WEBVTT - Help! I'm an overspender!

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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. Are Michael Thompson.

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<v Speaker 1>I'm a writer and the co host of the podcast

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<v Speaker 1>Fear and Greed. Business News has always ie with Canna Campbell,

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<v Speaker 1>financial planner, founder of Sugar Mama TV, the financial literacy

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<v Speaker 1>platform covering YouTube and podcast, books, Instagram, threads, TikTok, keynote,

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<v Speaker 1>speeches and more. Hello Canna, good morning.

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<v Speaker 2>I'm quite excited because I love talking about money, but

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<v Speaker 2>today we're talking about spending money and the emotions behind it.

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<v Speaker 2>So I feel like today's episode is going through resonate

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<v Speaker 2>with a lot of people, but also make people feel safe.

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<v Speaker 1>You make it sound very woo woo right from the start.

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<v Speaker 1>It's all about emotions. It's all about feelings.

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<v Speaker 2>Well, money is emotional, so why not.

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<v Speaker 1>Okay, Well, today's topic. Actually, you are right, because today's

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<v Speaker 1>topic is all about spending, and more specifically, it is

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<v Speaker 1>about overspending people who can't quite stop themselves from spending.

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<v Speaker 1>We're going to look at kind of why happens, what

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<v Speaker 1>it looks like, and most importantly, how to gain some

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<v Speaker 1>control again over your money and a lot of this

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<v Speaker 1>is emotional, isn't it like it is? It has a

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<v Speaker 1>root cause that is often quite an emotional one.

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<v Speaker 2>And everyone has something.

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<v Speaker 1>I think are there varying degrees of overspending because I

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<v Speaker 1>imagine there's people who kind of can't resist, like buying

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<v Speaker 1>a milky way as they're doing the grocery shopping, and

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<v Speaker 1>then there's probably those who have got multiple credit cards

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<v Speaker 1>all maxed out and no way of paying them off,

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<v Speaker 1>and they are kind of two opposite ends of the spectrum.

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<v Speaker 2>Yes, of course there are, and I think it's really

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<v Speaker 2>important we go back to the basics and actually define

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<v Speaker 2>this properly upfront, so we don't even get people parent

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<v Speaker 2>or misdiagnosing themselves. So if someone isn't an overspender, it

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<v Speaker 2>means they're spending more than what they actually have or

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<v Speaker 2>what they earn. And I have to say this overspending

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<v Speaker 2>does not discriminate. So this can be for all sexes,

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<v Speaker 2>all different financial situations, all different levels of education as well.

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<v Speaker 2>So you know, thinking that it's only women and it's

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<v Speaker 2>only young women is completely incorrect and essentially it is

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<v Speaker 2>a squandalous lifestyle.

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<v Speaker 1>What's the worst you've ever said I'm assuming that you

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<v Speaker 1>would have seen this throughout your career. You would have

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<v Speaker 1>kind of maybe seen this, might not have been a client,

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<v Speaker 1>might have just been someone that you have known something.

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<v Speaker 1>Have you seen this?

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<v Speaker 2>Here's the funny thing. I'm a financial planner, So as

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<v Speaker 2>soon as someone hears that, everything's hidden, because I think

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<v Speaker 2>people assume I'm going to judge them, which is not

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<v Speaker 2>the case at all.

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<v Speaker 1>No, you say your judgment here for the studio.

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<v Speaker 2>For me exactly exactly. So I feel like people try

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<v Speaker 2>to hide things from me if they are an overspender.

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<v Speaker 2>So I haven't personally seen too much directly. However, of

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<v Speaker 2>course people will come to me and share stories or

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<v Speaker 2>concerns about their loved ones spending in a certain way.

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<v Speaker 2>So in the first person, no, I have not seen,

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<v Speaker 2>but have I heard? In the second person, third person,

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<v Speaker 2>I guess it is yes, I have. So at the

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<v Speaker 2>end of the day, I don't judge and everyone, as

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<v Speaker 2>I say, everyone has that thing, whether it be sugar,

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<v Speaker 2>whether it be screens, whether it be alcohol. You know everyone,

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<v Speaker 2>it's it's just another challenge that we you know, people

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<v Speaker 2>have and that they grab onto. But I think it's

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<v Speaker 2>important that we understand the signs of overspending, you know,

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<v Speaker 2>to help someone realize okay, well actually I might be

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<v Speaker 2>an overspender and may need to get help. And the

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<v Speaker 2>you know, the classic things I would say is, you know,

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<v Speaker 2>as you mentioned, the credit card debts, so credit card

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<v Speaker 2>debt or multiple credit card debts, or different loans to

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<v Speaker 2>different institutions, and you know, not having a budget at all,

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<v Speaker 2>having no savings at all, definitely not having any emergency money.

