Buying and selling crypto and trading it, it's one of the worst things you
can do and you will just send yourself insane or broke or
worse, both. Over leveraged property is not an
effective means for your capital. And in a lot of cases, it's going to
actually take a lot more cash flow from you each week than give you. The average Aussie
has student debt of $27,000 and 12% believe they'll never
pay it off. Congratulations, you're neo-educated and you're broke. It's more of
an emotional decision than an investment strategy because it's hard to scale.
You can't determine it. It's a bit of a guessing game. And in my experience, it's
like, it's a very hard one to win. It's better to be rich than look rich. Here's
the savage truth with that one. So if you financed your drip, you didn't invest in style,
you financed your insecurity. I'm Lloyd James Ross, seven
figure investor and entrepreneur, and I've helped thousands of business owners and
professionals turn financial stress into success. If
you're stuck in old money habits, overwhelmed by investing, or unsure where
to start, this is for you. I'll give you the mindset and
strategies to take control, grow your wealth, and achieve financial
freedom. It's time to make your money work for you. Here's
the top 10 worst assets. You
can invest in it in under 15 minutes. This is going to be juicy. Get your pens ready
to go. This is going to be highly, highly valuable
and very quick. So buckle up. First one, number one of
the 10 worst things you can buy in terms of assets is, you guessed it,
a brand new car. It smells like success until you check your
resale value. A new car drops 10% to 15% in
value as soon as you drive it off the lot. and up to 30% in
the first year, okay? So, it's a
very bad idea to buy a brand new car, right? He
didn't invest, you emotionally impulse buy it. Impulse
buy it? You emotionally bought on impulse, okay?
You bought on impulse to get the big red ribbon around the car to put
on social media, tell your friends you got a brand new car, right? You just wanna smell the
new leather trim. That's not really a flex, it's draining your
wealth one monthly payment at a time, especially, especially, if
you have borrowed the money to buy it. The way around that
is to go to a car yard, a very reputable car yard
and buy one that's three years old and you'll save a lot of money and depreciation quickly.
That's the way out of that one. Second worst asset you
can buy, timeshare. Someone
in our team asked me, she went on a holiday with her family. She
came back and said, Lloyd, you wouldn't believe it. It's so exciting. I bought a timeshare. I'm like, no. Anyway,
she got a deposit back. Here's why, right? They say it's guaranteed holidays but
really it's guaranteed regret. Be careful I don't beat up
too many businesses. I love businesses and I really go for it if
you're a timeshare people, if you think the model is good but my experience of
that has been the resale value is not so good so you can Often
when you resell timeshare and to explain what timeshare is, it's where you buy into
like a syndicate to own a piece of real estate with other
people where you can holiday there occasionally. They
get you on the lifestyle but the reality is you don't really go there that
much so you don't really use it that much and also if you
don't use it, you feel guilty by not using it and also compels you to one holiday destination
for the rest of your life. you end up paying the fees
to own it when you're not really using it. And if you add up the fees, it's
actually cheaper just to go to a new resort every year than actually own a timeshare.
And the reality is they don't grow in value that much. In fact, they go down
in value a lot. So sometimes when
you get into it, you can't get rid of it. And I don't know anyone that's
had a great experience with it. So I would suggest to you if
you go to a nice holiday destination, they put you in the room and they show you the
presentation, just Leave. All
right. It's not a getaway. It's a financial trap with ocean views. All
right. So, number three, worst asset you can buy. I
know this one well because I've done it. All right. Degrees with
no ROI. Congratulations. You're neo-educated and
you're broke. All right. The average Aussie, check this out. has
student debt of $27,000 and 12% believe they'll never pay
it off. So imagine borrowing the money to get an education and
the education is not even helping you to get ahead. That's what's happening at scale
in our country. Here's the savage truth about that. You
spent 4 years and 5 figures to find yourself but
if it doesn't boost your income, it's not really an asset, it's more like a diploma in financial denial,
right? Because you're like, I did that but it really didn't help me move forward.
