Property Hub - Investment Insights & Inspiration - Get Invested: Living By Design, part 2 - From vision to action

Starting point is 00:00:00 Welcome to Get Invested on the Property Hub podcast channel, the leading weekly show for Australians who want to learn how to unlock their full self, health and wealth potential. I'm your host, Bushy Martin, and each week I go deep with the best investors, experts, leaders and founders to find out what it takes to break free from the grind, discover freedom and to live by design. Subscribe now and join me and get invested in the life that you really want. Let's get started. Hi, Freight and Fighters. Are you clear on your guiding why? Have you shaped your vision by design? Last week, we did a refresher reminder look at reconnecting with your big why,

Starting point is 00:00:43 getting clear on your core values and your vision of your ideal lifestyle. Having a crystal clear picture on where you want to end up is critical as both a magnifying magnet and a clarifying compass to help you make every daily decision based on whether it's taking you closer to or further away from where you actually want to be and how you want to live your life both now and long term. It also helps deflect distractions and the temptations of the next new shiny thing that comes across your path. Without this clarity around your overarching why and the passion of your purpose, all of your usual one-day, one-day New Year's resolutions will continue to wither on the vine just

Starting point is 00:01:28 days after you've thought about them. Nothing sustains without a big and meaningful enough purpose. So how can you do something that's simple, easy and achievable that you can action every day that will help you to enjoy life to the fullest both now and in the future without being too arduous, complex and long-winded to create daily happy habits that become rich rituals so that you can achieve and enjoy your ideal lifestyle to help you with this today's special bush banter or martin minisode will take you through the simple process that's worked so well for my wife sonia

Starting point is 00:02:06 and i as we discussed in the last episode the quickest and easiest way to capture both your core values which are just the things that are really important to you and your ideal lifestyle is to create a crystal clear picture of your perfect day it needs to be vivid in color full of sights sounds tastes and smells and engages all of your senses and engages strong feelings and emotions so that you're actually compelled and attracted to make it happen like a moth to a lamp now this is not just something that remains a furry image in the back of your head but something that's written down and recorded. Now, you can do this by writing down your perfect day

Starting point is 00:02:46 like a living, breathing, blow-by-blow diary of your day and or you can record it under voice memos on your phone or you can create a picture storyboard of images that bring your ideal day to life. You now have something to aim for, something to keep you on track and something to monitor and measure your progress against. So, have you taken the time yet to do it?

Starting point is 00:03:09 if not it pause and do it now because taking the time to do it now will set the course and quality of your future now i know you're skeptical and probably feel this is all a bit woo woo and because it's simple it feels like a bit of a waste of your precious time but believe me when i say that this first step in living by design will be transformational in the years that come so do yourself a big favor now that your future self and family is really going to thank you for and make your life happen don't let it happen this is a thing that actually separates the best from the rest so i promise you that you won't regret it because this will help you to encompass all of what we call your three purpose please personal professional and passive your personal

Starting point is 00:04:00 needs your professional goals all fueled by your passive income investment requirements that will satisfy all of the above. And how do we make this easily doable and achievable? Well, we start by working out your four simple freedom numbers, your lifestyle income, your nest egg number, your break-free timeline, which all helps to give you your freedom number. So starting with your lifestyle income, you just need to monetize your perfect life. And this is actually much easier than you think. It's simply a matter of working out how much your ideal lifestyle costs a year. This gives you the answer to the question, how much is enough? And it avoids the endless chasing of money for money's sake that plagues many high achievers and often ends up killing them

Starting point is 00:04:51 prematurely. Once you've invested enough to create the passive income required to fund your ideal lifestyle, whatever that looks like, then the job's done, the game's over and the mission's accomplished. As a rough guide and starting point, I've done a lot of research on this subject and a couple currently needs about $120,000 a year combined to enjoy a reasonably comfortable lifestyle and includes ample holidays, travel, recreational and leisure activities, eating out and entertaining, good clothes, a nice home and car and private health insurance. Assuming of course that at that stage, your home loan's completely paid off. Another easy way to kick things off and work out your lifestyle income is just to use about 80% of your current combined

