The current outlook is miserable for UK consumers, who are currently being squeezed from every angle – with rising interest rates, utility bills, weekly shopping costs, petrol ...and wages that are not keeping up. But, these troubled times do not mean you can’t have control over your finances and build wealth. Tune in to hear Kevin and Christian share the 7 asset pillars you can utilise to build your wealth and the opportunities that come in these uncertain times.
The current outlook is miserable for UK consumers, who are currently being squeezed from every angle – with rising interest rates, utility bills, weekly shopping costs, petrol ...and wages that are not keeping up.
But, these troubled times do not mean you can’t have control over your finances and build wealth. Tune in to hear Kevin and Christian share the 7 asset pillars you can utilise to build your wealth and the opportunities that come in these uncertain times.
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Unknown Speaker 0:01
The purpose of wealth talk is to educate, inform, and hopefully entertain you on the subject of building your wealth. Wealth builders recommends you should always take independent financial tax or legal advice before making any decisions around your finances.
Christian Rodwell 0:19
outcomes to Episode 168 of wealth talk, my name is Christian Rodwell, the membership director for wealth builders. And I'm joined today by our founder Mr. Kevin Whelan. Okay.
Unknown Speaker 0:30
Well, of course, what times d. U turns I don't know, you think you can plot your way through the financial storm that's been raging. And all of a sudden, the government itself blows the wind 180 degrees from where it was before a complete vault PFASs a turn about? I remember doing a presentation with a group Chris, we must talk about community very powerful. And I said, you know, are we into another area where done if you remember, there's a quote from 1980, you're much too young to remember it, Chris. But when we had the last winter of discontent, and as we hit October now, I was kind of theming my talk as if it's like, we've got a new winter of discontent on its way. Have we got a new lady, as Margaret Thatcher was in around 1980 78, which came to power. Who said you can turn if you want, but the lady is not returning. And I thought we've got another one. But within a couple of days, we've changed completely. So the 45 P tax that was abolished has been reinstated. There's egg on the faces of the government and how on earth? Are we supposed to plot our way through our wealth building life in the long term, when the short term is so completely wacky? I mean, I think we should talk about that today, Chris?
Christian Rodwell 2:04
I think so. I think so I think it's a good time for a reminder of the very robust model that we operate here at wealth builders, which is our Seven Pillars of Wealth. And the more pillars that you can build, the more assets that you can have generating recurring income streams for you every month, then more peace of mind, the more security hopefully that provides in your life. So today, we're going to take a bit of a whirlwind tour through those seven pillars for anyone perhaps, who's a new listener hasn't heard us talk about those in detail before. And just look at obviously, the times we're in now, Kevin, and what should people be focusing on right now for each of those pillars. And of course, looking forward to the opportunities.
Unknown Speaker 2:38
Yeah, but I also want to say, Chris, not about just new listeners, who may well have not discovered the principles of wealth building, with assets. And just to say that an asset is the only way to build wealth or assets, an asset is something that you own, that is not you, puts money in your bank account while you're asleep. That money can be passed on to your family and good causes, as you choose. The money basically carries on showing up even though you're not new. So in other words, the money continues, even if you're not there. Now, there are the principles. But for seasoned listeners, listeners who've been around a long time, who maybe even know the pillars by now, Chris, I bumped into one of our members recently and said, Can you tell me the seven pillars, you got six or seven, I was very pleased about that. And, but I think it's worthwhile touching on maybe one or two ideas that even our seasoned listeners Could, could pick up. So so if you've listened before, and you're hearing our seven pillars, I know them don't switch off, because every time you make a new distinction, it opens up a door and clears a pathway to build more wealth. And we say that again, Chris, the power of creating wealth, is the power of making distinctions. And those distinctions move you, right, and I'm going to just jump on a little reminder, remember, last time I did this one, Chris, that in the context of building wealth, you're in one of three spaces, you're either in the retail space where the winds blowing on you, you're paying full price for everything, you've got no control over anything. And basically your life is just being pushed and pulled in different directions. And for the most part, that's the 95% of the population. That's the people who don't make it. Those who are taking action or moving. And that movement is to wholesale. And that's wholesale means making distinctions, creating niches, finding niches, this word niche is critical. Because opportunities exist in niches, they don't exist in markets. That's why it frustrates me Chris when people say what do you think of the market? Well, there is no market You find your own market by creating niches. Okay, so there's no one market for anything. It's if you're asking questions about the market, it means you're thinking like a retail customer, which is the worst place you can be. Once you move from the niche, you determine your, the strength of where you're going. In other words, you hone your skills and move towards being a creator, and creator in the sense that you're creating your own market, that your own marketplace that you are now master of your domain is there, it means you can survive, thrive, grow exponentially, irrespective of the state of the market, you see what I'm saying. So, in other words, we are in control of our own personal economy, the economy is out there, but we are in control of our own. And I think I hope to share as often as we do, Chris, not just me or you, but our members and our listeners, distinctions that they are making. And they're finding to help them carve a better path by being in control and being proactive, rather than, you know, what do we say in the debit challenge recently, Chris, when we talked about just getting people to focus for a short period of time, on doing something proactive, it's the productivity, that's the key. And people are starting to find savings, they thought they they couldn't fight, right. So we know this is true, when you when you spend some time being proactive, and it helps this was the community point, again, Chris, and maybe we can save that for pillar seven. But the whole point about community is the strength of the distinctions that are made by so many other people who are not you. And therefore think differently to you look through a different set of eyes and lenses than you do. And they will find things for you, that being on your own and isolated simply will never do.
