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Speaker 1: We often think that to reach financial freedom you need

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Speaker 1: to earn more. Earning money doesn't actually make you better

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Speaker 1: with money. It's about how you manage what you make.

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Speaker 2: What does the top one percent understand about money that

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Speaker 2: most of us don't.

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Speaker 1: The single easiest way to get.

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Speaker 2: Rich long term is like, hey, everyone, welcome back to

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Speaker 2: on Purpose. Today. I'm sitting down with Niche Shah, former

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Speaker 2: investment banker and accountant who left the traditional path to

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Speaker 2: help millions rethink money, success and freedom. Niche breaks down

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Speaker 2: had of stop letting money anxiety run your life. Niche

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Speaker 2: is a dear friend, and I love welcoming friends to

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Speaker 2: on Purpose. Please welcome Niche Shah. Niche, it's great to

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Speaker 2: have you here.

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Speaker 1: Thank you so much for having me. I was so excited.

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Speaker 2: I want to talk to you about this transition you

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Speaker 2: went through. We know a lot of the same people.

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Speaker 2: For me, going to a good university, getting a good

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Speaker 2: job was like the pinnacle you did that, you achieved that.

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Speaker 2: Why would you leave behind a great job with a

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Speaker 2: great salary.

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Speaker 1: There's so much more to life than following the traditional

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Speaker 1: path where you get a job, qualify, keep going, climbing

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Speaker 1: up the corporate ladder, and there was a point in

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Speaker 1: my life where I felt like I had to really

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Speaker 1: look inwards and ask myself what am I actually doing.

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Speaker 1: For a good part of it, I was really enjoying

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Speaker 1: the banking lifestyle. There was get some glam to it.

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Speaker 1: There was a business trips, there was a status and

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Speaker 1: for a while I convinced myself that this is what

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Speaker 1: I want, This is the life I want to live.

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Speaker 1: And then as I went on, I felt like there

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Speaker 1: was a massive disconnect between what I wanted to do

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Speaker 1: and what I was doing. And I felt as I

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Speaker 1: kept going that misalignment kept getting louder and louder and louder.

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Speaker 1: I had to go through quite a dark phase to

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Speaker 1: understand that this isn't what I wanted. And it was

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Speaker 1: at that point where I had to look inwards and

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Speaker 1: ask myself the difficult questions like am I living a

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Speaker 1: life that I actually want or one that everyone else

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Speaker 1: expects me to live? Am I buying things that I

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Speaker 1: want to buy for myself? Or what I want to

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Speaker 1: show other people that I have. The question that really

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Speaker 1: really changed everything for me was would I still be

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Speaker 1: happy if I was living the same life in five

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Speaker 1: years or ten years time? As I am today. The

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Speaker 1: fear of that was so much greater than the fear

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Speaker 1: of anything that I had to do, and it gave

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Speaker 1: me the confidence to say, no, I'm walking away. I'm

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Speaker 1: walking away from this job, I'm walking away from this lifet,

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Speaker 1: I'm walking from this identity because there's so much more

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Speaker 1: out there for me, and I had a bigger why

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Speaker 1: that overtook anything that that moment had in store for me.

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Speaker 2: I feel like there's probably a lot of people listening

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Speaker 2: right now who are thinking the exact same thing. They've

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Speaker 2: got the traditional degree that they were expected to do,

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Speaker 2: they've got the job. Maybe they're five years in, ten

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Speaker 2: years in, and they're thinking, I'm not in the right place.

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Speaker 2: But you've got all this sunk costs bias, this idea

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Speaker 2: that I spent all those years studying for that all

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Speaker 2: my friends thought this is what I was going to do.

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Speaker 2: Maybe I've even got a partner, maybe I've got children.

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Speaker 2: This isn't the right time to rock the boat, like,

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Speaker 2: talk to me about the bias that we have of

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Speaker 2: I've invested so much time and money into this. Everyone

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Speaker 2: in my life understands this. How could I possibly dream

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Speaker 2: about doing anything different?

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Speaker 1: I mean, it's the hardest thing to do living life

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Speaker 1: because what everyone else has told you to do. But

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Speaker 1: if you don't have the courage to write your own story,

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Speaker 1: someone else will always write it for you. And I

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Speaker 1: think what most people think of as bravery or courage

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Speaker 1: or doing something new and leaving behind what you've created,

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Speaker 1: is actually just having a financial cushion in place and

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Speaker 1: having the safety to be able to walk away from

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Speaker 1: situations you might not like or environments that you might

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Speaker 1: not enjoy. But we put a lot of pressure on

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Speaker 1: ourselves today that we have to do all or nothing.

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Speaker 1: We've got to quit our job and follow our passion.

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Speaker 1: So for someone in that situation or that position, I

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Speaker 1: would say a get your financial cushion in place, because

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Speaker 1: that gives you more peace of mind and sanity than

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Speaker 1: anything else that you could possibly think of. And the

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Speaker 1: second thing I'll say is that when I wanders in banking,

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Speaker 1: there was a lot of comfort that came from having

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Speaker 1: a salary, which let me have a lot of tiny

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Speaker 1: experiments on the side. So it was my evenings, my

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Speaker 1: weekends that I just spent trialing and testing and doing

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Speaker 1: loads and loads of different things. And when you do it,

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Speaker 1: that way you actually look at your job and think, oh,

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Speaker 1: I'm so grateful that I've got this salary coming in

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Speaker 1: that lets me do all these things on the side,

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Speaker 1: without thinking, oh, I've just got to somehow figure out

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Speaker 1: a way to pay my bills, and it makes everything

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Speaker 1: just a lot less enjoyable.

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Speaker 2: I fully agree with you that was the same path

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Speaker 2: for me. I was working my day job and then

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Speaker 2: doing this on the evenings and weekend, so I had

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Speaker 2: the time making videos, and I don't think I would

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Speaker 2: have been as creative if I had been financially crippled.

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Speaker 2: Now I wasn't making that much money, but I was

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Speaker 2: making enough to pay my bills and take care of things,

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Speaker 2: and I was having to edit my videos because I

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Speaker 2: couldn't afford to outsource it to someone. I was having

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Speaker 2: a friend do me a favor by shooting my videos

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Speaker 2: because they're going to afford one. But the idea was

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Speaker 2: I wasn't creatively starved because I wasn't scared that every

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Speaker 2: video had to make money. And I think people put

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Speaker 2: themselves into these positions where you take this big leap,

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Speaker 2: and now the dream has to pay the bills absolutely,

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Speaker 2: and now the dream doesn't feel like a dream anymore.

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Speaker 2: It feels like pressure.

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Speaker 1: Absolutely, it turns into a chore when you don't have

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Speaker 1: that money coming in. And so I always like to

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Speaker 1: think of different things that you're doing that serve different purposes.

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Speaker 1: And sometimes your job just serves a purpose of paying

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Speaker 1: your financial life, and then a passion project can be

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Speaker 1: the purpose of your creativity or whatever without like you said,

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Speaker 1: feeling like oh how am I gonna or going into

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Speaker 1: survival mode?

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Speaker 2: Is there a good way to calculate what a financial

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Speaker 2: crishion should be for someone?

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Speaker 1: Typically you'd recommend three to six months of your living expenses,

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Speaker 1: So you calculate what it costs to for your basically

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Speaker 1: living expenses in a month, and your times are by

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Speaker 1: three if you're feeling a bit comfortable with a lower cushion,

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Speaker 1: or six if you want to be a bit more safe.

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Speaker 1: I went all the way for the nine months because

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Speaker 1: I'm super super calculative. But it really comes down to

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Speaker 1: what makes you feel comfortable, what makes you feel like

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Speaker 1: you can walk away from this and be like I've

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Speaker 1: got a good financial runway ahead of me.

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Speaker 2: Yeah, yeah, that's my That makes a lot of sense.

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Speaker 2: What was the cost? What were the things that were

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Speaker 2: sacrificed in switching away from the life you thought you'd lead.

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Speaker 1: I'd say the biggest thing that I sacrificed at that

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Speaker 1: moment in time was this identity that I'd built around myself.

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Speaker 1: And when you don't spend time to look inwards, you

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Speaker 1: find a way to have excenal noises define who you

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Speaker 1: are and what you do, and without knowing. For the

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Speaker 1: good part of nine years, which is how long my

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Speaker 1: banking career was, my identity was around what I did

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Speaker 1: for a living, knowing that when I walk WITHO this

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Speaker 1: other path, all of that is going to be stripped

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Speaker 1: away from me. All of what I thought defined my

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Speaker 1: work had to vanish. So you find a way to

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Speaker 1: get that fulfillment and that validation from within you, or

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Speaker 1: you find something that is so much bigger than what

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Speaker 1: has defined you up until that moment in time.

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Speaker 2: That's such a great point, because that is the biggest

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Speaker 2: thing you're giving up, is what you've defined your identity

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Speaker 2: to be.

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Speaker 1: I didn't get to the point where it was complete

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Speaker 1: breaking point, but I did see that the ladder that

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Speaker 1: I was climbing was leaning up against the wrong wall,

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Speaker 1: and that's when I thought, okay, I could either keep walking,

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Speaker 1: but it's just not a situation I want to be,

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Speaker 1: so in that sense, it was Yeah, it was great

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Speaker 1: that it wasn't complete breaking point, but it was very

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Speaker 1: net I.

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Speaker 2: Really wanted to understand that. I wanted our audience to

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Speaker 2: really understand because I do think that the majority people

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Speaker 2: are in that position. And I love this few takeaways

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Speaker 2: that we've already had, which is, you don't have to

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Speaker 2: quit your job, you can build something on the side,

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Speaker 2: you don't have to go all or nothing, and it

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Speaker 2: is okay. You do deserve to ask the question do

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Speaker 2: I want more? Do I want to be more aligned?

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Speaker 2: Do I deserve a better life? Can I leave this behind?

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Speaker 2: Like I think sometimes people don't feel worthy to ask

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Speaker 2: that question. They feel like they don't deserve it. Talk

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Speaker 2: to me about the biggest money mistakes people make in

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Speaker 2: their twenties.

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Speaker 1: Avoiding looking at their final says that is the number

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Speaker 1: one thing that sets people back. It's very easy to

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Speaker 1: do to just ignore it and because it makes you

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Speaker 1: feel a bit uncomfortable sometimes looking at your finances. I mean,

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Speaker 1: there's a psychological bias called the Ostrich effect, where we

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Speaker 1: actively avoid information that makes us feel uncomfortable in the

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Speaker 1: hope that if you ignore it, it sometimes disappears. And

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Speaker 1: it's the reason why you don't check your bank account

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Speaker 1: after a weekend or spending, don't check your credit card

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Speaker 1: statement because you're scared of the damage and what it

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Speaker 1: will do. But in your twenties, you are creating the

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Speaker 1: habits that will either over time compound for you or

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Speaker 1: compound against you. The stakes aren't that high, so you

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Speaker 1: want to be able to learn and learn the small

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Speaker 1: habits early. Look at your finances small, all the small

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Speaker 1: gaps are happening, and solve them or improve them before

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Speaker 1: it compounds against you.

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Speaker 2: Why do people avoid looking at their bank account.

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Speaker 1: Because it almost shows them sometimes what their priorities are

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Speaker 1: and what their focus is, and that might be completely

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Speaker 1: out of alignment of what their core values actually are,

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Speaker 1: and they might impulse purchase, or they might buy things

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Speaker 1: that they didn't actually think about the time and then

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Speaker 1: looking at it and seeing, actually, these are all the

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Speaker 1: things that I've bought, but all of the things that

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Speaker 1: I wanted to do for myself, for my future self

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Speaker 1: have taken the back seat. So I think that's a

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Speaker 1: big part of it.

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Speaker 2: Yeah, I even I saw this study years ago which

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Speaker 2: talked about how money has changed. So, for example, before

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Speaker 2: when you paid for something, you took cash out of

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Speaker 2: your personal wallet and gave it to someone, so you

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Speaker 2: actually had to count how many dollars, how many cents,

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Speaker 2: how many pounds wherever you live right and you had

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Speaker 2: to count, and you'd be like, oh, my gosh, this

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Speaker 2: is a lot of money. It's a one hundred dollars,

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Speaker 2: it's fifty dollars, whatever it is. Then we had cards,

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Speaker 2: and so now you can't see money anymore. And so

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Speaker 2: it's so much easier to tap your card and put

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Speaker 2: your card into a machine than it is to actually

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Speaker 2: count the dollars. And now you just do an online transaction,

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Speaker 2: so you don't have to give anything. You literally just

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Speaker 2: type in a code you're press buy yeah, and you

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Speaker 2: click or whatever it may be, and the next thing

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Speaker 2: you know, it's already there. And so spending money has

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Speaker 2: become so much more easier, and so I get why

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Speaker 2: people are scared, because it's like you've gone from having

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Speaker 2: to count, to having to give, to having to click

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Speaker 2: absolutely and now you don't even have to think about it.

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Speaker 1: Yeah, you can literally buy a car from your phone

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Speaker 1: at two am in the morning and not speak to

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Speaker 1: anyone in the process, and so it requires effort. It's friction,

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Speaker 1: and so the uncomfortable thing to do is create friction

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Speaker 1: between you and a purchase. But that's that's the hard

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Speaker 1: Thing's it's hard to wait forty eight hours before you

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Speaker 1: make an impulse purchase and then decide if you actually

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Speaker 1: want that thing or not. It's hard to say no

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Speaker 1: to an Instagram ad that pops up multiple times and

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Speaker 1: decide you don't want to buy that thing. This is

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Speaker 1: the hard, hard things to do. That more more, it's

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Speaker 1: more important now than ever, like you said, because everything

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Speaker 1: is so frictionless.

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Speaker 2: And would you argue that is it a will power

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Speaker 2: issue or do you believe if we looked at our

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Speaker 2: finances we'd make better decisions automatically.

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Speaker 1: I definitely think it's in a combination of one of

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Speaker 1: It comes down to willpower and being able to say

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Speaker 1: no to things at the time. The world at the moment,

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Speaker 1: it's built in a way to take your money for

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Speaker 1: you to spend. That's how the economy runs, so a

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Speaker 1: lot of it requires you to have the willpower. But

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Speaker 1: a good way to stop that is actually looking at

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Speaker 1: your finances. Spending twenty minutes at the end of the

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Speaker 1: month and looking through what you spent and saying, Okay,

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Speaker 1: do these purchases line up with what I wanted? Did

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Speaker 1: they bring me happiness? Do they actually improve my life

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Speaker 1: in any way, shape or form, and then deciding do

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Speaker 1: you want to continue that habit in the next month

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Speaker 1: and the next month, or are you going to start

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Speaker 1: making some changes.

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Speaker 2: If someone listens to this podcast and they go, Okay, Nische,

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Speaker 2: I'm going to start looking at my finances for twenty

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Speaker 2: minutes at the end of the month, is that the

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Speaker 2: right time to do it?

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Speaker 1: Yeah?

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Speaker 2: What is the plan? Talk to me through a really

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Speaker 2: simple twenty minute plan of what someone should look at

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Speaker 2: when they're checking their finances.

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Speaker 1: I would say there's probably two types of people, and

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Speaker 1: some one type is they absolutely do not want to

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Speaker 1: look at their finances. The idea of budgeting or looking

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Speaker 1: at the numbers just makes their skin crawl. They've tried

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Speaker 1: to evanticize it, They've tried to do it with a

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Speaker 1: glass of wine, they tried to deal with a girl

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Speaker 1: friends and it just hasn't worked for them. I would

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Speaker 1: actually recommend taking a step back, zooming out and thinking

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Speaker 1: about what's the objective of looking at your finances? Why

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Speaker 1: do you want to budget or look at your finances?

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Speaker 1: And the main objective is so that you save a

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Speaker 1: portion every single month. I would recommend if you fall

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Speaker 1: into this back at the back of a napkin approach,

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Speaker 1: take your take home pay minus an amount that you

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Speaker 1: want to save every single month. Start with whatever you

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Speaker 1: feel comfortable with. Whether it's fifty dollars we're in the stage,

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Speaker 1: fifty dollars, one hundred dollars, whatever it is that's your saving,

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Speaker 1: Put that away, don't touch that. The rest you could spend.

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Speaker 1: Important thing to do here is with that amount. As

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Speaker 1: soon as your money comes in on payday, set up

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Speaker 1: an automatic transfer so it's out of the amount out

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Speaker 1: of your bank account into a separate bank account that

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Speaker 1: you cannot even touch. If you hate numbers, if you

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Speaker 1: hate looking at your finances, if you don't want to

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Speaker 1: look at your bank statement, do that, and then as

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Speaker 1: the months go one, you could try and tweak that

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Speaker 1: saving you amount. If you are someone who's like, you

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Speaker 1: know what, I want to look at my bank statements,

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Speaker 1: so I want to look at my numbers. I want

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Speaker 1: to I want to understand this a bit better then

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Speaker 1: I would recommend and a less restrictive way of looking

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Speaker 1: at your finances that makes you feel like taking control

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Speaker 1: is a way to say yes rather than saying no

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Speaker 1: to buying stuff. And so I would recommend if you

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Speaker 1: fall into the bucket where you're like, okay, I want

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Speaker 1: to optimize my finances looking at your take home pay

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Speaker 1: once again, this is the number on your pacelip, not

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Speaker 1: on your job description, and splitting that take home pay

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Speaker 1: into three buckets. These are three numbers that everyone should know.

