Speaker 1: Welcome to How Do They Afford That, the podcast that
Speaker 1: peaks into the financial lives of everyday Australians. I'm Michael Thompson.
Speaker 1: I'm an author and the co host of the business
Speaker 1: news podcast Fear and Greed, And as always I'm with
Speaker 1: Canna Campbell, financial planner and founder of Sugar Mummer TV
Speaker 1: and my co author on our upcoming book I Feel
Speaker 1: So Special twelve Months to Financial Freedom, coming out on
Speaker 1: the first of September. Hello, Canna, good morning.
Speaker 2: How are you.
Speaker 1: I am well, and today we are talking about something interesting.
Speaker 2: Yes, by default, rich people we're talking about.
Speaker 1: That's right, that's right. By default, everything we talk about
Speaker 1: on this show is interesting. But today's a little bit salacious,
Speaker 1: yes as well, because you're right, we're talking about rich people, right,
Speaker 1: And when people think about wealth and wealthy people, it's.
Speaker 2: Truly authentically wealthy people. Yeah, yeah, like mega rich, not
Speaker 2: social media rich.
Speaker 1: Oh yeah. I think we're definitely talking about different things.
Speaker 1: I'm talking about boats and convertibles and all that kind
Speaker 1: of thing. No, but when we are talking about wealth
Speaker 1: and wealthy people, you often have this image of luxury spending, right,
Speaker 1: and that is the social media style of wealth. Right.
Speaker 1: But in reality, there are a lot of things that
Speaker 1: financially successful people don't actually spend money on, right, or
Speaker 1: at least they would think very carefully before they spend
Speaker 1: money on these things. So today we are going to
Speaker 1: put together a big surprise. We're putting together a list
Speaker 1: ten things. If ten is an acceptable number.
Speaker 2: To you, ten is my love language.
Speaker 1: Okay, good, good, don't make it weird. Ten things that
Speaker 1: wealthy people don't waste money on. Go for it. Give
Speaker 1: us number one.
Speaker 2: Cars. Oh really, yeah, Like this constant upgrading of cars,
Speaker 2: it's just doesn't happen. They have a car, they use it,
Speaker 2: they drive it, but it's often owned out right, unless
Speaker 2: it's you know, structured through a business. But there's not
Speaker 2: this like insatiable appetite to constantly upgrade it every couple
Speaker 2: of years and you know, push the kick the can
Speaker 2: down the road with the expensive leases.
Speaker 1: They have their car.
Speaker 2: It serves a purpose, gets them from A to B
Speaker 2: and it doesn't define them.
Speaker 1: Oh that's disappointing, because I would love to you know
Speaker 1: what I would love to do just be able to
Speaker 1: walk into a dealership of a very expensive brand and
Speaker 1: just go take that one, thank you, and make everything lever,
Speaker 1: and I will pay for it in full. But now
Speaker 1: that's what I shouldn't do that, because otherwise that is
Speaker 1: a one way ticket to becoming more poor.
Speaker 2: Well, it's an appreciating asset. The moment you drive it
Speaker 2: out of the dealership, you know, it's dropped in value
Speaker 2: by you know, twenty thirty percent sometimes.
Speaker 1: Okay, And that is why the old the old saying
Speaker 1: goes about buying secondhand and buying good secondhand, because you
Speaker 1: suddenly avoid all of that initial deprecat in the asset.
Speaker 2: Even pre loved, so not pre loved even sorry a
Speaker 2: demonstrated models what I'm talking about.
Speaker 1: Yeah, yeah, because all of a sudden you have a
Speaker 1: car that's got maybe three four five thousand k's on it,
Speaker 1: and you will save a fortune doing it exactly. Okay,
Speaker 1: all right, give us number two on the list of
Speaker 1: things that wealthy people don't waste money on.
Speaker 2: I'm gonna call this stupid debt.
Speaker 1: Stupid.
Speaker 2: Yes, they do not engage. It is not even in
Speaker 2: their vocabulary buy now, pay later, credit cards, even car loans,
Speaker 2: personal loans. This type of debt is toxic. It's a hindrance,
Speaker 2: and it's often used to buy things that actually depreciate
Speaker 2: in value. If they're going to buy something, they pay
Speaker 2: for it in cash or they use their credit card,
Speaker 2: and credit card is obviously paid off in full each month,
Speaker 2: but they it's not necessary. They see it as a
Speaker 2: block something that's going to actually be detrimental to the
Speaker 2: path that they're on and where they're heading.
