More than Money: A Rock Star Guide to Finance

By Patrick Canion

A FINANCIAL BOOK WITH A DIFFERENCE…
Forget ‘get rich quick’ schemes and step-by-step secret formulas. Life is for living and people’s relationship with money changes as the years go by. There is more to life than money.

In a world that is littered with financial books, award-winning Australian financial commentator Patrick Canion shares his personal ‘warts and all’ experience and relationship with money. Patrick wasn’t born into wealth and wasn’t an overnight success story.

He has worked hard, had ups and downs and he has survived to share his story which he hopes will inspire others to recognise how they think about and behave with their money. Patrick has been clinically depressed, been made redundant and has come back from near financial ruin.

So how is Patrick’s book different?
You’ll get a candid account from a man who has lived several lives. From postman to pastor to one of Australia’s most respected financial voices, Patrick’s book delivers life lessons for Australians who want to learn about how to handle their money like they never dreamt possible.

More Than Money provides exclusive access to one of Australia’s greatest financial minds giving unique insights in how to create wealth, change financial habits, invest in property and build superannuation.

Patrick’s book will empower you to rock your finances and really ‘own’ your money rather than letting your cash flow rule you. You will also think about money differently, not just focusing on dollars in your bank account and not seeing wealth as a be-all and end-all of happiness.

You'll also get Patrick’s take on:
• Three basic principles that will change your financial reality
• Why Australia has the greatest potential to build wealth over any other country, and how you can be part of this (no excuses)
• Eight overarching rules to breaking down the barriers to financial freedom
• Why you don’t need to be rich to be happy in life

What Others Are Saying
‘Reading Patrick’s book may be the key to starting your own journey of transformation’ ~ ARUN ABEY, Author and Business Leader
‘Patrick has the ability to distil complex information into simple anecdotes’ ~ KATE COWLING, Australian Journalist

• Language: English
• Publisher: DoctorZed Publishing
• Release date: Jun 6, 2018
• ISBN: 9780648342168

Patrick Canion

Award-winning Australian financial commentator, Patrick Canion, brings you his latest book, More than Money.

Book preview

INTRO

GET YOUR MONEY SHIT TOGETHER

No excuses. I don’t care if you’re a man or woman, young or old, unemployed or working. It doesn’t matter whether you’re a fifth-generation Australian or you’ve just arrived in Australia. There has never been a better time than right now to get your money shit together!

Australia is an amazing country. In my opinion, there is no better place in the world to achieve financial freedom. We have a stable democracy, the rule of law, a growing economy and current business conditions that are simply superb if you want to achieve your financial goals.

But in one sense none of that matters. It’s all by the by and in many ways, irrelevant. The only thing that really matters if you want to get your money shit together is you! There are really only two things that can stand in your way: your health and your ambition.

If you’re healthy and able to work then there is absolutely no reason or excuse not to achieve your financial goals (if, of course, you want them badly enough). I’ve been in financial planning for more than 30 years and, let me tell you, I’ve heard every excuse under the sun. Commonly it’s down to bad luck, missing out on a job or simply not taking enough care when it comes to money. Then there’s gambling problems, a lover on the side, poor investment decisions, being ripped off by accountants, the government changing the rules, paying too much tax – the list goes on.

These might be valid reasons but there are still no excuses.

The truth is, no one will ever care more about your money than you do. Taking responsibility and control is the first step to achieving the financial independence you seek. That doesn’t mean you need to do it all on your own, nor does it mean you have to be a financial guru or investment expert to get it right.

It also doesn’t have to be complicated. It is almost embarrassingly, mind-blowingly simple to be wealthy in this country. You don’t need complicated trust structures or overseas bank accounts. In fact, all of these things only add unnecessary complexity in most situations. You don’t need a degree, you don’t need to be a genius… you just need to pay attention.

So the good news is that you don’t have to be a financial guru or investment expert to become rich in Australia. You simply need to have a plan and be prepared to work at it, year in year out (notice I didn’t say week or month here). You need to take responsibility to understand the basics of how money works in this country and you need to take responsibility for the outcome.

Only you can decide whether you get your money shit together. Reading that, you’re probably feel either terrified (I get it – it’s scary) or inspired because it means right here and now you have all you need to never go without again.

The purpose of this book is to give you a framework to turn your dreams into reality, to help you understand the forces and principles at play when it comes to money and give you an insight into how others have got their money shit together. You will only walk this road once in your lifetime but as one of Australia’s leading financial planners, I have had the privilege of walking it thousands of times over with my clients. From this real-life experience, I’ve observed some of the most important ingredients required to make your money dreams come true.

