Latest / Money Grows on Trees / #266 - Reacting to Crazy Trending Financial Advice

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#266 - Reacting to Crazy Trending Financial Advice · Money Grows on Trees

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  Shout out to my girl, Michelle Bullock, who's just cut the interest rate
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  to 3.6%, which is a positive thing.
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  Excuse me, sir. Is this your Bugatti? Were you a
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  Most entrepreneurs didn't do that well at school because entrepreneurs don't follow rules.
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  Here's the main thing that I learned as someone who grew up poor who is now
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  dating and living with someone who grew up with money. There is one concept that you have to
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  I can't wait to financially afford who I truly am. Current
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  me is out here googling can I mix body wash and
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  Oh my God, I can't believe you're gonna use mixed shampoo. Get
• 0:46
  a new job, get a new skill, start a side hustle, start working
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  weekends. Wealthy people have businesses and assets.
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  Definitely not crypto. I'm Lloyd James Ross, seven-figure investor and
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  entrepreneur and I've helped thousands of business owners and professionals turn
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  financial stress into success. If you're stuck in old money
• 1:06
  habits, overwhelmed by investing or unsure where to start, this
• 1:09
  is for you. I'll give you the mindset and strategies to take control,
• 1:13
  grow your wealth and achieve financial freedom. It's time to
• 1:17
  make your money work for you. All right, now it's time for some fun. Here
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  we're gonna do some reactions. And reactions are great, because you
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  never know what's around the corner when you click this button and the reel pops up.
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  So buckle up, enjoy, have fun. Let's see what the first one is
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  Shout out to my girl, Michelle Bullock, who's just cut the interest rate.
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  from 3.85% to 3.6% in layman's
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  terms. That means the RBA has just cut rates, which is a
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  positive thing for borrowers and the property market as
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  Is it a positive thing? I don't know because when they cut it, inflation went
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  up. If inflation gets out of the control, they're going to have to put rates way up. It's going to
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  be bad for property investors. But of course, property investors and people in
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  the property sector, they need rates to go down for the property
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  bubble to continue. So it's not ideal. It's
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  a little bit of relief for those that have a mortgage, but
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  at the same time, it's not good for inflation. So obviously, to
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  the man with the hammer, every problem looks like a nail. But when I see people
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  doing dances on TikTok, not suggesting that
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  Jack's doing that, but if we're celebrating a small
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  25 basis point cut, come on, it's crazy. And
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  I think it's going to go up and on hold because inflation just went way
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  up this week. So let's see. Here we go, next one.
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  I'm here in the studio, I just finished doing a podcast, and of course, the first thing
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  I looked at was the RBA's decision of 231. That the
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  They are great. Everyone's so happy. Even Mark, he's like, I
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  saw Mark do a dance actually when they did a cut recently as well. He's like, oh, quarter rate.
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  The same thing when you read what the RBA had to say around the
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  rate reduction. They keep talking about uncertainty. Uncertainty
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  in terms of whether or not inflation's gonna go up or down for
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  Well, there's no uncertainty anymore, is there? Because inflation went way up. So
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  that's why they're probably not going to keep cutting rates, I'd imagine. If they do,
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  I mean, they're just going to create stagflation. It's going to be pretty bad. But
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  it's right on everyone's, like it's, Mark Boris is talking about this too.
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  So at least he's like, inflation may raise
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  its head and it has. So there you go. This RBA rate
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  cuts, so popular. It's a big thing. Let's
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  Here's the main thing that I learned as someone who grew up poor who is now
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  dating and living with someone who grew up with money. I've said it before and I'll say it again,
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  investing is not for the rich, it's how you get rich because rich people don't work for
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  Don't wait until you're rich to invest. Invest now
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  There is one concept that you have to familiarize yourself with and it is compounding interest.
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  Well, there's probably two concepts. Underspend your income and
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  then invest in assets that do compound over time. Because people
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  go on about compound interest but most people don't have enough money to even start. So you
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  can start with like as little as a hundred bucks You've got to invest in assets and
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  let the assets grow over time and not touch it. So it requires more than one concept. It
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  requires understanding compound effect. It requires you to underspend your
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  income, which is managing your ego. And it also requires you to
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  have discipline to leave it in place. So there's probably three things you need to do that.
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  I can't wait to financially afford who I truly am. Because
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  this, you know, this is the budget version of me right now. I'm
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  not actually so casual and laid-back, I'm just... Undefunded.
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  From my vision. From my dream lifestyle. costs
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  a lot of money that i don't currently have you know i'll
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  be waking up at 9 a.m have a cappuccino on my balcony overlooking
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  the sea you know work out shower it's pretty good
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  but in reality i'm waking up in fear you know i'm having water
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  and i'm spraying you know vaguely citrus
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  scented body spray from like the seventh grade The person
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  I truly am has a skincare routine and separate
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  outfits for boat and lunch. Current
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  me is out here googling, can I mix body wash and
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  That's pretty brutal. I mean, yeah, maybe there are
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  people living like that and that's definitely not who you can truly
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  become. Yeah, if
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  this guy's telling the truth and he's probably not, because he's got a lot of followers, he's probably
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  living his ideal life actually. He's pretty funny though. Yeah,
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  if you're mixing your shampoo to save money, then you need to
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  get more income straight up. And income is
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  your greatest wealth building tool, which means get a new job, get
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  a new skill, start a side hustle, start working weekends, get
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  after it. Oh my God, I can't believe you're gonna use mixed shampoo to
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  save money. If it's that bad, you need to work more. I
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  don't know what you've been doing. not working or
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  you're undervaluing yourself. So it's time for you to become truly who
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  you are financially by increasing your income. Just quickly, if you're ready
• 6:03
  to take control of your finances but feel stuck on where to start, I
• 6:06
  have a solution. My book, Money Bias Happiness, simplifies
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  investing and wealth building with practical steps to help you achieve financial
• 6:14
  peace. Get your copy via the link in the show notes and let's get your
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  Sir, is this your Bugatti? And what did
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  you do to be able to afford a Bugatti? One second. We have one of the biggest media
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  channels in the entire world. We grew a channel to 10 million followers. Could we get one quick minute
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  We interviewed one of your friends? I'm
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  How many businesses do you own? I've owned several over the past few
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  decades. Wow. Can we get an interview for one minute real quick? Sure. So
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  what business has made you the most money? The car business. You're in the car business.
