1 00:00:00,080 --> 00:00:02,040 Speaker 1: How to get on top of your finances when you 2 00:00:02,160 --> 00:00:06,880 Speaker 1: have been avoiding it for years. Good morning, everyone, and 3 00:00:07,000 --> 00:00:10,799 Speaker 1: welcome back to start here a very special mini series 4 00:00:10,840 --> 00:00:14,640 Speaker 1: within Sugar Mama's Fireplay that answers all of your real 5 00:00:14,680 --> 00:00:19,200 Speaker 1: life questions when it comes to money, investing and financial freedom, 6 00:00:19,320 --> 00:00:25,599 Speaker 1: especially when you're just starting out or starting over again. Now, 7 00:00:25,960 --> 00:00:29,200 Speaker 1: if you hear my dogs barking in the background, I'm 8 00:00:29,240 --> 00:00:34,120 Speaker 1: just going to quickly apologize. I have a new puppy, Pablo, 9 00:00:34,320 --> 00:00:37,120 Speaker 1: and we're also looking after our neighbor's dogs, so we 10 00:00:37,159 --> 00:00:40,400 Speaker 1: actually have four dogs downstairs. And normally I would record 11 00:00:40,479 --> 00:00:44,879 Speaker 1: my episodes from the studios and nov but for a 12 00:00:44,960 --> 00:00:48,839 Speaker 1: variety of reasons, including not trusting a eleven week year 13 00:00:48,880 --> 00:00:51,879 Speaker 1: old laborator that loves two things, I decided to just 14 00:00:52,000 --> 00:00:54,040 Speaker 1: stay home so I can keep a close eye on them. 15 00:00:54,040 --> 00:00:55,880 Speaker 1: So if you can hear them barking in the background, 16 00:00:56,360 --> 00:00:59,720 Speaker 1: please know that they are safe. They're not fighting. They're 17 00:00:59,720 --> 00:01:04,679 Speaker 1: just having a massive wrestling match downstairs, all right. Now, 18 00:01:04,920 --> 00:01:09,840 Speaker 1: today's episode is dedicated to someone incredibly brave, a lady 19 00:01:09,880 --> 00:01:13,039 Speaker 1: who reached out to me, and I know her message 20 00:01:13,080 --> 00:01:16,399 Speaker 1: is going to relate to resonate I should say with 21 00:01:16,560 --> 00:01:19,440 Speaker 1: so many of you, and I've just had to sort 22 00:01:19,480 --> 00:01:21,520 Speaker 1: of trim down this but in a nutshell, this is 23 00:01:21,520 --> 00:01:25,200 Speaker 1: what she wrote, Canna, I've been avoiding my finances for 24 00:01:25,280 --> 00:01:29,280 Speaker 1: twenty years. My husband's income is a regular I earn 25 00:01:29,560 --> 00:01:35,559 Speaker 1: a modest salary. We constantly overspend. I'm fifty two and 26 00:01:35,720 --> 00:01:40,039 Speaker 1: I am seriously worried, but I still have some hope. 27 00:01:40,959 --> 00:01:44,440 Speaker 1: Where do I start now? First of all, I want 28 00:01:44,480 --> 00:01:46,520 Speaker 1: to take a moment and say thank you so much 29 00:01:46,680 --> 00:01:51,000 Speaker 1: for writing into me. It takes a lot of courage 30 00:01:51,200 --> 00:01:55,040 Speaker 1: to be this honest, and yes, there is most definitely hope. 31 00:01:55,080 --> 00:01:58,960 Speaker 1: It is never too late to turn your financial story around. 32 00:01:59,560 --> 00:02:03,720 Speaker 1: So together, let's break down what you can do, step 33 00:02:03,760 --> 00:02:09,600 Speaker 1: by step to get started. Okay, so let's do a 34 00:02:09,600 --> 00:02:14,800 Speaker 1: bit of a mindset reset first. Before we'd dive in 35 00:02:14,840 --> 00:02:18,320 Speaker 1: and talk about numbers and budgets, I really want to 36 00:02:18,480 --> 00:02:23,120 Speaker 1: address something far more important, and that is your mindset. 37 00:02:24,000 --> 00:02:28,880 Speaker 1: You are not alone in feeling overwhelmed or ashamed. So 38 00:02:29,120 --> 00:02:33,400 Speaker 1: many people avoid money because they feel like they've already failed, Like, 39 00:02:33,480 --> 00:02:37,160 Speaker 1: what's the point? Why bother? But the truth is, avoiding 40 00:02:37,200 --> 00:02:40,440 Speaker 1: your finances doesn't mean that you're actually bad with money 41 00:02:40,520 --> 00:02:43,720 Speaker 1: at all. It just simply means you haven't been shown 42 00:02:43,760 --> 00:02:47,840 Speaker 1: a way that actually works for you yet well until now. 43 00:02:48,480 --> 00:02:51,680 Speaker 1: And guess what, wanting to change at fifty two and 44 00:02:51,720 --> 00:02:56,200 Speaker 1: being willing to take the first step is seriously powerful. 