Speaker 1: I like, I'm interested that the buying now, pay later
Speaker 1: is in that list. By Now pay later is. It's
Speaker 1: not an old thing. It's a relatively recent addition to
Speaker 1: the lending space, and it has taken off right, and
Speaker 1: it can be a bit of a trap.
Speaker 2: I don't have an issue with buy now, pay later
Speaker 2: when it's used responsible, because I know people who are
Speaker 2: on type budgets and they actually use it as a
Speaker 2: budgeting tool. But interestingly, because the rules around by now
Speaker 2: pay Later have really tightened, they've brought some laws in
Speaker 2: to help protect people just good, which is great. The
Speaker 2: personal loan space has actually exploded, so in the first
Speaker 2: three months of this year, Australians have borrowed a record
Speaker 2: five point one billion dollars. Really, yeah, that's scary, and
Speaker 2: that's not for big ticket items like you know what,
Speaker 2: I remember if you go back, say five years, people
Speaker 2: might take out a personal loan to pay for a wedding,
Speaker 2: for example, or a holiday, and I don't agree with
Speaker 2: that at all. But now these personal loans are being
Speaker 2: used to actually help cover the cost of living. So
Speaker 2: people are using it to buy the everyday essentials.
Speaker 1: And is that in part because they were previously doing
Speaker 1: that on buy now, pay later? But the rules have
Speaker 1: tightened a lot, and so they're not able to access
Speaker 1: that credit as easily.
Speaker 2: Yes, on top of the fact that you know, all
Speaker 2: their emergency savings has been eaten, not but the rising
Speaker 2: cost of living, interest rates, inflation and so forth. But yeah,
Speaker 2: it's been used for you know, not for splurges. It's
Speaker 2: been used for survival.
Speaker 1: Buy now, pay later is not so different to good
Speaker 1: old fashioned layby, though, is it. It's probably just a
Speaker 1: slightly more regulated form of that.
Speaker 2: Really. No, see a lay by, you don't get that
Speaker 2: item until you've paid it off, so there's a lot
Speaker 2: more discipline involved. I love layby, like I used to
Speaker 2: do it a.
Speaker 1: Lot, but we still do it.
Speaker 2: Yes, but only I think David Jones, for example, might
Speaker 2: do it, but they really don't promote it because it's
Speaker 2: actually an issue for them because they've got to then
Speaker 2: hold onto that stock. Yeah, and it obviously takes up
Speaker 2: space and storage, and it's the cost of the actual
Speaker 2: administration between taking the payments, taking their regular payments and
Speaker 2: then obviously organizing election. So it is actually a very
Speaker 2: expensive exercise for them, Steuard. That's why most people don't
Speaker 2: do it anymore. Okay.
Speaker 1: And so people that are financially secure, financially successful tend
Speaker 1: to steer clear of what you have described as stupid
Speaker 1: dtepid debt okay, by now pay later, carloans, those kinds
Speaker 1: of things, high interest rates and often not going to
Speaker 1: deliver value for money.
Speaker 2: Okay.
Speaker 1: Number three, loyalty tax are our old friend.
Speaker 2: Yeah, so I was actually having a chat the other
Speaker 2: day about this, and you know, they said it was
Speaker 2: like lazy tax.
Speaker 1: It is so I like you to be just having
Speaker 1: a chat with your friends about loyalty tax or superannuation
Speaker 1: or something. Your friends must just see you come and go,
Speaker 1: oh god it he's going to talk about loyalty tax again.
Speaker 2: Well, actually, I was standing up for people because you know,
Speaker 2: we can very easily you know, put off as you know,
Speaker 2: for well, making those phone calls to try and get
Speaker 2: a better deal. And this person was saying to me, oh, well,
Speaker 2: you know, that's people just being lazy and procrastinating, And
Speaker 2: I said, actually, I used to think that, but now
Speaker 2: I think people are so time poor, you know, finding
Speaker 2: that carving out that time in the day to make
Speaker 2: that phone call or go and see that person, or
Speaker 2: build up the courage to ask for a better deal
Speaker 2: is so overwhelming. So I don't think it's actually a
Speaker 2: matter of laziness. I think it's just amount of time
Speaker 2: and to find time. But this is the mindset switch.
