1 00:00:00,200 --> 00:00:01,960 Speaker 1: She's on the Money. 2 00:00:02,160 --> 00:00:15,640 Speaker 2: She's on the Money. 3 00:00:22,200 --> 00:00:24,880 Speaker 1: Hello, and welcome to She's on the Money, the podcast 4 00:00:24,880 --> 00:00:27,520 Speaker 1: for millennials who want to financial freedom. I'm one of 5 00:00:27,520 --> 00:00:29,720 Speaker 1: your co hosts, Anna Burley. I'm a law student and 6 00:00:29,800 --> 00:00:32,639 Speaker 1: a millennial on a desperate quest for better financial literacy. 7 00:00:33,040 --> 00:00:35,640 Speaker 1: So in order to get that tiny bit smarter with money, 8 00:00:35,840 --> 00:00:37,800 Speaker 1: each week, I enlist the help of my friend and 9 00:00:37,880 --> 00:00:41,640 Speaker 1: the very best money expert I know, Victoria Divine. Welcome Victoria, 10 00:00:41,800 --> 00:00:45,040 Speaker 1: Hi Yah, Victoria. Let's do our favorite new thing to do, 11 00:00:45,200 --> 00:00:48,560 Speaker 1: which is giving a few Facebook group members shout outs 12 00:00:48,600 --> 00:00:50,319 Speaker 1: because they've been sharing their money wins. Do you want 13 00:00:50,320 --> 00:00:51,200 Speaker 1: to share yours first? 14 00:00:51,600 --> 00:00:51,959 Speaker 3: I do? 15 00:00:52,080 --> 00:00:52,440 Speaker 2: All right? 16 00:00:52,479 --> 00:00:55,120 Speaker 4: So my first one is from Lizzie, and she said 17 00:00:55,160 --> 00:00:57,560 Speaker 4: in the Facebook group this week that she paid off 18 00:00:57,560 --> 00:00:59,320 Speaker 4: her credit card and put a plan in place to 19 00:00:59,360 --> 00:01:02,000 Speaker 4: develop her any day fun to two thousand dollars before 20 00:01:02,080 --> 00:01:04,959 Speaker 4: November and start saving for a trip that she wants 21 00:01:04,959 --> 00:01:07,440 Speaker 4: to go on next year. And she's feeling super empowered. 22 00:01:07,480 --> 00:01:09,560 Speaker 4: And that made me feel so good when I read it. 23 00:01:09,680 --> 00:01:13,360 Speaker 1: Yay, Lizzie. Mine is from Steph, who said this one's 24 00:01:13,480 --> 00:01:14,160 Speaker 1: very up my alley. 25 00:01:14,240 --> 00:01:14,880 Speaker 3: It definitely is. 26 00:01:14,959 --> 00:01:16,920 Speaker 1: She said, I usually fill up with petrol at the 27 00:01:16,920 --> 00:01:19,880 Speaker 1: server on my street because it's convenient check a fuel 28 00:01:19,880 --> 00:01:22,080 Speaker 1: price out for the first time today, drove ten minutes 29 00:01:22,080 --> 00:01:25,360 Speaker 1: away and filled up for ten cents A leader less. Yes, 30 00:01:26,440 --> 00:01:28,640 Speaker 1: dread to think how much I've wasted over the years, 31 00:01:28,680 --> 00:01:31,319 Speaker 1: but feeling encouraged to do the work to find ways 32 00:01:31,360 --> 00:01:33,880 Speaker 1: to save. I want to know what app she's using. 33 00:01:34,319 --> 00:01:36,040 Speaker 3: I don't know what app it is, Steph. 34 00:01:36,080 --> 00:01:38,080 Speaker 4: If you could post in the Facebook group what app 35 00:01:38,120 --> 00:01:40,360 Speaker 4: you were using, that would I guess help everybody? 36 00:01:40,400 --> 00:01:44,200 Speaker 1: Thank you so much, step Now on the agenda today, yep, 37 00:01:44,319 --> 00:01:47,520 Speaker 1: we're talking investing finally. It seems to be the one 38 00:01:47,520 --> 00:01:49,440 Speaker 1: money topic so many of us don't know how to 39 00:01:49,440 --> 00:01:51,080 Speaker 1: get a handle on. We don't know where to start, 40 00:01:51,160 --> 00:01:53,040 Speaker 1: we don't know how it works, and we don't know 41 00:01:53,080 --> 00:01:56,360 Speaker 1: how to use it to our advantage. So welcome to 42 00:01:56,400 --> 00:02:00,400 Speaker 1: Investing one oh one Part one. Yes, ladies, this will 43 00:02:00,440 --> 00:02:03,200 Speaker 1: be a two part episode, so we all get smarter. 44 00:02:03,440 --> 00:02:05,720 Speaker 1: I need to get smarter. But before we do any 45 00:02:05,760 --> 00:02:08,000 Speaker 1: of that, Victoria, you know what we have to do. 46 00:02:08,200 --> 00:02:10,000 Speaker 1: Give me a money win or a money confession from 47 00:02:10,040 --> 00:02:10,280 Speaker 1: the week. 48 00:02:10,360 --> 00:02:13,120 Speaker 4: Please, all right, so I have another money win for 49 00:02:13,280 --> 00:02:16,520 Speaker 4: this week. And this week is something that I'm actually 50 00:02:16,560 --> 00:02:18,800 Speaker 4: a little bit proud of myself for because it's not 51 00:02:18,919 --> 00:02:21,640 Speaker 4: something I've done before. So this week I ordered a 52 00:02:21,720 --> 00:02:24,440 Speaker 4: dress on The Iconic, and when I got it home 53 00:02:24,720 --> 00:02:26,760 Speaker 4: and tried it on, I realized that I didn't love it. 54 00:02:27,080 --> 00:02:29,560 Speaker 4: And previously I probably would have just popped it in 55 00:02:29,600 --> 00:02:31,920 Speaker 4: my wardrobe for a rainy day and said I'll make 56 00:02:31,960 --> 00:02:34,919 Speaker 4: it work at some point and it no, it never works, 57 00:02:34,919 --> 00:02:36,640 Speaker 4: and you leave it there and then it's got tags 58 00:02:36,680 --> 00:02:38,480 Speaker 4: on it still, and then it gets twelve months down 59 00:02:38,520 --> 00:02:40,720 Speaker 4: the track and your friend's going through your wardrobe is like, oh, 60 00:02:40,800 --> 00:02:42,639 Speaker 4: look at this dress, and you're like, oh, that's awkward. 61 00:02:42,680 --> 00:02:45,880 Speaker 4: I completely forgot about that. But I actually packaged it 62 00:02:45,960 --> 00:02:46,840 Speaker 4: up and sent it back to The. 63 00:02:46,880 --> 00:02:48,320 Speaker 1: Iconic because on new I wouldn't wear it, and you 64 00:02:48,360 --> 00:02:49,040 Speaker 1: got a refund. 65 00:02:49,120 --> 00:02:49,520 Speaker 3: I did. 66 00:02:49,760 --> 00:02:52,320 Speaker 4: I did, And now I am one hundred dollars richer 67 00:02:52,800 --> 00:02:55,160 Speaker 4: and I don't have a dress that I'm not gonna wear. 68 00:02:55,200 --> 00:02:57,399 Speaker 1: That's what I love about The Iconic. Though it's free returns. 69 00:02:57,160 --> 00:02:58,320 Speaker 3: Right, Yes, it was amazing. 70 00:02:58,360 --> 00:03:00,240 Speaker 4: It was really easy, and it used the package that 71 00:03:00,240 --> 00:03:02,040 Speaker 4: the dress came in originally, so I feel like I 72 00:03:02,080 --> 00:03:04,280 Speaker 4: did good say environment, good for the environment, good for 73 00:03:04,280 --> 00:03:04,920 Speaker 4: my bank account. 74 00:03:04,960 --> 00:03:05,720 Speaker 3: Everybody wins. 75 00:03:06,000 --> 00:03:08,640 Speaker 1: I have had not a great week with money. 76 00:03:09,000 --> 00:03:10,040 Speaker 3: Is it related to fuel? 77 00:03:10,240 --> 00:03:12,280 Speaker 1: Probably? Like knowing me, I have a lot of fuel 78 00:03:12,280 --> 00:03:14,880 Speaker 1: issues of working on it. But I've been spending a 79 00:03:14,919 --> 00:03:17,400 Speaker 1: lot on food and like going out for drinks and whatever. 80 00:03:17,760 --> 00:03:20,560 Speaker 1: But I've actually, I'm actually gonna tell you a money win, 81 00:03:20,639 --> 00:03:22,920 Speaker 1: which you know about because you just gifted me a 82 00:03:22,960 --> 00:03:26,240 Speaker 1: shameless merch jumper. I did, and it came with a 83 00:03:26,280 --> 00:03:27,000 Speaker 1: free cookie. 84 00:03:27,120 --> 00:03:28,839 Speaker 3: Okay, the cookie is probably the best part. 85 00:03:29,000 --> 00:03:31,160 Speaker 1: I was gonna buy one for myself. Actually, I actually 86 00:03:31,240 --> 00:03:33,720 Speaker 1: already have a shameless T shirt, so you know that 87 00:03:33,760 --> 00:03:35,760 Speaker 1: I love shameless merch. I want to be part of 88 00:03:35,800 --> 00:03:38,680 Speaker 1: the gang. So I was gonna buy one. Victoria bought 89 00:03:38,680 --> 00:03:42,160 Speaker 1: one for me instead. Money win, Ultimate money win. Now 90 00:03:42,240 --> 00:03:45,520 Speaker 1: let's jump straight into investment talk. Six point four to 91 00:03:45,560 --> 00:03:48,880 Speaker 1: eight million Australians currently own investments listed on the share market. 92 00:03:49,200 --> 00:03:52,040 Speaker 1: Only thirty one percent of Australian women currently invest in shares, 93 00:03:52,320 --> 00:03:55,880 Speaker 1: compared to a sizeable forty four percent of Australian men. Victoria, 94 00:03:55,960 --> 00:03:57,800 Speaker 1: why is it that men are beating women in the 95 00:03:57,800 --> 00:03:58,600 Speaker 1: investing game? 96 00:03:59,000 --> 00:04:03,520 Speaker 4: So I don't love this conversation around women being beaten 97 00:04:03,560 --> 00:04:04,960 Speaker 4: by men in the investing game. 98 00:04:05,000 --> 00:04:06,200 Speaker 3: I think it is what it is. 99 00:04:06,320 --> 00:04:07,960 Speaker 4: I think one of the most important things I want 100 00:04:08,000 --> 00:04:10,400 Speaker 4: to draw your attention to here, though, is whilst more 101 00:04:10,480 --> 00:04:14,040 Speaker 4: men invest than women, women are actually outperforming men when 102 00:04:14,080 --> 00:04:17,000 Speaker 4: it comes to investment returns. So we are technically better 103 00:04:17,040 --> 00:04:20,120 Speaker 4: investors than now. Yeah, which means more of us should 104 00:04:20,120 --> 00:04:20,800 Speaker 4: get involved. 