WEBVTT - Twelve goals for 2025 0:00:02.240 --> 0:00:04.440 Welcome to How Do They Afford That, The podcast that 0:00:04.480 --> 0:00:08.039 peaks into the financial lives of everyday Australians. I'm Michael Thompson. 0:00:08.160 --> 0:00:10.080 I'm a writer and the co host of the podcast 0:00:10.119 --> 0:00:13.240 Fear and Greed business news. As always, I am with 0:00:13.600 --> 0:00:17.560 Canna Campbell, financial planner, founder of sugar Mama TV, the 0:00:17.640 --> 0:00:21.000 financial literacy platform covering YouTube and podcasts and books and 0:00:21.040 --> 0:00:25.720 Instagram threads, TikTok and more. Hello, can a happy new Year. 0:00:26.040 --> 0:00:29.840 I am so motivated. I have had a break, I've 0:00:29.880 --> 0:00:32.920 recharged my batteries. I am ready to relaunch. 0:00:33.280 --> 0:00:37.720 You look motivated. There is a buzz about you if 0:00:37.760 --> 0:00:42.239 you casting around right because it is the new year, 0:00:42.280 --> 0:00:45.520 It's twenty twenty five. If you are not yet sure 0:00:45.600 --> 0:00:48.919 what to do for your new year's resolution, we are 0:00:49.080 --> 0:00:53.519 here to help because you what I would really like 0:00:53.680 --> 0:00:55.840 would be to make this year the year that you 0:00:55.880 --> 0:00:58.120 kind of take control of your money. Because we've covered 0:00:58.160 --> 0:01:00.600 so much stuff, haven't we We've covered so many different things, 0:01:00.600 --> 0:01:04.000 and there's never better time to start things than right away. 0:01:04.160 --> 0:01:06.280 But if you want a milestone, if you want a 0:01:06.319 --> 0:01:08.240 time to do it, the start of the new year 0:01:08.440 --> 0:01:12.920 perfect correctly. So today we are putting together twelve goals 0:01:12.920 --> 0:01:15.520 for twenty twenty five. Shall we jump into it? 0:01:15.880 --> 0:01:17.880 I love that kindogram running all right? 0:01:18.560 --> 0:01:21.400 Number one, and look, these don't have to be your goals. 0:01:21.560 --> 0:01:25.480 You can take and leave any of them depending on 0:01:25.520 --> 0:01:29.640 what suits your own personal circumstances. But number one, make 0:01:29.680 --> 0:01:30.400 a budget. 0:01:30.680 --> 0:01:32.600 Make a budget, or if you already have a budget, 0:01:32.680 --> 0:01:34.840 review your budget, which I should add you should be 0:01:34.880 --> 0:01:37.840 doing every single month, reviewing it. But it is so 0:01:37.880 --> 0:01:40.080 important that you have a budget and that it is 0:01:40.120 --> 0:01:44.000 written down and you can easily access it to update it, 0:01:44.160 --> 0:01:46.120 to check it, to see what other new expenses have 0:01:46.200 --> 0:01:46.679 slipped on. 0:01:46.760 --> 0:01:49.360 In New Year's is typically when I know I should 0:01:49.360 --> 0:01:51.320 be doing it more regularly. But New Years is typically 0:01:51.360 --> 0:01:54.080 when I'm kind of looking at my budget and because 0:01:54.080 --> 0:01:55.880 there's a little bit more downtime and you can sit 0:01:55.920 --> 0:01:58.280 down and do it. For those who haven't got a 0:01:58.280 --> 0:02:01.040 budget and perhaps hearing this podcast for the first time, 0:02:01.280 --> 0:02:03.360 in thirty seconds or less, can you tell us how 0:02:03.400 --> 0:02:05.320 to actually sit down and do it. Is it about 0:02:05.320 --> 0:02:08.440 just assessing what you're already spending and just writing it 0:02:08.480 --> 0:02:09.200 down on paper. 0:02:09.520 --> 0:02:13.200 Oh my gosh, no, you can't do that in thirty seconds. 0:02:13.280 --> 0:02:14.320 We need to do it, I think we need to 0:02:14.360 --> 0:02:16.720 do a whole new session maybe on budgeting and cash flow. 0:02:16.800 --> 0:02:20.160 But you need to go through your transactions. So look 0:02:20.400 --> 0:02:22.600 print off if you need to, or have on a 0:02:22.639 --> 0:02:25.760 separate screen your bank statements. You can actually see the 0:02:25.800 --> 0:02:29.320 reality of what your life costs. You need a calculator, 0:02:29.360 --> 0:02:31.120 you need a piece of pen and paper. I actually 0:02:31.160 --> 0:02:33.080 recommend writing it down on paper before you go and 0:02:33.080 --> 0:02:35.800 plug it into an Excel spreadshet or a budget tenplate. 