WEBVTT - The 5 year test: Where you and your money will be 0:00:01.520 --> 0:00:03.680 Welcome to How Do They Afford That? The podcast that 0:00:03.720 --> 0:00:07.040 peeks into the financial lives of everyday Australians. I'm Michael Thompson. 0:00:07.120 --> 0:00:08.680 I'm an author and the co host of the business 0:00:08.760 --> 0:00:11.959 news podcast Fear and Breed. As always, I'm with Canna Campbell, 0:00:12.000 --> 0:00:15.760 financial planner, founder of Sugar Maumber TV, the financial literacy 0:00:15.800 --> 0:00:21.480 platform covering YouTube podcasts, Instagram threads, TikTok and of course, 0:00:22.079 --> 0:00:25.360 by co author on our upcoming book Twelve Months to 0:00:25.440 --> 0:00:28.920 Financial Freedom, available for pre order now. Hello, Canna, how 0:00:29.000 --> 0:00:35.560 are you apprehensive? Why? Because this is one that looks 0:00:35.600 --> 0:00:41.479 to the future. Today's episode, we're basically we're looking ahead. 0:00:41.720 --> 0:00:48.240 We're looking specifically five years ahead. Yes, right, we're gazing 0:00:48.280 --> 0:00:52.199 into the financial crystal ball if such a thing exists, 0:00:52.800 --> 0:00:58.360 and asking three questions. Right, if nothing changed in your 0:00:58.360 --> 0:01:00.640 circumstances and in the way that you and your money 0:01:00.640 --> 0:01:03.200 and all of those kind of things, where would you 0:01:03.280 --> 0:01:07.600 be if you made small changes to your money, where 0:01:07.600 --> 0:01:10.839 would you be? And then if you made some big changes, 0:01:11.120 --> 0:01:14.520 some big overhauls, some big moves, where would you be 0:01:14.840 --> 0:01:17.360 in five years? What would your money look like? What 0:01:17.360 --> 0:01:21.800 would your lifestyle look like? What would how much better 0:01:22.080 --> 0:01:25.319 without without meaning to kind of cast a judgment on 0:01:25.360 --> 0:01:27.920 this prematurely. How much better would your life be if 0:01:27.920 --> 0:01:29.800 you took control of your money now and did something. 0:01:31.000 --> 0:01:33.880 Let us jump straight into it, if you did nothing 0:01:34.560 --> 0:01:39.240 right in five years, where would you expect to be 0:01:39.360 --> 0:01:43.319 My default kind of assumption on this would be to 0:01:43.360 --> 0:01:44.840 say that you'd be in the same position as you 0:01:44.880 --> 0:01:47.320 are right now. But could you actually go backwards because 0:01:47.360 --> 0:01:49.120 of inflation and everything? 0:01:49.480 --> 0:01:53.440 Well, assuming nothing's changing, and that's because you're doing nothing 0:01:54.400 --> 0:01:56.960 and you're continuing to bury your head in the sand, 0:01:57.000 --> 0:01:59.640 You're quite right, you know you could be going backwards. 0:02:00.160 --> 0:02:03.320 You know, you look at inflation, think about the cost 0:02:03.360 --> 0:02:06.160 of living. It's the rising cost of living, thinking about 0:02:06.200 --> 0:02:10.200 the lifestyle creep, and also all of those missed opportunities. 0:02:10.880 --> 0:02:13.520 So even if your income stays the same, your money 0:02:13.560 --> 0:02:17.440 still buys less. So you could very easily be going backwards, 0:02:17.480 --> 0:02:19.680 and a lot of people are experiencing that right now. 0:02:19.720 --> 0:02:23.640 To be honest, I'm so scared to ask you this 0:02:23.760 --> 0:02:27.240 because the I'm worried that it will actually cause you 0:02:27.280 --> 0:02:31.560 to have a medical episode. But doesn't you super kind 0:02:31.560 --> 0:02:33.760 of just help you out a little bit here, because 0:02:33.840 --> 0:02:35.720 you don't need to do anything. It's just sitting there 0:02:35.760 --> 0:02:39.600 in the background. You don't need to do anything. You 0:02:39.639 --> 0:02:42.000 will be in a better off position in five years 0:02:42.080 --> 0:02:43.080 even without any action. 