1 00:00:00,680 --> 00:00:04,160 Speaker 1: Good morning, everyone, and welcome back to Sugar Mama's Fireplay, 2 00:00:04,400 --> 00:00:08,200 Speaker 1: the podcast that ignites your financial journey with inspiring stories 3 00:00:08,320 --> 00:00:14,640 Speaker 1: and innovative wealth accumulation strategies. I am your host financial planner, 4 00:00:15,040 --> 00:00:18,760 Speaker 1: Canna Campbell, and today we have episode one of our 5 00:00:18,800 --> 00:00:23,279 Speaker 1: new series. Start here. This is where I will be 6 00:00:23,400 --> 00:00:26,760 Speaker 1: answering your questions when it comes to what you should 7 00:00:26,800 --> 00:00:31,000 Speaker 1: be thinking about, learning about, and quite possibly doing to 8 00:00:31,200 --> 00:00:35,000 Speaker 1: get your finances moving in the right direction where you 9 00:00:35,000 --> 00:00:38,800 Speaker 1: can potentially make up for lost time and stay ahead 10 00:00:38,800 --> 00:00:57,200 Speaker 1: of the So let us begin now. Before we begin 11 00:00:57,280 --> 00:01:00,560 Speaker 1: today's episode, I must do my upfront compliance duties, and 12 00:01:00,600 --> 00:01:03,600 Speaker 1: that is to remind everyone that this episode, as with 13 00:01:03,760 --> 00:01:08,240 Speaker 1: all of my episodes, are general advice only. Nothing is 14 00:01:08,319 --> 00:01:12,080 Speaker 1: personal advice, product advice, strategic advice, or investment advice. And 15 00:01:12,120 --> 00:01:15,160 Speaker 1: that is simply because I do not know anything about 16 00:01:15,319 --> 00:01:19,839 Speaker 1: your goals, your dreams, your situation, your liabilities, your deadlines, 17 00:01:20,120 --> 00:01:23,000 Speaker 1: or your risk profile may be and the finer details. 18 00:01:23,080 --> 00:01:27,479 Speaker 1: All of my advice is educationally based only. Not at 19 00:01:27,520 --> 00:01:30,919 Speaker 1: any stage is this personal advice, investment advice, product advice, 20 00:01:31,080 --> 00:01:35,560 Speaker 1: or even strategic advice. It is simply to help educate 21 00:01:35,640 --> 00:01:40,600 Speaker 1: you offer as a guide for your further research, analysis, 22 00:01:40,640 --> 00:01:45,400 Speaker 1: and investigation. Please always refer to my financial planning and 23 00:01:45,680 --> 00:01:49,960 Speaker 1: general advice warning in the podcast notes. All right, with 24 00:01:50,080 --> 00:01:53,040 Speaker 1: that done, let us begin. So the other day I 25 00:01:53,080 --> 00:01:56,640 Speaker 1: received a DM on Instagram and it said, Hi, Canna, 26 00:01:56,720 --> 00:02:00,680 Speaker 1: I'm absolutely loving your work. I'm sure you get dms, 27 00:02:00,720 --> 00:02:02,560 Speaker 1: but I was wondering if you had an episode or 28 00:02:02,600 --> 00:02:06,440 Speaker 1: could create one about people in a similar situation to me. 29 00:02:07,080 --> 00:02:11,040 Speaker 1: I'm thirty five, don't own my own home, and I 30 00:02:11,080 --> 00:02:14,040 Speaker 1: haven't been great with money. I earn eighty thousand dollars 31 00:02:14,080 --> 00:02:17,639 Speaker 1: a year. I have sixty thousand dollars in savings and 32 00:02:17,840 --> 00:02:21,440 Speaker 1: two thousand dollars in my emergency fund. My expenses are 33 00:02:21,480 --> 00:02:24,560 Speaker 1: low as I live at home, but continue beating myself 34 00:02:24,639 --> 00:02:26,919 Speaker 1: up as I should be in a better position financially. 35 00:02:27,520 --> 00:02:30,200 Speaker 1: I'd love to start investing for my future security, but 36 00:02:30,280 --> 00:02:33,920 Speaker 1: I feel it is too late at my age. So 37 00:02:34,040 --> 00:02:36,640 Speaker 1: this is the birth of the new series. As I said, 38 00:02:36,840 --> 00:02:38,960 Speaker 1: start here. This is where I'm going to open up 39 00:02:39,000 --> 00:02:40,799 Speaker 1: the forum for you to be able to reach out 40 00:02:40,919 --> 00:02:45,360 Speaker 1: directly to me on Instagram and ask me what I think. 41 00:02:45,600 --> 00:02:49,880 Speaker 1: What I suggest you start learning about, investigating, understanding, and 42 00:02:49,919 --> 00:02:53,000 Speaker 1: potentially applying in your life after getting personal advice from 43 00:02:53,040 --> 00:02:56,359 Speaker 1: a financial plan. These episodes start here to help get 44 00:02:56,360 --> 00:02:59,560 Speaker 1: the wheels in motion again, help you find your faith 45 00:02:59,600 --> 00:03:03,200 Speaker 1: and calmvidence in yourself and create that direction, that purpose, 46 00:03:03,320 --> 00:03:06,040 Speaker 1: that clarity, so you can go from strength to strength 47 00:03:06,200 --> 00:03:09,080 Speaker 1: and quite possibly help you make up for lost time 48 00:03:09,200 --> 00:03:12,320 Speaker 1: where you can potentially end up being ahead of the game. 49 00:03:12,520 --> 00:03:14,760 Speaker 1: So once you've listened to this episode, don't be afraid 50 00:03:14,800 --> 00:03:18,200 Speaker 1: to send me a DM asking me where should I start? 51 00:03:18,320 --> 00:03:20,040 Speaker 1: All right, so the first thing I think about when 52 00:03:20,040 --> 00:03:23,639 Speaker 1: I read this DM is that it is never too late. 53 00:03:24,720 --> 00:03:30,120 Speaker 1: When you put the right sensible, wise intelligent strategies in place, 54 00:03:30,880 --> 00:03:34,120 Speaker 1: you can make up for lost time. And in fact, 55 00:03:34,240 --> 00:03:37,920 Speaker 1: sometimes if you are really persistent and determined, you can 56 00:03:38,040 --> 00:03:42,440 Speaker 1: actually get ahead of the game. You see, I don't 57 00:03:42,440 --> 00:03:45,480 Speaker 1: really believe in any mistakes. And it's that old Buddhist saying, 58 00:03:46,120 --> 00:03:50,080 Speaker 1: when the student is ready, the teacher appears. So what 59 00:03:50,200 --> 00:03:54,240 Speaker 1: my advice to you to start is to actually behind yourself, 60 00:03:54,280 --> 00:03:59,000 Speaker 1: be compassionate, beating yourself up that you've been bad with money, 61 00:03:59,120 --> 00:04:03,720 Speaker 1: wasted time. Wasted money serves no one, especially you. So 62 00:04:03,840 --> 00:04:06,120 Speaker 1: it is time now to draw a line in the 63 00:04:06,200 --> 00:04:09,080 Speaker 1: sand and say to yourself, I'm now going to do 64 00:04:09,160 --> 00:04:12,520 Speaker 1: things differently. I'm going to do things better, and I'm 65 00:04:12,560 --> 00:04:16,520 Speaker 1: going to honor my future financial wellbeing as well as 66 00:04:16,520 --> 00:04:20,039 Speaker 1: my mental and emotional financial wellbeing. And for the record, 67 00:04:20,600 --> 00:04:23,039 Speaker 1: no one is dumb or bad with money. You get 68 00:04:23,080 --> 00:04:27,240 Speaker 1: started as soon as you possibly can. The second thing 69 00:04:27,279 --> 00:04:31,279 Speaker 1: that stands out to me is the importance and I 70 00:04:31,320 --> 00:04:35,320 Speaker 1: think need right now for some simple kindness and compassion 71 00:04:35,720 --> 00:04:39,920 Speaker 1: towards yourself. We are all doing the best we can 72 00:04:39,960 --> 00:04:43,479 Speaker 1: do with the resources we've got. And to me, I 73 00:04:43,560 --> 00:04:45,479 Speaker 1: may be making a bit of an assumption here, but 74 00:04:46,000 --> 00:04:48,400 Speaker 1: I have a feeling that no one has actually ever 75 00:04:48,520 --> 00:04:53,280 Speaker 1: sat down and given you any form of financial education whatsoever. 