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Speaker 1: Welcome back to Sugar Mamma's Fireplay, the podcast where we

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Speaker 1: ignite your financial independence, fuel your early retirement goals and dreams,

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Speaker 1: and help you build long term, sustainable wealth one smart

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Speaker 1: step at a time. I am your host financial planner,

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Speaker 1: Canna Campbell. I'm also a working mum, an author, and

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Speaker 1: a firm believer in financial freedom isn't just a fantasy.

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Speaker 1: It's actually a formula, a formula that you can start

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Speaker 1: following the moment you decide to. Recently, I came across

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Speaker 1: an article about Australian's dreaming of early retirement but feeling

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Speaker 1: completely trapped by the cost of living. And whilst the

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Speaker 1: stats are sobering, like people working longer, retiring later, and

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Speaker 1: some people even having to resort to living in their cars,

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Speaker 1: the truth is early retirement is definitely achievable, and it's

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Speaker 1: not about luck or inheriting a whole pile of money,

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Speaker 1: or taking risky crypto bets or heading to the casino.

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Speaker 1: It's about strategy, discipline, and most importantly, consistency, making sure

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Speaker 1: that every dollar you earn has a purpose and every

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Speaker 1: habit builds towards your own financial freedom. So today I'm

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Speaker 1: going to walk you through seven powerful but practical steps

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Speaker 1: to help you retire earlier as early as possible, but

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Speaker 1: to also live better and enjoy the life that you

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Speaker 1: have worked so hard to build. So let us get started. Okay,

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Speaker 1: Before I begin, I just want to do a quick

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Speaker 1: reminder that everything in today's episode and all my other

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Speaker 1: episodes is always general in nature and for educational purposes only.

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Speaker 1: It's never product advice, strategic advice, or investment advice. Please

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Speaker 1: go and see a financial planner when in doubt. All right,

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Speaker 1: now that that is out of the way, let's really

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Speaker 1: focus on these sevens and powerful practical steps because these

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Speaker 1: are things that you can apply today and immediately see

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Speaker 1: the benefit, the shift, the uplift. I think you're going

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Speaker 1: to feel so much more empowered and excited about your

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Speaker 1: future when you apply these strategies. All right. Number one,

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Speaker 1: prioritizing your superannuation. So starting with your super Please know

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Speaker 1: this superannuation is the foundation of your retirement. Superannuation isn't

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Speaker 1: just like a savings account that you glance at like

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Speaker 1: once a year when that statement comes in the mail

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Speaker 1: or in your email. It is your future income machine.

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Speaker 1: The more you feed it, the more it will feed

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Speaker 1: you later. Let's say that again, the more you feed it,

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Speaker 1: the more it will feed you later. Now, what is

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Speaker 1: the secret to having lots of money in super? Okay,

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Speaker 1: starting early and contributing consistently even small amounts twenty dollars

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Speaker 1: fifty dollars one hundred dollars each time you get paid

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Speaker 1: can seriously compound into hundreds of thousands of dollars over time. Okay,

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Speaker 1: let's put this into a practical way into real life.

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Speaker 1: So say you're forty, earning say one hundred and twenty

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Speaker 1: thousand dollars a year, and you've got already about one

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Speaker 1: hundred and forty thousand dollars in Super. And by the way,

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Speaker 1: the average Australian at the moment has about one hundred

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Speaker 1: and fifty eight thousand in Super. And say you start

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Speaker 1: contributing just ten dollars a day, that is, skipping those

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Speaker 1: two takeaway copies a day, which works out to be

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Speaker 1: roughly three hundred dollars per month. Now, by doing this,

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Speaker 1: putting that money into your superannuation could add up to

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Speaker 1: one hundred and eighty five thousand dollars to your final

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Speaker 1: superannuation balance by age sixty five, assuming a net return

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Speaker 1: of eight point five percent per annum. And if you're

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Speaker 1: wondering where am I going to get a return of

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Speaker 1: eight point five percent paranum? That's not possible, Well, no,

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Speaker 1: that is actually possible. Just have a look at the

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Speaker 1: long term returns of growth asset. Yes they are volatile,

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Speaker 1: Yes they do come with some risk, but you can

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Speaker 1: manage that risk in a proactive, educated way. And you

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Speaker 1: know the average annual return, for example, for Australian shares

