WEBVTT - The $100-a-week experiment

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<v Speaker 1>Welcome to How Do They Afford That? The podcast that

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<v Speaker 1>peaks into the financial lives of everyday Australians. I'm Uncle Thompson.

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<v Speaker 1>I'm an author and the co host of the business

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<v Speaker 1>news podcast Fear and Greed and as always um with

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<v Speaker 1>Canna Campbell, financial planner and founder of sugar Mumer TV,

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<v Speaker 1>the financial literacy platform covering YouTube, podcast books, Instagram, threads,

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<v Speaker 1>TikTok and a renowned paper rustler. Hello, Canna Boston. Sorry, indeed, indeed,

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<v Speaker 1>look today's episodes about a I would like to say,

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<v Speaker 1>it's a fairly simple idea. What happens if you change

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<v Speaker 1>your finances by just one hundred dollars a week? And

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<v Speaker 1>that might be saving, it might be investing, it might

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<v Speaker 1>be cutting, it might be redirecting it. And it's based

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<v Speaker 1>on this idea of that doesn't sound like a huge amount,

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<v Speaker 1>but does it add up quickly and does it have

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<v Speaker 1>a greater impact in certain areas than others? One hundred

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<v Speaker 1>dollars a week? Is that realistic? I know it's a

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<v Speaker 1>cost of living crisis. There is a lot of pressure,

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<v Speaker 1>but we're not saying find a thousand dollars a week.

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<v Speaker 1>It's one hundred.

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<v Speaker 2>Look it's very subjective, and I think most people are

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<v Speaker 2>already you know, would say that is very hard right now.

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<v Speaker 2>But the truth is, it's actually not about one hundred dollars.

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<v Speaker 2>It's about the consistency. It's about the intention, like having

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<v Speaker 2>a go and trying to find you one hundred dollars

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<v Speaker 2>whatever you can do, and getting started and building that momentum.

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<v Speaker 2>So I don't think it really matters right now the amount,

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<v Speaker 2>whether it's ten dollars a week, fifty dollars a week,

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<v Speaker 2>or one hundred dolls a week, is about like having

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<v Speaker 2>stepping up and having a crack at trying to find

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<v Speaker 2>some extra money that you can then use intentionally and

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<v Speaker 2>redirect to improve your financial wellbeing.

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<v Speaker 1>Okay, if we were just in theory to use the

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<v Speaker 1>one hundred dollars as our fine, as a just an experiment, Okay,

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<v Speaker 1>for this episode cutting one hundred dollars, we're going to

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<v Speaker 1>go through the options we're kind of mentioned, saving, investing, cutting, redirecting,

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<v Speaker 1>earning and extra hundred dollars a week, all those things.

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<v Speaker 1>Cutting one hundred dollars, how would you do it?

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<v Speaker 2>Well, Like so many things in life, it starts with awareness,

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<v Speaker 2>you know, going through your budget, but also going through

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<v Speaker 2>your transactions, you know, making sure your budget actually matches

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<v Speaker 2>how you really are spending, because the budget is an intention,

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<v Speaker 2>the transactions is the truth and reality of where your

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<v Speaker 2>money actually goes.

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<v Speaker 1>Oh, that would be great on a T shirt. Don't

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<v Speaker 1>need to be a very large trademark that a very

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<v Speaker 1>large T shirt to fit all of that in because

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<v Speaker 1>it's probably a bit longer.

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<v Speaker 2>And look, when you look at the transactions, and you

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<v Speaker 2>can sort of be a lot more accountable and honest.

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<v Speaker 2>And you know, well, look, I say I only spend

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<v Speaker 2>two hundred dollars on my paper budget over here, but

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<v Speaker 2>look I'm actually spending three hundred dollars you know on grossriies.

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<v Speaker 2>That's what you need to catch and that's where you

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<v Speaker 2>need to get back in control and identify the wastage

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<v Speaker 2>and the leakage. So and you've got a look at everything.

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<v Speaker 2>You can't sort of pick and choose as to what

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<v Speaker 2>expenses you know, the convenient to your brain to look at.