76 00:04:54,120 --> 00:04:55,960 Speaker 1: I would put money on it, and I'm not a 77 00:04:55,960 --> 00:04:58,839 Speaker 1: gambling person, so this says a lot. But I would 78 00:04:59,279 --> 00:05:02,599 Speaker 1: pretty much suspect that no one's talked to you about money. 79 00:05:02,640 --> 00:05:05,279 Speaker 1: No one's talked to you about how to do a budget, 80 00:05:05,480 --> 00:05:08,240 Speaker 1: or how to use a credit card wisely, or how 81 00:05:08,240 --> 00:05:11,280 Speaker 1: to start investing, or why your superannuation is so important. 82 00:05:12,080 --> 00:05:15,120 Speaker 1: And then I would also suspect that no one's ever 83 00:05:15,200 --> 00:05:18,839 Speaker 1: taught you how to set some simple financial goals for yourself. 84 00:05:19,800 --> 00:05:21,600 Speaker 1: So what I would love for you to do right 85 00:05:21,600 --> 00:05:23,520 Speaker 1: now is to draw a line in the sand and 86 00:05:23,680 --> 00:05:26,799 Speaker 1: know that it is great that you're aware of this now, 87 00:05:26,920 --> 00:05:30,000 Speaker 1: because you're now going to do something about it directly. 88 00:05:30,720 --> 00:05:33,159 Speaker 1: You're going to step up. You're going to take this 89 00:05:33,240 --> 00:05:37,760 Speaker 1: problem with two hands by the horns and put some smart, intelligent, 90 00:05:38,000 --> 00:05:45,600 Speaker 1: wise actions in place as quickly as you possibly can. Now, 91 00:05:46,080 --> 00:05:48,920 Speaker 1: where do I think you should start? Again to remind 92 00:05:48,960 --> 00:05:51,480 Speaker 1: you that this is general advice, because to this person 93 00:05:51,560 --> 00:05:54,479 Speaker 1: who sent me this DM, I actually, other than the 94 00:05:54,640 --> 00:05:57,880 Speaker 1: fragmented information you've provided me right here, I don't know 95 00:05:58,240 --> 00:06:00,760 Speaker 1: much about you. I don't know the details of your goals. 96 00:06:01,040 --> 00:06:03,880 Speaker 1: I don't know what the time frame is for these goals. 97 00:06:04,520 --> 00:06:07,640 Speaker 1: I have no idea what your risk profile is. I 98 00:06:07,680 --> 00:06:10,040 Speaker 1: have no idea what debts you may have, maybe credit 99 00:06:10,120 --> 00:06:13,640 Speaker 1: cards or car loans, or personal loans or maybe investment loans. 100 00:06:14,320 --> 00:06:17,159 Speaker 1: And I also don't know about what you value, what's 101 00:06:17,279 --> 00:06:20,520 Speaker 1: really important to you. So again, for all the listeners, 102 00:06:20,520 --> 00:06:22,760 Speaker 1: and particularly for this person who sent me this DM, 103 00:06:22,960 --> 00:06:26,240 Speaker 1: please take this as general advice only and as a 104 00:06:26,360 --> 00:06:30,520 Speaker 1: guide to get you moving. But this is where I 105 00:06:30,640 --> 00:06:35,200 Speaker 1: recommend you start. Start here. So here are some assumptions 106 00:06:35,240 --> 00:06:38,479 Speaker 1: I'm going to be making in this particular episode for you, 107 00:06:38,960 --> 00:06:41,480 Speaker 1: the writer of this DM, and also for the listeners. 108 00:06:42,000 --> 00:06:44,600 Speaker 1: So Number one is I'm going to assume, for simplicity 109 00:06:44,640 --> 00:06:48,080 Speaker 1: here and educational purposes, that there is no toxic debt 110 00:06:48,200 --> 00:06:50,359 Speaker 1: right now, so there's no credit card car loans or 111 00:06:50,360 --> 00:06:53,120 Speaker 1: personal loans. I'm also going to make the assumption here 112 00:06:53,160 --> 00:06:56,040 Speaker 1: that there is no desire to buy a home, and 113 00:06:56,080 --> 00:07:01,200 Speaker 1: that this particular person values financial freedom first before buying 114 00:07:01,240 --> 00:07:04,400 Speaker 1: a property, and that they are a long term investor. 115 00:07:04,560 --> 00:07:07,039 Speaker 1: They understand that it takes time to make money, and 116 00:07:07,080 --> 00:07:10,000 Speaker 1: they're certainly not looking for any get rich quick schemes 117 00:07:10,120 --> 00:07:13,560 Speaker 1: because that's not my jam. So this is where I 118 00:07:13,600 --> 00:07:18,640 Speaker 1: recommend you start. Number one, invest some time writing down 119 00:07:18,720 --> 00:07:23,560 Speaker 1: some goals. Financial goals. Goals that excites you, goals that 120 00:07:23,640 --> 00:07:27,040 Speaker 1: make you feel empowered, Goals that even maybe scare you 121 00:07:27,200 --> 00:07:29,520 Speaker 1: a little. And if you don't know where to start, 122 00:07:29,640 --> 00:07:32,920 Speaker 1: can I recommend having a goal that is based around 123 00:07:33,160 --> 00:07:36,920 Speaker 1: what I call a mindful money number goal, a passive 124 00:07:37,000 --> 00:07:39,960 Speaker 1: income goal. So you would set a goal for yourself 125 00:07:39,960 --> 00:07:42,680 Speaker 1: to build a passive income for example of twenty thousand 126 00:07:42,720 --> 00:07:45,520 Speaker 1: dollars a year or fifty thousand dollars a year, or 127 00:07:45,600 --> 00:07:47,560 Speaker 1: eighty thousand dollars a year or one hundred and twenty 128 00:07:47,600 --> 00:07:50,760 Speaker 1: thousand dollars a year. A mindful money number goal is 129 00:07:50,800 --> 00:07:52,960 Speaker 1: the amount of passive income that you would like to 130 00:07:53,160 --> 00:07:57,000 Speaker 1: build over time for yourself to give for yourself that 131 00:07:57,200 --> 00:08:01,160 Speaker 1: sense of financial freedom and for this person security. And 132 00:08:01,240 --> 00:08:03,720 Speaker 1: you may want to keep this number low initially as 133 00:08:03,800 --> 00:08:06,120 Speaker 1: you find your feet and build your faith and confidence 134 00:08:06,160 --> 00:08:09,080 Speaker 1: within yourself, but having a goal to build up a 135 00:08:09,080 --> 00:08:11,560 Speaker 1: passive income is definitely a goal that you're never going 136 00:08:11,600 --> 00:08:14,840 Speaker 1: to regret setting for yourself. Trust me on that, I'm 137 00:08:14,880 --> 00:08:17,200 Speaker 1: a financial planner and I've always been working on my 138 00:08:17,320 --> 00:08:20,520 Speaker 1: financial goals. Not only does this excite me and motivate 139 00:08:20,560 --> 00:08:22,920 Speaker 1: me and make me accountable with my money, it also 140 00:08:23,000 --> 00:08:26,200 Speaker 1: acts as a beacon of light for those times where 141 00:08:26,200 --> 00:08:29,800 Speaker 1: I'm frustrated, annoyed, or just having a crap day. So 142 00:08:29,920 --> 00:08:33,800 Speaker 1: invest time setting goals for yourself, but most importantly, having 143 00:08:33,840 --> 00:08:37,040 Speaker 1: a mindful money number that is a passive income goal. 144 00:08:38,080 --> 00:08:41,680 Speaker 1: Number two emergency money. You mentioned in your DM that 145 00:08:41,720 --> 00:08:43,960 Speaker 1: there is only two thousand dollars in emergency money. That 146 00:08:44,080 --> 00:08:47,880 Speaker 1: is simply not enough. You really need to sit down 147 00:08:47,920 --> 00:08:51,079 Speaker 1: and look at your individual situation and what your life, 148 00:08:51,160 --> 00:08:54,360 Speaker 1: your responsibilities look like, and what the cost of things 149 00:08:54,400 --> 00:08:57,800 Speaker 1: going wrong would be. Then look at three of those 150 00:08:57,840 --> 00:09:01,040 Speaker 1: expenses happening all at the same time. That will start 151 00:09:01,080 --> 00:09:03,840 Speaker 1: to give you a much clearer idea as to how 152 00:09:03,920 --> 00:09:07,760 Speaker 1: much emergency money you need. Now. I actually have an 153 00:09:07,800 --> 00:09:10,800 Speaker 1: episode purely based on working out how much emergency money 154 00:09:10,920 --> 00:09:14,240 Speaker 1: you need on both Sugar Mummers fireplay and on how 155 00:09:14,280 --> 00:09:16,320 Speaker 1: do you afford that? Or how do they afford that? 156 00:09:16,320 --> 00:09:18,920 Speaker 1: I should say, so make sure you have enough. But 157 00:09:18,960 --> 00:09:21,240 Speaker 1: I can tell you for the record, two thousand dollars 158 00:09:21,360 --> 00:09:24,080 Speaker 1: is not enough. I don't care how much annually you've got, 159 00:09:24,120 --> 00:09:26,440 Speaker 1: how much sickly you've got, the fact that you live 160 00:09:26,480 --> 00:09:30,280 Speaker 1: at home. You need to be real about what your 161 00:09:30,440 --> 00:09:33,680 Speaker 1: situation looks like and what could possibly go wrong. It's 162 00:09:33,679 --> 00:09:39,360 Speaker 1: about being real, responsible and honest with yourself. Now, once 163 00:09:39,400 --> 00:09:42,360 Speaker 1: you've worked out how much emergency money you need, you 164 00:09:42,440 --> 00:09:44,520 Speaker 1: need to make sure that it is kept in a 165 00:09:44,640 --> 00:09:47,960 Speaker 1: separate savings account away from your everyday spending account, and 166 00:09:48,040 --> 00:09:51,800 Speaker 1: you nickname it my emergency money, and if possible, put 167 00:09:51,800 --> 00:09:54,800 Speaker 1: the amount of emergency money in the title to remind 168 00:09:54,840 --> 00:09:57,640 Speaker 1: you as to how much you must always maintain in 169 00:09:57,840 --> 00:10:03,400 Speaker 1: emergency money. This is a non negotiable and just so 170 00:10:03,480 --> 00:10:07,800 Speaker 1: you know, I've never had someone regret having emergency money. 171 00:10:08,600 --> 00:10:10,400 Speaker 1: In fact, the only other thing I ever hear is 172 00:10:10,640 --> 00:10:13,239 Speaker 1: I wish I'd had a bit more in emergency money. 173 00:10:13,440 --> 00:10:17,360 Speaker 1: Step number three is to do a budget, sit down 174 00:10:17,640 --> 00:10:22,080 Speaker 1: and look at your living expenses, look at what has 175 00:10:22,160 --> 00:10:25,400 Speaker 1: to stay and what could possibly go. Now you're in 176 00:10:25,440 --> 00:10:27,959 Speaker 1: a very fortunate position to be able to be living 177 00:10:28,000 --> 00:10:31,760 Speaker 1: at home with low living expenses, so use this to 178 00:10:31,840 --> 00:10:35,920 Speaker 1: your financial advantage to help maximize how much money you 179 00:10:35,960 --> 00:10:38,360 Speaker 1: can save, or even better, how much money you can 180 00:10:38,440 --> 00:10:42,520 Speaker 1: start investing. Now, I'm not sure what that sixty thousand 181 00:10:42,559 --> 00:10:44,520 Speaker 1: dollars is earmarked for, and I'm not going about to 182 00:10:44,559 --> 00:10:48,640 Speaker 1: go and provide advice for it, but it is very 183 00:10:48,640 --> 00:10:51,760 Speaker 1: important that you understand the difference between money for short 184 00:10:51,800 --> 00:10:55,679 Speaker 1: term expenses and money for the long term. So money 185 00:10:55,720 --> 00:10:58,240 Speaker 1: for short term expenses is money that should always be 186 00:10:58,320 --> 00:11:03,959 Speaker 1: maintained in assets such as cash, fixed interest or term deposits. 187 00:11:04,559 --> 00:11:06,480 Speaker 1: The reason why is you don't have the benefit of 188 00:11:06,480 --> 00:11:09,000 Speaker 1: time to see your money bounce around like a go 189 00:11:09,160 --> 00:11:12,360 Speaker 1: yo with high levels of volatility that often come with 190 00:11:12,559 --> 00:11:16,720 Speaker 1: high growth assets. It's a risk versus return balance. So 191 00:11:16,800 --> 00:11:20,440 Speaker 1: please always keep in mind any money that you think 192 00:11:20,480 --> 00:11:23,880 Speaker 1: you're going to need within the next one to five 193 00:11:23,960 --> 00:11:28,520 Speaker 1: years should always be maintained in a safe, conservative environment. 194 00:11:28,920 --> 00:11:33,040 Speaker 1: Do not gamble with this money. Yes, you may manage 195 00:11:33,080 --> 00:11:35,720 Speaker 1: to get lucky and double your money or make an 196 00:11:35,720 --> 00:11:39,040 Speaker 1: extra ten to fifteen percent over that time, but what 197 00:11:39,080 --> 00:11:43,240 Speaker 1: if that money drops in value last minute with market 198 00:11:43,280 --> 00:11:46,559 Speaker 1: volatility and pullbacks and corrections. You never want to be 199 00:11:46,559 --> 00:11:49,520 Speaker 1: in a position where you have to crystallize a loss. 200 00:11:49,679 --> 00:11:52,160 Speaker 1: When you do a budget, it really makes you aware 201 00:11:52,240 --> 00:11:54,800 Speaker 1: of where your money goes, and you can quickly and 202 00:11:54,920 --> 00:11:59,240 Speaker 1: easily identify any financial waste stage or things that actually 203 00:11:59,320 --> 00:12:02,720 Speaker 1: you don't vowvalue or value as much anymore, so then 204 00:12:02,760 --> 00:12:05,200 Speaker 1: you can look at cutting them down or cutting them 205 00:12:05,280 --> 00:12:09,120 Speaker 1: out completely. Now, to avoid that lifestyle creep, it is 206 00:12:09,200 --> 00:12:13,800 Speaker 1: really important that you immediately proactively replace those newfound savings. So, 207 00:12:13,920 --> 00:12:15,920 Speaker 1: for example, if you realize that you're paying for a 208 00:12:16,000 --> 00:12:18,880 Speaker 1: subscription service that's costing thirty dollars per month and you 209 00:12:18,920 --> 00:12:21,240 Speaker 1: realize you don't use it anymore, you don't actually value 210 00:12:21,240 --> 00:12:24,120 Speaker 1: it anymore and you cancel it, make sure you replace 211 00:12:24,200 --> 00:12:27,520 Speaker 1: that with a regular savings plan, or a regular investment plan, 212 00:12:27,640 --> 00:12:31,520 Speaker 1: or a regular debt reduction plan by that thirty dollars, 213 00:12:31,559 --> 00:12:34,280 Speaker 1: Because if you don't do this, that thirty dollars very 214 00:12:34,360 --> 00:12:37,000 Speaker 1: quickly will be end up being spent somewhere else, and 215 00:12:37,040 --> 00:12:38,760 Speaker 1: you'll be scratching your head, going where did all these 216 00:12:38,760 --> 00:12:42,840 Speaker 1: newfound savings actually go? You want to proactively take control 217 00:12:42,880 --> 00:12:47,360 Speaker 1: and redirect them towards your financial goals, whichever they may be. 218 00:12:47,400 --> 00:12:50,160 Speaker 1: But in this case, let's assume it's a passive income goal, 219 00:12:50,200 --> 00:12:53,839 Speaker 1: that mindful money number goal. So as you do your budget, 220 00:12:53,920 --> 00:12:55,720 Speaker 1: go as far back as you can look at the 221 00:12:55,720 --> 00:12:58,480 Speaker 1: cold heart reality of your bank transactions so you can 222 00:12:58,520 --> 00:13:01,719 Speaker 1: see what things actually cost. This will also allow you 223 00:13:01,800 --> 00:13:06,040 Speaker 1: to see what change in expenses you've experienced without realizing. 