45 00:02:56,960 --> 00:03:00,440 Speaker 1: You've still got time and more importantly, you still have 46 00:03:00,480 --> 00:03:05,799 Speaker 1: the ability to create momentum, and that changes absolutely everything. 47 00:03:06,919 --> 00:03:09,639 Speaker 1: So I really want you to be kind, come from 48 00:03:09,639 --> 00:03:12,960 Speaker 1: a place of love, hold on to that hope and 49 00:03:13,320 --> 00:03:16,919 Speaker 1: allow it to grow, and focus on what you want 50 00:03:17,320 --> 00:03:20,760 Speaker 1: rather than what you don't want, because we become what 51 00:03:21,200 --> 00:03:25,720 Speaker 1: we think. Now next steps, we need to understand your 52 00:03:25,919 --> 00:03:30,520 Speaker 1: current cash flow. All right, where do you stand right now? 53 00:03:31,160 --> 00:03:35,640 Speaker 1: You mentioned a regular income from your husband and a 54 00:03:35,760 --> 00:03:40,720 Speaker 1: modest but consistent income from your own job. Now, this 55 00:03:40,880 --> 00:03:46,120 Speaker 1: is actually very common and it actually can work well 56 00:03:46,400 --> 00:03:49,920 Speaker 1: when you have the right structure and system in place. 57 00:03:50,560 --> 00:03:55,280 Speaker 1: In fact, previously Tom's income used to very influctuate and 58 00:03:55,360 --> 00:03:58,200 Speaker 1: mine used to be very stable, and then we we 59 00:03:58,240 --> 00:04:00,560 Speaker 1: had times in our livestore when it actually the other 60 00:04:00,640 --> 00:04:04,160 Speaker 1: way round. So I know the system that works because 61 00:04:04,160 --> 00:04:06,840 Speaker 1: I use it myself personally at various points in my life. 62 00:04:07,320 --> 00:04:09,920 Speaker 1: But this is where I want to introduce you to 63 00:04:10,400 --> 00:04:15,240 Speaker 1: what I call my drip feed strategy. So think of 64 00:04:15,280 --> 00:04:19,200 Speaker 1: your combined family income like a bucket that fills up 65 00:04:19,240 --> 00:04:23,480 Speaker 1: at different times during the month with different size drops, 66 00:04:23,640 --> 00:04:27,200 Speaker 1: different size flows, you know that turn off and on 67 00:04:27,600 --> 00:04:31,520 Speaker 1: or run consistently, And instead of spending that money as 68 00:04:31,520 --> 00:04:35,120 Speaker 1: it comes in, you set up your own regular drip 69 00:04:35,200 --> 00:04:41,040 Speaker 1: feed payment into your main spending account, for example five 70 00:04:41,120 --> 00:04:45,160 Speaker 1: thousand dollars per month. So what you're ultimately doing is 71 00:04:45,320 --> 00:04:50,120 Speaker 1: creating like a net salary for your household living expenses 72 00:04:50,760 --> 00:04:54,599 Speaker 1: that is a stable, consistent amount to cover the bills, 73 00:04:54,720 --> 00:04:58,480 Speaker 1: the groceries, you know, all the living costs, and the 74 00:04:58,520 --> 00:05:01,960 Speaker 1: rest just stays in a separate buffer account until you 75 00:05:02,200 --> 00:05:06,080 Speaker 1: drip feed from it again the following month. It doesn't 76 00:05:06,120 --> 00:05:08,240 Speaker 1: matter whether the fifty thousand dollars a month is coming 77 00:05:08,240 --> 00:05:10,080 Speaker 1: in there or five hundred dollars a month. You just 78 00:05:10,200 --> 00:05:12,839 Speaker 1: keep that money there and you just take your set 79 00:05:13,520 --> 00:05:17,279 Speaker 1: salary of say, for example, five thousand dollars a month. Now, 80 00:05:17,320 --> 00:05:21,520 Speaker 1: what this does is it starts bringing structure and calm 81 00:05:21,640 --> 00:05:26,440 Speaker 1: to a chaotic cash flow. It is stable, it is secure, 82 00:05:26,600 --> 00:05:29,640 Speaker 1: and you know exactly what is coming in. The trick is, 83 00:05:29,680 --> 00:05:32,719 Speaker 1: though to work out the right amount that you need 84 00:05:33,160 --> 00:05:35,800 Speaker 1: and make sure obviously that the right amount is coming 85 00:05:35,839 --> 00:05:40,200 Speaker 1: in to spund your needs. So this takes us to 86 00:05:40,240 --> 00:05:44,919 Speaker 1: the next step, that is budgeting with purpose. Now, a 87 00:05:44,960 --> 00:05:49,240 Speaker 1: budget is not a boring spreadsheet. It's not about controlling 88 00:05:49,360 --> 00:05:52,720 Speaker 1: or dictating or being the fun police. A budget is 89 00:05:52,760 --> 00:05:56,080 Speaker 1: just simply aligned with your goals, your