105 00:04:20,880 --> 00:04:23,520 Speaker 1: Exactly, that's true. But why do you think women aren't 106 00:04:23,560 --> 00:04:24,839 Speaker 1: investing in the first place? 107 00:04:25,120 --> 00:04:27,960 Speaker 4: For exactly the same reason they are getting better returns 108 00:04:27,960 --> 00:04:31,159 Speaker 4: than men, And that's because we are typically more conservative 109 00:04:31,240 --> 00:04:33,919 Speaker 4: than men are. So men are often willing to go 110 00:04:34,080 --> 00:04:36,480 Speaker 4: into a risk your investment or take a chance on 111 00:04:36,520 --> 00:04:39,320 Speaker 4: something than women are. We often feel like we need 112 00:04:39,360 --> 00:04:42,800 Speaker 4: to be across the entire situation before even dipping our 113 00:04:42,880 --> 00:04:45,800 Speaker 4: toes in. So you know that really well known analogy 114 00:04:45,880 --> 00:04:47,840 Speaker 4: that says that if a woman doesn't feel like they 115 00:04:47,880 --> 00:04:50,840 Speaker 4: fit every single piece of criteria in a job description, 116 00:04:50,960 --> 00:04:52,279 Speaker 4: she doesn't apply for the jobs. 117 00:04:52,240 --> 00:04:53,120 Speaker 1: Oh, I've definitely been there. 118 00:04:53,320 --> 00:04:53,960 Speaker 3: Yeah exactly. 119 00:04:54,160 --> 00:04:56,680 Speaker 4: But then men feel like if they meet only I 120 00:04:56,680 --> 00:04:57,719 Speaker 4: think it's eighty percent. 121 00:04:57,960 --> 00:04:58,599 Speaker 3: Don't quote me. 122 00:04:58,640 --> 00:05:00,200 Speaker 4: I'm not sure if I'm right on this, but if 123 00:05:00,200 --> 00:05:03,000 Speaker 4: they feel like they meet eighty percent, they will apply 124 00:05:03,080 --> 00:05:05,240 Speaker 4: for the role. So I think that women feel as 125 00:05:05,320 --> 00:05:07,640 Speaker 4: though they need to be a one hundred percent across 126 00:05:07,680 --> 00:05:10,360 Speaker 4: what they're going to jump into, whereas men are willing 127 00:05:10,400 --> 00:05:11,719 Speaker 4: to take a bit more of a chance. 128 00:05:11,960 --> 00:05:14,120 Speaker 1: Which in this case, is it a better thing to 129 00:05:14,160 --> 00:05:15,520 Speaker 1: be more tentative? Do you think? 130 00:05:15,800 --> 00:05:18,120 Speaker 4: I think in the beginning, it's always intelligent to make 131 00:05:18,160 --> 00:05:20,360 Speaker 4: sure that you know where you're going and what foot 132 00:05:20,400 --> 00:05:21,920 Speaker 4: you're going to put in front of the other and 133 00:05:21,920 --> 00:05:24,040 Speaker 4: what that looks like. But at the same time, that's 134 00:05:24,080 --> 00:05:25,960 Speaker 4: why you're here, right, That's why you're listening to the 135 00:05:25,960 --> 00:05:28,200 Speaker 4: Sheese on the Money podcast. You want to get better 136 00:05:28,240 --> 00:05:30,120 Speaker 4: at these things, and you're going to by the end 137 00:05:30,120 --> 00:05:30,800 Speaker 4: of the episode. 138 00:05:31,040 --> 00:05:31,240 Speaker 2: Yeah. 139 00:05:31,600 --> 00:05:34,520 Speaker 1: So on that note, though, how exactly do you create wealth? 140 00:05:34,760 --> 00:05:37,400 Speaker 4: So let's be really really simple here. The mechanics of 141 00:05:37,440 --> 00:05:40,640 Speaker 4: wealth creation are incredibly simple. You have to spend less 142 00:05:40,640 --> 00:05:43,120 Speaker 4: than you earn and invest consistently over the long term. 143 00:05:43,200 --> 00:05:44,359 Speaker 3: That's what creates wealth. 144 00:05:44,680 --> 00:05:47,240 Speaker 4: So there are heaps of other little intricacies to this, 145 00:05:47,560 --> 00:05:49,320 Speaker 4: but those are the two main things. If you can 146 00:05:49,360 --> 00:05:51,960 Speaker 4: create a lifestyle for yourself where you are spending less 147 00:05:51,960 --> 00:05:54,839 Speaker 4: than you are earning, and you're able to consistently invest 148 00:05:54,839 --> 00:05:57,479 Speaker 4: in something on a monthly or weekly basis, then you 149 00:05:57,520 --> 00:05:59,640 Speaker 4: are going to be able to over the long term, 150 00:05:59,680 --> 00:06:00,520 Speaker 4: create wealth. 151 00:06:00,839 --> 00:06:03,080 Speaker 1: So it's something you have to like incorporate into your lifestyle. 152 00:06:03,120 --> 00:06:06,000 Speaker 4: I guess absolutely, And I think the investment industry and 153 00:06:06,200 --> 00:06:08,479 Speaker 4: the finance industry as a whole likes to make this 154 00:06:08,560 --> 00:06:10,960 Speaker 4: seem a whole heap more complicated than it actually is. 155 00:06:11,520 --> 00:06:13,760 Speaker 1: Let's start with the most basic of the basics. Then, 156 00:06:14,000 --> 00:06:15,680 Speaker 1: what exactly is an investment? 157 00:06:16,320 --> 00:06:17,000 Speaker 3: Fun question? 158 00:06:17,480 --> 00:06:20,560 Speaker 4: An investment is something which you purchase with money, which 159 00:06:20,600 --> 00:06:23,479 Speaker 4: you expect to produce an income or a profit for you. 160 00:06:23,960 --> 00:06:27,760 Speaker 4: So ideally you'll have both income and growth in an investment, 161 00:06:27,839 --> 00:06:30,400 Speaker 4: because that's my favorite type of investment. 162 00:06:30,560 --> 00:06:31,360 Speaker 3: It's one where it. 163 00:06:31,320 --> 00:06:33,839 Speaker 4: Grows in value, but it also gives you cash along 164 00:06:33,839 --> 00:06:34,120 Speaker 4: the way. 165 00:06:34,240 --> 00:06:36,920 Speaker 1: Okay, gotcha. So what on earth is a share then? 166 00:06:37,080 --> 00:06:38,760 Speaker 1: And why might I want to buy some? Because I 167 00:06:38,800 --> 00:06:40,560 Speaker 1: feel like I should be buying some right now because 168 00:06:40,600 --> 00:06:42,360 Speaker 1: I have savings and I'm not doing anything with those them. 169 00:06:42,680 --> 00:06:45,599 Speaker 4: Let's talk so first part of that question. A share 170 00:06:45,680 --> 00:06:48,880 Speaker 4: is simply a teeny tiny part of a company. So 171 00:06:48,920 --> 00:06:52,200 Speaker 4: a company goes to market puts themselves on the stock exchange, 172 00:06:52,240 --> 00:06:52,839 Speaker 4: and as. 173 00:06:52,720 --> 00:06:55,280 Speaker 3: A shareholder, you're able to purchase a. 174 00:06:55,360 --> 00:06:58,680 Speaker 4: Very small amount of that company. So you know, think 175 00:06:58,720 --> 00:07:01,200 Speaker 4: of a pie. It's divided up into a million slices, 176 00:07:01,200 --> 00:07:04,560 Speaker 4: and you get a tiny piece of that pie. That 177 00:07:04,800 --> 00:07:08,520 Speaker 4: entitles you to the income that that business produces, and 178 00:07:08,560 --> 00:07:11,640 Speaker 4: it also entitles you to the growth that business achieves. 179 00:07:11,840 --> 00:07:14,080 Speaker 4: So you might buy a share for a dollar right now, 180 00:07:14,160 --> 00:07:16,680 Speaker 4: and then the company performs well, so the share increases 181 00:07:16,720 --> 00:07:18,040 Speaker 4: in price and it's worth you know. 182 00:07:17,960 --> 00:07:19,600 Speaker 3: Maybe a dollar fifty if you're lucky. 183 00:07:19,920 --> 00:07:22,960 Speaker 4: And then because in that year that company did really well, 184 00:07:23,360 --> 00:07:25,120 Speaker 4: they divide some of the profit to you, so you 185 00:07:25,200 --> 00:07:27,880 Speaker 4: might get twenty or thirty cents back for owning that share, 186 00:07:28,240 --> 00:07:29,800 Speaker 4: So you get income and grow. 187 00:07:29,880 --> 00:07:31,680 Speaker 1: It's like a thirty cent ConA mac. Is it's good 188 00:07:31,760 --> 00:07:32,160 Speaker 1: enough for me? 189 00:07:32,320 --> 00:07:34,120 Speaker 3: I wish they were still thirty cents. I think that, 190 00:07:34,280 --> 00:07:39,000 Speaker 3: oh yeah, what a drain up that bad, bad investment. 191 00:07:39,160 --> 00:07:41,000 Speaker 1: So would you how much would you recommend I put 192 00:07:41,000 --> 00:07:41,600 Speaker 1: into a share? 193 00:07:41,640 --> 00:07:41,800 Speaker 5: Then? 194 00:07:42,000 --> 00:07:43,800 Speaker 1: Is it true that the bare minimum to get my 195 00:07:43,840 --> 00:07:45,400 Speaker 1: foot in the door is five hundred dollars? 196 00:07:45,600 --> 00:07:48,000 Speaker 4: I think a lot of people throw this number around, 197 00:07:48,120 --> 00:07:50,920 Speaker 4: but they're not entirely sure of why five hundred dollars 198 00:07:50,960 --> 00:07:53,560 Speaker 4: would be the minimum. So it's not because shares cost 199 00:07:53,680 --> 00:07:56,200 Speaker 4: five hundred dollars. That is absolutely not the case at all. 200 00:07:56,400 --> 00:07:59,040 Speaker 4: It's actually because of the brokerage on the share. So 201 00:07:59,120 --> 00:08:02,360 Speaker 4: brokerage is you have to pay a transaction cost to 202 00:08:02,520 --> 00:08:05,680 Speaker 4: get your money into purchasing a share, and that is 203 00:08:05,720 --> 00:08:09,120 Speaker 4: actually quite pricey, so on larger sums of money it 204 00:08:09,200 --> 00:08:10,320 Speaker 4: becomes far less. 205 00:08:10,800 --> 00:08:12,480 Speaker 3: So hypothetically you could buy. 206 00:08:12,400 --> 00:08:14,840 Speaker 4: One one dollar share if you really wanted to, But 207 00:08:14,880 --> 00:08:17,480 Speaker 4: the reason you don't is because there's actually a minimum 208 00:08:17,560 --> 00:08:21,080 Speaker 4: brokerage amount which then forms what we call the cost 209 00:08:21,120 --> 00:08:26,200 Speaker 4: base for your asset. So that one dollar share you purchased, 210 00:08:26,480 --> 00:08:29,160 Speaker 4: you would then pay maybe twelve dollars brokerage on it, 211 00:08:29,680 --> 00:08:32,560 Speaker 4: so that share actually cost you thirteen dollars. And the 212 00:08:32,640 --> 00:08:35,360 Speaker 4: problem is that now you have an asset that's worth 213 00:08:35,400 --> 00:08:38,319 Speaker 4: one dollar, and to break even, your share actually has 214 00:08:38,360 --> 00:08:41,839 Speaker 4: to perform to be more than thirteen dollars in terms 215 00:08:41,840 --> 00:08:45,840 Speaker 4: of return. So that's to me very unrealistic expectations for 216 00:08:46,120 --> 00:08:48,559 Speaker 4: share performance and for investment performance. 