WEBVTT - The BEST Financial Advice for Single Parents 0:00:00.160 --> 0:00:03.199 Hi everyone, and welcome back to another episode of Sugar 0:00:03.279 --> 0:00:07.280 Mamma's Fireplay. I am your host financial planner Canna Campbell, 0:00:07.280 --> 0:00:10.680 and today we're talking about something deeply personal but also 0:00:10.800 --> 0:00:14.560 something incredibly important for some people out there right now 0:00:14.760 --> 0:00:18.520 who really need to hear this, And that is what 0:00:18.520 --> 0:00:20.880 would I do if I had to start all over 0:00:20.960 --> 0:00:26.119 again as a single mum, rebuilding my financial independence from scratch, 0:00:26.400 --> 0:00:30.080 from ground zero, from nothing now becoming a single mum 0:00:30.360 --> 0:00:33.240 or I include single dads in this of course as well. 0:00:33.400 --> 0:00:36.479 Whether it's through choice or circumstance, is one of the 0:00:36.479 --> 0:00:41.200 biggest transitions anyone can go through. It is scary, there 0:00:41.320 --> 0:00:44.800 is uncertainty, there is a huge amount of financial pressure, 0:00:44.880 --> 0:00:48.440 and of course the emotional challenges. But here's what I 0:00:48.520 --> 0:00:51.879 want you to know. This is also an opportunity. And 0:00:51.960 --> 0:00:56.240 I'm speaking from personal experience as well as professional experience. 0:00:56.640 --> 0:01:00.280 This is your chance to build a financial life, life 0:01:00.800 --> 0:01:04.240 on your own terms. A life where you are in 0:01:04.280 --> 0:01:07.200 control you don't need to compromise with anyone else, and 0:01:07.280 --> 0:01:11.759 a life where you make powerful strategic decisions that set 0:01:11.959 --> 0:01:15.760 you up for long term success. And most importantly, a 0:01:15.800 --> 0:01:20.440 life where you feel financially independent. Strong and so proud 0:01:20.600 --> 0:01:23.160 of the journey you've taken. So today I'm going to 0:01:23.200 --> 0:01:26.360 share with you seven key steps that I would take 0:01:26.400 --> 0:01:29.160 if I found myself having to start all over again 0:01:29.319 --> 0:01:32.200 as a single mum. Now these aren't just like ideas 0:01:32.319 --> 0:01:36.520 or theories. These are actually practical, actionable steps that you 0:01:36.600 --> 0:01:39.560 can use right now to help take control of your 0:01:39.600 --> 0:01:43.200 money and shift your headspace as you move towards a 0:01:43.280 --> 0:01:48.040 more financially secure future for yourself but also for your children. 0:01:48.200 --> 0:02:02.600 So let's get started. Step number one. Mindset. So this 0:02:02.840 --> 0:02:05.560 very first step isn't actually about money, which I know 0:02:05.600 --> 0:02:07.480 that may come to you as a surprise, and we 0:02:07.520 --> 0:02:09.400 will get to money in a second, I promise, But 0:02:09.639 --> 0:02:12.799 there's something we need to explore first, go deep with 0:02:13.000 --> 0:02:16.480 before we can flourish. When I became a single mum, 0:02:16.919 --> 0:02:22.680 I had many moments of fear and anxiety and so 0:02:22.880 --> 0:02:26.239 much self doubt and my self worth was pretty much 0:02:26.280 --> 0:02:29.880 in the bin. And on top of that, my ex 0:02:29.960 --> 0:02:34.560 husband laughed in my face. He was so smug, and 0:02:35.120 --> 0:02:38.000 I remember him saying to me that I wouldn't be 0:02:38.040 --> 0:02:41.280 able to survive without him financially, that I was going 0:02:41.320 --> 0:02:44.320 to drown in the debt that I had to take 0:02:44.360 --> 0:02:46.519 on to get out of the marriage, out of the relationship, 0:02:46.720 --> 0:02:49.680 and that I couldn't even take the bins out on 0:02:49.720 --> 0:02:52.720 my own, So how was I possibly going to survive, 0:02:53.000 --> 0:02:57.200 let alone survive successfully. It was horrible. It was such 0:02:57.520 --> 0:03:02.000 a depressing and terrifying moment for myself. But and this 0:03:02.080 --> 0:03:04.480 is the important thing here that comes to mindset, I 0:03:04.639 --> 0:03:08.760 also realized that dwelling in this space wouldn't serve me 0:03:09.040 --> 0:03:13.160 in any positive way whatsoever