Christian Rodwell 7:02
And, and we certainly acknowledge that, you know, there are genuinely difficult times out there at the moment for some people and the head. And, and so rather than completely shut down and think that it's not possible to build wealth, we just obviously want to continue to share ideas, so that people can take small steps throughout, you know, the period ahead.
Unknown Speaker 7:27
And what's interesting, Chris, these these steps that can be taken can be taken any age, you know, doesn't matter whether you're 18 or 58, or 68, or 78, it doesn't matter. There are always small steps you can take because a lot of people again, like they'll say, Oh, the marketplace, it's too difficult, right? And therefore shut down. The other thing is, is sometimes we'll we'll have people saying, Oh, I'm too old, or I'm too young. And you know, that's a challenge. So I think we want to do is highlight what people can do at all ages. Yeah.
Christian Rodwell 8:07
So should we first begin by just summarising the seven pillars as a refresher, and we, you know, kind of put pillars into two to two sides, don't worry, if you're looking at a piece of paper to say the wealth builds logo in the middle. And then on the right hand side, we have pillars 123, which is home capacity, pensions, and investments. And we call these the traditional pillars, Kevin?
Unknown Speaker 8:28
Well, we call them traditional, because that's where the 95% of the population look to build their wealth, they don't necessarily deliberately think of them as pillars, let's say I think they're more accidental is the plan to live in a home at some point. And we know there are renters out there as well. But let's say the vast majority of people want to have a home in the security of that, certainly in the UK, they will have some form of retirement plan, usually either set up personally or through a company. And they'll have some money in a marketplace somewhere, whatever that marketplace is. And generally at the mercy of that market, whether it's the stock market, whether that's the cash market, you know, holding money in cash, whatever it is, whether it's an even in gold, or other commodities is a marketplace where you're really at the mercy of the pricing of the market. And that's the big challenge. So for those people who have money in those areas, usually there's not a lot of proactivity going on. You know, we live in a house or pension does what it does, we get the statement. We wished it was better than before, but it isn't. And then we look at our cash and we kind of go well I need that money for a rainy day. And here we are. It's raining every day. So most people are not really paying attention to that but there are some things you can do Chris so it's definitely worth talking about them because That's easy place to start, it's often the easiest place, because you don't have to learn anything new. You just have to make a distinction or two that you can use in those pillars. So, and lots of our members and those participating in, in our debits challenge, Chris, new people to us often will will tell us what they're doing. So are you seeing any any evidence of what people are doing with their homes?