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<v Speaker 2>And you know, I think obviously the consequence of that

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<v Speaker 2>is in obviously having a low credits score and you know,

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<v Speaker 2>not really having any goals to work on. You know,

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<v Speaker 2>ideally financial goals seem to be lacking. But the number

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<v Speaker 2>one physical sign is I would say, being surrounded by stuff. Yeah,

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<v Speaker 2>stuff that that person has purchased or you've purchased. You know,

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<v Speaker 2>you can see the clutter, the shopping bags, the you know,

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<v Speaker 2>items hanging up with tags still, you know, the boxes

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<v Speaker 2>of you know, all the electronic gadgets and things stashed

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<v Speaker 2>at the back of the closet. That's the signs that

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<v Speaker 2>you know that I'm talking about that. Okay, all right,

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<v Speaker 2>there is potentially something to explore and do some work on.

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<v Speaker 1>Are are there particular triggers for this. Is there an

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<v Speaker 1>element of look. Our podcast is called how do they

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<v Speaker 1>Afford That? Which is kind of like a It's quite voyeuristic,

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<v Speaker 1>isn't it. It is about kind of looking at what

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<v Speaker 1>other people have and wondering how they do it. Is

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<v Speaker 1>there an element of trying to keep up with other people?

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<v Speaker 1>Perhaps that's that's in Overspendings are whole range of different things.

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<v Speaker 2>There is a whole range. But obviously at the end

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<v Speaker 2>of the day, like when we purchase something, we do

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<v Speaker 2>get a dopamin hit, and there's peer pressure, there is

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<v Speaker 2>the lifestyle creep, there is you know, obviously the end

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<v Speaker 2>of the impulsive buying. I was talking to someone who

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<v Speaker 2>works one of those online shopping networks and she said

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<v Speaker 2>that there are customers that just continuously buy NonStop every

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<v Speaker 2>single day. And then there's obviously social media, and you know,

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<v Speaker 2>I also think debt is a tree or a catalyst

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<v Speaker 2>for overspending, because when someone is in debt and say

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<v Speaker 2>they're in debt by say fifteen thousand dollars, think and

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<v Speaker 2>they see say a new pair of sneakers, Well, I'm

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<v Speaker 2>already in debt. What's another two hundred and fifty dollars

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<v Speaker 2>more worth of debt. And that's why I sort of

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<v Speaker 2>say it becomes quite toxic and it can spiral even

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<v Speaker 2>further out of control. So yeah, i'd say this a

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<v Speaker 2>variety of different sort of situations where you'll see these

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<v Speaker 2>sort of triggers you could call it.

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<v Speaker 1>And I imagine there would be the psychological and we're

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<v Speaker 1>not qualified to talk about these kinds of things, but

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<v Speaker 1>there would be things like stress, yeah, and that there

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<v Speaker 1>would also be something that would probably encourage it.

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<v Speaker 2>One of the situations where someone told me of their

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<v Speaker 2>lord one overspending and it was actually boredom.

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<v Speaker 1>Really, yeah, just nothing to do, so just to spend money,

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<v Speaker 1>it must be it must be an awful feeling then

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<v Speaker 1>to kind of just know that that you are not

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<v Speaker 1>getting anywhere financially because you just cannot resist this urge

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<v Speaker 1>to spend. Yeah, and to see those credit card bills

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<v Speaker 1>coming in and to see the loan statements coming through

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<v Speaker 1>and not be making any headway. And I suppose there

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<v Speaker 1>would be an element of putting your head in.

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<v Speaker 2>The sand, definitely, and then that triggers anxiety and stress

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<v Speaker 2>and sleepless nights. And this was why I said it

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<v Speaker 2>can just spiral. But you know, this is another form

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<v Speaker 2>of addiction and it needs to be taken very very seriously,

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<v Speaker 2>just like alcohol or drug abuse or gambling.

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<v Speaker 1>And so the long term consequences you mentioned before at

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<v Speaker 1>credit score. Did you mention that or did I just

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<v Speaker 1>imagine that?

