008 | James Schramko | SuperFastBusiness.com
James Schramko, founder of the multi-million dollar business success SuperFastBusiness.com, lives in Sydney, Australia and surfs every day. He helps information marketers and service business owners build highly powerful recurring subscription businesses so they can work less and profit more.
His real world experience running multi-million dollar businesses uniquely positions him as a high level problem solver of rare calibre.
Teams, systems, cashflow, traffic and leverage are terms James understands better than most…
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Nicola: Hi, I’m Nicola Cairncross, and you’re listening to The Money Gym podcast, where I interview successful entrepreneurs and investors, and ask them if they could go back in time, and give their younger selves one big tip about money, what would it be? I really hope you enjoy the show.
James Schramko is the founder of the multimillion-dollar business success, SuperFastBussiness.com. He lives in Sydney Australia and surfs every day. He helps information marketers and service business owners build highly powerful, recurring subscription businesses, so they can work less and profit more.
His real world experience running multimillion-dollar businesses, uniquely positions him as a high level problem-solver of rare calibre. Teams, systems, cash-flow, traffic and leverage are terms James understands better than most. He’s captured all his wisdom into a book, says what it does on the tin, much like James, called Work Less, Make More, which I highly recommend.
So, tell me about your business money, James. You sound like you’ve always had an awareness of money, mainly, you know, from your grandparents and your parents and then, obviously, your parents going through that experience where they lost their money, must have woken you up even further. Have you always been good with money and managing it? Well you’ve always been good at making it, obviously.
James: I have been fairly interested in that. You know, my parents having difficulty taught me about mortgages and loans and car leases and debt collection, taught me a lot about mismanagement of money. People have a tendency to buy things they can’t afford, especially even culturally. Like, whole countries have a completely strange mindset about living beyond your means.
There’s things that fuel that, like, I think in the United States, for example, the government gives you a tax deduction for your own home mortgage. Meaning people borrow more because of the tax deduction. You should never borrow because of a tax deduction. You borrow because you have to borrow and the tax deduction’s like a bonus.
Where I’m at now is, I have no debt, I’ve been debt-free for five years. I don’t like borrowing money for anything. I like to have cash reserves sitting in a bank account, makes me feel more comfortable, which means that it’s one of the most important things possible, and it’s something that, when I talk about it, you might resonate with.
It removes desperation. There’s nothing more cheesy and janky than a desperate marketer who needs money. Because they start to forget about the customer and they’re thinking only about themselves and you can smell it and feel it, and it’s just sleazy.
If you can be debt-free, if you can be in a position where you don’t have any compromise, financially, then it allows you to operate more in an organic and impactful way, I think. It comes through in everything that you do. You’re never desperate, lazy, you’re just doing things because it’s the right thing to do.
Nicola: It makes decision-making a whole lot easier, that’s for sure. One of the things I learnt from going bust, is that how little you can actually live on. I determined, when I was in that place, that when I started, when, not if, ’cause I knew I was going to start making real money again, I would never load myself up with debt again because it was just–
James: It’s–Crippling. There’s some interesting ideas from books like The Four Hour Work Week, for example. However, they kind of really only apply to young guys with no kids, it’s not a very realistic thing that, you know, if you consider I was a family guy with four kids–
You had to live, you know, the average house price in Sydney is $850,000 as of last week, something like that. Our tax rate’s pretty much 50%. You’d need to make a lot of money to live as a family in Sydney. So, the best way to solve this is to make a lot more money.
If you want to make a lot of money, you just create a lot of value and get it in front of as many people as possible. That’s really the core of it.
Nicola: That’s great advice. Do you invest in anything else, apart from your business?
James: Nope. I just have, I have cash reserves in a couple of different currencies and I have my business. I don’t really need much else. I own my car, I own my surfboards and my furniture, and I’m happy not to be a share trader.
I do currency trades, because I take in a lot of income in different currencies and I have to convert, say, for example, a US Dollar to Australian Dollar conversion. That can fluctuate quite a lot, so I time it right. Like, I might make money when it’s one to one and then I’ll sell it when it drops to 85 to one.
It can be very beneficial to get the timing right. Then there’s lots of fine-tuning things that I learnt as a general manager. Like, here’s a really simple one, that almost nobody does, and that is as soon as you have a reasonable level of income, go to your fund provider, whether it’s PayPal or credit card merchant facility, and ask them for a better rate.
In my case, I was able to go from like, 2.7 or something like that, to 1.1 for PayPal. On a few million dollars a year, one and a half percent makes a big difference.
Nicola: You’ve been listening to Nicola Cairncross on The Money Gym podcast. If you’d like to find out more about The Money Gym and how we can help you become more financially intelligent, just come on over to themoneygym.com, we’ll see you over there.
If you want to get control, get out of debt, make more money then grow that money by becoming a confident investor, check out the amazing offer we are making around “The Money Gym” book today!