WEBVTT - My Financial Game Plan for 2025 0:00:00.440 --> 0:00:03.720 Exactly how I'm going to achieve my financial goals and 0:00:03.800 --> 0:00:08.760 dreams for two thousand and twenty five, breaking down my 0:00:08.920 --> 0:00:11.200 game plan, the things that I'm going to do or 0:00:11.240 --> 0:00:14.160 have actually already begun to help make sure that twenty 0:00:14.280 --> 0:00:18.480 twenty five is my best year yet. Welcome to Sugar 0:00:18.520 --> 0:00:32.240 Mama's Fireplay. Good morning, everyone, and welcome back to another 0:00:32.280 --> 0:00:36.960 episode of Sugar Mama's Fireplay. Today, I am really excited 0:00:37.000 --> 0:00:40.559 to share with you the game plan, the strategy, how 0:00:40.560 --> 0:00:42.839 I'm going to be managing my money, my income, my 0:00:42.960 --> 0:00:46.640 cash flow, and hopefully ticking off all the goals that 0:00:46.720 --> 0:00:51.560 I have set down for two thousand and twenty five. Now, 0:00:51.560 --> 0:00:54.240 before I begin, a quick reminder as to my general 0:00:54.280 --> 0:00:57.480 advice warning and my financial planning license details. 0:00:57.960 --> 0:00:59.080 Obviously, the things I'll be. 0:00:59.080 --> 0:01:02.240 Talking about in today episode are exciting and you might think, oh, 0:01:02.520 --> 0:01:04.240 is this right for me? Maybe I should be doing 0:01:04.319 --> 0:01:07.400 this myself. And yes, whilst these things are great and 0:01:07.480 --> 0:01:10.240 could most definitely help you, you never know if there's 0:01:10.280 --> 0:01:13.720 actually something else that may be even more powerful, which 0:01:13.720 --> 0:01:15.600 is why you should always go and talk to a 0:01:15.640 --> 0:01:19.600 financial planner and ask them for personal advice. Now, to 0:01:19.640 --> 0:01:22.000 anyone who's listening to this going, Yes, I know this. 0:01:22.080 --> 0:01:24.360 Can I know the warning, I understand it, But I 0:01:24.360 --> 0:01:26.840 can't afford a financial planner right now, or I don't 0:01:26.840 --> 0:01:28.840 want to see a financial planner right now? Can I 0:01:28.880 --> 0:01:32.600 remind you as to my book Mindful Money. In Mindful Money, 0:01:32.640 --> 0:01:36.520 I explain absolutely everything you need to know and understand 0:01:36.520 --> 0:01:41.160 about setting yourself up for financial independence, from managing your 0:01:41.200 --> 0:01:44.400 cash flow to picking the right superannuation account, from building 0:01:44.480 --> 0:01:48.240 your investment portfolio of whatever assets. 0:01:47.800 --> 0:01:49.000 You may desire. 0:01:49.440 --> 0:01:52.000 So there are some great resources out there to rely 0:01:52.080 --> 0:01:54.880 on until you are ready to use, until you are 0:01:54.880 --> 0:01:58.120 ready to go and see a financial planner. All right, 0:01:58.280 --> 0:02:01.360 let's talk about my financial game plan, and of course 0:02:01.400 --> 0:02:05.280 you are welcome to ask me any questions through Instagram now. 0:02:05.320 --> 0:02:07.560 In last week's episode, I shared with you some of 0:02:07.600 --> 0:02:10.480 my financial goals, which I will admit I was a 0:02:10.560 --> 0:02:13.880 little bit nervous about doing, wondering what you might think. 0:02:14.000 --> 0:02:16.880 But I'm sure that's just my own insecurity because no 0:02:16.919 --> 0:02:19.560 one here really judges each other. We're here to hold 0:02:19.560 --> 0:02:22.080 each other's hand, pull each other up if we're down, 0:02:22.120 --> 0:02:24.200 and of course keep cheering all the way as we 0:02:24.280 --> 0:02:26.280 go from strength to strength, even when it comes to 0:02:26.400 --> 0:02:31.160 pushing through those setbacks and challenges. Now, the reason why 0:02:31.280 --> 0:02:33.280 I want to share with you my game plan is 0:02:33.320 --> 0:02:35.800 to help you realize how important it is for you 0:02:35.840 --> 0:02:39.079 to have your own game plan for your own goals. 0:02:39.160 --> 0:02:42.080 Of course financial goals, but also all those other goals. 