Financial Freedom
What Exactly Is It And How Do I Get It?
When you ask people why they’re interested in becoming a Property Developer, they always say financial freedom. But when you ask them what that looks like, they’re often distracted by someone else’s concept of financial freedom.

How many times have you come across slick marketing material with a property spruiker leaning on their Ferrari or Porsche promising you the world on the next get-rich-quick scheme? I can't believe how many times I've actually seen that out there! They’re promising luxury mansions and fast cars and around the world holidays, and sure, these schemes all look very attractive....

But I want to call bullshit on that…

Because to me, financial freedom is a much simpler beast.

It’s about creating enough passive income to cover all of your expenses so that your day job is optional.
Because what people really want is the choice that comes from having financial freedom. If you’re not tied to a day job, you can spend more time with your family. You could travel (albeit probably only domestically right now). You could learn to fly planes, train for marathons, take art classes or move to the country and run a hobby farm.

Whatever that goal is, it needs to be set up right at the start as a beacon for us to aim for, because most people struggle without that source of light providing inspiration and motivation. You need to aim for more than just free time, you’ll want to have a plan for how you’ll use that free time.
Have you heard of push goals and pull goals? A push goal is just hard work, like pushing against a boulder, it’s a lot of effort. A pull goal is something you’re aligned with, it pulls you in like a slingshot. If you choose the wrong goal it can be demotivating, so you’ve got to spend time working that goal out, and making it a pull goal.

Now I need to point out that being a Property Developer in and of itself doesn’t give you passive income, and real wealth comes from passive income. But if you do it right, then you're going to be able to generate passive income at the end of the property development process.

And once you have enough passive income to cover all of your debts and expenses, that’s when you’re financially free. Because if we've got passive income to put fuel in the car, to pay for our phone, to pay for our mortgage, to send the kids to school and to put food on the table, all those sorts of things, that means you don’t have to work.
Now if you want to leverage it, if you want the mansion and the Porsche and all those kinds of toys, that's lifestyle over and above financial freedom. And you can have that too, but don't get sucked into all the glitz and glamour at the get-go, because it’s mostly just a distraction from the main goal.

Let me reiterate: Your main goal is to generate enough passive income to cover all of your debts and expenses.
Swapping jobs

Once you’ve done a deal or two as a part-time Developer, you may realise you can earn as much doing a single project as you do in a year in your day job. So you may decide to swap your day job for property development.

Not so fast!

One of the keys to success in Property Development is having a sizeable cash buffer so that you can buy yourself time. If you’re relying on cashing in a project to pay the mortgage or pay the school fees, and that project gets delayed, the debts are going to mount up pretty quickly.
So you’ll need a good nest egg to draw on before you quit your job.

I reckon you need to put away two years of your regular wage and be onto the next project before you throw in the towel at work. That should give you enough money to live on and to cater for the cashflow in running your next deal, and from a serviceability point of view that will look fantastic.

With that money in the bank you’ll have a nest egg to draw on and you’ll be able to throw yourself into Property Development full-time.

Now at this point, you are not financially free. You’re no longer working for the man, absolutely. But you are still at work, working for yourself. You've swapped one job for another job and at this point, 100% of your time is now dedicated towards doing your Property Development journey.
You need to be aware that you’ll actually go backwards in that first full-time year because you’ll be using your nest egg as a substitute for your wage, but that’ll swing back into your favour when the revenue from your next project comes in.

The mistake people make is they do the same size deal for every project and they never actually get ahead. We've got to make sure that we get ourselves into a position where we can actually scale our projects, this is critical in getting ourselves to the point where we can start to convert our capital base into residual or passive income.

Sometimes people see a deal come their way and they go, right, it's going to make money, I must grab it. But what they forget is it's not the right deal size for where they’re up to on their property journey. They really need to step up a deal size instead. Just because you can do a deal, doesn’t mean you should do it.
The other trap I see people fall into is spending all their profits on toys.  It's really important to reward yourself, absolutely, but make sure that it’s a measured reward. Make sure that you keep enough of the profits from your project to reinvest and grow again. Delayed gratification means that at the tail end, you're going to get really good returns and you won't generate the debts that come from getting a nice car or a nice house too early in your journey.

So reward yourself, but contain it.

Because the biggest reward is in plain sight: financial freedom.

What will you do to secure it....?
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"I've set myself a personal goal of setting 1,000 people financially free by the year 2030 through my education and mentoring programs.

I'm looking forward to you joining us."
Rob Flux
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