WEBVTT - Are you making money too complicated? 0:00:01.720 --> 0:00:03.920 Welcome to How Do They Afford That, The podcast that 0:00:03.960 --> 0:00:07.280 peaks into the financial lives of everyday Australians. I'm Michael Thompson. 0:00:07.320 --> 0:00:09.039 I'm an author and the co host of the business 0:00:09.080 --> 0:00:11.520 news podcast Fear and Greed. As always, I'm in the 0:00:11.520 --> 0:00:14.560 studio with Canna Campbell, financial planner and founder of Sugar 0:00:14.640 --> 0:00:20.160 Mama TV, the financial literacy platform covering YouTube, podcast, books, Instagram, threads, 0:00:20.200 --> 0:00:23.680 TikTok and more. Hello, Canna, how are you? I'm excited. 0:00:24.120 --> 0:00:25.840 I'm glad you're excited. 0:00:25.600 --> 0:00:27.200 And you look excited too, because we. 0:00:27.160 --> 0:00:29.240 Have very intuit of you to pick that up. 0:00:29.320 --> 0:00:30.760 We have some exciting news. 0:00:30.640 --> 0:00:31.360 Very exciting news. 0:00:31.360 --> 0:00:32.760 Shold we start with our exciting news? 0:00:32.880 --> 0:00:33.599 Yes, that's share it. 0:00:33.680 --> 0:00:36.159 Okay. We have written a book. 0:00:36.440 --> 0:00:40.519 It's really good, it's really helpful, and it's really practical exactly. 0:00:40.560 --> 0:00:43.559 It is called twelve Months to Financial Freedom and it 0:00:43.640 --> 0:00:47.680 is basically about taking control of your money one month 0:00:47.880 --> 0:00:48.440 at a time. 0:00:48.760 --> 0:00:51.080 We share with you everything you need to know and understand, 0:00:51.159 --> 0:00:54.200 but more importantly do to get started. And it's actually 0:00:54.280 --> 0:00:55.760 a bit of a good laugh along the way. 0:00:56.040 --> 0:00:58.120 I like to think so kind of like this podcast, right, 0:00:58.160 --> 0:00:59.680 it's usually just you and me kind of making fun 0:00:59.720 --> 0:01:03.560 of each But the book is coming out on September one. 0:01:03.640 --> 0:01:06.400 You'll be able to see it in bookshops and pick 0:01:06.480 --> 0:01:09.280 up a copy all over the place from September one, 0:01:09.640 --> 0:01:12.839 but you can pre order it from now. 0:01:13.319 --> 0:01:15.920 And we really think you should invest in this book 0:01:16.000 --> 0:01:16.319 right now. 0:01:16.640 --> 0:01:19.240 Yeah. I mean, we don't do investment advice, but we 0:01:19.280 --> 0:01:20.000 can certainly do. 0:01:20.600 --> 0:01:23.679 Call this investment advice. You will not regret this, and. 0:01:23.640 --> 0:01:25.040 So we'll put a link in the show notes. The 0:01:25.040 --> 0:01:28.200 book is called twelve Months to Financial Freedom. It is 0:01:28.240 --> 0:01:31.560 coming out from Alan and Unwen and September one is 0:01:31.600 --> 0:01:34.119 the day, but it is available for pre order from now. 0:01:34.200 --> 0:01:37.720 And look, pre orders really really matter. They are very 0:01:37.840 --> 0:01:40.320 very important for a publisher and for us. So if 0:01:40.360 --> 0:01:42.720 you are thinking about getting on board with us with 0:01:42.840 --> 0:01:46.280 this book, just do it. I like that you might 0:01:46.319 --> 0:01:48.920 have pinched that from Nike. I suspect, but we'll make 0:01:48.920 --> 0:01:52.400 a work anyway. On with the show. Today's episode, Canna 0:01:52.600 --> 0:01:54.840 is about something that kind of creeps up on a 0:01:54.880 --> 0:01:58.760 lot of people where you start with good intentions. You've 0:01:58.760 --> 0:02:01.160 got kind of a plan for bardgeting and saving and 0:02:01.200 --> 0:02:03.800 investing and all of that, and before you know it, 0:02:03.960 --> 0:02:06.360 you've got too many accounts, you've got too many apps, 0:02:06.360 --> 0:02:09.520 you've got too many systems in place. So today are 0:02:09.639 --> 0:02:12.680 we making money to complicate it? 0:02:12.960 --> 0:02:16.440 Yes, we just go straight to it. Yes, I see 0:02:16.480 --> 0:02:21.280 this all the time. And this then naturally leads to overwhelm, 0:02:21.760 --> 0:02:27.440 complete inconsistency, throwing the towel and giving up entirely, and 0:02:27.720 --> 0:02:31.920 losing a complete sense of clarity and direction, and a 0:02:32.120 --> 0:02:36.360 complete inability to actually see what progress you actually did 0:02:36.639 --> 0:02:38.920 make from getting started in the first place, and a 0:02:38.919 --> 0:02:41.880 complete lack and loss of motivation. It's the biggest block 0:02:42.360 --> 0:02:45.560 for so many people when it comes to fixing their 0:02:45.600 --> 0:02:46.959 money getting better with their money. 