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Speaker 1: She's on the Money. She's on the Money.

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Speaker 2: Hello, and welcome to She's on the Money, the podcast

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Speaker 2: for millennials who want financial freedom, back by popular demand.

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Speaker 2: Today we are jumping straight back into another Q and

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Speaker 2: A episode, helping answer the questions we didn't have time

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Speaker 2: for in our last Q and A show. Expect wedding chats,

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Speaker 2: home loan tips, and ideas for where best to funnel

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Speaker 2: your extra cash, plus plenty.

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Speaker 3: More that is diverse, Georgia, I appreciate it.

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Speaker 2: I know now. My name is Georgia King, and joining

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Speaker 2: me as always is financial advisor Victoria Divine. We are

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Speaker 2: back today to answer more of our communities burning questions.

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Speaker 2: How ex are you?

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Speaker 3: I am stoked, No, genuinely, I'm really excited because these

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Speaker 3: are really fun. They're like shortsh up to the point

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Speaker 3: things where I feel like you guys walk away with

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Speaker 3: a whole understanding of like random topics Like is that

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Speaker 3: not fun? I think that's fun.

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Speaker 2: Yeah, it's like the taste of lots of different topics

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Speaker 2: in one episode.

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Speaker 3: Right, So, George, we probably should just jump into them,

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Speaker 3: shouldn't we.

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Speaker 2: Let's do it be okay, So our first question here

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Speaker 2: is from Bonnie. She has asked, if I'm in my

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Speaker 2: early twenties lucky and I have a decent chunk of savings,

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Speaker 2: how should I be investing slash growing this She feels

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Speaker 2: that it's being wasted in the bank where she's not

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Speaker 2: getting much interest off her money at all. But she

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Speaker 2: also doesn't want to invest a larger portion in shares

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Speaker 2: as she might want it in a few years for

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Speaker 2: a home loan. So what do you do in that case?

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Speaker 3: Be oh, you got to go see a financial advice

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Speaker 3: or my friend, because that is asking for financial advice,

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Speaker 3: and it would be very irresponsible of me as the

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Speaker 3: financial advisor, to provide you with direct advice.

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Speaker 2: But here's gentially, that's generally.

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Speaker 3: Where you should be looking. So first things first, there

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Speaker 3: are different time frames for investment. So you could invest

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Speaker 3: for five years, you could invest for ten years. The

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Speaker 3: priority could be investing for the long term. And obviously

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Speaker 3: I talk a lot on this podcast about investing for

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Speaker 3: the long term because I want you guys to be

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Speaker 3: creating financial freedom. But I know a lot of people

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Speaker 3: who are saying, oh cool, probably want to buy a

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Speaker 3: house in like seven to ten years. But I'm going

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Speaker 3: to invest in the short term and sell down my

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Speaker 3: asset once I'm there, because I want exposure to those returns.

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Speaker 3: So it's not to say you shouldn't invest. There's obviously

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Speaker 3: just risk that comes along with that when you talk

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Speaker 3: about it being wasted in the bank. Obviously, we are

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Speaker 3: really lucky here in Australia to have a really safe

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Speaker 3: banking system and we also have access to interest rates

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Speaker 3: on some of our banking products, which means you can

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Speaker 3: make a return. But if you're wanting more of a

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Speaker 3: retur than that, I can't actually recommend a direct product

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Speaker 3: because it would include more risk and what you've just

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Speaker 3: said is you're not willing to take more risk than that.

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Speaker 3: So sometimes we really need to think like what is

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Speaker 3: the plan here? And it's actually really common question where

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Speaker 3: they're like, oh, I feel like my money's been wasted

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Speaker 3: in the bank, but I don't want to invest. I'm like, well,

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Speaker 3: there's actually no unicorn middle product where it's like, oh

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Speaker 3: my gosh, great returns, absolutely no risk, can pull it

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Speaker 3: out whenever you want, So you can buy a house

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Speaker 3: like it's not going to happen, and if it was,

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Speaker 3: I'd be recommending it because it would be safer and

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Speaker 3: less risky than investing in shares, and it would also

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Speaker 3: be better than the bank. So you would have heard

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Speaker 3: this from me already. I promise there are a couple

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Speaker 3: of ways about going about it, though. You could be

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Speaker 3: looking at maybe less risky shares and having a more

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Speaker 3: conservative portfolio so that you are exposed to a bit

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Speaker 3: more risk, but you're also not, you know, in a

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Speaker 3: super high growth portfolio that's arguably going to see more fluctuation.

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Speaker 3: But I think it's really important to understand what your

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Speaker 3: timeframes on different goals are and if you're saying should

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Speaker 3: I be investing, I believe, from my personal opinion, yes,

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Speaker 3: at some point you need to start investing for our future.

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Speaker 3: If you've got superannuation, you are pretty an investor, and

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Speaker 3: we should be thinking about our financial future as a whole,

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Speaker 3: not just prioritizing. I want a house, I don't want

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Speaker 3: a car, and so every single dollar I earn goes

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Speaker 3: into that again, bigger conversation. I can't give direct advice,

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Speaker 3: but that's what I would say when we start thinking

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Speaker 3: about that concept.

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Speaker 2: Okay, so it's not then completely wasted in the bank,

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Speaker 2: Like it's okay to leave it there, it's okay to just.

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Speaker 3: Have savings, especially if you're saving for home deposit or

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Speaker 3: you are saving for your first car. In fact, something

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Speaker 3: that I think is really important to talk about is

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Speaker 3: your first home deposit or your first one hundred thousand

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Speaker 3: dollars worth of savings are going to be the hardest.

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Speaker 3: They're going to be the hardest because you don't see

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Speaker 3: any compounding. You don't see any return on the money

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Speaker 3: that you have saved or invested in the short term.

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Speaker 3: Whereas after that, I promise everything thing is so much

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Speaker 3: easier because a five percent return on five grand not

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Speaker 3: that much. But when we start looking at five percent

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Speaker 3: return on one hundred thousand dollars, you're like, oh, that

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Speaker 3: seems to be a fair bit, and it starts to

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Speaker 3: compound over time. So what we want to do is,

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Speaker 3: if you're in your early twenties, it can feel like

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Speaker 3: a long slog, it can feel like you want better returns,

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Speaker 3: but it's about being consistent. And if the plan is

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Speaker 3: to get into the property market, great, go with that.

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Speaker 3: Save for your first home, get there. That property is

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Speaker 3: then going to, hopefully if you've bought a good property,

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Speaker 3: increase in value, or it might be an investment property

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Speaker 3: that then generates you income, but if it increases in value,

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Speaker 3: then we have what's called leverage, so we can start

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Speaker 3: borrowing against an asset so you don't have to start

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Speaker 3: from scratch again. And the same thing can be said

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Speaker 3: to be true in the share market, where your first

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Speaker 3: one hundred thousand dollars is the hardest to earn and

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Speaker 3: the hardest to actually get into the market, and once

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Speaker 3: you have surpassed that, everything becomes a little bit easier

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Speaker 3: because your shares start to compound and your dividends start

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Speaker 3: to reinvest and you start to actually seek growth. Whereas

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Speaker 3: you know, when we are dealing with and I'm not

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Speaker 3: calling them small by any stretch to the imagination, but

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Speaker 3: in this day and age, I think it's really important

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Speaker 3: for me to be quite direct about this. It's going

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Speaker 3: to be hard, and there are going to be decisions

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Speaker 3: that you need to make along this journey where you go, oh,

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Speaker 3: I'd really like to invest and get some returns, but like,

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Speaker 3: it's actually not worth it in the short term because

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Speaker 3: it's car, or it's a house deposit, or it's actually

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Speaker 3: allocated to something else.

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Speaker 2: Yeah, so probably creating a three year strategy is not

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Speaker 2: going to be that beneficial.

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Speaker 3: No, I don't think so. Especially if you're saying I

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Speaker 3: would like to expose an asset to the shed market

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Speaker 3: for less than five years, I'd probably really shy away

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Speaker 3: from that because I am really adverse to risk and

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Speaker 3: I wouldn't want you taking unnecessary risk. But in saying that,

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Speaker 3: if it was anything more than that, absolutely considers something

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Speaker 3: that could help you a lot. That journey, that's in

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Speaker 3: line with your risk profile.

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Speaker 2: Beautiful. All right, good luck with the home ownership journey, Bonnie.

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Speaker 2: We are rooting for you. Okay. Vanessa is our next

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Speaker 2: question here, v Lord. She wants to know the pros

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Speaker 2: and cons of renting, specifically in retirement. So we did

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Speaker 2: a podcast on this on Renting Forever a few weeks

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Speaker 2: ago now of a few months. Even she says she's

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Speaker 2: always been taught that it's better to have a home

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Speaker 2: of your own when you do retire, so you're not

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Speaker 2: paying rent out of either your investments or your pensions

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Speaker 2: and so on. So what are the pros and cons

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Speaker 2: v of renting in retirement?

