WEBVTT - Get The Right Money Mindset 0:00:01.230 --> 0:00:03.930 Hey, it's Kia, and welcome to the first episode of 0:00:03.930 --> 0:00:06.900 A Little Bit Richer. If you're here, you probably know 0:00:06.900 --> 0:00:09.090 the score. For the next few months, I'm going to 0:00:09.090 --> 0:00:12.209 be bringing you bite- sized financial tips. You know, the stuff that we 0:00:12.210 --> 0:00:14.160 never got taught at school. What comes out of my 0:00:14.160 --> 0:00:16.289 salary? How can I get my own place, or a 0:00:16.289 --> 0:00:18.389 bigger one? What do I need a bank account for? 0:00:18.719 --> 0:00:20.459 Okay, the last one is a bad joke, but you get 0:00:20.460 --> 0:00:23.729 the picture. We're all in this together. It's you, me, 0:00:23.790 --> 0:00:27.059 and a different guest each and every episode. Up first, 0:00:27.059 --> 0:00:28.980 I want to kick things off with Laura Ann Moore. 0:00:29.550 --> 0:00:33.030 Laura's a money and mindset coach. She's all about demystifying personal 0:00:33.030 --> 0:00:35.879 finance in a simple and judgment- free way. She also 0:00:35.879 --> 0:00:38.610 has our own podcast. My kind of woman. We're going 0:00:38.610 --> 0:00:41.010 to be chatting about why all this stuff is so important. 0:00:41.729 --> 0:00:47.639 Okay, let's get into it. So, Laura, it's really tough 0:00:47.639 --> 0:00:49.918 out there at the moment. Everything's going up in price 0:00:49.920 --> 0:00:52.709 and salaries just aren't keeping up. Everyone's stretched and it 0:00:52.709 --> 0:00:55.650 is stressful. Do you have any suggestions on how people 0:00:55.650 --> 0:00:56.670 can cope with this pressure? 0:00:56.730 --> 0:00:59.250 Yeah, I think first of all, I would say it's 0:00:59.250 --> 0:01:03.479 really important to identify where the stress is coming from. 0:01:03.480 --> 0:01:05.790 I think it's so easy to go into this panic of, " 0:01:06.270 --> 0:01:08.670 I feel overwhelmed, I feel anxious, I feel stressed," but 0:01:08.670 --> 0:01:11.639 sometimes we don't know where that feeling is coming from. 0:01:11.639 --> 0:01:13.589 So, the first thing I would say is really try 0:01:13.590 --> 0:01:17.310 to understand and identify it first, because it might be 0:01:17.310 --> 0:01:19.650 a practical thing, but it might also be an emotional 0:01:19.650 --> 0:01:24.839 thing. So, on a practical basis, I would say make 0:01:24.840 --> 0:01:27.660 a plan, make a tangible plan where you can say, " 0:01:27.660 --> 0:01:29.940 What is my next step?" Because it's that classic thing, 0:01:29.940 --> 0:01:32.220 isn't it? Where you go, " Oh my God, I need 0:01:32.220 --> 0:01:33.750 to kind of do everything in one go." And that's 0:01:33.750 --> 0:01:34.740 the overwhelming part. 0:01:34.740 --> 0:01:35.970 Yes, it's true. I do that all the time. All the time. 0:01:36.030 --> 0:01:38.670 Yeah, and it's so easy to do. So, actually going, " 0:01:39.059 --> 0:01:41.340 Where is my money at right now? What is one 0:01:41.340 --> 0:01:44.070 small step that I can take today with this week 0:01:44.250 --> 0:01:46.319 that I know that's going to alleviate a little bit 0:01:46.319 --> 0:01:48.810 of pressure?" It could literally be as simple as checking 0:01:48.810 --> 0:01:52.950 my bank account, making a better budget, paying someone that 0:01:52.950 --> 0:01:55.410 I owe, something little like that. And then on an 0:01:55.410 --> 0:01:59.159 emotional level, I would say really to ask yourself what 0:01:59.160 --> 0:02:00.600 stories you're telling yourself. 