and was really a complete 0:03:13.200 --> 0:03:15.040 waste of my time and energy. So I had to 0:03:15.120 --> 0:03:18.600 stop giving that theory or that idea or that opinion 0:03:18.800 --> 0:03:23.040 of just his any more fuel. So what did I 0:03:23.080 --> 0:03:26.519 do instead? I shifted my focus as to what I 0:03:26.560 --> 0:03:30.600 could actually control, my perspective, my actions, and my goals, 0:03:30.720 --> 0:03:35.080 really tapping into my thoughts, feelings and actions. So what 0:03:35.200 --> 0:03:38.480 I recommend you do if you are struggling right now, 0:03:38.520 --> 0:03:40.680 and you're in the thick of the unknown, and you're 0:03:40.680 --> 0:03:44.680 feeling self doubt or just anxious right now, can I 0:03:44.840 --> 0:03:48.920 suggest that you write down five to seven simple blessings 0:03:48.920 --> 0:03:51.400 that will come your way with this new chapter in 0:03:51.440 --> 0:03:53.160 your life. Now, I'm going to share with you some 0:03:53.200 --> 0:03:56.120 of my own examples and give you examples to help 0:03:56.160 --> 0:03:59.240 get you started with doing this. So Number one saying 0:03:59.240 --> 0:04:01.840 to yourself this situation is that you're going to force 0:04:01.920 --> 0:04:04.080 me to be better with money. You're now on your 0:04:04.080 --> 0:04:06.960 own two feet. You are completely responsible for yourself. So 0:04:07.000 --> 0:04:09.240 it's going to really make you go deep with this 0:04:09.360 --> 0:04:12.200 financial literacy work and getting smarter with money and making 0:04:12.280 --> 0:04:15.080 great decisions, which is only a good thing that's going 0:04:15.120 --> 0:04:18.039 to serve your long term financial wellbeing. Number two, I 0:04:18.080 --> 0:04:21.640 am setting an incredible example for my children about resilience 0:04:21.680 --> 0:04:25.479 and independence. As your children see you trying to stand 0:04:25.520 --> 0:04:28.480 on your own two feet and eventually standing on your 0:04:28.480 --> 0:04:31.960 own two feet and of course without a doubt, thriving 0:04:32.000 --> 0:04:35.320 on your own two feet, you are in printing, planting 0:04:35.440 --> 0:04:39.200 really powerful seeds in their minds, and they are going 0:04:39.240 --> 0:04:42.000 to look at you with such admiration and they are 0:04:42.000 --> 0:04:46.600 going to learn through example by watching you from the sideline. 0:04:47.160 --> 0:04:50.720 Please never forget that. And of course you can have 0:04:50.760 --> 0:04:53.760 slip ups, you can have setbacks. We all do, including myself. 0:04:53.800 --> 0:04:56.280 You're only normal, but keeping your chin up, your head 0:04:56.320 --> 0:04:59.400 up high, you are an incredible role model to your 0:04:59.480 --> 0:05:04.000 children to never settle or compromise. Number three every decision 0:05:04.320 --> 0:05:06.599 I will make you will make will be one hundred 0:05:06.640 --> 0:05:09.279 percent based on what is best for me and of 0:05:09.320 --> 0:05:13.080 course what is best for you and your family. Feel 0:05:13.120 --> 0:05:16.760 proud about that, Feel empowered by that sense of control 0:05:16.880 --> 0:05:19.920 and direction where you are driving the car now. Number 0:05:19.920 --> 0:05:24.360 four I as in you will become smarter, stronger, and 0:05:24.640 --> 0:05:28.240 a more financially independent woman or man. There are only 0:05:28.320 --> 0:05:30.760 good things that are going to come from this financially. 0:05:30.920 --> 0:05:35.839 Number five, my journey will inspire and empower others around me. 0:05:36.040 --> 0:05:39.360 As I always like to say, energy is contagious. As 0:05:39.480 --> 0:05:43.640 people see you doing the work, having a crack, standing 0:05:43.640 --> 0:05:47.279 on your own two feet, dealing with setbacks and challenges 0:05:47.360 --> 0:05:50.520 with grace, with dignity. Whether you realize it or not, 0:05:51.200 --> 0:05:55.400 you are and you will inspire people around you. You 0:05:55.440 --> 0:05:57.960 will see shifts in people. They may not necessarily bring 0:05:58.040 --> 0:06:00.359 it to your attention, but trust me, they want and 0:06:00.400 --> 0:06:04.920 they're watching with incredible admiration. You are a powerful being. 