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Speaker 1: The first would be your fundamentals. These are your mustabs

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Speaker 1: in life, the things that you need for day to

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Speaker 1: day living, mortgage, your rent, growth, stories, car payments. That's

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Speaker 1: your first bucket. Second bucket is your fun bucket, so

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Speaker 1: these are leisure, travel, manicure, pedicure, spa, massages, all of

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Speaker 1: that pulls into the fun bucket. And then the final

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Speaker 1: bucket is the future you bucket, so this is anything

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Speaker 1: for you tomorrow, savings, investments, even extra debt payments. When

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Speaker 1: it comes to your spending, allocate a percentage of your

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Speaker 1: spending to each of those three buckets. One that I

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Speaker 1: recommend is around sixty five percent for your fundamentals, twenty

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Speaker 1: five percent for your fun and then ten percent for

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Speaker 1: your future you. So that's what you want to look

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Speaker 1: out when you look at your bank statements. The first

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Speaker 1: thing is are you saving enough? That's the first category,

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Speaker 1: and then you want to look for patterns and your

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Speaker 1: other spending. What am I consistently spending on? What can

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Speaker 1: I cut out? And if you're looking at your items

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Speaker 1: line item by line item, ask yourself three questions. Do

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Speaker 1: I need it? If I do need it, can I

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Speaker 1: live with less of vet? Or can I get the

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Speaker 1: same thing for cheaper?

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Speaker 2: Say those three again, Do I need it?

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Speaker 1: Can I live with less of it? Or can I

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Speaker 1: get the same thing for cheaper?

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Speaker 2: Those are great questions. That's that perfect break between about

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Speaker 2: to click and buy and actually creating some space in

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Speaker 2: your mind. Yeah, because as soon as you say those three,

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Speaker 2: I'm like, yeah, it.

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Speaker 1: Makes you question whether you want to buy that thing

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Speaker 1: or not?

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Speaker 2: Yeah? Absolutely, absolutely, And I love your breakdown because one

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Speaker 2: of my favorite quotes is from Warren Buffett where he said,

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Speaker 2: don't save what is left after spending, spend what is

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Speaker 2: left after saving. I love it, And that's exactly what

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Speaker 2: you've just shared with us, which is you have to

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Speaker 2: put aside your saving first. And I think most of

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Speaker 2: us just spend and then see what we have left

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Speaker 2: at the end of the month and then put it away,

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Speaker 2: and of course that never grows up. I think one

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Speaker 2: of the biggest things niches when it comes to finances.

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Speaker 2: And I know I was like this, Honestly, I used

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Speaker 2: to feel like you had to wait for a big

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Speaker 2: payday to make money and save money and invest money.

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Speaker 2: And until you got that, it didn't really matter, Like

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Speaker 2: you're not really going to do You're not really going

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Speaker 2: to save that much and little amounts. What are they

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Speaker 2: going to do? Anyway? What are the micro habits that

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Speaker 2: actually make us rich? Because I think we think it's

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Speaker 2: these big things that happen, like getting a promotion somehow,

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Speaker 2: selling an amazing company, or like you know, all these

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Speaker 2: things that you see online that you think are going

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Speaker 2: to make you rich. But what are actually the micro

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Speaker 2: habits that make people rich.

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Speaker 1: A couple of weeks ago, I was in a hotel

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Speaker 1: lobby and this lady came up to me. She was

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Speaker 1: super sweech. She said, I'll watch your videos and I've

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Speaker 1: been wanting to invest, but I need to know a

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Speaker 1: little bit more. I just wanted to learn more about it.

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Speaker 1: And as you got spoke speaking, I realized that she

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Speaker 1: knew what she wanted to invest in. She was following

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Speaker 1: the recommendations that everyone says online, the S and P

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Speaker 1: five hundred. She knew how much she wanted to invest.

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Speaker 1: She even had an investment app downloaded on her phone,

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Speaker 1: and she hadn't turned that knowledge into action yet for

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Speaker 1: whatever reason. And we were standing there, we were both

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Speaker 1: waiting for our taxis, and so I just said, okay,

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Speaker 1: why do you just do it right now? Why don't

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Speaker 1: you just invest right now? You know what you want,

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Speaker 1: you know what you want to do, or we could

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Speaker 1: do it together. So she did it. She got her

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Speaker 1: phone out, she bought what she wanted to buy, and

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Speaker 1: within three minutes she had invested. And it was like

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Speaker 1: this thing that she built up in her head for

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Speaker 1: so long, this analysis, paralysis, this fear, it just collapsed

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Speaker 1: the moment she actually took action. And that is one

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Speaker 1: of the micro habits that actually put people so far ahead,

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Speaker 1: taking what you've learned and turning it into action, because

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Speaker 1: so often we just learned for the sake of learning,

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Speaker 1: and we don't actually do anything with it. So that

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Speaker 1: is one the main things. Every time you learn something

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Speaker 1: new about personal finance, action at that day and then

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Speaker 1: refine it as you're going. It might not be the

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Speaker 1: thing that works for you, but it might. But as

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Speaker 1: long as you keep moving and keep implementing your own life,

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Speaker 1: that's what makes someone who's sitting in the backseat and

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Speaker 1: doing nothing from someone who's actually taking the driver's seat

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Speaker 1: and carving the way for their life. And another habit

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Speaker 1: I would say is they create goals that have concrete

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Speaker 1: plans to follow up with those goals. So how often

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Speaker 1: do we say I want to save more or I

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Speaker 1: want to invest more all the time, or I want

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Speaker 1: to reach financial freedom? Right? Yea, we say all the time.

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Speaker 1: But one of the habits that people could get into

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Speaker 1: the mindset of is following that up with the really,

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Speaker 1: really concrete steps. So instead of saying I want to

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Speaker 1: save more, it'll be I want to save five thousand

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Speaker 1: over the next twelve months. That's just over four hundred

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Speaker 1: a month. And to do that, I'm going to do XYZ,

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Speaker 1: I'm gonna cut my subscription stack, I'm going to negotiate

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Speaker 1: this bill, and I'm going to ault to make my

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Speaker 1: savings that's a completely different situation.

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Speaker 2: Absolutely, that's huge, huge.

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Speaker 1: You've now got a clear goal and a path to

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Speaker 1: get there. The people who are good with money and

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Speaker 1: not good with money or bad with money, it's not

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Speaker 1: about different goals, it's just the follow through plan of

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Speaker 1: those goals.

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Speaker 2: You're right. We do throw out these goals all the time,

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Speaker 2: Like I wish I had more money, I want to

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Speaker 2: save up for this, but you haven't really broken down

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Speaker 2: what it looks like. And like you said, it could

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Speaker 2: be as simple as the automatic savings cutting your subscriptions.

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Speaker 2: Talk to me about how much does having a coffee

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Speaker 2: every day actually negatively impact your bank account.

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Speaker 1: If you're really, really, really feeling like you're living patriot

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Speaker 1: to paycheck and you actually have cut everything out except

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Speaker 1: for coffee, then maybe you want to look at the

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Speaker 1: coffee bill. But actually it's a lot more about alignment

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Speaker 1: when it comes to spending and intentional spending, because what

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Speaker 1: you want to do is you want to look at

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Speaker 1: the things that bring you joy or bring you happiness

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Speaker 1: and then deciding for yourself whether that's worth keeping or

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Speaker 1: worth cutting out on. So I wouldn't say, oh, take

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Speaker 1: out those coffees and ins said invest that money is

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Speaker 1: just looking at every single decision or every single pound

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Speaker 1: of dollar that comes into your life and asking yourself,

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Speaker 1: or what do I want the purpose of this pound

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Speaker 1: of dollar to be? Because if you don't define its purpose,

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Speaker 1: it will end up defining yours. So just be more

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Speaker 1: conscious and more intentional with how you're spending rather than

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Speaker 1: cutting things, because that's what everyone else online is telling

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Speaker 1: you to do.

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Speaker 2: What happens to someone who says I'm going to save

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Speaker 2: up one month three months for a bag? How do

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Speaker 2: we improve our will power towards the expensive things that

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Speaker 2: make us happy? Yeah, So for someone who's like I

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Speaker 2: do want that pair of shoes, or do want that bag?

439
00:19:56,680 --> 00:19:59,240
Speaker 2: Or do whatever it may be for anyone you can

440
00:19:59,320 --> 00:20:02,160
Speaker 2: afford it, but can you really like, is it really

441
00:20:02,160 --> 00:20:04,800
Speaker 2: creating a better life for you? Are you more financially safe?

442
00:20:05,320 --> 00:20:07,960
Speaker 2: How do you control your willpower when it feels so addictive.

443
00:20:08,359 --> 00:20:11,879
Speaker 1: It's a lot easier to spend on things when you

444
00:20:11,960 --> 00:20:14,000
Speaker 1: know that the future you is being taken care of.

445
00:20:14,760 --> 00:20:17,040
Speaker 1: And when you know that, Okay, the first thing I'm

446
00:20:17,080 --> 00:20:20,080
Speaker 1: doing is saving a portion and that money is compounding

447
00:20:20,240 --> 00:20:23,680
Speaker 1: for the future me, you feel a lot more happier

448
00:20:24,000 --> 00:20:26,280
Speaker 1: to spend on whatever it is in that moment in

449
00:20:26,359 --> 00:20:29,200
Speaker 1: time that will make you happy. And I do encourage

450
00:20:29,280 --> 00:20:32,080
Speaker 1: everyone to have a look at their life their goals

451
00:20:32,359 --> 00:20:35,080
Speaker 1: and decide is this bringing me closer towards my life

452
00:20:35,080 --> 00:20:37,399
Speaker 1: goals or taking me further away from them?

453
00:20:37,560 --> 00:20:40,600
Speaker 2: Do you need a six figure salary to achieve financial freedom?

454
00:20:40,840 --> 00:20:44,399
Speaker 1: This is such a common misconception. We often think that

455
00:20:44,840 --> 00:20:47,919
Speaker 1: to be better with money, to reach financial freedom, you

456
00:20:47,920 --> 00:20:50,960
Speaker 1: need to earn more. Whilst that is great, earning money

457
00:20:51,080 --> 00:20:53,679
Speaker 1: doesn't actually make you better with money. And it's not

458
00:20:53,720 --> 00:20:55,879
Speaker 1: actually about how much you make, it's about how you

459
00:20:55,920 --> 00:20:58,320
Speaker 1: manage what you make. So someone on one hundred thousand

460
00:20:58,400 --> 00:21:00,600
Speaker 1: who is spending one hundred thousand is actually worse off

461
00:21:00,640 --> 00:21:03,040
Speaker 1: than someone who's on fifty thousand and saving ten percent

462
00:21:03,080 --> 00:21:06,119
Speaker 1: of it. So if you want to reach financial freedom,

463
00:21:06,320 --> 00:21:08,440
Speaker 1: you've got to be saving and investing a portion every

464
00:21:08,440 --> 00:21:13,080
Speaker 1: single month. And then, really what the market rewards is

465
00:21:13,200 --> 00:21:18,440
Speaker 1: time and consistency. So even small contributions today, leaving it

466
00:21:18,480 --> 00:21:20,639
Speaker 1: for the future, leaving it for ten twenty years can

467
00:21:20,680 --> 00:21:23,960
Speaker 1: massively compound over time. And it's such an unfair advantage

468
00:21:24,440 --> 00:21:27,280
Speaker 1: that people don't make the most of using the money

469
00:21:27,280 --> 00:21:29,679
Speaker 1: that you have right now and using leverage to let

470
00:21:29,760 --> 00:21:31,879
Speaker 1: it multiply it in a way that doesn't require you

471
00:21:32,520 --> 00:21:34,480
Speaker 1: to keep working and training your time for money.

472
00:21:34,680 --> 00:21:36,840
Speaker 2: Yeah. I love what you said about the habits because

473
00:21:37,160 --> 00:21:39,080
Speaker 2: it feels like that's what it really comes down to,

474
00:21:39,240 --> 00:21:41,680
Speaker 2: where just because you earn more money doesn't mean you're

475
00:21:41,680 --> 00:21:44,359
Speaker 2: better with money. And I think that's what happens, is

476
00:21:44,400 --> 00:21:46,720
Speaker 2: that you can go from making fifty K, and even

477
00:21:46,720 --> 00:21:48,880
Speaker 2: if you went to make two fifty K, if you're

478
00:21:48,960 --> 00:21:51,119
Speaker 2: used to spending everything you had at fifty, you do

479
00:21:51,240 --> 00:21:54,959
Speaker 2: the same. And that's so fascinating that we ultimately just

480
00:21:55,000 --> 00:21:57,679
Speaker 2: have more to do the same thing with. And so

481
00:21:57,720 --> 00:22:01,240
Speaker 2: we've quite to sought these habits out early. Yeah, And

482
00:22:01,280 --> 00:22:03,639
Speaker 2: it's hard, right because I feel like money mindset's built

483
00:22:03,640 --> 00:22:08,239
Speaker 2: from families, it's built through trauma, It's built through our

484
00:22:08,280 --> 00:22:11,000
Speaker 2: relationship with money over the years. Like it's not easy.

485
00:22:11,080 --> 00:22:12,920
Speaker 2: Like I grew up in a house where we always

486
00:22:12,920 --> 00:22:16,240
Speaker 2: had just enough, and so I grew up with zero

487
00:22:16,320 --> 00:22:18,680
Speaker 2: in my bank balance often growing up. And I started

488
00:22:18,680 --> 00:22:21,560
Speaker 2: working when I was fourteen. I delivered newspapers. I then

489
00:22:21,600 --> 00:22:25,520
Speaker 2: worked in Morrisons, which is a grocery store in the area.

490
00:22:25,720 --> 00:22:29,160
Speaker 2: I then worked in retail, like I basically worked every

491
00:22:29,240 --> 00:22:31,800
Speaker 2: year since I was fourteen years old. But even when

492
00:22:31,800 --> 00:22:33,560
Speaker 2: I was working, I was paying for my phone bill

493
00:22:33,840 --> 00:22:35,680
Speaker 2: and I'm paying for my car insurance and all the

494
00:22:35,720 --> 00:22:37,679
Speaker 2: rest of it. I would end up with zero in

495
00:22:37,680 --> 00:22:39,680
Speaker 2: my bag balance a lot, because that's what I was

496
00:22:39,720 --> 00:22:42,119
Speaker 2: always trained to have. Yeah, and so it took me

497
00:22:42,359 --> 00:22:46,040
Speaker 2: years of like changing my relationship with money to actually

498
00:22:46,200 --> 00:22:48,680
Speaker 2: understand what to do with it. And it was almost

499
00:22:48,720 --> 00:22:51,720
Speaker 2: like an emotional relationship more than even a It was

500
00:22:51,800 --> 00:22:54,520
Speaker 2: definitely a tactical, practical relationship, but there was also an

501
00:22:54,520 --> 00:22:57,320
Speaker 2: emotional relationship I needed to work on. Do you touch

502
00:22:57,359 --> 00:22:58,679
Speaker 2: on that in your work? Yeah? I do.

503
00:22:58,760 --> 00:23:01,160
Speaker 1: And you know what, it's so much easy no matter

504
00:23:01,160 --> 00:23:04,240
Speaker 1: where you are in your financial journey, it is actually

505
00:23:04,320 --> 00:23:07,439
Speaker 1: so much easier to feel behind financially than it is

506
00:23:07,480 --> 00:23:10,600
Speaker 1: to feel ahead financially. And a big part of that

507
00:23:10,800 --> 00:23:15,000
Speaker 1: is because we compare how we're doing not based on

508
00:23:15,040 --> 00:23:17,639
Speaker 1: how much we have, but how much we have compared

509
00:23:17,640 --> 00:23:20,240
Speaker 1: to those around us. And there's research on this. There's

510
00:23:20,240 --> 00:23:23,119
Speaker 1: research that shows that two people could earn the exact

511
00:23:23,119 --> 00:23:26,680
Speaker 1: same income and report different levels of satisfaction purely based

512
00:23:26,720 --> 00:23:28,640
Speaker 1: on whether the people around them are earning more than

513
00:23:28,640 --> 00:23:30,960
Speaker 1: them or less than them. So you could be on

514
00:23:31,640 --> 00:23:35,679
Speaker 1: fifty thousand and you would feel and could feel happy

515
00:23:35,800 --> 00:23:38,359
Speaker 1: about your finances if everyone around you is earning forty

516
00:23:38,400 --> 00:23:41,280
Speaker 1: five thousand, or feel less happy about it if everyone

517
00:23:41,320 --> 00:23:42,919
Speaker 1: around you is earning fifty five thousand.

518
00:23:43,040 --> 00:23:43,440
Speaker 2: That's wild.

519
00:23:43,520 --> 00:23:47,639
Speaker 1: Yeah, we measure our success based on humans where social creatures.

520
00:23:47,640 --> 00:23:50,080
Speaker 1: We measure our success based on what's happening around us.

