The Finance Bible

OD #1 -The 3 Key Habits That Took Me From Financial Chaos to Confidence

• Zeke Guenthroth and Oscar Don

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Imagine breaking free from the relentless cycle of living paycheck to paycheck. In this episode, I share my personal story of how a simple shift in mindset—from scarcity to abundance—transformed my relationship with money. It's not about earning more but about thinking and acting differently with what you already have. We tackle the power of the Kaizen philosophy, focusing on being just 1% better each day through daily habits like waking up early and practicing gratitude. These small changes can accumulate into significant financial freedom, reducing stress and leading a more satisfying life.

We also explore practical strategies like the 50-30-20 budgeting rule to maintain control over your finances, ensuring you're not just spending impulsively. Discover the potential of leveraging other people's money through loans and mortgages to build wealth, as inspired by the insights from "Rich Dad, Poor Dad." This episode is packed with actionable advice on how to harness available resources, continuously work on personal growth, and unlock your potential for financial independence. Join us to learn how these strategies can pave the way to a more secure and prosperous future.

For any enquiries or to connect with Oscar, Zeke, or their company, Asset Road, listeners can visit the following links:

The advice shared on The Finance Bible is general in nature and does not consider your individual circumstances. The Finance Bible exists purely for educational / entertainment purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs.

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Speaker 1:

Imagine going from living paycheck to paycheck to finally having control over your money and living life on your own terms. It all starts with three simple things that completely changed my financial game. These aren't about working harder or getting a bigger paycheck. They're about shifting how you think and act with money. You want to know what they are. Stick around, because these habits can completely transform your relationship with money.

Speaker 1:

Welcome back to another episode of the Finance Bible Podcast. Zeke here and your co-host, oscar. But before we get into it, please note that nothing in this podcast should ever be considered as personal financial advice. Of course, if that is what you are seeking, reach out. We'll get you in touch with the correct professionals. Get the job done properly. Sit back, relax and enjoy the show. Let's get into it. Welcome back to another episode of the Finance Bible Podcast Today. You and enjoy the show. Let's get into it. Welcome back to another episode of the Finance Bible Podcast Today. You're with me, oscar, and today I've got a bit of a special one for you.

Speaker 1:

So this one's all about my own past experiences in mainly hidden habits to help you shift your mindset and unlock the door to financial freedom. They're personal habits that I used to do three to four years ago when I was feeling a bit stuck financially and mentally in the same environment and kind of worked on those every day to get out of that situation and then try to help other people get to the same. I'll get straight into it. Four years ago I was in a bit of a financial mess and when I say mess I do mean it. Looking back on it now I mean it. So I had credit card debt. I was on a minimum wage, I had high rent because I was living in the eastern suburbs in Sydney. So, as you can imagine, the rent was a lot higher than the money coming in. So I was left with basically not much money on the weekend. So that's when the credit card came in and started spending on the credit card to fund my life, really to fund my weekends out, because I was new to Sydney, I was wanting to get to meet people and go out, and go out for dinner, for drinks etc. And I was also living in a small apartment, a two bedroom small apartment. I was constantly stressed about how I was going to get through the week money-wise and financially, because I had X amount of money coming in and, mind you, I was getting paid per week, so a lot of people get paid on a fortnightly, especially a monthly, basis. So the fact that I was stressed on a weekly basis that's an issue looking back, like thinking about that now freaks me out. So, yeah, I was getting stressed out how I was going to get through and have money left over. Some weeks I had 50 bucks left over. Some I was negative. Yeah, it felt like every step I took there was a couple backwards, but the hardest part wasn't about the money. It was the mental toll that you had, that it had on me.

Speaker 1:

So we all know we're on Instagram. You're looking at people living the life, people you may not know, people you may know, and they're making all this money, having a good life, traveling, and you then think to yourself why aren't I doing the same? Why aren't I traveling? Why aren't I living the life? Why don't I have a good income? Why aren't I making money?