0:06:05.120 --> 0:06:09.039 Please don't ever forget that. So by investing time exploring 0:06:09.040 --> 0:06:12.039 your mindset, it helps set the foundation for everything else 0:06:12.080 --> 0:06:14.799 in your life, and it will allow you to shift 0:06:14.920 --> 0:06:17.880 from fear to empowerment. In fact, help you snap out 0:06:17.880 --> 0:06:21.560 of those toxic, negative, self degrading chats where you have 0:06:21.680 --> 0:06:24.400 with yourself and allow you to take back control. Now, 0:06:24.640 --> 0:06:28.320 once you've done this, you've written down those blessings. You 0:06:28.400 --> 0:06:30.440 might want to take a moment to print it off 0:06:30.600 --> 0:06:32.880 or to handwrite it. Put it somewhere where you can 0:06:32.920 --> 0:06:35.599 read it on a regular basis to remind you whenever 0:06:35.640 --> 0:06:38.280 you're having a bad day or a bad moment, go 0:06:38.320 --> 0:06:40.919 to it, reread it to help you find your inner 0:06:41.000 --> 0:06:44.400 strength again. Step number two time to create a budget 0:06:44.440 --> 0:06:47.320 and a cash flow system. So once you've sorted out 0:06:47.400 --> 0:06:50.080 your mindset and you realize, actually I feel a little 0:06:50.080 --> 0:06:52.279 bit stronger today, or I feel a little bit more resilient, 0:06:52.440 --> 0:06:55.320 or I feel a little bit more hopeful. Amazing, great, 0:06:55.440 --> 0:06:57.480 I'm so proud of you, we now need to do 0:06:57.560 --> 0:07:00.000 some more practical work, and that is create a budget 0:07:00.080 --> 0:07:02.880 and a cash flow system. Now, the goal here when 0:07:02.880 --> 0:07:05.400 you're doing your budget, and this particular step is not 0:07:05.480 --> 0:07:09.240 about cutting costs yet. We will come to that, I promise, 0:07:09.360 --> 0:07:12.680 But right now doing a budget is focused around gaining 0:07:12.760 --> 0:07:15.800 clarity in your life, finding out exactly how much it 0:07:15.840 --> 0:07:19.080 costs you to live right now, where exactly is your 0:07:19.160 --> 0:07:21.640 money going does it match your value system and of 0:07:21.680 --> 0:07:24.960 course what are the absolute essentials in your life that 0:07:25.040 --> 0:07:27.280 you need right now to live and for your children 0:07:27.320 --> 0:07:30.880 to live the non negotiables. Now by sitting down and 0:07:30.960 --> 0:07:34.440 mapping this out, and I strongly recommend you don't just 0:07:34.440 --> 0:07:36.679 sit down and write down your expenses, you actually cross 0:07:36.760 --> 0:07:39.520 references against the truth and reality of your bank transactions 0:07:39.560 --> 0:07:42.040 and your credit card statements, because this will then allow 0:07:42.080 --> 0:07:44.840 you to have a crystal clear understanding of what your 0:07:44.960 --> 0:07:48.880 financial reality really looks like. That is exactly how much 0:07:48.920 --> 0:07:52.720 money we really do spend on a daily basis, weekly basis, 0:07:52.720 --> 0:07:56.280 monthly basis, quarterly basis, and of course annual basis. You 0:07:56.280 --> 0:07:58.520 need to go back a full three hundred and sixty 0:07:58.520 --> 0:08:01.760 five days of the year see the truth and reality 0:08:01.760 --> 0:08:04.080 of how much money you need. And I want to 0:08:04.120 --> 0:08:08.520 say this, a budget is not about restriction, It's about empowerment. 0:08:08.600 --> 0:08:10.600 It puts you back in the driving seat so you 0:08:10.680 --> 0:08:14.680 know exactly what you need financially to survive, and of 0:08:14.680 --> 0:08:17.640 course what areas need your attention and how can you 0:08:17.680 --> 0:08:19.960 start managing your cash flow in a proactive way so 0:08:20.000 --> 0:08:22.640 that you're always resilient and you can of course make 0:08:22.680 --> 0:08:25.559 adjustments at any time that you like. The other great 0:08:25.600 --> 0:08:27.520 benefit of budgets and I think a lot of people 0:08:27.640 --> 0:08:29.880 forget about this and they don't discover this until they've 0:08:29.880 --> 0:08:32.520 actually done it properly, and