Christian Rodwell 10:26
Well, obviously at the moment with the the increase in interest rates every single day, we're certainly seeing people now fixing in those rates speaking to their brokers. And of course, for anyone who's got a, you know, mortgage term that's coming towards the the end of the last six months or so they can actually go to their brokers now calm and lock in some of those lower rates, rather than waiting until that expires,
Unknown Speaker 10:49
you can in a place where the marketplaces has got some stability. And I think with the government messing around with interest rates, or, you know, messing around with the economy, to the extent that there's some confusion isn't there between the Bank of England strategy to keep inflation down, and then the government's sort of on costed package in UK as they presented that, and because it didn't have the sort of fiscal responsibility of being properly costed and tested and shown to the market, the market got all jittery. And consequently, interest rates got pulled very quickly, and I think some stability will come back to the market. So definitely look out for if you're worried about fixed rates, and there's pushing now 2 million people in fixed rates. In UK, it's a massive percentage of the overall overall marketplace, the mortgage audience if you like, then it's soon as you can lock in, the better. But the real danger question, which is why it's important to know that lots and lots of first time buyers in the last few years, and others will be coming off fixed rates in the sort of twos. And we'll be starting to see fixed rates in the fives and sixes. And maybe even more than that. But the point is, if you if your mortgage rates going to double or triple or worse, you've got to be doing something. Otherwise, if you don't, you know, your cost of living just simply cannot improve. And that means you can't really build your wealth unless you're doing something proactive. So there are some things other than fixed the interest rates, many other ways and things you can do. So any individual idea could work from as simple as I mean, they've still got the rent a room scheme, right, which is seven and a half 1000 a year, completely tax free. We're not saying go get logic as everybody of course, that wouldn't make sense. If you're living in a home, and you don't want to do that. But it's an option. Connecting your money, any money that you've got in your business, and your personal life, you can connect that to your mortgage through offsetting, if that could work for you. I mean, there are many, many examples of creating some value, some income from the home, or doing something to proactively reduce or eliminate debt in some way. And we talked also Chris about transferring it to a business. So I would say anybody who wants to get some ideas, just tune into the debits rather than us give everything here today, but a word about the first time buyers as well, Chris, I think people trying to get on the property ladder going on No, well, well, it was me it's a real difficult time. for that. It's it's a real tough gig isn't it? So one of the ways to think about that is to look up and down the generations. So parents who perhaps have benefited from the long term property inflation, you know, people like me with houses and no mortgages, you know, you can tap in to those properties and parents can help. But instead of borrowing from the bank at 6%, you can borrow from your parents at a much lower rate potentially. So there's there's all sorts of different ways that families can get together and create opportunities, as well as maintaining the security and more of that in wealth builders for families as we really get into the deep dive in the nitty gritty of what's going on there. Chris, with Bank of mum and dad, and how to deal with that. And perhaps, if anybody listening, Chris is a got a strong family, they do talk about money or they're willing to talk about money. Perhaps you could signpost the waiting list for wealth builders for families. Because we think looking up and down the generations is a real positive way to make family money work more effectively to beat the market rather than the younger ones suffer at the mercy of it.
Christian Rodwell 14:47
Yes, absolutely. We're still developing the programme and if you'd like to be involved and give feedback and be one of the beta testers then head to wealth builders.co.uk forward slash families and pop Be details in there. And yeah, we'll keep you up to date. So, pillar one home capacity there. Kevin, we've we've touched on. And of course, there's bit of extra good news with the obviously the change in the stamp duty for the first time buyers as well now, so that's a bit of help for them. Yeah,
Unknown Speaker 15:15
definitely good, good help. I think it's up to 420 5k. Now, so the 250. So that's, that's a little bit of help. It doesn't help you with your repayments. But it does help you with getting on the ladder in the first place. So that's a positive thing. So I definitely am pleased to hear to see that one come through.
Christian Rodwell 15:33
Yeah. Okay. pillar number two is pensions. And so, obviously, with the markets a little bit in turmoil recently, that means pensions will be going up and down as well.