217 00:08:48,840 --> 00:08:50,520 Speaker 3: So that is why I wouldn't. 218 00:08:50,120 --> 00:08:53,959 Speaker 4: Recommend buying shares at a lower level or buying shares 219 00:08:54,480 --> 00:08:57,400 Speaker 4: for small sums of money, I'd be looking at, you know, 220 00:08:57,559 --> 00:08:58,760 Speaker 4: bulk buying shares. 221 00:08:59,080 --> 00:09:01,439 Speaker 1: So for me then it doesn't feel like it's worth 222 00:09:01,440 --> 00:09:03,600 Speaker 1: buying a share. Is that true? Do you reckon? 223 00:09:03,760 --> 00:09:04,240 Speaker 3: Do you know what? 224 00:09:04,280 --> 00:09:06,240 Speaker 4: If you're going to buy one share, it's absolutely not 225 00:09:06,280 --> 00:09:08,640 Speaker 4: worth it if you're paying twelve dollars brokerage and then 226 00:09:08,679 --> 00:09:09,800 Speaker 4: you're buying a share that. 227 00:09:09,840 --> 00:09:10,720 Speaker 3: Is worth one dollar. 228 00:09:10,800 --> 00:09:13,360 Speaker 4: If you're buying a thousand dollars worth of shares, twelve 229 00:09:13,360 --> 00:09:16,120 Speaker 4: dollars on one thousand dollars worth of shares actually seems 230 00:09:16,200 --> 00:09:18,920 Speaker 4: quite reasonable. So when I'm talking to clients and when 231 00:09:18,920 --> 00:09:21,680 Speaker 4: I'm talking to people about getting into the share market, 232 00:09:21,960 --> 00:09:25,160 Speaker 4: I think it's really important to bundle money together. So 233 00:09:25,320 --> 00:09:27,840 Speaker 4: maybe have a savings account off to the side that 234 00:09:27,920 --> 00:09:29,800 Speaker 4: you know that when it gets to one thousand dollars, 235 00:09:29,840 --> 00:09:32,240 Speaker 4: that's when you purchase a whole Hebrew shares and going 236 00:09:32,240 --> 00:09:36,440 Speaker 4: to the share market instead of buying you know, twenty 237 00:09:36,480 --> 00:09:38,719 Speaker 4: dollars worth of shares here and there, because that all 238 00:09:38,760 --> 00:09:42,080 Speaker 4: adds up and your brokerage actually becomes the reason why 239 00:09:42,120 --> 00:09:44,520 Speaker 4: your investment might not perform as well as it could. 240 00:09:44,760 --> 00:09:47,439 Speaker 1: So this could be a dumb question, sorry in advance, 241 00:09:48,000 --> 00:09:50,200 Speaker 1: Where do I go to invest like by do it 242 00:09:50,240 --> 00:09:52,160 Speaker 1: on the internet or is there a website that I 243 00:09:52,240 --> 00:09:52,520 Speaker 1: go to? 244 00:09:53,040 --> 00:09:55,960 Speaker 3: So absolutely not a dumb question at all. 245 00:09:56,040 --> 00:09:58,560 Speaker 4: It is probably one of the most common questions that 246 00:09:58,640 --> 00:10:02,120 Speaker 4: gets asked about per chasing shares or starting your investment journey. 247 00:10:02,480 --> 00:10:04,120 Speaker 4: So there are a whole heap of ways you can 248 00:10:04,120 --> 00:10:07,720 Speaker 4: buy a share or shares in general, as we just 249 00:10:08,200 --> 00:10:10,520 Speaker 4: worked out, we need to be buying them bulk lots. 250 00:10:11,559 --> 00:10:14,680 Speaker 4: The first is self directed, so there are platforms like Comsex, 251 00:10:14,720 --> 00:10:17,720 Speaker 4: self Wealth and ig markets that you're able to buy 252 00:10:17,760 --> 00:10:19,760 Speaker 4: your own shares on. But I think if you're going 253 00:10:19,800 --> 00:10:22,160 Speaker 4: to be purchasing shares on your own and going out 254 00:10:22,240 --> 00:10:24,200 Speaker 4: making all those decisions, you really need. 255 00:10:24,080 --> 00:10:25,960 Speaker 3: To know exactly what you're doing. 256 00:10:26,160 --> 00:10:28,160 Speaker 4: So not only do I want you to be understanding 257 00:10:28,200 --> 00:10:31,360 Speaker 4: exactly what you're buying, but you need to understand one 258 00:10:31,440 --> 00:10:35,319 Speaker 4: how to create a well diversified portfolio, but also understand 259 00:10:35,360 --> 00:10:39,360 Speaker 4: the company that you're purchasing financials and their management record, 260 00:10:39,440 --> 00:10:42,839 Speaker 4: and understand what their board is and how their executive 261 00:10:42,880 --> 00:10:44,800 Speaker 4: team works, and you know what the culture of that 262 00:10:44,880 --> 00:10:48,080 Speaker 4: business looks like, and that if you actually distill it 263 00:10:48,120 --> 00:10:50,280 Speaker 4: down is a lot to take on as an individual, 264 00:10:50,520 --> 00:10:52,439 Speaker 4: especially if you're saying, well, I've got my first two 265 00:10:52,480 --> 00:10:55,320 Speaker 4: thousand dollars, what do I do with that? Making a 266 00:10:55,400 --> 00:10:58,160 Speaker 4: decision on which share you purchase is actually a lot 267 00:10:58,160 --> 00:10:59,600 Speaker 4: more complex than you might think. 268 00:10:59,640 --> 00:10:59,880 Speaker 2: It is. 269 00:11:00,440 --> 00:11:02,880 Speaker 4: The second place you could go if you're not going 270 00:11:02,920 --> 00:11:05,720 Speaker 4: to purchase shares on your own is a financial advisor. 271 00:11:06,160 --> 00:11:08,760 Speaker 4: I think there's a massive misconception in the market that 272 00:11:08,840 --> 00:11:11,720 Speaker 4: a financial advisor is for someone who's either really rich 273 00:11:11,920 --> 00:11:14,440 Speaker 4: or about to retire, and that couldn't be further from 274 00:11:14,480 --> 00:11:16,800 Speaker 4: the truth. You don't go to the gym once you're 275 00:11:16,840 --> 00:11:19,880 Speaker 4: already fit, So why would you see a financial advisor 276 00:11:20,160 --> 00:11:23,280 Speaker 4: once you're already rich. So a financial advisor is going 277 00:11:23,320 --> 00:11:25,800 Speaker 4: to partner with you to create wealth and hold your 278 00:11:25,800 --> 00:11:29,120 Speaker 4: hand during that journey and help you put together an 279 00:11:29,120 --> 00:11:31,760 Speaker 4: investment portfolio and show you where to start on what 280 00:11:31,800 --> 00:11:33,440 Speaker 4: you can do and how to do it in the 281 00:11:33,480 --> 00:11:34,440 Speaker 4: most efficient way. 282 00:11:34,960 --> 00:11:37,240 Speaker 1: So in what part of the process should I get 283 00:11:37,240 --> 00:11:39,880 Speaker 1: a stockbroker? What even is a stockbroker? 284 00:11:40,080 --> 00:11:42,280 Speaker 4: So a stockbroker is just someone who buys and sells 285 00:11:42,280 --> 00:11:44,840 Speaker 4: shares on behalf of a client. So that is like, 286 00:11:45,600 --> 00:11:48,960 Speaker 4: as I mentioned, before places like com sick. They're a stockbroker. 287 00:11:49,080 --> 00:11:51,680 Speaker 4: They broke a stocks, but they don't help you select 288 00:11:51,720 --> 00:11:54,240 Speaker 4: the stocks that are right for you. They just buy 289 00:11:54,280 --> 00:11:56,960 Speaker 4: the stocks that you instruct them to buy for you. 290 00:11:56,960 --> 00:11:58,800 Speaker 1: You know, like the movies like Wolf of Wall Street. 291 00:11:58,880 --> 00:12:02,240 Speaker 1: Is it the guy, Well, typically it's the guy who's 292 00:12:02,280 --> 00:12:05,000 Speaker 1: in that big room with all the TVs and oh 293 00:12:05,040 --> 00:12:05,400 Speaker 1: that's me. 294 00:12:05,679 --> 00:12:09,319 Speaker 3: No, no, no, absolutely not. Yeah. So they're stockbrokers. 295 00:12:09,320 --> 00:12:11,560 Speaker 4: They're the kinds of people that are gonna sell shares 296 00:12:11,600 --> 00:12:13,760 Speaker 4: to anyone who will take them, and anyone they can 297 00:12:13,880 --> 00:12:17,079 Speaker 4: convince to purchase the shares that they are are offering. 298 00:12:17,200 --> 00:12:18,959 Speaker 1: Okay, when should I invest them? 299 00:12:19,520 --> 00:12:20,079 Speaker 3: Yesterday? 300 00:12:20,400 --> 00:12:21,640 Speaker 1: Oh no. 301 00:12:22,160 --> 00:12:24,400 Speaker 4: They always say, if you are going to plant a tree, 302 00:12:24,440 --> 00:12:26,640 Speaker 4: the best time to plant a tree is fifty years ago, 303 00:12:26,720 --> 00:12:30,120 Speaker 4: and the second best time is today. So investing over 304 00:12:30,160 --> 00:12:33,800 Speaker 4: the long term is not going to be gratifying immediately. 305 00:12:33,960 --> 00:12:36,760 Speaker 4: It's going to take ten, twenty thirty years before you 306 00:12:36,880 --> 00:12:39,839 Speaker 4: even see that compounding effect take place. 307 00:12:39,920 --> 00:12:40,760 Speaker 1: I'm so impatient. 308 00:12:41,080 --> 00:12:43,720 Speaker 4: I am too, and I think that most people listening 309 00:12:43,720 --> 00:12:46,120 Speaker 4: to this podcast are as well, because that's just the 310 00:12:46,200 --> 00:12:47,320 Speaker 4: nature of our generation. 