Lourens Oberholzer — The need and benefits of a personal financial coach

On a Monday night what's involved as we do and as always I look forward to this time of the month because my guest in studio is Lawrence Erberholzer from Retire Rich and Happy. Hello Lawrence. Hi Dave, hi listeners. You well tonight. Yeah I'm very well tonight. Just made it in time. Dodging traffic I believe. Oh you couldn't have had, I mean okay the weeks only started but my last week didn't end terribly well though. I was driving through to the studio in the trusted Mazda Roti and just down the road on the N1 South it said nah not going anymore. Engines seized so according to friends and family my new name is now Carlos. So yeah I could do with another car but anyway so also you know you have those things enough it's sort of one step forward two steps you know one step forward two steps back and it carries on like that but we don't really these things in life happen I mean you can plan as much as you like but something is still going to come and bite you on the boat. And what happens is most of us are very reactive when we look at these kind of things so life happens and then we react towards that and part of what we teach people at Retire Rich and Happy is to start moving from moving from being reactive to being creative so instead of being reactive the whole time already have a lot of these things planned. Now you can't plan for everything things will happen. No you definitely can't but I got to tell you and Shama it was it was quite nice because you know per L you battle sometimes unless you write things in short words and big letters so I said we got Lawrence on the show tonight and you know Retire Rich and Happy and he decided we were just talking retirement tonight so we kind of talking retirement because it's a goal is always retirement is how do you get to the point and remember our definition of retirement is a little bit different it's not when you stop working is when you get to the point where you can work because you want to not because you have to anymore yeah that's retire that's retirement for me not when you stop working and go sit on the beach yeah so we're talking about the concept of coaching and and financial coaching personal financial coaching yeah specifically tonight which is something that is very new it's not something that is very prevalent in South Africa consumers aren't really used to the whole concept of of getting somebody to coach you on how to spend your money and what to do with it it's it's quite a new concept well I gotta tell you it may be a new concept but it is something that I believe is desperately needed yeah you know and I often use myself as a as a reference I'm an entrepreneur I own a business you know I consider myself fairly intelligent and then up-to-date with me but financially I'm horrible yeah and we tend to yeah we we especially entrepreneurs because we we're always looking to tomorrow we're always looking we're not very good at planning we're not very good at control we just run off to the next opportunity which makes it difficult for us to really have a strategy to take control and move us forward yeah and this is this is vital and I mean there's these times and I've said this before it's not it's not a secret I am I've sort of joined up with retire rich and happy and we're going through the process and I mean you've sat there with mr. grumpy across from the table from you and yeah you know what these times and when you talk to me initially about this coaching thing the first thing that happened is like my back I don't really want to tell you I don't know what are you gonna teach me you know I know and then when you start talking about concepts and things like that suddenly I sort of took a step back and went well hang on as much as I'd like to think I know a lot I really don't yeah and and I mean I've probably almost definitely gotten myself into the position I'm in due to to my own financial ignorance and not knowing how to plan and what to plan for not having those contingencies that you talk about so talk to me a little bit about what it is to have a personal financial coach so a lot of people would think okay but why would I have why would I need a personal financial coach I mean I don't need that or I already have a financial advisor why do I need a coach because my financial advisor is helping me with financial advice now just a couple of differences firstly your advisor your financial advisor your broker usually helps you with your risk in your investment planning and that's sort of the extent of what they do maybe a little bit of tax planning where a personal financial coach will help you with cash flow management budgeting being more efficient in how you spend money creating a strategy for you to follow instead of just randomly spending and doing investments financial advisor is usually paid for doing things for you so that's that's that the whole industry is basically built around creating passive investors so that what what they teach you is sign the debit order they take the money as a debit order out of your account and they do something with it and you hope they do something with it where the personal financial coaches purpose is to empower you so that you can do the things for yourself you understand how these things work and and follow the strategy well I give you I'll give you a prime example of how sort of financially illiterate we tend to be my sister's worked for a company for almost 20 years now they are going through a massive process whereby they are retrenching