WEBVTT - If you lost your job tomorrow, would you be okay?

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<v Speaker 1>Welcome to How Today Afford That, the podcast that peaks

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<v Speaker 1>into the financial lives of every day Australians. I'm Michael Thompson.

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

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<v Speaker 1>news podcast Fear and Breed, and as always, I am

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<v Speaker 1>joined in the studio by financial planner Cannack Campbell, the

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

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<v Speaker 1>you will find everywhere YouTube, podcast, books, Instagram, threads, TikTok

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<v Speaker 1>and more.

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<v Speaker 2>Hello, Canna, Hello, it's suit of a mouthful.

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<v Speaker 1>It certainly is well one day soon, I'm going to

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<v Speaker 1>shorten that. I'm just going to just describe you as

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<v Speaker 1>being universally present. I feel like, really, yeah, okay, next time,

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<v Speaker 1>you know, I'm gonna forget the next time I'm going

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<v Speaker 1>to launch into the whole spiel again. Today's episode, it

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<v Speaker 1>is going to be slightly uncomfortable, but it is equally important.

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<v Speaker 2>Very important, particularly right now.

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<v Speaker 1>Yeah. Indeed, if you lost your job tomorrow, how long

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<v Speaker 1>could you comfortably last? Is it going to be a week,

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<v Speaker 1>a month, six months, a year?

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<v Speaker 2>Maybe indefinitely? Because you've built financial independence.

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<v Speaker 1>Today we are talking about financial resilience. This isn't about

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<v Speaker 1>fear and it's not intended to be too negative. It

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<v Speaker 1>is just about preparation and the peace of mind that

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<v Speaker 1>comes from knowing that you are prepared if.

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<v Speaker 2>Something happens, and the practical steps that you will be

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<v Speaker 2>really glad that you took regardless of whatever happens.

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<v Speaker 1>Why do you think it is that that kind of

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<v Speaker 1>job loss resilience really is what we're talking about here.

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<v Speaker 1>It's something that people avoid thinking about. Is it just

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<v Speaker 1>that we don't even want to comprehend that, Hey, something

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<v Speaker 1>that gives us so much security and is so much

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<v Speaker 1>a part of kind of who we are and what

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<v Speaker 1>we do could actually end well.

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<v Speaker 2>I think it's because it forces us to confront uncertainty,

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<v Speaker 2>and our brains are always wired to seek comfort and

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<v Speaker 2>just try and be positive and obviously think that everything's

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<v Speaker 2>going to be fine, it's going to sort itself out.

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<v Speaker 2>We don't need to worry. So, you know, thinking about

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<v Speaker 2>a job loss, it feels uncomfortable, it feels incredibly pessimistic.

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<v Speaker 2>But the thing is preparing for it isn't actually about fear.

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<v Speaker 2>It's actually about creating a sense of peace of mind

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<v Speaker 2>so that no matter what happens either way, you'll always

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<v Speaker 2>be Okay, you'll be able to get back on your

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<v Speaker 2>feet again. And financial resilience is actually one of the

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<v Speaker 2>best things and most empowering things you can ever do

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<v Speaker 2>for yourself because it gives you a sense of confidence

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<v Speaker 2>and strength that you can actually handle to a certain

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<v Speaker 2>degree sudden unexpected changes. And you know, life is rarely perfect,

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<v Speaker 2>it is really predictable. So by having a bit of

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<v Speaker 2>a backup plan to the side allows you to be

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<v Speaker 2>able to navigate stressful times with a greater sense of

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<v Speaker 2>you know, resilience and strength.

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<v Speaker 1>Is there a difference in that case because I understand

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<v Speaker 1>all of that that makes affects sense, this idea that

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<v Speaker 1>we actually don't want to confront this because it is

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<v Speaker 1>something that is it makes us uncomfortable, the idea that

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<v Speaker 1>it can all go, the value of actually doing it, Yeah,

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<v Speaker 1>got it. But is there a difference between kind of

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<v Speaker 1>panic planning and going, oh, things are looking a little

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<v Speaker 1>bit shaky at work, I need to get a plan

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<v Speaker 1>in place, or just getting kind of frantic about the

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<v Speaker 1>idea that your job could go. And then this idea

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<v Speaker 1>of perhaps smart long term preparation. What's the difference between those?

