2. Journey to financial freedom Journey to financial freedom

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

4. 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 – 60 920 civil judgments amounting to R560.7million February 2008 – 60 920 civil judgments amounting to R560.7million ( Source: Stats SA ) ( Source: Stats SA ) THE COLD HARD FACTS

5. 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

6. Economic Cycles

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

8. 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

9. 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.

10. 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

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

12. Cash flow Pattern of the POOR

13. Cash flow Pattern of the MIDDLE CLASS

14. Cash flow Pattern of the RICH

15. Property as an Investment Vehicle

16. 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”

17. 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 )

18. The Internal Journey Be…Do…Have

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

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

21. Creating a Team Attorney Estate Agent Accountant Bond Originator Bank Manager

22. Money always follows Management. Money always follows Management.

23. The Seven Myths of Real Estate Investing

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

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

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

27. Myth #4 Some People Just Have the Midas Touch

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

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

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