WEBVTT - Ten things wealthy people don't waste money on 0:00:01.600 --> 0:00:04.000 Welcome to How Do They Afford That, the podcast that 0:00:04.080 --> 0:00:07.600 peaks into the financial lives of everyday Australians. I'm Michael Thompson. 0:00:07.680 --> 0:00:09.360 I'm an author and the co host of the business 0:00:09.440 --> 0:00:12.399 news podcast Fear and Greed, And as always I'm with 0:00:12.480 --> 0:00:15.800 Canna Campbell, financial planner and founder of Sugar Mummer TV 0:00:16.280 --> 0:00:19.960 and my co author on our upcoming book I Feel 0:00:20.000 --> 0:00:24.439 So Special twelve Months to Financial Freedom, coming out on 0:00:24.520 --> 0:00:27.600 the first of September. Hello, Canna, good morning. 0:00:27.640 --> 0:00:28.120 How are you. 0:00:28.240 --> 0:00:32.640 I am well, and today we are talking about something interesting. 0:00:34.200 --> 0:00:36.880 Yes, by default, rich people we're talking about. 0:00:37.000 --> 0:00:39.440 That's right, that's right. By default, everything we talk about 0:00:39.440 --> 0:00:41.880 on this show is interesting. But today's a little bit salacious, 0:00:42.000 --> 0:00:46.080 yes as well, because you're right, we're talking about rich people, right, 0:00:46.479 --> 0:00:50.600 And when people think about wealth and wealthy people, it's. 0:00:50.520 --> 0:00:54.400 Truly authentically wealthy people. Yeah, yeah, like mega rich, not 0:00:54.720 --> 0:00:55.920 social media rich. 0:00:56.280 --> 0:00:59.000 Oh yeah. I think we're definitely talking about different things. 0:00:59.040 --> 0:01:01.560 I'm talking about boats and convertibles and all that kind 0:01:01.600 --> 0:01:03.400 of thing. No, but when we are talking about wealth 0:01:03.440 --> 0:01:07.440 and wealthy people, you often have this image of luxury spending, right, 0:01:07.440 --> 0:01:11.520 and that is the social media style of wealth. Right. 0:01:12.080 --> 0:01:16.039 But in reality, there are a lot of things that 0:01:16.160 --> 0:01:23.120 financially successful people don't actually spend money on, right, or 0:01:23.120 --> 0:01:25.880 at least they would think very carefully before they spend 0:01:26.000 --> 0:01:28.480 money on these things. So today we are going to 0:01:28.520 --> 0:01:31.160 put together a big surprise. We're putting together a list 0:01:31.880 --> 0:01:34.840 ten things. If ten is an acceptable number. 0:01:34.600 --> 0:01:36.480 To you, ten is my love language. 0:01:36.640 --> 0:01:42.200 Okay, good, good, don't make it weird. Ten things that 0:01:42.360 --> 0:01:49.160 wealthy people don't waste money on. Go for it. Give 0:01:49.200 --> 0:01:49.760 us number one. 0:01:50.000 --> 0:01:54.680 Cars. Oh really, yeah, Like this constant upgrading of cars, 0:01:55.560 --> 0:01:59.240 it's just doesn't happen. They have a car, they use it, 0:01:59.440 --> 0:02:02.200 they drive it, but it's often owned out right, unless 0:02:02.240 --> 0:02:05.320 it's you know, structured through a business. But there's not 0:02:05.400 --> 0:02:08.920 this like insatiable appetite to constantly upgrade it every couple 0:02:09.000 --> 0:02:11.600 of years and you know, push the kick the can 0:02:11.680 --> 0:02:13.480 down the road with the expensive leases. 0:02:14.040 --> 0:02:14.760 They have their car. 0:02:14.960 --> 0:02:16.639 It serves a purpose, gets them from A to B 0:02:16.760 --> 0:02:18.519 and it doesn't define them. 0:02:18.760 --> 0:02:23.040 Oh that's disappointing, because I would love to you know 0:02:23.080 --> 0:02:24.440 what I would love to do just be able to 0:02:24.440 --> 0:02:28.680 walk into a dealership of a very expensive brand and 0:02:28.800 --> 0:02:33.280 just go take that one, thank you, and make everything lever, 0:02:34.280 --> 0:02:36.000 and I will pay for it in full. But now 0:02:36.120 --> 0:02:39.560 that's what I shouldn't do that, because otherwise that is 0:02:39.639 --> 0:02:43.200 a one way ticket to becoming more poor. 0:02:43.680 --> 0:02:45.639 Well, it's an appreciating asset. The moment you drive it 0:02:45.680 --> 0:02:47.800 out of the dealership, you know, it's dropped in value 0:02:47.800 --> 0:02:51.160 by you know, twenty thirty percent sometimes. 