0:02:36.200 --> 0:02:40.559 But you can pretend that you spend this much on takeaways, 0:02:40.760 --> 0:02:43.440 but your bank account and those transactions will tell you 0:02:43.520 --> 0:02:44.560 the truth and reality. 0:02:44.800 --> 0:02:49.160 Okay. Goal number two is to make twenty twenty five 0:02:49.320 --> 0:02:53.880 the year that you actually create a buffer in your budget, right, 0:02:54.440 --> 0:02:55.960 And that's kind of tied into what you just said 0:02:56.000 --> 0:02:58.000 there about kind of almost stop lying to yourself and 0:02:58.040 --> 0:03:01.120 stop kind of deceiving yourself more so about what you're 0:03:01.120 --> 0:03:04.600 actually spending. Be realistic and go one step further and 0:03:04.680 --> 0:03:06.160 build a buffer in. 0:03:06.720 --> 0:03:09.920 Also with the rise and cost of living, expenses are 0:03:09.960 --> 0:03:11.760 going up all the time, you know, particularly around for 0:03:11.760 --> 0:03:16.240 example insurances, So round everything up so you've got a 0:03:16.280 --> 0:03:18.679 margin of error. And what I say to people through 0:03:18.720 --> 0:03:21.680 the Sugar Mama Budget and cash Flow Academy program is 0:03:21.960 --> 0:03:24.160 round it up to the nearest five to ten one 0:03:24.240 --> 0:03:27.680 hundred dollars. So if it's eighty dollars, quarter one hundred dollars, 0:03:27.880 --> 0:03:29.960 if it's seven dollars, caught ten dollars. But once you 0:03:30.000 --> 0:03:32.320 go to one hundred dollars and more, add ten percent 0:03:32.400 --> 0:03:34.200 on there. So it just keeps you in a very 0:03:34.240 --> 0:03:37.600 safe playground when it comes to managing your cash flow 0:03:37.640 --> 0:03:38.880 and you're not caught short. 0:03:39.880 --> 0:03:42.840 Okay, nearest five dollars, ten dollars, one hundred dollars or 0:03:43.040 --> 0:03:46.040 above that ten percent okay, Because a lot of people 0:03:46.080 --> 0:03:48.240 would just look at the budget and just go, okay, 0:03:48.240 --> 0:03:50.000 this is exactly what we've spent in the past, this 0:03:50.040 --> 0:03:51.840 is exactly what we will allow for in the future. 0:03:51.840 --> 0:03:54.600 But the cost of everything just keeps going up, and 0:03:54.640 --> 0:03:57.040 also things can catch you out, and it's better to 0:03:57.080 --> 0:03:59.760 have that little buffer there exactly for peace of mind. 0:04:00.280 --> 0:04:04.480 Number three speaking a peace of mind, emergency money. 0:04:05.320 --> 0:04:08.720 So your emergency money should be in a separate account, 0:04:09.280 --> 0:04:13.120 and I recommend you nickname it our emergency money. But 0:04:13.440 --> 0:04:16.159 it's not about just having emergency money, about having the 0:04:16.279 --> 0:04:19.200 right amount of emergency money, I will say when it 0:04:19.200 --> 0:04:22.960 comes to your separate account, it is potentially, and speak 0:04:23.000 --> 0:04:24.760 to your bank or mortgage work before you go and 0:04:24.800 --> 0:04:27.400 do this, but have a look at having a redoor 0:04:27.440 --> 0:04:29.599 facility or an offset account, so at least while that 0:04:29.680 --> 0:04:32.320 emergency money is building up, it's helping you to save 0:04:32.360 --> 0:04:35.680 on your interest. And this is so important when I 0:04:35.720 --> 0:04:37.640 say to people when they say, well, how much emergency 0:04:37.640 --> 0:04:39.680 money is the right amount, look at the reality of 0:04:39.720 --> 0:04:41.920 your life and things that could happen and what they 0:04:41.920 --> 0:04:44.720 would cost, and then pick three things that could happen 0:04:44.960 --> 0:04:50.960 simultaneously that will impact your situation. So and I say 0:04:50.960 --> 0:04:54.040 that