that is doing a budget 0:08:32.640 --> 0:08:37.520 helps you avoid that financial overwhelm because a budget allows 0:08:37.520 --> 0:08:40.400 you to know your numbers. You get crystal clear about 0:08:40.400 --> 0:08:42.720 what you need and what you spend your money on. 0:08:43.320 --> 0:08:46.560 And because of that, you can then make informed decisions 0:08:46.960 --> 0:08:51.640 rather than reacting emotionally to money stress. Now, when you're 0:08:51.640 --> 0:08:54.080 doing your budget, you also need to build a cash 0:08:54.160 --> 0:08:57.080 flow system. A budget is great, but it's only half 0:08:57.200 --> 0:08:59.640 the work. A budget if you're not following it and 0:08:59.679 --> 0:09:02.240 stick to it, is really just a piece of paper. 0:09:02.440 --> 0:09:04.960 It's an intention, but you're not actually following it. So 0:09:05.200 --> 0:09:07.480 this is why I recommend you build a cash flow 0:09:07.520 --> 0:09:09.840 system where you set up a system that gives you 0:09:09.880 --> 0:09:13.480 clear instructions as to what money goes into what account 0:09:13.960 --> 0:09:17.840 and what accounts represent your stockpiling money for those ad 0:09:17.880 --> 0:09:21.640 hoc or regular expenses like kid's birthday parties, Christmas time, 0:09:21.720 --> 0:09:25.400 when your car regio is to strata expenses, council rates, 0:09:25.600 --> 0:09:28.040 energy bills, those bills that kind of catch us out 0:09:28.080 --> 0:09:30.920 by surprise, as well as things like emergency money. Now, 0:09:31.000 --> 0:09:33.240 if you have never done a budget before, or you 0:09:33.559 --> 0:09:35.439 have done a budget before but you struggle to stick 0:09:35.480 --> 0:09:37.679 to it, or you need help in actually building your 0:09:37.720 --> 0:09:39.960 own cash flow system, can I remind you that I 0:09:40.000 --> 0:09:42.960 have the Sugar Mamma Budget and cash Flow Academy. This 0:09:43.080 --> 0:09:45.240 is where I teach you how to do a budget. 0:09:45.280 --> 0:09:47.840 I give you all the tools and resources and templates 0:09:47.840 --> 0:09:50.599 to build your own, but then those templates help you 0:09:50.720 --> 0:09:52.680 build the cash flow system that it gives you the 0:09:52.720 --> 0:09:55.320 exact instructions as to how much money goes into what 0:09:55.360 --> 0:09:58.560 accounts and how to actually track your expenses throughout the 0:09:58.840 --> 0:10:02.320 in a proactive way so that when, for example, Christmas 0:10:02.360 --> 0:10:05.200 time comes, you've got two thousand dollars ready there to 0:10:05.240 --> 0:10:07.760 spend on all the things that you want to at 0:10:07.760 --> 0:10:10.800 that time of the year. Now, that cash flow course 0:10:11.000 --> 0:10:13.200 is called the Sugar Mamma Budget and cash Flow Academy 0:10:13.360 --> 0:10:16.240 actually includes a one on one zoom session with me 0:10:16.440 --> 0:10:19.160 where we can spend up to an hour if needed, 0:10:19.360 --> 0:10:22.480 going through absolutely everything looking at your expenses and see 0:10:22.520 --> 0:10:25.080 if we can find any additional saving ideas, and of 0:10:25.120 --> 0:10:29.160 course includes workbook videos podcast and those templates. Now in 0:10:29.240 --> 0:10:31.640 that workbook there are over one hundred ideas to help 0:10:31.640 --> 0:10:33.640 you save money and over one hundred ideas to help 0:10:33.640 --> 0:10:35.520 you hustle extra money. So I'm just going to not 0:10:35.559 --> 0:10:37.679 talk about that again, but just remind you that I 0:10:37.720 --> 0:10:40.520 am there as well as some amazing resources to help 0:10:40.559 --> 0:10:42.640 you do your budget and cash flow. And you don't 0:10:42.640 --> 0:10:44.600 necessarily need to be single parent, by the way, to 0:10:44.640 --> 0:10:47.559 do this. It's open to absolutely everyone, so it's linked 0:10:47.559 --> 0:10:49.760 in the podcast notes for you. All right, So, now 0:10:49.760 --> 0:10:52.480 that you've done your budget, you've built your cash flow system, 0:10:52.640 --> 0:10:56.760 let's move on to step number three, your financial stock take. 0:10:56.960 --> 0:11:00.520 This is