521
00:23:50,119 --> 00:23:53,040
Speaker 1: And previously this wasn't such a bad thing when our

522
00:23:53,080 --> 00:23:55,439
Speaker 1: social circle didn't extend beyond our local town or our

523
00:23:55,480 --> 00:23:58,880
Speaker 1: local neighborhood. You could be a baller blissfully unaware of

524
00:23:59,480 --> 00:24:02,119
Speaker 1: the bigger thing down the road, right. But now with

525
00:24:02,200 --> 00:24:05,120
Speaker 1: the Internet, it exposes us to everyone, and the most

526
00:24:05,119 --> 00:24:08,720
Speaker 1: successful outliers, the most successful anomalies are there for everyone

527
00:24:08,720 --> 00:24:11,879
Speaker 1: to see. So yeah, it's really it's the emotions are

528
00:24:11,880 --> 00:24:13,680
Speaker 1: a big part of my work, but I want people

529
00:24:13,680 --> 00:24:17,760
Speaker 1: to understand that there are things that drive their emotions

530
00:24:17,800 --> 00:24:20,200
Speaker 1: that are outside of the control and to always remember

531
00:24:20,440 --> 00:24:25,000
Speaker 1: like the checkpoints that matter and come back to the

532
00:24:25,040 --> 00:24:27,560
Speaker 1: finance part of it. Understand if you're doing better or

533
00:24:28,160 --> 00:24:29,440
Speaker 1: you're doing okay, financially.

534
00:24:29,640 --> 00:24:31,800
Speaker 2: Yeah, I'm really glad you've raised that too, because I

535
00:24:31,840 --> 00:24:35,880
Speaker 2: also think that it shows a kind of flaw in

536
00:24:35,960 --> 00:24:40,320
Speaker 2: human training in that you'd hope that if everyone around

537
00:24:40,320 --> 00:24:42,679
Speaker 2: you is making more than you, you could study them

538
00:24:42,720 --> 00:24:45,040
Speaker 2: and learn from them and also grow. Yeah, but we

539
00:24:45,160 --> 00:24:47,800
Speaker 2: just end up envying them or being jealous or being

540
00:24:47,880 --> 00:24:50,320
Speaker 2: upset at ourselves. Even if we're not jealous or envious

541
00:24:50,600 --> 00:24:53,239
Speaker 2: of others, we kind of become harsh on ourselves. Oh,

542
00:24:53,280 --> 00:24:55,760
Speaker 2: you should be doing better, and you're behind and everyone's

543
00:24:55,760 --> 00:24:58,000
Speaker 2: ahead of you. And it's almost like if we could

544
00:24:58,080 --> 00:25:01,200
Speaker 2: learn to study people instead of envy them, criticize them,

545
00:25:01,440 --> 00:25:05,959
Speaker 2: or be upset at ourselves, then it would be healthy

546
00:25:06,040 --> 00:25:07,639
Speaker 2: to be around people who are doing better than us.

547
00:25:07,680 --> 00:25:10,320
Speaker 2: Because we also always hear the famous quote of you're

548
00:25:10,320 --> 00:25:11,720
Speaker 2: the average of the five people you spend the most

549
00:25:11,720 --> 00:25:14,480
Speaker 2: time with if you're trying to grow your finances. And

550
00:25:14,520 --> 00:25:16,760
Speaker 2: I'm not telling people to change their friends, but if

551
00:25:16,760 --> 00:25:18,320
Speaker 2: you're trying to grow a certain area of your life,

552
00:25:18,400 --> 00:25:21,440
Speaker 2: you will have to be around people who are excelling

553
00:25:21,440 --> 00:25:22,040
Speaker 2: in that area.

554
00:25:22,160 --> 00:25:26,680
Speaker 1: Absolutely, and it just knowing, oh, people excelling in that area.

555
00:25:26,760 --> 00:25:29,520
Speaker 1: Sometimes you are at a certain level of your finances,

556
00:25:29,520 --> 00:25:32,320
Speaker 1: and you don't realize what's possible because everyone around you

557
00:25:32,440 --> 00:25:35,359
Speaker 1: is also at that same area or same stage. And

558
00:25:35,400 --> 00:25:38,240
Speaker 1: I remember the moment when I heard someone earning X

559
00:25:38,280 --> 00:25:41,040
Speaker 1: amount per month. That's when it clicked from me that

560
00:25:41,080 --> 00:25:43,639
Speaker 1: I thought, oh, that's actually possible. And then when you

561
00:25:43,680 --> 00:25:45,639
Speaker 1: get there, then you hear someone else say, oh, this

562
00:25:45,720 --> 00:25:47,200
Speaker 1: is how much I am per month, and it just

563
00:25:47,560 --> 00:25:52,840
Speaker 1: changes your view on what normality is. And yeah, it's

564
00:25:52,880 --> 00:25:54,480
Speaker 1: not about checke like you said, it's not about changing

565
00:25:54,520 --> 00:25:56,520
Speaker 1: your circle to try and find brands that make more money,

566
00:25:56,520 --> 00:25:58,800
Speaker 1: but just understanding that this is the things that are possible,

567
00:25:59,160 --> 00:26:01,160
Speaker 1: and none of them is out of your reach. None

568
00:26:01,160 --> 00:26:03,320
Speaker 1: of it is like you could do whatever you set

569
00:26:03,359 --> 00:26:04,840
Speaker 1: your mind to and surround yourself with.

570
00:26:05,280 --> 00:26:08,680
Speaker 2: What does the top one percent understand about money that

571
00:26:09,160 --> 00:26:09,920
Speaker 2: most of us don't.

572
00:26:10,040 --> 00:26:12,600
Speaker 1: There's the one percent of financial success and then there's

573
00:26:12,600 --> 00:26:15,639
Speaker 1: a one percent of financial happiness, and the two different things.

574
00:26:15,840 --> 00:26:21,439
Speaker 1: Financial success is society's definition of happiness. Financial happiness is

575
00:26:21,520 --> 00:26:25,280
Speaker 1: your intrinsic definition of happiness. And the people who are

576
00:26:25,280 --> 00:26:28,560
Speaker 1: in the one percent of financial happiness, they get a really,

577
00:26:28,600 --> 00:26:31,800
Speaker 1: really clear on what they want out of life. What

578
00:26:31,920 --> 00:26:34,720
Speaker 1: a good life means for them, And going back to

579
00:26:34,800 --> 00:26:38,480
Speaker 1: my banking experience, this is a lot easier said than done,

580
00:26:38,600 --> 00:26:40,959
Speaker 1: because if you don't take your time to look inwards,

581
00:26:41,320 --> 00:26:44,359
Speaker 1: then you're just going to follow what is outlined for

582
00:26:44,520 --> 00:26:46,960
Speaker 1: you and the path ahead of you. So that's the

583
00:26:47,000 --> 00:26:49,000
Speaker 1: first thing that people do who are in the one

584
00:26:49,000 --> 00:26:51,680
Speaker 1: percent financial happiness. And the second thing is they understand

585
00:26:51,760 --> 00:26:54,240
Speaker 1: that every money decision they make, every pound of dollar

586
00:26:54,280 --> 00:26:57,280
Speaker 1: that they spend, is either working for them to get

587
00:26:57,320 --> 00:27:00,600
Speaker 1: closer towards that level of happiness or further away from that.

588
00:27:00,840 --> 00:27:03,560
Speaker 1: And that's the thing. If you don't know what you're

589
00:27:03,600 --> 00:27:05,359
Speaker 1: doing or why you're doing it, you're going to be

590
00:27:05,400 --> 00:27:07,960
Speaker 1: spending many carelessly, not realizing if it's bringing you closer

591
00:27:07,960 --> 00:27:10,360
Speaker 1: to your life goals. But you can't have number two

592
00:27:10,400 --> 00:27:12,200
Speaker 1: without having number one. You've got to get clear on

593
00:27:12,560 --> 00:27:14,959
Speaker 1: your why first and then spend in alignment with that.

594
00:27:14,960 --> 00:27:17,800
Speaker 2: Why I love that redefinition. I think that's so important

595
00:27:17,800 --> 00:27:20,320
Speaker 2: because I think social media has also made us more

596
00:27:20,320 --> 00:27:23,160
Speaker 2: focused on the top one percent. And here's the billionaire

597
00:27:23,240 --> 00:27:26,200
Speaker 2: list and here's the millionaire list. And the reality is

598
00:27:26,880 --> 00:27:30,080
Speaker 2: that living an aligned life and living a life based

599
00:27:30,119 --> 00:27:32,840
Speaker 2: on your values and what you care about is far

600
00:27:32,880 --> 00:27:35,800
Speaker 2: more within your reach and grasp and is going to

601
00:27:35,800 --> 00:27:39,000
Speaker 2: make you happier. And I love that reframe from financial

602
00:27:39,040 --> 00:27:42,040
Speaker 2: success to financial happiness because I think that's what we're

603
00:27:42,040 --> 00:27:44,840
Speaker 2: all actually looking for. And it comes back to your

604
00:27:44,880 --> 00:27:46,960
Speaker 2: same point of just it's not just about making more,

605
00:27:47,040 --> 00:27:49,520
Speaker 2: it's about knowing what you're doing with what you have

606
00:27:50,160 --> 00:27:53,040
Speaker 2: and then allowing that to expand. And I'm so glad

607
00:27:53,040 --> 00:27:56,240
Speaker 2: that you're kind of pushing that conversation out there as

608
00:27:56,240 --> 00:27:59,080
Speaker 2: a money expert, because I think it's easy to get

609
00:27:59,119 --> 00:28:02,240
Speaker 2: excitable and just talk about like how to make like

610
00:28:02,520 --> 00:28:05,080
Speaker 2: one hundred million dollars or a million dollars or timant

611
00:28:05,119 --> 00:28:08,399
Speaker 2: and whatever, and it's like, well, that may be a

612
00:28:08,400 --> 00:28:10,240
Speaker 2: long road. And you know, this comes back to all

613
00:28:10,280 --> 00:28:12,520
Speaker 2: the get ridge quick schemes. It comes back to like

614
00:28:12,920 --> 00:28:14,879
Speaker 2: people promising you you can make a million dollars in

615
00:28:14,960 --> 00:28:18,800
Speaker 2: a week, like all that. What's your take on passive income?

616
00:28:18,920 --> 00:28:19,920
Speaker 2: Is it even possible?

617
00:28:20,280 --> 00:28:23,359
Speaker 1: There is no such thing as past completely passive income.

618
00:28:23,680 --> 00:28:26,760
Speaker 1: There are different forms of income, but none of them

619
00:28:26,960 --> 00:28:31,600
Speaker 1: are completely one hundred percent passive without requiring a lot

620
00:28:31,640 --> 00:28:32,560
Speaker 1: of upfront work.

621
00:28:33,080 --> 00:28:34,600
Speaker 2: So so glad you said it.

622
00:28:34,600 --> 00:28:39,040
Speaker 1: It's just not And the most passive way of actually

623
00:28:39,040 --> 00:28:42,040
Speaker 1: making money, well, the least amount of work is investing.

624
00:28:42,480 --> 00:28:47,000
Speaker 1: It is the easiest to get into, the easiest to understand,

625
00:28:47,400 --> 00:28:50,840
Speaker 1: and you can make extraordinary amount of wealth through small

626
00:28:50,840 --> 00:28:53,280
Speaker 1: amounts of income. So passive income in the way that

627
00:28:53,320 --> 00:28:56,440
Speaker 1: it's marketed online or through what we see on the internet.

628
00:28:56,800 --> 00:28:59,320
Speaker 1: It's take awa a pinch of salt and understand who's

629
00:28:59,320 --> 00:29:02,320
Speaker 1: saying it, why saying it, And nothing is passive without

630
00:29:02,320 --> 00:29:04,920
Speaker 1: a lot of work. The easiest way and the single

631
00:29:04,960 --> 00:29:07,480
Speaker 1: easiest way to get rich long term is by investing

632
00:29:07,680 --> 00:29:08,560
Speaker 1: in the stock market.

633
00:29:08,920 --> 00:29:11,280
Speaker 2: Yeah, and that's and I feel like that's again if

634
00:29:11,280 --> 00:29:13,200
Speaker 2: you were exposed to that as a kid, Yeah, and

635
00:29:13,240 --> 00:29:15,200
Speaker 2: you knew about it, then you know. Otherwise it feels

636
00:29:15,240 --> 00:29:17,200
Speaker 2: like this wild world wide. So yeah, it feels so

637
00:29:17,320 --> 00:29:20,080
Speaker 2: scary and you're like, how do I know what that means? Like,

638
00:29:20,360 --> 00:29:22,840
Speaker 2: where do people start? To give them a sixty second

639
00:29:22,840 --> 00:29:25,000
Speaker 2: mister class for investing? Where do people start?

640
00:29:25,080 --> 00:29:27,000
Speaker 1: So we believe that to start investing, we need to

641
00:29:27,000 --> 00:29:29,440
Speaker 1: pick individual stocks. We need to find the next Tesla,

642
00:29:29,440 --> 00:29:32,400
Speaker 1: the next Envida, the next Amazon. But the truth is

643
00:29:32,880 --> 00:29:36,000
Speaker 1: that could work, but it's very, very hard to do,

644
00:29:36,240 --> 00:29:38,120
Speaker 1: and it requires a lot of time and a lot

645
00:29:38,120 --> 00:29:41,200
Speaker 1: of energy to do it even semi safely, and you

646
00:29:41,200 --> 00:29:44,560
Speaker 1: can still get it wrong. Even experts get it wrong. Actually,

647
00:29:44,640 --> 00:29:46,719
Speaker 1: an example of this, a great example of this is

648
00:29:46,920 --> 00:29:49,280
Speaker 1: in the two thousand and eight Lehman Brothers just before

649
00:29:49,320 --> 00:29:52,080
Speaker 1: the financial crisis, just before they collapse, which triggered then

650
00:29:52,120 --> 00:29:55,520
Speaker 1: tie of financial global crisis. Unless at one of the

651
00:29:55,560 --> 00:29:58,400
Speaker 1: largest investment banks in the world gave Liman a buy

652
00:29:58,640 --> 00:30:01,560
Speaker 1: rating a bye a couple of months later, it collapsed.

653
00:30:01,720 --> 00:30:04,320
Speaker 1: These are some of the smartest people in finance, and

654
00:30:04,920 --> 00:30:08,440
Speaker 1: they have access to information, to data, they have experience

655
00:30:08,520 --> 00:30:10,520
Speaker 1: that most of us don't have, and they still got

656
00:30:10,520 --> 00:30:14,680
Speaker 1: it catastrophically wrong. That's to say, it's very very hard

657
00:30:14,720 --> 00:30:17,400
Speaker 1: to do. It's almost impossible to consistently get it right.

658
00:30:17,440 --> 00:30:19,400
Speaker 1: If they can't get it right, it's very hard for

659
00:30:19,440 --> 00:30:22,120
Speaker 1: normal people with less information, less time, to be able

660
00:30:22,160 --> 00:30:25,680
Speaker 1: to do it consistently and reliably. So the way that

661
00:30:25,720 --> 00:30:27,440
Speaker 1: I recommend for people to start when it comes to

662
00:30:27,440 --> 00:30:31,120
Speaker 1: investing is through index funds. Index funds is just instead

663
00:30:31,120 --> 00:30:34,719
Speaker 1: of buying individual companies, you're buying tens, if not thousands

664
00:30:34,760 --> 00:30:37,760
Speaker 1: of companies all at once. So, for instance, the less

665
00:30:37,800 --> 00:30:40,640
Speaker 1: and P five hundred, it's five hundred the largest companies.

666
00:30:40,680 --> 00:30:42,600
Speaker 1: You're buying a small slice of five hundred the largest

667
00:30:42,600 --> 00:30:46,000
Speaker 1: companies Coca Cola, Amazon, Tesla, Johnson, and Johnson all in

668
00:30:46,000 --> 00:30:49,920
Speaker 1: one go and as the safest and most reliable way

669
00:30:50,000 --> 00:30:54,480
Speaker 1: to build long term wealth. Even Buffett won on Buffett's

670
00:30:54,800 --> 00:30:58,760
Speaker 1: he's instructed for ninety percent of his wife's inheritance to

671
00:30:58,840 --> 00:31:02,760
Speaker 1: go towards low cost diversified funds. For the majority of people,

672
00:31:03,040 --> 00:31:05,200
Speaker 1: that is the way to go. Once you have that

673
00:31:05,440 --> 00:31:08,520
Speaker 1: foundation setup. Once you've got that set up, then sure

674
00:31:08,600 --> 00:31:10,360
Speaker 1: you could have your fun money and play around with

675
00:31:10,560 --> 00:31:12,640
Speaker 1: some stocks that you might think are high growth. But

676
00:31:13,040 --> 00:31:16,320
Speaker 1: you can't do that without having a solid foundation in place.

677
00:31:16,360 --> 00:31:18,520
Speaker 1: It's just not worth that level or rest that comes

678
00:31:18,520 --> 00:31:19,720
Speaker 1: with individual stockpicking.

679
00:31:20,000 --> 00:31:22,200
Speaker 2: And is that money that you're planning on leaving there

680
00:31:22,640 --> 00:31:24,960
Speaker 2: for like a decade two decades, So this is money

681
00:31:25,000 --> 00:31:27,160
Speaker 2: you're not touching, And how much do you need to

682
00:31:27,160 --> 00:31:27,840
Speaker 2: get started?