people and and they they came to and she's not been asking me about this and I'm like I don't know the answer because they've now come to and gone well maybe we weren't retrenching but we're gonna offer you early retirement and then suddenly the guy who's handling her sort of pension fund or RA or whatever is on the phone going listen we can do this that the next thing she hasn't heard from the man in the last five years yeah but now suddenly there's gonna be money yeah and suddenly he now wants to help and I'm going don't make any decisions let let's talk to some people first and this is the thing unfortunately the industry there's a lot of fantastic people in the industry with the best intentions but the industry motivates people in the industry to sell products because only through selling those products do they generate revenue because the industry hasn't moved completely into a fee-based structure or anything so if you are in motivated to earn income from selling products that's what you're gonna do you're gonna find an opportunity to sell a product and then jump on that opportunity and that's that's an unfortunate thing in the industry but unfortunately that's what we're working with at the moment yeah and it's I mean when I'm not saying the motivation is always you know wrong but I'm saying it's just when you have it you don't have people always looking at the best option and for you and yes I understand people like yourselves like other financial advisors consultants whatever you want to call them need to make a living as well let's be honest and I'm all for people making a living so we're going to get back to chatting about personal financial coaching in just a little bit my guest in studio is Lawrence Urbano from retire rich and happy just to remind it to you that if you'd like to get hold of us SMS 4 1 3 4 8 SMS are charged at 1 ran 50 otherwise you can WhatsApp us the WhatsApp line 0 8 4 8 double 2 0 9 3 8 that 0 8 4 8 double 2 0 9 3 8 stay tuned I mean maybe maybe if I'd met Lawrence a few years earlier I would have had a contingency fund for the Maserati so in studio with me this evening Lawrence urban holes are from retire rich and happy we talking having a personal financial coach yes so we we call our coaches wealth strategists because what they're basically gonna do is they're gonna help you set up a strategy to create wealth that's the end in goal is to get you and we'll talk about the breakout point when we when we get to that level but it's to create wealth and to create wealth that we talk about design your life and an extraordinary life you get by design not by chance so if you want to create wealth and you want to get to retirement you have to plan it you can't it won't just happen by itself by by chance so there's a couple of things that they do the first thing they will teach you the basics of financial management so that you understand the whole cash flow process they'll help you create healthy money habits so that you understand and get into a different mindset toward your money people have a very negative mindset towards their money a lot of the time so we need to create those healthy money habits they'll help you put in place effective strategies and clarify your goals so you know exactly what you're aiming at at each level that you're going through and we'll talk about the different levels now and last but not least keep you accountable because that is something that's very important is having somebody that will just keep you accountable for getting to your goals and do that you're not wide etc etc it should have initially goes against my nature because I'm very much a don't tell me what to do kind of person but I realized the necessity for it now is this part of what retire rich and happy does but it's a it's a greater part or another part of the whole process so for example we've now joined up with you we've signed up and we've gone through a couple of steps already so are we now sort of are we now ready to almost as it were apply for the personal financial so what happens is the personal financial coaching is sort of the way we help you implement the five steps okay through the personal financial coaching you get the support and the help to implement the five steps practically into your personal portfolio because it's one thing to teach people the five steps it's a completely different thing for them to actually know how to implement it and that's where the coaching started to develop in we saw that people came to the forums they sat with our risk specialists etc etc but it's difficult for them to take all that information make it practical and actually implemented it so we created this personal financial coaching to help people do it practically in their lives because it's actually very simple once you know the strategies he says that but I'm still not convinced just a reminder four one three four eight the SMS line you can whatsapp us oh eight four eight double two oh nine three eight I have to ask she knows that's early in the show are we giving away anything of course we always give away so what are we gonna give away is because we talking about personal financial coaching what we'll do is we'll give away five sets of personal financial coaching where we completely waive the setup fee so that initial session we for three hours we sit with you we implement everything we get your strategy up and running the cost of that is about 3,000 rand that we will wave so you don't have to pay that upfront fee for that three-hour session and we will also include two VIP tickets for every winner