0:02:47.160 --> 0:02:49.480 Really, so why does it happen in the first place? 0:02:49.520 --> 0:02:51.680 Is it? Like I suggested at the start, that it 0:02:51.760 --> 0:02:54.840 is basically an attempt to optimize everything and try and 0:02:54.880 --> 0:02:59.359 take advantage of everything that's out there, and it's just overwhelming. 0:03:00.040 --> 0:03:02.720 It's trying to do everything at the same time and 0:03:02.960 --> 0:03:05.480 too many things at the same time. So, for example, 0:03:05.960 --> 0:03:09.160 trying to fix your budget and cash flow, try to 0:03:09.160 --> 0:03:13.040 optimize your super try to kick start your share portfolio 0:03:13.080 --> 0:03:15.280 and your online trading account, but also at the same 0:03:15.280 --> 0:03:17.200 time trying to say, for a deposit and get out 0:03:17.240 --> 0:03:19.359 of that old pesky credit card dead or buy now, 0:03:19.400 --> 0:03:21.720 pay later. You know, you've got so many different things 0:03:21.760 --> 0:03:26.079 going on and there is no ability to just focus. 0:03:26.680 --> 0:03:31.360 There is unrealistic expectations with the timeframe that you've got, 0:03:31.960 --> 0:03:36.880 and so the results are flaky and you feel really disencouraged. 0:03:37.680 --> 0:03:41.640 And we're forgetting that. Our brains really are wired to 0:03:41.680 --> 0:03:45.320 create something that is really simple and clear to follow. 0:03:45.760 --> 0:03:48.160 So when we've now made a rod for our own 0:03:48.200 --> 0:03:51.720 back by creating something far too complex, we avoid it 0:03:52.200 --> 0:03:53.960 and nothing actually ever happens. 0:03:54.680 --> 0:03:59.600 What's the point which it gets overwhelming? Is there a trigger? 0:04:00.200 --> 0:04:02.440 Is there a point where kind of more accounts and 0:04:02.480 --> 0:04:06.440 more systems and things, I actually start working against studios? 0:04:06.840 --> 0:04:09.120 And I'm asking this knowing that I have experienced this 0:04:09.200 --> 0:04:12.120 and we've talked about this in the past, where by 0:04:12.920 --> 0:04:16.240 in an attempt to implement what look, honestly, it worked 0:04:16.240 --> 0:04:18.599 so well to begin with. It was a budgeting system 0:04:18.600 --> 0:04:20.599 where I had a whole stack of different accounts and 0:04:20.600 --> 0:04:23.680 it was based on quarantining your money. How you're justifying it, well, 0:04:23.680 --> 0:04:25.600 it did work for a little. 0:04:25.360 --> 0:04:27.240 While until I showed you the light. 0:04:27.480 --> 0:04:30.560 Yeah, But in the end, there was. I think at 0:04:30.600 --> 0:04:34.520 its peak there was twenty six different bank accounts across 0:04:35.200 --> 0:04:41.000 four different banks, and it was so inefficient. Well yeah, 0:04:41.040 --> 0:04:44.400 I know, but at its heart it was a budgeting 0:04:44.440 --> 0:04:46.919 system that was I thought was going to work for 0:04:46.960 --> 0:04:49.960 me because it was moving like small amounts of money 0:04:50.440 --> 0:04:54.719 into these accounts every month or whenever I was being paid, 0:04:55.080 --> 0:04:58.320 so that all of a sudden that every single expense, 0:04:59.000 --> 0:05:02.120 all of the different issues, Lawrence's the car redgo all 0:05:02.120 --> 0:05:03.640 of these things were all being saved for. 0:05:04.600 --> 0:05:07.279 You had the right intention, Okay, I get it. 0:05:07.279 --> 0:05:11.400 