WEBVTT - The Best Finance Hack We Have Ever Heard (ft. Victoria Devine) 0:00:04.200 --> 0:00:07.120 Hi, I'm Britney Saunders and welcome to Big Business, the 0:00:07.160 --> 0:00:09.200 place where business is far from boring. 0:00:09.240 --> 0:00:11.399 And today I'm recording on gadigal Land. 0:00:11.880 --> 0:00:15.000 I somehow manage to build an empire from the garage 0:00:15.080 --> 0:00:17.759 underneath my house, and I'm here on Big Business to 0:00:17.840 --> 0:00:21.279 share it all with you, from the wins, the huge mistakes, 0:00:21.520 --> 0:00:25.040 the challenging times and the funny moments in between. So 0:00:25.120 --> 0:00:28.200 whether you're in business already, you're not in the game 0:00:28.240 --> 0:00:30.800 at all, or you simply just want to hear some 0:00:30.960 --> 0:00:34.240 tea or get some inspiration, this is the podcast for you. 0:00:34.680 --> 0:00:37.640 Coming up on today's episode, I am joined by yet 0:00:37.680 --> 0:00:40.760 another special guest. Today I'm going to be chatting with 0:00:40.880 --> 0:00:47.200 Victoria Divine. Victoria is a multi award winning retired financial advisor, 0:00:47.680 --> 0:00:51.080 a best selling author of five books. She's a financial 0:00:51.120 --> 0:00:54.640 columnist for The Age and Sydney Morning Herald and she's 0:00:54.720 --> 0:00:58.720 host of Australia's number one finance podcast, She's On the Money. 0:00:58.920 --> 0:01:02.000 Victoria is also the founder of Zella Money, which is 0:01:02.000 --> 0:01:05.800 an Australia wide mortgage broking and asset finance company. 0:01:06.160 --> 0:01:07.319 She has been named in. 0:01:07.280 --> 0:01:10.240 The Forbes thirty Under thirty list in the past and 0:01:10.600 --> 0:01:14.560 is a driven entrepreneur who seeks to empower individuals on 0:01:14.600 --> 0:01:20.479 their financial journeys and make finance accessible for everyone. She's honest, relatable, 0:01:20.800 --> 0:01:25.199 and non judgmental. Victoria knows what millennial life is really 0:01:25.319 --> 0:01:26.880 like and where we can get. 0:01:26.720 --> 0:01:28.080 Stuck with money stuff. 0:01:28.720 --> 0:01:30.920 You're gonna want to get your notepads and pens all 0:01:31.000 --> 0:01:33.319 your phones out for this episode because she has shared 0:01:33.640 --> 0:01:36.120 a whole lot of wisdom and tips with us, and 0:01:36.160 --> 0:01:38.080 stick around to the end because she has given us 0:01:38.120 --> 0:01:41.399 all I think one of the most slay life hacks 0:01:41.440 --> 0:01:43.360 I have heard in a very long time. 0:01:43.880 --> 0:01:46.280 Victoria, Welcome to Big Business. 0:01:46.560 --> 0:01:49.640 Thank you for having me. I'm really excited about this chat. 0:01:49.760 --> 0:01:51.600 I feel like we've taken terms because I came on 0:01:51.640 --> 0:01:54.360 your podcast a couple of weeks ago, but you weren't there. 0:01:54.960 --> 0:01:57.360 No, which is kind of funny, but like, thank you 0:01:57.440 --> 0:02:01.080 for being my maternity leaves cover. I feel like we 0:02:01.160 --> 0:02:04.600 picked really, really well. When we sat down my team 0:02:04.600 --> 0:02:07.080 a l V like, if you're going away, we could 0:02:07.120 --> 0:02:08.800 you know, have guest hosts And I was like, oh, 0:02:08.840 --> 0:02:10.799 that would be really fun, and they were like, write 0:02:10.840 --> 0:02:12.880 a list of who you'd want, and you were like, 0:02:13.040 --> 0:02:14.640 very close to the top, and I kind of did 0:02:14.680 --> 0:02:16.560 a little squeal when you said yes, because I was like, 0:02:16.880 --> 0:02:20.519 she actually said yes. How cool is that boys say yes? 0:02:20.600 --> 0:02:21.040 I love that. 0:02:21.080 --> 0:02:23.640 And I had such a great time chatting with your team. 0:02:23.680 --> 0:02:25.520 And if any of you listening haven't heard that, feel 0:02:25.560 --> 0:02:28.079 free to go over after this. After you finished this episode, 0:02:28.120 --> 0:02:30.280 of course, head on over to She's on the Money 0:02:30.280 --> 0:02:32.200 and listen to my episode. I had a great time 0:02:32.240 --> 0:02:34.760 talking with your team. We could have chatted for hours. 