Speaker 1: Good morning everyone, and welcome back to Sugar Mamma's Fireplay,
Speaker 1: the podcast that ignites your financial journey with inspiring stories
Speaker 1: and innovative strategies. I am your host's financial planner, Canna Campbell,
Speaker 1: and today this is a start Here series where we
Speaker 1: have frank, open and honest discussions about what's going on
Speaker 1: and how and where to simply get started so that
Speaker 1: you are well and truly on trap to see your
Speaker 1: financial goals and dreams finally flourish. Now, as always, I
Speaker 1: must do my general advice warning and of course let
Speaker 1: you know that my financial planning license details are in
Speaker 1: the podcast notes. The reason why I say this to
Speaker 1: you in particular for these start here series is you
Speaker 1: must use all of my content as an educational guide only.
Speaker 1: Never am I giving you personal advice, product advice, or
Speaker 1: investment advice, so that you understand exactly where you need
Speaker 1: to go, learn more of and maybe even get personal
Speaker 1: advice from a financial planner when you are ready to
Speaker 1: roll with your financial journey. All right, let us begin.
Speaker 1: So this morning's episode is a bit of a special one.
Speaker 1: We're in for a treat. Instead of me normally reading
Speaker 1: your dms, we actually have someone here with us right now,
Speaker 1: So you're going to be listening to our chat, our
Speaker 1: conversation now. Bridy is thirty years old. She's gone through
Speaker 1: a lot, and I have a feeling that a lot
Speaker 1: of people are going to really relate to what she
Speaker 1: has gone through and where she is right now and
Speaker 1: what she wants to achieve. So with great honor, I
Speaker 1: introduce to you Bridy for our series start here. BRIDI
Speaker 1: thank you so much for coming in. Can you explain
Speaker 1: to me, like where you're at right now and like
Speaker 1: what's going on and why you would like me to
Speaker 1: I guess give you some general guidance as to where
Speaker 1: to get started.
Speaker 2: Well, for one, we're sitting in a beautiful home. It's
Speaker 2: a testament to like how you've built your dream, which
Speaker 2: is like already why I want to talk to you,
Speaker 2: Why I want your help? Yeah, is I would like
Speaker 2: to even create a financial dream. I'm like kind of
Speaker 2: scared of the housing staff. I'm single, I'm not thinking
Speaker 2: about buying a property. I want to live a fun, full,
Speaker 2: exciting life. I'm thirty.
Speaker 1: Liked it be tied down. You just want to be
Speaker 1: a complete flexibility you at the luxury I want.
Speaker 2: To enjoy my life, like because I work hard and
Speaker 2: I want happiness, but I feel like really scared when
Speaker 2: I look at Okay, these houses are costing this much,
Speaker 2: and this is how much you need to live off,
Speaker 2: and got to create a career that brings in home
Speaker 2: this much, and I'm just like trying to overwhelming. Yeah,
Speaker 2: i feel like I would never get there. Like that's
Speaker 2: a belief thing I know that I have. That is
Speaker 2: maybe something I need to work on too, But it's
Speaker 2: completely overwhelming. And so I've actually buried my head in
Speaker 2: the sand. Never saved books. Let's talk about it like
Speaker 2: I've never saved.
Speaker 1: I'm not a huge judge.
Speaker 2: There's a lot we could unpack in terms of mistakes.
Speaker 1: Well, why don't we unpack those mistakes so that we
Speaker 1: can deal with them properly. You hit them in the
Speaker 1: butt and process them and digest them and maybe dissect
Speaker 1: them so that we can then clear the path for
Speaker 1: goodness and for abundance and prosperity. And you touched on mindset.
Speaker 1: Mindset is everything. If you go into a financial journey
Speaker 1: thinking this is hard, it's confusing, overwhelming, their mindset is
Speaker 1: going to show in the results and there won't be
Speaker 1: much results. But if you go and going, okay, well,
Speaker 1: I'm going to break this down. Yes it might be
Speaker 1: at times a little bit challenging and confusing, but I
Speaker 1: can do this, and I'll reach out for help and
Speaker 1: get people to explain things when I get stuck, and
Speaker 1: I won't do anything until I'm one hundred percent sure.
Speaker 1: Suddenly your energy starts to shift and you start to realize, actually,
Speaker 1: it's maybe not as bad as we think it is,
Speaker 1: so let's unpack it. It's bad, Okay, I don't mind.
Speaker 1: It's not bad Like there's I've been a fincial planner
Speaker 1: for over twenty years. I have seen everything and heard everything.
Speaker 1: And the other day I was doing a keynote piece
Speaker 1: for PwC for their staff on financial wellness, and someone
Speaker 1: asked me a question about what I'd seen, and look,
Speaker 1: I've seen someone with three hundred and sixty thousand dollars
Speaker 1: credit and credit card debt.
Speaker 2: Like made me feel better. It made me feel better
Speaker 2: about what I knew.
Speaker 1: I had to tell you, what, unless someone comes to
Speaker 1: me with more credit card debt than that, and that
Speaker 1: person continued to bury their head in the sand. But
Speaker 1: that's not the point. Like it doesn't matter about your history,
Speaker 1: like you really need to be kind and compassionate about that.
Speaker 1: What matters is what you're doing going forward and understanding
Speaker 1: that you have a choice, and the choice is right here,
Speaker 1: right now in front of you. To step up. You
Speaker 1: arm yourself with financial education and don't try and do
Speaker 1: it all at the same time. Yeah, don't try and
Speaker 1: master a budget overnight. That's not going to happen.
Speaker 2: True.
Speaker 1: It takes practice. And it's like training exercise. Like you
Speaker 1: can't just go for a run and be fit. Yeah,
Speaker 1: you have to go for a run three four times
Speaker 1: a week, and you have to try and run faster
Speaker 1: or run further. And then you and you start with
Speaker 1: like one minute exactly exactly, and then you might do
Speaker 1: some weights in there because you're focusing on your cardio
Speaker 1: and you need some strength training or some flexibility or
Speaker 1: to some yoga in there. So it's not overnight. It's
Speaker 1: a journey. Then you have a setback where you might
Speaker 1: binge on a weekend, yeah, or maybe you get injured
Speaker 1: and you kind of exercise so you lose some fitness.
Speaker 1: It's the same with money. It's never magical and overnight,
Speaker 1: and if it is, that's a red flag. Something is
Speaker 1: not sustainable and it's only a quick fix or a
Speaker 1: band aid. All right, that's not for my ted talk.
Speaker 1: I want to hear about you. What's been going on
Speaker 1: in the past and where are you at right now?
Speaker 2: Well, I think the thing that is the hardest is
Speaker 2: like the present still has remnants of the mistake of
Speaker 2: the past. So I was given an inheritance when my
Speaker 2: grandfather died when I was in like year twelve, and
Speaker 2: it was one hundred and ten thousand, okay, and there's
Speaker 2: ten thousand left. Okay, told you you were going to follow.
Speaker 1: Yeah, I all, not all. I have got a lot
Speaker 1: to say about it.
Speaker 2: I don't even know. I don't even know what a
Speaker 2: twenty year old spends their like, I can't even tell you.
Speaker 2: But I'm not going to rag on my parents because
Speaker 2: like they were doing their best, but I didn't have
Speaker 2: any tools. So my both, like my brothers and I
Speaker 2: got the same amount of a your older brother and
Speaker 2: a younger brother, and they both have houses in Sydney.
Speaker 1: They use that money to buy property.
Speaker 2: Yeah, they're both in the other complication of my story
Speaker 2: I feel like is that they're both in a lot
Speaker 2: more of sort of a set path with their career.
Speaker 2: I've had a bit more of like a PC journey.
Speaker 2: I've really not known and I probably still don't fully
Speaker 2: know what I'm meant to be doing with my full
Speaker 2: time work. I love what I do currently, but I
Speaker 2: know that I don't have like a, oh, Brady's going
Speaker 2: to be a banker or I'm a professional dancer. So
Speaker 2: this is like roughly how much I'm going to be
Speaker 2: making You.