values, and of 90 00:05:56,120 --> 00:05:59,279 Speaker 1: course your lifestyle. So I want you to think about 91 00:05:59,360 --> 00:06:03,239 Speaker 1: your essential the things that you must have and keep 92 00:06:03,880 --> 00:06:12,720 Speaker 1: to stay afloat, food, energy, gas, transport, education, the absolute 93 00:06:13,160 --> 00:06:18,480 Speaker 1: bear essentials. Write all of those things down and how 94 00:06:18,560 --> 00:06:22,440 Speaker 1: much they cost or how much you spend. Then I 95 00:06:22,480 --> 00:06:25,600 Speaker 1: want to look at your lifestyle. What are the things 96 00:06:25,680 --> 00:06:28,600 Speaker 1: that you like to spend money on that give you 97 00:06:28,760 --> 00:06:33,080 Speaker 1: joy that you don't want to cut out entirely, but 98 00:06:33,400 --> 00:06:36,839 Speaker 1: you can potentially maybe cut down or maybe switch to 99 00:06:36,880 --> 00:06:40,839 Speaker 1: something maybe a little bit more financially friendly. I want 100 00:06:40,880 --> 00:06:44,159 Speaker 1: you to still have that takeaway coffee or subscribe to 101 00:06:44,200 --> 00:06:46,080 Speaker 1: Netflix if that's important to you, but I want you 102 00:06:46,160 --> 00:06:50,600 Speaker 1: to have more attention to what really brings joy and 103 00:06:50,760 --> 00:06:54,440 Speaker 1: value into your life, and look at getting rid of 104 00:06:54,440 --> 00:06:57,840 Speaker 1: this fluffy, flaky stuff that you thought was great but 105 00:06:57,880 --> 00:07:00,920 Speaker 1: you don't really truly value. If you would turn it 106 00:07:00,920 --> 00:07:03,440 Speaker 1: off tomorrow, you wouldn't really miss it. That's the stuff 107 00:07:03,440 --> 00:07:06,080 Speaker 1: we need to get rid of to help create a 108 00:07:06,120 --> 00:07:10,720 Speaker 1: healthier cash flow surplus in your life. Then, when you're 109 00:07:10,760 --> 00:07:12,680 Speaker 1: doing your budget, I want you to think about your 110 00:07:12,680 --> 00:07:15,680 Speaker 1: financial goals. So this includes goals perhaps around debt reduction, 111 00:07:16,560 --> 00:07:21,320 Speaker 1: saving for retirement, building up, perhaps some emergency savings if 112 00:07:21,320 --> 00:07:24,760 Speaker 1: you don't have any. And once you've worked out all 113 00:07:24,800 --> 00:07:28,320 Speaker 1: of these expenses, all of these joys, and all of 114 00:07:28,360 --> 00:07:31,560 Speaker 1: these goals, you can start to work out what you 115 00:07:31,680 --> 00:07:35,440 Speaker 1: need as your monthly drip feed to help fund all 116 00:07:35,520 --> 00:07:39,040 Speaker 1: three categories. Now you'll be amazed once you start putting 117 00:07:39,080 --> 00:07:43,040 Speaker 1: pen to paper as to how much money you need 118 00:07:43,080 --> 00:07:47,000 Speaker 1: to spend and need to survive each month. But the 119 00:07:47,080 --> 00:07:49,560 Speaker 1: good thing is, as you see this number add up, 120 00:07:49,600 --> 00:07:51,560 Speaker 1: you're going to have clarity, you're going to have a 121 00:07:51,680 --> 00:07:54,920 Speaker 1: greater grip on your finances, and you're going to feel 122 00:07:55,160 --> 00:07:58,920 Speaker 1: really good. Now, if you're not familiar, I actually run 123 00:07:59,000 --> 00:08:02,120 Speaker 1: a Sugar Mama Budget and cash Flow Academy, And this 124 00:08:02,200 --> 00:08:04,680 Speaker 1: actually includes a one on one appointment with you and 125 00:08:04,720 --> 00:08:07,520 Speaker 1: of course anyone else that's interested as well, and I 126 00:08:07,560 --> 00:08:10,240 Speaker 1: will sit down and go through your budget with you 127 00:08:10,440 --> 00:08:13,760 Speaker 1: and help design that cash flow system for you. It 128 00:08:13,840 --> 00:08:17,360 Speaker 1: comes with about eight different videos and corresponding podcasts, but 129 00:08:17,600 --> 00:08:20,600 Speaker 1: I give you the actual practical steps in way more 130 00:08:20,680 --> 00:08:23,320 Speaker 1: detail that we can possibly cover in a single episode. 