1 00:00:00,200 --> 00:00:02,960 Speaker 1: My name is Tatasha Bamblet. I'm a proud First Nations 2 00:00:03,000 --> 00:00:08,600 Speaker 1: woman and I'm here to acknowledge country t Glenn Young Ganya, Niana, 3 00:00:08,680 --> 00:00:11,920 Speaker 1: Kaka yah y and beIN Ahaka Nian Our gay In Mbini, 4 00:00:11,960 --> 00:00:17,840 Speaker 1: yakarum Jar Dominyamiga Umagahawaka Woman damon Imlan Mbaban Gadabomba in 5 00:00:17,920 --> 00:00:22,439 Speaker 1: and now in wakah Ghana on yak rum Jar water Nadaa. Hello, 6 00:00:22,480 --> 00:00:25,880 Speaker 1: beautiful friends, we gather on the lands of the Aboriginal people. 7 00:00:26,360 --> 00:00:29,080 Speaker 1: We thank acknowledge and respect the Aboriginal people's land that 8 00:00:29,120 --> 00:00:31,880 Speaker 1: we're gathering on today. Take pleasure in all the land 9 00:00:32,080 --> 00:00:35,320 Speaker 1: and respect all that you see. She's on the Money 10 00:00:35,360 --> 00:00:41,960 Speaker 1: podcast acknowledges culture, country, community and connections, bringing you the tools, 11 00:00:42,400 --> 00:00:44,560 Speaker 1: knowledge and resources for you to thrive. 12 00:00:45,080 --> 00:00:47,840 Speaker 2: She's on the Money. She's on the Money. 13 00:01:04,959 --> 00:01:07,840 Speaker 3: Hello and welcome to She's on the Money, the podcast 14 00:01:07,959 --> 00:01:10,199 Speaker 3: that's here to help you get your finances on track 15 00:01:10,360 --> 00:01:13,360 Speaker 3: this year. This is something different we are doing this year, 16 00:01:13,400 --> 00:01:15,640 Speaker 3: and I'm so excited about it because this time of 17 00:01:15,760 --> 00:01:18,680 Speaker 3: year is when motivation is high, You're feeling pretty fresh, 18 00:01:19,040 --> 00:01:21,479 Speaker 3: and you're finally ready to get your finances on track. 19 00:01:21,959 --> 00:01:24,360 Speaker 3: If you listened to the episode yesterday, you'll know we 20 00:01:24,440 --> 00:01:27,960 Speaker 3: are dangerously close to one thousand episodes, which to me 21 00:01:28,240 --> 00:01:32,240 Speaker 3: is absolutely wild, But it also means we've covered a lot, 22 00:01:33,000 --> 00:01:35,640 Speaker 3: and instead of overwhelming you with everything all at once, 23 00:01:36,000 --> 00:01:39,760 Speaker 3: I wanted to put together the true foundations, the first steps, 24 00:01:40,000 --> 00:01:42,320 Speaker 3: the stuff that actually works no matter who you are, 25 00:01:42,440 --> 00:01:45,360 Speaker 3: how much you earn't, or where you're starting from. Because 26 00:01:45,480 --> 00:01:48,760 Speaker 3: here's the thing, the foundations of money, they actually don't 27 00:01:48,800 --> 00:01:52,000 Speaker 3: really change. Trends come and go, apps they come and go, 28 00:01:52,280 --> 00:01:55,360 Speaker 3: and the basics they always always always stay the same. 29 00:01:55,880 --> 00:01:58,760 Speaker 3: And if you get those right, my friend, everything else 30 00:01:58,880 --> 00:02:03,040 Speaker 3: gets easier. So every Saturday in January, I'm going to 31 00:02:03,080 --> 00:02:05,760 Speaker 3: be dropping these as bonus episodes. And I'm starting this 32 00:02:05,880 --> 00:02:08,960 Speaker 3: series with budgeting, not because it's the most exciting topic, 33 00:02:09,000 --> 00:02:11,880 Speaker 3: I'm really sorry, but because to me it is the 34 00:02:12,000 --> 00:02:15,760 Speaker 3: most important. It is the foundation of getting your finances 35 00:02:15,800 --> 00:02:18,960 Speaker 3: in order. To me, getting your budget sorted is step one. 36 00:02:19,160 --> 00:02:21,839 Speaker 3: It's the thing that lets you clearly see your four 37 00:02:21,960 --> 00:02:25,760 Speaker 3: most important numbers, what you earn, what you spend, what 38 00:02:25,919 --> 00:02:29,400 Speaker 3: you own, and what you owe. Without giving yourself that clarity, 39 00:02:29,520 --> 00:02:32,160 Speaker 3: it's very hard to make confident decisions about what am 40 00:02:32,160 --> 00:02:33,720 Speaker 3: I gonna do with savings, what am I gonna do 41 00:02:33,800 --> 00:02:35,679 Speaker 3: with debt? Or like how do we even start my 42 00:02:35,800 --> 00:02:39,160 Speaker 3: investing journey. I also adore this episode because it's one 43 00:02:39,200 --> 00:02:42,240 Speaker 3: from the vault. The ogs are gonna know Miss Georgia King. 44 00:02:42,680 --> 00:02:44,720 Speaker 3: She moved to London, we lost her from the show, 45 00:02:45,240 --> 00:02:48,440 Speaker 3: but this episode is kind of reviving it. It's back 46 00:02:48,480 --> 00:02:50,519 Speaker 3: from when she was on the show, and it's such 47 00:02:50,560 --> 00:02:52,760 Speaker 3: a good reminder that all of this advice to my friends, 48 00:02:52,880 --> 00:02:56,799 Speaker 3: it still holds up. The lessons are timeless. Budgeting is 49 00:02:56,880 --> 00:02:59,960 Speaker 3: not about restriction or punishment. It's about understanding your mind 50 00:03:00,320 --> 00:03:02,400 Speaker 3: so that you can actually use it to build the 51 00:03:02,520 --> 00:03:05,480 Speaker 3: life that you deserve. I've also popped the link to 52 00:03:05,560 --> 00:03:08,280 Speaker 3: our budgeting and debt hub in the show notes, and 53 00:03:08,400 --> 00:03:11,280 Speaker 3: that page has a whole range of free resources we've built, 54 00:03:11,480 --> 00:03:14,200 Speaker 3: including a free budget template to help you take action 55 00:03:14,720 --> 00:03:17,560 Speaker 3: right after listening. My friends, this one was pulled together 56 00:03:17,639 --> 00:03:20,040 Speaker 3: for you. Let's do the summer series and let's get 57 00:03:20,080 --> 00:03:23,200 Speaker 3: on track together. This episode is where that all begins. 58 00:03:23,360 --> 00:03:24,600 Speaker 3: So let's dive straight in. 59 00:03:26,360 --> 00:03:28,919 Speaker 4: So Victoria to kick us off today, let's start with 60 00:03:28,960 --> 00:03:32,079 Speaker 4: the basics. Can you please talk us through what budgeting 61 00:03:32,160 --> 00:03:35,520 Speaker 4: and what cash flow are, including the differences between the two, 62 00:03:35,560 --> 00:03:38,040 Speaker 4: because I didn't know before we kind of started chatting 63 00:03:38,080 --> 00:03:38,920 Speaker 4: about this show today. 