0:02:43.720 --> 0:02:46.520 I am very proud of your positive attitude about supernation, 0:02:46.880 --> 0:02:50.960 so I'd like to acknowledge that. But as I have 0:02:51.120 --> 0:02:55.320 said in the past, superneration is not going to necessarily 0:02:55.480 --> 0:02:59.160 completely fix all of your financial problems. It may not 0:02:59.240 --> 0:03:02.359 be enough. You've also got to remember you can't access 0:03:02.400 --> 0:03:05.640 your superannuation until you've met a condition of release, which, 0:03:05.840 --> 0:03:08.600 depending on how old you are right now, you're not 0:03:08.639 --> 0:03:10.280 going to be able to access You're super for least 0:03:10.320 --> 0:03:14.519 probably twenty years or so. Yepkay, current legislation which could 0:03:14.600 --> 0:03:17.840 change you took that very well, Yes, thank you, broadly 0:03:17.960 --> 0:03:19.880 sensitive to your sensitivities. 0:03:20.280 --> 0:03:23.800 Excellent. We're becoming very nice to each other on this show. 0:03:24.000 --> 0:03:25.800 Give it a minute, we'll be back to the old race. 0:03:26.000 --> 0:03:29.119 Indeed, I think that the point of bringing that up 0:03:29.800 --> 0:03:35.320 right is that, Okay, your superannuation will hopefully if market 0:03:35.320 --> 0:03:39.200 conditions are okay, then you'll continue to grow in the background. 0:03:39.320 --> 0:03:43.240 But the whole point of this is that really, if 0:03:43.280 --> 0:03:45.840 you get involved and you start making some changes, and 0:03:45.840 --> 0:03:48.200 you start doing some things, then your position in five 0:03:48.280 --> 0:03:51.160 years time could be a whole lot better, which leads 0:03:51.200 --> 0:03:55.400 us into small changes. All right, So we've established a 0:03:55.440 --> 0:03:59.000 baseline position of if you do nothing to your money 0:03:59.160 --> 0:03:59.760 right now. 0:03:59.800 --> 0:04:02.400 You're doing I think some people doing the same could 0:04:02.400 --> 0:04:04.760 actually still be working really hard and being responsible. 0:04:04.840 --> 0:04:08.520 Yeah indeed. But okay, so without being kind of proactive 0:04:08.760 --> 0:04:12.360 and making some changes to your money, you could either 0:04:12.400 --> 0:04:15.080 be in the same position that you are now or 0:04:15.280 --> 0:04:16.240 slightly worse off. 0:04:16.400 --> 0:04:19.360 Yeah, okay, and you'll be feeling crappier inside as well. 0:04:19.440 --> 0:04:23.359 Okay, right, small changes. Then I would like you to 0:04:23.520 --> 0:04:28.880 give me, say, five small changes that you could make 0:04:29.440 --> 0:04:33.479 now yep, to your money that would make a difference 0:04:34.080 --> 0:04:37.200 to your financial position in five years all right. 0:04:37.240 --> 0:04:39.520 So Number one would be setting up a regular savings 0:04:39.560 --> 0:04:42.359 plan through automation, you know, fifty dollars a week, one 0:04:42.400 --> 0:04:45.640 hundred dollars people, whatever, you can start, whatever you can safely. 0:04:45.240 --> 0:04:47.719 Afford right now, just start automated. 0:04:47.320 --> 0:04:50.160 Automated yep to take out that friction, remove it, and 0:04:50.200 --> 0:04:52.600 of course that builds momentum and you know, helps create 0:04:52.640 --> 0:04:56.240 some really healthy financial habits, the discipline not to spend. 0:04:55.960 --> 0:04:59.320 It it's even fifty bucks a week, right, is two 0:04:59.360 --> 0:05:02.039 and a half thousand dollars across the year, which is 0:05:02.560 --> 0:05:03.039 I mean. 0:05:03.320 --> 0:05:05.400 Four years, there's ten thousand dollars. There's a lot of 0:05:05.440 --> 0:05:07.160 money plus plus interesting. 0:05:07.240 --> 0:05:10.320 Yeah, like that is solid and five that's twelve and 0:05:10.360 --> 0:05:12.240 a half grand over five years that you did not 0:05:12.440 --> 0:05:14.080 have unless you start this now. 0:05:14.120 --> 0:05:15.880 And you could even make that an investment plan. If 0:05:15.920 --> 0:05:20.000 you don't want to do savings, then potentially depending on 0:05:20.040 --> 0:05:22.480 where you invest, the upside is even bigger. 0:05:22.800 --> 0:05:24.440 Okay, that's number one regular savings. 