Impact of Interest Rates and Global Markets on Australia Business Owners

EP 019:
What a week!

Things are certainly heating up in Australia with the lead up to the federal election.
Don’t forget to vote this weekend ;)

In this week’s episode:
○ Interest rates go up for Australia
○ Is a recession coming?
○ What metrics do you review and obsess over every month?
○ Our favourite online wealth creation resources

Prefer to listen or watch?
You can hear Grant and I discuss these topics in more detail on the podcast
Click here to tune in: https://linktr.ee/businessandinvestingcom

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WHAT HAPPENED

Interest rates went up!
Will this kill your business and wealth?

In summary:
○ Interest rates rose 25 basis point in Australia (50 in the US), from 0.10% to 0.35%
○ For every $100k of debt you have, you are now paying $16 more per week to service that debt

Why is this important to Australian business owners?
Believe it or not, interest rates going up is a good thing!

It means the economy is going so well that the central bank needs to slow things down!
(before things get too heated with inflation)

When the central bank (RBA) is cutting rates it's because they are concerned the economy is slowing too much and they want to give it a push.

However!

If you have a lot of debt or are in a business that relies on the use of debt…
Now is the time to review how much debt you are using and the terms of that debt

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WHAT HAPPENED

Global markets are falling.
Is it time to be concerned about the economy?

In summary:
○ Global wealth has dropped 14% in 5 months... $35 trillion ... including $1T in crypto
○ For context, it dropped 19% in 2008 during the mortgage backed Global Finance Crisis

Why is this important to Australian business owners?
There is no denying it.
Markets have changed significantly this year in comparison with the last 2 years.

Here’s my take…
The world is learning to deal with life after the events of the last 2 years.

There is going to be some turbulence while we workout how to deal with interest rates, supply chains, people working from home, travel, etc. (the list goes on)

Now, while I suspect there will be some turbulence…
There will also be some huge opportunities for business owners to take advantage of.

This is the time to position yourself and your business in front of the new way the world works.

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COMMUNITY QUESTIONS

What metrics are you obsessed with reviewing every month?
(business and wealth)

Something I have noticed in my life is whatever metric I am paying attention to tends to improve.

As they say… What gets measured, gets managed!

This is why it's critical to pick the metrics that match the outcomes you want.

Many get caught out tracking “revenue” or “leads” when they should be tracking net profit.

These are the metrics we are both obsessing about at the moment.

Grant:
○ Business = Net profit in $$$ and Net profit as a %
○ Wealth = Cash flow from assets + liquidity

Charley:
○ Business = Return on Equity (ROE)
○ Wealth = Net free cash flow

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COMMUNITY QUESTIONS

What are our favourite online wealth creation courses and resources?

Grant and I are in agreement on this one.
Our favourite resource… (A book)

○ ‘Debt Millionaire’ by George Antonne

If you haven't read it you should!

Noting Georges other book “the wealth code” is fantastic and I highly recommend also

Other favourites:

Grant:
○ The elephant in the room podcast
○ The investor lab podcast

Charley:
○ Kent cliffe’s youtube channel
○ Specialist Share education youtube channel


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UPCOMING

Be on the lookout…

In Tuesday’s email and podcast, Grant and I will be diving deep into how you can get access to more leverage than typically available.

And, If you want to hear us unpack these topics before anybody else does…
Then make sure you are subscribed to the podcast: https://linktr.ee/businessandinvestingcom


Episode Highlights:
00:00 Welcome to Business and Investing
01:10 Interest rates went up! Will this kill your business and wealth?
13:09 Global Markets Are Falling. Is it time to be concerned about the economy?
27:30 Community shout out
28:15 What metrics do you review every month? (in business and with wealth)
41:37 What are our favourite online wealth creation courses and resources?
48:20 What is Charley pondering
49:26 What is Grant pondering

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DISCLAIMER:
All information we share is NOT financial or investment advice and is purely intended for entertainment and educational purposes only. Always seek professional advice before acting on any financial decision.

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