Unknown Speaker 15:44
Well, pensions always go up and down, don't they? That's the very nature of them. But I think there are, as we think about pensions there, it's the mainstay of retirement planning across the globe. And the big challenge we had in the UK, I don't know if this was noticed by many, who was a massive problem with the security of some of the biggest pensions where the Bank of England had to come in and bail out a large number of pension funds. And that's that's an interesting point, Chris, because it goes under the radar, because it's, it's kind of highbrow macro economics and not necessarily reported too much. But that scared. Well, you know, definitely a language I could use. But it definitely scared me a lot, because so many people think their pensions are safe. It's like, oh, my pension in the box that says this is what I'm going to rely on. When I get into my later years, whether it's 60s or 70s, or whatever it is. But of course, your pension is only safe as the people running it. And if the government's having to bail things out, what if they didn't, you know, then your pension that you think is under control is not under control. Your pension is only safe, if you have got so many safety mechanisms around it. So I think I would encourage anybody to go and take stock of the pensions they've got for a number of reasons not least to check. Is was your pension recently, embroiled in the bailout? And what would that mean, if economic situation worsened? Could your pension actually be at risk? And we've seen pensions go bust, Chris. So people who thought that pensions were safe, or not safe, so you should check. Secondly, of course, when it comes to pensions, we know Chris, how much money is just lost out in the pension, ether, you know, 10 billion of personal pensions and another 10 billion give or take, that's huge sums of money, in occupational pensions, where people work for a company and then just lost track. And the process of finding money isn't impossible, you know, you can that money can be repatriated. We try and help people do that. And there's a tracing agency isn't there in in pensions.gov, to help people do that. And they can always reach out to us, Chris, because we've got a team of people who try and help people understand what their pensions are, what their charges are, what they can do what they can't do. So taking stock of pensions is a is a very, very key thing. And I always jump on the soapbox about fees. When it comes to pensions, because given that generally, opaque, you know, your most people have a pension and then they let it can be part of their life, but they're not actively involved with it. They're not taking any proactive steps at all. I mean, how much time maybe just a period of reflection here, if you're listening to this now? How much time have you spent in the last nine months? Let's say during 2022? How much actual time have you spent looking into evaluating and checking the value for money of the pension? You've got? A minute, no minutes, you know, have you done anything? And I would say it's really critical to do that. Because once you understand the fees, and the huge damage that fees that are just unchecked, on announced and you find out typical fees in the UK about 2%.
Unknown Speaker 19:42
And that means about a third of the expected return. Now if you're paying somebody a third of your money, kind of want to make sure you're getting value for money. And I think so many are not. So we reach out and challenge people to find out their fees and we certainly will help men Need to reduce their fees by at least 50%. And with inflation running so high, if somebody can offer you a 50% reduction in your fees, I definitely take somebody upon that. So maybe you could signpost that, Chris, because pension seems to be the area of life, that people think they're unqualified. There's somehow feel somebody else knows better. It's just money. It's just in a wrapper. And the wrapper gets opaque. And because of that, it that it is so opaque. People think that somehow there's a, almost like a box, where they couldn't possibly understand what's happening inside the box, when in fact, it's remarkably easy. So I will definitely signpost that question, and ask anybody to go and check what their fees are, and just see what they think about them and either renegotiate them and say, Well, I'm not happy with these fees, you know, would you? Would you charge me less otherwise, I'll go somewhere else, which means you want to do some research on Where else would you go? Or alternatively, if you can, you could move that to your business. So it's a business deductible expense, so it's not coming out of your money, it's the company paying so it's tax deductible, where it's not not tax deductible in terms of the fees anyway, generally speaking. So lots of things to do with pensions. And of course, Chris, we know that for the most part, we've helped 1000s of people who are being more entrepreneurial. And of course, as we get on to the other pillars, which are about being an entrepreneur, there's that special kind of pension, we talk a lot about called the SAS of the small self administered scheme, a pension scheme for directors of businesses, really, that puts them in complete control of what they invest in, and what the fees are. So we'll never tie with that one, Chris, because it's such a major aspect of the wealth in the UK. And, you know, I don't apologise for repeating this message. Because we've seen that sometimes when people look at the kind of SAS pension, they get a bit overwhelmed and confused, because it's, it's more complex and doing nothing. But doing something is always more complex and do nothing. But it means that you have to spend a bit of your time. And if you've spent no minutes, and then all of a sudden, we're asking you to spend an hour 60 times harder than if you'd spend a minute so you do have to be willing to do something. And that doing something starts with just investigating, which is really, really important to do that.
Christian Rodwell 22:37
Yeah. And please do reach out to us. We're always at the end of the telephone or an email, if you need some help, and you want to discuss your pensions with us, drop us an email at Hello at wealth builders.co.uk. And we'd be more than happy to, to arrange a call with you. Yeah, so anyway,
Unknown Speaker 22:53
there's always something you can do. It's not something you just lament and go, Oh, woe is me. You can do something and that that often starts with just getting a sense of the fees and the value for money you do that in, in life. So do that with your pension as well.
