Do you respect money?

We all need money to survive.

Especially in today’s competitive world. 

Where recently life has become expensive and living costs are on the rise. 

The cost of food is higher.

Flights, fuel, and travel have become more expensive. 

Add to this the extra costs that didn’t exist for the generation before us.

Such as the need to keep up with consumer technology, COVID debt, and higher tax bills.

Plus, it's important to also think about life after work.

Will you be able to live off your superannuation? How much do you need? Will the government change the rules?

The list goes on!

It’s no easy road and it can feel like you are living from paycheck to paycheck.

Facing the impossible task of trying to get ahead.

This is exactly where my husband and I were six years ago.

It was this feeling that motivated our desire and motivation for change.

That forced us to change our relationship with the money we earn and our respect for how we used it.

It was uncomfortable to make this change.

But because we lent into this discomfort, we now have a completely different future before us.

I'm here to challenge you to see a different path.

To show you an alternative route.

To provide you the tools to plan ahead, stay diligent, and grow outside of your current reality. To create a different future.

If you are willing to do this, I promise you will reap the rewards!

It starts with your relationship with money.

• How you bring money into your world.
• How you use it.
• How you let it flow out.

This is how I respect money.

How I understand its value.

And how I have learned to use it to build my wealth and my future.

I'll apply these points to general day to day life, and also in the context of property development. 

I'll keep it simple as that's how it should be.

Here goes...

Know your budget

Once you know this, make sure it's realistic, and then stick to it.

We all need money to live.

We also want lots of things that we don’t really need.

It’s important to understand the difference and have a balance.

Use your budget for the non-negotiables first.

Then splurge on items within your budget only if there is some cash left over.

Avoid the trap of living outside of your means.

But also enjoy spoiling yourself now and again or your family when you can be guilt free. 

You still have to live right!

With property development it's always risk first and profits second.

The very first step is a Feasibility Assessment. I talk a lot about this as a part of the Rising Star Developer Inner Circle.

Crunch your numbers. Understand from the outset if the numbers make sense to proceed with your deal as this sets the foundation for your project budget.

A wise developer will stick to their budget and manage their numbers from day one.

Understand what your expenses are and when they occur

It's easy to know when and from where money comes in.

It's harder to know where money goes out - unless you track it.

A coffee here, a lunch order there, your direct debits...it all adds up.

This doesn't have to be too complicated.

We all rarely carry cash these days and most banks have apps that allow you track spends in categories set by you. Frollo is another free, non bank option.

Set this up and begin understanding your habits.

Then see where you can effect some change without negatively impacting your lifestyle.

This will also allow you to plan for bigger spends like school fees, car registration, council rates.

It will surprise you how much money you can save when you understand your spending.

The same principle is true in property development.

At the start of each development, I create a spreadsheet to track my expenses.

I review this during and at the conclusion of my development.

This helps me understand where I overspend and where I could scale back.

I carry these learnings into the next project. 

Try and avoid debt

Today's world is geared to sell you debt.

But it’s important to understand that servicing debt costs you money.

It's how the banks, and companies like Afterpay make their million-dollar profits. 

When my husband and I decided to make a change we made a decision to stop using credit in our daily lives.

We only use credit cards to our advantage and pay them off monthly.

We don’t use Afterpay.

We save up and live within our means. 

If you do use credit, pay it off on time! 

As a property developer you may need to take on debt.

Factor this into your Feasibility Assessment and settle as soon as the project closes. 

Avoid impulse buying

Ask yourself, is it necessary?

What is the real cost?

It’s easy to be influenced by advertising, or social media.

We are all human. Sometimes it is nice to indulge.

Reserve these splurges for something that you treasure. Avoid spur of the moment decisions that you won't value 24 hours later.

The same goes for property development spends.

Stick to your planned selections.

Quality is always important but don’t let it get personal. 

Try to pay yourself in savings

Finally! I say this often - but pay yourself for your hard work.

Put aside the savings you have gained.

This might be $100 or $1000 or $10,000 each month. It doesn’t matter. Build up these savings.

Then invest them so they grow.

Now your money is working for you.

It's respecting your hard work.

Respecting your long-term financial goals.

As a property developer, a pay day at the end of the project provides options.

You can pay off some personal debt, invest for growth, or roll them into the next project.

Again, you are paying yourself to grow your wealth.

Many people have a negative relationship with money, but it doesn't need to be this way.

Like anything else in life, money is an asset that requires respect, care and education.

If you understand how you use it and can learn how to leverage it, money can empower you.

These are all concepts I teach within the Rising Star Developer program which is about to close at the end of May.

Showing you how I leverage money to create wealth using property development.

Interested?

If you would like to open up this conversation, complete an application form here!

Completely obligation free, it just might be the first healthy conversation about money you have... and will lead to many more. 

Until next time.