Latest / Money Grows on Trees / #254 - Financial Coach Reacts To WILD Australian Economic Predictions!

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#254 - Financial Coach Reacts To WILD Australian Economic Predictions! · Money Grows on Trees

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This is why you should sell your fucking house and go and
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So I understand this model implicitly. It's just that I've
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chosen not to buy property and leverage it. And rather than that, I rent
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where I live and I buy shares because there's tax effectiveness on the
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What will make this next crash significant is that because all
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of these retirement accounts, governments and other more serious
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entities are now invested, Once this crashes, this is going to
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The lessons haven't been learned. They're adopting rubbish into these retirement accounts
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and it's going to absolutely destroy returns in those pension funds and countries. The
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more it's adopted, the worse it's going to be. So I wholeheartedly agree with
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Hey, if you drive a paid off car, you're not driving a beater, you're driving a
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blessing. You do not realize how freeing not having a
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I 100% agree with that. It doesn't mean you have to drive a beater. It just
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means I'm Lloyd James Ross, seven figure investor and entrepreneur, and
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I've helped thousands of business owners and professionals turn financial stress
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into success. If you're stuck in old money habits, overwhelmed by
1:07
investing or unsure where to start, This is for you. I'll
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give you the mindset and strategies to take control, grow
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your wealth and achieve financial freedom. It's time to make your
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money work for you. All right, now for some fun, we do some
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fun reaction videos here. So, so
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it's gonna shoot me some, some reels. I'm gonna react to them, make
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So Lububu's is by a company called PopMart. They get these mystery boxes,
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you buy them. I don't know how much they are, over a hundred bucks a box, I'm not sure. And
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there's a line there at the shops and tons of people buying
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them. I'm like, oh, my nieces are starting to talk about them. We caught on to
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this trend a few months back. It's been going on in China for a while. I've watched the stock
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for a bit. What's interesting is this lady has bought and
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spent money on 20 Lububu's in a month. Alternatively, we
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went out and we bought the stock of the company that compares to the
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LaBooBoo's. So that's a little different way to play it. Would you prefer to own the company or
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the LaBooBoo's? on
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a Costco cart. These guys are slaying it. It's interesting,
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isn't it? The way that they set up their business is to make
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it addictive to buy the lebubu. And
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now it's a trend. And these trends can go on for a long time
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and create massive overvaluation in the company, which is why we put a very
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small amount into the business in China. So there you go. Bang. Fun.
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If you buy a house now, I am predicting you
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could lose as much as 50%, give or take, in
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Are you truly saying that people's homes are going to fall by
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US already fell, average home 34% in the
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Okay, so in America right now, without a
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doubt, almost all states are falling and they're falling fast and
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there's a housing oversupply. In America, it
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seems to be like it's going to be double, a
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double double digit fall, so it looks bad. And
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so I would say in the States, yes. In Australia, can't
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see it growing. Don't know if it'll collapse, unlikely because
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of the immigration policy, but if that comes off the ball and the demand is a lot less,
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then you could see some catch up of supply and we
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could see, depends if people don't want to hold the hot
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potato, it depends on a lot of things. It depends on the interest rate. Going up
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or down depends on the immigration policy and depends on supply. So
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those three things in Australia look pretty solid I don't think it'll crash here by 50% But
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in America without doubt it looks like it's going to happen here. We probably just won't see
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The Australian dollar has tanked. Our reporter Luca Itamardi looked into why
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and what this means both for your online shopping habit and your group chat's
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trip to Bali. So since US President Donald Trump announced his... Alright,
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This would have been a little bit of time ago because it's now recovered to 65 US
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cents per Australian dollar. And the reason for that is because
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the United States, it looks like they're going to reduce their federal fund
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rate. Donald Trump is pushing hard for
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Powell to reduce the rates right back down. That would be bad
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news for their currency. U.S. dollar would fall. The Australian currency against
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the U.S. would rise and probably go beyond 70 cents, up to maybe 75 cents
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per U.S. dollar if they drop rates in America. But
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it also depends on what we do with rates here. If we drop them here, we
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drop the value of the Australian dollar back down. So we'll see what happens. But this was done a
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Crypto is going to cause the next Great Depression and ruin the global economy.
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So Bitcoin recently broke all-time highs at over $120,000 per coin.