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<v Speaker 2>You can look at the food, do a look at

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<v Speaker 2>the subscriptions, and keeping in mind that you know subscriptions

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<v Speaker 2>where they're coming out of may not necessarily be a

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<v Speaker 2>different account or for a credit card or you know,

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<v Speaker 2>you've gould to be keep an eye as to where

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<v Speaker 2>all these things are being paid and checking all those things,

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<v Speaker 2>looking at you know, your groceries, but you're also maybe

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<v Speaker 2>eating out a lot. See might I think, oh, it's

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<v Speaker 2>Fine'm actually sticking to my gross's budget, But really you're

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<v Speaker 2>just spending less on the groceries because you're eating out

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<v Speaker 2>more or getting say, you know, the home delivery or takeaway,

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<v Speaker 2>and the impulse spending and of course all those utilities

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<v Speaker 2>that we all have to pay for a part of

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<v Speaker 2>adult life. And it's not about, you know, necessarily one

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<v Speaker 2>big cut to find, for example, the one hundred dollars.

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<v Speaker 2>Do understand that it might actually be a combination of

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<v Speaker 2>different areas. It might even be ten different areas that

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<v Speaker 2>each save you ten dollars a month. They help find

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<v Speaker 2>you that one hundred dollars. You know, it's this is

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<v Speaker 2>what we need to do if we really want to

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<v Speaker 2>try and make a shift and improvement in our financial

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<v Speaker 2>will being to find that extra extra money that we

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<v Speaker 2>can actually do something with.

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<v Speaker 1>Okay, instead of cutting, what about earning one hundred dollars

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<v Speaker 1>a week? This is you either side hustle clean, right.

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<v Speaker 2>Oh, we have so many episodes on this, but there

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<v Speaker 2>are you know, and I really am big on trying

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<v Speaker 2>to earn lots of money. Obviously keeping in mind, you know,

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<v Speaker 2>you might have young children, you may have responsibilities. You

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<v Speaker 2>may be also working really long hours and you're you know,

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<v Speaker 2>completely brained at the end of the day. There are

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<v Speaker 2>people in certain situations that can't actually do that. But yes,

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<v Speaker 2>when you find ways to earn extra money, it's unlimited.

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<v Speaker 2>You know, the sky's the limit. And you know we've

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<v Speaker 2>spoken about, you know, doing market research, doing surveys online,

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<v Speaker 2>you know, decluttering your home, getting rid of you know, unused,

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<v Speaker 2>unwanted clothes, sporting equipment, furniture, you know, to help come

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<v Speaker 2>up with some extra money, you know, becoming a delivery partner,

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<v Speaker 2>an uber driver where you can clock on and clock off,

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<v Speaker 2>you decide the hours that you want to work, you know,

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<v Speaker 2>looking at your skills that you already have and how

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<v Speaker 2>can you monetize them. For example, you might be fantastic

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<v Speaker 2>with a camera, and perhaps you can start photographing events

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<v Speaker 2>on the weekends, like, you know, looking at all the

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<v Speaker 2>different things that you can do and obviously the resources

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<v Speaker 2>and the time and the energy and obviously making it

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<v Speaker 2>actually worthwhile. Your time is really important. But you know,

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<v Speaker 2>income has no ceiling here, so that quite possibly, you know,

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<v Speaker 2>this idea of one hundred dollars per week may not

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<v Speaker 2>necessarily be about cutting the fat, because the fat may

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<v Speaker 2>have already been cut most likely, but in fact, you know,

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<v Speaker 2>earning some extra money instead, and earning even more than

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<v Speaker 2>one hundred dollars per week.

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<v Speaker 1>I like that. I like the idea that that once

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<v Speaker 1>you have started, there is no limit on what you

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<v Speaker 1>can do. Right. That's it's like.

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<v Speaker 2>A very abundant statement from you.

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<v Speaker 1>You really have had an effect on some time. The

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<v Speaker 1>idea of redirecting one hundred dollars a week, and this

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<v Speaker 1>probably goes slightly hand in hand with the cutting of

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<v Speaker 1>one hundred dollars, but I suppose it's more about taking

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<v Speaker 1>money that you're already spending and deciding whether or not

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<v Speaker 1>it could be better spent elsewhere.

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<v Speaker 2>It's about reassigning that money or redirecting it to a

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<v Speaker 2>better purpose that's going to improve your well being and

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<v Speaker 2>your well being today, but also more so very much

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<v Speaker 2>into the long run, where you look back and go, gosh,

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<v Speaker 2>I'm glad I did that for myself. Back then.

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<v Speaker 1>Yeah, okay, and we actually we need to talk now

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<v Speaker 1>about what to do with the money because this is

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<v Speaker 1>then when we get into the investing one hundred dollars

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<v Speaker 1>a week. So the big question here is where is

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<v Speaker 1>one hundred dollars a week going to have the most impact?