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Speaker 3: So there are a number, and she's actually correct. We

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Speaker 3: did not talk about the benefits of renting or the

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Speaker 3: cons of renting when you are retired. Because obviously that

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Speaker 3: would mean that you had to have capital to pay

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Speaker 3: for the rent, right, But if we're working towards a

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Speaker 3: safe and comfortable retirement, we will always have funds available.

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Speaker 3: Like that's the purpose of financial security and creating financial freedom.

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Speaker 3: So if we are talking about the pros of renting

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Speaker 3: in retirement, obviously you're going to have the flexibility to

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Speaker 3: move around and live a lifestyle you want when you

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Speaker 3: are younger. You don't have to save up for a

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Speaker 3: house deposit and then pay back a mortgage. A lot

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Speaker 3: of people will say, oh, my gosh, but the I

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Speaker 3: want to own a house outright, so that the pension

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Speaker 3: is all mine or my super money is all mine

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Speaker 3: and it's not being spent on accommodation. Like, Okay, each

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Speaker 3: to their own. I think that there are a number

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Speaker 3: of benefits to just owning your own things. But let's

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Speaker 3: be honest, that is a privilege that is denied to

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Speaker 3: so many of us. And it's actually kind of cool

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Speaker 3: that through to retirement we can rent. Like, at the

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Speaker 3: end of the day, being able to rent just means

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Speaker 3: that we need to allocate our budget consistently so that

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Speaker 3: we actually take into account that expense and you know,

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Speaker 3: maybe once you become retired, if you are a homeowner,

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Speaker 3: that expense drops off, but it doesn't mean you have

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Speaker 3: no expenses. You're going to still need an income. Whereas

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Speaker 3: if you are retiring and you haven't purchased a property

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Speaker 3: that is your live in forever property, you're going to

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Speaker 3: need to budget for a home, right, you're going to

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Speaker 3: need budget for accommodation. But the idea that that can

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Speaker 3: then be far more flexible is really appealing. So the

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Speaker 3: idea that you could go, okay, cool, like rent's a

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Speaker 3: bit expensive and I want to change my lifestyle, you

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Speaker 3: can do that very easily. You could scale up as

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Speaker 3: well if you had more disposable income than you thought,

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Speaker 3: maybe rent a bougie apartment in comparison to the house

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Speaker 3: that you'd been renting. And then obviously the maintenance costs

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Speaker 3: that come along with a home you wouldn't have to

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Speaker 3: take into consideration because that would be the landlord's responsibility.

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Speaker 3: But when it comes to cons obviously a landlord could

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Speaker 3: bump up the rent or sell your home, which could

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Speaker 3: be a massive headache. Especially as you're getting older, you

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Speaker 3: might need a greater amount of superannuation to live off

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Speaker 3: because you will be paying rent as well as compared

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Speaker 3: to having a mortgage paid off. But again, maybe if

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Speaker 3: you're a bit younger and you're in this situation where

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Speaker 3: we are planning for retirement, the plan of purchasing a

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Speaker 3: home paying off a home might actually be far more

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Speaker 3: financially than planning to rent in retirement. So that's where

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Speaker 3: we need to and in financial advice Land, we actually

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Speaker 3: project these things out and do analysis where we go, okay, cool,

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Speaker 3: what would that look like in the future if we

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Speaker 3: sat Georgia down now and she invested XYZ, What would

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Speaker 3: it mean if we changed this particular part of her circumstance.

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Speaker 3: What do it mean if she rented forever instead of

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Speaker 3: making a family home purchase. What do I mean if

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Speaker 3: she made a family home purchase? What would her cash

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Speaker 3: flow look like? What would her budgeting look like? I

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Speaker 3: think it is very important to take into consideration all

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Speaker 3: the options if that's in line with your values, and

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Speaker 3: also remembering that if we own a family home and

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Speaker 3: we do need to claim sent link or a pension,

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Speaker 3: that family home's value is not taken into consideration. So hypothetically, Georgia,

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Speaker 3: if you have a lot of super and you're not

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Speaker 3: able to claim the pension, but you actually need to

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Speaker 3: because it's like a lot of super but not enough

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Speaker 3: super for you to pay for your retirement. If you

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Speaker 3: then purchased a house with that superranuation money, you could

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Speaker 3: potentially then claim the pension as well, because that asset

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Speaker 3: is not taken into consideration when working out whether you

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Speaker 3: get the pension or not. It's other assets outside of that,

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Speaker 3: So talking about that as obviously a benefit of owning

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Speaker 3: instead of renting, and then also AFSA, So the Australian

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Speaker 3: Financial Services Authorities calculations say that if you're renting in

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Speaker 3: Sydney as a couple, you would need a total of

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Speaker 3: one million, one hundred and sixty six thousand dollars to retire,

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Speaker 3: and singles would need one million and forty five thousand

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Speaker 3: dollars to retire, which would then cover their rent to

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Speaker 3: live a quote comfortable lifestyle. And obviously Sydney is our

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Speaker 3: most expensive city in the country, but it's worth thinking

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Speaker 3: about and maybe if you are renting and those figures

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Speaker 3: are out of reach, then living rigidly might be a

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Speaker 3: smarter idea financially. So I think when we start to

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Speaker 3: break it down and talk about it, like how much

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Speaker 3: would it cost you to buy a house in the

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Speaker 3: location that you live? So example, if you live regionally

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Speaker 3: and houses cost three hundred grand, that's very different Georgia

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Speaker 3: than saying, Okay, the average house price in my area

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Speaker 3: is a million dollars, so I need to save a

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Speaker 3: million dollars purchase property, and then I'm also going to

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Speaker 3: need a million dollars in super to live comfortably, Like

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Speaker 3: which one is it? What are we prioritizing? How is

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Speaker 3: that going to work? Because it's not one or the other,

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Speaker 3: it's which situation is going to work best for us? Gotcha?

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Speaker 2: Our next question here V is from Claire. So she

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Speaker 2: is at a stage in life where she can start

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Speaker 2: investing in shares, and she is wondering if it's better

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Speaker 2: to concentrate on building her super as it's pretty low

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Speaker 2: at the moment, or if she should buy shares outside

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Speaker 2: of Super.

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Speaker 3: Claire, Claire, Claire. What is with you guys asking specific

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Speaker 3: financial advice questions which I'm legally not allowed to answer,

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Speaker 3: Like if it is about you, my friends, I cannot

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Speaker 3: give you a direct answer. And that's not a bad thing.

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Speaker 3: I'm not lying coming at Claire or any But I

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Speaker 3: do want to point out I'm not trying to skirt

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Speaker 3: around the issue, guys. I'm not trying to be like,

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Speaker 3: oh my gosh, I'm not going to answer Claire's question directly. Legally,

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Speaker 3: I can't because I haven't looked at Claire's personal situation,

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Speaker 3: haven't done a fact find. I don't know what other

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Speaker 3: assets Claire owns. I don't know what her income looks like.

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Speaker 3: I don't know even what superanuation fund she's in. So

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Speaker 3: it would be incredibly irresponsible of me to be like,

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Speaker 3: Claire put more in super like. I don't know that,

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Speaker 3: And the answer to that question, if I answer it directly,

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Speaker 3: could be not in her best interests, which is really

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Speaker 3: upsetting because I would love to be like, Okay, George,

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Speaker 3: this is what you do. This is how you create

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Speaker 3: financial freedoms. Follow step A, B, C, and D, and

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Speaker 3: you are going to be golden like. I wish I

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Speaker 3: could answer it that way, Unfortunately I can't. So this

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Speaker 3: is the way we're going to do it today. So Claire,

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Speaker 3: my friend, you are going to have a think about

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Speaker 3: your future and what you want to achieve. Supernuation is

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Speaker 3: a brilliant tax vehicle. Did you hear that Georgia I

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Speaker 3: did not call superannuation investment. I said it was a

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Speaker 3: tax vehicle, which is essentially what it is. To me.

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Speaker 3: Superranuation is not an investment. It is a tax structure

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Speaker 3: which enables you to pay fifteen cents on every dollar

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Speaker 3: instead of your marginal tax rate on the money that

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Speaker 3: you put into superranuation, which is then invested on your

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Speaker 3: behalf by a superanuation fund that manages that money. So

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Speaker 3: we need to look at super and go, okay, cool,

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Speaker 3: this is a great tax structure the moment. If you're

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Speaker 3: not paying any tax, then it doesn't really matter too

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Speaker 3: much where you're investing because you're already not paying much tax.

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Speaker 3: But it might be beneficial for you tax wise to

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Speaker 3: put some more money into super because the tax difference

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Speaker 3: is obviously quite significant because you could be earning more

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Speaker 3: than one hundred and eighty grand and paying the top

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Speaker 3: marginal tax rate. So it kind of makes sense to

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Speaker 3: start considering that as an option. But the other thing

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Speaker 3: with supranuation is we need to remember that you cannot

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Speaker 3: access that until you're sixty and properly at sixty five,

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Speaker 3: So are you willing to wait that long for your

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Speaker 3: future financial freedom. If the answer is no, that's okay.

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Speaker 3: It's still a priority. It is still something that we

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Speaker 3: are contributing to constantly. I mean it's now ten percent

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Speaker 3: of our incomes that get put into superannuation, which is significant.