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And Trump is about to make it legal for people to invest their retirement accounts
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in crypto. Now, we're at the stage where even governments are
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investing into Bitcoin and other cryptocurrencies. And I believe
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we're about to head a whole lot higher. So some of you are going
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to become fabulously wealthy. but the vast majority of you
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What will make this next crash significant is that because all
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of these retirement accounts, governments, and other more serious
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entities are now invested, once this crashes, this is going to
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It's kind of what happened with the bond market in 2008. Banks
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were buying these toxic assets. these
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mortgage bonds that were just rubbish, and they were being packaged
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up and sent and bought by whole countries in sovereign wealth funds.
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And Iceland went broke, Ireland almost went broke, Spain
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almost went broke, Greece went broke, all these countries went broke. It was
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very bad. And you can see the same The
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lessons haven't been learned. They're adopting rubbish into these retirement accounts,
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and it's going to absolutely destroy returns in those pension funds and
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countries. And the more it's adopted, the worse it's going to
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I'm 35 years old, I'm sleeping on a mattress on the floor at
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my friend's place because it's impossible to get a rental, or
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it's way too expensive. And my only options are sleep in my
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car, sleep on the floor at my friend's house, or try
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and find a room in a share house if I can afford it, if
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there's any available. Knowing my luck, I'll end up with some fucking weirdos. How
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are those my only options? How are those the only options of many
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Australians right now? Before anyone says, you're 35, why
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don't you own a house? I did own a house in my 20s. I owned a
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house with my ex for six years. We bought it a good time in 2012. Then we
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split. He paid me out. It wasn't enough to then go
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and buy another property. So I think I'm just going to have to start applying for
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I wonder how much she got from when her former
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spouse bought her out. It would be interesting to know. You can
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only guess at this point. If they bought well, maybe
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they made $200,000 net out of it, I'm just guessing, minimum,
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and so maybe she got $100,000. Now, if she
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had invested that into some sort of high-yield index fund, it would have paid her about $7,000 a
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year, and that $7,000 a year would have helped to
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pay for some of her rent. I wonder now what she does for a
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living if she can't afford a single studio rental. On
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an income plus some investments, what did she do with the money? You
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could have bought a studio back then for that price or
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close to that price. Back then in Service Paradise, they were selling two,
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yeah, double studio or two-bed studios in the middle of service for
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$150,000. Now, banks don't lend on the small studios,
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but she could have borrowed the balance from her friend and bought a whole place there. So I
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do wonder what mistakes she made in the past that have now forced
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her to probably potentially live in her current 35. can
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happen, but it's easier when you're seeing it with our family. Imagine
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families. Just quickly, if you're ready to take control of your finances but
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I'm going to tell you this, my entire company, my entire team, if you don't have a six-pack, you don't work
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for us. No, I know. I know. It's
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How about we raise him? How about we raise him? How
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about we raise him? How about you guys quit getting civilized
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and you guys quit settling? You know, there's people in this room that said,
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It's funny, I saw Andy Elliott had lunch with some of his team when
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we were in Vegas earlier this year, and he was at the ClickFunnels event.
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And yeah, savage dude, has very high standards, obviously
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people's bodies. And what's interesting about that is how people treat their bodies
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is how they treat their bank accounts, how they treat, so it is about standards. That's why if
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you see someone who's in really good shape, they've got good discipline. and it's a very good
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way to spot what they're like in other things. Because as you do one thing, you do how
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you do one thing, how you do everything. So what he's saying is if we can't raise our
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standards in our six pack, how we raise our standards in our business, in our relationships. I
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agree with that. Am I all about the bro thing and the whole like,
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ah, I used to be more and I think I've mellowed. I think I've watched too
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much Goggins. So you don't have to be like brutal, but
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what it is is a great message to say, hey, raise your standards in your
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body, your bank account and your relationships. And I think that's a great message to
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This is why you should sell your fucking house and go
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and rent your home. So, the term rentvesting,
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here's how it works and here's why you should do it so
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you're less broke. Now, in this scenario, you're a single, you're
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a couple, you're whatever you are. you earn $200,000 a year. That
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could be two $100,000 salaries, that could be one $200,000 salaries, that
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could be you and your two partners earning $75,000 or
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whatever it is each. Now, you have a deposit of $200,000 in
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cash. You have two options.