0:02:35.120 --> 0:02:38.560 I'm biased, but my team are great. I mean, I 0:02:38.639 --> 0:02:40.600 was a little bit worried that i'd come back and 0:02:40.639 --> 0:02:44.120 then realized that they didn't need me on the show anymore. 0:02:44.320 --> 0:02:45.560 We've got this, We're fine. 0:02:45.720 --> 0:02:48.360 Yeah. So, I mean, I'm grateful that they've welcomed me 0:02:48.440 --> 0:02:51.560 back with open arms, but good. I did love the 0:02:51.600 --> 0:02:52.280 guest series. 0:02:52.600 --> 0:02:54.679 Yeah, I had such a blast. I'll have to come 0:02:54.680 --> 0:02:57.600 back on another time with you though, if any time. 0:02:57.960 --> 0:03:01.040 We are definitely revamping our business by episodes, and I 0:03:01.040 --> 0:03:03.720 feel like you and I are probably on the same 0:03:03.760 --> 0:03:06.320 page when it comes to business, hence me being on 0:03:06.400 --> 0:03:09.600 your business show. Yeah. So, I'm excited to have this chat. 0:03:09.639 --> 0:03:10.880 Feel like it will go really well. 0:03:11.000 --> 0:03:13.200 Oh awesome, well, let's just get straight into it. 0:03:13.240 --> 0:03:16.560 I thought I could start out by asking you a 0:03:16.560 --> 0:03:20.160 simple question, what motivated you to start She's on the 0:03:20.160 --> 0:03:21.960 Money podcast and the community. 0:03:22.560 --> 0:03:25.080 I want to say that it was like this massive 0:03:25.200 --> 0:03:28.000 lack of financial literacy and I could see it, and 0:03:28.040 --> 0:03:30.240 you know, it was palpable, but it was a little 0:03:30.240 --> 0:03:34.080 bit selfish. Historically, I have gotten myself into a massive 0:03:34.080 --> 0:03:37.160 amount of debt, so like from a personal perspective, and 0:03:37.200 --> 0:03:40.240 this is you know, common knowledge. I got into just 0:03:40.320 --> 0:03:43.560 over thirty five thousand dollars worth of personal debt when 0:03:43.600 --> 0:03:46.480 I was really young, and so I started learning about 0:03:46.520 --> 0:03:48.520 finance and trying to get myself out of that. And 0:03:48.560 --> 0:03:51.800 I guess She's on the Money is a culmination of 0:03:51.920 --> 0:03:54.720 all of that, not knowing where to go, having really 0:03:54.840 --> 0:03:58.800 bad experiences with males in the industry, being overlooked when 0:03:58.840 --> 0:04:01.440 it came to being and seriously, when I was like, oh, 0:04:01.440 --> 0:04:03.560 I want to learn about investing in people, being like, oh, 0:04:03.640 --> 0:04:06.240 you're a girl, what would you know? So I just 0:04:06.920 --> 0:04:08.880 it was a lot of things that kind of came 0:04:08.920 --> 0:04:11.320 together for me to create She's on the Money. And yes, 0:04:11.360 --> 0:04:14.760 a lack of financial literacy was absolutely the driving motivator, 0:04:14.760 --> 0:04:16.560 but I didn't know it at the time. I feel 0:04:16.600 --> 0:04:18.719 like when you talk to lots of people, they're not like, oh, 0:04:18.760 --> 0:04:21.800 I had this really great, really clean business idea and 0:04:21.839 --> 0:04:24.800 it just worked. I didn't know that She's on the 0:04:24.800 --> 0:04:26.960 Money would become a business. Like at the time, I 0:04:27.040 --> 0:04:29.479 was running my financial advice business and She's on the 0:04:29.480 --> 0:04:32.200 Money was this like love project on the side that 0:04:32.279 --> 0:04:33.720 I was like, Oh, if I invest a little bit 0:04:33.720 --> 0:04:36.200 of money, I don't expect it to come back, but 0:04:36.240 --> 0:04:38.680 I expect to have a good time doing it. And 0:04:38.760 --> 0:04:42.400 so it was a beautiful experience pulling it all together. 