0:02:50.760 --> 0:02:52.760 Okay, And that is why the old the old saying 0:02:52.760 --> 0:02:57.240 goes about buying secondhand and buying good secondhand, because you 0:02:57.240 --> 0:03:01.320 suddenly avoid all of that initial deprecat in the asset. 0:03:01.120 --> 0:03:03.960 Even pre loved, so not pre loved even sorry a 0:03:04.040 --> 0:03:05.680 demonstrated models what I'm talking about. 0:03:05.800 --> 0:03:07.239 Yeah, yeah, because all of a sudden you have a 0:03:07.320 --> 0:03:10.120 car that's got maybe three four five thousand k's on it, 0:03:10.760 --> 0:03:14.520 and you will save a fortune doing it exactly. Okay, 0:03:14.520 --> 0:03:17.360 all right, give us number two on the list of 0:03:17.440 --> 0:03:19.560 things that wealthy people don't waste money on. 0:03:19.880 --> 0:03:21.400 I'm gonna call this stupid debt. 0:03:22.040 --> 0:03:22.519 Stupid. 0:03:22.840 --> 0:03:25.679 Yes, they do not engage. It is not even in 0:03:25.720 --> 0:03:30.240 their vocabulary buy now, pay later, credit cards, even car loans, 0:03:30.400 --> 0:03:35.560 personal loans. This type of debt is toxic. It's a hindrance, 0:03:36.280 --> 0:03:38.600 and it's often used to buy things that actually depreciate 0:03:38.640 --> 0:03:40.640 in value. If they're going to buy something, they pay 0:03:40.680 --> 0:03:42.720 for it in cash or they use their credit card, 0:03:42.720 --> 0:03:45.000 and credit card is obviously paid off in full each month, 0:03:46.000 --> 0:03:48.840 but they it's not necessary. They see it as a 0:03:48.840 --> 0:03:52.200 block something that's going to actually be detrimental to the 0:03:52.240 --> 0:03:53.640 path that they're on and where they're heading. 0:03:55.160 --> 0:03:57.720 I like, I'm interested that the buying now, pay later 0:03:58.360 --> 0:04:02.000 is in that list. By Now pay later is. It's 0:04:02.040 --> 0:04:05.080 not an old thing. It's a relatively recent addition to 0:04:05.120 --> 0:04:09.640 the lending space, and it has taken off right, and 0:04:09.680 --> 0:04:11.520 it can be a bit of a trap. 0:04:12.440 --> 0:04:14.839 I don't have an issue with buy now, pay later 0:04:14.880 --> 0:04:17.720 when it's used responsible, because I know people who are 0:04:17.760 --> 0:04:19.359 on type budgets and they actually use it as a 0:04:19.360 --> 0:04:26.080 budgeting tool. But interestingly, because the rules around by now 0:04:26.080 --> 0:04:29.120 pay Later have really tightened, they've brought some laws in 0:04:29.120 --> 0:04:32.360 to help protect people just good, which is great. The 0:04:32.839 --> 0:04:36.320 personal loan space has actually exploded, so in the first 0:04:36.360 --> 0:04:40.479 three months of this year, Australians have borrowed a record 0:04:40.640 --> 0:04:45.680 five point one billion dollars. Really, yeah, that's scary, and 0:04:45.680 --> 0:04:47.880 that's not for big ticket items like you know what, 0:04:48.360 --> 0:04:50.200 I remember if you go back, say five years, people 0:04:50.240 --> 0:04:51.800 might take out a personal loan to pay for a wedding, 0:04:51.880 --> 0:04:54.680 for example, or a holiday, and I don't agree with 0:04:54.720 --> 0:04:57.640 that at all. But now these personal loans are being 0:04:57.720 --> 0:04:59.599 used to actually help cover the cost of living. So 0:04:59.600 --> 0:05:02.640 people are using it to buy the everyday essentials. 0:05:03.120 --> 0:05:06.680 And is that in part because they were previously doing 0:05:06.680 --> 0:05:08.479 that on buy now, pay later? But the rules have 0:05:08.560 --> 0:05:10.480 tightened a lot, and so they're not able to access 0:05:10.560 --> 0:05:11.960 that credit as easily. 