0:02:42.280 --> 0:02:45.480 As I said previously, if you have goals without a plan, 0:02:45.560 --> 0:02:48.840 there's just simply as a wish floating around not really 0:02:48.880 --> 0:02:51.840 actually doing things. By having a game plan, you start 0:02:51.919 --> 0:02:55.520 setting down a strategy, and these are the key benefits. 0:02:55.919 --> 0:02:57.640 And for me, when I look at my game plan, 0:02:57.800 --> 0:03:00.800 it helps ensure that these goals are achieved. So for me, 0:03:01.280 --> 0:03:04.079 having a game plan is really important. I think you'll 0:03:04.080 --> 0:03:06.640 get a lot of value yourself from doing your own 0:03:06.680 --> 0:03:09.520 game plan for your goals. I know myself when I 0:03:09.560 --> 0:03:12.200 have done a game plan and I've folded it to 0:03:12.240 --> 0:03:15.320 the best of my ability, even if I do fall 0:03:15.360 --> 0:03:17.480 short at the end of the year, I know that 0:03:17.560 --> 0:03:20.520 I will still feel proud about how hard I've worked, 0:03:20.600 --> 0:03:22.920 the effort that I put in, the determination, the commitment, 0:03:23.560 --> 0:03:26.119 and the passion that I have gained along the way 0:03:26.200 --> 0:03:29.320 from my own personal growth and development. So here are 0:03:29.360 --> 0:03:31.600 some additional benefits for you to think about when you 0:03:31.680 --> 0:03:35.040 design your own game plan for your financial strategy of 0:03:35.080 --> 0:03:37.560 course your own personal growth throughout twenty twenty five. 0:03:37.640 --> 0:03:38.600 Now, the reason why I'm going to. 0:03:38.600 --> 0:03:41.000 Quickly touch on these benefits is to help motivate you 0:03:41.080 --> 0:03:44.800 to really do a really robust, detailed game plan, but 0:03:44.880 --> 0:03:47.600 also understand that it can be flexible and fluid and 0:03:47.680 --> 0:03:50.080 work with you as your year of goals and things 0:03:50.280 --> 0:03:53.200 happen and don't happen, and there are setbacks, but allows 0:03:53.240 --> 0:03:55.360 you to get back on the bandwagon again. And then 0:03:55.400 --> 0:03:57.320 I promise, the moment i've shared with you these key 0:03:57.360 --> 0:03:59.520 benefits of a game plan, I will share with you 0:03:59.640 --> 0:04:02.240 my game plan. But this is important, so please bear 0:04:02.240 --> 0:04:04.840 with me. Number One, having a game plan stops you 0:04:04.880 --> 0:04:07.560 from wasting time. When I look at my game plan, 0:04:07.600 --> 0:04:09.720 I can see that there is a lot to be done. 0:04:09.760 --> 0:04:12.600 I've got a busy twenty twenty five, and the longer 0:04:12.640 --> 0:04:16.400 I wait, the longer I delay stuff around, I'm just 0:04:16.440 --> 0:04:19.080 going to end up adding more stress and pressure to 0:04:19.120 --> 0:04:22.480 my shoulders, which I don't really need or want any more. 0:04:22.960 --> 0:04:25.719 So why would I want to make life so much 0:04:25.800 --> 0:04:28.320 harder for myself? This is the value of having a 0:04:28.360 --> 0:04:31.040 game plan. The second benefit of having a game plan 0:04:31.120 --> 0:04:33.320 is it allows me to allocate my time and see 0:04:33.360 --> 0:04:36.320 the priorities. When I look at my goals and I 0:04:36.400 --> 0:04:38.800 look at the strategy for each goal to help make 0:04:38.800 --> 0:04:41.359 sure that it's going to happen, I can actually see 0:04:41.600 --> 0:04:44.120 with a great sense of clarity as to what I 0:04:44.160 --> 0:04:47.120 need to tackle first and also what is the smartest 0:04:47.120 --> 0:04:49.800 thing to actually tackle first. Whilst I would love to 0:04:49.880 --> 0:04:52.320 jump in and focus purely on renovating our kitchen, I 0:04:52.400 --> 0:04:54.799 know that it is far more efficient and more important 0:04:54.839 --> 0:04:57.080 to actually focus on building up our financial float and 0:04:57.120 --> 0:05:00.680 some of our emergency money funds. So having game plan 0:05:00.800 --> 0:05:03.159 really helps give you that bird's eye view on your 0:05:03.240 --> 0:05:06.679 own financial situation and what really needs to be fixed 0:05:07.000 --> 0:05:09.599 as a pressing priority, and you know to put that 0:05:09.720 --> 0:05:11.640 at the top of your list as a priority. So 0:05:11.680 --> 0:05:13.919 it allows you to allocate your time and also you 0:05:13.920 --> 0:05:17.320 can use as a motivation to push through those responsible 0:05:17.360 --> 0:05:19.159 goals that you can quickly then move on to those 0:05:19.240 --> 0:05:25.920 fun goals like holidays and special purchases. Number three, game 0:05:25.960 --> 0:05:27.720 plan will curb your distractions. 