because things often sometimes things happen in threes. And 0:04:54.400 --> 0:04:58.560 you know, only back in early December, we had a 0:04:58.600 --> 0:05:02.440 electrical fire, our power for the day and so I 0:05:02.440 --> 0:05:04.560 lost all days whether it works, I couldn't do any work. 0:05:05.120 --> 0:05:08.120 And then my car broke down and it broke down 0:05:08.400 --> 0:05:11.840 as I was driving trying to cross intersections, so it 0:05:12.320 --> 0:05:15.159 had to be towed a long way away and then 0:05:15.560 --> 0:05:19.000 huge expense to fix it. So that happened. Then also 0:05:19.240 --> 0:05:23.560 washing machine broke and the air conditioning went, so it 0:05:23.600 --> 0:05:27.080 was you know, things happened. It's not don't think I 0:05:27.120 --> 0:05:29.240 will only one thing happen at a time. You never know, 0:05:29.800 --> 0:05:32.799 so be smart. You never regret having too much emergency 0:05:32.839 --> 0:05:35.200 money and then having that offset account or redeal facility 0:05:35.360 --> 0:05:38.560 can actually work to your financial advantage and saving money 0:05:38.600 --> 0:05:40.280 in the main time. But it means you sleep while 0:05:40.320 --> 0:05:40.680 at night. 0:05:41.560 --> 0:05:44.680 I always struggle with the idea of what constitutes an emergency. 0:05:45.360 --> 0:05:48.200 I did get a message this week from you about 0:05:48.240 --> 0:05:51.680 a certain situation. Whether it was classified as coming out 0:05:51.680 --> 0:05:52.840 of the emergency. 0:05:52.320 --> 0:05:55.880 Money, yes, and it was. We established that I was 0:05:55.960 --> 0:05:58.200 expecting a much more negative response than the one that 0:05:58.240 --> 0:06:01.400 I got because our coffee machine diet and it's hardly 0:06:01.600 --> 0:06:06.560 kind of a it's a very very first world problem. 0:06:05.360 --> 0:06:07.400 And still it's part of your ritual and. 0:06:08.520 --> 0:06:11.720 It's actually really really important, and you are right. We 0:06:12.040 --> 0:06:14.559 did the sums. Then again, Shanna and I did the sums, 0:06:14.600 --> 0:06:16.080 and she was like, hey, you do realize that if 0:06:16.080 --> 0:06:18.120 we were to buy kind of these coffees every day 0:06:18.600 --> 0:06:21.080 out we would be spending X amount and it was 0:06:21.120 --> 0:06:23.839 a staggering sum compared to what it costs to do 0:06:23.880 --> 0:06:25.520 it at home, once you've done the initial outlayer of 0:06:25.600 --> 0:06:28.880 the machine. And so my message to you was, hey, cana. 0:06:28.880 --> 0:06:31.720 Do you reckon a new coffee machine? That count as 0:06:31.720 --> 0:06:33.960 an emergency for the emergency fund? And I was expecting 0:06:33.960 --> 0:06:38.560 this all caps response, no, that's not an emergency something, 0:06:38.600 --> 0:06:41.560 and the response came back, if you really love your coffee, 0:06:41.760 --> 0:06:43.760 then yeah, it probably is. 0:06:43.920 --> 0:06:45.480 It's helping you, say money, But it's also a very 0:06:45.480 --> 0:06:47.400 beautiful ritual I think having a coffee at home. 0:06:47.560 --> 0:06:51.640 Yeah, yeah, no, absolutely, Okay, So make twenty twenty five 0:06:51.640 --> 0:06:53.840 of the year set up your emergency fund because you 0:06:53.920 --> 0:06:57.120 will sleep better at night having that there. 0:06:57.200 --> 0:06:59.640 And also when things do go wrong, you don't fall 0:06:59.680 --> 0:07:03.000 into a mess in a panic. Yes, a crappy week, 0:07:03.760 --> 0:07:05.880 but you know I was able to have a moment 0:07:05.960 --> 0:07:08.200 go thank goodness, we have su emergency money there. 0:07:09.040 --> 0:07:11.720 Yeah. Number four, what have we got? 0:07:12.200 --> 0:07:15.800 Pay down debt, So draw a line in the sand, 0:07:15.840 --> 0:07:18.320 no more toxic debt. If you're relying on credit cards, 0:07:18.320 --> 0:07:20.840 you're lying on buy an now, pay later to survive. 