Speaker 1: Don't feel like you've got your career path necessarily at all? Yeah,
Speaker 1: but why should we?
Speaker 2: It feels like really embarrassing to just be thirty and
Speaker 2: be like I have three jobs and people are shocked
Speaker 2: when they find out how addim which is super flattering,
Speaker 2: but like a lot of my friends are like twenty
Speaker 2: one studying psychology, Like it's just they've got this bow
Speaker 2: on that.
Speaker 1: They seem to have it all sorted and you feel
Speaker 1: like you're, yeah, you're just treading water, keeping your head
Speaker 1: above it. Yeah, And in a.
Speaker 2: Way I know that part of how because I've got
Speaker 2: three part time jobs, which I really enjoy all of them.
Speaker 2: It's not one cohesive picture. If you ask me what
Speaker 2: I do, it doesn't really say I don't have an answer.
Speaker 1: For people when they ask me that, Well, yeah, can
Speaker 1: I just I've got so much to say about first
Speaker 1: of all, about the three jobs. To me, there is
Speaker 1: no shame in that, and you're thinking about it the
Speaker 1: wrong way. You're thinking that you're a bit of a joke,
Speaker 1: maybe a rid of a mess, and that you've got
Speaker 1: three different.
Speaker 2: Jobs, exactly how I feel.
Speaker 1: But see, I don't think you're a freelancer. He can
Speaker 1: choose your contracts as to who you want to work
Speaker 1: for and when and on what terms and now on
Speaker 1: how much, And to me, you actually have complete control
Speaker 1: and flexibility in your life. And I think that sounds liberating.
Speaker 1: I don't think there's any shame in that. And this
Speaker 1: is the age that we work in now, is a
Speaker 1: lot of people are moving away from being on this
Speaker 1: one employer yes level.
Speaker 2: You know, I feel like I'm like the lab rat
Speaker 2: for that kind of thinking, Like it's always been that
Speaker 2: for me, Like I never thought about UNI in high
Speaker 2: school and even last year I tried to force myself
Speaker 2: into choosing a career of occupational therapy and I got
Speaker 2: to signing the dotted line of applying for UNI, and
Speaker 2: I realized I am so bored at the thought of that.
Speaker 1: I'm glad you.
Speaker 2: I'm glad I didn't do it, and I was I
Speaker 2: called my mom and I was expecting her to be like, oh, variety,
Speaker 2: but she was so empowering and she was just like, really,
Speaker 2: proud of you for being honest with yourself. And I'm like, really,
Speaker 2: because I'm dirty, and don't you just want me to
Speaker 2: like know?
Speaker 1: And I think what you're doing is great, Like I
Speaker 1: would be proud of you. I think you've got You're
Speaker 1: being authentic, You're being real to who you are. You
Speaker 1: know where you're bound, who are on, what works for
Speaker 1: you and what doesn't. And you're not going to prescribe
Speaker 1: to this herd mentality of go to school, go to
Speaker 1: university or some sort of tertiary qualification, which career path,
Speaker 1: and stick to that for the rest of your life.
Speaker 1: That to me sounds boring as bad shit.
Speaker 2: Yeah it does.
Speaker 1: And if you look at any entrepreneur that has achieved something,
Speaker 1: so many of them have actually found their calling later
Speaker 1: in life in their forties, fifties, seventies, I think don't
Speaker 1: quote me on this, but if you look up the
Speaker 1: story of Colonel Sanders, I think it is EMBITEDKFC. I
Speaker 1: think it was maybe in his sixties when really came
Speaker 1: up with the ingredients for Kentucky Frey chicken. And there's
Speaker 1: hundreds of these stories. I probably should have known about this,
Speaker 1: and I had some stats on me, godding, but obviously we're.
Speaker 2: Just freaking going to give the things you see on
Speaker 2: Instagram of like Oprah forty, Steve Carrell fifty.
Speaker 1: Yeah, there's so many stories like that. Who is the
Speaker 1: woman who is amazing? She used actually be a stockbroker
Speaker 1: working in finance and is now like kind of the
Speaker 1: housewife guru which works for Oprah. The name will come
Speaker 1: to me in a second, but she's a self made
Speaker 1: multimillionaire that hated her job in finance, was a stockbroker
Speaker 1: in New York, was actually quite successful, but her passion
Speaker 1: was actually decorating and designing homewordes and setting homes up
Speaker 1: to be efficient and welcoming and you know, how to
Speaker 1: get stains out of things. She's like, go to guru
Speaker 1: with those sorts of things. And she's sold books and
Speaker 1: courses and amazing stories. So don't flick people's judgment. It's
Speaker 1: the other thing I want to say about the money
Speaker 1: stuff in the inheritance. There is a lot to say
Speaker 1: for people who put inheritances in trust for adult children
Speaker 1: and only to be released once they become ready.
Speaker 2: I think that was we had spoken about that.
Speaker 1: Yeah, I mean you were very young. I would have
Speaker 1: blown that money even entering in you know, even being
Speaker 1: an investor at.
Speaker 2: That age ninety thos. I'm not talking like two hundred dollars.
Speaker 2: I think also, like where I might have a bit
Speaker 2: of a poverty mentality was when you don't grow up
Speaker 2: with a ton of money and you get some And
Speaker 2: no shade to my parents, but I think the thinking
Speaker 2: that I naturally just had in me was like this
Speaker 2: is your one shot, almost like I wasn't even deserving
Speaker 2: to have this. I didn't earn it, so I was
Speaker 2: given this like thing of like, holy crap. It was
Speaker 2: every time there was spending, there was such deep guilt
Speaker 2: because it was like, I'll spend, but this is my
Speaker 2: one shot. This is my one shot. So I remember
Speaker 2: like those purchases just flying through my card and I
Speaker 2: just felt even like it pushed me further and further
Speaker 2: down into like basically what was a secret. I didn't
Speaker 2: tell my parents that I was spending it at the
Speaker 2: rate that I was, and I think we're spending, like
Speaker 2: you really think your appetite is going to be satiated,
Speaker 2: Like you think it's like food, Like I'll have a
Speaker 2: burger and I'll have chips and then i'm done. Like
Speaker 2: I'll buy that designer coat and then I'm good. I've
Speaker 2: got one winter coat. I even tried to like buy
Speaker 2: a capsule wardrobe, but it just kept going. Yeah, I
Speaker 2: kept buying.
Speaker 1: A bottomless pit.
Speaker 2: A lot of the closet I bought, like I went
Speaker 2: on the real reel and I didn't even keep them
Speaker 2: because then not even good purchases. So I was just spending.
Speaker 1: Okay, so an element of self worth, a complete lack
Speaker 1: of self worth, I would say, and then almost a
Speaker 1: self destruction mode. Yeah, to almost get rid of the
Speaker 1: money because you weren't worthy of it. So you had
Speaker 1: almost said to wash yourself.
Speaker 2: It was like washing. Yeah, it was like washing it away.
Speaker 2: It was just and some of the purchases were truly justified,
Speaker 2: like got a water filter, like things that I actually
Speaker 2: still have, but I know a lot of it was
Speaker 2: just luxurious living. I'd be like, I'll go get a
Speaker 2: massage because I'm stressed, or like I'll go get my
Speaker 2: nails done because I've got this thing. There was always
Speaker 2: this running conversation in my mind of justification of why
Speaker 2: I was spending the money, and I remember my friends
Speaker 2: would be like, how do you have the money for that?
Speaker 1: Yeah, And I.
Speaker 2: Feel like I had this dirty secret that I was
Speaker 2: like hiding.
Speaker 1: It was bad.
Speaker 2: And asofce, bags just turned up at the house every day.
Speaker 1: Wow. I don't say wow to judge them, saying like,
Speaker 1: I have so many girlfriends. I've never inherited money, so
Speaker 1: I don't know what it's like, but I have girlfriends
Speaker 1: who've done very very similar things, right, So you're not
Speaker 1: alone with inheritance. Yes, absolutely, inheritance from grandparents and they've
Speaker 1: lied to their parents about where that money has gone
Speaker 1: and then anonymous. But also you know, it's a lack
Speaker 1: of financial literacy. And some of those godfriends just drowning
Speaker 1: in debt still today after receiving that money because it
Speaker 1: put them on a lifestyle creep where they had to
Speaker 1: keep up with it spending and then you know, all
Speaker 1: the inheritance burnt out, but then they still had this
Speaker 1: champagne taste, but no champagne money to pay for it anymore.