where we start your point of change. So 0:11:00.640 --> 0:11:03.679 to do a financial stock take, we need to document 0:11:03.880 --> 0:11:11.080 absolutely everything your assets, which includes savings, emergency savings, superannuation, 0:11:11.600 --> 0:11:16.439 any investments that you might have like shares, bonds, term deposits, 0:11:16.720 --> 0:11:19.800 investment properties, and of course a property that you might own, 0:11:19.840 --> 0:11:22.600 such the family home. You also need to document your 0:11:22.600 --> 0:11:26.559 liabilities credit card, debt, buy now, pay later, any illegal 0:11:26.600 --> 0:11:31.920 fees that are outstanding, mortgages, investment loans, margin loans, all 0:11:32.040 --> 0:11:34.480 of those financial commitments that you have in your life, 0:11:34.520 --> 0:11:38.360 including car leases and car repayments. You also need to 0:11:38.400 --> 0:11:42.320 document in your financial stock take your income sources. How 0:11:42.400 --> 0:11:45.360 much money do you earn through your salary. Let's write 0:11:45.400 --> 0:11:47.840 down the net figures here, so we're getting crystal clear 0:11:48.200 --> 0:11:50.199 not setting ourselves up for failure. We also need to 0:11:50.240 --> 0:11:53.440 write down any child support or spousal support that we're 0:11:53.440 --> 0:11:56.040 potentially entitled to or are entitled to that we've got 0:11:56.160 --> 0:11:59.400 confirmation from a lawyer and from our spousals or ex partners. 0:11:59.559 --> 0:12:03.240 Of course, any government benefits and any side hustle money 0:12:03.240 --> 0:12:05.640 that you potentially have going on in your life right 0:12:05.640 --> 0:12:09.640 now now. I will admit this is confronting, and it 0:12:09.679 --> 0:12:12.160 is at times a little bit overwhelming and can fill 0:12:12.200 --> 0:12:15.079 you with anxiety. But here is the exciting part. This 0:12:15.240 --> 0:12:19.720 is your starting point and from here everything can grow 0:12:20.040 --> 0:12:22.320 for you. I want you to think about this like 0:12:22.520 --> 0:12:25.880 planting a seed, say a seed to grow some a 0:12:25.920 --> 0:12:30.080 fruit tree. Right now, that ceiling might feel and look 0:12:30.320 --> 0:12:32.880 really small when you're looking at your financial stock take, 0:12:33.040 --> 0:12:35.280 but that's okay. I still want you to go ahead 0:12:35.320 --> 0:12:38.240 and plant it, and over time, I want you to 0:12:38.240 --> 0:12:42.440 trust me as you nurture it with giving that ceiling sunlight, 0:12:42.800 --> 0:12:45.280 the right amount of water you protect it from pests. 0:12:45.800 --> 0:12:48.520 You make sure that you've planted in that fertile soil, 0:12:48.559 --> 0:12:52.239 which of course is your healthy new mindset. This will expand, 0:12:52.559 --> 0:12:55.960 this seiling will sprout and start to grow, and over 0:12:56.000 --> 0:12:59.559 time it will thrive and give you an abundant supply 0:12:59.800 --> 0:13:03.480 of healthy, nutritious fruit. So this is the equivalent of 0:13:03.520 --> 0:13:08.320 giving your finances the right financial strategies through getting good 0:13:08.360 --> 0:13:11.360 quality advice the more a licensed financial planner of course, 0:13:11.600 --> 0:13:16.240 and educating yourself, making intelligent, proactive decisions with your money 0:13:16.440 --> 0:13:19.960 that are in alignment to your goals, your short term goals, 0:13:19.960 --> 0:13:22.880 your medium term goals, and your long term goals. Learning 0:13:22.880 --> 0:13:26.120 how to do things efficiently with your money. Also, by 0:13:26.200 --> 0:13:30.640 doing a financial stock take and correctly documenting your financial 0:13:30.679 --> 0:13:34.400 starting point, you're also creating a really powerful source of 0:13:34.520 --> 0:13:38.000 motivation in your life. You see, every time you check 0:13:38.040 --> 0:13:41.520 back in to that financial stock take and see how 0:13:41.559 --> 0:13:44.800 far you've come since starting, and whether it's growing your 0:13:44.840 --> 0:13:48.280 savings balance, or paying down debt or even just simply 0:13:48.559 --> 0:13:52.280 increasing