The frequency of money

Matt Leech 17th December 2012

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Do you get paid monthly, fortnightly or weekly?



I think we can all agree that the frequency in which you get paid can have a huge bearing on your capacity to manage your cash flow.



I often hear clients mention that they "hate getting paid monthly" as it feels like a long time between drinks.



It actually doesn't matter if you earn $400,000 or $40,000 per year I hear the same thing all the time.



When you delve a little deeper into the frequency of money, it's ideal to match your bills & expenses to the frequency in which you get paid i.e. if you get paid fortnightly, make your mortgage payment come out fortnightly.

If you get paid on the 15th of every month, try to move all bills to come out on the 17th so that you have a true indication of what's left over after expenses. Knowing what this surplus is opens up a lot of possibilities. (I know it sounds easy but you would be amazed at how many people don't do this). 



With access to so much credit, it 'muddies the water' on what we actually have to spend and we end up relying on credit cards to get us through. The debt cycle begins that you use your "real-time money" (the latest pay you received) to pay back last months credit card spending.

Where I see couples often go wrong is where they have a joint account and they both have access by keycard. They are both spending with no idea of what the other is spending and the frequency which the money goes in & out isn't understood. By building some structure to their lives, we can organise a 'salary from their salary' so that their needs are easily met with some surplus left over to grow. 

For more ideas on tools for cash flow, shoot me an email here matthew.leech@psk.com.au

The secret ingredient is belief

Matt Leech 10th December 2012



The secret ingredient is belief!

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belief in yourself in every possible way. I was in the car with Jacqui this morning and we were discussing self belief .We came to the conclusion that you can't really get anywhere unless you believe in yourself.

It became obvious that if you didn't have self belief, any achievement in life would feel like luck instead of achievement.

You would feel that the world somehow 'happened to you'  instead of 'you happening to it''.

You would feel powerless to control your own life and ultimately your happiness.

I can't imagine anyone wanting to live like this and the power to change it all comes down to how you perceive yourself. Have you ever heard the saying "fake it till you make it"? it's kind of like that but it's an internal discussion.

I think Henry Ford nailed this one;

"Whether you think you can, or you think you can't- you're right"

Inspired by the Bupa ad: Meeting the wealthier you

Matt Leech 28th November 2012

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I saw the Bupa ad the other day and it got me thinking.......

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Instead of finding my healthier self, what if I met my wealthier self? What kind of advice would the 'wealthier me' give me? 



One question that stood out to me was: What did the 'wealthier me' do differently?



I'm sure the answer would have been something simple but effective, so It got me thinking about the simple things that I didn't give enough attention to or the idea that I didn't proceed with or maybe it was just laziness. By meeting the wealthier version of yourself gives you the interesting but useless gift of hindsight.



I wondered if the 'wealthier version of me' would be happier, we all know money can't buy you happiness but I certainly believe that your finances can affect your emotional state. With that being said, would the 'wealthier' me be more happy or content with their situation and my guess would be probably not. 



In our society today, it's never enough! the 'goal posts' are always moving and as you know, once you hit a goal or a milestone you instantly set a new one. It's human nature!



So I guess if you're 80% happy and content with where you are right now, take a moment to appreciate it and stop looking for the wealthier you because you might not find them like in the ads.



It doesn't matter if you're right or wrong

Matt Leech 23rd November 2012

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Decisions & choices!



We get so caught up in making sure we make the right choice or the right decision that sometimes we forget to make one, right or wrong. 



From meeting a lot of different people, I have learnt that successful people will make decisions and commit to the outcome of that choice even if it's bad.



I also meet a lot of people who spend too much time trying to make their mind up and still make the wrong decision and not commit to the outcome.

Right or wrong is just a point of view and if that is stopping you moving forward, I suggest you make a choice and move on.

I feel that the more choices we make in our lives results in more progress & success. I would feel much better about having new challenging choices on a regular basis than having the same choices over a few years.

Winning with your home loan

Matt Leech 6th November 2012

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I know its Melbourne Cup today (it’s all I've been hearing about)  but I'm also expecting the RBA to cut interest rates today.



There are many variable rate borrowers across Australia still waiting for their lender to announce a rate cut, and there will be further disappointment when you realise that your lender kept some or even all of the rate cut rather than passing this onto you!

Many borrowers might be feeling complacent about their home loan: all lenders are doing the same thing, so what’s the difference? When in reality NOW is the time to review your home loan!

Because of the reduction in borrowers, the banks are offering discounts on standard variables in addition to the rate cuts which means you can get a better deal.

Be smart and review your home loan because you will score some big savings by giving your home loan a health check and negotiating to switch home loans.

Don’t let your lender dictate your financial situation for the next 30 years of your life. Use the power of knowledge and take advantage of the slow mortgage market to score a bigger discount on your home loan.

Get rich or fly trying

Matt Leech 29th October 2012

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There is a massive problem in Australia! There is a good chance that a lot of Australians will struggle once they have decided to retire.



I often hear fellow Gen Y's say that they have a long time until they retire so no need to do anything.



The point is you're right! you do have time but you are wrong if you don't use this time.



You should consider looking at the following:

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• Consolidate your Superannuation accounts into one fund.​
• Review the investment option you are in and seek advice on where you might be better suited.​
• Weigh up whether you should contribute a little more (doesn't matter how little).
• Diversification of the investment.



Let me give you a rough idea of what you might need;



Let's say you're 30 years old and you have $50,000 in Superannuation already. You earn $60,000 p.a. and would like a similar amount in retirement, 30 years from now.



At retirement age of 65, you will require a capital amount of roughly $1,300,000 worth of assets to make this possible (in today's dollars)



The best part is you might just make it but you need to build a strategy on how you might achieve this and let time build it for you.