0:05:28.520 --> 0:05:30.719 I am just like you. I love fashion. 0:05:30.800 --> 0:05:34.000 I love captural wardrobe fashion, I love beautiful handbags and shoes. 0:05:34.080 --> 0:05:37.719 I love holidays and going out for dinner and spending 0:05:37.760 --> 0:05:41.040 time with friends, and I love the occasional glass of champagne. 0:05:41.360 --> 0:05:43.560 But I also know that I've got a lot of 0:05:43.560 --> 0:05:44.320 things to achieve. 0:05:44.360 --> 0:05:45.680 I've got a big year ahead of me. 0:05:45.880 --> 0:05:48.240 But when I go back to my game plan and 0:05:48.320 --> 0:05:50.240 I look at all the exciting things that are ahead 0:05:50.279 --> 0:05:51.920 of me and all the things that I can potentially 0:05:51.960 --> 0:05:55.960 achieve for myself and for my family, suddenly this point 0:05:56.000 --> 0:06:00.560 of comparison between buying a new pair of pants, shoes, 0:06:00.680 --> 0:06:05.440 or address versus having a brand new kitchen, a kitchen 0:06:05.520 --> 0:06:08.040 of my tastes and styles and one that's not going 0:06:08.080 --> 0:06:10.279 to fall apart. And when I open up a cuver door, 0:06:10.839 --> 0:06:15.039 suddenly that point of comparison helps dissipate those sort of 0:06:15.120 --> 0:06:20.520 instant gratification, almost materialistic desires, and it recalibrates my sense 0:06:20.560 --> 0:06:23.640 of focus and what is important and what is the 0:06:23.680 --> 0:06:27.320 bigger picture here for twenty twenty five. So that is 0:06:27.360 --> 0:06:30.520 a really great value of having your own game plan. 0:06:32.960 --> 0:06:35.920 Number four. A game plan allows flexibility. 0:06:36.160 --> 0:06:38.480 A lot of people think that a financial strategy, or 0:06:38.600 --> 0:06:41.520 in this case, a financial game plan, is set in stone, and. 0:06:41.440 --> 0:06:44.719 It's very rigid strict you must follow it to the tea. 0:06:45.000 --> 0:06:46.480 That couldn't be further from the truth. 0:06:46.880 --> 0:06:50.839 A game plan is fluid, it's free flowing, and it's flexible. 0:06:51.200 --> 0:06:55.039 I shared in last week's episode that if something pops up, 0:06:55.200 --> 0:06:59.200 for example, whilst I'm saving up some emergency money. For example, 0:06:59.200 --> 0:07:02.000 I shared last week that one of my biggest priorities 0:07:02.040 --> 0:07:04.360 is to quickly rebuild our emergency money at the level 0:07:04.360 --> 0:07:06.840 that it really should be, as well as our financial float. 0:07:07.120 --> 0:07:09.400 But at the same time, one of my fun financial 0:07:09.400 --> 0:07:13.160 goals is to renovate our kitchen. Now, I know that 0:07:13.240 --> 0:07:16.520 if a special sale comes up, for example, appliances, and 0:07:16.520 --> 0:07:19.040 I'm able to buy the dishwasher and the cook top 0:07:19.120 --> 0:07:21.880 and the fridge, all those things come up with an 0:07:21.960 --> 0:07:26.880 amazing sale, it would be sensible to capitalize on those opportunities. 