How I Got Myself Into Debt

Something, a lot of people don’t like. Talking about myself included is the financial
mistakes that we make and how we got into the financial mess that we occasionally find
ourselves in. So in today’s episode, a quick money Mondays,
I’m going to do the very difficult task of explaining how I got into debt. This is something that a few of you have been
asking in the comment section. How do I run a property channel and end up
finding myself in a situation where I am now currently in debt? What happened? How did I end up in this situation? Yeah. So we’re going to talk about that because
this year I will be focused on getting myself out of this, getting myself in a strong financial
position, strong financial position to go ahead and invest. But it all starts with the mistakes that we
make in the situation that we find ourselves in. When I did the free strategy session with
Ben Everingham, one of the things that we’ve talked about is where you at now, it’s really
important to assess your current financial situation, which I have done. Um, and that’s something that you guys will
do if you go through a free strategy session. If you’re looking to invest, you look at exactly
where you now and you have to then assess the mistakes that you made in the past and
the fact that you’re not where you want to be. If you want to get a free strategy session
to help you move towards financial freedom, got on property dot. Come to you and you can read more about it
over there or I’ll link out to the strategy session that Ben did with me, uh, down below. So without further ado, how did I get into
debt? So to start us off by the age of 28, which
is about three years ago now, I achieved what I call pseudo financial freedom. Now I’ve actually always called it that. I’ve never called myself financially free. I call myself sooner. We’ll have pseudo financial freedoms to by
using the word pseudo, I mean, not really. So not really financial freedom, but there’s
not really a better word for what I had. And that was the fact that I end businesses,
online businesses in particular that generated me weekly or monthly revenue that exceeded
my expenses without me needing to work on them. Now, if you go back to the video that I did
at 28 around financial freedom and how I have it, you see that I didn’t make many videos
around that time. In fact, I didn’t work on many of my websites. I’ve got a network of websites, not just on
property, but I basically wasn’t really working around that time. So around the age of 28, I achieved my ultimate
goal in life that I’d had for so long, which was to achieve financial freedom. And when I achieved, uh, it was very disconcerting,
I guess is the word you would use. So that was around November, 2016 so it’s
about two and a half years ago now. That’s right. Yes. Two and a half years ago now that that happened
and I didn’t really know what to do with myself. I’d always had a goal that I was striving
towards. I was always working really hard to wards
a goal. And I was fully motivated by that and then
as soon as I achieved that, I didn’t know what to do with myself. I struggled to find the motivation to work
because I didn’t know what the point of working was. I earned enough money to get by. I wasn’t super rich by any stretch of the
imagination, but good income, decent income, and yes, I kind of went into this strange
state, whereas just really unsure what to do. So around that time we were in a position
where we could have purchased a property, so we’re on the gold coast, so we were saving
money towards a deposit. We had enough money that we could have purchased
a property at the time, probably nothing comes from the business as well that we could have
got a loan for that, but we were unhappy in the gold coast. Me and my wife Kelly at the time, we were
unhappy there. So we decided that instead of investing in
property in an area that we weren’t sure we wanted to live for the next five years, we
decided to do something crazy, which was to go ahead and purchase a camper van, which
we did. And to then renovate that camp event so you
can actually go on Instagram and go to all in the van and you can kind of look through
our journey there from purchasing the van to renovating it. But basically the deposit that we had for
a property, we decided to invest into a camper van, which we still own but don’t use anymore. But we decided that we were unhappy doing
what we were doing and we had the pull our daughter out of school because she was having
issues at school. So we were homeschooling her, which was quite
difficult on us as parents because there was a lot of commitment in terms of that. So we were having a very hard time emotionally
and decided to go ahead and make that commitment to try the van, tried travelling in the van
and we did in March of 2017 we had completed the van and we started our van life journey. Now that journey only lasted two months. We drove from the Gold Coast down to Sydney
and we went from Sydney and made it up to Noosa and for two months straight, basically
in range. I think we had about maybe a week or seven
days within that two month period where it didn’t rain. If you go to the Instagram all in the van,
you will see how much rain there was. The freeway between Sydney and Brisbane got
closed twice in that period. We nearly got stuck in some small little town
on the way up the coast. Then we got trapped in Byron and couldn’t
get up to the gold coast because of flooding. So basically five people living in a van when
