1 00:00:00,280 --> 00:00:04,200 Speaker 1: Good morning everyone, and welcome back to Sugar Mama's Fireplay, 2 00:00:04,680 --> 00:00:07,760 Speaker 1: the one stop destination where you get your financial education, 3 00:00:08,320 --> 00:00:13,080 Speaker 1: financial motivation, and financial inspiration to start seeing your financial 4 00:00:13,119 --> 00:00:15,239 Speaker 1: goals and dreams unfold. 5 00:00:14,840 --> 00:00:15,560 Speaker 2: In front of you. 6 00:00:16,320 --> 00:00:19,560 Speaker 1: This morning, we are joined by annabel Annabel is the 7 00:00:19,640 --> 00:00:24,320 Speaker 1: single mother who is actually winning the game. She is 8 00:00:24,520 --> 00:00:27,479 Speaker 1: achieving her financial goals with no one helping her, and 9 00:00:27,520 --> 00:00:32,480 Speaker 1: she's a brilliant source of financial education, inspiration and motivation herself. 10 00:00:33,040 --> 00:00:36,120 Speaker 1: And she shares with us the importance of having a 11 00:00:36,159 --> 00:00:39,800 Speaker 1: positive mindset and dreaming big when it comes to your 12 00:00:39,800 --> 00:00:43,680 Speaker 1: financial goals. So sit back, relax, and get ready to 13 00:00:43,760 --> 00:01:05,520 Speaker 1: hear this incredible story. Now, before we begin to share 14 00:01:05,600 --> 00:01:07,240 Speaker 1: this story, I want to remind you that all of 15 00:01:07,280 --> 00:01:11,000 Speaker 1: my advice is general in nature and for educational purposes only. 16 00:01:11,120 --> 00:01:14,400 Speaker 1: It's never personal advice, product advice, or investment advice, so 17 00:01:14,400 --> 00:01:17,039 Speaker 1: please always bear that in mind. Annabelle, thank you so 18 00:01:17,160 --> 00:01:19,200 Speaker 1: much for coming on this morning's episode. 19 00:01:19,440 --> 00:01:21,319 Speaker 2: How are you good? 20 00:01:21,440 --> 00:01:22,759 Speaker 3: Thanks, Canna, how are you going? 21 00:01:23,360 --> 00:01:24,399 Speaker 2: I'm well, I'm well. 22 00:01:24,680 --> 00:01:26,560 Speaker 1: I have to say, you know you're when you sent 23 00:01:26,600 --> 00:01:30,559 Speaker 1: me a message on Instagram. You know, it was really 24 00:01:30,640 --> 00:01:33,640 Speaker 1: quite incredible what you shared with me, and I instantly 25 00:01:33,840 --> 00:01:35,880 Speaker 1: had to have you on the show and for you 26 00:01:35,920 --> 00:01:37,920 Speaker 1: to be able to say what happened to you and 27 00:01:37,959 --> 00:01:39,840 Speaker 1: what you went through in your own words, because I 28 00:01:39,880 --> 00:01:43,440 Speaker 1: feel like right now everyone is just feeling a little 29 00:01:43,440 --> 00:01:46,600 Speaker 1: bit lost and overwhelmed and defeated, and I think your 30 00:01:46,680 --> 00:01:50,160 Speaker 1: story just shows the importance of having a positive mindset 31 00:01:50,280 --> 00:01:52,360 Speaker 1: and doing the best you can do. And you know 32 00:01:52,400 --> 00:01:54,680 Speaker 1: the importance of little things adding up here and there, 33 00:01:54,720 --> 00:01:57,680 Speaker 1: and you know how you can really transform your life 34 00:01:57,720 --> 00:01:59,960 Speaker 1: when you have goals and start building up your own 35 00:02:00,160 --> 00:02:04,600 Speaker 1: financial literacy. Can you share with our listeners what initially 36 00:02:04,680 --> 00:02:07,240 Speaker 1: motivated you to take control of your financial future and 37 00:02:07,280 --> 00:02:11,400 Speaker 1: start your journey towards building a substantial share portfolio. 38 00:02:12,440 --> 00:02:12,680 Speaker 2: Yeah? 39 00:02:12,800 --> 00:02:16,040 Speaker 3: Sure, if I just give you a background. I'm fifty three, 40 00:02:16,639 --> 00:02:20,480 Speaker 3: a solo mum with two gorgeous girls eighteen and fifteen 41 00:02:20,520 --> 00:02:24,120 Speaker 3: at the moment, they are separated. When the kids were 42 00:02:24,160 --> 00:02:28,360 Speaker 3: three in six and then two years after that, unfortunately, 43 00:02:28,440 --> 00:02:32,639 Speaker 3: my ex husband passed away unexpectedly, so at that time 44 00:02:32,800 --> 00:02:36,080 Speaker 3: the children were five and age and the result of 45 00:02:36,120 --> 00:02:38,480 Speaker 3: this was that I took on one hundred percent solo 46 00:02:38,560 --> 00:02:42,840 Speaker 3: responsibility for raising the children and that was on all levels. 47 00:02:42,840 --> 00:02:46,519 Speaker 3: So that was their emotional needs, especially after losing their father, 48 00:02:47,280 --> 00:02:50,360 Speaker 3: their physical and logistics needs. You know, they were with 49 00:02:50,440 --> 00:02:53,000 Speaker 3: me one hundred percent of the time. I was doing 50 00:02:53,040 --> 00:02:56,720 Speaker 3: all the physical work, so drop off pickups, running between 51 00:02:56,760 --> 00:03:00,639 Speaker 3: extracurricular activities, you know, during the early mornings in the 52 00:03:00,720 --> 00:03:04,239 Speaker 3: late nights. And also their financial needs, so the children's 53 00:03:04,240 --> 00:03:08,640 Speaker 3: school fees, before and after school care, those associated expenses. 54 00:03:08,760 --> 00:03:12,680 Speaker 3: They went from fifty percent shared to one hundred percent responsibility. 55 00:03:13,600 --> 00:03:16,600 Speaker 3: My ex husband didn't have any life insurance and he 56 00:03:16,680 --> 00:03:19,960 Speaker 3: had very little super for the children. He had his 57 00:03:20,000 --> 00:03:23,080 Speaker 3: own business and he didn't I don't think consider those 58 00:03:23,160 --> 00:03:26,320 Speaker 3: as a priority. So the journey has definitely had its 59 00:03:26,440 --> 00:03:29,720 Speaker 3: challenges along the way, but it's also been the most 60 00:03:29,760 --> 00:03:33,639 Speaker 3: rewarding journey for a parent and difficult, and as difficult 61 00:03:34,160 --> 00:03:36,760 Speaker 3: as it's been, it's been I guess a huge amount 62 00:03:36,800 --> 00:03:40,200 Speaker 3: of growth on my part and also freedom, albeit a 63 00:03:40,240 --> 00:03:44,280 Speaker 3: little scary, and freedom that comes with I guess making 64 00:03:44,360 --> 00:03:47,600 Speaker 3: all the decisions solo, so without the need to agree 65 00:03:47,720 --> 00:03:51,440 Speaker 3: or negotiate or compromise really with the next husband. I'd 66 00:03:51,440 --> 00:03:53,880 Speaker 3: say being a solo mum, I was borced to take 67 00:03:53,880 --> 00:03:56,680 Speaker 3: control of my own financial journey, there really was no 68 00:03:56,760 --> 00:04:00,640 Speaker 3: option for me. My financial wellbeing and my children overall 69 00:04:00,680 --> 00:04:04,120 Speaker 3: well being really rested solely on my shoulders. So my 70 00:04:04,200 --> 00:04:06,880 Speaker 3: number one focus was to make sure that I provided 71 00:04:06,880 --> 00:04:09,520 Speaker 3: for my children and gave them that sense of stability 72 00:04:09,520 --> 00:04:14,800 Speaker 3: and security. Yeah, if you want a bit of a background, 73 00:04:14,840 --> 00:04:19,280 Speaker 3: I'd say I'd always been reasonably good with money. I 74 00:04:19,320 --> 00:04:22,640 Speaker 3: had a well paid job. I was definitely able to 75 00:04:22,680 --> 00:04:26,479 Speaker 3: stand on my own two feet financially, and I usually 76 00:04:26,560 --> 00:04:29,320 Speaker 3: managed to spend less than I own. I was able 77 00:04:29,360 --> 00:04:33,200 Speaker 3: to pay the bills and handle emergencies, so I knew 78 00:04:33,240 --> 00:04:35,479 Speaker 3: that in the longer term, though, I could do more 79 00:04:35,520 --> 00:04:40,560 Speaker 3: than just make ends meet. However, I had to get 80 00:04:40,600 --> 00:04:45,280 Speaker 3: through a few financial hardships and hurdles in the initial stages, 81 00:04:45,520 --> 00:04:48,880 Speaker 3: which included paying for a very costly separational divorce which 82 00:04:48,960 --> 00:04:51,159 Speaker 3: kind of dragged on for a number of years before 83 00:04:51,200 --> 00:04:54,119 Speaker 3: my ex husband passed away, and I was also left 84 00:04:54,240 --> 00:04:56,960 Speaker 3: paying off a substantial debt he had incurred when he 85 00:04:57,040 --> 00:05:00,760 Speaker 3: passed away in relation to a business venture. My name 86 00:05:00,839 --> 00:05:03,120 Speaker 3: had been on the loan because we were married at 87 00:05:03,120 --> 00:05:07,599 