1 00:00:05,320 --> 00:00:08,479 Speaker 1: From The Australian. Here's what's on the front. I'm Claire Harvey. 2 00:00:08,560 --> 00:00:15,320 Speaker 1: It's Friday, August one, twenty twenty five. Foreign agents want 3 00:00:15,360 --> 00:00:19,560 Speaker 1: Australia's secrets and it's costing US billions. Spy chief Mike 4 00:00:19,600 --> 00:00:23,400 Speaker 1: Burgess says espionage threats have hit an all time high 5 00:00:23,600 --> 00:00:26,360 Speaker 1: as foreign intelligence services try to get their hands on 6 00:00:26,440 --> 00:00:33,120 Speaker 1: the details of the orcust military Pact. The Vaticans Order 7 00:00:33,159 --> 00:00:36,880 Speaker 1: to General has revealed a four million dollar fraud inside 8 00:00:36,920 --> 00:00:40,879 Speaker 1: the Holy See. Liberal Maloney tells The Australian Today he 9 00:00:41,000 --> 00:00:43,080 Speaker 1: needs to get in front of Pope Leo as soon 10 00:00:43,120 --> 00:00:47,400 Speaker 1: as possible to share his concerns about alleged corruption of 11 00:00:47,440 --> 00:00:51,960 Speaker 1: the highest order. Those stories alive right now at the 12 00:00:52,040 --> 00:00:58,600 Speaker 1: Australian dot Com dot A Billionaires have secrets, and not 13 00:00:58,720 --> 00:01:02,320 Speaker 1: the kind you think. It's about exactly how they spend 14 00:01:02,360 --> 00:01:05,559 Speaker 1: their money, even once they have more money than God, 15 00:01:06,120 --> 00:01:08,480 Speaker 1: and what they do with any extra that comes in. 16 00:01:08,959 --> 00:01:12,520 Speaker 1: That's one of the insights from The Australian's new Wealth section. 17 00:01:13,000 --> 00:01:17,840 Speaker 1: It's packed with insights and yarns from our team of experts. Today, 18 00:01:18,000 --> 00:01:22,039 Speaker 1: Wealth editor Julianne Sprague reveals how the rich made their 19 00:01:22,120 --> 00:01:33,440 Speaker 1: millions and what she does with her money. Henry, what 20 00:01:33,480 --> 00:01:34,240 Speaker 1: does that stand for? 21 00:01:35,080 --> 00:01:37,120 Speaker 2: Hi erna? Not rich yet? 22 00:01:39,800 --> 00:01:43,319 Speaker 1: This is Julianne Sprague. She's Wealth editor here at The Australian, 23 00:01:43,480 --> 00:01:46,479 Speaker 1: and she's spent a career reporting on how the rich 24 00:01:46,640 --> 00:01:49,840 Speaker 1: make their money and what the rest of us probably 25 00:01:49,920 --> 00:01:50,600 Speaker 1: aren't doing. 26 00:01:52,880 --> 00:01:55,600 Speaker 2: And this is where you're sort of building your career. 27 00:01:56,000 --> 00:02:00,480 Speaker 2: Your a few job promotions, in salaries, going up, earning 28 00:02:00,920 --> 00:02:04,559 Speaker 2: solid money. You're out of your university days. Do you remember, Claire, 29 00:02:04,720 --> 00:02:07,480 Speaker 2: when you just you could exist of twenty centsuls? 30 00:02:07,640 --> 00:02:10,000 Speaker 1: I just I ate a lot of two minute noodles. 31 00:02:11,440 --> 00:02:13,920 Speaker 2: I remember having to buy. I bought a can of 32 00:02:14,160 --> 00:02:16,720 Speaker 2: soup and a baguette. This is when I was living 33 00:02:16,720 --> 00:02:18,880 Speaker 2: in London. But I could make that stretch for two meals, 34 00:02:19,320 --> 00:02:21,480 Speaker 2: like a can of soup, half a bit of bread. 35 00:02:22,240 --> 00:02:24,000 Speaker 2: And so this is the problem, right, The more you earn, 36 00:02:24,040 --> 00:02:24,680 Speaker 2: the more you spent. 