64 00:03:39,120 --> 00:03:41,560 Speaker 3: Absolutely I can, and for those if you have done 65 00:03:41,600 --> 00:03:44,240 Speaker 3: an hour of Power with me or someone from my team, 66 00:03:44,400 --> 00:03:47,400 Speaker 3: you know that I am obsessed with budgeting cash flow 67 00:03:47,720 --> 00:03:50,520 Speaker 3: because they are essentially the bread and butter of creating 68 00:03:50,600 --> 00:03:52,960 Speaker 3: financial freedom. If we have a budget and we have 69 00:03:53,080 --> 00:03:55,880 Speaker 3: a cash flow, we're actually able to create wealth. And 70 00:03:56,000 --> 00:03:59,040 Speaker 3: without having that in place, it's kind of like having 71 00:03:59,200 --> 00:04:01,560 Speaker 3: a plan with a map and without knowing where your 72 00:04:01,600 --> 00:04:04,200 Speaker 3: final destination is or where you're actually heading, so you 73 00:04:04,280 --> 00:04:08,200 Speaker 3: could be heading towards camera instead of heading towards you know, Adelaide, 74 00:04:08,200 --> 00:04:10,280 Speaker 3: where you wanted to be. For me, this is the 75 00:04:10,400 --> 00:04:13,080 Speaker 3: thing that I want you guys to understand the most. Like, yes, 76 00:04:13,240 --> 00:04:17,680 Speaker 3: investing is important, Yes saving is important, but without understanding 77 00:04:17,760 --> 00:04:20,520 Speaker 3: what your budget is and what your cash flow looks like, 78 00:04:20,720 --> 00:04:23,159 Speaker 3: you don't know how much you're allocating each and every 79 00:04:23,240 --> 00:04:26,880 Speaker 3: single week or month towards those goals. A cash flow 80 00:04:27,120 --> 00:04:29,599 Speaker 3: and a budget are two different things as well, which 81 00:04:29,600 --> 00:04:31,800 Speaker 3: I think people get a little bit confused about. So 82 00:04:31,920 --> 00:04:34,000 Speaker 3: let's start with budget. I've spoken about it on the 83 00:04:34,040 --> 00:04:37,520 Speaker 3: pod before, but this episode I am honestly so excited 84 00:04:37,600 --> 00:04:40,680 Speaker 3: to talk about budgeting because budgeting is absolutely not what 85 00:04:40,800 --> 00:04:43,440 Speaker 3: a lot of people think it is. So often people say, oh, 86 00:04:43,480 --> 00:04:45,839 Speaker 3: I'm sorry, Victoria, I can't do it. I'm on a budget. 87 00:04:46,320 --> 00:04:49,600 Speaker 3: Like they treat a budget like a restrictive thing. It 88 00:04:49,760 --> 00:04:52,920 Speaker 3: is not a restrictive thing at all. It's actually a 89 00:04:53,080 --> 00:04:56,720 Speaker 3: document that helps you understand your money, what's coming in, 90 00:04:57,080 --> 00:04:59,800 Speaker 3: what's going out, where it's going, how it works, what 91 00:05:00,000 --> 00:05:02,720 Speaker 3: you actually spend your money on, so that you have 92 00:05:02,880 --> 00:05:06,240 Speaker 3: a tool to identify your income and expenses. It's not 93 00:05:06,400 --> 00:05:09,040 Speaker 3: to say, okay, Victoria, I've done a budget and I'm 94 00:05:09,080 --> 00:05:11,880 Speaker 3: only going to be spending fifty dollars on groceries moving forward, 95 00:05:12,240 --> 00:05:15,440 Speaker 3: like that feels restrictive. How about we actually put in 96 00:05:15,520 --> 00:05:18,760 Speaker 3: place a budget that's actually reflective of your spending so 97 00:05:18,920 --> 00:05:21,400 Speaker 3: that you can live the life you want while also 98 00:05:21,480 --> 00:05:24,760 Speaker 3: being really reasonable about how much money you have coming in. 99 00:05:25,160 --> 00:05:27,360 Speaker 3: So Georgia, a budget is going to really help to 100 00:05:27,440 --> 00:05:29,440 Speaker 3: show you if you are spending more or less than 101 00:05:29,480 --> 00:05:32,000 Speaker 3: you can actually afford, and it can help to determine 102 00:05:32,040 --> 00:05:35,160 Speaker 3: your capacity to save for future goals, which obviously I 103 00:05:35,320 --> 00:05:38,800 Speaker 3: am a massive fan of when you have a budget, 104 00:05:38,839 --> 00:05:41,200 Speaker 3: and I'm going to rant about this so much this episode, 105 00:05:41,279 --> 00:05:44,360 Speaker 3: so I do apologize buckling. But when you have a budget, 106 00:05:44,400 --> 00:05:46,520 Speaker 3: you can see where you're spending your money and create 107 00:05:46,680 --> 00:05:49,200 Speaker 3: goals in line with your spending and your cash flow. 108 00:05:49,640 --> 00:05:51,680 Speaker 3: It is so easy to get disheartened if you set 109 00:05:51,720 --> 00:05:55,320 Speaker 3: a goal for yourself that is actually completely unachievable. And 110 00:05:55,480 --> 00:05:57,960 Speaker 3: an example of this is when I hear people saying, 111 00:05:58,120 --> 00:06:00,320 Speaker 3: oh my gosh, Victoria, this year, I am going to 112 00:06:00,400 --> 00:06:04,480 Speaker 3: save ten thousand dollars, and I say, fantastic, that's so exciting, 113 00:06:04,600 --> 00:06:07,040 Speaker 3: really proud of you. Do you have eight hundred and 114 00:06:07,120 --> 00:06:11,080 Speaker 3: thirty three dollars per month to save? They go, no, okay, 115 00:06:11,279 --> 00:06:14,840 Speaker 3: no problems. So how are you planning on achieving that goal? 116 00:06:14,960 --> 00:06:17,520 Speaker 3: If you don't have the money to actually achieve that goal, 117 00:06:17,560 --> 00:06:19,640 Speaker 3: They're like, oh, I'll work it out later. I've been 118 00:06:19,720 --> 00:06:22,160 Speaker 3: saving as much as I possibly can. Like, it is 119 00:06:22,320 --> 00:06:25,080 Speaker 3: good to save as much as you possibly can, but 120 00:06:25,279 --> 00:06:28,120 Speaker 3: if you don't have an outcome that you're working towards, 121 00:06:28,520 --> 00:06:32,159 Speaker 3: with a tangible plan that you've worked backwards from, you're 122 00:06:32,279 --> 00:06:34,480 Speaker 3: not actually going to be able to achieve that goal. 123 00:06:34,800 --> 00:06:37,720 Speaker 3: And what happens when we don't achieve goals. We feel upset, 124 00:06:37,800 --> 00:06:40,719 Speaker 3: we feel flat, we feel as though we aren't achieving things, 125 00:06:40,760 --> 00:06:44,640 Speaker 3: and we get this mentality, which is, oh, I couldn't 126 00:06:44,720 --> 00:06:46,520 Speaker 3: do it. It's not that you can't do it, it's 127 00:06:46,600 --> 00:06:49,520 Speaker 3: that the goal you set yourself was unrealistic for your 128 00:06:49,600 --> 00:06:53,080 Speaker 3: cash flow and your personal situation. And what we actually 129 00:06:53,160 --> 00:06:55,480 Speaker 3: have to do is create goals that are in line 130 00:06:55,560 --> 00:06:59,159 Speaker 3: with your personal situation. You can save ten thousand dollars, 131 00:06:59,200 --> 00:07:02,200 Speaker 3: I promise you, It just might be on a larger timeframe, 132 00:07:02,320 --> 00:07:04,040 Speaker 3: and we need to account for that so that we 133 00:07:04,160 --> 00:07:06,080 Speaker 3: feel like we are actually achieving things. 134 00:07:06,760 --> 00:07:09,240 Speaker 4: I was going to ask you then about how it's 135 00:07:09,320 --> 00:07:12,160 Speaker 4: kind of like a diet, like if it's unsustainable, then 136 00:07:12,200 --> 00:07:14,880 Speaker 4: you're not exactly But with it, is it worth saying. 137 00:07:14,720 --> 00:07:17,160 Speaker 3: That it's exactly like a budget. It's exactly like saying 138 00:07:17,200 --> 00:07:19,240 Speaker 3: one day you wake up and you're like, I'm going vegan. 139 00:07:19,520 --> 00:07:22,120 Speaker 3: Like cool, I'm really excited for you. But is it 140 00:07:22,200 --> 00:07:25,600 Speaker 3: sustainable to go cold turkey on something? Is it sustainable 141 00:07:25,640 --> 00:07:28,360 Speaker 3: to commit to a crash diet? Absolutely not. There is 142 00:07:28,400 --> 00:07:31,360 Speaker 3: a reason people fall off the bandwagon what we need 143 00:07:31,440 --> 00:07:34,760 Speaker 3: to do is actually create goals in line with your lifestyle. 144 00:07:35,160 --> 00:07:38,800 Speaker 3: Create a budget that is actually reflective of what you're spending. 145 00:07:38,960 --> 00:07:40,960 Speaker 3: Don't judge yourself, just put it all down on a 146 00:07:41,000 --> 00:07:43,640 Speaker 3: piece of paper and go awesome, this is what I 147 00:07:43,720 --> 00:07:46,600 Speaker 3: am spending. End of story. It's just what I'm spending. 