0:05:12.080 --> 0:05:14.440 Yes, on top of the fact that you know, all 0:05:14.440 --> 0:05:16.480 their emergency savings has been eaten, not but the rising 0:05:16.480 --> 0:05:19.600 cost of living, interest rates, inflation and so forth. But yeah, 0:05:19.680 --> 0:05:22.800 it's been used for you know, not for splurges. It's 0:05:22.800 --> 0:05:23.880 been used for survival. 0:05:24.520 --> 0:05:28.480 Buy now, pay later is not so different to good 0:05:28.480 --> 0:05:31.919 old fashioned layby, though, is it. It's probably just a 0:05:32.000 --> 0:05:33.720 slightly more regulated form of that. 0:05:33.839 --> 0:05:36.599 Really. No, see a lay by, you don't get that 0:05:36.680 --> 0:05:38.560 item until you've paid it off, so there's a lot 0:05:38.560 --> 0:05:42.000 more discipline involved. I love layby, like I used to 0:05:42.000 --> 0:05:42.279 do it a. 0:05:42.279 --> 0:05:45.039 Lot, but we still do it. 0:05:44.360 --> 0:05:46.640 Yes, but only I think David Jones, for example, might 0:05:46.640 --> 0:05:48.520 do it, but they really don't promote it because it's 0:05:48.520 --> 0:05:50.280 actually an issue for them because they've got to then 0:05:50.480 --> 0:05:53.120 hold onto that stock. Yeah, and it obviously takes up 0:05:53.160 --> 0:05:55.279 space and storage, and it's the cost of the actual 0:05:55.279 --> 0:05:58.880 administration between taking the payments, taking their regular payments and 0:05:58.920 --> 0:06:01.560 then obviously organizing election. So it is actually a very 0:06:01.560 --> 0:06:03.800 expensive exercise for them, Steuard. That's why most people don't 0:06:03.800 --> 0:06:04.760 do it anymore. Okay. 0:06:04.839 --> 0:06:09.520 And so people that are financially secure, financially successful tend 0:06:09.520 --> 0:06:12.640 to steer clear of what you have described as stupid 0:06:12.680 --> 0:06:15.520 dtepid debt okay, by now pay later, carloans, those kinds 0:06:15.560 --> 0:06:18.800 of things, high interest rates and often not going to 0:06:18.839 --> 0:06:20.000 deliver value for money. 0:06:20.320 --> 0:06:20.640 Okay. 0:06:20.800 --> 0:06:23.839 Number three, loyalty tax are our old friend. 0:06:24.040 --> 0:06:26.720 Yeah, so I was actually having a chat the other 0:06:26.800 --> 0:06:29.160 day about this, and you know, they said it was 0:06:29.240 --> 0:06:30.119 like lazy tax. 0:06:30.320 --> 0:06:33.000 It is so I like you to be just having 0:06:33.000 --> 0:06:36.040 a chat with your friends about loyalty tax or superannuation 0:06:36.240 --> 0:06:39.400 or something. Your friends must just see you come and go, 0:06:39.560 --> 0:06:41.920 oh god it he's going to talk about loyalty tax again. 0:06:42.800 --> 0:06:45.600 Well, actually, I was standing up for people because you know, 0:06:46.320 --> 0:06:50.159 we can very easily you know, put off as you know, 0:06:50.600 --> 0:06:53.080 for well, making those phone calls to try and get 0:06:53.120 --> 0:06:56.159 a better deal. And this person was saying to me, oh, well, 0:06:56.240 --> 0:06:59.240 you know, that's people just being lazy and procrastinating, And 0:06:59.279 --> 0:07:01.880 I said, actually, I used to think that, but now 0:07:01.920 --> 0:07:05.480 I think people are so time poor, you know, finding 0:07:05.480 --> 0:07:07.360 that carving out that time in the day to make 0:07:07.440 --> 0:07:09.320 that phone call or go and see that person, or 0:07:09.480 --> 0:07:12.120 build up the courage to ask for a better deal 0:07:12.800 --> 0:07:15.520 is so overwhelming. So I don't think it's actually a 0:07:15.560 --> 0:07:17.200 matter of laziness. I think it's just amount of time 0:07:17.200 --> 0:07:20.080 and to find time. But this is the mindset switch. 