131 00:08:23,480 --> 00:08:25,800 Speaker 1: But this might be something that is well worth looking 132 00:08:25,840 --> 00:08:28,360 Speaker 1: into because at the end of the day, when you 133 00:08:28,440 --> 00:08:31,440 Speaker 1: have a great budget, you can start budgeting in your 134 00:08:31,480 --> 00:08:35,240 Speaker 1: financial goals. All right. The next is to continue on 135 00:08:35,320 --> 00:08:38,880 Speaker 1: with our conversation around goals. Now, so many people do 136 00:08:38,960 --> 00:08:43,000 Speaker 1: goals wrong. They have these fluffy goals that are lovely, 137 00:08:43,080 --> 00:08:47,480 Speaker 1: but they're not tangible and they don't necessarily inspire. People 138 00:08:47,559 --> 00:08:50,360 Speaker 1: tend to go with the herd mentality goals. You need 139 00:08:50,400 --> 00:08:54,360 Speaker 1: something that is going to really light up within you, 140 00:08:54,440 --> 00:08:57,000 Speaker 1: something you can sink your teeth in, and the goals 141 00:08:57,000 --> 00:09:00,080 Speaker 1: that make you want to take that effort and make 142 00:09:00,200 --> 00:09:04,240 Speaker 1: it feels like it's really worthwhile. So a very quick 143 00:09:04,320 --> 00:09:06,760 Speaker 1: and easy way to get started with goals, particularly if 144 00:09:06,800 --> 00:09:09,840 Speaker 1: you're not familiar with financial goals, is to focus on 145 00:09:10,000 --> 00:09:14,960 Speaker 1: really simple short term goals. For example, your goal might 146 00:09:15,000 --> 00:09:17,320 Speaker 1: be to save two thousand dollars in a buffer account 147 00:09:17,360 --> 00:09:19,720 Speaker 1: so that you're never relying on saying credit card debt 148 00:09:19,760 --> 00:09:23,160 Speaker 1: or buy now, pay later, or perhaps you want to 149 00:09:23,160 --> 00:09:26,200 Speaker 1: think about maybe some medium goals after that. So what 150 00:09:26,240 --> 00:09:30,600 Speaker 1: would you like to achieve beyond having that savings in 151 00:09:30,640 --> 00:09:34,760 Speaker 1: your buffer account. Perhaps you want to think about having 152 00:09:35,280 --> 00:09:37,920 Speaker 1: say a certain figure paid off a personal loan or 153 00:09:37,920 --> 00:09:39,920 Speaker 1: a car loan or a home loan within the next 154 00:09:39,960 --> 00:09:43,679 Speaker 1: eighteen months. Start writing the things that come to you, 155 00:09:44,480 --> 00:09:46,839 Speaker 1: Just dot them down, don't worry too much, just get 156 00:09:46,840 --> 00:09:49,679 Speaker 1: them out of your brain floating around in cyberspace, but 157 00:09:49,800 --> 00:09:53,000 Speaker 1: put them to paper. And then when you've done the 158 00:09:53,000 --> 00:09:56,240 Speaker 1: medium goals, move on to those long term goals. You know, 159 00:09:56,280 --> 00:10:00,560 Speaker 1: the big picture goals. You know, what's your retirement look like? 160 00:10:00,840 --> 00:10:02,920 Speaker 1: You know, do you want to maybe look at getting 161 00:10:02,920 --> 00:10:05,160 Speaker 1: back in control with your superannuation and boosting it and 162 00:10:05,200 --> 00:10:10,240 Speaker 1: having a plan for a retirement. Make sure everything is 163 00:10:10,240 --> 00:10:13,720 Speaker 1: written down, and even feel free to start visualizing them 164 00:10:14,160 --> 00:10:17,880 Speaker 1: and let them become a compass for when you're feeling overwhelmed, 165 00:10:17,960 --> 00:10:20,040 Speaker 1: you're feeling anxious, and you have those moments where you 166 00:10:20,120 --> 00:10:23,600 Speaker 1: just like freeze with anxiety. That is what's going to 167 00:10:23,600 --> 00:10:27,960 Speaker 1: give you the inspiration to just keep going. Next, I 168 00:10:28,000 --> 00:10:32,520 Speaker 1: want to continue on talking about superannuation and your retirement strategy. 169 00:10:33,280 --> 00:10:36,320 Speaker 1: Now you mentioned you are fifty two. That is not 170 00:10:36,440 --> 00:10:41,160 Speaker 1: too late, but it is time right now to start 171 00:10:41,200 --> 00:10:46,480 Speaker 1: taking superannuation. Seriously, You've got to go and look at 172 00:10:46,520 --> 00:10:51,000 Speaker 1: your superannuation statements as well as your husband's. You're in 173 00:10:51,080 --> 00:10:55,520 Speaker 1: this together and you're both equally responsible now, So what 174 00:10:55,640 --> 00:10:58,440 Speaker 1: I would be checking is, of course, how much have 175 00:10:58,520 --> 00:11:03,719 Speaker 1: you got in superannuay? How much do you have potentially 176 00:11:03,800 --> 00:11:07,240 Speaker 1: floating around in other superannuation accounts. You can do a 177 00:11:07,520 --> 00:11:11,600 Speaker 1: very quick superannuation check online. It's free, It takes a 178 00:11:11,600 --> 00:11:14,440 Speaker 1: couple of minutes, and you might be pleasantly surprised to 179 00:11:14,480 --> 00:11:17,520 Speaker 1: discover that you have accounts that you never even knew existed. 