148 00:07:47,200 --> 00:07:49,880 Speaker 3: And it gives you then ability to reflect and say, well, 149 00:07:49,960 --> 00:07:52,120 Speaker 3: is that actually what I want to spend? Like it 150 00:07:52,280 --> 00:07:54,120 Speaker 3: puts the numbers in front of you so that you 151 00:07:54,240 --> 00:07:56,880 Speaker 3: can take time to consider each of them. Maybe you 152 00:07:57,040 --> 00:07:59,680 Speaker 3: are spending two hundred dollars a week on groceries, but 153 00:07:59,760 --> 00:08:03,400 Speaker 3: you're actually single and live alone. Well, in that case, 154 00:08:03,680 --> 00:08:05,960 Speaker 3: maybe you want to be spending less, so you need 155 00:08:06,040 --> 00:08:08,760 Speaker 3: to have a think about it. Instead of just cutting 156 00:08:08,840 --> 00:08:11,320 Speaker 3: that number in half, maybe have a think of the 157 00:08:11,400 --> 00:08:14,680 Speaker 3: strategy behind that. Why are you spending two hundred dollars 158 00:08:14,720 --> 00:08:17,440 Speaker 3: a week on groceries? Is it because you love really 159 00:08:17,520 --> 00:08:20,640 Speaker 3: fancy food and that's aligned to your values. Well, maybe 160 00:08:20,720 --> 00:08:23,160 Speaker 3: we look to save in other places so you can 161 00:08:23,240 --> 00:08:26,400 Speaker 3: continue the things that you love. Or maybe you are 162 00:08:26,560 --> 00:08:28,440 Speaker 3: just being a little bit lazy. Let's be honest and 163 00:08:28,480 --> 00:08:30,840 Speaker 3: buying takeaway all the time, and that's where your cash 164 00:08:30,880 --> 00:08:32,679 Speaker 3: flow is going and you don't actually want to do that, 165 00:08:32,800 --> 00:08:35,160 Speaker 3: so we have to make a little change. But small 166 00:08:35,320 --> 00:08:38,760 Speaker 3: changes and small steps are still steps in the right direction. 167 00:08:38,920 --> 00:08:41,480 Speaker 3: And I think that when it comes to budgeting, it's 168 00:08:41,760 --> 00:08:43,400 Speaker 3: just so we know where we stand. 169 00:08:43,760 --> 00:08:45,760 Speaker 4: I feel like we'll talk about how to actually create 170 00:08:45,880 --> 00:08:50,640 Speaker 4: a budget in a little while, absolutely amazing. Before we 171 00:08:50,760 --> 00:08:52,400 Speaker 4: get there, can you talk to me a little bit 172 00:08:52,440 --> 00:08:53,920 Speaker 4: about what cash flow means? 173 00:08:54,200 --> 00:08:58,840 Speaker 3: Okay, So cash flow is essentially the next step in budgeting. 174 00:08:59,000 --> 00:09:01,960 Speaker 3: So if we write down how much we are spending 175 00:09:02,080 --> 00:09:04,800 Speaker 3: and how much we are saving, and how much we 176 00:09:05,000 --> 00:09:07,480 Speaker 3: have coming in and out of our account, and if 177 00:09:07,520 --> 00:09:09,920 Speaker 3: you guys have listened to the first episode ever of 178 00:09:10,040 --> 00:09:12,480 Speaker 3: the She's on the Money podcast, I talk about these 179 00:09:12,559 --> 00:09:14,959 Speaker 3: four figures, which is earned, spend own and oh and 180 00:09:15,080 --> 00:09:17,360 Speaker 3: those are the four figures that I always, always, always 181 00:09:17,440 --> 00:09:19,400 Speaker 3: want you to be in control of because if you 182 00:09:19,480 --> 00:09:21,720 Speaker 3: know how much you earn, you know how much you spend, 183 00:09:22,000 --> 00:09:24,000 Speaker 3: you're going to know if you are actually spending in 184 00:09:24,120 --> 00:09:26,199 Speaker 3: line with your income, or if you're spending more or 185 00:09:26,240 --> 00:09:28,520 Speaker 3: if you're spending less, and that will tell you how 186 00:09:28,600 --> 00:09:31,880 Speaker 3: much power you have to save and invest. And then 187 00:09:32,000 --> 00:09:35,640 Speaker 3: your own and your oh these figures obviously, we just 188 00:09:35,720 --> 00:09:38,160 Speaker 3: want to keep track of At different periods in your life, 189 00:09:38,200 --> 00:09:40,480 Speaker 3: you're going to owe different amounts. Like you might get 190 00:09:40,480 --> 00:09:43,240 Speaker 3: a mortgage, so you owe a heap. But I think 191 00:09:43,280 --> 00:09:45,319 Speaker 3: it's important to work out when it comes to that, 192 00:09:45,559 --> 00:09:49,360 Speaker 3: like is that actually productive debt or is it personal 193 00:09:49,440 --> 00:09:52,040 Speaker 3: debt that you need to get out of asap? So 194 00:09:52,200 --> 00:09:55,520 Speaker 3: for me, cash flow is how your money flows through 195 00:09:55,559 --> 00:09:58,240 Speaker 3: your bank accounts. So where does it come into, where 196 00:09:58,280 --> 00:10:01,160 Speaker 3: does it go, how does it work? And how much 197 00:10:01,400 --> 00:10:04,160 Speaker 3: money do you have each and every single month left 198 00:10:04,240 --> 00:10:07,079 Speaker 3: over to create wealth with or to save or to 199 00:10:07,240 --> 00:10:10,199 Speaker 3: put towards debt reduction. So this is going to be 200 00:10:10,880 --> 00:10:12,760 Speaker 3: your power, and this is going to be the thing 201 00:10:12,880 --> 00:10:15,920 Speaker 3: that tells you how you can create wealth and how 202 00:10:16,040 --> 00:10:18,160 Speaker 3: you can get out of debt. But if you don't 203 00:10:18,200 --> 00:10:20,079 Speaker 3: know your cash flow and you don't know how much 204 00:10:20,120 --> 00:10:23,240 Speaker 3: you have left over, it's really hard because it will 205 00:10:23,320 --> 00:10:26,640 Speaker 3: always feel overwhelming. Because too many times do I see 206 00:10:26,640 --> 00:10:28,160 Speaker 3: people who come to me and they're like, bitter out. 207 00:10:28,200 --> 00:10:30,599 Speaker 3: I'm trying really hard to save and I put, you know, 208 00:10:30,760 --> 00:10:34,000 Speaker 3: five hundred dollars every single month into my savings account. 209 00:10:34,080 --> 00:10:35,760 Speaker 3: But then at the end of the month, or when 210 00:10:35,760 --> 00:10:37,520 Speaker 3: the end of the month is coming, I go back 211 00:10:37,559 --> 00:10:39,520 Speaker 3: into my savings and I pull some money out because 212 00:10:39,520 --> 00:10:43,640 Speaker 3: I've got extra expenses. Well, that's obviously not sustainable. You're 213 00:10:43,720 --> 00:10:47,199 Speaker 3: not actually saving five hundred dollars a month. You've allocated 214 00:10:47,400 --> 00:10:49,679 Speaker 3: five hundred dollars to your savings, but you actually have 215 00:10:49,800 --> 00:10:52,160 Speaker 3: expenses that outweigh that. So we actually need to work 216 00:10:52,200 --> 00:10:54,880 Speaker 3: out what is reasonable to save, and cash flow is 217 00:10:54,960 --> 00:10:55,959 Speaker 3: going to tell us that. 218 00:10:56,440 --> 00:10:58,360 Speaker 4: And I feel like you've kind of gone over it. 219 00:10:58,480 --> 00:11:00,679 Speaker 4: But why is it so important that we stay on 220 00:11:00,760 --> 00:11:02,240 Speaker 4: top of our budget and our cash flow? 221 00:11:02,360 --> 00:11:05,199 Speaker 3: Because if we are all creating budgets, we are all 222 00:11:05,320 --> 00:11:07,840 Speaker 3: putting ourselves in a position where we are making our 223 00:11:07,920 --> 00:11:10,640 Speaker 3: money work for us and we can feel in control. 