It got overwhelming. Yes, it was too much to manage, 0:05:11.600 --> 0:05:14.560 and all of a sudden, one little thing would bring 0:05:14.600 --> 0:05:18.479 it all undone that there was something I hadn't budgeted for, 0:05:18.880 --> 0:05:20.839 and so you had to take money from one account 0:05:20.839 --> 0:05:22.240 to pay for that, which meant then that you had 0:05:22.240 --> 0:05:24.080 to take money from the next account to top that 0:05:24.160 --> 0:05:26.920 one back up. And it was just a complete and 0:05:27.080 --> 0:05:30.520 utter disaster. That was the point at which it all 0:05:30.520 --> 0:05:34.000 fell over, where I realized I've over complicated this. I'm 0:05:34.040 --> 0:05:36.799 assuming the threshold for over complicated is actually far below 0:05:36.839 --> 0:05:37.400 where I hit. 0:05:38.520 --> 0:05:42.200 Look like, my hat goes off to you for the 0:05:42.440 --> 0:05:45.719 perseverance in sticking to a very overwhelming complicated system that 0:05:45.720 --> 0:05:46.520 you build for yourself. 0:05:46.520 --> 0:05:47.159 But thank you. 0:05:47.240 --> 0:05:48.960 I what I would remind people do is come back 0:05:49.000 --> 0:05:52.280 to the simple philosophy of keep it simple. Stupid no, 0:05:52.839 --> 0:05:55.080 have simple systems in place, because when you have a 0:05:55.120 --> 0:05:57.520 simple system in place, it is easy to stick to 0:05:58.120 --> 0:06:00.680 over the long run, and you can not get started. 0:06:00.720 --> 0:06:02.480 You can stay on that path and start to actually 0:06:02.520 --> 0:06:05.520 see the results that you're looking for. You will have 0:06:05.560 --> 0:06:08.360 that sense of faith and confidence to actually see what's 0:06:08.360 --> 0:06:10.480 working and what's not and where you can tweak and change. 0:06:10.520 --> 0:06:14.240 So you know, we are making things so much harder 0:06:14.279 --> 0:06:18.080 than we actually really need. And money, really the end 0:06:18.080 --> 0:06:22.560 of the day, is just energy. It is not rocket science. 0:06:22.800 --> 0:06:27.160 It is really subtraction and addition. So as long as 0:06:27.160 --> 0:06:30.039 you can add up and subtract, that's the most complicated 0:06:30.080 --> 0:06:33.040 element of managing your money and your cash flow. So 0:06:33.120 --> 0:06:36.560 we do not need you know, multiple different apps logging 0:06:36.600 --> 0:06:39.240 in and out of screens. And that's where and this 0:06:39.279 --> 0:06:41.040 is what I flagged with you when we had had 0:06:41.040 --> 0:06:43.280 this conversation initially, you know, a couple of years ago. 0:06:43.440 --> 0:06:46.200 Is this is where the ball gets dropped very easily. 0:06:46.600 --> 0:06:49.680 You miss second account. You know, you don't have you 0:06:49.720 --> 0:06:52.000 can't keep track of it. A bill then gets paid laid, 0:06:52.000 --> 0:06:55.760 it can damage your credit rating or you know, or default. 0:06:56.120 --> 0:06:58.320 It's you want to have it so you can all 0:06:58.360 --> 0:07:00.680 eyes on. It's very clear, it's very simple and easy 0:07:00.680 --> 0:07:01.080 to follow. 0:07:01.279 --> 0:07:04.919 Those are the main impacts, right. The potential impact of 0:07:05.279 --> 0:07:10.080 complexity is that things conspiral, they can just get out 0:07:10.120 --> 0:07:14.640 of control. It is avoidance you start to don't you 0:07:14.640 --> 0:07:17.200 don't want to pay any attention to you your money 0:07:17.200 --> 0:07:19.400 because it's become too complicated for you. But you can 0:07:19.440 --> 0:07:21.200 also miss opportunities right. 0:07:21.560 --> 0:07:24.880 Exactly, and as I said, do damage and also not 0:07:24.920 --> 0:07:27.600 feel good about yourself. You don't. You know, we've got 0:07:27.600 --> 0:07:29.480 so many stresses and pressures on right now. The last 0:07:29.480 --> 0:07:31.320 thing you want to do is add something to our 0:07:31.800 --> 0:07:34.360 shoulders that we don't necessarily need to do because we 0:07:34.360 --> 0:07:36.320 always need to do. Is just strip it right back 0:07:36.360 --> 0:07:37.040 to the basics. 