for the forum on the 27th of July so forums 27th of July the next one where is the you've just had one or one's just about to happen no no we had one in in April and the next one we extended this one a little bit so the next one is in July so now people want to enter what do they need to do okay so you can SMS or RH and your name to 45509 so please it's our number again 45509 so our RH and your name it's very important that you put our RH in your name otherwise we don't get it or you can WhatsApp or RH in your name to 082641355 now please note if you want to get a standard chance to win these things don't use the mix SMS or WhatsApp number these are specific to our RH so it's the SMS line 45509 so your SMS is RRH and your name 45509 or if you want to WhatsApp your RH your name to 082641355 we will randomly draw who we're going to give you so we're gonna choose three numbers for us quickly there's five we're giving okay five sorry two numbers yeah three seven let me just write down here three seven eleven thirteen's got to be lucky for somebody and seventeen okay so three seven eleven thirteen and seventeen those SMS's WhatsApp's we will we will give those that prize away somebody's just a messaged in and gone have you found people you can't help at all I thought I was one of those people no you don't we can always help because we we don't get people to meet us where we are we meet people where they are yeah and then we start slowly building on top of that and you'll see as we go I go through the different levels of coaching you'll see how we start very basic and then move up from there so everybody can be helped if a person is completely unemployed he has no income he has no job he has no prospects for a job that is difficult but if you're employed if you have an income we can help we can't give you a job listen let me tell you something if Lawrence didn't run screaming when I said to him do you want to work with me because I'm probably I'm very close to probably the worst case scenario you've seen I'm not proud of it remember I've been in the industry for 20 years I've seen some bad guys I will admit to it I mean I'd spent the last good few years recovering from a prior business that that went away and then at the end of last year the business I was running then also went barely up and it's spectacular some people made a lot of money out of it it just just wasn't me so so we're on iteration three at the moment and Lawrence says he can help me so listen I think he can definitely do something for you so get SMSing in the meantime we're not even gonna ask a question it's simply your name RRH and your name to either the SMS line four double five zero nine or you can WhatsApp oh eight two six four one three triple five giving away five sets of personal financial coaching to the value of 3,000 rand and plus each of those winners are gonna get two VRP tickets to the next forum on the 27th of July well with the time and the effort about $4.99 per ticket yeah so we've been given away from five five five about four grand worth of stuff one shot yeah yes you're a scholar and a gentleman sir so tell me now we've gone through a couple of steps personally yes myself and now what's the next levels let's go through let's go through the different levels we start people at student level that is the first level of personal financial coaching so what are we gonna do there the first thing we're gonna do is we're gonna focus on increasing your financial intelligence so this level we focusing on financial intelligence that's where the forum comes in we teach you the principles we teach you some strategies the goal of student level is to move your zero back to zero we've had this discussion about getting rid of your unsecured debt moving your zero back to zero so everything we do under student level is to move your zero back to zero on that point you just got another message that came in and some is just sort of they've mentioned this to me and I heard somebody else talking about it a while ago when you move your zero back to zero you have this sort of formula where you take certain of your debt and you will add extra money in to pay that off and then move it up what about one of the things and I don't know if it's it might be as big as as it used to be but one of the things that that I was told a very long while ago was you can consolidate your debt by getting a personal loan is that something that can be looked at or is it not advisable that's the question that came in yeah so what would what we would do is yes it is something that you can benefit from but most people don't because what happens is people don't have control of the cash flow first then they consolidate and the reason why they get into the debt in the first place wasn't solved so now they consolidate they have less money going out but it's now spread over a longer period and then six months later they've spent that money they've created the credit card date again because they haven't solved the issue that brought them there in the first place the secret is to get rid of those credit cards if you do debt consolidation if you get a consolidation loan from the bank for example kill those accounts and credit cards even before you kill those accounts because what people will do is they will just go and get another credit card when when the going get stuff first have to take control of your cash flow you need to have a proper budget and understand where your money is going because if you don't have control of the cash flow you're going to run behind every month again and within