180 00:11:18,160 --> 00:11:20,080 Speaker 1: You also want to be thinking about where is my 181 00:11:20,160 --> 00:11:24,560 Speaker 1: superannuation money invested? Is it invested for my long term goals? 182 00:11:25,000 --> 00:11:29,040 Speaker 1: What fees am I paying? Are there any insurances attached 183 00:11:29,400 --> 00:11:32,720 Speaker 1: to those superannuation policies? And do I really need them? 184 00:11:32,960 --> 00:11:34,880 Speaker 1: How much are they costing? Do I need to get 185 00:11:34,880 --> 00:11:38,800 Speaker 1: advice about them? And of course I start thinking about 186 00:11:39,160 --> 00:11:43,800 Speaker 1: whether you need to consider making extra contributions into superannuation. 187 00:11:44,440 --> 00:11:47,120 Speaker 1: Of course we need to be aware that any money 188 00:11:47,120 --> 00:11:51,040 Speaker 1: that we put into superannuation we cannot get out until 189 00:11:51,040 --> 00:11:54,880 Speaker 1: we meet a condition of release. But most financial plans 190 00:11:54,920 --> 00:11:59,440 Speaker 1: would say that for someone who has retirement aspirations at 191 00:11:59,480 --> 00:12:03,080 Speaker 1: age fifty too. Of course, with other strategies in place, 192 00:12:03,760 --> 00:12:08,160 Speaker 1: looking at a salary sacrificing or making after tax contributions 193 00:12:08,240 --> 00:12:11,080 Speaker 1: even if it's ten dollars per week, could be a 194 00:12:11,280 --> 00:12:13,640 Speaker 1: sensible move. But of course you've got to go and 195 00:12:13,679 --> 00:12:17,119 Speaker 1: get some advice around this so that you are making informed, 196 00:12:17,320 --> 00:12:21,760 Speaker 1: educated decisions that are always in alignment to your goals. 197 00:12:22,320 --> 00:12:25,160 Speaker 1: You also might want to go and see a financial 198 00:12:25,200 --> 00:12:28,800 Speaker 1: planner and talk to them about ideas of potentially downsizing. 199 00:12:29,160 --> 00:12:31,480 Speaker 1: Of course, I'm not aware if you're a homeowner, whether 200 00:12:31,520 --> 00:12:33,520 Speaker 1: you have a mortgage or not, or whether you're renting. 201 00:12:33,559 --> 00:12:36,680 Speaker 1: But if you can go and speak to a financial planner, 202 00:12:36,679 --> 00:12:38,880 Speaker 1: they're going to be able to uncover a whole range 203 00:12:38,920 --> 00:12:42,400 Speaker 1: of other strategies that you would have never heard of before, 204 00:12:42,920 --> 00:12:47,839 Speaker 1: such as catch up concessional contributions, downsizer contributions. There are 205 00:12:47,920 --> 00:12:49,640 Speaker 1: so many different things that you can do out there, 206 00:12:49,640 --> 00:12:51,080 Speaker 1: and they might even be able to talk to you 207 00:12:51,280 --> 00:12:53,840 Speaker 1: as to what you might be entitled to, such as 208 00:12:54,040 --> 00:12:58,440 Speaker 1: age pensions when you reach age sixty seven. But the 209 00:12:58,760 --> 00:13:01,280 Speaker 1: point here that I want to make is you've got 210 00:13:01,320 --> 00:13:05,000 Speaker 1: to make your super work smarter for you, not just 211 00:13:05,120 --> 00:13:09,280 Speaker 1: sit there doing absolutely nothing. Now is the time to 212 00:13:09,400 --> 00:13:12,440 Speaker 1: take control and see if you can make up for 213 00:13:12,600 --> 00:13:16,720 Speaker 1: lost time. Time is essentral right now. The next thing 214 00:13:16,800 --> 00:13:19,680 Speaker 1: I want to talk to you about is debt. Now, 215 00:13:19,920 --> 00:13:22,360 Speaker 1: you mentioned in your DM to me that you're just 216 00:13:22,600 --> 00:13:25,840 Speaker 1: barely hanging in there now. I don't know the details 217 00:13:25,880 --> 00:13:29,400 Speaker 1: of your financial situation, but it sounds like there might 218 00:13:29,440 --> 00:13:33,800 Speaker 1: be some debt weighing you down. Now, if this is 219 00:13:33,840 --> 00:13:35,920 Speaker 1: the case, I want you to write a list of 220 00:13:36,040 --> 00:13:40,600 Speaker 1: every single piece of debt that you have, how much 221 00:13:40,640 --> 00:13:43,640 Speaker 1: you owe, and who