224 00:11:10,760 --> 00:11:12,679 Speaker 3: We can be on top of our money story, we 225 00:11:12,760 --> 00:11:15,280 Speaker 3: can be on top of what's going to happen moving forward, 226 00:11:15,760 --> 00:11:18,160 Speaker 3: and it will help us avoid going into bad debt, 227 00:11:18,360 --> 00:11:20,520 Speaker 3: or if we are already in bad debt, it will 228 00:11:20,600 --> 00:11:23,079 Speaker 3: help us understand our power to get out of that 229 00:11:23,240 --> 00:11:25,440 Speaker 3: bad debt when we can do it, how we can 230 00:11:25,520 --> 00:11:27,240 Speaker 3: do it, and what that actually looks like. 231 00:11:28,080 --> 00:11:30,400 Speaker 4: So, how do we actually set up a budget and 232 00:11:30,480 --> 00:11:31,520 Speaker 4: a cash flow. 233 00:11:31,320 --> 00:11:34,880 Speaker 3: System, so there are so many different ways. I obviously 234 00:11:34,960 --> 00:11:38,199 Speaker 3: have my own way, Georgia, and I'm pretty passionate about it. 235 00:11:38,320 --> 00:11:40,640 Speaker 3: In the She's on the Money Facebook group and I'll 236 00:11:40,679 --> 00:11:43,640 Speaker 3: probably link it below too. We actually have a budget 237 00:11:44,000 --> 00:11:46,160 Speaker 3: that you guys can use to fill in so that 238 00:11:46,280 --> 00:11:50,760 Speaker 3: you understand you're spending, but also excitingly, obviously to plug 239 00:11:50,800 --> 00:11:53,360 Speaker 3: my own product, Georgia. The start of October, we have 240 00:11:53,559 --> 00:11:55,839 Speaker 3: a budgeting and cash flow. She's on the Money course 241 00:11:55,880 --> 00:11:59,120 Speaker 3: coming out, which honestly, I can see you dancing on 242 00:11:59,200 --> 00:12:03,480 Speaker 3: the screen, maybe vocalize this. This is a podcast, no interrupt. 243 00:12:04,880 --> 00:12:07,920 Speaker 3: We've got a course coming out which I'm so excited for. 244 00:12:08,160 --> 00:12:10,959 Speaker 3: I did two full days of filming videos for this. 245 00:12:11,400 --> 00:12:14,360 Speaker 3: I've tried to absolutely jam pack it full of value 246 00:12:14,920 --> 00:12:16,760 Speaker 3: so that when you watch it and when you go 247 00:12:16,920 --> 00:12:20,000 Speaker 3: through it, it's meat holding your hand throughout the entire thing. 248 00:12:20,120 --> 00:12:23,040 Speaker 3: To get your budget done, then get your cash flow done, 249 00:12:23,160 --> 00:12:25,199 Speaker 3: then go through your goals, and then set all of 250 00:12:25,280 --> 00:12:27,640 Speaker 3: those up so that you can achieve success. And honestly, 251 00:12:27,960 --> 00:12:30,920 Speaker 3: I couldn't be more excited about that. But in saying that, 252 00:12:31,440 --> 00:12:33,599 Speaker 3: a budget is what you want to make it so 253 00:12:33,960 --> 00:12:36,000 Speaker 3: it could be on the back of an envelope. I 254 00:12:36,160 --> 00:12:38,520 Speaker 3: really don't mind. It is whatever works for you. Some 255 00:12:38,679 --> 00:12:41,360 Speaker 3: people use apps, some people like to sit down and 256 00:12:41,440 --> 00:12:43,800 Speaker 3: write it in a notebook, some people like to use 257 00:12:43,880 --> 00:12:47,320 Speaker 3: a spreadsheet. There are so many different ways, but essentially, 258 00:12:47,320 --> 00:12:49,800 Speaker 3: a budget is going to include a list of all 259 00:12:49,920 --> 00:12:53,880 Speaker 3: of your expenses broken down, all of your income broken down, 260 00:12:54,120 --> 00:12:57,040 Speaker 3: and then how that weighs out at the end of 261 00:12:57,120 --> 00:13:00,559 Speaker 3: the year. Now I work in my budget to a 262 00:13:00,760 --> 00:13:04,439 Speaker 3: final average annual goal because I feel like that's more 263 00:13:04,520 --> 00:13:08,120 Speaker 3: motivating knowing entirely what you can save in a twelve 264 00:13:08,200 --> 00:13:10,480 Speaker 3: month period, as opposed to, Oh, you can save eight 265 00:13:10,600 --> 00:13:12,720 Speaker 3: hundred and thirty three dollars a month, you go, oh okay, 266 00:13:12,840 --> 00:13:15,400 Speaker 3: like that's not enough to achieve my goal. Whereas if 267 00:13:15,440 --> 00:13:17,319 Speaker 3: I say, Georgia eight hundred and thirty three dollars a 268 00:13:17,400 --> 00:13:20,240 Speaker 3: month is ten thousand dollars in your savings, you are 269 00:13:20,360 --> 00:13:22,400 Speaker 3: more likely to commit to that when you can see 270 00:13:22,440 --> 00:13:25,640 Speaker 3: the bigger goal. So it creates short term motivation and 271 00:13:25,840 --> 00:13:27,280 Speaker 3: long term commitment for me. 272 00:13:27,600 --> 00:13:29,640 Speaker 4: Sorry, B, so you said your course is coming out 273 00:13:29,679 --> 00:13:30,199 Speaker 4: in October. 274 00:13:30,320 --> 00:13:32,319 Speaker 3: Just to recap it is, I mean, we're not meant 275 00:13:32,320 --> 00:13:34,599 Speaker 3: to be plugging this, but I'm actually so excited about it. 276 00:13:34,720 --> 00:13:37,960 Speaker 3: I have spent honestly, probably thirty hours over the last 277 00:13:38,120 --> 00:13:41,000 Speaker 3: three days trying to make the online course system work. 278 00:13:41,080 --> 00:13:44,400 Speaker 3: I promise you it is now stunning, and. 279 00:13:44,520 --> 00:13:45,520 Speaker 4: That is what matters. 280 00:13:46,000 --> 00:13:48,120 Speaker 3: I'm biased, though not at all. 281 00:13:48,800 --> 00:13:50,839 Speaker 4: How would you say, we can use a budgeting and 282 00:13:50,880 --> 00:13:52,800 Speaker 4: cash flow system to help get us out of debt, 283 00:13:53,160 --> 00:13:54,800 Speaker 4: which we know is a huge issue right now. 284 00:13:54,840 --> 00:13:57,360 Speaker 3: Obviously, look, it's a massive issue now, but it's been 285 00:13:57,400 --> 00:14:00,800 Speaker 3: a massive issue for years and years and years. And essentially, 286 00:14:00,880 --> 00:14:03,040 Speaker 3: if you are in debt, stop judging yourself. Like I 287 00:14:03,120 --> 00:14:05,319 Speaker 3: know that that sounds really flippant, but I know that 288 00:14:05,480 --> 00:14:07,600 Speaker 3: debt can carry a lot of stigma, and it can 289 00:14:07,720 --> 00:14:09,880 Speaker 3: carry a lot of guilt, and you feel bad and 290 00:14:09,960 --> 00:14:11,559 Speaker 3: you maybe don't want to tell your friends or a 291 00:14:11,679 --> 00:14:13,880 Speaker 3: family about it. You don't have to do that. But 292 00:14:14,000 --> 00:14:15,480 Speaker 3: the one thing I want you to do if you 293 00:14:15,600 --> 00:14:18,200 Speaker 3: are in debt is stop feeling bad about it, because 294 00:14:18,240 --> 00:14:21,120 Speaker 3: it doesn't help you at all. It does not help 295 00:14:21,200 --> 00:14:24,800 Speaker 3: you in the slightest to feel guilty about this. And Georgia, 296 00:14:24,880 --> 00:14:28,280 Speaker 3: I work literally every week with people in large amounts 297 00:14:28,320 --> 00:14:31,160 Speaker 3: of debt, and we do these cash flow systems and 298 00:14:31,240 --> 00:14:33,720 Speaker 3: we talk about budgeting, and it is honestly the same 299 00:14:33,880 --> 00:14:36,760 Speaker 3: thing every single time we sit down and I say 300 00:14:36,800 --> 00:14:39,200 Speaker 3: why haven't you done this before? Like