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<v Speaker 2>No, I said lower credit Scoore, Wow, you were listening.

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<v Speaker 1>I was listening, but clearly kind of not processing because

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<v Speaker 1>I wasn't one hundred percent sure if you had said it.

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<v Speaker 1>Not so long term consequences. If you have got kind

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<v Speaker 1>of multiple credit cards, and if you've got multiple kind

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<v Speaker 1>of personal loans that you are using to fund your spending,

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<v Speaker 1>that is going to have an impact on your credit score.

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<v Speaker 2>Absolutely, that may impact you further down the track. One

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<v Speaker 2>day when you want to go and buy a property

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<v Speaker 2>in the bank say well, sorry, you know you don't qualify.

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<v Speaker 2>You have to wait a couple of years until you

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<v Speaker 2>fix your credit score, or you have to buy borrow

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<v Speaker 2>a much higher interest rate.

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<v Speaker 1>And the banks when you are applying for a loan,

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<v Speaker 1>a home loan as well, look quite closely at your spending.

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<v Speaker 2>Very closely, and as we know from having Adam on

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<v Speaker 2>the show, they want to see a budget, they want

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<v Speaker 2>to see your transactions, where do you spend your money,

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<v Speaker 2>And it's.

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<v Speaker 1>Going to be very hard to hide this. Yeah, this

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<v Speaker 1>kind of this level of overspending from and this isn't

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<v Speaker 1>even then talking about your credit score. This is just

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<v Speaker 1>about those questions that the bank is going to ask

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<v Speaker 1>you whether or not they're deciding to give you.

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<v Speaker 2>A loan exactly. And also there's the financial consequence, but

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<v Speaker 2>also then there's your mental health and your physical health.

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<v Speaker 2>And you know it's not just borrowing money. If you

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<v Speaker 2>have been an overspender, it quite often aligns with someone

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<v Speaker 2>who ends up with no money in investments or barely any,

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<v Speaker 2>not much money put aside into superannuation, not much in

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<v Speaker 2>emergency money, and just living this life filled with worry

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<v Speaker 2>about the future.

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<v Speaker 1>Well, I think we've succeeded in making everything sound thoroughly depressing.

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<v Speaker 1>It feels as though we've gone through all of the

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<v Speaker 1>downsides here.

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<v Speaker 2>God, you're so negative. No, this is an opportunity to grow,

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<v Speaker 2>to heal, to rise above.

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<v Speaker 1>This is my point. I'm saying, we've got all the

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<v Speaker 1>bad stuff out early. We are going to take a

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<v Speaker 1>little break, just a very quick break, and then we

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<v Speaker 1>are going to come back and we are going to say,

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<v Speaker 1>what do you do about it?

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<v Speaker 2>All right, great, I like these productive conversations.

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<v Speaker 1>You went off way too early then in assuming that

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<v Speaker 1>I was being a negative nelly.

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<v Speaker 2>All right, I'll wear that.

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<v Speaker 1>Okay, excellent quick break. And then we fixed the problem. Cana.

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<v Speaker 1>We are talking today all about overspending, and we've talked

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<v Speaker 1>about what it looks like, the warning signs, the triggers,

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<v Speaker 1>the long term consequences of a chronic overspending problem. Let's

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<v Speaker 1>now look at how to deal with it, because there's

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<v Speaker 1>no point going through the problem if we don't try

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<v Speaker 1>and come up with some kind of a solution. I

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<v Speaker 1>have read, and I don't know whether this is necessarily

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<v Speaker 1>the case, I've read that tracking your expenses and your

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<v Speaker 1>spending is a good step because it kind of just

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<v Speaker 1>increases your own visibility and your own understanding of what

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<v Speaker 1>you're spending and where you're spending it.