224 00:13:06,080 --> 00:13:08,120 Speaker 1: So a gym membership may have actually gone up without 225 00:13:08,160 --> 00:13:11,480 Speaker 1: your realization, or you may actually be spending more money 226 00:13:11,520 --> 00:13:14,560 Speaker 1: on say clothes or restaurants or takeaways than you like 227 00:13:14,640 --> 00:13:17,840 Speaker 1: to actually think you do. So go through those transactions 228 00:13:18,040 --> 00:13:21,040 Speaker 1: and go back as far as you possibly can. Now 229 00:13:21,080 --> 00:13:23,360 Speaker 1: for anyone who's listening, goes, actually, I really need help 230 00:13:23,360 --> 00:13:26,160 Speaker 1: with my budget. Please head to my link in the 231 00:13:26,200 --> 00:13:28,800 Speaker 1: podcast notes because I can share with you the Sugar 232 00:13:28,880 --> 00:13:32,439 Speaker 1: Mamma Budget and cash Flow Academy, where I teach everyone 233 00:13:32,520 --> 00:13:34,520 Speaker 1: how to do a budget and build a cash flow 234 00:13:34,520 --> 00:13:38,360 Speaker 1: system for their individual needs. And this is a brilliant 235 00:13:38,400 --> 00:13:40,360 Speaker 1: program where you learn how to do a budget the 236 00:13:40,440 --> 00:13:42,120 Speaker 1: right way the first time, and you just get on 237 00:13:42,160 --> 00:13:43,880 Speaker 1: and deal with it and don't only have to think 238 00:13:43,880 --> 00:13:46,440 Speaker 1: about too much going forward because it starts working for 239 00:13:46,480 --> 00:13:50,080 Speaker 1: you quickly and easily. So step number three to reiterate 240 00:13:50,160 --> 00:13:51,920 Speaker 1: is you've got to do a budget and from that 241 00:13:52,040 --> 00:13:55,160 Speaker 1: you've got to work out where your savings or even 242 00:13:55,240 --> 00:13:59,520 Speaker 1: better investment plan can begin. So, as I said, look 243 00:13:59,520 --> 00:14:01,520 Speaker 1: at all those things you've been able to cut out 244 00:14:01,840 --> 00:14:04,800 Speaker 1: and cut down, add them up, and then set up 245 00:14:04,840 --> 00:14:10,239 Speaker 1: a regular investment plan, ideally where that newfound savings accumulated 246 00:14:10,400 --> 00:14:13,240 Speaker 1: go into a separate savings account. And to make it 247 00:14:13,280 --> 00:14:15,880 Speaker 1: actually happen and not create another task on your list 248 00:14:15,880 --> 00:14:19,000 Speaker 1: of things to do, set up a regular savings plan 249 00:14:19,160 --> 00:14:22,120 Speaker 1: so that the moment you get paid that thirty dollars 250 00:14:22,160 --> 00:14:23,920 Speaker 1: per month or three hundred dollars per month or what 251 00:14:23,920 --> 00:14:25,200 Speaker 1: are the total amount of things you've been able to 252 00:14:25,240 --> 00:14:27,320 Speaker 1: cut out of your budget to free up. Money comes 253 00:14:27,360 --> 00:14:29,240 Speaker 1: out of your account as a priority a couple of 254 00:14:29,280 --> 00:14:31,960 Speaker 1: days after being paid and into a separate savings account 255 00:14:31,960 --> 00:14:35,000 Speaker 1: where it can sit there safely, away from temptation, and 256 00:14:35,080 --> 00:14:39,160 Speaker 1: accumulate and be used when you're ready to start investing 257 00:14:39,400 --> 00:14:42,600 Speaker 1: or working on that particular financial goal. Step number four 258 00:14:42,760 --> 00:14:46,000 Speaker 1: is to do some work on your mindset. Clearly, in 259 00:14:46,080 --> 00:14:48,280 Speaker 1: reading this DM, I can see that this person is 260 00:14:48,400 --> 00:14:52,040 Speaker 1: really feeling very insecure, lacking a lot of faith and 261 00:14:52,080 --> 00:14:58,680 Speaker 1: self confidence within yourself. This doesn't serve you. You need 262 00:14:58,720 --> 00:15:01,080 Speaker 1: to realize you're actually doing a great job. The fact 263 00:15:01,120 --> 00:15:04,920 Speaker 1: that you're listening to these episodes around investing and financial 264 00:15:04,960 --> 00:15:09,240 Speaker 1: freedom and independence is brilliant. That to me shows you're 265 00:15:09,600 --> 00:15:13,360 Speaker 1: very motivated, You've got direction, and you clearly understand the 266 00:15:13,400 --> 00:15:15,760 Speaker 1: importance of all these things because you've made these decisions 267 00:15:15,960 --> 00:15:19,160 Speaker 1: and you've reached out directly to me. As I said, 268 00:15:19,320 --> 00:15:22,480 Speaker 1: you have sixty thousand dollars in savings. That is evidence 269 00:15:22,480 --> 00:15:24,440 Speaker 1: you're actually smart with money and you actually know to 270 00:15:24,440 --> 00:15:26,560 Speaker 1: have emergency money, even though it may not necessarily be 271 00:15:26,640 --> 00:15:28,760 Speaker 1: the right amount. Can you please take a moment to 272 00:15:28,760 --> 00:15:31,840 Speaker 1: give yourself a pat on the back, and can you 273 00:15:31,880 --> 00:15:34,880 Speaker 1: also get excited about these new goals about what your 274 00:15:34,920 --> 00:15:36,960 Speaker 1: future is now going to look like. And you now 275 00:15:37,000 --> 00:15:39,600 Speaker 1: know that it is never too late, and you've got 276 00:15:39,680 --> 00:15:44,520 Speaker 1: plenty of time and options and opportunities around you to 277 00:15:44,560 --> 00:15:46,520 Speaker 1: make up for lost time and to get back on track, 278 00:15:46,600 --> 00:15:49,960 Speaker 1: and even better, to get ahead of the game, and 279 00:15:50,280 --> 00:15:53,800 Speaker 1: even better, stay ahead of the game. So write down 280 00:15:53,840 --> 00:15:56,560 Speaker 1: things that you are grateful for, write down things that 281 00:15:56,600 --> 00:16:01,200 Speaker 1: you are excited about in embracing this journey, and really 282 00:16:01,280 --> 00:16:04,000 Speaker 1: look at the things that exist within you that you 283 00:16:04,040 --> 00:16:07,800 Speaker 1: can turn the volume up and actually become better with 284 00:16:07,840 --> 00:16:10,800 Speaker 1: what you are doing already. So clearly you're good at savings. 285 00:16:10,920 --> 00:16:12,680 Speaker 1: So now we need to turn the volume on that 286 00:16:12,760 --> 00:16:15,520 Speaker 1: skill set that you already have within you and shift 287 00:16:15,560 --> 00:16:18,240 Speaker 1: it and allow it to evolve and grow into becoming 288 00:16:18,280 --> 00:16:21,760 Speaker 1: a great investor. Your greater savings. You're now going to 289 00:16:21,760 --> 00:16:24,680 Speaker 1: become a great at investing. So work on this and 290 00:16:24,800 --> 00:16:27,760 Speaker 1: always be aware of your mindset. We all have these 291 00:16:27,800 --> 00:16:32,000 Speaker 1: little like negative self tught conversations that creep into our minds. 292 00:16:32,320 --> 00:16:34,280 Speaker 1: We just need to create the awareness so that if 293 00:16:34,320 --> 00:16:37,600 Speaker 1: we hear them, we shut them down quickly. And laugh 294 00:16:37,640 --> 00:16:40,880 Speaker 1: them off and then go and replace them with empowering 295 00:16:41,040 --> 00:16:45,920 Speaker 1: affirmations and positive self talk. Number five is to educate 296 00:16:45,960 --> 00:16:49,480 Speaker 1: yourself now. Of course it goes without saying. If this 297 00:16:49,600 --> 00:16:52,400 Speaker 1: part is overwhelming you don't want to do it, and 298 00:16:52,440 --> 00:16:54,880 Speaker 1: you know that you're going to procrastinate, go and see 299 00:16:54,880 --> 00:16:57,240 Speaker 1: a financial planner. This is what they do for a living. 300 00:16:57,680 --> 00:17:00,280 Speaker 1: They can give you personal advice. They can go into 301 00:17:00,640 --> 00:17:03,960 Speaker 1: the finer details that's really needed right now and look 302 00:17:03,960 --> 00:17:06,080 Speaker 1: at the goals, help you even come up with some 303 00:17:06,119 --> 00:17:10,080 Speaker 1: goals and more details for those goals and actually get 304 00:17:10,080 --> 00:17:12,960 Speaker 1: them in place. I think one of the most underested 305 00:17:13,040 --> 00:17:16,240 Speaker 1: things about a financial planner is they stop the thinking 306 00:17:16,320 --> 00:17:19,160 Speaker 1: and the talking, but make things actually happen because they 307 00:17:19,400 --> 00:17:22,720 Speaker 1: go and do it for you. And before you know it, 308 00:17:22,720 --> 00:17:24,440 Speaker 1: you've got a share portfolio, and before you know it, 309 00:17:24,480 --> 00:17:26,639 Speaker 1: you've got a savings plan for an investment property, or 310 00:17:26,640 --> 00:17:28,879 Speaker 1: before you know you've got a debt recycling strategy in place, 311 00:17:28,960 --> 00:17:31,320 Speaker 1: or before you know it, your superannuation has now been 312 00:17:31,400 --> 00:17:35,600 Speaker 1: fixed and corrected and is invested correctly with the right contribution. 