Making Money Made Simple Flashcards
____ is very useful, as it will spur you to change your life for the better
If you are suffering, do not worry. Pain is very useful, as
it will spur you to change your life for the better.
I used to regard pain as just an annoyance. Then I read
The Gift of Pain, in which Phillip Yancey and Paul Brand
tell us about a world without pain: no paradise, but a lep-
er colony, where the literal absence of pain has horrifying
consequences. Yes, pain is an indicator that lets us know
something is wrong.
The few who do are the ____ of those who watch
The few who do are the Envy of those who watch
What is the meaning and example of the age pension to you?
 The age pension was introduced in Australia in 1908 for people aged 65 and over.
It was a safe bet for the government of the day, given that average life expectancies then were around 50.
Since that date there has been a never ending stream of changes to the pension system, all in one direction - reducing eligibility.
In 2009 it was announced
that pensionable age was being increased over time; by the year 2024 it will be 67 for everybody.
In January 2017 the assets test was tightened considerably, and the Pension Loans Scheme was revamped (taking
effect from 1 July 2019) so that home owner age pensioners and self-funded retirees can borrow money from the government at 5.25% via a government reverse mortgage scheme.
This means the retiree makes no repayments of principal or interest, and the loan is paid back when the property is sold.
In my view, this is the first step towards
treating the age pension in a similar manner to a student’s HECS debt.
When the age pension was first brought in, it was regarded as a right, but now all parties regard it as welfare.
Currently, a couple could have financial assets worth$ 800,000 plus a home and still qualify for a part-pension it is my bet that at some time in the not-too-distant future the question will be asked:
“Why should a person with nearly $1 million in assets be eligible for welfare?”
Will there be a pension for you? Who knows? What we can say is, based on what has happened to date, it probably won’t be much.
The choice is yours make the effort to become financially independent or put yourself at risk of being a victim
of ever-increasing cuts to welfare.
The reason so many individuals fail to achieve their goals in life is that they _____ really ___ them in the first place
The reason so many individuals fail to achieve their goals in life is that they never really set them in the first place
The ability to set an achieve goals is essential if you are to reach financial independence
Write down what this means to you?
First review your life goals.
then compare them to the steps in the photo
Have you set/ reviewed your goals for today and your future?
Brainstorm the best goal setting procedure for you!
Follow the steps on the other side and rate how active you have been in setting your goals before this reminder
Let’s get into the habit of goal-setting.
- Start by daydreaming: picture what your ideal life could look like.
You can be as extravagant as you wish. This is the goal you are moving towards. Write or draw what you have pictured: where you would live, what your transportation would be, what kind of holidays you would like to have, who you would hang out with and what you would do most days. - Now consider your daydreams, and what you are already committed to, and draw up a set of goals for the next 12 months. Do you need to end some things and start
others to get where you want to go?
Make notes on each goal.
How difficult is it? How important? Do you have the skills and resources to accomplish it? How committed are you to achieving it? What is motivating you? - Armed with this knowledge, plan and schedule the actions you can take towards your top five goals over the next 12 months. Do this in detail.
WHAT HAVE YOU DONE TODAY?
Next to your goals write down one thing that you have done today that compliments your goals?
“It’s what you do right now, today, that determines where vou will be 10, 20 and 30 years from now.”
- Warren Buffett
Write down one thing that you have done for your mind and body today?
You only get one mind and one body, and if you don’t take care of them, they will be wrecked in 40 years
Think about this quote and how it reflects in your life
“ Winners exercise discipline while the losers give in to temptation”
Write down a general Example of this that you see in someone els or your self
The financial winners, by contrast, understand good things do happen
… and take the trouble to find out all
the facts about the opportunities that are around, often by seeking advice from experts.
As a result, good things happen more often to them. Have you ever heard the saying, “The secret of a happy
marriage is to mix with happily married people?” In the money field, the secret is to mix with positive people who are successful with money. Now you know the difference between financial winners and financial losers. Let’s summarise those differences while you work out which category you are in.
Rate how you are implementing this into your life
For every 2 of these items that I do, I get 1 points, rate below.
- Saves something out of every pay
- Minimizes borrowing for items that depreciate
- Has a definite goal Works to their own plan
- Mixes with successful money managers
- Knows that budgeting is a must
- Seeks professional advice
- Is keen to learn
- Invests in items that gain value
- Takes responsibility
Compound interest is the eighth wonder of the world. He who understands it, ____ __ … he who doesn’t … ___ __.
Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.
23
In one paragraph try and explain, teach and calculate how important compound interest is.
Refer to page 23-24-25 and just how well you explained it
What are 3 factors you need working for you to build assets?
- _______ - that has the ability to increase in value
- ____ - for compounding interest to work
- ____ ____ __ ______ - to speed up the compounding process
- Capital - that has the ability to increase in value
- Time - for compounding interest to work
- High rate of return - to speed up the compounding process
Calculate and understand the different rates of return and see where you can implement in your life
Learning is a treasure that will follow its owner everywhere
Pg32
Look at the clock and imagine that is the going interest rate
Use the rule 72 in your head to calculate the answer
72 / inflation rate = years for $ yo halve
72 / rate or return = years for asset to double
Pg 32
In one paragraph teach the meaning and use case of the rule of 72
Look into Realestate and find a house that was built more than 20 years ago
Using rule 72 Try and calculate its growth rate and see if that matches the growth rate for the suburb
You must gain _______ over the money or the lack of it will forever _______ you.
You must gain control over the money or the lack of it will forever control you.
You cannot escape the responsibility of _______ by evading it _____
You cannot escape the responsibility of tomorrow by evading it today.
Write down your 3 most important to-do’s for today in order of importance.
How affective we’re you that day and did you compete the tasks
Explore the option to borrow money to invest in very secure trusts, funds etc
Write down the pros and cons of doing the following in your life
Pg 130
How well do you understand these calculations and differences, write down and try and plan for your life
In writing try and teach the meaning of margin lending
The below guy had two loans, both at $200,000 one was for personal residence and one was a business loan,
Read the story and see the difference it made in how he had the loans set up
It is extremely important to keen deductible debt and non deductible debt separate as it’s very easy to loose your deductible debt
Pg 194
