You don’t need to work in a job you hate until you are financially free. By speeding up your property acquisition phase you can quit that job you hate sooner.
For those of you who want the jist of it without watching the video or listening to the podcast here’s the basic outline.
- Property investing in broken into 3 distinct phases – Acquisition, Consolidation, Lifestyle
- You need a good income in order to get loans and acquire property
- Once you acquire property and set yourself up for financial freedom you can quit the job you hate and pursue another career while you wait for your properties to grow in value.
- Because your portfolio is set up that it will naturally provide you with financial freedom in the future, you don’t have to stress about that anymore but can start living a better life knowing your financial future is secure.
In a previous episode with Ben Everingham, we talked about four properties to financial freedom and this idea came out of that episode that you can spend a couple of years in the job that you hate to acquire the properties you need for financial freedom, but then you don’t need that job that you hate anymore and you can go on and do something else. So I got Ben and back on today so we can flesh out this idea of how to quit the job that you hate sooner. So. Hey Ben. Thanks for coming on today. Hey Ryan. Thanks for having me. No worries. So me and ben both work in jobs that we love, so I’ll just put that disclaimer out there. We have been in jobs that were just like before, like currently we enjoy our jobs. So maybe you’ll need to say this with a grain of salt as we’re not currently in that position.
But yeah, we just had this idea that kind of came out in the episode will we’re recording on four properties to financial freedom and that was the idea that there’s this acquisition phase when you’re investing in property where you’re investing and you’re building up your portfolio so you’re actively going out there and purchasing properties and as we know in order to purchase properties, we need an income so that the banks will lend us money because if we don’t have a job and we don’t have any income than the banks like Nah, I’m not going to lend you anything and then you can’t buy any property. So a lot of people feel trapped because they want the financial freedom property delivers, but then they need their job in order to buy those properties. But there is this idea that if you speed up that acquisition phase or you just get it done in a couple of years, once you’ve got those properties, you don’t necessarily need that job anymore.
One hundred percent. Like, I love that concept and it’s something that I wish I thought of when I was in my accumulation phase because I thought I just had to keep grinding it away for the next 15 years until I achieved financial independence. But you know, had I bumped into you earlier or seeing a video like this, I would have gone, well, you know, yes you need income during the accumulation phase, but the accumulation phase, depending on your position can be quite quick and it’s only, you know, I found when I had a job that I hated that if I was buying a couple of properties in a 12 month or two year period, it made going to work meaningful because it had a very specific reason for that money and it made sort of showing up easier because I was being pulled through it as opposed to pushing crap uphill for the next 15 years type thing.
Yeah. So you had that financial goal that you’re striving for, which is to purchase the next property so it’s okay to turn up to work because you know that doing work that day means x amount of money in your bank account, which makes you that much closer
that’s buying a property without a doubt. Like you know, you can always be pulled in the right direction of something, but it’s really, really difficult if you’re doing your job that you hate with the outer plane at the same time and you can’t see any way out of it, you know, that’s the worst position I’ve been in in my life and that’s why I got into investing and I’m sure that’s the same reason why that you found a way out as well. Thinking how can I actually get out of something I dislike as opposed to find something that I really did, if you know what I mean?
Yeah. Well that’s the thing. It’s so hard to find something that you do. Like it’s so easy to be stuck in something that you don’t like and so hard to find out how to make a decent income from what you enjoy as well. And a lot of the things I enjoy don’t make me any money. So it’s like, it’s very hard to get to that point where you can do something you enjoy and also make money from it.
I was watching these cool little video from Matthew mcconahey, um, we’d like, you know, we kind of here you wouldn’t think would be the person that you’d be getting, like life coaching advice from. But he’s got this epic video on Youtube which is like 14 lessons and he’s talking to a, a school that he went to like a university. And in this video he talks about one of these lessons being, you know, figuring out what you don’t like and what you do like will begin to appear. And as someone that’s had literally over 40 to 50 jobs since I was 13 years of age, I’ve found out from all of those experiences the things that I dislike and it’s pulled me closer and closer to the direction of my dream, which is my passion property, my passion, starting businesses. So now I get to do that every day and it’s a hell of a lot easier to shop for work even though you do have those really, really hard days as well.
Yeah. So we will get into how this acquisition sort of phase works and we’ll flesh that out a bit more. But something that I want to touch on before we dive into the more practical sort of stuff is also this idea that financial freedoms, not a pot of gold at the end of the rainbow. They both me and Ben have achieved financial freedom or a version of financial freedom and gotten to the end of that and going, okay, like now what am I going to do with my life? So I went through a lot of depression after actually achieving financial freedom because it’s not, well now I don’t need to work and I don’t need to have all these big financial goals. What do I do with myself? What do I do with my time? And it’s been a journey of a couple of years to kind of figure out, okay, what makes me happy, what works for us and our family and stuff like that.