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Speaker 3: I don't know anyone Georgia who can turn around and

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Speaker 3: be like, oh my gosh, since I started working, I

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Speaker 3: have been investing ten percent of my income. That's what

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Speaker 3: we're doing with SUPER Like. We need to care about

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Speaker 3: it more so from my perspective, we need to work

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Speaker 3: out what that looks like and pick an investment strategy

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Speaker 3: or pick a way of investing, whether that's more into

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Speaker 3: super or going and getting a platform with shares these

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Speaker 3: or going and setting up six Park or going on Superhero.

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Speaker 3: It doesn't matter which one it is. You need to

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Speaker 3: work out what is going to work best for you. So, Claire,

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Speaker 3: my friend, if you want to start investing in shares,

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Speaker 3: that's super exciting, but have a think about where you

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Speaker 3: want to see those returns. If you want to access

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Speaker 3: that before retirement, then go and do that. There isn't

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Speaker 3: a right or wrong. It is down to your values.

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Speaker 3: I'm sorry, George, you need to pick questions where I

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Speaker 3: don't have to be elusive. No, that was good.

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Speaker 2: I feel like Claire would have gotten a little bit

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Speaker 2: out of that, So thank you.

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Speaker 3: VD.

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Speaker 2: Let's move on here to quite an interesting question that's

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Speaker 2: come from sim. She is after some finance tips for

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Speaker 2: neurodivergent people. So she said, for example, people with ASD

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Speaker 2: or ADHD. So what are your tips here, V, because

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Speaker 2: we haven't spoken about this before.

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Speaker 3: Yeah, okay, So I think that this one is an

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Speaker 3: interesting topic to cover because there are so many neurodivergent

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Speaker 3: people in our community, and often you don't know who

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Speaker 3: they are. Neurodivergence could be lots of different things. So

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Speaker 3: there are several types of recognized neurodivergence. So there are

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Speaker 3: things from autism and aspergers to dyslexia, epilepsy, you've got hyperlexia,

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Speaker 3: You've got things like Tourette's and obsessive compulsive disorder, and

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Speaker 3: then AD and ADHD, which are two very different things

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Speaker 3: that do different things if you look it up. Even

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Speaker 3: left handedness is considered being neurodivergent, which is interesting that

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Speaker 3: I'm taking from that is me, as a left hander neurodivergent.

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Speaker 3: Obviously I am perfect person to talk about this, but

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Speaker 3: more specifically, I do actually have two degrees in psychology

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Speaker 3: Georgia and I've actually studied neurodivergence, which is really interesting.

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Speaker 3: So from what I understand, when we talk about neurodivergence,

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Speaker 3: it would be very hard for me to go, Okay, cool,

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Speaker 3: if you're a neurodivergent, here's the answer, Because someone who

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Speaker 3: has autism versus someone who has ADD or even ADHD

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Speaker 3: or dyslexia, it's all very different. The advice is going

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Speaker 3: to be very different. But I think what we are

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Speaker 3: going to discuss here is ADHD because I feel like

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Speaker 3: there's been a very big surge of diagnoses of ADHD recently,

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Speaker 3: particularly for women, because we are learning more about what

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Speaker 3: those markers are, those indicators look like for them. So,

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Speaker 3: from what I understand about ADHD, people with this, they

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Speaker 3: struggle when it comes to things like concentrating, impulsivity, and

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Speaker 3: over activity, and that means that money management can be

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Speaker 3: super tough. It can mean that the concentration that is

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Speaker 3: required to manage money is just not going to be

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Speaker 3: able to be given. And impulsive spending for people with

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Speaker 3: ADHD is a massive issue. I have spoken to so

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Speaker 3: many people in our community who have ADHD and they're

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Speaker 3: like Victoria, I cannot get my impulsive spending under control.

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Speaker 3: So it makes sense that neurodivergent people do really struggle

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Speaker 3: with money management, and I hope that she's on the

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Speaker 3: money can actually be a really safe space for you

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Speaker 3: to learn about it. But I also think that when

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Speaker 3: it comes to money management, one of the best ways

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Speaker 3: to deal with this is automation. We need to put

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Speaker 3: a plan in place that actually works for us when

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Speaker 3: we aren't able to work with it. So that means

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Speaker 3: setting up a banking structure that makes sense. This is

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Speaker 3: something that I have worked with for a number of

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Speaker 3: years now. It's actually one of the reasons I started

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Speaker 3: building my budget and cash Flow master class to actually

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Speaker 3: get on top of these things because I have a

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Speaker 3: number of clients that are neurodivergent and it's about automating things.

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Speaker 3: So when it comes to bills, putting them on direct

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Speaker 3: debit for people who have ADHDS really helpful because even

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Speaker 3: if they get the bill and it's front of mind,

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Speaker 3: they'll just put off paying it and they just won't

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Speaker 3: do it because it is not in their capacity to

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Speaker 3: do so. Sometimes and sometimes they get really motivated and

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Speaker 3: do six million things all at one time. So one

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Speaker 3: really quick win can be to automate your banking structure

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Speaker 3: and set it up so that it works for you,

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Speaker 3: and then setting aside a certain amount of money that

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Speaker 3: you are allowed to spend, which is where my idea

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Speaker 3: of the food, fuel and fun budget comes from, so

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Speaker 3: that we don't end up sacrificing our longer term goals

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Speaker 3: like maybe saving for a house or a holiday or

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Speaker 3: a car. We don't sacrifice those because we are impulsive spenders.

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Speaker 3: So we need to put a structure in place that

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Speaker 3: works really well for us. Another thing that I would

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Speaker 3: say is really helpful when it comes to money management

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Speaker 3: is starting out with as many money apps as possible.

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Speaker 3: We talk about them in our community and they can

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Speaker 3: be really helpful. We've obviously spoken about Pocketbook and our

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Speaker 3: friends get reminded they would be so helpful in this situation. Also,

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Speaker 3: if you live in a sharehouse and struggle remembering what

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Speaker 3: you owe and who to set up the app split

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Speaker 3: wise with your housemates or even just your partner to

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Speaker 3: keep track of your budget and what people are spending

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Speaker 3: on what. And when it comes to budgeting, there are

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Speaker 3: a whole heap of apps out there that are really good. Obviously,

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Speaker 3: we have worked historically with Pocketbook and we really like

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Speaker 3: them as a budgeting app. We Money is also another

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Speaker 3: one that our community seems to get around and love

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Speaker 3: and then think about using round up apps. So we've

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Speaker 3: talked about upbank before. They actually are able to round

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Speaker 3: up your spending so that you can start investing without

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Speaker 3: having to actually commit to transferring it each and every sea.

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Speaker 3: I also know we're not just talking about bills when

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Speaker 3: we say automate your spending. It's about automating your savings

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Speaker 3: as well. And I think this is also Georgia a

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Speaker 3: really good time to talk about our friends at the

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Speaker 3: National Debt Helpline. So if you feel like you're in

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Speaker 3: a pickle and you don't want to pay for advice

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Speaker 3: and you just feel like you need a hand, reach

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Speaker 3: out to them and they will tear you up with

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Speaker 3: a financial counselor that I know will give you some

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Speaker 3: tips and tricks that will set you on the right path.

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Speaker 2: You mentioned impulse buying. There is a big problem for us.

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Speaker 2: Why is that such an issue for neurodivergent people and

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Speaker 2: how like what solutions are there to help bring that

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Speaker 2: under control?

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Speaker 3: Yeah, So impulsivity is actually one of the major symptoms

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Speaker 3: of ADHD. So it's not actually uncommon for people with

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Speaker 3: ADHD to buy first and think later. So things like

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Speaker 3: after pay us slippery slopes for these friends. So yes,

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Speaker 3: impulse spending is something that we need to get a

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Speaker 3: hold of. But it's actually not just the purchasing, it's

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Speaker 3: the impulsive behavior. They are far more likely than you know,

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Speaker 3: people who aren't near idovert to actually do first and

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Speaker 3: think later. So I think it's important to just understand

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Speaker 3: that that would then stretch into spending and they'll go, oh,

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Speaker 3: I really like that top, I'll have that top, and

433
00:22:09,880 --> 00:22:11,800
Speaker 3: then they just didn't think about the thing that they

434
00:22:11,800 --> 00:22:14,520
Speaker 3: were saving for down the track or the other goal

435
00:22:14,600 --> 00:22:16,880
Speaker 3: that they had. It can actually be a little bit

436
00:22:16,960 --> 00:22:20,240
Speaker 3: like having blinkers on and you're not able to consider

437
00:22:20,280 --> 00:22:22,320
Speaker 3: the bigger picture because you just didn't take the time

438
00:22:22,359 --> 00:22:24,200
Speaker 3: out to think about that at that point in time.

439
00:22:24,400 --> 00:22:26,960
Speaker 3: So it's something that if you're in that situation, it

440
00:22:27,040 --> 00:22:30,200
Speaker 3: makes sense as to why you are being impulsive, why

441
00:22:30,320 --> 00:22:32,840
Speaker 3: you're maybe not so good at money management. That's where

442
00:22:32,840 --> 00:22:35,040
Speaker 3: it's just important to have the right people on your team,

443
00:22:35,240 --> 00:22:36,800
Speaker 3: the right podcast in your ears.