Speaker 2: With wealthy people. They know that, yes, it is going
Speaker 2: to take a bit of time, you know, it's going
Speaker 2: to be half an hour, you know, waiting or having
Speaker 2: to make an appointment to you know, with the mortgage
Speaker 2: brokeer reover it may be. But they know that that
Speaker 2: investment of time is going to be significant savings. And
Speaker 2: you know, you know classic example, you know, calling you know,
Speaker 2: your mortgage broker and getting them to get do ask
Speaker 2: the bank on your behalf for a better deal. It's
Speaker 2: probably going to take half an hour on the phone,
Speaker 2: but that could save you two thousand dollars a year.
Speaker 2: And if you think about well, okay, depending on your
Speaker 2: marginal tax rate, that might be the equivalent of earning
Speaker 2: an extra three thousand dollars a year from the savings
Speaker 2: that you create. So they are aware of the cost
Speaker 2: of their time, but they know that it is well
Speaker 2: worth it. Yeah, and they prioritize it, and they do
Speaker 2: it in a very efficient way. They'll do it, you know,
Speaker 2: whilst driving to work obviously hands free through the car,
Speaker 2: or they'll do it, you know, you know, whilst walking
Speaker 2: the dog. They'll do it in an efficient way because
Speaker 2: they know that their time is cost money and they
Speaker 2: want it. It's an investment, so they want to make
Speaker 2: sure their returns there. You know, they prioritize it and
Speaker 2: they check in on a regular basis.
Speaker 1: Okay, and so in doing so they avoid quite simply
Speaker 1: loyalty tax, which is this tax that essentially you just
Speaker 1: end up paying more because you are a loyal customer,
Speaker 1: whereas new customers coming in through the front door are being.
Speaker 2: Getting a little better deal. And so they notice that
Speaker 2: and they go in head first asking for the same rate.
Speaker 2: Otherwise they'll leave, and they happily will leave because they
Speaker 2: know that their money, if it's not their business, is
Speaker 2: not welcome. I'll take them business s elsewhere, all right.
Speaker 1: So that one boils down to appreciating the value of
Speaker 1: your own time and going Actually, you know what, I
Speaker 1: might save two thousand dollars from making this half hour call.
Speaker 1: That values my time at four thousand dollars an hour exactly.
Speaker 1: That is a very high value phone call.
Speaker 2: It's a good mindset.
Speaker 1: Yeah, yeah, it is, all right. That's number three. Give
Speaker 1: us number four.
Speaker 2: Unsupportive people so limiting, Yes, I know, so not quite well,
Speaker 2: not a financial product as such, but you listen to this.
Speaker 2: The so limiting or even like being protective of your circle,
Speaker 2: you know, of the information that they share. Being careful
Speaker 2: is people who might criticize them or judge them or
Speaker 2: mock their ambition, you know, making them feel bad for
Speaker 2: actually having a crack, having a go, or even people
Speaker 2: who normalize like financial chaos. You know, we've all got
Speaker 2: that friend who just is a hot mess with money.
Speaker 1: And they never pay anything and are always a bit
Speaker 1: behind on everything.
Speaker 2: And it's exactly and often sometimes not often sometimes these
Speaker 2: people we don't play victim a bit. Wealthy people are
Speaker 2: very aware of the energy of people and how and
Speaker 2: I believe this as well, you know, energy is contagious
Speaker 2: and so our habits. So not that they don't socialize
Speaker 2: or have these friends, but they're just a bit more
Speaker 2: protective of their circle and how they expose themselves and
Speaker 2: who they let into their circle. And you know, they're
Speaker 2: very protective as to how they build their tribe. If
Speaker 2: you like making sure that people are encouraging, their inspiring,
Speaker 2: their supportive. They'll challenge you in a healthy way to
Speaker 2: think about things from a different perspective or look at
Speaker 2: what things or you know, where they see a weakness,
Speaker 2: they'll take that constructive criticism on board, you know, in
Speaker 2: a positive manner, so they don't waste their time because
Speaker 2: time is money with people who aren't there, you know,
Speaker 2: to serve them and also obviously reciprocate that back as
Speaker 2: well into their circle and tribe.