0:04:42.640 --> 0:04:45.560 And it definitely comes from a lack of financial literacy 0:04:45.600 --> 0:04:48.320 in Australia and me seeing that gap. But I guess 0:04:48.400 --> 0:04:51.159 in hindsight it's a lot clearer than what it was 0:04:51.200 --> 0:04:52.520 at the time. At the time, I was like, I 0:04:52.560 --> 0:04:55.000 want to put out content that I would want to experience, 0:04:55.600 --> 0:04:57.120 and I guess that's where we ended. 0:04:57.440 --> 0:04:58.400 I absolutely love that. 0:04:58.440 --> 0:05:01.799 I think what you're doing is so importan because I 0:05:01.839 --> 0:05:05.120 totally agree that there isn't enough out there, especially for 0:05:05.160 --> 0:05:08.080 women when it comes to understanding their finances. And I 0:05:08.120 --> 0:05:10.800 even say to this day, like my partner aj he 0:05:10.960 --> 0:05:13.200 does a lot of the finance side of our business, 0:05:13.240 --> 0:05:15.680 and sometimes people ask me questions, you know, people in 0:05:15.720 --> 0:05:16.279 our workplace. 0:05:16.279 --> 0:05:18.120 I'm like, ohkay j I don't freaking know how any 0:05:18.120 --> 0:05:18.640 of that works. 0:05:18.640 --> 0:05:20.599 So I feel like I am even going to take 0:05:20.640 --> 0:05:23.280 a lot away from this episode with you. And I 0:05:23.320 --> 0:05:25.760 love that you mentioned that, you know, when you started 0:05:25.839 --> 0:05:27.960 Cheese on the Money, it was just this little side 0:05:28.000 --> 0:05:30.560 thing that you didn't really think that much about, and 0:05:30.560 --> 0:05:33.320 now you've got this, you know, booming business and community. 0:05:33.360 --> 0:05:35.680 And this is something that I always talk about here 0:05:35.960 --> 0:05:39.360 on big businesses. When you start a business, it doesn't 0:05:39.400 --> 0:05:43.640 have to be this fantastic, amazing, big grand plan idea. 0:05:44.080 --> 0:05:46.440 It can be something quite small that you think not 0:05:46.560 --> 0:05:48.920 that much of and it very well may just turn 0:05:48.960 --> 0:05:51.159 into a big business pun intended. 0:05:51.680 --> 0:05:54.640 Yeah, literally, I didn't think it would make money. And 0:05:54.680 --> 0:05:57.840 I mean, if we go back five years podcasting, like, 0:05:57.880 --> 0:06:00.520 what is that like, it wasn't really a thing, the 0:06:00.600 --> 0:06:04.120 idea that even you know, radio networks would pick you up. No, 0:06:04.240 --> 0:06:07.760 that was insane at the time, Like I couldn't foresee 0:06:07.839 --> 0:06:11.000 what this industry would become when it comes to podcasting 0:06:11.080 --> 0:06:13.920 and content creation. But I'm just I'm glad that I 0:06:14.000 --> 0:06:15.880 was there from the beginning because I don't know if 0:06:15.880 --> 0:06:16.920 it would work today. 0:06:18.640 --> 0:06:20.440 I love it. Well, I guess. 0:06:20.480 --> 0:06:22.599 To kick things off, I'm going to ask you the question, 0:06:23.200 --> 0:06:27.240 why is financial planning so important when it comes to 0:06:27.320 --> 0:06:28.440 starting a business? 0:06:28.960 --> 0:06:32.520 Oh my gosh, it's it's like the foundations of what 0:06:32.680 --> 0:06:35.080 you're going to create, right, And I feel like so 0:06:35.200 --> 0:06:37.920 many of us, especially when we get into business, we're 0:06:37.920 --> 0:06:41.560 a little bit creative. We are really passionate about our ideas, 0:06:42.000 --> 0:06:45.039 and we want to focus on the output, not necessarily 0:06:45.080 --> 0:06:48.719 those like foundational steps, like no one that I know, 0:06:49.600 --> 0:06:52.080 and perhaps I need a different group of friends who knows. 0:06:52.440 --> 0:06:54.400 No one that I know that has a business has 0:06:54.400 --> 0:06:56.919 actually had a really solid business plan from the start. 