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  I am in the car business. What's the most amount of money that you've made in a single year?
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  Yeah, I'm serious. You must've owned the car business. I was a horrible student in
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  Most entrepreneurs have ADDD. Most entrepreneurs
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  didn't do that well at school because entrepreneurs don't follow rules. I
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  didn't do that well at school and I think I
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  have ADDD, some form of it. I need to
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  do exciting things and take risks and I think that's probably what forms
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  the basis of entrepreneurship and I don't like authority. I
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  dare say it's the same although I haven't done an $80 million a day. I
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  What's a lesson about business you'd give to somebody that they will not be taught in
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  The world will teach you if you listen. You see, the difference between Elon
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  Musk launching rockets all the time that blow up and he learns from everyone,
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  or Boeing waiting five years to put up one perfect that then doesn't
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  work, the difference is don't be afraid to take a
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  You'll miss 100% of the shots you never take, but it's speed to
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  mistake that wins. So go out there and make fast mistakes, not
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  catastrophic ones, but ideations. Blow the rocket up, learn,
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  blow the rocket up, learn, learn, learn, learn, learn. It's speed that does that. In entrepreneurship,
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  the market is the only teacher, which means you must get feedback from
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  the market, which means you must go and do things that the market can give you feedback for.
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  And you'll never get it perfect, so just ready is fine, go execute,
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  Let's define wealth. Wealth is someone who has money and time. And
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  the problem with getting rich in a job, and you can
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  make money in a job for sure, is that you don't have any time. So
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  I don't think you can build true wealth. It's so true. Because you have to ask for annual
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  leave, you have to ask to do a P, you have to ask, ask, ask. You have to ask permission a
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  lot. Not every role, but a lot of roles. and you have to be there in a
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  place, you have to earn active income. It's not a pipeline income, it doesn't continue going
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  when you stop going to work. So to be wealthy, which means time and
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  money, I 100% agree, you need more than a job, you need to
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  own a business. In fact, business first, then buy assets.
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  So if your business fails, your assets will continue to pay you beyond any
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  Wealthy people have businesses and assets. Assets,
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  investments, real estate, digital assets, now like courses and
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  Such as investments as in investing in franchises or just
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  Definitely not crypto, but you could invest because you want cash flow. Someone
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  the other day messaged me, I've got $4 million in crypto, but I have no financial freedom.
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  And the reason for that is because it doesn't produce consistent cash flow and fiat currency. So
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  business will do that. It's a goose that lays eggs. You don't own the egg. And
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  then real estate will do that, certain real estate. And of course,
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  businesses will do that. So, you know, online businesses, franchises, offline
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  businesses, whatever. But it's got to be businesses or
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  stocks, public companies that pay dividends or real estate. I think I said
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  businesses twice, but businesses, stocks, real estate. That's
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  The average salary that Australians need to
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  feel rich. For baby boomers, it's $306,505. For Gen X, $294,705. For millennial, $345,785. But for
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  The reason why I think that's happening is because they're seeing a
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  lifestyle on social media that they feel is normal, that's not
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  normal. Of course, to live that type of lifestyle, you probably do
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  need to be making almost $500,000. I had a boss once, he said to me when
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  I did have a job, he said to me, this is back in 2009 or 10. He
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  said you need to have half a million dollars a year just to be middle class in Sydney. I
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  would say even now it's probably more like a million. You
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  do have to be making a lot of money, but I think Gen Zers,
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  the Zoomers, they see these people living this life and they
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  just think it's normal, but it's not normal. It's also you can't see
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  beyond the images. You don't actually know what's going on in someone's bank account or bedroom.
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  The type of income you need is to service shelter, put
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  food on the table, take some holidays with your kids and not
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  lay awake at night worried. And I dare
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  say an income of probably around about 300,000 would do that. And
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  depending on your cost structure, it could be 200, but I don't
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  know if you need 428. But to feel rich, yeah,
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  you probably would. You probably would, I would
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  agree with that, to feel rich. Yep, 428, I
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  can see that. All right, there are the reactions. Do you agree with them? Do you not agree
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  with them? Leave me a comment below and I'd love to
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  know. And I hope you enjoyed it and I'll see you in the next one very soon. to
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  Money Grows on Trees. If you enjoyed the episode, leave a five-star review
• 11:50
  on Apple Podcasts and Spotify and subscribe to
• 11:53
  us on YouTube so you never miss an episode. And if you're serious about building
• 11:56
  wealth, make sure to check out the links in the show notes and follow me on
• 12:00
  all social media platforms, at LloydJamesRoss for