Speaker 3: the time. But fast forward ten years later, and after 88 00:05:07,680 --> 00:05:11,559 Speaker 3: overcoming those financial setbacks and having been focused on paying 89 00:05:11,600 --> 00:05:15,080 Speaker 3: down my mortgage. I realized that I not only should, 90 00:05:15,120 --> 00:05:17,640 Speaker 3: but very much could take control of my longer term 91 00:05:17,680 --> 00:05:20,839 Speaker 3: financial independence. I could plan for what I wanted that 92 00:05:20,920 --> 00:05:25,120 Speaker 3: to look like. I identified my numbers, you know, from 93 00:05:25,440 --> 00:05:28,479 Speaker 3: my number for my share pot, my number for my 94 00:05:28,520 --> 00:05:32,000 Speaker 3: emergency fund, and then I kind of started to reverse 95 00:05:32,040 --> 00:05:35,680 Speaker 3: engineer and work backwards from there to identify what milestones 96 00:05:35,720 --> 00:05:38,440 Speaker 3: I needed to achieve, you know, year by year, month 97 00:05:38,520 --> 00:05:40,880 Speaker 3: by month, and see if that was possible and what 98 00:05:40,920 --> 00:05:45,080 Speaker 3: I needed to change to make that possible. Yeah. 99 00:05:45,120 --> 00:05:50,920 Speaker 1: Wow, So you've gone through a very expensive and i'm 100 00:05:50,920 --> 00:05:54,719 Speaker 1: sure emotionally and financially challenging divorce. 101 00:05:55,920 --> 00:05:57,440 Speaker 2: Then you've lost. 102 00:05:57,160 --> 00:05:59,400 Speaker 1: Your ex husband and you know to look after the 103 00:05:59,480 --> 00:06:05,560 Speaker 1: girls one hundred percent full time emotionally and financially and physically. 104 00:06:06,440 --> 00:06:12,080 Speaker 1: Then you've actually inherited your ex husband's debt after everything 105 00:06:12,120 --> 00:06:15,320 Speaker 1: you've gone through. Yes, I did, Yes, But yet you 106 00:06:15,400 --> 00:06:19,360 Speaker 1: still push on and use this as an opportunity, you know, 107 00:06:19,440 --> 00:06:24,719 Speaker 1: with great responsibility to step up and build something quite 108 00:06:24,720 --> 00:06:28,600 Speaker 1: incredible for your mental and emotional and financial stability, but 109 00:06:28,680 --> 00:06:31,080 Speaker 1: also for your beautiful girls as well. 110 00:06:32,200 --> 00:06:33,800 Speaker 3: Correct, Yes, as much as I can. 111 00:06:33,920 --> 00:06:39,120 Speaker 1: Yes, I mean losing you know an ex husband, and 112 00:06:39,200 --> 00:06:41,039 Speaker 1: then you know going through everything you've gone through is 113 00:06:41,080 --> 00:06:44,680 Speaker 1: not a small feet How would you say your perspective 114 00:06:44,920 --> 00:06:48,320 Speaker 1: of the importance of financial wellbeing and being prepared when 115 00:06:48,360 --> 00:06:50,720 Speaker 1: it comes to money has evolved. 116 00:06:52,480 --> 00:06:55,039 Speaker 3: Yeah, this was a real eye opener for me, Kenna. 117 00:06:55,360 --> 00:06:58,160 Speaker 3: It was a strong message not to bury my head 118 00:06:58,200 --> 00:07:02,479 Speaker 3: in the sand and leave financial independence to chance. As 119 00:07:02,520 --> 00:07:06,360 Speaker 3: the sole provider, I had to manage immediate expenses, so 120 00:07:06,440 --> 00:07:10,720 Speaker 3: the typical household expenses, so the more geared utilities, groceries, 121 00:07:10,800 --> 00:07:14,360 Speaker 3: health insurance. I now had to pay for all of these, 122 00:07:14,480 --> 00:07:18,360 Speaker 3: So this required some budgeting to ensure all our immediate 123 00:07:18,400 --> 00:07:22,280 Speaker 3: needs were met. I had never really budgeted before this, 124 00:07:22,440 --> 00:07:24,960 Speaker 3: and to be honest, it's not something I enjoy. I 125 00:07:25,000 --> 00:07:28,840 Speaker 3: do enjoy playing, I do enjoy planning for my financial future, 126 00:07:29,320 --> 00:07:32,040 Speaker 3: and I do look at that from a positive experience. 127 00:07:32,400 --> 00:07:34,960 Speaker 3: But I felt budgeting was something which meant I had 128 00:07:35,000 --> 00:07:37,800 Speaker 3: to limit myself in our spending. So for me, there 129 00:07:37,880 --> 00:07:42,080 Speaker 3: was some negative connotation to that word budget. Initially, I 130 00:07:42,120 --> 00:07:45,360 Speaker 3: now understand it's difficult to have one without the other, 131 00:07:45,560 --> 00:07:48,000 Speaker 3: and they really do go hand in hand, don't they. 132 00:07:48,080 --> 00:07:49,840 Speaker 3: Our budget and our financial goals. 133 00:07:50,320 --> 00:07:53,520 Speaker 1: Oh one d I mean, I think, you know, look 134 00:07:53,560 --> 00:07:56,400 Speaker 1: at my own personal finances. It's the goals that are 135 00:07:56,440 --> 00:07:59,800 Speaker 1: in my budget that are successfully achieved and on time. 136 00:08:00,760 --> 00:08:02,360 Speaker 1: And you know, I look, I mean, I look at 137 00:08:02,360 --> 00:08:04,120 Speaker 1: my budget as my safe place. 138 00:08:04,360 --> 00:08:04,520 Speaker 3: You know. 139 00:08:04,760 --> 00:08:07,320 Speaker 1: It means that I don't blow money and run out 140 00:08:07,360 --> 00:08:09,240 Speaker 1: of money before at the end of my pay cycle. 141 00:08:09,680 --> 00:08:11,840 Speaker 1: You know, there's sufficient funds in there to pay for 142 00:08:11,960 --> 00:08:15,040 Speaker 1: the groceries and all the schedule direct debits and so forth. 143 00:08:15,080 --> 00:08:16,240 Speaker 2: So for me, it. 144 00:08:16,120 --> 00:08:20,600 Speaker 1: Helps keep my mental and financial stanity going. So, but 145 00:08:20,680 --> 00:08:22,840 Speaker 1: I can understand how a lot of people aren't quite 146 00:08:23,120 --> 00:08:25,160 Speaker 1: there yet. I think it takes that point where your 147 00:08:25,200 --> 00:08:28,040 Speaker 1: budget really starts to work for you actually realize how 148 00:08:28,080 --> 00:08:30,840 Speaker 1: important it is and how actually valuable it is in 149 00:08:30,880 --> 00:08:33,280 Speaker 1: your life if you want to get ahead financially. 150 00:08:34,200 --> 00:08:36,280 Speaker 3: Yeah, and I needed to plan for some of the 151 00:08:36,280 --> 00:08:40,520 Speaker 3: bigger costs, you know, the dental orthodontics for the kids, braces, 152 00:08:40,800 --> 00:08:44,040 Speaker 3: you know, car repairs, house repairs, that kind of stuff, 153 00:08:44,760 --> 00:08:48,599 Speaker 3: And the importance of an emergency fund really becomes paramount 154 00:08:48,840 --> 00:08:51,520 Speaker 3: for a solo parent. This really is your safety net 155 00:08:51,520 --> 00:08:56,319 Speaker 3: for unexpected costs. And I think if we hadn't experienced 156 00:08:56,360 --> 00:08:59,800 Speaker 3: this devastating chapter in our lives. It's unlikely that I 157 00:09:00,160 --> 00:09:03,240 Speaker 3: of put myself to work on a financial journey and 158 00:09:03,280 --> 00:09:07,760 Speaker 3: created these goals in a budget. I probably just floated along. 159 00:09:07,840 --> 00:09:11,600 Speaker 3: So it's definitely had a significant but positive impact on 160 00:09:11,840 --> 00:09:14,000 Speaker 3: financial planning and preparedness for me. 161 00:09:14,920 --> 00:09:18,480 Speaker 1: Oh, afinitely, And I thank blessing in disguise. But I 162 00:09:18,480 --> 00:09:21,120 Speaker 1: feel like, you know, there is the one civil lining 163 00:09:21,160 --> 00:09:25,479 Speaker 1: that's come out for you from going through this tragedy. 164 00:09:26,760 --> 00:09:29,520 Speaker 3: Yeah, and when things such as divorce or death, you know, 165 00:09:29,720 --> 00:09:32,320 Speaker 3: do happen, one very quickly learns that you need to 166 00:09:32,360 --> 00:09:35,120 Speaker 3: be prepared for the unexpected. I know you speak a 167 00:09:35,120 --> 00:09:38,400 Speaker 3: lot about having the right insurances in place. This is 168 00:09:38,520 --> 00:09:42,040 Speaker 3: especially important when the person has debt, including a mortgage, 169 00:09:42,679 --> 00:09:45,080 Speaker 3: and maybe not so important as you get older and 170 00:09:45,200 --> 00:09:47,880 Speaker 3: have less debt and your children leave home and become 171 00:09:47,880 --> 00:09:50,920 Speaker 3: financially independent. But you really want to protect your children 172 00:09:50,960 --> 00:09:51,920 Speaker 3: when they are young. 