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<v Speaker 2>So the difference is reactionary versus proactive. Okay, so when

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<v Speaker 2>we are reactive, we're normally forced into a situation, possibly

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<v Speaker 2>out of the blue, and we become irrational and our

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<v Speaker 2>emotions are running high, and we often make decisions which

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<v Speaker 2>aren't necessarily the smartest and best decisions for us. You know,

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<v Speaker 2>we're almost in like a sense of survival mode and

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<v Speaker 2>the adrenaline kicks in. But when we are being proactive,

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<v Speaker 2>we have done the work in preparation, we have built

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<v Speaker 2>up the emergency savings. We are able to handle the

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<v Speaker 2>situation with grace, with dignity, but we're also able to

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<v Speaker 2>be calm and make smart, intelligent decisions that allow us

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<v Speaker 2>to move forward, to outgrow the situation and to continue

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<v Speaker 2>on getting back on our feet again and building our lives.

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<v Speaker 1>All Right, it is time to talk about emergency money

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<v Speaker 1>because that is going to be one of the key

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<v Speaker 1>components of this resilience, right, having emergency money saved up

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<v Speaker 1>ready to go in the event that everything changes. And

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<v Speaker 1>this isn't just for job loss. This is for in

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<v Speaker 1>the event of something else big that happens that affects

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<v Speaker 1>your ability to earn an income. Yes, that you are

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<v Speaker 1>covered with emergency money. How much of an emergency buffer

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<v Speaker 1>should we realistically be aiming for. And I know the

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<v Speaker 1>easiest way to provoke right now is to say it's

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<v Speaker 1>just two months of your salary, right or something along

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<v Speaker 1>those even.

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<v Speaker 2>I'm going to like jump across the desk and throttle

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<v Speaker 2>you for saying that is not this arbitrary number and

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<v Speaker 2>it's not this you know, generic formula. What is right

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<v Speaker 2>for someone is different for the other person.

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<v Speaker 1>You've got to look very satisfying, like you've got to look.

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<v Speaker 2>At your own individual situation and the risks and the

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<v Speaker 2>responsibilities that you carry. You know, for example, you know,

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<v Speaker 2>a single parent looking after say three children, carrying the

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<v Speaker 2>bulk with the financial responsibilities and is perhaps self employed,

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<v Speaker 2>needs a lot more emergency money than say a twenty

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<v Speaker 2>two year old that's studying and perhaps living at home.

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<v Speaker 2>You know, if you were to use those generic formulas,

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<v Speaker 2>you know, you run the risk of the young person

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<v Speaker 2>having too much an emergency money and it's not an

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<v Speaker 2>efficient use of funds. And then you run the risk

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<v Speaker 2>of the single mother being exposed to financial risk. She

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<v Speaker 2>would or he would potentially need significantly more money set aside.

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<v Speaker 2>So as a guide, what I suggest people do is

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<v Speaker 2>sit down and look at their situation, and look at

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<v Speaker 2>the safety nets they've got, things like sickly annual leab

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<v Speaker 2>a humulity, perhaps even long service leave, what savings they

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<v Speaker 2>already have established, you know what, things like income protection

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<v Speaker 2>insurance policies they have in place as well. And look

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<v Speaker 2>at what their living expenses obviously come into this as well.

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<v Speaker 2>But look at what are three possible the three most

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<v Speaker 2>expensive I should say possible risks that could actually happen.

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<v Speaker 2>And then what is the cost of each of those

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<v Speaker 2>three And what is the total cost of all of

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<v Speaker 2>these things if they were to happen at the same time.

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<v Speaker 1>So hypothetically that would be And in this scenario where

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<v Speaker 1>we're talking about losing your job, let's say you might

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<v Speaker 1>factor in losing your job tomorrow and it taking you

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<v Speaker 1>three months, for instance, to find a suitable replacement. So

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<v Speaker 1>you're kind of factoring in the ability to continue to

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<v Speaker 1>pay for all of your normal expenses, your mortgage, your groceries,

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<v Speaker 1>your bills, and putting that as well one of your expenses.

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<v Speaker 1>Then you're looking at something else, which might be.