0:07:21.480 --> 0:07:24.040 That is your red flag that you need to get 0:07:24.040 --> 0:07:26.720 the monkey off your back. Pay those debts down and 0:07:27.280 --> 0:07:29.200 take a break from using them, or don't use them 0:07:29.200 --> 0:07:31.800 at all. And you you know, when it comes to debt, 0:07:32.320 --> 0:07:36.200 rules are under thetter of general advice only is you know, 0:07:36.320 --> 0:07:38.840 credit card debt, buy now, pay later, the ones that 0:07:38.960 --> 0:07:43.600 have that toxic impact on your financial situation, and just 0:07:43.920 --> 0:07:46.560 work through your list. And I have a strategy called 0:07:46.600 --> 0:07:50.960 the hitless strategy where you it's not it could mean 0:07:50.960 --> 0:07:52.360 that you paid a little bit more money in interest, 0:07:52.400 --> 0:07:54.560 but it's more about the mindset and shooting into the 0:07:54.560 --> 0:07:55.600 psychology of money. 0:07:55.640 --> 0:07:57.760 What's it called. It's called the hit list hit list. 0:07:58.160 --> 0:07:59.840 We can do an episode if you're like, really only 0:07:59.880 --> 0:08:00.320 hit list. 0:08:00.240 --> 0:08:01.000 I would be open to this. 0:08:01.240 --> 0:08:03.680 But you go through the smallest debt first, and you 0:08:03.720 --> 0:08:06.160 build up momentum and work through. And yes it means 0:08:06.160 --> 0:08:09.000 ignoring which interest rates have the highest interest rate, but 0:08:09.040 --> 0:08:11.200 it's about building a sense of progress with it then 0:08:11.280 --> 0:08:13.280 fuels you and motivates you to keep going. And I've 0:08:13.360 --> 0:08:16.040 approached so many people out of huge amounts of debt, 0:08:16.520 --> 0:08:19.120 but you know, review it and then tracking it so 0:08:19.160 --> 0:08:22.040 you can see it's actually working. But twenty twenty five, 0:08:22.080 --> 0:08:24.440 say goodbye to toxic debt in your life. It is 0:08:25.160 --> 0:08:27.320 financially and emotionally draining. 0:08:28.560 --> 0:08:33.120 Number five on the list is to start paying attention 0:08:33.240 --> 0:08:35.480 to your superannuation. Now I know this is one that 0:08:35.520 --> 0:08:39.920 you are very very passionate about and just start today, 0:08:40.600 --> 0:08:44.360 because the earlier you can start paying attention to your superannuation, 0:08:44.920 --> 0:08:47.680 the longer you have to build up the benefits well. 0:08:47.600 --> 0:08:51.800 Gets monitored, gets made. So find out where your superannuation is. 0:08:52.080 --> 0:08:54.760 Do a search just if you've got any old missing 0:08:54.800 --> 0:08:57.840 superannuation accounts, which is very easily done online, and then 0:08:57.880 --> 0:09:00.240 look at where it is invested. But don't just look 0:09:00.360 --> 0:09:02.360 where it's invested. Make sure it's right for you. So 0:09:02.400 --> 0:09:04.240 go once you've seen where it is. And a lot 0:09:04.240 --> 0:09:06.800 of people in this default balance fund or I actually 0:09:06.840 --> 0:09:08.480 had someone message me to say that they did a 0:09:08.520 --> 0:09:10.480 search and vand had been sitting in cash for the 0:09:10.559 --> 0:09:14.280 last fifteen years horrified than they were so upset of 0:09:14.360 --> 0:09:18.280 themselves they listened to your advice through your podcast. I 0:09:18.320 --> 0:09:20.520 went did this and now fixed it. I feel so 0:09:20.559 --> 0:09:24.360 much better. But obviously she was. This person was kicking themselves. 0:09:24.400 --> 0:09:26.280 So make sure it's right for you. So once you 0:09:26.320 --> 0:09:28.880 find out where it is, then go into a risk 0:09:28.880 --> 0:09:31.400 profile and you know if you need to make some changes, 0:09:31.480 --> 0:09:34.600 get advice because obviously there are consequences like capital gains 0:09:34.640 --> 0:09:37.880 tax and by cell costs, brokerage and so forth, So 0:09:38.200 --> 0:09:41.360 that's really important. And also whilst you're there, check that 0:09:41.400 --> 0:09:43.520 your contributions have been going in and they've been going 0:09:43.600 --> 0:09:46.600 on on time. In a previous episode, I shared about 0:09:46.600 --> 0:09:49.760 a friend of mine that discovered her employee UH had 0:09:49.880 --> 0:09:52.520 never been paying super and she missed out on about 0:09:52.520 --> 0:09:56.600 thirty five thousand dollars with SUPER contributions, which was devastating. 