What do Lebron James, Aussie kids and investing have in common? Check out this vid on mindset.
Boz and Cam take you through how to reach the mindset of a succesful investor. As well as how you can bring your kids along with you on the journey.
CAM – Hey guys, Cameron McLellan here.
BOZ – I’m Michael Beresford.
CAM – Welcome to today’s wealth WOD. I want to talk about growing your mind. I don’t like getting too deep or meaningful, or too airy-fairy, but I am a big believer in having the right mindset. That’s when you’re going to be in the best. I want to quickly tell you a story of something I went through with Gus my son. I’ve got three girls and one boy, my three girls playing sports are absolute animals they’ll jump in and dive from the bottom of the pack. Gus, he’s very capable but he’s a soft soul, which is going to make him a good man when he’s older. But it takes a little bit more encouragement and a little bit more confidence building to really engage in the sporting field.
So I was talking to him, he plays basketball and he plays and he plays AFL footy, so I was talking to him about basketball and he’s starting to really tear up the court in basketball. Footy, it’s cold out there, early mornings, he’s a bit slow to really engage in the game. So I wanted to illustrate to him where his mindset was in both. You always want to encourage and to motivate as opposed to going, “you’ve let your teammates down.” so I wanted to encourage him, but for him to recognize where his mindset was. So I said with basketball and football, which do you enjoy more? Because he plays basketball full time and footy on the side of that. So he said I enjoy basketball. So I said, which do you try harder at? He said basketball. I said, do you reckon if you tried just as hard at footy you’d enjoy footy? And he goes yeah. So I said, well mate try.
So I gave him an illustration which I’ll run you through today because it’s really relevant when it comes to investing. Outline this which is grow your mind. So I said to him let’s pinpoint where you mindset is when it comes to basketball. There’s different stages: I won’t to do it, I can’t do it, I want to do it, how can I do it, I’ll try and then I can do it. He straight away went basketball and he goes, “I can do it.” Very confident. He can take it out and play hard with the big boys. I said where are you with footy? He said, “Oh last week I was here, I won’t do it.” Literally he wasn’t, he was it’s not for me, I don’t want the ball. Up until the week we were talking about it and he’s going he sort of wants the how to do it, and don’t get me wrong you keep the footy pretty regularly. And then he’ll try, so he sort of moved in here in the space of a week. He just needs to hang here for a while and really just build that confidence over the season to the point where he’s got the same confidence as basketball. I should point out today, just for a location point in time, the Cavs are playing the Warriors in the first playoff.
Actually check out Instagram page and watch game three and four of the Cavs Raptors over in Cleveland. I didn’t have enough wealth when I was a kid to go to see Michael Jordan so I thought there’s no way I’m going to miss Lebron so when the Heat were in the playoffs this last time, Al and I jumped on a plane went and got courtside seats, which is ridiculous but literally this far from Lebron. He’s a very intimidating man. So check out Instagram page and have a look at the pics and videos in there.
BOZ – I just love the fact that Al froze and could not even reach out to give you a high five.
CAM – Yeah I was right in Lebron’s face showing him my pipes. I always wanted to give him a high five and was going and putting my hand up.
BOZ – I can’t do it.
CAM – That’s right, that’s right. But this concept, really is exactly the same when it comes to investing. So Mike and I have talked about it very regularly about the mindset of investors and where we were initially and where our partners were because there’s usually a driver and a passenger here in the whole investment cycle isn’t there? – Yeah, I would say. It’s really interesting it doesn’t matter if it’s primary school kids playing basketball or footy and whether it’s adults trying to get their head around an investment journey. What we find is very small number of people actually fit in here. Most fit in this middle pack category about definitely wanting to do it because they realize that the alternative is no good. But they kind of say how do I do it, they don’t know where to start and so forth.
BOZ – There’s a lot of noise around this area.
CAM – Hundred percent. You know, negativity in the media, well-meaning family and friends that have got opinions that generally enough to put people on the back burner. This is where that gets stuck. So what we do as a part of our process they’re like lifelines and gives people ridiculous levels of clarity. Is a goal shifter we go through. We do it in the first half hour of every first appointment that we do with clients. It basically helps them get clarity on where they want to be, where they’re currently at and what’s required to get from a to b. Because it’s a pretty simple journey and why that’s valuable is because it helps you understand whether or not the strategy that you’re going to apply is actually going to get you the end result. No point in trying to drive from Melbourne to Sydney with a car that’s half full of petrol. Right? It’s not going to get the job done. So I always come back to very good friends of mine. We did the goal sheet for the first time back in probably 2009, 2010. I filled out that goal sheet with them, I put it in their file and then I pulled it out a couple of years later after they’d had a property and started to see how this whole thing worked. Right, they’re right around here. And I said okay, have the goals changed? Are they still the same? What is it that you want? It was amazing the amount that they wanted doubled and the time frame that they wanted it in halved. Instead of saying I think I can do it and I’ll have a crack and if we got $100,000 a year in passive income over 20 years that would be a great result. They started to see the process work, their confidence was here. We want 200,000 in 10 years and that was how they said it. Clarity is an amazing thing. This property investing caper it’s not difficult. You can get the help if you need it. The number one thing that separates successful from average is mindset.
CAM – Positive reinforcement for the kids though. Don’t get too harsh on them. Thanks guys.
BOZ – We’ll see you next time.