0:07:37.840 --> 0:07:40.600 Okay, if someone is listening to this right now and going, 0:07:41.600 --> 0:07:45.160 they might be describing me and my circumstances. What are 0:07:45.200 --> 0:07:49.600 the signs that someone's financial setup is too complex? I mean, 0:07:49.640 --> 0:07:52.960 there's obviously the big kind of the big redcounts flag 0:07:53.040 --> 0:07:55.440 of two dozen or more accounts. 0:07:55.760 --> 0:07:59.320 Look, there are lots of different signs, so too many apps, 0:08:00.480 --> 0:08:03.360 too many online share trading accounts. In particular, I see 0:08:03.360 --> 0:08:04.880 this with people who have, like, you know, three or 0:08:04.920 --> 0:08:11.840 four different micro investing accounts, too many budgeting systems, too 0:08:11.920 --> 0:08:15.480 many goals as well as another big one too. 0:08:15.520 --> 0:08:17.840 Before you go past that one, that's a really interesting 0:08:18.120 --> 0:08:20.880 one where you actually have too many financial goals because 0:08:20.880 --> 0:08:23.440 you think that that kind of the more goals the better, 0:08:23.520 --> 0:08:26.560 because it's all very positive, But you can actually dilute 0:08:26.560 --> 0:08:27.480 your focus exactly. 0:08:27.520 --> 0:08:31.200 You're spreading yourself far too thinly, and the results, you know, 0:08:31.360 --> 0:08:34.080 will demonstrate that and be reflected straight back to you. 0:08:34.160 --> 0:08:37.760 And you know, what I often coach people around their 0:08:37.760 --> 0:08:40.040 financial goals is to try and actually be really clever 0:08:40.200 --> 0:08:42.800 with their goals and make them goals that are quite 0:08:42.920 --> 0:08:46.840 concise and consolidated in a you know, sort of quite 0:08:46.880 --> 0:08:49.760 an artful way. But yes, if you have too many 0:08:49.800 --> 0:08:51.960 things going and there there isn't an order of priorities 0:08:52.000 --> 0:08:53.800 where you go, look, I want to have all these goals, 0:08:53.840 --> 0:08:55.440 and that's fine. I would never take that away from someone, 0:08:55.440 --> 0:08:57.560 but I'll say, look, why don't we just focus on 0:08:57.600 --> 0:09:00.880 the top three first and the decks there and get 0:09:00.880 --> 0:09:02.200 those out of the way and then move on to 0:09:02.240 --> 0:09:06.400 the next ones, rather than having this frantic scattergun approach 0:09:06.720 --> 0:09:11.760 where there isn't actually any meaningful impact or improvement in 0:09:11.800 --> 0:09:12.840 your finances. 0:09:13.320 --> 0:09:17.199 Okay, so we're looking at too many apps, too many accounts, 0:09:17.760 --> 0:09:20.240 too many share trading accounts. 0:09:19.920 --> 0:09:22.559 Even too many superinnuation accounts as well. 0:09:23.200 --> 0:09:26.960 That's a good point because I kind of feel like 0:09:27.080 --> 0:09:32.240 the consolidation campaign has been going for so long now 0:09:32.280 --> 0:09:37.200 that there's been so many, so many efforts by everyone 0:09:37.360 --> 0:09:41.200 really to tell people to look for your superannuation. You 0:09:41.320 --> 0:09:43.240 might have had an account started for you when you 0:09:43.240 --> 0:09:46.920 were eighteen, working kind of in a supermarket as a 0:09:46.920 --> 0:09:49.960 part time job, and now you're kind of forty and 0:09:50.000 --> 0:09:53.560 you're doing something else altogether, that superannuation account might still 0:09:53.600 --> 0:09:56.440 be sitting there. It feels like everyone knows now to 0:09:56.520 --> 0:09:59.760 go and check for lost super and to investigate whether 0:09:59.760 --> 0:10:01.840 it can solidating into one is right for you. But 0:10:01.880 --> 0:10:02.920 not everyone's done. 0:10:02.760 --> 0:10:05.000 It, I know, because they feel overwhelmed because they don't 0:10:05.000 --> 0:10:07.600 know how to necessarily or they think they've build it 0:10:07.679 --> 0:10:09.600 up into their head to be so much more complicated 0:10:09.679 --> 0:10:12.559 than what it really is, and literally you can jump online. 