your super you are going to feel an incredible 0:13:52.360 --> 0:13:56.800 sense of progress, self worth, confidence, faith and hope in 0:13:56.840 --> 0:14:00.440 your life, which a lot of single parents need to 0:14:00.480 --> 0:14:03.200 help keep them going, and of course this is going 0:14:03.240 --> 0:14:06.880 to help you become so much better at being patient 0:14:07.080 --> 0:14:09.720 those frustrating times when you're looking at that ceiling thinking 0:14:09.800 --> 0:14:12.200 I've planted you. I haven't seen anything yet, I haven't 0:14:12.200 --> 0:14:15.080 seen any sprout. By tracking your progress, you will know 0:14:15.280 --> 0:14:18.600 it's happening. The roots go down deep first before it 0:14:18.640 --> 0:14:22.640 starts to sprout, so never forget that. So I want 0:14:22.640 --> 0:14:26.720 to remind you stock take isn't necessarily just about the numbers. 0:14:27.080 --> 0:14:31.320 It is about seeing your financial future take shape reshape 0:14:31.600 --> 0:14:35.160 in real time. And again, if you're looking at this 0:14:35.280 --> 0:14:39.000 financial stock take like that ceiling looking really small and low, 0:14:39.280 --> 0:14:41.880 you can take a huge amount of comfort and pride 0:14:41.960 --> 0:14:44.480 knowing that it is going to get better from this 0:14:44.600 --> 0:14:49.360 point going forward. Step number four. Super the key to 0:14:49.520 --> 0:14:53.400 long term financial independence. I need to be honest with you. 0:14:53.720 --> 0:14:57.080 A lot of people get tempted to completely neglect their super, 0:14:57.160 --> 0:15:02.080 particularly in stressful times life a separation in a divorce, 0:15:02.360 --> 0:15:06.520 will becoming a single parent. A lot of women retire 0:15:06.600 --> 0:15:09.720 in poverty because they don't prioritize their super, and they 0:15:09.760 --> 0:15:12.800 don't prioritize their super soon enough, I'm not going to 0:15:12.880 --> 0:15:15.920 bore you or make you disturbed by the statistics, but 0:15:15.960 --> 0:15:19.000 please know it is frightening, but I am here to 0:15:19.080 --> 0:15:22.400 serve you the truth because I genuinely care about you 0:15:22.520 --> 0:15:26.320 and your financial future. So please know that your super 0:15:26.760 --> 0:15:30.800 is your key to true financial independence. You will never 0:15:31.040 --> 0:15:35.400 regret hearing this and taking this seriously. Superinnuation means that 0:15:35.520 --> 0:15:38.240 when you retire, you do not have to rely on 0:15:38.440 --> 0:15:43.160 anyone else, not your children, not the government, not a 0:15:43.200 --> 0:15:46.400 partner or a future partner or a previous partner. You 0:15:46.440 --> 0:15:50.320 will have your own source of financial security, but you've 0:15:50.360 --> 0:15:53.280 got to pay attention, nurture it, and care for it 0:15:53.360 --> 0:15:57.200 in the right type of way today. Do not delay. 0:15:57.360 --> 0:15:59.640 So here is what I would do if I was 0:15:59.680 --> 0:16:03.360 startying from scratch. Number one is obviously check my superannuation 0:16:03.640 --> 0:16:08.360 account balance. I would look at exactly how much I have, 0:16:09.160 --> 0:16:12.680 making sure that there's no missing superannuation floating around in cyberspace, 0:16:12.720 --> 0:16:15.040 and it's very easy to do a quick search. But 0:16:15.120 --> 0:16:17.560 I would also go and check and see where is 0:16:17.600 --> 0:16:23.400 my superannuation money invested. Remember, your superannuation isn't a savings account. 0:16:23.480 --> 0:16:26.000 It is an investment portfolio that is locked for your 0:16:26.120 --> 0:16:29.040 long term benefit. So have a look at where it 0:16:29.120 --> 0:16:32.240 is invested, and think about doing a risk profile and 0:16:32.280 --> 0:16:34.680 getting some advice if you need to make changes. A 0:16:34.720 --> 0:16:36.840 lot of people end up in the default balance fund, 0:16:37.000 --> 0:16:40.120 and if you are a balanced investor, that might be 0:16:40.200 --> 0:16:41.960 right for you, but you may do a risk profile 0:16:41.960 --> 0:16:44.880 and realize, actually, I'm not a balanced investor. I'm a 0:16:44.880 --> 0:16:47.200 growth investor or high growth. That is when you need 0:16:47.240 --> 0:16:49.600 to get advice and look at potential changes to that 0:16:49.720 --> 0:16:52.320 money to help make sure that it grows as efficiently 0:16:52.440 --> 0:16:57.600 as possible for you. Number two within super work backwards, 0:16:58.440 --> 0:17:01.680 have a think about what you want to retire on. 0:17:02.360 --> 0:17:04.520 How much money do you need per year? And you 0:17:04.560 --> 0:17:08.200 should know how much you need because you've done your budget. 