Latest / Money Grows on Trees / #335 - Can You Really Thrive in Today’s Economy?

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#335 - Can You Really Thrive in Today’s Economy? · Money Grows on Trees

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All right, now we do reactions where I look at a reel and I react. And in
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this episode, I give you some really detailed education around
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some of these reels so that you're not just left hopeless, but you understand that there's
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They earn the money, we take some. They spend the money, we take some.
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And if they buy a property, we'll take some. But if they sell the property, we'll still
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take some. Now, if they invest their money wisely and grow it, we'll take some.
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If they invest their money poorly and lose it, I wish we could help. And if
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they want to get a tiny bit of enjoyment in their miserable lives with cigarettes or
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alcohol, we'll take even more. Now, the more money they make, the more
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money we take, unless they make a lot of money or they're friends of ours, in
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which case we take none. And then once a year, even though we know exactly
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how much they should have paid, they need to figure it out for themselves and let
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You know what's really interesting? Is that this government we've got in place now just
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adds more taxes, but what is fascinating is bracket creep on
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these things. So it's, Everything is
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crept forward from inflation, but the goalposts haven't moved. So
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you're progressively getting more taxed than ever based on just
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bracket creep. But then there's new taxes coming in. I mean, there's some new taxes
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coming in today's budget that will be like, hey, goodbye to
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the 50% CGT subsidy. It's just gone. And
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so I think it's what's fascinating late. It's called labor nomics and
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that this particular government's been the most tax-heavy of any
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Government and it's getting worse and worse and worse. We still have two more years of
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this rubbish So yeah, they tax you tax you tax you the taxi and then
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Hey, yeah. Okay. Well, I'm gonna need to ask for a pay rise at work then What?
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No pay rise? Well, you're not my boss. No, but I'll make debt more
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expensive which hurts the businesses which makes them less likely to give
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you the pay rise. In fact, they'll probably be more likely to give you the sack.
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That's pretty f***ed up. And because the debt's more expensive, mortgages cost more,
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rents go up so people like you don't have as much money to spend on the now expensive
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What's the goal here? To make things cheaper? No, things should still get more expensive just
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not quite as fast. This is super f***ed up.
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Listen, to make an omelette, you have to break a few million
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eggs. Am I one of the eggs? I don't know you, but
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yes. The question is like a big omelette. It has to
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The reason why this is happening is because spending is out of control caused by government
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spending on non-productive projects. Mass
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immigration and if they want to shift this and change it and drop inflation, they've
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got to drop those two things But they're not going to For whatever reason
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I don't know what the objective is. I don't know what their priorities are. I don't know It doesn't
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make any sense. So this is why people are confused like this because like why no
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one can understand That's why you've seen the rise of one nation who are like actually we
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You wanna know something that I can't fucking stand? I cannot stand when a broke-ass bitch
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says something stupid like, in this economy, you're gonna
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charge that much? In this economy, you're gonna expect other
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people to pay that? In this economy? Yeah, motherfucker. In this economy.
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Like, newsflash, not every fucking person in the world is broke. Not
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every person is a victim to their circumstances. Not everybody is
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committed to being broke. Like, I will never fucking understand.
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And like, just because you're broke, you think everybody in the world should cater
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Oh, boom. What's really interesting about this is there's a
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lot of money around and people have a lot of money. And so, yeah,
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when people often say to I'm broke, they might have
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50 to 100K just cash in their account. I've seen that before. In their mind,
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they think they're broke or they're not making millions, but they're not really broke. So
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you can't, and by the way, even if people, I've also
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seen people who have no money, need something so badly, they'll
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conjure it up, they'll find the money. they go off and so broke
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is a mindset it's not a specific
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bank account balance that's what I've noticed and so she's 100% correct
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in this economy there are wealthy people and there are broke people because it's a mindset not
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an activity or not a bank balance hello you've hiked interest rates again
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we're a bank Chris are you being dicks well the vote was 5-4 Chris
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No, no, why have you hiked interest rates when the rest of
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the world are either holding or even cutting? Well, inflation. OK,
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and I speak for the entire world. What is that? Well, things
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get more expensive over time so the same money buys you less stuff. That
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was actually quite concise. Why is Australia different? Well, we're an island,
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Chris, and a continent, actually, as well. No, why
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are we hiking rates? Inflationary pressures. Right, and what are the pressures? Well,
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they're inflationary ones, Chris. Yes, but what are they? A range of local and
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global factors. Such as the war in the Middle East? Oh yes, but also no.
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Three things. One, government spending on
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non-productive projects like NDIS that's not producing an ROI back
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on the spend. Two, mass immigration, bringing more
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people, higher demand for goods and services, including housing, which has massively increased
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inflation. And also the recent oil price spike
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because we don't manufacture and refine our own oil. And
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so, I should say drill and refine our own oil. So that's
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what's exacerbating the inflation pressures here. We
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haven't increased interest rates fast enough. That's why they have to do this now.
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And that's why they're doing it to curb inflation. They're going to crash property to save
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Here we go again. As we gear up for the end of the financial year,
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tonight I can reveal the craziest claims Aussies tried
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to sneak past the tax office. One taxpayer tried to
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claim $17,000 for baby clothes and medical bills. Another
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racked up $37,000 in work expenses that
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included kids clothes, body wash and perfume. One
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even tried to claim a $20,000 donation to their own family.