444
00:22:37,080 --> 00:22:41,760
Speaker 2: Absolutely, okay, very good, thanks for that. VD. Let's have

445
00:22:41,880 --> 00:22:44,920
Speaker 2: a little break here. But on the other side, guys,

446
00:22:44,960 --> 00:22:47,439
Speaker 2: we will be answering the rest of your incredible questions,

447
00:22:47,520 --> 00:22:48,840
Speaker 2: including wedding chats.

448
00:22:48,960 --> 00:22:51,640
Speaker 3: Very excited for that. Not my wedding, not George's wedding,

449
00:22:51,680 --> 00:22:53,119
Speaker 3: so not as exciting to be clear.

450
00:22:54,240 --> 00:23:01,440
Speaker 2: So we'll see you on the other side, guys, VICKI

451
00:23:01,520 --> 00:23:05,120
Speaker 2: D we are back. Hope you had a wonderful break there,

452
00:23:05,160 --> 00:23:05,919
Speaker 2: so excited.

453
00:23:06,080 --> 00:23:08,760
Speaker 3: Do you are sure about atfs and managed funds?

454
00:23:08,880 --> 00:23:11,120
Speaker 2: Is that question funny you ask?

455
00:23:11,240 --> 00:23:11,480
Speaker 3: Mate?

456
00:23:11,960 --> 00:23:15,840
Speaker 2: Our next question here is from Susan. She has asked

457
00:23:15,920 --> 00:23:19,040
Speaker 2: what is the difference between managed funds and ETFs?

458
00:23:20,000 --> 00:23:22,919
Speaker 3: Are you ready for this later? According to the AX

459
00:23:23,160 --> 00:23:28,639
Speaker 3: and your friendly neighborhood financial advisor Victory Devine, ETFs are

460
00:23:28,720 --> 00:23:32,520
Speaker 3: managed funds. That's what I thought I got on. But

461
00:23:33,640 --> 00:23:38,720
Speaker 3: traditional managed funds are sometimes less transparent and potentially are

462
00:23:38,760 --> 00:23:42,520
Speaker 3: a lot more of an expensive approach to investing. So both, however,

463
00:23:42,680 --> 00:23:46,159
Speaker 3: are open ended funds that have co mingling assets and

464
00:23:46,240 --> 00:23:51,080
Speaker 3: seek to achieve a stated investment objective to be more specific,

465
00:23:51,160 --> 00:23:52,760
Speaker 3: So at the end of the day, an ETF is

466
00:23:52,800 --> 00:23:57,840
Speaker 3: a managed fund, but a managed fund, not an ETF. Okay, yeah,

467
00:23:59,080 --> 00:24:03,080
Speaker 3: very similar. So when we look at ETFs, both ETFs

468
00:24:03,160 --> 00:24:05,600
Speaker 3: and managed funds can track an index or they can

469
00:24:05,640 --> 00:24:08,680
Speaker 3: be managed by a professional investor. Look, there are a

470
00:24:08,800 --> 00:24:11,640
Speaker 3: number of similarities, so let's run through the top two,

471
00:24:12,040 --> 00:24:15,479
Speaker 3: because everybody loves an educated queen. So sit down, JOHNS King,

472
00:24:15,520 --> 00:24:18,920
Speaker 3: are you ready? So legal ownership is number one. Legally,

473
00:24:18,960 --> 00:24:23,320
Speaker 3: both ETFs and managed funds are trust structures. The units

474
00:24:23,320 --> 00:24:26,560
Speaker 3: of these funds they're combined and owned by unit holders.

475
00:24:26,760 --> 00:24:28,359
Speaker 3: So what that means is it's kind of like a

476
00:24:28,400 --> 00:24:31,960
Speaker 3: giant bucket and all of the assets that that trust

477
00:24:32,119 --> 00:24:35,320
Speaker 3: owns sit in the bucket, and as an investor, you

478
00:24:35,440 --> 00:24:40,040
Speaker 3: purchase units in that bucket, not necessarily units in those

479
00:24:40,119 --> 00:24:43,919
Speaker 3: individual shares. So if you are buying an ETF and

480
00:24:43,960 --> 00:24:47,959
Speaker 3: that ETF holds Facebook, you are not buying Facebook, but

481
00:24:48,240 --> 00:24:51,359
Speaker 3: that Facebook share that you have a share in is

482
00:24:51,440 --> 00:24:54,720
Speaker 3: owned by that ETF, and you've just purchased into that ETF,

483
00:24:54,840 --> 00:24:58,119
Speaker 3: if that makes sense. Whereas if you were a direct owner,

484
00:24:58,359 --> 00:25:00,760
Speaker 3: you would have a little certificate that says G. King

485
00:25:00,840 --> 00:25:04,560
Speaker 3: on tour is the owner of this Facebook share, whereas

486
00:25:04,640 --> 00:25:09,199
Speaker 3: that certificate actually says ETF XYZ is the owner of

487
00:25:09,320 --> 00:25:12,600
Speaker 3: that share, So you're just purchasing into what I like

488
00:25:12,680 --> 00:25:15,600
Speaker 3: to call a bucket, because from my perspective, that's the

489
00:25:15,640 --> 00:25:18,919
Speaker 3: easiest way to think about these things. Okay, the second

490
00:25:19,200 --> 00:25:22,800
Speaker 3: is diversification, So they're very similar. Both funds can be

491
00:25:22,840 --> 00:25:26,000
Speaker 3: a blend of underlying shares or other assets like bonds

492
00:25:26,080 --> 00:25:29,880
Speaker 3: or cash, and a pool that defines the fundamental premise

493
00:25:29,960 --> 00:25:33,080
Speaker 3: of the fund. So when we're talking about an investment pool,

494
00:25:33,119 --> 00:25:35,640
Speaker 3: it's essentially an investment bucket. I like to think about

495
00:25:35,720 --> 00:25:39,200
Speaker 3: ETF's as buckets, and those buckets are full of different

496
00:25:39,240 --> 00:25:43,119
Speaker 3: shares and assets like cash or bonds or stocks, and

497
00:25:43,200 --> 00:25:45,040
Speaker 3: it doesn't matter. It's all put into the bucket, and

498
00:25:45,080 --> 00:25:47,840
Speaker 3: you go, Okay, nice bucket. Can I buy some of

499
00:25:47,880 --> 00:25:50,439
Speaker 3: that bucket? And then you buy shares in that bucket,

500
00:25:50,440 --> 00:25:53,520
Speaker 3: And that's essentially an ETF in a really really simplified way,

501
00:25:53,560 --> 00:25:58,280
Speaker 3: which obviously gives you more exposure to diversification because instead

502
00:25:58,280 --> 00:26:00,760
Speaker 3: of going and purchasing one into the due share in

503
00:26:00,840 --> 00:26:05,920
Speaker 3: one individual company, you're purchasing into a pulled investment, which

504
00:26:05,960 --> 00:26:07,960
Speaker 3: is essentially a bucket full of a whole heap of

505
00:26:07,960 --> 00:26:10,399
Speaker 3: shares that then put you in a position where you

506
00:26:10,480 --> 00:26:14,280
Speaker 3: automatically have exposure to all of those assets or all

507
00:26:14,359 --> 00:26:17,000
Speaker 3: of those shares, which is to me a very sexy

508
00:26:17,040 --> 00:26:20,679
Speaker 3: outcome Georgia. And then when it comes to the differences

509
00:26:20,760 --> 00:26:24,760
Speaker 3: between ETFs and managed funds, when it comes to adding

510
00:26:24,800 --> 00:26:29,440
Speaker 3: new funds, managed funds actually allow investors to cost effectively

511
00:26:29,560 --> 00:26:33,720
Speaker 3: add or remove money through regular contributions or deductions, making

512
00:26:33,760 --> 00:26:36,680
Speaker 3: them really suitable for dollar cost averaging. So dollar cost

513
00:26:36,760 --> 00:26:40,320
Speaker 3: averaging is where you consistently invest into the market to

514
00:26:40,400 --> 00:26:42,879
Speaker 3: make use of the highs and the lows of the market,

515
00:26:43,000 --> 00:26:46,520
Speaker 3: so on average you have an average purchase price instead

516
00:26:46,520 --> 00:26:48,680
Speaker 3: of trying to time the market, because no one can

517
00:26:48,720 --> 00:26:50,920
Speaker 3: do that. And I've said before if I could time

518
00:26:50,960 --> 00:26:54,639
Speaker 3: the market, I would be an incredibly wealthy human being.