six months you're going to be back in debt and that's what I see having more debt because now you've got the personal loan and yep hands up did that yeah that did it but you're going to then have the personal loan debt plus the credit card debt so yes it can be a useful tool but most of the time it is not because people don't have the the foundation laid so that they have control of their cash flow to use it to its full advantage okay but this is the kind of thing you cover it's exactly yes a student level goal is move zero back to zero what we do under student level is minimize your risk we make sure that your risk is sorted out your foundation is laid because that's important we then help you with your budgeting your strategic expense planning and the biggest thing with budgeting is people you tend to think that budgeting is looking forward so we're looking at what we're going to spend money on next month but 80% of budgeting is looking backwards and seeing what you actually did with your money because that gives you the awareness of where your money is going which means you can make different decisions moving forward most people that budget they budget up ahead but they don't have control over where the money is going then end of the month they look back and say oh it didn't get didn't get through the month properly listen that that happened to me right now again because I did I did some training and I got paid for it and then they did the worst thing they can possibly do is they paid me in advance for the training I'm doing on Wednesday and Thursday and I thought bargain I'm getting the chunk of change in now I'm gonna do dadadadada stuff happened the next second I look when he's gone yeah and you don't know exactly where what did I actually spend it on where did that money go to so we we did some research a couple of years ago and the average South African family we're talking about middle to upper middle class family the average South African family overspends by about 10% per per month that means that if your budget is 40,000 in a month you are spending 4,000 and that you cannot account for you don't know where that money is going so part of the strategic expense planning is to go and find that 4,000 and and plug the hole so that it stays in your portfolio not run to places where you don't know where it is so that's the first thing the second thing is once we've done the budgeting we will then determine what is your variable cost budget and what is your fixed cost budget so your variable cost is the things that you spend money on your petrol your groceries your coffee and your takeaways and all of those kind of things and your fixed costs is your EFTs and your debit orders once we have those two figures that we budget for we set up your variable cost account and your fixed cost account okay so it's difficult to go into too much detail these are the things we'll tell people in and show them when we sit with them but we then set up two accounts and we then implement variable cost segregation where you start splitting where your fixed cost goes and where your variable cost goes so that you can start managing your variable costs because that's where that money that that we talk about that you don't know where you're spending it that's usually where it goes is that variable cost not the fixed cost most of us know what our fixed cost is we know what the bond payment is the call payment the medical aid those kind of things it's the variable cost that kills us so we make people aware of the variable cost and then it becomes like a game of making sure that you spend as little of that per month as possible then we through that whole variable cost segregation system we create a positive cash flow that's what we want to end up with we want to create that at the end of the month that 4,000 and that you're losing we have that and that creates a positive cash flow so it said that you don't end up having the situation that a lot of people including myself have where you have way too much month at the end of your money exactly we want to have money left because that's what business is all about and they always teach people run your personal finances as if you were a business money comes in on the one side you spend as little as possible you have positive cash flow on the other side yeah once we have the positive cash flow we then create a personal debt settlement plan so where we start putting money towards the one date the next one the next one if we then decide that debt consolidation is a good idea we can then implement it at that stage because we've taken control of the cash flow before we got here okay and then we keep moving that to move your zero back to zero so we keep putting money into that date date settlement plan of yours until we get you back to zero now that could take a while I mean that could take what two years anything yeah anything between a year and two years you can take it depends on what people strict unsecured debt situation looks like I've had people where we sit and just by restructuring a few things we take them immediately from student to undergraduate level within one sitting by just restructuring things but it can take you a year to two years but then once you've done it I mean and you think about initially think oh I've got to do this for two years what is two years yeah it's so quickly yeah that sets you up for everything else that we do so what we create under level one is we create financial stability meaning that you have control of the money coming in control of how you spend it and control