Speaker 1:

So the first thing I realized was comparison is a thief of joy. So, at all costs, never compare yourself to anyone else, because you're never going to feel good about it. It's as simple as that. You're on your own race. You're on your own. It's your own life. Your only competition should be yourself and if it is yourself, great, and it should be your past self. So are you better than you were yesterday? And I always use the philosophy of 1% better every day. It's a Japanese one of Kaizen K-A-I-Z-E-N, so that just is daily improvement, every single day. So always compare yourself to yourself if you are comparing. Never compare yourself to anyone else, because you're never gonna feel good about it.

Speaker 1:

Truly believed back then, I was never going to get ahead. I felt like there was a ceiling above me. No matter how hard I tried, or you know, to push through, I couldn't really do it. But over time I started rewiring my brain because daily habits, I started reading books about personal finance and personal growth and personal development, which now it's the only things I read, because I just resonate and I love them so much. And all about daily habits. So getting up early, going, even just going for a walk, going to the gym, going to get a coffee, I like to get up before 6am, ideally, you know, 5, 5.30 is my ideal time Because, as you know, if you do get up around that time, there is something different in the air when you get out. It's a good feeling. You feel like you are well ahead of the curve of the day and you're in control for the whole day ahead, because not many people are up at that time. But yeah, I started doing habits, I started reading, I started doing a bit of great daily gratitude, which I'll jump into in the next bit in a moment. But yeah, all these habits came together and then all of a sudden, you get up, you're excited to tick off all these habits before you go to work. So it's perfect.

Speaker 1:

The first habit isn't about money at all, even though that was the thing I was stressed about. It was just about my mindset. So how could I rewire my mindset to help me with my money thought? And you often hear that mindset is everything, which is true, but I didn't truly get it until I was facing a bit of credit card debt and couldn't really go out and socialize and live the life I wanted to because I didn't have the money for it. So I did make a choice One of those mornings when I woke up and realized all right, I need to actually get ahead of my life. I can't stay in this constant status quo. What do I do?

Speaker 1:

So the first thing I started, I decided to move from a scarcity mindset to a abundance one. With that comes practicing gratitude every day. So I still do that today, even if it's three things. I literally just write three things in my diary every single morning. It can be money related, it can be friendship related, it can be relationship related, it can be just literally going to the gym or having a glass of water, it's whatever you're grateful for. It just sets up your day. It makes you appreciate the small things and even if you are stressed out with things going on, it makes you really humble and come back to earth and realize it's actually not as bad as we think. You know, I get to go to the gym, I get to have a sweat every morning, I get to go see my friends, I get to go on a weekend trip, for example. There's so many things which we take for granted. But if you just take five minutes or not even like three minutes a day and just jot them down on your even on your phone app or say it to yourself, it will go a long way.

Speaker 1:

And that's the first thing I did to kind of shift my mindset to this whole belief of that I can better myself, and that goes literally back to the power of belief. If you haven't done that before, activity for you. So every morning for the next seven, write down three things that you're grateful for. As I mentioned, it doesn't have to be about the money. It could just be as simple as I'm grateful for the opportunity to learn about personal finances, or I'm thankful for a roof over my head. Just doing the simple practice of gratitude will rewire your brain over time, and you may not think it will, but it does, and it happened to me. I surround myself with many positive influences in my life now, which, over time, you kind of filter through and figure out what do you want to achieve? And then you surround yourself with those people, and people around me do the same and they're successful. They're doing it. They're doing it. They're doing it every day.

Speaker 1:

And before I got into property investment, one of the first mindset shifts I had was I read Robert Kiyosaki's book Rich Dad, poor Dad, which talks about borrowing money to invest in property, like borrowing debt from the bank, for example, and I really wanted to do it myself, but I was terrified, realistically, because I thought about what if I lost everything? And then it took me a couple hours to realize. But instead of focusing on the fear of loss, I rewired that to focus on the opportunity in front of me. So I started telling myself this property could help me build wealth over time. And with that, here I am today. So it's funny how that happened.