173 00:09:52,800 --> 00:09:55,200 Speaker 1: Oh, absolutely, And you know you need to think about 174 00:09:55,240 --> 00:09:57,120 Speaker 1: what is important for them to have if something was 175 00:09:57,160 --> 00:10:00,320 Speaker 1: to suddenly, you know, happen to you and you things 176 00:10:00,360 --> 00:10:04,640 Speaker 1: like educational requirements or you know, tertiary education, even what's 177 00:10:04,679 --> 00:10:06,600 Speaker 1: something you want to make sure that is blocked in 178 00:10:06,640 --> 00:10:08,560 Speaker 1: as a priority. And this is why it's so important 179 00:10:08,559 --> 00:10:12,520 Speaker 1: to go and get advice from someone who is qualified 180 00:10:12,559 --> 00:10:16,520 Speaker 1: and experienced in that area of life insurance, TBD, income protection, 181 00:10:16,640 --> 00:10:19,440 Speaker 1: trauma cover because they can actually help work out what 182 00:10:19,520 --> 00:10:23,040 Speaker 1: is the right level for yourself. Can we move on 183 00:10:23,080 --> 00:10:26,440 Speaker 1: to your savings, because you have successfully saved over one 184 00:10:26,520 --> 00:10:30,559 Speaker 1: hundred thousand dollars and you have brilliant dreams and goals 185 00:10:30,600 --> 00:10:32,560 Speaker 1: to grow this to a million dollars. 186 00:10:32,960 --> 00:10:35,680 Speaker 2: Can you talk me through the steps. 187 00:10:35,320 --> 00:10:37,280 Speaker 1: That you've taken that allow you to get started and 188 00:10:37,360 --> 00:10:39,079 Speaker 1: keep going with this, and how you've managed to stay 189 00:10:39,280 --> 00:10:40,480 Speaker 1: so incredibly focused. 190 00:10:40,760 --> 00:10:44,480 Speaker 3: Sure. So, I've been following and listening to Sugar Mama 191 00:10:44,520 --> 00:10:47,600 Speaker 3: religiously every month in morning for a while now, and 192 00:10:47,640 --> 00:10:51,960 Speaker 3: amongst other financial podcasts too, And last year you recommended 193 00:10:52,040 --> 00:10:55,640 Speaker 3: Peter thorn Hill's book Motivated Money, and you introduced him 194 00:10:55,679 --> 00:10:59,560 Speaker 3: as your mentor. I'm an avid reader and actually an 195 00:10:59,559 --> 00:11:01,920 Speaker 3: avid list listener of audiobooks, so I try to get 196 00:11:01,920 --> 00:11:04,680 Speaker 3: through one a week, and I also hope I'm a 197 00:11:04,679 --> 00:11:08,080 Speaker 3: lifelong learner. So I ordered Peter's book immediately and I 198 00:11:08,160 --> 00:11:12,000 Speaker 3: read it twice cover to cover, probably a month apart. 199 00:11:12,120 --> 00:11:16,600 Speaker 3: So I got an opportunity to digest the information. I 200 00:11:16,679 --> 00:11:19,800 Speaker 3: highlighted all the bits of it that I thought were 201 00:11:19,840 --> 00:11:22,679 Speaker 3: important for me, and quite frankly, the book blew my mind. 202 00:11:23,640 --> 00:11:25,720 Speaker 2: Yeah it's mind blowing. 203 00:11:26,520 --> 00:11:29,760 Speaker 3: Yes, Yes, So it was simple to understand. It had 204 00:11:29,800 --> 00:11:33,079 Speaker 3: a lot of great information, and it really provided clarity 205 00:11:33,200 --> 00:11:36,319 Speaker 3: on the share market, which I had never really understood 206 00:11:36,400 --> 00:11:40,040 Speaker 3: in any great detail up until then, and what I 207 00:11:40,040 --> 00:11:42,600 Speaker 3: thought was a little risky at the time. So there 208 00:11:42,600 --> 00:11:45,240 Speaker 3: were quite a few light bulb moments whilst I was 209 00:11:45,280 --> 00:11:48,319 Speaker 3: reading that, and following that, I binged on your book 210 00:11:48,360 --> 00:11:52,160 Speaker 3: Mindful Money over the Christmas break, and after reading both 211 00:11:52,200 --> 00:11:54,400 Speaker 3: of these I felt a lot more confident, I felt 212 00:11:54,440 --> 00:11:57,800 Speaker 3: more knowledgeable, and I felt prepared to take some action. 213 00:11:58,679 --> 00:12:01,120 Speaker 3: I'm a strong believer that the best way for me 214 00:12:01,200 --> 00:12:04,520 Speaker 3: to learn is to take action immediately as soon as 215 00:12:04,559 --> 00:12:06,559 Speaker 3: I've read a book, when it's fresh in my mind, 216 00:12:06,960 --> 00:12:09,920 Speaker 3: and even if it's a tiny step, I feel like 217 00:12:10,000 --> 00:12:11,800 Speaker 3: if I leave it till a little bit later, I 218 00:12:11,840 --> 00:12:14,760 Speaker 3: often gain insights and knowledge. But life it's busy, and 219 00:12:14,800 --> 00:12:17,679 Speaker 3: I don't go back and take action, and that ends 220 00:12:17,720 --> 00:12:20,600 Speaker 3: up being a nice learning experience, but it doesn't change 221 00:12:20,600 --> 00:12:21,240 Speaker 3: my life. 222 00:12:21,679 --> 00:12:23,120 Speaker 2: Exactly. I mean procrastination. 223 00:12:23,520 --> 00:12:26,520 Speaker 1: Is that probably one of the biggest issues I think 224 00:12:26,520 --> 00:12:29,040 Speaker 1: in Australia because we're all so busy, you know, raising 225 00:12:29,080 --> 00:12:30,720 Speaker 1: families and trying to. 226 00:12:30,760 --> 00:12:33,520 Speaker 2: Keep up on top of our own responsibilities, that you know, 227 00:12:33,600 --> 00:12:35,800 Speaker 2: fixing our finance gets pushed to the bottom of the list. 228 00:12:35,840 --> 00:12:37,679 Speaker 1: And this is why people come and see me and 229 00:12:37,760 --> 00:12:40,640 Speaker 1: say can I'm in the same position that I was 230 00:12:40,720 --> 00:12:43,080 Speaker 1: seven years ago, and every year I make this goal, 231 00:12:43,120 --> 00:12:45,640 Speaker 1: but nothing ever happens, and you know, I'm starting to 232 00:12:45,640 --> 00:12:48,280 Speaker 1: waste time, and that's where the sort of panic kicks in. 233 00:12:48,400 --> 00:12:51,760 Speaker 1: So it has to be you know, personal finance and 234 00:12:51,760 --> 00:12:53,760 Speaker 1: personal factual well being needs to be up there with 235 00:12:54,280 --> 00:12:56,440 Speaker 1: eating vegetables and getting series. 236 00:12:56,800 --> 00:12:58,319 Speaker 2: It's so important. 237 00:12:59,040 --> 00:13:01,000 Speaker 3: The first step py I did, I guess out of 238 00:13:01,080 --> 00:13:03,240 Speaker 3: that reading those two books, was to set up the 239 00:13:03,240 --> 00:13:06,600 Speaker 3: bank accounts which you recommended, and literally this took all 240 00:13:06,600 --> 00:13:11,520 Speaker 3: of five minutes on a sunny Sunday afternoon in the backyard. 241 00:13:11,640 --> 00:13:14,439 Speaker 3: The everyday expense is one I already had that obviously, 242 00:13:15,640 --> 00:13:19,000 Speaker 3: and I set up a separate emergency account, so prior 243 00:13:19,040 --> 00:13:21,800 Speaker 3: to that, I kind of kept my emergency money with 244 00:13:21,880 --> 00:13:25,000 Speaker 3: my everyday money, which really meant it was always going 245 00:13:25,080 --> 00:13:27,680 Speaker 3: up and down, and I didn't really have a figure 246 00:13:27,720 --> 00:13:30,960 Speaker 3: of what that was. So now I've got an emergency 247 00:13:31,000 --> 00:13:33,760 Speaker 3: fund figure in my head, even though I haven't necessarily 248 00:13:33,800 --> 00:13:37,480 Speaker 3: achieved it. I created a lifestyle one as well. It's 249 00:13:37,520 --> 00:13:40,640 Speaker 3: still got zero balance with this point in twenty twenty four, 250 00:13:41,720 --> 00:13:43,839 Speaker 3: and I created that wealth bill to one and it's 251 00:13:43,880 --> 00:13:46,320 Speaker 3: the wealth billed one that I decided to focus on 252 00:13:46,400 --> 00:13:49,120 Speaker 3: this year with the plan of this being far more 253 00:13:49,240 --> 00:13:54,120 Speaker 3: automated going forward in twenty twenty five. So I initially 254 00:13:54,160 --> 00:13:56,240 Speaker 3: set a goal for myself at the beginning of the 255 00:13:56,320 --> 00:13:59,960 Speaker 3: year to save approximately forty thousand dollars for twenty twenty four, 256 00:14:01,440 --> 00:14:06,160 Speaker 3: with the plan to contribute thirty to forty thousand every 257 00:14:06,240 --> 00:14:09,000 Speaker 3: year over the next ten to twelve years whilst I 258 00:14:09,080 --> 00:14:12,760 Speaker 3: remained at work with the idea that if there was eight, 259 00:14:12,920 --> 00:14:15,640 Speaker 3: nine or ten percent to gain every year, that that 260 00:14:15,679 --> 00:14:19,840 Speaker 3: would be close to a million dollars. And this doesn't 261 00:14:19,880 --> 00:14:22,600 Speaker 3: mean I needed to live a frugal life, Cannop, but 262 00:14:22,680 --> 00:14:25,320 Speaker 3: it does mean that I needed to be more focused 263 00:14:25,360 --> 00:14:27,880 Speaker 3: and mindful of where I was spending my money and 264 00:14:27,880 --> 00:14:31,960 Speaker 3: what was important to me. So I had already been 265 00:14:31,960 --> 00:14:34,760 Speaker 3: putting away a little each month for a number of 266 00:14:34,840 --> 00:14:39,120 Speaker 3: years in a Vanguard high growth EFT, and I really 267 00:14:39,200 --> 00:14:43,000 Speaker 3: wasn't taking it too seriously anyway. I checked my Vanguard 268 00:14:43,000 --> 00:14:45,920 Speaker 3: account and that was sitting at close to fifteen thousand. 