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<v Speaker 2>Well, that's answer to that question really lies in your

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<v Speaker 2>financial situation. You know, if you're someone who's got credit

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<v Speaker 2>card debt or buy now, pay later debt chasing them,

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<v Speaker 2>you know that extra hundred dollars per week or per

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<v Speaker 2>month can go or should go under the premise obviously

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<v Speaker 2>of general guidance is directly to that debt, and that

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<v Speaker 2>is going to You're going to clear the decks and

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<v Speaker 2>then allow yourself to then move on to the next

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<v Speaker 2>financial responsibilities and alreadies that aren't going to improve a

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<v Speaker 2>French wellbeing even further, I've.

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<v Speaker 1>Done it again, haven't I. I've just I have assumed

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<v Speaker 1>that we were going to take this hundred dollars a

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<v Speaker 1>week and just put it towards investing. But if I'm

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<v Speaker 1>going to.

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<v Speaker 2>I'm going to be kind to you. I just think

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<v Speaker 2>I can see the motivation of watching that one hundred

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<v Speaker 2>dollars grow. But you know, we need to say the obvious.

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<v Speaker 2>You shouldn't be investing yet if you're still carrying toxic debt,

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<v Speaker 2>because that toxic debt is a lot more expensive than

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<v Speaker 2>the money you're going to earn from investing.

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<v Speaker 1>Yeah, okay, what we're going to do now is we're

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<v Speaker 1>going to take a very quick break and then we

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<v Speaker 1>are going to talk investing, because apparently I went off

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<v Speaker 1>way early just then and forgot to talk about kind

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<v Speaker 1>of paying off debt and getting yourself out of trouble.

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<v Speaker 1>We've established that that is a very important priority. Quick break,

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<v Speaker 1>and we'll come back with investing your one hundred dollars

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<v Speaker 1>a week. Cano this is our one hundred dollars a week.

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<v Speaker 1>Barent we've talked about cutting one hundred dollars, earning one

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<v Speaker 1>hundred dollars, redirecting one hundred dollars a week that you're

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<v Speaker 1>already spending on something else, and putting it into something

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<v Speaker 1>that's going to have a bigger impact for the future.

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<v Speaker 1>We of course were united in talking about the importance

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<v Speaker 1>of putting it towards debt first. That was not a

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<v Speaker 1>suggestion just by one of us that the other had

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<v Speaker 1>forgotten about. Let's now get to investing right, and I'm

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<v Speaker 1>not just talking about kind of putting it into shares

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<v Speaker 1>or anything, but maybe even superannuation.

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<v Speaker 2>Superannuation is definitely for a lot of Australian's going to

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<v Speaker 2>be a really viable strategy. You know, obviously it's concessionally taxed,

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<v Speaker 2>which is huge because it obviously then helps remove the

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<v Speaker 2>eroding effects of tax. And obviously you've got to think

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<v Speaker 2>about how you're going to do that. Is it one

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<v Speaker 2>hundred dollars per week going to go through salary sacrificing

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<v Speaker 2>because sometimes that actually can be a really easy way

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<v Speaker 2>of doing it because it takes away that self control

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<v Speaker 2>or discipline because it's done obviously by HR your payroll team,

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<v Speaker 2>and you're obviously letting more money go into superannuation that's

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<v Speaker 2>already got you know, some money I would hope in super.

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<v Speaker 2>So it's obviously going to have a bigger impact on

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<v Speaker 2>the long term compounding effect. So yes, super is important.

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<v Speaker 2>It's I don't imagine too much regret would come with

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<v Speaker 2>it as long as you're taken into consideration the accessibility issue.

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<v Speaker 2>You know, if you were twenty and you said I'm

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<v Speaker 2>going to put one hundred dollars per week, I'd say

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<v Speaker 2>we'll hang on. Just think that through and as to

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<v Speaker 2>whether that's right for you, and for some people that

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<v Speaker 2>is the perfect strategy, and it's about understanding your values

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<v Speaker 2>and your goals of course here, but you know, you

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<v Speaker 2>do need to keep that in mind. And sometimes if

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<v Speaker 2>we're talking about one hundred dollars here, perhaps there's a balance.

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<v Speaker 2>You know, it's one hundred dollars investing one hundred dollars.

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<v Speaker 1>Into super okay in terms then of investing other forms

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<v Speaker 1>of investing. Is that enough to get you started building

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<v Speaker 1>a portfolio? Oh my god, you just the the energy

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<v Speaker 1>just radiating off you. Just then it's as though you

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<v Speaker 1>grew to twice your size in a heartbeat.

