[arve url="https://www.youtube.com/watch?v=CpXXuKquOMk" mode="lazyload" align="center" /]

Book Your Free Strategy Session

Resources Related To This Episode

Rich Dad Poor Dad Book

Barefoot Investor

Barefoot Investor Bank Accounts Explained

Questions About Barefoot Investor Bank Accounts

2 Properties To Financial Freedom

Transcription:

So like most people in Australia, I have a credit card or me and my wife do, it's from St George. Mastercard could eliminate $2,000, but we are actually working to completely get rid of our credit card. And then this episode I'm going to talk about why that is and why I think for us it's going to be best not to have a credit card, so this might help you. You might want to assess whether or not you want credit cards in your life or whether you actually want to step away from credit cards, which is what me and my wife will be doing in the future. Hey, I'm Ryan from on property.com dot EU. I hope people invest in property and achieve financial freedom. And for me, getting rid of the credit card is all about financial freedom and maximizing the cashflow as well as simplifying my life and simplifying my banking.

Now, if you haven't read it yet, Rich Dad, poor dad is an amazing book and one of my favorite things in that book is how he redefined the word asset and redefine the word liability. This completely changed my life when I read it. I sat down and read basically all of his books when my wife was pregnant with our first kid, so that was about nine years ago and I achieved financial freedom and about seven years or six years after reading his books through my businesses and through applying these principles and so he redefined asset and liability. And so what most of us think when we think of an asset is we think of something that's worth value. That it has some sort of value that you could sell it. So your house might be an asset. Your car would be listed as one of your assets.

My gamecube controllers that are worth about $50, age would technically be an asset, but Robert Kiyosaki takes it further and says no, and asset is not about whether or not something is worth money or whether or not it holds value, but an asset is about what that item does to your cashflow. And so an asset is something that puts money into your pocket and so delivers you passive income and then also redefines liability as something that takes money out of your pocket. And so this is an ongoing expense. And so that's why it was so controversial when it came out because he says, your house, the one that you live in is not an asset because living in that house costs you money. Even if you completely paid off the mortgage, you still got counselor rights, you still got insurance, you've still got maintenance. So from a cashflow perspective, it's a liability.

And so you may or may not agree with these terms. It's fine. Like if you want to call your house and asset, that's fine. Pick another word for things that generate passive income, but just this idea of focusing on in your life, building assets and working for assets, working to acquire assets and then getting rid of the liabilities in your life. And this is why I've come to the conclusion that we're just going to get rid of a credit card because it is a massive liability for us. I also recently read the barefoot investor. If you haven't checked out that book, go ahead and check it out. Uh, talk exactly about how I set up my bank accounts as a result of that book in episode five, hundred and 10, so I go to on property.com dot a u four slash 5:10 if you want to learn more about the barefoot investor bank accounts, but basically the mixture of realizing that my credit card is a huge liability as well as this new banking system.

I don't need a credit card anymore. So let's talk about the liability aspect of it and how that's affecting my financial freedom and how it might be affecting your financial freedom.