Christian Rodwell 23:08
Okay, pillar three is investments. So it's
Unknown Speaker 23:11
much the same argument as pensions because it's just it's it's an often an over reliance on the stock market. You in some form, whether it's wrapped a little box, whether it's a pension or boxes, that icera boxes, something else, there are always boxes, and of course, the cash box has been pretty lightweight recently hasn't it with interest rates so low, but interest rates on the rise? cashes. The opposite now, isn't it, it's getting some returns, I've seen some of the falls now. Premium Bonds have increased their price pot. So remember the offset. So if you've got a mortgage of 6%, and you're offsetting, you're basically getting 6% on your money. And you can use money you've got in your life to help reduce your overall costs or you could use that money to start to build other assets. And as you've got spare money, build an emergency fund obviously, once you've got that to the level that you want, and start planting seeds, whether that's starting to look at being an entrepreneur starting to look at being proactive and maybe even getting some education in that regard because you cannot become wealthy with the same level of knowledge that you've got now. It's impossible.
Christian Rodwell 24:28
Right? Let's switch it over to the entrepreneurial pillars now den Kevin. So again, if we were looking at that sheet of paper, those traditional pillars on the right hand side, but on the left hand side, we've got pillar four which is property portfolio. So properties obviously that you don't live in that you can generate an income stream from pillar five is business so creating any kind of business, pillar six intellectual property, and pillar seven joint ventures. So what's the difference between the entrepreneurial pillars COVID and traditional pillars
Unknown Speaker 24:59
are a number of different It says Chris and definitely worth repeating this. The first one is, whenever you're taking steps to become more entrepreneurial, then you are being proactive as opposed to reactive. And that's the first step. So in other words, you're getting involved. Number two, that involvement, if coupled with good education allows you to add more value. So you become the wholesaler, again, now, you become able to determine things, you become more able to add value, you become the value adder, as opposed to you becoming the value watcher. So you watch in pillars 123, you participate in four to seven, so you're able to add value. And the other aspect of that is you get an income stream, which you can identify and you could name it specifically. So generally, when you're in a home, there's no income stream, you live in Young. Generally, when you've got a pension or an investment, there's no income stream, it's a value. But pensions up on my base is up, it's up or down almost the same. There's no inherent income stream, there's no income, you can say I'm banking, this income stream, it's a capital value, and you hope to be able to take income from that capital value as you get older, which fundamentally is quite weird. When you think about it. You want certainty of life, you want a certainty of income, but you're trying to almost scrape an income or, or drawn income from a well of an uncertain pot at a really, really difficult job to do. And that's why we encourage people to think about cash flow and income. So pillars, four to seven generate flows. That's really important because that's the flow of income. So in property, the flow, generally speaking, Chris, is rental income. And if you're generating rental income, it's not linked in the same way to the value in stock market. So Stated differently. If you got 100,000 in the stock market, your value and say you got 6% minus your fees, or 2%, you made 4%, that's you in the property, you've got two aspects of that you've got the capital value of the property, which can hopefully increase over time, we know property values go up and down. But the generally speaking, have a trend up and you've got the rental income. So even if the capital value falls, stock market falls, say, property values fall doesn't mean your income has fallen. Because the property values fall and you've rented the property out to a tenant or a different type of tenants, then doesn't mean your income is going to go down. So you've almost decoupled the relationship between the capital value and income value. And I think that's quite a critical aspect of property, which is why it's probably the most popular starting pillar, as people move across the bridge the Rubicon, as it were, from being on the traditional pillars to the entrepreneurial pillars. And of course, what's great about that journey, is the pension can play a role in that, particularly as people discover SAS can buy property or invest in property or facilitate property. So there's a real strong link between the pension and property, and the rental income, then and sometimes capital value
Unknown Speaker 28:31
can flow as well. And you can get debt leverage. So as long as you're making higher returns and the cost, then you're turning the cost of debt into an asset, because instead of a, say, 100,000 pounds with the stocks, you could control with the same 100,000 Maybe three or 400,000 pounds of the property, which then if that gives you a 6% rental yield gives you 24,000. Well, you don't have the fees, of course, that you're not paying 2% to anybody, unless you're engaging with somebody to manage those. And that's for you to decide, but nobody else can decide that. So I think the real value is the leverage. It's the added value. It's the way you can proactively participate. And of course, you've got the option always to raise capital from properties you own. And by the way, when you raise capital from properties you own has tax free income. If your properties go up in value, new tager a re mortgage on the property and you take that money out that's money that's in your bank, that you don't have any tax to pay on it. Because it's not an income stream. It's a capital value. And there's no CGT no capital gains tax until you sell the property. So there's so many different ways that property can bring value into your life. And so many different property strategies as we know Chris, probably best part of 20 different ways property can come to life. And we encourage people to start just to explore those gently. And again back to community Chris, the more you've got to share and community around you, the more likely it is then that you can see things that you would never discover on your own. And that's a key key point about this as well.