0:02:00.600 --> 0:02:01.620 It's a big one. 0:02:02.070 --> 0:02:04.170 It's a big one, because that's what we do. Our 0:02:04.170 --> 0:02:06.870 brains will tell ourselves stories about a situation. So, we 0:02:06.870 --> 0:02:09.660 might read something in the news that makes us scared, 0:02:09.840 --> 0:02:13.139 makes us feel overwhelmed, and then we tell ourselves we 0:02:13.139 --> 0:02:15.480 need to be worried, we're in a bad place, but 0:02:15.480 --> 0:02:17.999 actually, it's more your relationship with money or your money 0:02:18.000 --> 0:02:21.239 mindset that's causing you to feel that anxiety. So yeah, 0:02:21.240 --> 0:02:23.729 on an emotional level, really starting to just see how you're 0:02:23.730 --> 0:02:26.790 talking to yourself, see things that keep coming up, and 0:02:26.850 --> 0:02:30.090 identifying whether they're actually true or whether your brain is 0:02:30.090 --> 0:02:30.750 telling you a lie. 0:02:30.990 --> 0:02:33.240 I think that's a good one, Laura. I think sometimes we 0:02:33.240 --> 0:02:36.510 spin these narratives, like you said, that just aren't true. 0:02:36.719 --> 0:02:38.370 You can sit there and say, " I'm bad with money," 0:02:38.370 --> 0:02:40.499 and you're going to start believing that because you've said 0:02:40.500 --> 0:02:42.780 it. And I think it is just being aware and 0:02:42.780 --> 0:02:45.720 conscious of what we're telling ourselves and maybe what impact 0:02:46.020 --> 0:02:48.060 that has on how we view things, like you said. 0:02:48.750 --> 0:02:51.989 So, there's been some Legal & General research done recently that 0:02:51.990 --> 0:02:55.290 calls your 20s the lost decade, and that's because it's 0:02:55.290 --> 0:02:57.660 a key time to build money for the longer term, 0:02:58.109 --> 0:03:00.900 yet it's often not made use of. So, what are your 0:03:00.900 --> 0:03:03.269 top recommendations, Laura, for someone trying to make the most 0:03:03.270 --> 0:03:04.109 out of their money? 0:03:04.230 --> 0:03:06.330 I think when it comes to money, you want to 0:03:06.330 --> 0:03:08.970 think about the step before and really asking yourself, " Why 0:03:08.970 --> 0:03:11.250 do I want money? What role do I want money 0:03:11.250 --> 0:03:15.660 to play in my life?" So, first off, creating some 0:03:15.780 --> 0:03:19.169 goals. Financial goals, like, " I want to save X amount, 0:03:19.169 --> 0:03:22.139 I want to invest X amount," but also some life 0:03:22.139 --> 0:03:25.889 goals. What is the reason of you working and making 0:03:25.889 --> 0:03:28.530 money? So that you're not just chasing the money for 0:03:28.530 --> 0:03:30.660 money's sake, you're going, " I'm going to get the money 0:03:30.780 --> 0:03:32.879 so that I can travel, so that I can build a 0:03:32.880 --> 0:03:35.339 business, so that I can buy a farm and raise 0:03:35.340 --> 0:03:36.060 some ducks." I don't know. 0:03:37.560 --> 0:03:37.770 Whatever floats your boat. 0:03:38.400 --> 0:03:41.280 Yeah, whatever floats your boat, and really starting to connect 0:03:41.280 --> 0:03:45.599 with what your why is. So, creating these goals. Also, 0:03:45.960 --> 0:03:50.639 understanding what your values are. For me, three of my 0:03:50.639 --> 0:03:55.470 values are travel, education, and health. So, that really helps 0:03:55.470 --> 0:03:59.430 me when it comes to spending, saving and investing, because 0:03:59.430 --> 0:04:02.309 I can ask myself is the way that I'm managing 0:04:02.309 --> 0:04:04.950 and growing my money right now in alignment with my 0:04:04.950 --> 0:04:08.369 goals and with my values? And I think they're, on 0:04:08.370 --> 0:04:10.769 an emotional level, a really great way to start to make 0:04:10.770 --> 0:04:13.140 the most out of your money like the step before. 