313 00:17:35,720 --> 00:17:37,960 Speaker 1: Advice around how to make sure you've have enough money 314 00:17:37,960 --> 00:17:41,119 Speaker 1: in retirement. This is the value of financial planner it 315 00:17:41,200 --> 00:17:44,920 Speaker 1: is they get things done. And if your time poor 316 00:17:45,560 --> 00:17:48,480 Speaker 1: find is overwhelming and want to spend your weekends with 317 00:17:48,520 --> 00:17:51,400 Speaker 1: your family and friends doing fun things good, go see 318 00:17:51,400 --> 00:17:53,680 Speaker 1: a financial planner and get them to do it. Delegate. 319 00:17:53,920 --> 00:17:56,679 Speaker 1: We delegate things like our dry cleaning and our ironing, 320 00:17:56,720 --> 00:18:00,520 Speaker 1: and some of us are gardening and just the maintenance 321 00:18:00,560 --> 00:18:03,000 Speaker 1: of our homes and cleaning of our homes. Delegate to 322 00:18:03,040 --> 00:18:05,919 Speaker 1: a financial planner. It makes sense. But if you want 323 00:18:05,960 --> 00:18:07,760 Speaker 1: to go down this path where it's all about self 324 00:18:07,840 --> 00:18:10,280 Speaker 1: education and doing this for yourself, and you feel a 325 00:18:10,280 --> 00:18:14,040 Speaker 1: little bit intimidated seeing a financial planner for the short term, 326 00:18:14,119 --> 00:18:16,840 Speaker 1: which I can kind of understand, make sure you use 327 00:18:16,880 --> 00:18:18,639 Speaker 1: this time to educate yourself so that when you do 328 00:18:18,680 --> 00:18:21,560 Speaker 1: see a financial planner, you turn up going, Hi, this 329 00:18:21,600 --> 00:18:23,200 Speaker 1: is who I am, this is what I've done so far, 330 00:18:23,359 --> 00:18:25,920 Speaker 1: because I did this, this and this and why, and 331 00:18:26,040 --> 00:18:27,840 Speaker 1: this is now what I need from you, And these 332 00:18:27,840 --> 00:18:29,439 Speaker 1: are the goals I want to achieve, and this is 333 00:18:29,440 --> 00:18:30,720 Speaker 1: where I want to learn more of and this is 334 00:18:30,720 --> 00:18:32,480 Speaker 1: what I'd like you to help me to do. That 335 00:18:32,680 --> 00:18:35,359 Speaker 1: is going to make your relationship with your financial planner 336 00:18:35,520 --> 00:18:38,399 Speaker 1: so much better. And the financial planner is going to 337 00:18:38,400 --> 00:18:40,960 Speaker 1: take you really seriously because you know what you want 338 00:18:41,240 --> 00:18:44,040 Speaker 1: and you are determined to make sure it happens. So 339 00:18:44,080 --> 00:18:46,400 Speaker 1: we'll make the financial planner's job a lot easier as well. 340 00:18:46,800 --> 00:18:48,520 Speaker 1: But as I said, if you're going down the self 341 00:18:48,640 --> 00:18:52,040 Speaker 1: education path, you've got to pick up some books and 342 00:18:52,080 --> 00:18:55,359 Speaker 1: start reading them. My book Mindful Money is pretty much 343 00:18:55,359 --> 00:18:58,000 Speaker 1: a roadmap from start to finish as to what to do. 344 00:18:58,359 --> 00:19:00,720 Speaker 1: I really focus on how to start investing, how to 345 00:19:00,760 --> 00:19:03,000 Speaker 1: build up that passive income. I mean the book's called 346 00:19:03,040 --> 00:19:05,240 Speaker 1: Mindful Money, so it's literally how to build that mindful 347 00:19:05,280 --> 00:19:07,520 Speaker 1: money number goal. And I talk about, as I said, 348 00:19:07,520 --> 00:19:10,399 Speaker 1: debt recycling. I talk about your superannuation, how to invest 349 00:19:10,440 --> 00:19:14,000 Speaker 1: it correctly, what to look for, how to understand market 350 00:19:14,000 --> 00:19:18,120 Speaker 1: pullbacks and corrections, the importance of long term investing, being patient, 351 00:19:18,920 --> 00:19:21,440 Speaker 1: your emotions, your mindset. I do everything in that book. 352 00:19:21,480 --> 00:19:24,240 Speaker 1: It's a great place to start. The other book that 353 00:19:24,280 --> 00:19:27,480 Speaker 1: I highly recommend everyone reads, and you would have listened 354 00:19:27,480 --> 00:19:30,000 Speaker 1: to my episodes with Peter Thornhill, and that's Motivated Money, 355 00:19:30,200 --> 00:19:33,399 Speaker 1: particularly if you want to start investing in shares. And 356 00:19:33,440 --> 00:19:36,400 Speaker 1: then of course you need to educate yourself around superannuation. 357 00:19:36,680 --> 00:19:40,200 Speaker 1: Why it is so important. Superannuation is most likely going 358 00:19:40,200 --> 00:19:42,840 Speaker 1: to be the biggest financial asset that we will ever 359 00:19:42,960 --> 00:19:46,239 Speaker 1: own in our lives. And if you look at how 360 00:19:46,320 --> 00:19:49,280 Speaker 1: much money our employers are putting in every single year, 361 00:19:49,359 --> 00:19:51,919 Speaker 1: that percentage is only increasing, so we're putting more and 362 00:19:51,960 --> 00:19:55,040 Speaker 1: money in there. Our superinnuation is simply an investment portfolio 363 00:19:55,160 --> 00:19:58,600 Speaker 1: is just locked away from temptation because the government knows 364 00:19:59,000 --> 00:20:01,840 Speaker 1: we'll go and spend it, because that's what we tend 365 00:20:01,880 --> 00:20:04,919 Speaker 1: to do. You should also start educating yourself around the 366 00:20:04,960 --> 00:20:07,600 Speaker 1: power of gearing. No, that is not advice to start 367 00:20:07,920 --> 00:20:11,159 Speaker 1: borrowing money to invest, far from it. It is to 368 00:20:11,280 --> 00:20:14,680 Speaker 1: understand what gearing is, the risks involve, the costs involved, 369 00:20:15,000 --> 00:20:18,520 Speaker 1: and when is possibly the right time to consider using 370 00:20:18,520 --> 00:20:20,680 Speaker 1: something like this, and how to do it in a sensible, 371 00:20:20,720 --> 00:20:24,400 Speaker 1: wise conservative way that actually adds value to your financial 372 00:20:24,440 --> 00:20:28,560 Speaker 1: situation in helping you achieve your goals more efficiently and effectively. 373 00:20:29,240 --> 00:20:32,679 Speaker 1: It's also important that you understand the different types of investments. 374 00:20:33,160 --> 00:20:37,360 Speaker 1: I have a huge passion around shares, in particular industrial shares. No, 375 00:20:37,440 --> 00:20:39,840 Speaker 1: I'm not recommending that, but it's important that you understand 376 00:20:40,160 --> 00:20:43,160 Speaker 1: there are plenty of others. Some people will be better 377 00:20:43,200 --> 00:20:46,960 Speaker 1: off looking at bonds, corporate bonds, government bonds. Some people 378 00:20:46,960 --> 00:20:49,879 Speaker 1: will be better looking at residential investment properties because that's 379 00:20:49,920 --> 00:20:52,439 Speaker 1: what suits them and their needs. Some people will be 380 00:20:52,440 --> 00:20:54,320 Speaker 1: better of having a great mix of all of them. 381 00:20:54,720 --> 00:20:57,639 Speaker 1: So it's important that you understand what the different asset 382 00:20:57,640 --> 00:20:59,639 Speaker 1: class is out there and what is the right blend 383 00:20:59,680 --> 00:21:01,880 Speaker 1: for you. And that is when something like a risk 384 00:21:01,920 --> 00:21:05,320 Speaker 1: profile comes in. And when you've done a risk profile, 385 00:21:05,359 --> 00:21:07,480 Speaker 1: you can then use that as a guide to help 386 00:21:07,520 --> 00:21:10,720 Speaker 1: build up your investment portfolio and let you know where 387 00:21:10,760 --> 00:21:14,600 Speaker 1: and how you should start investing. Now, I will say 388 00:21:14,640 --> 00:21:16,960 Speaker 1: this when people ask me where should I start investing. 