Christian Rodwell 30:15
And in fact, all three of those traditional pillars can can act as the fuel, can't they? Because we've seen many of our members who release money from their own properties to then be able to buy investment properties. And of course, from the investment pillar as well, if there's cash or investments that are not earning such great percentage, then perhaps they can transfer that elsewhere. Yeah,
Unknown Speaker 30:34
quite right. Yeah. And we're not saying transfer your money from one to the other, we're saying you could do a portion of it, which means you're building your wealth in all of the pillars, or as many pillars as you can cope with. And that's an important point, Chris, about overwhelm. That you just dropped in there, which is, you know, I said at the beginning, that sometimes it's difficult in markets to, to know what to do, because you're, well, I don't know about you, Chris. But in recent weeks, I think we've been overwhelmed with information, he has been a deluge of information. And that sometimes means it's difficult if you don't spend very much time in your life, looking at financial issues that can just blow you over. And therefore you don't do anything, because it's just too confusing what to do, which is why think making decisions in isolation, making decisions on your own is a difficult one. And that's why I encourage anybody to find a community of ethical people sharing people, people willing to help and people willing to do so in a way that you feel the integrity of that. And I look out for those communities, and certainly wealth builders as one. But there are other communities too. So find a community, find people that you resonate with, and get involved and see what other people are doing not not in some sort of blind way to follow, but to get those distinctions that other people have. And then find a way that you can. And if you need help, you can get a coach, you can get a guide, you can get a mentor, all possible, depending on the complexity of your situation, to help you kind of cut through the noise, and start making some real important decisions, because we believe most people can get to a place of financial independence in about five to seven years, Chris, and therefore, you're going to need some help along the way. So try and seek out communities where you you're going to get some additional value. And often therefore it means you're getting an educational value at low costs, or sometimes even free.
Christian Rodwell 32:42
Pillow five of our entrepreneurial pillars is the business pillar, one of your favourites. Kevin, I know, and you talked about with property, obviously, the the flow of income is the rental income with a business, I guess it's its profit,
Unknown Speaker 32:55
its profit. Yeah. And the profit in business is not linked to markets. Because it's where you can move from being wholesale, largely in property. When you're getting into a Chris, you're moving from retail to wholesale, you're just starting to add value, you're starting to understand that it's only when you get the distinction to be outstanding in a niche. Can you become a creator, when you create your own value, where you're so good at it, you're creating opportunities that other people just don't see. Value in business, for me is the ability to serve a community to serve a customer to serve a member. And you can become a server in a way that means you're making those distinctions about how best to help that community and you can generate a return for them and a return for you in an ethical way. That means you're building profits. And if you can do that on a recurring basis. And what I mean by that is the income and the value recur together, which means it's an ethical win win. And that's why I like to do it because it says, How do you constantly add value to the end user. And as long as you keep focused on that, they will favour you with their membership or their subscription or whatever it is so so I'm a believer in business that doesn't trade a service for money, like a contractor or a service provider, or a product provider trading a product for money. It's trying to create recurring income from business so I would qualify the business pillar, Chris, is can you create a recurring income from the business you've decided to be in and that's a whole world of difference from being in business, which is providing a service or providing a product for a profit because that's not recurring. So therefore, you cannot reliably bank on it. You can't reliably sell it and of course the value You will submit severely diminished when everything depends on you. So the skill of moving from self dependency time dependency, service or product dependency into being able to create streams of recurring income from business. And anybody interested in that, Chris, we've, we've talked about the four different ways that you can create a recurring income, and the really important things that you need to do to build a business with recurring income. How would people find out about that if they're in business?
Christian Rodwell 35:31
Well, that's certainly an area that we cover for our members inside the wealth builders Academy. So yes, certainly do you know find out more about how we work with people on the recurring income side of business, head to wealth builders.co.uk, forward slash Academy for more information?
Unknown Speaker 35:46
Yeah, I love that part of it, Chris. And I love running the workshops to help business owners. So you need to have a business, we don't really help too much. If you're thinking about business isn't our business yet just an idea. But those people who have businesses, you can definitely change from being dependent on time and service for money to gradually moving towards increasing the recurring percentage of your business from zero to 1% to 5%, to 10%. And ongoing from that, yeah,
Christian Rodwell 36:19
and we've seen the government helping business owners as well, we've, obviously the kind of change for the corporation tax, non increase as was planned, which is very welcomed, and also the cap on business energy rates as well, recently.