0:05:24.839 --> 0:05:28.080 Then number two would be reviewing and reducing your budget, 0:05:28.400 --> 0:05:32.160 So looking at your subscriptions, maybe starting to have a 0:05:32.200 --> 0:05:34.120 bit of a budget as to how much money you 0:05:34.120 --> 0:05:36.800 spend at the supermarket. Reviewing your insurance is what you 0:05:36.800 --> 0:05:39.960 can potentially switch to to save money in looking at 0:05:40.000 --> 0:05:43.560 all those leaks in the bucket that where money is 0:05:43.600 --> 0:05:46.200 being wasted that can actually be redirected to something like 0:05:46.200 --> 0:05:47.360 a simple financial goal. 0:05:47.640 --> 0:05:50.120 Okay, all right, and that is a small change, really, 0:05:50.200 --> 0:05:53.040 isn't it, Because we're not talking about a major overhaul. 0:05:53.080 --> 0:05:57.800 It's just going, okay, do I need four streaming platforms? 0:05:58.000 --> 0:06:00.320 Maybe I can get rid of one and then saving 0:06:00.360 --> 0:06:05.520 yourself twenty bucks a month maybe exactly. Okay, next building 0:06:05.560 --> 0:06:06.600 up an emergency fund. 0:06:06.920 --> 0:06:09.440 Okay, so I can't remember that off the top of 0:06:09.440 --> 0:06:11.760 my head, and my apologies for this, but it's something 0:06:11.839 --> 0:06:14.240 like forty percent of Australians can come up with two 0:06:14.240 --> 0:06:16.320 thousand dollars in the event of emergency without having to 0:06:16.400 --> 0:06:19.240 use a credit card or borrow money from the bank 0:06:19.400 --> 0:06:24.920 or a person. So just having emergency money ideally north 0:06:25.000 --> 0:06:28.680 of two thousand dollars. But obviously it reduces that emotional 0:06:28.720 --> 0:06:31.880 stress and anxiety. But it also means that you're not 0:06:32.000 --> 0:06:33.720 going to be creating new debt in your life. And 0:06:33.800 --> 0:06:37.080 we've spoken about this before. When you have toxic debt 0:06:37.200 --> 0:06:39.880 like you know, outstanding by an outplay later or and 0:06:39.960 --> 0:06:42.920 credit card debt, it can be really impact your mindset 0:06:42.960 --> 0:06:45.760 and attitude and quite often trigger more and more spending 0:06:45.760 --> 0:06:47.359 because you think, oh, well it's two thousand dollars, I 0:06:47.360 --> 0:06:49.720 may as well make it three thousand dollars. You can 0:06:49.800 --> 0:06:52.000 almost cut up with excuses to get deeper and deeper 0:06:52.040 --> 0:06:54.880 into debt. So, you know, having emergency money so that 0:06:54.920 --> 0:06:58.400 you if something happens, you feel financially resilient because you go, wow, Okay, 0:06:58.920 --> 0:07:01.800 I need new tires. Okay, few, I've got fifteen hundred dollars. 0:07:02.000 --> 0:07:04.360 What's super very expensive tires. I've got eight hundred dollars 0:07:04.440 --> 0:07:06.720 saved in my savings. A hound I can fix up 0:07:06.800 --> 0:07:08.800 and get you into the new tires and get back 0:07:08.839 --> 0:07:11.000 on the road again. You know, it doesn't impact your 0:07:11.040 --> 0:07:13.239 life beyond the actual problem. 0:07:13.360 --> 0:07:15.160 Okay, And so that one was kind of linked to 0:07:15.200 --> 0:07:17.200 the first one. Isn't it that you would potentially do 0:07:17.280 --> 0:07:19.240 it through a regular savings. 0:07:19.320 --> 0:07:23.440 Absolutely separate savings account nicknamed just start, and even if 0:07:23.480 --> 0:07:26.960 it starts with one dollar, like it begins and it's nicknames. 