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Speaker 1: Good morning, and welcome back to Sugar Mamma's Fireplay, the

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Speaker 1: podcast where we dive deep into financial empowerment, helping you

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Speaker 1: take control of your financial future with smart, simple and

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Speaker 1: effective financial strategies. I am your host financial planner, Canna Campbell,

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Speaker 1: and today's episode is all about learning the care lessons

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Speaker 1: from investing that can help you grow your wealth and

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Speaker 1: achieve financial freedom. Now, recently, I came across a blog

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Speaker 1: post by an economist, Shane Oliver from AMP, reflecting on

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Speaker 1: his forty years of investing, and it sparked something within me.

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Speaker 1: You see, Shane's insights reminded me that there are universal

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Speaker 1: principles that withstand the test of time, no matter how

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Speaker 1: volatile the market may seem. So today I want to

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Speaker 1: share with you my seven key lessons I've learned on

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Speaker 1: my own financial journey to empower you on yours. So

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Speaker 1: let's get started now. Before we begin, a quick reminder

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Speaker 1: that all of my content is general in nature and

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Speaker 1: educationally based only, and always you can refer to my

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Speaker 1: financial planning license details in the podcast notes. All right,

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Speaker 1: let's get started. Lesson one, have a passive income goal,

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Speaker 1: not just a wealth goal. My first lesson to share

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Speaker 1: with you is that financial freedom is not about how

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Speaker 1: many assets you have, or even how much money you

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Speaker 1: have in your bank account. It's actually all about how

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Speaker 1: much passive income you earn. Being asset rich doesn't mean

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Speaker 1: you're financially free. If those assets aren't generating a reliable, consistent,

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Speaker 1: or even big enough income, how can you possibly live

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Speaker 1: off that? That would mean that you are having to

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Speaker 1: sell down your assets and you're essentially going backwards. That

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Speaker 1: is why I always recommend have a passive income goal

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Speaker 1: where you live off your investments without ever touching the capital.

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Speaker 1: And if you're not familiar, passive income can be dividends,

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Speaker 1: rental income, or other strengths. But you see, the important

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Speaker 1: thing about passive income is it gives you the freedom

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Speaker 1: to choose how you spend your time. So instead of

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Speaker 1: focusing on a net worth figure or even a gross

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Speaker 1: worth figure, I recommend setting yourself a passive income goal

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Speaker 1: like fifty thousand dollars a year, eighty thousand dollars a year,

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Speaker 1: two hundred thousand dollars year. It doesn't matter whatever is

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Speaker 1: right for you. Work backwards from the lifestyle that you

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Speaker 1: want and figure out how much passive income, you will

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Speaker 1: need to sustain it. That is what true financial freedom

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Speaker 1: is really all about. Lesson to make additional contributions to

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Speaker 1: your superneration. Yes, I know this listen is a bit

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Speaker 1: of a boring, dull one, but I promise you it's

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Speaker 1: an important one that you won't regret following if you

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Speaker 1: can implement it. Of course, the power of superneration. Now

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Speaker 1: you've heard me talk about this before, but it is

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Speaker 1: worth repeating. Even small contributions can add up massively over time.

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Speaker 1: Think about it. Putting an extra one hundred dollars per

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Speaker 1: month into your super might not seem like much now,

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Speaker 1: but thanks to the magic of compounding interest working for you,

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Speaker 1: it can make a world of difference in the long run.

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Speaker 1: In fact, if you have say fifty thousand dollars in super,

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Speaker 1: and you are aged thirty five, earning say eighty thousand

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Speaker 1: dollars per year, and you can put an extra one

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Speaker 1: hundred dollars per month with your after tax salary, that

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Speaker 1: will potentially mean that you have more than sixty five

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Speaker 1: thousand dollars more in retirement. When you go to retire

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Speaker 1: at age sixty five, it's just over twenty five dollars

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Speaker 1: per week. Doesn't the sound of extra sixty five thousand

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Speaker 1: dollars in your superannuation when you go to retire sound

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Speaker 1: good to you? I know for me, it's something I

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Speaker 1: would definitely value, and a great way to help make

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Speaker 1: sure that this actually happens is to set up a

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Speaker 1: regular contribution plan with your superannuation. Provide, almost, set and forget.

