Working in a job and investing in property is a great way to achieve financial freedom
within a relatively quick time frame. We're talking 10, 15, 20 years, still earlier than
most people achieve financial freedom, but you can actually accelerate that through having
your own businesses. And this is something that both me and Ben did. We achieved financial
freedom through using business and so we want us to talk today about how business can help
accelerate your financial freedom or give you financial freedom. So we want to talk
about the reasons why businesses good for financial freedom. Yeah. I think as you said,
in terms of a get out of jail or I get out of a job that you absolutely hate. Scenario.
Achieving financial freedom through a business can be a lot faster just because the short
term cash can be significantly higher than, as you talked about before, like waiting that
15 year period to wait for your property to do it.
Saying yes and so waiting for the property to go up in value, waiting for the cash flow
for the property to go up as you pay off the debt or as the rent goes up does just take
time and there's no two ways about it. Obviously you can do renovations and you can add value
and things like that, but generally speaking, that is a time factor that you need to wait
out and property. Whereas business you can take a lot more action to increase your income
and to get to that financial freedom faster. So let's just talk a bit about the ways business
can help people achieve financial freedom. So we'll give you guys some food for thought
because I bet a lot of you out there haven't thought about starting your own business,
haven't thought about starting your own side business, so this will just kind of get the
wheels turning in your head.
Get the cold's going as something to start thinking about. So looking at business, Bro,
a lot of people think, oh, I might or might not be able to do that and it can be confronting
for people to get the confidence to do it and the way that I think you and I did, it
was really nice. You know, I started my own little businesses on the side when I was still
working for someone else. So there was effectively absolutely no risk for me in starting something
and that gave me the confidence with those short term wins, um, that you get from starting
your own business and trial and error over time to enable me to now do, you know, full
time business for myself for the last five years or with you and to just, you know, excel
at it. So I think putting your toe in the water in terms of starting a business can
be a great idea and there's probably plenty of things that you do day to day or week to
week on unique knowledge and skills that you have that you could easily apply to starting
a business.
You know, if you're a project manager, then you could take on small projects outside of
your full time job. If you're an it engineer, then you can, you know, pick your time, I
suppose on the side or you can like start responding to stuff on air tasker or high
pages if you're trading on the weekends and start building like a passive cashflow completely
outside of what you're doing in your actual day to day life, which just can be put back
into investing or it can be put back into savings and you can use that savings to obviously
go full time into business and speed it up or just do what I did. And you know, I had
these little businesses on the side for six years before I went full time in the business
and I used the money I made from these little businesses to actually buy off buy properties
or pay for renovations or money that I couldn't save at work with my family.
Yeah. Well let's talk about the different ways business can actually help you achieve
financial freedom. And the one that Ben's talking about is that you have your job, which
pays your bills, hopefully you're saving a bit as well, and then you start a business
on the side which can bring in extra sums of money and keep bringing in lump sums of
money from jobs that you do and you can then take that extra money and use it as a deposit
to invest so where you might not be able to do it through just your employment because
you're not earning enough, you're not saving enough. It's really hard to get that deposit
together. Was He at the second deposit together but still working in your job but then also
starting a business on the side or contracting on the side. Then you can take that money
and invest and accelerate your financial freedom that way.
So that's what you did. That was what I started with and I think that massively accelerated
my ability to invest outside of that business too. And took the pressure of the finances
for my household from a week to week basis as well. But any little bit of extra money.
Yup. And the other way you can do, which is what I did, I simply, I also started my businesses
on the side, but then I went full time into my business and created a passive income business
model. So rather than taking the extra cash from my business and applying it to property
to achieve financial freedom that way I saw business as a vehicle for me to achieve my
financial freedom. So each of the businesses that are created had really passive elements
to it that I would do work now and then I wouldn't need to do work in the future. And
the work that I did now would continue to pay me into the future. Explain what that
really means for people because the way that you do business is unlike anyone I've ever
met. And it's actually like incredible. Like it's wrapped up very, very differently. But
your thought process, even since we, we met five, six years ago.
Sorry guys. Um, yeah, like the way that you've done this and it's just so different than
the way I was historically taught how to do it. So what, what do you mean by that? Like
creating something that can last the long term period of time and create passive income.
I was thinking about this on the drive down and I'll probably do a full video on this,
but to create a passive income business the easiest way. Well, the way that I did it was
you want a passive product or something that you can sell. So when you sell one or when
you sell $100, it doesn't take a lot of extra work. And now passive isn't completely passive
and there's zero work. There's still some maintenance and there's still some work, but
you're not working for money. So a passive product is the first thing that you can sell
and it doesn't require a lot of work from you versus like if you were in it or if you're
building websites for someone and every time you get a client you've got to build them
a website.