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Just in case you don't make it 'Rich'.............'Fly trying' is your next option because doing something is better than nothing.

Dare to dream

Matt Leech 12th October 2012

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"Dare to dream"... It's a saying that we have heard a million times but how many times have you stopped to think about what it actually means for us?



This small sentence was mentioned to me a few weeks ago and I can’t seem to stop thinking about it.



Daring to dream can seem hard, it means that you need to think. You need to think about what you want out of life and then stretch that idea further.



It's quite daring to dream but equally there is more risk in not doing so.



We as a society think very short term. An example of this is our 7 day cycle but always looking for the weekend to come. Ever heard the term TGIF?



To stretch our thinking and to DARE to dream I ask you this...



- If money wasn't an issue, what would you do?

- If time wasn't an issue, what would you do ?

- If there was no obstacles what could you allow yourself to dream about?



The answers to these questions might result in a better life for you and ultimately a better world.

Maybe it's time for you to DARE....

How your brain might be getting in the way of your success

Matt Leech 17th September 2012

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What if I told you that your brain could be in the way of everything you've ever wanted. Quite a strange idea considering you work hard to achieve the things you want. Let me explain...



Your brain is an amazing computer that has many 'apps' but for simplicity there are 2 parts to your brain:



1. The Emotional brain
2. The Rational brain



The 2 parts to your brain are quite often in conflict; let me give you an example...



As a youngster, have you ever planned to ask someone out on a date (Rational brain) only to pull out at the last moment because something insides says “They will say no, they don’t like me” (emotional brain) This is an internal conflict on wanting to do something but the overriding fear & emotion get in the way.



Could you imagine all the times in your life where this part of your brain got in the way?



Typically in my daily interaction with my clients, I see the emotional brain override the rational brain when it comes to making investment decisions. The emotional brain tends to be stronger and can impact important decisions. These decisions can often make rational sense but the emotions still take over.

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If you want to achieve financial success in your life, be aware of what part of your brain is making the decisions for you.
If possible, try to override the emotional brain or outsource your decision making to someone that can look at it rationally with no emotional connection.

This is where having a professional adviser who can understand what you want emotionally but applies rational decision making to achieve the results you want.

There is no substitute for persistence

Matt Leech 12th September 2012



I came across this great quote by Calvin Coolidge (30th President of the USA) that I wanted to share with you...

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"Nothing in this world can take the place of persistence. Talent will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent." 

Calvin Coolidge



Although I agree that persistence & determination are formulas for success, I still agree that education is important. I also think that education without determination is fruitless



Every time I read about someone successful, the common themes are;



• They have come from a tough background
• Dropped out of high school
• Dropped out of University
• Were told that they were not good enough
• Were told that their idea wouldn't work

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If you are going through something difficult at the moment, it's not a bad thing, it's the world telling you that you are on the right path and you are doing something worthwhile. Change at the end of the path is likely (and most likely of a positive nature). As they say, if it was easy, everyone would be doing it!



"No test, No Testimony"

Money isn't real

Matt Leech 29th August 2012



What the hell am I working for I hear you say! Sorry to scare you but money isn't real.

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Money is a system and with any system there is a process and with this process there are rules. If you want to be better off financially, you need to know the process and you need to play by the rules.



The easiest way to explain this is by comparing it to the Hollywood blockbuster movie "The Matrix". ​The Matrix is a system which can be manipulated by Neo because he understands that the Matrix isn't real, this allows him to bend the rules to suit him and money works in the same way.

I want you to know that having money isn't about a bigger bank balance but instead it's the emotion that comes with the bank balance, this can mean different things to different people.

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With most people I see, this can mean security, a sense of self worth, or even freedom to do what you want, when you want!



• Money isn't real but the emotions attached to money are real...



To create these emotional outcomes you need to enter the Matrix and learn the process and play within the rules and create the outcome you want.

What Usain Bolt taught me about investing

Matt Leech 14th August 2012



As the Olympic games came to a close, I thought I would share with you a story about Usain Bolt and what he can teach us about wealth creation…

“Usain Bolt is no longer the man to beat at the London Olympics” -June Headlines

Everywhere you looked in June, the above headline dominated the sporting press.  At the National Jamaican championships in Kingston, Jamaica, Bolt was seemingly dethroned as the King of World Athletics.  His best friend and training partner, Yohan Blake had beaten him in the event that Bolt was the current world record holder for – the 100m sprint.

Fast forward to this week, and all the pressure was on Bolt.  In what many regard as the ‘flagship event’ of the Summer Olympic Games, Bolt lined up on the blocks for the 100m sprint once again.  Many in the stadium (and in fact the world) doubted that he could regain the title that he so spectacularly won in Beijing in 2008.

As Bolt crossed the finish line in 1st place (with a new Olympic record to boot) the rest, as they say, was history.

Interviewed after the race, a jubilant Bolt was asked how he came back from that infamous race in Kingston to go on and win the gold.  How did he silence those inner demons and regain the confidence to know he could still achieve his goal?

“I always listen to my coach.  I asked him if I could still win and he said I could, so I then knew it was going to be ok.  For us, it was just about doing what we knew worked.  We had a plan and we just stuck to it” was Bolt’s reply.

Great lessons from a magnificent athlete… but also great lessons in finance and indeed life.

Especially in the world of investment, there is a lot of ‘negative noise’ out there.  It feels like every day, someone else predicts that the end of the world is nigh, that there is going to be another GFC or that the property market is going to crash.

But the key to success is learning to ignore the critics, surrounding yourself with people who not only know what works, but also understand YOU.  This in turn helps your formulate and most importantly, stick to, a plan that achieves the results you desire.
So my question is to you, what race are you running? And what is your coach saying to you?
If you are relying on the media, your friends or popular opinion to be your coach, perhaps you should re-think your approach