Speaker 1:

The second habit I put in place was mastering a budget. I did the 50-30-20 rule, which some people are different, everyone's different in the budgeting, google budgets online and there's thousands of different ones you want to do. But yeah, I did the 50-30-20 rule. So before I get into that, it's just a different technique. You might've heard it before and if you haven't, well, I'm about to walk you through it. But budgeting itself when people hear it, don't really get too excited because it means you've got a reel in your spending and you've kind of got to put together a plan. But even though it may not be the most exciting topic, getting your money under control is essential if you want to build wealth. Without a solid plan for how you actually allocate your money, it's easier to fall behind in these habits and end up spending more than you earn, which is what I was doing for a couple of years. And if you do that, especially with credit cards, you can fall behind.

Speaker 1:

So the 50-30-20 rule is 50% of your income goes to your needs. So once you get paid, 50% goes to your needs. So it might be your rent that was the first thing I did goes to your needs, so it might be your rent. That was the first thing I did. Your bills, your utilities, the things you actually need to pay to live. So if you're renting, you've got to get all the bills out of the way. If you own a home, you've got to pay your mortgage and your rates and et cetera.

Speaker 1:

And then you've got 30% that goes to your wants, so dining out, entertainment, travel, all together. You may make different accounts if you want in that category. And then 20% goes to savings or investments, so building wealth, emergency funds, retirement savings. When I was on a lower wage, I was doing it like that and then, once I gradually was increasing, I kind of switched that. So I switched it to 30% goes to savings and investments and 20% goes to dining out. But yeah, it's up to you how you want to do that, but that's the way I did and I kind of switched the two. But this simple rule helped me stop feeling so overwhelmed with my finances and, most importantly, it helped me build a cushion of savings and start investing.

Speaker 1:

So once you get a clear breakdown of where your money's actually going, to the cent, you're less likely to fall into the trap of impulse spending or living paycheck to paycheck, because when you're wanting to buy a shirt, for example, and you're about to check out, you know in the back of your mind that you've only got 53 left for the week in terms of your spending for your dining out and entertainment, um 30 percent category. So you're not going to buy that shirt if it's cost 80 bucks, because then you're going to be in the in the back, because then you're going to be behind. So knowing your money, where your money's going, how your money's working, how much more you can spend, is vital. If you budget, perfect. If you don't take 15 minutes today to go through your monthly income and expenses, break them down into 50, 30, 20 categories and I'll tell you what you'll likely be surprised at where your money is actually going. You might be spending more on movie nights or Uber Eats and things that you don't need to do. If you just go to the supermarket, it saves up and Netflix saves up, or even subscriptions. They're big. You may have a lot more subscriptions than you think. They're big. You may have a lot more subscriptions than you think, but once you see where the gaps are, redirect that 20% towards savings or investments, because this will help you build your long-term wealth rather than just getting by day to day.

Speaker 1:

When I first applied the rule, I was actually shocked at how much I was spending on things such as subscriptions and going out. I knew I was going out and exploring Sydney when I moved there, but I didn't know how much money I was actually spending, which was ridiculous. So, but yeah, over time I did the budget, my savings grew and I felt more secure, knowing that I had money working for me, rather than constantly chasing bills and getting told hey, you got to pay this, you got to pay. Hey, you got to pay this, you got to pay this, you got to do this, blah, blah, blah, blah, blah. I'll keep it to the third habit, which there's just three quick habits and three quick lessons that help you change your mind and how to get ahead.

Speaker 1:

So I mentioned earlier about borrowing other people's money to invest personally. So borrowing the bank's money to buy an asset in your name and then paying it back over time. So this is all about leverage how to use other people's money to build wealth. This is one of the most powerful tools you can use to grow your wealth, especially in property investing. The idea is simple you don't need to have all the cash to invest. Instead, you use leverage, like mortgages or loans, to fund your property investments and, over time, the aim is for your assets to appreciate in value. So this allows you to grow your wealth without tying up all your own resources.