0:07:20.200 --> 0:07:23.440 With wealthy people. They know that, yes, it is going 0:07:23.480 --> 0:07:25.520 to take a bit of time, you know, it's going 0:07:25.560 --> 0:07:28.400 to be half an hour, you know, waiting or having 0:07:28.480 --> 0:07:30.320 to make an appointment to you know, with the mortgage 0:07:30.320 --> 0:07:32.360 brokeer reover it may be. But they know that that 0:07:32.640 --> 0:07:36.400 investment of time is going to be significant savings. And 0:07:36.480 --> 0:07:39.080 you know, you know classic example, you know, calling you know, 0:07:39.080 --> 0:07:41.160 your mortgage broker and getting them to get do ask 0:07:41.240 --> 0:07:43.440 the bank on your behalf for a better deal. It's 0:07:43.480 --> 0:07:45.080 probably going to take half an hour on the phone, 0:07:45.520 --> 0:07:47.640 but that could save you two thousand dollars a year. 0:07:47.920 --> 0:07:50.160 And if you think about well, okay, depending on your 0:07:50.240 --> 0:07:52.200 marginal tax rate, that might be the equivalent of earning 0:07:52.200 --> 0:07:54.160 an extra three thousand dollars a year from the savings 0:07:54.160 --> 0:07:57.200 that you create. So they are aware of the cost 0:07:57.240 --> 0:07:59.480 of their time, but they know that it is well 0:07:59.600 --> 0:08:01.640 worth it. Yeah, and they prioritize it, and they do 0:08:01.680 --> 0:08:03.840 it in a very efficient way. They'll do it, you know, 0:08:03.880 --> 0:08:06.320 whilst driving to work obviously hands free through the car, 0:08:06.720 --> 0:08:09.080 or they'll do it, you know, you know, whilst walking 0:08:09.080 --> 0:08:10.720 the dog. They'll do it in an efficient way because 0:08:10.720 --> 0:08:13.520 they know that their time is cost money and they 0:08:13.520 --> 0:08:15.360 want it. It's an investment, so they want to make 0:08:15.400 --> 0:08:17.640 sure their returns there. You know, they prioritize it and 0:08:17.680 --> 0:08:19.880 they check in on a regular basis. 0:08:19.800 --> 0:08:22.880 Okay, and so in doing so they avoid quite simply 0:08:23.120 --> 0:08:27.000 loyalty tax, which is this tax that essentially you just 0:08:27.080 --> 0:08:29.360 end up paying more because you are a loyal customer, 0:08:29.360 --> 0:08:32.160 whereas new customers coming in through the front door are being. 0:08:32.080 --> 0:08:34.839 Getting a little better deal. And so they notice that 0:08:35.320 --> 0:08:38.240 and they go in head first asking for the same rate. 0:08:38.320 --> 0:08:40.560 Otherwise they'll leave, and they happily will leave because they 0:08:40.600 --> 0:08:43.280 know that their money, if it's not their business, is 0:08:43.320 --> 0:08:45.720 not welcome. I'll take them business s elsewhere, all right. 0:08:45.760 --> 0:08:48.120 So that one boils down to appreciating the value of 0:08:48.160 --> 0:08:50.440 your own time and going Actually, you know what, I 0:08:50.480 --> 0:08:53.280 might save two thousand dollars from making this half hour call. 0:08:54.240 --> 0:08:57.320 That values my time at four thousand dollars an hour exactly. 0:08:57.559 --> 0:08:59.920 That is a very high value phone call. 0:09:00.000 --> 0:09:00.960 It's a good mindset. 0:09:01.280 --> 0:09:03.920 Yeah, yeah, it is, all right. That's number three. Give 0:09:04.000 --> 0:09:04.800 us number four. 0:09:05.200 --> 0:09:09.200 Unsupportive people so limiting, Yes, I know, so not quite well, 0:09:09.640 --> 0:09:12.640 not a financial product as such, but you listen to this. 0:09:12.760 --> 0:09:16.199 The so limiting or even like being protective of your circle, 0:09:16.600 --> 0:09:20.000 you know, of the information that they share. Being careful 0:09:20.080 --> 0:09:23.520 is people who might criticize them or judge them or 0:09:23.559 --> 0:09:27.040 mock their ambition, you know, making them feel bad for 0:09:27.080 --> 0:09:30.200 actually having a crack, having a go, or even people 0:09:30.240 --> 0:09:34.040 who normalize like financial chaos. You know, we've all got 0:09:34.040 --> 0:09:36.520 that friend who just is a hot mess with money. 0:09:36.240 --> 0:09:38.880 And they never pay anything and are always a bit 0:09:38.920 --> 0:09:40.040 behind on everything. 