269 00:14:46,240 --> 00:14:48,960 Speaker 3: I had also already had fifteen thousand in savings, so 270 00:14:49,000 --> 00:14:51,680 Speaker 3: there was thirty thousand, and then over the period of 271 00:14:51,800 --> 00:14:55,520 Speaker 3: January through to May, I saved another twenty thousand. And 272 00:14:55,560 --> 00:14:58,000 Speaker 3: it was a conscious effort because I had given myself 273 00:14:58,040 --> 00:15:01,040 Speaker 3: this goal. So at it is point in time, to 274 00:15:01,080 --> 00:15:04,680 Speaker 3: my surprise, i'd already reached my forty thousand goal and 275 00:15:04,720 --> 00:15:07,800 Speaker 3: we hadn't reached midway through the year yet, so I 276 00:15:07,840 --> 00:15:10,280 Speaker 3: figured I needed to up the ante a little bit. 277 00:15:10,720 --> 00:15:13,120 Speaker 3: And one of the other things that I had done 278 00:15:13,160 --> 00:15:16,560 Speaker 3: a few years ago, and I absolutely do not recommend 279 00:15:16,600 --> 00:15:19,440 Speaker 3: this for any of your listeners, but I had decided 280 00:15:19,640 --> 00:15:22,520 Speaker 3: whenever I had some extra money, i'd drop it into crypto, 281 00:15:22,600 --> 00:15:24,760 Speaker 3: and it was mostly at that time Bitcoin, and it 282 00:15:24,800 --> 00:15:26,800 Speaker 3: was just for a bit of fun, I guess, and 283 00:15:26,880 --> 00:15:30,120 Speaker 3: I was not taking it seriously, and I absolutely was 284 00:15:30,200 --> 00:15:34,280 Speaker 3: comfortable with the idea of losing this, So you know, 285 00:15:34,320 --> 00:15:37,640 Speaker 3: it wasn't my life, sis or anything. And I do 286 00:15:37,800 --> 00:15:41,720 Speaker 3: know now how volatile it is. So it sounds crazy 287 00:15:42,160 --> 00:15:45,840 Speaker 3: to sound minded people like yourself and Peter that you know, 288 00:15:45,960 --> 00:15:48,880 Speaker 3: crypto is kind of not the thing to be involved in. 289 00:15:49,360 --> 00:15:51,560 Speaker 3: But it was only like, you know, fifty dollars here, 290 00:15:51,600 --> 00:15:54,760 Speaker 3: twenty dollars here, or one hundred dollars here. And to 291 00:15:54,880 --> 00:15:57,960 Speaker 3: my surprise, that had added up over the years as well. 292 00:15:58,200 --> 00:16:01,480 Speaker 3: I had done that during COVID. Bitcoin was quite low 293 00:16:01,480 --> 00:16:05,840 Speaker 3: over that period, so after I had read your books, 294 00:16:06,000 --> 00:16:09,960 Speaker 3: I thought, geez, I better get out of this. Luckily, 295 00:16:10,120 --> 00:16:12,480 Speaker 3: at the time when I sold this, it was in 296 00:16:12,520 --> 00:16:15,720 Speaker 3: April this year, Bitcoin was going to be halved, and 297 00:16:15,800 --> 00:16:19,200 Speaker 3: to cut along story short, that happens every four years, 298 00:16:19,240 --> 00:16:22,280 Speaker 3: and it's meant to reduce the supply of new bitcoins, 299 00:16:22,280 --> 00:16:25,720 Speaker 3: which in theory, if the demand doesn't change, should increase 300 00:16:25,760 --> 00:16:29,400 Speaker 3: the price. Anyway, absolutely not a valid reason to hold bitcoin. 301 00:16:29,920 --> 00:16:33,120 Speaker 3: That was definitely definitely a good time for me to sell. 302 00:16:33,440 --> 00:16:35,920 Speaker 3: So I sold those and that's how I built that 303 00:16:36,000 --> 00:16:38,920 Speaker 3: share portfolio for that wealth. Build your account up to 304 00:16:39,320 --> 00:16:42,520 Speaker 3: one hundred thousand, and yes, I will need to pay 305 00:16:42,520 --> 00:16:44,760 Speaker 3: capital gains tax on that when I did my tax 306 00:16:44,760 --> 00:16:48,240 Speaker 3: return this year, so I'll probably be investing in my 307 00:16:48,280 --> 00:16:50,360 Speaker 3: shop portfolio is just a little bit less than one 308 00:16:50,400 --> 00:16:53,920 Speaker 3: hundred thousand before I actually commenced that, Gurney, And how 309 00:16:54,000 --> 00:16:54,240 Speaker 3: did you. 310 00:16:54,280 --> 00:16:57,040 Speaker 1: Work out the investments, because I think a lot of people, 311 00:16:57,080 --> 00:16:58,600 Speaker 1: you know, they get opened up the account, but then 312 00:16:58,640 --> 00:17:01,080 Speaker 1: they sort of hit a brick when they work out, Okay, 313 00:17:01,120 --> 00:17:02,280 Speaker 1: what am I going to buy first? 314 00:17:02,400 --> 00:17:06,960 Speaker 3: Or yes, I still haven't. I still haven't done that. 315 00:17:07,040 --> 00:17:10,159 Speaker 3: And it's a combination of I just like we'll like 316 00:17:10,240 --> 00:17:13,800 Speaker 3: to be diversified. In Peter's book, Kick kind of suggests 317 00:17:13,800 --> 00:17:17,840 Speaker 3: going against the ETF because the dividends need to be 318 00:17:17,920 --> 00:17:22,200 Speaker 3: distributed one hundred percent, while LICs can hold onto them. 319 00:17:22,520 --> 00:17:25,240 Speaker 3: And it's a bit more consistent as long as it's 320 00:17:25,320 --> 00:17:30,440 Speaker 3: diversified and industrial some ETFs and some LICs. So it's 321 00:17:30,480 --> 00:17:34,080 Speaker 3: probably something that I will speak to you offline about, Kenna. 322 00:17:34,359 --> 00:17:39,480 Speaker 1: Okay, no problem, absolutely, So how do you then balance 323 00:17:39,600 --> 00:17:41,920 Speaker 1: your financial goals with you know, the day to day 324 00:17:41,960 --> 00:17:45,439 Speaker 1: expenses and responsibility that comes with you know, raising a family, 325 00:17:45,680 --> 00:17:47,879 Speaker 1: you know, growing beautiful girls. 326 00:17:48,320 --> 00:17:51,280 Speaker 3: Yeah, I do appreciate that money and finances are really 327 00:17:51,280 --> 00:17:55,720 Speaker 3: only a small part of the responsibility of raising a family. However, 328 00:17:56,080 --> 00:17:58,360 Speaker 3: if this part of our life isn't working. It does 329 00:17:58,400 --> 00:18:01,360 Speaker 3: put stress on parents, which which makes it really difficult 330 00:18:01,359 --> 00:18:03,879 Speaker 3: to focus on our more important aspects of raising the 331 00:18:03,960 --> 00:18:06,600 Speaker 3: family and really being present. I know that I don't 332 00:18:06,600 --> 00:18:09,000 Speaker 3: want my finances to get in the way of enjoying 333 00:18:09,000 --> 00:18:12,280 Speaker 3: my life with my kids. So for me, the best 334 00:18:12,280 --> 00:18:15,080 Speaker 3: way to balance these goals is to have clarity and 335 00:18:15,200 --> 00:18:19,119 Speaker 3: understand my why. So make sure my goals are smart goals. 336 00:18:19,160 --> 00:18:22,960 Speaker 3: You know, they're specific, they're measurable, they're achievable, and then 337 00:18:23,040 --> 00:18:26,680 Speaker 3: put in systems in place which are automated and almost 338 00:18:27,080 --> 00:18:30,080 Speaker 3: allow this to run on autopilot in the background. So 339 00:18:30,600 --> 00:18:34,360 Speaker 3: I've set some guidelines for myself and I'm satisfied when 340 00:18:34,440 --> 00:18:37,200 Speaker 3: I'm able to adhere to these eighty percent of the time. 341 00:18:37,640 --> 00:18:40,040 Speaker 3: I don't need to let perfect Really can I get 342 00:18:40,080 --> 00:18:42,720 Speaker 3: in the way of good It rather take more small 343 00:18:42,720 --> 00:18:45,840 Speaker 3: steps in the right direction than to be paralyzed by perfection. 344 00:18:46,800 --> 00:18:51,480 Speaker 3: So for me, that balance looks like this. I have 345 00:18:52,080 --> 00:18:55,080 Speaker 3: one loose budget, and I'm completely honest when I say 346 00:18:55,080 --> 00:18:57,000 Speaker 3: it's loose, So if I can stick with it eighty 347 00:18:57,000 --> 00:18:59,680 Speaker 3: percent at the time, I'm satisfied. I really don't kick 348 00:18:59,720 --> 00:19:01,919 Speaker 3: myself if I don't get there. One hundred percent of 349 00:19:01,960 --> 00:19:05,560 Speaker 3: the time, you'd probably rip my budget to Shred's kenna. 