Could managing your cashflow change your life?
‘Cash is king’ and it is a key component of a successful investment strategy. When you get the basics right then you may achieve your financial goals quicker.
There are 4 components to cashflow
1. Income which means all income such as salaries, benefits, dividends, interest & rent.
2. Expenses which means all outgoings which includes mortgages, taxes & living costs.
3. Assets which are defined as cash creating such as deposits or shares or positive incomes.
4. Liabilities which are your loans, credit cards
The main reasons most save are
• The ‘rainy day’ & floods are only be one of them.
• Holidays & travel
• Paying down debts
• Retirement
How are you going so far?
However as only 36% are now debt free then the conventional way isn’t working.
Australians now have the highest level of debt along with their biggest houses.
There was a Westpac survey sometime ago which found that a comfortable lifestyle required an income of 53,000. Who has the necessary 1,000,000 in their retirement accounts?
So how do you get There?
Financial independence is all about positive cashflow.
This is when your additional income meets or exceeds your cost of living. The way to create positive cashflow is by investing in cash creating assets.
To help you with the mind set change that is required we have for you two excellent & free publications
1. ‘Cashflow Matters - How managing your cashflow could change your life’
2. ‘Your cashflow plan’ – a workbook to help you identify your position.
There needs to be a mindset change if you wish to improve your financial position.
If nothing changes then nothing changes
You are welcome to call on 07 3848 1088 or us for these two excellent & free publications.email
John McAuliffe
Can you or your children play the cashflow game
Can you or your children play the cashflow game.
Can you or the family play the cashflow game originally created by “Rich Dad Poor Dad’ i.e. Robert Kiyosaki. It certainly is very relevant to anyone wishing to escape the ‘rat race’.
In fact ‘escaping the rat race’ is the objective of the game.
Hence as we commented when teaching the quadratic formula ‘nothing is as practical as a good theory’.
We read that the regulator has created a site with 26 ‘tools’ to help with the ‘National Financial Literacy Strategy’. Of course this won’t be advice as only advisers can give advice & who wants to give you advice. Remember the world’s oldest profession only gives ‘opinions’. Will this help you to ‘just do it’.
We will give you general advice now which is if you haven’t read ‘then Rich Dad Poor Dad’ do so today. Certainly when your children’s’ birthdays comes up we would strongly suggest buy them the book. If your son is engaged then buy the ‘bride’ the book. If you have read it then it is time to read it again. In fact we had Ashley who stated he didn’t put it down until he finished so it won’t take you long.
On reflection ‘MySchool’ should have a completed survey & statistics on who has read it. Maybe a copy should be delivered with the census papers shortly with a self assessment test included.
This is the general advice we have been giving since we first read the book 17 years ago. When you have finished that then our personal theme book also from Robert is his ‘The Cashflow Quadrant.’
Hence we are offering you and or your children the opportunity to play here The Cashflow 101 game created by Robert a decade ago. As above the objective of the game is to ‘escape the rat race’.
How do you know you have achieved this objective. The game is won by their definition when your passive income exceeds your expenses.
To quote Adrian who has also been running cashflow games.
‘You will experience the famous Cashflow 101 board game invented by Robert Kiyosaki, the NY Bestselling author of the Rich Dad series of books. Generate some financial insights that may be holding you back and get a money mindset shift.
CASHFLOW 101 is a simple yet profound educational board game that simulates real life financial strategies and situations. Similar to Monopoly, in this game where you buy property, shares and businesses. As a simulation, you learn valuable lessons and gain priceless insights into personal finance, business and investing without having to put your actual money at risk. This tool will transform the "money mind-set" of anyone who plays, whether they are new to financial information, or seasoned investors.
<Yes we did win at Adrian’s last event & our strategy was saving first, speculating on the share market & then purchasing a block of units which was according to the card ‘cashflow positive’. Our occupation card was a ‘nurse’.
As we were on the way to the game we spoke to Don who has apparently has saved his employer by his estimates 1.5m that a project manager would have charged. Don commented that where he has been working is under two body corporates. The shop & business body corporate has not enough funds in its ‘sinking fund’ to pay for the necessary work required after the flood.
The day before Tony who owns a bedroom unit in Spring Hill commented he had taken over as chairman of his body corporate. As that body corporate also had insufficient sinking funds then each unit owner is being asked to front up with 13,000 for each of the next 3 months. i.e. $39,000. As owners have complained Tony said ‘sell or go bankrupt’.
The cashflow game might suggest that then is the time for you to purchase as a distressed seller’.
The game might suggest that purchasing these ‘cashflow positive’ properties that we hear advertised today might be an error.
They are only cashflow positive as the governments are subsiding with about $110,000 over 10 years.
We wonder if in any projections by the developer there is any mention of ‘sinking funds’. Don suggested that many developments use a generalized sinking fund projection & not one for the specific block.
What does funding sinking funds do to your cashflow?
We will bet that there is no tool for sinking funds on the regulators site. How useful is that when a huge percentage have been attracted to cashflow negative property!