0:09:56.679 --> 0:09:59.839 Ouch. And that's just in the contributions. That's not adding 0:09:59.880 --> 0:10:04.400 up what that would have cost at retirement time, when 0:10:04.440 --> 0:10:06.520 all of a sudden, the power of compound interests and 0:10:06.559 --> 0:10:08.760 the power of having those investments working for you would 0:10:08.800 --> 0:10:11.559 have seen it worth a lot a lot more. Yeah, 0:10:12.080 --> 0:10:14.360 And it's worth also mentioning the fact that everything that 0:10:14.400 --> 0:10:16.640 we're talking about here we have done episodes on these 0:10:16.679 --> 0:10:18.760 ones individually in the past. So if you're a new 0:10:18.760 --> 0:10:22.120 listener to the podcast, welcome first, but also have a 0:10:22.120 --> 0:10:24.839 bit of a scroll back through the past catalog, because 0:10:24.840 --> 0:10:28.160 we have taken a deep dive in the past into say, 0:10:28.520 --> 0:10:32.199 doing your risk profile and deciding where you should have 0:10:32.360 --> 0:10:35.680 your money within your superannuation, what type of assets and 0:10:35.760 --> 0:10:38.640 kind of what the appropriate level of risk is for you. 0:10:38.760 --> 0:10:40.679 So we've got more information on all of these in 0:10:40.760 --> 0:10:44.280 previous episodes. Today's really just this is putting together the 0:10:44.400 --> 0:10:47.600 ultimate list of goals to make this year the year 0:10:47.600 --> 0:10:49.679 that you take back control of your money. One more 0:10:49.720 --> 0:10:53.520 before we take a quick break though. Number six. Start 0:10:53.600 --> 0:10:57.960 an investment portfolio. This is filled countless episodes on its own. 0:10:58.559 --> 0:11:02.360 Now's the time to invest. I don't believe superannuation on 0:11:02.440 --> 0:11:04.120 its own is going to be able to fund our 0:11:04.360 --> 0:11:08.240 retirement or the retirement that we actually want. It is 0:11:08.320 --> 0:11:11.120 important that you're investing as well. And obviously, you know 0:11:11.200 --> 0:11:13.199 some people in certain age groups may you want to 0:11:13.200 --> 0:11:16.520 have a bias towards super or bias towards investing, but 0:11:16.760 --> 0:11:18.480 you know, this is the year to start investing. If 0:11:18.480 --> 0:11:20.240 you've been thinking about it and wanting to do it's 0:11:20.240 --> 0:11:22.400 been on your list but never actually done it, or 0:11:22.440 --> 0:11:24.440 you started it and just kind of drop the ball 0:11:24.480 --> 0:11:27.120 on it, reconnect with it, get it going again. And 0:11:27.160 --> 0:11:29.480 that's why I love the thousand dollars project because you know, 0:11:29.520 --> 0:11:32.480 you can start with one thousand dollars and it's exciting. 0:11:32.520 --> 0:11:34.720 You can watch it grow and you can think outside 0:11:34.760 --> 0:11:36.280 of the square to how you're going to get more money, 0:11:36.360 --> 0:11:39.560 and you start tracking that passive income and thinking about Okay, well, 0:11:39.760 --> 0:11:41.880 I now make two thousand dollars a year of my portfolio. 0:11:41.920 --> 0:11:44.640 That's going to contribute towards my retirement goals. You know, 0:11:44.679 --> 0:11:46.880 the sooner you can start investing, the better. 