0:10:12.880 --> 0:10:15.280 You know, there's there's various government websites to help you 0:10:15.320 --> 0:10:17.480 do this very quickly by using your tax file number. 0:10:17.480 --> 0:10:19.520 And you know, to add to that other you know, 0:10:20.320 --> 0:10:24.400 I guess negative impact of having things over complicated is 0:10:24.440 --> 0:10:26.960 you're wasting money. Yeah, you know, you're wasting money on 0:10:27.080 --> 0:10:29.960 fees of those superannuation accounts. They're not you know, also 0:10:30.000 --> 0:10:33.040 the opportunity, like for having that money properly invested, because 0:10:33.040 --> 0:10:35.719 your money, your superannuation money, is an investment portfolio. 0:10:35.800 --> 0:10:37.760 All right, we are going to take a quick break 0:10:37.800 --> 0:10:39.720 on the other side. I want you to tell us 0:10:39.760 --> 0:10:42.800 what we actually need, the things that we can ignore, 0:10:43.240 --> 0:10:45.160 so that if you're listening and you go, okay, I've 0:10:45.160 --> 0:10:47.120 got this and this and this, what can I let 0:10:47.240 --> 0:10:50.000 go of? What do I need to keep in order 0:10:50.040 --> 0:10:54.640 to have a more simple, clean, efficient financial system Back 0:10:54.679 --> 0:11:03.320 in a moment Canada today, we are talking about over 0:11:03.400 --> 0:11:07.520 complicating money. And I suspect most of us will have 0:11:07.840 --> 0:11:10.680 done this at some point where you've got too many accounts, 0:11:10.679 --> 0:11:13.520 too many apps, too many systems, a budget that just 0:11:13.679 --> 0:11:17.320 is too complicated, too tricky, requiring a spreadsheet every time 0:11:17.360 --> 0:11:21.840 you need to update something. What are the core elements 0:11:22.280 --> 0:11:26.839 that we actually need. That if you're trying to simplify 0:11:26.920 --> 0:11:29.320 your finances, at the heart of it, what do you 0:11:29.360 --> 0:11:32.000 need and what can you just ignore all together? Doing 0:11:32.120 --> 0:11:36.120 very big, kind of flourishing, sweeping hand jess is just 0:11:36.160 --> 0:11:38.560 to say, get out of here. We don't need you anymore. 0:11:39.160 --> 0:11:42.000 So what I recommend you do is strip everything right 0:11:42.040 --> 0:11:45.120 back to the basics, but just try and think short term. 0:11:45.559 --> 0:11:48.440 When we start getting you know, thinking about well, what 0:11:48.480 --> 0:11:49.840 about how am I going to pay for this for 0:11:49.880 --> 0:11:51.280 the kids, or how am I going to you know, 0:11:51.760 --> 0:11:53.400 be able to help my family out with this, that 0:11:53.480 --> 0:11:55.360 you just think too long term, I think that's when 0:11:55.360 --> 0:11:57.439 we can also start to panic and get overwhelmed and 0:11:57.720 --> 0:11:59.400 you know, lose a sense of focus. So I would 0:11:59.400 --> 0:12:02.080 actually recommend you really just think about the short term stuff, 0:12:02.080 --> 0:12:04.439 So thinking about what you can do today, what you 0:12:04.480 --> 0:12:06.320 can do next week, and next month, and maybe even 0:12:06.400 --> 0:12:09.240 just think about the next three months. Then come back 0:12:09.280 --> 0:12:11.760 to just some simple goals as to where you feel 0:12:11.840 --> 0:12:14.760 most overwhelmed and what needs to be fixed as an 0:12:14.760 --> 0:12:17.320 immediate priority that's actually going to help you feel better. 