0:17:08.359 --> 0:17:11.600 So if you're living expenses where say fifty thousand dollars 0:17:11.640 --> 0:17:13.800 a year or sixty thousand dollars a year, you know 0:17:13.840 --> 0:17:16.280 that you need at least that because you potentially have 0:17:16.320 --> 0:17:18.879 to factor in some income tax as well to be 0:17:18.960 --> 0:17:22.679 able to retire under your current lifestyle. You also want 0:17:22.720 --> 0:17:24.760 to think about what age do I want to retire 0:17:25.240 --> 0:17:28.240 and how long do I expect my retirement to go for. 0:17:28.520 --> 0:17:30.800 You know, the current life expectancy for a woman who's 0:17:30.840 --> 0:17:33.440 around about eighty five, so if you're retiring at age 0:17:33.480 --> 0:17:36.879 sixty five, you need at least twenty years worth of 0:17:36.960 --> 0:17:40.480 living expenses available to you so that you don't run 0:17:40.520 --> 0:17:44.119 out of money, and that's under today's medical technology. My 0:17:44.240 --> 0:17:47.560 advice is to think about maybe estimating say a thirty 0:17:47.640 --> 0:17:51.000 or even a thirty five year retirement plan. You've got 0:17:51.080 --> 0:17:54.160 to work backwards, and there are some brilliant superannuation account 0:17:54.160 --> 0:17:57.399 calculators on the Sugar Mumba website as well as I 0:17:57.520 --> 0:18:01.880 strongly recommend using the NOL Whittaker retirement calculators as well. 0:18:01.920 --> 0:18:03.480 The combination of the two will give you a really 0:18:03.520 --> 0:18:06.639 good idea. And of course when you've got that, you 0:18:06.680 --> 0:18:11.159 can start thinking about what additional voluntary contributions do I 0:18:11.200 --> 0:18:13.919 need to start thinking about and getting advice on to 0:18:13.960 --> 0:18:16.000 help make sure that I get that figure. I want 0:18:16.000 --> 0:18:17.919 to give you a quick example to help get you 0:18:17.960 --> 0:18:20.720 started and realizing exactly how much money you need to 0:18:20.720 --> 0:18:23.040 be thinking about. You need in super to be financially 0:18:23.080 --> 0:18:26.119 independent as a single parent. So I ran some numbers 0:18:26.160 --> 0:18:29.200 recently for a keynote event that I did around financial 0:18:29.240 --> 0:18:32.120 literacy for a corporate and I looked at how much 0:18:32.160 --> 0:18:34.200 would someone need if they want to retire on sixty 0:18:34.240 --> 0:18:38.639 thousand dollars per annum in today's dollars in twenty years time, 0:18:39.160 --> 0:18:43.600 ensuring that that money lasted twenty five years. Now, as 0:18:43.640 --> 0:18:47.560 a very rough guide, you would need in excess of 0:18:48.000 --> 0:18:51.480 one point four million dollars in super if you want 0:18:51.520 --> 0:18:55.719 to retire on sixty thousand dollars in today's figures. So 0:18:56.160 --> 0:18:58.320 if you're thinking, oh, I only need about six hundred 0:18:58.359 --> 0:19:00.800 thousand or eight hundred thousand, I get you to stop 0:19:00.880 --> 0:19:03.159 right there and actually go and check your numbers and 0:19:03.200 --> 0:19:05.680 run them. It is most likely you're going to need 0:19:05.800 --> 0:19:09.199 in excess of a million dollars in superannuation. So the 0:19:09.200 --> 0:19:11.320 sooner you get started, the easier this is going to 0:19:11.359 --> 0:19:13.480 be to get there. Next thing I want to talk 0:19:13.480 --> 0:19:17.359 to you about within the conversation of superinnoation is thinking 0:19:17.359 --> 0:19:22.320 about real estate versus super. Now, for many single parents, 0:19:22.400 --> 