Speaker 1: I like that one. That is good actually, and I
Speaker 1: remember seeing a couple of years ago. It is a
Speaker 1: mindset shift, right. A couple of years ago I saw
Speaker 1: somebody they received an invoice from a small business and
Speaker 1: they paid it that same day, right, And it was
Speaker 1: just such a great example to me of building up
Speaker 1: good karma in terms of in terms of that small
Speaker 1: business all of a sudden doesn't need to wait two weeks,
Speaker 1: three weeks, four weeks plus in order to get paid,
Speaker 1: improves their cash flow, etc. And it was no skin
Speaker 1: off this person's nose. To pay that bill straight away
Speaker 1: made all the difference to that small business. It's okay.
Speaker 1: Those are the kind of people that you want to
Speaker 1: have around you that have those good money habits, and
Speaker 1: that can really be a bit of a role model.
Speaker 2: And you know, on that note of role model, I think,
Speaker 2: you know, wealthy people, because they're so aware of this,
Speaker 2: they really have intentionally built upper community around them and
Speaker 2: they've filled them, I guess, surrounded themselves with people who
Speaker 2: were educated and formed and got huge amounts of experiences
Speaker 2: and can share that insight and that growth. And you know,
Speaker 2: when it comes to mentors as well, you know they
Speaker 2: are mental themselves, and you know they have mentors around them.
Speaker 2: But there's one thing I think I speak about this
Speaker 2: maybe in Mindful Money in my book, but there's this
Speaker 2: concept I talk about this imaginary mentor So not all
Speaker 2: of us have access in including me, to these amazing
Speaker 2: people and entrepreneurs and you know, people with highly skilled
Speaker 2: qualifications experience. But if you can access their mindset, their information.
Speaker 2: Through listening to podcasts where they've been interviewed, reading their books,
Speaker 2: perhaps doing some of their courses, or you know, watching
Speaker 2: interviews with them online or on TV, you can learn
Speaker 2: so much about them and actually learn to have them
Speaker 2: as your own imaginary mentor in your life. So you know,
Speaker 2: this is a way I think of actually incorporating this
Speaker 2: into your life and a budget friendly way to become wealthy.
Speaker 2: I like that, And so I did this myself with
Speaker 2: some emotional regulation stuff, and I'd always say to myself,
Speaker 2: what would this person say? Or how would this person
Speaker 2: that's a mentor of mine and that's an imaginary mentor,
Speaker 2: but they exist and they're a real person. How would
Speaker 2: this person react? What would they say? And I've found
Speaker 2: that it really triggered this, this ability for me to
Speaker 2: actually handle a triggering situation with greater resilience.
Speaker 1: Okay, And you can actually manufacture that, essentially, because there
Speaker 1: is enough content out there through podcasts, books, interviews, ted talks,
Speaker 1: all that kind of stuff that you can that you
Speaker 1: can actually create that mentor for yourself. All right, that's
Speaker 1: number four.
Speaker 2: Number five Impressing strangers. So you know, many people spend
Speaker 2: money you know, trying to look wealthy. You know, this
Speaker 2: is the social media flex, you know, dining in this restaurant,
Speaker 2: you know, the shameless, cringe worthy you know Instagram picture
Speaker 2: where it's like one A with their passport and the
Speaker 2: glass of champagne. Like I just make I just find
Speaker 2: that so tacky. Sorry if you've done it, but like,
Speaker 2: but these people just they do not need to prove anything,
Speaker 2: And the irony is the louder. The financial flex, the
Speaker 2: display of wealth often the less actual wealth exists behind it.
Speaker 2: It's a little bit of a smoke and mirrors and
Speaker 2: a facade and you know those things flying first class,
Speaker 2: flying business class, being in the you know, the latest trendiest,
Speaker 2: coolest nightclub or restaurant or bar or wherever it may be,
Speaker 2: your hotel. You know, that's not actually the problem, but
Speaker 2: it's when you know, wealthy people don't need to do
Speaker 2: that to validate themselves.
Speaker 1: Okay, that's simple, That is clear and simple. And I
Speaker 1: have seen so many of those photos of the one
Speaker 1: a or the glass of champagne held up in front
Speaker 1: of the welcome to Emirates or whatever it is. Oh no, no,
Speaker 1: no stop. Okay, that is our first five things that
Speaker 1: wealthy people don't waste money on. Take a quick break,
Speaker 1: come back with the next five. Canna, we are making
Speaker 1: a list. I think this is a pretty good list today,
Speaker 1: not saying that your previous lists have been inferior lists.
Speaker 1: Really digging a hole here? Aren't I number six on
Speaker 1: the list of the things that people don't waste money on?