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<v Speaker 2>Say, for example, we were car breaking down and there's

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<v Speaker 2>a three thousand dollar bill and you need your car

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<v Speaker 2>to be able to get to work and to get

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<v Speaker 2>the kids to school.

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<v Speaker 1>It is.

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<v Speaker 2>It is a genuine essential expense, emergency expense, so that

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<v Speaker 2>you'd add that into the list, and then perhaps a

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<v Speaker 2>medical expense where you need to go and get a

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<v Speaker 2>series of scans and tests. And I tore my ACL

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<v Speaker 2>in October and I had knee surgery in December, and

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<v Speaker 2>I think I was out of pocket. I think almost

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<v Speaker 2>twelve thousand dollars. Wow, So you know, these are the

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<v Speaker 2>sorts of things we think about. And a cockroach jumped

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<v Speaker 2>on me like that. It wasn't like I slipped and

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<v Speaker 2>had an accident or it was playing you know, professional

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<v Speaker 2>sport or something glamorous like that.

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<v Speaker 1>Was it a cockroach that did that? Tea? I mean,

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<v Speaker 1>I was very It must have been a very heavy

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<v Speaker 1>cockroach to it.

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<v Speaker 2>I was naked and jumped on my inner thigh because

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<v Speaker 2>I just got another shower. Yeah, So people like that's

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<v Speaker 2>a bit of a stupid overreaction. I'm like, no, I

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<v Speaker 2>was actually naked. It jumped on my in a thigh

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<v Speaker 2>like and it was huge. It was the world's biggest

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<v Speaker 2>cockroach and it flew across the room. It was like

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<v Speaker 2>it was an omen like it was running away from me.

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<v Speaker 2>It stopped, looked at me, and I was thinking, do

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<v Speaker 2>I go get the spray or do I just deal

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<v Speaker 2>with it another time? And as I'm thinking staring at it,

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<v Speaker 2>it was very tired. It jumped on me.

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<v Speaker 1>It lunged.

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<v Speaker 2>My leg went one way and my body went the other.

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<v Speaker 2>And I heard it and like felt it. It was horrible,

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<v Speaker 2>But there you go. Like private health insurance, yes, helped

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<v Speaker 2>cover like stay in hospital, but everything else I was

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<v Speaker 2>out of pocket a lot of money.

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<v Speaker 1>How though, do you factor that? Are you using this

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<v Speaker 1>as an example? How do you plan for something that

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<v Speaker 1>is and there is no way in the world that

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<v Speaker 1>you could predict the arrival of a particularly malicious cockroach, right,

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<v Speaker 1>so how on earth do you budget for that in

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<v Speaker 1>terms of your emergency money? Going? Okay, I will factory

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<v Speaker 1>in twelve thousand dollars for cockroach attack. It could just

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<v Speaker 1>as easily have been having to budget twenty thousand dollars

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<v Speaker 1>for if I kind of slip over in the garden

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<v Speaker 1>and crack your head open or something like, you know

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<v Speaker 1>what I mean. Like these are all so hypothetical and

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<v Speaker 1>theoretical that it's almost impossible to narrow it down to

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<v Speaker 1>what you should be budgeting for.

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<v Speaker 2>Look, your imagination could go wild here, It certainly can.

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<v Speaker 2>And interesting when I shared this video about all the

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<v Speaker 2>expenses I could, I had so many people reach out

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<v Speaker 2>to me with similar stories where they sort of sappened

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<v Speaker 2>with a spider or a lizard or a snake in

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<v Speaker 2>the garden and they tripped over because you know, it

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<v Speaker 2>was actually quite common. Surprisingly, But this is why I

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<v Speaker 2>say go with three, because of course, you know you're

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<v Speaker 2>just helping giving yourself a bit of financial protection. We

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<v Speaker 2>cannot predict what's going to happen in order we actually

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<v Speaker 2>want to attract or manifest, you know, prophesize this stuff

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<v Speaker 2>happening to us. But by looking at your three most expensive,

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<v Speaker 2>at least you've got something close to what that cost

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<v Speaker 2>could end up being, rather than nothing at all. You know,

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<v Speaker 2>you're not going to come up with the exact perfect figure.

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<v Speaker 2>But also when you have this emergency money there, you

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<v Speaker 2>will know whether that's enough and whether it's right for you,

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<v Speaker 2>and whether it gives you that sense of stability and security.