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<v Speaker 2>Yes, to answer your question. So all right, this is

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<v Speaker 2>where microinvesting does come because it's a great place to

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<v Speaker 2>get started because you can start investing with small amounts

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<v Speaker 2>of money like ten dollars. However, as I like to say,

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<v Speaker 2>with micro investing, it's a great starting point, but it's

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<v Speaker 2>not the finish line I would prefer for someone. And

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<v Speaker 2>I'm going to get a little bit. I don't mean

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<v Speaker 2>to be arrogant, but I'm coming from a place of

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<v Speaker 2>love and care for someone to actually stretch themselves in

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<v Speaker 2>a healthy, joyful way where they actually see a meaningful

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<v Speaker 2>improvement and uplift in their financial wellbeing, but ideally investing

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<v Speaker 2>in parcels of shares rather than going through micro investing,

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<v Speaker 2>and you know, investing for example, in passes of say

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<v Speaker 2>five hundred dollars or one thousand dollars. And I will admit, yes,

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<v Speaker 2>of course there is I'm slowing people's momentum down because

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<v Speaker 2>they're not investing one hundred dollars per week. They've got

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<v Speaker 2>to wait until five weeks have passed and they've got

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<v Speaker 2>their full five hundred dollars or ten weeks of pass

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<v Speaker 2>and I've got their four thousand dollars ready to invest.

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<v Speaker 2>But absolutely you can use that money to start investing.

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<v Speaker 2>And I think, you know, it's such an important thing

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<v Speaker 2>here as to what we're talking about here. It's about

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<v Speaker 2>getting started because you can then level up from here.

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<v Speaker 2>But you know, I ran some really very basic numbers here,

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<v Speaker 2>and if we assumed a net return of seven percent

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<v Speaker 2>per annum, and you were to start with a baseline

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<v Speaker 2>of zero, so nothing is just starting with your one

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<v Speaker 2>hundred dollars per week, that's it, and never increased it.

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<v Speaker 2>You know, over the course of ten years, assuming set

0:11:22.400 --> 0:11:25.240
<v Speaker 2>and forget and reinvest everything, you're going to have between

0:11:25.280 --> 0:11:27.480
<v Speaker 2>seventy to eighty thousand dollars and ten years time, which

0:11:27.600 --> 0:11:29.880
<v Speaker 2>is a lot of money. That is a lot of money,

0:11:29.880 --> 0:11:32.480
<v Speaker 2>you know, from just trimming the fat from your budget

0:11:32.559 --> 0:11:35.720
<v Speaker 2>or picking up a side hustle. And then of course

0:11:35.720 --> 0:11:38.600
<v Speaker 2>we stretch that out further because compounding interests can work

0:11:38.640 --> 0:11:41.760
<v Speaker 2>even harder with time. You're looking at two hundred and fifty.

0:11:41.520 --> 0:11:43.040
<v Speaker 1>Thousand dollars over what period?

0:11:43.120 --> 0:11:44.400
<v Speaker 2>They are? Twenty years?

0:11:44.520 --> 0:11:46.960
<v Speaker 1>Oh really, yeah, this is what about that jumps up

0:11:47.040 --> 0:11:48.520
<v Speaker 1>quickly for twenty years.

0:11:48.559 --> 0:11:50.800
<v Speaker 2>I'm banging on about the importance of getting started because

0:11:50.840 --> 0:11:54.040
<v Speaker 2>the earlier start you're giving yourself more time to allow

0:11:54.040 --> 0:11:56.120
<v Speaker 2>this to work for you. And then stretch it to

0:11:56.200 --> 0:11:59.679
<v Speaker 2>thirty years, five hundred thousand dollars.

0:12:00.800 --> 0:12:06.280
<v Speaker 1>That's amazing. You should be a financial planner. That's great advice.

0:12:06.960 --> 0:12:10.360
<v Speaker 1>That's amazing. That's that's one of those figures. For ten years.

0:12:10.360 --> 0:12:12.040
<v Speaker 1>That sounded pretty good. I'm like, oh, yeah, seventy to

0:12:12.040 --> 0:12:14.800
<v Speaker 1>eighty thousand, that's good. But then the twenty year figure,

0:12:15.040 --> 0:12:15.839
<v Speaker 1>and this is.

0:12:15.840 --> 0:12:18.880
<v Speaker 2>Why everyone needs to realize it's time that is doing

0:12:19.000 --> 0:12:21.560
<v Speaker 2>all the heavy lifting for you and your money, not

0:12:21.840 --> 0:12:24.280
<v Speaker 2>the amount. We're still stuck at one hundred dollars.