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All knocked back. When it comes to work deductions, three golden
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rules apply. You paid for it, it's directly related to
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earning your income, and you've got proof. But starting
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July 1, you might be able to throw them away. The
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government's planning for a $1,000 instant tax deduction where
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Well, everyone's gonna take that on board. That's more like a subsidy. It's just like, hey,
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here's a thousand bucks or not that, here's a thousand dollar deduction. So
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depending on your tax rate, it could be 300 bucks, 400 bucks back
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in your pocket. What is interesting is if you don't have an ABN
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or you're not self-employed, it is effective and worthwhile to be
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self-employed because if you have an ABN, you're going
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to be able to deduct certain things that you're spending money on like a phone, like
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laptop, if you're earning money outside your job. And so there's more tax deductions associated
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with Being an Australian business number only yourself or having
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a company where you are generating some sort of income outside your job Which
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is why I'm such a big proponent of home-based businesses if you don't have one is to
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get one Because the tax deductions that are available to you beyond that
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are just way better and they're all legal and there's a new The
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government's putting in a permanent $20,000 instant deduction for
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equipment for your business So there are more than just
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the thousand to get if you understand what you're doing so if you don't have a good accountant get
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one in a hurry so you can actually claim more than just a thousand and Just quickly, if
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you're ready to take control of your finances but feel stuck on where to start,
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I have a solution. My book, Money Buys Happiness, simplifies
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investing and wealth building with practical steps to help you achieve financial
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peace. Get your copy via the link in the show notes and let's get your
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You said there's been $114 billion of savings across
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your budgets. Is that net savings or gross savings? She
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Well, it's savings and reprioritising. So we're saving
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Essentially, I have no idea what I'm talking about. It's what she's saying because she's out of a depth. She's
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in the wrong role. She ought to be sacked incompetent This
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she this woman is the reason why I got out of corporate because if you go to corporate and
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I know in in the government It's worse. You just get morons like
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there's no other way to explain that she doesn't know what she's talking
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about How do these people make their way to these
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positions? I don't understand. She should be embarrassed, ashamed
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of herself. Awful. Sack her, sack her, sack
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You're not imagining it. You are being punished for trying to
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get ahead. Here's the proof. Let's walk through your life
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in Australia. You get a job, income tax, Medicare levy,
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go before you see it. You buy a car, stamp duty, registration fees,
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luxury car tax if it's over $80,000. And that's
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You save for a house, you fi- Is this why having one car is better than two?
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buy one stamp duty in sydney that could be forty thousand
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dollars or more just for the privilege of buying you own the house counts
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never to be seen again all right every she didn't even include lmi
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which is another cost emergency services operating costs of
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the property insurance taxes on top of your premium every
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year You get a pay rise? Congratulations, you've jumped it to a
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new tax bracket. They take more. You start a side hustle, GST,
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BAS, company tax, payroll tax if you grow. Now, if
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you're smart and it's the right structure, you can offset legitimate
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expenses. That's one of the few ways the system actually works
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in your favor, but most people don't know that. You invest to
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build wealth, capital gains tax when you sell, dividend taxes along
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The way to get through this is if you have a company, if
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the company is earning at least 20% of its income from
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sources outside passive investments, it will be taxed at
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25%. So that's actually a very reasonable tax rate. Then if
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you're buying shares inside that company and you're buying
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Australian shares that have got fully frank dividends Then you're
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actually paying no tax on the income from those shares
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And if you don't sell them because they're good quality businesses There is no CGT
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to pay because you aren't selling them So there are unique ways to
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structure your investments and your wealth building so that you are
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mitigating a lot of these issues you're experiencing with tax and with property and
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that's exactly what I've done and that's why I think I'd encourage you to have a conversation about
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your account about how to do that because you don't have to buy a property.
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You don't have to get CGT hits. You don't have to pay tax on
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income if you're buying the right assets. This is why education is
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so important so that when Martine does rules
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like this, you actually have a solution to it. Otherwise, we're
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just here telling you it's hopeless, but it's not hopeless. You just get
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educated, have a good accountant, structure yourself accordingly, and
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You withdraw cash in Australia, the banks want to know why, so let's go tell them
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the truth. How much? Around $6,000. What is it for?
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My missus thinks I cheated on her last week. She's doing my f***ing head in, so I
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need to, like, give her some cash and a necklace. She doesn't like flowers, she just
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I've got to go to a beauty salon to bleach my arse off. Yeah, there we go. Because there's a
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bleaching package. Yeah, they say it can make it up to three shades lighter. Drugs.
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The devil's lettuce, you would know. So
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people are irritated because when they go into the bank and they want to withdraw
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certain amount of money They get asked these questions now The reason
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why this is happening is because once upon a time there
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was an anti money laundering trigger that when you move
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$10,000 around either extracted it moved it Sent
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to another account it would trigger anti money laundering like
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KYC know your client vetting
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questions, which is what they're doing. Now back in
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the day, 10,000 was a lot of money. But now because of
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inflation, it's actually like bracket creep. And that's why they've
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got these stupid questions on small amounts of capital, because they
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haven't changed the legislation on the anti-money laundering amounts, because
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they haven't got around to it. But that's why that's happening. And it's annoying
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as hell, but they just need to address that very quickly and make it 20 or 30 or 40 or 50,000, because For
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six, it's ridiculous. Like banks, people
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get sick of this very quickly. I think this will be a good policy to have in
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the next government's policies in the election. All right, that
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was it. Hope you enjoyed those reels. My reactions to them, some were funny, some were serious.
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But I mean, sometimes all you can do is be cheerful
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in the face of adversity, which is what that's all about. But hopefully I gave
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you some education there for you to think clearly about what you can do to get around