683
00:31:28,000 --> 00:31:32,160
Speaker 1: Yeah, So I recommend not investing anything that you're going

684
00:31:32,200 --> 00:31:35,440
Speaker 1: to need in the next five years because historically the

685
00:31:35,440 --> 00:31:38,400
Speaker 1: stock market has averaged eight to ten percent over the

686
00:31:38,400 --> 00:31:40,800
Speaker 1: long run. That's the average annual return of the stock market.

687
00:31:40,800 --> 00:31:42,920
Speaker 1: But that is over the long run. If you look

688
00:31:42,960 --> 00:31:45,200
Speaker 1: at any given year, the stock market could go up

689
00:31:45,320 --> 00:31:47,960
Speaker 1: thirty percent, it could be down forty percent. So if

690
00:31:48,000 --> 00:31:50,360
Speaker 1: you need that money in the next five years, say

691
00:31:50,360 --> 00:31:52,440
Speaker 1: you're saving for a home, you're saving for a car payment,

692
00:31:52,480 --> 00:31:54,400
Speaker 1: you're saving for your kids education, if you need that

693
00:31:54,440 --> 00:31:56,320
Speaker 1: in the next five years, you don't want to put

694
00:31:56,320 --> 00:31:58,320
Speaker 1: it in the stock market because the last thing you

695
00:31:58,360 --> 00:32:00,320
Speaker 1: want is to save money and then need in the

696
00:32:00,400 --> 00:32:02,360
Speaker 1: next couple of years. And actually at that time the

697
00:32:02,360 --> 00:32:04,240
Speaker 1: stock market's at dip and you have to pull out

698
00:32:04,240 --> 00:32:06,680
Speaker 1: at a loss. You want to avoid that. So any

699
00:32:06,720 --> 00:32:08,479
Speaker 1: money that you want to invest, you want to make

700
00:32:08,480 --> 00:32:10,320
Speaker 1: sure you don't need that money in the next five years,

701
00:32:10,520 --> 00:32:12,880
Speaker 1: and you want to keep it there for ten years,

702
00:32:13,200 --> 00:32:15,920
Speaker 1: twenty years. The longer you keep it therefore, the closer

703
00:32:15,960 --> 00:32:17,640
Speaker 1: you get to the average stock market returns.

704
00:32:17,960 --> 00:32:18,920
Speaker 2: Yeah, great advice.

705
00:32:19,040 --> 00:32:21,440
Speaker 1: You could start with a dollar. You can start with

706
00:32:21,840 --> 00:32:24,960
Speaker 1: the price of a loaf of bread. The hurdles that

707
00:32:25,000 --> 00:32:27,280
Speaker 1: we had to invest back in the day just don't

708
00:32:27,280 --> 00:32:29,239
Speaker 1: exist anymore. You could do it within a second on

709
00:32:29,240 --> 00:32:31,000
Speaker 1: your phone with as little as a dollar.

710
00:32:31,200 --> 00:32:34,160
Speaker 2: You just brought this up. Should people even plan on

711
00:32:34,200 --> 00:32:35,720
Speaker 2: buying a home, you do not want to.

712
00:32:35,720 --> 00:32:38,920
Speaker 1: Look at her home as an investment opportunity. There was

713
00:32:38,920 --> 00:32:41,160
Speaker 1: a time when I thought buying a home was a really,

714
00:32:41,160 --> 00:32:43,960
Speaker 1: really good decision. And when I bought my home, I

715
00:32:44,000 --> 00:32:46,080
Speaker 1: thought that was a great financial decision and it gave

716
00:32:46,120 --> 00:32:48,480
Speaker 1: me a lot of comfort and peace of mind knowing

717
00:32:48,520 --> 00:32:50,560
Speaker 1: that no matter what happened, I will always have this

718
00:32:50,640 --> 00:32:54,240
Speaker 1: roof over my head. That psychological comfort is hard to

719
00:32:54,240 --> 00:32:58,240
Speaker 1: put a number on. Now, I rent, and that gives

720
00:32:58,320 --> 00:33:01,000
Speaker 1: me a huge amount of psychological comfort because knowing that

721
00:33:01,080 --> 00:33:03,760
Speaker 1: I could pick up and leave if an opportunity comes up,

722
00:33:03,960 --> 00:33:06,520
Speaker 1: that I'm not tied to a certain place, that gives

723
00:33:06,520 --> 00:33:09,160
Speaker 1: me a lot of freedom. So there's two ways to

724
00:33:09,160 --> 00:33:11,719
Speaker 1: look at about the buying rent situation. First is actually

725
00:33:11,760 --> 00:33:13,720
Speaker 1: when it comes to your home, it is a psychological

726
00:33:13,720 --> 00:33:16,120
Speaker 1: part of it that plays a big, big role. And

727
00:33:16,160 --> 00:33:18,360
Speaker 1: then the second part then comes the numbers. You want

728
00:33:18,360 --> 00:33:21,360
Speaker 1: to figure out, Okay, does it make sense for me

729
00:33:21,440 --> 00:33:24,240
Speaker 1: to be putting this money towards buying a home? Also

730
00:33:24,280 --> 00:33:26,160
Speaker 1: taking you to count the cost that most people forget,

731
00:33:26,440 --> 00:33:29,960
Speaker 1: which is stamp duty, buying all the furnishing, legal fees,

732
00:33:30,000 --> 00:33:34,160
Speaker 1: surveyor fees. All of that comes in maintenance, yeah, or

733
00:33:34,280 --> 00:33:36,479
Speaker 1: does it make sense for me to rent and invest

734
00:33:36,480 --> 00:33:38,640
Speaker 1: that difference. So those are the ways you want to

735
00:33:38,640 --> 00:33:40,680
Speaker 1: look about the buy and the rent situation. It's not

736
00:33:40,880 --> 00:33:43,360
Speaker 1: a what we used to think, which was just buying

737
00:33:43,440 --> 00:33:45,360
Speaker 1: is the way to go, and if you're paying someone,

738
00:33:45,440 --> 00:33:47,840
Speaker 1: if you're paying rent, you're just paying someone else's mortgage.

739
00:33:47,880 --> 00:33:51,120
Speaker 1: There's so much more that comes into the emotions and

740
00:33:51,160 --> 00:33:53,840
Speaker 1: the psychology of making something like a house purchase, which

741
00:33:53,880 --> 00:33:55,920
Speaker 1: is one of the biggest purchases you're going to make

742
00:33:55,960 --> 00:33:57,040
Speaker 1: in your entire life.

743
00:33:57,120 --> 00:33:59,120
Speaker 2: A few decades ago, it felt like that's what you

744
00:33:59,200 --> 00:34:01,320
Speaker 2: had to do. Why is it suddenly become a debate

745
00:34:01,360 --> 00:34:03,440
Speaker 2: over the last five to ten years.

746
00:34:03,160 --> 00:34:06,840
Speaker 1: Maybe a decade ago, even for our parents' generation, it

747
00:34:06,880 --> 00:34:09,320
Speaker 1: was a lot easier to get onto the property ladder,

748
00:34:09,600 --> 00:34:12,839
Speaker 1: And if you compare the way house prices have gone

749
00:34:12,880 --> 00:34:15,879
Speaker 1: up since then, the way everything has gone up since then,

750
00:34:15,920 --> 00:34:20,280
Speaker 1: and compare that to wages, it's not the same anymore.

751
00:34:20,640 --> 00:34:23,200
Speaker 1: And for the majority of people it's not as easy

752
00:34:23,320 --> 00:34:26,400
Speaker 1: to do as it was for previous generations. And actually,

753
00:34:26,600 --> 00:34:28,960
Speaker 1: with the way the stock market is going, it might

754
00:34:29,000 --> 00:34:31,680
Speaker 1: make a lot more sense saving that money. But you

755
00:34:31,760 --> 00:34:33,799
Speaker 1: have to be disciplined enough to save the money that

756
00:34:33,880 --> 00:34:36,160
Speaker 1: you would have otherwise put in towards a mortgage or

757
00:34:36,200 --> 00:34:37,919
Speaker 1: the difference between a rent and a mortgage, and saving

758
00:34:37,960 --> 00:34:40,160
Speaker 1: that money and then putting towards the stock market. So

759
00:34:40,200 --> 00:34:42,440
Speaker 1: it's a very very different economy that we're in. And

760
00:34:42,880 --> 00:34:45,839
Speaker 1: whilst having or buying a home, if that's your goal,

761
00:34:45,920 --> 00:34:48,640
Speaker 1: that's a great goal to have, But I don't think

762
00:34:48,719 --> 00:34:51,399
Speaker 1: it's the be all and end all if you don't

763
00:34:51,440 --> 00:34:53,520
Speaker 1: get onto the property ladder. There's other ways to make

764
00:34:53,560 --> 00:34:55,759
Speaker 1: a lot of wealth that doesn't require you to buy

765
00:34:55,800 --> 00:34:56,160
Speaker 1: a home.

766
00:34:56,320 --> 00:34:58,319
Speaker 2: I think you've acknowledged something really important there. Like the

767
00:34:58,360 --> 00:35:01,799
Speaker 2: reality is it feels like the cost of everything is

768
00:35:01,880 --> 00:35:05,000
Speaker 2: growing up, like the cost of fuel, the cost of rent,

769
00:35:05,040 --> 00:35:08,640
Speaker 2: the cost of a mortgage, the cost of living, Like

770
00:35:08,840 --> 00:35:13,400
Speaker 2: everything's on the rise. No wonder, everyone's stressed, Like everyone

771
00:35:13,440 --> 00:35:16,000
Speaker 2: is so stressed and so no wonder, we're getting more

772
00:35:16,040 --> 00:35:18,680
Speaker 2: scared or insecure about our finances and we don't want

773
00:35:18,719 --> 00:35:21,759
Speaker 2: to look at them because everything's just fear based, right,

774
00:35:21,800 --> 00:35:23,719
Speaker 2: So it's like the cost of living is going up,

775
00:35:23,760 --> 00:35:26,279
Speaker 2: the cost of raising kids is going up. You're not

776
00:35:26,320 --> 00:35:30,000
Speaker 2: getting paid more necessarily to catch up with that rate exactly.

777
00:35:30,040 --> 00:35:32,399
Speaker 2: So then of course we're like what do I do?

778
00:35:32,440 --> 00:35:34,440
Speaker 2: And I can empathize and I understand that it just

779
00:35:34,520 --> 00:35:38,439
Speaker 2: leads to this like freeze, right, It's like that fight

780
00:35:38,560 --> 00:35:40,759
Speaker 2: or flight, and we're just like we're we're kind of

781
00:35:40,880 --> 00:35:43,160
Speaker 2: stuck in freeze because we're like, well, nothing I do

782
00:35:43,239 --> 00:35:46,600
Speaker 2: makes a difference. If someone wants to completely transform their

783
00:35:46,640 --> 00:35:49,479
Speaker 2: finances in the next six months, what's the plan.

784
00:35:49,719 --> 00:35:52,600
Speaker 1: There's a specific order of steps that I'd recommend people take,

785
00:35:53,280 --> 00:35:55,040
Speaker 1: and especially the first bit. I think a lot of

786
00:35:55,080 --> 00:35:57,360
Speaker 1: that fear comes from the first thing, which is not

787
00:35:57,440 --> 00:36:01,440
Speaker 1: having an emergency cushion in place, So saving your expenses.

788
00:36:01,480 --> 00:36:03,359
Speaker 1: The first one that I recommend, or the first step

789
00:36:03,360 --> 00:36:06,080
Speaker 1: that I recommend anyone saving is two thousand dollars and

790
00:36:06,160 --> 00:36:08,919
Speaker 1: Van God research shows that just by saving that two

791
00:36:08,920 --> 00:36:12,120
Speaker 1: thousand dollars that increases your financial wellbeing by up to

792
00:36:12,160 --> 00:36:15,200
Speaker 1: twenty one percent. Wow, from saving two thousand dollars, and

793
00:36:15,200 --> 00:36:17,399
Speaker 1: then if you up that amount to three to six months,

794
00:36:17,440 --> 00:36:20,760
Speaker 1: that's a further thirteen percent on financial wellbeing. We don't

795
00:36:20,920 --> 00:36:24,560
Speaker 1: realize the extent of having that cushion has to not

796
00:36:24,560 --> 00:36:26,239
Speaker 1: operate from a place of scarcity.

797
00:36:26,560 --> 00:36:28,920
Speaker 2: Just two thousand to start, Just two thousand to start.

798
00:36:29,040 --> 00:36:31,480
Speaker 1: Yeah, After that, you want to make sure that your

799
00:36:31,960 --> 00:36:34,560
Speaker 1: high interest debt has been paid off. And by hiring forest,

800
00:36:34,600 --> 00:36:38,399
Speaker 1: I mean anything above eight percent. This is credit card debt,

801
00:36:38,560 --> 00:36:41,240
Speaker 1: this is consumer debt. And I say it eight percent

802
00:36:41,320 --> 00:36:45,040
Speaker 1: because historically the average stock market return has been eight

803
00:36:45,080 --> 00:36:47,680
Speaker 1: to ten percent. So if you have debt that is

804
00:36:47,920 --> 00:36:51,920
Speaker 1: more than eight percent, you're actually worse off financially by

805
00:36:52,000 --> 00:36:54,399
Speaker 1: keeping that debt than by paying it off. So that's

806
00:36:54,440 --> 00:36:56,560
Speaker 1: the first thing that you want to do. And then

807
00:36:56,600 --> 00:37:00,000
Speaker 1: for interest or for debt that is less than eight percent, again,

808
00:37:00,120 --> 00:37:04,880
Speaker 1: this is where the mathematically smart choice is to invest

809
00:37:05,040 --> 00:37:08,960
Speaker 1: instead of paying off the debt below eight percent. But again,

810
00:37:09,160 --> 00:37:14,080
Speaker 1: we're not robots, we're not AI, we're humans with emotions.

811
00:37:14,280 --> 00:37:17,200
Speaker 1: And one of my we have a whatsap chat was

812
00:37:17,239 --> 00:37:19,000
Speaker 1: some of the girls I've known for like thirteen years,

813
00:37:19,000 --> 00:37:21,400
Speaker 1: and in that WhatsApp chat, we talk about our investments

814
00:37:21,440 --> 00:37:23,560
Speaker 1: and what we've been investing in, give each other ideas.

815
00:37:23,560 --> 00:37:26,480
Speaker 1: And one of the girls she has invested far, a

816
00:37:26,560 --> 00:37:28,680
Speaker 1: far little about she's just dipped her toes into it,

817
00:37:28,719 --> 00:37:31,160
Speaker 1: but she spent her whole time paying off her student

818
00:37:31,200 --> 00:37:34,400
Speaker 1: loan and is nearly paid off her mortgage. For her, sure,

819
00:37:34,680 --> 00:37:37,680
Speaker 1: the mathematically right choice would have been to invest her money.

820
00:37:38,200 --> 00:37:41,080
Speaker 1: And we look at finances in terms of optimizing revenue,

821
00:37:41,200 --> 00:37:44,240
Speaker 1: expected value, expected rate of return, but peace of mind

822
00:37:44,400 --> 00:37:48,840
Speaker 1: has value too. And if you've got debt that keeps

823
00:37:48,840 --> 00:37:50,799
Speaker 1: you up at night and that stresses you out and

824
00:37:50,840 --> 00:37:54,319
Speaker 1: that adds to the way you're feeling, then who's to

825
00:37:54,360 --> 00:37:55,880
Speaker 1: say that you should be investing first?

826
00:37:55,960 --> 00:37:57,400
Speaker 2: Absolutely, you want.

827
00:37:57,200 --> 00:37:58,920
Speaker 1: To be doing the things and making sure that your

828
00:37:58,920 --> 00:38:00,560
Speaker 1: finance is set up in the way that helps you

829
00:38:00,640 --> 00:38:02,840
Speaker 1: sleep at night. And then once you're comfortable on that

830
00:38:02,840 --> 00:38:06,040
Speaker 1: debt position, then you want to start investing and going

831
00:38:06,040 --> 00:38:08,719
Speaker 1: on towards your long term wealth journey. But that's why

832
00:38:08,719 --> 00:38:09,600
Speaker 1: I recommend.

833
00:38:09,320 --> 00:38:11,560
Speaker 2: I love that plan. That's such a great plan. It

834
00:38:11,560 --> 00:38:14,239
Speaker 2: feels so achievable in the beginning. It gives you a

835
00:38:14,239 --> 00:38:16,960
Speaker 2: step by step process because I think sometimes people are

836
00:38:17,000 --> 00:38:19,759
Speaker 2: debating do I save money first or do I pay

837
00:38:19,800 --> 00:38:21,600
Speaker 2: for my debt first? And you're like, well, actually, you'll

838
00:38:21,640 --> 00:38:25,000
Speaker 2: feel much better if you just have that cushion that's important.