Speaker 2: What is it? All right? Cheap things that cost more later? Now,
Speaker 2: this isn't necessarily about spending more. It's about spending wisely,
Speaker 2: focusing on quality. You know, so for example, you know,
Speaker 2: a really good pair of shoes, or a really good,
Speaker 2: high quality mattress, or a beautiful cashmere jumper you know
Speaker 2: that freeze really well last years upon years, or even
Speaker 2: like a beautiful leather handbag that's just beautifully made, stands
Speaker 2: the test of time. Yes, it did maybe cost a
Speaker 2: bit more, but it will last ten to fifteen, twenty years,
Speaker 2: versus like a fast fashion that you know, thread might go,
Speaker 2: the leather might scratch, the hardware may tarnish, you know,
Speaker 2: very very quickly. You know, even you know the tools
Speaker 2: that they use every day, or you know the classic
Speaker 2: capsual wardrobe staples, or even you know, looking at advice
Speaker 2: seeing you know, getting the best legal advice or accounting
Speaker 2: advice or financial advice that you can afford for your situation,
Speaker 2: so that you get the job done right, and you
Speaker 2: get it done right the first time, and you minimize
Speaker 2: you know, the potential expense or cost or waste further
Speaker 2: down the track, understanding the total cost of ownership isn't
Speaker 2: as you just upfront, It's about long term returnal investment.
Speaker 1: I love that. Yeah, that is absolutely right that, particularly
Speaker 1: when it comes to financial advice or legal advice or
Speaker 1: one of those ones. The last thing you want to
Speaker 1: do is to have to go and do it all
Speaker 1: again in twelve months time or eighteen months time because
Speaker 1: what you got the first time.
Speaker 2: Was was average or that person wasn't experienced enough or
Speaker 2: qualified enough.
Speaker 1: Yeah, not an expert in the space that you needed exactly. Okay,
Speaker 1: I like that. At number seven.
Speaker 2: All right, financial emergencies that could have been prevented, like
Speaker 2: avoided completely, so emergency money, having the right types and
Speaker 2: levels of insurance protection, having the state planning needs set up,
Speaker 2: being able to properly maintain your home so that you
Speaker 2: don't get leaks, things don't fall apart, get damaged with
Speaker 2: the elements, you know, really taking an intelligent preventative approach
Speaker 2: and action to the things around you that are important
Speaker 2: so that they're protected. And it's not about eliminating surprises,
Speaker 2: but it's about being prepared for them if it happens,
Speaker 2: and having that great peace of mind.
Speaker 1: And acknowledging that it is actually going to cost you
Speaker 1: money in order to be prepared, because insurance is not cheap. No,
Speaker 1: insurance is extremely expensive. I have just come to this
Speaker 1: realization lately when just going back over everything and making
Speaker 1: sure everything is fit for purpose and just going, oh,
Speaker 1: my god, we spend a lot on insurance per year,
Speaker 1: but if I didn't, I would not sleep.
Speaker 2: Tom said the exact same thing the other night because
Speaker 2: his insurance premiums as her mine. I've got up and
Speaker 2: it's now our mortgage, and then followed by our insurance
Speaker 2: is actually the second biggest expense, is now more expensive
Speaker 2: than what we spend on food, And Tom said, can
Speaker 2: we please cut this? I was like, absolutely not. I
Speaker 2: reminded him it was for and why we have to
Speaker 2: have it, and he said, okay, all right, no, of
Speaker 2: course I've got to stay, but it's a non negotiable
Speaker 2: and I wouldn't sleep at night if we if we
Speaker 2: even tried to trim it down.
Speaker 1: And I imagine that that Tom who works with horses
Speaker 1: that have all kinds of professional insurances that he would need,
Speaker 1: like horse kicking insurance.
Speaker 2: Well it is because you know, they were way a
Speaker 2: race and they're also very volatile and temperamental, and some
Speaker 2: are quite deadly. And you know, he's he's a freak.
Speaker 2: He's like a horse whisperer. Like they'll have these like
Speaker 2: deadly animals and he'll have them like licking him. But
Speaker 2: you know, going through the insurance application was the underwriter
Speaker 2: had to do a special interview with him to get
Speaker 2: him in short because.
Speaker 1: They don't know how often he was licked by horse.