of how much is left at the end of the month that's financial stability and then we move forward from there to level two right we'll get on to level two just a quick one before we just do that Penny and Wayne said what do you think of unit trusts okay so a quick one I mean we're not we're not concentrating on unit yes so okay so unit trust what what a unit trust is very good at is giving you a flexible investment but like anything in life there is positives and negatives to unit trusts the first positive to a unit trust is that you don't have a specific term you can access the money at even any given point so you can literally put in money now and in a week's time say I want some of my money back there's no contract the negative is there's no credit protection built into unit trusts it becomes part of your estate so you can't put a beneficiary on so that it is outside of your estate for estate duty but not estate duty estate costs purposes so there's a few negatives but it does through our system we do use unit trusts and exchange traded funds quite a lot okay so so a good thing if done correctly everything in life is understand what it does understand the pros and the cons and use it for the right reason it's only 3.8 we are chatting to Lawrence Erber also from retire rich and happy if you want to win one of those five sets of personal financial coaching to the value of 3,000 Rand plus two VIP tickets to the next forum all you got to do is SMS r r h and your name now a couple of people are ready missed out on this our our age and your name to four double five zero nine that's not the mixed number it's another number four double five zero nine otherwise you can or you can whatsapp our our age and your name to zero eight two six four one three triple five oh there we go as he clears this right somebody says I've just received some of money from an inheritance what would you suggest I do with it to make it grow I know it's not much but to me it's a fortune to me it's a fortune as well well it's a very difficult thing to to just say do this should they I mean if they haven't been to the forum should they contact somebody like you and either go to the forum or say hey Lawrence you know what I would do with that is is find out how the whole structure works and see how that money can push you through the system get you as far as possible because for me to give advice on just investing this is very very difficult I don't know the whole situation so get in contact we will be happy to sit with you show you how the whole thing works and then and give you advice accordingly guys I seriously recommend just have a sit down with Lawrence and and see what he can do because there's so much and there's so many things we don't know about in little bits and pieces I mean I started out when we were doing our consulting and afterwards when I left that particular meeting I felt like yeah because you go okay now it's time to set some realistic goals but it is because that's what happens is we said in terms of financial stuff there's nothing nothing bad about having big audacious goals yeah but you know in terms of financial what you want to do and why you want to do it and that was the big thing to me I mean I was like oh I want to make sure this person is this this is place and you're going is it necessary for right now if you should it you know but the bullet tomorrow is it gonna be necessary and I was like no no no it's not really and because that what we focused on is what if money and you want to look at it realistically and say but is it really the absolute necessity we need otherwise we don't spend money on what if because that money can build assets that money can move us move our zero back to zero so that's where we want to get yeah so get hold of Lawrence we'll give out the email address at the end of the show so we now moved on from student level so student level you've now gone through that we focused on getting rid of the debt we've moved your zero back to zero so now if you have no money you'd have no money yes which is at least you have no money when you have no money help very aware of having no money when I have no money so we've moved your zero back to zero the next level we then go to is the undergraduate level and what we do under undergraduate level the education portion is going to be around increasing your entrepreneurial intelligence so now we're going to start teaching you how to think like an entrepreneur while we move you through this coaching level because entrepreneurship is going to become an integral part of what you want to do moving forward stuff I should have been exposed to and taught 20 or 30 years ago you know that in school already yeah I should have taught this so the goal of undergraduate is to reach your maximum reserve level now I'm going to explain what that maximum reserve level is now so what we do here is the first thing we do is we set up what we call your reserve account so your reserve account is typically a straightforward savings account with your bank that is preferably linked to your other two accounts okay and then once we've set up that reserve account we determine what is your minimum reserve level which is the level we want to aim for so your minimum reserve level is made up of three months expenses understand it's not three months income it's three months expenses so it would be your variable and your fixed cost combined yeah I'm three and that will be your emergency fund that will be the fund that will pay for that was the roti has the roti repair fund yes yes and then we have your