37 00:02:26,880 --> 00:02:30,480 Speaker 1: Julian's all over the acronyms that tell us how Australians 38 00:02:30,480 --> 00:02:36,120 Speaker 1: are feeling about their money right now. Like Emily spelled Emili, 39 00:02:36,560 --> 00:02:39,840 Speaker 1: it's short for everyday millionaire and they are estimated to 40 00:02:39,840 --> 00:02:42,160 Speaker 1: be about two million off the MI in Australia people 41 00:02:42,160 --> 00:02:44,639 Speaker 1: who are worth a million and the average wealth of 42 00:02:44,680 --> 00:02:48,680 Speaker 1: an Australian adult is eight hundred thousand. But let's be honest, 43 00:02:48,960 --> 00:02:50,880 Speaker 1: not many of us feel rich. 44 00:02:52,680 --> 00:02:55,120 Speaker 2: It used to be if you were a millionaire, it 45 00:02:55,240 --> 00:02:56,919 Speaker 2: used to be that term you threw around to say 46 00:02:56,919 --> 00:02:59,399 Speaker 2: that you were really rich. You're a millionaire as they're 47 00:02:59,400 --> 00:03:02,320 Speaker 2: splashing around. It's fancy cars and you're living the high life. 48 00:03:02,760 --> 00:03:04,800 Speaker 2: Whereas now a lot of people are millionaires and you 49 00:03:04,840 --> 00:03:06,960 Speaker 2: don't feel like you're living the high life. Actually it 50 00:03:07,000 --> 00:03:10,000 Speaker 2: feels like you're doing it really tough to try and 51 00:03:10,000 --> 00:03:12,000 Speaker 2: make ends meet. And so the reason that more of 52 00:03:12,080 --> 00:03:15,920 Speaker 2: us are Emily's everyday millionaires is because property prices are 53 00:03:15,960 --> 00:03:18,280 Speaker 2: so high and we have an overwhelming amount of wealth 54 00:03:18,760 --> 00:03:21,400 Speaker 2: tied up in either the family home or maybe it's 55 00:03:21,400 --> 00:03:24,000 Speaker 2: investment properties. So it's at our old cash as an 56 00:03:24,120 --> 00:03:25,959 Speaker 2: asset rich cash poor. 57 00:03:28,639 --> 00:03:31,960 Speaker 1: A good example is Joey Croke. He's twenty six and 58 00:03:32,080 --> 00:03:37,440 Speaker 1: has seven investment properties. His stories in the Wealth section today. 59 00:03:39,640 --> 00:03:41,840 Speaker 2: And his journey is really interesting because it started with 60 00:03:42,000 --> 00:03:45,320 Speaker 2: a loss. He actually started doing share market investing in 61 00:03:45,360 --> 00:03:47,840 Speaker 2: his teen years, which I don't know about you clever 62 00:03:47,960 --> 00:03:50,720 Speaker 2: as a teenager. I was not thinking about the share market, 63 00:03:51,000 --> 00:03:53,000 Speaker 2: but he sort of dabbled. He bought some different stocks 64 00:03:53,000 --> 00:03:55,960 Speaker 2: and then things went terribly wrong. His stockbroker went bust 65 00:03:56,000 --> 00:03:57,680 Speaker 2: or actually lost quite a bit of money that would 66 00:03:57,680 --> 00:04:01,200 Speaker 2: have probably sent me packing. He decided to save up 67 00:04:01,280 --> 00:04:03,560 Speaker 2: quite a bit more money. He saved money for his 68 00:04:03,600 --> 00:04:06,520 Speaker 2: first deposit. Eventually got money back from this broker, so 69 00:04:07,240 --> 00:04:09,720 Speaker 2: it didn't all go up in smoke, but around fifty 70 00:04:09,720 --> 00:04:12,520 Speaker 2: grand did bought his first property and then got equity, 71 00:04:12,600 --> 00:04:14,400 Speaker 2: and then decided this is what he wanted to do. 72 00:04:14,480 --> 00:04:17,280 Speaker 2: And so he's built the portfolio by looking at regional property. 73 00:04:17,320 --> 00:04:19,080 Speaker 2: So he hasn't decided that he wants to be in 74 00:04:19,440 --> 00:04:21,920 Speaker 2: a Sydney and spend two million dollars on our house. 75 00:04:22,240 --> 00:04:24,039 Speaker 2: So he does make the point that he's driving a 76 00:04:24,040 --> 00:04:27,240 Speaker 2: pretty old beat up car. His friend's going to music festivals. 77 00:04:27,279 --> 00:04:29,600 Speaker 2: He has said no to different things. He really has 78 00:04:29,640 --> 00:04:32,760 Speaker 2: sort of knuckled down to do this. It's pretty inspiring. 