We also read this week that about a quarter of baby boomers aged 55 to 59 still have mortgages.
We find this amazing & wonder at the banks’ lending the money. The Banks must expect the mortgagees to work to they are 80.
Will the regulator look at the advice banks have provided to these boomers. Everyone seriously needs to look at their ‘mindset’ & their cashflow.
Enough!
We offer you and or your family the opportunity to learn to play the cashflow game.
Lets learn what Richard defines as an asset. Lets learn about building assets & improve your passive income.
We run games here every 3rd Saturday of the month from 9.30am until lunchtime.
You are welcome to call on 3848 1088, email us or book on our website. John McAuliffe
Can you or the family play the cashflow game originally created by “Rich Dad Poor Dad’ i.e. Robert Kiyosaki. It certainly is very relevant to anyone wishing to escape the ‘rat race’.
In fact ‘escaping the rat race’ is the objective of the game.
Hence as we commented when teaching the quadratic formula ‘nothing is as practical as a good theory’.
We read that the regulator has created a site with 26 ‘tools’ to help with the ‘National Financial Literacy Strategy’. Of course this won’t be advice as only advisers can give advice & who wants to give you advice. Remember the world’s oldest profession only gives ‘opinions’. Will this help you to ‘just do it’.
We will give you general advice now which is if you haven’t read ‘then Rich Dad Poor Dad’ do so today. Certainly when your children’s’ birthdays comes up we would strongly suggest buy them the book. If your son is engaged then buy the ‘bride’ the book. If you have read it then it is time to read it again. In fact we had Ashley who stated he didn’t put it down until he finished so it won’t take you long.
On reflection ‘MySchool’ should have a completed survey & statistics on who has read it. Maybe a copy should be delivered with the census papers shortly with a self assessment test included.
This is the general advice we have been giving since we first read the book 17 years ago. When you have finished that then our personal theme book also from Robert is his ‘The Cashflow Quadrant.’
Hence we are offering you and or your children the opportunity to play here The Cashflow 101 game created by Robert a decade ago. As above the objective of the game is to ‘escape the rat race’.
How do you know you have achieved this objective. The game is won by their definition when your passive income exceeds your expenses.
To quote Adrian who has also been running cashflow games.
‘You will experience the famous Cashflow 101 board game invented by Robert Kiyosaki, the NY Bestselling author of the Rich Dad series of books. Generate some financial insights that may be holding you back and get a money mindset shift.
CASHFLOW 101 is a simple yet profound educational board game that simulates real life financial strategies and situations. Similar to Monopoly, in this game where you buy property, shares and businesses. As a simulation, you learn valuable lessons and gain priceless insights into personal finance, business and investing without having to put your actual money at risk. This tool will transform the "money mind-set" of anyone who plays, whether they are new to financial information, or seasoned investors.
<Yes we did win at Adrian’s last event & our strategy was saving first, speculating on the share market & then purchasing a block of units which was according to the card ‘cashflow positive’. Our occupation card was a ‘nurse’.
As we were on the way to the game we spoke to Don who has apparently has saved his employer by his estimates 1.5m that a project manager would have charged. Don commented that where he has been working is under two body corporates. The shop & business body corporate has not enough funds in its ‘sinking fund’ to pay for the necessary work required after the flood.
The day before Tony who owns a bedroom unit in Spring Hill commented he had taken over as chairman of his body corporate. As that body corporate also had insufficient sinking funds then each unit owner is being asked to front up with 13,000 for each of the next 3 months. i.e. $39,000. As owners have complained Tony said ‘sell or go bankrupt’.
The cashflow game might suggest that then is the time for you to purchase as a distressed seller’.
The game might suggest that purchasing these ‘cashflow positive’ properties that we hear advertised today might be an error.
They are only cashflow positive as the governments are subsiding with about $110,000 over 10 years.
We wonder if in any projections by the developer there is any mention of ‘sinking funds’. Don suggested that many developments use a generalized sinking fund projection & not one for the specific block.
What does funding sinking funds do to your cashflow?
We will bet that there is no tool for sinking funds on the regulators site. How useful is that when a huge percentage have been attracted to cashflow negative property!
We also read this week that about a quarter of baby boomers aged 55 to 59 still have mortgages.
We find this amazing & wonder at the banks’ lending the money. The Banks must expect the mortgagees to work to they are 80.
Will the regulator look at the advice banks have provided to these boomers. Everyone seriously needs to look at their ‘mindset’ & their cashflow.
Enough!
We offer you and or your family the opportunity to learn to play the cashflow game.
Lets learn what Richard defines as an asset. Lets learn about building assets & improve your passive income.
We run games here every 3rd Saturday of the month from 9.30am until lunchtime.
You are welcome to call on 3848 1088, email us or book on our website. John McAuliffe
an amazing result
Good morning all,
As you are all aware our VIP Launch for Residences at Chatswood occurred over the weekend.
In an absolutely amazing result we sold 280 of 293 apartments in just eight hours on the Saturday with unprecedented demand from local and overseas purchasers.
As of this morning we have sold the remaining twelve apartments and now just one penthouse remains.