0:06:57.000 --> 0:06:58.640 Like they don't sit down and go to the government 0:06:58.640 --> 0:07:00.760 website and download the business plan and ride out their 0:07:00.800 --> 0:07:04.560 formal documentation. And they also don't do the same stuff 0:07:04.560 --> 0:07:07.400 when it comes to financial planning either. You kind of 0:07:07.440 --> 0:07:10.040 just wing it. And a lot of small business owners 0:07:10.200 --> 0:07:15.720 start their business by using their personal accounts, and you know, going, oh, well, 0:07:15.760 --> 0:07:17.320 you know, I don't know if this will be a thing. 0:07:17.360 --> 0:07:19.840 You might, you know, start really small, and you're like, oh, 0:07:19.840 --> 0:07:21.880 it's fifty bucks here and there, like, Oh, I'm just 0:07:21.920 --> 0:07:24.000 going to sign up for a website. Oh, I haven't 0:07:24.040 --> 0:07:27.400 started my business accounts. I'm just going to fund it personally, 0:07:27.400 --> 0:07:31.160 and it just becomes really messy. So it's really important 0:07:31.240 --> 0:07:34.680 to start really cleanly. And I do feel like if 0:07:34.680 --> 0:07:36.800 you're going to start a business, one of the best 0:07:36.800 --> 0:07:38.800 ways to back yourself is to go, you know what, 0:07:38.960 --> 0:07:41.360 I am going to get a business banking account. I 0:07:41.400 --> 0:07:43.520 am going to separate this. I am going to care 0:07:43.560 --> 0:07:46.920 about tax from the start because albeit not sexy, like 0:07:47.160 --> 0:07:49.640 I'm trying so hard to make it sexy, like that's 0:07:49.640 --> 0:07:51.840 what she's on the money is about, but it's not 0:07:52.080 --> 0:07:53.720 sexy at the end of the day. But it's those 0:07:54.000 --> 0:07:58.400 foundations that you need to have a successful business long term, 0:07:58.680 --> 0:08:02.040 and finance is the thing that becomes the stumbling block 0:08:02.160 --> 0:08:04.840 to get from small business to big business. So I 0:08:04.840 --> 0:08:07.240 feel like if we start cleanly at the start, it 0:08:07.240 --> 0:08:09.160 doesn't mean you need to go pay for lots of 0:08:09.440 --> 0:08:12.360 financial advice and you're not paying thousands of dollars to 0:08:12.440 --> 0:08:14.760 an advisor, but you are going, all right, well, what 0:08:14.760 --> 0:08:17.200 does my financial planning look like? Am I going to 0:08:17.520 --> 0:08:19.560 get a business account. Don't get me wrong. You might 0:08:19.680 --> 0:08:23.200 have absolutely no cash because the business isn't making anything. 0:08:23.400 --> 0:08:26.000 But what that does is it means you can transfer 0:08:26.240 --> 0:08:30.080 personally still over to your business, but you can keep 0:08:30.240 --> 0:08:32.920 track of that money and pay it back to yourself, 0:08:32.960 --> 0:08:35.640 but also have a really clean outline of what that 0:08:35.679 --> 0:08:39.160 business is costing you, what are the incomings and outgoings 0:08:39.400 --> 0:08:42.320 for this business, so everything is just super clean from 0:08:42.320 --> 0:08:44.440 the beginning. Because that's going to make your life so 0:08:44.679 --> 0:08:47.480 much easier. But it's also going to make life easier 0:08:47.480 --> 0:08:49.680 when it comes to scaling. It's going to make life 0:08:49.760 --> 0:08:53.199 easier when it comes to making big business decisions because 0:08:53.200 --> 0:08:56.080 even if you don't have fancy accounting software, you can go, well, 0:08:56.120 --> 0:08:58.600 can I afford to make this decision? Like what would 0:08:58.640 --> 0:09:02.000 adding another product to our business actually look like? And 0:09:02.040 --> 0:09:04.040 you've got all the numbers in front of you, instead 0:09:04.040 --> 0:09:05.840 of going, oh, I need to sort through that. Oh 0:09:05.840 --> 0:09:07.599 there's a whole heap of vopber eats charges on this 0:09:07.720 --> 0:09:10.040 credit card as well as oh, yeah, I did pay 0:09:10.240 --> 0:09:12.720 you know that subscription to my website, and I did 0:09:12.760 --> 0:09:15.559 pay that subscription to you know, internet security or whatever 0:09:15.600 --> 0:09:18.960 it is. But like they become messy and messy is 0:09:19.000 --> 0:09:21.120 not good when it comes to trying to make a 0:09:21.160 --> 0:09:22.240 successful business. 