0:12:17.720 --> 0:12:21.680 Now for most people, that's normally around the goal of 0:12:21.679 --> 0:12:24.240 Goby getting rid of some debt and sorting out their 0:12:24.280 --> 0:12:28.080 budget and cash flow systems. So sitting down and actually 0:12:28.280 --> 0:12:32.080 doing the work. They're looking at your transactions. We're not 0:12:32.120 --> 0:12:34.520 looking at completely fixing our finances for the rest of 0:12:34.559 --> 0:12:37.000 the year. We're actually just learning about how to actually 0:12:37.000 --> 0:12:39.319 fix our finances, perhaps for the short term, to get 0:12:39.400 --> 0:12:41.360 us through the next couple of weeks or the next 0:12:41.400 --> 0:12:44.000 couple of months. That is perfectly fine because you are 0:12:44.000 --> 0:12:46.600 getting started, and you can get so much clarity from 0:12:46.679 --> 0:12:49.000 just focusing on the short term stuff that then allows 0:12:49.000 --> 0:12:51.839 you to start to see more into the medium term 0:12:51.880 --> 0:12:53.480 and even long term as to how you need to 0:12:53.480 --> 0:12:57.160 tweak and change to manage your budget to obviously stay afloat, 0:12:57.880 --> 0:13:00.599 also strip it back and consult it. You've got to 0:13:00.640 --> 0:13:02.560 be very careful with consolidation. I don't want to just 0:13:02.600 --> 0:13:04.920 rush out everyone rushing out and consolidating everything, because there 0:13:04.920 --> 0:13:08.559 are consequences, Like with superannuation. You know there are expenses, 0:13:08.640 --> 0:13:11.120 there are fees. You might trigger capital gains tax or 0:13:11.160 --> 0:13:14.360 even crystallize losses. But start to get some clarity about 0:13:14.400 --> 0:13:18.320 what you actually want want your financial system, your financial 0:13:18.360 --> 0:13:22.480 machine to look like, so that you can actually understand 0:13:22.520 --> 0:13:25.120 where your money is, but also you're building the system 0:13:25.120 --> 0:13:26.880 behind it to actually be able to check in and 0:13:26.920 --> 0:13:30.000 on a regular basis. And that's where you know, I say, like, 0:13:30.640 --> 0:13:33.920 you don't need three different superannuation accounts. You really just 0:13:33.960 --> 0:13:36.360 need one so you can focus all your energy on that. 0:13:36.440 --> 0:13:38.280 So that's where you would go and get advice obviously 0:13:38.280 --> 0:13:41.520 from a financial planner and look at getting some strategic 0:13:41.800 --> 0:13:44.199 advice around the best way to consolidate it. But also 0:13:44.640 --> 0:13:47.320 which is going to be your main superannuation account, which 0:13:47.320 --> 0:13:49.400 of the three is the best one for you, that's 0:13:49.480 --> 0:13:52.640 most cost effective, that suits your needs, and you know 0:13:52.640 --> 0:13:56.040 your investing risk profile as well, and then don't have 0:13:56.280 --> 0:13:58.440 too many accounts. You want to be able to manage 0:13:58.440 --> 0:14:01.959 this on an ongoing basis. Yes, you know you should 0:14:01.960 --> 0:14:03.839 be able to, Like by gold rules, you've got to 0:14:03.840 --> 0:14:05.440 be able to look at it all within one screen. 0:14:06.240 --> 0:14:09.600 The moment you are logging in and out, that's where 0:14:09.600 --> 0:14:12.520 I get worried because that's where things get missed. Now, 0:14:12.559 --> 0:14:16.040 there are certain apps which we've spoken about before, that 0:14:16.080 --> 0:14:18.000 actually allow you to put it all on one screen. 0:14:18.040 --> 0:14:20.080 They sort of pull all the information from your bank 0:14:20.080 --> 0:14:22.760 accounts so you don't have to necessarily change banks. You 0:14:22.800 --> 0:14:24.760 can keep the different institutions, but you can see it 0:14:24.760 --> 0:14:27.200 on the one screen. That also can be very helpful 0:14:27.200 --> 0:14:29.680 because it obviously keeps a sense of clarity and then 0:14:29.720 --> 0:14:33.080 allows you to remain focused. But you've really got to 0:14:33.160 --> 0:14:37.920 have this this like cleanliness and this almost detox of 0:14:37.960 --> 0:14:41.320 the stuff that is distracting and getting in your way 0:14:41.360 --> 0:14:43.720 from progressing forward. And it does involve sort of sitting 0:14:43.760 --> 0:14:46.040 down and being honest with yourself and going where do 0:14:46.080 --> 0:14:49.400 I feel the