0:07:27.040 --> 0:07:30.960 And I've given myself permission to have some flexibility there now. 0:07:31.000 --> 0:07:33.800 By having this game plan and having that flexibility, because 0:07:33.840 --> 0:07:36.760 I've agreed with myself that there will be some give 0:07:36.800 --> 0:07:39.600 and take and some allowed tweaks and changes along the way, 0:07:39.920 --> 0:07:42.440 I know that I can safely jump on those opportunities 0:07:42.480 --> 0:07:46.360 to actually help save money and jump on some great bargains, 0:07:46.720 --> 0:07:49.040 but I know the moment I've ticked that box and 0:07:49.080 --> 0:07:52.560 made the most of those opportunities, I can then return 0:07:52.720 --> 0:07:57.239 back with clarity direction as to which goal is next, 0:07:57.280 --> 0:07:59.880 which is my case, returning back to those emergencies, save 0:08:00.200 --> 0:08:02.880 if I haven't built them up sufficiently yet or not. 0:08:03.520 --> 0:08:06.880 So that flexibility can allow you to safely deviate if 0:08:06.920 --> 0:08:09.520 you like, but then it directs you straight back to 0:08:09.520 --> 0:08:12.360 what you need to focus on as a priority. And 0:08:12.480 --> 0:08:16.720 number five peace of mind. Having a financial game plan 0:08:16.840 --> 0:08:21.080 is like having instructions cooking instructions. You see, my game 0:08:21.120 --> 0:08:24.640 plan has been really carefully mapped out. I have not 0:08:24.800 --> 0:08:27.880 rushed this at all. I have written it down, I've reviewed, 0:08:28.240 --> 0:08:31.160 I've changed it, I've reviewed it again, I've adjusted it, 0:08:31.240 --> 0:08:33.760 I've reviewed it again. I've then expanded it, I've reviewed 0:08:33.760 --> 0:08:36.679 it again. I've then tweaked and changed it, and then 0:08:36.720 --> 0:08:40.439 I've reviewed it and then I've improved it. So by 0:08:40.520 --> 0:08:44.160 having these really clear instructions and this list of priorities 0:08:44.240 --> 0:08:48.800 and this understanding of time and deadlines, I have this 0:08:49.000 --> 0:08:53.720 incredible sense of purpose and a direction to follow that's 0:08:53.720 --> 0:08:55.840 going to help me, to the best of my ability 0:08:55.920 --> 0:08:59.560 achieve those goals. And I know that I'm not going 0:08:59.600 --> 0:09:02.040 to be wayting time. And what this has given me 0:09:02.160 --> 0:09:06.240 is a great sense of confidence and empowerment, and I 0:09:06.280 --> 0:09:09.760 actually feel really excited about achieving these goals and following 0:09:09.800 --> 0:09:12.920 these instructions. As I said, it's like cooking instructions being 0:09:13.280 --> 0:09:16.160 given a new dish to try that's a little bit 0:09:16.200 --> 0:09:18.400 out of our skill set, a little bit complicated, but 0:09:18.440 --> 0:09:21.839 then the instructions are clearly detailed in front of us 0:09:21.920 --> 0:09:25.959 with steps. Having a game plan is exactly the same thing. 0:09:26.000 --> 0:09:29.920 It gives you instructions to follow, and particularly the beginning 0:09:30.000 --> 0:09:32.839 of the year or throughout the year, when there are 0:09:32.960 --> 0:09:36.760 natural setbacks and challenges, coming back to those instructions can 0:09:36.920 --> 0:09:40.160 really help boost your confidence and actually allow you to 0:09:40.240 --> 0:09:43.520 see that you might quite possibly be able to do this, 0:09:43.679 --> 0:09:45.720 that is, achieve all of those goals and dreams that 0:09:45.760 --> 0:09:48.200 you set for yourself. This is the power of a 0:09:48.240 --> 0:09:51.480 game plan. All right, now you understand why you need 0:09:51.520 --> 0:09:53.280 to have a game plan, and you now feel excited 0:09:53.280 --> 0:09:55.960 about working on your game plan. Let me share with 0:09:56.000 --> 0:09:59.160 you my game plan to achieve my goals, because I'm 0:09:59.160 --> 0:10:01.520 sure some of you will have very similar goals to me, 0:10:02.040 --> 0:10:03.920 and maybe some of the ideas. 0:10:03.480 --> 0:10:05.800 That I share with you to help achieve my goals, 0:10:05.880 --> 0:10:06.400 you can. 0:10:06.320 --> 0:10:09.520 Maybe apply if appropriate few obviously with the guidance of 0:10:09.520 --> 0:10:13.160 a financial planner, and help improve your own financial situation. 