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<v Speaker 2>And you know I've shared this before. You know we

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<v Speaker 2>had seventy thousand dollars emergency money for our family in

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<v Speaker 2>frugal February a couple of years, it all got wiped

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<v Speaker 2>out as well as additional extra savings in one month.

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<v Speaker 2>So you know, you've got to take this seriously. And

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<v Speaker 2>you know, the whole point about this emergency money is

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<v Speaker 2>it makes you financially resilient. Just like if you're building

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<v Speaker 2>a house. You know, if there's a storm that comes through,

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<v Speaker 2>whether it be a fire, rain, or wind, the house

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<v Speaker 2>might be a little bit damaged. But because you've got

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<v Speaker 2>emergency money, the damage isn't too bad, and it's quickly

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<v Speaker 2>and easily fixable and allows you to get back on

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<v Speaker 2>your feet and living in the house of your dreams

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<v Speaker 2>as you were previously.

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<v Speaker 1>On that point though, when you say you had seventy

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<v Speaker 1>thousand dollars in emergency money, someone hearing that would just

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<v Speaker 1>that it's a rage that's impossible.

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<v Speaker 2>That took years and years of building up.

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<v Speaker 1>And this is what I wanted to get at. This

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<v Speaker 1>is this is where we go back to that difference

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<v Speaker 1>between panic planning and smart preparation. That this is not

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<v Speaker 1>about oh Okay, things are looking shaky at work, I

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<v Speaker 1>better start planning now. This is ideally something that hey,

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<v Speaker 1>if everything's great for you at work at the moment,

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<v Speaker 1>and that's not really a risk start anyway, because five

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<v Speaker 1>years time, ten years down the track, maybe things will

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<v Speaker 1>be different and you've actually attacked it then from a

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<v Speaker 1>point of preparation rather than not exactly.

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<v Speaker 2>And you know, I mean that would have been like

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<v Speaker 2>eight years probably of building that money up and then

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<v Speaker 2>having to go back and start all over again, you know,

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<v Speaker 2>And even I'm still I am still in the process

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<v Speaker 2>of rebuilding our emergency money, you know, after having to

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<v Speaker 2>start over again. But the thing is, at least there's

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<v Speaker 2>something there, and it's slowly and it sits in our

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<v Speaker 2>officeter council. It helps, it is actually working with us,

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<v Speaker 2>and that it helps save interest off the home loan.

0:11:58.160 --> 0:12:01.160
<v Speaker 2>But you know, as it's slowly builds, you do feel

0:12:01.160 --> 0:12:04.240
<v Speaker 2>that you feel a lot more comfortable and safe and secure.

0:12:04.720 --> 0:12:07.560
<v Speaker 1>Okay, And also the fact that when you hear seventy

0:12:07.600 --> 0:12:10.520
<v Speaker 1>thousand dollars right, but keep in mind, yes it is,

0:12:10.840 --> 0:12:12.880
<v Speaker 1>it does sound like a lot of money to have there.

0:12:12.920 --> 0:12:16.880
<v Speaker 1>But if you are combining the three biggest risks that

0:12:17.000 --> 0:12:20.680
<v Speaker 1>you might be looking at, say three months of lost

0:12:20.679 --> 0:12:24.320
<v Speaker 1>income from losing your job, and already that is going

0:12:24.360 --> 0:12:27.320
<v Speaker 1>to be a significant lack of money and maybe twenty

0:12:27.360 --> 0:12:29.839
<v Speaker 1>thousand dollars for emergency surgery or something else.

0:12:29.960 --> 0:12:33.400
<v Speaker 2>And also got to take into consideration the consequence, the

0:12:33.400 --> 0:12:36.640
<v Speaker 2>financial consequence of not having emergency money. So, for example,

0:12:36.720 --> 0:12:38.440
<v Speaker 2>Tom and I are both self employed, and Tom is

0:12:38.440 --> 0:12:42.000
<v Speaker 2>actually an equine physio, so he's around horses. His job

0:12:42.080 --> 0:12:45.000
<v Speaker 2>is very very physical. If a horse can suddenly snap

0:12:45.880 --> 0:12:50.520
<v Speaker 2>and jump and he gets injured, that could potentially mean

0:12:50.520 --> 0:12:54.400
<v Speaker 2>that we lose our house. So there are serious financial consequences.