350 00:19:05,720 --> 00:19:10,480 Speaker 3: But flexibility that works for me. Number two is I 351 00:19:10,520 --> 00:19:13,520 Speaker 3: do have clear financial goals, so I know my number 352 00:19:13,560 --> 00:19:16,320 Speaker 3: for my emergency fund, I know my number for my 353 00:19:16,480 --> 00:19:20,920 Speaker 3: retirement and I assign specific amounts and timelines to these goals. 354 00:19:20,920 --> 00:19:24,040 Speaker 3: So that's short medium along by no means does this 355 00:19:24,080 --> 00:19:27,320 Speaker 3: imply that these are always looking amazing. Some of these 356 00:19:27,400 --> 00:19:30,160 Speaker 3: numbers are far from amazing, and they are very much 357 00:19:30,160 --> 00:19:32,639 Speaker 3: a work in progress. Number three, I automate as much 358 00:19:32,680 --> 00:19:34,560 Speaker 3: as I can, so I don't get too involved on 359 00:19:34,600 --> 00:19:37,680 Speaker 3: a daily basis, because, as you know, working full time, 360 00:19:37,800 --> 00:19:40,600 Speaker 3: being a solo mum and just managing to make dinner 361 00:19:40,640 --> 00:19:43,040 Speaker 3: and do the washing keeps me busy enough. Number four 362 00:19:43,119 --> 00:19:46,199 Speaker 3: is I have quite a thorough monthly check in, and 363 00:19:46,200 --> 00:19:48,560 Speaker 3: that's good enough for me. I really look forward to 364 00:19:48,600 --> 00:19:51,120 Speaker 3: this and I enjoy doing a deep dive. I get 365 00:19:51,160 --> 00:19:54,320 Speaker 3: paid once a month, so this works with my pay cycle. 366 00:19:55,160 --> 00:19:58,000 Speaker 3: I check if I'm on track, I see what needs tweaking. 367 00:19:58,560 --> 00:20:01,800 Speaker 3: Some months I might over and some months sold them 368 00:20:01,840 --> 00:20:05,359 Speaker 3: cut back the following month. And it's easy with banking 369 00:20:05,359 --> 00:20:08,640 Speaker 3: apps these days to see or spend categories. It also 370 00:20:08,680 --> 00:20:11,600 Speaker 3: gives me an opportunity to celebrate the milestones two when 371 00:20:11,640 --> 00:20:17,120 Speaker 3: I do this monthly checking. Oh absolutely yeah, and this 372 00:20:17,240 --> 00:20:20,240 Speaker 3: year I have this particular goal. And so then I've 373 00:20:20,280 --> 00:20:23,840 Speaker 3: practiced mindful spending more than I ever have before. I 374 00:20:23,920 --> 00:20:27,600 Speaker 3: consider the value and necessity of purchasing before I go ahead. 375 00:20:27,680 --> 00:20:30,719 Speaker 3: So the focus has been on time with the kids 376 00:20:31,080 --> 00:20:34,840 Speaker 3: once eighteen, as I said once fifteen. So I'm mindful 377 00:20:34,960 --> 00:20:38,359 Speaker 3: that whatever we spend on is about sharing experiences, you know, 378 00:20:38,560 --> 00:20:42,480 Speaker 3: time with them, going away and really building lifelong memories. 379 00:20:43,520 --> 00:20:46,119 Speaker 1: Look, I mean everything you say is so on point, 380 00:20:46,240 --> 00:20:49,000 Speaker 1: and you know, I particularly love the fact that you 381 00:20:49,040 --> 00:20:52,439 Speaker 1: point out how you know understanding your why. You know, 382 00:20:52,520 --> 00:20:54,439 Speaker 1: what does freedom look like for you? What does it 383 00:20:54,440 --> 00:20:54,879 Speaker 1: feel like? 384 00:20:54,960 --> 00:20:55,800 Speaker 2: And I think when. 385 00:20:55,640 --> 00:20:59,159 Speaker 1: People connect with the meaning behind and what will the 386 00:20:59,240 --> 00:21:01,880 Speaker 1: value that will give you and the benefits and the relief, 387 00:21:02,000 --> 00:21:08,480 Speaker 1: the freedom, the choice, all those fantastic choices and luxuries 388 00:21:08,520 --> 00:21:12,439 Speaker 1: that come to you, and how they are priceless, it 389 00:21:12,600 --> 00:21:15,240 Speaker 1: becomes you know, it's suddenly that on the list of 390 00:21:15,280 --> 00:21:16,879 Speaker 1: things to do, it comes up to being you know, 391 00:21:17,000 --> 00:21:19,439 Speaker 1: number two or three rather than number twenty seven on 392 00:21:19,480 --> 00:21:24,720 Speaker 1: the list, and that checking, particularly when you're feeling deflated 393 00:21:24,840 --> 00:21:28,040 Speaker 1: or defeated, even to see actually I'm all right, or 394 00:21:28,280 --> 00:21:30,159 Speaker 1: actually I haven't done as bad as I thought, or 395 00:21:30,440 --> 00:21:33,160 Speaker 1: actually I'm so much better off than I was last month, 396 00:21:33,320 --> 00:21:34,320 Speaker 1: or this time last. 397 00:21:34,200 --> 00:21:36,120 Speaker 2: Year, or even you know, five years ago. 398 00:21:36,600 --> 00:21:39,520 Speaker 1: It kind of helps give you that invigoration that you 399 00:21:39,600 --> 00:21:41,200 Speaker 1: are on the right track and you are doing the 400 00:21:41,280 --> 00:21:44,760 Speaker 1: right things, and that faith and confidence to keep going 401 00:21:45,000 --> 00:21:48,160 Speaker 1: and to trust yourself just rinse and repeat, you will 402 00:21:48,200 --> 00:21:48,640 Speaker 1: get there. 403 00:21:48,640 --> 00:21:50,400 Speaker 2: And you're learning things all the time. 404 00:21:50,600 --> 00:21:52,800 Speaker 1: Which are priceless, even if you don't see them necessarily 405 00:21:52,880 --> 00:21:55,840 Speaker 1: being displayed in your bank balance yet. So there's such 406 00:21:56,000 --> 00:21:59,119 Speaker 1: valuable points that you raise. Now I know for a 407 00:21:59,160 --> 00:22:01,919 Speaker 1: fact that you're back and is in it. How do 408 00:22:02,000 --> 00:22:07,879 Speaker 1: you find being a contractor challenging or overcome those challenges 409 00:22:07,880 --> 00:22:11,080 Speaker 1: I should say, in working on your financial well being? 410 00:22:12,119 --> 00:22:15,960 Speaker 3: Yes, so I identified early on in my career, after 411 00:22:16,000 --> 00:22:19,400 Speaker 3: a few different roles, that I really enjoyed the diversity 412 00:22:19,480 --> 00:22:23,400 Speaker 3: and challenge of working in different organizations, so be they 413 00:22:23,440 --> 00:22:26,320 Speaker 3: big or small, and different projects again big or small, 414 00:22:27,040 --> 00:22:30,280 Speaker 3: and gaining different perspectives and different ways of doing business 415 00:22:30,320 --> 00:22:34,040 Speaker 3: and running systems. So that environment keeps me motivated. It 416 00:22:34,119 --> 00:22:37,440 Speaker 3: keeps me interested, and it keeps me learning. So when 417 00:22:37,480 --> 00:22:40,520 Speaker 3: I decided to step away from permanent work and dive 418 00:22:40,560 --> 00:22:44,399 Speaker 3: into the world of contracting or consulting, I was in 419 00:22:44,440 --> 00:22:46,520 Speaker 3: my late twenties at the time and I was still 420 00:22:46,560 --> 00:22:49,440 Speaker 3: married at that time. So given that decision was made 421 00:22:49,600 --> 00:22:52,200 Speaker 3: twenty years ago, at that point it didn't seem as 422 00:22:52,280 --> 00:22:55,760 Speaker 3: daunting because there was a double income coming in, and 423 00:22:55,800 --> 00:22:58,720 Speaker 3: if there weren't quiet periods, there was always a second 424 00:22:58,760 --> 00:23:02,719 Speaker 3: income by chance was working. I think once I became 425 00:23:02,800 --> 00:23:05,159 Speaker 3: a solo parent, it was always at the back of 426 00:23:05,200 --> 00:23:07,440 Speaker 3: my mind, and I did one day if I should 427 00:23:07,480 --> 00:23:10,680 Speaker 3: look for something more stable. However, over the years, life 428 00:23:10,720 --> 00:23:13,720 Speaker 3: has just worked itself out, so when one project finished, 429 00:23:14,119 --> 00:23:16,800 Speaker 3: another one seemed to start. So I was fortunate in 430 00:23:16,840 --> 00:23:20,639 Speaker 3: that respect. With contracting, however, you do get a better 431 00:23:20,720 --> 00:23:23,640 Speaker 3: day rate, but there is no annually there's no annual leave, 432 00:23:23,680 --> 00:23:26,840 Speaker 3: there's no sick leave, no maternative leave, So you need 433 00:23:26,880 --> 00:23:29,679 Speaker 3: to take all that into consideration. You know, for company 434 00:23:29,880 --> 00:23:32,320 Speaker 3: that you're contracting to close us down for three weeks 435 00:23:32,320 --> 00:23:34,840 Speaker 3: over Christmas, you need to make sure you've planned for 436 00:23:34,920 --> 00:23:37,800 Speaker 3: that because you won't be getting paid over that period. 