And so what I don’t want to see people do is to strive in a job that they hate and do it for 20 years. Two or more to achieve financial freedom, financial freedom, thinking that at the end of that, when they quit their job, they’re going to be happy because chances are if you’ve voiced in a job that you’ve had it for that long, you won’t even know yourself by the time you come out of it. And we had these moments in our life where we can purchase a new car or we can purchase a new house. And then that makes us happy for awhile. But then it just becomes the norm. It becomes what we have and the life that we expect. There’s that saying familiarity breeds contempt and it’s just like when you have, when you’re used to having something, you’re used to it, you become entitled.
You don’t have the happiness that you want, and I guess the most happiness that I’ve found is really just exploring different things, so exploring things that I enjoy, exploring the nature and all the stuff around us. Spending time with family, like you become a different person as you grow older and financial freedom doesn’t stop that and so there’s no one thing that’s gonna make you happy if you could afford it. It’s like all these so many different things so and so. I’d love to see people get to the point where they can acquire enough properties that financial freedom and their financial security for the longterm is ticked by. Let’s put that in a box that’s done, that’s going to take care of itself. Now we can focus on pursuing what makes us happy in life, how we want to give back to society and all of that.
I completely agree with you because, you know, I’ve talked to in videos before about my story. We don’t have to go all the way over it, but I think if I look at my nine years now investing in property on 32 years of age at the time of recording this and we’re 33, um, I’m kind of looking at it this three very, very distinct periods as an investor with three very short sprints in terms of accumulating properties and then massive droughts over the last nine years I’ve probably been able to buy a property for about two and a half years over that entire period of time. The rest of it I’d been preparing to buy a property and sitting on real estate.com and obsessing about property. Like we all do, you know, those of us that want to find a way out. We’ll also, you know, spending personal time watching these videos and you know, hopefully not sitting on real estate for too long.
I’m well learning the right sorts of stuff. But the first period was when I was 24, I was ending 50 grand a year as a graduate at IBM. I bought two properties in that first year. Remember, things would shape out back then even though that sounds like I’m the oldest in the world, like you know, prices were half as expensive in Sydney at that time and I bought those two properties and then one very shortly after and the year after, and then I hit a servicing limit and couldn’t do anything for about 18 months. And then I figured out a way to earn more income in my job and outside of my job and went and bought another three properties about 18 months later, very, very quickly again and then got completely caught again and literally couldn’t borrow buy property for three years. But I’d moved out of that position and into a job that I really, really, really liked.
It was the only job that I’ve ever had that I really liked. But like anything that you really like once it, once you’ve gone through that new phase, that growing period, it becomes very style if you’re not evolving. And I got to that point and then started the pumped on property thing and you know again, have gone recently in the last couple of years, so very heavy accumulation phase again. So there’s lots and lots of sitting on the sideline, whether in you you’re in a job that you love or you hate. But what I’m trying to say is that if you have a focused strategy from day one, which I didn’t have until I got into property probably seven, if I have had the full property strategy, then I’ll be in a completely different position because I probably only would have done the four properties. I would have fully achieve the financial freedom that I was ever always been chasing in at the level that I wanted it to be it. And I would’ve saved myself united the pain of buying the other six properties in the last nine years that I’ve bought from most mostly no reason. Like if I, if I really look back at it, smart decisions a far better than many decisions, if you know what I mean.
Well, that’s the thing. I think most people when they think financial freedom in 15 or 20 years or whatever it may be in property, they see 15 years of hard slog, both working but also working in the property space, acquiring properties, renovating properties, all of this sort of stuff, and so it becomes this extremely long time period where you need to be committed to both your job as well as to the investment journey and to growing your portfolio and stuff like that, and what we’re trying to make people realize is that there is an alternate route to that, so some people like to do that and people chop and change what type of investments they want, what type of strategy they want to do, and look, that’s fine, but what Ben’s talking about is this idea of distinct phases of what do we have. We’ve got the equity acquisition phase, the consolidation phase, and then the lifestyle phase.
Exactly, Yep. They’re the three major phases.