311 00:12:47,520 --> 00:12:48,720 Speaker 3: We are quite impatient. 312 00:12:48,760 --> 00:12:51,280 Speaker 4: We aren't in a position where we are willing to 313 00:12:51,360 --> 00:12:53,720 Speaker 4: wait long term for things in a world where we 314 00:12:53,760 --> 00:12:56,840 Speaker 4: can click and have, you know, an iconic delivery at 315 00:12:56,840 --> 00:12:59,400 Speaker 4: our doorstep on the same day that I ordered it. 316 00:12:59,400 --> 00:13:01,959 Speaker 4: It seems a bit ridiculous to be waiting ten, twenty 317 00:13:02,040 --> 00:13:05,240 Speaker 4: thirty years for something, But it is so incredibly important 318 00:13:05,320 --> 00:13:07,600 Speaker 4: to work out what your long term goals are and 319 00:13:07,640 --> 00:13:10,120 Speaker 4: if you're going to start this investment journey, start it 320 00:13:10,240 --> 00:13:14,280 Speaker 4: for the long term. So money on average doubles every 321 00:13:14,360 --> 00:13:17,000 Speaker 4: ten years. So if we look at the Australian share 322 00:13:17,040 --> 00:13:20,200 Speaker 4: market that has an average rate of return of seven 323 00:13:20,200 --> 00:13:23,680 Speaker 4: point five percent over the last thirty years, and if 324 00:13:23,720 --> 00:13:25,760 Speaker 4: we look at that, that means that your money will 325 00:13:25,800 --> 00:13:28,559 Speaker 4: double in seven to ten years. And I think that 326 00:13:28,559 --> 00:13:32,000 Speaker 4: that's really important to take into consideration because I'm not 327 00:13:32,360 --> 00:13:35,440 Speaker 4: ever recommending anybody to go into an investment if they 328 00:13:35,480 --> 00:13:38,480 Speaker 4: are not willing to wait it out for the long term, but. 329 00:13:38,440 --> 00:13:39,560 Speaker 1: It seems like it'd be worth it. 330 00:13:39,559 --> 00:13:43,319 Speaker 4: Doubling is huge, absolutely, and that's the effect of compounding interest. 331 00:13:43,679 --> 00:13:45,680 Speaker 1: So if I still have a mortgage then or a 332 00:13:45,720 --> 00:13:47,559 Speaker 1: debt to my name, should I be paying that off 333 00:13:47,600 --> 00:13:49,120 Speaker 1: first before I look into investments. 334 00:13:49,160 --> 00:13:51,640 Speaker 3: So there's no actual black and white answer to this. 335 00:13:51,760 --> 00:13:53,200 Speaker 3: It could be a yes, it could be a no. 336 00:13:53,400 --> 00:13:57,160 Speaker 4: It really depends upon your personal situation and the interest 337 00:13:57,240 --> 00:13:58,240 Speaker 4: rate you have on. 338 00:13:58,200 --> 00:13:59,280 Speaker 3: The debts that you have. 339 00:14:00,000 --> 00:14:03,240 Speaker 4: You've got personal debt or credit card debt, and your 340 00:14:03,280 --> 00:14:05,440 Speaker 4: interest rate on that is fifteen percent. 341 00:14:05,840 --> 00:14:07,840 Speaker 3: You essentially have an investment. 342 00:14:07,440 --> 00:14:10,000 Speaker 4: That's making you negative fifteen percent and you need to 343 00:14:10,040 --> 00:14:13,040 Speaker 4: get rid of that as soon as possible. Where As 344 00:14:13,120 --> 00:14:16,319 Speaker 4: if you have a mortgage and you're paying three point 345 00:14:16,400 --> 00:14:19,880 Speaker 4: five percent, but then the Australian share market is returning 346 00:14:19,960 --> 00:14:22,360 Speaker 4: seven point five percent over the long term and you 347 00:14:22,440 --> 00:14:24,840 Speaker 4: still have another thirty years left on your three point 348 00:14:24,920 --> 00:14:28,040 Speaker 4: five percent mortgage, I know where I'd be putting my 349 00:14:28,080 --> 00:14:29,160 Speaker 4: money right. 350 00:14:29,520 --> 00:14:31,880 Speaker 1: So how the hell do I know what to invest in? 351 00:14:31,960 --> 00:14:32,120 Speaker 2: Then? 352 00:14:32,360 --> 00:14:34,240 Speaker 1: Like, how do I research what my options are? 353 00:14:35,080 --> 00:14:38,000 Speaker 4: So again, you could have a chat to a financial advisor. 354 00:14:38,080 --> 00:14:40,760 Speaker 4: They're going to know what works for you. A very 355 00:14:40,760 --> 00:14:44,520 Speaker 4: big part of investment is understanding the risk profile, and 356 00:14:44,560 --> 00:14:47,480 Speaker 4: whilst that's not a very exciting thing to talk about, 357 00:14:47,640 --> 00:14:50,640 Speaker 4: it educates you on what level of risk you're willing 358 00:14:50,680 --> 00:14:53,400 Speaker 4: to take on. So with any type of investment, there 359 00:14:53,480 --> 00:14:57,000 Speaker 4: is always risk versus return, and the more risk you 360 00:14:57,120 --> 00:14:59,400 Speaker 4: take on, the more return you are likely to have. 361 00:14:59,480 --> 00:15:02,280 Speaker 4: But in this vain you're also taking on more risk 362 00:15:02,440 --> 00:15:07,120 Speaker 4: so potentially losing more. Yeah, you're essentially putting yourself in 363 00:15:07,120 --> 00:15:09,400 Speaker 4: a position where you could lose more money, but the 364 00:15:09,440 --> 00:15:11,040 Speaker 4: return on that money, if it. 365 00:15:10,960 --> 00:15:12,720 Speaker 3: Is successful, is going to be greater. 366 00:15:13,360 --> 00:15:16,000 Speaker 4: So you need to understand that before you even talk 367 00:15:16,040 --> 00:15:18,520 Speaker 4: about the types of shares you're investing in or what. 368 00:15:18,560 --> 00:15:20,760 Speaker 3: Works for you. And that's such a personal thing. 369 00:15:20,920 --> 00:15:22,520 Speaker 1: Yeah, so you can't just like dive into it and 370 00:15:22,520 --> 00:15:23,120 Speaker 1: be like, oh, I'm going. 371 00:15:23,080 --> 00:15:25,480 Speaker 4: To invest No, And my job would be so much 372 00:15:25,480 --> 00:15:27,720 Speaker 4: easier if I could just say on this podcast, hey, 373 00:15:27,880 --> 00:15:30,600 Speaker 4: here's ten stocks everybody should purchase and it's going to 374 00:15:30,640 --> 00:15:32,920 Speaker 4: make you wealthy and this will work really well. Because 375 00:15:33,040 --> 00:15:35,840 Speaker 4: unfortunately that's not the case and it's not how it works. 376 00:15:35,920 --> 00:15:38,880 Speaker 4: And you know, even if I created a portfolio today 377 00:15:38,920 --> 00:15:41,120 Speaker 4: of what I believe are the ten best stocks for 378 00:15:41,160 --> 00:15:44,920 Speaker 4: a particular risk profile tomorrow, that could be a different 379 00:15:44,960 --> 00:15:47,880 Speaker 4: set of companies based on the way the share market performs. 380 00:15:48,000 --> 00:15:50,200 Speaker 1: There have been a bunch of conversations in our Facebook 381 00:15:50,200 --> 00:15:52,400 Speaker 1: group from women who don't want to buy a home. 382 00:15:52,920 --> 00:15:55,480 Speaker 1: Why is investing a great other option to create wealth. 383 00:15:56,200 --> 00:15:58,880 Speaker 4: So I think there are a lot of people who 384 00:15:58,920 --> 00:16:01,680 Speaker 4: are going to argue with me on this point, but 385 00:16:01,920 --> 00:16:05,400 Speaker 4: I don't personally believe that a family home is an investment. 386 00:16:05,800 --> 00:16:07,000 Speaker 1: It is, oh. 387 00:16:08,400 --> 00:16:12,040 Speaker 4: So it is the one asset that you will spend 388 00:16:12,120 --> 00:16:14,760 Speaker 4: the most money on. So if you purchase a home 389 00:16:14,880 --> 00:16:18,480 Speaker 4: and you live in that home, that home becomes an 390 00:16:18,520 --> 00:16:21,440 Speaker 4: asset where you're funneling money. So you might want a 391 00:16:21,480 --> 00:16:24,240 Speaker 4: new kitchen or a new bathroom, or the hot order 392 00:16:24,280 --> 00:16:27,040 Speaker 4: system might break and you need to replace it. All 393 00:16:27,120 --> 00:16:29,840 Speaker 4: of those things don't add value to your home in 394 00:16:29,880 --> 00:16:33,479 Speaker 4: the grand scheme of things. I mean, there are situations 395 00:16:33,480 --> 00:16:35,920 Speaker 4: where people purchase property and they flip it and they 396 00:16:35,920 --> 00:16:38,640 Speaker 4: put in a beautiful new kitchen and it increases its 397 00:16:38,760 --> 00:16:41,480 Speaker 4: value by x amount. So I'm not talking about that. 398 00:16:41,560 --> 00:16:43,520 Speaker 4: I'm talking about a family home that you move into 399 00:16:43,600 --> 00:16:46,680 Speaker 4: for the long term. It's also something where if you've 400 00:16:46,680 --> 00:16:50,800 Speaker 4: got owner occupy a debt on that property, it's not deductible, 401 00:16:51,160 --> 00:16:55,040 Speaker 4: whereas sometimes if you have debt on an investment or 402 00:16:55,120 --> 00:17:00,720 Speaker 4: an investment property, that debt could be deductible. A debt, 403 00:17:01,240 --> 00:17:03,440 Speaker 4: so it means debt on the home that you live in. 404 00:17:04,080 --> 00:17:06,440 Speaker 4: So it is you purchase a home, you move into 405 00:17:06,480 --> 00:17:08,840 Speaker 4: that home, and for living in that home, you have 406 00:17:08,920 --> 00:17:09,720 Speaker 4: an interest. 