437 00:23:38,440 --> 00:23:41,240 Speaker 3: And you still need to plan for your Christmas spending 438 00:23:41,320 --> 00:23:44,840 Speaker 3: of gifts and celebrations, so there's certainly some planning. But 439 00:23:44,920 --> 00:23:47,359 Speaker 3: I also took the view as a solo parent that 440 00:23:47,440 --> 00:23:50,400 Speaker 3: if push came to shove, I could always go back 441 00:23:50,440 --> 00:23:53,320 Speaker 3: to a permanent role, or at a minimum, if there 442 00:23:53,320 --> 00:23:56,800 Speaker 3: were quiet periods between contracts, I could always take up 443 00:23:56,800 --> 00:23:59,679 Speaker 3: some temp work or anything to cover the mortgage or bills. 444 00:24:00,680 --> 00:24:03,400 Speaker 3: So I did now, and I did continue to contract 445 00:24:03,480 --> 00:24:07,359 Speaker 3: throughout most of my journey, and only recently in the 446 00:24:07,480 --> 00:24:09,880 Speaker 3: last year. I decided to take on a permanent role 447 00:24:09,960 --> 00:24:12,400 Speaker 3: because I liked the role, I liked the people I 448 00:24:12,440 --> 00:24:15,720 Speaker 3: was working with, and I like the organization. The other 449 00:24:15,760 --> 00:24:18,840 Speaker 3: thing I did do notice and I have over the 450 00:24:18,880 --> 00:24:21,639 Speaker 3: last ten years or twenty years of contracting. I'm hoping 451 00:24:21,640 --> 00:24:23,920 Speaker 3: that banks have changed now. But back in the day, 452 00:24:23,960 --> 00:24:27,080 Speaker 3: you couldn't easily get income protection insurance if you were 453 00:24:27,080 --> 00:24:30,240 Speaker 3: a contractor. You had to jump through hoops really to 454 00:24:30,280 --> 00:24:32,960 Speaker 3: get a mortgage because you didn't have a permanent role 455 00:24:33,000 --> 00:24:35,439 Speaker 3: with the same employer for a number of years. I 456 00:24:35,440 --> 00:24:38,280 Speaker 3: feel this has changed as we have so many people 457 00:24:38,320 --> 00:24:41,920 Speaker 3: consciously contracting in the workplace these days. But I will 458 00:24:42,000 --> 00:24:46,119 Speaker 3: say that the uncertainty of contracting as a solo parent, 459 00:24:46,960 --> 00:24:49,919 Speaker 3: I feel has held me back in making some of 460 00:24:49,960 --> 00:24:53,840 Speaker 3: those bigger financial decisions. You know, I could have definitely 461 00:24:53,880 --> 00:24:57,199 Speaker 3: taken on a little more with maybe bigger debt, a 462 00:24:57,240 --> 00:25:00,720 Speaker 3: bigger mortgage, which I was reluctant to do so not 463 00:25:00,840 --> 00:25:03,800 Speaker 3: only a solo parent, but also as a contractor, and 464 00:25:03,840 --> 00:25:06,160 Speaker 3: I should have maybe backed myself more and been more 465 00:25:06,200 --> 00:25:09,399 Speaker 3: confident with taking these steps. I look back now and 466 00:25:09,480 --> 00:25:12,800 Speaker 3: I see I was probably more risk averse and conservative 467 00:25:12,960 --> 00:25:15,680 Speaker 3: than what I really needed to be, and I feel 468 00:25:15,720 --> 00:25:18,160 Speaker 3: that may have set me back financially. I'm definitely far 469 00:25:18,240 --> 00:25:21,040 Speaker 3: more confident now in my financial ability than I was 470 00:25:21,160 --> 00:25:23,320 Speaker 3: earlier in my journey, for sure. 471 00:25:23,840 --> 00:25:26,560 Speaker 1: And so much of that just boils down to education. 472 00:25:26,760 --> 00:25:29,560 Speaker 1: You know, we are scared of what we don't understand. 473 00:25:30,400 --> 00:25:33,240 Speaker 1: So when you understand the facts and the figures and 474 00:25:33,359 --> 00:25:37,080 Speaker 1: understand the risks and also the strategies behind minimizing those risks, 475 00:25:37,840 --> 00:25:42,120 Speaker 1: suddenly your confidence increases. So I think, I think that's 476 00:25:42,119 --> 00:25:46,560 Speaker 1: just you're just perfectly, you know, illustrating the importance for 477 00:25:46,640 --> 00:25:50,040 Speaker 1: everyone to invest time understanding money and understanding how to 478 00:25:50,960 --> 00:25:54,960 Speaker 1: navigate the world of money in personal finances. Now, on 479 00:25:55,040 --> 00:25:58,160 Speaker 1: that note of education, you've read obviously Peter Thornhill's book 480 00:25:58,240 --> 00:26:02,040 Speaker 1: Motivated Money and my book Mindful Money. How did those 481 00:26:02,320 --> 00:26:07,160 Speaker 1: two books help you actually work out your personal investment 482 00:26:07,200 --> 00:26:09,000 Speaker 1: strategy and your financial mindset. 483 00:26:09,160 --> 00:26:12,720 Speaker 3: So self education for me, Hanna has played the single 484 00:26:12,720 --> 00:26:16,119 Speaker 3: biggest role. It's been crucial in both my investing journey 485 00:26:16,119 --> 00:26:19,680 Speaker 3: and my mindset. I now have a far greater understanding 486 00:26:19,760 --> 00:26:23,199 Speaker 3: of the various investment vehicles that are really available to me, 487 00:26:24,119 --> 00:26:26,879 Speaker 3: and that really allows me to make these informed decisions 488 00:26:26,920 --> 00:26:29,920 Speaker 3: and ask the right questions. There's so much free material 489 00:26:29,960 --> 00:26:32,679 Speaker 3: out there available to anyone. I know. When I was younger, 490 00:26:32,720 --> 00:26:35,359 Speaker 3: I really just assumed that the only way to financial 491 00:26:35,400 --> 00:26:38,480 Speaker 3: freedom and a passive income was via property. You know, 492 00:26:38,560 --> 00:26:41,399 Speaker 3: you don't really know what you don't know. Education has 493 00:26:41,440 --> 00:26:44,639 Speaker 3: shown me that I can achieve way more financially with 494 00:26:44,800 --> 00:26:49,680 Speaker 3: reinvesting and compounding than I ever imagined. And it's also 495 00:26:49,800 --> 00:26:51,680 Speaker 3: shown me that if it works for other people, then 496 00:26:51,680 --> 00:26:55,280 Speaker 3: it can work for me too. And I've learned topics 497 00:26:55,359 --> 00:26:58,080 Speaker 3: previously that were foreign to me. So the share market, 498 00:26:58,160 --> 00:27:03,480 Speaker 3: EFTs LICs, super anuation, they're not as complex as people 499 00:27:03,480 --> 00:27:06,959 Speaker 3: in the financial world will have us believe, and you know, 500 00:27:07,000 --> 00:27:09,560 Speaker 3: some of these topics, they are actually simpler than I 501 00:27:09,600 --> 00:27:13,399 Speaker 3: had expected, although I do notice superannuation rules do change 502 00:27:13,400 --> 00:27:15,440 Speaker 3: often and we really need to keep up to date 503 00:27:15,480 --> 00:27:16,240 Speaker 3: with some of these. 504 00:27:16,800 --> 00:27:19,199 Speaker 1: Yeah, and look, that's the value of a financial planner 505 00:27:19,200 --> 00:27:22,600 Speaker 1: as well, you know, is to know that these potential 506 00:27:22,680 --> 00:27:25,679 Speaker 1: changes around the corner, to proactively plan and prepare for 507 00:27:26,160 --> 00:27:29,640 Speaker 1: what changes to caps or loopholes that may open up 508 00:27:29,760 --> 00:27:32,800 Speaker 1: or close. So you know, that's you're not expected to 509 00:27:32,840 --> 00:27:34,640 Speaker 1: be able to do it all. But there is a lot, 510 00:27:34,640 --> 00:27:36,880 Speaker 1: as you say, of free information out there that can 511 00:27:37,000 --> 00:27:37,720 Speaker 1: really help. 512 00:27:37,600 --> 00:27:39,959 Speaker 2: You understand the options are available. 513 00:27:40,000 --> 00:27:42,240 Speaker 1: And then obviously a financial planner can find tune those 514 00:27:42,400 --> 00:27:43,440 Speaker 1: sorts of things. 515 00:27:44,000 --> 00:27:46,159 Speaker 3: Yeah, and I love having a book where I can 516 00:27:46,240 --> 00:27:49,320 Speaker 3: highlight sections that resonate with me, or where I can 517 00:27:49,359 --> 00:27:52,720 Speaker 3: add sticky notes, or I can reread a section that 518 00:27:52,800 --> 00:27:55,800 Speaker 3: I don't understand the first time, So you can take 519 00:27:55,840 --> 00:27:58,200 Speaker 3: self education at your own pace, and once you get 520 00:27:58,200 --> 00:28:01,399 Speaker 3: those light bulb moments when you're they never lost on 521 00:28:01,480 --> 00:28:04,719 Speaker 3: you again. So yeah, it's allowed me to you know, 522 00:28:04,960 --> 00:28:07,560 Speaker 3: the other day, I went back to my superannuation financial 523 00:28:07,640 --> 00:28:10,399 Speaker 3: advisor and I asked him about an in specie transfer. 