Yeah, so acquisition phase, which is what Ben was just talking about, which is those times in your life where you can buy property, so you’re budgeting really hard, you’re saving really hard. Maybe you’re renovating to gain equity so you can go again, you’ve got the servicing capacity there and so you spend that time really focusing on growing your portfolio and so that might be buying one property, two properties, maybe four properties, however many it is, but if you’ve got a strategy in place, that acquisition period can be a short time of maybe just a few years. You can acquire those properties and then there’s the consolidation period where those properties go up in value. Your work at paying down the debt on those properties or improving those properties, but you’re not really doing a lot in the property space apart from just letting the properties do the work that you purchased them to do.
If you’re a passionate investor like me, like I am. Even though I do property everyday, like I’m obsessed with property, like I can’t, you know, there’s hard days in business but there’s never a hard day in property for me. Like I love property. Like as weird as it sounds like, I love finding that cheap property and adding value to it. I love finding that piece of land and building on it like I love creating something from nothing, but what I’ve learned is that everyone that gets to financial freedom from property is going to go through the same three distinct phases of acquisition, consolidation, lifestyle. Some people just take 30 years to do it because they don’t go through the accumulation phase quick enough because they don’t have the knowledge, skills, confidence, or time to execute on that small little phase. The accumulation for a person with a combined income of 100 k should realistically be no longer than four years. Realistically, it should, regardless of where you are right now, it should not take longer than that. Everything else is so boring and this is the challenge that I’m having at the moment because I’ve got enough property. I’m just, I love property and it’s like, oh, like enough’s enough. You know? I get my kick out of helping other people achieve their goals, but
yeah, you’re the properties you’ve purchased or doing what they need to do to achieve the financial freedom or the growth or whatever it is that you want them to do. In the mid to longterm, and so you don’t really need to be doing
right. Consolidation for people that love property is like watching the grass grow and if you, if you’re a hunter and you love finding deals, it sucks, but you’ve got to trust that you know, more isn’t necessarily more of we’ve, as we’ve talked about on ceremony. Other videos.
Yeah. And so this is a power of having a strategy before you get started because so many people go into property and they just buy property number one without really a strategy or they get sold some whizzbang investment strategy that’s like really fancy and you’re going to do all these really difficult things. Um, and so they go in and they do probably number one and then they’re just so exhausted and burnt out that they never go again. And then five years down the track, then they find another strategy and then they do something else. And so some people really spread this out and so they are doing the hard slogan staying in the job they hate because they don’t know how to get to that financial freedom because they don’t have the strategy. So if you guys haven’t seen the full properties to financial freedom, not suggesting they should be everyone’s strategy, but it’s definitely a cool concept. So go to on-property dot com dot EU four slash four, eight eight. So that’s the episode number over there and go ahead and watch that video and that strategy, but it’s basically like buy two properties for capital growth and then purchase two properties for both capital growth and cash flow. And then after 15 years you’re able to sell the first two to sell off the second two. And then you’ve got cashflow without debt that you can live off. So it’s
one true cashflow. Like if you’re still got dead on, on, on something, on any asset class, then there’s still risk associated with that asset class. And it’s not true financial freedom until you have enough to survive. Plus provide for your lifestyle is my opinion these days. And so, you know, 15 years might sound like a long time, but it’s really not, especially as an investor while your go to all the other things going on in your life. And as Ryan and I said, like linking back to the video titled Getting Out of your jobs sooner, the Sunni develop a quality strategy. Go through your accumulation phase as soon as accumulation is done and you don’t need to impress the banks anymore. And if you do the strategy right, your property portfolio should be completely balanced. Cashflow was up to at least a six percent interest rate, which is a long way in the future from today.
Then when not dependent on money coming in in the way that you needed to to impress someone that you probably don’t care about. Um, life gets so much simpler and you can choose that passion. And when you choose the passion and you add value to other people’s lives and you’re good at it, and you use your natural skill sets, often the income follows because you’re going to go further. You’re going to work harder than most people will in the same profession. And that’s when everything has changed for my family, you know, I’ve got into property six years ago now and man, it’s changed everything like because I’m, I’m fatigued some days and I get exhausted from things that happen. Obviously there’s pain in the ass people that you have to deal with in parts of life, but those people are a small number to all of the good stuff. When you’re doing something that’s actually in alignment with who you are and what you’re good actor. So accumulation can be really short. Then you don’t wait 15 years to live the life you want to live. You just start living at like you probably just start living at right now actually in. Don’t wait for anything because you know, it’s, it’s way too short. Anyway.