0:09:22.640 --> 0:09:24.400 Yeah. I absolutely love that, and I think it's so 0:09:24.760 --> 0:09:28.840 true what you said. When someone is starting out a business, 0:09:28.920 --> 0:09:31.880 you are feeling really creative and passionate, and you're like, yeah, 0:09:31.920 --> 0:09:33.480 I want to do this, like you get that idea 0:09:33.480 --> 0:09:36.280 in your head, but it is so important to do 0:09:36.320 --> 0:09:38.560 all that unsexy stuff at the beginning. 0:09:38.760 --> 0:09:39.600 Yeah, it's not fun. 0:09:39.840 --> 0:09:41.360 Yeah, you're like, oh, I don't want to set up 0:09:41.360 --> 0:09:44.360 not in a register, my aba. Yeah. All like even 0:09:44.400 --> 0:09:47.200 as when we like open a new store, like we'll 0:09:47.200 --> 0:09:49.280 make a new bank account for that store so that 0:09:49.280 --> 0:09:52.080 we can keep all the stores funds separate. And we're 0:09:52.120 --> 0:09:54.439 opening a new store, like we're in the process now 0:09:54.480 --> 0:09:55.920 and I'm like, oh, I got to go to the 0:09:55.960 --> 0:09:57.640 bank and set up the new bank account. 0:09:57.640 --> 0:09:58.720 It's just those things. 0:09:58.800 --> 0:09:59.000 I mean. 0:09:59.520 --> 0:10:02.840 Yeah, the bigger you get as a business, the more 0:10:02.880 --> 0:10:06.160 administration you have to do. Yes, And it's so annoying 0:10:06.200 --> 0:10:08.280 because you want to delegate it out as well, but 0:10:08.400 --> 0:10:09.760 like the business owner has. 0:10:09.640 --> 0:10:10.120 To do I know. 0:10:10.280 --> 0:10:12.680 I you go to the bank and I'm like, can't 0:10:12.720 --> 0:10:15.719 age I go like, you know, somebody who cares more 0:10:15.720 --> 0:10:18.280 about this do this for me, Yeah, but it is 0:10:18.360 --> 0:10:20.200 so important. I really want to stress to all of 0:10:20.200 --> 0:10:23.440 you entrepreneurs out there or new business owners, you really 0:10:23.440 --> 0:10:25.800 do need to get your finances in order. You're going 0:10:25.880 --> 0:10:28.560 to set yourself up for success in the future. As 0:10:28.600 --> 0:10:30.960 boring and annoying as it is in all the numbers, 0:10:31.559 --> 0:10:35.280 like you said, it is that foundation for your business. 0:10:35.440 --> 0:10:38.120 And if you're backing your business right, like if you 0:10:38.400 --> 0:10:40.680 are from the very get go going, I'm going to 0:10:40.679 --> 0:10:42.760 set up a business account, I'm going to get my 0:10:43.520 --> 0:10:45.439 ABN in order, I'm going to have a think about 0:10:45.440 --> 0:10:48.600 the structure. All these things are so unsexy, but what 0:10:48.640 --> 0:10:52.280 they're telling you internally is this is serious. This is 0:10:52.360 --> 0:10:55.960 actually legitimate. This is me going. No, I have every 0:10:56.000 --> 0:10:59.000 belief that this business is going to be successful. Whereas 0:10:59.080 --> 0:11:02.240 if you're just it with your personal bank accounts, you're 0:11:02.320 --> 0:11:04.440 kind of not backing the business in the way that 0:11:04.480 --> 0:11:07.800 it deserves to be backed to be successful because you're like, oh, 0:11:07.800 --> 0:11:09.240 it might not work out, Like I don't want to 0:11:09.240 --> 0:11:11.800 bother with that, Like that's not the mentality we want 0:11:11.800 --> 0:11:13.880 to have. No, you want to take it seriously from 0:11:13.880 --> 0:11:17.280 the get go, exactly serious business, ladies. 