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Speaker 1: And as you know hopefully from listening to all my

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Speaker 1: other episodes, superannuation is one of the most tax efficient

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Speaker 1: ways to build wealth. As I say, super sexy, and

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Speaker 1: the restrictions on accessing it before retirement are actually a

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Speaker 1: good thing. They act as a safeguard to keep you

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Speaker 1: from dipping into your future over time. You can increase

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Speaker 1: those contributions as your income grows, obviously within the annual

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Speaker 1: caps and boundaries, but trust me, your future self will

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Speaker 1: be incredibly thankful that you did this. Lesson three. Super

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Speaker 1: and non super investing are just as crucial. So while

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Speaker 1: superannuation is powerful, it is sexy, it is crucial for

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Speaker 1: your wealth creation journey. I also believe that it is

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Speaker 1: also important to have an investment portfolio outside of super

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Speaker 1: I call it a two pronged investment approach. Why because

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Speaker 1: it gives you flexibility. If you are aiming for an

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Speaker 1: early financial independence, that is, in early retirement prior to

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Speaker 1: age fifty five, you do not want all of your

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Speaker 1: money tied up in superannuation, in particular if the legislation

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Speaker 1: changes and you can't access it until a later stage

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Speaker 1: than age sixty. By investing outside of super as well,

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Speaker 1: whether it be in dividend paying stocks, real estate, or

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Speaker 1: other investment assets, you have a lot more control. It

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Speaker 1: is a bit of a balancing act, but superano and yes,

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Speaker 1: superannuation is great for long term security, but having investments

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Speaker 1: that you can access that passive income or even capital

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Speaker 1: if you need to, can help you reach financial independence

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Speaker 1: on your own terms, not under the government's terms. Lesson four.

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Speaker 1: Don't try and be a stockbroker. Use ETFs and listed

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Speaker 1: investment companies. So Lesson four is very simple. And I

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Speaker 1: know this may sound quite as a surprise considering I'm

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Speaker 1: a financial planner and I work with so many stockbrokers.

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Speaker 1: But don't try and beer stockbroker. I certainly don't try

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Speaker 1: and beer stockbroker. Picking individual stocks is not only time consuming,

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Speaker 1: but is incredibly risky. Instead, make your life a lot

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Speaker 1: easier and consider using exchange traded funds or my personal

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Speaker 1: favorite listed investment companies. These are professionally managed and give

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Speaker 1: you exposure to an immediate exposure to a wide range

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Speaker 1: of stocks without having to stress over picking individual correct

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Speaker 1: ones outsource that delegate those stresses, those responsibilities to someone

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Speaker 1: who's got ten, fifteen, twenty, even one hundred years of experience.

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Speaker 1: And if you haven't listened to my episode on with Whitefield,

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Speaker 1: I highly recommend that you go and do so. It's

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Speaker 1: an absolutely brilliant episode where I pick these CEOs of

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Speaker 1: Whitefield Angus Glusky about the power of listed investment companies.

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Speaker 1: And yes, of course is a small ongoing fee attached

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Speaker 1: to ETF and listed investment companies, but when you think

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Speaker 1: about the time you save and the professional expertise you're

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Speaker 1: leveraging off, it is absolutely worth every single dollar plus

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Speaker 1: With ETFs and listed investment companies that help you diversify

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Speaker 1: your money your investment portfolio automatically immediately spreading your risks

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Speaker 1: across a broad range of markets and companies and industries,

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Speaker 1: rather than being tied to save one, two, three, or

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Speaker 1: even four different companies. So trust me, you will feel

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Speaker 1: so much more relief in using an ETF or a

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Speaker 1: listed investment company. And yes, I would say about fifty

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Speaker 1: to eighty percent of my own investment portfolio with both

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Speaker 1: my superannuation investment portfolio my own personal share portfolio, I

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Speaker 1: use listed investment companies and ETFs from the majority of

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Speaker 1: the time less than five. Turn down the noise, especially

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Speaker 1: during times of market volatility. This lesson is particularly important

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Speaker 1: in today's world. Turn down the noise, that is, the

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Speaker 1: white noise. With social media, twenty four hour news, and

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Speaker 1: the constant chatter from financial experts predicting crashes and booms,

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Speaker 1: it can be incredibly overwhelming. It is so easy to

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Speaker 1: get caught up in these fear driven headlines about an

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Speaker 1: impending market crash, but remember these predictions are rarely accurate

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Speaker 1: in the long term. The truth is markets go through cycles,

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Speaker 1: ups and downs, but that doesn't necessarily mean there is

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Speaker 1: a disaster looming. In fact, quite often these so called

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Speaker 1: disasters end up being amazing opportunities. That is, opportunities to

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Speaker 1: buy the same quality assets but at a significant discount.

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Speaker 1: And when I say the same quality assets, I'm talking

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Speaker 1: same quality asset income stream as well. So focused in

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Speaker 1: your own lane and stay the course, tune out to

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Speaker 1: the doom say, and keep hustling in the meantime to

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Speaker 1: help create as much spare cash as possible to put

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Speaker 1: towards growing your investment portfolio and your wealth creation success.