0:07:26.960 --> 0:07:28.560 So every time you log into your internet making you 0:07:28.600 --> 0:07:30.720 are reminded as to what that is you are working 0:07:30.760 --> 0:07:31.720 on and why. 0:07:33.360 --> 0:07:35.760 It just gives you so much peace of mind. 0:07:35.960 --> 0:07:39.560 Huge like like I mean, I had to rebuild our 0:07:39.560 --> 0:07:42.040 family savings, Tom and I together from scratch, and it 0:07:42.080 --> 0:07:46.640 was like getting started again. It is actually really the 0:07:47.080 --> 0:07:50.600 breakthrough of stress going Okay, yes it's annoying, but we 0:07:50.680 --> 0:07:52.360 have to do this, and it's it's a sign of 0:07:52.400 --> 0:07:54.360 responsibility and financial maturity as well. 0:07:54.480 --> 0:07:57.160 I had to drain how we had to. It was 0:07:57.200 --> 0:08:02.400 a joint decision to drain our emergency money a while back, 0:08:02.880 --> 0:08:05.800 and then after that it just sat there just for 0:08:05.840 --> 0:08:11.400 a few weeks with the grand total of six dollars 0:08:11.600 --> 0:08:13.640 in it, And every time I logged in, I'm like. 0:08:13.760 --> 0:08:15.760 Oh, no, I know. 0:08:16.320 --> 0:08:19.680 But you start. You just start somewhere, and you exactly 0:08:19.720 --> 0:08:20.280 and you set. 0:08:20.200 --> 0:08:23.880 Some goals, lots of mini goals, like like going, okay, 0:08:23.880 --> 0:08:25.680 all right, let's try and get to one thousand dollars 0:08:25.720 --> 0:08:30.240 by the thirtieth of July. You know, set little mini goals, 0:08:30.360 --> 0:08:34.840 challenge yourself thinks outside square, but it's you gamified as well, 0:08:34.880 --> 0:08:36.720 and you check in with each other and talk about 0:08:36.760 --> 0:08:39.800 it and remind yourself as to what that represents. 0:08:40.080 --> 0:08:43.920 Yeah, okay, that's number three, number four on this list 0:08:43.960 --> 0:08:47.080 of small changes that will change your financial position in 0:08:47.120 --> 0:08:47.719 five years time. 0:08:48.000 --> 0:08:50.520 Just a little extra contributions to your superannuation. Just a 0:08:50.559 --> 0:08:55.079 little bit here and there, little tinkle here and there, tinkles. No, 0:08:55.160 --> 0:08:55.840 that's the wrong word. 0:08:55.920 --> 0:08:58.200 I don't know. Then we want to be tinkling into 0:08:58.200 --> 0:08:59.319 our super a. 0:08:59.280 --> 0:09:02.839 Little tinkle of cash, like you know, just peppering it. No, 0:09:02.880 --> 0:09:05.880 that's okay, all right, small additional contributions, how about that. 0:09:05.920 --> 0:09:09.000 We'll just stick to the financial jargon here. 0:09:10.000 --> 0:09:11.679 I'm just not going to say anything. I just love 0:09:11.720 --> 0:09:16.120 seeing you try and scramble your way out of this. Now, okay, 0:09:16.640 --> 0:09:18.360 small additional. 0:09:18.280 --> 0:09:22.400 Contributions, So even if it's, for example, salary sacrificing twenty 0:09:22.440 --> 0:09:25.200 dollars per week, yep, you know that's next on thousand 0:09:25.200 --> 0:09:27.960 dollars into your Super. And you might you know, qualify 0:09:28.080 --> 0:09:30.520 for the government's co contribution scheme as well, so you 0:09:30.520 --> 0:09:31.960 don't need to get to the end of the financial 0:09:32.000 --> 0:09:33.720 year panic and think, oh, I haven't done this yet, 0:09:34.000 --> 0:09:36.880 I'm missing my opportunity. But when you've automated it and 0:09:36.920 --> 0:09:39.720 set it up, you've done it. It's out of you know, 0:09:39.880 --> 0:09:41.960 it's a box ticked and you can feel really good 0:09:42.000 --> 0:09:42.960 about yourself. 0:09:42.600 --> 0:09:47.240 And that thousand dollars a year given maybe I don't 0:09:47.280 --> 0:09:52.119 know how long, maybe thirty years in super that is phenomenal. 0:09:52.200 --> 0:09:56.400 And remember your superinnuation is an investment portfolio that is 0:09:56.679 --> 0:09:59.680 secured away for your long term benefits, so you know 0:10:00.240 --> 0:10:01.959 you can afford to safely put in. Keep me in 0:10:02.000 --> 0:10:03.600 mind that you can't get it back out until you 0:10:03.640 --> 0:10:07.280 made a condition of release. You are you know, giving 0:10:07.320 --> 0:10:10.559 yourself a much better opportunity to have a healthier, stronger, 0:10:10.720 --> 0:10:12.240 more resilient financial future. 0:10:13.400 --> 0:10:16.840 Number five on this list of small changes. 