0:04:13.140 --> 0:04:15.540 Because I think people jump into trying to make the 0:04:15.540 --> 0:04:18.450 most of their money on a practical basis, and then 0:04:18.720 --> 0:04:21.150 you're like, " Why am I actually doing this?" and you 0:04:21.150 --> 0:04:24.178 don't have the motivation. So, I think understanding the motivation 0:04:24.178 --> 0:04:25.738 is key first. 0:04:25.770 --> 0:04:27.690 That is, like you said, you hit the nail on 0:04:27.690 --> 0:04:29.249 the head, that is a key one to keep you 0:04:29.250 --> 0:04:32.368 going. I think quite often you'll hear people say that 0:04:32.370 --> 0:04:34.950 they want to save, and there's no real target or 0:04:34.950 --> 0:04:38.370 reason. But when you have that reason, like you said, 0:04:38.370 --> 0:04:40.109 it could be to have your duck farm, it could 0:04:40.110 --> 0:04:42.149 be to travel and see the world, whatever that reason 0:04:42.150 --> 0:04:46.080 is, it helps you. So when things maybe aren't as 0:04:46.139 --> 0:04:48.660 fun or things just feel a little bit hard, you 0:04:48.660 --> 0:04:50.400 can always circle back to that and say, " Right, I 0:04:50.400 --> 0:04:51.900 know why I'm here. I know why I'm doing this 0:04:51.900 --> 0:04:54.180 for my finances, or I know why I'm working." Like you said, 0:04:54.360 --> 0:04:56.159 to keep you on track, because that was often the hard bit. 0:04:56.250 --> 0:04:59.879 Yeah. Like I recently released an episode on my podcast 0:04:59.880 --> 0:05:02.609 about achieving my big happy goal, because I've been running 0:05:02.610 --> 0:05:06.000 my business and I've been keeping the business afloat, but 0:05:06.000 --> 0:05:08.010 I'm like, " What do I actually want this money for?" 0:05:08.010 --> 0:05:10.650 And then when I tapped in, connected with myself, I 0:05:10.650 --> 0:05:13.320 was like, " I do really want to travel more." So, 0:05:13.320 --> 0:05:15.449 now that's kind of like my north star, and it 0:05:15.450 --> 0:05:17.849 might be for the next five years maybe, and it's 0:05:17.849 --> 0:05:21.089 given me the motivation to rejig the way that I'm 0:05:21.089 --> 0:05:24.119 spending and saving. And like you say, when times get 0:05:24.119 --> 0:05:26.310 hard and maybe you do have to cut back for 0:05:26.310 --> 0:05:28.409 a short period of time or whatever that looks like, 0:05:28.560 --> 0:05:30.570 you actually know why you're doing it. So, it feels 0:05:30.570 --> 0:05:33.059 like it's coming from a place of your motivation is 0:05:33.059 --> 0:05:35.400 towards pleasure as opposed to away from pain. 0:05:35.428 --> 0:05:38.549 Yes. I love that, I love that. Laura, we're coming 0:05:38.549 --> 0:05:41.940 onto a big topic now always on people's minds, property. 0:05:42.690 --> 0:05:44.880 So, it feels like that everyone is currently in a 0:05:44.880 --> 0:05:46.740 race to buy their first home, especially when you're on social 0:05:46.740 --> 0:05:49.260 media. That's all we're kind of seeing right now, and 0:05:49.260 --> 0:05:52.410 it is so easy to compare yourself to everyone else's 0:05:52.410 --> 0:05:55.469 journey. So, do you have any advice for our listeners 0:05:55.500 --> 0:05:58.649 who are wondering whether or not they should be saving 0:05:58.650 --> 0:05:59.489 for a deposit right now? 0:05:59.760 --> 0:06:01.860 I think the house deposit one is a really interesting 0:06:01.860 --> 0:06:05.820 topic, because there's so many stats out there that shows 0:06:06.480 --> 0:06:11.789 people or house prices versus wages now, there's such a 0:06:11.790 --> 0:06:15.000 bigger gap between it or a disparity between it versus 0:06:15.210 --> 0:06:18.570 20, 30, 40 years ago. Our parents and our grandparents, it was 0:06:18.570 --> 0:06:21.450 so easy for them to say, " I need financial security 0:06:21.450 --> 0:06:24.510 for the future. I'll buy a house." And it was 0:06:24.510 --> 0:06:27.630 so much more accessible. Whereas