0:11:47.720 --> 0:11:49.880 I love that like it is. That is one of 0:11:49.920 --> 0:11:54.199 those ones that gets people genuinely excited because it is 0:11:54.440 --> 0:11:58.800 working towards a different future, better future. Yeah, indeed, all right, 0:11:58.840 --> 0:12:01.560 So that's the first six about twelve goals for twenty 0:12:01.600 --> 0:12:03.439 twenty five. Let's take a quick break and come back 0:12:03.440 --> 0:12:12.560 and get the next six. Cana. We are setting twelve 0:12:12.600 --> 0:12:15.120 goals for twenty twenty five where you're just coming up 0:12:15.160 --> 0:12:18.319 with ideas really here, and you can pick and choose 0:12:18.400 --> 0:12:20.480 the ones that suit you and the ones that are 0:12:20.520 --> 0:12:26.199 appropriate for you. Number seven, improve your financial literacy. Make 0:12:26.280 --> 0:12:28.480 twenty twenty five the year that you do that. And hey, 0:12:28.640 --> 0:12:30.720 if you're listening to this podcast, it's probably already a 0:12:30.720 --> 0:12:31.439 good start. 0:12:31.240 --> 0:12:34.160 Right, you know. Creat a habit system. You know, have 0:12:34.360 --> 0:12:36.960 a simple goal. You listen to one podcast a week 0:12:37.240 --> 0:12:39.840 like this one or Sugar Mama's Fireplay, or you read 0:12:39.880 --> 0:12:43.080 one book per month, or you watch a video on 0:12:43.120 --> 0:12:46.480 YouTube about investing, or you spend half an hour every 0:12:46.480 --> 0:12:49.120 Monday morning going through the money Smart website, which is 0:12:49.880 --> 0:12:53.280 created by Ask. There is so much free information out 0:12:53.280 --> 0:12:57.320 there to help you, and great quality information to allow 0:12:57.400 --> 0:12:59.800 you to make far better decisions with your money. And 0:13:00.000 --> 0:13:03.199 I prove your financial wellbeing in seeing it in your 0:13:03.200 --> 0:13:05.240 bank balance, but also internally as well. 0:13:06.040 --> 0:13:08.240 That's a good one, isn't it, because it is something 0:13:08.280 --> 0:13:10.760 that you can do at your own pace too, and 0:13:10.800 --> 0:13:12.360 you can do it in a way that works for you. 0:13:12.600 --> 0:13:14.600 If you are a podcast listener, there are a great 0:13:14.640 --> 0:13:16.679 podcasts out there to listen to. If you like reading 0:13:16.679 --> 0:13:19.680 books and kind of taking a deeper dive into things, 0:13:19.720 --> 0:13:22.440 then go for that. And the money Smart website that 0:13:22.480 --> 0:13:27.360 you mentioned is a fantastic resource for explaining terms in 0:13:27.520 --> 0:13:31.360 really simple language and kind of helping to educate you. 0:13:31.440 --> 0:13:34.319 And no one needs to know what you were researching. 0:13:34.520 --> 0:13:36.520 It's a great way of kind of filling some knowledge 0:13:36.559 --> 0:13:39.200 gaps that you might not be comfortable admitting that you have. 0:13:39.640 --> 0:13:41.360 And I've done it. I've jumped on there and looked 0:13:41.400 --> 0:13:43.480 up stuff. Oh okay, all right, that wasn't so hard 0:13:43.520 --> 0:13:49.240 at all. Now that's number seven, number eight vitally important. 0:13:49.600 --> 0:13:51.960 I will admit I need to do this. I have 0:13:52.000 --> 0:13:54.600 a will, but it needs to be updated and I 0:13:54.600 --> 0:13:57.120 need to make some changes. So you know, you've got 0:13:57.120 --> 0:13:59.080 to have a will in place. You may think, well, 0:13:59.120 --> 0:14:02.040 I've got nothing, you know, no assets, but that's not 0:14:02.120 --> 0:14:04.520 the issue. Issues. You do have assets, you have superinnovation, 0:14:04.600 --> 0:14:06.840 but also you may have some debts as well. You 0:14:06.920 --> 0:14:09.559 need to be thinking about and you know, thinking about 0:14:09.600 --> 0:14:12.440 what is the best for your family, for your loved ones, 0:14:12.640 --> 0:14:15.600 and where do you want the wealth that you've established 0:14:15.640 --> 0:14:18.640 so far. You've got items, You've got your belongings that 0:14:18.679 --> 0:14:21.120 are valuable. So you have a will if you don't, 0:14:21.200 --> 0:14:22.400 or make sure it's updated. 0:14:22.920 --> 0:14:26.120 Yeah, and it's just one of those things that it's 0:14:26.120 --> 0:14:29.600 an uncomfortable thing to do. But once you've done it, okay, 0:14:29.720 --> 0:14:31.360 you're good for a bit. And you do need to 0:14:31.440 --> 0:14:33.320 kind of keep reviewing it and keep checking it every 0:14:33.360 --> 0:14:34.600 now and then to make sure that it is. 0:14:34.560 --> 0:14:36.400 Current, especially if your situation changes. 