Let me tell you about a few things that you won’t find in this book.

Firstly, you won’t find any list of ‘top secrets to get rich’ in here. Yes, there are insights and conclusions and observations from my life experiences but there are no secrets. That’s because there are no secrets when it comes to achieving your money goals. I have met many people that spend a lifetime (and sometimes a fortune) looking for secrets and paying others who promise them the world and deliver an atlas. In doing so, they ignore all of the basics right in front of them. More than 3000 years ago King Solomon told us: ‘There is nothing new under the sun.’

That was true then, and 3000 years later it is even more so. One day, if Australia morphs out of a capitalist system into something more evolved, we may see something new. But in the meantime let’s stick to a plan that we know will bring success.

Lastly, you won’t find any formula to ‘get rich quick’ in this book. What you will find is a sure-fire way to ‘get rich slow’. I can’t emphasise enough how important persistence and discipline are in getting your money shit together. It’s not glamorous and it’s not often exciting. Always remember: being in control of your finances is in itself a means to achieving and manifesting who you are as a person. As a consultant once explained to me: ‘It’s simple, but it’s not easy’. You don’t have to be a genius to get your money shit together; you just have to have clarity, take responsibility, make a plan and then grind.

STEP 1 LOSE THE MYTHS, FACE THE FACTS

What’s stopping you from being in control of your money and what’s standing in the way of you living the lifestyle you dream of?

If my 30 years of experience is any guide, the likely answer is you!

I believe that anyone in Australia can be rich enough to live the life they dream about and I promise you there are no catches involved.

Oh wait, yes there is. You have to be willing and able to work productively to earn an income. That’s it. Beyond that, if you don’t live the life you want, it’s almost certainly because you haven’t got your money shit together.

Anyone can get their money shit together if they’re prepared to make the effort. Let’s start by losing the myths and facing the facts.

What are your current beliefs about money? Maybe you can’t wait to be rich so you can start investing. Unfortunately that’s like saying: ‘I can’t wait for my teeth to stop being crooked so I can start brushing them.’ Let’s look at a few common statements about money.

I’m no good with money. Well, newsflash – no one is born good with money. It’s a learned skill. There simply isn’t a money gene. In fact, we are genetically wired to be incredibly bad with money.

I’ll just have to win lotto. Lotto is a classic example of our inability to put a proper price on the odds of winning. Each week, we read about a big lotto winner, and because it happens regularly, we underestimate the true chances of winning. Someone has to win each week, so why can’t it be me? What you don’t see is how many lose each week. The odds of winning Division 1 in a Saturday Lotto draw are roughly 45 million to 1. A very big number against you. So big, it’s practically meaningless, especially as the cost of a ticket is so small, right? Let’s try an exercise to give you an idea of just how unlikely it is to win.

Take an example from time. Think of one specific second between January 1, 2017 and March 31, 2018. Write it down, now. For example, you might select 8:13:34 pm on August 3, 2017. Just one second. Now turn to page 182 of this book and look at the second I have written down there. Was it the same? Your odds of guessing the very second that I did are about the same as winning lotto – there are about 45 million seconds in a 15-month period. Winning Lotto isn’t a plan, it’s a 1-in-45,000,000 fluke. You deserve to have a plan, not a hope.

If I get a lot of money, someone else will have to miss out.

The underlying assumption is that there is a limited amount of money or wealth to go around. It presumes that people get rich at the expense of others. Nothing could be further from the truth, because this myth ignores the reality the money – representing economic value – is created by each of us through our choices. But put economic theories aside, and consider this: How much money existed in Australia in 1770 when Captain Cook sailed into Botany Bay? Answer: none. How much was in circulation by 2012? According to the Reserve Bank, about $53,595,000,000 (that’s over 53 BILLION) in paper money, which itself was an increase of nearly $20 Billion only eight years earlier. The point is, your wealth is not going to result in someone else missing out.

So forget these and other myths. The first step towards living the life you dream of is to be honest with yourself and face the facts. You have control over the outcome and there’s no one else but you to take responsibility for what happens next. Consider this:

You will earn millions of dollars during your life. Think about it, the average wage in Australia is just under $80,000. Assuming you have a (short) career of 40 years, that equates to more than $3,118,000 of earnings – and that’s before inflation or wage growth. What are you doing to put some of your millions to work for you? For many, the sad answer to that question is nothing. Don’t be one of them!