519
00:26:55,320 --> 00:26:58,920
Speaker 3: But in comparison with ETFs, investors are free to buy

520
00:26:58,960 --> 00:27:02,679
Speaker 3: additional units at any time during the trading day, but

521
00:27:03,200 --> 00:27:06,520
Speaker 3: usually when you're purchasing an ETF, brokerage is payable on

522
00:27:06,640 --> 00:27:11,560
Speaker 3: every single transaction, and brokerage is typically a fixed dollar amount,

523
00:27:11,600 --> 00:27:13,959
Speaker 3: So you might go to your trading platform and they

524
00:27:14,040 --> 00:27:17,399
Speaker 3: might say, okay, each trade is fifteen dollars or forty dollars,

525
00:27:17,440 --> 00:27:22,080
Speaker 3: depending on where you're investing, so ETFs might suit investors

526
00:27:22,080 --> 00:27:26,160
Speaker 3: who are either making large or irregular investment. So for example,

527
00:27:26,200 --> 00:27:28,639
Speaker 3: you might go, oh, I'm only going to invest every

528
00:27:28,680 --> 00:27:30,880
Speaker 3: time I get to one thousand dollars to make sure

529
00:27:30,880 --> 00:27:34,280
Speaker 3: that I'm not paying ridiculous brokerage, Whereas if you were

530
00:27:34,320 --> 00:27:37,320
Speaker 3: investing pretty consistently, you might go, I don't really want

531
00:27:37,320 --> 00:27:39,960
Speaker 3: to put money into an ETF every month because I

532
00:27:40,000 --> 00:27:43,120
Speaker 3: only have fifty dollars to put in and brokerage is fifteen,

533
00:27:43,200 --> 00:27:45,880
Speaker 3: and that's a really large percentage that I don't really

534
00:27:45,960 --> 00:27:48,480
Speaker 3: want to lose just to brokerage, because that's a fee

535
00:27:48,520 --> 00:27:51,560
Speaker 3: to get into the fund. So it's important to consider that.

536
00:27:52,119 --> 00:27:55,040
Speaker 3: So I mentioned it before Georgia, they do differ when

537
00:27:55,080 --> 00:27:57,760
Speaker 3: it comes to transparency, and this might not be true

538
00:27:57,880 --> 00:28:00,560
Speaker 3: across the board. There might be some manager funds that

539
00:28:00,600 --> 00:28:05,320
Speaker 3: are super transparent, but compared to many active managed funds,

540
00:28:05,359 --> 00:28:11,160
Speaker 3: they are less transparent than ETFs because ETFs are extremely transparent,

541
00:28:11,240 --> 00:28:14,240
Speaker 3: and it is very easy to find information about an

542
00:28:14,240 --> 00:28:18,640
Speaker 3: ETF's underlying holdings because they're usually just available on that website,

543
00:28:18,720 --> 00:28:21,120
Speaker 3: on the ETFs website. So you might go to Vanguard

544
00:28:21,200 --> 00:28:23,879
Speaker 3: and it will tell you exactly what that ETF holds,

545
00:28:23,920 --> 00:28:27,800
Speaker 3: whereas in comparison, managed funds are actually not required to

546
00:28:27,840 --> 00:28:31,240
Speaker 3: disclose their portfolio holdings, and more often than not they

547
00:28:31,359 --> 00:28:36,120
Speaker 3: only list their top ten investments, which, as somebody who

548
00:28:36,320 --> 00:28:38,440
Speaker 3: likes to be in control, I don't.

549
00:28:38,280 --> 00:28:42,440
Speaker 2: Really like that interesting, Okay.

550
00:28:42,000 --> 00:28:43,920
Speaker 3: I mean that's not true. Across the board, there are

551
00:28:43,920 --> 00:28:46,520
Speaker 3: a lot of managed funds that work really well and

552
00:28:46,640 --> 00:28:49,320
Speaker 3: for full transparency. As you guys know, I am a

553
00:28:49,400 --> 00:28:53,600
Speaker 3: legit financial advisor. I use managed funds a lot in

554
00:28:53,680 --> 00:28:56,520
Speaker 3: my business, Zella, and I talk to clients about them

555
00:28:56,520 --> 00:28:59,920
Speaker 3: because they can be really powerful. But you have to

556
00:29:00,040 --> 00:29:01,560
Speaker 3: make sure that you're picking the right one and you

557
00:29:01,600 --> 00:29:04,479
Speaker 3: fully understand the company and their ethics and what they

558
00:29:04,520 --> 00:29:06,920
Speaker 3: are actually holding. This is just general.

559
00:29:07,560 --> 00:29:11,320
Speaker 2: Yeah, when it comes to ethical investing, VEE, is it

560
00:29:11,600 --> 00:29:15,959
Speaker 2: better to go with an ethical managed fund or like

561
00:29:16,000 --> 00:29:18,080
Speaker 2: ats Like, what's the best way of doing that?

562
00:29:18,280 --> 00:29:21,600
Speaker 3: Look, we've covered that in our ethical Investing podcast, But

563
00:29:21,680 --> 00:29:24,720
Speaker 3: when it comes to investing ethically, we just need to

564
00:29:24,800 --> 00:29:28,720
Speaker 3: understand exactly what that means. So unlike going to the

565
00:29:28,720 --> 00:29:31,960
Speaker 3: supermarket Georgia and heading on over to the organic section,

566
00:29:32,280 --> 00:29:34,920
Speaker 3: where you know all of that food sitting in the

567
00:29:35,000 --> 00:29:39,720
Speaker 3: organic section has passed Australian standards to get their organic sticker.

568
00:29:40,040 --> 00:29:44,320
Speaker 3: There's no such thing in the investment world for ethical investing.

569
00:29:44,720 --> 00:29:47,520
Speaker 3: In fact, I could start an investment fund tomorrow and

570
00:29:47,560 --> 00:29:50,920
Speaker 3: call it green, and you might automatically assume because it's

571
00:29:51,000 --> 00:29:54,280
Speaker 3: called green, it is actually ethical. So we need to

572
00:29:54,360 --> 00:29:57,040
Speaker 3: understand first what our own values are and what we

573
00:29:57,080 --> 00:29:59,960
Speaker 3: would like to see reflected in the share market, because

574
00:30:00,200 --> 00:30:04,040
Speaker 3: from my perspective, ethical means something different to everybody. Like

575
00:30:04,080 --> 00:30:06,600
Speaker 3: you might go, oh, Victoria, ethical just means that they're

576
00:30:06,640 --> 00:30:09,640
Speaker 3: good company, is treating their staff well, I go oh, great,

577
00:30:10,200 --> 00:30:12,840
Speaker 3: And that's actually what a lot of companies do. They'll

578
00:30:12,880 --> 00:30:15,520
Speaker 3: be like, oh, this is the sustainable portfolio and go oh,

579
00:30:15,520 --> 00:30:18,000
Speaker 3: that means ethical. That is not the case by any

580
00:30:18,040 --> 00:30:20,800
Speaker 3: stretch of the imagination, Whereas on the flip side, you

581
00:30:20,880 --> 00:30:24,280
Speaker 3: might go, oh, actually, Victoria, I'm a vegan, I'm really

582
00:30:24,320 --> 00:30:27,800
Speaker 3: into animal rights, I'm really into the environment, And for me,

583
00:30:27,880 --> 00:30:31,960
Speaker 3: an ethical portfolio wouldn't have anything that impacts avcd FG

584
00:30:32,120 --> 00:30:35,600
Speaker 3: and also doesn't invest in gambling, it doesn't invest in alcohol,

585
00:30:35,600 --> 00:30:38,200
Speaker 3: and it doesn't invest in anything that would you know,

586
00:30:38,480 --> 00:30:41,200
Speaker 3: impact this thing that I love. So that's why it's

587
00:30:41,200 --> 00:30:43,840
Speaker 3: so important to understand your own values and then be

588
00:30:44,000 --> 00:30:47,320
Speaker 3: able to see those values reflected in the asset that

589
00:30:47,360 --> 00:30:49,640
Speaker 3: you are going to pick or you are going to purchase.

590
00:30:50,000 --> 00:30:54,120
Speaker 3: So from my perspective, ethical investing is great. There are

591
00:30:54,440 --> 00:30:58,080
Speaker 3: so many options. I only invest one hundred percent ethically

592
00:30:58,120 --> 00:31:01,360
Speaker 3: in my business as Zella because that is really important

593
00:31:01,400 --> 00:31:04,200
Speaker 3: to me and the values that my company holds. So

594
00:31:04,280 --> 00:31:06,160
Speaker 3: I'm really lucky that I work in a business where

595
00:31:06,200 --> 00:31:08,560
Speaker 3: I just get to call shots and I've made that decision.

596
00:31:08,760 --> 00:31:11,640
Speaker 3: But not many advisors are in that position where they

597
00:31:11,680 --> 00:31:14,400
Speaker 3: get to make that decision because they're usually adhering to

598
00:31:14,480 --> 00:31:18,080
Speaker 3: investment mandates of their companies that they work for. But

599
00:31:18,240 --> 00:31:20,720
Speaker 3: when it comes to ethical investing, yes, there are so

600
00:31:20,840 --> 00:31:24,120
Speaker 3: many great options. There are ethical ETFs. In fact, there

601
00:31:24,200 --> 00:31:27,600
Speaker 3: are so many ETFs out there you could literally go,

602
00:31:27,960 --> 00:31:31,920
Speaker 3: I want to only invest in businesses that have women

603
00:31:32,040 --> 00:31:35,520
Speaker 3: on their boards. There's an ETF for that. So I

604
00:31:35,680 --> 00:31:38,640
Speaker 3: just think it is very cool and ETFs are limitless

605
00:31:38,640 --> 00:31:41,720
Speaker 3: when it comes to what their values are and what

606
00:31:41,760 --> 00:31:44,000
Speaker 3: they hold fabulous.