Speaker 1: So it continued on and then ended up in debt.
Speaker 1: So I'm not judging at all my heart and she
Speaker 1: goes out to you, And the other thing I'll say
Speaker 1: is anything we hear from our parents or our partners,
Speaker 1: we get defensive because we don't like hearing from those people.
Speaker 1: If I had met you or someone who's neutral and
Speaker 1: not connected to your parents in any way and said
Speaker 1: something to you, you're more likely to take it on
Speaker 1: board than you are hearing it from a parent or
Speaker 1: a partner. Like Tom will say something to me like, Ohkanna,
Speaker 1: we should really paint that blue, and I'm like, no, yeah,
Speaker 1: so's not painting that. And then if pop over, you
Speaker 1: pop over and goes, hey, can you paint that wall blue?
Speaker 1: Oh my god, what a cool idea to do that.
Speaker 1: We should totally paint this wall, and Tom goes mentally,
Speaker 1: it's the same things. We don't want to hear advice
Speaker 1: from our partners sometimes or our parents.
Speaker 2: We kind of a reminder of like the yuckiness that
Speaker 2: I experienced as a kid with money, So I even
Speaker 2: being in that space, I didn't want to like open up.
Speaker 1: Of course, of course, and it's also money that's come
Speaker 1: out of a loss and grief, and grief is very
Speaker 1: complicated as well.
Speaker 2: And to add to that, like the one shot sort
Speaker 2: of like this is you could get the house with this,
Speaker 2: so you could, like the pressure say that, Oh, the
Speaker 2: pressure was probably the thing that I can remember feeling
Speaker 2: the most. I still feel a little bit of it.
Speaker 2: I've still got some of it left, so like.
Speaker 1: But we'll talk about that in a second, because we
Speaker 1: want to work out where you should get started to
Speaker 1: get back on track and make up for lost time.
Speaker 1: But I mean, what you were saying is not uncommon
Speaker 1: at all, and at different levels of severity in different situations.
Speaker 1: You're not alone. But my heart really goes out to
Speaker 1: you because the pressure on someone so young, you have
Speaker 1: no understanding about money and how money is built, how
Speaker 1: money is protected, how money needs to be used in
Speaker 1: a sensible wise intelligent wafers can therefore be sustainable and
Speaker 1: you can actually leverage further off that beautiful financial blessing.
Speaker 1: It would have actually been really quite horrible. Yeah, And
Speaker 1: I would almost get that if I was in your situation,
Speaker 1: I almost would have almost like a detest of money
Speaker 1: because it would just be a reminder of the past.
Speaker 2: Yeah, the resistance I have towards budgeting, I just shut down.
Speaker 2: Like when my friends are talking about money, I feel
Speaker 2: so much anxiety, like they're talking about this holiday and
Speaker 2: I just freeze. Yeah, because I feel like I blew it.
Speaker 2: I could have. I don't know what I could have,
Speaker 2: but it feels a bit like damned if I do,
Speaker 2: damned if I don't. Because there was actually a guy
Speaker 2: that my friend's dad who I opened up to about
Speaker 2: all this, and he was like, right, lock that money away,
Speaker 2: you're buying a property. And I just never did anything
Speaker 2: with the advice. I was scared to lose that little
Speaker 2: back up, but scared to not do anything as well.
Speaker 2: So I froze. And that freezing meant that money just
Speaker 2: sat there and I just kept picking away over the years,
Speaker 2: so I had access to it for like, you know,
Speaker 2: eleven years now.
Speaker 1: So okay, tell me what you did with the money
Speaker 1: and we'll move on then to what like because I
Speaker 1: don't want to, like, you know, we need to acknowledge
Speaker 1: the past, Yeah, but we also need to make peace
Speaker 1: of the past so we can make the space for prosperity.
Speaker 1: So where did this money go? Like, what did you do?
Speaker 1: Did you travel?
Speaker 2: I did. I lived in Mexico for two years.
Speaker 1: Wow.
Speaker 2: I did volunteering, so I actually had to pay to live.
Speaker 1: Wow.
Speaker 2: And that was honestly so fulfilling.
Speaker 1: Like I know, tell me a little bit about that. Yeah.
Speaker 2: I just had like a really like high school was
Speaker 2: really tough. There was stuff going on in my family.
Speaker 2: I had an awful breakup and I wanted to get
Speaker 2: out of Sydney. I had like a bit of a
Speaker 2: spiritual awakening and I met some people who were doing
Speaker 2: like volunteer programs. This program that runs around the world
Speaker 2: and you can basically go pay to live at a
Speaker 2: location anyone that you choose. They have bases in basically
Speaker 2: all countries and just to like serve the local area.
Speaker 2: So I went to Tijuana, Mexico, where we were feeding
Speaker 2: the homeless. We were looking after the girls that worked
Speaker 2: in the red light district as young as like five
Speaker 2: years old. Seeing like young girls get sold. It was
Speaker 2: quite dangerous at times.
Speaker 1: Wow.
Speaker 2: We were doing little day courses daycare for the kids
Speaker 2: of the people who worked in the red light districts.
Speaker 2: So the pimps would like come and drop their kids
Speaker 2: off to our daycare. You're just like talking to tijuan
Speaker 2: as big ast like drug cartel guys, and they're coming
Speaker 2: and giving like little Huan to me for the day
Speaker 2: and we're like playing skipping and doing Bible stories and
Speaker 2: building homes for families that didn't have them. So like
Speaker 2: it was obviously you think I'm a saint. I did that.
Speaker 2: It was a beautiful decision. I'm really glad I meant decision.
Speaker 2: I was running away from pain, from my family and
Speaker 2: from a breakup. So I came back from Mexico after
Speaker 2: that just under two years and pain wasn't gone. So
Speaker 2: I also just like moved to Byron for two years.
Speaker 2: So I went and just lived with my friends in Byron.
Speaker 2: It was stunning, beautiful. And then I got back from Byron.
Speaker 2: Still didn't want to be confined to Sydney, so I
Speaker 2: went and lived in Darwin and I did a bit
Speaker 2: of volunteer work up there as well. And I was
Speaker 2: a makeup artist at the time, so I was working
Speaker 2: on like the ABC News and that was really fun.
Speaker 2: And then like I lived in Brisbane for a bit
Speaker 2: because I just like I just didn't care to come
Speaker 2: back to Sydney and get into a nine to five.
Speaker 2: I knew that that like sort of boring future was
Speaker 2: awaiting me, and I was just like, no, I'm just
Speaker 2: gonna wriggle about. Then I went to Brisbane. When COVID happened,
Speaker 2: I took off to Byron again as most of us did,
Speaker 2: so I fit in a trip to Scandinavia. I spent money,
Speaker 2: went to America on that money, went to Scandinavia on
Speaker 2: that money, and haven't done any overseas travel since before COVID.
Speaker 2: So there's a lot in there, but they're the main.
Speaker 1: Sort of Okay, So I don't think you wasted the
Speaker 1: money at all. I think you invested the money in yourself. Wow,
Speaker 1: I don't think that.
Speaker 2: I don't think from you, I like because so many
Speaker 2: friends have said that to me, but like coming from you,
Speaker 2: if you really think that ninety grand is not wasted
Speaker 2: on me, just being like I want to live in
Speaker 2: Darwin now, I maybe I can let this go.