you know, why now? 301 00:14:39,280 --> 00:14:41,880 Speaker 3: And they just say, feel really overwhelmed. I've never wanted 302 00:14:41,920 --> 00:14:44,440 Speaker 3: to tackle it head on, and now I am, and 303 00:14:44,520 --> 00:14:46,560 Speaker 3: I say, Okay, no problems. And by the end of 304 00:14:46,640 --> 00:14:48,440 Speaker 3: the session, and we have a clear budget and we 305 00:14:48,560 --> 00:14:50,360 Speaker 3: have a clear cash flow, and we have a plan 306 00:14:50,520 --> 00:14:53,720 Speaker 3: and we can articulate, Okay, Georgia, by the end of 307 00:14:53,800 --> 00:14:56,560 Speaker 3: twenty twenty one, that person is going to be out 308 00:14:56,600 --> 00:14:58,640 Speaker 3: of debt. She will make her final payment at the 309 00:14:58,720 --> 00:15:00,960 Speaker 3: start of November twenty ti twenty one, and that will 310 00:15:01,000 --> 00:15:03,960 Speaker 3: be it. That is so motivating, and that clarity is 311 00:15:04,040 --> 00:15:07,600 Speaker 3: going to help you immensely, both obviously and getting out 312 00:15:07,600 --> 00:15:10,080 Speaker 3: of debt, but also mentally, and to me that is 313 00:15:10,440 --> 00:15:14,760 Speaker 3: so so important. So for me, budgeting in cashlow one 314 00:15:14,880 --> 00:15:16,960 Speaker 3: helps you get out of debt because we can work 315 00:15:17,000 --> 00:15:19,680 Speaker 3: out your power and we can actually go all right, cool, 316 00:15:19,720 --> 00:15:21,800 Speaker 3: if you pulled the reins in a little bit on 317 00:15:21,920 --> 00:15:24,000 Speaker 3: this spending for the next six months, will be out 318 00:15:24,000 --> 00:15:26,800 Speaker 3: of debt quicker. And the same goes for every type 319 00:15:26,840 --> 00:15:30,040 Speaker 3: of debt. Right Georgia, like it could be your mortgage 320 00:15:30,320 --> 00:15:33,040 Speaker 3: and working out how to get out of debt with that, 321 00:15:33,600 --> 00:15:36,160 Speaker 3: because you know, obviously your mortgage is often a thirty 322 00:15:36,280 --> 00:15:39,280 Speaker 3: year plan, but working out what your repayments look like 323 00:15:39,640 --> 00:15:42,440 Speaker 3: and maybe working out how much additional you can contribute 324 00:15:42,440 --> 00:15:45,560 Speaker 3: to that each month, maybe wipe literally years off your 325 00:15:45,600 --> 00:15:48,000 Speaker 3: mortgage though that you're out of debt sooner and that 326 00:15:48,240 --> 00:15:51,160 Speaker 3: money can be used to create wealth. And I think 327 00:15:51,200 --> 00:15:53,160 Speaker 3: I said this to you, Georgia, when we're planning the 328 00:15:53,240 --> 00:15:55,920 Speaker 3: episode and talking about the things that I really wanted 329 00:15:55,960 --> 00:15:58,840 Speaker 3: to share on this app. I really wanted to point 330 00:15:58,880 --> 00:16:01,000 Speaker 3: out that if you're in debt and you're paying off 331 00:16:01,080 --> 00:16:04,560 Speaker 3: that debt, that is so exciting, one because you're getting 332 00:16:04,560 --> 00:16:07,560 Speaker 3: out of debt, but two because you're creating these positive 333 00:16:07,680 --> 00:16:10,760 Speaker 3: habits for yourself. You are putting yourself in a position 334 00:16:11,120 --> 00:16:13,840 Speaker 3: where you are proving to yourself that each and every 335 00:16:13,920 --> 00:16:16,720 Speaker 3: single month you can contribute a certain amount to that 336 00:16:16,880 --> 00:16:19,160 Speaker 3: debt and you know what, when it's done, and when 337 00:16:19,200 --> 00:16:21,640 Speaker 3: the debt is over, you then have that amount of 338 00:16:21,720 --> 00:16:24,520 Speaker 3: money to create wealth. So back to our ten thousand 339 00:16:24,560 --> 00:16:27,000 Speaker 3: dollar example, if you're in ten thousand dollars worth of 340 00:16:27,120 --> 00:16:29,320 Speaker 3: debt and you're paying it off at eight hundred and 341 00:16:29,360 --> 00:16:32,280 Speaker 3: thirty three dollars a month, continue that the year after, 342 00:16:32,440 --> 00:16:35,120 Speaker 3: and you now have ten thousand dollars worth of savings 343 00:16:35,280 --> 00:16:37,760 Speaker 3: or ten thousand dollars in an investment. And to me, 344 00:16:38,000 --> 00:16:40,800 Speaker 3: that's so exciting. So for me, look at your getting 345 00:16:40,840 --> 00:16:43,440 Speaker 3: out of debt process as a process that you are 346 00:16:43,560 --> 00:16:46,320 Speaker 3: proving to yourself that you can create wealth. It's like 347 00:16:46,440 --> 00:16:49,040 Speaker 3: the trial run, it's like the practice. It's saying, Okay, 348 00:16:49,120 --> 00:16:51,600 Speaker 3: well I did that, why can't I create wealth after this? 349 00:16:51,920 --> 00:16:54,000 Speaker 3: I don't have to be in debt anymore. This doesn't 350 00:16:54,040 --> 00:16:55,920 Speaker 3: have to be a cycle for me. And it's an 351 00:16:55,960 --> 00:16:58,760 Speaker 3: active choice to essentially not put your heads in the 352 00:16:58,880 --> 00:17:02,080 Speaker 3: sand about it instead feel really empowered about it. 353 00:17:02,480 --> 00:17:05,080 Speaker 4: As you said, there's a lot of shame that comes 354 00:17:05,160 --> 00:17:07,080 Speaker 4: with having debt, I think, and we just need to 355 00:17:07,119 --> 00:17:09,720 Speaker 4: get rid of that shame so you can face it head. 356 00:17:09,560 --> 00:17:12,080 Speaker 3: On, right, Absolutely, Georgia. And there's only one thing that 357 00:17:12,200 --> 00:17:14,720 Speaker 3: personal debt means, and that just means that you've spent 358 00:17:14,800 --> 00:17:16,760 Speaker 3: more than you've that's it. It doesn't make you a 359 00:17:16,840 --> 00:17:18,879 Speaker 3: bad person, it doesn't make you silly, it doesn't make 360 00:17:18,920 --> 00:17:21,000 Speaker 3: you dumb. It doesn't mean that you are less than 361 00:17:21,119 --> 00:17:23,720 Speaker 3: and which I hear all the time, it literally just 362 00:17:23,880 --> 00:17:27,240 Speaker 3: means you have spent more than you have earned, and 363 00:17:27,359 --> 00:17:29,000 Speaker 3: now we just need to rectify that. We need to 364 00:17:29,040 --> 00:17:32,480 Speaker 3: pay back that surplus that you've overspent by and then 365 00:17:32,600 --> 00:17:34,359 Speaker 3: we can create wealth and we can actually have a 366 00:17:34,400 --> 00:17:36,359 Speaker 3: budget and cash flow system that puts us in a 367 00:17:36,440 --> 00:17:38,879 Speaker 3: place of power so that we feel like we can 368 00:17:38,960 --> 00:17:42,320 Speaker 3: achieve everything because we actually are able to achieve everything 369 00:17:42,400 --> 00:17:43,320 Speaker 3: we set our minds to. 370 00:17:44,560 --> 00:17:46,439 Speaker 4: And just because you're in twenty K of debt now, 371 00:17:46,480 --> 00:17:48,240 Speaker 4: it doesn't mean you will be forever. Like there's so 372 00:17:48,320 --> 00:17:50,280 Speaker 4: many things we can do to get you out of 373 00:17:50,359 --> 00:17:53,560 Speaker 4: that debt, which leads me to my next question, Victoria, Yes, 374 00:17:54,160 --> 00:17:57,640 Speaker 4: we know the snowball and the avalanche theories from old 375 00:17:58,040 --> 00:18:01,399 Speaker 4: Dave Ramsey. Yes, what the methods are there that we 376 00:18:01,520 --> 00:18:03,560 Speaker 4: can use to get out of debt? What little hacks? 