79 00:04:35,279 --> 00:04:38,800 Speaker 1: You went and asked some of Australia's most wealthy people 80 00:04:39,040 --> 00:04:41,240 Speaker 1: how they did it and what their advice would be 81 00:04:41,279 --> 00:04:44,120 Speaker 1: for other people, and I was intrigued that their advice 82 00:04:44,279 --> 00:04:46,479 Speaker 1: was kind of the stuff that my grandma was telling 83 00:04:46,480 --> 00:04:48,160 Speaker 1: me back when I was at UNI, although I don't 84 00:04:48,160 --> 00:04:48,960 Speaker 1: think I was listening. 85 00:04:49,520 --> 00:04:51,599 Speaker 2: I was thinking about different stories that might be good 86 00:04:51,600 --> 00:04:53,800 Speaker 2: to do when we launched this new section, and I thought, well, 87 00:04:53,880 --> 00:04:57,600 Speaker 2: I know rich listers very well and I really appreciate 88 00:04:57,640 --> 00:05:00,960 Speaker 2: their insights. Sometimes billionaires can think little bit differently, and 89 00:05:01,000 --> 00:05:02,760 Speaker 2: I was thinking, well, they're rich for a reason. And 90 00:05:02,800 --> 00:05:05,159 Speaker 2: then I think, on about the fourth interview, I was 91 00:05:05,200 --> 00:05:08,760 Speaker 2: just thinking, this is absolutely blowing my line, the simplicity 92 00:05:08,800 --> 00:05:13,839 Speaker 2: of it, but also how similar it was. I was 93 00:05:14,760 --> 00:05:18,640 Speaker 2: probably thinking there'd be some profound investment strategy. But I 94 00:05:18,680 --> 00:05:21,920 Speaker 2: spoke to a well known property developer. He was north 95 00:05:21,920 --> 00:05:25,440 Speaker 2: of five hundred million dollars, Nigel Sadley, and he just says, Julianne, 96 00:05:25,560 --> 00:05:27,919 Speaker 2: it's simple. You do a budget. And I said, okay, okay, 97 00:05:27,920 --> 00:05:30,320 Speaker 2: but I'm talking about like us Mere mortals. What can 98 00:05:30,360 --> 00:05:32,200 Speaker 2: we be doing? What did you do in the early days. 99 00:05:32,560 --> 00:05:34,560 Speaker 2: It's like budget. You have to know what's coming in 100 00:05:34,600 --> 00:05:36,960 Speaker 2: and what's coming out. And I still do it. And 101 00:05:36,960 --> 00:05:39,279 Speaker 2: then Tony Walls, who's a billionaire in control of a 102 00:05:39,279 --> 00:05:42,919 Speaker 2: software company called Objective Corp, told me that he reports 103 00:05:42,960 --> 00:05:46,919 Speaker 2: to himself monthly he has his budgets, and he hasn't 104 00:05:46,960 --> 00:05:49,640 Speaker 2: said and he reports back to himself. And I did 105 00:05:49,760 --> 00:05:51,760 Speaker 2: want to know what happens if he misses budgets. Is 106 00:05:51,800 --> 00:05:54,520 Speaker 2: there a big stern discussion, what does he call himself? 107 00:05:57,120 --> 00:05:59,360 Speaker 2: And then one after another they all sort of said 108 00:05:59,400 --> 00:06:01,720 Speaker 2: this is what they they do. I think sometimes what 109 00:06:01,760 --> 00:06:04,680 Speaker 2: it is it's simple, But often we don't do the 110 00:06:04,720 --> 00:06:09,120 Speaker 2: simple things. We know we should have more fritten vegetables 111 00:06:09,120 --> 00:06:12,440 Speaker 2: in our diet, we know we should exercise more, and 112 00:06:12,480 --> 00:06:16,640 Speaker 2: I think with finances it's probably a bit similar. There's 113 00:06:16,720 --> 00:06:20,440 Speaker 2: actually no sort of silver bullet or some sort of 114 00:06:20,440 --> 00:06:24,880 Speaker 2: magic strategy. There's actually the simple things. 