0:09:40.120 --> 0:09:42.960 And it's exactly and often sometimes not often sometimes these 0:09:42.960 --> 0:09:46.439 people we don't play victim a bit. Wealthy people are 0:09:46.520 --> 0:09:50.440 very aware of the energy of people and how and 0:09:50.480 --> 0:09:52.800 I believe this as well, you know, energy is contagious 0:09:52.800 --> 0:09:56.119 and so our habits. So not that they don't socialize 0:09:56.200 --> 0:09:57.640 or have these friends, but they're just a bit more 0:09:57.679 --> 0:10:01.680 protective of their circle and how they expose themselves and 0:10:01.720 --> 0:10:04.720 who they let into their circle. And you know, they're 0:10:04.800 --> 0:10:06.840 very protective as to how they build their tribe. If 0:10:06.840 --> 0:10:09.960 you like making sure that people are encouraging, their inspiring, 0:10:10.000 --> 0:10:13.160 their supportive. They'll challenge you in a healthy way to 0:10:13.240 --> 0:10:15.160 think about things from a different perspective or look at 0:10:15.160 --> 0:10:17.400 what things or you know, where they see a weakness, 0:10:17.440 --> 0:10:21.240 they'll take that constructive criticism on board, you know, in 0:10:21.280 --> 0:10:24.920 a positive manner, so they don't waste their time because 0:10:24.960 --> 0:10:27.800 time is money with people who aren't there, you know, 0:10:28.120 --> 0:10:31.360 to serve them and also obviously reciprocate that back as 0:10:31.360 --> 0:10:32.840 well into their circle and tribe. 0:10:33.280 --> 0:10:37.640 I like that one. That is good actually, and I 0:10:37.679 --> 0:10:40.160 remember seeing a couple of years ago. It is a 0:10:40.679 --> 0:10:43.920 mindset shift, right. A couple of years ago I saw 0:10:44.120 --> 0:10:48.679 somebody they received an invoice from a small business and 0:10:48.720 --> 0:10:52.520 they paid it that same day, right, And it was 0:10:52.600 --> 0:10:57.000 just such a great example to me of building up 0:10:57.040 --> 0:10:59.760 good karma in terms of in terms of that small 0:10:59.760 --> 0:11:02.160 business all of a sudden doesn't need to wait two weeks, 0:11:02.240 --> 0:11:04.640 three weeks, four weeks plus in order to get paid, 0:11:04.679 --> 0:11:07.120 improves their cash flow, etc. And it was no skin 0:11:07.160 --> 0:11:10.440 off this person's nose. To pay that bill straight away 0:11:10.800 --> 0:11:13.880 made all the difference to that small business. It's okay. 0:11:14.080 --> 0:11:15.480 Those are the kind of people that you want to 0:11:15.520 --> 0:11:18.400 have around you that have those good money habits, and 0:11:18.440 --> 0:11:21.319 that can really be a bit of a role model. 0:11:22.360 --> 0:11:25.520 And you know, on that note of role model, I think, 0:11:25.800 --> 0:11:28.160 you know, wealthy people, because they're so aware of this, 0:11:28.600 --> 0:11:31.440 they really have intentionally built upper community around them and 0:11:31.480 --> 0:11:35.520 they've filled them, I guess, surrounded themselves with people who 0:11:35.600 --> 0:11:38.239 were educated and formed and got huge amounts of experiences 0:11:38.280 --> 0:11:41.440 and can share that insight and that growth. And you know, 0:11:41.600 --> 0:11:44.040 when it comes to mentors as well, you know they 0:11:44.080 --> 0:11:47.000 are mental themselves, and you know they have mentors around them. 0:11:47.000 --> 0:11:49.040 But there's one thing I think I speak about this 0:11:49.120 --> 0:11:52.120 maybe in Mindful Money in my book, but there's this 0:11:52.160 --> 0:11:55.080 concept I talk about this imaginary mentor So not all 0:11:55.160 --> 0:11:57.720 of us have access in including me, to these amazing 0:11:57.760 --> 0:12:02.160 people and entrepreneurs and you know, people with highly skilled 0:12:02.520 --> 0:12:08.839 qualifications experience. But if you can access their mindset, their information. 0:12:09.000 --> 0:12:13.319 Through listening to podcasts where they've been interviewed, reading their books, 0:12:13.960 --> 0:12:16.960 perhaps doing some of their courses, or you know, watching 0:12:17.120 --> 0:12:20.040 interviews with them online or on TV, you can learn 0:12:20.040 --> 0:12:22.480 so much about them and actually learn to have them 0:12:22.520 --> 0:12:26.240 as your own imaginary mentor in your life. So you know, 0:12:26.800 --> 0:12:28.880 this is a way I think of actually incorporating this 0:12:28.920 --> 0:12:31.240 into your life and a budget friendly way to become wealthy. 