You know, every time you get a new client you've got extra workload versus selling like
a website theme where if you sell one, you create it. And then if you sell one grade,
it is 100 grade. You know, there's not that much extra work behind it, so in some of the
businesses that you've had, like it's so interesting in terms of everything from a coaching product
to Ebo dad in a niche space to a subscription model to a certain product that you point
people in the direction of like really broad across. Yeah, I agree. So you can create your
own products or you can market other people's products and get a percentage for that. And
then I think the other element that's required is passive marketing. So for a lot of businesses
I spend money in a market wants and then they've got to do work to keep marketing and for me
I wanted to create, do work that creates marketing that just works over and over again.
So like podcasts, like youtube videos, like really well, like this video will create this
now and we're working while we're walking here, are we working to edit this and to upload
this to get it transcribed. But once that's done it and lives online and people will view
two years to come. Yeah. So that might be a bit high level for people, but basically
I actually financial freedom through creating passive business. Other people do it in your
business, pumped on property as a buyers agency, your, it's more intensive and that each time
you bring on a new client, obviously there's work you got to do to find the property, talked
with real estate agents for the clients or that sort of stuff. But then you can start
to create that passive by hiring other people to do that as well. So you can get to that
passively in a non passive business through hiring other people.
But as we told you about previously, I'm not applicant managing that kind of wasn't the
best option for me. For me personally. I like being around other people. I like being around
high performance in the model that we've got at pumped on property or in the other business
are run, which is a management business. Um, it's very high touch. It's one to one where
I suppose your model is a bit more sort of one to many model is a bit more time for money
where your model's a bit more sort of infinite returns. Start thinking. I've learned from
observing by today our businesses is I grow that certain businesses can be great for something
at the businesses can great for other things. It really depends on your life stage and you
know, do you want to work with a day, you want to take either heads on day one, a campy
time for money effectively or do you want something that's more passive, more evergreen
that lasts for a long time and I think it's not necessarily one or the other, it's just
what your skill set right now and what can you take advantage of.
And then as you learn over time, you can refine the model to better suit what you truly want.
Some. Yeah, as you were saying, some businesses are better for some things than others. My
passive income business model isn't great for quick cash or for lump sums of money.
It's great. Uh, it requires a lot of work to get a trickle of money coming in. It's
harder to reinvest the money to get it back because you get, you might write an article
or do a video and we'll make money over a number of years rather than getting a lump
sum fee marketing. So there's a lot of problems with it. That means it's not epic. Huge amounts
of cash straight up. But because I saw my future as financial freedom through business
and then I'll invest in property, I was willing to make those sacrifices. So we talked about
business can help you achieve financial freedom fossa through getting the lump sums by working
on the business and using that to invest.
We talked about passive businesses. The other way business can help you achieve financial
freedom faster is that it gives you almost infinite potential for how much money you
can. So if you're in a certain business, I mean if you're in a certain employment, certain
job that's job haven't used that in. So I haven't had a job for while. So if you have
a certain job, there might be salary ceilings or how much you can earn within that sort
of job that people are only willing to pay x amount for a certain employee and so you
might be able to get a five percent raise per year or you might be able to get to that
ceiling of six figures or whatever it may be, but you kind of kept at that. Whereas
business, you have an opportunity to expand that massively and to earn a lot more money
than you could earn in a job and it's a huge thing that being in control of your cash flow.
From a business perspective, I know it's confronting for a lot of paper to think about doing that
and putting themselves there. But the way that I described business to people that aren't
in it is it feels like jumping out of a plane without a parachute at the start. But realistically
when you look back, it's like stepping off a gutter onto a ride with the kids. Holding
a hand like it is no harder than working a job. In fact, having a job to make. Can Be
exponentially harder in terms of all sorts of things that we don't have to go into it
now, but having that business way you can bump up your cashflow and in awake and what
might have taken someone else a month to when or any year and what, what could take 40 years
for someone to an is the power of business, but it does come with all sorts of other things
that you've got to remember as well.
Like you don't just and big money without doing the output. Yeah. And, and I don't want
people to think that, you know, jumping into a business issue, it's going to be a cash
cow because you and I both done hard work and we've also done smart work, you know,
and we both know, like we all know that businesses have a tendency to fail, that it's hard to
get a successful business off the ground or whatever. But then the thing is if you do
business wisely, if you business files so you can start another business. If that 1000
you can sign another one and only really need one business to work in order to get to a
place where it can help you achieve financial freedom, but yeah, if you can grow your income,
then if you're earning excessive amounts of money that above and beyond your lifestyle,
it becomes really easy to then invest that money into property or to invest it into shares
or to invest it into other businesses or whatever you want because you have extra cashflow.