0:11:17.000 --> 0:11:19.040 We are absolutely well. 0:11:19.080 --> 0:11:20.800 This leads me on to my next question, which I 0:11:20.880 --> 0:11:23.439 have been asked a lot, and I feel like it's 0:11:23.480 --> 0:11:25.680 a really tricky one to answer it. Maybe with your 0:11:25.720 --> 0:11:28.400 financial literacy you might be able to give a better answer, 0:11:28.840 --> 0:11:31.320 but in your opinion, and I know it depends on 0:11:31.360 --> 0:11:34.760 the business, but how much do you think that entrepreneurs 0:11:34.880 --> 0:11:38.000 should save up before starting any business? 0:11:38.760 --> 0:11:42.840 So again, it's exactly what you said, it's a really good. 0:11:43.800 --> 0:11:46.280 Are you making ribbons at home or are you're opening 0:11:46.320 --> 0:11:46.840 a cafe? 0:11:46.880 --> 0:11:49.400 Like obviously it's going to be different, Like I can't 0:11:49.400 --> 0:11:53.360 say four dollars and I can't give you a certain amount, 0:11:53.360 --> 0:11:54.800 But what I would do is go back to the 0:11:54.880 --> 0:11:57.360 drawing board, Like, let's look at your lifestyle. Like, Britt, 0:11:57.720 --> 0:12:00.520 you don't have kids, so the amount that you need 0:12:00.600 --> 0:12:02.720 is probably very different to the amount that I would 0:12:02.800 --> 0:12:04.880 need if I was starting from scratch today, because if 0:12:04.920 --> 0:12:08.040 you look at my lifestyle, you go, well, Victoria, you 0:12:08.040 --> 0:12:10.800 have a husband, you have a mortgage, you have a child. 0:12:10.880 --> 0:12:13.640 That's a lot of responsibility. So for me to take 0:12:13.679 --> 0:12:16.920 that step and you know, be an entrepreneur and step 0:12:17.000 --> 0:12:19.640 out and back myself in business, I feel like I 0:12:19.679 --> 0:12:21.720 need a lot more of a safety net than someone 0:12:21.760 --> 0:12:24.240 who's like whatever, it's all good. Like I could be 0:12:24.320 --> 0:12:26.800 a young twenty two year old single female who has 0:12:26.840 --> 0:12:29.040 absolutely no dependence and I get to live at home. 0:12:29.280 --> 0:12:31.040 So the amount that you need to save up to 0:12:31.240 --> 0:12:34.040 start a business is going to be very different. One 0:12:34.080 --> 0:12:36.160 thing that I say to a lot of business owners 0:12:36.280 --> 0:12:39.199 is you can actually do so much research for free 0:12:39.320 --> 0:12:42.240 before you even spend a dollar. So go and do 0:12:42.360 --> 0:12:45.720 the research. Like, let's just be really basic about this. 0:12:45.760 --> 0:12:47.719 You're going to start a product based business and you're 0:12:47.720 --> 0:12:50.120 not making the product yourself. You're going to get a 0:12:50.160 --> 0:12:52.960 manufacturer in China to do it right, So you can 0:12:53.000 --> 0:12:54.760 go and do the research of what's it going to 0:12:54.800 --> 0:12:57.400 cost to establish your website, what's it going to cost 0:12:57.440 --> 0:13:00.720 you to potentially start social media, how's that going to work? 0:13:00.960 --> 0:13:03.720 And these are fickle things because you might be a 0:13:03.760 --> 0:13:06.480 wizard at social media on your own, or you might 0:13:06.559 --> 0:13:08.520 really suck at it and need a whole heap of 0:13:08.559 --> 0:13:11.560 budget behind paying someone to help you with that. So 0:13:11.760 --> 0:13:13.920 the amount that you need to save is different. You 0:13:13.960 --> 0:13:16.679 can reach out to manufacturers overseas and see what their 0:13:16.720 --> 0:13:18.520 costs are going to be. You can work out what 0:13:18.640 --> 0:13:21.320 a product is going to cost you to import. You 0:13:21.360 --> 0:13:24.120 can do all this research and create a beautiful spreadsheet, 0:13:24.240 --> 0:13:25.880 but then on the flip side, I need you to 0:13:25.880 --> 0:13:28.319 look at your living expenses and go, all right, well, 0:13:28.320 --> 0:13:30.880 if I'm going to start putting my all into this 0:13:30.960 --> 0:13:34.800 business that's not making any profit yet, how many savings 0:13:34.800 --> 0:13:36.840 do I need to the side. And