0:12:24.640 --> 0:12:26.240
<v Speaker 1>Can I ask, and I want to come back to

0:12:26.280 --> 0:12:28.439
<v Speaker 1>a couple of other things to do with one hundred

0:12:28.480 --> 0:12:32.560
<v Speaker 1>dollars a week. One of those is kind of saving

0:12:32.600 --> 0:12:35.280
<v Speaker 1>for a home or paying off the mortgage. But something

0:12:35.320 --> 0:12:37.880
<v Speaker 1>that you said there just just reminded me of something.

0:12:37.880 --> 0:12:39.720
<v Speaker 1>How much of this is about the hundred dollars, but

0:12:40.760 --> 0:12:43.880
<v Speaker 1>how much of it is really about those good money

0:12:43.920 --> 0:12:48.000
<v Speaker 1>habits making them a part of your your life now

0:12:48.640 --> 0:12:52.720
<v Speaker 1>while you have time to allow them to work their magic.

0:12:53.080 --> 0:12:57.840
<v Speaker 2>I'd say eighty twenty so Perrito, eighty percent is the

0:12:58.000 --> 0:13:02.840
<v Speaker 2>habit is the amount. So and once you have that

0:13:02.960 --> 0:13:07.360
<v Speaker 2>habit in place, leveling up on the amount is really

0:13:07.480 --> 0:13:08.080
<v Speaker 2>very simple.

0:13:08.240 --> 0:13:08.520
<v Speaker 1>Okay.

0:13:08.600 --> 0:13:10.960
<v Speaker 2>If you have that awareness, you have that habit, you're

0:13:11.000 --> 0:13:14.120
<v Speaker 2>paying attention, you're reviewing your checking and even if you're

0:13:14.160 --> 0:13:16.319
<v Speaker 2>only increasing it from say one hundred dollars a week

0:13:16.400 --> 0:13:18.840
<v Speaker 2>to one hundred and one dollars a week, do that

0:13:18.960 --> 0:13:21.920
<v Speaker 2>over the course of the year. You know, before you

0:13:21.960 --> 0:13:25.040
<v Speaker 2>know it, you've had a fifty percent uplift in what

0:13:25.080 --> 0:13:27.720
<v Speaker 2>you're actually contributing. You're going from one hundred dollars per

0:13:27.760 --> 0:13:29.719
<v Speaker 2>week to one hundred and fifty two dollars per week.

0:13:29.760 --> 0:13:32.800
<v Speaker 2>If you like these numbers that I've just repeated, and

0:13:33.360 --> 0:13:36.880
<v Speaker 2>so not repeated, I've just read out, well, skyrockard even further.

0:13:37.320 --> 0:13:40.880
<v Speaker 2>And it's all because you created as a priority and

0:13:40.920 --> 0:13:44.920
<v Speaker 2>made them non negotiable in your life, and you got

0:13:44.920 --> 0:13:47.120
<v Speaker 2>started and stuck to it and didn't deviate from it.

0:13:47.600 --> 0:13:50.920
<v Speaker 1>Okay, back to the investing and the things that you

0:13:50.960 --> 0:13:53.360
<v Speaker 1>can do with one hundred dollars a week. We talked

0:13:53.400 --> 0:13:57.720
<v Speaker 1>about super we talked about starting a portfolio, and you

0:13:57.800 --> 0:14:00.800
<v Speaker 1>do not need to have a thought to do that.

0:14:01.120 --> 0:14:04.920
<v Speaker 1>Just even a parcel of five hundred dollars that can

0:14:04.960 --> 0:14:07.480
<v Speaker 1>get you going right, five hundred, one thousand dollars.

0:14:07.320 --> 0:14:10.280
<v Speaker 2>Well, one thousand dollars project portfolio is started with one

0:14:10.280 --> 0:14:12.840
<v Speaker 2>thousand dollars, and that's worth over three hundred and sixty

0:14:12.880 --> 0:14:14.120
<v Speaker 2>five thousand dollars today.

0:14:14.559 --> 0:14:18.839
<v Speaker 1>That is great emergency money. I feel like I need

0:14:18.880 --> 0:14:22.360
<v Speaker 1>to redeem myself forgetting about the paying off debt earlier.

0:14:22.680 --> 0:14:25.120
<v Speaker 1>But what about putting this hundred dollars a week into

0:14:25.120 --> 0:14:28.240
<v Speaker 1>your emergency money to build up that safety net, that buffer.