Speaker 1:

If you're considering property investment, take a look at your own borrowing capacity. So you may have a mortgage broker, you may not. If you do speak to them about it, they'll be able to whip it up. If not, there's so many different websites you can go to online and they can. You know they'll ask for your income, your debt level, your age, et cetera, what you're wanting to purchase. But have a look at your borrowing capacity. How much can you comfortably borrow from the bank? Understand the terms of the mortgage and calculate the rental income that you think you can expect. But when done correctly, the rent from the property can cover the mortgage repayments and the value of the property can appreciate over time. So this is the main when we look at leveraging and helping clients leverage down the track. This is what we look at. We want to make sure that can the rent pay the property and cover the mortgage repayments and then, over time, that property goes up in value without the client having to do anything at all. If it does, perfect.

Speaker 1:

But have a look at your own situation. For example, when I bought my first investment property, I didn't have the full amount saved up. I used a 10% deposit and the bank literally covered the rest. So I literally borrowed 90% of the purchase price for this property from the bank to purchase an asset for myself and my partner. We both bought it together. The aim is that this property grows over time, pays for itself. The rent does pay for itself, which is great.

Speaker 1:

And then, down the track, once the property goes up, you can refinance, you can pull out the equity, you can invest in more properties. There's so many opportunities. You can pull out the equity and if you've got renos or you want to buy it on your occupy, you can do that. But leveraging allows you to do these things and gives you so much opportunity with building your wealth and I didn't learn that until I started reading books and listening to podcasts that if you just hustle for a couple of years and build up 10%, 20% of a property price that you want to purchase and no, it doesn't have to be a million, 1.5, $2 million property in Sydney or Melbourne that you want to live in it can be an investment property for $400,000. People think you can only buy a property if it's an owner-occupier, but times have changed. It's not the case, especially now, because the price of properties is so high and no one's going to save that money. The best way to do it is to, in my opinion and our opinion as a company, is to, if you don't have the income and don't have the savings, to start with investment properties and then leverage, leverage, build an absolute empire and then, down the track, you can sell one property, for example, and that can pay for your owner occupier.

Speaker 1:

It is so simple when you think about it, but it's all about mindset. Shifting your mindset will help you get ahead in life and get ahead in your investment journey as well. So to wrap up, here are the three habits, simplified, that turned my finances around. So number one was my mindset. So mindset over money. Shift from a scarcity mindset to one of abundance. Practice your gratitude, three things you're grateful for each day. Promise you it pays off.

Speaker 1:

Second, master your budget. Get a budget, be used to it, live by the budget, use the 50-30-20 rule, and that will get you control over your spending, which is vital. Third and last thing is leverage. So, yeah, using other people's money to grow your wealth. It is so important and so powerful it's yeah, I can't even say anything about it. It's just insane If you haven't read it as well. Rich Dad, poor Dad, literally talks all about leverage how to do it, how it works, can't fault it. It is perfect book and leverage is an amazing thing. It can really help you set up your life. These habits don't just help you manage your money. They help you change the way you think about wealth building.

Speaker 1:

Think about yourself. What's your next move? Are you going to start shifting your mindset today, or are you going to keep doing what you've been doing, especially last year, year before, and not go along with your new year's resolutions? Are you going to put a budget in place? Are you going to start thinking about how you can leverage to scale up your financial freedom, or are you not? It's all about yourself. You've got the resources, you've got people, you've got podcasts, you've got teams like us, you got pages like us. It's so. It's such a digital age, such an informative age where we can all literally just grab our phone and we're educated. So you've got everything at your fingertips. The question is, it's up to you. How are you going to do it? Are you going to take the leap? Are you going to better yourself? Are you going to stay in the status quo?

Speaker 1:

But look, I hope you enjoyed this episode. These three things helped me tremendously and I still do them today. I still do my budget, I still do gratitude and I I still do my budget, I still do gratitude and I will continue using leverage for the rest of my life. But yeah, if you found this episode helpful, please subscribe, leave a review, share it with someone else who you think could benefit from it, but until next time, keep unlocking your potential. We hope you enjoyed the episode. As always, you know exactly what to do. Hit that follow button, subscribe whatever platform you listen to this podcast on. Also share it to friends, families, co-workers, whoever you think may benefit from it. But unfortunately, it's the end and we'll see you next week.

People on this episode

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Oscar Don

Co-host
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Zeke Guenthroth

Co-host