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<v Speaker 2>You're forced look at the cold hard truth. So I

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<v Speaker 2>would recommend and I'm actually someone who doesn't recommend tracking

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<v Speaker 2>your spending when it comes to budgeting, because I think

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<v Speaker 2>it's it does take up a lot of time. But

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<v Speaker 2>in the one situation where you have someone that's drowning

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<v Speaker 2>and dead and overspending. Yes, and this isn't just once

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<v Speaker 2>a week, this is every day. You should be going

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<v Speaker 2>through your transactions looking at where you are spending money

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<v Speaker 2>and how much is And it is quite a sobering

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<v Speaker 2>activity because you realize how quickly those little expenses the

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<v Speaker 2>coffee here, the T shirt that you bought here, and

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<v Speaker 2>you dress there, really does add up by the end

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<v Speaker 2>of the week or the end of the month, or

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<v Speaker 2>the pay cycle. And that's that moment where the penny

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<v Speaker 2>drops that you need to go, okay, all right, this

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<v Speaker 2>is actually a waste of money. I need to do

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<v Speaker 2>something about it. So I definitely recommend in that situation

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<v Speaker 2>tracking your spending and also switching off the cards. No

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<v Speaker 2>credit cards, use a debit card, or even better, switch

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<v Speaker 2>to cash if that is convenient for you, because seeing

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<v Speaker 2>that exchange of you know, one hundred dollars note or

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<v Speaker 2>a figal note will make you so much more aware

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<v Speaker 2>as to the exchange of values but also what you value.

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<v Speaker 2>And it actually hurts to hand money over.

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<v Speaker 1>That kind of tracking of spending. That could be the

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<v Speaker 1>first time that somebody actually realizes, isn't it just how

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<v Speaker 1>much they are overspending and it could actually be really

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<v Speaker 1>quite a confronting moment, couldn't it.

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<v Speaker 2>It is it is, and but better to discover that

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<v Speaker 2>earlier rather than later. And whether there's more debt or

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<v Speaker 2>more valuable time lost and opportunities lost.

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<v Speaker 1>Okay, so we are tracking expenses and spending, we are

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<v Speaker 1>moving away from credit cards, looking it Shush down, and

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<v Speaker 1>I'll come back to credit cards in a second. We

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<v Speaker 1>are switching either to a debit card or to or cash.

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<v Speaker 1>What about then setting financial goals? Does this help to

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<v Speaker 1>change the mindset?

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<v Speaker 2>Definitely? And you know, whilst you get a dopamine hit

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<v Speaker 2>from buying something, you also get a dopamine hit and

0:12:14.320 --> 0:12:17.000
<v Speaker 2>I think a bigger dopamine hit from achieving a goal.

0:12:17.800 --> 0:12:20.320
<v Speaker 2>So in these situations, if we're going to we're dealing

0:12:20.320 --> 0:12:22.720
<v Speaker 2>with someone who's an overspender, they're looking they're getting lots

0:12:22.720 --> 0:12:25.360
<v Speaker 2>of dopamine hits all the time with every single expense.

0:12:25.800 --> 0:12:30.120
<v Speaker 2>So we need to almost recreate that environment for them

0:12:30.880 --> 0:12:35.480
<v Speaker 2>and have lots of short, small, little financial goals to

0:12:35.559 --> 0:12:38.080
<v Speaker 2>work towards, even if it's only saving up one hundred dollars,

0:12:38.600 --> 0:12:41.320
<v Speaker 2>even if it's only you know, paying fifty dollars off

0:12:41.360 --> 0:12:43.720
<v Speaker 2>your debt, lots of those little things that you can

0:12:43.760 --> 0:12:47.120
<v Speaker 2>actually feel good about yourself and you're still getting that

0:12:47.160 --> 0:12:49.960
<v Speaker 2>sort of high, if you want to call it. And

0:12:50.000 --> 0:12:53.800
<v Speaker 2>it also helps rebuild your sense of faith and confidence

0:12:53.840 --> 0:12:56.120
<v Speaker 2>again and makes you feel like, Okay, all right, things

0:12:56.160 --> 0:12:58.080
<v Speaker 2>are different and I'm kind of getting back on track.

0:12:58.120 --> 0:13:04.080
<v Speaker 2>And that's a really attractive feeling to have if you

0:13:04.120 --> 0:13:06.640
<v Speaker 2>are trying to rebuild or turn your life around.

0:13:06.800 --> 0:13:09.000
<v Speaker 1>Yeah, and it keeps you something really positive to focus on,

0:13:09.200 --> 0:13:11.760
<v Speaker 1>doesn't it Like it's just it is we talked about

0:13:11.760 --> 0:13:14.920
<v Speaker 1>all the negativity around this, and this is something really

0:13:14.960 --> 0:13:18.080
<v Speaker 1>really positive longer term kind of dopamine kind of hit

0:13:18.920 --> 0:13:21.400
<v Speaker 1>credit cards just to close off credit cards.