0:14:28.200 --> 0:14:29.920
<v Speaker 2>So that you sleep well at night. And I love

0:14:29.960 --> 0:14:32.120
<v Speaker 2>the idea of emergency money. It's not just the money,

0:14:32.160 --> 0:14:36.040
<v Speaker 2>it also is what it makes you feel. Ironically, this morning,

0:14:36.080 --> 0:14:38.680
<v Speaker 2>I was looking at I was doing some internet banking,

0:14:38.840 --> 0:14:41.520
<v Speaker 2>and I looked at our emergency money, and our emergency

0:14:41.560 --> 0:14:44.680
<v Speaker 2>money sits in our offset account, and so it obviously

0:14:44.720 --> 0:14:47.120
<v Speaker 2>helps save us time and interest in the meantime, but

0:14:47.640 --> 0:14:50.680
<v Speaker 2>just that comfort and going I'm actually really proud to

0:14:50.720 --> 0:14:53.360
<v Speaker 2>see that we have emergency money again, as pretty icularly

0:14:53.360 --> 0:14:55.640
<v Speaker 2>as I was got completely wiped out a few years ago,

0:14:56.080 --> 0:14:58.400
<v Speaker 2>but to see that we're actually back on track again.

0:14:58.520 --> 0:15:01.880
<v Speaker 2>But it's that emotion, a sense of you know, stability,

0:15:02.080 --> 0:15:05.840
<v Speaker 2>security and comfort seeing it there. It actually goes beyond

0:15:05.920 --> 0:15:08.240
<v Speaker 2>the actual dollar amount of what's in that account.

0:15:09.600 --> 0:15:12.480
<v Speaker 1>Saving for a home or paying off the mortgage.

0:15:12.720 --> 0:15:15.120
<v Speaker 2>Is that, yeah, they're two great things to use, and

0:15:15.560 --> 0:15:18.600
<v Speaker 2>you know, people like the sooner you can start even

0:15:18.640 --> 0:15:21.720
<v Speaker 2>if you don't necessarily think you know, you're not necessarily

0:15:21.720 --> 0:15:23.440
<v Speaker 2>one hund percent sure you want to go and buy

0:15:23.520 --> 0:15:25.560
<v Speaker 2>a property, to have you just having that there as

0:15:25.560 --> 0:15:28.080
<v Speaker 2>an option, so that should you choose to one day,

0:15:28.280 --> 0:15:31.920
<v Speaker 2>you've actually got some a bit of a deposit already started.

0:15:32.400 --> 0:15:34.520
<v Speaker 2>You know, the one big thing in financial planning is

0:15:34.520 --> 0:15:38.440
<v Speaker 2>is not about necessarily the perfect, most efficient, and you know,

0:15:38.880 --> 0:15:41.960
<v Speaker 2>powerful and effective strategy for clients, but it's more about

0:15:42.040 --> 0:15:44.880
<v Speaker 2>one that gives them the most amount of choice and flexibility.

0:15:45.160 --> 0:15:47.240
<v Speaker 2>So having that even if as I said, if you're

0:15:47.240 --> 0:15:49.160
<v Speaker 2>not one hundred percent sure that you want to use

0:15:49.160 --> 0:15:51.440
<v Speaker 2>that money for that goal necessarily or frieveing that goal's

0:15:51.520 --> 0:15:53.320
<v Speaker 2>right for you, having it there as a backup, as

0:15:53.320 --> 0:15:56.040
<v Speaker 2>an option to tap into further down the track when

0:15:56.040 --> 0:15:59.040
<v Speaker 2>you have greater clarity is really powerful. And if you

0:15:59.080 --> 0:16:01.120
<v Speaker 2>have a mortgage and you are able to find one

0:16:01.160 --> 0:16:05.840
<v Speaker 2>hundred dollars per week, please like put it on the mortgage.

0:16:06.080 --> 0:16:07.920
<v Speaker 2>Now you do need to think about the nuts and

0:16:07.960 --> 0:16:10.160
<v Speaker 2>bolts behind your long term game plans, because for some

0:16:10.200 --> 0:16:12.360
<v Speaker 2>people who are planning on moving out of their principal

0:16:12.360 --> 0:16:15.280
<v Speaker 2>place of residence and turning it into an investment property,

0:16:15.520 --> 0:16:18.920
<v Speaker 2>the advice is a little bit different. But making sure

0:16:18.920 --> 0:16:20.680
<v Speaker 2>that you speak to a mortgage where I can get

