Video

The Great ‘Financial Freedom’ Myth that Keeps Millions Broke!

The reason why I have cut this video is that so many people committed to financial freedom – just like you and I – are in a lot of trouble financially right now because they have bought into the ‘myths’ that are peddled by mainstream financial ‘experts’.

In this video you will see how often what you are told about getting wealthy works DIRECTLY against you having ‘REAL’ wealth.

In these economically uncertain times getting educated is our key to break out of the fear and uncertainty that the mainstream media will try and throw our way.

About Andee Sellman

Andee is Founder & CEO of One Sherpa, and a trusted business advisor and qualified accountant. After two decades of experience running businesses in different countries, cultures and industries, he specialises in combining financial communication with human behaviour, which assists with better personal and organisational performance.

9 Responses to The Great ‘Financial Freedom’ Myth that Keeps Millions Broke!

  1. John Anderson December 8, 2008 at 8:40 pm #

    Andee brilliant video. Your simple way of explaining these issues is really helping me to move towards better investments and ultimately financial freedom.

    Bring on the next one.

  2. John Anderson December 8, 2008 at 8:40 pm #

    Andee brilliant video. Your simple way of explaining these issues is really helping me to move towards better investments and ultimately financial freedom.

    Bring on the next one.

  3. Ben December 9, 2008 at 5:10 am #

    Great & simple explanation – looking forward to vid #2

  4. Ben December 9, 2008 at 5:10 am #

    Great & simple explanation – looking forward to vid #2

  5. Daid Butcher December 9, 2008 at 7:13 pm #

    Andee
    This is quite misleading. The problem with generalisations is that everyone's circumstances are different. If George had a rigorous investment analysis he MAY have had a smile on his face! You have forgotten tax benefits which can be substantial. Also, the actual equity needed to purchase his investment could have been minimal compared to the purchase price. Most importantly, over time the tenant and the tax man pay for the majority of his invesment. Cashflow is an important element when assessing an individual's capacity to buy into an investment property, and provided his projected debt to equity ratio (based on worst case scenario assessment) is comfortable, he MAY be able to use the increase in equity for his investment property to liquidate the debt on his principal residence. He would then have GOOD debt (tax-effective) and would liquidated his BAD debt. Of course property prices, like equities, can fall, and interest rates can rise. But his interest rate (after tax and deductions) could be around half that he is paying on his own residence and, most importantly, he takes a long-term view on property investment which historically has doubled in value every 8-10 years. I know you are looking at the impact of cash income, but generalisations such as yours cannot be applied to everyone
    Cheers

  6. Daid Butcher December 9, 2008 at 7:13 pm #

    Andee
    This is quite misleading. The problem with generalisations is that everyone's circumstances are different. If George had a rigorous investment analysis he MAY have had a smile on his face! You have forgotten tax benefits which can be substantial. Also, the actual equity needed to purchase his investment could have been minimal compared to the purchase price. Most importantly, over time the tenant and the tax man pay for the majority of his invesment. Cashflow is an important element when assessing an individual's capacity to buy into an investment property, and provided his projected debt to equity ratio (based on worst case scenario assessment) is comfortable, he MAY be able to use the increase in equity for his investment property to liquidate the debt on his principal residence. He would then have GOOD debt (tax-effective) and would liquidated his BAD debt. Of course property prices, like equities, can fall, and interest rates can rise. But his interest rate (after tax and deductions) could be around half that he is paying on his own residence and, most importantly, he takes a long-term view on property investment which historically has doubled in value every 8-10 years. I know you are looking at the impact of cash income, but generalisations such as yours cannot be applied to everyone
    Cheers

  7. OneSherpa December 10, 2008 at 12:07 am #

    David,
    Thanks for your comments. There are quite a number of people who hold your view which is why this whole topic needs discussion and debate. I plan to take up your comments more fully in a further blog post

  8. OneSherpa December 10, 2008 at 12:07 am #

    David,
    Thanks for your comments. There are quite a number of people who hold your view which is why this whole topic needs discussion and debate. I plan to take up your comments more fully in a further blog post

  9. Kathryn Lang November 17, 2009 at 10:07 pm #

    Thanks for the reminder of the draining effect that debt has on finances and on people. We are working hard to teach our kids that there is a better way to handle finances than to pile on debt!

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