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Speaker 1: is actually an excess of eleven percent per annum. But

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Speaker 1: here's the kicker. Your super has got to be invested

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Speaker 1: for long term growth. Please don't leave your superannuation sitting

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Speaker 1: idle in like a conservative option. Learn about your risk profile,

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Speaker 1: do a risk profile questionnaire, and then go and check

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Speaker 1: the fees that you're paying and make sure you have

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Speaker 1: picked the investment options that are actually aligned with your

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Speaker 1: time horizon. Generally speaking, the younger you are, the more

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Speaker 1: risk you can afford to take because you've got the

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Speaker 1: benefit of time to see your portfolio, that is, your

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Speaker 1: superannuation portfolio recover and catch up. And also whilst the

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Speaker 1: market is down and all those contributions are going in

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Speaker 1: through your employer and maybe even salary sacrificing, or you're

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Speaker 1: putting extra money in, you're also able to pick up

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Speaker 1: those same quality investments at a significant discount. Make make

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Speaker 1: sure your super is invested correctly for your long term

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Speaker 1: growth opportunities. And a question I like to suggest people

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Speaker 1: ask themselves is this, if I retired tomorrow, would my

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Speaker 1: superannuation be enough to fund my lifestyle? If your answer

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Speaker 1: is no or I don't think so, please use this

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Speaker 1: as the moment to pull your finger out and do

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Speaker 1: something about it. Start engaging with your super. Remember, the

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Speaker 1: more you feed it, the more it will feed you later. Now,

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Speaker 1: a great tool to help you work out if you're

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Speaker 1: going to have enough in superannuation or if it's going

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Speaker 1: to give you the lifestyle that you want is jump

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Speaker 1: on the money Smart website and head towards the calculators.

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Speaker 1: There are so many free calculators that can actually allow

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Speaker 1: you to run some projections to see how much money

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Speaker 1: you'll have in super and if it's enough. And my

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Speaker 1: other favorite calculator is the Noll Whittaker calculator, where you

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Speaker 1: can actually see the draw down effect of super. You

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Speaker 1: can see how long your superannuation may last and if

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Speaker 1: you're wondering how long it should ask, I like to

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Speaker 1: sort of estimate it around lasting a minimum of thirty

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Speaker 1: is because age expectancy is around about eighty five on

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Speaker 1: average for women, and if you're looking at retiring at

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Speaker 1: sixty five, you need least at the very least twenty

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Speaker 1: years worth of income ahead of you. And that's not

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Speaker 1: even accounting for, obviously the fact that we are living

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Speaker 1: so much longer thanks to medical technology. All right, Number two,

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Speaker 1: manage your debt wisely. The moment your suberinnation is working

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Speaker 1: for you, the next step is to make sure that

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Speaker 1: your debt isn't working against you. Debt can easily, and

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Speaker 1: I'm talking about the toxic debt here, but easily and

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Speaker 1: quietly eat away into your financial freedom. You want to

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Speaker 1: aim to be completely debt free before retirement. Again, I'm

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Speaker 1: talking about toxic debt here, like the home loans, the

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Speaker 1: car loans, the past and loans, the credit net cards.

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Speaker 1: By now, pay later. I'm not necessarily talking about investment

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Speaker 1: debt as such, So please make sure you prioritize paying

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Speaker 1: off your home loan before retirement, paying off those car loans,

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Speaker 1: all those credit cards, because every dollar that is no

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Speaker 1: longer going towards repayments. An expensive interest now becomes income

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Speaker 1: that you can actually enjoy completely for yourself, and you

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Speaker 1: can spend that money that was originally going towards mortgage

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Speaker 1: re payments, for example on a holiday overseas, or helping

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Speaker 1: out family, or giving more to charity, or just enjoying

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Speaker 1: more cash flow and greater peace of mind. So please

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Speaker 1: focus on the toxic, the high interest debt first and

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Speaker 1: then start tackling the smaller ones like the home loans.