now, for young people, I 0:06:27.630 --> 0:06:30.149 think in general it's like the go- to, especially in 0:06:30.150 --> 0:06:32.099 the UK, is, " I should buy a house." So, what's 0:06:32.099 --> 0:06:35.250 happening is we have this generation of young people wanting 0:06:35.250 --> 0:06:38.370 to buy a house but not really knowing why or 0:06:38.370 --> 0:06:40.109 if that's something that they want. So, my first thing 0:06:40.110 --> 0:06:44.760 is always really understand what your why is. Do you 0:06:44.760 --> 0:06:48.000 really want to buy a house? What is your motivation 0:06:48.000 --> 0:06:50.669 there? Is it because all you've ever dreamed of is 0:06:50.849 --> 0:06:52.889 having a beautiful home that you can make your own, 0:06:52.889 --> 0:06:55.350 you can raise a family in, or are you just 0:06:55.350 --> 0:06:57.810 doing it because society tells you to do it, your 0:06:57.810 --> 0:06:59.790 parents are telling you to do, it's what your friends 0:06:59.790 --> 0:07:02.520 are doing? So, asking yourself if it's actually what you 0:07:02.520 --> 0:07:03.270 want first. 0:07:03.270 --> 0:07:03.870 Yes. 0:07:03.900 --> 0:07:04.380 Do you know what I mean? 0:07:04.740 --> 0:07:05.190 That's a big one, that's a big one. 0:07:05.191 --> 0:07:05.370 Yeah. 0:07:05.370 --> 0:07:09.120 I think it's a massive financial undertaking, and I don't 0:07:09.120 --> 0:07:10.830 think that should be minimized. I'm going to touch on 0:07:10.830 --> 0:07:14.880 property more in this podcast, but it's such a big 0:07:15.390 --> 0:07:18.570 thing to purchase. It's probably likely to be the biggest 0:07:18.570 --> 0:07:20.639 thing you'll purchase in your life, that you need to 0:07:20.639 --> 0:07:22.889 understand, like you said, why are you doing it? Are you 0:07:22.889 --> 0:07:25.049 doing it because you want a property or because everyone 0:07:25.049 --> 0:07:27.360 else is doing it? And I think once you understand 0:07:27.360 --> 0:07:29.549 that, then you can decide, is it for me, should 0:07:29.549 --> 0:07:30.089 I do it? Like you said. 0:07:30.089 --> 0:07:32.640 Yeah, exactly. And I think, so when you ask yourself, " 0:07:33.000 --> 0:07:36.090 Why is it I'm asking myself should I be saving 0:07:36.090 --> 0:07:38.040 for a house deposit?" I always think when the word 0:07:38.040 --> 0:07:40.950 should is in there, you've got to question what's going 0:07:40.950 --> 0:07:44.070 on. So, if that is how you feel, if you say, " 0:07:44.130 --> 0:07:45.990 The reason why I want to buy a house is 0:07:45.990 --> 0:07:50.430 financial security," maybe just ask yourself are there other more 0:07:50.430 --> 0:07:53.310 accessible ways that I can look to build wealth for 0:07:53.310 --> 0:07:57.119 the future that allow me to create that financial security 0:07:57.120 --> 0:07:59.580 and that wealth for the future that don't require me 0:07:59.580 --> 0:08:03.809 to save 30, 40, 50 grand for a house that maybe is 0:08:03.809 --> 0:08:06.119 going to take me however long to save, giving this 0:08:06.180 --> 0:08:08.760 anxiety around doing that? So, when you understand your why, 0:08:09.030 --> 0:08:11.790 that's definitely kind of key. Then I would also say 0:08:11.970 --> 0:08:15.030 it's okay to save for a house deposit and then 0:08:15.030 --> 0:08:16.801 you change your mind. Right? 