0:10:17.280 --> 0:10:23.280 Educate yourself, you know, just immerse yourself around obviously podcasts 0:10:23.280 --> 0:10:26.680 and books, but also the people, you know, the people 0:10:26.720 --> 0:10:30.720 that inspire you, empower you, you know, make you actually 0:10:30.800 --> 0:10:34.280 feel incredibly curious, and give you the practical steps that'd 0:10:34.280 --> 0:10:36.880 be like our book as to how to actually apply 0:10:37.040 --> 0:10:40.200 these principles and ideas and topics in your real life. 0:10:40.240 --> 0:10:42.560 Like you know, become a bit of an expert on 0:10:42.600 --> 0:10:46.160 your own personal finances and understanding, you know, even the 0:10:46.280 --> 0:10:49.120 education of yourself as in what's important to you, what 0:10:49.200 --> 0:10:52.080 makes you tick, where your value system lies, so that 0:10:52.120 --> 0:10:54.680 you can build up goals that actually really do mean 0:10:54.760 --> 0:10:57.719 something and actually connect you and ignite something within you. 0:10:58.160 --> 0:11:00.160 So you want to go fix your finances? Do you 0:11:00.160 --> 0:11:01.520 want to improve your financial wellbeing? 0:11:02.679 --> 0:11:06.520 They are five great small changes, thank you, that could 0:11:06.559 --> 0:11:11.440 actually have massive impact on your money. In five years time. 0:11:11.760 --> 0:11:13.760 We're going to take a quick break and on the 0:11:13.800 --> 0:11:16.080 other side we are going to do the big changes. 0:11:16.200 --> 0:11:20.440 So we've done no change, We've done small changes. Now 0:11:20.559 --> 0:11:30.080 big changes. Back in a second. Can we are talking 0:11:30.160 --> 0:11:32.959 today about the five year test where you and your 0:11:33.000 --> 0:11:35.640 money will be if you make no change, if you 0:11:35.679 --> 0:11:38.240 make a series of small changes, or if you do 0:11:38.360 --> 0:11:43.320 some big, chunky, meaty changes that could have a massive 0:11:43.559 --> 0:11:46.880 effect on where you're at with your money in five years. 0:11:47.480 --> 0:11:50.560 Of course, these are general information only, and you should 0:11:50.840 --> 0:11:52.320 seek professional. 0:11:52.000 --> 0:11:56.079 Definitely, not treated product or investment advices or whatsoever. We're 0:11:56.120 --> 0:11:58.360 just giving you ideas of things to think about it 0:11:58.360 --> 0:11:59.960 and go and learn more about it, and of course 0:12:00.040 --> 0:12:02.439 go and see a financial planner and get personal advice 0:12:02.840 --> 0:12:04.720 so you can set it up correctly for you. 0:12:04.960 --> 0:12:07.240 Yeah, well said, all right, give us the first one. 0:12:07.280 --> 0:12:10.800 All right, investing, but investing with a bit more. 0:12:11.200 --> 0:12:19.760 Grunt investing with grunt Okay, we've tinkled into our superstment. 0:12:17.840 --> 0:12:19.640 And like you know, dabbled in a bit of maybe 0:12:19.760 --> 0:12:23.840 micro investing regular savings plans. But let's up the ante. 0:12:24.400 --> 0:12:27.559 Let's look at investing properly. Let's look at using those 0:12:27.960 --> 0:12:30.200 savings accounts. If we're lucky enough to have money set 0:12:30.200 --> 0:12:32.600 aside for savings that doesn't actually have a job, no 0:12:32.760 --> 0:12:35.839 need or purpose for the next ten years, it's money 0:12:35.840 --> 0:12:38.520 sitting aside that you know that you should be doing 0:12:38.559 --> 0:12:41.200 something with. Perhaps now is the time to get that 0:12:41.280 --> 0:12:44.160 money working for you. That doesn't necessarily mean you drain 0:12:44.200 --> 0:12:46.000 the whole entire savings account and go and invest the 0:12:46.040 --> 0:12:50.040 whole amount, but you start using that money, or perhaps 0:12:50.280 --> 0:12:53.160 you are in a situation where you can safely afford 0:12:53.400 --> 0:12:55.719 and you understand the risks and how to manage them. 0:12:55.920 --> 0:12:58.520 A debt recycling strategy where you start, you know, using 0:12:58.600 --> 0:13:01.880 the equity within your home just to invest and invest elsewhere, 0:13:01.880 --> 0:13:03.760 so that you don't just wake up one day and go, great, 0:13:03.800 --> 0:13:06.320 I own my own home and that's it. But you 0:13:06.360 --> 0:13:08.120 wake up one day go I own my own home, 0:13:08.160 --> 0:13:11.240 and I also own a six seven figure diversified share 0:13:11.280 --> 0:13:13.959 portfolio or a string of investment properties because you've used 0:13:13.960 --> 0:13:16.880 the equity. Is about really upping the ante and getting 0:13:16.920 --> 0:13:20.559 a lot more serious and committed to the change in 0:13:20.600 --> 0:13:24.640 improvements you can make by being strategic, proactive and savvy. 