0:16:20.720 --> 0:16:22.560
<v Speaker 2>in a financial partner obviously get some advice around there,

0:16:22.560 --> 0:16:25.840
<v Speaker 2>but you can save huge amounts of time and interest

0:16:26.360 --> 0:16:29.960
<v Speaker 2>by increasing your contributions by that one hundred dollars. And

0:16:30.040 --> 0:16:32.080
<v Speaker 2>you know what, I would recommend anyone who's got a

0:16:32.080 --> 0:16:34.000
<v Speaker 2>mortgage right now and thinks, you know what, I'm going

0:16:34.080 --> 0:16:36.440
<v Speaker 2>to go have a crack at finding maybe not necessarily

0:16:36.440 --> 0:16:38.320
<v Speaker 2>one hundred dollars per week, because I think that's quite hard,

0:16:38.320 --> 0:16:40.920
<v Speaker 2>but maybe one hundred dollars per month. Plug your mortgage

0:16:40.960 --> 0:16:44.960
<v Speaker 2>details into any extra payment calculator and there are thousands

0:16:45.000 --> 0:16:47.920
<v Speaker 2>of them online, including on the Sugar Mamba website, which

0:16:47.960 --> 0:16:51.240
<v Speaker 2>is free. You will be gobsmacked as to how much

0:16:51.400 --> 0:16:55.120
<v Speaker 2>time and interest you will save over the course of

0:16:55.160 --> 0:16:57.560
<v Speaker 2>say a twenty five year loan or a thirty year loan.

0:16:58.160 --> 0:17:01.040
<v Speaker 2>It gives you the biggest kickup the art motivation to

0:17:01.080 --> 0:17:03.560
<v Speaker 2>actually go and find that one hundred dollars per week

0:17:03.640 --> 0:17:04.240
<v Speaker 2>or per month.

0:17:05.320 --> 0:17:08.320
<v Speaker 1>That probably leads me neatly into my last question, which

0:17:08.359 --> 0:17:12.720
<v Speaker 1>is kind of how you do this long term without

0:17:12.760 --> 0:17:15.800
<v Speaker 1>it feeling like a grind, like trying to find one

0:17:15.840 --> 0:17:18.480
<v Speaker 1>hundred dollars a week or set up these habits that

0:17:18.520 --> 0:17:20.080
<v Speaker 1>are going to last for a long time so that

0:17:20.160 --> 0:17:22.600
<v Speaker 1>you can take advantage of the power of compound interest,

0:17:22.960 --> 0:17:26.200
<v Speaker 1>that you can take advantage of the benefits of paying

0:17:26.240 --> 0:17:29.159
<v Speaker 1>off your home loan kind of five years early and

0:17:29.200 --> 0:17:32.679
<v Speaker 1>saving thousands of dollars in interest. How you do it

0:17:32.720 --> 0:17:36.919
<v Speaker 1>without it feeling like it is just never ending? Is

0:17:36.960 --> 0:17:40.120
<v Speaker 1>it about finding those goals and attaching that to it.

0:17:40.359 --> 0:17:42.119
<v Speaker 2>Well, before I answer this question, I do want to

0:17:42.119 --> 0:17:45.200
<v Speaker 2>also recommend that people automate this as well, because if

0:17:45.200 --> 0:17:47.960
<v Speaker 2>you have to rely on your list of things to

0:17:47.960 --> 0:17:51.399
<v Speaker 2>do for the day or a calendar note or alert

0:17:51.440 --> 0:17:53.159
<v Speaker 2>on your phone, is you know, we get busy, we

0:17:53.320 --> 0:17:56.679
<v Speaker 2>just get distracted. Temptation comes away, it won't actually happen,

0:17:56.760 --> 0:17:58.600
<v Speaker 2>or it will happen, and you'll start, you know, forget

0:17:58.600 --> 0:18:00.880
<v Speaker 2>about it, and you'll never see the fruits of your

0:18:00.960 --> 0:18:04.600
<v Speaker 2>potent for the opportunity behind this. So automate as much

0:18:04.600 --> 0:18:07.720
<v Speaker 2>as you can. A resalary, sacrificing and after tax contribution

0:18:07.960 --> 0:18:12.080
<v Speaker 2>automation at a regular savings plan, a regular investment plan,

0:18:12.800 --> 0:18:17.040
<v Speaker 2>an extra mortgage repayment plan. Automate absolutely everything. But then

0:18:17.240 --> 0:18:21.280
<v Speaker 2>once you've done it, track your progress, you know, get

0:18:21.320 --> 0:18:24.760
<v Speaker 2>to know your your numbers. You know, have a relationship

0:18:24.760 --> 0:18:28.720
<v Speaker 2>with your financial journey where you can for example, and Michael,

0:18:28.760 --> 0:18:31.600
<v Speaker 2>he's got his eyes raising me in the most peculiar way,

0:18:31.640 --> 0:18:36.080
<v Speaker 2>Like I'm going to like start some sort of imaginary friend.