to. I want you to write 222 00:13:43,760 --> 00:13:48,520 Speaker 1: a list, and this includes buy now, pay later, credit cards, 223 00:13:48,640 --> 00:13:54,400 Speaker 1: personal loans, car loans, mortgages, etc. Or everything. Once you 224 00:13:54,440 --> 00:13:56,280 Speaker 1: have done that, I want you to write them in 225 00:13:56,440 --> 00:14:00,800 Speaker 1: the order of the smallest to the largest. Now, this 226 00:14:00,880 --> 00:14:05,280 Speaker 1: isn't necessarily the most financially or mathematically best way to 227 00:14:05,320 --> 00:14:09,640 Speaker 1: get out of debt. However, from personal experience, this taps 228 00:14:09,640 --> 00:14:13,800 Speaker 1: into the psychological benefits and journey of being debt free, 229 00:14:14,440 --> 00:14:17,560 Speaker 1: because juggling lots of different types of debt is like 230 00:14:17,640 --> 00:14:21,000 Speaker 1: juggling balls. If we can get one ball out of 231 00:14:21,040 --> 00:14:24,160 Speaker 1: the air, regardless of the size of the ball, it's 232 00:14:24,200 --> 00:14:26,400 Speaker 1: going to be that little bit easier to juggle the 233 00:14:26,440 --> 00:14:29,240 Speaker 1: remaining balls. Now, the fastest way to get one of 234 00:14:29,240 --> 00:14:31,600 Speaker 1: those balls out of the air is to pay off 235 00:14:31,640 --> 00:14:34,920 Speaker 1: the smallest debt first. So this is what I call 236 00:14:35,000 --> 00:14:37,640 Speaker 1: my hit list strategy. And you just focus on putting 237 00:14:37,640 --> 00:14:41,880 Speaker 1: minimum repayment plans in place for every single debt and 238 00:14:41,920 --> 00:14:45,280 Speaker 1: that should be factored into your budget. And then you 239 00:14:45,280 --> 00:14:49,240 Speaker 1: would look to make additional lump sum both regular and 240 00:14:49,480 --> 00:14:53,240 Speaker 1: add hoc repayments to the smallest debt you have, and 241 00:14:53,280 --> 00:14:56,360 Speaker 1: you keep working on that debt, the smallest debt, until 242 00:14:56,400 --> 00:14:59,800 Speaker 1: it's completely paid off, and then you apply exactly the 243 00:14:59,800 --> 00:15:03,480 Speaker 1: same strategy to the second smallest debt. You work all 244 00:15:03,520 --> 00:15:07,560 Speaker 1: the way down until you are eventually debt free. Now 245 00:15:07,760 --> 00:15:11,240 Speaker 1: there is something really stimulating about that. As you feel 246 00:15:11,560 --> 00:15:14,360 Speaker 1: you know, you start crossing the people that you owe 247 00:15:14,360 --> 00:15:16,560 Speaker 1: money to off your list and workdown and you realize 248 00:15:16,560 --> 00:15:18,320 Speaker 1: the list is getting smaller and the total amount of 249 00:15:18,360 --> 00:15:22,560 Speaker 1: debt that you owe is also getting smaller. But particularly 250 00:15:22,600 --> 00:15:27,040 Speaker 1: considering your age, and I'm assuming your desire to retire 251 00:15:27,640 --> 00:15:31,840 Speaker 1: and retire perhaps in say your mid sixties, you want 252 00:15:31,880 --> 00:15:34,120 Speaker 1: to be able to actually manage your cash wher. You 253 00:15:34,120 --> 00:15:36,920 Speaker 1: don't want to be going into retirement with debt, so 254 00:15:37,040 --> 00:15:40,600 Speaker 1: prioritizing debt could be a really smart strategy for you. 255 00:15:40,680 --> 00:15:43,520 Speaker 1: And to be honest, when I have spoken to people 256 00:15:43,520 --> 00:15:46,480 Speaker 1: about their financial wellbeing, it is often debt that has 257 00:15:46,520 --> 00:15:52,080 Speaker 1: the heaviest emotional burden. So every step forward, every dollar 258 00:15:52,200 --> 00:15:55,280 Speaker 1: that you can pay off, brings a massive sense of 259 00:15:55,360 --> 00:15:59,000 Speaker 1: relief and empowerment into your life. And that is where 260 00:15:59,040 --> 00:16:01,400 Speaker 1: you can build up upon on that momentum and start 261 00:16:01,440 --> 00:16:05,960 Speaker 1: achieving more, more efficiently and with so much more pleasure. 