Speaker 1: I'm actually really inspired by your free spirit and you'll
Speaker 1: get up and go. And even a teeny tiny bit
Speaker 1: jealous because I one of my biggest regrets is actually
Speaker 1: not going and living overseas after I finished Wow University
Speaker 1: and I've got a life ahead of me. I can
Speaker 1: know that that maybe you can do it later on
Speaker 1: in life, and I you know, just like various different
Speaker 1: successes coming later in life. So yeah, but no, I
Speaker 1: don't think you wasted it in I think you've actually
Speaker 1: invested their money in yourself and in finding and going
Speaker 1: on a self discovery journey, which is so valuable. And
Speaker 1: as we get older, we've got bigger responsibilities, children, mortgages, expenses,
Speaker 1: the lifestyle creep. To be able to do those things
Speaker 1: is not actually possible. So you've done it the smart way.
Speaker 1: You've done all those things now and the very strategy.
Speaker 1: And I have to say, all that travel for so
Speaker 1: many years of ninety thousand dollars, I don'd you say,
Speaker 1: you're probably quite really good money Like some people would
Speaker 1: have blown that within a year. You made that money
Speaker 1: really last and take you to so many different destinations
Speaker 1: and immerse yourself into so many important cultures and seeing
Speaker 1: firsthand the reality of how our world operates and how
Speaker 1: dangerous it is and how lucky we are, and what
Speaker 1: the things that we need to be aware of and
Speaker 1: grateful for, and how we can use that, you know,
Speaker 1: even just hearing I mean, I don't know anything about.
Speaker 2: The ten year story, like what was your life even your.
Speaker 1: Experience of going to Mexico and helping and learning about
Speaker 1: these the red light districts and children, like I mean,
Speaker 1: it makes me feel sick to my stomach. You can
Speaker 1: actually use that to your financial advantage and use that
Speaker 1: an element of motivation to help you want to get back.
Speaker 2: Oh oh my gosh. My dream would be to, like
Speaker 2: whether single or with a family, like would be to
Speaker 2: for a portion of the year, be at a month.
Speaker 2: You do need to be there a little longer than
Speaker 2: a month though for it to not feel like you're
Speaker 2: a volunteer tourist. But yeah, like I'd love to go
Speaker 2: for like a three month stint. Like that's a dream
Speaker 2: every year to invest And so I actually got that
Speaker 2: idea from a family that I met over in Mexico
Speaker 2: that did that, and it really inspired me. And the
Speaker 2: kids grew up from you know, being a baby to
Speaker 2: like learning how to speak Spanish and all they knew
Speaker 2: was giving and serving the Mexican people.
Speaker 1: How much would you need to do that to do
Speaker 1: that each year? If you said, Okay, I want to
Speaker 1: spend three months a year living in Mexico helping these families.
Speaker 2: Even much thought of it makes me so like my
Speaker 2: heart gets butterflies. I don't even know how much my
Speaker 2: groceries cost.
Speaker 1: Okay, if I put thirty thousand dollars in your bank
Speaker 1: account before you jumped on the plane or before you
Speaker 1: booked an air fair, would that be enough for you
Speaker 1: to take three months off away from your life to
Speaker 1: survive and do that every single year?
Speaker 2: Thirty grand? I assume so like I know that you
Speaker 2: pay a fee to work and live there, and I
Speaker 2: would probably buy my own food and stuff like that.
Speaker 2: So thirty thousand for three months sounds like more than
Speaker 2: I'd need.
Speaker 1: Okay, So what if I told you, if you wanted to,
Speaker 1: you could get started today in building up a passive
Speaker 1: income stream of thirty thousand dollars a year will take
Speaker 1: a while. It's going to be not saving. It's about
Speaker 1: investing and building up an investment portfolio that pays you
Speaker 1: thirty thousand dollars once a year, wow, as a lump sum,
Speaker 1: or maybe split up over two payments in one year,
Speaker 1: say fifteen thousand dollars each, and that was your money
Speaker 1: for Mexico.
Speaker 2: Oh my gosh, I'm smiling.
Speaker 1: Okay, Well, this is something you can do. I know
Speaker 1: from our previous conversations you're someone who's very interested in investing,
Speaker 1: and you've said you would love to have an investment portfolio.
Speaker 1: But yeah, you don't know where to start. So this
Speaker 1: is where you need to get started.
Speaker 2: Okay, all right.
Speaker 1: First of all is you've got to spend some time
Speaker 1: for giving yourself and hopefully even know a conversation.
Speaker 2: Alone, and it does already feel lighter.
Speaker 1: And I don't even think you need to figive yourself
Speaker 1: for anything. You know, you've invested in yourself, and I
Speaker 1: think what you've done is admirable and liberating and connected
Speaker 1: to your spirit and what it needs, the which is
Speaker 1: so important. You're not following a herd mentality. So first
Speaker 1: of all, we've got to do some work on that mindset.
Speaker 1: And I want you to write down all the things
Speaker 1: that you are grateful for from doing that four or
Speaker 1: five years of spending that money. Write them down and
Speaker 1: write them down in a journal so you can reread
Speaker 1: them whenever you need to. Next is to start looking
Speaker 1: at some goals and write down those goals. So write
Speaker 1: down the goal of a passive income of thirty thousand
Speaker 1: dollars a year. I want you'd also write down the
Speaker 1: goal of doing a budget. Yeah, and I will sit
Speaker 1: down with you and I'll show you how to do
Speaker 1: a budget and how to build a cash flow system
Speaker 1: that matches your budget so that you don't get into
Speaker 1: credit card debt along the way, you don't run out
Speaker 1: of money before you're end of the pace cycle. And
Speaker 1: you can, best of all, start building up some savings
Speaker 1: and start a regular investment plan. So mindset goals and
Speaker 1: writing those goals down and having you know, in that
Speaker 1: list of goals, have some goals for an amount of
Speaker 1: emergency money, which I'll come to in a second. Then
Speaker 1: I want you to do a budget. Yeah. Now, from
Speaker 1: your budget, what I want you to do is work
Speaker 1: out how much you can afford to save on a
Speaker 1: regular basis. Okay, Okay, with that savings first, and I'm
Speaker 1: going to assume that you don't have any credit card
Speaker 1: dead here, but you know, I want you just then
Speaker 1: use that savings after you've done your budget and proactively
Speaker 1: put it into a savings account, an online savings account,
Speaker 1: ideally with high interest snow fees. Okay, you may already
Speaker 1: have one, but it must be away from your every
Speaker 1: day Okay, your every day is spending account. We want
Speaker 1: to remove temptation.
Speaker 2: There's one account.
Speaker 1: Okay, you have one account. I kind of like that.
Speaker 1: It's very simple, but you do need a second account.
Speaker 1: An online savings account can be great because it gives
Speaker 1: you that flexibility. There's no fees and you get a
Speaker 1: bonus interest. Often if you're putting a certain amount every month,
Speaker 1: now you would nickname that account my emergency money. It
Speaker 1: is really important that you always have emergency money. It
Speaker 1: doesn't matter how ritual, how cool you are.
Speaker 2: You need emergency and I don't have a full time.
Speaker 1: Jobs exactly, so you don't have protection that yet, you
Speaker 1: don't have you sickly or really ring like that. So
Speaker 1: it's really important to you. You need to work out
Speaker 1: while this is the right amount of emergency money. So
Speaker 1: there's no magical formula and for you, we need to
Speaker 1: sit down and look at your situation and go, okay, well,
Speaker 1: what are your expenses like, what is your situation and lifeline?
Speaker 1: What safety nets have you already got in place, what
Speaker 1: insurance policies you have, and then we'll sit out and
Speaker 1: work out how much you need. But realistically it's going
Speaker 1: to be a decent five figure amount of emergency money
Speaker 1: that you need. Okay, I don't want to throw numbers
Speaker 1: out there, but it's going to be something north of
Speaker 1: fifteen thousand, okay, okay, Yeah, So we need to start
Speaker 1: building that up as quickly as possible. Then in the meantime,
Speaker 1: whilst we're saving that, we need to go down an
Speaker 1: educational path learning about money and learning about investing, and
Speaker 1: we're going to start building up a passive income stream.
Speaker 1: So whilst you're saving up, let's call it fifteen thousand
Speaker 1: dollars emergency money for simplicity, But that's not the number.
Speaker 1: I want you to learn about investing and I want
Speaker 1: you to so that you're saving it at the same time.