407 00:17:09,480 --> 00:17:10,000 Speaker 3: Rate to pay. 408 00:17:10,359 --> 00:17:13,480 Speaker 4: That is the debt that you're paying the bank to 409 00:17:13,560 --> 00:17:14,880 Speaker 4: live in that house and paid off. 410 00:17:15,000 --> 00:17:17,640 Speaker 1: So I currently have all my money in a high 411 00:17:17,680 --> 00:17:20,880 Speaker 1: interest bank account because I feel like it's safer. Why 412 00:17:20,920 --> 00:17:22,760 Speaker 1: should I invest though? Should I keep that money in 413 00:17:22,840 --> 00:17:24,600 Speaker 1: that bank account or should I invest in shares? 414 00:17:25,280 --> 00:17:27,080 Speaker 3: Again contentious point. 415 00:17:27,600 --> 00:17:29,800 Speaker 4: There's a lot of conversation going on in our Facebook 416 00:17:29,800 --> 00:17:32,720 Speaker 4: group around what the best bank account is and what 417 00:17:32,840 --> 00:17:34,879 Speaker 4: gets you the highest rate of return, And there's a 418 00:17:34,960 --> 00:17:37,680 Speaker 4: lot of people up in arms because recently interest rates 419 00:17:37,680 --> 00:17:39,720 Speaker 4: have been cut and places that used to be the 420 00:17:39,720 --> 00:17:42,119 Speaker 4: favorites of people in the group, like I ANDNG, have 421 00:17:42,200 --> 00:17:45,439 Speaker 4: dropped their interest rates pretty significantly in comparison to what 422 00:17:45,480 --> 00:17:48,959 Speaker 4: they used to have. And it all makes sense, and 423 00:17:49,000 --> 00:17:51,960 Speaker 4: it is great to be seeking out something that has 424 00:17:52,040 --> 00:17:55,840 Speaker 4: a real interest rate return really important. But if we 425 00:17:55,880 --> 00:17:59,000 Speaker 4: think about it properly, a real rate of return on 426 00:17:59,040 --> 00:18:02,760 Speaker 4: a quote un quote high interest bank account is actually 427 00:18:02,880 --> 00:18:06,720 Speaker 4: zero point seven percent. So do you want your money 428 00:18:06,840 --> 00:18:09,240 Speaker 4: only making you zero point seven percent? 429 00:18:09,640 --> 00:18:10,280 Speaker 1: No? 430 00:18:10,280 --> 00:18:13,520 Speaker 4: No, So regardless of what the interest rate is and 431 00:18:13,640 --> 00:18:16,000 Speaker 4: it's much better than nothing. So that's the real rate 432 00:18:16,040 --> 00:18:18,760 Speaker 4: of return. So that's not you know, the two percent 433 00:18:18,880 --> 00:18:21,560 Speaker 4: or whatever they're advertising at that point in time in 434 00:18:21,640 --> 00:18:24,360 Speaker 4: terms of return. Because this year inflation is one point 435 00:18:24,440 --> 00:18:26,640 Speaker 4: eight percent. So if you then look at the real 436 00:18:26,720 --> 00:18:30,000 Speaker 4: rate zero point seven percent, is that going to create 437 00:18:30,040 --> 00:18:31,320 Speaker 4: wealth for you long term? 438 00:18:31,720 --> 00:18:31,960 Speaker 1: Yes? 439 00:18:32,160 --> 00:18:34,159 Speaker 4: No, maybe. I think it's something you need to have 440 00:18:34,160 --> 00:18:35,200 Speaker 4: a really good think about. 441 00:18:35,400 --> 00:18:37,359 Speaker 1: I'm quite risk averse. I think that's why I have 442 00:18:37,400 --> 00:18:40,479 Speaker 1: an invested in shares. What's the risk involved in investing 443 00:18:40,480 --> 00:18:41,800 Speaker 1: in shares? What if I lose money? 444 00:18:42,040 --> 00:18:44,240 Speaker 4: That's a part of investment. So there is always going 445 00:18:44,320 --> 00:18:46,000 Speaker 4: to be a risk that something will happen. That is 446 00:18:46,040 --> 00:18:49,320 Speaker 4: the nature of investment. Even just the term investment means 447 00:18:49,359 --> 00:18:52,280 Speaker 4: putting your money in a place that could potentially win something, 448 00:18:52,320 --> 00:18:55,760 Speaker 4: but it could also lose something. I think that if 449 00:18:55,760 --> 00:18:58,400 Speaker 4: you're going to start looking at investments, though, you need 450 00:18:58,440 --> 00:19:00,639 Speaker 4: to start looking at it over the law long term 451 00:19:00,880 --> 00:19:03,080 Speaker 4: and not really get caught up in the volatility of 452 00:19:03,119 --> 00:19:06,159 Speaker 4: the market. So volatility is how much the market moves 453 00:19:06,240 --> 00:19:08,840 Speaker 4: up and down, and you know, we hear of horror 454 00:19:08,880 --> 00:19:12,919 Speaker 4: stories like the GFC and how the entire market crashed 455 00:19:12,920 --> 00:19:15,280 Speaker 4: and lots of people lost a lot of money. But 456 00:19:15,400 --> 00:19:18,880 Speaker 4: those people who were invested very smartly didn't actually lose 457 00:19:18,880 --> 00:19:21,000 Speaker 4: a lot of money because they rode that wave. They 458 00:19:21,080 --> 00:19:23,720 Speaker 4: let their stocks crash down to not be worth a lot, 459 00:19:24,080 --> 00:19:27,000 Speaker 4: and over the period of time between two thousand and 460 00:19:27,080 --> 00:19:30,000 Speaker 4: nine when the crash happened to now, they've actually made 461 00:19:30,080 --> 00:19:34,479 Speaker 4: money if they stayed invested. What happens often is people 462 00:19:34,480 --> 00:19:37,560 Speaker 4: freak out. So if you look at your investment account 463 00:19:37,680 --> 00:19:40,400 Speaker 4: and you had one thousand dollars in there, and then 464 00:19:40,640 --> 00:19:42,280 Speaker 4: you looked at it and it was only worth one 465 00:19:42,320 --> 00:19:44,680 Speaker 4: hundred dollars, you are very likely to want to pull 466 00:19:44,680 --> 00:19:47,360 Speaker 4: that one hundred dollars out to quote save what you've 467 00:19:47,359 --> 00:19:50,200 Speaker 4: got left, when in actual fact, that is the point 468 00:19:50,200 --> 00:19:52,439 Speaker 4: where you're going to make the biggest loss and you 469 00:19:52,520 --> 00:19:54,840 Speaker 4: need to ride it out so that your money can 470 00:19:54,880 --> 00:19:55,919 Speaker 4: recover and. 471 00:19:55,840 --> 00:19:57,000 Speaker 3: You end up with a game. 472 00:19:57,359 --> 00:20:00,280 Speaker 4: If we look at the Australian share market since call 473 00:20:00,280 --> 00:20:04,080 Speaker 4: it nineteen eighty five, the average rate of return including 474 00:20:04,119 --> 00:20:07,359 Speaker 4: the GFC is about ten percent, So if we invest 475 00:20:07,400 --> 00:20:09,600 Speaker 4: over the long term, we're not really losing. 476 00:20:10,040 --> 00:20:12,879 Speaker 1: Okay, Why is it important for young women to understand 477 00:20:12,920 --> 00:20:14,280 Speaker 1: about investing now. 478 00:20:14,440 --> 00:20:16,960 Speaker 4: Because the sooner you start, the more time you have 479 00:20:17,080 --> 00:20:19,919 Speaker 4: for compounding to take effect, and the more time you 480 00:20:20,000 --> 00:20:24,080 Speaker 4: have to compound wealth. So if you start investing money 481 00:20:24,080 --> 00:20:26,800 Speaker 4: when you're in your early twenties and you're investing in 482 00:20:26,840 --> 00:20:28,919 Speaker 4: a figure like five hundred dollars a month, and I 483 00:20:28,960 --> 00:20:31,200 Speaker 4: know that that could be really unreasonable for some people, 484 00:20:31,240 --> 00:20:34,240 Speaker 4: but this example is just an example. If you're investing 485 00:20:34,280 --> 00:20:36,439 Speaker 4: five hundred dollars a month from the age of twenty 486 00:20:36,480 --> 00:20:40,600 Speaker 4: one until sixty five, you'll have an investment portfolio worth 487 00:20:40,720 --> 00:20:43,720 Speaker 4: about one point three or one point four million months, 488 00:20:44,240 --> 00:20:47,200 Speaker 4: which is a lot of money. It's a lot of money, 489 00:20:47,240 --> 00:20:49,560 Speaker 4: and that compounds over time. And if you're investing from 490 00:20:49,600 --> 00:20:52,960 Speaker 4: that period of time, you're actually only investing cash of 491 00:20:53,160 --> 00:20:56,439 Speaker 4: about two hundred and forty thousand dollars and you're making 492 00:20:56,480 --> 00:21:01,280 Speaker 4: about a million dollars in return. So full well, simple, 493 00:21:01,320 --> 00:21:03,879 Speaker 4: but not that simple, because a lot of people don't 494 00:21:03,920 --> 00:21:07,200 Speaker 4: have the ability to invest or, they don't have the knowledge, 495 00:21:07,280 --> 00:21:09,920 Speaker 4: and a lot of people are in a position where 496 00:21:09,920 --> 00:21:12,240 Speaker 4: they you know, might not feel comfortable to do that 497 00:21:12,320 --> 00:21:14,400 Speaker 4: yet or aren't ready to commit to that. So that's 498 00:21:14,480 --> 00:21:17,360 Speaker 4: just the power of starting early. Whereas if you started 499 00:21:17,359 --> 00:21:19,680 Speaker 4: in your late thirties, you're going to need to contribute 500 00:21:19,760 --> 00:21:22,560 Speaker 4: three or four thousand dollars a month to reach the 501 00:21:22,600 --> 00:21:25,360 Speaker 4: same goal that the person starting in their early twenties 502 00:21:25,400 --> 00:21:27,640 Speaker 4: only had to invest five hundred dollars for. So one 503 00:21:27,640 --> 00:21:29,800 Speaker 4: thing I actually wanted to mention before we move on 504 00:21:30,000 --> 00:21:34,080 Speaker 4: and about to tell, I want to quickly chat about superannuation. 505 00:21:34,640 --> 00:21:38,120 Speaker 4: So there are a lot of questions in the Facebook 506 00:21:38,119 --> 00:21:41,600 Speaker 4: group around superannuation and where where your money should go 507 00:21:41,680 --> 00:21:44,880 Speaker 4: and what that looks like, and you know what fund should. 