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Speaker 1: She's on the Money.

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

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Speaker 2: the Money, the podcast for millennials who want financial freedom.

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Speaker 2: This episode of the show is brought to you by

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Speaker 2: our brilliant ride sharing friends at DD but more in

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Speaker 2: than a little bit later. My name is Georgia King,

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Speaker 2: but if you're a diligent pod listener you'd already know

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Speaker 2: that by now. And as always I'm joined by my

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Speaker 2: lovely friend and money expert Victoria Devine.

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Speaker 1: Good morning.

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Speaker 2: Before we jump into it, Victoria, let's have a quick

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Speaker 2: chat about the lack of toilet papers in the supermarkets

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Speaker 2: right now. What is going Let's go.

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Speaker 3: You are absolutely correct, it's a little bit of wild

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Speaker 3: hysteria going.

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Speaker 2: On, obviously in relation to coronaviruns.

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Speaker 3: Yes, at this point in time. And I think it

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Speaker 3: has been quite reflective in our Facebook community as well,

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Speaker 3: people asking about their investment portfolios and what's going on

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Speaker 3: with their raise accounts. And I think it's really important

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Speaker 3: to just note here that investment is for the long term.

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Speaker 3: We go into an investment because we want to hold

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Speaker 3: it and create wealth, and the share market has ebbs

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Speaker 3: and flows, and this is a really normal thing to happen.

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Speaker 3: And if we look back on world epidemics and the

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Speaker 3: global stock market performance, we often see a dip when

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Speaker 3: an epidemic hits. So if you look back and you

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Speaker 3: look at the SARS or the swine flu or a bowler,

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Speaker 3: every single time something like that has hit our news stands,

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Speaker 3: it has significantly impacted one hour global economy, but two

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Speaker 3: it's also impacted share prices, and that is really scary

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Speaker 3: when you go log into your raise account and you

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Speaker 3: see that it's worth three hundred dollars less or one

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Speaker 3: thousand dollars less, or you're looking at your superannuation and

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Speaker 3: it's off. But if you are invested properly for your

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Speaker 3: risk profile, and you're invested in a way that is

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Speaker 3: aligned to your values, it shouldn't impact you at all.

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Speaker 2: So we shouldn't be rushing to pull out our shares

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Speaker 2: in certain areas.

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Speaker 3: In my opinion, No, it's definitely worthy of getting some

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Speaker 3: financial advice there, because I would never recommend that you

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Speaker 3: go and pull all your shares out or even put

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Speaker 3: more money in unless you've got some good advice on that.

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Speaker 3: Often when share prices are a little bit lower because

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Speaker 3: something has impacted the share market, you can often view

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Speaker 3: it as a discounted share. So at the moment in

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Speaker 3: my personal portfolio, I've actually put some more money into

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Speaker 3: the marketplace because I know that over time it will

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Speaker 3: increase in value, and I feel right now that a

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Speaker 3: share that I wanted to invest in is discounted, and

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Speaker 3: therefore I'm happy to invest. These things happen in the

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Speaker 3: share market and it is definitely worthy of consideration, but

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Speaker 3: not worry.

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Speaker 2: Alrighty, Victoria. Today we're going to be having a chat

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Speaker 2: about something that has been slightly controversial in our Facebook,

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Speaker 2: lightly a lot, and that is how much we should

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Speaker 2: be spending on our engagement rings. Now, I'm actually a

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Speaker 2: little way off this myself. It's not something I'm really

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Speaker 2: thinking about, but I know when I'm scrolling the feed

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Speaker 2: on Insta it seems like getting an enormous rock when

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Speaker 2: you do get engaged is the norm. However, this actually

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Speaker 2: wasn't always case, No, which was not so We were

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Speaker 2: doing the research earlier, and in the nineteen forties less

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Speaker 2: than ten percent of couples getting engaged actually exchanged diamond rings,

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Speaker 2: which seems incomprehensible now wild Nowadays, it seems every engagement

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Speaker 2: comes with a huge rock.

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Speaker 3: Eighty percent of engagements actually now come with a huge

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Speaker 3: diamond rock.

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Speaker 2: While I can't wait to discuss that and how we

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Speaker 2: have gotten to a point where the average cost of

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Speaker 2: an engagement ring in Australia is now one hundred and

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Speaker 2: forty seven dollars, it is, I think we should first

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Speaker 2: kick things off the way we always do, by sharing

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Speaker 2: a money win or confession from our own weeks. Victoria,

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Speaker 2: what have you got for me this week?

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Speaker 3: This week, I actually have a really good money win.

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Speaker 3: Fantastic and it's so on point for this episode. One

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Speaker 3: of my girlfriends has gotten engaged recently, which seems to

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Speaker 3: be one of the biggest themes in my friend.

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Speaker 1: Group of late. I know it's terrifying.

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Speaker 3: They're also having babies on purpose for the wild. But

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Speaker 3: one of my girlfriends has gotten engaged and I've been

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Speaker 3: asked to be a bridesmaid, and I am so proud

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Speaker 3: and so excited to be a bridesmaid. But that comes

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Speaker 3: along with needing to purchase a dress, and that dress

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Speaker 3: needs to be a certain color, so I'm really excited.

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Speaker 3: My money win this week is that her wardrobe had

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Speaker 3: an ex rental dress sale and then they had an

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Speaker 3: additional fifty percent off. So I have picked up my

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Speaker 3: dress for this wedding for thirty seven dollars fifty and

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Speaker 3: it is a four hundred and fifty dollars dress and

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Speaker 3: it is gorgeous and I am so excited about it,

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Speaker 3: and it is literally perfect for this wedding and it

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Speaker 3: is four hundred and fifty dollars that I actually thought

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Speaker 3: I was going.