Speaker 1: But you're not wasting time. You're using a time efficiently. Yeah,
Speaker 1: So you're saving your heart out. You're regularly putting money
Speaker 1: into that savings account, and I should point out I
Speaker 1: recommend you put that money in. So say, for example,
Speaker 1: you know you can save one thousand dollars a month
Speaker 1: after doing a budget or whatever it may be, the
Speaker 1: moment you get paid, and I know you do get
Speaker 1: paid in various different ways, try and put some of
Speaker 1: that money into that savings account. So you get it
Speaker 1: out of your account away into that emergency account, so
Speaker 1: it's taken out before you get the opportunity to spend it.
Speaker 2: Okay, so you really.
Speaker 1: Prioritize, prioritize first priority.
Speaker 2: And it is like I connect with that because I'm like,
Speaker 2: if something happened.
Speaker 1: It's the money that lets you sleep well at night.
Speaker 1: And yeah, that, as I said, it's not to be invested.
Speaker 1: Investing is really for the long term. When I say
Speaker 1: long term, I'm talking ten, fifteen to twenty thirty, forty
Speaker 1: fifty years. Okay, So you always need to think, Okay,
Speaker 1: this money that I'm going to go and invest, I
Speaker 1: never want it back. I'm putting it away forever because
Speaker 1: it's going to pay me back. It's going to pay
Speaker 1: me back a little bit each year without the capitol
Speaker 1: eroding away.
Speaker 2: Okay.
Speaker 1: So once you've hit that fifteen thousand dollars, I want
Speaker 1: you then to replace that savings plan, whether it be
Speaker 1: two hundred dollars a month, five hundred dollars a month.
Speaker 2: Whatever it may be, I'm already saving.
Speaker 1: I want you to then go and open up another account,
Speaker 1: another online savings account. Now, this is your saving to
Speaker 1: invest account. It's your financial goal, okay, and I want
Speaker 1: you to start putting as much money as you can
Speaker 1: afford to do into that account, and in the meantime
Speaker 1: continue on educating yourself. Now, there are lots of different
Speaker 1: investments out there, and there are lots of different investment
Speaker 1: products out there, and I obviously this is a general conversation.
Speaker 1: I'm not giving you personal advice at all, but I
Speaker 1: know from our conversations you are interested, and you've said
Speaker 1: you want a share portfolio. So if that's something that
Speaker 1: really excites you, and you know that shares a highly
Speaker 1: volatile their long term investments, and you like the idea
Speaker 1: that it's not a property, you don't need to wait
Speaker 1: a save up for eight ninety.
Speaker 2: Thing feels too like far and it feels too locked down.
Speaker 2: I don't know how to decide, but I know, yeah.
Speaker 1: We'll do a risk profile together and also work out
Speaker 1: where you know what the mix is, because it's not
Speaker 1: one or the other. Right inact, you could have property
Speaker 1: and you can have shares. Yeah, And you can have shares,
Speaker 1: and you can have some cash, and you can have
Speaker 1: some fixed interest, and you can have some international shares.
Speaker 2: To say that I have all those like just even
Speaker 2: the thought of like actually being able to comprehend what
Speaker 2: all that that is, like that feels so empowering.
Speaker 1: But you can have this. You can literally have this
Speaker 1: by the end of the day. If you wanted a share,
Speaker 1: poor follow. If you can buy a pair of shoes online,
Speaker 1: you can buy really shares online. Absolutely, but we need
Speaker 1: to make sure that before you come buy shares online
Speaker 1: that you know that you are them. Okay, and we
Speaker 1: do it the right way. Now, if I just hone
Speaker 1: in on shares just for I guess educational purposes right now,
Speaker 1: not giving you personal advices investment at all. But once
Speaker 1: you've got a certain amount saved up and you've done
Speaker 1: a Risze profile, and you go, yes, you know what,
Speaker 1: this is what I want. I like the idea of
Speaker 1: shares because I can buy shares straight away. I've only
Speaker 1: got a pay brokerage and yes, you can use it.
Speaker 2: How do I know where to look? Because I know,
Speaker 2: like my brother he works for Google, so he's like,
Speaker 2: here's Apple, He's Google, he has like, yeah, tech scary
Speaker 2: to me. Crypto is scary to me. Although my friend
Speaker 2: became a millionaire from crypto, I'm like, oh, how did
Speaker 2: you do that?
Speaker 1: Wow?
Speaker 2: And you're like, oh, it's volatile, and I'm like, oh, okay,
Speaker 2: well you.
Speaker 1: Know, well, look, crypto is an episode in itself because
Speaker 1: it is a very complicated problem. And yeah, it's not
Speaker 1: for everyone personally, it's not my jam. That doesn't mean
Speaker 1: I don't like it or recommend it. It's just for me.
Speaker 1: I'm very much a passive income investor, and I buy
Speaker 1: for the long run and I reinvest everything while I
Speaker 1: can because for me, my ultimate goal, which I've shared
Speaker 1: with everyone on this podcast channel, is to build a
Speaker 1: passive income of over two hundred thousand dollars a year. Well, yeah,
Speaker 1: so you could live off that, Yes, my family could
Speaker 1: live off that. So that represents for me security, independence, freedom, choice,
Speaker 1: even a little bit of luxury. And all I focus
Speaker 1: on is building that number. I don't care about what
Speaker 1: my portfolio is worth. And a crypto doesn't pay a
Speaker 1: passive income because it's purely growth.
Speaker 2: You have to keep your money there.
Speaker 1: Well it's you know, you only make your money when
Speaker 1: you sell now worth two dollars, But until I sell,
Speaker 1: I don't really have that money and it's not paying
Speaker 1: meaning income.
Speaker 2: The dividends that you're talking about. So okay, So if
Speaker 2: you put in five grand and say it paid you
Speaker 2: five hundred, you have that money. But with crypto, it's
Speaker 2: locked away until you take all.
Speaker 1: Your investments out, and then you've got to pay capital
Speaker 1: gains tax on selling it, and so you've got to
Speaker 1: make sure it's liquid. There's a lot to unpack. Oh,
Speaker 1: there's too much to cover today. But you know, looking
Speaker 1: at shares that you can buy shares within seconds, so
Speaker 1: you can be a shareholder by the end of the
Speaker 1: day if you wanted, and there's no stamp duty like
Speaker 1: careers with a property. Okay, you can buy shares with
Speaker 1: as little as five hundred dollars, sometimes even five dollars.
Speaker 1: If you look at the micro investing apps, which I'm
Speaker 1: not personally a fan of.
Speaker 2: Okay, yeah, I downloaded rays.
Speaker 1: So many people say that to me. They've got like
Speaker 1: they've downloaded, like may feel so easy, like nothing done.
Speaker 2: No one uses it.
Speaker 1: Sits there and it's a little bit of money, but
Speaker 1: then nothing's ever invested. Yeah, okay, you can buy shares
Speaker 1: with as little as five hundred dollars, and I personally
Speaker 1: prefer to invest in pulses over one thousand dollars, which yeah,
Speaker 1: one thousand dollars because you pay your brokerage. It's a
Speaker 1: decent amount eating away fee that you paid to actually invest. Now,
Speaker 1: to anyone that says to me, I want to start investing,
Speaker 1: I don't know where to start, what to buy, And
Speaker 1: I say, well, okay, what are you thinking? And they're like,
Speaker 1: I just want I just want lots of shares. I
Speaker 1: like the idea of earning dividends. I like the idea
Speaker 1: of having those dividends have some tax credits. I don't
Speaker 1: want to spend hours and hours all day picking and
Speaker 1: choosing which stock and what industry, and how to buy
Speaker 1: and how much. There's two very simple answers. You then
Speaker 1: look at listed investment companies and examples.
Speaker 2: You know people who to do it for you, who
Speaker 2: know all that.
Speaker 1: Yeah, so a listed investment company is essentially like walking
Speaker 1: into a supermarket and seeing a shopping basket with all
Speaker 1: of your groceries already ready to go. Okay, so you can,
Speaker 1: if you want, walk through the supermarket and go up
Speaker 1: and down all the aisles with your list you can find,
Speaker 1: and it's going to take you an hour to go
Speaker 1: through the supermarket and do all that, Or if you want,
Speaker 1: you can turn up the supermarket and grab one of
Speaker 1: the pre packed shopping trolleys and grab that and go.