Starting point is 00:05:40 house style income. Again, if your home loan's paid off, if your current lifestyle's comfortable and enjoyable. Now, I need to stress here that I'm not a financial planner or an accountant. So what I'm talking about here is what's worked well for me personally, and it's not intended as financial advice in any way shape or form so you'll need to verify what suits your specific situation with your accountant and or a financial planner. But for the sake of this example let's start with a long-term lifestyle income of $200,000 a year to give you a very comfortable existence. It's then very easy to calculate your nest egg number which is the total size and value of your income-producing growth assets that you need to secure

Starting point is 00:06:26 to fund your lifestyle income long-term. And this is a combination of your super, shares, property, index funds, managed funds, you name it, that are all growth assets that produce an income. All we need to do then is times your lifestyle income number by 20 based on a pretty conservative 5% net return on your income-producing assets, which are those mix of super shares index funds and property etc so in this case 200 000 times 20

Starting point is 00:06:57 equals 4 million and we use 20 because that's effectively five percent so four million in income producing assets is needed which again excludes your family home as this is not technically technically an asset as it puts no income in your pocket and it actually costs you money to maintain So your nest egg number is therefore 4 million. Now, while this initially sounds a little bit scary and daunting, when most people's super balance is in the low hundreds of thousands, but if you've got enough time on your hands, you're going to be very surprised at how easy this is to achieve.

Starting point is 00:07:34 We then need to identify your break-free timeline, which is how many years before you want to be in a position when you don't have to work anymore. and the emphasis here is on have to work because you may well keep working or building your business or career if you want to but you don't have to and this subtle shift will have a massive impact

Starting point is 00:07:56 on your mindset and your ongoing enjoyment of life because Sonia and I don't believe in retirement because it actually ends up killing most people prematurely and I actually heard a stat quoted that something like three out of five men are dead within five years of retiring and stopping work and i think a lot of this has got to do with a lack of ongoing purpose so we prefer to call it rewirement where you're financially able to transition into doing things that you want to

Starting point is 00:08:24 not that you have to for example i fully intend to keep doing these podcasts until my voice actually gives out because it gives me the very fulfilling purpose of continue to help you and others as well as giving me the ongoing opportunity and privilege to meet and interact with other great Australians. So I don't know about you, but I love being in a position where I don't have to work, but choose to work when it actually suits me. I love what I'm doing and I get a lot of satisfaction out of helping others achieve their goals. So I don't want to stop doing this. I'll just do less of it and continue to educate and train our awesome know-how team to do more of the actual day-to-day delivery. My continued aim is to be the Bush version of Buffett and he's

Starting point is 00:09:09 still enjoying work at the tender age of 93. And as an aside, Buffett has been actively investing for about 80 years. And really interestingly, 99% of his wealth has been accumulated after he turned 50. So clearly it's never too late. And time and persistence by playing the long game are the greatest predictors of your future lifestyle. But I digress. If you're just starting out on your passive investment journey, you need to be considering an absolute minimum break-free timeline of 15 years. Why? Well, my research on sustainable long-term success in any endeavour keeps demonstrating that you need a minimum of 15 years to make it happen. So for the sake of this exercise, let's use 20 years as the break-free timeline. Now,

Starting point is 00:10:01 we have a lifestyle income of two hundred thousand dollars a year a nest egg number of four million based on the 20 rule and a break-free timeline of 20 years so starting from scratch this means that your freedom number today using the freedom forecaster that we've developed is around 1.4 million which equates to about three quality growth investment properties this simply means that right now your freedom number is $1.4 million or about three properties. You just need to secure $1.4 million worth of high growth income producing assets in the short term to give you an ongoing passive lifestyle income for life of around the $200,000 a year mark from an income producing nest egg of about $4 million over your break free timeline in 20 years time. As a quick comparison,

