EP 062: Wealth Q&A

Last week I went on a beautiful morning walk in my neighbourhood.
We have finally hit spring, and it makes all the difference.

No more having to wear eight layers of clothing to broach the Melbourne winter.

I went on my usual loop and popped a podcast in.

About halfway through the walk, I noticed something different…

A ‘for sale’ sign on a beautiful home that I had often admired.

This was a house I could imagine living in and raising my family.
I would even go as far as to call it a ‘dream home’.

I could see the family events.

The Christmases we would host.
The dinner parties I would host.

Really show everyone that I had made it.

Without hesitation, I grabbed my phone out of my pocket and opened up the realestate.com app.

I was eager to know the price.

I was thinking to myself:
“I would be so proud to provide a home like this one for my family.”

My excitement faded quickly when I saw the price.

Kidney prices came to mind…

I started to rationalise with myself.
If I stretched myself, I could probably buy it.

But I had a realisation of what would happen if I did.

All the money I put into this house would mean that the money would not be working for me like it does in my investment portfolio.

It would also create a large amount of debt under my personal name rather than under my investments.

I then stopped and thought about where I would be in 10 years if I bought this house VS buying a reasonable house and kept investing.

Suddenly I didn’t want the house.
I much prefer the freedom that comes from my investments at this point in my life.

I’ll buy a “dream home” at a different stage.

I’ve seen myself make this type of decision several times too.

There is a real danger in buying too much house, especially before you have the wealth built up to pay for it.

It becomes the thing that holds people back from making the moves and seizing opportunities.

I’m not against buying nice homes, but WHEN you do, it is critical.


This week on the podcast, Grant and I are covering more Q&A from the community.

Including the question
“How much house is too much house?”

A question all business owners should consider…

If you would like the hear the discussion, tune in to this episode now.

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.

Episode Highlights:

00:00 Welcome to Business & Investing
02:17 How much is too much house?
05:40 Reasons people get massive and expensive houses
12:58 Decision-making through calculating time and costs
17:33 The recommended ratio between your residence and net worth
20:53 What happens when you buy too much house
24:21 Do 90% of business owners fail in the first five years?
29:13 Fear and overconfidence in business
35:07 Learning by failing
39:25 Being a continuous learner
41:17 The mindset that drives business success

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