0:13:24.880 --> 0:13:26.280 But of of course it's an education in. 0:13:26.400 --> 0:13:29.480 One way, and I like that because it's scalable as well. 0:13:29.520 --> 0:13:32.280 Depending on how much money you have spare, how much 0:13:32.280 --> 0:13:34.959 you're earning, how much you want to commit to this, 0:13:35.360 --> 0:13:37.280 you can make this as big or as small as 0:13:37.280 --> 0:13:37.520 you like. 0:13:37.600 --> 0:13:39.720 And that's where a financial planner comes in because they'll say, Okay, 0:13:40.200 --> 0:13:42.400 you've got this much equity, you've got this much in 0:13:42.400 --> 0:13:44.560 the savings, we're going to move this through that blah 0:13:44.600 --> 0:13:46.200 blah blah, and there you're on your way. 0:13:46.320 --> 0:13:51.640 Okay, the second big change, So this is it, Like. 0:13:51.559 --> 0:13:53.400 I say, I'm going to share this anyway, but I 0:13:53.440 --> 0:13:57.840 am completely aware and sensitive to obviously how things are 0:13:57.880 --> 0:13:59.520 expensive right now, and this is obviously not going to 0:13:59.520 --> 0:14:01.720 sincerely go to be available for a lot of people, 0:14:01.760 --> 0:14:06.200 including myself. But that is aggressively paying down debt, you know, 0:14:07.120 --> 0:14:09.679 looking at the budget, looking at some cuts you can make, 0:14:09.760 --> 0:14:13.719 looking at the potential sacrifices, obviously that don't jeopardize your 0:14:13.800 --> 0:14:15.920 well being of course or your family's well being, but 0:14:16.440 --> 0:14:18.560 starting to really look at where your money is going 0:14:18.600 --> 0:14:21.600 and what you can actually do to get ahead financially, 0:14:21.880 --> 0:14:23.880 Like a mortgage. You know, if you look at the 0:14:23.960 --> 0:14:26.240 numbers behind a mortgage, the biggest and best impact you 0:14:26.240 --> 0:14:29.320 could have in saving a huge amount of time and 0:14:29.440 --> 0:14:31.120 interest is actually in the first five years of a 0:14:31.160 --> 0:14:33.520 home loan. So if you can be a little bit 0:14:33.560 --> 0:14:36.560 more aggressive initially, that can really pay off and make 0:14:36.600 --> 0:14:39.520 a profound impact on how much sooner you'll be mortgage free. 0:14:40.400 --> 0:14:45.280 Wow. And so that aggressively paying down debt. It may 0:14:45.360 --> 0:14:48.000 not be the mortgage, it might be other, but also be. 0:14:47.960 --> 0:14:51.000 Of course things like car loans, personal loans, credit card 0:14:51.080 --> 0:14:53.360 debt by now pay later. But we're talking about upping 0:14:53.360 --> 0:14:55.480 the antiheroes, like we're re turning the volume off here. 0:14:55.520 --> 0:14:59.000 Okay, I like that. All right, that's number two. So 0:14:59.040 --> 0:15:02.400 we've got invested properly and then aggressively paying down debt 0:15:02.560 --> 0:15:06.920 and of course the home loan. That could have a 0:15:07.120 --> 0:15:09.680 massive effect, not just in five years time, but chances 0:15:09.720 --> 0:15:12.880 are you actually see the greater impact in twenty years 0:15:12.880 --> 0:15:15.000 time when all of a sudden your mortgage free instead 0:15:15.000 --> 0:15:16.520 of kind of thirty years. 