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Speaker 1: You know, make extra payments the moment you can, with

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Speaker 1: pay rises, with tax refunds, you know, give it every

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Speaker 1: dollar a job. Try and round up your payments. So,

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Speaker 1: for example, if your mortgage of payment is say two thousand,

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Speaker 1: nine hundred and fifty, try and make it three thousand

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Speaker 1: dollars a month. I guarantee within a couple of months

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Speaker 1: you won't notice that extra fifty dollars per month going

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Speaker 1: to your homeland, but it will make a massive difference

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Speaker 1: in helping pay your home loan off so much sooner,

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Speaker 1: and also save you interest, valuable interest. So please make

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Speaker 1: sure you align all your payments with your pay cycle

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Speaker 1: and review it every time you get paid, and review

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Speaker 1: your finances every year to make sure that you're on

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Speaker 1: track to being debt free prior to retirement. Another question

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Speaker 1: I like to ask people, or to suggest that they

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Speaker 1: ask themselves, is you know, if I paid off all

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Speaker 1: my debts, how much less income would I need to

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Speaker 1: be able to retire comfortably? Now. When people answer this question,

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Speaker 1: they realized, well, if I had the homelan paid off,

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Speaker 1: I can actually retire five years earlier. Or actually, if

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Speaker 1: I had my home loan paid off completely, I wouldn't

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Speaker 1: need to draw eighty thousand dollars a year. I can

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Speaker 1: actually probably live off sixty thousand dollars a year, which

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Speaker 1: can then mean that my money will last longer, I

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Speaker 1: can retire earlier. It's a really powerful question that can

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Speaker 1: really get you thinking about where you stand today financially

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Speaker 1: and where you want to land. Number three is investing

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Speaker 1: outside of super. If super is your long term safety net,

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Speaker 1: investing outside of superannuation is the bridge your bridge to

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Speaker 1: early retirement. Think about dividend paying shares, think about exchange

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Speaker 1: traded funds, listed investment company is one of my favorite,

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Speaker 1: or you know, even a small investment property. If you

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Speaker 1: can afford to, these are the assets that they're going

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Speaker 1: to help create and pay you passive income before you

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Speaker 1: can access your SUPER. This is really important. You don't

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Speaker 1: have all your money tied up in SUPER and then

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Speaker 1: go to retire and realize you can't actually access it

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Speaker 1: until you meet a condition of release, which fell a

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Speaker 1: lot of us is going to be sort of around

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Speaker 1: sixty five. This is why investing outside of SUPER is

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Speaker 1: very powerful, because you can lean on that money and

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Speaker 1: rely on that money and live independently off that money

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Speaker 1: when you have an investment portfolio in addition to SUPER.

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Speaker 1: So how do you get started? Very simple? Just start small.

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Speaker 1: You know, you could start with a thousand dollars up

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Speaker 1: front and then add say three hundred dollars per month,

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Speaker 1: ten dollars a day. Again, you're skipping those takeaway coffees

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Speaker 1: or skipping that muffin or that banana bread, and just

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Speaker 1: do this set and forget sit it up in an

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Speaker 1: automatic way so you don't even think about it. You

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Speaker 1: just do it as a regular investment plan and let

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Speaker 1: this just sit there. Reinvest every single dollar for twenty

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Speaker 1: five years. Now that could result in a follower worth

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Speaker 1: in excess of three hundred and eighteen thousand dollars. Again

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Speaker 1: using this same net return of eight point five percent,

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Speaker 1: and that three hundred and eighteen thousand dollars investment portfolio

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Speaker 1: is paying you thousands of dollars each year in annual

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Speaker 1: passive income. Now you can jump on the Sugar Mama

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Speaker 1: website and plug in this formula and you can see

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Speaker 1: exactly for yourself how much passive income that portfolio will

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Speaker 1: pay you, particularly when you consider growing income bases such

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Speaker 1: as Australian industrial shares, which is why I love listed

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Speaker 1: investment companies so much, because the income grows over time.

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Speaker 1: And a classic example is to jump on the Whitefield

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Speaker 1: website and again this is not investment advice or product advice,

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Speaker 1: but you can see how Whitefield has steadily increased their

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Speaker 1: different end year after year on average of about five

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Speaker 1: percent per anum. So your passive income is just growing.

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Speaker 1: It's like putting up your rents on an investment property

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Speaker 1: five percent every year. And the passive income is how

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Speaker 1: you buy time, flexibility, and that choice. It is the

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Speaker 1: true authentic definition of wealth and financial freedom is what

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Speaker 1: the Sugar Mama philosophy is all about. Grow your passive

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Speaker 1: income from investing, all right. Number four, stop wasting money

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Speaker 1: on junk. This one is really simple but so powerful.