0:12:31.480 --> 0:12:34.199 I like that, And so I did this myself with 0:12:34.440 --> 0:12:37.280 some emotional regulation stuff, and I'd always say to myself, 0:12:37.480 --> 0:12:39.760 what would this person say? Or how would this person 0:12:39.920 --> 0:12:42.280 that's a mentor of mine and that's an imaginary mentor, 0:12:42.520 --> 0:12:44.760 but they exist and they're a real person. How would 0:12:44.760 --> 0:12:47.080 this person react? What would they say? And I've found 0:12:47.080 --> 0:12:50.000 that it really triggered this, this ability for me to 0:12:50.000 --> 0:12:53.760 actually handle a triggering situation with greater resilience. 0:12:53.960 --> 0:12:57.760 Okay, And you can actually manufacture that, essentially, because there 0:12:57.800 --> 0:13:02.760 is enough content out there through podcasts, books, interviews, ted talks, 0:13:02.840 --> 0:13:04.480 all that kind of stuff that you can that you 0:13:04.520 --> 0:13:08.040 can actually create that mentor for yourself. All right, that's 0:13:08.080 --> 0:13:08.480 number four. 0:13:08.559 --> 0:13:12.439 Number five Impressing strangers. So you know, many people spend 0:13:12.440 --> 0:13:15.160 money you know, trying to look wealthy. You know, this 0:13:15.280 --> 0:13:18.920 is the social media flex, you know, dining in this restaurant, 0:13:19.040 --> 0:13:23.720 you know, the shameless, cringe worthy you know Instagram picture 0:13:23.720 --> 0:13:26.000 where it's like one A with their passport and the 0:13:26.000 --> 0:13:29.720 glass of champagne. Like I just make I just find 0:13:29.720 --> 0:13:33.240 that so tacky. Sorry if you've done it, but like, 0:13:34.160 --> 0:13:37.360 but these people just they do not need to prove anything, 0:13:37.920 --> 0:13:41.480 And the irony is the louder. The financial flex, the 0:13:41.520 --> 0:13:46.640 display of wealth often the less actual wealth exists behind it. 0:13:46.640 --> 0:13:48.160 It's a little bit of a smoke and mirrors and 0:13:48.200 --> 0:13:51.880 a facade and you know those things flying first class, 0:13:51.880 --> 0:13:55.119 flying business class, being in the you know, the latest trendiest, 0:13:55.200 --> 0:13:59.240 coolest nightclub or restaurant or bar or wherever it may be, 0:13:59.320 --> 0:14:01.680 your hotel. You know, that's not actually the problem, but 0:14:01.720 --> 0:14:04.240 it's when you know, wealthy people don't need to do 0:14:04.240 --> 0:14:05.400 that to validate themselves. 0:14:06.559 --> 0:14:10.840 Okay, that's simple, That is clear and simple. And I 0:14:10.960 --> 0:14:14.079 have seen so many of those photos of the one 0:14:14.120 --> 0:14:16.480 a or the glass of champagne held up in front 0:14:16.520 --> 0:14:21.240 of the welcome to Emirates or whatever it is. Oh no, no, 0:14:21.240 --> 0:14:24.600 no stop. Okay, that is our first five things that 0:14:24.680 --> 0:14:27.280 wealthy people don't waste money on. Take a quick break, 0:14:27.280 --> 0:14:36.040 come back with the next five. Canna, we are making 0:14:36.080 --> 0:14:38.760 a list. I think this is a pretty good list today, 0:14:39.440 --> 0:14:43.520 not saying that your previous lists have been inferior lists. 