508 00:21:44,560 --> 00:21:44,879 Speaker 6: I be with? 509 00:21:44,960 --> 00:21:47,360 Speaker 4: How does this work? How does it not work? If 510 00:21:47,400 --> 00:21:49,760 Speaker 4: you think that you're not an investor but you have 511 00:21:49,800 --> 00:21:51,960 Speaker 4: a superannuation fund, you are wrong. 512 00:21:52,200 --> 00:21:52,840 Speaker 3: You are an. 513 00:21:52,680 --> 00:21:56,400 Speaker 4: Investor already because all of the money in your superannuation 514 00:21:56,600 --> 00:21:59,840 Speaker 4: fund has been invested on your behalf. So a key 515 00:22:00,080 --> 00:22:02,960 Speaker 4: thing about super is that, whilst I'm saying right now 516 00:22:02,960 --> 00:22:06,199 Speaker 4: that the money in your super is invested, superannuation in 517 00:22:06,240 --> 00:22:09,479 Speaker 4: itself is not an investment. It is a tax vehicle, 518 00:22:09,720 --> 00:22:12,560 Speaker 4: which just means that you are investing all of that 519 00:22:12,640 --> 00:22:16,159 Speaker 4: money with a good tax gain. So your superannuation fund 520 00:22:16,280 --> 00:22:19,400 Speaker 4: is invested, which means you're actually already in an investor. 521 00:22:19,760 --> 00:22:23,920 Speaker 4: It just means it's in a safer tax environment. So 522 00:22:24,000 --> 00:22:28,200 Speaker 4: superannuation is taxed at fifteen percent, whereas most of you 523 00:22:28,240 --> 00:22:31,960 Speaker 4: will have marginal tax rates on your income at more 524 00:22:32,000 --> 00:22:33,080 Speaker 4: than fifteen percent. 525 00:22:33,440 --> 00:22:34,680 Speaker 3: So if you think you're not an. 526 00:22:34,600 --> 00:22:39,159 Speaker 4: Investor, you actually already are. Superannuation is almost ten percent 527 00:22:39,280 --> 00:22:41,920 Speaker 4: of your income that comes out of your account every 528 00:22:41,960 --> 00:22:44,720 Speaker 4: single month. So I think you should be taking that seriously. 529 00:22:44,880 --> 00:22:46,800 Speaker 4: And you know, if you want to start investing, have 530 00:22:46,880 --> 00:22:48,880 Speaker 4: a really good think about where your super is. Make 531 00:22:48,920 --> 00:22:51,560 Speaker 4: sure you're consolidating your accounts so you're not paying double fees, 532 00:22:51,880 --> 00:22:54,080 Speaker 4: and really start looking at that because one day it 533 00:22:54,080 --> 00:22:55,880 Speaker 4: could be your biggest asset. 534 00:22:55,840 --> 00:23:04,760 Speaker 1: Right, I need to do that. Yes, A, Hi, there, 535 00:23:04,880 --> 00:23:07,000 Speaker 1: you've called the Shoes on the Money Hotline. Do you 536 00:23:07,040 --> 00:23:09,280 Speaker 1: have a money problem you want help solving. Do you 537 00:23:09,280 --> 00:23:11,120 Speaker 1: have a money dilemma you just want to chat about. 538 00:23:11,400 --> 00:23:14,240 Speaker 1: Victoria is here to help. Each week, we'll be playing 539 00:23:14,280 --> 00:23:16,320 Speaker 1: your hotline questions to help make sense of the money 540 00:23:16,320 --> 00:23:18,480 Speaker 1: mess you may have found yourself in. Give us a 541 00:23:18,520 --> 00:23:21,360 Speaker 1: call on four three five, two nine three double eighty 542 00:23:21,400 --> 00:23:29,800 Speaker 1: six and you might find yourself on the show. 543 00:23:32,480 --> 00:23:36,000 Speaker 6: Hi, Victorian Annabelle, I have a question for shoes on 544 00:23:36,080 --> 00:23:41,320 Speaker 6: the money. I am really scared of investing in shares 545 00:23:41,840 --> 00:23:44,159 Speaker 6: because my dad used to do that a lot and 546 00:23:44,160 --> 00:23:46,560 Speaker 6: he lost quite a bit of money. So what is 547 00:23:46,680 --> 00:23:48,600 Speaker 6: to go with them? How do you do them? Are 548 00:23:48,600 --> 00:23:51,480 Speaker 6: they the best way to be investing? I just need 549 00:23:51,520 --> 00:23:53,960 Speaker 6: some help in that whole space. I love the show. 550 00:23:54,119 --> 00:23:55,520 Speaker 6: Thanks bye. 551 00:23:56,200 --> 00:23:58,480 Speaker 1: As a fearful person myself, Victoria, I would like to 552 00:23:58,520 --> 00:23:59,919 Speaker 1: know how would she move through that? 553 00:24:00,680 --> 00:24:04,240 Speaker 4: I think it's really important here to remember that all 554 00:24:04,280 --> 00:24:08,480 Speaker 4: investments carry some level of risk, and potentially having a 555 00:24:08,480 --> 00:24:10,680 Speaker 4: discussion with your dad about the types of shares he 556 00:24:10,760 --> 00:24:14,040 Speaker 4: was invested in, where he got them from, how that worked, 557 00:24:14,160 --> 00:24:17,640 Speaker 4: is going to educate you into knowing what potentially isn't 558 00:24:17,760 --> 00:24:21,200 Speaker 4: isn't a good investment. Also, habitchat with a financial advisor, 559 00:24:21,400 --> 00:24:24,840 Speaker 4: understand why your dad lost money on that to begin with, 560 00:24:25,280 --> 00:24:28,359 Speaker 4: because if you don't know why he lost money originally, 561 00:24:28,720 --> 00:24:31,160 Speaker 4: it won't be something you can look for in the future. 562 00:24:31,480 --> 00:24:35,159 Speaker 4: All investments carry risk. There is the potential of losing money, 563 00:24:35,520 --> 00:24:38,200 Speaker 4: but at the same time, if you're investing in really 564 00:24:38,240 --> 00:24:41,679 Speaker 4: solid conservative investments, that risk is far lower. 565 00:24:41,960 --> 00:24:45,400 Speaker 1: So it's important to do your research and suss out, 566 00:24:45,520 --> 00:24:48,160 Speaker 1: what's risky, what's not. Make your own informed decisions. 567 00:24:48,160 --> 00:24:50,600 Speaker 4: Absolutely, And it goes back to what we're saying before 568 00:24:50,720 --> 00:24:54,720 Speaker 4: about when the GFC hit and share prices plummeted, a 569 00:24:54,760 --> 00:24:57,240 Speaker 4: lot of people got out at that point. And if 570 00:24:57,280 --> 00:24:59,000 Speaker 4: you speak to a lot of people who got out 571 00:24:59,000 --> 00:25:00,800 Speaker 4: at that point, they'll say they lost all of their 572 00:25:00,800 --> 00:25:03,320 Speaker 4: money in shares and that you know, the GFC was 573 00:25:03,359 --> 00:25:05,200 Speaker 4: the worst part of their life. Please don't get me wrong, 574 00:25:05,240 --> 00:25:07,920 Speaker 4: the GFC was awful, but a lot of people got 575 00:25:07,960 --> 00:25:11,000 Speaker 4: out because of their fear rather than because of being 576 00:25:11,119 --> 00:25:13,640 Speaker 4: educated and knowing that they should be writing it out. 577 00:25:14,000 --> 00:25:14,880 Speaker 3: I also have. 578 00:25:14,880 --> 00:25:17,240 Speaker 4: A lot of clients who will tell you that the 579 00:25:17,280 --> 00:25:20,160 Speaker 4: GFC is what made them wealthy as well, because share 580 00:25:20,160 --> 00:25:23,639 Speaker 4: prices plummeted and they purchased shares when they were worth nothing, 581 00:25:23,920 --> 00:25:26,520 Speaker 4: which meant now as they've recovered, they've made quite. 582 00:25:26,359 --> 00:25:27,320 Speaker 1: A sum of money. 583 00:25:27,640 --> 00:25:30,440 Speaker 4: So I think it's really important to understand as much 584 00:25:30,440 --> 00:25:33,520 Speaker 4: as he lost money on shares, how did he lose 585 00:25:33,560 --> 00:25:35,760 Speaker 4: money at what point in the market did he get 586 00:25:35,840 --> 00:25:41,120 Speaker 4: out and how did that work for him? 587 00:25:41,200 --> 00:25:43,960 Speaker 1: And now it's time for the Purby stuff. It's time 588 00:25:43,960 --> 00:25:46,320 Speaker 1: for our weekly money dary, where we ask an Australian 589 00:25:46,359 --> 00:25:49,560 Speaker 1: woman what exactly is in your bank account? Let's do this. 590 00:25:51,119 --> 00:25:53,120 Speaker 1: Today's money Dari is from a thirty three year old 591 00:25:53,119 --> 00:25:55,600 Speaker 1: fitness influencer who says she's got a pretty good handle 592 00:25:55,640 --> 00:25:56,119 Speaker 1: on money. 593 00:25:56,440 --> 00:25:58,439 Speaker 5: I am at a point, I guess now in my 594 00:25:58,480 --> 00:26:00,400 Speaker 5: career where I've been building my business for a few 595 00:26:00,480 --> 00:26:04,520 Speaker 5: years now and I've gone from earning around sixty sixty 596 00:26:04,560 --> 00:26:07,320 Speaker 5: five thousand in a corporate job now to two or 597 00:26:07,359 --> 00:26:08,840 Speaker 5: three times that given the year. 598 00:26:09,440 --> 00:26:10,680 Speaker 1: So I've just gotten to a really. 599 00:26:10,480 --> 00:26:14,040 Speaker 5: Good place where I have a fairly steady income and 600 00:26:14,240 --> 00:26:16,400 Speaker 5: enough money to play with as well as safe. There 601 00:26:16,440 --> 00:26:19,399 Speaker 5: are like pigs and troughs throughout the year, but not 602 00:26:19,520 --> 00:26:21,760 Speaker 5: too many lowls, which is good. But I will sort 603 00:26:21,800 --> 00:26:24,600 Speaker 5: of have a large intake of clients all at once 604 00:26:24,640 --> 00:26:27,200 Speaker 5: where I get a whole bunch of money in within 605 00:26:27,640 --> 00:26:29,320 Speaker 5: a two week period, and that's kind of got to 606 00:26:29,400 --> 00:26:31,879 Speaker 5: last me sometimes for two to three months. So I 607 00:26:31,960 --> 00:26:34,120 Speaker 5: can't just factor that in and put aside as much 608 00:26:34,119 --> 00:26:36,359 Speaker 5: money as I can in those situations to try and 609 00:26:36,359 --> 00:26:38,119 Speaker 5: have a little bit of a nest egg to spread out. 610 00:26:38,320 --> 00:26:40,720 Speaker 1: Okay, so down to the nitty gritty stuff, how much 611 00:26:40,760 --> 00:26:43,000 Speaker 1: does thirty three and comfortable earn as an influencer. 