it rains consistently for two months was not ideal and idea was we’re starting in Sydney
because my sister was having a baby. We’ll work our way up and then we’ll, we’ll
be in Queensland and north Queensland during dry season, but two months in the van with
heaps of rain, you just cabin fever central. And so we did spend money on Air B and bs
that we didn’t anticipate just because living in a van in those conditions just didn’t,
didn’t work for us. So the van trip didn’t work out the way that
it was meant to. So we spent a lot of time in airbnbs and eventually
moved up to new. So we discovered on the van trip this thing
called Montessori, which we had never heard about before. We were just in Nora heads on the central
coast at the caravan park there. Go talking to a mom whose child went to Montessori,
where like, what’s that? She told us, we researched it, we found one
in new south. We were heading up there anyway, so he stopped
in, loved it and decided to stay. So that’s where we stayed for the next, about
18 months or two years was in new south. So, yeah, I think we moved there in April
and we left there in December the following year, so a bit under two years in that area,
in that area, in that time. And I hardly worked during that period. Again, being financially free, really still
unsure of what my motivation was, couldn’t find the motivation that I needed to work
to make money when I was already making enough money. So we just kind of living our life, getting
by and spent 18 months or so trying to explore happiness. Now, something that I don’t talk excessively
about but I had talked about before is that this was a leading up to this, like leading
up to the van as well as that time period in Noosa, um, was a time of great depression
for me. So I went through depression, I went through
anxiety code, went through some stuff as well. And so it was a time of real struggle in my
life in terms of mental health and how how’s was going. Again, I always had that goal that I worked
towards and I don’t know if it was the loss of that goal that caused the mental health
problems. I had dealt with mental health issues on and
off for about 10 years. Uh, dealt with depression, dealt with eating
disorders and stuff like that as well. But during this time period it got quite,
quite bad. Um, so yeah, it’s something that I don’t like
to share a lot because obviously it’s not, it’s not something that you’re proud of as
a person that you went through that and that you couldn’t be happy being financially free
and having an awesome family. Um, but yeah, it was a period of trying to
work that out and trying to find out how do I manage the suppression, how do I get out
of this depression? How do I find my happiness because I should
be happy. I have a beautiful family. I have a beautiful life. We live in Noosa, financially free. Um, yeah. So went through that period, didn’t focus
on work much, wasn’t really focused on finances at all, was just kind of focused on how can
we find happiness, how can we ever achieve these goals and still not be happy or how
can I achieve these goals and I’m still not happy. And that was something really difficult to
wrestle with and I didn’t want to go back to trying to make more money and cover up
the depression. Um, I wanted to find the source of it and
I tried a bunch of things that didn’t work. Um, yeah, so eventually kind of found a way
out of depression, which is a story for another day. Um, and started getting back into work and
started getting more passionate about work in 2018. So probably around mid 2018 April, May, June,
I started finding my happiness and started getting passionate about work and working
more, still not a lot. Um, but definitely getting more into it and
finding my motivation again. And around that time I was investing in some
cryptocurrency. And so headaches, stress, money, realize we’d
probably want to stay in new SAR, but we don’t want to invest for probably a few years. Just kind of save up. So crypto was kind of like a longterm play
that we were looking at. I was very passionate about the technology,
but obviously that was kind of peak of the crypto market or partway through the decline
that I started investing in that. So again, lost thousands of dollars in crypto. I’ve done a video on that, which I’ll link
up down below. We didn’t live super frugally and stay on
top of our finances like we should have. I think we were just living our lives, doing
our things. There was lots of mornings spent out of cafes
where we would drink coffee, get breakfast, and before you know it there’s 40 or $50 gone
at a cafe. Especially when you’re taking three kids and
you buy food for everyone, it can get quite expensive. So we didn’t live frugally, we didn’t stay
on top of our budget. We started to get on top of our budget towards
the end of 2018 we’re starting to be more diligent and live more frugally. But it was around that time that then me and
Kelly decided to separate. And so that kind of threw a massive spanner
in the works so, and a lot of expense came with that as well. So trying to manage that to make it as easy
as possible for the kids meant that we decided to get two separate places, but that would
be walking distance from each other. So we moved out of our existing house into
two separate places. So we’re now paying double rent. And it definitely made decisions at that time
that weren’t definitely not in my financial best long term interests because at that time
dealing with all of those emotions, dealing with that situation and was like, okay, how