Starting point is 00:10:59 if your required lifestyle income is about $120,000 a year over your break-free time of 15 years. Then again, starting from nothing, your required nest egg number is about $2.4 million and your freedom number that you need to invest in now to achieve this, it's about $1.1 million, which is about two high growth investment properties. And this excludes the added impact of your super that most of us can access after we turn 60. So what looks like pretty scary numbers to start with investing in between two to four good quality growth investment properties will do most of the heavy lifting to ensure that you attain and then sustain your ideal lifestyle long term as long as your investment horizon or break-free timeline is 15 years or more

Starting point is 00:11:46 and 15 years is also the average amount of time that an area takes to go through a complete s curve growth cycle based on what's actually happened in australia over about the last 45 years and this is important because many property investment speakers still talk about doubling your wealth in 10 years so you might get lucky but i suggest that you plan for the worst and then expect the best and you're not going to be disappointed now if all this sounds way too hard and too complex and you need some help in setting your ideal lifestyle goals utilizing our indicative freedom forecaster model that we've developed to put some shape around your future and your freedom numbers so that you've got more clarity and comfort on where you're heading just send

Starting point is 00:12:30 our know-how team an email at hello at knowhowproperty.com.au that's h-e-l-l-o at knowhowproperty.com.au and the link will be in the show notes with freedom number strategy in the subject heading or click on the knowhowproperty.com.au link in the show notes then click on the purple book appointment button on the top right-hand side of the homepage, then book either a free pathway finder call to explore your options or book in for a personal solution session

Starting point is 00:13:03 with me personally so that we can help you work out and get excited about your personal, professional and passive future. So now that we've completed our perfect day diary and or vision board of our freedom numbers, we can enjoy the peace of mind that flows from knowing that our direction

Starting point is 00:13:19 and what we need to achieve to enjoy our lives on purpose that satisfies our 3P needs. So these 3P needs are the passive investment freedom number that fuels the freedom of our personal and professional needs, wants, desires and goals. Now all we need to do is break down our long-term lifestyle vision into annual goals and then break down these into weekly goals and finally daily actions that will actually help us to achieve our ideal lifestyle day by day. Now this is like eating the elephant in bite-sized mouthfuls, slowly, easily and achievably without suffering any indigestion. Now remember that if you just achieve and improve something by one percent per day, you'll have improved by 356 percent

Starting point is 00:14:10 in a year's time. This is the magic of compounding returns which relies on giving yourself daily doses of TLC. Now this is another form of actually giving yourself plenty of tender loving care in the form of combining T for time, L for leverage and C for the magic of compounding growth to achieve great things. It's what Albert Einstein coined as the eighth wonder of the world where he went on to say that those who understand it earn it and those that don't pay for it because the exponential curve actually swings both ways. So you can either embrace time as your friend and invest now to end up very comfortable in the future or ignore time now because you're just too busy and delay investing and keep doing what you're doing and you're likely to end up very

Starting point is 00:15:02 uncomfortable long term. So the choice is yours and your fate's in your hands. Just don't make the mistake of leaving it too late because time is the most important ingredient to your future freedom. So this is all about creating easy to do daily happy habits that you take painlessly and progressively towards your ideal lifestyle goals. You'll be amazed at how much this almost invisibly transforms your life. You won't see the incremental improvements short term but over time results are massive so this is how we achieve our ideal lifestyle on a daily basis every year we just work out our top three goals across our personal professional and passive investment spheres for example my top three goals for last year revolved around my unifying theme of

Starting point is 00:15:57 transition where personally Sonia and I pursued our many where gypsy lifestyle approach of taste testing different destinations to live in from Tassie through to the Bellarine Peninsula, East Gippsland and beyond. Professionally, we started to monetise the Get Invested podcast and realty talk shows under the Property Hub Southern Crossroads Stereo banner and I started mentoring our team on our strategy and our John West of Property Orchestra leading and vetting property delivery process to reduce my level of day-to-day work activity. And passively, we continue to transition our portfolio from growth to cash flow, along with the development of a unique perpetual custodian business model that's actually going to sustain the passive