Speaker 2: Now you do pay money for that.
Speaker 1: There's an ongoing fee within the product and it's very
Speaker 1: cost effective. And she interviewed one of the CEOs, Angus Kloski,
Speaker 1: from Whitefield, which is one of Australia's oldest investment companies,
Speaker 1: has been going for one hundred years. And you know
Speaker 1: their fee I think is around about zero point three
Speaker 1: to seven.
Speaker 2: So it's not not on what you make well what
Speaker 2: you invest, it's.
Speaker 1: Of what you invest. Yeah, So if I invested one
Speaker 1: hundred thousand dollars in Whitefield, and I cannot stress this
Speaker 1: is not investment advice at all, product advice. But I'm
Speaker 1: using an example. If you were assuming that their fees
Speaker 1: zero point three seven for me to have Whitefield invest
Speaker 1: my money, make all those investment decisions and also manage
Speaker 1: the tax side as well, because they're going to send
Speaker 1: me the statements. I'm paying them three hundred and seventy
Speaker 1: dollars a year.
Speaker 2: That's nothing, That's what I pay my accountant.
Speaker 1: There you go and they're doing everything for you, and
Speaker 1: your portfolio is immediately diversified and you can jump on
Speaker 1: the white Field website. And there are other listed investment
Speaker 1: companies out there as well. Whitefel's just one of them.
Speaker 1: But they will share what's inside the portfolio, and you
Speaker 1: will see they don't share the whole entire portfolio because
Speaker 1: that's obviously their intellectual property, but they'll share the top
Speaker 1: twenty percent holdings and you can actually see, okay, there
Speaker 1: are eighty different companies in this portfolio. So I'm going
Speaker 1: to be owning a little bit of Woolworths. I'm going
Speaker 1: to own a bit of Westpac Bank. I'm going to
Speaker 1: own a bit of Commalk Bank. I'm also going to
Speaker 1: own a bit of Telstra. I'm going and you can
Speaker 1: see it's actually your money is immediately diversified, and if
Speaker 1: you want, you can just use those listed investment companies
Speaker 1: yourself and that don't ever worry about making an investment
Speaker 1: decision or how and when to buy. Just continuously buy
Speaker 1: listed investment companies.
Speaker 2: Okay, so they make the decision.
Speaker 1: Yeah, it's my money, and you know, you do need
Speaker 1: to do your research and you do need to understand
Speaker 1: what you're doing before you're doing it. And I'm sure
Speaker 1: obviously the costs involved because they do charge your fee,
Speaker 1: and it's built into the investment and it comes out
Speaker 1: of the dividends having put your hand in your pocket
Speaker 1: like you are with an investment property. But it is
Speaker 1: a great way of immediately diversifying your money. And also,
Speaker 1: you know, if I had one hundred thousand dollars and
Speaker 1: I went and picked my individual stocks, that's going to
Speaker 1: take me hours and hours and hours to decide. This
Speaker 1: to me seems a no brain. That is a no
Speaker 1: brainer delegation of a very complicated decision.
Speaker 2: And I'm not qualified to make that, as we can
Speaker 2: see exactly.
Speaker 1: And my interview with Peter Thornhill, like he is a
Speaker 1: self made millionaire, multimillionaire, wow, start properly investing in his
Speaker 1: early fifties and I have seen him myself.
Speaker 2: Thanks for me so much about it. Thank you, see,
Speaker 2: but can I ask you a question? Wait you finish
Speaker 2: about well?
Speaker 1: I was gonna say, Peter Thornhill's portfolio is worth over
Speaker 1: ten million dollars. All he's done is save and as
Speaker 1: soon as he's got the money saved, done, ness than
Speaker 1: God invested in listed investment companies. He actually hasn't reinvested
Speaker 1: his dividends. He's taken them as money and then decided
Speaker 1: what to do with it, whether we're paying down debt
Speaker 1: or but it's then you know, borrowed money as well
Speaker 1: along the way against his home, Like he's done different things. Essentially,
Speaker 1: all he's done, though from a surface level, is just
Speaker 1: got money to invest, don't spend it, Just go and
Speaker 1: buy more shares for shares instead of shopping for stuff.
Speaker 1: And that passive income has grown and built over time.
Speaker 1: So what you could potentially do, and I'm talking about
Speaker 1: listed investment companies, you can also do the same with
Speaker 1: another version which has exchanged traded funds, and look, exchange
Speaker 1: traded funds also equally valuable. They're very similar. They just
Speaker 1: have different tax structures because one's a trust structure and
Speaker 1: one's a company structure. But you know, an ETA actually
Speaker 1: allows you to diversify, probably a little bit differently and
Speaker 1: in a more strategic way, because you can buy ETFs
Speaker 1: that folks in the Asian market or the US market,
Speaker 1: or Europe or Australian high yield or.
Speaker 2: Do you like to get that detailed about it in
Speaker 2: your investments or are you like.
Speaker 1: So, I would say sixty percent of my funds are
Speaker 1: in listed investment companies. I prefer the tax structure of
Speaker 1: a listed over an ETF. However, I use ETFs to
Speaker 1: access international investments.
Speaker 2: Because you think something's good.
Speaker 1: Yeah, so it's but it's all very boring and yeah
Speaker 1: we're talking like Vanguard ETF. Yeah, even all cost effective.
Speaker 1: But the tax structure is I think very valuable. And
Speaker 1: the franking credits of the Australian share market, the tax
Speaker 1: credits are really valuable, so particularly when you look at
Speaker 1: the passive income because they can really boost your income
Speaker 1: and typically you know you've got these Australian shares are
Speaker 1: they grow in value and then they also provide an income.
Speaker 1: So if you are investing in companies, which is typically
Speaker 1: industrial shares, which are companies that produce goods and services,
Speaker 1: so people you deal with every day. You know, the
Speaker 1: people that make this podcasting equipment, the shops that sell
Speaker 1: the bed linen and the towels that we use every day.
Speaker 1: Those businesses they paid an income which is the dividend
Speaker 1: to you. And obviously some of that money is taken
Speaker 1: from the all taken from the profits. Some of the
Speaker 1: profits is used to put back into the business, to
Speaker 1: take on new staff, to expand to keep ongoing marketing
Speaker 1: and so forth, whereas some of that money is paid
Speaker 1: as a profit to you through a dividend. So the thing,
Speaker 1: the power of shares over the long run, understanding all
Speaker 1: the risks that come with it, is that it pays
Speaker 1: you this money every single year, and it's not coming
Speaker 1: out of the capital. So say, for example, I invest
Speaker 1: one hundred thousand dollars tomorrow, assuming a five percent dividend,
Speaker 1: I'll get five thousand dollars income from that immediately. Not immediately,
Speaker 1: but it's paid two times throughout the year. Wow, okay,
Speaker 1: and it comes with tax credits which I won't go
Speaker 1: into today. But that one hundred thousand dollars is still there, obviously,
Speaker 1: assuming that hasn't had a market correction or pullback. You know,
Speaker 1: in fact, it may have actually grown in value. Now
Speaker 1: that one hundred thousand is worth one hundred and three
Speaker 1: thousand dollars. But then next year I get my same
Speaker 1: five percent dividend yield or maybe even a little bit more.
Speaker 1: Also know, it's even a little bit less because they
Speaker 1: can reasonably fluctuate. But this is the power of a
Speaker 1: listed investment company because it's diversified, and I might get
Speaker 1: say now five thousand, four hundred dollars, so my passive
Speaker 1: income is growing. So what you could do is start
Speaker 1: buying listed investment companies or ETFs subject within the boundaries
Speaker 1: of your risk profile and getting advice, but reinvest all
Speaker 1: those dividends, and I.
Speaker 2: Don't obtain a passive income right like when you start
Speaker 2: keep putting it back. Put it back in, because the
Speaker 2: passive income grows, yes.