Unknown Speaker 36:35
Yes, so good opportunities to be in business. And definitely some ways where if you've got some personal expenses, remember, you can transfer those costs to your business. So they move from being post tax to pre tax, not everything can be done. And of course, you've got to take good guidance to make sure what you're doing is legitimate, but certainly some legitimate things we know for sure are switching your life cover from personal life cover to business. Similarly, your pension costs can move from being a personal cost to a business cost, through the concept of the directors, only suspension, and many other ways that you can transfer costs. I mean, you and I, Chris are both drivers of electric vehicles, aren't we, and that's cost you can deflect and transfer to a business but your business the other thing I've noticed, Chris, as I speak to businesses every day, they've often in times of trouble, they store up the money in their business bank account, that money is a separate legal entity, can be used to build wealth, you could reinvest that money in any of the pillars. So you can turn this money that's in your business, you could turn that into property, you could turn that into IP, you could turn it pension, you could turn it into joint ventures, as you know, as we discover those things, maybe we'll we'll just touch on that and see how business owners and different age groups can can tap into that. So and, and of course for the younger people, Chris, as well. Final your signposting wealth builders for families. I don't know about you. Did you miss the lesson? You know, in school that said, you could be an entrepreneur? I mean, did you miss that
Christian Rodwell 38:22
one? thinks I had? Yeah.
Unknown Speaker 38:26
Yeah. And then when I went to university, I didn't I didn't get I didn't, I missed that one. I was looking at maybe I signed up to the football club and didn't sign up to the entrepreneurs club. But the whole point about this is we've got to help our younger people think like entrepreneurs. And I think it starts with wealth building families, who then encourage their children of all ages to participate, and to learn how they can be valuators themselves. So I'm saying try and get wherever you can. And we will be having loads of case studies in the bubbles families programme. That will have been, you might already now be showing your children what you're doing. letting them see the pillars you're building, now you're building them, and give them an opportunity to participate some way to so they can add some value. And who knows that adding value could turn into earning value. And if you're doing that, then you can legitimately pay them in your business. And we've we cover that in the academy as well. From different ages to what you can do what you can do for children of all ages actually, so interesting to start to see all of this, so much to do. But you can involve your whole family. So you're getting enjoyment and leverage and you're building a real wealth plan for the whole family and for the future, not just
Christian Rodwell 39:49
for today. Our sixth wealth building pillar is intellectual property. This is really understanding your own value. And for some people Kevin now you know, perhaps being in a corporate Working life for a long time, looking perhaps at the next phase, and often we overlook the value that we've built up over many years
Unknown Speaker 40:07
long question we serve. I think it's second to pensions, which is the most overlooked. I think the the IP that sits below our very feet, there's a often said, There's a mountain of value below us that we overlook when we're when we're seeing something else. We're looking around us for the opportunity. But the very IP we've created, from our experience, from our time served, from the things we've done really well for the things we've learned, we don't do well, you're you're shaping your own intellectual property, and you can bring that to bear in your wealth building journey. So do what, in which way the wealth dynamics thing comes in Chris as well, isn't it so learning yourself learning how you think learning how you process information, so take stock of what you've done, and see where you could bring that value into building property building business, or creating joint ventures. And so many of our members go on, to more formalised that IP, through courses and programmes and books and in downloads, you know, you can start anywhere, really, even if it's, you're doing property, and you're building the story of how your property business is growing. I mean, you're starting to form your IP, because you're building case studies, you're befores and afters the the people in the team that you're building, the relationships that you're forming, all of which is IP. So I'd say for anybody, be like a kid, again, you know, start keeping a diary, start keeping a journal of who's now when you live, what you're doing, what lessons you're learning, what distinctions you making, because in a whirlwind, you often overlook those. But later on, when things are quieter, and you, you, you've managed to calm your own storm, because you're more in control, you're building your own pillars, then you'll have time to properly create your IP, which will leverage your returns. So further, because that gives you all authority to share information. So you can create recurring income from IP in a way that as you're starting, you're not ready yet. You're not ready to teach it, you're ready to learn it. But the the student then becomes a teacher. And when you're in that situation, you've genuinely created IP that has value.