0:12:54.440 --> 0:12:56.800
<v Speaker 2>And that's what again why emergency money is needed.

0:12:56.960 --> 0:12:58.840
<v Speaker 1>Okay, very quick break, So I want to talk about

0:12:58.880 --> 0:13:02.800
<v Speaker 1>the other components that beyond that big chunk of savings

0:13:02.840 --> 0:13:05.240
<v Speaker 1>that ideally you would have, but the other things that

0:13:05.280 --> 0:13:07.800
<v Speaker 1>can help build that financial resilience. Back in a moment

0:13:13.920 --> 0:13:17.000
<v Speaker 1>cano we've been talking about financial resilience and this idea

0:13:17.040 --> 0:13:19.400
<v Speaker 1>that if you lost your job tomorrow, how long would

0:13:19.440 --> 0:13:21.000
<v Speaker 1>you last? Are you going to be able to get

0:13:21.000 --> 0:13:24.040
<v Speaker 1>by a week, a month, six months? Not knowing how

0:13:24.120 --> 0:13:27.439
<v Speaker 1>long it will take to find a new job, especially

0:13:28.679 --> 0:13:31.400
<v Speaker 1>in certain industries where there is a lot of change

0:13:31.480 --> 0:13:36.000
<v Speaker 1>coming through, particularly with AI, that it's quite uncertain.

0:13:35.600 --> 0:13:37.960
<v Speaker 2>And also it's not about finding a job. It's about

0:13:37.960 --> 0:13:41.280
<v Speaker 2>finding the right job for you where you actually will

0:13:41.360 --> 0:13:44.839
<v Speaker 2>enjoy the work. You've been compensated fairly. You've also got

0:13:44.920 --> 0:13:47.040
<v Speaker 2>the same future career paths that you don't need to

0:13:47.080 --> 0:13:49.760
<v Speaker 2>worry about losing your job again. You know, these things

0:13:49.800 --> 0:13:50.679
<v Speaker 2>do come into play.

0:13:51.120 --> 0:13:54.600
<v Speaker 1>So beyond savings and having that big chunk of cash

0:13:54.640 --> 0:13:57.960
<v Speaker 1>sitting there, ideally in an offset account, and having it

0:13:58.000 --> 0:14:00.040
<v Speaker 1>in cash so that you can access it when you

0:14:00.080 --> 0:14:04.480
<v Speaker 1>need it. You mentioned in passing insurances and the idea

0:14:04.520 --> 0:14:07.240
<v Speaker 1>of income protection insurance. What role do they play here

0:14:07.960 --> 0:14:08.840
<v Speaker 1>really important?

0:14:08.880 --> 0:14:10.840
<v Speaker 2>You know, it's the other side. We always talk about

0:14:10.880 --> 0:14:15.080
<v Speaker 2>wealth creation. This is about wealth protection. So you know,

0:14:15.160 --> 0:14:18.200
<v Speaker 2>it's a policy, like an income protection policy pays up

0:14:18.200 --> 0:14:20.080
<v Speaker 2>to seventy five percent of your income if you can't

0:14:20.120 --> 0:14:23.240
<v Speaker 2>work due to a medical reason. That means that if

0:14:23.280 --> 0:14:26.400
<v Speaker 2>you get sick and you cannot work because you've got

0:14:26.440 --> 0:14:28.960
<v Speaker 2>to recover, you've got to do treatment, insurance company is

0:14:29.000 --> 0:14:31.280
<v Speaker 2>going to help give you, will give you the money

0:14:31.280 --> 0:14:33.520
<v Speaker 2>seventy five percent of your income, which is obviously taxable,

0:14:33.680 --> 0:14:36.440
<v Speaker 2>but it means you can maintain you know, the mortgage

0:14:36.480 --> 0:14:38.760
<v Speaker 2>repayments or the rant and keep putting food on the table,

0:14:38.800 --> 0:14:42.360
<v Speaker 2>So again it adds that element of financial stability, and

0:14:42.400 --> 0:14:44.680
<v Speaker 2>then things like trauma cover as well, which is another

0:14:44.680 --> 0:14:48.400
<v Speaker 2>important form of insurance. And then you've got the TVD