that's where the 0:13:36.840 --> 0:13:39.680 difference between a twenty two year old single female and 0:13:39.720 --> 0:13:41.760 then Victoria in a thirties with a kid and a 0:13:41.800 --> 0:13:44.280 mortgage is going to come into it, because you could 0:13:44.320 --> 0:13:45.880 be living at home and your mum and dad are like, 0:13:46.040 --> 0:13:48.760 oh my gosh, slag queen, we'll look after and we'll 0:13:48.760 --> 0:13:52.000 look after you go live your best life. Whereas me, 0:13:52.120 --> 0:13:54.680 I'm like, okay, well I would need to save enough 0:13:54.720 --> 0:13:57.640 to you know, kick this off for you know, six months, 0:13:57.640 --> 0:13:59.439 Like how long do I think it's going to take 0:13:59.520 --> 0:14:03.400 until this business creates enough profit for me to cover myself? 0:14:03.720 --> 0:14:07.320 So that amount is going to be very different based 0:14:07.320 --> 0:14:10.480 on personal circumstances. But I guess the answer there is 0:14:10.559 --> 0:14:13.280 do a budget, have a look at what your expenses 0:14:13.280 --> 0:14:15.480 are going to be. For me, like I own a 0:14:15.480 --> 0:14:19.520 mortgage broking company, right, so profit in my business actually 0:14:19.560 --> 0:14:22.520 takes a long time to come through, so lots of 0:14:22.520 --> 0:14:24.680 people don't know this, But from the day that my 0:14:24.960 --> 0:14:27.800 client settles, it's like three months before I get paid 0:14:27.840 --> 0:14:31.040 from the banks. So that needs to be taken into consideration. 0:14:31.440 --> 0:14:34.200 Whereas you know, I might have an online course and 0:14:34.240 --> 0:14:36.240 I actually get the money in my account every time 0:14:36.320 --> 0:14:39.760 a client makes a transaction, So those things need to 0:14:39.800 --> 0:14:42.520 be considered. Do I need a three month buffer? Do 0:14:42.560 --> 0:14:44.200 I need a six month buffer? Do I need to 0:14:44.240 --> 0:14:46.520 be planning to pay my expenses for twelve months while 0:14:46.560 --> 0:14:49.600 this starts off? Or am I planning on working part 0:14:49.640 --> 0:14:51.480 time while building a business on the side. 0:14:51.760 --> 0:14:53.840 So many factors exactly? So many? 0:14:54.160 --> 0:14:56.840 Am I saving a certain amount? Well, no, it would 0:14:56.840 --> 0:14:59.480 actually be wildly irresponsible of us to be like, actually 0:14:59.560 --> 0:15:03.160 the answer twenty thousand dollars, because that might not be 0:15:03.320 --> 0:15:05.720 what your business needs and it might not be what 0:15:05.760 --> 0:15:07.920 your lifestyle needs. So I would go back, do a 0:15:07.920 --> 0:15:10.240 budget for yourself and what that looks like. Do a 0:15:10.240 --> 0:15:12.840 budget for your business and what that's gonna look like, 0:15:13.120 --> 0:15:16.880 and then go from there. Solid advice I try. 0:15:17.600 --> 0:15:20.040 I hope everyone's taking notes, and I think it's also 0:15:20.760 --> 0:15:23.200 tricky for some people that are stepping into business or 0:15:23.240 --> 0:15:26.440 they have this entrepreneurial fire because you do see things 0:15:26.440 --> 0:15:29.880 online and it's one in a million that this would happen. 0:15:29.920 --> 0:15:32.640 But you do see things where people say I started 0:15:32.680 --> 0:15:35.200 my business with two hundred dollars, and you know, it 0:15:35.240 --> 0:15:39.480 can be entitle it can allude to the fact that 0:15:39.520 --> 0:15:41.760 all you need is two hundred dollars and nothing else. 0:15:42.040 --> 0:15:44.680 But like what you've said, there's so many other factors 0:15:44.720 --> 0:15:47.160 that come into play. And some people have gotten really 0:15:47.240 --> 0:15:49.000 lucky and just started with two hundred bucks and a 0:15:49.000 --> 0:15:51.280 small thing that's turned into a billion dollar company. But 0:15:51.560 --> 0:15:52.920 how often is that going to happen? 