0:14:44.040 --> 0:14:49.240 Really digging a hole here? Aren't I number six on 0:14:49.280 --> 0:14:51.720 the list of the things that people don't waste money on? 0:14:52.400 --> 0:14:56.280 What is it? All right? Cheap things that cost more later? Now, 0:14:56.360 --> 0:14:59.920 this isn't necessarily about spending more. It's about spending wisely, 0:15:00.080 --> 0:15:03.960 focusing on quality. You know, so for example, you know, 0:15:04.120 --> 0:15:07.720 a really good pair of shoes, or a really good, 0:15:08.120 --> 0:15:12.800 high quality mattress, or a beautiful cashmere jumper you know 0:15:12.840 --> 0:15:17.480 that freeze really well last years upon years, or even 0:15:17.520 --> 0:15:21.920 like a beautiful leather handbag that's just beautifully made, stands 0:15:21.920 --> 0:15:23.800 the test of time. Yes, it did maybe cost a 0:15:23.800 --> 0:15:26.520 bit more, but it will last ten to fifteen, twenty years, 0:15:26.920 --> 0:15:29.640 versus like a fast fashion that you know, thread might go, 0:15:29.760 --> 0:15:33.000 the leather might scratch, the hardware may tarnish, you know, 0:15:33.200 --> 0:15:35.760 very very quickly. You know, even you know the tools 0:15:35.760 --> 0:15:37.720 that they use every day, or you know the classic 0:15:38.120 --> 0:15:42.120 capsual wardrobe staples, or even you know, looking at advice 0:15:42.640 --> 0:15:46.240 seeing you know, getting the best legal advice or accounting 0:15:46.280 --> 0:15:50.280 advice or financial advice that you can afford for your situation, 0:15:50.600 --> 0:15:53.200 so that you get the job done right, and you 0:15:53.200 --> 0:15:56.000 get it done right the first time, and you minimize 0:15:56.040 --> 0:15:59.560 you know, the potential expense or cost or waste further 0:15:59.560 --> 0:16:03.160 down the track, understanding the total cost of ownership isn't 0:16:03.160 --> 0:16:06.680 as you just upfront, It's about long term returnal investment. 0:16:07.040 --> 0:16:11.160 I love that. Yeah, that is absolutely right that, particularly 0:16:11.160 --> 0:16:13.280 when it comes to financial advice or legal advice or 0:16:13.280 --> 0:16:15.680 one of those ones. The last thing you want to 0:16:15.680 --> 0:16:17.120 do is to have to go and do it all 0:16:17.160 --> 0:16:20.440 again in twelve months time or eighteen months time because 0:16:20.800 --> 0:16:22.360 what you got the first time. 0:16:22.680 --> 0:16:26.480 Was was average or that person wasn't experienced enough or 0:16:26.520 --> 0:16:27.360 qualified enough. 0:16:27.440 --> 0:16:30.840 Yeah, not an expert in the space that you needed exactly. Okay, 0:16:30.920 --> 0:16:32.800 I like that. At number seven. 0:16:33.760 --> 0:16:37.480 All right, financial emergencies that could have been prevented, like 0:16:37.680 --> 0:16:43.120 avoided completely, so emergency money, having the right types and 0:16:43.360 --> 0:16:47.640 levels of insurance protection, having the state planning needs set up, 0:16:48.440 --> 0:16:51.440 being able to properly maintain your home so that you 0:16:51.480 --> 0:16:55.880 don't get leaks, things don't fall apart, get damaged with 0:16:55.920 --> 0:17:01.160 the elements, you know, really taking an intelligent preventative approach 0:17:01.560 --> 0:17:04.440 and action to the things around you that are important 0:17:04.760 --> 0:17:09.520 so that they're protected. And it's not about eliminating surprises, 0:17:09.600 --> 0:17:12.640 but it's about being prepared for them if it happens, 0:17:13.119 --> 0:17:15.000 and having that great peace of mind. 0:17:15.119 --> 0:17:17.480 And acknowledging that it is actually going to cost you 0:17:17.560 --> 0:17:22.160 money in order to be prepared, because insurance is not cheap. No, 0:17:22.320 --> 0:17:28.320 insurance is extremely expensive. I have just come to this 0:17:28.400 --> 0:17:31.880 realization lately when just going back over everything and making 0:17:31.880 --> 0:17:34.000 sure everything is fit for purpose and just going, oh, 0:17:34.040 --> 0:17:36.600 my god, we spend a lot on insurance per year, 0:17:37.200 --> 0:17:41.760 but if I didn't, I would not sleep. 