0:14:48.520 --> 0:14:51.280
<v Speaker 2>and life power, which we've spoken about another episodes. So

0:14:51.360 --> 0:14:54.720
<v Speaker 2>that's a really important part. But also you're forgetting about

0:14:54.720 --> 0:14:57.640
<v Speaker 2>the importance of you know, a good budget and cash

0:14:57.680 --> 0:15:00.440
<v Speaker 2>throw system because you when you have that, well, you

0:15:00.480 --> 0:15:02.880
<v Speaker 2>also have an element of functional resilience and security because

0:15:02.880 --> 0:15:05.560
<v Speaker 2>you know what your living expenses are and should an

0:15:05.560 --> 0:15:08.360
<v Speaker 2>emergency happen, you know, okay, well we're going to need

0:15:08.360 --> 0:15:10.280
<v Speaker 2>this much money to get through X amount of months

0:15:10.360 --> 0:15:12.120
<v Speaker 2>until we're back on our feet again. As well.

0:15:13.720 --> 0:15:17.800
<v Speaker 1>With income protection insurance, is that mostly for if you

0:15:18.080 --> 0:15:21.600
<v Speaker 1>injure yourself or there is something that's preventing you from

0:15:21.600 --> 0:15:26.280
<v Speaker 1>doing your job or does it still exist if you

0:15:26.840 --> 0:15:30.280
<v Speaker 1>lose your job, are you able to still receive income

0:15:30.360 --> 0:15:31.560
<v Speaker 1>protection payments? Then?

0:15:31.920 --> 0:15:35.080
<v Speaker 2>Unfortunately, no, it is related to a medical reason, so

0:15:35.440 --> 0:15:39.080
<v Speaker 2>whether it be an injury like an accident or an illness.

0:15:39.880 --> 0:15:42.680
<v Speaker 2>And I believe this is an old step, but I

0:15:42.720 --> 0:15:46.480
<v Speaker 2>believe in the claims only five percent of the claims

0:15:46.480 --> 0:15:48.760
<v Speaker 2>are actually related to an accident. Most of the claims

0:15:48.760 --> 0:15:52.080
<v Speaker 2>are related to illnesses, right, yeah, which is interesting.

0:15:52.200 --> 0:15:56.560
<v Speaker 1>That is okay, where do you find that balance between

0:15:56.720 --> 0:16:01.480
<v Speaker 1>kind of reducing your expenses and building up savings kind

0:16:01.480 --> 0:16:04.880
<v Speaker 1>of is the goal here really to try and maintain

0:16:05.080 --> 0:16:08.359
<v Speaker 1>your lifestyle that if you were to lose your job tomorrow.

0:16:09.480 --> 0:16:12.360
<v Speaker 1>Is it about cutting back all of your expenses and

0:16:12.400 --> 0:16:16.680
<v Speaker 1>trying to kind of minimize things, or should the priority

0:16:16.720 --> 0:16:18.400
<v Speaker 1>be to build up your safety net so that you

0:16:18.440 --> 0:16:22.560
<v Speaker 1>can maintain your lifestyle in the event of your having

0:16:22.760 --> 0:16:23.840
<v Speaker 1>a period of unemployment.

0:16:24.320 --> 0:16:26.960
<v Speaker 2>I think it's very situational. Okay, So if you know

0:16:27.040 --> 0:16:31.120
<v Speaker 2>that there are warning signs that your job is in jeopardy,

0:16:32.000 --> 0:16:35.520
<v Speaker 2>you should definitely be prioritizing building up that emergency money

0:16:35.520 --> 0:16:38.360
<v Speaker 2>as quickly as possible, which means obviously going back to

0:16:38.400 --> 0:16:41.040
<v Speaker 2>the budget, looking at what you can temporarily cut out

0:16:41.080 --> 0:16:43.440
<v Speaker 2>or cut down, and then redirecting those funds to a

0:16:43.440 --> 0:16:47.120
<v Speaker 2>separate savings account, a redow facility or an offset account

0:16:47.120 --> 0:16:49.080
<v Speaker 2>is a great way to hold that money if you

0:16:49.120 --> 0:16:51.760
<v Speaker 2>have a home. But if you're sitting in a safe,

0:16:51.760 --> 0:16:54.800
<v Speaker 2>secure position, you think, well, okay, I get it, I