0:15:53.000 --> 0:15:53.360 Really? 0:15:53.680 --> 0:15:56.480 And also like what's the narrative there, Like what's their 0:15:56.520 --> 0:15:59.480 privilege behind that? Because I could say that, right, So 0:15:59.560 --> 0:16:01.200 I could come out and this is why I hate 0:16:01.240 --> 0:16:03.640 click baity titles. I could come out and be like 0:16:03.680 --> 0:16:07.440 brit I started my you know, seven figure podcast, she's 0:16:07.560 --> 0:16:10.360 on the money with a two hundred dollars microphone and 0:16:10.440 --> 0:16:14.240 a moving blanket. That's absolutely true, Like none of that 0:16:14.480 --> 0:16:17.520 is a lie. But I actually owned a financial advice 0:16:17.600 --> 0:16:20.080 company that was making profit, and I was using that 0:16:20.200 --> 0:16:23.760 profit to start my podcasting business and pay for production 0:16:23.880 --> 0:16:26.400 and pay for all of this other stuff. Is the 0:16:26.440 --> 0:16:29.040 fact that I had a two hundred dollar mic legitimate? Yeah, 0:16:29.080 --> 0:16:30.560 of course it is, And I mean that makes a 0:16:30.560 --> 0:16:34.359 really good story. But is it the reality of this situation? 0:16:34.840 --> 0:16:37.640 And I guess there's just so much that comes into 0:16:37.760 --> 0:16:43.280 it when reading into other people's stories. Where I value transparency, 0:16:43.400 --> 0:16:44.920 but I also think that we need to put our 0:16:44.960 --> 0:16:46.800 blinkers on a little bit and not look at other 0:16:46.840 --> 0:16:50.040 people's journeys as an indicator for what success looks like. 0:16:50.160 --> 0:16:51.760 See it and be like, well, if she can, I 0:16:51.760 --> 0:16:55.320 can do something too. Be inspired, Yeah, be inspired, but 0:16:55.440 --> 0:16:58.320 don't be Yeah, don't think that that's going to be 0:16:58.360 --> 0:16:59.280 your trajectory. 0:16:59.680 --> 0:16:59.880 No. 0:17:00.080 --> 0:17:02.440 That's another thing that I always talk about on this 0:17:02.520 --> 0:17:05.160 podcast is and I say to people, you know, if 0:17:05.160 --> 0:17:07.640 you're in the start of your business journey, don't look 0:17:07.640 --> 0:17:10.560 at me and where I am now and be like, oh, 0:17:10.600 --> 0:17:13.880 like and make that comparison, especially now where we're living 0:17:13.880 --> 0:17:16.440 in this world where there are obviously so many established 0:17:16.720 --> 0:17:19.440 entrepreneurs and businesses online, we have so much to look at. 0:17:19.800 --> 0:17:23.800 It would be tough starting today, like looking and comparing. 0:17:24.200 --> 0:17:27.320 But what people don't see is all the shit at. 0:17:27.240 --> 0:17:30.520 The start, Oh my gosh, yes, and like I'm so 0:17:30.720 --> 0:17:34.480 embarrassed of so much that I got out historically. Absolutely, 0:17:34.600 --> 0:17:37.560 Oh it's awful. Like sometimes I'm like to my team, 0:17:37.600 --> 0:17:39.600 should we delete that? Should we just get rid of 0:17:39.600 --> 0:17:39.840 it that. 0:17:40.080 --> 0:17:41.840 They're like, video is embarrassing archive? 0:17:42.359 --> 0:17:44.560 Yeah, yeah, and they're like, no v it still gets 0:17:44.560 --> 0:17:50.440 good views, and I'm like, yeah, that's the problem. 0:17:46.680 --> 0:17:55.199 What would you say are some common financial mistakes that 0:17:55.280 --> 0:17:57.760 new business owners make not. 0:17:57.800 --> 0:18:01.840 Setting themselves up from this when it comes to having 0:18:01.880 --> 0:18:06.200 that clean banking system. So when I talk about clean 0:18:06.240 --> 0:18:08.800 banking systems, I'm not just talking about having one bank 0:18:08.800 --> 0:18:11.520 account for your business. I don't know how you do it. 0:18:11.680 --> 0:18:16.879 I've got opinions that we need multiple bank accounts. And 0:18:16.960 --> 0:18:19.320 the reason we need a multiple bank accounts is because 0:18:19.440 --> 0:18:21.960