524 00:28:11,080 --> 00:28:13,879 Speaker 3: His jaw dropped, I think, and I dare say not 525 00:28:13,960 --> 00:28:15,840 Speaker 3: many clients have asked him this before. 526 00:28:16,320 --> 00:28:18,240 Speaker 2: I'm so proud of you for asking that question. 527 00:28:18,320 --> 00:28:21,600 Speaker 1: It is the one most important thing everyone should ask 528 00:28:21,800 --> 00:28:25,439 Speaker 1: if the superhneration account provider, because it's something potentially the 529 00:28:25,440 --> 00:28:28,320 Speaker 1: concern save you know, tens of thousands of dollars in tax, 530 00:28:28,320 --> 00:28:31,360 Speaker 1: if not hundreds of thousands of dollars in tax. Now 531 00:28:32,000 --> 00:28:34,520 Speaker 1: a lot of slightly different topic was still money related. 532 00:28:34,960 --> 00:28:38,480 Speaker 1: Manifestation and I guess the money mindset focus were key 533 00:28:38,520 --> 00:28:42,080 Speaker 1: elements in your financial journey. Can you explain how you 534 00:28:42,120 --> 00:28:45,520 Speaker 1: practically apply these concepts to your financial goals? 535 00:28:45,880 --> 00:28:49,480 Speaker 3: Yes, Enna, I know you refer to it as manifesting, 536 00:28:49,960 --> 00:28:52,560 Speaker 3: and I know you encourage all your listeners to manifest. 537 00:28:53,360 --> 00:28:56,800 Speaker 3: I refer to it as focus, but I feel we're 538 00:28:56,840 --> 00:29:00,720 Speaker 3: definitely talking about the same thing here. So I just 539 00:29:00,760 --> 00:29:03,080 Speaker 3: think the word manifest has always been the little as 540 00:29:03,120 --> 00:29:06,160 Speaker 3: usual for me because I work in it. So after all, 541 00:29:06,200 --> 00:29:08,520 Speaker 3: I've got lots of black and more white in my world. 542 00:29:09,720 --> 00:29:12,640 Speaker 3: But the word, folks, that really resonates and connects with me. 543 00:29:12,840 --> 00:29:16,800 Speaker 3: So my firm belief, Kenna, is that it's really impossible 544 00:29:16,880 --> 00:29:19,960 Speaker 3: for things not to change if you do stay focused 545 00:29:20,000 --> 00:29:22,760 Speaker 3: and take at least some action, no matter how small, 546 00:29:22,880 --> 00:29:26,240 Speaker 3: on that one focus area. So for me, it's important 547 00:29:26,280 --> 00:29:29,040 Speaker 3: to focus on one goal at a time. I know 548 00:29:29,200 --> 00:29:31,560 Speaker 3: some people are really good at focusing on many, but 549 00:29:31,600 --> 00:29:33,600 Speaker 3: I get a bit flustered if I try to achieve 550 00:29:33,680 --> 00:29:36,000 Speaker 3: too much at the same time. And sometimes the goals 551 00:29:36,000 --> 00:29:38,800 Speaker 3: are competing, you know, do I want to increase my 552 00:29:38,880 --> 00:29:41,240 Speaker 3: emergency fund or pay off my mortgage quickly, or do 553 00:29:41,280 --> 00:29:43,760 Speaker 3: I want to invest in the share market. Sometimes I 554 00:29:43,880 --> 00:29:46,600 Speaker 3: can be competing because you've only got one source of funds. 555 00:29:46,800 --> 00:29:49,040 Speaker 3: So for me, I just think I focus on the 556 00:29:49,080 --> 00:29:52,960 Speaker 3: one big thing and I take small actions that build momentum, 557 00:29:53,000 --> 00:29:57,200 Speaker 3: And it's literally impossible if you focus and take action 558 00:29:57,760 --> 00:30:00,960 Speaker 3: for a shift not to take place. For me, as 559 00:30:00,960 --> 00:30:05,960 Speaker 3: I mentioned earlier, focus really means my smart goals, making 560 00:30:06,000 --> 00:30:08,600 Speaker 3: sure I understand them, making sure I've got my why, 561 00:30:08,800 --> 00:30:11,440 Speaker 3: and making sure I'm one hundred percent dedicated to you know, 562 00:30:11,520 --> 00:30:13,240 Speaker 3: these monthly check ins, et cetera. 563 00:30:15,040 --> 00:30:17,160 Speaker 1: And do you ever do sort of visualization where you 564 00:30:17,200 --> 00:30:19,960 Speaker 1: sort of see yourself buying shares, you know, making. 565 00:30:19,800 --> 00:30:23,560 Speaker 2: Those decisions or receiving a dividend payment. 566 00:30:23,920 --> 00:30:27,720 Speaker 3: Yes, yes, I absolutely do, and I think from time 567 00:30:27,760 --> 00:30:30,479 Speaker 3: to time I go online and check my superinnuation as 568 00:30:30,520 --> 00:30:33,160 Speaker 3: well and see how that's looking. So it's definitely a 569 00:30:33,200 --> 00:30:36,160 Speaker 3: part of my life and visualizing that and seeing it 570 00:30:36,240 --> 00:30:37,040 Speaker 3: grow for sure. 571 00:30:38,320 --> 00:30:41,960 Speaker 1: Now coming back to your situation, and you know so 572 00:30:42,080 --> 00:30:45,680 Speaker 1: many women these days, despite so much information out there now, 573 00:30:46,080 --> 00:30:47,160 Speaker 1: lee still leave their. 574 00:30:47,000 --> 00:30:48,720 Speaker 2: Fincial decisions to their partners. 575 00:30:49,320 --> 00:30:51,080 Speaker 1: What would you say to those women and think, oh, 576 00:30:51,080 --> 00:30:53,880 Speaker 1: it's fine, my husband does it all. Where do you 577 00:30:53,920 --> 00:30:56,080 Speaker 1: now stand on that considering everything you've gone through? 578 00:30:56,280 --> 00:30:58,800 Speaker 3: So personally, I gave up a lot of my financial 579 00:30:58,840 --> 00:31:03,480 Speaker 3: decision making dury my marriage. I was always contributing financially. 580 00:31:03,600 --> 00:31:06,560 Speaker 3: But my assumption, which was incorrect, I guess, was that 581 00:31:06,640 --> 00:31:08,960 Speaker 3: my husband at the time had his own business, who 582 00:31:09,000 --> 00:31:11,880 Speaker 3: was six years older, so surely he must be better 583 00:31:11,920 --> 00:31:15,080 Speaker 3: at managing money and making financial decisions than I was. 584 00:31:15,360 --> 00:31:17,760 Speaker 3: And men it are also greater talking about money amongst 585 00:31:17,760 --> 00:31:21,520 Speaker 3: their peers and sharing ideas, so just talking the lingo 586 00:31:21,600 --> 00:31:25,400 Speaker 3: I think makes them appear better equipped to make these decisions, 587 00:31:25,440 --> 00:31:28,560 Speaker 3: which isn't necessarily the case. I think we women don't 588 00:31:28,560 --> 00:31:32,280 Speaker 3: talk about money or financial goals nearly enough. It's just 589 00:31:32,360 --> 00:31:34,320 Speaker 3: not something we do when we catch up with our 590 00:31:34,360 --> 00:31:37,560 Speaker 3: girlfriends for brunch. I think we should share more in 591 00:31:37,600 --> 00:31:40,480 Speaker 3: this space, maybe be a bit more vulnerable and support 592 00:31:40,520 --> 00:31:44,840 Speaker 3: each other in our financial pursuits. And it's not I guess, 593 00:31:44,920 --> 00:31:48,200 Speaker 3: can I just limit it to heterosexual partnerships. I think 594 00:31:48,240 --> 00:31:52,560 Speaker 3: by default often we leave the household finances and investing 595 00:31:52,600 --> 00:31:55,440 Speaker 3: to the person we feel may have more knowledge in 596 00:31:55,480 --> 00:31:59,440 Speaker 3: this space. It's for both partners financial livelihoods, so both 597 00:31:59,440 --> 00:32:02,680 Speaker 3: should be equally invested in their goals and their decisions 598 00:32:02,720 --> 00:32:05,640 Speaker 3: and their outcomes. I know I was forced into this 599 00:32:05,680 --> 00:32:08,640 Speaker 3: as a solo parent, but it is empowering to take 600 00:32:08,680 --> 00:32:11,440 Speaker 3: an active role in managing your own financial journey. 