0:17:42.920 --> 0:17:44.760 Tom said the exact same thing the other night because 0:17:44.760 --> 0:17:47.359 his insurance premiums as her mine. I've got up and 0:17:47.400 --> 0:17:51.000 it's now our mortgage, and then followed by our insurance 0:17:51.080 --> 0:17:53.439 is actually the second biggest expense, is now more expensive 0:17:53.440 --> 0:17:56.959 than what we spend on food, And Tom said, can 0:17:57.000 --> 0:17:59.399 we please cut this? I was like, absolutely not. I 0:17:59.440 --> 0:18:01.199 reminded him it was for and why we have to 0:18:01.200 --> 0:18:02.439 have it, and he said, okay, all right, no, of 0:18:02.440 --> 0:18:05.080 course I've got to stay, but it's a non negotiable 0:18:05.119 --> 0:18:07.359 and I wouldn't sleep at night if we if we 0:18:07.440 --> 0:18:08.960 even tried to trim it down. 0:18:09.760 --> 0:18:12.520 And I imagine that that Tom who works with horses 0:18:12.960 --> 0:18:15.800 that have all kinds of professional insurances that he would need, 0:18:15.920 --> 0:18:18.720 like horse kicking insurance. 0:18:18.800 --> 0:18:21.159 Well it is because you know, they were way a 0:18:21.280 --> 0:18:24.800 race and they're also very volatile and temperamental, and some 0:18:25.040 --> 0:18:27.760 are quite deadly. And you know, he's he's a freak. 0:18:27.800 --> 0:18:30.359 He's like a horse whisperer. Like they'll have these like 0:18:30.440 --> 0:18:33.159 deadly animals and he'll have them like licking him. But 0:18:33.440 --> 0:18:37.200 you know, going through the insurance application was the underwriter 0:18:37.359 --> 0:18:39.120 had to do a special interview with him to get 0:18:39.160 --> 0:18:40.760 him in short because. 0:18:40.520 --> 0:18:42.720 They don't know how often he was licked by horse. 0:18:43.359 --> 0:18:44.840 Well do you understand the nature of his job, and 0:18:44.880 --> 0:18:46.600 like how close are you? How many hours a day? 0:18:46.640 --> 0:18:48.239 And of course like he's pretty much on top of them, 0:18:48.240 --> 0:18:50.840 and he's jabbing needles into them, like acupunction needles, but 0:18:50.880 --> 0:18:53.600 he's obviously there from an equine welfare point of view, 0:18:53.720 --> 0:18:55.520 so it's not hurting them. They love him because he 0:18:55.640 --> 0:18:58.280 you know, takes away their pain. But you know, it's 0:18:58.320 --> 0:19:00.560 such a niche job and such a but also so 0:19:00.680 --> 0:19:02.879 high risk and like I've called him, he's like, I 0:19:02.920 --> 0:19:05.280 can't talk. This horse is you know, it is cranky, 0:19:05.440 --> 0:19:08.160 you know, and all his styff have to be so 0:19:08.200 --> 0:19:09.879 careful they can get kicked. 0:19:10.000 --> 0:19:13.080 And the insurance, yeah, is so. 0:19:13.160 --> 0:19:15.199 Necessary, it is non negotiable. 0:19:15.680 --> 0:19:17.720 All right, that's number seven. We are running out of 0:19:17.760 --> 0:19:22.960 time here. Too much wisdom being imparted almost number eight, 0:19:23.040 --> 0:19:24.080 please all right? 0:19:24.400 --> 0:19:29.560 Every opportunity. So wealthy people say no a lot. They 0:19:29.600 --> 0:19:33.600 say no to certain investments, they say no to you know, 0:19:33.760 --> 0:19:36.440 business ideas or opportunities, they say no to how they 0:19:36.480 --> 0:19:39.080 spend their time. You know, they understand that wealth comes 0:19:39.080 --> 0:19:43.960 from actually being selective, focusing on what's important where they're 0:19:44.000 --> 0:19:47.840 heading their goals, not getting distracted by lots of different 0:19:47.840 --> 0:19:50.840 activities and you know, opportunities. They need to come back 0:19:50.880 --> 0:19:52.879 to what are they working on. Is that aligned to 0:19:53.280 --> 0:19:56.560 my goals, my strategy, my value system. And they know 0:19:56.600 --> 0:19:59.000 that every time they say yes to something, it's going 0:19:59.040 --> 0:20:00.880 to cost them somewhere else. You know, they can only 0:20:00.920 --> 0:20:03.280 fit so much on their plate. So, you know, wealthy 0:20:03.280 --> 0:20:07.199 people are really protective and mindful as to what they 0:20:07.240 --> 0:20:10.399 can do, how much they can take on, and whether 0:20:10.400 --> 0:20:12.720 it's right for them or not. And they don't sweat 0:20:12.760 --> 0:20:15.280 it if it's not they you know it's They're very 0:20:15.320 --> 0:20:17.840