612 00:26:43,200 --> 00:26:44,560 Speaker 5: I have to add it up, but I think my 613 00:26:44,680 --> 00:26:47,800 Speaker 5: last estimate was around one eighty to one eighty five. 614 00:26:47,840 --> 00:26:50,960 Speaker 5: But this is before tax, before super and like expenses, 615 00:26:51,000 --> 00:26:54,240 Speaker 5: so I think after all of that, probably around one hundred. Well, 616 00:26:54,280 --> 00:26:56,760 Speaker 5: I just put twenty thousand into my souper the other day, 617 00:26:56,960 --> 00:26:59,560 Speaker 5: and I just booked a seven week trip to Europe, 618 00:26:59,640 --> 00:27:01,680 Speaker 5: so I I've ducked into that. So it wasn't a 619 00:27:01,800 --> 00:27:04,560 Speaker 5: hundred thousand, and it's now at sixty five thousand or seventy. 620 00:27:04,880 --> 00:27:05,560 Speaker 2: I'm so proud. 621 00:27:05,640 --> 00:27:07,240 Speaker 5: When I got to the hundred thousand, I was like, 622 00:27:07,280 --> 00:27:09,159 Speaker 5: oh my god, this is so I just did not 623 00:27:09,280 --> 00:27:11,640 Speaker 5: ever think that I would be in this position. 624 00:27:12,160 --> 00:27:13,520 Speaker 1: So like it makes me really proud. 625 00:27:13,600 --> 00:27:16,199 Speaker 5: And I didn't come from a super wealthy background like 626 00:27:16,800 --> 00:27:19,200 Speaker 5: my mom had like centling payments, and I have four 627 00:27:19,240 --> 00:27:21,720 Speaker 5: sisters and a brother, so big family to look after 628 00:27:21,840 --> 00:27:24,360 Speaker 5: with a single income family, so we didn't have a lot, 629 00:27:24,400 --> 00:27:26,879 Speaker 5: but we got by. So I just I didn't think 630 00:27:26,920 --> 00:27:28,800 Speaker 5: I would even run my own business, like I was 631 00:27:28,840 --> 00:27:31,720 Speaker 5: never super business minded, and then to be earning as 632 00:27:31,800 --> 00:27:34,439 Speaker 5: much as I do and be so comfortable and you know, 633 00:27:35,320 --> 00:27:37,640 Speaker 5: it makes me really happy that I've worked so hard. 634 00:27:37,400 --> 00:27:39,919 Speaker 1: To get here. So we know how Comfortable gets paid, 635 00:27:39,960 --> 00:27:42,560 Speaker 1: but what exactly happens to that money after it's deposited 636 00:27:42,600 --> 00:27:43,640 Speaker 1: into her account. 637 00:27:43,800 --> 00:27:46,120 Speaker 5: I'm not super structured with it, and that's probably something 638 00:27:46,119 --> 00:27:48,800 Speaker 5: I'd like to work on. Is actually like working out 639 00:27:48,800 --> 00:27:51,119 Speaker 5: the percentage every time I get an income or you know, 640 00:27:51,359 --> 00:27:54,399 Speaker 5: at least once a month and allocating it accordingly. But 641 00:27:54,480 --> 00:27:57,479 Speaker 5: at this point, I pretty much move as much as 642 00:27:57,520 --> 00:28:00,080 Speaker 5: I can to my savings every time I get an influx, 643 00:28:00,440 --> 00:28:02,679 Speaker 5: and I kind of live off the drip feeding. Like 644 00:28:03,640 --> 00:28:05,600 Speaker 5: I have a few clients that are like week to 645 00:28:05,600 --> 00:28:08,840 Speaker 5: week payments, so I'll tend to mostly just live off that, 646 00:28:09,520 --> 00:28:11,399 Speaker 5: which is like, you know, a few hundred dollars a 647 00:28:11,400 --> 00:28:13,640 Speaker 5: week that'll pay you my rent and all my little 648 00:28:13,640 --> 00:28:15,960 Speaker 5: bits and pieces and any big chunks that come in 649 00:28:16,040 --> 00:28:18,640 Speaker 5: will go straight to my savings and I'll either save it, 650 00:28:19,119 --> 00:28:22,000 Speaker 5: put it towards tax, or put it towards like back 651 00:28:22,040 --> 00:28:22,760 Speaker 5: into my business. 652 00:28:23,040 --> 00:28:25,280 Speaker 1: Ah, yes, send time for that question. No one seems 653 00:28:25,280 --> 00:28:29,159 Speaker 1: to know much about does Comfortable invest and if not, why. 654 00:28:28,800 --> 00:28:32,199 Speaker 5: I don't only because I don't have the knowledge. So 655 00:28:32,240 --> 00:28:33,919 Speaker 5: it's definitely something I would like to get into. I 656 00:28:33,920 --> 00:28:36,120 Speaker 5: think now that I'm in a financial position to look 657 00:28:36,119 --> 00:28:39,000 Speaker 5: into it, it's probably something that I should educate myself on. 658 00:28:39,120 --> 00:28:41,240 Speaker 5: But I've just you know, my family didn't really have 659 00:28:41,240 --> 00:28:43,280 Speaker 5: any investments or anything, so I kind of haven't learned. 660 00:28:43,320 --> 00:28:45,920 Speaker 5: I haven't been around that, So it would be something 661 00:28:45,920 --> 00:28:47,760 Speaker 5: I guess to look into, and you know, buy a 662 00:28:47,760 --> 00:28:50,000 Speaker 5: house as well and have some more assets. 663 00:28:50,640 --> 00:28:53,040 Speaker 1: And what about debts. I have no debt. 664 00:28:53,640 --> 00:28:55,520 Speaker 5: I'm really proud to say that actually, And I have 665 00:28:55,560 --> 00:28:58,080 Speaker 5: a phobia of like credit cards, so that's just me. 666 00:28:58,200 --> 00:29:01,160 Speaker 5: But I've just like I always had a thing about trying 667 00:29:01,160 --> 00:29:03,360 Speaker 5: not to spend money that I don't have. I have 668 00:29:03,440 --> 00:29:05,840 Speaker 5: after pay I don't use it unless I've forgotten my 669 00:29:05,880 --> 00:29:08,760 Speaker 5: wallet and I need to pay for something. And I 670 00:29:08,760 --> 00:29:10,920 Speaker 5: mean I didn't go to UNI, so I kind of 671 00:29:11,000 --> 00:29:15,120 Speaker 5: skipped easily on that one. You know, I've had loans before. 672 00:29:15,120 --> 00:29:17,840 Speaker 5: I had a car loan and a few personal loans 673 00:29:17,880 --> 00:29:19,880 Speaker 5: here and there, and you know, I used to borrow 674 00:29:19,880 --> 00:29:22,360 Speaker 5: money from my mom. Like to do my personal training course, 675 00:29:22,400 --> 00:29:24,360 Speaker 5: I had to borrow a few thousand dollars. But I've 676 00:29:24,360 --> 00:29:26,280 Speaker 5: just gotten to the point now where I don't spend 677 00:29:26,280 --> 00:29:29,400 Speaker 5: money if I don't have it, and I'm so blessed 678 00:29:29,400 --> 00:29:31,240 Speaker 5: to be able to do that, though obviously like that's 679 00:29:31,280 --> 00:29:34,800 Speaker 5: not the case for everyone, but I guess, yeah, I've 680 00:29:34,880 --> 00:29:37,040 Speaker 5: got the money to spend if I really want something. 681 00:29:37,120 --> 00:29:39,240 Speaker 5: You know, if I'm traveling, I can kind of just 682 00:29:39,320 --> 00:29:42,080 Speaker 5: plan for that, and I just work for things in advance. 683 00:29:42,400 --> 00:29:44,120 Speaker 5: I'm more of a forward planner, so I'm like, I 684 00:29:44,120 --> 00:29:45,920 Speaker 5: know I want to travel, I'm going to just hustle 685 00:29:45,920 --> 00:29:47,160 Speaker 5: a little bit more to get there. 686 00:29:47,440 --> 00:29:49,800 Speaker 1: So does Comfortable have any good money habits that she's 687 00:29:49,880 --> 00:29:50,640 Speaker 1: especially proud of. 688 00:29:51,320 --> 00:29:54,080 Speaker 5: Don't, probably not having a credit card, although I did 689 00:29:54,120 --> 00:29:57,560 Speaker 5: recently get one just for the Quanta's frequent flight points. 690 00:29:57,560 --> 00:30:00,600 Speaker 5: It has like one hundred thousand free frequent my points. 691 00:30:00,640 --> 00:30:03,280 Speaker 5: I was like, okay, I'll get that, but I literally like, 692 00:30:03,440 --> 00:30:07,280 Speaker 5: I pay that off before the believing comes in. Besides, 693 00:30:07,400 --> 00:30:09,160 Speaker 5: have a phobia of like interest. 694 00:30:08,960 --> 00:30:11,440 Speaker 1: And her worst money habits. 695 00:30:11,080 --> 00:30:14,160 Speaker 5: I think because I'm so comfortable with my money now, 696 00:30:14,200 --> 00:30:16,440 Speaker 5: I don't think enough when I spend money. When it's 697 00:30:16,480 --> 00:30:18,880 Speaker 5: just one hundred dollars here, two hundred dollars there, it 698 00:30:18,920 --> 00:30:21,640 Speaker 5: doesn't really make a big impact on my weekly income. 699 00:30:21,760 --> 00:30:23,600 Speaker 2: So I'm a little bit too frivolous. 700 00:30:23,640 --> 00:30:25,480 Speaker 1: That's something I'd like to rein in, maybe buy less 701 00:30:25,480 --> 00:30:28,680 Speaker 1: active with it. Looks like thirty three and comfortable, seems 702 00:30:28,720 --> 00:30:31,520 Speaker 1: to have it sorted. So what's she actually saving for 703 00:30:31,680 --> 00:30:33,000 Speaker 1: and what's the money sitting there for? 704 00:30:33,240 --> 00:30:34,760 Speaker 5: I really want to buy a house, so I'd like 705 00:30:34,840 --> 00:30:36,960 Speaker 5: to get my savings back up to one hundred before 706 00:30:36,960 --> 00:30:38,880 Speaker 5: I buy a house, So hopefully in the next like 707 00:30:39,280 --> 00:30:42,320 Speaker 5: eighteen months, I can do that, and a lot of 708 00:30:42,360 --> 00:30:44,560 Speaker 5: travel before I buy a house. I'm doing seven weeks 709 00:30:44,560 --> 00:30:46,760 Speaker 5: in Europe soon, so that's costing me a lot a 710 00:30:46,800 --> 00:30:49,040 Speaker 5: lot of money, but it's worth it. 711 00:30:49,320 --> 00:30:51,840 Speaker 1: So how would today's money diarist rate her own relationship 712 00:30:51,880 --> 00:30:54,120 Speaker 1: with money if we force her to give herself a grade? 