377 00:18:03,640 --> 00:18:07,040 Speaker 3: So there are a fair few other little hacks. Obviously, 378 00:18:07,200 --> 00:18:09,639 Speaker 3: making sure that you're looking at your debt, having a 379 00:18:09,720 --> 00:18:12,639 Speaker 3: look at whether your interest rate is too high. If 380 00:18:12,680 --> 00:18:14,760 Speaker 3: you're in a massive amount of credit card debt, I 381 00:18:14,800 --> 00:18:17,479 Speaker 3: would genuinely be having a look at whether you need 382 00:18:17,600 --> 00:18:20,879 Speaker 3: to consolidate your debt into a personal loan, because it 383 00:18:20,960 --> 00:18:23,240 Speaker 3: could take you a really long time to get out 384 00:18:23,320 --> 00:18:25,240 Speaker 3: of that. And if you're going to be in debt 385 00:18:25,320 --> 00:18:27,639 Speaker 3: for a couple of more years getting out of, you know, 386 00:18:27,800 --> 00:18:29,919 Speaker 3: a credit card debt, then I would be looking at 387 00:18:29,960 --> 00:18:33,640 Speaker 3: consolidating it into a personal loan, which will most likely 388 00:18:33,760 --> 00:18:36,560 Speaker 3: have a lower interest. Right, But that's not available for 389 00:18:36,640 --> 00:18:39,760 Speaker 3: everybody because some debts can't be consolidated because they just 390 00:18:39,760 --> 00:18:41,720 Speaker 3: are simply too much and you just need to buckle 391 00:18:41,800 --> 00:18:44,360 Speaker 3: down and get it done. Something that I do see 392 00:18:44,400 --> 00:18:46,679 Speaker 3: a lot of people doing is getting a side hustle 393 00:18:46,880 --> 00:18:49,880 Speaker 3: or earning a little more to supplement your primary income. 394 00:18:50,240 --> 00:18:52,600 Speaker 3: It could be an extra shift at work. It could be, 395 00:18:52,840 --> 00:18:55,680 Speaker 3: you know, an online survey that you're doing. It could 396 00:18:55,760 --> 00:18:58,520 Speaker 3: be you know, obviously during COVID, this isn't as good. 397 00:18:58,560 --> 00:19:01,159 Speaker 3: I've got clients who went and got Uber and started 398 00:19:01,200 --> 00:19:04,040 Speaker 3: being Uber drivers so that they could smash down their debt. 399 00:19:04,280 --> 00:19:07,479 Speaker 3: Because any additional income that you are bringing in can 400 00:19:07,560 --> 00:19:10,040 Speaker 3: go straight to debt because it's not your primary income, 401 00:19:10,080 --> 00:19:12,520 Speaker 3: which is super exciting. So if you know you're bringing 402 00:19:12,600 --> 00:19:16,000 Speaker 3: in extra one hundred dollars each time you do something Also, 403 00:19:16,119 --> 00:19:18,720 Speaker 3: that's one hundred dollars off your debt, and that's really exciting. 404 00:19:19,320 --> 00:19:22,399 Speaker 3: I think that spending less and making compromises in another 405 00:19:22,480 --> 00:19:24,960 Speaker 3: way is also a really good but really obvious one. 406 00:19:25,359 --> 00:19:28,439 Speaker 3: These could be temporary changes so that you can get 407 00:19:28,520 --> 00:19:30,840 Speaker 3: out of debt quicker. If you've got a sixty five 408 00:19:30,920 --> 00:19:33,400 Speaker 3: dollars a week gym membership but you're trying to get 409 00:19:33,440 --> 00:19:36,080 Speaker 3: out of debt, maybe you could suspend it until you're 410 00:19:36,160 --> 00:19:38,119 Speaker 3: out of debt so that you can really make the 411 00:19:38,240 --> 00:19:41,280 Speaker 3: most of your cash flow and really allocate it towards that, 412 00:19:41,640 --> 00:19:43,320 Speaker 3: and then once you're out of debt, go back to 413 00:19:43,400 --> 00:19:46,080 Speaker 3: the things that you love. I think that it's important 414 00:19:46,119 --> 00:19:49,560 Speaker 3: to remember that compromise doesn't have to be forever. It 415 00:19:49,680 --> 00:19:51,959 Speaker 3: can be for a short period of time. We can 416 00:19:52,040 --> 00:19:55,200 Speaker 3: compromise something for the short term, like not having Netflix 417 00:19:55,320 --> 00:19:58,119 Speaker 3: and Stand so that we can allocate those funds to 418 00:19:58,240 --> 00:20:00,400 Speaker 3: something different. And I think that that it's a really 419 00:20:00,400 --> 00:20:02,959 Speaker 3: good point for this point in time as well, Georgia. 420 00:20:03,359 --> 00:20:06,840 Speaker 3: So it's more about saying, Okay, cool, we're all going 421 00:20:06,920 --> 00:20:10,720 Speaker 3: through this absolute mess of COVID and we're not sure 422 00:20:10,760 --> 00:20:13,920 Speaker 3: what's going on with our finances. What can we compromise 423 00:20:14,000 --> 00:20:16,240 Speaker 3: in the short term so that we can be successful 424 00:20:16,280 --> 00:20:18,560 Speaker 3: in the long term and maybe breathe a little bit easier. 425 00:20:18,760 --> 00:20:20,760 Speaker 3: Maybe you don't need Netflix and Stand. Maybe you don't 426 00:20:20,800 --> 00:20:23,480 Speaker 3: need your Spotify account. Maybe you've got some subscriptions that 427 00:20:23,560 --> 00:20:26,720 Speaker 3: you can just spend temporarily so that you can increase 428 00:20:26,760 --> 00:20:29,320 Speaker 3: your cash flow during a time where money is tight, 429 00:20:29,720 --> 00:20:31,480 Speaker 3: and we can go back to it later. So it's 430 00:20:31,520 --> 00:20:33,200 Speaker 3: not saying get rid of it you don't need it, 431 00:20:33,400 --> 00:20:36,400 Speaker 3: saying okay, well, maybe not right now. And another good 432 00:20:36,440 --> 00:20:38,800 Speaker 3: one is to make the most of amazing apps out there. 433 00:20:39,640 --> 00:20:41,600 Speaker 3: And I know that this is a sponsored episode, but 434 00:20:41,680 --> 00:20:44,240 Speaker 3: I kid you not when I say that my favorite 435 00:20:44,240 --> 00:20:47,119 Speaker 3: app at the moment is an app called Wiser. And 436 00:20:47,240 --> 00:20:49,000 Speaker 3: I know that not a heap of people are going 437 00:20:49,040 --> 00:20:51,320 Speaker 3: to have heard of this before, but I do know 438 00:20:51,440 --> 00:20:53,680 Speaker 3: that there are a fair few people in our community 439 00:20:53,840 --> 00:20:56,840 Speaker 3: using it. And if you guys love roundup apps like 440 00:20:56,920 --> 00:21:00,199 Speaker 3: I obviously do. I use Raise, I also use shop back, 441 00:21:00,240 --> 00:21:03,280 Speaker 3: and you've heard me talk about these guys before. Wiser 442 00:21:03,840 --> 00:21:06,159 Speaker 3: is exactly like those. It is a roundup app that 443 00:21:06,280 --> 00:21:09,160 Speaker 3: takes your spare change and actually puts it towards paying 444 00:21:09,200 --> 00:21:11,960 Speaker 3: off your debt, Like, how good is that? I can't 445 00:21:12,040 --> 00:21:14,200 Speaker 3: think of a better use for a roundup app for 446 00:21:14,359 --> 00:21:17,840 Speaker 3: people in debt, Like every single transaction that you have 447 00:21:18,320 --> 00:21:20,280 Speaker 3: is contributing to you paying down debt. 448 00:21:20,359 --> 00:21:20,479 Speaker 4: Now. 449 00:21:20,520 --> 00:21:22,399 Speaker 3: I don't mean to say go and transact more so 450 00:21:22,480 --> 00:21:24,200 Speaker 3: that you can put more money towards your debt, but 451 00:21:24,240 --> 00:21:27,600 Speaker 3: I just think it's cool that your everyday expenses and 452 00:21:27,840 --> 00:21:30,800 Speaker 3: your roundups and buying dinner will mean that you actually 453 00:21:30,880 --> 00:21:33,200 Speaker 3: save money. But we're obviously going to have a plug 454 00:21:33,240 --> 00:21:36,960 Speaker 3: about them later. But honestly, there are apps out there. 