389 00:21:16,960 --> 00:21:18,840 Speaker 1: Obviously I don't tell them more to invest because that 390 00:21:18,840 --> 00:21:21,240 Speaker 1: could be deemed as advice, and that's responsible and I 391 00:21:21,280 --> 00:21:24,119 Speaker 1: don't think about them. But if you are looking at 392 00:21:24,160 --> 00:21:27,280 Speaker 1: investing and you want a diversified investment portfolio, and you 393 00:21:27,359 --> 00:21:29,120 Speaker 1: do not want the stress and pressure of working out 394 00:21:29,119 --> 00:21:32,320 Speaker 1: which investments to invest in, how, when and why and 395 00:21:32,520 --> 00:21:35,880 Speaker 1: in what amounts and with what market movements and currencies 396 00:21:35,920 --> 00:21:38,960 Speaker 1: and so forth, this is why we have wonderful products 397 00:21:38,960 --> 00:21:43,320 Speaker 1: out there like ETFs, diversified ETFs, like high growth ETFs, 398 00:21:43,440 --> 00:21:47,280 Speaker 1: balanced ETFs ETFs that specialize in certain industries such as 399 00:21:47,320 --> 00:21:54,560 Speaker 1: Australian shares, Australian high yield shares, bonds, ethical investments, international investments, 400 00:21:54,600 --> 00:21:57,760 Speaker 1: a Japan fund, a US fund, a European fund, an 401 00:21:57,760 --> 00:22:00,879 Speaker 1: Asian fund. They're all immediately diversified. Don't need to worry 402 00:22:00,880 --> 00:22:07,120 Speaker 1: about those heavy, overwhelming, complicated, very lengthy research processes. Use 403 00:22:07,280 --> 00:22:10,639 Speaker 1: those as a guide, educate yourself around them. And of course, 404 00:22:11,080 --> 00:22:13,560 Speaker 1: you know, if you're interested in industrial shares and the 405 00:22:13,640 --> 00:22:16,359 Speaker 1: sand share market, a listed investment company is another great 406 00:22:16,480 --> 00:22:20,919 Speaker 1: vehicle to do research on, So understand that and do 407 00:22:21,080 --> 00:22:23,480 Speaker 1: that risk profile. Vanguard has one of the best risk 408 00:22:23,560 --> 00:22:26,800 Speaker 1: profile questionnaires, and it's free. It's there for you, and 409 00:22:26,800 --> 00:22:29,720 Speaker 1: there's so much available information online for free as well. 410 00:22:30,440 --> 00:22:33,040 Speaker 1: So once you've educated yourself, it doesn't really actually stop that. 411 00:22:33,119 --> 00:22:35,200 Speaker 1: You need to continue on doing this. But the next 412 00:22:35,240 --> 00:22:39,800 Speaker 1: step is is the moment you are ready, you feel educated, informed, 413 00:22:40,440 --> 00:22:44,639 Speaker 1: you need to start investing. Get that ball rolling. Waste 414 00:22:44,880 --> 00:22:48,920 Speaker 1: no time at all, and when you'll know when you're ready, 415 00:22:48,960 --> 00:22:52,920 Speaker 1: because you'll understand the costs, you'll understand the risks, you'll 416 00:22:53,000 --> 00:22:55,320 Speaker 1: understand the fees, you'll understand about how to do this 417 00:22:55,400 --> 00:22:59,880 Speaker 1: in a smart, intelligent, wise way. And what I recommend 418 00:22:59,920 --> 00:23:02,200 Speaker 1: you do the moment you have made your first investment, 419 00:23:02,280 --> 00:23:05,400 Speaker 1: for example, you've decided you want to invest in shares, 420 00:23:05,560 --> 00:23:11,080 Speaker 1: Australian shares for example, you make that investment and you 421 00:23:11,119 --> 00:23:13,760 Speaker 1: continue on with that journey. As I said, this is 422 00:23:13,800 --> 00:23:17,720 Speaker 1: not a magical formula. This is that's going to fix 423 00:23:17,760 --> 00:23:20,920 Speaker 1: your finances overnight. This is a long term journey. It's 424 00:23:20,960 --> 00:23:24,919 Speaker 1: about yes, using dedication and commitment to make up for 425 00:23:24,960 --> 00:23:28,560 Speaker 1: lost time and even better, as I said, to get 426 00:23:28,600 --> 00:23:32,439 Speaker 1: ahead of the game. So focus on your passive income. 427 00:23:32,480 --> 00:23:35,760 Speaker 1: When it comes to investing. Turn down the noise of 428 00:23:35,840 --> 00:23:39,160 Speaker 1: the market, what's going on, what stocks and bonds people 429 00:23:39,200 --> 00:23:41,960 Speaker 1: recommend you should buy and sell, because that's going to 430 00:23:41,960 --> 00:23:43,760 Speaker 1: confuse and overwhelm you. At the end of the day, 431 00:23:43,800 --> 00:23:46,439 Speaker 1: you want your money working for you. So yes, you 432 00:23:46,440 --> 00:23:47,840 Speaker 1: can't bury your head in the sand when it comes 433 00:23:47,840 --> 00:23:50,280 Speaker 1: to looking at all your portfolio is worth. But what 434 00:23:50,480 --> 00:23:54,040 Speaker 1: your focus should be predominantly is on your passive income. 435 00:23:54,440 --> 00:23:57,239 Speaker 1: How much money is your portfolio making for you and 436 00:23:57,480 --> 00:24:00,399 Speaker 1: is it growing in the right direction. Because I set 437 00:24:00,640 --> 00:24:03,399 Speaker 1: the more passive income you have in your life, the 438 00:24:03,440 --> 00:24:06,520 Speaker 1: more financial freedom and independence you will have. And the 439 00:24:06,560 --> 00:24:09,000 Speaker 1: objective is, and this is where you should be focusing 440 00:24:09,000 --> 00:24:12,560 Speaker 1: all of your energy and your resources is building that 441 00:24:12,880 --> 00:24:16,399 Speaker 1: number up, growing that number from fifteen thousand dollars a 442 00:24:16,440 --> 00:24:18,680 Speaker 1: year to sixteen thousand dollars a year, seventeen thousand dollars 443 00:24:18,680 --> 00:24:21,119 Speaker 1: a year, eighteen thousand dollars a year. And if you 444 00:24:21,160 --> 00:24:25,919 Speaker 1: are using smart, intelligent two dimensional investment assets such as 445 00:24:25,960 --> 00:24:29,560 Speaker 1: shares and property that have a capital growth element as 446 00:24:29,560 --> 00:24:32,679 Speaker 1: well as a passive income element, where the most important 447 00:24:32,760 --> 00:24:36,280 Speaker 1: the passive income can grow with the capital growth. This 448 00:24:36,480 --> 00:24:40,560 Speaker 1: growth will also happen organically for you as you commit 449 00:24:40,640 --> 00:24:45,960 Speaker 1: to a regular investment plan. So when you are ready, start, 450 00:24:46,560 --> 00:24:51,000 Speaker 1: don't deally daddle and daydream, get moving. And it's funny. 451 00:24:51,040 --> 00:24:52,800 Speaker 1: A girlfriend came over to my house the other day 452 00:24:52,840 --> 00:24:54,520 Speaker 1: and said, can you just help me buy some shares? 