0:13:21.240 --> 0:13:23.840
<v Speaker 2>Entirely by now pay later.

0:13:24.080 --> 0:13:26.360
<v Speaker 1>Oh yeah, yeah, that's a good point including that in

0:13:26.400 --> 0:13:29.800
<v Speaker 1>this How should somebody with a spending problem approach credit

0:13:29.840 --> 0:13:32.400
<v Speaker 1>cards and approach by now pay later? Is this? Is

0:13:32.400 --> 0:13:36.160
<v Speaker 1>it just a it is a no go, no go entirely.

0:13:36.280 --> 0:13:37.520
<v Speaker 1>Just cut it out, cut it out.

0:13:37.640 --> 0:13:39.840
<v Speaker 2>This is the problem. You know, You've got to go

0:13:39.880 --> 0:13:43.560
<v Speaker 2>to the removed temptation. Okay, And but I mean I

0:13:43.600 --> 0:13:45.400
<v Speaker 2>have no issues with buy now, pay later, and I

0:13:45.440 --> 0:13:47.520
<v Speaker 2>have no issues with credit card when used in the

0:13:47.600 --> 0:13:50.360
<v Speaker 2>right way, you know, for the right reasons. But you've

0:13:50.760 --> 0:13:55.240
<v Speaker 2>this is causing or it's enabling that person to continuously overspent,

0:13:55.360 --> 0:13:59.920
<v Speaker 2>has got to be removed. So removing those temptations at

0:14:00.000 --> 0:14:02.080
<v Speaker 2>absolutely it is essential.

0:14:01.960 --> 0:14:05.280
<v Speaker 1>Okay, all right? And that would be hard, wouldn't it,

0:14:05.360 --> 0:14:09.120
<v Speaker 1>especially when every shop has kind of get you buy now,

0:14:09.160 --> 0:14:12.680
<v Speaker 1>pay later here and use this, and it seems does

0:14:12.720 --> 0:14:15.240
<v Speaker 1>seem very easy to get a credit card as well.

0:14:15.280 --> 0:14:20.200
<v Speaker 1>There is an element of a very strong self discipline required.

0:14:20.680 --> 0:14:23.720
<v Speaker 2>But come back to the goals. Remember we're replacing, you know,

0:14:24.800 --> 0:14:28.960
<v Speaker 2>that hit with something that's bigger, better and better and healthier.

0:14:29.160 --> 0:14:33.120
<v Speaker 1>Yeah, I like that. What about financial accountability? And I

0:14:33.160 --> 0:14:37.120
<v Speaker 1>was reading about, like saying in alcoholics anonymous and those

0:14:37.200 --> 0:14:40.920
<v Speaker 1>kinds of organizations where you actually have somebody that you

0:14:41.440 --> 0:14:46.600
<v Speaker 1>are accountable to, a spouse or a friend or someone.

0:14:46.960 --> 0:14:49.480
<v Speaker 1>Does that have value in this situation where they can

0:14:49.600 --> 0:14:52.720
<v Speaker 1>essentially be the person that is helping to hold you

0:14:52.840 --> 0:14:55.440
<v Speaker 1>to account as you are trying to give up what

0:14:55.600 --> 0:14:56.640
<v Speaker 1>is essentially an addiction.

0:14:57.200 --> 0:15:00.560
<v Speaker 2>Absolutely, And this is where I think having seeing a

0:15:00.560 --> 0:15:04.400
<v Speaker 2>financial counselor it could be really valuable because you want

0:15:04.440 --> 0:15:07.080
<v Speaker 2>someone that actually is going to go the distance with you. Yes,

0:15:07.120 --> 0:15:08.880
<v Speaker 2>a friend may, you know, keep you in check for

0:15:08.920 --> 0:15:12.120
<v Speaker 2>three months, but what if you've got three years worth

0:15:12.120 --> 0:15:15.320
<v Speaker 2>of debt repayments to make and you know, and there's

0:15:15.360 --> 0:15:17.760
<v Speaker 2>a lot of you want to reduce or remove the

0:15:17.880 --> 0:15:22.640
<v Speaker 2>risk of a relapse in overspending. So I would probably suggest,

0:15:22.840 --> 0:15:25.160
<v Speaker 2>if you're serious about this and it's a big problem,

0:15:25.640 --> 0:15:27.560
<v Speaker 2>go to a financial counselor that can work with you

0:15:27.600 --> 0:15:30.960
<v Speaker 2>on a long term basis and be there once a week,

0:15:31.000 --> 0:15:33.080
<v Speaker 2>once a month to help you keep going, whereas a

0:15:33.080 --> 0:15:37.040
<v Speaker 2>friend may not necessarily be as reliable and also may

0:15:37.080 --> 0:15:39.480
<v Speaker 2>not necessarily have the right skill set as well, because

0:15:39.520 --> 0:15:41.400
<v Speaker 2>you know you're putting a lot of faith in that person.