607
00:31:44,120 --> 00:31:47,760
Speaker 2: Okay, let's move on now. V I am very excited

608
00:31:47,760 --> 00:31:50,560
Speaker 2: for the next question. Oh, it has come from the

609
00:31:50,680 --> 00:31:53,520
Speaker 2: new SHEI, and she wants to know how much you

610
00:31:53,560 --> 00:31:58,120
Speaker 2: should responsibly spend on a wedding of a newshi. We

611
00:31:58,120 --> 00:31:59,120
Speaker 2: wouldn't know, would we be?

612
00:31:59,520 --> 00:32:02,480
Speaker 3: No, we're not married, can't help.

613
00:32:03,280 --> 00:32:05,560
Speaker 2: Sorry, I'm saying that, like I'm sad. I'm not actually sad,

614
00:32:05,640 --> 00:32:06,560
Speaker 2: visa a little bit sad.

615
00:32:07,080 --> 00:32:09,800
Speaker 3: I'm not sad. I'm not. Oh my gosh, I would

616
00:32:09,920 --> 00:32:12,160
Speaker 3: never want my partner to feel pressured to marry me.

617
00:32:12,240 --> 00:32:14,800
Speaker 3: But also, where the hell is my ring? No kid,

618
00:32:14,840 --> 00:32:16,360
Speaker 3: I kid, But at the end of the day, like,

619
00:32:16,440 --> 00:32:19,200
Speaker 3: my friend, that's a question for your own values and

620
00:32:19,240 --> 00:32:21,720
Speaker 3: your own ethics, Like, it's not a question that I

621
00:32:21,720 --> 00:32:24,440
Speaker 3: could be like, the answer is twelve thousand dollars, Like,

622
00:32:24,600 --> 00:32:28,400
Speaker 3: obviously that is responsible, because if I said, g twelve

623
00:32:28,400 --> 00:32:30,440
Speaker 3: grand on a wedding, you might go Victoria. That's so

624
00:32:30,520 --> 00:32:32,840
Speaker 3: much money. I can't afford that. That is absolutely not

625
00:32:32,960 --> 00:32:37,280
Speaker 3: something that I could reasonably and responsibly spend. I've got,

626
00:32:37,480 --> 00:32:39,600
Speaker 3: you know, true kids that I need to send to school,

627
00:32:39,680 --> 00:32:42,840
Speaker 3: or my car needs fixing, or I don't even value weddings.

628
00:32:42,840 --> 00:32:45,120
Speaker 3: I don't want to get married. And then on the

629
00:32:45,120 --> 00:32:47,360
Speaker 3: flip side, someone could turn around and say twelve grand

630
00:32:48,080 --> 00:32:51,800
Speaker 3: the average Australian wedding costs thirty six thousand dollars. That's nothing,

631
00:32:52,080 --> 00:32:54,840
Speaker 3: So I think it's really important to remember our own

632
00:32:54,960 --> 00:32:58,600
Speaker 3: values and put a number on that ourselves. Again, what

633
00:32:58,640 --> 00:33:00,680
Speaker 3: your friends did is not a roughly of what you

634
00:33:00,720 --> 00:33:02,520
Speaker 3: should do. And if your friends have gone and spent

635
00:33:02,680 --> 00:33:05,320
Speaker 3: one hundred thousand dollars on their weddings, that does not

636
00:33:05,880 --> 00:33:08,680
Speaker 3: mean that you need to do that. And to be honest,

637
00:33:08,720 --> 00:33:11,120
Speaker 3: from my perspective, there's no such thing as how much

638
00:33:11,160 --> 00:33:14,920
Speaker 3: should you responsibly spend on a wedding because furthering that,

639
00:33:15,160 --> 00:33:18,120
Speaker 3: according to a survey they did, eighty two percent of

640
00:33:18,160 --> 00:33:20,880
Speaker 3: couples dipped into their savings to pay for their wedding.

641
00:33:21,400 --> 00:33:26,120
Speaker 3: Another sixty percent of couples god alone, and eighteen percent

642
00:33:26,200 --> 00:33:29,880
Speaker 3: of couples use their credit card to pay for their wedding, which,

643
00:33:30,240 --> 00:33:33,040
Speaker 3: when we're talking about responsibility, I don't know. I don't

644
00:33:33,080 --> 00:33:35,000
Speaker 3: want to tut them, but at the end of the day,

645
00:33:35,040 --> 00:33:37,560
Speaker 3: I would hate to think that you are starting your

646
00:33:37,560 --> 00:33:40,160
Speaker 3: married life in debt. We want to start on the

647
00:33:40,160 --> 00:33:43,480
Speaker 3: best possible footing and put ourselves in the best possible position.

648
00:33:43,600 --> 00:33:45,400
Speaker 3: So if that was putting you in the best possible

649
00:33:45,440 --> 00:33:48,120
Speaker 3: position from your perspective, then I'm all for it. But

650
00:33:48,200 --> 00:33:51,480
Speaker 3: we need to consider this as not just a financial decision,

651
00:33:51,760 --> 00:33:55,280
Speaker 3: but like a setting ourselves up for a good future decision.

652
00:33:55,520 --> 00:33:58,240
Speaker 3: And yeah, I live in a world where I have

653
00:33:58,680 --> 00:34:01,360
Speaker 3: a very diverse range of claes clients Georgia. I have

654
00:34:01,480 --> 00:34:04,560
Speaker 3: had clients spend half a million dollars on weddings. I

655
00:34:04,640 --> 00:34:07,080
Speaker 3: have had clients in lope and spend two grand on

656
00:34:07,120 --> 00:34:09,080
Speaker 3: a wedding. I think I have a client actually who

657
00:34:09,080 --> 00:34:11,200
Speaker 3: eloped and spent just like one hundred bucks on the

658
00:34:11,239 --> 00:34:14,120
Speaker 3: certificate and then at the wedding registry. So that's the

659
00:34:14,200 --> 00:34:17,200
Speaker 3: money win. Yeah, massive money win. But is it my

660
00:34:17,280 --> 00:34:19,919
Speaker 3: place to judge them for how much they're spending? No?

661
00:34:20,320 --> 00:34:22,640
Speaker 3: Is it my place to make sure that that amount

662
00:34:22,680 --> 00:34:25,480
Speaker 3: is in line with their goals and values? Absolutely, and

663
00:34:25,480 --> 00:34:28,320
Speaker 3: that half a million dollar wedding great, I'm so happy

664
00:34:28,320 --> 00:34:31,000
Speaker 3: for them. It was absolutely in line with their budget

665
00:34:31,040 --> 00:34:35,160
Speaker 3: and what they could afford. From my perspective, though, like, personally,

666
00:34:35,200 --> 00:34:37,320
Speaker 3: would I ever spend that much morning? Oh god, I

667
00:34:37,360 --> 00:34:38,600
Speaker 3: would simply pass away.

668
00:34:40,360 --> 00:34:43,640
Speaker 2: Is it right that the average amount of is spend though,

669
00:34:43,760 --> 00:34:45,400
Speaker 2: is about thirty six thousand dollars.

670
00:34:45,480 --> 00:34:48,640
Speaker 3: It is thirty six grand is apparently what the average

671
00:34:48,640 --> 00:34:50,960
Speaker 3: Australian is spending on a wedding.

672
00:34:51,080 --> 00:34:54,960
Speaker 2: That's so much like half of your average earner's income.

673
00:34:55,360 --> 00:34:58,480
Speaker 3: Really is insane to think that that's it, because also

674
00:34:58,560 --> 00:35:01,360
Speaker 3: that's after tax money, and what you're talking about is

675
00:35:01,400 --> 00:35:05,080
Speaker 3: the free tax income. Like, oh, that makes me feel

676
00:35:05,120 --> 00:35:08,600
Speaker 3: kind of sick, but only because that average means that

677
00:35:08,719 --> 00:35:10,800
Speaker 3: a lot of people are spending a lot of money

678
00:35:10,800 --> 00:35:13,960
Speaker 3: on weddings. But furthering that, a lot of people we

679
00:35:14,040 --> 00:35:16,120
Speaker 3: know are going into debt for weddings, and a lot

680
00:35:16,120 --> 00:35:18,640
Speaker 3: of people are putting themselves in positions where they're not

681
00:35:18,719 --> 00:35:20,959
Speaker 3: coming out of the other side of their wedding in

682
00:35:21,040 --> 00:35:25,520
Speaker 3: the most financially successful position, and they might not know

683
00:35:25,640 --> 00:35:28,520
Speaker 3: that they can actually completely control that decision. There's no

684
00:35:28,760 --> 00:35:30,640
Speaker 3: have to when it comes to getting married.