839
00:38:25,000 --> 00:38:27,720
Speaker 2: You need that next thing, start paying off that debt,

840
00:38:27,800 --> 00:38:29,680
Speaker 2: and now Once you've done that, now further down the line,

841
00:38:29,680 --> 00:38:31,320
Speaker 2: we can start thinking about investing in everything else. And

842
00:38:31,360 --> 00:38:33,120
Speaker 2: I think you're so right that often we do the

843
00:38:33,120 --> 00:38:35,840
Speaker 2: opposite way. We think if I invest first and hopefully

844
00:38:36,120 --> 00:38:37,840
Speaker 2: one of these things will make me a bit of money,

845
00:38:38,120 --> 00:38:40,160
Speaker 2: Obviously it doesn't, or it takes five to ten years

846
00:38:40,239 --> 00:38:43,120
Speaker 2: or even longer. Yeah, and so the fear doesn't go away,

847
00:38:43,120 --> 00:38:45,120
Speaker 2: the insecurity doesn't go away, and now you're not saving

848
00:38:45,200 --> 00:38:49,239
Speaker 2: right either. So I really like that reframe because I'm

849
00:38:49,280 --> 00:38:51,319
Speaker 2: really hoping everyone who's listening and watching right now, like

850
00:38:51,600 --> 00:38:54,719
Speaker 2: Niches just laid out an absolute masterclass of what to

851
00:38:54,760 --> 00:38:56,439
Speaker 2: do with your money right now if you're in that

852
00:38:56,840 --> 00:38:59,600
Speaker 2: type position, and I could agree with you more, sorting

853
00:38:59,640 --> 00:39:02,719
Speaker 2: out your financial wellbeing and your peace first is a

854
00:39:02,800 --> 00:39:04,680
Speaker 2: much stronger foundation to build from.

855
00:39:04,800 --> 00:39:06,840
Speaker 1: Sure, people need to get better with their finances, but

856
00:39:06,880 --> 00:39:08,920
Speaker 1: I want them to use their finances to build a

857
00:39:08,960 --> 00:39:12,120
Speaker 1: life that's more aligned for them, more bigger, and more bolder.

858
00:39:12,320 --> 00:39:15,240
Speaker 1: And that comes with deciding what peace of mind means

859
00:39:15,239 --> 00:39:17,520
Speaker 1: for you and then doing what works for that.

860
00:39:17,960 --> 00:39:21,080
Speaker 2: Yeah, what are the three things we should stop wasting

861
00:39:21,160 --> 00:39:24,280
Speaker 2: money on that most of us don't even realize The first.

862
00:39:24,160 --> 00:39:26,120
Speaker 1: Thing people need to stop wasting money on is anything

863
00:39:26,160 --> 00:39:29,640
Speaker 1: that they think increases their value by showcasing to others

864
00:39:30,040 --> 00:39:30,440
Speaker 1: what they have.

865
00:39:30,680 --> 00:39:31,440
Speaker 2: Oh, good answer.

866
00:39:31,560 --> 00:39:33,640
Speaker 1: I mean it's one of the quickest ways to save

867
00:39:33,719 --> 00:39:37,480
Speaker 1: money by saying I'm not gonna buy this thing to

868
00:39:37,520 --> 00:39:40,200
Speaker 1: show other people that I've got it. And actually, with

869
00:39:40,239 --> 00:39:42,560
Speaker 1: every purchase that you buy, ask yourself, am I buying

870
00:39:42,600 --> 00:39:44,279
Speaker 1: this for me? Or am I buying it because I

871
00:39:44,280 --> 00:39:46,239
Speaker 1: want other people to know that I have it? So

872
00:39:46,320 --> 00:39:49,640
Speaker 1: that's the first overall thing I'd safe for you.

873
00:39:50,120 --> 00:39:52,640
Speaker 2: I'm remembering your pocus. I made early days, Like it

874
00:39:52,680 --> 00:39:56,759
Speaker 2: was just like this early day's watch that I bought

875
00:39:56,800 --> 00:39:59,839
Speaker 2: that I thought everyone would notice, and everyone hated it. Like,

876
00:40:00,480 --> 00:40:02,440
Speaker 2: first of all, no one noticed it, yeah, And so

877
00:40:02,480 --> 00:40:04,440
Speaker 2: then I'd try and like be like you know, like

878
00:40:04,640 --> 00:40:07,920
Speaker 2: just trying to like just hope that yeah, exactly. Yeah.

879
00:40:08,040 --> 00:40:10,600
Speaker 2: And then when people saw it, they just they weren't

880
00:40:10,600 --> 00:40:14,120
Speaker 2: impressed by it whatsoever. And I was like, wow, like

881
00:40:14,239 --> 00:40:17,840
Speaker 2: and that was like it wasn't even that expensive, you know,

882
00:40:17,920 --> 00:40:20,279
Speaker 2: even at the time it wasn't. And I was just like, oh, wow,

883
00:40:20,320 --> 00:40:23,040
Speaker 2: like that did nothing for me. Yeah, because I didn't

884
00:40:23,040 --> 00:40:24,719
Speaker 2: even like it myself. I bought it because everyone thing

885
00:40:24,840 --> 00:40:27,520
Speaker 2: would be cool, and now it's you know, I don't

886
00:40:27,520 --> 00:40:29,640
Speaker 2: even know where it is anymore, and it's like, no, like,

887
00:40:29,719 --> 00:40:31,120
Speaker 2: let me buy things that I think are cool and

888
00:40:31,200 --> 00:40:32,760
Speaker 2: I know the value of And yeah.

889
00:40:32,600 --> 00:40:34,400
Speaker 1: I think that's the difference. You do it. If you

890
00:40:34,440 --> 00:40:36,400
Speaker 1: buy it for yourself and it makes you feel good

891
00:40:36,480 --> 00:40:39,040
Speaker 1: or it makes you enjoy it, yeah, then go for it.

892
00:40:39,360 --> 00:40:41,000
Speaker 1: But if you're purely doing it thinking it's going to

893
00:40:41,000 --> 00:40:43,840
Speaker 1: bring you happiness based on other people's expectations or opinions,

894
00:40:44,120 --> 00:40:46,440
Speaker 1: don't bother. It's not. And I've made a similar mistake

895
00:40:46,560 --> 00:40:49,120
Speaker 1: my first three months on my paycheck when I started

896
00:40:49,120 --> 00:40:50,799
Speaker 1: at the first investment bank that I worked out, went

897
00:40:50,840 --> 00:40:53,200
Speaker 1: straight on a new car and it was the most

898
00:40:53,520 --> 00:40:56,000
Speaker 1: ridiculous purchase I could make, But I didn't have that

899
00:40:56,040 --> 00:40:58,759
Speaker 1: introspection at the time to know whether this is what

900
00:40:58,800 --> 00:41:00,680
Speaker 1: I wanted or if it was align My goals are not.

901
00:41:01,320 --> 00:41:04,040
Speaker 1: The second thing that people shouldn't waste their money on.

902
00:41:04,040 --> 00:41:07,719
Speaker 1: It is upgrades. I actually believe that when you buy

903
00:41:07,800 --> 00:41:11,560
Speaker 1: something for the first time, your level of happiness increases massively,

904
00:41:12,000 --> 00:41:14,879
Speaker 1: But then for every marginal upgrade that you have after that,

905
00:41:14,960 --> 00:41:17,840
Speaker 1: there's this diminishing law of return, where the amount that

906
00:41:17,840 --> 00:41:20,680
Speaker 1: you spend in proportion just doesn't match up to the

907
00:41:20,840 --> 00:41:24,600
Speaker 1: extra happiness that you get. So actually, rather than spending

908
00:41:24,640 --> 00:41:28,480
Speaker 1: that money on a new thing every single time, spending

909
00:41:28,480 --> 00:41:31,600
Speaker 1: it on experiences or memories has a way bigger impact

910
00:41:31,680 --> 00:41:37,120
Speaker 1: on your happiness and life satisfaction spending it on the

911
00:41:37,120 --> 00:41:37,719
Speaker 1: next big thing.

912
00:41:37,920 --> 00:41:41,040
Speaker 2: Yeah, yeah, absolutely, the new iPhone for example, like it's

913
00:41:41,080 --> 00:41:42,960
Speaker 2: going to be the same for the next four years, exactly.

914
00:41:43,239 --> 00:41:45,480
Speaker 1: Yeah, And every time you've bought the upgrade, you really

915
00:41:45,480 --> 00:42:03,160
Speaker 1: can barely tell the difference between the first one.

916
00:42:04,400 --> 00:42:06,719
Speaker 2: I really appreciate that you're thinking about this advice because

917
00:42:06,719 --> 00:42:09,440
Speaker 2: the quality of insight you're giving is allowing us all

918
00:42:09,440 --> 00:42:11,319
Speaker 2: to reflect. It would be so easy for you to

919
00:42:11,400 --> 00:42:14,600
Speaker 2: just say, cancel your subscriptions, cut out the coffee leg

920
00:42:14,760 --> 00:42:17,399
Speaker 2: and those are basic things that sure people can look at.

921
00:42:18,160 --> 00:42:20,920
Speaker 2: But the questions you're making us ask are actually the

922
00:42:21,040 --> 00:42:23,600
Speaker 2: drivers of how and why we spend money. And I

923
00:42:23,600 --> 00:42:25,239
Speaker 2: feel like that's so much more at the root of it.

924
00:42:25,320 --> 00:42:27,359
Speaker 1: And the third thing I would say is, actually, when

925
00:42:27,360 --> 00:42:29,440
Speaker 1: you're buying something, understand are you buying it for the

926
00:42:29,520 --> 00:42:31,719
Speaker 1: name or are you buying it for the purpose that

927
00:42:31,840 --> 00:42:35,240
Speaker 1: it holds the utility of it. So are you buying

928
00:42:35,560 --> 00:42:38,640
Speaker 1: a designer purse because of the designer of it, or

929
00:42:38,680 --> 00:42:40,800
Speaker 1: is it because you like the person? It can actually

930
00:42:40,840 --> 00:42:43,399
Speaker 1: help you carry your money around. Now, having that way

931
00:42:43,440 --> 00:42:45,759
Speaker 1: of thinking actually can shave off a lot of the

932
00:42:45,760 --> 00:42:48,480
Speaker 1: sais spending that you're unnecessarily doing in your day to day.

933
00:42:48,800 --> 00:42:51,399
Speaker 2: Yeah. Absolutely, I've had so many friends I remember I've

934
00:42:51,400 --> 00:42:54,120
Speaker 2: bought sunglasses or wallets that they thought look cool, but

935
00:42:54,200 --> 00:42:56,319
Speaker 2: then they never wear them or use them. Yeah, because

936
00:42:56,320 --> 00:42:57,640
Speaker 2: they don't actually like it the way it looks on

937
00:42:57,680 --> 00:42:59,840
Speaker 2: their face. But you made the purchase that day you

938
00:43:00,360 --> 00:43:02,359
Speaker 2: exchanged and now you can't give it back and all

939
00:43:02,360 --> 00:43:04,440
Speaker 2: the rest of it and you're stuck with it. No,

940
00:43:05,160 --> 00:43:07,799
Speaker 2: those are absolutely great, And I feel like it's so

941
00:43:08,040 --> 00:43:10,640
Speaker 2: true that so much of the money we spend is

942
00:43:10,800 --> 00:43:14,359
Speaker 2: either things that we're unaware of or because we're doing

943
00:43:14,360 --> 00:43:17,080
Speaker 2: it based on some subconscious need that we're trying to

944
00:43:17,080 --> 00:43:20,040
Speaker 2: figure out. And even if you do that, it's good

945
00:43:20,040 --> 00:43:22,920
Speaker 2: to just know even if you're spending based on some

946
00:43:23,400 --> 00:43:25,880
Speaker 2: subconscious need, it's like, it's good to just be aware

947
00:43:25,920 --> 00:43:28,640
Speaker 2: of it and accept that that's what it is. What

948
00:43:28,680 --> 00:43:31,000
Speaker 2: I want to do with you unishe is. I want

949
00:43:31,040 --> 00:43:33,719
Speaker 2: to talk about saving that actually works. And so this

950
00:43:33,840 --> 00:43:36,520
Speaker 2: is a little bit of a quick fire session on

951
00:43:36,600 --> 00:43:39,279
Speaker 2: saving specifically, because I feel like so much of your

952
00:43:39,280 --> 00:43:42,600
Speaker 2: work is based on helping us save better. Okay, what

953
00:43:42,800 --> 00:43:45,040
Speaker 2: habit do successful savers do?

954
00:43:45,560 --> 00:43:47,840
Speaker 1: Hold on? Hold on? But I also want to say, okay,

955
00:43:48,160 --> 00:43:49,960
Speaker 1: god that you only save so much?

956
00:43:50,600 --> 00:43:52,400
Speaker 2: Okay, go on, you're flipping the scripture.

957
00:43:52,640 --> 00:43:54,920
Speaker 1: Yeah, you say that, And I one thing I want

958
00:43:54,920 --> 00:43:57,480
Speaker 1: people to understand and to know is that saving is

959
00:43:57,520 --> 00:43:59,399
Speaker 1: only going to get you so far. You can only

960
00:43:59,440 --> 00:44:02,960
Speaker 1: cut so coopon codes, You could only find so many offers.

961
00:44:03,360 --> 00:44:06,200
Speaker 1: After a while, you realize that you cannot cut your

962
00:44:06,239 --> 00:44:09,960
Speaker 1: costs beyond a certain level. Whereas the other side, the

963
00:44:10,080 --> 00:44:13,480
Speaker 1: earning income side. That side is infinite and there is

964
00:44:13,560 --> 00:44:15,520
Speaker 1: unlimited potential. And I actually feel like a lot of

965
00:44:15,520 --> 00:44:19,560
Speaker 1: people miss the earning income side, and that has far

966
00:44:19,680 --> 00:44:24,680
Speaker 1: more scope to change your finances than saving money does.

967
00:44:24,960 --> 00:44:27,080
Speaker 1: We could just think about it when you're saving. If

968
00:44:27,120 --> 00:44:29,480
Speaker 1: you think about saving literally, what is it? If you

969
00:44:29,480 --> 00:44:32,960
Speaker 1: think about it more broadly, is the difference between your

970
00:44:32,960 --> 00:44:36,799
Speaker 1: income and your spending. And one way to increase your

971
00:44:36,800 --> 00:44:39,439
Speaker 1: saving is sure by cutting your spending. The other way

972
00:44:39,719 --> 00:44:44,439
Speaker 1: is by increasing the amount you're making. The easiest way

973
00:44:44,520 --> 00:44:48,920
Speaker 1: to increase your income is by creating more value. Money

974
00:44:49,160 --> 00:44:53,120
Speaker 1: is just an exchange of value, and the amount of

975
00:44:53,200 --> 00:44:56,719
Speaker 1: value you could create as a byproduct, money will come

976
00:44:56,719 --> 00:44:58,960
Speaker 1: from that. So with that in mind, how can you

977
00:44:59,000 --> 00:45:02,400
Speaker 1: increase your income? Firstly, how can you think about increasing

978
00:45:02,440 --> 00:45:04,680
Speaker 1: your value? If you work in a day job, what

979
00:45:04,680 --> 00:45:08,719
Speaker 1: can you do to make you more indispensable to your corporation?

980
00:45:08,920 --> 00:45:11,360
Speaker 1: If you work for a company, can you take on

981
00:45:11,440 --> 00:45:13,839
Speaker 1: projects that no one else wants to take on? Can

982
00:45:13,880 --> 00:45:17,879
Speaker 1: you increase the revenue for your team? Can you cut

983
00:45:17,880 --> 00:45:20,839
Speaker 1: the stress for your boss? What are these things that

984
00:45:21,000 --> 00:45:24,239
Speaker 1: can warrant a pay rise or a promotion? And if

985
00:45:24,280 --> 00:45:26,239
Speaker 1: you're working in a place or a situation or an

986
00:45:26,320 --> 00:45:30,359
Speaker 1: organization where you're almost capped with your increases and your

987
00:45:30,400 --> 00:45:33,160
Speaker 1: income and you can't get pay rises or promotions as

988
00:45:33,200 --> 00:45:35,800
Speaker 1: you can in other industries, then the same still applies

989
00:45:35,880 --> 00:45:38,319
Speaker 1: is how can you increase your value? But you want

990
00:45:38,320 --> 00:45:39,880
Speaker 1: to look for ways to do this outside of your

991
00:45:39,960 --> 00:45:44,480
Speaker 1: day job. Look at your friends, your families, your colleagues,

992
00:45:44,520 --> 00:45:47,120
Speaker 1: and ask yourself what do they need and what do

993
00:45:47,160 --> 00:45:49,680
Speaker 1: I have? That can solve what they need. What skills

994
00:45:49,719 --> 00:45:52,000
Speaker 1: can I charge for. If you think of your saving

995
00:45:52,080 --> 00:45:55,399
Speaker 1: as the difference between your earning and your spending, If

996
00:45:55,440 --> 00:45:58,920
Speaker 1: over time you keep earning more, you get those pay rises,

997
00:45:59,040 --> 00:46:03,040
Speaker 1: you get those promotions, and your earnings increasing, and you

998
00:46:03,160 --> 00:46:06,839
Speaker 1: keep your spending somewhat the same. Sure, enjoy upgrades. If

999
00:46:06,880 --> 00:46:08,880
Speaker 1: you get a small bonus, spend it a little bit

1000
00:46:08,920 --> 00:46:10,919
Speaker 1: to make yourself happy. I don't believe in the notion

1001
00:46:10,960 --> 00:46:14,920
Speaker 1: of just completely cutting out and just making your life consistent.

