How a young couple built their financial security

How a young couple built their financial security

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Every day about one quarter of all Australians suffer from financial stress. That stress, caused by overwhelming debt can lead to insomnia, irritability and serious health problems. Not to mention the hours worrying about how you’re ever going to afford to retire.

The great news is, we can help. And I want to share with you how we have helped one such Aussie couple get on top of their mortgage and start planning for their financial security through our ground-breaking Mortgage Reduction Program.

The first step in reducing your mortgage, admit you have a problem

*Susan and *Mark are a young Brisbane couple with two kids at school. They approached us last year because they had mortgage debt of about $352,000. Now this is a lot lower than you’d expect from a couple in Sydney, but because Susan was at home with the kids and not earning a full-time wage, they only received a modest income of $95,000 and were looking at another 27 years before they could be mortgage free. As Susan said to us when we met her,

“…unless we do something about our finances, we have no chance of being able to retire, let alone building the nest egg we’d always dreamed of.”

Step two to reduce your mortgage – sign up to our Mortgage Reduction Program

The greatest part of my job is being able to calm people like Susan and honestly tell them we can help. A large mortgage does not mean you will never have financial security. But, it does mean you need to take some practical steps to get your finances under control.

  1. Firstly, we mapped out how our program could help them, even with their moderate income. We showed them all the various components of our Mortgage Reduction Program and the effect those components would have on their day-to-day lives.
  2.  We then showed them the projected benefits they could expect if they followed this program.
  3. Both Susan and Mark felt confident that the program would prove only positive for their lives, and the benefits were well above their expectations, so they signed up on the spot.

Our plan for Susan and Mark’s debt reduction

We mapped a realistic plan for Susan and Mark that meant they didn’t have to eat meals from a can or cancel their Netflix subscription (something Mark said he couldn’t live without). We consolidated their debt, reduced their interest rate and changed their approach to spending. They were pretty surprised at how much our changes could impact the life of their loan and they felt that finally they might have a chance to beat the banks. They were determined to follow all our advice and were happy to report in once a month to make sure they stayed on track. They left the office feeling a lot less stressed and were confident they’d sleep well that night for the first time since having the kids.

The results of our Mortgage Reduction Program

I am thrilled to share that Susan and Mark have achieved a pretty incredible turnaround. In less than four months they reduced their home loan by $48,000 which means they are on track to becoming mortgage free in only seven years.

Both of them are sleeping better as they no longer worry about their financial future. They are even thinking about buying an investment property next year because they know they’ll be able to afford it.

While Susan and Mark are a lovely couple, they wouldn’t consider themselves extraordinary. They just followed the proven and practical strategies offered through our Mortgage Reduction Program and they are so happy they joined.

Susan wanted to offer some advice for people in a similar situation.

“Take control of your debt now, before it takes control of you, your health and your family.”

Want financial security? 

I don’t think money is the root of all evil, but debt can be a killer. I think Susan has taken such a positive move and I’m so happy we were able to help her and her family. We’re here to help you too. If you have about 20% of equity in your mortgage and you want to reduce it quickly to gain your financial independence, contact us and we’ll be happy to help get you on the road to financial security.

Like many Australians, you probably want to live well in your retirement and have a choice about when you can afford to retire. You have worked hard, and you deserve it.

Sally-Ann Benson

Contact Sally-Ann and the PWF team here.

*Names were changed to protect privacy.

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Layman’s Guide to Financial Independence

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When people hear ‘financial independence’, most think about making a lot of money or having a high net worth. However, these two notions aren’t exactly accurate.

For instance, picture an entrepreneur that makes $5 Million a year. Most people will think that that entrepreneur is wealthy. But what if he needs to spend 5 Million-and-one dollars to make that 5 Million? Will you still think he’s wealthy?

The same can be said for a person who owns a multi-million dollar property. Suppose that person is already a retiree and living on a pension. Chances are, most of his pension is going to the insurance and taxes of that mansion of his. If so, how much cash will be left for himself? On paper, that multi-million dollar property owner is ‘wealthy’ even if he is struggling to sustain that property despite not owing anything on it.

Understanding Financial Independence

Creating wealth is more than just the money and the net worth. Real economic wealth is having financial independence – the freedom to do the things you want, when you want.

It is important for you to understand this whenever you chart out your goals and financial plans. Unless your plan will give you more time for yourself and your family, then what’s the point of following that plan?

This is the problem many people face when they buy properties. They don’t have a clear idea on what they want to do with the property. Their focus is too much on just securing it and then hope everything works out from there.

Unfortunately, without a specific plan, properties will most likely take money from you rather than make money for you. Just ask those that have been forced to work extra jobs the more they expanded their property portfolio.

On paper, having two, three and four properties under your name may look impressive. But if you end up working 16 hours a day just to sustain those properties, then it defeats the purpose of why you invested in the first place.

So before entering the property market, it’s important that you sort out how your property will earn you money. If you are having the property rented out, do you know where to find tenants? Do you have any basis of screening to avoid problem tenants (delinquent in paying rent or those who don’t take care of the place)?

Another point to consider is how you will structure your finances. The common practice is negative gearing where the investor chooses to lose money each week to qualify for tax breaks. But are you really willing to lose an average of $50-$100 each week for tax breaks? Or would it be better for you to gear your property positively so that you earn a weekly profit instead?

These are all very important factors to consider if you wish to benefit from your investment. If you are interested in learning about how to achieve financial independence through property investment, register for our ‘Prepare Your Wealthy Future’ seminar at www.pwf.com.au/prepare-your-wealthy-future-seminars.


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