685
00:35:31,120 --> 00:35:34,640
Speaker 2: And remember that one in two marriages end in divorce anyway, So.

686
00:35:36,320 --> 00:35:38,520
Speaker 3: I'm key way to bring the conversation.

687
00:35:38,960 --> 00:35:42,040
Speaker 2: I'm like, pretty sure that's the stat but it is.

688
00:35:42,160 --> 00:35:42,879
Speaker 3: Let's move on.

689
00:35:43,000 --> 00:35:46,240
Speaker 2: We've got to be really stick in terms of keeping

690
00:35:46,280 --> 00:35:49,399
Speaker 2: the costs down. If you are into a big wedding, Yes,

691
00:35:49,920 --> 00:35:51,120
Speaker 2: do you have any tips there?

692
00:35:51,680 --> 00:35:54,920
Speaker 3: Yes, budget, budget, budget, my friends. So you need to

693
00:35:54,960 --> 00:35:57,640
Speaker 3: decide what you can comfortably afford to spend, and then

694
00:35:57,680 --> 00:35:59,360
Speaker 3: you need to stick to it. We need to create

695
00:35:59,360 --> 00:36:03,520
Speaker 3: a proper budy that includes everything. I think most people

696
00:36:03,640 --> 00:36:06,239
Speaker 3: end up going over budget because they forget all the

697
00:36:06,320 --> 00:36:09,280
Speaker 3: little things and how much they are going to add up.

698
00:36:09,600 --> 00:36:12,480
Speaker 3: So potentially talking to friends or family who have gotten

699
00:36:12,480 --> 00:36:15,880
Speaker 3: married before and ask them what did you pay for

700
00:36:15,960 --> 00:36:18,680
Speaker 3: in your wedding that you forgot to budget for? Maybe

701
00:36:18,719 --> 00:36:20,800
Speaker 3: Georgia this week, we can put a thread in the

702
00:36:20,880 --> 00:36:24,239
Speaker 3: Facebook group and ask what money did you spend on

703
00:36:24,320 --> 00:36:28,440
Speaker 3: your wedding that you didn't budget for or completely forgot about.

704
00:36:28,680 --> 00:36:31,680
Speaker 3: Because this could be anything from oh, my gosh, Victoria,

705
00:36:31,760 --> 00:36:33,480
Speaker 3: we forgot to book a car and we had to

706
00:36:33,520 --> 00:36:36,040
Speaker 3: spend money on an Uber getting to our own wedding,

707
00:36:36,360 --> 00:36:39,000
Speaker 3: all the way through to oh actually, when we did

708
00:36:39,000 --> 00:36:41,279
Speaker 3: our spreadsheet, we thought we were real smart, but we

709
00:36:41,400 --> 00:36:43,600
Speaker 3: forgot to put in a videographer and that was one

710
00:36:43,600 --> 00:36:45,920
Speaker 3: of the things that my partner really wanted. So it

711
00:36:45,920 --> 00:36:48,759
Speaker 3: could be like a sixty dollars Uber ride, or it

712
00:36:48,800 --> 00:36:52,239
Speaker 3: could be a six thousand dollar videographer. It could be

713
00:36:52,520 --> 00:36:55,400
Speaker 3: so many different things, but add up all the little

714
00:36:55,400 --> 00:36:58,080
Speaker 3: things and break down the costs and work out what

715
00:36:58,120 --> 00:37:00,400
Speaker 3: you are potentially going to need to, say, spend on

716
00:37:00,480 --> 00:37:04,640
Speaker 3: each item, and be realistic, not what you would like

717
00:37:04,800 --> 00:37:08,439
Speaker 3: to spend on each item, what you actually genuinely think

718
00:37:08,480 --> 00:37:11,440
Speaker 3: you will spend. Because it's very nice to say I

719
00:37:11,440 --> 00:37:14,040
Speaker 3: would love to think that I would only spend two

720
00:37:14,080 --> 00:37:17,200
Speaker 3: hundred dollars in my wedding dress, but then deep down

721
00:37:17,320 --> 00:37:20,719
Speaker 3: know that even the shops you're looking at dresses start

722
00:37:20,719 --> 00:37:23,760
Speaker 3: at six hundred dollars. So it's just important to really

723
00:37:24,200 --> 00:37:27,560
Speaker 3: think about not what would I like to spend. I

724
00:37:27,600 --> 00:37:30,279
Speaker 3: know a lot of brides say that flowers were more

725
00:37:30,320 --> 00:37:33,319
Speaker 3: expensive than they had considered. So we're not talking what

726
00:37:33,400 --> 00:37:36,279
Speaker 3: you want to spend, but realistically what you are going

727
00:37:36,360 --> 00:37:38,600
Speaker 3: to need to spend to get the outcome that you

728
00:37:38,680 --> 00:37:42,640
Speaker 3: are looking for. So break down those costs, ask yourself

729
00:37:42,640 --> 00:37:45,600
Speaker 3: what you could do yourself, do research, shop around to

730
00:37:45,640 --> 00:37:49,040
Speaker 3: get a better deal, always always always negotiate, and then

731
00:37:49,080 --> 00:37:51,120
Speaker 3: also have a think about those things that you could

732
00:37:51,200 --> 00:37:53,960
Speaker 3: just chuck out, as in, things you don't need to

733
00:37:54,000 --> 00:37:56,480
Speaker 3: include in your budget at all, that you might not

734
00:37:56,560 --> 00:37:58,840
Speaker 3: want to do. It's funny I went to a wedding.

735
00:37:58,880 --> 00:38:02,520
Speaker 3: A couple of years ago, one of my best friends

736
00:38:02,640 --> 00:38:06,200
Speaker 3: got married and she made the conscious decision to not

737
00:38:06,239 --> 00:38:08,480
Speaker 3: have a wedding cake. She's like, I don't even like cake.

738
00:38:08,520 --> 00:38:11,200
Speaker 3: I don't want to have a cake, and nobody noticed

739
00:38:11,239 --> 00:38:14,480
Speaker 3: it was even missing because we were too much of

740
00:38:14,520 --> 00:38:17,000
Speaker 3: a good time. So I think it's really important to

741
00:38:17,000 --> 00:38:19,200
Speaker 3: remember that guests aren't going to remember all of the

742
00:38:19,280 --> 00:38:21,399
Speaker 3: nitty gritty and did they do this? And did they

743
00:38:21,400 --> 00:38:24,640
Speaker 3: do those fancy bonbanieris they don't care. They just care

744
00:38:24,680 --> 00:38:27,600
Speaker 3: how they felt on the day and usually if the

745
00:38:27,640 --> 00:38:31,120
Speaker 3: food was any good, But they just care about that

746
00:38:31,280 --> 00:38:33,800
Speaker 3: no one missed the wedding cake. And with wedding cakes

747
00:38:33,840 --> 00:38:36,040
Speaker 3: often being more than five hundred dollars, maybe that's an

748
00:38:36,040 --> 00:38:38,799
Speaker 3: easy way to save. But again, it's going to be

749
00:38:38,840 --> 00:38:41,279
Speaker 3: based on your values. So are there some things and

750
00:38:41,360 --> 00:38:44,719
Speaker 3: some traditions that you could easily skip without feeling like

751
00:38:44,760 --> 00:38:47,080
Speaker 3: you are missing out? And then the next one is

752
00:38:47,320 --> 00:38:50,719
Speaker 3: check online and compare prices to make sure you're getting

753
00:38:50,760 --> 00:38:51,600
Speaker 3: the best deal.

754
00:38:51,600 --> 00:38:55,320
Speaker 2: And probably like, don't tell anyone that you're getting married,

755
00:38:55,560 --> 00:38:57,080
Speaker 2: Like I think.

756
00:38:57,120 --> 00:38:59,680
Speaker 3: Five who cares on Saturday?

757
00:39:00,000 --> 00:39:03,600
Speaker 2: It's just for lunch? And haven't you know, because there

758
00:39:03,640 --> 00:39:06,000
Speaker 2: is there's like that wedding tax wedding to speak about it.

759
00:39:06,080 --> 00:39:08,000
Speaker 2: It's like you can't if you it's it's just a

760
00:39:08,040 --> 00:39:10,760
Speaker 2: cake from the cheesecake shop that'll cost you forty bucks.

761
00:39:10,800 --> 00:39:14,200
Speaker 2: Still overpriced, I would say, but say it's for your wedding,

762
00:39:14,239 --> 00:39:18,120
Speaker 2: and yeah, as you said, five hundred dollars, no thanks, Yeah, And.

