B Invested

What Does It Mean When Nathan Says ‘Exit The Matrix’?

You will often hear b Invested founder Nathan Birch talking about ‘‘Exiting The Matrix’, breaking free and ‘living life on your own terms’.

If you’ve seen the Matrix movies, you might imagine all of us being sedated and hooked up to wires that simulate a life and real world, and wonder, what’s this got to do with property investing?

Well, don’t worry, Nathan doesn’t fancy himself as a ‘Neo’ type character able to slow time and dodge bullets by using heightened perception.

But he does have a perception that allows him to see past the boundaries of the rat race existence that we are conditioned to live in from a young age. He has used his work ethic, experience and knowledge from years of investing to break free of the 40 hour week of slaving to pay off a mortgage. He lives life on his own terms, with the help of a huge portfolio of cashflow generating properties and other assets.

Our version of The Matrix

From the time we were kids signing up to a junior bank account at primary school, we were conditioned to be a part of this society. Earn pocket money from chores, put it in the bank and save it to buy something you want. Sounds innocent, but this was actually the beginning of your life as a slave to tax and debt. Your entry to the Matrix.

In your teens, you’re encouraged to get a casual job, maybe at Maccas or Woolies, and save money for material goods. You might buy a car with a loan and there’s your introduction to paying interest.

 You’re encouraged to go to university and take out student debt, to be paid off once you start earning money after graduation. While studying, you’re working casually, paying tax, taking out health insurance, and renting a sharehouse. You’re encouraged to buy big TVs, go on holidays and borrow more money. As you go into consumer debt, the more entrenched you are in the Matrix.

Once you graduate, you are already saddled with debt and need to immediately start working as hard as possible to keep up with your repayments. You’re told you need to work harder and harder for your whole life to earn enough superannuation to retire and live frugally for the rest of your days.

In between all this, you take on more debt, buying cars, paying for a wedding, starting a family, getting a house with a massive mortgage and still taking holidays. And don’t forget to pay thousands of dollars in insurance to protect everything just in case.

Make your move

Now you know about the Matrix, what can you do to avoid it? If you’re already in it, how do you escape?

Well, instead of using your work income to take holidays, buy TVs, buy cars or take out credit cards, you can put it towards income producing assets like property.

Nathan amassed his property portfolio of more than 200 properties by using his hard earned money to invest in property and build wealth gradually.

Head for the exit

Once you break into the property market, following his three rules of buying below market value, with an upside for growth, and strong cashflow, you can use equity and rental return for a deposit for your next property, and the one after that, and the one after that.

Meanwhile, you implement regular rental increases on the properties you have, which add to that passive income you are getting year after year. But let’s say you end up with 10 properties and you raise rents by $10. That would be an extra $100 per week, or $5000 in total for the year. You can actually give yourself a $5000 pay rise every year… have you ever had a job like that?

As time goes by, you have the option to sell some of your properties to pay off the remaining ones in your property portfolio and be debt free with rental income coming in, or you can hold onto your assets and watch them continue to grow in value over time, while your rental income goes up and up.

Once you have enough passive income to service your loans, with enough left over to live on, you can Exit The Matrix.

If you want some help getting started, reach out to b Invested on 1300 367 925, or send us an email at admin@binvested.com.au.