455 00:21:37,240 --> 00:21:39,960 Speaker 3: You can use budgeting apps, you can use cash flow apps, 456 00:21:40,040 --> 00:21:43,359 Speaker 3: and then apps like Wiser. Honestly, if you start looking, 457 00:21:43,520 --> 00:21:45,640 Speaker 3: you'll find things that actually help you in a really 458 00:21:45,680 --> 00:21:47,440 Speaker 3: constructive but really motivating way. 459 00:21:47,640 --> 00:21:50,840 Speaker 4: Okay, well, obviously you're a fan of Wiser. But if 460 00:21:50,880 --> 00:21:53,160 Speaker 4: our listeners had to take it just one thing away 461 00:21:53,240 --> 00:21:55,080 Speaker 4: from today's show, what do you think it would be. 462 00:21:55,400 --> 00:21:58,040 Speaker 3: Obviously, budgeting in cash flow is really important. I want 463 00:21:58,080 --> 00:22:00,200 Speaker 3: every single one of you to have a budget and 464 00:22:00,400 --> 00:22:02,880 Speaker 3: have a cash flow plan. But I think the one 465 00:22:02,960 --> 00:22:04,560 Speaker 3: thing that I want people to get out of this 466 00:22:04,720 --> 00:22:07,800 Speaker 3: episode is that if you're in debt, stop beating yourself. 467 00:22:07,880 --> 00:22:10,320 Speaker 3: Up about it and work out what you can do 468 00:22:10,480 --> 00:22:14,159 Speaker 3: about it. There are so many resources and plans and 469 00:22:14,359 --> 00:22:17,800 Speaker 3: budgets and apps and things out there, and people that 470 00:22:18,040 --> 00:22:20,760 Speaker 3: actually help you and that are there and that are 471 00:22:20,880 --> 00:22:22,960 Speaker 3: on your team, that are going to get you out 472 00:22:23,000 --> 00:22:25,840 Speaker 3: of this position. You don't actually have to do it alone. 473 00:22:26,160 --> 00:22:28,199 Speaker 3: So for me, it would be one have a budget 474 00:22:28,320 --> 00:22:31,480 Speaker 3: and actually take charge of that. You'll feel incredibly empowered, 475 00:22:31,560 --> 00:22:34,320 Speaker 3: I promise. But then too, know that if you are 476 00:22:34,480 --> 00:22:36,439 Speaker 3: in a situation where you are in debt, there are 477 00:22:36,480 --> 00:22:38,560 Speaker 3: people that can help you, and there are people that 478 00:22:38,720 --> 00:22:41,760 Speaker 3: are genuinely so excited about doing that, and they're not 479 00:22:41,800 --> 00:22:43,800 Speaker 3: there to judge you. They're just there to get you 480 00:22:43,880 --> 00:22:46,240 Speaker 3: in a better position because they get a whole heap 481 00:22:46,280 --> 00:22:48,159 Speaker 3: of gratification out of that, I promise. 482 00:22:52,480 --> 00:22:52,560 Speaker 2: Hi. 483 00:22:52,720 --> 00:22:55,280 Speaker 4: There, you've reached the years on the Money Mailbox. Do 484 00:22:55,359 --> 00:22:57,240 Speaker 4: you have a money problem you want help solving. Do 485 00:22:57,280 --> 00:22:59,520 Speaker 4: you have a money dilemma you just want to chat about? 486 00:23:00,040 --> 00:23:02,840 Speaker 4: Vitoria is here to help. Every week we'll be playing 487 00:23:02,880 --> 00:23:05,000 Speaker 4: your questions to help make sense of a money mess 488 00:23:05,040 --> 00:23:07,280 Speaker 4: you may have found yourself in. Make a quick recording 489 00:23:07,320 --> 00:23:09,399 Speaker 4: on your phone and send it through to podcasts and 490 00:23:09,520 --> 00:23:11,119 Speaker 4: she is on the Money dot com dot au and 491 00:23:11,200 --> 00:23:13,560 Speaker 4: you might even find yourself on the show. But for now, 492 00:23:13,760 --> 00:23:15,000 Speaker 4: here's today's listener question. 493 00:23:15,880 --> 00:23:20,040 Speaker 5: Hello, lovely ladies, I just have a quick one for you. So, 494 00:23:20,720 --> 00:23:23,160 Speaker 5: I've been lucky enough to get a promotion at work 495 00:23:23,400 --> 00:23:26,399 Speaker 5: and we'll be earning twenty five thousand dollars more than 496 00:23:26,480 --> 00:23:30,560 Speaker 5: I was in my previous role, which is I pretty exciting. 497 00:23:30,840 --> 00:23:34,280 Speaker 5: But I'm actually pretty conscious of not falling into the 498 00:23:34,359 --> 00:23:38,640 Speaker 5: habits of lifestyle creep because since listening to the podcast 499 00:23:38,840 --> 00:23:41,520 Speaker 5: and joining me she's on the Money Facebook group, I've 500 00:23:41,600 --> 00:23:44,600 Speaker 5: become really conscious of my spending and I've been getting 501 00:23:44,600 --> 00:23:48,560 Speaker 5: my savings together and taking control of my finances. So 502 00:23:48,960 --> 00:23:51,359 Speaker 5: I'm just wondering if you have any i don't know, 503 00:23:51,480 --> 00:23:54,280 Speaker 5: budgeting tips or even words of wisdom to kind of 504 00:23:54,400 --> 00:23:56,440 Speaker 5: help me make the most of this extra money and 505 00:23:56,520 --> 00:23:59,359 Speaker 5: manage it, because I definitely don't want to be wasting it. 506 00:24:00,440 --> 00:24:00,720 Speaker 3: Thanks. 507 00:24:01,200 --> 00:24:05,280 Speaker 4: Hey, Okay, Victoria, So how does she avoid falling victim 508 00:24:05,320 --> 00:24:06,080 Speaker 4: to lifestyle group? 509 00:24:06,760 --> 00:24:10,440 Speaker 3: I really like this question because I get so excited. Obviously, 510 00:24:10,560 --> 00:24:14,840 Speaker 3: that's a massive increase in her salary, Like, congratulations, that's honestly, 511 00:24:14,920 --> 00:24:19,280 Speaker 3: it's so incredible. Exactly like actually amazing. But I feel 512 00:24:19,400 --> 00:24:21,720 Speaker 3: like this is such a common one and it's so 513 00:24:22,119 --> 00:24:25,440 Speaker 3: easy to see that twenty five thousand dollars as all right, cool, 514 00:24:25,520 --> 00:24:27,040 Speaker 3: I can get a new car, I can do this, 515 00:24:27,280 --> 00:24:30,480 Speaker 3: I can do that for me. The important thing is 516 00:24:30,680 --> 00:24:33,800 Speaker 3: before you even get a promotion, before you even increase 517 00:24:33,880 --> 00:24:35,960 Speaker 3: the amount of money that you have, is to have 518 00:24:36,080 --> 00:24:38,480 Speaker 3: a reasonable budget and cash flow planning place. And I 519 00:24:38,560 --> 00:24:40,199 Speaker 3: know that I jump up and down about this all 520 00:24:40,240 --> 00:24:43,000 Speaker 3: the time, but that is your power. Because if you've 521 00:24:43,000 --> 00:24:45,719 Speaker 3: got your cash flow plan and you know that your 522 00:24:45,800 --> 00:24:49,040 Speaker 3: expenses are you know, maybe sixteen thousand dollars a year, 523 00:24:49,080 --> 00:24:51,240 Speaker 3: and in your personal spending, you're spending you know, maybe 524 00:24:51,280 --> 00:24:53,920 Speaker 3: like two hundred and fifty dollars a week, I think 525 00:24:54,000 --> 00:24:57,000 Speaker 3: it's really important to then say, okay, no problems. Now 526 00:24:57,040 --> 00:24:59,399 Speaker 3: I have an additional twenty five thousand dollars coming in, 527 00:25:00,160 --> 00:25:02,920 Speaker 3: maybe not obviously tax, super whatever else, but let's just 528 00:25:02,960 --> 00:25:06,320 Speaker 3: say it's twenty five thousand coming in. Awesome. How am 529 00:25:06,359 --> 00:25:09,439 Speaker 3: I going to allocate that to my pre existing goals? 