0:08:16.801 --> 0:08:18.030 Yes, that's a big one as well. Yes. 0:08:18.030 --> 0:08:20.790 Because goals can change. When I was 19, I saved 0:08:20.820 --> 0:08:23.190 15 grand to go to drama school, and then at 0:08:23.190 --> 0:08:25.500 the very last minute, two weeks before I was due 0:08:25.500 --> 0:08:27.690 to start, I ended up going traveling, so that I 0:08:27.690 --> 0:08:30.300 had that money there saved, but the purpose of it 0:08:30.300 --> 0:08:32.760 completely changed. So, if you right now can't decide, you 0:08:32.760 --> 0:08:34.650 could go, " Okay, well, maybe I'll put a bit away. 0:08:35.040 --> 0:08:37.559 I'll start building that pot up." We're always going to 0:08:37.559 --> 0:08:40.350 need money for something, whatever that thing is, and if 0:08:40.350 --> 0:08:43.050 your life changes, your goals change, at least you have 0:08:43.260 --> 0:08:45.840 a nest egg that could be then maybe put into 0:08:45.840 --> 0:08:48.690 a lump sum for investing, or maybe you do something 0:08:48.690 --> 0:08:51.000 that's investing in yourself like travel, or whatever that looks 0:08:51.000 --> 0:08:53.820 like. So, it's like don't be afraid of putting money 0:08:53.820 --> 0:08:56.309 away for a goal that might change. 0:08:56.340 --> 0:08:56.910 Yes. 0:08:57.210 --> 0:08:58.889 And then the final one I think is speak to 0:08:58.889 --> 0:09:01.679 your friends or family that are homeowners, or people that 0:09:01.679 --> 0:09:04.410 have gone through the house buying process within the last 0:09:04.410 --> 0:09:04.860 few years. 0:09:04.860 --> 0:09:06.540 Yes. They will definitely give you the truths and the 0:09:06.540 --> 0:09:09.659 realities of that journey, and I think sometimes you need to hear that and say, "Is this something I 0:09:09.660 --> 0:09:12.211 want to undertake myself, or can I give it a pass for the minute?" 0:09:12.211 --> 0:09:14.820 Yeah. A lot of people that I've spoken to always 0:09:14.820 --> 0:09:17.400 say there are a lot of hidden costs. I haven't 0:09:17.400 --> 0:09:19.410 gone through the process myself. It's just from people that 0:09:19.410 --> 0:09:22.380 I've chatted with. And that's not to say, not everybody 0:09:22.380 --> 0:09:24.630 regrets it. Some people will say, " There's loads of hidden costs, 0:09:24.630 --> 0:09:26.488 but I wouldn't change it for the world," or, " There's 0:09:26.490 --> 0:09:28.679 loads of hidden costs, I wish I didn't do it." 0:09:28.860 --> 0:09:31.320 So, I think just chatting with people in your community, 0:09:31.440 --> 0:09:33.238 and if you don't have any friends or if you're 0:09:33.240 --> 0:09:35.340 the first one in your group that are maybe planning 0:09:35.340 --> 0:09:37.890 to buy a house, get online and have a look, 0:09:38.400 --> 0:09:42.090 socials, different pages, different forums, and try and find people 0:09:42.090 --> 0:09:44.069 in that community that can share that knowledge. 0:09:44.190 --> 0:09:46.978 I love that. Get informed, get informed. That can definitely 0:09:46.980 --> 0:09:50.490 help you. Right. So, I've got another Legal & General factoid 0:09:50.490 --> 0:09:52.619 for you. They're doing a lot of research into this 0:09:52.619 --> 0:09:54.929 thing called the Bank of Family, and it's the idea 0:09:54.929 --> 0:09:57.120 that if you don't have relatives helping you to get 0:09:57.120 --> 0:10:01.319 on a property ladder, it's very hard to achieve. Laura, 0:10:01.320 --> 0:10:03.270 does that reflect what you're currently seeing at the moment? 0:10:03.270 --> 0:10:06.299 A hundred percent. I think in my community of people 0:10:06.330 --> 0:10:09.149 who I chat with in the DMs, different clients and 0:10:09.150 --> 0:10:10.950 stuff like that, or people that I meet at events, 0:10:11.789 --> 0:10:14.069 there is definitely a large portion of people that I 0:10:14.070 --> 0:10:16.800 know have got on the property ladder because their parents 0:10:16.800 --> 0:10:19.380 have been able to pass down money in whatever form. 0:10:19.650 --> 0:10:22.829 But there's also a lot of people really aware that 0:10:22.830 --> 0:10:26.429 that is a privilege. Like people being like, " Oh, my 