0:10:13.920 --> 0:10:16.959 So one of my goals is to help rebuild our 0:10:17.080 --> 0:10:21.480 financial float and emergency money. Now, when I did the 0:10:21.480 --> 0:10:26.040 Sugar Mama ten Day Financial Reset Challenge, I realized that 0:10:26.120 --> 0:10:28.720 our emergency money is not really where it really should 0:10:28.800 --> 0:10:30.840 be at this point in time, and our financial float 0:10:30.880 --> 0:10:33.920 got a bit of a hammering during Christmas and obviously 0:10:34.000 --> 0:10:37.920 all the ongoing expenses that come with school holidays. So 0:10:38.120 --> 0:10:40.240 I now know what I need to do, and my 0:10:40.320 --> 0:10:42.920 game plan to rebuild those is to go back to 0:10:42.960 --> 0:10:45.680 our budget and look at tweaks and changes that we 0:10:45.760 --> 0:10:48.520 can make to help shift more money as a priority 0:10:48.559 --> 0:10:51.560 into our financial float. And just so you understand, if 0:10:51.600 --> 0:10:54.320 you've done my budgeting and cash flow course, a financial 0:10:54.320 --> 0:10:57.079 floats is designed to help prepare for all those ad 0:10:57.120 --> 0:11:01.600 hoc expenses like birthday presents, Valentine Day, any sort of 0:11:01.679 --> 0:11:05.000 religious festivities that you choose to celebrate such as Christmas, 0:11:05.480 --> 0:11:07.400 and it's for all those kind of irregular bills that 0:11:07.480 --> 0:11:09.679 kind of throw us off guard. Like you know, when 0:11:09.840 --> 0:11:12.640 the retro comes through, all the car insurance, the CTP, 0:11:13.240 --> 0:11:15.720 that's what that financial float is designed to help you 0:11:15.840 --> 0:11:18.320 get through. So I need to go back to the budget, 0:11:18.320 --> 0:11:20.240 which I've already done, make some tweaks and changes, and 0:11:20.240 --> 0:11:23.120 I'm also going to be including one month the weekend 0:11:23.160 --> 0:11:25.600 where we have a no spend weekend, so it can 0:11:25.640 --> 0:11:29.040 really help us boost additional money that can be shifted 0:11:29.080 --> 0:11:32.720 across in rebuilding that float and of course rebuilding our 0:11:32.840 --> 0:11:37.160 emergency money. The second goal that I have shared with 0:11:37.200 --> 0:11:40.240 you is our goal to have a holiday, a family 0:11:40.240 --> 0:11:44.400 holiday skiing in Queenstown, New Zealand. Now I'm excited to 0:11:44.440 --> 0:11:46.559 share with you. Already in the process of doing this, 0:11:46.840 --> 0:11:51.280 so we're booking all of our flights on Frequent Flyer points. 0:11:52.040 --> 0:11:54.520 We are also issues a little bit controversial, but we're 0:11:54.520 --> 0:11:57.360 going to be pulling the kids out of school now 0:11:57.440 --> 0:12:02.000 by traveling outside of school holidays, the cost of accommodation 0:12:03.040 --> 0:12:05.600 and the amount of points that we need to book 0:12:05.640 --> 0:12:10.480 those flights is significantly cheaper, like twenty percent up to 0:12:10.600 --> 0:12:13.719 thirty percent cheaper. I'm also going to be looking at 0:12:13.720 --> 0:12:16.520 buying package deals, especially when it comes to our lift 0:12:16.559 --> 0:12:20.640 passes and skier gear rental. There are some great offers 0:12:20.640 --> 0:12:22.200 going at the moment. I'm going to make sure I 0:12:22.400 --> 0:12:25.680 lock those in before those prices start to adjust and 0:12:25.800 --> 0:12:28.319 change as we get closer. So the key points are 0:12:28.320 --> 0:12:31.160 obviously using frequent fly points. Tom and I pretty much 0:12:31.240 --> 0:12:35.400 fly religiously with one particular airline that we both love, 0:12:35.920 --> 0:12:39.080 and we both cross share our points to help maximize 0:12:39.200 --> 0:12:43.440 booking as many tickets as possible for free. And because 0:12:43.480 --> 0:12:45.559 Tom flies so much at work, he's got a great 0:12:45.600 --> 0:12:48.440 status with one of the airlines, which means it gets 0:12:48.480 --> 0:12:51.840 the opportunity to book flights with less stress less drama. 