530 00:25:09,800 --> 00:25:12,600 Speaker 3: To turbocharge them? If that makes sense? So instead of 531 00:25:12,960 --> 00:25:15,280 Speaker 3: you know, achieving that goal in three years, maybe you'll 532 00:25:15,320 --> 00:25:17,720 Speaker 3: achieve it in one because you've obviously got so much 533 00:25:17,840 --> 00:25:20,960 Speaker 3: more to save. So for me, it's important to have 534 00:25:21,040 --> 00:25:23,280 Speaker 3: a list of goals. It's important to have a cash 535 00:25:23,280 --> 00:25:26,440 Speaker 3: flow and budgeting system that works for you. As I said, 536 00:25:26,480 --> 00:25:28,360 Speaker 3: I don't care how you do it, as long as 537 00:25:28,440 --> 00:25:30,960 Speaker 3: you are doing it, so that when a new amount 538 00:25:31,040 --> 00:25:33,840 Speaker 3: of money actually comes into your account, you've already got goals. 539 00:25:33,880 --> 00:25:35,879 Speaker 3: It can be allocated too, and all you do is 540 00:25:35,960 --> 00:25:38,760 Speaker 3: update how much you're allocating towards that goal each month, 541 00:25:38,800 --> 00:25:42,240 Speaker 3: a week or fortnite or however often you're contributing. So 542 00:25:42,680 --> 00:25:46,280 Speaker 3: for me, my biggest tip would actually be sit down 543 00:25:46,359 --> 00:25:48,359 Speaker 3: and make a budget, make a plan, work out how 544 00:25:48,400 --> 00:25:51,000 Speaker 3: much you want to save, because otherwise it does get 545 00:25:51,040 --> 00:25:53,960 Speaker 3: wasted because it is so easy with lifestyle creep to 546 00:25:54,040 --> 00:25:56,040 Speaker 3: just see that money come straight in and go straight 547 00:25:56,080 --> 00:25:59,120 Speaker 3: back out, because often you'll have a mentality of Okay, 548 00:25:59,160 --> 00:26:01,280 Speaker 3: well I'm going to treat my I'm going to you know, 549 00:26:01,480 --> 00:26:03,520 Speaker 3: buy those new shoes. I'm going to go out for 550 00:26:03,680 --> 00:26:05,040 Speaker 3: lunch more often I can afford it. 551 00:26:05,119 --> 00:26:05,880 Speaker 2: I earn more money. 552 00:26:06,000 --> 00:26:09,880 Speaker 3: Now. To me, that's a detrimental mindset when in reality, 553 00:26:10,000 --> 00:26:12,679 Speaker 3: what we want them to be doing is actually allocating 554 00:26:12,760 --> 00:26:16,640 Speaker 3: those funds towards goals and towards creating wealth, and whether 555 00:26:16,760 --> 00:26:19,560 Speaker 3: that's savings or investments, or you know, maybe you've got 556 00:26:19,600 --> 00:26:22,000 Speaker 3: a trip that you've been planning for that you can 557 00:26:22,119 --> 00:26:24,120 Speaker 3: now save more too, so that when you come home, 558 00:26:24,200 --> 00:26:27,000 Speaker 3: you've got a surplus. Like to me, what can you 559 00:26:27,160 --> 00:26:30,640 Speaker 3: actually contribute that to and divide that twenty five grand 560 00:26:30,760 --> 00:26:33,080 Speaker 3: by twelve months, work out how much that is per 561 00:26:33,200 --> 00:26:35,520 Speaker 3: month so that you're not missing any of it, and 562 00:26:35,600 --> 00:26:37,679 Speaker 3: then make sure that amount is going into an account 563 00:26:37,760 --> 00:26:40,879 Speaker 3: that helps you build wealth instead of losing it. 564 00:26:41,320 --> 00:26:43,960 Speaker 4: Do you think a financial advisor is necessary for this 565 00:26:44,080 --> 00:26:46,480 Speaker 4: situation or just kind of depends on how she's feeling. 566 00:26:46,880 --> 00:26:50,320 Speaker 3: Absolutely not. I think that budgeting in cashlow is something 567 00:26:50,400 --> 00:26:52,840 Speaker 3: that you guys can take control of yourself. You don't 568 00:26:52,880 --> 00:26:55,680 Speaker 3: need a financial advisor to do that for you. Obviously, 569 00:26:55,840 --> 00:26:58,560 Speaker 3: there are financial advisors that will do it. Obviously I 570 00:26:58,640 --> 00:27:00,840 Speaker 3: work with my clients to do that, and there are 571 00:27:00,880 --> 00:27:04,360 Speaker 3: money coaches out there. But I genuinely feel like if 572 00:27:04,400 --> 00:27:06,480 Speaker 3: you have the tools in front of you and you 573 00:27:06,640 --> 00:27:08,920 Speaker 3: have been given the guidance to do that, and Georgia, 574 00:27:08,960 --> 00:27:11,400 Speaker 3: that's actually why I've created the course that I've created. 575 00:27:12,040 --> 00:27:15,159 Speaker 3: It's purely because you can actually go and do it 576 00:27:15,280 --> 00:27:17,600 Speaker 3: yourself and go through the framework and go through a 577 00:27:17,720 --> 00:27:20,480 Speaker 3: PDF and go through you know, just different tools that 578 00:27:20,640 --> 00:27:22,880 Speaker 3: you can do to one work out your goals, work 579 00:27:22,920 --> 00:27:25,040 Speaker 3: out your cash flow, work out your savings, work out 580 00:27:25,080 --> 00:27:28,760 Speaker 3: what that actually means, and go from there. So for me, no, 581 00:27:28,920 --> 00:27:31,560 Speaker 3: you don't need a financial advisor for spending. You don't 582 00:27:31,600 --> 00:27:34,040 Speaker 3: need a financial advisor to tell you what your budgeting 583 00:27:34,080 --> 00:27:36,560 Speaker 3: and cash flow should be because you are smart, like 584 00:27:36,680 --> 00:27:39,640 Speaker 3: your own intelligent human being and we can all work 585 00:27:39,680 --> 00:27:42,000 Speaker 3: that out ourselves. It might just be a little bit 586 00:27:42,040 --> 00:27:44,719 Speaker 3: sticky at the very start because it can feel overwhelming, 587 00:27:45,000 --> 00:27:47,520 Speaker 3: but hopefully you can sit down and go, you know what, 588 00:27:47,680 --> 00:27:49,560 Speaker 3: I'm just going to do it. Small steps are still 589 00:27:49,600 --> 00:27:52,040 Speaker 3: steps in the right direction, and I'm just going to 590 00:27:52,080 --> 00:27:54,760 Speaker 3: work it out trial and error at the startoprops. 591 00:27:56,600 --> 00:27:58,720 Speaker 2: The ad by shared on Cheese on the Money is 592 00:27:58,840 --> 00:28:02,399 Speaker 2: general in nature and does not consider your individual circumstances. 593 00:28:02,800 --> 00:28:06,159 Speaker 2: She's on the Money exists purely for educational purposes and 594 00:28:06,240 --> 00:28:08,639 Speaker 2: should not be relied upon to make an investment or 595 00:28:08,760 --> 00:28:12,280 Speaker 2: financial decision. If you do choose to buy a financial product, 596 00:28:12,400 --> 00:28:16,359 Speaker 2: read the PDS, TMD and obtain appropriate financial advice tailored 597 00:28:16,400 --> 00:28:19,840 Speaker 2: towards your needs. Victoria Divine and She's on the Money 598 00:28:19,920 --> 00:28:24,840 Speaker 2: are authorized representatives of Money Sherper Pty Ltd ABN three 599 00:28:24,920 --> 00:28:27,760 Speaker 2: two one IS six four nine two seven seven zero 600 00:28:27,960 --> 00:28:31,000 Speaker 2: eight AFSL four five one two eight nine