Journey to financial freedom Journey to financial freedom

The Cold, Hard Facts about South Africans financial fitness W What the rich teach their children Property as Investment Vehicle AGENDA

Over 74% of South African families spend more than they earn. Over 74% of South African families spend more than they earn. ( Source: SA Reserve Bank ). ( Source: SA Reserve Bank ). Debt-to-Income Ratio 82% Debt-to-Income Ratio 82% (Source: IOL July 2008) (Source: IOL July 2008) February 2008 – civil judgments amounting to R560.7million February 2008 – civil judgments amounting to R560.7million ( Source: Stats SA ) ( Source: Stats SA ) THE COLD HARD FACTS

Credit card debt (Banks, Discovery) Credit card debt (Banks, Discovery) Retail Accounts (Edgars,Woolies) Retail Accounts (Edgars,Woolies) Overdrafts Overdrafts Personal loans Personal loans Hire purchase Hire purchase Bonds Bonds THE COLD HARD FACTS

Economic Cycles

WHAT THE RICH TEACH THEIR KIDS ABOUT MONEY AND WHAT THE POOR AND MIDDLE CLASS DON’T

Proverbs 22:6-7 V6. Train up a child in the way he should go and when he is old he will not depart from it V7. The rich rule over the poor, and the borrower is a servant to the lender

Master the “fundamentals” of wealth creation so that they have a foundation upon which to build a financial future. Master the “fundamentals” of wealth creation so that they have a foundation upon which to build a financial future.

Invest money (Story Of Roy) Invest money (Story Of Roy) Don’t work for money, let money work for you Don’t work for money, let money work for you Financial Literacy – Get to know the money game Financial Literacy – Get to know the money game Mind your own business Mind your own business Learn the history of taxes and the power of corporations Learn the history of taxes and the power of corporations Work to learn-don’t work for money Work to learn-don’t work for money Learn to Sell Learn to Sell Manage your cash flow Manage your cash flow Rich Lessons

Rich Lesson: The Rich Don’t work for money The Rich Don’t work for money AssetLiability

Cash flow Pattern of the POOR

Cash flow Pattern of the MIDDLE CLASS

Cash flow Pattern of the RICH

Property as an Investment Vehicle

There are no silver bullets or Get Rich Quick Schemes There are no silver bullets or Get Rich Quick Schemes No investment is better than another. Investments are only vehicles No investment is better than another. Investments are only vehicles There are no “good investments” only “good investors” There are no “good investments” only “good investors”

What do you need to know to play the game? If I had 4 hours to cut down a tree I would spend 3 hour sharpening my ax ( Abraham Lincoln )

The Internal Journey Be…Do…Have

Rich Lesson: Mind Your Own Business Mind Your Own Business  CASHFLOW Quadrant

Employees (E) and Self-employed (S) individuals -Left Business Owners (B) and Investors - Right

Creating a Team Attorney Estate Agent Accountant Bond Originator Bank Manager

Money always follows Management. Money always follows Management.

The Seven Myths of Real Estate Investing

Myth #1 You have to be Wealthy to invest in Real Estate

Myth #2 You Need to Start Small – Big Deals Are Too Risky

Myth #3 You Can “Flip” Your Way to Success or Get Rich Quick With No Money Down

Myth #4 Some People Just Have the Midas Touch

Myth #5 You Have to Know Somebody to Get Going in This Business

Myth #6 You Have to Be a Seasoned Negotiator and Businessperson

Myth #7 You Have to Know a Lot About Real Estate