biggest block in and what is actually 0:14:49.400 --> 0:14:51.240 going to make me feel so much better? You know? 0:14:51.680 --> 0:14:53.920 Is what do if I be in procrastinating for far 0:14:54.000 --> 0:14:56.760 too long? And the thing is, you know, this is 0:14:56.840 --> 0:14:59.240 the long DOPA main hit. When we finally do it, 0:15:00.400 --> 0:15:03.480 you actually feel really good about yourself and you do 0:15:03.560 --> 0:15:07.400 feel inspired to actually work on another area that you've 0:15:07.400 --> 0:15:10.360 been putting off, and you take greater care and pride 0:15:10.360 --> 0:15:11.640 in managing it going forward. 0:15:12.600 --> 0:15:17.120 Okay, if I was to summarize these, so we're looking 0:15:17.160 --> 0:15:23.480 at simple goals, A smaller number of simple short term 0:15:23.640 --> 0:15:29.520 achievable goals, A perhaps a more simple budget that looks 0:15:29.640 --> 0:15:34.840 directly at what you are actually spending rather than hypotheticals. Yes, 0:15:36.000 --> 0:15:39.600 one ideally super account, but get some advice from a 0:15:39.640 --> 0:15:45.840 financial planner on consolidating your accounts a smaller number of 0:15:46.000 --> 0:15:50.840 bank accounts, preferably just with one financial institution. 0:15:51.280 --> 0:15:53.360 Yes, and nicknamed as well, I should mention. 0:15:53.440 --> 0:15:55.720 Yeah, and so one might be the main account that 0:15:55.760 --> 0:15:58.720 your pay comes into, and then one for your longer term. 0:15:58.760 --> 0:16:00.600 I think we should do another reps on how to 0:16:00.600 --> 0:16:04.040 structure your bank accounts. It's going to make a quick 0:16:04.080 --> 0:16:06.560 note as we're talking. And so then you've got a 0:16:06.640 --> 0:16:11.520 small number of bank accounts attached to one bank and 0:16:11.560 --> 0:16:15.920 all of a sudden, and one share trading account potentially. 0:16:16.480 --> 0:16:20.720 One micro investing or not both one online share trading. 0:16:20.680 --> 0:16:24.240 Okay, And all of a sudden, you have got you 0:16:25.160 --> 0:16:26.240 removed the duplication. 0:16:26.560 --> 0:16:31.480 You've removed the noise, the distractions, the overwhelm. You know, 0:16:31.520 --> 0:16:33.360 we've brought it down to that principle of keep it 0:16:33.400 --> 0:16:34.080 simple stupid. 0:16:34.680 --> 0:16:37.520 Does it still feel like you have control? Though? This 0:16:37.600 --> 0:16:39.920 is the thing that I worry even more. 0:16:39.800 --> 0:16:43.200 So because you can actually see what's going on, You 0:16:43.240 --> 0:16:47.000 feel far more empowered. You have a great understanding of 0:16:47.120 --> 0:16:49.880 what you're actually achieving. You can actually finally see the 0:16:49.920 --> 0:16:52.960 progress because you're not adding up, looking at your savings, 0:16:53.000 --> 0:16:55.840 going on, barely making any progress. And it's because you've 0:16:55.880 --> 0:16:58.200 got twenty six different savings account. You've got it in 0:16:58.440 --> 0:17:00.480 one savings account. And you go, well, I went from 0:17:00.520 --> 0:17:02.960 being eighteen thousand dollars in savings, I've now got twenty 0:17:03.000 --> 0:17:05.959 three thousand dollars in savings. How does that make you 0:17:06.000 --> 0:17:08.359 feel pretty good? I want to keep this feeling. I'm 0:17:08.359 --> 0:17:10.040 getting a dopamine hit from it. I want to keep 0:17:10.040 --> 0:17:12.920 going and watch this build up. I will be more engaged. 0:17:12.920 --> 0:17:15.159 And because it's simpler now, you're going to stick to 0:17:15.200 --> 0:17:17.399 it in the long run. And you know, budgeting I 0:17:17.480 --> 0:17:20.040 always say, I'm going to sound like I'm contradicting myself 0:17:20.040 --> 0:17:21.840 a little bit here in this episode, but you know, 0:17:21.920 --> 0:17:24.280 budgeting does need to take consideration, you know, the next 0:17:24.280 --> 0:17:26.080 three hundred and sixty five days of your year. But 0:17:26.400 --> 0:17:29.040 this is how you get started. If you are stuck, 0:17:29.320 --> 0:17:33.000 you've got a block. You know, you are completely paralyzed 0:17:33.480 --> 0:17:36.480 by knowing what to do next or how to actually 0:17:36.560 --> 0:17:41.639 fix the overwhelm and the sheer volume of noise and 0:17:41.680 --> 0:17:44.920 fear and anxiety that just tends to build and grow 0:17:45.560 --> 0:17:47.040 with the more we procrastinate. 