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The billionaire habit you need to develop · The Front

• 0:05
  Speaker 1: From The Australian. Here's what's on the front. I'm Claire Harvey.
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  Speaker 1: It's Friday, August one, twenty twenty five. Foreign agents want
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  Speaker 1: Australia's secrets and it's costing US billions. Spy chief Mike
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  Speaker 1: Burgess says espionage threats have hit an all time high
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  Speaker 1: as foreign intelligence services try to get their hands on
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  Speaker 1: the details of the orcust military Pact. The Vaticans Order
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  Speaker 1: to General has revealed a four million dollar fraud inside
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  Speaker 1: the Holy See. Liberal Maloney tells The Australian Today he
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  Speaker 1: needs to get in front of Pope Leo as soon
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  Speaker 1: as possible to share his concerns about alleged corruption of
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  Speaker 1: the highest order. Those stories alive right now at the
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  Speaker 1: Australian dot Com dot A Billionaires have secrets, and not
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  Speaker 1: the kind you think. It's about exactly how they spend
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  Speaker 1: their money, even once they have more money than God,
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  Speaker 1: and what they do with any extra that comes in.
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  Speaker 1: That's one of the insights from The Australian's new Wealth section.
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  Speaker 1: It's packed with insights and yarns from our team of experts. Today,
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  Speaker 1: Wealth editor Julianne Sprague reveals how the rich made their
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  Speaker 1: millions and what she does with her money. Henry, what
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  Speaker 1: does that stand for?
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  Speaker 2: Hi erna? Not rich yet?
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  Speaker 1: This is Julianne Sprague. She's Wealth editor here at The Australian,
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  Speaker 1: and she's spent a career reporting on how the rich
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  Speaker 1: make their money and what the rest of us probably
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  Speaker 1: aren't doing.
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  Speaker 2: And this is where you're sort of building your career.
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  Speaker 2: Your a few job promotions, in salaries, going up, earning
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  Speaker 2: solid money. You're out of your university days. Do you remember, Claire,
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  Speaker 2: when you just you could exist of twenty centsuls?
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  Speaker 1: I just I ate a lot of two minute noodles.
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  Speaker 2: I remember having to buy. I bought a can of
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  Speaker 2: soup and a baguette. This is when I was living
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  Speaker 2: in London. But I could make that stretch for two meals,
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  Speaker 2: like a can of soup, half a bit of bread.
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  Speaker 2: And so this is the problem, right, The more you earn,
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  Speaker 2: the more you spent.
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  Speaker 1: Julian's all over the acronyms that tell us how Australians
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  Speaker 1: are feeling about their money right now. Like Emily spelled Emili,
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  Speaker 1: it's short for everyday millionaire and they are estimated to
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  Speaker 1: be about two million off the MI in Australia people
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  Speaker 1: who are worth a million and the average wealth of
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  Speaker 1: an Australian adult is eight hundred thousand. But let's be honest,
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  Speaker 1: not many of us feel rich.
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  Speaker 2: It used to be if you were a millionaire, it
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  Speaker 2: used to be that term you threw around to say
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  Speaker 2: that you were really rich. You're a millionaire as they're
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  Speaker 2: splashing around. It's fancy cars and you're living the high life.
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  Speaker 2: Whereas now a lot of people are millionaires and you
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  Speaker 2: don't feel like you're living the high life. Actually it
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  Speaker 2: feels like you're doing it really tough to try and
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  Speaker 2: make ends meet. And so the reason that more of
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  Speaker 2: us are Emily's everyday millionaires is because property prices are
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  Speaker 2: so high and we have an overwhelming amount of wealth
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  Speaker 2: tied up in either the family home or maybe it's
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  Speaker 2: investment properties. So it's at our old cash as an
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  Speaker 2: asset rich cash poor.
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  Speaker 1: A good example is Joey Croke. He's twenty six and
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  Speaker 1: has seven investment properties. His stories in the Wealth section today.