capex that you have planned for the next 12 months for those of you don't know capex stands for capital expenditure so now you start looking forward and saying okay what would I need capital amounts for through this year I need to service my car I need to put new tires on we have to go on a holiday the kids need new school clothes etc etc and we start planning an amount for capex for the year looking forward so that's moving us from being reactive to being creative because now we preparing up front for these things so you've got your train smash fund and now you're gonna add to that trains capital expenditure fund yes and then what happens when and this is one of your buckets that you that's one of the buckets yes so when that bucket gets full I'm living for the day that but okay so that's so then what we do is that the three months expenses plus the capex combined is what we call your minimum reserve level so that's let's say that is a hundred and fifty thousand and for the year yeah once we've said that we then set your maximum reserve level your maximum reserve level is usually five thousand or ten thousand and more than your minimum reserve so let's say ten thousand so your minimum reserve will be 150 maximum will be 160 and then everything we do under undergraduate is to reach maximum reserve that is what our focus is so all surplus money that you have from your positive cash flow getting rid of the debt etc etc now flows into your reserve account and the goal is to reach maximum reserve level and that could also change surely because if you if you if you get a an increase or maybe you've got a little side hustle going on and you making some extra money maybe you're sitting in flea markets nothing with that you can take that money and put it in there because that's over and above that's where we start talking about lifestyle income going into your lifestyle account and freedom income going into your reserve account so you start splitting your freedom income your extra income into that account so what we also do is we now start research researching potential business opportunities that will suit you so during this coaching process we are going to start thinking about how do we create multiple sources of income we're not going to jump in we're going to start researching what fits with you what fits your personality what what is your interest what do you want to get involved in and look at the different opportunities they are this is the entirely different way of storing a business because normally we start businesses out of necessity or out of okay I've been an engineer for 20 years I'm going to do this or whatever the case may be yeah so this is taking it to what would I like to do exactly what is my interest what do I enjoy doing those little hidden passions and things where you've always wanted to do a or be a something yes you can now start living it out start living because here's what happens I always say to people we firstly we start businesses at exactly the wrong time because we started when we need the money yeah and that's the worst time to start a business because you're putting yourself under pressure from the get-go yeah the second reason or the second thing we do wrong when we start a business we ask the wrong questions we ask the question what can I do and then we build a business around that instead of what is my interest what is my passion what do I enjoy and start a business around that so through this process as an undergraduate we start exploring the possibilities we're not saying let's jump in and start a business is saying well while we are busy working towards maximum reserve we can start educating you on entrepreneurship and secondly start looking at what is it that you actually want to do this is now making more and more sense to me and then the goal there is under on undergraduate we are creating financial security so remember under student we create financial stability because you now have control of your cash flow now we creating financial security because we're now building an emergency fund we are planning ahead instead of reacting to things that happen we have now starting to build financial security okay all right you know that's so that's undergraduate that's undergraduate so once we reach maximum reserve you then qualify to become graduate level so what sort of time frame from okay you've now done your student which you say is a year to two years then undergraduate could take you what yeah so usually student takes up to a year I haven't had anybody that we couldn't get to graduate undergraduate level within a year I'm here putting my hand up and then from undergraduate to graduate level it again determine it's dependent on person to person we want to get you to graduate in two years because our model to get you to your breakout point which I'll talk about now is a 10-year model which says the first two years is about setting up your systems yeah so in two years I want to get you to graduate level because then we can start setting up multiple sources of income and assets and that is if you keep your eye on the prize that is what I find so exciting I know that I'm the awareness of it you know we're biting the bullet now it's not nice it is it's not unpleasant it's there's lots of hard questions that are going to be asked and they have to be answered and there's lots of putting your hands up and going yeah okay I get it you know maybe I shouldn't have gone for the extra takeaways this month or whatever the case may be but that compelling thing is that within two to three years I'm