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The most traditional option which is this side of the board is
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to use your $200,000 to go and buy a $1 million
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property, you get an $800,000 mortgage and you get
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a 30-year loan term. That loan cost
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you $58,000 out of pocket. The difference is
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You probably could still get a 5% rental yield somewhere. I dare
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say Jack finds those, but it is a bit trickier. Also,
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it's trickier because the interest rate is 5 point. For
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property investment, it could be even 6%, certainly late 5. If
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you're getting a rental yield of 5, but the interest rate is higher, it's
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costing you more in interest to have the property. I know it's a
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little bit less because of the deposit. So, you're probably going to find that
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property investment is negatively geared in cash flow. You do get some tax deductions
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from that but you can without a doubt rent in a place and
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buy in a place that's going to be more bullish on the growth and there are more tax
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incentives if you've got a high income and not a lot of tax deductions. So, I
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understand this model implicitly. It's
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just that I've chosen not to buy a property and leverage it and rather than
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that, I rent where I live and I buy shares because there's tax effectiveness on
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the dividend income, no operating costs. And I think it's
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more simple. So I've actually adopted this thinking into
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my own personal finances, but not with property, with shares. But
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I can, without a doubt, understand what he's trying to say here, and he does it in a fun way. I
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don't think getting a big personal mortgage for your
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PPR is a good idea. Yeah, for that reason as well. I agree. Fun
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Are the boo-boos an economic indicator for a recession? Besides being super,
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super cute, the rise actually ties into a larger pattern, how consumers
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adjust their spending in uncertain times. In economics, this is called the
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lipstick effect. It basically says that during a recession or an economic slowdown,
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people just stop buying big luxury items like cars, designer
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bags, or vacations, but they don't stop spending altogether. Instead,
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it shifts into smaller luxuries, emotional purchases, Tiny
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treats that feel special without feeling reckless. Like the $20 strawberries
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from Erewhon. You guys know exactly what I'm talking about. Or in this case,
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a little bit of boo. These dolls hit the sweet spot. It's just indulgent enough
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to feel like a luxury, but not so expensive that it triggers guilt. And
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when people feel financially anxious, they downsize their luxuries and not their
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desire for comfort. And if you really want to spiral, there's also rising tariffs
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on imports from China, as you guys already know. So yes, people are stocking
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up on all sorts of blind boxes, and this is just one of them. So
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yeah, this might be a toy, but it's also a micro-reflection of how we're coping with
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Yeah, so they're getting their dopamine hit, not from travel, not from planes. The lipstick
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effect, never heard of that before, but they're getting Lebooboos. But I think
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it's deeper than that. I actually don't think they're choosing to get Lebooboos. I
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think they're seduced into getting Lebooboos because of the company's marketing. Very
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powerful tactics in mystery boxes. A
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lot of FOMO and social proof there of other people buying
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them. And the way that PopMart's marketed these things is
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like incredible. That's why its stock has 10x in the last... I
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mean, it's actually up 645% in the last 12 months, I think. So
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you can see their marketing tactics are also hitting people at every level
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of the economy. It's not just the wealthy, it's everybody, because everybody
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can afford a mystery box. And it's actually playing on not
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just the lipstick effect of retail therapy at a different economy, speed
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of economy, but it's also actually triggering them to want
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to buy more of them over and over and over again. So I think it's a combination of
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things that's forcing this la-boo-boo craze. And it
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Hey, if you drive a paid off car, you're not driving a beater, you're driving a
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blessing, okay? Now I get it, you're looking at all your friends, they've upgraded
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their cars, they've got the 2024 edition automatic lane
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switching or whatever, but I'm telling you, comparison is the
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thief of joy. You do not realize how freeing not having
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My dad says that a paid off car drives better. What's
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funny about that is that, yeah, we, It
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does. Like I walk towards our car and it's debt free and it just feels so
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good knowing that it's debt free. And it can
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just completely destroy you mentally if you keep having to
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pay a car payment. You feel like you're driving a borrowed car. It's
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a weird thing. And I 100% agree with that. It doesn't mean you
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have to drive a beater. It just means pay the
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car off as fast as you can, if you can, and
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make sure you're not over-egging the car you get so you can keep up with
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your friends. It's just so much more freeing
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to have a paid-off car than to fit in with your friends. It
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really is. And a lot of the people who have cars that are
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that seem to be really nice have borrowed the money to get them. There's a great saying by
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Warren Buffett, you never know who's swimming naked until the tide goes out. We haven't seen the tide go
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out really since 2008. When there's a big market
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panic and a credit crunch and a lot of unemployment, you're
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going to see a lot of people selling their cars because they
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actually don't own them. I agree with that. It's a really good idea to
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drive a paid off car and over time have a paid off house for
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sure. All right, so there are the reactions. Hope you enjoyed those. Today,
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not so many controversial ones, which is good. I agree with a lot
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of those people. So yeah, be careful of how many Loubooboos you're buying.
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Hope you enjoyed it. See you in the next one. Thanks for listening to Money Grows on Trees.
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