0:14:36.480 --> 0:14:40.000 Yeah. Absolutely, but just get it done in the first place. 0:14:39.720 --> 0:14:41.240 And include a charity in there as well. 0:14:41.480 --> 0:14:45.200 Yeah, great idea, Thank you. I like that. While we 0:14:45.280 --> 0:14:48.640 are reviewing things, Number nine is review your insurances. 0:14:49.240 --> 0:14:52.720 Yes, not just your general insurances, but your personal insurances 0:14:52.720 --> 0:14:56.120 as well, so you know income protection, life and TPD, 0:14:56.480 --> 0:14:59.680 trauma cover home and contents. You know, maybe if you 0:14:59.680 --> 0:15:02.720 have an the best probably might have landlord insurance. Go 0:15:02.800 --> 0:15:05.120 far and wide with this. And also I recommend when 0:15:05.160 --> 0:15:08.320 you do that search for your superannuation accounts, which I 0:15:08.320 --> 0:15:12.000 believe was number five, is to have a look at 0:15:12.000 --> 0:15:15.720 what insurances might be attached to those old superannuation accounts. 0:15:16.200 --> 0:15:18.880 I know when I was running my fincial planning practice, 0:15:18.920 --> 0:15:21.520 I'd always come across an old superinhnuoation account for a 0:15:21.560 --> 0:15:23.640 client and have like a five hundred thousand of a 0:15:23.720 --> 0:15:28.160 life policy. They had no idea existed. So do your research, 0:15:28.440 --> 0:15:31.480 you know, see what insurance policies attached to superannuation accounts. 0:15:31.720 --> 0:15:35.960 Also might add accidental cover. I had completely forgotten that 0:15:36.000 --> 0:15:38.160 when Rocker was a baby, I took out accidental cover 0:15:38.280 --> 0:15:41.560 on him and it wasn't until I got something in 0:15:41.560 --> 0:15:43.320 the mail saying that actually he had default because I 0:15:43.400 --> 0:15:45.560 changed bank accounts and not updated. It was like, oh 0:15:45.600 --> 0:15:48.880 my goodness, I completely forgot about that. So make sure 0:15:48.960 --> 0:15:51.440 you take stock of what you have in place and 0:15:51.480 --> 0:15:54.480 what you need and what you potentially don't need because 0:15:54.480 --> 0:15:55.720 you're doubling up somewhere else. 0:15:57.200 --> 0:16:00.720 Number ten, there's one that you are very past because 0:16:00.760 --> 0:16:03.080 you have talked about it a number of times, calling 0:16:03.200 --> 0:16:07.040 up your utilities provider and asking for a better deal. 0:16:07.240 --> 0:16:08.920 Oh, I do this every free WI February. 0:16:09.000 --> 0:16:11.200 I know you're and you're very satisfied when you do 0:16:11.240 --> 0:16:12.240 it well. 0:16:12.360 --> 0:16:14.800 I've shared previously, I have the numbers in my phone, 0:16:14.800 --> 0:16:18.000 and in my phone, I will have also my account number, 0:16:18.040 --> 0:16:20.160 so it's very easy to access the information to make 0:16:20.160 --> 0:16:23.440 sure my phone call is very efficient, and I can 0:16:23.480 --> 0:16:25.880 do it literally in the car obviously with two hands, 0:16:25.960 --> 0:16:29.960 using bluetooth, responsible driving at all times, but asking for 0:16:29.960 --> 0:16:32.040 a better deal. I do this with Foxtel. I do 0:16:32.080 --> 0:16:35.480 this with our energy and gas bill everything. I leave 0:16:35.520 --> 0:16:38.280 no stone unturned in It's amazing. If they think they 0:16:38.280 --> 0:16:40.640 can lose you, we'll pull a rabbit out of a hat. 0:16:41.200 --> 0:16:44.040 Isn't that great? And there is nothing more satisfying than 0:16:44.080 --> 0:16:47.920 feeling like, hey, I've just saved money that I would 0:16:47.960 --> 0:16:50.000 not have saved if I hadn't taken that step. 0:16:50.400 --> 0:16:53.040 And I know this sounds really weird and odd coming 0:16:53.040 --> 0:16:56.280 from a financial planner, but sometimes the smallert savings are 0:16:56.320 --> 0:16:58.880 actually more satisfying than the big savings. 