Oct 14, 2020
Money doesn’t care about what color, race, or class you are.
It doesn’t care what your parents did or who you think you are. It doesn’t discriminate.
And you have the same rights and opportunities as everyone else to make as much of it as you want.
But the majority of Australians will never be financially independent. On the other hand, a small group of Australian investors and business owners are becoming very wealthy.
Why is that?
Most people complain they don’t have enough money. But the reality is that most people just don’t understand the rules of money.
Today, I’m going to have a chat with Pete Wargent about how the rules of money have changed in this new era.
3 ways in which the rules of money have changed.
Lower interest rates
Interest rates will be stuck at the effective lower bound for years to come.
Yields are also being pushed down further out along the curve, with the 3-year bond yield being a particularly important funding benchmark in Australia, so mortgage rates are also falling to the lowest level in history.
Central banks and governments want you to go out and spend, invest, and build businesses, and incentives will be put in place for you to do so.
Cash is dead
The cash economy was dying before 2020, but the shutdown effectively sounded the death knell for cash as a means of payment and exchange.
The latest usage data showed that retail spend on credit cards is now actually higher year-on-year, and this in spite of the shutdown. Increasingly we pay for goods using plastic rather than physical currency in the form of notes or coins.
This trend was well underway before 2020, but the shutdown has accelerated the death of the cash economy.
Overcoming mental obstacles about money
More than ever before, it’s important to be mindful and attentive towards your money, but it’s also critical to remove the silent mental obstacles towards growing your wealth and bank balance.
As alluded to above, central banks are effectively creating new money at an unprecedented rate.
With the growth of social media and online commentary, it’s become abundantly clear that many infer you can somehow only have more and become more at the expense or to the detriment of others.
To be blunt if that’s your world-view, and how you view money and self-development, you’ll never sustainably be able to have more wealth.
Money is, after all, inanimate; it does not and cannot care what you think of it.
Links and Resources:
Metropole’s Strategic Property Plan – to help both beginning and experienced investors
Pete Wargent’s new book Low Rates High Returns
Some of our favourite quotes from the show:
“The way you become wealthy is by upgrading your wealth operating system; turning up your financial thermostat.” – Michael Yardney
“You can’t have a scarcity mentality about it; you’ve actually got to think abundantly.” – Michael Yardney
“Successful people don’t let setbacks set them back.” – Michael Yardney
Shownotes plus more here: What You Must Understand About How the Rules of Money Have Changed with Pete Wargent
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