So you want to just get around that by doing practical education instead
of academic education. So practical instead of academic,
that's the difference. Okay, number four, worst things you can buy when
it comes to assets, luxury fashion, especially bought on
credit. I mean, luxury fashion just in general. Do you know how cheap
they make those clothes? Recently, what happened, there was a lot of vendors
in China and they came out openly on TikTok. Red
note and they showed people that they're making all these designer handbags for so
cheap and it literally exposed the absolute ripoff that
luxury brands are and People for the first time only discovering this
which is pretty wild because it's been happening for many many many many many decades All
right, so Avoid luxury
clothes altogether, right if the tags are a flex I then
you're doing it wrong, right? It's not really a flex, it's just showing people
that you think you're rich, okay? So you can't really even
resell those luxury items generally.
So just be aware that It's
better to be rich than look rich, okay? So here's
the savage truth with that one. You're not wearing wealth, you're wearing payments,
especially if you put it on after pay or Klana, all right? So
if you financed your drip, you didn't invest in style, you financed your
insecurity. You're financing your insecurity. Isn't
that a cool way to put it? All right, cool. The fifth asset to avoid when
it comes to investing is this one. And you will hear me a lot on
Instagram and Facebook and everything like that. I'm sure you've heard me say it before. I'm
leading an anti-property rebellion. And that's really weird because
my whole background was property for a long time. And what I've noticed is
that over leveraged property is not an
effective means for your capital. So you have to be very careful that
property doesn't take more from you than what you get. Nice views,
zero liquidity, and difficult to refinance if it falls. People
only have experienced recently property going up, right? And so you
have to be very careful because if you got a lot of debt on it, it's going to
sap your cash flows. And in a lot of cases, it's going
to actually take a lot more cash flow from you each week than give you. And
this is how sometimes certain property investments can be terrible,
terrible, terrible assets to own and you'll end up just selling it.
It's got to be done correctly. And right now, to be frank, I can't see any
market in Australia or many other areas of the world where you're getting good deals
in property. So the best thing to do for now is probably just avoid it.
All right. So the bank is making the money, not
you. Just quickly, if you're ready to take control of your finances but feel
stuck on where to start, I have a solution. My book, Money
Buys Happiness, simplifies investing and wealth building with
practical steps to help you achieve financial peace. Get
your copy via the link in the show notes and let's get your money working for
you. Now back to the episode. Next one, number six. of
assets that you shouldn't touch and shouldn't buy and shouldn't invest
in. Number six of the worst things you can buy. This is up there with like,
if you've been following me for a long time, this is, you'll know this. I
hope you do by now anyway. People make fun of me about it, but
it's crypto and NFT. Now, NFTs are really interesting. They're non-fungible
tokens. There's actually a very good functional use for them. And
I think you're gonna see a lot of adoption of NFTs in society, but
just because, You adopt the technology doesn't mean it's worth anything, right?
It's like saying I'm gonna invest in the internet. I'm like, what does that even mean? it's
just the infrastructure and crypto by and large is probably
the same because when people say crypto what they mean is like a
decentralized uninflatable currency in the blockchain which
is blockchain is a wonderful technology of open-book accounting and I'm
sure a lot of assets will be tokenized and go into a blockchain accounting system.
And without a doubt, I agree, we do need a currency that can't be
inflated and manipulated. However, that's not what people are
using crypto for. What they're using it for is pump and dumps,
actually. And so when you're buying and selling crypto and trading
it, it's one of the worst things you can do. And you will just send yourself
insane or broke or worse, both. And
so, you know, you look at some of the crypto coins and so forth, they're
like just getting smashed. It's up and down, right? NFTs, some
of them, my brother bought a llama, we always joke about it. I said, how much is
your llama worth? And he bought it. When NFTs were going off,
going up in value, he's like, it's gonna be worth heaps. And it's like worth like a dollar. And
so some of them went from like 10 million, 20 million down to like zero. So
it's just, they just aren't worth anything because
there's no intrinsic value. They've got no real, value
to society, which means they're not really worth putting your money into, okay? So
the savage truth is you didn't really huddle, you panicked. And if you bought at
the top, you probably sold at the bottom and you're gonna play that game forever. You weren't really investing, you
were gambling, okay? That's really what you were doing. All right, number seven, when
it comes to the worst assets of the 10 you can possibly buy,
penny stocks, all right? They said it was the next best thing. It's
the next Tesla. It's the next this. But the reality is, it's a bit of a
pump and dump. And someone you know probably gave you a bit of a stock tip.
And the reality is, it's not very liquid. It's highly volatile. The
businesses are usually not making any money. It's highly speculative. And
it very seldom works out. Because even if it does well in the short term,
like you're pumped up, you'll get greedy and not sell it. And then it'll fall
back down. You'll just play this mental game in your head until you just get over it.