453 00:24:54,520 --> 00:24:56,600 Speaker 1: I've never done it before. I was like, of course, 454 00:24:56,640 --> 00:24:58,960 Speaker 1: you know, bring your laptop, like, I'll sit and watch 455 00:24:58,960 --> 00:25:01,119 Speaker 1: you do it. And she did it. And she's sitting 456 00:25:01,119 --> 00:25:02,720 Speaker 1: there and we did it and she's like now what. 457 00:25:02,800 --> 00:25:05,280 Speaker 1: I'm like, You've just done it. You've just bought your 458 00:25:05,280 --> 00:25:09,520 Speaker 1: first pass loop shares. She's like, you're kidding that was it. 459 00:25:09,640 --> 00:25:12,000 Speaker 1: I was like, yes, that's it. I'm like, you're going 460 00:25:12,040 --> 00:25:13,400 Speaker 1: to get some paperwork in the mail in the next 461 00:25:13,440 --> 00:25:15,640 Speaker 1: couple of weeks. But she's like, am I a shareholder? 462 00:25:15,680 --> 00:25:18,600 Speaker 1: I'm like, welcome to the club. It is so easy. 463 00:25:18,640 --> 00:25:20,080 Speaker 1: As I say to people, if you can buy a 464 00:25:20,080 --> 00:25:23,719 Speaker 1: pair of shoes online, you can buy shares online. So 465 00:25:23,960 --> 00:25:26,840 Speaker 1: once you've done that, focus on the passive income. And 466 00:25:26,880 --> 00:25:30,159 Speaker 1: what I recommend is explain in my full money is 467 00:25:30,240 --> 00:25:34,000 Speaker 1: take that passive income number and ear market against the goals. So, 468 00:25:34,080 --> 00:25:36,359 Speaker 1: for example, say your passive income goals to build a 469 00:25:36,440 --> 00:25:39,720 Speaker 1: passive income of forty thousand dollars a year, and you 470 00:25:39,840 --> 00:25:43,280 Speaker 1: now know from investing that you've started, say for Simpler City, 471 00:25:43,520 --> 00:25:45,680 Speaker 1: you've now got a passive income of four thousand dollars 472 00:25:45,720 --> 00:25:49,520 Speaker 1: a year. You now know you are ten percent of 473 00:25:49,560 --> 00:25:52,520 Speaker 1: the way. So next time you go and buy, for example, 474 00:25:52,520 --> 00:25:55,280 Speaker 1: another paslip shares or ETFs or listened to mess and 475 00:25:55,320 --> 00:25:57,400 Speaker 1: Companies or whatever it may be, go and look at 476 00:25:57,400 --> 00:26:01,000 Speaker 1: what the estimated passive income is for that investment and 477 00:26:01,040 --> 00:26:03,520 Speaker 1: add it to what you've built so far. So you'll 478 00:26:03,560 --> 00:26:05,960 Speaker 1: go say from you know, ten percent to twelve percent 479 00:26:06,000 --> 00:26:09,080 Speaker 1: to fifteen percent to eighteen percent to twenty two percent 480 00:26:09,640 --> 00:26:15,080 Speaker 1: to twenty seven percent is a slow and steady progressive growth, 481 00:26:15,160 --> 00:26:16,879 Speaker 1: but in the right direction where you get to that 482 00:26:16,920 --> 00:26:20,040 Speaker 1: point where you are at one hundred percent capacity, that is, 483 00:26:20,240 --> 00:26:22,800 Speaker 1: you're making that forty thousand dollars a year in passive income. 484 00:26:23,359 --> 00:26:25,600 Speaker 1: So don't worry too much about what the market is 485 00:26:25,640 --> 00:26:28,639 Speaker 1: because the share market doesn't actually reflect the true value. 486 00:26:28,760 --> 00:26:30,840 Speaker 1: What do you want to do is see where your 487 00:26:30,880 --> 00:26:33,480 Speaker 1: businesses are making money and putting money in your pocket. 488 00:26:34,320 --> 00:26:36,800 Speaker 1: And of course, if and when you can to help 489 00:26:37,040 --> 00:26:40,600 Speaker 1: with that organic growth, try and enroll in a dividend 490 00:26:40,600 --> 00:26:44,480 Speaker 1: reinvestment plan if you can afford to. Assuming that this person, 491 00:26:44,520 --> 00:26:46,680 Speaker 1: as I said, they live at home, their living expenses 492 00:26:46,680 --> 00:26:50,280 Speaker 1: are low, they've got a great salary. I'm assuming that 493 00:26:50,320 --> 00:26:52,680 Speaker 1: this person doesn't need this money and it's for their 494 00:26:52,720 --> 00:26:57,600 Speaker 1: long term financial security, so reinvesting it is a brilliant idea. However, 495 00:26:57,840 --> 00:27:01,959 Speaker 1: reinvestment must be done with caution because if you have 496 00:27:02,040 --> 00:27:04,840 Speaker 1: a reinvestment plan, depending on what your underlying investments are, 497 00:27:05,240 --> 00:27:08,520 Speaker 1: you want to make sure that your portfolio is diversified. 498 00:27:08,960 --> 00:27:10,800 Speaker 1: That is, you haven't put all of your eggs in 499 00:27:10,880 --> 00:27:14,320 Speaker 1: one basket. You have covered all the necessary asset classes 500 00:27:14,320 --> 00:27:18,359 Speaker 1: that your risk profile suggests as a guide, and you 501 00:27:18,400 --> 00:27:20,199 Speaker 1: do need to check your risk profile on a regular 502 00:27:20,240 --> 00:27:23,800 Speaker 1: basis every I would probably suggest maybe every six months 503 00:27:23,920 --> 00:27:27,080 Speaker 1: or every year, because the more experience would become, the 504 00:27:27,200 --> 00:27:32,639 Speaker 1: more comfortable we are with taking educated risk, and of 505 00:27:32,760 --> 00:27:36,960 Speaker 1: course that is just natural evolution. So it is worth 506 00:27:37,080 --> 00:27:40,159 Speaker 1: just checking in on your risk profile every year and 507 00:27:40,240 --> 00:27:43,400 Speaker 1: to see if it's changed and adjusted. And of course 508 00:27:43,440 --> 00:27:45,719 Speaker 1: that doesn't mean you have to sell your entire investment portfolio. 509 00:27:46,119 --> 00:27:48,440 Speaker 1: You may be able to just with new money coming 510 00:27:48,440 --> 00:27:51,679 Speaker 1: in start investing in those more high growth assets to 511 00:27:51,720 --> 00:27:54,200 Speaker 1: help make sure that your portfolio is growing. But you're 512 00:27:54,240 --> 00:27:58,120 Speaker 1: not crystallizing capital gains tax along the way. But make 513 00:27:58,160 --> 00:28:02,600 Speaker 1: sure if you can, you are reinvesting. You're not spending 514 00:28:02,600 --> 00:28:05,840 Speaker 1: that money that you're actually putting that income that you've made, 515 00:28:05,920 --> 00:28:10,080 Speaker 1: that passive income back into your portfolio for future compounding 516 00:28:10,320 --> 00:28:14,680 Speaker 1: growth opportunities. And as you go along the way, make 517 00:28:14,720 --> 00:28:17,760 Speaker 1: sure you're taking note, even like through a journal, as 518 00:28:17,800 --> 00:28:20,160 Speaker 1: to how much passive income you have built so far 519 00:28:20,359 --> 00:28:23,280 Speaker 1: and the date, because I cannot tell you how incredibly 520 00:28:23,320 --> 00:28:26,720 Speaker 1: inspiring it is to look back and see how far 521 00:28:26,880 --> 00:28:29,959 Speaker 1: you've come in such a short period of time, and 522 00:28:30,040 --> 00:28:34,480 Speaker 1: this will give you the motivation to stay true, to 523 00:28:34,560 --> 00:28:37,679 Speaker 1: stay committed and dedicated to the journey in growing your 524 00:28:37,720 --> 00:28:42,760 Speaker 1: passive income and actually creating that true, authentic, sustainable financial 525 00:28:42,760 --> 00:28:47,959 Speaker 1: security in your life. Step number seven is to protect 526 00:28:48,000 --> 00:28:52,800 Speaker 1: your wealth. I touched on very briefly about emergency money, 527 00:28:53,160 --> 00:28:56,440 Speaker 1: and of course emergency money does offer a form of 528 00:28:56,520 --> 00:28:59,880 Speaker 1: wealth protection for you, but it does actually go far 529 00:29:00,080 --> 00:29:04,160 Speaker 1: beyond that. Policies like income protection policy, where if you 530 00:29:04,320 --> 00:29:07,200 Speaker 1: cannot work due to a medical reason, an insurance company 531 00:29:07,240 --> 00:29:09,680 Speaker 1: will pay up to seventy five percent of your income 532 00:29:09,760 --> 00:29:12,400 Speaker 1: until you can return back to work or until a 533 00:29:12,440 --> 00:29:15,560 Speaker 1: certain age ideally around the age of sixty five, because 534 00:29:15,560 --> 00:29:18,680 Speaker 1: you can then access potentially your superannuation money. So it's 535 00:29:18,760 --> 00:29:22,200 Speaker 1: really important that you have protection policies in place. Another 536 00:29:22,240 --> 00:29:25,800 Speaker 1: one that's important to know about and understand is trauma cover. 