategy and what your next step looks like and you just obsess about one step at a time. It takes something super overwhelming, which iS why 80 percent of people end up broke to something that is just a series of steps, but it takes a lot longer than we expect and I love it, man. That’s why I’m so excited about the stuff we’re talking about this year and you know, how we’ve moved into this next dimension of sort of, you know, talking about the whole picture rather than the pacific part.
Yeah, and I think there obviously is that trade off that you’re not going to achieve financial freedom as quickly as higher risk strategies, but I think the payoff is worth standing up on the pension. Yeah. I think the pilot is worth it in how simple the strategy is in the low risk nature of it, in the fact that the property pay for themselves and then you had that freedom to go and to pursue the career that you want to pursue. I think the payoff is well worth it and I think a lot of people listening will really resonate with this, so look forward to talking more about this. If this, if this is something that you are interested in. If you’re like, yup, this really resonates with me. I want to pursue purchasing these foundational properties. Maybe building granny flats as well, but I just need some help getting started than ben and simon and the team over at pumped on property are offering free strategy session. So if you go to on-property dot com dot a u, you can book a strategy session over there. Pick a Time in the calendar that
suits you. Get on the phone with them and really work out what are your next steps going to be in order to get these foundational properties. To have this insurance insurance policy in place so that you can achieve financial freedom in the future and live the life that you want now. So again, go to on property.com.eu in order to check that out and until next time, stay positive.