And you'll just exit. And you'll probably exit with less money. So
the best thing to do is to avoid penny stocks like just don't even
touch it, not worth your time. You'll
hear stories of people doing really well and they'll tell you when they do really well but
the truth is like if it came from, I shouldn't say YouTube
because I'm on YouTube now but Reddit or some sort of friend stock
tip and haven't really done that well in life, then
you're going to get played probably. So avoid that. All right, number eight,
I've got firsthand experience of this, so does my dad. Over
the years, at different charity auctions, we've happened to have bought sports
memorabilia. You get caught up
in the moment, especially when it's for charity. Sports
memorabilia goes down in value so much, right? And
you have these sort of dreams that
you want to be closer to your heroes. So you frame your childhood dreams, but you
freeze your cash flow at the same time, right? So most sports collectibles, they
hold sentimental value, but they don't really hold market value, right?
They can appreciate, especially in market booms, but
the truth is most of it goes way down. Like even
the stuff you think is really good goes down. My
dad had this boxing glove and it had all the 12 heavyweight champions of the
world who signed it. I'm talking like Mike Tyson, Evander Holyfield, George
Foreman, Muhammad Ali. Amazing, right?
It's not worth much now. It's ridiculous when you think about that, because all the world
champions. There's very few sports memorabilia
items that actually go up in value. So there are some
but it's best to avoid those. Does that make sense? It's more of an emotional decision
than an investment strategy because it's hard to scale. You can't determine it.
It's a bit of a guessing game. In my experience, it's a
very hard one to win. You got to
physically do stuff too. Number nine, when it comes to the top
10 worst assets to buy, home renovations that don't add value. Pinterest
inspired you, Zillow didn't. The average home renter returns only
56% of its cost at resale, if that. Kitchens
and bathrooms and so forth. I've
seen this firsthand so many times where you go, you know what, I'm going
to add a bathroom, I'm going to do this, I'm going to add that carport, I'm going to do that. The
reality is quite often, it doesn't
always get reflected in the new valuation unless there's a really fast rising
market. And even then, you can only realize it when you sell the property. So
you build your dream aesthetic but you're really not really building your dream bank
balance. If the renovation doesn't really pay you back, it's
more of an ego and a status thing. than
an investment. And it can be an absolute hole for your money. You
can just chuck it in there and you just don't realize it again. And it's emotional. You can get
kind of like caught up in the emotions of it all, right? And number 10, the
last top asset not to purchase is
expensive furniture. It's a velvet couch, but it's still not
passive income. Most furniture, here's
the stats, depreciates by about 40-60% the moment it
leaves the showroom. Almost nothing resells for more than
30% of its value. It's just brutal. So you buy
all this nice furniture and it's just worthless. And you see this
a lot because people put their furniture on the street to give it away when
they're done. They're like, all right, just take it. I've had a piece of furniture, I
actually think it sells somewhat on Facebook marketplace for a little bit, but I've had
furniture where I've just had put an ad
just come and get it from me. That's what it's like, right? You
try and buy statement pieces on ZipPay, but the statements don't build
any wealth. Unless it's cash or has
cash flow and appreciates, it's just a financial set
dressing. That's really what it is. So they're the top
10 assets that I would tend to avoid if you want to make your
life easier, more pleasant, more financially secure, and
scale your money without scaling your problems, all right? Because we don't want more problems, we
want more money. And avoiding these things will
do both for you, which is what I want. So if you've enjoyed the episode, send
this to a friend, hit the subscribe button, leave us a question or comment. What was your favorite
are one to avoid, which one, or actually tell me this, which
one have you actually bought that you regretted? I would love to know, pop
in the comments below. And of course we have comments on Spotify as well. But
I hope you've enjoyed that episode. It was a lot of fun to deliver that one. It's quite funny when you go through them
all and see how many bad things are actually out there that you just simply avoid.
And sometimes avoidance is the best strategy you can make when
it comes to scaling your money. Thanks for listening to Money Grows on Trees.
If you enjoyed the episode, leave a five-star review on Apple Podcasts and
Spotify and subscribe to us on YouTube so you never
miss an episode. And if you're serious about building wealth, make sure to
check out the links in the show notes and follow me on all social media
platforms at LloydJamesRoss for more. See