0:17:47.400 --> 0:17:50.639 Okay, if you've now got a more simple setup, simple 0:17:50.680 --> 0:17:56.560 bank account, simple superannuation, how often then should you be 0:17:56.680 --> 0:18:03.399 reviewing and restructuring if needed the setup, which I imagine 0:18:03.520 --> 0:18:05.160 is going to be easier to do when you don't 0:18:05.200 --> 0:18:07.960 have four thousand different accounts to be checking. 0:18:08.480 --> 0:18:12.280 So obviously, the moment your situation changes, you know, you 0:18:12.320 --> 0:18:14.919 get a new job, or you're moving, or you know, 0:18:14.960 --> 0:18:18.680 your like lifestyles change, you're perhaps partner, or you're having 0:18:18.680 --> 0:18:19.439 a baby, something like. 0:18:19.440 --> 0:18:21.879 That expense kind of exactly. 0:18:22.240 --> 0:18:25.159 But also the moment you feel like you might be 0:18:25.280 --> 0:18:28.400 maybe playing it low and you think, you know what, 0:18:28.720 --> 0:18:30.440 I actually probably could save a little bit more, or 0:18:30.440 --> 0:18:32.560 I can actually play off a bit more depth fast, 0:18:32.680 --> 0:18:35.720 or you know what, actually I'm feeling really motivated, or 0:18:35.720 --> 0:18:40.560 I'm curious even to look into investing. Capitalize on those moments, 0:18:40.960 --> 0:18:43.719 you know, because if you don't, they will pass and 0:18:43.760 --> 0:18:47.520 they don't necessarily come back as often or as quickly 0:18:48.000 --> 0:18:49.240 when we don't jump on those. 0:18:49.600 --> 0:18:53.159 Okay, we are nearly out of time, got about a 0:18:53.200 --> 0:18:56.359 minute left. Is there anything else that we can be 0:18:56.440 --> 0:19:00.960 doing to add a touch of minimalism to our money here? 0:19:01.359 --> 0:19:03.600 So I know that you are a big fan of minimalism, 0:19:04.080 --> 0:19:06.680 and it is, of course may minimalism. 0:19:06.720 --> 0:19:06.880 May. 0:19:07.040 --> 0:19:09.760 This is a little bit of a minimalism sneak attack 0:19:09.800 --> 0:19:13.840 that we've launched with this particular episode. Perhaps the idea 0:19:13.880 --> 0:19:15.440 of a digital de clutter. 0:19:16.520 --> 0:19:20.160 Oh I love a good declutter. Look. Obviously, going through 0:19:20.160 --> 0:19:22.320 your phone is the first place to do this. Going 0:19:22.359 --> 0:19:26.640 through your desktop computer, or your laptop even any sort 0:19:26.640 --> 0:19:31.160 of you've got piles of notebooks everywhere, consolidate everything back 0:19:31.200 --> 0:19:33.879 to one. But you know they're the practical side. But 0:19:34.080 --> 0:19:36.119 what I like is a good test to see whether 0:19:36.200 --> 0:19:40.119 you are guilty of this, you know, over complicating things, 0:19:40.160 --> 0:19:42.320 making a rod for your own back. And that is 0:19:42.800 --> 0:19:45.120 this thing that I teach in my mentorship program, and 0:19:45.359 --> 0:19:48.200 it's an elevator pitch. If I was to get into 0:19:48.240 --> 0:19:51.400 the elevator with you, you should be able to tell 0:19:51.440 --> 0:19:56.959 me your ballpark, big picture financial strategy whilst getting in 0:19:57.000 --> 0:20:00.160 from the ground level, say going to level ten. Want 0:20:00.200 --> 0:20:02.679 to hear that. If you can't actually articulate and explain 0:20:02.720 --> 0:20:05.200 it back to me in a very simple, easy concise way, 0:20:05.560 --> 0:20:09.160 you have most likely over complicated. You know, your financial 0:20:09.200 --> 0:20:10.200 strategy and game plan. 0:20:12.240 --> 0:20:15.520