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Speaker 1: It's one that we unfortunately always need to be reminded of,

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Speaker 1: including myself. So stop buying the things that just don't

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Speaker 1: serve your long term happiness. Every impulse spend at Kmart

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Speaker 1: or Bunnings isn't just costing you money, it's costing you time.

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Speaker 1: Think about that the time before you go and buy

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Speaker 1: something else. Ask yourself, well, I still love this in

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Speaker 1: five years, will at this still be in my home?

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Speaker 1: I still be using it every single day, or using

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Speaker 1: it on a regal basis, and still valuing and appreciating it.

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Speaker 1: Would I rather have this now or have one more

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Speaker 1: day being closer to financial freedom? For me, that's a

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Speaker 1: big catalyst because it really helps anchor my goals back

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Speaker 1: in me. And you know, I guess it almost make

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Speaker 1: me reflect as to what's really important, whether I want

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Speaker 1: instant gratification or if I want long term stability and security.

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Speaker 1: I want the latter. And you know, one of my

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Speaker 1: favorite money managers when I go to the shops is

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Speaker 1: and I'm buying something for myself, is well, I love

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Speaker 1: values and appreciate this. And if I can't answer that

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Speaker 1: with my hand in my heart, I simply put it

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Speaker 1: back and have a think about it and come back

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Speaker 1: to it later. Now, so many times I've completely forgotten

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Speaker 1: about that particular purchase, and thank goodness because my bank

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Speaker 1: balance and my investment portfolio has thanked me for this habit.

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Speaker 1: So when it comes to shopping, please think about, you know,

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Speaker 1: the long term love high in that purchase and the

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Speaker 1: long term love of your own stability, mental health, and

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Speaker 1: financial wellbeing. Stop getting caught up in that short term

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Speaker 1: thrill that dopamine hit that is just really fleeting and

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Speaker 1: actually often leaves us wanting more. You know, go and

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Speaker 1: look at simple fying your life. Simplify your pantry, your fridge,

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Speaker 1: your freezer, your wardrobe, your home. You know, we don't

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Speaker 1: have to clutter our homes with so much furniture and decorations.

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Speaker 1: When we fill our lives with so much stuff, we

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Speaker 1: end up robbing ourselves of time having to maintain those things,

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Speaker 1: having to clean around those things, having to take care

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Speaker 1: of those things. There is so much to be said

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Speaker 1: in living a really simple but meaningful life. So look

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Speaker 1: at what you can cull, remove and simplify in your

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Speaker 1: life to have a greater sense of lightness and so

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Speaker 1: much more clarity. It's something very powerful behind the millism movement.

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Speaker 1: And remember, financial freedom often begins with not actually wanting more,

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Speaker 1: but wanting less and being so grateful for what you

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Speaker 1: actually intentionally choose to keep around you. All right. Number five,

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Speaker 1: create a profitable side hustle or part time gig. So

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Speaker 1: we're going to focus now on the income because there's

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Speaker 1: obviously so much you can cull from your life. You know,

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Speaker 1: a side hustle isn't just about money. It's about maintaining

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Speaker 1: a purpose, you know, having a connection to the community

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Speaker 1: and people are around you, and keeping a skill and

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Speaker 1: staying relevant. This could be something like tutoring a language

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Speaker 1: or a musical instruments, or helping you know, a child

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Speaker 1: do their maths homework or a science project. It could

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Speaker 1: be consulting, you know, consulting in a company, or doing

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Speaker 1: PR work or marketing work. It could be content creation.

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Speaker 1: It could be becoming an airbn and B host. It

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Speaker 1: could be buying and selling vintage fines online. You know,

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Speaker 1: I know a lot of people who have done this

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Speaker 1: recently with furniture, and it's become a full time business,

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Speaker 1: you know, even an extra two hundred dollars a week.