0:10:26.429 --> 0:10:28.828 mom and dad have helped me out here, but I'm 0:10:28.830 --> 0:10:31.080 really grateful for it." And I always say to them, don't 0:10:31.080 --> 0:10:33.210 feel guilty for it. If you are in that lucky 0:10:33.210 --> 0:10:36.510 position, absolutely grab it with both hands and go for 0:10:36.510 --> 0:10:38.910 it. But if you are someone who isn't in that 0:10:38.910 --> 0:10:42.300 position, that's like me, my parents couldn't pass down any 0:10:42.300 --> 0:10:44.940 money for a house, that's also okay, and that's where 0:10:44.940 --> 0:10:47.039 it's worth looking at other ways that you can start 0:10:47.039 --> 0:10:49.770 to build wealth. But yeah, I've definitely had a lot 0:10:49.770 --> 0:10:52.500 of conversations with people who say, " Yeah, probably a large 0:10:52.500 --> 0:10:54.990 portion of this money has come from not me." 0:10:55.200 --> 0:10:56.848 Yes, yes, it's true. And I think it is, like you 0:10:56.849 --> 0:11:00.089 said, it's acknowledging that, that if you have that help, it 0:11:00.090 --> 0:11:02.250 does make the journey a lot easier, and if you don't, 0:11:02.250 --> 0:11:03.540 it is going to be a lot harder. But I 0:11:03.540 --> 0:11:06.840 think once you understand that and you decide on that, 0:11:06.960 --> 0:11:09.360 that's a good process for you. Laura, we're getting into 0:11:09.360 --> 0:11:12.150 an exciting bit because I'm going to ask this question 0:11:12.150 --> 0:11:15.389 every single time, and you have the honor of being 0:11:15.389 --> 0:11:17.250 the first person to give your answer. 0:11:17.340 --> 0:11:17.608 Woo- hoo. 0:11:17.639 --> 0:11:19.978 So, Laura, what are your top three tips to help 0:11:19.980 --> 0:11:21.540 our listeners get a little bit richer? 0:11:21.960 --> 0:11:24.239 So, to get a little bit richer, tip number one 0:11:24.270 --> 0:11:27.420 is to improve your money mindset, your relationship with money. 0:11:27.420 --> 0:11:29.939 And the great thing about that is it's free, because 0:11:29.940 --> 0:11:32.070 you can just start by acknowledging, " How do I feel 0:11:32.070 --> 0:11:34.349 about money? How would I like to feel about money?" 0:11:34.349 --> 0:11:36.630 and start to change your language around it. So, that's 0:11:36.630 --> 0:11:39.689 tip number one. Tip number two is around money management 0:11:39.960 --> 0:11:44.309 and really getting to know your numbers. Really having a non- 0:11:44.309 --> 0:11:49.050 judgmental, unbiased approach towards your money and saying, " What's coming 0:11:49.050 --> 0:11:52.469 in, what's going out?" Because that's just data that can 0:11:52.469 --> 0:11:55.799 help you then make decisions. And then the third one 0:11:55.799 --> 0:11:58.679 is about, whilst it's important to enjoy your money in 0:11:58.679 --> 0:12:02.400 the now, starting now to invest and prepare for the 0:12:02.400 --> 0:12:04.860 future is going to make you a little bit richer. 0:12:04.980 --> 0:12:06.328 So, they're my top three tips. 0:12:06.390 --> 0:12:09.510 Laura, thank you so much for being the first guest 0:12:09.750 --> 0:12:11.940 on A Little Bit Richer. You've shared so many gems 0:12:12.179 --> 0:12:14.099 that are going to be so impactful to our audience. So, thank you 0:12:14.099 --> 0:12:14.699 so much. 0:12:14.700 --> 0:12:15.929 Thank you for having me. 0:12:17.429 --> 0:12:20.280 Laura was a great first guest, but there's lots more 0:12:20.280 --> 0:12:23.130 to come, so be sure to follow this podcast, tell 0:12:23.130 --> 0:12:25.200 all of your mates. I don't want to leave anyone 0:12:25.200 --> 0:12:28.110 behind here. Next episode, I'm going to be taking your payslip 0:12:28.110 --> 0:12:30.869 apart and making it all make sense. See you then.