1002
00:46:15,360 --> 00:46:18,120
Speaker 1: But if the gap and the difference between your earning

1003
00:46:18,160 --> 00:46:22,000
Speaker 1: and your spending keeps increasing and getting wider, and you

1004
00:46:22,120 --> 00:46:25,440
Speaker 1: keep banking that difference and saving it away, that is

1005
00:46:25,560 --> 00:46:28,319
Speaker 1: rocket fuel for your finances. That is going to wait

1006
00:46:28,400 --> 00:46:31,840
Speaker 1: make a way bigger difference than just focusing on cutting

1007
00:46:31,880 --> 00:46:35,760
Speaker 1: back and finding ways to save, because you could only

1008
00:46:35,800 --> 00:46:37,680
Speaker 1: save as much as you earn, but you could always

1009
00:46:37,760 --> 00:46:38,160
Speaker 1: earn more.

1010
00:46:38,920 --> 00:46:41,120
Speaker 2: Yeah. I'm glad you did that refram and I'm glad

1011
00:46:41,120 --> 00:46:43,600
Speaker 2: you went there after talking about the habits for saving,

1012
00:46:43,680 --> 00:46:46,720
Speaker 2: because like you said, the habits will expand into wherever

1013
00:46:46,760 --> 00:46:48,960
Speaker 2: we are. But I could agree with you more. I

1014
00:46:49,000 --> 00:46:52,279
Speaker 2: remember in my family it was always about like making sure,

1015
00:46:52,560 --> 00:46:54,840
Speaker 2: we saved every penny that we could, and that was

1016
00:46:54,880 --> 00:46:58,080
Speaker 2: really important to us. But what I found was that

1017
00:46:58,160 --> 00:47:01,640
Speaker 2: the amount of time dead to savings. So for example,

1018
00:47:01,719 --> 00:47:05,080
Speaker 2: if if you'd bought something from the supermarket whatever, and

1019
00:47:05,440 --> 00:47:07,239
Speaker 2: you had to return it, or it wasn't perfect, or

1020
00:47:07,280 --> 00:47:09,080
Speaker 2: there was some it was past it cell by date

1021
00:47:09,200 --> 00:47:11,879
Speaker 2: or whatever. And I remember like sometimes my family would

1022
00:47:11,880 --> 00:47:13,839
Speaker 2: like sit on the phone for like an hour or

1023
00:47:13,840 --> 00:47:17,000
Speaker 2: two hours trying to save like thirty pence a pound,

1024
00:47:17,040 --> 00:47:19,399
Speaker 2: whatever it was. And as I grew older, I started

1025
00:47:19,400 --> 00:47:22,160
Speaker 2: to realize, well, if you put that two hours towards

1026
00:47:22,239 --> 00:47:25,640
Speaker 2: making money, it would just And I'm not saying this

1027
00:47:25,719 --> 00:47:28,239
Speaker 2: is easy. I'm not saying that you're stupid. If you're

1028
00:47:28,239 --> 00:47:29,960
Speaker 2: doing the opposite, that's not the point. The point is

1029
00:47:30,560 --> 00:47:34,239
Speaker 2: time is money. We've heard that for years. And you

1030
00:47:34,280 --> 00:47:37,160
Speaker 2: can either put two out once you've done everything. Nicheus said,

1031
00:47:37,640 --> 00:47:40,360
Speaker 2: you're either spending two hours trying to save an extra

1032
00:47:40,760 --> 00:47:43,960
Speaker 2: x amount, which like you said, is limited, or you

1033
00:47:44,000 --> 00:47:45,759
Speaker 2: have the ability to use that two hours to use

1034
00:47:45,760 --> 00:47:48,040
Speaker 2: your creativity, to use your passion, to use your energy,

1035
00:47:48,120 --> 00:47:51,160
Speaker 2: to use your skills, to use your whatever it may be,

1036
00:47:51,360 --> 00:47:53,799
Speaker 2: to actually create value in the world. Which has no limit.

1037
00:47:53,880 --> 00:47:56,080
Speaker 2: And I love the way you put that that saving

1038
00:47:56,120 --> 00:47:59,200
Speaker 2: has a limit, earning has no limit. But I think

1039
00:47:59,320 --> 00:48:01,320
Speaker 2: that's where it comes back to what we talked about earlier,

1040
00:48:01,320 --> 00:48:04,920
Speaker 2: where it's like, if you don't believe that you can

1041
00:48:04,960 --> 00:48:07,840
Speaker 2: make more. You listened to this conversation right now and

1042
00:48:07,880 --> 00:48:09,960
Speaker 2: you go, yeah, easy for you to say, you know,

1043
00:48:10,040 --> 00:48:13,200
Speaker 2: And it's like, and I remember being that person. And

1044
00:48:13,239 --> 00:48:16,080
Speaker 2: that's why I'm raising it in a vulnerable way. Is

1045
00:48:16,440 --> 00:48:18,759
Speaker 2: I grew up in a town where the most the

1046
00:48:18,800 --> 00:48:21,359
Speaker 2: wealthiest person I knew, made one hundred thousand a year,

1047
00:48:21,880 --> 00:48:24,160
Speaker 2: and I believe that if you were anywhere close to that,

1048
00:48:24,239 --> 00:48:26,480
Speaker 2: then you had made it in life, and that was

1049
00:48:26,480 --> 00:48:28,840
Speaker 2: the pinnacle. And I know that that's for some places

1050
00:48:28,880 --> 00:48:30,680
Speaker 2: that's a high amount, for some places that's a very

1051
00:48:30,719 --> 00:48:32,520
Speaker 2: low amount. But that was the amount where I grew up,

1052
00:48:32,840 --> 00:48:35,360
Speaker 2: and I knew one person that made that. Everyone else

1053
00:48:35,800 --> 00:48:38,960
Speaker 2: was making fifty K or thereabouts. I knew one person

1054
00:48:39,000 --> 00:48:41,439
Speaker 2: who made a hundred K, and everyone just thought he'd

1055
00:48:41,440 --> 00:48:43,120
Speaker 2: made it. And then as time went on, I met

1056
00:48:43,120 --> 00:48:45,520
Speaker 2: people who made one hundred k, not in a year,

1057
00:48:45,560 --> 00:48:48,000
Speaker 2: but in a month, and I was like, what, Like,

1058
00:48:48,040 --> 00:48:50,040
Speaker 2: I never knew someone could do that. I didn't even

1059
00:48:50,040 --> 00:48:52,880
Speaker 2: know an entrepreneur growing up, like everyone I knew pretty

1060
00:48:53,040 --> 00:48:55,400
Speaker 2: much worked a companies. So I was like, Oh, you

1061
00:48:55,440 --> 00:48:57,680
Speaker 2: can be an entrepreneur, Oh you can run your own business,

1062
00:48:57,719 --> 00:48:59,800
Speaker 2: like fascinating. Then I met someone who could make a

1063
00:48:59,840 --> 00:49:02,040
Speaker 2: hih hundred and k in a week. Yeah. And then

1064
00:49:02,080 --> 00:49:03,320
Speaker 2: I met someone who made a hundred care in a

1065
00:49:03,400 --> 00:49:05,520
Speaker 2: day and then an hour and whatever else it was,

1066
00:49:05,560 --> 00:49:08,000
Speaker 2: And I was like, oh, my gosh, I have been

1067
00:49:08,040 --> 00:49:10,600
Speaker 2: living on this tiny little island even though it wasn't

1068
00:49:11,120 --> 00:49:13,319
Speaker 2: not knowing what was possible. And I say that with

1069
00:49:13,480 --> 00:49:16,880
Speaker 2: empathy and love and compassion. Yeah, to tell you that

1070
00:49:17,000 --> 00:49:18,719
Speaker 2: no one who's making that much money is that much

1071
00:49:18,760 --> 00:49:22,279
Speaker 2: smarter than you, or better than you, or knows more

1072
00:49:22,320 --> 00:49:25,360
Speaker 2: than you. They have just found a skill and figured

1073
00:49:25,400 --> 00:49:27,359
Speaker 2: out a way to use that skill to add value

1074
00:49:27,400 --> 00:49:29,520
Speaker 2: to other people. Yeah, and school didn't teach us that.

1075
00:49:30,080 --> 00:49:32,000
Speaker 2: Chances of our parents didn't teach us that, not as

1076
00:49:32,040 --> 00:49:34,359
Speaker 2: a dig just as they didn't have the skills either,

1077
00:49:34,400 --> 00:49:37,560
Speaker 2: and they weren't given that training. And so don't limit

1078
00:49:37,640 --> 00:49:40,520
Speaker 2: yourself by that voice in your head that just goes

1079
00:49:40,800 --> 00:49:42,680
Speaker 2: you can't do that, You don't deserve it.

1080
00:49:42,800 --> 00:49:44,880
Speaker 1: Right, Yeah, And sometimes you have this voice is that

1081
00:49:44,960 --> 00:49:47,360
Speaker 1: telling you if you want more money, you're a bad person,

1082
00:49:47,920 --> 00:49:50,319
Speaker 1: or if they're looking forward to earn more, there's something

1083
00:49:50,360 --> 00:49:52,879
Speaker 1: about you that's not right. That is also completely wrong.

1084
00:49:52,960 --> 00:49:55,840
Speaker 1: That quote that is money is the root of all evil,

1085
00:49:56,000 --> 00:49:58,000
Speaker 1: which is not money is the root of all ebel.

1086
00:49:58,120 --> 00:50:00,239
Speaker 1: It's the love for money is the root of allie people.

1087
00:50:00,680 --> 00:50:04,880
Speaker 1: But trying to earn more isn't actually about the money necessarily,

1088
00:50:04,960 --> 00:50:08,040
Speaker 1: it's just about even it just for a lot of people,

1089
00:50:08,280 --> 00:50:11,160
Speaker 1: having more money just exasperates who you are at your core,

1090
00:50:11,360 --> 00:50:13,480
Speaker 1: and if you could do more with the money that

1091
00:50:13,520 --> 00:50:17,680
Speaker 1: you have, then actually there's no harm in also wanting

1092
00:50:17,800 --> 00:50:21,200
Speaker 1: more for yourself. And a lot of people say, oh,

1093
00:50:21,239 --> 00:50:23,200
Speaker 1: I don't know if I can earn more, I don't

1094
00:50:23,200 --> 00:50:25,520
Speaker 1: know if this is for me. I would recommend even

1095
00:50:25,520 --> 00:50:28,600
Speaker 1: setting yourself an hourly rate in your head, putting an

1096
00:50:28,600 --> 00:50:32,600
Speaker 1: hourly rate for yourself, and anything that you can outsource

1097
00:50:32,680 --> 00:50:35,759
Speaker 1: for less than that hourly rate, outsource it. So even

1098
00:50:35,800 --> 00:50:38,799
Speaker 1: for instance, if you're spending three hours trying to save

1099
00:50:38,920 --> 00:50:41,239
Speaker 1: ten dollars, what is your hourly rate? Because you just

1100
00:50:41,239 --> 00:50:43,640
Speaker 1: spend three hours trying to save ten dollars, whereas if

1101
00:50:43,680 --> 00:50:46,440
Speaker 1: you spend that three hours trying to earn more that

1102
00:50:46,480 --> 00:50:49,200
Speaker 1: would change your finances, that would have a way bigger impact.

1103
00:50:49,360 --> 00:50:50,799
Speaker 2: That's a great way of thinking about it. I like

1104
00:50:50,840 --> 00:50:53,120
Speaker 2: the hourly rate breakdown because you basically just said you're

1105
00:50:53,320 --> 00:50:56,000
Speaker 2: your hours are worth three dollars each, and you know

1106
00:50:56,080 --> 00:50:57,960
Speaker 2: that you could go out there and add more value

1107
00:50:58,360 --> 00:51:00,879
Speaker 2: and make a lot more. There's a lot of talk

1108
00:51:00,920 --> 00:51:04,359
Speaker 2: about in our generation right now and the generation that's

1109
00:51:04,360 --> 00:51:06,600
Speaker 2: growing up, around the value of money, and that's why

1110
00:51:06,640 --> 00:51:08,839
Speaker 2: I love your reframe of financial happiness. I think you're

1111
00:51:08,880 --> 00:51:13,120
Speaker 2: spot on to talk about financial happiness over financial success.

1112
00:51:13,640 --> 00:51:16,080
Speaker 2: What are the keys to people who are financially happy,

1113
00:51:16,400 --> 00:51:17,880
Speaker 2: not just financially successful.

1114
00:51:18,200 --> 00:51:20,160
Speaker 1: I'm just going to be talking from my experience here

1115
00:51:20,520 --> 00:51:22,920
Speaker 1: where I've almost feel like I've lived two lives in

1116
00:51:22,960 --> 00:51:27,319
Speaker 1: a way where I worked for a corporation for nine

1117
00:51:27,360 --> 00:51:30,520
Speaker 1: years years of it, and part of that I loved

1118
00:51:30,560 --> 00:51:33,160
Speaker 1: what I did. I found it really intellectually stimulating. I

1119
00:51:33,239 --> 00:51:35,960
Speaker 1: enjoyed the work, I enjoyed the environment. And this is

1120
00:51:36,000 --> 00:51:38,160
Speaker 1: not to say that working in a corporation is not

1121
00:51:38,320 --> 00:51:40,759
Speaker 1: the thing to do at all. If you're an employee

1122
00:51:40,920 --> 00:51:42,920
Speaker 1: own that and you enjoy it. That is totally for you.

1123
00:51:43,000 --> 00:51:45,359
Speaker 1: If you're an entrepreneur, you enjoy that totally. That's for you.

1124
00:51:45,640 --> 00:51:48,440
Speaker 1: But for me, I found that my version of financial

1125
00:51:48,440 --> 00:51:50,799
Speaker 1: happiness was to be able to work on things that

1126
00:51:51,080 --> 00:51:53,840
Speaker 1: genuinely made me happy, To be able to take on

1127
00:51:53,920 --> 00:51:56,080
Speaker 1: projects that I wanted to take on and that I

1128
00:51:56,160 --> 00:51:58,840
Speaker 1: knew I can do really well at, and also just

1129
00:51:58,880 --> 00:52:03,200
Speaker 1: being able to have more control, freedom, options, and dependence

1130
00:52:03,560 --> 00:52:06,840
Speaker 1: with my life. And whilst I don't necessarily think you

1131
00:52:06,840 --> 00:52:10,120
Speaker 1: could you have to get that from outside of as

1132
00:52:10,160 --> 00:52:12,839
Speaker 1: an entrepreneur or doing your own thing, I do think

1133
00:52:12,840 --> 00:52:16,239
Speaker 1: that a lot of people do look for the same things. Yeah,

1134
00:52:16,280 --> 00:52:19,560
Speaker 1: and that comes from getting your finances in check and

1135
00:52:19,719 --> 00:52:22,120
Speaker 1: setting it up in a way where, like we said before,

1136
00:52:22,200 --> 00:52:24,440
Speaker 1: can you can carve a life that's more aligned to

1137
00:52:24,640 --> 00:52:25,280
Speaker 1: what you want.

1138
00:52:25,600 --> 00:52:28,720
Speaker 2: I also think there's so much of an idealization around

1139
00:52:28,719 --> 00:52:31,319
Speaker 2: being an entrepreneur today, Like we're living in that era

1140
00:52:31,400 --> 00:52:33,560
Speaker 2: where it's like quit your job, do what you love,

1141
00:52:33,600 --> 00:52:35,640
Speaker 2: and whatever else it is. And I think about this

1142
00:52:35,800 --> 00:52:39,440
Speaker 2: two ways. One is I worked inside organizations with people

1143
00:52:39,440 --> 00:52:41,560
Speaker 2: who are really smart and sharp and are still at

1144
00:52:41,560 --> 00:52:44,799
Speaker 2: those organizations doing really well for themselves, and I have

1145
00:52:44,840 --> 00:52:47,840
Speaker 2: an amazing team that I couldn't do what I do without.

1146
00:52:48,239 --> 00:52:50,319
Speaker 2: And they're incredible and I'm very lucky to work with

1147
00:52:50,360 --> 00:52:53,040
Speaker 2: them every day. And I look at that and I

1148
00:52:53,080 --> 00:52:57,000
Speaker 2: go this pressure that's on people today for everyone to

1149
00:52:57,040 --> 00:52:59,960
Speaker 2: figure out what their own path looks like. I'm like,

1150
00:53:00,200 --> 00:53:02,240
Speaker 2: I don't think it's fair to put that on everyone.

1151
00:53:02,280 --> 00:53:04,080
Speaker 2: I don't think everyone's meant for it, and I don't

1152
00:53:04,080 --> 00:53:07,560
Speaker 2: think it's better than someone who succeeds inside an organization.

1153
00:53:07,800 --> 00:53:11,200
Speaker 2: Like you know, Steve Balmer was inside Microsoft. He didn't

1154
00:53:11,239 --> 00:53:13,440
Speaker 2: invent Microsoft. Yeah, it's one of the wealthiest people on

1155
00:53:13,480 --> 00:53:16,560
Speaker 2: the planet. And Bill Gates invented Microsoft, and he's one

1156
00:53:16,560 --> 00:53:18,120
Speaker 2: of the wealthiest people on the planet. And I'm like,

1157
00:53:18,680 --> 00:53:20,840
Speaker 2: who's done it better? Who's done it worse. It's like, well, no,

1158
00:53:20,920 --> 00:53:22,480
Speaker 2: maybe they were just playing to their strengths.