Australia is one of the best countries in the world to build wealth. Our country has a strong entrepreneurial economy, transparent taxation laws and low corruption. It’s also one of the most equal countries in the world for income distribution. There is no doubt that the rich are getter richer but the poor are getting richer too. If you can’t make it here, you probably can’t make it anywhere.

So many choices to invest. Today the average person can invest in ways that just a few years ago were available only to millionaires. Likewise millionaires can now invest like the billionaires of the past. There are hundreds of low cost, easily accessible investment options that you can put to work for you – if, of course, you choose to do so.

My eight steps to Breaking Down the Barriers will show you the building blocks to gain your own financial freedom. And if you are already well on the way, you’ll pick up some good money tips too. Remember: no excuses! Take responsibility and start today.

So, I’m going to tell you some stories which have all culminated in the development of the eight steps to financial success. It’s my hope that all of my life lessons and many failures can give you some great advice and at the very least some context about how the eight steps were developed. So, let’s get started.

Chapter 1 – Lessons from a career

There’s something about milestones, whether they are big events, special occasions or just regular check-ins, that make you stop and look at what you’re doing with your life.

I remember in the lead-up to my 40th birthday I really started freaking out in a way that I never had before or have done since. At 39 and ¾, I suddenly started getting really down about getting older. It all seemed downhill from there, only decay and dissolution lay before me. I was even freaking out about how much I was freaking out.

Then the big day dawned and suddenly the mood disappeared. I rejoiced that I was 40 and realised that being 40 was much better than the alternative. How lucky and fortunate a life I had. A part of the change was taking a tally of some of my milestones. I worked out that in 40 years I had achieved the following: two children, 17 addresses, 12 jobs, 11 cars and seven rock bands (and alas, zero appearances on Countdown).

From labourer to kitchen-hand, pastor to postman (yes, I really was Postman Pat), the jobs I’ve had have held me in good stead and given me broad exposure to different ages, markets and people from all walks of life. I learned that, to paraphrase Zig Ziglar, if you can help others realise their dreams, your dreams will probably come true too. (In his 86 years, he became the prince of US motivational speakers – so those words of his still resonate.)

I also learned the value of preparation. I got most of the jobs not because I was the best, but because I was better than the competition. Relativity has a lot going for it. The very strange job I had filling car batteries with acid for 10 hours a day? I got it because I was the only applicant that showed up in a suit. The boss didn’t need to know I borrowed it from a friend.

I also learned some street smarts. I was only 14 when I first got a job at Hungry Jack’s. I was scared shitless when I went in and asked to see the manager. She kept asking me: ‘Why do you want to work at Hungry Jack’s?’ I thought this was the dumbest question in the world, so I answered: ‘Because I want to earn money.’ It was some years later that I realised they were hoping I would express some long-held desire to excel in the hospitality industry.

Nevertheless, they hired me and I devoured learning everything I could about making burgers – from cleaning the machines to working the cash registers to dealing with the public. Back then, only girls worked the checkouts and there wasn’t a good reason why. After a while, it was the only job I hadn’t done so I nagged the manager to let me learn how and did the job despite the teasing from my mates and some of the customers.

And the lesson I learnt? Never let other people’s opinions stand in the way of your ambition and curiosity. I also learnt another really important lesson – always make your boss look good. There were a lot of trainee managers coming through and most of them were only a few years older than us lowly floor workers. Most of them wanted to hide in their office so if I could make their life easy by covering for them I would usually get the pick of the best shifts. I was helping them realise their dreams and in turn it gave me a promotion and more pay. I didn’t mind the extra hours too, as it helped me save more money.

Another important lesson I learnt was to be prepared to stand up for what you believe in and never abandon your integrity. My last manager at HJ’s was a very insensitive person who treated all of us like shit. To her, we were just a disposable resource and we could never do anything right. Eventually I’d had enough of the verbal abuse and her inability to manage a shift (I was such an expert at age 16) and after the rush hour was over, I walked in and said ‘I quit’, punched the clock and walked out. Sure. I was now out of a job. But, gee, was I happy.

It makes me smile now, but I was so infuriated by this manager’s mismanagement that I wrote a letter of explanation to the owner of Hungry Jack’s. I’d never met him and I never got a response, not surprising really. I mean, it was a hand-written letter from a 16-year-old who quit halfway through a shift. I really wish I’d kept a copy, especially when on a recent flight he was sitting right behind me on the plane (I couldn’t bring myself to mention it).

Reviewing all of these events when I turned 40 reminded me what an amazing life I had had so