Speaker 2: Well do you understand the nature of his job, and
Speaker 2: like how close are you? How many hours a day?
Speaker 2: And of course like he's pretty much on top of them,
Speaker 2: and he's jabbing needles into them, like acupunction needles, but
Speaker 2: he's obviously there from an equine welfare point of view,
Speaker 2: so it's not hurting them. They love him because he
Speaker 2: you know, takes away their pain. But you know, it's
Speaker 2: such a niche job and such a but also so
Speaker 2: high risk and like I've called him, he's like, I
Speaker 2: can't talk. This horse is you know, it is cranky,
Speaker 2: you know, and all his styff have to be so
Speaker 2: careful they can get kicked.
Speaker 1: And the insurance, yeah, is so.
Speaker 2: Necessary, it is non negotiable.
Speaker 1: All right, that's number seven. We are running out of
Speaker 1: time here. Too much wisdom being imparted almost number eight,
Speaker 1: please all right?
Speaker 2: Every opportunity. So wealthy people say no a lot. They
Speaker 2: say no to certain investments, they say no to you know,
Speaker 2: business ideas or opportunities, they say no to how they
Speaker 2: spend their time. You know, they understand that wealth comes
Speaker 2: from actually being selective, focusing on what's important where they're
Speaker 2: heading their goals, not getting distracted by lots of different
Speaker 2: activities and you know, opportunities. They need to come back
Speaker 2: to what are they working on. Is that aligned to
Speaker 2: my goals, my strategy, my value system. And they know
Speaker 2: that every time they say yes to something, it's going
Speaker 2: to cost them somewhere else. You know, they can only
Speaker 2: fit so much on their plate. So, you know, wealthy
Speaker 2: people are really protective and mindful as to what they
Speaker 2: can do, how much they can take on, and whether
Speaker 2: it's right for them or not. And they don't sweat
Speaker 2: it if it's not they you know it's They're very
Speaker 2: comfortable to have that boundary in place and say, look,
Speaker 2: I'm gonna have to pass on that. It's not the
Speaker 2: right opportunity for me. Right now, that was a ripper.
Speaker 1: Okay, number eight delivering gold. Let's go to number nine.
Speaker 2: All right, This one's quick gambling like lottery tickets, scratches
Speaker 2: anything sort of get rich quick scheme. Now, yes, of
Speaker 2: course we all know, Like you know, I think Kerry
Speaker 2: Pack was a big gambler. I love to go to
Speaker 2: Vegas and spend, so I'm.
Speaker 1: Not talking about him.
Speaker 2: Well yeah, but the money he was laying was the
Speaker 2: equivalent of like the loose change and the console of
Speaker 2: our car.
Speaker 1: Right, and they didn't make the money through gambling, through
Speaker 1: other sources, building businesses and take away my lottery ticket.
Speaker 2: Well, do you buy lottery tickets? Yeah, we need to
Speaker 2: talk about this now. Often you buying them?
Speaker 1: So I am very responsible. I only buy it when
Speaker 1: the prize is over a certain amount.
Speaker 2: So when the opportunity is zero point zero zero zero
Speaker 2: zero zero zero zero one percent.
Speaker 1: Of winning, well, I mean the odds aren't going to change.
Speaker 1: Whether the prize is one million dollars or ten million dollars,
Speaker 1: they are still going to be infinitesimally small. But if
Speaker 1: it's ten million dollars plus, I will buy a ticket
Speaker 1: because if somebody wins one hundred million dollars, I would
Speaker 1: like that person too, in theory be me and I
Speaker 1: can't win it if I don't have a ticket.
Speaker 2: Look, I've bought scratches and lottery tickets, but I think
Speaker 2: I've done that for maybe birthday, like as a joke,
Speaker 2: as part of a as part of a present, but no,
Speaker 2: like and I hate, I hate pokis. I have a
Speaker 2: personal experience with an Eggs that gambled, and I've seen
Speaker 2: it firsthands. But no, it's hard, it's a it's it's
Speaker 2: it's a really hard one. We've done a podcast episode
Speaker 2: actually talking exactly about this. But no, they don't they
Speaker 2: don't gamble. Yes, they might gamble, say the casino blackjack poker, yes,
Speaker 2: but that's for entertainment. This isn't about making money. You know,
Speaker 2: it's a boy's pokerne or you know, going to the
Speaker 2: casino and you know, playing roulette or this. It is
Speaker 2: something that's more entertainment. This. They do not gamble when
Speaker 2: it comes to this, where it's not gambling, say with
Speaker 2: a business investment, it's gambling with actual money, where it's
Speaker 2: based on oh, it's not you know, information, data, research history.