0:15:16.720 --> 0:15:18.680 And the cool thing about this is you can start 0:15:18.720 --> 0:15:21.280 to actually see the turning point of go. When you 0:15:21.320 --> 0:15:23.240 log into your internet banking, you see your mortgage, how 0:15:23.280 --> 0:15:26.000 an interest you've paid, and go, wow, already the impact 0:15:26.000 --> 0:15:28.240 of this was already saved me eighty dollars per month 0:15:28.280 --> 0:15:31.360 in interest. Because I'm making more aggressive repayments, I'm watching 0:15:31.400 --> 0:15:34.800 the principle come down, so the interest therefore produces as well. 0:15:34.880 --> 0:15:37.720 Yeah, ripper, Okay, number three, Okay. 0:15:37.480 --> 0:15:40.120 This is I guess comes back to the heart of 0:15:40.320 --> 0:15:43.320 making things actually happen, and that is obviously having the 0:15:43.360 --> 0:15:47.160 income to actually increase the mortgage repayments or to start investing. 0:15:47.680 --> 0:15:50.680 So asking for a pay rise or perhaps looking at 0:15:50.840 --> 0:15:53.560 you know, seek and just going, hey, well, perhaps I 0:15:53.560 --> 0:15:55.560 need to look at changing jobs. You know, we all 0:15:55.600 --> 0:15:58.760 know that the best pay rise has come quite often 0:15:58.800 --> 0:16:03.360 from changing to do different organizations. So it may be 0:16:03.440 --> 0:16:05.160 a point of going, all right, I've been the same 0:16:05.200 --> 0:16:09.120 company that I think I've hit my earning capacity that ceiling. 0:16:09.160 --> 0:16:11.920 Perhaps I think I need to look at jumping ships 0:16:11.960 --> 0:16:13.760 if I really want to improve my financial will being, 0:16:13.800 --> 0:16:15.680 as well as of course my career path and the 0:16:15.760 --> 0:16:18.760 value that I'm contributing and what I'm learning and where 0:16:18.800 --> 0:16:21.440 I am up with my training and education and experience, 0:16:22.040 --> 0:16:24.360 so that you know, maybe it's a pay rise, maybe 0:16:24.400 --> 0:16:27.840 it's a change in job, and maybe it's actually something 0:16:27.840 --> 0:16:29.760 on the side. You know, you do some consulting on 0:16:29.800 --> 0:16:34.280 the side, some freelancing, you know, something that you're interested in, 0:16:34.400 --> 0:16:36.920 passionate about that can give you that extra money that 0:16:36.960 --> 0:16:40.200 you can help up the ante with your functial strategy. 0:16:40.000 --> 0:16:43.520 Or committing to the work needed to secure that promotion 0:16:43.920 --> 0:16:49.280 essentially that kind of educating yourself, expanding your potential so 0:16:49.320 --> 0:16:51.440 that even if the pay rise isn't happening right now, 0:16:51.680 --> 0:16:53.960 you're doing the work for next year so that you're 0:16:54.000 --> 0:16:58.920 getting that promotion, you're getting that increased income. Okay, and 0:16:58.960 --> 0:17:02.680 then of course if that does generate new or additional revenue, 0:17:02.720 --> 0:17:04.320 you can then put that into one of the other 0:17:04.600 --> 0:17:06.760 exactly things that we've talked about. Okay, number four. 0:17:07.080 --> 0:17:09.400 So this is doing a bit of a revamp of 0:17:09.440 --> 0:17:13.560 your financial system, so looking at the engine, looking at 0:17:13.600 --> 0:17:16.240 what you're doing, and looking at where you can really 0:17:16.280 --> 0:17:20.320 improve the efficiency. So reviewing the budget, reviewing the cash flow, 0:17:20.520 --> 0:17:22.359 reviewing the amount of accounts that you've got and what 0:17:22.400 --> 0:17:24.320 account is doing and whether it's actually working for you. 0:17:24.359 --> 0:17:27.480 For a classic is, if you've got say holiday savings, 0:17:27.920 --> 0:17:30.840 perhaps that holiday savings doesn't sit in an online savings account, 0:17:30.840 --> 0:17:34.040 but perhaps your restructure and revamping is maybe putting that 0:17:34.119 --> 0:17:36.879 in the offset account, so it's saving you interest against 0:17:36.920 --> 0:17:40.000 your home loan, or perhaps it's looking at the money 0:17:40.040 --> 0:17:41.639 that you've got to set aside and savings for a 0:17:41.720 --> 0:17:44.080 rainy day that you know you don't actually really need 0:17:44.200 --> 0:17:47.360 as much in that account. You go, okay, well let's 0:17:47.640 --> 0:17:50.000 start doing something different with this. Maybe we can invest it, 0:17:50.040 --> 0:17:52.960 maybe we could