0:12:51.960 --> 0:12:54.720 It also means we potentially get upgrades along the way. 0:12:55.280 --> 0:12:57.160 But the most important point that I also want to 0:12:57.160 --> 0:13:01.640 share here with you is a holiday savings I always 0:13:01.679 --> 0:13:04.920 recommend that everyone have a lifestyle goal account, and this 0:13:04.960 --> 0:13:07.360 is something I go into detail and explain who the 0:13:07.440 --> 0:13:11.040 Sugar Mamma Budget and cash Flow Academy. So this is 0:13:11.080 --> 0:13:14.160 a separate online savings account that you contribute to every 0:13:14.200 --> 0:13:16.840 time you get paid, In fact, the moment you get paid. 0:13:17.360 --> 0:13:18.720 It's a preage. 0:13:18.400 --> 0:13:21.400 Determined a great amount flat amount that you put into 0:13:21.400 --> 0:13:23.880 that account every single month or every single foot night 0:13:23.960 --> 0:13:26.320 or wherever often you get paid and this can build 0:13:26.400 --> 0:13:28.520 up over time. So when it comes to wanting to 0:13:28.520 --> 0:13:31.640 go on holiday, on booking those flights, booking that accommodation, 0:13:32.160 --> 0:13:35.840 there is sufficient money. They're ready to go. And it 0:13:35.960 --> 0:13:38.160 means that you have not only money paid for the 0:13:38.160 --> 0:13:43.040 accommodation and the airfare and all those spending money things 0:13:43.080 --> 0:13:47.360 like food and activities entertainment whilst on holidays, it means 0:13:47.400 --> 0:13:50.560 that you then come home without the stress and drama 0:13:50.679 --> 0:13:54.680 and guilt and embarrassment and shame of having debt. I 0:13:54.720 --> 0:13:57.079 have never gone on a holiday and come back to debt. 0:13:57.120 --> 0:13:59.640 It would actually ruin all the benefits and blessings and 0:13:59.679 --> 0:14:03.760 pleasure that comes from traveling and taking yourself away from 0:14:03.840 --> 0:14:07.719 groundhole day. So we be using those approaches to make 0:14:07.760 --> 0:14:10.839 sure our holiday is booked in, it's paid for upfront, 0:14:11.320 --> 0:14:15.800 and we come home with absolutely no debt whatsoever. And 0:14:15.840 --> 0:14:18.640 again this is a non negotiable. And anyone's interested in 0:14:18.640 --> 0:14:21.000 doing the Sugar Mamma Budget and cash Flow Academy, which 0:14:21.240 --> 0:14:23.000 does include a one on one session of me, I've 0:14:23.040 --> 0:14:26.840 popped the enrollment details in the podcast notes for you. 0:14:27.640 --> 0:14:33.120 Goal number three and that is renovating our kitchen. Now 0:14:33.120 --> 0:14:35.520 I'm going to share something with you, and I do 0:14:35.600 --> 0:14:37.760 have a bit of an I guess an unfair advantage 0:14:37.800 --> 0:14:40.480 you could save from this particular goal. But one of 0:14:40.480 --> 0:14:42.400 my goals from last year was actually to save up 0:14:42.440 --> 0:14:45.280 money for this goal, and we got so close to 0:14:45.400 --> 0:14:49.240 achieving this goal by regular savings, Tom and I both 0:14:49.320 --> 0:14:52.800 taking on additional ad hoc work to help boost the 0:14:52.840 --> 0:14:56.200 funds that went into this savings account. But something really 0:14:56.240 --> 0:15:00.760 frustrating happened at the end of twenty twenty four. Kitchen 0:15:01.040 --> 0:15:05.520 renovation savings took a massive nose dive. We had some 0:15:05.680 --> 0:15:09.040 unexpected expenses that were not our fault, completely out of 0:15:09.280 --> 0:15:13.720 our hands, and we weren't told about them, and literally 0:15:13.760 --> 0:15:17.040 got sent a huge bill with ten days to quickly 0:15:17.040 --> 0:15:20.120 pay it. And it was a small business behind this 0:15:20.320 --> 0:15:22.640 that had actually helped us, and we just went, Okay, 0:15:22.680 --> 0:15:26.120 it's Christmas time, everyone's suffering with cash show, we need 0:15:26.120 --> 0:15:28.680 to make sure we paid this as a priority. So 0:15:29.240 --> 0:15:32.160 as heartbreaking as it was and frustrating it was, we 0:15:32.240 --> 0:15:34.800 just took the money out of our kitchen innovation funds 0:15:34.880 --> 0:15:39.520 and paid it. It was a bitter taste in my mouth. 