0:19:26.480 in particular single mums, owning a home is a very 0:19:26.520 --> 0:19:30.160 important financial goal to them. And I understand this completely, 0:19:30.240 --> 0:19:32.639 and this was something that was really important to me 0:19:32.720 --> 0:19:36.439 because it provided a sense of security and stability for 0:19:36.560 --> 0:19:41.040 my son Rocko. But here's the dilemma and a question 0:19:41.119 --> 0:19:44.399 that I recommend you ask yourself. If you're in this 0:19:44.440 --> 0:19:47.399 position right now, if you were to pour all of 0:19:47.440 --> 0:19:51.520 your resources into home ownership, are you honestly going to 0:19:51.600 --> 0:19:54.280 have enough superannuation in order to be able to fund 0:19:54.520 --> 0:19:59.160 your retirement and your required retirement lifestyle. If you own 0:19:59.200 --> 0:20:01.679 a home but you you have no passive income to 0:20:01.760 --> 0:20:04.160 live off, how are you going to afford to live 0:20:04.200 --> 0:20:07.879 once you stop working? And to take this conversation even further, 0:20:08.000 --> 0:20:10.439 because I care about you, can you honestly say that 0:20:10.480 --> 0:20:11.840 you are going to be able to pay off that 0:20:11.960 --> 0:20:16.440 home in time before you actually retire, and more importantly, 0:20:16.560 --> 0:20:18.800 still give yourself enough time to make sure you've got 0:20:18.920 --> 0:20:22.320 enough money in superannuation. Most banks put people on a 0:20:22.359 --> 0:20:25.880 thirty year mortgage term. So if you are say forty 0:20:26.560 --> 0:20:29.399 or in your mid forties and you're looking at buying 0:20:29.400 --> 0:20:31.960 a home and taking out a mortgage, that mortgage is 0:20:31.960 --> 0:20:34.960 most likely going to be on thirty years. So will 0:20:35.000 --> 0:20:38.879 you have paid your mortgage off by age seventy five? 0:20:39.600 --> 0:20:41.320 This is the question I want you to ask yourself. 0:20:41.400 --> 0:20:44.200 And if you are comfortable working until age seventy five, 0:20:44.320 --> 0:20:46.240 at age seventy five, are you're going to have enough 0:20:46.280 --> 0:20:48.479 money in superannuation? Are you going to have in excess 0:20:48.520 --> 0:20:51.680 of one point four million dollars in superannuation, if not more. 0:20:51.760 --> 0:20:54.440 You need to sit down and think about this carefully 0:20:54.520 --> 0:20:57.159 before you sign the dodded line. And of course this 0:20:57.200 --> 0:21:00.440 is when you always go and get financial advice from 0:21:00.480 --> 0:21:05.400 a licensed financial planner, and for some renting whilst prioritizing 0:21:05.440 --> 0:21:08.719 their super and of course investing along the way in 0:21:08.760 --> 0:21:13.280 combination for those long term cash flow purposes may in 0:21:13.320 --> 0:21:16.320 fact be a far better option than buying a home 0:21:16.359 --> 0:21:18.439 and taking thirty years to then pay it off, to 0:21:18.480 --> 0:21:20.800 then realize you've got barely anything in super and of 0:21:20.840 --> 0:21:23.640 course zero investments to fall back on. You never want 0:21:23.640 --> 0:21:25.600 to be in a situation where you are forced to 0:21:25.600 --> 0:21:27.920 maybe sell down the home in order to be able 0:21:27.960 --> 0:21:29.760 to live off. I want you to have the best 0:21:29.760 --> 0:21:31.479 of both walls. I want you to have the freedom, 0:21:31.640 --> 0:21:34.560 security and stability of a pacif income, and if you're 0:21:34.600 --> 0:21:37.080 in a position where you can actually afford to do both, 0:21:37.160 --> 0:21:39.359 that is, pay off the home and build up your 0:21:39.400 --> 0:21:42.640 super and maybe even a vest as well. Brilliant. I'm 0:21:42.680 --> 0:21:44.840 so glad you stopped at this point and checked that 0:21:45.200 --> 0:21:47.680 before you made those decisions. And I want to say 0:21:47.680 --> 0:21:50.399 this whilst I kept in the family home and I 0:21:50.480 --> 0:21:53.640 bought my share of the family home from my previous partner. 0:21:53.760 --> 0:21:56.640 This isn't about pushing you from one decision to the other. 0:21:57.000 --> 0:22:00.359