#243 - 10 Worst Assets That Keep You Poor (In Under 10 Minutes)

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