0:16:54.840 --> 0:16:56.680
<v Speaker 2>do need emergency money, don't have any I need to

0:16:56.680 --> 0:16:59.600
<v Speaker 2>get started. Just look at your budget and set up

0:16:59.600 --> 0:17:02.400
<v Speaker 2>a regular savings plan, for example, two hundred dollars per

0:17:02.440 --> 0:17:04.439
<v Speaker 2>week if you can afford that, Because by the end

0:17:04.480 --> 0:17:06.680
<v Speaker 2>of the year, if you're automated and you stick to it,

0:17:06.880 --> 0:17:10.239
<v Speaker 2>there's ten thousand dollars sitting in that account, which you

0:17:10.280 --> 0:17:13.160
<v Speaker 2>haven't had to think too hard about making happen other

0:17:13.240 --> 0:17:16.320
<v Speaker 2>than programming it and planning it in your budget.

0:17:16.720 --> 0:17:19.560
<v Speaker 1>Okay, is that then the best way to just get

0:17:19.600 --> 0:17:23.679
<v Speaker 1>started in terms of if you're feeling a bit overwhelmed

0:17:23.760 --> 0:17:28.040
<v Speaker 1>hearing this and honestly hearing that emergency money can sometimes

0:17:28.080 --> 0:17:31.679
<v Speaker 1>be fifty sixty seventy thousand dollars sitting in an account.

0:17:32.200 --> 0:17:36.840
<v Speaker 1>I understand that would be overwhelming to hear that, But

0:17:36.920 --> 0:17:40.159
<v Speaker 1>how do you build that security without feeling overwhelmed by it?

0:17:40.480 --> 0:17:44.199
<v Speaker 2>So you just focus on short term, small amounts of money.

0:17:44.240 --> 0:17:47.200
<v Speaker 2>So you would say yourself, Okay, by the end of

0:17:47.560 --> 0:17:49.879
<v Speaker 2>July twenty twenty six, I want to have a thousand

0:17:49.920 --> 0:17:53.440
<v Speaker 2>dollars saved up. And then once you've got that thousand dollars,

0:17:53.520 --> 0:17:55.280
<v Speaker 2>you then do the same process again. You go, ok well,

0:17:55.280 --> 0:17:56.560
<v Speaker 2>I want to take it from a thousand dollars to

0:17:56.560 --> 0:17:59.920
<v Speaker 2>fifteen hundred dollars. But if you invest some time can

0:18:00.119 --> 0:18:03.160
<v Speaker 2>understanding what that money represents, you know the why behind

0:18:03.200 --> 0:18:05.240
<v Speaker 2>that money. It's not just a oh my gosh, I've

0:18:05.240 --> 0:18:07.560
<v Speaker 2>got to have ten thousand dollars emergency money. It's actually

0:18:08.080 --> 0:18:10.160
<v Speaker 2>I'm building this because this is going to make sure

0:18:10.200 --> 0:18:12.760
<v Speaker 2>that I don't go back financially, I don't undo all

0:18:12.760 --> 0:18:14.240
<v Speaker 2>of the hard work that I've done with my own

0:18:14.240 --> 0:18:16.720
<v Speaker 2>financial journey so far. Will you'll take it a lot

0:18:16.720 --> 0:18:18.760
<v Speaker 2>more seriously, and you'll also be because of that, a

0:18:18.800 --> 0:18:22.080
<v Speaker 2>lot more open to opportunities to save more money, to

0:18:22.080 --> 0:18:24.040
<v Speaker 2>put more money into that sooner so that you can

0:18:24.040 --> 0:18:26.240
<v Speaker 2>actually tip that box off and then go back to

0:18:26.800 --> 0:18:29.159
<v Speaker 2>all the other things that actually add value to our

0:18:29.200 --> 0:18:33.200
<v Speaker 2>lives financially, but also add further financial resilience through something

0:18:33.280 --> 0:18:34.000
<v Speaker 2>like investing.

0:18:34.359 --> 0:18:38.199
<v Speaker 1>Okay, So one thing, then, if someone's listening to this,

0:18:38.600 --> 0:18:42.399
<v Speaker 1>they can start right now in order to improve the

0:18:42.440 --> 0:18:45.439
<v Speaker 1>financial safety nets that they have around them is just

0:18:45.760 --> 0:18:47.720
<v Speaker 1>to start saving.