537 00:29:26,200 --> 00:29:29,880 Speaker 1: This pays a lump sum tax free to you in 538 00:29:29,920 --> 00:29:32,280 Speaker 1: the event if you suffering a major medical trauma such 539 00:29:32,320 --> 00:29:37,200 Speaker 1: as a cancer, heart attack, stroke, And it is really 540 00:29:37,280 --> 00:29:39,680 Speaker 1: important that you take these types of policies out sooner 541 00:29:39,760 --> 00:29:41,920 Speaker 1: rather than later, because further down the track we tend 542 00:29:41,920 --> 00:29:46,400 Speaker 1: to have more health conditions. We're aware of maybe hereditary issues, 543 00:29:47,120 --> 00:29:49,280 Speaker 1: you know, we've maybe been in an accident or broken 544 00:29:49,320 --> 00:29:51,480 Speaker 1: a few bones, and we now have loadings and exclusions, 545 00:29:51,480 --> 00:29:54,920 Speaker 1: which also makes it a lot more expensive. So I've 546 00:29:54,960 --> 00:29:57,840 Speaker 1: shared with this in other episodes on Sugar Mum's Fireplay. 547 00:29:57,880 --> 00:30:00,440 Speaker 1: But I took out my personal insurance policy in my 548 00:30:00,480 --> 00:30:03,480 Speaker 1: early twenties, and I'm so glad I did because if 549 00:30:03,520 --> 00:30:07,200 Speaker 1: I was to go and reapply for new insurances today, 550 00:30:07,480 --> 00:30:09,400 Speaker 1: I would not get it. I have the exact same 551 00:30:09,440 --> 00:30:13,760 Speaker 1: policies in place and they are non negotiables. And my 552 00:30:13,880 --> 00:30:18,520 Speaker 1: partner Tom is also properly insured. And there's income protection, 553 00:30:18,600 --> 00:30:22,040 Speaker 1: trauma cover, life andtputy and life cover. So protect your wealth, 554 00:30:22,080 --> 00:30:25,800 Speaker 1: be smart, intelligent, and understand things can happen in the 555 00:30:25,840 --> 00:30:30,120 Speaker 1: blink of an eye. So there are the seven steps 556 00:30:30,160 --> 00:30:34,360 Speaker 1: to help you start start here. By starting here, you'll 557 00:30:34,360 --> 00:30:38,200 Speaker 1: be well and truly on the right path again. But 558 00:30:38,240 --> 00:30:41,840 Speaker 1: the thing is you need to keep going to do this. Listener, 559 00:30:41,880 --> 00:30:45,760 Speaker 1: you're obviously in a very fortunate position, so you can 560 00:30:45,880 --> 00:30:48,480 Speaker 1: use this to your financial advantage, and that is to 561 00:30:48,520 --> 00:30:52,920 Speaker 1: start building passive income in your life. Whatever amount of 562 00:30:52,920 --> 00:30:56,120 Speaker 1: passive income you would like. It doesn't matter, just start 563 00:30:56,160 --> 00:30:59,920 Speaker 1: building it and remember that passive income maybe the pass 564 00:31:00,040 --> 00:31:03,600 Speaker 1: of income that allows you to switch to part time work. 565 00:31:04,160 --> 00:31:08,120 Speaker 1: That passive income may eventually help pay your rent, or 566 00:31:08,160 --> 00:31:11,400 Speaker 1: even better, help pay your mortgage and eventually pay your 567 00:31:11,440 --> 00:31:14,440 Speaker 1: mortgage off. It also may be the passive income that 568 00:31:14,520 --> 00:31:18,040 Speaker 1: helps pay for maybe further educational costs for yourself, or 569 00:31:18,080 --> 00:31:21,240 Speaker 1: if you have children, for your children's educational costs. That 570 00:31:21,240 --> 00:31:25,520 Speaker 1: passive income may pay for a holiday every single year, 571 00:31:25,520 --> 00:31:28,520 Speaker 1: to the destination of your dreams. That passive income may 572 00:31:28,560 --> 00:31:33,240 Speaker 1: allow you to take sabbaticals regular sabbaticals, And that passive 573 00:31:33,280 --> 00:31:36,479 Speaker 1: income may actually allow you to have an earlier or 574 00:31:36,520 --> 00:31:40,160 Speaker 1: even more luxurious retirement. This is the power of passive income. 575 00:31:40,320 --> 00:31:43,280 Speaker 1: It gives you not only financial security, which is what 576 00:31:43,320 --> 00:31:45,480 Speaker 1: this person put in their DM to me, It gives 577 00:31:45,520 --> 00:31:51,400 Speaker 1: them choice, flexibility, time, and a wonderful sense of financial 578 00:31:51,440 --> 00:31:55,760 Speaker 1: peace and independence. So, for this listener, and for anyone 579 00:31:55,760 --> 00:31:59,760 Speaker 1: else that's in a similar situation, has similar questions and queries, 580 00:32:00,520 --> 00:32:02,880 Speaker 1: draw a line in the sand, step up to the plate, 581 00:32:03,240 --> 00:32:07,960 Speaker 1: because something deep within you knows that you are actually 582 00:32:08,480 --> 00:32:12,880 Speaker 1: ready right now. You do not need to waste precious 583 00:32:12,920 --> 00:32:16,120 Speaker 1: time and energy beating yourself up anymore. As one of 584 00:32:16,120 --> 00:32:21,520 Speaker 1: my favorite quotes goes, work hard in silence, let's success 585 00:32:21,840 --> 00:32:26,360 Speaker 1: make the noise. You now know where to start, so 586 00:32:26,640 --> 00:32:30,600 Speaker 1: get started today. So to this listener right now, you 587 00:32:30,720 --> 00:32:34,760 Speaker 1: now know exactly where to start. You know exactly what 588 00:32:34,800 --> 00:32:37,800 Speaker 1: you need to do today, and if you're really honest 589 00:32:37,800 --> 00:32:41,360 Speaker 1: with yourself, you know how exciting it is to be 590 00:32:41,440 --> 00:32:43,880 Speaker 1: able to know that you are going to be watching 591 00:32:44,560 --> 00:32:49,920 Speaker 1: your future, your financial future, flourish well into the future, 592 00:32:50,080 --> 00:32:54,240 Speaker 1: and you'll be so glad that you got started today. 593 00:32:54,400 --> 00:32:57,560 Speaker 1: So thank you everyone for listening to Sugar Mama's fireplate 594 00:32:57,640 --> 00:33:01,640 Speaker 1: for our very first start. Here. To anyone else that 595 00:33:01,680 --> 00:33:04,840 Speaker 1: would like to send me a d M on Instagram 596 00:33:04,880 --> 00:33:08,360 Speaker 1: asking them for some advice as to where to get started, 597 00:33:08,480 --> 00:33:11,360 Speaker 1: please don't be shy, remember, of course, that this is 598 00:33:11,440 --> 00:33:15,160 Speaker 1: general advice only and for educational purposes. And when in doubt, 599 00:33:15,320 --> 00:33:18,960 Speaker 1: please please please always go and see a financial planner 600 00:33:19,000 --> 00:33:21,520 Speaker 1: because they can give you not a general advice, but 601 00:33:22,120 --> 00:33:27,400 Speaker 1: personal investment strategic product advice. Thank you everyone for listening. 602 00:33:27,800 --> 00:33:30,120 Speaker 1: Please feel free to leave me a rating and review. 603 00:33:30,360 --> 00:33:34,840 Speaker 1: I would greatly appreciate it. Until next time. Stay motivated, empowered, 604 00:33:35,040 --> 00:33:38,440 Speaker 1: and never stop seeking new ways to achieve your financial 605 00:33:38,480 --> 00:33:41,640 Speaker 1: goals and dreams. This is sugar warmers. Fie