115 00:06:26,080 --> 00:06:28,039 Speaker 1: Something else the rich people have been telling you in 116 00:06:28,080 --> 00:06:30,919 Speaker 1: the first stories in our well section is about what 117 00:06:30,960 --> 00:06:33,200 Speaker 1: they would do if they had fifty thousand dollars now 118 00:06:33,240 --> 00:06:35,000 Speaker 1: and they were just starting out, And a couple of 119 00:06:35,000 --> 00:06:37,440 Speaker 1: them have said, I'd go and invest in property. But 120 00:06:37,680 --> 00:06:40,440 Speaker 1: the thing that struck me about both that and about 121 00:06:40,480 --> 00:06:42,839 Speaker 1: their suggestion about doing a budget is that I think 122 00:06:42,920 --> 00:06:45,320 Speaker 1: there are lots of people who are doing a budget. 123 00:06:45,360 --> 00:06:47,920 Speaker 1: They're very careful about what they spend. They might have 124 00:06:47,960 --> 00:06:50,640 Speaker 1: fifty thousand dollars saved up but they can't get into 125 00:06:50,680 --> 00:06:54,080 Speaker 1: the property market. So you're covering wealth, and you've been 126 00:06:54,080 --> 00:06:56,200 Speaker 1: covering it for a long time, but now is a 127 00:06:56,200 --> 00:07:00,080 Speaker 1: moment when times are really tough. It is really hard 128 00:07:00,120 --> 00:07:03,480 Speaker 1: to get ahead. Do you hear that frustration in the 129 00:07:03,560 --> 00:07:05,760 Speaker 1: kind of ordinary people who you talk to about money, 130 00:07:06,320 --> 00:07:07,640 Speaker 1: your friends down at the shops. 131 00:07:08,320 --> 00:07:11,920 Speaker 2: Definitely, But it does feel incredibly challenging. It feels almost 132 00:07:11,960 --> 00:07:15,920 Speaker 2: out of reach, and some of this investing narrative feels 133 00:07:15,920 --> 00:07:18,800 Speaker 2: almost intimidating. I think the point they're making those if 134 00:07:18,800 --> 00:07:21,680 Speaker 2: you've got fifty thousand dollars, find your way into the 135 00:07:21,720 --> 00:07:24,480 Speaker 2: market somewhere, so maybe that is an apartment. You don't 136 00:07:24,760 --> 00:07:26,680 Speaker 2: have to be investing where you want to end up, 137 00:07:26,760 --> 00:07:30,160 Speaker 2: so start smaller, and they make the point that you've 138 00:07:30,200 --> 00:07:33,040 Speaker 2: got to get started. So I think the issue is 139 00:07:33,040 --> 00:07:35,080 Speaker 2: that you can sometimes procrastinate or you wait for markets 140 00:07:35,080 --> 00:07:38,120 Speaker 2: to turn you just keep waiting. So their view is 141 00:07:38,680 --> 00:07:40,520 Speaker 2: you get in and you do the best you can 142 00:07:40,560 --> 00:07:42,840 Speaker 2: with where you can get in, and you let the 143 00:07:42,880 --> 00:07:45,160 Speaker 2: benefit of time help you. It was shawn by a 144 00:07:45,200 --> 00:07:47,480 Speaker 2: from the Precision Group who makes the point that sometimes 145 00:07:47,480 --> 00:07:49,080 Speaker 2: people wait for things to be perfect, or they have 146 00:07:49,120 --> 00:07:51,960 Speaker 2: an idea or you're waiting when sometimes the best plans 147 00:07:52,160 --> 00:07:54,200 Speaker 2: don't necessarily have to be the perfect ones. You just 148 00:07:54,240 --> 00:07:57,320 Speaker 2: have to start doing something. 149 00:07:58,080 --> 00:08:01,080 Speaker 1: Coming up. So how does Juliet and spend and save 150 00:08:01,280 --> 00:08:05,040 Speaker 1: her money? This is just a taste of The Australian's 151 00:08:05,160 --> 00:08:07,960 Speaker 1: new wealth offering. Check it out at the Australian dot 152 00:08:08,000 --> 00:08:12,000 Speaker 1: com dot auslash wealth and we'll be back after the break. 