Yeah. So it’s this idea that you don’t need financial freedom to live the life that you want, but most people want to get set up financially and we totally respect that. And we think that is a definitely a good idea and a good thing we’re doing. But the idea is that once you’ve. You’ve gone through the acquisition phase in a short period of time and you don’t need to impress the banks anymore. You’re now freed up to pursue other things. You’ve still got bills to pay. You’re still probably got rent to pay or your own mortgage for your house if you bought your own house, so it’s not like you can just go and play golf every single day and not worry. You don’t have a care in the world and don’t have to worry about money because there’s still going to be those things, but you can be rather than having to think about building your financial freedom as well, you can think, okay, what level of life am I going to be happy with and then what sort of jobs or what sort of career path or businesses or things do I want to pursue that will still pay the bills because I know I’ve got my financial freedom already organized.
That’s going to happen in its due time. What can I do now to start enjoying life doing work that I like? Even if it means taking a pay cut but you enjoy yourself more. I don’t know. I feel like I didn’t explain that.
I know what I’m thinking is you’re explaining that and I’ve been watching a lot of stuff at the moment around conor mcgregor who I love and also stoicism and this concept of always thinking in the future is not good for anybody’s immediate lifestyle because it takes you away from the present, but one thing about putting a line in the sand in the future and going, this is me and I’m going to be happy with this, is that it enables you to live today like you’re already there and this is the biggest thing I’ve been learning rightly like Anthro, a bit of this self discovery stuff. Again, because I’m not accumulating properties, I’ve got to fill my time with other stuff. That’s interesting. Lessons and life and all that good stuff, but these concept is super simple. Like I saw myself running this business six to eight years ago, like I saw exactly what’s happening now happening.
I saw my property portfolio six years ago looking exactly like it looks right now. I saw my financial position and then and while it wasn’t physically there, I already thought I’d changed it because I knew exactly what I wanted to do and that’s what I feel like 99 percent of the people that I speak to everyday and I speak to 20 plus people, paperweight plus all of our clients plus everyone else, like these are just property investors that want financial independence and the number one thing that they don’t have is a clear vision of what they need to do in 12 months and what they need to do in 15 years to link how they save themselves because everyone can see how they really want to be if they spend an hour sitting down and doing that. But not many people can say how to link that together and I think the sooner you can see where you want to be and what the immediate next step is and you just work hard on that immediate next step and don’t stress about anything else.
You know, and then you, you see yourself already where you want to be long term. I know we’re getting high level here, but no, it’s good though. Hot being, being there already in your mind means that when you achieve it, it’s just like, you know, I’ve been watching this kind of stuff and he’s like, I saw myself as a world champion seven years ago. Like I watch videos of him at 18, 19, 20 when he was in the full grind saying exactly where he’d be by this point like I watched him do is pray, fight. I’m not into the UFC or the fighting. I’m into this guy’s mindset and I love training so I’m into like the way that he looks after his body and his diet, but you’ll hear an interview in six months before the fight in the late up and he’s like, this is how it’s going to go down.
This is what I’m going to do. And the fight comes in. He’s already done it. He’s already taken himself through that and obviously fighting’s a highly volatile thing where just because you say it doesn’t mean it’s going to come true if the other guy’s better than you on the day. But I love this concept of believing that same way you’re going to be with enough clarity that your body already feels like you’re there and it’s just now a case of actioning at which is actually it is the easy part. Finding the plan and then having the discipline over a long enough period of time to stick to the plan is the two hard things.
Yeah, so I hope that this concept sits well with you guys, that you understood what we’re trying to communicate, that you don’t need to be in your job until you’ve fully achieve financial freedom, that you can set up your property portfolio for financial freedom and then you had the freedom to go and explore other things and if you’re in the position where you don’t know what your plan needs to be, but you really liked this idea of acquiring a bunch of properties and then being able to go on and to live a happier life, but you just need some help. You need some help like clarifying your situation where you’re at now, where you want to be and how to get there. That’s what bends for her. And pumped on property as well, and Ben and his team over there are offering free strategy sessions to listeners have on property.
So if that’s you and you’re like, Yep, I want to invest, sounds good, but I just needed a bit of help getting clear on this. Then head over to on-property dot Condo, you for sash session and you can book a time with Ben and his team over there and just really get clear on your goals. Get clear on your strategy so that you can start implementing it. That’s where the discipline comes in. You’ve got to start implementing it and then hopefully you can get to that point where you were able to leave the job you hate because you’ve set up your financial freedom and you can now go and pursue other things in your life. So thanks Ben, so much for coming on for today’s episode. How this is great for you guys. And until next time, stay positive. I hope you liked today’s episode with Ben Everingham. If you did want to book one of those strategy sessions, just get on on-property dot com, forward slash session. And I’ll leave the links in the description down below as well. If that’s not for you, then check out this video on four properties to financial freedom, which is the best video I’ve ever done. And don’t forget to subscribe to the channel.