can we minimize the damage here emotionally, um, for ourselves as well as for our kids. And so definitely made some decisions there
where I over committed financially. And so that separation happened around the
end of September in 2018 and kind of like a perfect storm was that exact same time business
started to go backwards dramatically and slow down dramatically. So I always call it pseudo financial freedom
because with online businesses, trends change, things happen. My businesses and a bunch of my websites are
seasonal anyway and do better in winter than they do in summer. But around September, October, November, business
went back significantly. So I just committed to two houses and paying
for both of those houses. So increased expenses at the same exact time,
that business slowed down and revenues slowed down and we’re talking a dramatic drop over
this period that was quite significant. So you kind of got this perfect storm that
happened where, okay, chief financial freedom at 28 went through a depression and anxiety
and difficulties there. Didn’t really work, was kind of starting to
come good at the end of 2018 starting to work again and budget. But with the work that I do, there’s a big
lag between when I do work and when I earn money for the work that I do have about six
to 12 months. So starting to get back into things and just
as things were growing, kind of had the perfect storm of investing in cryptocurrency, losing
money, they’re going through a separation, spending money. They’re having not been frugal up until that
point and then business dropping off at that time as well. And so all of that led to the point of, okay,
now all of a sudden my expenses are greater than my income. What am I going to do? I need to get out of this situation and I
need to acquire debt in order to do that. So we decided to move down to Sydney and moved
down to Sydney towards the end of December, early January. But what that meant is that there was a lot
of expenses that went with making that decision. So we moved to Sydney to be closer to family
as well as for Kelly in order to get work more easily, which is obviously going to be
beneficial financially so we can see the longterm benefits of moving to Sydney. But short term, that’s quite an expensive
endeavor to move into state as well as to break the leases on multiple two properties
that we had up there, those properties. Then we struggled to rent one of those properties,
so we’re paying rent for one of those properties for about two months while that property was
vacant as well. So basically it got to the point where now
things are stable. Carol’s got a job, um, she’s got a place,
I’m a dad, so I’m saving money now. Our business has since stabilized and I’m
working hard to grow my income for that. But yeah, you can see kind of how I got in
the debt situation. It was financial freedom, not being frugal
with my money and not being super diligent with it because I was trying to pursue happiness
and get it, trying to deal with my mental illness and get out of depression as well
as then you’ve got the perfect storm of making the mistake of investing in cryptocurrency,
overextending myself through the separation as well as business slowing down at that time. And then also the added expense on top of
that, of the cost that come with separation, like buying new furniture and other car, et
Cetera, as well as then the expenses of moving into state with your family and then starting
the kids. I had a new school, so how did I get into
debt? Yeah, that’s, that’s how, and so now in a
situation where I’m actively working myself out of that debt and we’ll be doing that for
the course of this year, the reason that I wasn’t more focused on achieving long term
financial freedom was really just that being disillusioned with being financially free. So when I achieve that financial freedom at
28 and it didn’t make me happy, I was like, okay, I can continue to work and pursue longterm
financial freedom. But I already know that financial freedom
doesn’t make me happy. I already know that I’m not happy in this. So what I’m gonna do is take time out to find
the happiness first, find out what makes me happy first, and then I can always come back
to achieving that longterm financial freedom. So that was the way that I thought of things. I achieved financial freedom earlier than
I thought through my businesses. And then, yeah, I tried to work out, um, how
to find that happiness and then I could push you financial freedom again after that, which
I guess is the place that I’m in now and that I’m working through now. So no, I haven’t made all the best financial
decisions ever. I’ve gotten myself in a bad financial position
through a myriad of bad decisions. It wasn’t just one bad decision that led to
this. It was multiple bad decisions. But I’ve learned a lot from it and are now
actively working to get myself out of it. So quite a personal quick money Monday today,
and not super quick, but I wanted to share this with you to know that you know things
aren’t perfect, I’m not perfect, but sometimes things happen in life and you’ve got to weather
that storm and get yourself out of that. So that’s how I got into debt. Thanks so much for tuning in and watching. I hope that you get something out of this,
or at least we can look back on this in years to come and see how far I have come from. Go ahead and check out the video that I did
on how I’m planning on getting out of debt. If you’re interested in that quick money Monday,
I’ll link that up down below if you want to check that out. Otherwise, until next time, stay positive.