Starting point is 00:16:41 income strains of all key know-how partners in perpetuity. So don't forget to have a clear goal in your passive investment sphere, as this will ultimately fuel and fund your personal and professional freedom needs long term. Now, if you're just starting out, this may just mean that you intend to save $12,000 over the next year by doing something as simple as refinancing your home loan and restructuring your finances in order to reduce your regular repayment cost by $1,000 a month or more, which we help a lot of our know-how clients to achieve. You can then accumulate these savings in an offset account via our automatic money management and saver system, or kick-ass auto saver system for short, that I detail in my book,

Starting point is 00:17:28 the freedom formula and this goes towards investing in property shares index funds managed funds or other high interest and high growth savings vehicles once it starts to accumulate all you need to do then is make sure that every day you're doing just three things that will help achieve these annual goals so at the very beginning or very end of each day you just need to spend five quick minutes and take your goals page and just write down what your three actions are for the day and how you went against yesterday's you can put this in the notes app of your phone if that's easier for example to achieve my goal of doing my first singing and piano performance a few years ago i dedicated half an hour a day for a year to playing piano and singing this happy habit

Starting point is 00:18:16 made achieving the goal easy as i just chipped away at it little by little every single day for additional personal accountability so that you do what you say you're going to do every week talk to a friend or work colleague and confirm how you went achieving the three actions you declared last week and what are the three things you're going to do next week you could also do this by mentoring them and mentioning them with your partner or sticking your three things on the fridge and then discussing them over breakfast or dinner at least once a week then at the end of the year and every three months if you're serious about it you can review how you went against your goals, what worked, what didn't, what changed in your internal needs and external

Starting point is 00:18:59 conditions, what you learned from it, what needs to change and what you need to do to keep on track and what will be your three P's purpose goals for next year. Also make sure you celebrate your wins so that you're rewarding yourself for achieving your goals. Something you really enjoy and makes it all worth it because it's about enjoying the journey, not just waiting for the prize. For example, following the continued success of my book and our podcast, Sonia and I celebrated our 25th wedding anniversary by enjoying a three-week holiday in Bali together with my son Adrian. But it doesn't need to be that fancy. A night out at the movies, going to a good live concert, a romantic dinner date night with your partner, or whatever floats your boat to celebrate your success. So in the spirit of open accountability,

Starting point is 00:19:49 here are my top three P purpose goals to achieve by this time next year. On the personal front, I'm going to be back at my ideal weight of 85 kilograms by eating more healthily and exercising every day because continuous travel along with the effects of long COVID and a pretty bad hockey injury this year

Starting point is 00:20:09 have thrown my health routines completely off balance. Professionally, I'm going to further monetize these podcasts and our ecosystem so that they stand on their own feet financially and fund the ongoing growth and quality of our content to deliver you with even better guests and takeaways all i need you to do is subscribe to help it and lift it up the algorithms i'm also looking to evergreen our freedom flight formula why what how information sessions so that you can benefit from them when you like, rather than being restricted to a specific date and time.

Starting point is 00:20:46 We're also shifting to a four-day work week at KnowHow next year so that I can put more into important personal pursuits like art and music and working on the business, not in the business. And passive investment-wise, we're going to continue in the accelerate and amalgamate phases of our Wealth by Self strategy by continuing our personal capital growth to cash flow conversion of our investment portfolio and transition plan and on the emerging fourth purpose p which is actually giving back and helping others on the what we call the p for philanthropy i can't even say it philanthropy front get it right eventually we're going to revitalize and reinvigorate our

Starting point is 00:21:32 save a dollar to save a life campaign we're helping you to helping us will actually help those in other parts of the world that have no voice and have no choice. So as an example, for every dollar we save you, your friends, family, or work colleagues on refinancing, restructuring, or settling your home and investment loans will donate a day's worth of life-giving water to the families of Tigray and Ethiopia, along with other similar life-saving buy-one-give-one campaigns. You see, many home loaners are paying anywhere between $400 to $1,000 dollars a month too much on their home loan. So by helping each other, we can also help others less fortunate. So to summarise, your perfect life starts with your picture of your perfect day,