0:16:58.960 --> 0:17:02.000 Yes, I know exactly clearly what you mean. It's also 0:17:02.080 --> 0:17:07.080 then leads us very neatly into number eleven on our list. 0:17:07.160 --> 0:17:09.440 Because we talk about kind of small savings. This is 0:17:09.440 --> 0:17:12.040 at the other end, this can lead to some big, big, 0:17:12.240 --> 0:17:14.840 big savings. We are calling up your bank. 0:17:14.920 --> 0:17:18.920 Yes, and asking for a better deal with your home loan. Now, 0:17:19.000 --> 0:17:21.000 I will say be careful with this because if you 0:17:21.040 --> 0:17:23.400 call your bank, they're obviously only going to talk about 0:17:23.400 --> 0:17:25.920 their bank products and you know, try and get you 0:17:26.000 --> 0:17:29.040 one of their products, which is obviously their work for 0:17:29.080 --> 0:17:31.760 the bank. That's their job. So if you get a 0:17:31.840 --> 0:17:33.800 no from your bank, or you're not happy with the answer, 0:17:34.119 --> 0:17:37.280 reach out to a mortgage broker, and experienced mortgage broker 0:17:37.640 --> 0:17:40.920 that can actually go and look far and wide for 0:17:40.960 --> 0:17:45.080 you with other financial institutions that maybe have an even 0:17:45.160 --> 0:17:49.160 better interest rate for you. And Adam McCabe we've had 0:17:49.200 --> 0:17:50.760 on the show here from blue Land and you get 0:17:50.840 --> 0:17:53.359 brilliant hack. It's like, what you can do is look 0:17:53.400 --> 0:17:57.199 at what your current bank is offering new customers, and 0:17:57.240 --> 0:18:00.760 if that new rate for new customers is lower than 0:18:00.760 --> 0:18:02.520 what you're playing, that is often a sign that they 0:18:02.560 --> 0:18:05.560 will go and reduce your rate to at least match that. 0:18:05.720 --> 0:18:06.120 If you're not. 0:18:06.280 --> 0:18:08.560 Better, It shows they have the capacity to do that. 0:18:08.600 --> 0:18:11.000 Don't exactly, but it is going to depend on how 0:18:11.080 --> 0:18:12.879 long you've been with the mank what the size of 0:18:12.880 --> 0:18:15.359 your loan is, what you've paid off so far, value 0:18:15.400 --> 0:18:18.600 of your property. There are a lot of obviously variables. 0:18:18.359 --> 0:18:20.639 And if you're not a confrontational person, if you're a 0:18:20.640 --> 0:18:23.159 bit of an introvert, honestly, this is a fairly easy 0:18:23.200 --> 0:18:26.280 call to make to talk to someone at your bank 0:18:26.920 --> 0:18:29.040 about this. I've done this before. Talk to them and 0:18:29.080 --> 0:18:32.320 they did reduce the rate fairly significantly. But if you're 0:18:32.359 --> 0:18:35.080 not comfortable doing that yourself, then talk to a mortgage 0:18:35.080 --> 0:18:37.000 broker and get them to do it for you. And 0:18:37.400 --> 0:18:38.520 they will do that is. 0:18:38.520 --> 0:18:40.240 No skin off their nose, and a good more wood 0:18:40.240 --> 0:18:41.600 wreck will happily do it for you. 0:18:41.720 --> 0:18:43.679 And they've already got that. They know where to go, 0:18:43.720 --> 0:18:45.760 they know which banks are the ones that are more 0:18:45.800 --> 0:18:48.440 aggressively chasing customers and things, and they are the ones 0:18:48.480 --> 0:18:52.440 that typically will actually move the greatest. 0:18:52.280 --> 0:18:55.520 Exactly, but obviously, use those savings, don't spend it, don't 0:18:55.560 --> 0:18:58.240 put that newfound savings back into your budget if you 0:18:58.280 --> 0:19:01.359 can afford to increase your mortgage payments by that you 0:19:01.480 --> 0:19:04.560 found savings. Last savings that expand massively. 0:19:05.000 --> 0:19:08.560 The last one, number twelve. What do you think about 0:19:08.600 --> 0:19:11.280 this one? It's kind of fun. Actually, they've got a 0:19:11.320 --> 0:19:14.680 fun one for number twelve. Learn your credit score? Do 0:19:14.720 --> 0:19:17.640