601 00:32:12,200 --> 00:32:13,280 Speaker 2: Oh absolutely like that. 602 00:32:13,360 --> 00:32:17,560 Speaker 1: Communication and transparency is essential and that's non negotiable. And 603 00:32:18,120 --> 00:32:20,120 Speaker 1: I say to people who are trying to get their 604 00:32:20,160 --> 00:32:23,160 Speaker 1: partner on board with taking their financial wellbeing seriously, is 605 00:32:23,720 --> 00:32:27,240 Speaker 1: come from a place is empowerment and education. It's the 606 00:32:27,320 --> 00:32:31,080 Speaker 1: only way to get your partner committed and dedicated and 607 00:32:31,080 --> 00:32:34,480 Speaker 1: actually seeing all the beautiful benefits that come from prioritizing 608 00:32:34,480 --> 00:32:38,360 Speaker 1: your financial wellbeing. Now, looking ahead, as we wrap up 609 00:32:38,400 --> 00:32:41,200 Speaker 1: today's episode, can you hear with some of your big 610 00:32:41,240 --> 00:32:45,080 Speaker 1: financial goals that you're working on and will safe focusing 611 00:32:45,200 --> 00:32:47,520 Speaker 1: on for the next couple of years. 612 00:32:48,240 --> 00:32:51,520 Speaker 3: Yes, So once I have finalized my ship portfolio and 613 00:32:51,640 --> 00:32:55,680 Speaker 3: chosen the best third ETF and LICs for me, I'll 614 00:32:55,720 --> 00:32:59,040 Speaker 3: be able to confidently put my ship portfolio on autopilot 615 00:32:59,160 --> 00:33:02,720 Speaker 3: and tackle some other goals. So back in twenty fifteen, 616 00:33:02,880 --> 00:33:06,320 Speaker 3: I purchased an investment property and with the increase to 617 00:33:06,440 --> 00:33:11,440 Speaker 3: land tax, you know, insurances and maintenance costs, that rental 618 00:33:11,560 --> 00:33:16,200 Speaker 3: yield I've calculated is very low and it's well, definitely 619 00:33:16,320 --> 00:33:19,400 Speaker 3: low in comparison to a share portfolio, which really comes 620 00:33:19,800 --> 00:33:22,479 Speaker 3: along with no operating expenses. 621 00:33:22,800 --> 00:33:23,880 Speaker 2: Franking credits. 622 00:33:24,200 --> 00:33:27,280 Speaker 3: Yes, and I wish I could say Kenna that you know, 623 00:33:27,840 --> 00:33:30,840 Speaker 3: I've had this unit for nine years and I had 624 00:33:30,840 --> 00:33:33,680 Speaker 3: hoped that there was a substantial amount of capital growth, 625 00:33:33,680 --> 00:33:36,960 Speaker 3: but it's not huge, if I'm honest. So the goal 626 00:33:37,040 --> 00:33:39,240 Speaker 3: is to sell this and take that equity to top 627 00:33:39,320 --> 00:33:43,800 Speaker 3: up my superannuation with non concessional contributions. And another thing 628 00:33:43,920 --> 00:33:46,360 Speaker 3: is about two or three years ago, I started a 629 00:33:46,480 --> 00:33:49,280 Speaker 3: small Vanguard account for each of the children. So I 630 00:33:49,440 --> 00:33:52,120 Speaker 3: put in one hundred dollars per month for each child 631 00:33:52,280 --> 00:33:55,320 Speaker 3: My plan was to kick start their financial journey, which 632 00:33:55,320 --> 00:33:58,680 Speaker 3: I've then passed these accounts onto them for them to 633 00:33:58,720 --> 00:34:01,600 Speaker 3: manage when they start working for time, and I'd expect 634 00:34:01,600 --> 00:34:04,480 Speaker 3: to like them to contribute one hundred dollars per month 635 00:34:04,560 --> 00:34:07,520 Speaker 3: so they get to see what reinvesting and compounding can do. 636 00:34:08,280 --> 00:34:10,560 Speaker 3: To be honest, that balance is very small, so it'd 637 00:34:10,600 --> 00:34:12,759 Speaker 3: be nice if I could chop that up or add 638 00:34:12,840 --> 00:34:14,799 Speaker 3: more and then hand that over to the girls at 639 00:34:14,800 --> 00:34:15,480 Speaker 3: the right time. 640 00:34:16,560 --> 00:34:19,719 Speaker 2: What exciting goals to have and to be working on. 641 00:34:20,520 --> 00:34:23,080 Speaker 2: You know, you must be. You must have been so 642 00:34:23,160 --> 00:34:24,040 Speaker 2: proud of yourself. 643 00:34:24,880 --> 00:34:27,200 Speaker 3: I'm feeling excited about the future for sure. 644 00:34:27,880 --> 00:34:28,120 Speaker 2: Yeah. 645 00:34:28,560 --> 00:34:31,040 Speaker 1: All right. Last question as we wrap up today's episode, 646 00:34:31,120 --> 00:34:32,960 Speaker 1: what advice would you give you all yourself when it 647 00:34:33,000 --> 00:34:34,680 Speaker 1: comes to money and money management? 648 00:34:35,080 --> 00:34:39,080 Speaker 3: So I'd say start as early as possible. A little 649 00:34:39,120 --> 00:34:42,520 Speaker 3: goes a long way with compounding. If you start early, 650 00:34:42,560 --> 00:34:44,600 Speaker 3: you've got lots of time on your side. It's a gift. 651 00:34:45,320 --> 00:34:48,080 Speaker 3: I try to communicate this to my children Canna all 652 00:34:48,160 --> 00:34:51,359 Speaker 3: the time. My eldest daughter is currently too busy living 653 00:34:51,360 --> 00:34:53,919 Speaker 3: her best life, but my fifteen year old is very 654 00:34:53,920 --> 00:34:56,440 Speaker 3: cleuely on all things financed. So I dare say she 655 00:34:56,520 --> 00:34:59,959 Speaker 3: might excel in this arena. The hardest thing is really 656 00:35:00,280 --> 00:35:04,800 Speaker 3: starting the journey, understanding what your current position is, coming 657 00:35:04,880 --> 00:35:07,759 Speaker 3: up with achievable goals, and creating a plan. I found 658 00:35:07,800 --> 00:35:10,880 Speaker 3: that to be the biggest hurdle, But thereafter it's about 659 00:35:11,320 --> 00:35:15,719 Speaker 3: following through and going along for the ride. One of 660 00:35:15,760 --> 00:35:18,080 Speaker 3: the other things is if you are in a relationship, 661 00:35:18,280 --> 00:35:20,400 Speaker 3: get interested in the finances and don't leave it to 662 00:35:20,440 --> 00:35:22,600 Speaker 3: your partner. Make sure you are on the same page 663 00:35:22,640 --> 00:35:26,400 Speaker 3: with your financial goals. For the single people, I know, 664 00:35:26,480 --> 00:35:29,279 Speaker 3: it's much harder to make the numbers work, but there 665 00:35:29,320 --> 00:35:34,120 Speaker 3: is a wonderful freedom that comes with not needing to negotiate, compromise, 666 00:35:34,280 --> 00:35:37,000 Speaker 3: or even agree on a financial goals with a partner. 667 00:35:37,400 --> 00:35:40,359 Speaker 3: So if you are single, I'd say embrace that take 668 00:35:40,400 --> 00:35:43,959 Speaker 3: an active role in your financial education. So read, read, read, 669 00:35:44,040 --> 00:35:48,200 Speaker 3: and listen to podcasts, and remain patient and persistent. We 670 00:35:48,280 --> 00:35:51,040 Speaker 3: are really in this for the long game. And finally, 671 00:35:51,239 --> 00:35:53,840 Speaker 3: I think everyone needs to be kind to themselves. You know, 672 00:35:53,960 --> 00:35:56,359 Speaker 3: life happens to all of us and sometimes we can 673 00:35:56,400 --> 00:36:01,160 Speaker 3: have financial setbacks or make financial mistakes. I absolutely have, 674 00:36:01,920 --> 00:36:04,920 Speaker 3: But don't be hard on yourself, and please don't stop 675 00:36:04,920 --> 00:36:07,520 Speaker 3: on your journey if you do experience some setback. 676 00:36:07,880 --> 00:36:11,719 Speaker 1: Brilliant advice and so timely with everything that's going on 677 00:36:11,800 --> 00:36:16,360 Speaker 1: right now and people feeling vulnerable and fragile and questioning, 678 00:36:16,880 --> 00:36:18,759 Speaker 1: you know, what they should do next and whether they 679 00:36:18,760 --> 00:36:20,879 Speaker 1: should just throw the towel in. So I can't thank 680 00:36:20,920 --> 00:36:26,200 Speaker 1: you enough for coming on today's episode of Sugar Mama's Fireplay. Adambel, 681 00:36:26,320 --> 00:36:29,120 Speaker 1: you are absolutely fantastic. Thank you so much for all 682 00:36:29,120 --> 00:36:31,040 Speaker 1: of our listeners. If you could take a moment to 683 00:36:31,160 --> 00:36:34,040 Speaker 1: leave a rating and review, but more importantly, could you 684 00:36:34,080 --> 00:36:37,440 Speaker 1: take a moment to go and send this particular episode 685 00:36:37,440 --> 00:36:40,239 Speaker 1: to anyone that you know that would really benefit from 686 00:36:40,280 --> 00:36:46,160 Speaker 1: hearing Annabelle's incredible story and her wisdom, her advice and 687 00:36:46,239 --> 00:36:50,640 Speaker 1: her strength, because it really is contagious. All right, everyone, 688 00:36:50,719 --> 00:36:52,399 Speaker 1: thank you so much for listening, and I look forward 689 00:36:52,440 --> 00:36:55,440 Speaker 1: to touching base with you again next Monday morning. 690 00:36:55,239 --> 00:36:56,680 Speaker 3: On Sugar Mama's fire Work. 691 00:36:56,880 --> 00:36:59,960 Speaker 2: Of course, make sure you are subscribed today