You move into this position of, well, I had this extra money. Now I need to find something
to do with it rather than being in a situation where it's like I don't have enough money
and I need to save as well, and so that can just really accelerate things and just make
it a lot easier. Obviously you've got the stress on the business side, making things
work. It's not super simple, but that's an option and then I guess the last thing I could
think of would be that business can help you tax wise because there's business expenses
that you can buy things with pretax dollars. It's so powerful, like, you know, without
getting too much into the financial side of that or giving advice which native as legally
can, the fact that I can buy things 30 percent cheaper than someone who's working for someone
else is a really, really powerful thing and effectively means my life is 30 percent cheaper
to live than the average person's.
Yeah. Or if someone's getting a couple of hundred dollars a year and paying fifty cents
and my life can be exponentially cheaper to leave the nest. So yeah, just to clarify with
guys, these bands are getting a 30 percent discount or a 50 percent discount from the
businesses that he's buying stuff from, but there are certain expenses within your life
that are, that can be claimed as business expenses legally. Obviously speak to an accountant
about this sort of stuff. Um, but yeah, there's certain expenses in your life that you can
put through the business, which then is you're not taxed on. It becomes a business expense
so it can help you tax wise, whatever. Very generic pray tax spending versus post tax
spending. So sorry to confuse is the tax rate even exactly. Thirty percent. It's 27 and
a half and half for the average planner like this, watching this.
So yeah, so that can help you just cash flow wise because you can spend money before we
have to pay tax on it rather than after you have to pay tax on it. So most people will
earn a dollar. They then pay tax, they have seventy cents left or whatever it is I have
left and then they go to buy the things that they need to buy. Whereas with a business
you get that dollar you can spend it and then whatever's left over, that's what you need
to then pay tax on. What's super interesting is, you know, five years ago you said to me
you should be in business. What do you kind of doing? Why aren't you already doing this
now? And from my employee, a mindset that I was leaving, which was I go to work, I might
have a small little side business giving me some income over here, which I'm trading time
for and then I'm investing all of that money into property and our thought 15 years from
now I'll be where I want to be, what you showed me from your businesses that you know, doing
it the business way.
It might take you 12 months, it might take you three years to replace your current annual
salary, but it happens a hell of a lot quicker than actually going out there and doing it
the hard way, which I was, which is owning properties and then trying to pay them off
outright using, you know, the things that we've talked about. Just working for someone
else. And that's the thing. I think we're finished this off by saying business is an
obviously for everyone. I'm not saying that everybody should do this, but we. I'm saying
that we are saying that this is food for thought to think about, could you use your current
skills or could you start a side business or could you start a business that could accelerate
your goal of financial freedom rather than just relying on your job and I think that's
one of the biggest things to achieving financial freedom and achieving world is looking above
and beyond where you currently are.
Rather than just looking at your situation and saying, well, how can I save enough or
spend less stepping up and saying, okay, well how can I earn more? How can I create more
wealth in my life? How can I add more value to the world, which I then get money exchange
for because that's all money is. Money is a representation of value. So if you can create
more value and get more of that back, then you can reinvest it. And then the funny thing
about it is your boss might pay you a thousand dollars a week for that value that the market
might pay you $400 a day for that value. So sometimes you know, just when you start thinking
about that value exchange in adding as much value as you can, your time can actually were
significantly more than you price it for at the moment here.
Well that's the thing. My boss isn't going to pay you exactly what they're making. Like
they're hiring someone that I want to be making a lot more than what they're paying that person.
So whatever you're getting paid in your job, ideally like the business will be making more
than what they're paying you from your labor and from your work. That's kind of how it
works. As a business owner, you're investing into a person. You want to get a return on
that investment for Your Business. Absolutely not. It's exciting man. Like I think you and
I both did it, like the little businesses are started with maybe produced the first
sheet, five or $10,000 a second, Jay 20 grand. And then, you know, after doing it for a little
while, I was almost replacing my current annual salary from doing the things I was doing on
the side to the point that was silly not to just jump into full time business so it doesn't
happen overnight.
But I think if you're strategic and he is your skill set in the right way and build
the right knowledge and contacts, you know, you can do whatever you want to do. Yeah.
And you guys can start this on the side. In fact, I have a website that I started back
when I was still working at Alpha farm as a pharmaceutical rep. I used to be driving
between appointments and I would record podcasts as I was driving and I would just do that
to get them transcribed. So then turn them into articles. And that was that. I haven't
touched in probably like four or five years. For the last four or five years. It's made
a 100, 200 bucks a month. And so I basically only worked on that when I had another job.
And so it's made that passive income for years to come.
So the stuff that you can do on the side that can add extra income into your life. And so
start to think about it, get out there, say there's any way you can turn your skills into
extra money. And yeah, that's it. That's it. That's it. All right guys. So really excited
to help you guys move towards financial freedom and achieving that main band will be recording
a webinar shortly on how to achieve financial freedom through investing in property. If
you guys came to watch that, head of it on property.com dot a u and I'll leave a link
for that on the home page. Otherwise, go ahead and subscribe to the video and we'll see you
guys next time.