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Speaker 1: It's over ten thousand dollars a year. And if you

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Speaker 1: could go and invest that ten thousand dollars a year

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Speaker 1: on a consistent basis, you know, you could be looking

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Speaker 1: at shaving years off your retirement timeline or getting so

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Speaker 1: much more longevity out of your retirement. You know a

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Speaker 1: great question that I say to people when they say, well,

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Speaker 1: I'd love to have a side hustle, you know, what

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Speaker 1: could I do? And I sort of say to people, will, okay,

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Speaker 1: what's the skill that people always ask your help? Because

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Speaker 1: the answer there is the opportunity for you to then

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Speaker 1: use that. So if people always ask you for help

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Speaker 1: around the house in fixing things, perhaps you could go

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Speaker 1: and put your skills on air tasker as a bit

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Speaker 1: of a handyman. Or perhaps you're really good with a camera.

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Speaker 1: You could then turn your photography skills for events, for weddings,

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Speaker 1: for parties, you know, to capture beautiful photographs of people

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Speaker 1: with their pets. You have the ability to turn your skills,

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Speaker 1: your passions, and your talent into extra income. And I

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Speaker 1: would always say, whatever you decide to do, make sure

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Speaker 1: you're genuinely enjoying doing it all. Right next is downsizing.

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Speaker 1: Consider downsizing for the homeowners. This can be a game changer.

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Speaker 1: When you downsize, you free up so much equity, and

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Speaker 1: most often it's tax free equity. And when you downsize

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Speaker 1: into a smaller home, we often reduce those maintenance costs.

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Speaker 1: We don't have a garden to take care of, rory

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Speaker 1: swimming pool to take care of, or you know, they're

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Speaker 1: just even just the roofs, the fencing, all those things

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Speaker 1: can be really expensive to maintain, and obviously insurance is

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Speaker 1: more so. If we can look at downsizing our homes

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Speaker 1: and it doesn't necessarily mean moving from a house into

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Speaker 1: a studio apartment, it might be going from a house

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Speaker 1: to a smaller house, or a house to a townhouse,

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Speaker 1: or a townhouse to a beautiful apartment, we dramatically increase

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Speaker 1: our flexibility because we don't have to fund so much

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Speaker 1: in just maintaining the home. And if you're over fifty five,

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Speaker 1: you can actually look at potentially contributing up to three

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Speaker 1: hundred thousand dollars tax free into super using the downsizer

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Speaker 1: contribution rules. Now, of course, go and see a financial

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Speaker 1: planner about this, but the opportunity behind this is huge

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Speaker 1: and more and more Australians are picking this up. But

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Speaker 1: it means that decades of extra income can go into

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Speaker 1: your super which are going to potentially serve your retirement

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Speaker 1: for a very long time. And it's not about losing

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Speaker 1: your dream home. It's about creating your next dream lifestyle,

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Speaker 1: one with so much less stress, so much less maintenance

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Speaker 1: and expensive ongoing costs, and so much more freedom. And

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Speaker 1: I know a lot of people who've done that, particularly

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Speaker 1: you know retiree self wondered retirees, and they love the

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Speaker 1: simplicity of the fact when they go on holiday overseas

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Speaker 1: for a month, they lock the door and they walk

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Speaker 1: out the door and they don't have to worry about

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Speaker 1: a storm coming through and the pool needing to be

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Speaker 1: cleaned and the garden growing wild. They walk in the door,

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Speaker 1: open it up, everything is just as they left it.

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Speaker 1: They just they love that simplicity and that ease and

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Speaker 1: that just get on with your life. It's great. And

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Speaker 1: then finally number seven have clear goals which would be

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Speaker 1: reviewed every six months as an absolute minimum. The people

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Speaker 1: who retire early in life haven't just been dreaming about it,

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Speaker 1: they've been planning for it, proactively, planning in a strategic manner.

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Speaker 1: They have set clear measurable goal that they have reviewed

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Speaker 1: on a regular basis. Sometimes they've even failed on those goals,

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Speaker 1: but they've just kept going. They've been consistent, they've kept trying.

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Speaker 1: They've honed in on what's working, and they've fixed what

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Speaker 1: isn't working. And they've had really clear goals like I

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Speaker 1: want to retire by aged fifty five with eighty thousand

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Speaker 1: dollars a year in passive income. They have taken that

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Speaker 1: ideal landing point and this is the value of a

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Speaker 1: financial planet that will help make this happen, and they

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Speaker 1: have broken it down and worked backwards. So they've made

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Speaker 1: small goals behind that that lead them all to that

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Speaker 1: final destination. So to break this down for you, you

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Speaker 1: could say, all right, by twenty twenty six, I want

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Speaker 1: to have built a ten thousand dollars share portfolio and

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Speaker 1: have that portfolio paying me five hundred dollars a yet,

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Speaker 1: or by the first of January twenty twenty eight, I

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Speaker 1: want to be contributing an extra three hundred dollars per

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Speaker 1: month into my superannuation from salary sacrificing. Another great goal

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Speaker 1: to have is I want my mortgage down to five

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Speaker 1: hundred and eighty thousand dollars from six hundred thousand dollars

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Speaker 1: by the fifteenth of February two thousand and twenty six.