gonna be in a position where I can start now deciding you're a completely different trajectory of where your finance is going because you are now more in control of where you're going instead of just floating around and as the waves break you just get thrown around you're now in control you have an idea of where you're going and that makes a massive difference to people's approach to their money okay so then we go on to level three which is the graduate level so under the graduate level now we're gonna start increasing your investment intelligence so remember we've done financial intelligence we've done entrepreneurial intelligence now we're focusing on investment intelligence how do you become a savvy investor so that you understand why you're investing like that ideal person the listener who spoke about their unit trust here we'll start focusing on understanding exactly what is a unit trust do what is an ETF do what is a retirement annuity do how do you invest in income generating assets so the goal of graduate level is to reach invest the level so what is invest the level so what we do first is we set up your free bucks account so your free bucks account is now a separate investment account that is a flexible account that you have access to but that gives you a little bit of access to the market so you'll get a little bit more growth lower risk but you have an accessible cash in that account there's what we use a unit trust or an ETF most of the time for your free bucks account okay you then choose your preferred investment strategy so you will be exposed to what kind of different income generating assets are out there so do you want to invest in property you want to invest in billboards do you want to do impact farming do you want to get long-term core rentals what is it that you want to get involved in that you are comfortable with that makes sense to you that you are passionate about unless it's Bitcoin then low and smart frown yes I will frown a little bit but so once we've determined what it is that you want to invest in we then say to invest the level because each of these different type of investments needs a minimum amount that you need to invest properly that will be your invest the level and everything we then do undergraduate level is to get you to that invest the level so you have enough capital asset in your free bucks account to make your first investment into an income generating asset we then also start getting you to become an entrepreneur so that we can start building your first multiple source of income over and above your normal salary how do we get that first little bit of extra income coming in that's that side hustle that you spoke about now Lawrence you've been doing this for a while yes this sounds wonderful do you have people that you've taken through this process yes we've had quite a few people but remember we've only finalized the whole five step process about three four years ago because it took me literally 10 12 years to get to the point where I've brought all of these puzzle pieces together into a workable plan so we've been going with this for about four to five years so do you have people at what now that add invest a level or a lot of our people have gone to invest the level we haven't got somebody at breakout point yet we shall talk to you about but we're getting there we're getting closer and closer to that and I'm hopefully I'm the first one at breakout point are you following your own advice yeah I have to because that's how I trial and error to see if it actually works so most of what I teach people I've already done myself okay and made the mistakes that that people tend to make I've made already do you think and this is part question part challenge that you have one of those people that you would be prepared to bring in with you on a Monday night no idea and we could cross question and grill them yes no idea because I'd like to do that and I'm sure the listeners would like me instead of us all going raw raw our our age yes I want to talk to somebody's done it yes no I'll definitely think it's a deal yes awesome okay so let's quickly finish with graduate I think then we're running out of time are we getting me okay so we then channel all our surplus and our multiple sources of income into your free bucks account and the idea behind graduate level is to create financial gain so we've now gone create financial security now we're creating financial gain which means we are moving forward financially and then the last one I'm gonna quickly run through is when you actually reach investor level and here we say increase your emotional intelligence because now you're getting to an investor level where you have to make emotionally sound decisions on where you're going to put your money but also start giving back that paying it forward principle of ours that also I love that start giving back and start teaching other people so the goal on the investor level is to reach your breakout point so let's quickly stop and talk about breakout point for us the breakout point is when your passive income from your assets and your active income from your job or your primary business reach the same level so that your active income and your passive income are equal to each other that is your breakout point because if you are earning exactly the same amount of money from your assets as you do from your salary you don't need your salary anymore which makes you free you then have the decision to say do I still want to do this job because it's my passion I'm not doing it because I have to get the paycheck