0:15:41.440 --> 0:15:44.200
<v Speaker 2>But you know, the sooner you get onto this the better.

0:15:44.240 --> 0:15:48.440
<v Speaker 2>And with any of the programs like the twelve step program,

0:15:48.520 --> 0:15:51.720
<v Speaker 2>is the first thing is admitting to yourself this is

0:15:51.760 --> 0:15:54.760
<v Speaker 2>not healthy. I don't feel good about myself, I'm not proud.

0:15:55.480 --> 0:15:58.640
<v Speaker 2>Something needs to be done. You know that awareness is

0:15:58.840 --> 0:16:02.880
<v Speaker 2>is this art of your journey, and then obviously doing

0:16:02.920 --> 0:16:06.640
<v Speaker 2>that work on yourself. There are going to be uncomfortable moments.

0:16:07.560 --> 0:16:10.480
<v Speaker 2>There are going to be feelings that you don't want

0:16:10.520 --> 0:16:13.000
<v Speaker 2>to deal with But you have to if you want

0:16:13.040 --> 0:16:17.400
<v Speaker 2>to make a long lasting change. And really that mindfulness

0:16:17.400 --> 0:16:19.600
<v Speaker 2>and that you know, going to the root or the problem.

0:16:19.680 --> 0:16:22.680
<v Speaker 2>It's that deep work, it's that dark work, but it's

0:16:22.720 --> 0:16:26.280
<v Speaker 2>where the best type of rebirth can come from. And yes,

0:16:26.320 --> 0:16:29.200
<v Speaker 2>I know I'm going off like kumbaya with you, but

0:16:30.240 --> 0:16:33.320
<v Speaker 2>I do think you can heal from this, and you

0:16:33.360 --> 0:16:35.520
<v Speaker 2>can learn how to spend money in a safe way

0:16:35.720 --> 0:16:37.720
<v Speaker 2>and in a way that's skilled free. But you have

0:16:37.800 --> 0:16:40.560
<v Speaker 2>to do the work, and you've got to pave a

0:16:40.800 --> 0:16:44.600
<v Speaker 2>better way, a healthier way, a happier way for yourself.

0:16:44.880 --> 0:16:48.360
<v Speaker 2>And if it means having support, take it and have

0:16:48.480 --> 0:16:51.520
<v Speaker 2>proactive measures in place. And you never know, one day

0:16:51.640 --> 0:16:54.200
<v Speaker 2>you actually might be able to help someone else who's

0:16:54.240 --> 0:16:55.680
<v Speaker 2>gone down the path you've gone down.

0:16:55.880 --> 0:16:58.960
<v Speaker 1>Is there a chance of going too far of kind

0:16:59.000 --> 0:17:00.880
<v Speaker 1>of going back to far the other way and all

0:17:00.880 --> 0:17:03.480
<v Speaker 1>of a sudden that you have another You've replaced one

0:17:03.640 --> 0:17:07.400
<v Speaker 1>unhealthy relationship with money with another unhealthy relationship with money

0:17:07.400 --> 0:17:10.320
<v Speaker 1>where you're no longer kind of willing to spend anything

0:17:10.600 --> 0:17:13.200
<v Speaker 1>on anything at all. Is that I suppose where the

0:17:13.760 --> 0:17:17.280
<v Speaker 1>having good financial goals then comes in, and it's about

0:17:17.320 --> 0:17:19.080
<v Speaker 1>changing your overall relationship with money.