16 thoughts on “How I Got Myself Into Debt”

  1. Big ups for doing this video bud✊? I hope putting it out there also helped getting more clearer with your goals. You got it !

  2. It's big u can come and speak like this bro. Hope all go well for u and ur family. learned so much from u and Ben

  3. Perfectly understandable. These things happen. I also suffer from long term mental health issues, but I function and work too. You have a good strategy for financial recovery and will get there. I appreciate the story and would like to hear your ideas on overcoming depression. Good luck

  4. You are fortunate that you have learned many financial lessons so early in life. Hopefully this will hold you in good stead for the future. Please aim for contentment rather than happiness. Happiness is too lofty a goal and may lead to frequent disappointment . I wish you every success in life, both financially and emotionally.

  5. Your authenticity is inspiring and reassuring, and this is why I keep watching your videos. Your transparency is so helpful for others to understand the fullness and nuance of life as one person, yourself, is experiencing it.

  6. Sorry for another comment but I have a lot to say on the issues raised in your video. I am very open about my struggles with depression and I have found it helpful to be open. What I have found with being open is that, many many others reveal having similar problems. This makes us feel less alone. On the financial front I find for many it can be swings and roundabouts. Many super rich folk have found themselves having lost the lot, and sometimes more than once. Did you see in the news today that the guy that won young entrepreneur of the year in Australia in 2016, has just had his food delivery business go broke? So you see if you do not put yourself out there and try then. you will never have the opportunity to fail, but you will never have the opportunity to succeed either. Hubs and I went broke in the GFC and had serious debt and now own a couple of million in property and shares. If the market collapses we could be back to square one again and be left with very little. Any thing can happen in life and often does. I have been depressed and also happy while being broke and I have been the same while having dough. You seem wise. Best wishes.

  7. Kudos to you for opening up about something that people seldom do. As with Annie's comment, wishing you the best success in life. Keep up the videos and great work.

  8. Good on ya man.
    Looks like you've done some soul searching and come out of it pretty well.
    Always gotta keep working on urself too. So easy to fall back into that pit of despair.

  9. Congrats man, glad you decided to do this video. You are a after all a person, and this video will help your viewers really relate, I am sure you will motivate many who also are going through, or went through, a tough time. Your authenticity is very evident, and the responses to this video is proof such a video was warranted. Keep it up 🙂

  10. Good onya for coming forth with this oh so complicated video. Young guy, your mind is running at a million miles a minute. Big ambitions, and I can't blame you for that in any way because that's how a lot of the biggest things have been achieved. But I see it as a pursuit of power, not happiness, or more importantly, contentment as has been noted here. People your age have only seen property prices rise, so it's understandable that you saw it as the golden goose and that debt is almost insignificant. What you have displayed here is not only of value to yourself, but also to society in general.

  11. Have you heard of an astrological term called Saturn return? I would google it. Everyone has their first Saturn return between 28-30 years old depending on when you were born. Everyone has difficult things that happen at this time and it is a common age for major life changes that make you an adult such as divorce. The second Saturn return happens at 56 years old when the chickens come home to roost. Now is a good time fir you to see a pin astrologer to get a 12 month forecast.

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