The good news is that given the result over the weekend the launch of stage two, the Grand building, is likely to be earlier than the expected September 2011 release date. We will keep you informed as more information comes to hand.
Congratulations to those who ha clients successfully secure an apartment or apartments in the first stage.
Kind regards,
As you are all aware our VIP Launch for Residences at Chatswood occurred over the weekend.
In an absolutely amazing result we sold 280 of 293 apartments in just eight hours on the Saturday with unprecedented demand from local and overseas purchasers.
As of this morning we have sold the remaining twelve apartments and now just one penthouse remains.
The good news is that given the result over the weekend the launch of stage two, the Grand building, is likely to be earlier than the expected September 2011 release date. We will keep you informed as more information comes to hand.
Congratulations to those who ha clients successfully secure an apartment or apartments in the first stage.
Kind regards,
What do you do?
What do you do?
Clive has asked us to provide the WIFM, the What’s in it for you? Or what is also known as the ‘elevator Speech’. I.e. explain what we do in the time we are in the lift.
We read in the Courier Mail today Soaring house prices may spark mortgage crisis
And again today House prices 'too high for cops, teachers' | The Australian
then 30+ % of Australians have a serious financial challenge on their hands.
They are as the recent floods have shown only a week or two away from real financial stress.
Very simply the traditional approach flogged by banks, governments, real estate agents & mums is due to topple over.
What direction can you go when we also read this week Australian home prices the world's most overvalued: The Economist | The Australian
There needs to be another strategy to help you escape the ‘rat race’.
The average battler say the above teacher & cop might be on 80,000 say
His taxx is 17,550 which leaves 62,450.
His mortgage of say 350K @ 7.25% interest only say is 25,375
Which means the family lives on not much
i.e. 37,075 which is reflected on their credit cards as a 15,000+ Dr.
Thus the spouse needs to earn 20K+ gross to support the image that they want.
We can change all those numbers but the result is still the same.
There must be a better way & there is if there is a wish & 25% + equity & a savings capacity of $10 per day & time to do so.
I.e. there is a strategy to have ‘the taxx man subsidise the debt’ over time without reducing but defining lifestyle. As required by everyone from the client to the regulators there is full transparency.
We have been coaching clients & monthly monitoring their cashflow since 1994 & in financial services since 1984.
We believe that we ‘are Not your average financial planner’ as we have 27 years of financial wisdom & cynicism to offer you. As an ex math’s teacher we are keen to help solve your financial problem. E.g. Mal has children younger than his grandchildren.
We are here to coach those so that they don’t waste 15K to 100k in taxx, so that they do have the option to retire in their ‘fatigued fifties’ to travel to the ‘view of the world’ if they wish.
Remember you need 1,000,000 to have in capital outside the house if you are not to 'live like a refugee'
You are welcome to call on 07 3848 1088 or email or visit our websites for a free meal to ‘break bread’.
You are welcome to learn ‘the cashflow game’ which we also run.
John McAuliffe
Clive has asked us to provide the WIFM, the What’s in it for you? Or what is also known as the ‘elevator Speech’. I.e. explain what we do in the time we are in the lift.
We read in the Courier Mail today Soaring house prices may spark mortgage crisis
And again today House prices 'too high for cops, teachers' | The Australian
then 30+ % of Australians have a serious financial challenge on their hands.
They are as the recent floods have shown only a week or two away from real financial stress.
Very simply the traditional approach flogged by banks, governments, real estate agents & mums is due to topple over.
What direction can you go when we also read this week Australian home prices the world's most overvalued: The Economist | The Australian
There needs to be another strategy to help you escape the ‘rat race’.
The average battler say the above teacher & cop might be on 80,000 say
His taxx is 17,550 which leaves 62,450.
His mortgage of say 350K @ 7.25% interest only say is 25,375
Which means the family lives on not much
i.e. 37,075 which is reflected on their credit cards as a 15,000+ Dr.
Thus the spouse needs to earn 20K+ gross to support the image that they want.
We can change all those numbers but the result is still the same.
There must be a better way & there is if there is a wish & 25% + equity & a savings capacity of $10 per day & time to do so.
I.e. there is a strategy to have ‘the taxx man subsidise the debt’ over time without reducing but defining lifestyle. As required by everyone from the client to the regulators there is full transparency.
We have been coaching clients & monthly monitoring their cashflow since 1994 & in financial services since 1984.
We believe that we ‘are Not your average financial planner’ as we have 27 years of financial wisdom & cynicism to offer you. As an ex math’s teacher we are keen to help solve your financial problem. E.g. Mal has children younger than his grandchildren.
We are here to coach those so that they don’t waste 15K to 100k in taxx, so that they do have the option to retire in their ‘fatigued fifties’ to travel to the ‘view of the world’ if they wish.
Remember you need 1,000,000 to have in capital outside the house if you are not to 'live like a refugee'
You are welcome to call on 07 3848 1088 or email or visit our websites for a free meal to ‘break bread’.
You are welcome to learn ‘the cashflow game’ which we also run.
John McAuliffe