0:17:19.240 --> 0:17:21.719
<v Speaker 2>Yeah, that actually happens quite a bit. People you know,

0:17:21.960 --> 0:17:26.000
<v Speaker 2>become almost frugal and they just they cannot physically bring

0:17:26.080 --> 0:17:28.959
<v Speaker 2>themselves to spending money. And again that's where you've got

0:17:29.000 --> 0:17:30.760
<v Speaker 2>to do. Get some professional help so you can learn

0:17:30.800 --> 0:17:33.320
<v Speaker 2>to forgive yourself. This is not about this is not

0:17:33.480 --> 0:17:36.639
<v Speaker 2>about punishenting yourself. And yes, of course you want to

0:17:36.640 --> 0:17:39.000
<v Speaker 2>try and undo the financial damage, but you're also trying

0:17:39.040 --> 0:17:42.400
<v Speaker 2>to learn and grow and you know, show some sort

0:17:42.440 --> 0:17:44.840
<v Speaker 2>of kindness and compassion and self love to yourself, because

0:17:44.880 --> 0:17:47.200
<v Speaker 2>often sometimes that's really what when you get to the

0:17:47.280 --> 0:17:49.360
<v Speaker 2>root of the problem, there is an element of self love.

0:17:49.359 --> 0:17:53.040
<v Speaker 2>You're looking to give yourself self love to spending. So, yes,

0:17:53.080 --> 0:17:55.240
<v Speaker 2>it does happen. But with the right type of help,

0:17:55.480 --> 0:17:56.840
<v Speaker 2>you won't get to that point where you go to

0:17:56.840 --> 0:17:59.399
<v Speaker 2>the other end of the spectrum, or you don't switch

0:17:59.440 --> 0:18:02.280
<v Speaker 2>your overspending to another form of addiction.

0:18:02.960 --> 0:18:06.760
<v Speaker 1>All right, I feel like we've covered this in some details.

0:18:06.800 --> 0:18:09.800
<v Speaker 1>So the signs, the warning signs that things to look

0:18:09.840 --> 0:18:12.920
<v Speaker 1>out for, those loans stacking up in the credit cards

0:18:13.480 --> 0:18:16.280
<v Speaker 1>that are maxed out and no real means to kind

0:18:16.280 --> 0:18:18.719
<v Speaker 1>of pay them off because you just keep on adding

0:18:18.760 --> 0:18:22.480
<v Speaker 1>to them and being surrounded by stuff, stuff that you

0:18:22.600 --> 0:18:27.920
<v Speaker 1>have bought because you just couldn't resist, essentially, and that

0:18:27.960 --> 0:18:29.959
<v Speaker 1>there is a range of these triggers, whether it's kind

0:18:30.000 --> 0:18:34.120
<v Speaker 1>of peer pressure or lifestyle creep, social media, or debt

0:18:34.280 --> 0:18:38.240
<v Speaker 1>debt just kind of spiraling and snowballing and debt attracting

0:18:38.320 --> 0:18:41.200
<v Speaker 1>more debt as you go, or stress, a whole bunch

0:18:41.240 --> 0:18:44.080
<v Speaker 1>of things contributing to it, and that that is then

0:18:44.160 --> 0:18:47.040
<v Speaker 1>one of those long term impacts as well, that that

0:18:47.240 --> 0:18:51.040
<v Speaker 1>stress that is triggering over spending then causes more long

0:18:51.119 --> 0:18:53.600
<v Speaker 1>term stress and it just keeps ongoing and builds up

0:18:53.760 --> 0:18:57.200
<v Speaker 1>more anxiety and also has an impact on you financially.

0:18:57.280 --> 0:19:02.120
<v Speaker 1>But as we discussed that, there are some straightforward steps

0:19:02.840 --> 0:19:04.639
<v Speaker 1>to kind of fixing it that we are talking about

0:19:04.680 --> 0:19:07.840
<v Speaker 1>things like tracking your expenses, tracking your spending just so

0:19:07.960 --> 0:19:09.720
<v Speaker 1>that you've got that awareness, that you have got that

0:19:09.840 --> 0:19:13.960
<v Speaker 1>visibility and that understanding of what you're actually doing, setting

0:19:14.000 --> 0:19:18.399
<v Speaker 1>some financial goals, so replacing that really short term sugar

0:19:18.480 --> 0:19:22.000
<v Speaker 1>hit that you get from spending with something long term

0:19:22.000 --> 0:19:24.680
<v Speaker 1>that is going to make you feel good about yourself

0:19:24.720 --> 0:19:27.399
<v Speaker 1>and about your money. It is about switching off the

0:19:27.440 --> 0:19:29.880
<v Speaker 1>credit cards, getting rid of that, getting rid of buy now,