153 00:08:17,360 --> 00:08:19,760 Speaker 1: What have you learned in your career as a wealth 154 00:08:19,800 --> 00:08:21,880 Speaker 1: journal that you applied in your own life? 155 00:08:22,080 --> 00:08:23,840 Speaker 2: Is this the part where I tell you that I'm 156 00:08:23,880 --> 00:08:27,400 Speaker 2: the mechanic with the broken down car and the plumber 157 00:08:27,440 --> 00:08:33,520 Speaker 2: with the leaky pipe. The problem with being a journalist 158 00:08:33,960 --> 00:08:35,840 Speaker 2: is you can get a little overly cautious because for 159 00:08:35,880 --> 00:08:38,200 Speaker 2: every rich listor you write about, you're also writing about 160 00:08:38,200 --> 00:08:40,960 Speaker 2: people who have blown themselves up or stocks that have 161 00:08:41,240 --> 00:08:43,240 Speaker 2: plummeted back down to earth, and that it can make 162 00:08:43,280 --> 00:08:45,520 Speaker 2: you a little bit cautious. But there are things that 163 00:08:45,559 --> 00:08:47,800 Speaker 2: I have definitely learned, and it has been mostly from 164 00:08:47,880 --> 00:08:50,080 Speaker 2: those entrepreneurs or people who really just get out there 165 00:08:50,080 --> 00:08:52,280 Speaker 2: and they just kick these goals. But it goes back 166 00:08:52,320 --> 00:08:54,680 Speaker 2: to that earlier point I was making that they often 167 00:08:54,720 --> 00:08:58,880 Speaker 2: do the things that aren't sexy and exciting. So when 168 00:08:58,920 --> 00:09:00,960 Speaker 2: you think about budgeting, appreciate you say that a lot 169 00:09:00,960 --> 00:09:03,360 Speaker 2: lot of people will be running a household budget. But 170 00:09:03,440 --> 00:09:05,320 Speaker 2: I think that they do it to a granular detail, 171 00:09:05,320 --> 00:09:07,240 Speaker 2: and I think that they do it no matter what. 172 00:09:07,600 --> 00:09:10,199 Speaker 2: They don't let life get in the way. They also 173 00:09:10,240 --> 00:09:12,800 Speaker 2: take some risk. I will point that out. It's not 174 00:09:12,920 --> 00:09:16,920 Speaker 2: silly risk. They're curious, they read, they're educated enough, but 175 00:09:16,960 --> 00:09:21,320 Speaker 2: they also just take the pump. They do, put themselves 176 00:09:21,360 --> 00:09:23,200 Speaker 2: out there, and they let their money go work for them. 177 00:09:23,480 --> 00:09:25,120 Speaker 2: Which is why I'm not a richly stuck clare because 178 00:09:25,120 --> 00:09:27,280 Speaker 2: I've done one of those things. 179 00:09:27,640 --> 00:09:30,040 Speaker 1: Well, we're much better off having you writing about them 180 00:09:30,120 --> 00:09:32,240 Speaker 1: rather than being one of them, Jazz, because you're really 181 00:09:32,280 --> 00:09:32,720 Speaker 1: good at it. 182 00:09:33,200 --> 00:09:36,520 Speaker 2: We want to help more people feel more financially secure, 183 00:09:36,559 --> 00:09:39,679 Speaker 2: get a bit more financially independent. So you might have 184 00:09:39,800 --> 00:09:42,520 Speaker 2: your assets in property, but what else should you be 185 00:09:42,559 --> 00:09:45,640 Speaker 2: looking at. Should you diversify your investments, should you be 186 00:09:45,679 --> 00:09:49,240 Speaker 2: looking at share portfolios. Maybe you want to have another 187 00:09:49,440 --> 00:09:51,120 Speaker 2: investment property, or you want to work out how the 188 00:09:51,240 --> 00:09:53,600 Speaker 2: joey Croaks of the world can have seven and make 189 00:09:53,679 --> 00:09:55,920 Speaker 2: it work. So we're doing a lot of work in 190 00:09:55,920 --> 00:09:58,040 Speaker 2: this new vertical to try and give people the information 191 00:09:58,160 --> 00:10:00,560 Speaker 2: so you can make more confident decisions. I would say 192 00:10:01,000 --> 00:10:02,040 Speaker 2: just get on top of it. 193 00:10:03,679 --> 00:10:09,520 Speaker 1: Julian Sprague is The Australian's Wealth editor. You can check 194 00:10:09,520 --> 00:10:12,880 Speaker 1: out the section anytime at the Australian dot com dot 195 00:10:12,880 --> 00:10:14,600 Speaker 1: a U slash Wealth