Starting point is 00:22:15 which is achieved progressively by the power of three. Three yearly goals that break into three weekly goals that are achieved by three daily actions. Now when you say it like this, it all sounds pretty simple, doesn't it? That's because it is. It's just that very few people get around to doing any of this because they just don't make or take the time or they may start and then quickly run out of puff when the everyday urgencies of life get in the way. As the old Confucius saying goes, if you want to be, do. It doesn't get any simpler than this. You actually need to become the change you want to see in the world by your example, not by your expectation. So believe me when i say that this is what makes the difference between those that make their life happen and

Starting point is 00:23:07 those that let life happen to them it's what differentiates the hopers from the haves so here again is where i'm going to challenge you find an afternoon to record your ideal day and ideal year and then set your top three personal professional and passive investment goals for the year that's going to then help you get there. But goals don't mean anything will become real and actionable until you've written them down in terms of who needs to do what by when and then you voice them to someone else so that you become accountable for achieving them. It's amazing how much more I achieve when I tell someone else what I'm going to do. So this is where we become your accountability partner just jump on facebook on our facebook pages at the property hub collective

Starting point is 00:23:59 or at know how at know how to make it happen by clicking the links in the show notes and post your 3p goals for next year and you'll receive a free copy of my award-winning book get invested or if you're a bit shy just email me your three goals on hello that's h-e-l-l-o at knowhowproperty dot com dot au because despite all the ongoing gloom and doom being perpetrated in the mass media there's never been a better time to be alive and thrive so take control of your life and that's just three things a day is all it takes to transform your life into the way you want it so that you can enjoy the world on your terms not someone else's as jeff olson says so well in his book, The Slight Edge, life is a curve construction, time is the builder, and your

Starting point is 00:24:51 choices are the architect. The power's in your hands, and we want to help you to make it happen. Now, I'm sure you've heard all of this before or something similar. So what have you done about it? If I ask you, what are your values? And what does your ideal lifestyle look like? And how much does that cost a year and what are you investing in to turn your dream vision into reality can you answer me without having to think about it or do you look at me with a vague far away look on your face and respond with well i've never actually thought about that before or i just don't have the time to think about this bushy in reality this is just an excuse for saying that this is actually not important enough because we always find time the things that are important because

Starting point is 00:25:38 if you don't know where you want to end up, then you're likely to end up anywhere and it's not likely to be pretty. So take the time now, invest in yourself and then use time as your friend to give you your time back so that you have the freedom of time to do what you want, when you want, with who you want. The power's in your hands. All you need to do is take this first important step and follow what we've been talking about over the last two weeks. And if you simply don't have the time or you're really struggling to put some shape around all of this, reach out to myself and our know-how team, because most of us know we want to do something, but we just can't see how. So we can help you give you all of the know-how that you need to make your version of freedom

Starting point is 00:26:23 happen by working with you to handcraft your unique freedom formula strategy, which is short for starting your strategy. It enables you to start with the end in mind and then work backwards to see what you need to invest your time, energy, money and knowledge in to bridge the gap from where you are to where you want to be. That's more food for thought. Thanks for taking the time to listen and for all of your ongoing support fellow Freedom Fighters and I hope that this has been a timely chat on the approach that I know has the power to transform your life. So if you've been waiting for a sign then this is it. So get invested and I look forward to talking with you next week here on Get Invested. Thanks for tuning in to Get Invested on the Property Hub podcast channel,

Starting point is 00:27:07 your home for property investment insights and inspiration. Make sure you subscribe to Property Hub for free. Get your weekly dose of Get Invested inspiration along with every episode of Realty Talk, Australia's top online property show for red hot property investing news and insights direct from industry leaders and influencers. And finally, I'll see you next time.

Property Hub - Investment Insights & Inspiration - Get Invested: Living By Design, part 2 - From vision to action

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