1159
00:53:22,600 --> 00:53:25,720
Speaker 1: Yeah, exactly. And survivorship bias is real. We always see

1160
00:53:25,760 --> 00:53:27,640
Speaker 1: the wins and the people who have made it online

1161
00:53:27,680 --> 00:53:30,600
Speaker 1: and the people who have made entrepreneurship a thing, but

1162
00:53:30,680 --> 00:53:33,560
Speaker 1: you don't hear about all the losses and the failures

1163
00:53:33,560 --> 00:53:35,360
Speaker 1: that happened. And even if you look at content creation,

1164
00:53:36,239 --> 00:53:38,239
Speaker 1: like the amount of people that actually make money through

1165
00:53:38,280 --> 00:53:41,200
Speaker 1: creating content, which is what we usually see on social media,

1166
00:53:41,280 --> 00:53:44,080
Speaker 1: is such a small small percent, and even that most

1167
00:53:44,080 --> 00:53:47,360
Speaker 1: of them don't earn more than paycheck to paycheck. So

1168
00:53:47,840 --> 00:53:50,239
Speaker 1: I think there's a lot of a lot to say

1169
00:53:50,360 --> 00:53:53,480
Speaker 1: by having that regular paycheck coming in, that security coming in,

1170
00:53:54,120 --> 00:53:56,919
Speaker 1: that knowing that you don't have to put a huge

1171
00:53:56,920 --> 00:53:59,640
Speaker 1: amount of capital at risk, and that there is very

1172
00:53:59,640 --> 00:54:03,000
Speaker 1: little downside, at least in the short term. So yeah,

1173
00:54:03,040 --> 00:54:05,000
Speaker 1: I don't think that this whole message about doing your

1174
00:54:05,040 --> 00:54:07,200
Speaker 1: own thing and being an entrepreneur as a way to

1175
00:54:07,239 --> 00:54:09,000
Speaker 1: go at all at all.

1176
00:54:09,320 --> 00:54:11,040
Speaker 2: What's the best investment you ever made?

1177
00:54:11,200 --> 00:54:14,880
Speaker 1: The best investment I've ever made is in myself. And

1178
00:54:15,280 --> 00:54:18,360
Speaker 1: when I had to change what I do, what I

1179
00:54:18,400 --> 00:54:20,799
Speaker 1: did from banking to what I do now. I mean

1180
00:54:21,000 --> 00:54:24,880
Speaker 1: I spent my days on spreadsheets and doing presentations and

1181
00:54:24,920 --> 00:54:27,360
Speaker 1: speaking to clients. I didn't know how to use the camera.

1182
00:54:27,480 --> 00:54:29,759
Speaker 1: I don't know how to edit. I didn't know how

1183
00:54:29,800 --> 00:54:33,200
Speaker 1: to do any of the things that comes with content creation.

1184
00:54:33,680 --> 00:54:35,799
Speaker 1: And I spent a lot of money behind it. I

1185
00:54:35,800 --> 00:54:38,320
Speaker 1: spent a lot of money learning it. I spent money

1186
00:54:38,360 --> 00:54:41,200
Speaker 1: on how to edit because the first five months I

1187
00:54:41,239 --> 00:54:45,360
Speaker 1: was editing myself. I spent money on like everything you

1188
00:54:45,360 --> 00:54:48,839
Speaker 1: could think of, a new camera, a new Mike's and

1189
00:54:48,880 --> 00:54:52,360
Speaker 1: that was all to fulfill this creativity for me. And

1190
00:54:52,400 --> 00:54:54,440
Speaker 1: so it was even though I didn't know if I

1191
00:54:54,440 --> 00:54:56,160
Speaker 1: was going to make money from it. It took me

1192
00:54:56,320 --> 00:54:58,799
Speaker 1: eleven months for me to actually start making money through

1193
00:54:58,800 --> 00:55:02,440
Speaker 1: social media. I didn't care because for me it was

1194
00:55:02,440 --> 00:55:04,759
Speaker 1: such an escape from my day to day job. I'd

1195
00:55:04,840 --> 00:55:06,360
Speaker 1: go to work and I'll be doing my job and

1196
00:55:06,360 --> 00:55:09,120
Speaker 1: I'll be crushing it there. But I know deep inside

1197
00:55:09,160 --> 00:55:12,040
Speaker 1: that part of me wanted more. And for me, going

1198
00:55:12,080 --> 00:55:14,279
Speaker 1: home in the evening and spending myur weekends working on

1199
00:55:14,320 --> 00:55:17,279
Speaker 1: this creative passion project just gave me life. It was

1200
00:55:17,360 --> 00:55:19,000
Speaker 1: kind of like this escape from my day to day

1201
00:55:19,040 --> 00:55:23,359
Speaker 1: And actually I spent money on this project not knowing

1202
00:55:23,360 --> 00:55:25,280
Speaker 1: if it was going to bring me anything in return,

1203
00:55:25,360 --> 00:55:28,839
Speaker 1: but it increased my happiness massively, and then over time,

1204
00:55:28,920 --> 00:55:33,880
Speaker 1: I've yeah, it's completely changed my life. But that investment

1205
00:55:33,960 --> 00:55:36,200
Speaker 1: was in myself and just to keep improving in my

1206
00:55:36,239 --> 00:55:39,560
Speaker 1: skills and knowledge. And we really are so afraid to

1207
00:55:39,680 --> 00:55:42,440
Speaker 1: spend on our skills and knowledge, and we really sometimes

1208
00:55:42,440 --> 00:55:46,920
Speaker 1: we look at courses and online programs as like the scam,

1209
00:55:46,960 --> 00:55:51,160
Speaker 1: But really someone's condensing so much of the information into

1210
00:55:51,239 --> 00:55:53,200
Speaker 1: a short space. And I've bought so many and if

1211
00:55:53,239 --> 00:55:56,080
Speaker 1: I didn't, my trajectory and where I would have got

1212
00:55:56,080 --> 00:55:57,759
Speaker 1: to it would have been a lot slower. Yeah, I'm

1213
00:55:57,760 --> 00:56:01,440
Speaker 1: just learning other people's knowledge, and so that's thing. Investing

1214
00:56:01,480 --> 00:56:03,520
Speaker 1: in your skills and your knowledge, that's one thing that

1215
00:56:03,560 --> 00:56:06,120
Speaker 1: no one can take away from you. You could go bankrupt,

1216
00:56:06,160 --> 00:56:08,000
Speaker 1: you can lose everything, but as long as you have

1217
00:56:08,040 --> 00:56:10,680
Speaker 1: those two you can start and build yourself up with

1218
00:56:10,719 --> 00:56:13,200
Speaker 1: everything else. It can be taken away, it can be stolen,

1219
00:56:13,239 --> 00:56:15,440
Speaker 1: can be robbed, but you own those things for life.

1220
00:56:15,480 --> 00:56:18,040
Speaker 1: And I think that is hands down the best investment

1221
00:56:18,040 --> 00:56:18,479
Speaker 1: I've made.

1222
00:56:18,760 --> 00:56:22,759
Speaker 2: Yeah, great answer. I feel like that's like a critical

1223
00:56:23,200 --> 00:56:26,719
Speaker 2: pattern in all high performers is that they'd all say

1224
00:56:26,760 --> 00:56:29,600
Speaker 2: the best investment that made is investing in themselves. Like

1225
00:56:29,640 --> 00:56:32,279
Speaker 2: it's not a tech investment or something that made them

1226
00:56:32,280 --> 00:56:34,720
Speaker 2: a billion dollars or a million dollars whatever, it's always

1227
00:56:34,760 --> 00:56:36,920
Speaker 2: this investment they made in themselves because they know that

1228
00:56:36,920 --> 00:56:40,680
Speaker 2: that's all they have and everything came from that. And

1229
00:56:41,040 --> 00:56:44,120
Speaker 2: I think we're so quick to again, this isn't a criticism.

1230
00:56:44,160 --> 00:56:47,279
Speaker 2: It's a reflection point of it's really easy to spend

1231
00:56:47,280 --> 00:56:49,400
Speaker 2: a lot of money on a vacation. Vacations are important,

1232
00:56:49,400 --> 00:56:53,880
Speaker 2: rest is important. I am completely a proponent of avoiding burnout.

1233
00:56:54,360 --> 00:56:56,120
Speaker 2: But at the same time, there may be a period

1234
00:56:56,120 --> 00:56:59,480
Speaker 2: of your life with that investment in yourself may pay

1235
00:56:59,520 --> 00:57:03,600
Speaker 2: off for future vacations. And I think there's this challenge

1236
00:57:03,600 --> 00:57:05,920
Speaker 2: we have today of this short term long term thinking.

1237
00:57:06,440 --> 00:57:08,880
Speaker 2: I think maybe for our parents and those generations, they

1238
00:57:08,920 --> 00:57:11,040
Speaker 2: thought too long term and they didn't have any fun

1239
00:57:11,080 --> 00:57:13,760
Speaker 2: in the short term and they didn't really create those memories.

1240
00:57:14,000 --> 00:57:15,920
Speaker 2: And then for our generation, I think the pressure is

1241
00:57:15,920 --> 00:57:17,960
Speaker 2: the opposite. It's like, have fun now, do everything now,

1242
00:57:18,040 --> 00:57:19,880
Speaker 2: because you're not going to be around forever. And the

1243
00:57:19,880 --> 00:57:22,000
Speaker 2: reality is chances now you probably have a few more

1244
00:57:22,040 --> 00:57:24,640
Speaker 2: decades left and that's going to be really stressful. So

1245
00:57:24,640 --> 00:57:27,280
Speaker 2: I feel like we've got to find this middle ground.

1246
00:57:27,920 --> 00:57:30,919
Speaker 2: As always is the balance, and I don't mean work

1247
00:57:30,960 --> 00:57:33,479
Speaker 2: life balance, but I mean the balance of like short

1248
00:57:33,560 --> 00:57:35,640
Speaker 2: term and long term thinking, Like I know I want

1249
00:57:35,640 --> 00:57:37,520
Speaker 2: to be happy today, yeah, but I want to be

1250
00:57:37,520 --> 00:57:40,600
Speaker 2: happy tomorrow and in ten years time. Yeah.

1251
00:57:40,600 --> 00:57:42,440
Speaker 1: And you can't take your money to the grave with

1252
00:57:42,520 --> 00:57:45,320
Speaker 1: you like you've got to be spending it in your

1253
00:57:45,360 --> 00:57:48,640
Speaker 1: lifetime at some point. And there's that Ronnie ware who's

1254
00:57:48,680 --> 00:57:50,760
Speaker 1: written that book, the Top Five Regrets of the Dying,

1255
00:57:51,400 --> 00:57:53,840
Speaker 1: And for those who anyone listening to that doesn't know,

1256
00:57:53,960 --> 00:57:56,680
Speaker 1: she wrote this book, Top Five Regrets of the Dying,

1257
00:57:56,720 --> 00:57:59,480
Speaker 1: where she based on her experience where she was a

1258
00:57:59,560 --> 00:58:01,160
Speaker 1: nurse and spent time with people who were in the

1259
00:58:01,240 --> 00:58:04,320
Speaker 1: last weeks of their life. And what she found was

1260
00:58:04,320 --> 00:58:06,840
Speaker 1: that the main regret for people was that they didn't

1261
00:58:06,840 --> 00:58:09,000
Speaker 1: have the courage to live a life true to them.

1262
00:58:09,480 --> 00:58:12,080
Speaker 1: No one spoke about earning more or making more money,

1263
00:58:12,200 --> 00:58:14,840
Speaker 1: or wishing they beat the S and P. Five hundred

1264
00:58:14,960 --> 00:58:17,320
Speaker 1: or any of that. It was just living a life

1265
00:58:17,360 --> 00:58:19,760
Speaker 1: true to them and so always using money in a

1266
00:58:19,800 --> 00:58:22,440
Speaker 1: way to live a life that's true to you.

1267
00:58:22,720 --> 00:58:25,960
Speaker 2: Yeah. Yeah, what's the worst thing you've ever spent money

1268
00:58:26,040 --> 00:58:27,840
Speaker 2: on or the worst money you've ever spent?

1269
00:58:28,240 --> 00:58:32,760
Speaker 1: The worst money I've ever spent was on my first

1270
00:58:32,840 --> 00:58:34,880
Speaker 1: couple of months of paycheck going towards the new car.

1271
00:58:35,600 --> 00:58:37,920
Speaker 1: I mean, at the time, it was the best thing ever.

1272
00:58:38,120 --> 00:58:39,960
Speaker 1: I mean, and I think there was a time and

1273
00:58:40,000 --> 00:58:42,960
Speaker 1: a place when you can do that. But at that

1274
00:58:43,040 --> 00:58:46,560
Speaker 1: point in my life. It wasn't necessary and I could

1275
00:58:46,560 --> 00:58:48,640
Speaker 1: have spent in so many other ways. But sometimes I

1276
00:58:48,680 --> 00:58:50,439
Speaker 1: look back and I say to myself, Oh, I wish

1277
00:58:50,480 --> 00:58:52,840
Speaker 1: I took some risks earlier on in my life, but

1278
00:58:52,920 --> 00:58:54,880
Speaker 1: I wasn't able to because I didn't have my finances

1279
00:58:54,920 --> 00:58:56,600
Speaker 1: set up in a way that enabled me to do it.

1280
00:58:56,800 --> 00:58:59,680
Speaker 1: And if I was a bit more conscious earlier on

1281
00:59:00,120 --> 00:59:02,919
Speaker 1: might have been able to play a little bit less

1282
00:59:02,920 --> 00:59:04,120
Speaker 1: safe early on.

1283
00:59:04,400 --> 00:59:06,680
Speaker 2: I think there is a feeling of being behind. Yeah,

1284
00:59:06,720 --> 00:59:08,720
Speaker 2: and you've raised this earlier, but like just going back

1285
00:59:08,760 --> 00:59:11,400
Speaker 2: to it, like there's this feeling of like I wish

1286
00:59:11,480 --> 00:59:13,680
Speaker 2: I started saving when I was twenty five. Yeah, I

1287
00:59:13,720 --> 00:59:15,560
Speaker 2: wish I started saving when I was Stay. What would

1288
00:59:15,560 --> 00:59:18,120
Speaker 2: you say to that person who's saying, I'm listening to Niche,

1289
00:59:18,120 --> 00:59:19,840
Speaker 2: I wish I wish you were in my life twenty

1290
00:59:19,920 --> 00:59:20,320
Speaker 2: years ago.

1291
00:59:20,800 --> 00:59:25,280
Speaker 1: The best time to planetary was ten years ago. The

1292
00:59:25,320 --> 00:59:28,959
Speaker 1: second best time is today. You can't turn back time.

1293
00:59:29,480 --> 00:59:31,720
Speaker 1: But if you're sitting there watching this in your like

1294
00:59:31,760 --> 00:59:34,720
Speaker 1: thirties and forties, you have so many other things that

1295
00:59:34,760 --> 00:59:37,720
Speaker 1: are going for you. You probably have a higher income

1296
00:59:37,720 --> 00:59:39,360
Speaker 1: than when you did when you were in your twenties

1297
00:59:39,440 --> 00:59:41,120
Speaker 1: or thirties, so you might be able to afford a

1298
00:59:41,160 --> 00:59:45,760
Speaker 1: bigger portion of your paycheck. And secondly, you have likely

1299
00:59:45,920 --> 00:59:49,280
Speaker 1: a more clearer definition of what you're aiming for and

1300
00:59:49,320 --> 00:59:51,880
Speaker 1: what you're aiming towards, and that can be very very

1301
00:59:51,880 --> 00:59:54,960
Speaker 1: powerful in the long run, because a lot of saving

1302
00:59:55,040 --> 00:59:58,560
Speaker 1: comes down to having something that you're saving towards and

1303
00:59:58,640 --> 01:00:00,480
Speaker 1: knowing why you're doing it. And when you have a

1304
01:00:00,600 --> 01:00:02,960
Speaker 1: very strong reason why you're doing it, you're a lot

1305
01:00:03,000 --> 01:00:05,600
Speaker 1: more likely to keep it up or keep with it.

1306
01:00:06,120 --> 01:00:09,280
Speaker 1: So for anyone listening who says, I wish I'd started

1307
01:00:09,280 --> 01:00:12,240
Speaker 1: this twenty years ago, you're in a place where you

1308
01:00:12,280 --> 01:00:14,480
Speaker 1: can you have a lot of unfair advantages with the

1309
01:00:14,520 --> 01:00:16,480
Speaker 1: place of the life you're own at the moment, and

1310
01:00:16,880 --> 01:00:18,680
Speaker 1: use that to help yourself with where you are.

1311
01:00:18,920 --> 01:00:20,400
Speaker 2: All right, all right, we're going to play a game

1312
01:00:20,440 --> 01:00:22,920
Speaker 2: that men the team came up with called this or

1313
01:00:23,000 --> 01:00:25,840
Speaker 2: That Money Edition. So we're gonna give you a choice

1314
01:00:26,280 --> 01:00:29,320
Speaker 2: and you have to decide so niche this or that

1315
01:00:29,480 --> 01:00:33,600
Speaker 2: money edition? Financial discipline or financial flexibility?

1316
01:00:34,040 --> 01:00:38,960
Speaker 1: Financial flexibility? Explain, you've got to live life in seasons.