763
00:39:18,040 --> 00:39:20,600
Speaker 3: That's where we potentially want to look at maybe non

764
00:39:20,719 --> 00:39:24,319
Speaker 3: wedding things to purchase for our wedding. So do you

765
00:39:24,480 --> 00:39:27,799
Speaker 3: need to google bridesmaid's dresses or could you go to

766
00:39:27,840 --> 00:39:30,040
Speaker 3: one of your favorite stores and look for some beautiful

767
00:39:30,120 --> 00:39:33,120
Speaker 3: dresses that might not be called bride'smaid's dresses that would

768
00:39:33,160 --> 00:39:36,320
Speaker 3: actually look the same. So I think it's all about

769
00:39:36,719 --> 00:39:40,160
Speaker 3: being a little bit savvy and maybe one day, Georgia,

770
00:39:40,360 --> 00:39:43,319
Speaker 3: one day, if if I am lucky enough to ever

771
00:39:43,400 --> 00:39:45,640
Speaker 3: be planning a wedding, I could share that budget with

772
00:39:45,680 --> 00:39:48,000
Speaker 3: you guys, in the same way I'm sharing my house

773
00:39:48,000 --> 00:39:48,880
Speaker 3: for ren No budgets.

774
00:39:49,320 --> 00:39:52,600
Speaker 2: Love All right, it is time for our final question

775
00:39:52,880 --> 00:39:56,160
Speaker 2: of the day, and it comes from the lovely Shelley.

776
00:39:56,680 --> 00:39:59,160
Speaker 2: So she has asked, what kinds of assets do you

777
00:39:59,239 --> 00:40:01,680
Speaker 2: need to be a prove for a loan, there are

778
00:40:01,680 --> 00:40:04,640
Speaker 2: a general amount of savings that increases your chances of

779
00:40:04,680 --> 00:40:07,239
Speaker 2: being approved. I assume she's speaking about a home loan.

780
00:40:07,680 --> 00:40:10,000
Speaker 3: I would assume she's speaking about a home loan as well.

781
00:40:10,040 --> 00:40:12,640
Speaker 3: But my friend, Shelley, you don't need to have assets

782
00:40:12,680 --> 00:40:15,080
Speaker 3: to be approved for a loan. You will need to

783
00:40:15,120 --> 00:40:17,560
Speaker 3: have some savings behind you. If you're going for a

784
00:40:17,600 --> 00:40:20,200
Speaker 3: home loan. For some lenders, that could be a full

785
00:40:20,320 --> 00:40:23,280
Speaker 3: twenty percent. For some other lenders you might get away

786
00:40:23,280 --> 00:40:26,080
Speaker 3: with five percent. It's going to really depend. If you've

787
00:40:26,080 --> 00:40:28,640
Speaker 3: been wondering what type of mortgage fits you, head on

788
00:40:28,800 --> 00:40:32,520
Speaker 3: over to our sister podcast, The Property Playbook to learn

789
00:40:32,560 --> 00:40:34,920
Speaker 3: more about that, which is where I break down literally

790
00:40:34,960 --> 00:40:39,240
Speaker 3: everything to do with property with my buyer's advocate best friend,

791
00:40:39,360 --> 00:40:42,480
Speaker 3: Amy Lenardi. But when it comes to having assets, you

792
00:40:42,520 --> 00:40:46,520
Speaker 3: don't necessarily need them, but you do usually need to

793
00:40:46,600 --> 00:40:51,120
Speaker 3: show good savings habits. So the bank is going to ask, hey,

794
00:40:51,160 --> 00:40:53,640
Speaker 3: g can I see your bank statements? How much money

795
00:40:53,680 --> 00:40:56,440
Speaker 3: are you actually saving? What are you spending your money on?

796
00:40:56,520 --> 00:40:59,800
Speaker 3: Can you actually afford this loan? So that's where budgeting

797
00:40:59,840 --> 00:41:02,719
Speaker 3: and hash flow is going to become really important. But no,

798
00:41:02,920 --> 00:41:05,719
Speaker 3: you don't need any specific assets to be approved for

799
00:41:05,800 --> 00:41:09,720
Speaker 3: a loan except for the deposit and usually said proof

800
00:41:09,760 --> 00:41:13,439
Speaker 3: that you are a financially savvy little human that they

801
00:41:13,680 --> 00:41:14,560
Speaker 3: want to lend to.

802
00:41:15,800 --> 00:41:19,640
Speaker 2: Would you say, v that your salary is more important

803
00:41:19,920 --> 00:41:21,800
Speaker 2: than your deposit?

804
00:41:22,440 --> 00:41:23,200
Speaker 3: No?

805
00:41:23,200 --> 00:41:27,359
Speaker 2: No, because I've been doing some little thingies online, well,

806
00:41:28,480 --> 00:41:30,960
Speaker 2: some little tests with NAB you know you can do

807
00:41:31,040 --> 00:41:34,160
Speaker 2: like a mortgage calculator. Oh yeah, and this scal I

808
00:41:34,160 --> 00:41:36,440
Speaker 2: thought I was killing it. I can only afford a tent.

809
00:41:36,920 --> 00:41:39,200
Speaker 3: So at the end of the day, it's not actually

810
00:41:39,200 --> 00:41:42,080
Speaker 3: what you earned, George King, it's what you can save.

811
00:41:42,640 --> 00:41:45,919
Speaker 3: It is the difference between the money coming into your

812
00:41:46,000 --> 00:41:49,880
Speaker 3: account and what is going out that is going to

813
00:41:49,960 --> 00:41:53,040
Speaker 3: have the most power. If you put in front of me,

814
00:41:53,160 --> 00:41:56,640
Speaker 3: somebody who earns sixty grand a year is so frugal

815
00:41:56,800 --> 00:42:00,319
Speaker 3: save so much money. Is a sassy little human who

816
00:42:00,360 --> 00:42:03,759
Speaker 3: does such a good job at saving. I know a

817
00:42:03,800 --> 00:42:07,120
Speaker 3: bank would look at them very favorably in comparison to

818
00:42:07,160 --> 00:42:09,960
Speaker 3: someone who had a half a million dollar income and

819
00:42:10,120 --> 00:42:13,520
Speaker 3: is spending every single cent of that half a million dollars.

820
00:42:13,840 --> 00:42:15,839
Speaker 3: They are going to look at that person and be like, no,

821
00:42:15,960 --> 00:42:18,399
Speaker 3: like they don't have the capacity to pay back a loan.

822
00:42:18,680 --> 00:42:21,000
Speaker 3: They don't have the ability to service that mortgage. They

823
00:42:21,040 --> 00:42:23,919
Speaker 3: don't even have any ability to service the loans they've

824
00:42:23,920 --> 00:42:27,480
Speaker 3: already got because they're not very financially savvy. It is

825
00:42:27,680 --> 00:42:31,160
Speaker 3: about the difference between what you are earning and what

826
00:42:31,200 --> 00:42:34,200
Speaker 3: you are spending that carries the most power.

827
00:42:34,719 --> 00:42:38,719
Speaker 2: There you go, I didn't know that. Go buy a

828
00:42:38,719 --> 00:42:40,439
Speaker 2: little housey house. Fun.

829
00:42:40,960 --> 00:42:41,040
Speaker 3: That.

830
00:42:43,400 --> 00:42:45,320
Speaker 2: That is all we have time for today, our second

831
00:42:45,400 --> 00:42:47,040
Speaker 2: Q and A episode US.

832
00:42:47,280 --> 00:42:50,000
Speaker 3: Oh my gosh, we have spoken for ages. I have

833
00:42:50,160 --> 00:42:52,879
Speaker 3: loved this chart, but as always we need to wrap

834
00:42:52,880 --> 00:42:55,520
Speaker 3: it up. So just before we head off, we'd like

835
00:42:55,560 --> 00:42:59,320
Speaker 3: to acknowledge and pay respect to Australia's aboriginal and tourist

836
00:42:59,440 --> 00:43:03,400
Speaker 3: right Island people's. They're the traditional custodians of the lands,

837
00:43:03,440 --> 00:43:07,400
Speaker 3: the waterways and disguise all across Australia. We thank you

838
00:43:07,440 --> 00:43:09,600
Speaker 3: for sharing and for caring for the land on which

839
00:43:09,640 --> 00:43:12,200
Speaker 3: we are able to learn. We pay our respects to

840
00:43:12,239 --> 00:43:15,359
Speaker 3: elder's past and present, and we share our friendship and

841
00:43:15,440 --> 00:43:16,319
Speaker 3: our kindness.

842
00:43:16,680 --> 00:43:19,200
Speaker 2: And remember, guys that the advice shared on She's on

843
00:43:19,239 --> 00:43:21,760
Speaker 2: the Money is general in nature and does not consider

844
00:43:21,880 --> 00:43:25,680
Speaker 2: your individual circumstances. She's on the money exists purely for

845
00:43:25,840 --> 00:43:28,839
Speaker 2: educational purposes and should not be relied upon to make

846
00:43:28,880 --> 00:43:33,200
Speaker 2: an investment or a financial decision, and we promise. Victoria

847
00:43:33,239 --> 00:43:37,240
Speaker 2: Divine is an authorized representative of Australia Pacific Funds Management

848
00:43:37,480 --> 00:43:41,319
Speaker 2: Proprietary Limited ABN three four one three two four six

849
00:43:41,360 --> 00:43:44,160
Speaker 2: three two five seven AFSL three three nine one five

850
00:43:44,280 --> 00:43:52,960
Speaker 2: one See you next week. Goes bye.