use it invest into a side hustle, 0:17:53.080 --> 0:17:55.520 using that, looking at the whole efficiency as to what 0:17:55.680 --> 0:17:57.639 is working for you and where you want your money 0:17:57.680 --> 0:18:00.639 to go and to start growing, and of course like 0:18:00.680 --> 0:18:04.679 what can you automate? That takes away that list of 0:18:04.720 --> 0:18:07.639 things to do, So it's very very easy, you know, 0:18:07.880 --> 0:18:11.040 and doing this on a regular basis goes without saying 0:18:11.080 --> 0:18:14.120 it's essential, and it allows you to then see even 0:18:14.119 --> 0:18:17.520 more opportunities and jump on those to improve your own 0:18:17.760 --> 0:18:19.800 your actual financial trajectory. 0:18:20.960 --> 0:18:27.040 All right, last one, number five, No surprises. 0:18:26.560 --> 0:18:30.840 Here, but you know, looking at some serious superannuation contributions, 0:18:31.359 --> 0:18:35.800 you know, taking advantage of those legal tax efficiencies that 0:18:35.840 --> 0:18:39.080 come with super. You know, looking at the underlying assets 0:18:39.119 --> 0:18:42.560 within your super you know, is your superannuation money invested 0:18:42.600 --> 0:18:45.280 for the long term? Does it match your risk profile? 0:18:45.400 --> 0:18:48.040 Is it does it match the appropriate risk profile for 0:18:48.080 --> 0:18:50.400 where you are at your life cycle and life stage. 0:18:51.119 --> 0:18:53.400 So looking at you know, the fees that you're paying, 0:18:53.440 --> 0:18:56.080 whether it's cost effective, whether it's the right superannuation account 0:18:56.200 --> 0:19:01.159 for you, Looking at projections, so really looking at that 0:19:01.359 --> 0:19:03.879 where you can actually almost organically grow your wealth but 0:19:03.920 --> 0:19:07.119 also grow at a more efficient rate by tweaking a 0:19:07.280 --> 0:19:09.520 little things within the engine to make it work more 0:19:09.520 --> 0:19:12.480 smoothly and work get your money working for you and 0:19:12.480 --> 0:19:12.960 growing for you. 0:19:13.200 --> 0:19:15.359 And I suppose it goes without saying that a financial 0:19:15.400 --> 0:19:18.320 planner is going to really be able to help you 0:19:19.000 --> 0:19:22.560 with this with kind of projections around superannuation and to 0:19:22.800 --> 0:19:24.720 kind of model those kinds of things. 0:19:24.560 --> 0:19:28.000 Right, absolutely, yeah, I mean yes, it. 0:19:27.960 --> 0:19:29.840 Goes without saying I don't even know why you're saying it. 0:19:29.840 --> 0:19:31.920 I mean wow, But that's the thing when people see 0:19:31.920 --> 0:19:35.400 FUNDI plants like, oh wow, this all comes as all 0:19:35.440 --> 0:19:39.720 comes together. Everything is like interlinked and it has a 0:19:39.760 --> 0:19:42.360 flow on effect. And you know, the one thing I'll 0:19:42.359 --> 0:19:45.160 say about I think this particular episode is is it's 0:19:45.200 --> 0:19:47.720 also it's yes, we're talking about improving a financial wellbeing 0:19:47.760 --> 0:19:50.600 definitely with making you aware of you if you do 0:19:50.640 --> 0:19:52.920 nothing and bury your head in the sand versus doing 0:19:53.040 --> 0:19:56.520 something little then versus doing something big. But we're also 0:19:56.840 --> 0:19:58.639 it's important we pay attention to how does it make 0:19:58.720 --> 0:20:03.040 us feel? It is taking the financial stress and pressure 0:20:03.119 --> 0:20:06.720 off yourself by doing something and getting started is huge 0:20:07.240 --> 0:20:11.080 So whilst you may not necessarily initially all the amazing 0:20:11.080 --> 0:20:14.399 improvements in your financial wellbeing, stop and ask yourself, well, Okay, 0:20:14.440 --> 0:20:16.159 I haven't paid off all that I wanted to, or 0:20:16.160 --> 0:20:18.600 I haven't built the share portfolio size of what I 0:20:18.600 --> 0:20:23.000 wanted to. Remember, it's yet, it's a journey. But ask yourself, 0:20:23.160 --> 0:20:25.520 but how do I feel? How do I feel about 0:20:25.520 --> 0:20:27.040