0:18:47.640 --> 0:18:50.240
<v Speaker 2>Small amounts of money on a regular basis, that habit,

0:18:50.359 --> 0:18:53.879
<v Speaker 2>that consistency, and that will build and compound into a

0:18:53.960 --> 0:18:56.480
<v Speaker 2>decent savings amount. And I mean, as I said, it

0:18:56.520 --> 0:18:58.239
<v Speaker 2>took I think eight years for us to build up

0:18:58.240 --> 0:18:59.600
<v Speaker 2>that emergency money. Yeah.

0:19:00.000 --> 0:19:03.080
<v Speaker 1>The other good piece of advice would probably be to

0:19:03.119 --> 0:19:07.960
<v Speaker 1>get your house sprayed for pervert cockroaches that attack you

0:19:08.119 --> 0:19:09.639
<v Speaker 1>when you are most vulnerable.

0:19:09.800 --> 0:19:11.880
<v Speaker 2>It's a real trigger every time I see a cockroach.

0:19:12.160 --> 0:19:15.640
<v Speaker 1>I'm not surprised. That sounds most traumatic. All right, if

0:19:15.680 --> 0:19:19.840
<v Speaker 1>anybody wants more information, also, actually sorry, I will mention

0:19:19.920 --> 0:19:24.320
<v Speaker 1>before we go too far. Financial planners, this is something

0:19:24.359 --> 0:19:29.000
<v Speaker 1>that you specialize in, that building these safety nets and

0:19:29.160 --> 0:19:32.520
<v Speaker 1>ensuring that the emergency money is there, but that you

0:19:32.560 --> 0:19:35.720
<v Speaker 1>have the right combination of insurances in place. That a

0:19:35.800 --> 0:19:40.000
<v Speaker 1>financial planner. The value of speaking to a professional here,

0:19:40.359 --> 0:19:41.400
<v Speaker 1>it is extraordinary.

0:19:41.960 --> 0:19:45.439
<v Speaker 2>And the financial planner can be you know, play Devil's

0:19:45.440 --> 0:19:48.320
<v Speaker 2>Out for good and say to you, right, Michael, what

0:19:48.359 --> 0:19:53.040
<v Speaker 2>would happen if this got shut down tomorrow? And what

0:19:53.040 --> 0:19:54.760
<v Speaker 2>would happen if this happened? You know, like they can

0:19:54.800 --> 0:19:59.240
<v Speaker 2>throw scenarios at you, and you know they're quite uncomfortable questions,

0:19:59.240 --> 0:20:01.560
<v Speaker 2>but it does make you really wow. I hadn't thought

0:20:01.560 --> 0:20:04.400
<v Speaker 2>of those risks, and yes there are real risks, and

0:20:04.600 --> 0:20:06.679
<v Speaker 2>I want to protect myself and my found me against

0:20:06.680 --> 0:20:10.280
<v Speaker 2>these things from happening. No, no, one has ever regretted

0:20:10.400 --> 0:20:11.960
<v Speaker 2>having emergency money? Ye indeed?

0:20:12.119 --> 0:20:15.640
<v Speaker 1>Okay for you more information, where do we find you?

0:20:15.960 --> 0:20:18.159
<v Speaker 2>The best place you can contact with me directly is

0:20:18.200 --> 0:20:19.960
<v Speaker 2>through Instagram at Sugar Mama TV.

0:20:20.040 --> 0:20:22.320
<v Speaker 1>And you can hear me every day with Sean Aylmer

0:20:22.400 --> 0:20:24.880
<v Speaker 1>on Fear and Greed business news you can use. Thank

0:20:24.960 --> 0:20:26.840
<v Speaker 1>you for listening to how do they afford that? Remember

0:20:26.840 --> 0:20:28.879
<v Speaker 1>to hit follow on the podcast. And the best thing

0:20:28.880 --> 0:20:31.520
<v Speaker 1>you can do is actually tell somebody else, perhaps send

0:20:31.560 --> 0:20:34.880
<v Speaker 1>them a link to this episode and help spread the word.

0:20:34.920 --> 0:20:36.760
<v Speaker 1>Thanks for your company. Join us again next week