0:19:29.920 --> 0:19:32.800
<v Speaker 1>pay later, changing perhaps to either a debit card or

0:19:32.840 --> 0:19:35.600
<v Speaker 1>to cash, so there is actually some meaning and some

0:19:35.640 --> 0:19:38.960
<v Speaker 1>feeling behind the payment when you make it, removing the

0:19:39.040 --> 0:19:42.680
<v Speaker 1>temptation if you are someone who does have a tendency

0:19:42.720 --> 0:19:47.280
<v Speaker 1>to overspend on credit cards and then get help if

0:19:47.320 --> 0:19:49.240
<v Speaker 1>you need it as well, and whether that could be

0:19:49.320 --> 0:19:52.080
<v Speaker 1>someone a friend or a spouse, someone who is able

0:19:52.119 --> 0:19:55.080
<v Speaker 1>to help you along the way, but also acknowledging that

0:19:55.560 --> 0:19:58.240
<v Speaker 1>in the end that is not their job. They are

0:19:58.280 --> 0:20:01.160
<v Speaker 1>not someone who does this professional and does this every day,

0:20:01.320 --> 0:20:04.679
<v Speaker 1>whereas a financial counselor is somebody who is able to

0:20:04.720 --> 0:20:07.080
<v Speaker 1>do this and maybe the right person to help you

0:20:07.240 --> 0:20:10.879
<v Speaker 1>every week from now until who knows, who knows how

0:20:10.920 --> 0:20:13.720
<v Speaker 1>long it takes to kind of get past a challenge

0:20:13.720 --> 0:20:15.840
<v Speaker 1>like this, because in the end, it is an addiction.

0:20:17.119 --> 0:20:17.440
<v Speaker 1>I think.

0:20:18.040 --> 0:20:22.320
<v Speaker 2>Is that in a nutshell, I'm really crowd of today's episode.

0:20:22.400 --> 0:20:25.320
<v Speaker 1>Yeah, I feel like it's actually overspending is something that

0:20:25.320 --> 0:20:28.280
<v Speaker 1>almost feels like it gets glorified a little bit. It's

0:20:28.280 --> 0:20:30.480
<v Speaker 1>just like, oh, it's just to shop aholic kind of thing,

0:20:30.800 --> 0:20:33.800
<v Speaker 1>which sounds all good and kind of have the glamorous

0:20:33.840 --> 0:20:35.760
<v Speaker 1>images of kind of walking in the door with all

0:20:35.760 --> 0:20:38.360
<v Speaker 1>of the shopping bags and everything. But in the end,

0:20:38.520 --> 0:20:41.080
<v Speaker 1>it is a financial problem. It is a problem that

0:20:41.119 --> 0:20:45.280
<v Speaker 1>can cause you significant issues with your own health and stress.

0:20:45.320 --> 0:20:48.480
<v Speaker 1>And there are some easy steps to take, or manageable

0:20:48.520 --> 0:20:50.320
<v Speaker 1>steps to take to get yourself out of that.

0:20:50.280 --> 0:20:52.760
<v Speaker 2>Problem and to start the journey today.

0:20:52.920 --> 0:20:55.840
<v Speaker 1>Yeah, absolutely all right. If people want more information from you, Kenna,

0:20:55.840 --> 0:20:56.720
<v Speaker 1>where do they find.

0:20:56.480 --> 0:20:59.359
<v Speaker 2>You at Sugar Mama TV on Instagram.

0:20:58.760 --> 0:21:00.960
<v Speaker 1>And you can hear me every day with Sean Aylmer

0:21:01.040 --> 0:21:03.639
<v Speaker 1>on Fear and Greed, Australia's best business podcast. Thank you

0:21:03.800 --> 0:21:05.800
<v Speaker 1>very much for listening to how do They Afford that?

0:21:05.840 --> 0:21:08.920
<v Speaker 1>Remembered hit follow on the podcast and the very best

0:21:08.920 --> 0:21:11.119
<v Speaker 1>thing you can do is to tell somebody else or

0:21:11.119 --> 0:21:13.159
<v Speaker 1>send them this episode and spread the word about how

0:21:13.160 --> 0:21:15.480
<v Speaker 1>do they afford that? Thank you for your company. Join

0:21:15.560 --> 0:21:16.359
<v Speaker 1>us again next week.