1317
01:00:39,440 --> 01:00:42,920
Speaker 1: There are different parts of your life where spending on

1318
01:00:42,960 --> 01:00:46,400
Speaker 1: different things will have outsized benefits and spending on it

1319
01:00:46,600 --> 01:00:49,520
Speaker 1: later on your life. And when you're so stuck in

1320
01:00:49,560 --> 01:00:53,760
Speaker 1: discipline and structure, you forget the whole serendipity of life.

1321
01:00:53,880 --> 01:00:56,800
Speaker 1: You sometimes aren't so spontaneous, you miss things, you don't

1322
01:00:56,800 --> 01:01:01,200
Speaker 1: take on opportunities. When you're flexible with your spending, flexible financially,

1323
01:01:01,720 --> 01:01:03,160
Speaker 1: you want to take a broad of view on life.

1324
01:01:03,200 --> 01:01:04,760
Speaker 1: You want to zoom out and at times on your

1325
01:01:04,760 --> 01:01:07,240
Speaker 1: life when it's times to save, you save one. Times

1326
01:01:07,280 --> 01:01:09,520
Speaker 1: in life, when it's times to spend and make the

1327
01:01:09,560 --> 01:01:11,040
Speaker 1: most of life, you make the most of that.

1328
01:01:11,320 --> 01:01:14,720
Speaker 2: Well said, you get a five hundred dollar bonus, invest

1329
01:01:14,800 --> 01:01:16,640
Speaker 2: it or use it to pay off debt.

1330
01:01:16,640 --> 01:01:21,120
Speaker 1: Me personally, anyone depends. I mean, this is the boring answer,

1331
01:01:21,200 --> 01:01:23,280
Speaker 1: but it depends what debt you have. If you have

1332
01:01:23,360 --> 01:01:26,120
Speaker 1: debt over eight percent, pay that debt off. If it's

1333
01:01:26,200 --> 01:01:29,040
Speaker 1: less than eight percent. I mean, I'm a mathematical person.

1334
01:01:29,120 --> 01:01:31,360
Speaker 1: I always go for the financially optimal decision when it

1335
01:01:31,360 --> 01:01:33,680
Speaker 1: comes to debt and investing.

1336
01:01:33,800 --> 01:01:37,240
Speaker 2: So invest at expensive wedding or save for the future.

1337
01:01:37,280 --> 01:01:38,040
Speaker 1: Save for the future.

1338
01:01:38,240 --> 01:01:39,280
Speaker 2: Talk to us about that.

1339
01:01:39,440 --> 01:01:41,440
Speaker 1: I do love the idea. I do. I'm not against

1340
01:01:41,480 --> 01:01:44,240
Speaker 1: weddings at all. I love the idea of having everyone

1341
01:01:44,760 --> 01:01:48,280
Speaker 1: in your life on both sides together in one room,

1342
01:01:48,320 --> 01:01:50,200
Speaker 1: and it's probably the only time where both of your

1343
01:01:50,200 --> 01:01:53,040
Speaker 1: partners will have you and your partner will have all

1344
01:01:53,080 --> 01:01:55,680
Speaker 1: your friends and family one room, and that doesn't come

1345
01:01:55,720 --> 01:01:57,439
Speaker 1: around again. But I don't think you need to spend

1346
01:01:57,440 --> 01:01:58,880
Speaker 1: a lot of money to be able to do that.

1347
01:01:59,240 --> 01:02:02,680
Speaker 1: And there is a lot more that comes from a

1348
01:02:02,760 --> 01:02:06,400
Speaker 1: return on a relationship when you spend towards the life

1349
01:02:06,400 --> 01:02:09,000
Speaker 1: that you're trying to create with someone than just hosting

1350
01:02:09,040 --> 01:02:09,680
Speaker 1: a big wedding.

1351
01:02:10,000 --> 01:02:12,080
Speaker 2: I think about it all the time, just how much

1352
01:02:12,080 --> 01:02:14,480
Speaker 2: you spent on weddings, and even compared to how much

1353
01:02:14,520 --> 01:02:16,560
Speaker 2: we had the time we me and Raley had at

1354
01:02:16,560 --> 01:02:18,080
Speaker 2: the time when we got married, and how much we

1355
01:02:18,080 --> 01:02:19,640
Speaker 2: spent on our wedding. I'm like, I look back and

1356
01:02:19,680 --> 01:02:22,760
Speaker 2: I go, that was so irresponsible. Yeah, And I look

1357
01:02:22,800 --> 01:02:25,040
Speaker 2: back and I think, oh my gosh, Like I can't

1358
01:02:25,040 --> 01:02:27,800
Speaker 2: believe no one just talked some sense into that. And

1359
01:02:27,800 --> 01:02:29,240
Speaker 2: we didn't even spend that much. But we spent a

1360
01:02:29,280 --> 01:02:31,040
Speaker 2: lot for what we had, is what I'm saying.

1361
01:02:31,080 --> 01:02:33,280
Speaker 1: Yeah, No, same and same here, And it's because that's

1362
01:02:33,320 --> 01:02:35,840
Speaker 1: what everyone around you is doing, and so when you're

1363
01:02:35,880 --> 01:02:38,320
Speaker 1: not doing it, you feel like you're behind or something

1364
01:02:38,720 --> 01:02:41,480
Speaker 1: something's not going right. But yeah, it's not something that

1365
01:02:41,520 --> 01:02:42,919
Speaker 1: you always reflect on looking back.

1366
01:02:43,240 --> 01:02:47,080
Speaker 2: Yeah, credit cards only or debit only if you.

1367
01:02:47,160 --> 01:02:49,240
Speaker 1: Know how to use credit cards in a way that

1368
01:02:49,480 --> 01:02:53,400
Speaker 1: can stack up for you. Credit cards only if you

1369
01:02:53,440 --> 01:02:56,840
Speaker 1: are paying them off in time, because if you use

1370
01:02:56,880 --> 01:02:59,640
Speaker 1: credit cards correctly, the bonuses the advantages that you get

1371
01:02:59,640 --> 01:03:01,800
Speaker 1: from it is way bigger than what you'd get from

1372
01:03:01,800 --> 01:03:04,120
Speaker 1: debit card, not to mention also the insurance and the

1373
01:03:04,160 --> 01:03:06,240
Speaker 1: protection you get from credit card spending as well. But

1374
01:03:06,320 --> 01:03:09,000
Speaker 1: if you are someone who thinks that with a credit

1375
01:03:09,000 --> 01:03:11,720
Speaker 1: card you're just going to spend unnecessarily with money that

1376
01:03:11,760 --> 01:03:14,560
Speaker 1: you don't actually have, then debit.

1377
01:03:14,360 --> 01:03:18,280
Speaker 2: Cardeah seeing a high balance in your bank account or

1378
01:03:18,320 --> 01:03:20,480
Speaker 2: knowing your money is working by investing it.

1379
01:03:22,200 --> 01:03:24,760
Speaker 1: I mean, it's so rewarding looking at your bank account

1380
01:03:24,800 --> 01:03:27,080
Speaker 1: and seeing that go up in value, but it's a

1381
01:03:27,200 --> 01:03:31,280
Speaker 1: very almost irresponsible way to look at your finances. And

1382
01:03:31,680 --> 01:03:34,160
Speaker 1: when you invest your money, you can still think of

1383
01:03:34,200 --> 01:03:38,560
Speaker 1: that money as yours. It's just in different forms. Rather

1384
01:03:38,600 --> 01:03:41,840
Speaker 1: than in cash, it's growing for you in assets. So

1385
01:03:42,200 --> 01:03:45,600
Speaker 1: one hundred percent. Anything over your emergency fund and money

1386
01:03:45,600 --> 01:03:47,800
Speaker 1: that you don't need to the next five years investor

1387
01:03:48,000 --> 01:03:49,440
Speaker 1: let that money be working for you.

1388
01:03:49,720 --> 01:03:54,120
Speaker 2: Thousand dollars online shopping for address or one thousand dollars invested, a.

1389
01:03:54,160 --> 01:03:57,920
Speaker 1: Thousand dollars invested hands down, unless you're going to a

1390
01:03:57,960 --> 01:04:00,440
Speaker 1: place where the way you look might generate more than

1391
01:04:00,440 --> 01:04:01,680
Speaker 1: a thousand dollars for you.

1392
01:04:01,720 --> 01:04:04,680
Speaker 2: Good answer, Good answer. I love it well, don niche,

1393
01:04:04,720 --> 01:04:07,520
Speaker 2: I think you did great on this or that you're fantastic.

1394
01:04:08,120 --> 01:04:10,959
Speaker 2: We end every episode of On Purpose with a final five.

1395
01:04:11,280 --> 01:04:13,480
Speaker 2: These questions have to be answered in one word to

1396
01:04:13,560 --> 01:04:15,920
Speaker 2: one sentence maximum all right needs to show out. These

1397
01:04:15,920 --> 01:04:18,480
Speaker 2: are your final five. Question Number one, what is the

1398
01:04:18,520 --> 01:04:21,280
Speaker 2: best financial advice You've ever heard or received?

1399
01:04:21,440 --> 01:04:23,800
Speaker 1: Best financial advice I've ever heard of received is you

1400
01:04:23,880 --> 01:04:26,760
Speaker 1: can't take money to the grape with you. You've got to

1401
01:04:26,800 --> 01:04:27,920
Speaker 1: spend it in your lifetime.

1402
01:04:28,480 --> 01:04:31,520
Speaker 2: Second question, what is the worst financial advice you've ever

1403
01:04:31,560 --> 01:04:32,360
Speaker 2: heard or received?

1404
01:04:32,480 --> 01:04:35,520
Speaker 1: The worst financial advice I've ever received is save your

1405
01:04:35,520 --> 01:04:38,360
Speaker 1: way for retirement. You cannot save your way to retirement,

1406
01:04:38,360 --> 01:04:40,520
Speaker 1: and this day and age, it is just not possible

1407
01:04:40,800 --> 01:04:42,479
Speaker 1: with the way things are going. With the way cost

1408
01:04:42,480 --> 01:04:44,560
Speaker 1: of living is going, you have to be investing your money.

1409
01:04:46,320 --> 01:04:50,240
Speaker 2: Question number three, what would you do differently now looking

1410
01:04:50,280 --> 01:04:51,880
Speaker 2: back on your financial journey.

1411
01:04:52,120 --> 01:04:53,720
Speaker 1: I mean, there was a period in my life where

1412
01:04:53,760 --> 01:04:56,360
Speaker 1: I spent a lot of money on material items and

1413
01:04:56,440 --> 01:05:00,640
Speaker 1: design items, and looking the part since then, I've quite

1414
01:05:00,640 --> 01:05:02,439
Speaker 1: a lot of good money decisions, I'd like to say,

1415
01:05:02,440 --> 01:05:03,919
Speaker 1: and I use it in a way that really really

1416
01:05:03,920 --> 01:05:06,440
Speaker 1: does bring me happiness today. But if I could go

1417
01:05:06,480 --> 01:05:08,200
Speaker 1: back in time, I would have spent more money on

1418
01:05:08,240 --> 01:05:11,280
Speaker 1: things that drive me in transit happiness, which I didn't

1419
01:05:11,280 --> 01:05:14,840
Speaker 1: at the time, and it would have changed those years

1420
01:05:14,920 --> 01:05:15,160
Speaker 1: for me.

1421
01:05:15,720 --> 01:05:19,680
Speaker 2: Question number four, If you could give your younger self

1422
01:05:19,920 --> 01:05:22,920
Speaker 2: a piece of advice, what would you say, little niche.

1423
01:05:23,000 --> 01:05:24,960
Speaker 1: Little niche, If I could give you a piece of advice,

1424
01:05:24,960 --> 01:05:27,840
Speaker 1: I would say, and it's that quote, which is leap

1425
01:05:28,080 --> 01:05:30,600
Speaker 1: and the net will appear. There have been so many

1426
01:05:30,640 --> 01:05:34,880
Speaker 1: times where I feel like I'm standing at the edge

1427
01:05:34,880 --> 01:05:36,760
Speaker 1: of a cliff and I don't know if I can

1428
01:05:37,000 --> 01:05:39,400
Speaker 1: take the leap and have it in me to do

1429
01:05:39,440 --> 01:05:42,360
Speaker 1: whatever the thing is. And as I've got older, I've

1430
01:05:42,400 --> 01:05:44,240
Speaker 1: just found that as long as you're in motion, you

1431
01:05:44,240 --> 01:05:45,880
Speaker 1: will find a way to make it work. You will

1432
01:05:45,960 --> 01:05:49,080
Speaker 1: find a way in motion to make that net for yourself.

1433
01:05:49,520 --> 01:05:51,320
Speaker 2: A fifth and final question, we asked this to every

1434
01:05:51,320 --> 01:05:53,520
Speaker 2: guest who's ever been on the show. If you could

1435
01:05:53,560 --> 01:05:56,320
Speaker 2: create one law that everyone in the world had to follow,

1436
01:05:56,640 --> 01:05:57,240
Speaker 2: what would it be.

1437
01:05:57,400 --> 01:05:58,919
Speaker 1: I'm going to make this a financial one.

1438
01:05:59,000 --> 01:06:00,520
Speaker 2: Yeah, please, And I'm going to not.

1439
01:06:00,480 --> 01:06:03,160
Speaker 1: To treat other people with the amount of money that

1440
01:06:03,200 --> 01:06:05,200
Speaker 1: you they show that they have, or that you think

1441
01:06:05,200 --> 01:06:09,200
Speaker 1: that they have. I think so often we assign a

1442
01:06:09,320 --> 01:06:12,040
Speaker 1: value to someone based on the dollar number in front

1443
01:06:12,040 --> 01:06:14,840
Speaker 1: of them, but actually there's so much more that comes

1444
01:06:14,840 --> 01:06:18,120
Speaker 1: with a person, so much more characteristics that define a person.

1445
01:06:18,800 --> 01:06:21,080
Speaker 1: So and I also think it will solve so many

1446
01:06:21,120 --> 01:06:24,960
Speaker 1: issues about not having to spend money for external validation.

1447
01:06:25,440 --> 01:06:27,360
Speaker 1: That'll probably be a lot of that I would love

1448
01:06:27,680 --> 01:06:28,240
Speaker 1: to create.

1449
01:06:28,480 --> 01:06:31,320
Speaker 2: Well said, Yeah, Misha, thank you so much.

1450
01:06:31,440 --> 01:06:32,160
Speaker 1: Thank you so much.

1451
01:06:32,400 --> 01:06:34,960
Speaker 2: On purpose, everyone who's listening to watching, make sure you

1452
01:06:34,960 --> 01:06:37,680
Speaker 2: subscribe to Niche's YouTube channel. You can follow her across

1453
01:06:37,760 --> 01:06:40,480
Speaker 2: social media, and of course check out her programs all

1454
01:06:40,480 --> 01:06:44,640
Speaker 2: about financial training, financial savviness, and creating a better future

1455
01:06:44,680 --> 01:06:49,120
Speaker 2: for yourself. Nische, thank you so much for being so open, thoughtful, insightful.

1456
01:06:49,240 --> 01:06:51,760
Speaker 2: This I felt like I learned so much and I'm

1457
01:06:51,760 --> 01:06:53,480
Speaker 2: so grateful we've got to spend this time together.

1458
01:06:53,680 --> 01:06:55,880
Speaker 1: Thank you so much, Anir For you, Jay, you're exactly

1459
01:06:55,880 --> 01:06:58,800
Speaker 1: the same person as you are online and offline, like

1460
01:06:59,160 --> 01:07:01,680
Speaker 1: you could tell that you're your whole while online is

1461
01:07:01,720 --> 01:07:04,080
Speaker 1: trying to serve as many people as possible and to

1462
01:07:04,120 --> 01:07:06,680
Speaker 1: give back as much as you can, and even offline,

1463
01:07:07,080 --> 01:07:09,840
Speaker 1: you do that in your day to day and everything

1464
01:07:09,840 --> 01:07:12,000
Speaker 1: you do is about helping other people. And I'm so

1465
01:07:12,040 --> 01:07:14,120
Speaker 1: grateful to be to see both sides of you. So

1466
01:07:14,360 --> 01:07:15,000
Speaker 1: thank you well.

1467
01:07:15,000 --> 01:07:17,280
Speaker 2: I appreciate that. And congratulations, dear. I can't wait for

1468
01:07:17,280 --> 01:07:20,400
Speaker 2: so much more to come. Thank you so excited for you, Anicia, amazing.

1469
01:07:20,560 --> 01:07:23,200
Speaker 2: If you're ready to take control of your finances create

1470
01:07:23,240 --> 01:07:25,720
Speaker 2: freedom on your own terms, you want to hear my

1471
01:07:25,800 --> 01:07:29,320
Speaker 2: conversation with Cody Sanchez. If you want to be successful today,

1472
01:07:29,400 --> 01:07:32,000
Speaker 2: is that there's really there's two types of people. One

1473
01:07:32,040 --> 01:07:34,400
Speaker 2: type of person will be really successful and one type

1474
01:07:34,440 --> 01:07:37,440
Speaker 2: of person will never be successful until they change their mentality.

1475
01:07:37,640 --> 01:07:39,760
Speaker 2: And we call these fixers verse freeloaders.