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  Speaker 2: And his journey is really interesting because it started with
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  Speaker 2: a loss. He actually started doing share market investing in
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  Speaker 2: his teen years, which I don't know about you clever
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  Speaker 2: as a teenager. I was not thinking about the share market,
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  Speaker 2: but he sort of dabbled. He bought some different stocks
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  Speaker 2: and then things went terribly wrong. His stockbroker went bust
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  Speaker 2: or actually lost quite a bit of money that would
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  Speaker 2: have probably sent me packing. He decided to save up
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  Speaker 2: quite a bit more money. He saved money for his
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  Speaker 2: first deposit. Eventually got money back from this broker, so
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  Speaker 2: it didn't all go up in smoke, but around fifty
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  Speaker 2: grand did bought his first property and then got equity,
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  Speaker 2: and then decided this is what he wanted to do.
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  Speaker 2: And so he's built the portfolio by looking at regional property.
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  Speaker 2: So he hasn't decided that he wants to be in
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  Speaker 2: a Sydney and spend two million dollars on our house.
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  Speaker 2: So he does make the point that he's driving a
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  Speaker 2: pretty old beat up car. His friend's going to music festivals.
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  Speaker 2: He has said no to different things. He really has
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  Speaker 2: sort of knuckled down to do this. It's pretty inspiring.
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  Speaker 1: You went and asked some of Australia's most wealthy people
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  Speaker 1: how they did it and what their advice would be
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  Speaker 1: for other people, and I was intrigued that their advice
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  Speaker 1: was kind of the stuff that my grandma was telling
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  Speaker 1: me back when I was at UNI, although I don't
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  Speaker 1: think I was listening.
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  Speaker 2: I was thinking about different stories that might be good
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  Speaker 2: to do when we launched this new section, and I thought, well,
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  Speaker 2: I know rich listers very well and I really appreciate
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  Speaker 2: their insights. Sometimes billionaires can think little bit differently, and
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  Speaker 2: I was thinking, well, they're rich for a reason. And
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  Speaker 2: then I think, on about the fourth interview, I was
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  Speaker 2: just thinking, this is absolutely blowing my line, the simplicity
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  Speaker 2: of it, but also how similar it was. I was
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  Speaker 2: probably thinking there'd be some profound investment strategy. But I
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  Speaker 2: spoke to a well known property developer. He was north
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  Speaker 2: of five hundred million dollars, Nigel Sadley, and he just says, Julianne,
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  Speaker 2: it's simple. You do a budget. And I said, okay, okay,
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  Speaker 2: but I'm talking about like us Mere mortals. What can
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  Speaker 2: we be doing? What did you do in the early days.
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  Speaker 2: It's like budget. You have to know what's coming in
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  Speaker 2: and what's coming out. And I still do it. And
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  Speaker 2: then Tony Walls, who's a billionaire in control of a
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  Speaker 2: software company called Objective Corp, told me that he reports
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  Speaker 2: to himself monthly he has his budgets, and he hasn't
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  Speaker 2: said and he reports back to himself. And I did
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  Speaker 2: want to know what happens if he misses budgets. Is
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  Speaker 2: there a big stern discussion, what does he call himself?
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  Speaker 2: And then one after another they all sort of said
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  Speaker 2: this is what they they do. I think sometimes what
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  Speaker 2: it is it's simple, But often we don't do the
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  Speaker 2: simple things. We know we should have more fritten vegetables
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  Speaker 2: in our diet, we know we should exercise more, and
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  Speaker 2: I think with finances it's probably a bit similar. There's
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  Speaker 2: actually no sort of silver bullet or some sort of
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  Speaker 2: magic strategy. There's actually the simple things.
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  Speaker 1: Something else the rich people have been telling you in
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  Speaker 1: the first stories in our well section is about what
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  Speaker 1: they would do if they had fifty thousand dollars now
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  Speaker 1: and they were just starting out, And a couple of
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  Speaker 1: them have said, I'd go and invest in property. But
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  Speaker 1: the thing that struck me about both that and about
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  Speaker 1: their suggestion about doing a budget is that I think
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  Speaker 1: there are lots of people who are doing a budget.
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  Speaker 1: They're very careful about what they spend. They might have
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  Speaker 1: fifty thousand dollars saved up but they can't get into
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  Speaker 1: the property market. So you're covering wealth, and you've been
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  Speaker 1: covering it for a long time, but now is a
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  Speaker 1: moment when times are really tough. It is really hard
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  Speaker 1: to get ahead. Do you hear that frustration in the
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  Speaker 1: kind of ordinary people who you talk to about money,
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  Speaker 1: your friends down at the shops.