262 00:16:06,680 --> 00:16:09,800 Speaker 1: All right now, to wrap up this situation, I want 263 00:16:09,840 --> 00:16:12,760 Speaker 1: to remind you that you are most definitely not hopeless, 264 00:16:13,120 --> 00:16:15,640 Speaker 1: and you are most certainly not broken. You're simply a 265 00:16:15,760 --> 00:16:18,520 Speaker 1: need of a plan that is going to work for 266 00:16:18,640 --> 00:16:23,760 Speaker 1: you and your life right now, but also for your 267 00:16:23,880 --> 00:16:28,000 Speaker 1: goals and aspirations. I understand that you have a regular income, 268 00:16:28,080 --> 00:16:30,720 Speaker 1: you understand that you have a modest salary, and I 269 00:16:30,800 --> 00:16:35,280 Speaker 1: completely feel like compassionate about the fact you have emotional 270 00:16:35,400 --> 00:16:38,360 Speaker 1: overwhelmed right now. But it doesn't need to stay like this. 271 00:16:38,720 --> 00:16:41,680 Speaker 1: You can make small, simple changes that will have a 272 00:16:41,800 --> 00:16:46,080 Speaker 1: quick impact in your life. So to quickly recap with you, 273 00:16:46,560 --> 00:16:49,240 Speaker 1: the first thing I wanted to do is look at 274 00:16:49,240 --> 00:16:52,920 Speaker 1: your mindset. Focus on the benefits that are going to 275 00:16:52,960 --> 00:16:56,440 Speaker 1: come to you from working on your finances. The sense 276 00:16:56,440 --> 00:16:59,520 Speaker 1: of clarity, the sense of relief, the sense of peace 277 00:16:59,520 --> 00:17:02,920 Speaker 1: of mind, a sense of almost financial harmony if you like, 278 00:17:03,000 --> 00:17:05,800 Speaker 1: write all down those benefits and feel good about yourself. 279 00:17:06,520 --> 00:17:08,080 Speaker 1: The next thing I want you to do is look 280 00:17:08,080 --> 00:17:11,400 Speaker 1: at my drip feed strategy, and that is to help 281 00:17:11,480 --> 00:17:15,439 Speaker 1: address that issue where you have irregular income, because what 282 00:17:15,520 --> 00:17:19,760 Speaker 1: you are doing is essentially switching that irregular income into 283 00:17:19,800 --> 00:17:23,840 Speaker 1: a family salary kind of like an allowance, and that 284 00:17:23,880 --> 00:17:26,119 Speaker 1: bucket can just keep filling up as long as it 285 00:17:26,119 --> 00:17:30,080 Speaker 1: gives you that consistent flat amount each month. The second 286 00:17:30,080 --> 00:17:32,080 Speaker 1: thing I want you to do is do a budget. 287 00:17:32,880 --> 00:17:34,960 Speaker 1: If you subscribe to the sugar Mama website, in fact, 288 00:17:34,960 --> 00:17:36,680 Speaker 1: you can actually go and download it directly from the 289 00:17:36,680 --> 00:17:38,879 Speaker 1: sugar Mama website, you can access one of my free budgets, 290 00:17:38,960 --> 00:17:40,560 Speaker 1: or if you like, you can enroll in the Sugar 291 00:17:40,600 --> 00:17:43,000 Speaker 1: Mama Budget and Cash Lower Academy, which I will link 292 00:17:43,040 --> 00:17:46,400 Speaker 1: in the podcast notes for you and absolutely everyone else. 293 00:17:46,440 --> 00:17:48,560 Speaker 1: And by the way, if anyone has any questions, just 294 00:17:48,560 --> 00:17:51,120 Speaker 1: shoot me through a dam on Instagram and I can 295 00:17:51,160 --> 00:17:53,240 Speaker 1: come back to you as quickly as possible. The next 296 00:17:53,240 --> 00:17:55,480 Speaker 1: thing I want you do is set some really clear 297 00:17:55,960 --> 00:18:00,360 Speaker 1: and meaningful goals. Think about the short term goals, really 298 00:18:00,400 --> 00:18:04,520 Speaker 1: simple ones, building up emergency money, having a buffer, some 299 00:18:04,920 --> 00:18:08,600 Speaker 1: money in your savings account. Really simple ones will actually 300 00:18:09,000 --> 00:18:11,560 Speaker 1: give you a great dopamine hit because you'll achieve them 301 00:18:11,640 --> 00:18:14,840 Speaker 1: quickly and easily, and inspire you to start thinking on those. 302 00:18:14,840 --> 00:18:17,280 Speaker 1: About those medium term and even long term goals. But 303 00:18:17,359 --> 00:18:21,200 Speaker 1: write everything down. What do you want if I could 304 00:18:21,200 --> 00:18:23,240 Speaker 1: waive a magic wand in your life, what would I 305 00:18:23,320 --> 00:18:25,720 Speaker 1: do for you? Then? Of course I want you to 306 00:18:25,720 --> 00:18:28,280 Speaker 1: look at your superannuation. Stop burying your head in the sand, 307 00:18:28,600 --> 00:18:30,680 Speaker 1: Look at where your super is, how much you've got, 308 00:18:30,720 --> 00:18:34,280 Speaker 1: where it's invested, what fees you're paying, and look at 309 00:18:34,400 --> 00:18:36,600 Speaker 1: how much you actually need to be able to retire. 