0:18:36.119 --> 0:18:37.959
<v Speaker 1>As soon as you said to have a relationship with

0:18:38.000 --> 0:18:40.280
<v Speaker 1>your numbers, I'm.

0:18:40.160 --> 0:18:43.480
<v Speaker 2>Talking obviously like I'm being facetious. Here a connection where

0:18:43.480 --> 0:18:46.560
<v Speaker 2>you go, you know what that impact of that extra

0:18:46.600 --> 0:18:48.720
<v Speaker 2>one hundred dollars per week on our mortgage is actually

0:18:48.720 --> 0:18:52.600
<v Speaker 2>meant we've saved fifty dollars per month in interest. And

0:18:52.760 --> 0:18:55.639
<v Speaker 2>you know, looking regularly reconnecting with those calculators so you

0:18:55.720 --> 0:18:59.800
<v Speaker 2>can actually see where is this hard work paying off

0:19:00.040 --> 0:19:02.800
<v Speaker 2>and is it worth it? And of course you know

0:19:03.640 --> 0:19:05.880
<v Speaker 2>the whole point of trimming the budget is to add

0:19:06.240 --> 0:19:09.120
<v Speaker 2>value to your life, not to deprive yourself. But if

0:19:09.160 --> 0:19:12.000
<v Speaker 2>you can actually see, all right, if we can stick

0:19:12.040 --> 0:19:14.960
<v Speaker 2>to this, we don't necessarily have to increase it. But

0:19:15.000 --> 0:19:17.000
<v Speaker 2>we can just stick to this, it's going to mean

0:19:17.040 --> 0:19:19.440
<v Speaker 2>that we can retire one year earlier, which is huge.

0:19:19.480 --> 0:19:21.720
<v Speaker 2>Or it means we can retire with an extra five

0:19:21.760 --> 0:19:24.000
<v Speaker 2>thousand dollars per year, which will give us even greater

0:19:24.080 --> 0:19:26.879
<v Speaker 2>financial stability and comfort. Or it means we're going to

0:19:26.880 --> 0:19:31.040
<v Speaker 2>be in our home, first home or second home sooner fast,

0:19:31.160 --> 0:19:32.440
<v Speaker 2>or we're going to be pay off the home loan

0:19:32.840 --> 0:19:35.320
<v Speaker 2>eighteen months earlier. These are important things when you can

0:19:35.359 --> 0:19:39.040
<v Speaker 2>see the potential payoff from this, it makes it so

0:19:39.160 --> 0:19:42.439
<v Speaker 2>much easier to stick to and it actually doesn't become

0:19:42.960 --> 0:19:46.600
<v Speaker 2>a bore or a frustration. It actually becomes a challenge

0:19:46.600 --> 0:19:48.760
<v Speaker 2>and you almost gamified within yourself.

0:19:49.080 --> 0:19:51.119
<v Speaker 1>I like the sound of that. That actually makes it

0:19:51.160 --> 0:19:55.000
<v Speaker 1>sound very, very positive and achievable as well, hope. So

0:19:55.640 --> 0:19:57.639
<v Speaker 1>all right, if we want more information, where do we

0:19:57.640 --> 0:19:57.960
<v Speaker 1>find you?

0:19:58.280 --> 0:20:00.119
<v Speaker 2>The best place that could reach out to me? Who

0:20:00.560 --> 0:20:02.960
<v Speaker 2>is you know sugar Mom a TV on Instagram?

0:20:03.000 --> 0:20:05.160
<v Speaker 1>Okay, and you can hear me every day with Sean

0:20:05.240 --> 0:20:07.640
<v Speaker 1>Aylmore on Fear and Greed business news you can use.

0:20:07.920 --> 0:20:09.560
<v Speaker 1>Thank you for listening to how do they afford that?

0:20:09.720 --> 0:20:11.800
<v Speaker 1>Remember to hit follow on the podcast. And the best

0:20:11.800 --> 0:20:13.560
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0:20:13.680 --> 0:20:16.560
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0:20:16.800 --> 0:20:18.760
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0:20:18.760 --> 0:20:19.200
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