0:15:39.720 --> 0:15:42.680 I won't lie, but I share this with you to 0:15:42.840 --> 0:15:44.680 let you see that I am human just like you. 0:15:45.200 --> 0:15:49.280 This was so disappointing. I was so upset and disheartened 0:15:49.720 --> 0:15:51.360 because it did come out of the blue and there 0:15:51.400 --> 0:15:53.000 was nothing we could do about it. And it's just 0:15:53.040 --> 0:15:55.800 part of life's rich tapestry. You know, nothing is ever 0:15:55.920 --> 0:15:59.280 smooth sailing onward and upwards. It's top twitsts and turns 0:16:00.120 --> 0:16:03.720 backwards then you might leapfrog again. So anyway, we had 0:16:03.720 --> 0:16:05.360 a bit of a we have a bit of an advantage, 0:16:05.360 --> 0:16:07.760 you could say, because we are returning back to the 0:16:07.840 --> 0:16:10.720 remaining savings that are still in that account, even though 0:16:10.720 --> 0:16:14.080 they've obviously been eaten away substantially, And we're already hitting 0:16:14.160 --> 0:16:16.920 the ground running with taking on some extra work that 0:16:17.000 --> 0:16:20.120 Tom and I both can do as we juggle family 0:16:20.200 --> 0:16:23.760 and friends and some sort of sense of normalcy and 0:16:23.840 --> 0:16:27.560 balance in life. So we are slowly and steadily building 0:16:27.560 --> 0:16:30.920 this up, and we plan to hopefully be able to 0:16:30.920 --> 0:16:35.240 have enough money by July so that we can get 0:16:35.320 --> 0:16:40.200 the whole kitchen paid for upfront without taking on any debt. Now, 0:16:40.280 --> 0:16:42.240 I know some people were thinking, why wouldn't you just 0:16:42.280 --> 0:16:45.400 like redraw off your home loan, like, there's surely extra 0:16:45.480 --> 0:16:49.120 money sitting in your redrawer facility. Well, no, I know 0:16:49.160 --> 0:16:51.280 a lot. It's really tempting to do that, and trust 0:16:51.320 --> 0:16:54.680 me across my mind plenty of times, but our home 0:16:54.760 --> 0:16:58.160 is non deductible debt. The more I can focus on 0:16:58.240 --> 0:17:02.320 paying the home down by also taking a mindful flow 0:17:02.520 --> 0:17:04.679 around money and making sure that we add value to 0:17:04.720 --> 0:17:07.080 the home and increase the equity in our home by 0:17:07.840 --> 0:17:10.399 a new kitchen will hopefully add value to the price 0:17:10.440 --> 0:17:10.960 of the home. 0:17:11.720 --> 0:17:12.720 I really want our. 0:17:12.680 --> 0:17:14.840 Mortgage to be coming down. I want to see it 0:17:14.920 --> 0:17:16.719 coming down at a faster rate than what it is. 0:17:17.160 --> 0:17:19.400 So no, I don't want to take a step backwards 0:17:19.440 --> 0:17:22.000 by using extra funds that we've paid onto the mortgage 0:17:22.119 --> 0:17:23.720 to pay for the kitchen. I really want to pay 0:17:23.720 --> 0:17:26.280 for it separately and know that we are still on 0:17:26.480 --> 0:17:29.120 top of our game plan to eventually pay off our 0:17:29.200 --> 0:17:32.160 home and own it outright in full, so that when 0:17:32.200 --> 0:17:36.040 we enter retirement, we enter retirement being debt free, or 0:17:36.080 --> 0:17:39.800 at least mortgage free. So that's a really strict boundary 0:17:39.840 --> 0:17:42.080 that I've set in place, and that one is certainly 0:17:42.119 --> 0:17:45.800 definitely not flexible. I'm saving up for this kitchen and 0:17:45.840 --> 0:17:47.600 nothing is going to stop me. And hopefully I have 0:17:47.640 --> 0:17:50.359 no more setbacks along my way. But here you can see, 0:17:50.400 --> 0:17:53.480 hopefully how normal I am, just like you in working 0:17:53.480 --> 0:17:56.520 on your goals. I have setbacks, I have things that 0:17:56.640 --> 0:17:59.679 just happen, and I feel the same frustration that you 0:17:59.680 --> 0:18:01.959 feel when these things do happen to you, as they 0:18:02.000 --> 0:18:04.119 do to everyone else. No one is immune from this 0:18:05.240 --> 0:18:07.360 goal number four and this is the big one again 0:18:07.400 --> 0:18:09.520 to remind you of that. You know advice of going 0:18:09.520 --> 0:18:11.040 to see a financial planner, and this is not a 0:18:11.080 --> 