Speaker 1: In my defense, my lottery tickets are a form of
Speaker 1: entertainment because you have no idea how much time we
Speaker 1: then spend discussing and analyzing what we would do if
Speaker 1: all of a sudden we won fifty million dollars, and
Speaker 1: it is so much fun. That is entertainment, all right.
Speaker 2: You know what I always say, money needs a landing
Speaker 2: destination when you have to try and manifest it. So
Speaker 2: actually that makes a bit of sense, you know exactly.
Speaker 2: You have a game planning place for when you win
Speaker 2: ten million dollars in the lottery tomorrow.
Speaker 1: I would be able to put it into action within minutes.
Speaker 2: Okay, all right, I will excuse your lottery texts. That
Speaker 2: gets approved in your budget.
Speaker 1: Wonderful, thank you. And would you believe I have actually
Speaker 1: budgeted for that all lottery tickets.
Speaker 2: Yeah?
Speaker 1: Yeah, and so I've I have, and I've rounded it
Speaker 1: up to make sure that I'm not This.
Speaker 2: Is actually what we talk about in our book.
Speaker 1: Twelve Months to financial freedom.
Speaker 2: We talk about the imports of rounding up. We even
Speaker 2: give you actually the formula to use to do your
Speaker 2: budget so that you can afford these things, which in
Speaker 2: your case is lottery tickets, yep, so that you can
Speaker 2: afford it and manage your cash for from paycheck to paycheck. Now,
Speaker 2: that is more of a reason to go and pre
Speaker 2: order book actually, if you want to be able to
Speaker 2: afford these frivolous purchases.
Speaker 1: Sound like lottery tickets.
Speaker 2: Lottery tickets.
Speaker 1: Give us the last one on our list, number ten.
Speaker 2: Keeping up with the joneses, you know, particularly when it
Speaker 2: comes to those impulse purchases and you know, the gadget upgrades.
Speaker 1: Okay, but but right, you can't tell me that people
Speaker 1: who live on the most expensive streets in Melbourne or
Speaker 1: in Sydney aren't just in a competition with each other
Speaker 1: to see who can have the nicest, most flash houses
Speaker 1: and cars and things. They are all keeping up and
Speaker 1: competing with each other, right, I don't think so.
Speaker 2: I think they buy what they need, you know, say
Speaker 2: they need a new security system. They buy the security
Speaker 2: system for their house and what they need and that's it.
Speaker 2: They don't need to go and show and compare and boast.
Speaker 2: They buy what they need and that's it. And I
Speaker 2: think buying anything above that is a waste of money
Speaker 2: and you know, disrespectful to the flow of money, and
Speaker 2: that money could be going elsewhere in their businesses, in
Speaker 2: their investment portfolios, in their retirement plan, or you know,
Speaker 2: the staff that they pay to help support the system
Speaker 2: running them.
Speaker 1: Like, ok all right, yeah, I don't think so, Okay,
Speaker 1: that is a comprehensive list.
Speaker 2: Well, I thank you.
Speaker 1: I really enjoy that. So that is ten things that
Speaker 1: wealthy people don't waste money on cars, constant upgrades of cars,
Speaker 1: stupid debt by now pay later. Carl owns those kinds
Speaker 1: of things. What we've talked about in the past is
Speaker 1: toxic debt, at loyalty tax, unsupportive people, impressing strangers. Number
Speaker 1: six was cheap things that cost more later. Number seven
Speaker 1: of financial emergencies that could have been avoided. Number eight
Speaker 1: they do not waste money and time on every opportunity.
Speaker 1: They know the power of saying no. And number nine
Speaker 1: was gambling and number ten keeping up with the Joneses
Speaker 1: great list. That is fantastic. If we want more information
Speaker 1: from you, where do we find.
Speaker 2: You the best place to contact me. The best place
Speaker 2: to contact me is through Instagram at Sugar Mama TV.
Speaker 1: And you can hear me every day with Sean Aylmer
Speaker 1: on Fear and Greed business news. You can use thank
Speaker 1: you for listening to how do they Afford that? Remember
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Speaker 1: thank you for your company. Join us again next week.
Speaker 2: M