Speaker 1: And you add to the compounding effect. So you put
Speaker 1: that money back into the portfolio. You don't spend it.
Speaker 1: You put it in so that over the next ten
Speaker 1: years you can actually grow that income and it gives
Speaker 1: you that thirty thousand dollars a year. Now, obviously, how
Speaker 1: quickly you want that thirty thousand dollars is going to
Speaker 1: boil down to you. What you put in you'll get
Speaker 1: back out. So you know, you could do different things
Speaker 1: to help maximize your opportunities to grow that inefficient and
Speaker 1: effective way. And you know, the thousand dollars project is
Speaker 1: exactly an example.
Speaker 2: I did read a few pages and I really excited me.
Speaker 2: I never did anything about it, but I liked it.
Speaker 1: But all this is the block where I think a
Speaker 1: lot of people don't know where to get started, so
Speaker 1: you just open up an online share trading account, which
Speaker 1: I can help you with. And once you've got some
Speaker 1: money that you're comfortable investing and investing, say goodbye to
Speaker 1: this money, goodbye, goodbye. This is for my future. I
Speaker 1: don't need this money back. I don't want this money back.
Speaker 1: I want this money to give me an income back,
Speaker 1: a long term income. But then that continue what it's
Speaker 1: very simple like rinse and repeat. Save up some money
Speaker 1: that you're comfortable putting into this by and buy more
Speaker 1: shares and then those dividends continue to grow over time.
Speaker 1: But also with you buying more shares, because you're buying
Speaker 1: more income streams they're getting, it's getting bigger and bigger
Speaker 1: over time.
Speaker 2: So it kind of has two ways of growth and itself,
Speaker 2: yes exactly.
Speaker 1: Hundred percent, you're adding to the income. You're making the
Speaker 1: income grow because you're buying more shares all the time
Speaker 1: because you've got a budget. And it's also growing because
Speaker 1: you are reinvesting. You're not spending that income, you're reinvesting.
Speaker 1: In fact, with some of the listed investment companies, you
Speaker 1: can set up an automatic dividend reinvestment plan well you
Speaker 1: don't even touch it doesn't it just doesn't even make
Speaker 1: it to your bank account. They just use it automatically.
Speaker 1: And the benefit of that is you're dollar cost averaging
Speaker 1: through a moving market. That reduces risk, but also you're
Speaker 1: not paying brokerage along the way. And some listed investment
Speaker 1: companies and stocks or companies offer a discount if you're
Speaker 1: in a reinvestment plan where you'll get a discount to
Speaker 1: what the share. So say a share is trading at
Speaker 1: nine dollars, if you're invested, you're enrolled in a divid
Speaker 1: and reinvestment plan, you get to buy that stock backing
Speaker 1: at a discount of say eight dollars ninety So you're
Speaker 1: getting a little bit of a discount.
Speaker 2: You're buying the same thing, but the incentive to say more, yeah.
Speaker 1: And to keep going. So you've got to be careful
Speaker 1: with diversification if you're not doing this with listed investment companies,
Speaker 1: because you may be purchasing more of one stock in
Speaker 1: comparison to others that aren't necessarily enrolling. Here, you did
Speaker 1: it in reinvestment pattern, which is again why listened miss.
Speaker 2: Why you would go the more structured option.
Speaker 1: But you just keep doing that and don't never worry
Speaker 1: about what the share FOLO is worth. If you're using
Speaker 1: a really well diversified portfolio by tools such as these,
Speaker 1: focus on the income.
Speaker 2: They're those numbers I can barely deal with like that
Speaker 2: my own.
Speaker 1: I mean, well, and that's perfect. So all you do
Speaker 1: is each year, look out, Okay, this year, my portfolio
Speaker 1: paid me a thousand dollars. My goal this year is
Speaker 1: to get that to two thousand dollars or three thousand dollars,
Speaker 1: that passive income. And there are lots of things you
Speaker 1: can do along the way, and you know, this is
Speaker 1: again probably something to unpack another time, but things like
Speaker 1: including you know, gearing strategies such as a margin loan
Speaker 1: or a regular gearing plan where you can now borrow money,
Speaker 1: which comes with lots of risks, but risks that can
Speaker 1: be proactively managed in a smart, intelligent way again to
Speaker 1: help amplify those opportunit unities. Right keeping in mind obviously
Speaker 1: can amplify risks as well, but it's most of which
Speaker 1: are manageable. But these are things that can help speed
Speaker 1: up the process for you. And you know, the thousand
Speaker 1: dollars project is worth two hundred and eighty five thousand
Speaker 1: dollars today. Do you mean that You've to know I've
Speaker 1: built I haven't earned it, I've built it. Oh, so
Speaker 1: this is your share portfolio, Like, that's how much.
Speaker 2: Money is in.
Speaker 1: That's what it's worth today. And I don't really care
Speaker 1: about what it's worth. What I care about is the
Speaker 1: passive income. And that pays me a passive income of
Speaker 1: over sixteen thousand dollars a year without getting out of bed.
Speaker 1: My portfolio makes me sixteen thousand dollars year. Now, I've
Speaker 1: never taken a single dollar out of my savings or
Speaker 1: my space salary.
Speaker 2: You have hustled that might I've hustled it.
Speaker 1: Yeah, I've manifested it.
Speaker 2: Yeah, I know you're open fanky.
Speaker 1: But literally, and there is a small margin loan attached
Speaker 1: to it, which is slowly paying off. But it's like
Speaker 1: forty two thousand dollars coming down all the time, So
Speaker 1: you know it's I guess, so it's not one hundred
Speaker 1: cent cash flow positive, but that passive income is there.
Speaker 1: And you know, I started that project eight years ago
Speaker 1: for the.
Speaker 2: Last four eight years ago, and you have that.
Speaker 1: I've built that over eight years. But this is the
Speaker 1: funny thing. I've actually been really lazy over the last
Speaker 1: four years because I've had two kids. Yeah, We've moved
Speaker 1: house three times in the last four years, and I've
Speaker 1: just had a few things going on, so I haven't
Speaker 1: been able to commit as much as I was doing previously.
Speaker 1: So in fact, it could be worth much more than that.
Speaker 1: But this is the beauty of the fountain to the project.
Speaker 1: It just works with you in what's going on or
Speaker 1: not in your life. You can slow down or you
Speaker 1: can go aggressively, and this is what you can do for.
Speaker 2: You you can get started at. It kind of leads
Speaker 2: into my last.
Speaker 1: Question if I have Yeah, of course a second because.
Speaker 2: Like I'm looking at what I value. Like you know,
Speaker 2: I'm a little bit of a health nut, so like no,
Speaker 2: I spend more on like section that people my age don't.
Speaker 2: I don't chop completely organic, but I like pretoitize it
Speaker 2: pretty well. Yeah, my mum would be mortified. Got a
Speaker 2: voice in my mind, how do you reckon style? I
Speaker 2: need to hustle hard. Clearly, I don't have an emergency
Speaker 2: back up, et cetera.
Speaker 1: What we spoke about, Okay, we don't have You don't
Speaker 1: have an emergency backup yet? Yes, you will I will
Speaker 1: start working on it.
Speaker 2: So how do I approach making justifications for the areas
Speaker 2: that I do want to live in? You know, even
Speaker 2: like applying some of the principles you teach about, like Okay,
Speaker 2: I want to capture wardrobe because like that just does
Speaker 2: work better that things like that where it's like more
Speaker 2: of the everyday side because I'm loving like the big plan.
Speaker 2: Because also at thirty, like you know what you like. Yeah,
Speaker 2: so that's the hardest thing about being older, Like you're
Speaker 2: a little bit more stiffened in like this is my
Speaker 2: routine and it's life giving for me. And so I
Speaker 2: get We're okay with that because I know I could
Speaker 2: spend I don't know, maybe like three hundred dollars. I
Speaker 2: don't know, like I actually don't know how much, and
Speaker 2: I'm a bit scared of thinking about it.
Speaker 1: Okay, well we'll do it together.