0:18:14.679 strategy I recommend for everyone. It's a higher strategy and 0:18:14.720 --> 0:18:17.119 that is my goal to invest one hundred thousand dollars 0:18:17.160 --> 0:18:22.760 into the thousand dollar project portfolio. Now, the way I'm 0:18:22.800 --> 0:18:27.399 going to be doing this is by debt recycling. That is, 0:18:28.240 --> 0:18:33.400 taking out a separate investment loan secured against our family 0:18:33.440 --> 0:18:37.640 home to go and buy more shares for the thousand 0:18:37.680 --> 0:18:40.800 dollars project. Now, as I said, this is a high 0:18:40.920 --> 0:18:45.600 risk investment strategy. It is powerful though for the right 0:18:45.640 --> 0:18:47.480 people that use it at the right time and for 0:18:47.520 --> 0:18:51.080 the right reasons. I would only ever recommend someone do 0:18:51.160 --> 0:18:54.639 this after seeing a mortgage broker that can specialize in 0:18:54.680 --> 0:18:56.879 this area that has a huge amount of experience in 0:18:57.000 --> 0:18:59.520 setting this up the right way the first time and 0:18:59.720 --> 0:19:03.680 under the guidance of a quality financial planner that actually 0:19:03.720 --> 0:19:07.359 specializes in wealth creation strategies like this. And if you 0:19:07.440 --> 0:19:10.159 need a recommendation to either a good mortage broker or 0:19:10.200 --> 0:19:12.520 for a good financial planner that does this, send me 0:19:12.560 --> 0:19:15.040 an email or sorry, send me a pre dm is 0:19:15.080 --> 0:19:18.640 what's best on Instagram and I will happily pass some 0:19:18.800 --> 0:19:20.920 contacts over to you for you to have a chat 0:19:20.920 --> 0:19:24.159 with them and get some personal advice. But this is 0:19:24.200 --> 0:19:26.679 my game plan as to how I'm doing it to 0:19:26.800 --> 0:19:30.399 help manage it in a smart, intelligent, wise way. So 0:19:30.440 --> 0:19:32.400 the first thing is I'm actually going to leave this 0:19:32.480 --> 0:19:36.120 towards the end of the year. I have a lot 0:19:36.119 --> 0:19:39.480 of goals to achieve. My number one priority is rebuilding 0:19:39.480 --> 0:19:43.000 our float, rebuilding our emergency money, obviously, going on that 0:19:43.040 --> 0:19:45.880 family holiday which will ideally do as frugally as possible, 0:19:46.600 --> 0:19:50.360 and of course retivating our kitchen. So I really want 0:19:50.400 --> 0:19:54.600 to get those things ticked off first. I will then 0:19:54.840 --> 0:19:57.760 come back and see what the cash flow is actually 0:19:57.800 --> 0:20:01.520 looking like after we've done the kitchen. Now, assuming I 0:20:01.560 --> 0:20:03.760 am able to save up enough money by July to 0:20:03.800 --> 0:20:07.000 do our kitchen. All that money that I was then 0:20:07.160 --> 0:20:10.080 saving up and redirecting towards the kitchen or even the 0:20:10.119 --> 0:20:15.199 emergency money, can now go towards building up some savings. 0:20:15.520 --> 0:20:18.399 Because what I plan to do again, this is not 0:20:18.560 --> 0:20:22.280 personal advice whatsoever or strategic advice. I want to do 0:20:22.320 --> 0:20:25.080 this in a really sensible way. So when it comes 0:20:25.119 --> 0:20:29.840 to applying for this investment loan, hopefully seeing the kitchen 0:20:29.960 --> 0:20:33.600 being renovated, and we do a bank valuation, hopefully the 0:20:33.680 --> 0:20:35.639 value of our home will be higher because they can 0:20:35.680 --> 0:20:37.880 see there's a brand new, shiny kitchen and some few 0:20:37.880 --> 0:20:39.760 other things we've done around the house to help. 0:20:39.640 --> 0:20:40.800 Improve the value. 0:20:41.160 --> 0:20:43.159 So it will mean that my LVR, which is my 0:20:43.240 --> 0:20:46.680 loan to value ratio, will be even better. I will 0:20:46.720 --> 0:20:50.800 only be borrowing a maximum of one hundred thousand dollars. 0:20:51.720 --> 0:20:56.120 I will also be pre paying the interest on this 0:20:56.359 --> 0:20:59.840 investment loan. Now, by doing this it means for them 0:21:00.359 --> 0:21:03.120