B Invested

Why We Were Born To Be A Tax Slave & How You Can Make Money Work For You

Remember when you were a kid at primary school, and one day, the local manager of a major bank comes in to ‘educate’ you on banking, finance and how to save?

You were then able to sign up to your very first junior bank account with a deposit book, you were given a few soft toys or a pen or calculator as a little gift and you could even go ahead and deposit some of your pocket money.

At the time you probably thought it a bit exciting and your parents may have seen it as a good bit of community work from the bank… the trusted local financial firm helping kids see the value of saving their money.

 And as for the bank, hey, they’re doing kids and families a favour, right? And if they just happen to earn themselves a class full of lifelong, fee paying customers in the process, what’s the harm?

Now that you’ve grown up, do you look back on this and still see it as vital education? Or is it more like the beginning of your life as a slave to tax, debt and preconceived concepts of how to live your life financially?

And the ‘education’ continues

From there, you graduate to a regular savings account and, as you become old enough to start working in your teens, you begin saving up for material goods that you want. A surfboard, a new sound system, maybe even a car. Meanwhile you’re encouraged to study hard so you can go to university. If you can’t pay the fees up front, don’t worry, you can put it all on student debt, to be paid off once you start earning money in your new career afterwards. While you’re doing that, you’re probably still working a casual or part time job, paying tax, taking out health insurance, renting a sharehouse, and so on. You’re bombarded with marketing to buy shiny toys, giant TVs, head off for weekends away and borrow, borrow, borrow money in order to be able to do everything you want. You are now well and truly entrenched in the world of consumer debt.

Time to get on the treadmill

By the time you have finished studying, you are saddled with enough debt to start working as hard as possible to make your payments right away. Those around you tell you that you need to work hard your whole life in order to accumulate enough superannuation to retire and be able to live out your days on a meagre allowance. Even as you start out in your adult working life, you have the weight of student loan and medical debt holding you back. Now you need to get a car, buy a diamond, get married with all the bells and whistles you can afford, start a family, buy a house where you’ll be mortgaged to the hilt, and work away towards paying the debt off, all while saving up an emergency fund, treating yourself to regular expensive holidays and thinking about investing wisely somewhere…maybe shares, maybe term deposits and so on. You won’t be able to afford to risk losing any of the hard earned assets you have, so you’ll be paying thousands of dollars in insurance that you know you’ll never use, just in case.

Exhausted yet?

Does this all sound like it belongs in the too hard basket? It doesn’t have to be. It suits society’s richest to keep the rest of us slogging away, paying money to the businesses they own, keeping their assets growing and worthwhile and topping up the bonuses they can pay themselves. They are part of a system that is designed to widen the wealth gap. They are calling all the shots and the rest of us are powerless to do anything about it.

But guess what? Say you don’t want to spend $100,000 on university debt …you don’t have to. Say you don’t want to get a credit card… you don’t have to. Maybe you don’t want to spend too much on your dream home right away and struggle to pay it off your whole life… you don’t have to. Maybe you don’t want to keep all your savings in the bank earning next to no interest… you don’t have to.

Live like the wealthy

People never became wealthy by spending money they didn’t have and then chasing their tails their whole lives. Instead, they took the money they earned and invested as much as they could manage into the right kind of assets. Shares, businesses, property and so on.

b Invested’s own founder Nathan Birch has accumulated more than 230 properties in his life, by doing things his own way. He didn’t put it all on the line for university or an overpriced dream home in the suburbs. He worked hard, earned money and used it to invest in property below market value, with capital growth potential and low holding costs, plus good rental income as cash flow.

He’d been buying affordable investment properties for many years before he earned enough to create the home he wanted to live in. He knew that in order to make a decent pay cheque, he needed to think differently, understand how money works and begin collecting assets in the short term for long term gain. And now, as interest rates stay low, inflation kicks in and property markets grow, that mindset has paid off.

If you want to learn how to live life on your own terms, reach out to b Invested.