Speaker 2: So what happens, Okay, Yeah, budget that is happening is
Speaker 2: the most important.
Speaker 1: But okay, So to answer your question is you don't
Speaker 1: need to justify anything. You need to be true and
Speaker 1: authentic and honest to yourself.
Speaker 2: Because I feel like being true and authentic and honest
Speaker 2: got me chewing through ninety grand Do you know what
Speaker 2: I mean?
Speaker 1: Nobody. I don't think it did, because you know you
Speaker 1: talked about the real, real and captural wardrobe Coldes. That
Speaker 1: wasn't authentic and genuine to you. You're fatally up when
Speaker 1: you spoke to me about the water field and you
Speaker 1: still have that today, but you don't, you don't have
Speaker 1: your hatual wardrobe. So your value system is health, and
Speaker 1: then the investment of yourself that must stay help is wealth. Yeah,
Speaker 1: so that has got to stay. But where it can
Speaker 1: get a bit wobbly and be dangerous to your financial
Speaker 1: wellbeing is when you've got too much going on. You
Speaker 1: need to find a safe balance where you go, Okay.
Speaker 1: For me, I want to spend I value spending on supplements,
Speaker 1: for example. But because I value on spending on supplements,
Speaker 1: it means I just I can't overindulge in a new
Speaker 1: pair of shoes every four months or one month or
Speaker 1: whatever it may be. It means you can have it all,
Speaker 1: but not necessarily at the same time. So you have
Speaker 1: to have the boundaries in place where you go, okay.
Speaker 1: That's what makes my heart seeing, that's what makes feels
Speaker 1: my cup. So anything out there actually is not something
Speaker 1: that I value. So why would I want to be
Speaker 1: disrespectful to how hard I'm working the journey and path
Speaker 1: that I'm on now, and how I'm trying to build
Speaker 1: my life going forward by blowing money on things that
Speaker 1: I actually don't serve me and so my heart in
Speaker 1: the right type of way. So it is really an awareness,
Speaker 1: so an element of mindfulness where you go, Okay, you
Speaker 1: catch yourself buying something and you have to say, hang on,
Speaker 1: would I prefer this one hundred dollars in my emergency
Speaker 1: fund account? Or would I prefer this one hundred dollars
Speaker 1: to be able to buy another parcel of shares and
Speaker 1: what my passive income grow? Or would I like to
Speaker 1: put this one hundred dollars on my feet and buy
Speaker 1: that pair of shoes? Now, just that question itself, it
Speaker 1: gives you that perspective just to hang on, is this
Speaker 1: a good idea? When I've asked myself that actually I'd
Speaker 1: feel much better knowing that that money is going to
Speaker 1: buy some more shares. Or there are times where I'm like, no,
Speaker 1: I really like this. This is a real goodbye and
Speaker 1: I know I'm going to wear this and use this
Speaker 1: and I appreciate it and I love it, so I'm
Speaker 1: gonna buy it. But it's just about balance and knowing
Speaker 1: what makes you feel good and understand that buying shares
Speaker 1: makes you feel really good.
Speaker 2: I'm gonna have to experience that little.
Speaker 1: I think you'll find the dopamine hit for buying shares.
Speaker 2: Is just yeah, yeah, yeah, okay. I don't have to
Speaker 2: try it.
Speaker 1: Because especially when you get your first dividend check or dividend,
Speaker 1: that's gonna be wild. And you see that you've got,
Speaker 1: you know, three hundred and fifty units in listed company
Speaker 1: x y Z, and now because they've just announced the dividends,
Speaker 1: you've now got three hundred and sixty five feelers like
Speaker 1: that is that's shopping for shares.
Speaker 2: So basically, you're saying, create awareness by asking yourself. Because
Speaker 2: I'm working on building back trust with myself, I wonder
Speaker 2: if I can trust myself on the leaks. But I
Speaker 2: also I don't know if I can really outsource those
Speaker 2: decisions because it's only been through trial and error that
Speaker 2: I've really come to realize, Oh, my health is the
Speaker 2: number one, and I do get joy it. You're right,
Speaker 2: I get so much joy out of it, even sometimes
Speaker 2: if I'm asking myself the question, well, Brady, would you
Speaker 2: rather a pair of shoes or in shares? I don't
Speaker 2: know that I can really delay the gratification that I
Speaker 2: am scared that.
Speaker 1: But that's because you've never experienced shares yet. You've never
Speaker 1: experienced saving emergency money yet. You don't have that point
Speaker 1: of comparison yet because you haven't experienced it. Okay, once
Speaker 1: you have your emergency money saved up, you'll be so
Speaker 1: protective of it because you will know how it has
Speaker 1: been to build that money, and how long it's taken,
Speaker 1: and what you've had to learn a long way, and
Speaker 1: you will learn so much about yourself as you build
Speaker 1: that money up.
Speaker 2: So doing will change.
Speaker 1: And then when you buy your shares, you will have
Speaker 1: the biggest smile on your face. You will feel so proud.
Speaker 2: And you and then I give it way all the
Speaker 2: way to orphans.
Speaker 1: Okay, So this is one thing even better. This is
Speaker 1: the power of passive income, particularly from you know, two
Speaker 1: dimensional assets like shares. Imagine this income, this thirty thousand
Speaker 1: dollars a year. Passive income compounds and grows over time.
Speaker 1: It's you know, thirty thousand dollars a year, thirty one
Speaker 1: and a half, and then thirty three and a half,
Speaker 1: and then thirty five and a half and thirty nine
Speaker 1: and forty three, and it gets bigger and we just
Speaker 1: watch it. Imagine when you eventually, one day, as we
Speaker 1: all will pass away, you hand that share portfolio over
Speaker 1: to a charity and that money goes one hundred percent
Speaker 1: to helping families in Tijuana rebuild their lives. This is
Speaker 1: what you can do. There is nothing stopping you. You
Speaker 1: just need to get started. So good. You write down
Speaker 1: and make peace with yourself. And I don't think it's
Speaker 1: tearing it. I know I can see, but you write down,
Speaker 1: you make peace with your past. It is not serving
Speaker 1: you to keep your head looking backwards. You need to
Speaker 1: look forwards. And you replace those thoughts of the past
Speaker 1: with what you were doing now, what you were doing
Speaker 1: in the future. And when you catch yourself feeling guilty
Speaker 1: about maybe thinking which I don't actually did really money tool,
Speaker 1: you go, okay, well our shair portfolio, replace those thoughts
Speaker 1: with what you were doing to fix it. The solutions.
Speaker 1: So doing what actually well doing is how we you
Speaker 1: know trump a compety as well. You know we were
Speaker 1: anxious sometimes doing something helps U serve with anxiety, but
Speaker 1: not that I'm an expert in that area at all.
Speaker 1: But you know, think about Okay, yes I did that,
Speaker 1: but I am now going forward. I'm buying shares, I'm
Speaker 1: building shares. I'm building a passive income that eventually one
Speaker 1: day will go to charity. I am building up emergency money.
Speaker 1: When the moment you've got that emergency money sorted, and
Speaker 1: the moment you have you've bought your first pass of shares,
Speaker 1: yeah you now have. You now know what it feels
Speaker 1: like to have that money, have that peace of mind,
Speaker 1: had that comfort. You will know how easy it is
Speaker 1: and how rewarding and empowering it is to say your
Speaker 1: own shares and have a share port follow and you're
Speaker 1: focusing your energy on building that share portfolio, and you
Speaker 1: earn a passive income, a growing passive income. That's when
Speaker 1: you have that comparison to go, Do I really want
Speaker 1: to buy that new T shirt or that top? Actually no,
Speaker 1: I want more shares income. Okay, but you're trying to
Speaker 1: give yourself a point of comparison without experiencing yet. Okay,
Speaker 1: let's get there.
Speaker 2: You need to experience.
Speaker 1: Okay, the saving your emergency money is a great start, okay,
Speaker 1: so get started there.
Speaker 2: We will, we will, we need to alright.
Speaker 1: This wraps up today's episode of Start Here. Let me
Speaker 1: know what you think about this series where.
Speaker 2: You like I Am Now