Welcome back to Money Monday. If you haven't already subscribed, please make sure you do. Because when you subscribe to my channel and you watch my Money Monday videos on a regular basis, we're planting really powerful seeds. We're helping you make better, more informed decisions in the way that you choose to use money and spend money and invest money. I'm helping raise your borrow of financial knowledge and education and I'm helping you get really motivated and excited about what you can create for yourself in having a happy, healthy, financial future. Now before I launch into Money Monday, I want to do a quick shout out. Tomorrow, as in Tuesday, the 15th of May, it is Australia's ClickFrenzy sale event. Now this is where it's a great opportunity to grab some amazing bargains and things on sale. And I will put it in the video description box below the link for you to register. But I know for myself, Rocco has got his birthday coming up and not only do I need to get a birthday present for him, I also need to organize his party. So to try and get my budget to stretch as far as possible, I have registered for this event and I will participate in myself to grab some bargains. You can actually check out on Instagram what I end up buying. So if you're interested and want to read more about it and what brands are involved, make sure you click on the link in the video description box below. Now moving on to Money Monday. In Australia, our government recently announced that it will be giving up to $530 per person earning between $48,000 a year and $90,000 a year. And that people earning less than $48 they will still be getting a rebate is just slightly scaled back. Now some people have been saying, what did you do? $500 is not really going to make that much of a big difference in my life. And that most people will actually probably just go and spend it. But I want to stop that attitude and that mindset and actually get you to think about using this $500 both your immediate financial benefit and for your long term financial benefit. Now if you're watching this video from another country, please don't press stop because this video is still for you. I want to basically make this video about the power of using a once-off amount of $500 plus $500 per year to show you how powerful that is, especially over the long run. And especially when you use that money wisely rather than just spending it on lifestyle stuff. And we're just like thinking about the power of all dollars adding up over the long run. So get ready to be inspired and enlightened through this video. Now idea number one is to take you off $500 rebate as well as the rebate year after year after year and put that money proactively set it aside out of your temptation into a diversified balance managed fund or ETF. And all you simply do is invest the $500 initially and then year after year just continuously add that government rebate into that investment portfolio. Never take any money out just let it kind of reinvest over time. Now if you could do that over the course of say 10 years earning an average interest rate of say 5% which is quite conservative. By the end of the 10 year period you would have over $6,000 or $6,200 invested set aside. And that's using your simple government money to your advantage. Idea number two is to use your $500 to help pay down non-deductible toxic debt. Say for example someone has a $400,000 mortgage and they're paying an average interest rate of say 6.5% on a 25 year term. If they were to take that $500 rebate and put it on their home loan and continuously every year put that rebate on the home loan year after year after year that person would save over $12,000 in interest and pay their home loan off eight months earlier. How good would that be? I would love to pay off my home eight months earlier think of what I could do with my mortgage repayments and have so much more fun with my mortgage repayments but paying down non-deductible debt using $500 is a fantastic strategy. The third idea is to take your $500 rebate and put it into superannuation. Put it in as an after tax contribution. Now once that money is in super you can't actually get it out but it means that you again removing temptation because that money is then invested for your long term benefit. Now if I took someone say age 28 with say $22,000 already in their superannuation account earning say $35,000 a year with their employer contributions going in and they actually put their $500 rebate in there year after year after year by the time they reached age 65 they would have over $306,000 in their superannuation account. They would actually be over $39,000 better off than if they were just to go and spend their $500 rebate year after year after year. Now the fourth and I think they're most inspiring idea for everyone and anyone no matter where you're living in the world to use your $500 and that is to build up a diversified investment portfolio. And yes you could do this through a managed fund, you could do this through investing in ETFs or you could do this through investing in listed investment companies you don't have to pick your underlying individual stocks and shares you can just hand this over to an expert. The principle is setting up an investment portfolio. Now in my example behind me I'm going to link the calculator I'm using so you can play around with this yourself. If you want to take your $500 rebate and invest it and then again as I said continuously year after year after year adding that that $500 religiously into that investment portfolio with all the dividends being reinvested. If you did this for 40 years with an average interest rate of 8% which would be more of a growth to a high growth investment portfolio of international domestic stocks as well as property you would have over $129,000 in that investment portfolio over 40 years. Now this is actually the really cool part about this investment strategy. You've actually only deposited $20,000 of your own money over that course of period of 40 years. You've made a profit of over $109,000. Now that is the power of compounding interest working its magic for you over a long period of time and it's an incredible way to easily and simply build wealth, build more financial security for yourself in your life. Now as I like to say wealth creation actually has very little to do with how much you earn but rather what you do with what you earn. So if you're in a situation where you have a spare $500 and you think you're capable of coming up with a spare $500 just once each year why don't you put it towards good use. Look at these four different strategies and how they benefit you and how they may help improve your own financial situation. Don't look at $500 is nothing it's just money that just erodes into a lifestyle. Be proactive with your money. Put that money aside, put that money away, start building your own investment portfolio and your own passive income streams. You'll be amazed as to what you can create for yourself. Now that is it for this video. If you haven't already subscribed please make sure you do and don't forget to check out the click frenzy sale event because there are some amazing discounts and sales up on offer for you. Ciao for now everyone.