713 00:30:54,680 --> 00:30:55,880 Speaker 1: Oh that's a tough. 714 00:30:55,640 --> 00:30:57,800 Speaker 2: One, Maybe like a B. 715 00:30:59,120 --> 00:31:03,800 Speaker 5: I mean, I know, I your faces. I own good money, 716 00:31:03,840 --> 00:31:05,440 Speaker 5: but I think I could be smarter with it. 717 00:31:05,480 --> 00:31:06,560 Speaker 1: I definitely could invest. 718 00:31:06,600 --> 00:31:10,160 Speaker 5: I definitely could have more assets and probably not spend 719 00:31:10,200 --> 00:31:14,040 Speaker 5: as if I didn't buy things so flippantly. Imagine the 720 00:31:14,040 --> 00:31:14,880 Speaker 5: savings I would have. 721 00:31:15,880 --> 00:31:17,320 Speaker 1: Am I the only one who wishes that I went 722 00:31:17,320 --> 00:31:18,600 Speaker 1: into influencing as a career. 723 00:31:19,200 --> 00:31:22,160 Speaker 4: No, I sometimes think I do. I actually have a 724 00:31:22,160 --> 00:31:24,920 Speaker 4: fair few clients who work as social media influences, and 725 00:31:25,000 --> 00:31:28,440 Speaker 4: seeing what they do and how they get paid sometimes 726 00:31:28,440 --> 00:31:30,560 Speaker 4: blows my mind. But at the same time, you should 727 00:31:30,560 --> 00:31:32,120 Speaker 4: see the amount of effort they have to put in 728 00:31:32,120 --> 00:31:34,760 Speaker 4: in the background to actually get those things off the ground. 729 00:31:34,600 --> 00:31:37,480 Speaker 1: Right always being on your phone. Thirty three Comfortable said 730 00:31:37,560 --> 00:31:39,720 Speaker 1: that she had no debt and that she had a 731 00:31:39,720 --> 00:31:42,240 Speaker 1: phobia of interest. I think one of the better phobias. 732 00:31:42,400 --> 00:31:44,040 Speaker 1: Did that make you feel warm and fuzzy inside? When 733 00:31:44,080 --> 00:31:45,040 Speaker 1: she said she had no debt? 734 00:31:45,160 --> 00:31:45,640 Speaker 3: It did? 735 00:31:45,840 --> 00:31:48,400 Speaker 4: And I think if everyone in that she's on the 736 00:31:48,400 --> 00:31:51,040 Speaker 4: many community can just start having a phobia of debt, 737 00:31:51,080 --> 00:31:54,240 Speaker 4: that would be absolutely fantastic because we would all be 738 00:31:54,240 --> 00:31:55,080 Speaker 4: better off for it. 739 00:31:55,440 --> 00:31:58,040 Speaker 1: What about things she can improve on? What do you think? 740 00:31:58,120 --> 00:32:00,200 Speaker 4: So again, I think I'm gonna have to go back 741 00:32:00,200 --> 00:32:03,040 Speaker 4: to financial education. So she just needs to increase her 742 00:32:03,080 --> 00:32:06,880 Speaker 4: financial literacy, learn about what investing is, learn about what 743 00:32:06,920 --> 00:32:09,200 Speaker 4: you're doing with super, learn about what you want to 744 00:32:09,200 --> 00:32:11,160 Speaker 4: do with this house you're planning on purchasing. 745 00:32:11,320 --> 00:32:12,480 Speaker 3: I think it's really. 746 00:32:12,200 --> 00:32:15,400 Speaker 4: Inspiring to see that she's putting her super forward and 747 00:32:15,440 --> 00:32:17,360 Speaker 4: she's saying, look, this is a value to me, And 748 00:32:17,400 --> 00:32:19,800 Speaker 4: I've put twenty thousand dollars into my super this year, 749 00:32:20,040 --> 00:32:22,520 Speaker 4: But also why are you putting it in super? 750 00:32:22,680 --> 00:32:22,800 Speaker 1: Like? 751 00:32:22,920 --> 00:32:24,240 Speaker 3: Why was that choice made? 752 00:32:24,520 --> 00:32:28,240 Speaker 4: Superannuation is an investment vehicle, right, so it's exactly the 753 00:32:28,280 --> 00:32:31,440 Speaker 4: same as you investing outside of superannuation. If you went 754 00:32:31,520 --> 00:32:34,080 Speaker 4: and set up an investment portfolio, the money in that 755 00:32:34,160 --> 00:32:37,240 Speaker 4: investment portfolio is invested in exactly the same way it 756 00:32:37,320 --> 00:32:41,760 Speaker 4: is within superannuation. Superannuation is just a tax structure, which 757 00:32:41,800 --> 00:32:44,680 Speaker 4: means that you are paying less tax on that money, 758 00:32:44,840 --> 00:32:48,480 Speaker 4: but it is also locked away until your retirement age. 759 00:32:48,600 --> 00:32:50,560 Speaker 3: So I think as much as it's a really. 760 00:32:50,320 --> 00:32:53,720 Speaker 4: Tax effective vehicle to use for investing and saving for 761 00:32:53,760 --> 00:32:56,440 Speaker 4: the future, it also means you can't touch that money 762 00:32:56,520 --> 00:32:57,400 Speaker 4: until you retire. 763 00:32:57,720 --> 00:33:00,480 Speaker 3: And I think that her prioritizing that is really important. 764 00:33:00,640 --> 00:33:03,479 Speaker 4: But also creating an asset that's going to help her 765 00:33:03,520 --> 00:33:06,560 Speaker 4: for the next forty or fifty years, not in the 766 00:33:06,600 --> 00:33:09,520 Speaker 4: short term, but creating an asset that's going to help 767 00:33:09,520 --> 00:33:11,960 Speaker 4: her get to retirement and give her the freedom of 768 00:33:12,080 --> 00:33:14,920 Speaker 4: choice is really important. So learning a little bit more 769 00:33:14,960 --> 00:33:18,200 Speaker 4: about investment would be really important. Learning about what she 770 00:33:18,280 --> 00:33:20,280 Speaker 4: wants to do with the house she wants to purchase. 771 00:33:20,560 --> 00:33:22,600 Speaker 4: Where is she going to purchase, what does that look like, 772 00:33:22,680 --> 00:33:24,400 Speaker 4: and how is she going to facilitate it? I think 773 00:33:24,440 --> 00:33:26,000 Speaker 4: that would be a really good starting point. 774 00:33:26,160 --> 00:33:28,440 Speaker 1: So do you think her rating of a bee that 775 00:33:28,520 --> 00:33:29,720 Speaker 1: she gave herself was accurate? 776 00:33:29,880 --> 00:33:32,600 Speaker 4: I never want to argue with people's ratings of themselves 777 00:33:32,720 --> 00:33:35,200 Speaker 4: because a B that's a really good score. 778 00:33:35,960 --> 00:33:36,960 Speaker 1: She could put a plus on that. 779 00:33:37,080 --> 00:33:38,320 Speaker 3: She could put a plus on that. 780 00:33:38,480 --> 00:33:40,960 Speaker 4: But I think she also you know, if she feels 781 00:33:40,960 --> 00:33:43,000 Speaker 4: like she's got a lot to learn, then I don't 782 00:33:43,000 --> 00:33:44,760 Speaker 4: want to argue with that. I want to say, all right, 783 00:33:44,840 --> 00:33:47,200 Speaker 4: how do we help you learn what you need to 784 00:33:47,280 --> 00:33:50,200 Speaker 4: learn about investing, about saving, about creating the future you 785 00:33:50,280 --> 00:33:52,440 Speaker 4: want to create, and what does that look like like. 786 00:33:52,480 --> 00:33:55,880 Speaker 4: As much as she's been financially successful thus far, it's 787 00:33:55,920 --> 00:33:59,720 Speaker 4: also really important to reflect on the fact that, you know, 788 00:34:00,240 --> 00:34:03,320 Speaker 4: just because you've been financially successful in the short term, 789 00:34:03,440 --> 00:34:06,080 Speaker 4: how are you going to make yourself financially successful in 790 00:34:06,080 --> 00:34:08,760 Speaker 4: the long term. And that's more about investing in yourself 791 00:34:08,800 --> 00:34:11,080 Speaker 4: and in assets that help you create wealth. 792 00:34:11,440 --> 00:34:13,400 Speaker 1: Right, just keep listening to she's on the Money podcast. 793 00:34:13,400 --> 00:34:15,240 Speaker 1: Hopefully we can help her with her education. 794 00:34:15,520 --> 00:34:16,520 Speaker 3: Coming right at you. 795 00:34:17,040 --> 00:34:19,200 Speaker 1: That's all we have time for today. Just before we 796 00:34:19,239 --> 00:34:21,800 Speaker 1: head off, though, as always, let's quickly wrap the boring 797 00:34:21,840 --> 00:34:24,480 Speaker 1: butt important stuff. The advice shared on She's on the 798 00:34:24,520 --> 00:34:26,799 Speaker 1: Money is general in nature and does not consider your 799 00:34:26,800 --> 00:34:30,320 Speaker 1: individual circumstances. She's on the Money exists purely for educational 800 00:34:30,360 --> 00:34:32,480 Speaker 1: purposes only and should not be relied upon to make 801 00:34:32,480 --> 00:34:36,560 Speaker 1: an investment or a financial decision. And as always, we promise. 802 00:34:36,680 --> 00:34:40,520 Speaker 1: Victoria Divine is an authorized representative of Consultant Financial Advisors 803 00:34:40,520 --> 00:34:44,799 Speaker 1: Proprietary Limited ABN six five double six three seven three 804 00:34:44,840 --> 00:34:47,919 Speaker 1: double nine to five AFSL two three oh three two 805 00:34:47,960 --> 00:34:48,880 Speaker 1: three All right. 806 00:34:49,040 --> 00:34:51,879 Speaker 4: Join our Facebook group, where four thousand women share money 807 00:34:51,960 --> 00:34:55,440 Speaker 4: tips and tricks every single day, free of judgment. Search 808 00:34:55,480 --> 00:34:57,799 Speaker 4: She's on the Money on Facebook and join us. 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