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  Speaker 2: Definitely, But it does feel incredibly challenging. It feels almost
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  Speaker 2: out of reach, and some of this investing narrative feels
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  Speaker 2: almost intimidating. I think the point they're making those if
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  Speaker 2: you've got fifty thousand dollars, find your way into the
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  Speaker 2: market somewhere, so maybe that is an apartment. You don't
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  Speaker 2: have to be investing where you want to end up,
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  Speaker 2: so start smaller, and they make the point that you've
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  Speaker 2: got to get started. So I think the issue is
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  Speaker 2: that you can sometimes procrastinate or you wait for markets
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  Speaker 2: to turn you just keep waiting. So their view is
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  Speaker 2: you get in and you do the best you can
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  Speaker 2: with where you can get in, and you let the
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  Speaker 2: benefit of time help you. It was shawn by a
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  Speaker 2: from the Precision Group who makes the point that sometimes
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  Speaker 2: people wait for things to be perfect, or they have
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  Speaker 2: an idea or you're waiting when sometimes the best plans
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  Speaker 2: don't necessarily have to be the perfect ones. You just
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  Speaker 2: have to start doing something.
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  Speaker 1: Coming up. So how does Juliet and spend and save
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  Speaker 1: her money? This is just a taste of The Australian's
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  Speaker 1: new wealth offering. Check it out at the Australian dot
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  Speaker 1: com dot auslash wealth and we'll be back after the break.
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  Speaker 1: What have you learned in your career as a wealth
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  Speaker 1: journal that you applied in your own life?
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  Speaker 2: Is this the part where I tell you that I'm
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  Speaker 2: the mechanic with the broken down car and the plumber
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  Speaker 2: with the leaky pipe. The problem with being a journalist
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  Speaker 2: is you can get a little overly cautious because for
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  Speaker 2: every rich listor you write about, you're also writing about
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  Speaker 2: people who have blown themselves up or stocks that have
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  Speaker 2: plummeted back down to earth, and that it can make
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  Speaker 2: you a little bit cautious. But there are things that
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  Speaker 2: I have definitely learned, and it has been mostly from
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  Speaker 2: those entrepreneurs or people who really just get out there
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  Speaker 2: and they just kick these goals. But it goes back
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  Speaker 2: to that earlier point I was making that they often
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  Speaker 2: do the things that aren't sexy and exciting. So when
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  Speaker 2: you think about budgeting, appreciate you say that a lot
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  Speaker 2: lot of people will be running a household budget. But
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  Speaker 2: I think that they do it to a granular detail,
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  Speaker 2: and I think that they do it no matter what.
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  Speaker 2: They don't let life get in the way. They also
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  Speaker 2: take some risk. I will point that out. It's not
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  Speaker 2: silly risk. They're curious, they read, they're educated enough, but
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  Speaker 2: they also just take the pump. They do, put themselves
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  Speaker 2: out there, and they let their money go work for them.
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  Speaker 2: Which is why I'm not a richly stuck clare because
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  Speaker 2: I've done one of those things.
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  Speaker 1: Well, we're much better off having you writing about them
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  Speaker 1: rather than being one of them, Jazz, because you're really
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  Speaker 1: good at it.
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  Speaker 2: We want to help more people feel more financially secure,
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  Speaker 2: get a bit more financially independent. So you might have
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  Speaker 2: your assets in property, but what else should you be
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  Speaker 2: looking at. Should you diversify your investments, should you be
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  Speaker 2: looking at share portfolios. Maybe you want to have another
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  Speaker 2: investment property, or you want to work out how the
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  Speaker 2: joey Croaks of the world can have seven and make
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  Speaker 2: it work. So we're doing a lot of work in
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  Speaker 2: this new vertical to try and give people the information
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  Speaker 2: so you can make more confident decisions. I would say
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  Speaker 2: just get on top of it.
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  Speaker 1: Julian Sprague is The Australian's Wealth editor. You can check
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  Speaker 1: out the section anytime at the Australian dot com dot
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  Speaker 1: a U slash Wealth