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Speaker 1: They've got really clear goals with deadlines, and they review

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Speaker 1: those goals on a regular basis, as an absolute minimum

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Speaker 1: every six months, but also reading them all the time,

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Speaker 1: so they've got it front of mind. And it's not

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Speaker 1: just about a couple of goals that they focus on.

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Speaker 1: They look at their super they include their savings, they

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Speaker 1: include their debt reduction goals, they include their investing. Because

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Speaker 1: every single time you review and you reread your goals,

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Speaker 1: you spark new ideas. And it is the motivation that

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Speaker 1: grows when progress is actually visible because you can see it,

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Speaker 1: you can feel it, and it inspires you to keep going.

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Speaker 1: The hard work is working, the sacrifices are paying off,

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Speaker 1: and actually it's empowering, it's exciting. You want to keep going,

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Speaker 1: and you sometimes even want to actually see if you

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Speaker 1: could do a bit more. You get inspired or empowered

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Speaker 1: to stretch yourself that little bit further and see how

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Speaker 1: capable you are. And I think you are definitely capable

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Speaker 1: as you li into this episode today. So another great

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Speaker 1: question to ask yourself is what is one small change

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Speaker 1: that I can make today, right now that will move

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Speaker 1: me closer towards my retirement And can I act on

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Speaker 1: this before this moment passes? So perhaps you log into

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Speaker 1: your superannuation account and check your balance and check how

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Speaker 1: much it has paid you in the last financial year

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Speaker 1: and income, and then you can put that against a

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Speaker 1: new retirement goal. Really simple allows you to see, actually

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Speaker 1: you are already on this path, and you can actually

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Speaker 1: up the ante with this strategy and actually take full

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Speaker 1: responsibility about this and be proactive, be mindful, be strategic,

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Speaker 1: and bring these dates on sooner and make this passive income,

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Speaker 1: this retirement income so much bigger and give yourself so

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Speaker 1: much more time choice than even luxury if you want.

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Speaker 1: So there you have it, seven practical steps, proven steps

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Speaker 1: to help you retire earlier, to live better, and to

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Speaker 1: truly enjoy the freedom that you have worked so hard for.

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Speaker 1: So my advice is start just start right now today

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Speaker 1: in this moment. Start small, that's okay, but start today.

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Speaker 1: Prioritize your super, pay down debt as fast as you

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Speaker 1: possibly can, make sure you're investing outside of Super when

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Speaker 1: you can, and spend intentionally enjoy when you do spend,

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Speaker 1: but enjoy the satisfaction of actually knowing, you know what,

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Speaker 1: I've bought this for myself and I'm proud. This was

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Speaker 1: a great decision, This was a great purchase, This was

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Speaker 1: a great investment, and earn a little extra, you know,

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Speaker 1: look at that side hustle. Perhaps you can do you know,

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Speaker 1: be part of the gig economy. Tap in and tap

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Speaker 1: out when you need to. And if you can downsize

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Speaker 1: when it works for you, when it feels like the

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Speaker 1: right time, and never stop checking in on your financial journey.

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Speaker 1: You'll progress your goals. You know, retirement isn't about completely

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Speaker 1: quitting work. It's about choosing how you want to live

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Speaker 1: your life. Now. Thank you everybody for listening today's episode

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Speaker 1: on Sugar Mama's Fireplay. I am financial planner Canna Campbell

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Speaker 1: and as always, keep your fire, that is your financial fire,

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Speaker 1: burning bright within and please send this to all of

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Speaker 1: your family and friends who need to listen to these

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Speaker 1: seven proven practical strategies that can help you retire early.

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Speaker 1: I will catch you at the end of the week

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Speaker 1: for start here. This is Sugar Mamma's fire Player