Christian Rodwell 42:27
This actually can lead into our final pillar, pillar seven joint ventures, because we've seen again, many examples of our members who have been documenting what they've been doing throughout their journey, creating websites, creating videos that are now on social media. And that of course, attracts people towards them. And that can lead to potential joint ventures.
Unknown Speaker 42:48
Yeah, and joint ventures can be both outward and inward. And you can go out and seek joint ventures, which means collaborating with others for for purposes of profit, and ideally for recurring profit. So again, you know, we were talking about oh, by the way, Chris, we forgot. So the portfolio properties rental. The business's profit, yeah, the P E can be any combination of those, but also could be royalties. Chris? That's right. Yes, we like the sound of that, why don't we, it almost bears repeating, doesn't it royalty, has to be like the sound of that. So you can create royalties, you know, so you can create rolls, his profits and IPS, multi-dimensional. and joint ventures. Likewise, you can create many ways to establish an income stream flowing, whether it's a collaboration with somebody else for shared profit, whether it's you become a bank, you take some of the money you've gotten instead of, perhaps you don't have the time or the inclination to be the doer, you might become a banker, and you funding people who do now subject to doing all the right, proper, rigorous due diligence, all of those things are possible, Chris, and I know that some of the were the ways that I make my own capital, appreciate and work. Because smart people who I get to meet, finding their niche and I can follow the niche, I don't have to be in the niche, I can just understand it, follow him, take my own due diligence approach to it, and bring funding to a table that they need because, you know, anybody who's doing property, for example, or business often will run out of money before they run out of ambition. So being a collaborator, and being a banker in that regard can be helpful both to them and to me, so another way you could do that as well. Okay,
Christian Rodwell 44:40
so we have covered off seven different ways there that you can focus on to build more wealth in your life and as we said at the beginning, small steps so don't get overwhelmed. Choose one we all say the primary pillar, maybe a secondary pillar. allocate your time according Unlike, but take small steps every month always be doing something to build your wealth every 30 days as you as you say, Kevin.
Unknown Speaker 45:07
And that's an important point, Chris, I think because sometimes when you're listening to a podcast, or you're watching the news is still the deluge, isn't it? So find one thing, you know. So like, even if you just use the 8020 rule, and go, Okay, what's the one thing I put 80% of my attention to. But then what's the second thing, because you want to build the diversification in your wealth, you don't want to be caught up, it's just as dangerous to one of anything as dangerous, you know. So you don't really want to be just on one pillar, you want to always have something else to balance it out. And then once you've established your pillar, your primary one, if it works, then you're you're building your security, you're moving towards independence, you start to build other pillars around you. So just find the one idea that you resonate with in this podcast are other podcasts and, and do something about that. And once you've done that, charted, write it down, you know, celebrated if you're making if you're getting a result. And people can keep a record of that on the wall chart as well, Chris. So there's, there's lots of ways that we try and make it easy and visual, for people to keep control over what they're doing, or, you know, join the programme and get a connection, and tell the coach every month what you're doing. So instead of you holding yourself accountable, and maybe you don't do that, from time to time, having somebody who can hold you accountable, following a plan that works in all economic circumstances, then maybe that might be the right thing for you, or just continue to enjoy what we give for free, Chris, because at some point, we hope that you'll kind of move towards this as you want to know and, and expand your wealth. So further.
Christian Rodwell 46:50
Yeah, yeah, we shared lots of different ways that you can connect with us today. Whether that's just reaching out to say hello through email, or finding out more about the families programme, or as Kevin just mentioned, being part of our Academy membership there. So yeah, the first step is always just join us for free follow us for free share this podcast. If you've enjoyed today's episode, and you think someone else could benefit from that, we would really appreciate it. And Kevin, we are think we'll wrap up this week's episode. And then each other farewell, but we'll be back same time same place next week.
Unknown Speaker 47:23
There's a bit of a whirlwind cruise and a little bounce pick the do you didn't share review today? No, we do that. So why don't we save that for the next time? Because we just want to construct and adding value today but until then, my friend so yeah.
Unknown Speaker 47:39
We hope you enjoy today's episode. Don't forget that we are constantly updating our resources inside a wealth builders membership site to help you create, build and protect your wealth. Head over to wealth builders.co.uk/membership right now for free access. That's wealth builders.co.uk/membership
Transcribed by https://otter.ai