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Speaker 1: And as I used to tell my clients, when you're

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Speaker 1: feeling stressed or worried, just go and take a nap.

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Speaker 1: You'll feel so much better when you wake up. Lesson six,

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Speaker 1: learn from market downturns. Speaking of downturns, less than six

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Speaker 1: is to embrace these downturns. Marcer corrections and downturns are

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Speaker 1: very normal, and if you're prepared, they can actually present

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Speaker 1: huge buying opportunities. History shows us that markets always recover

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Speaker 1: on average about eighteen months, So during these times of

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Speaker 1: Marco volatility, you actually might be able to scoop up

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Speaker 1: quality investments or different quality investments at seriously discounted prices.

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Speaker 1: And that's something I always try and do when it

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Speaker 1: comes to the market panicking. So if you are some

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Speaker 1: like myself who is investing it in dividend paying stocks,

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Speaker 1: a downturn can actually boost your passive income and as

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Speaker 1: you can reinvest those dividends at those lower prices, whilst

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Speaker 1: the market is downturn. This can actually be really powerful

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Speaker 1: for you, which is again why it's so important to

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Speaker 1: stay focused, stay patient. I remember, downturns are actually your friend.

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Speaker 1: If you are in it for the long run less

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Speaker 1: than seven please please please reinvest your dividends if you

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Speaker 1: can so. My final lesson for today's episode is all

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Speaker 1: about reinvesting. When you're working towards a financial goal, that

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Speaker 1: is building up a certain amount of passive income, it

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Speaker 1: is crucial that you learn to live off your income

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Speaker 1: so that you can afford to reinvest all those dividends.

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Speaker 1: Don't spend your dividends if you can avoid it. If

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Speaker 1: you can reinvest those dividends back into the portfolio that

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Speaker 1: is by the same asset, or use that dividend to

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Speaker 1: buy other stocks to add greater diversification to your portfolio,

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Speaker 1: it is incredibly valuable. This is how you truly grow

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Speaker 1: your wealth over the long run. In fact, the one

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Speaker 1: thousand dollars project portfolio is just about to hit three

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Speaker 1: hundred thousand dollars, but I have actually not really added

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Speaker 1: any new investments to the portfolio. The growth over the

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Speaker 1: last couple of years has been because of dividend reinvestment.

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Speaker 1: I've actually been focused on paying down the attached margin

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Speaker 1: loan to that investment portfolio. So the reason why it's

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Speaker 1: just about to hit three hundred thousand is because of

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Speaker 1: dividend reinvestment. I never spend those dividends, always reinvest and

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Speaker 1: reinvesting those dividends not only increases your shares, but also,

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Speaker 1: as I said, it compounds your future passive income. So

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Speaker 1: please know this. Every dividend that you can reinvest puts

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Speaker 1: you one step closer to your financial independence goal. So

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Speaker 1: please promise me that you're sticking to a regular investment plan,

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Speaker 1: but you'll also reen investing those dividends where you're letting

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Speaker 1: your money work for you into the long run, well

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Speaker 1: after you've earned it. And if you're wondering about one

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Speaker 1: thousand dollar project investment portfolio, that dividend income is approximately

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Speaker 1: sixteen to seventeen thousand dollars per annum in dividends, which

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Speaker 1: of course are always reinvested. Now, as we wrap up

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Speaker 1: today's episode, please know that these seven lessons have been

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Speaker 1: essential for me on my own financial journey towards financial freedom,

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Speaker 1: so I really hope that they inspire you to take

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Speaker 1: control of your financial future as well. Remember, wealth building

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Speaker 1: is a marathon, not a sprint. If you need to

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Speaker 1: slow down a bit, stop and stretch, drink some water,

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Speaker 1: catch your breath, that is perfectly fine just when you

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Speaker 1: can get back on track and keep going. Building wealth

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Speaker 1: is about endurance. It's about sustainability, it's about longevity. Focus

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Speaker 1: on your passive income. Invest on a regular basis, reinvest

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Speaker 1: all the time, turn down the noise, and know that

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Speaker 1: if you can do these simple things, you are well

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Speaker 1: and truly on your way to achieving financial independence. Thank

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Speaker 1: you absolutely everyone for listening to this episode of Sugar

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Speaker 1: Mamma's Fireflight. If you found these seven lessons helpful, please

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Speaker 1: make sure that you share this podcast with your friends

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Speaker 1: and your family, and be sure to make sure you're

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Speaker 1: following this show and subscribe to us on Instagram for

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Speaker 1: more tips and strategies on building your path to financial freedom.

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Speaker 1: Until next time, keep hustling and stay financially empowered. This

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Speaker 1: is Sugar Mamma's fire