at the end of the month okay so that is the breakout point so what we're gonna do is we take your capital assets that's in your free bucks account we move that into income generating assets to create multiple sources of income that asset that generates income goes back into your free bucks account and then we start repeating that cycle rinse and repeat capital asset goes into an asset assets goes in to create multiple source of income that goes into your free bucks account creates more capital asset which we then flow again and again and again and the purpose of this level is to create financial abundance by creating generational wealth because that's the difference we are taught to to build assets through capital assets only so we save our whole life we retire we invest the money we live off the interest that's what they taught us and then usually the money ends before we end and then the money is left or done so when we pass away our kids start with zero again when we use this system we build assets that will outlive us it's generational wealth those assets get given through to our dependence and they build on top of those assets which creates generational wealth instead of single generational wealth so question yes you said you're going to be hopefully in the next while reaching your breakout what will you do then what is your what is your big ambition I still want to do so what my focus is to move more into the public speaking realm do more workshops with groups of people those kind of thing that's where I want to really expand away from the cold face spend less time working in your business more time working on your business yeah so we are also we are always looking so anybody listening that are interested in becoming a personal financial coach please be in contact with us we or we have way too little capacity for the amounts of people that want us to help them so we are always looking to build capacity so if there's people that are interested in this field get in contact with us we are really looking for people to train as well strategists and it needs it's got to be something that you feel passionate you have to have to put a gun to my head I wouldn't do it yeah yeah but it's my passion exactly something that I that I live and I breathe and that's the kind of people that we want to want to get involved with that lives and breathes this that really want to make a difference in other people's lives there we go so it wraps it up just a reminder again if you haven't sent us your SMS or your whatsapp yet we're giving away five sets of personal financial coaching valued at in excess of 3,000 rand plus two VIP tickets brings a total up to around 4,000 rand the VIP tickets to the next forum the 27th of July you can SMS us on 45509 SMS RRH and your name to 45509 or RRH and your name to the whatsapp number which is 082 641355 and we asked for Lawrence to give out those tickets to numbers 3 7 11 13 and 17 Lawrence people want to get in touch with you particularly the guys that said the money that they've got from inheritance so they're welcome to send me an email directly my email is Lawrence africansa Lawrence hello you are in s at retire happy dot co dot z a they can also send it to info at retire happy if that's easier to spell they're also welcome to go to our website retire rich and happy dot co dot z a so all written out retire rich and happy dot co dot z a and they can also contact one of our people through the the portal they can ask questions there these people online that will answer the questions fantastic stuff if you'd like to get hold of me it's quite simple it is David at what's involved dot co dot z a that's w a t t s i n v o l v e d what's as in my surname w a t t s involved dot co dot z a give me your thoughts give me some feedback and love to hear from you I'm busy putting a whole calendar of upcoming guests onto the website as well that was a bright idea which has caused me endless frustration but I'm busy doing that and we're going to get a newsletter going with some some positive stuff that we're going to be sending out so if you're interested David at what's involved at c o dot z a otherwise if you want to catch all of the podcasts go to what's involved that's here dot z a within this week we'll have a podcast of this interview as well next week for those of you who are wondering it's gonna be our internet marketing guru all the way from the UK Andy brothelhurst going to be talking to us and then at seven o'clock fingers crossed everybody probably for the first time on radio in South Africa I'm going to be interviewing Dr. Dawson Church the author of the book mind to matter and it's all about how you know the whole thing about thoughts become things he talks about this on a genetic biological neurological level so it's gonna be absolutely fascinating because it takes some of the wu wu and it takes the science and it puts it together in such an awesome way I thought I just had to chat to him we got a bunch of other people that we're going to be chatting to I was going to be chatting to Mary Buffett's if you have any idea who Mary Buffett is Warren Buffett's daughter-in-law she read the book Buffettology all sorts of bits and pieces she's here this coming weekend there's that whole investment summit that's something success resources are doing she doesn't have time but I'm going to try and get on the line at another stage so all of that still to come low and thank you so much for popping into it's great to be enjoyed it - Chat to you again, have a good one.

- Yeah, next month. - Cheers, bye-bye.