310 00:18:37,119 --> 00:18:39,840 Speaker 1: I have some brilliant calculators on the Sugar Mama website 311 00:18:39,880 --> 00:18:41,960 Speaker 1: that can help you project how much you'll have in 312 00:18:42,000 --> 00:18:44,560 Speaker 1: super and how much you actually will need to draw 313 00:18:44,640 --> 00:18:47,200 Speaker 1: down an income stream. These are going to be really 314 00:18:47,240 --> 00:18:49,359 Speaker 1: powerful because they're going to give you some boundaries and 315 00:18:49,400 --> 00:18:53,199 Speaker 1: goals to actually work on. And then, of course I 316 00:18:53,280 --> 00:18:55,280 Speaker 1: want you to go and get some advice, Go and 317 00:18:55,280 --> 00:18:58,080 Speaker 1: see a financial planner to get some strategies in place 318 00:18:58,080 --> 00:19:00,840 Speaker 1: that they're going to help maximize your super and help 319 00:19:00,840 --> 00:19:03,960 Speaker 1: you plan for a retirement. That may even include an 320 00:19:04,000 --> 00:19:06,399 Speaker 1: investment strategy. I don't know, but this is why you 321 00:19:06,440 --> 00:19:08,800 Speaker 1: need to see a financial planner. I would not delay 322 00:19:08,840 --> 00:19:12,120 Speaker 1: it at all. And if you are in debt, particularly 323 00:19:12,160 --> 00:19:15,960 Speaker 1: personal toxic debt, look at the hit list strategy that 324 00:19:16,040 --> 00:19:19,440 Speaker 1: I've suggested. It will help you get you on track. 325 00:19:19,520 --> 00:19:22,480 Speaker 1: In the meantime, whilst you go and meet with various 326 00:19:22,520 --> 00:19:25,400 Speaker 1: financial planners to give you some great advice to get 327 00:19:25,440 --> 00:19:31,119 Speaker 1: you started. Remember this is not about being perfect, giving 328 00:19:31,160 --> 00:19:34,960 Speaker 1: this unrealistic expectation of yourself. It's about just getting on 329 00:19:35,040 --> 00:19:39,120 Speaker 1: with it, getting started, making small little changes every single day, 330 00:19:39,160 --> 00:19:42,960 Speaker 1: but paying attention to how you feel about what you're 331 00:19:43,000 --> 00:19:48,160 Speaker 1: doing now. Differently, it's about educating yourself. It's about feeling empowered. 332 00:19:48,560 --> 00:19:51,240 Speaker 1: It's about building upon that hope that you said is 333 00:19:51,280 --> 00:19:54,000 Speaker 1: within yourself so that you can find the inspiration to 334 00:19:54,119 --> 00:19:56,919 Speaker 1: keep going. And don't get me wrong. There are going 335 00:19:56,960 --> 00:19:58,840 Speaker 1: to be days where you feel flat, you feel down. 336 00:19:58,920 --> 00:20:02,600 Speaker 1: It will feel like one step forward and three quarters back. 337 00:20:02,760 --> 00:20:07,440 Speaker 1: But please keep going. As I said, you are not broken. 338 00:20:07,720 --> 00:20:10,560 Speaker 1: This is not a hopeless situation. There is actually so 339 00:20:10,720 --> 00:20:14,439 Speaker 1: much you can do for yourself. But now is the 340 00:20:14,520 --> 00:20:18,640 Speaker 1: time to get started. All right. Thank you so much 341 00:20:18,840 --> 00:20:22,480 Speaker 1: for this opportunity to share my general advice. If you 342 00:20:22,560 --> 00:20:27,200 Speaker 1: found this episode helpful, you feel seen, you feel supported, 343 00:20:27,240 --> 00:20:29,520 Speaker 1: you feel empowered, can you please go and share it 344 00:20:29,560 --> 00:20:31,880 Speaker 1: with someone else who might need to hear it too. 345 00:20:32,680 --> 00:20:35,000 Speaker 1: And if you ever want to help in getting started 346 00:20:35,000 --> 00:20:39,680 Speaker 1: with budgeting or with investing, go and check out my website. 347 00:20:39,720 --> 00:20:42,240 Speaker 1: And if you have a question yourself for me about 348 00:20:42,280 --> 00:20:44,199 Speaker 1: where to get started, you could always send me a 349 00:20:44,280 --> 00:20:48,480 Speaker 1: DM on Instagram. All right, everyone, thank you so much 350 00:20:48,560 --> 00:20:51,440 Speaker 1: for today's episode. It's been an honor. It's been a pleasure, 351 00:20:51,920 --> 00:20:54,560 Speaker 1: and I look forward to connecting with you on Monday 352 00:20:54,640 --> 00:20:58,000 Speaker 1: and again on Friday for Sugar Mama's fire Play Chow. 353 00:20:58,160 --> 00:21:10,520 Speaker 1: For now, I'm about to go, keep that pumpy fine.