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Speaker 1: To have to spend. She's so good.

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Speaker 3: But her wardrobe, by the way, absolutely not sponsored, just

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Speaker 3: really good.

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Speaker 1: Shout out to.

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Speaker 2: Alex Love you love the Melbourne.

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Speaker 1: They're Melbourne Base.

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Speaker 3: They're based in Saint Kilda, and I am obviously obsessed

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Speaker 3: with them because I feel like I go there all

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Speaker 3: the time. But I'm really excited that I've got no

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Speaker 3: dress for such discount.

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Speaker 1: It's wild. Anyway, what have you got?

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Speaker 2: G Mind's the money win as well? Far less exciting.

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Speaker 2: It's mid March now and I decided it was time

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Speaker 2: to head out there and buy myself a diary to

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Speaker 2: get organized. Twenty twenty.

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Speaker 1: So a little late, a little late, but.

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Speaker 2: This meant that when I rolled into the local news agency.

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Speaker 1: Do they still sell them?

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Speaker 4: Yeah?

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Speaker 1: They do?

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Speaker 2: Okay, it was half prized because I'm so late to

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Speaker 2: the party. So instead of a forty dollar diary, I

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Speaker 2: got a twenty dollar diary. That is why it's basically

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Speaker 2: the same as your dress.

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Speaker 3: Well, you've got three months stood in our invalid in

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Speaker 3: that diary, so I would hope there is a significant

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Speaker 3: discount associated.

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Speaker 2: Okay, moving right along, Let's take a quick look at

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Speaker 2: the Facebook community, which was impressive, as it always is

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Speaker 2: week after week, Victoria, did anyone stand out to you

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Speaker 2: in the Facebook group this week?

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Speaker 3: I have one from our friend Kristen, and she said

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Speaker 3: that she has a money in with the tongue out

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Speaker 3: dollar sign I face.

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Speaker 1: Thank you for.

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Speaker 3: Describing that, no problems. I've taken a note out of

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Speaker 3: your book, out of your diary, may I say? And

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Speaker 3: she said that she got quoted recently seven and a

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Speaker 3: half thousand dollars to install some shelves in her house

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Speaker 3: and she refused to pay that, which obviously is very

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Speaker 3: very fair. So she put her trading partner to work

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Speaker 3: and it took them almost the whole weekend, but it

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Speaker 3: ended up costing them sixteen hundred dollars and they're proud

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Speaker 3: of what they came up with. And she posted a

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Speaker 3: really cute photo of these new shelves and like a

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Speaker 3: desk space in her house. Really cute, Really proud of

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Speaker 3: her anyway, loved that money win and the fact that

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Speaker 3: she has a really handy partner that could help her out.

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Speaker 1: Yes, what have you got you?

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Speaker 2: Mine is crafty as well. So this one is from

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Speaker 2: Arjie who has written in I wanted to do something

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Speaker 2: special for my nephew's birthday this year, so I made

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Speaker 2: it twenty four cupcakes from scratch as a part of

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Speaker 2: his present, rather than buying a cake or cupcakes from

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Speaker 2: the bakery.

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Speaker 1: Oh my gosh, I saw this, so they had kohala once.

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Speaker 1: It looks they were so cute.

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Speaker 2: She saved heaps of money and the rest of the

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Speaker 2: money went in his birthday car, which is gorgeous, very

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Speaker 2: creative and clever money we now, Victoria. As I mentioned before,

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Speaker 2: the average engagement ring costs five one hundred and forty

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Speaker 2: seven dollars according to the twenty nineteen Australian Wedding Industry Report,

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Speaker 2: and that has only been increasing. This seems like a

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Speaker 2: wild start to me, especially when you're take into consideration

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Speaker 2: that one in four households in Australia has less than

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Speaker 2: one thousand dollars in cash savings, and that two in

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Speaker 2: three Australians could not raise three thousand dollars within a

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Speaker 2: week of an emergency. So Victoria, where on earth did

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Speaker 2: this expectation come from? Because it seems like a lot

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Speaker 2: of money to be spending on a ring.

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Speaker 3: It is a wild amount of money if we think

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Speaker 3: about what we could do with five thousand dollars.

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Speaker 1: And whilst I think it's.

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Speaker 3: Really important to preface this conversation about engagement rings really upfront,

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Speaker 3: is more about values, like if you want to spend

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Speaker 3: five grand, I am here for it. You want to

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Speaker 3: spend ten thousand dollars, fifteen thousand dollars, sure go for it?

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Speaker 2: What?

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Speaker 3: No, Absolutely none. In fact, I don't even know if

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Speaker 3: when that happens for me. I don't know what that

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Speaker 3: price point looks like. So I'd hate to have a

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Speaker 3: whole episode on on engagement rings to then shoot myself

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Speaker 3: in the foot later. So there's absolutely no judgment when

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Speaker 3: it comes to what you're spending. It's more about well,

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Speaker 3: where has this come from? And why are these expectations

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Speaker 3: in place? And are they actually reasonable for us to

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Speaker 3: be putting on each other or putting on ourselves. I

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Speaker 3: think one of the most interesting things when we start

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Speaker 3: talking about engagement rings is that diamonds haven't always been

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Speaker 3: the social norm. You mentioned before that in the nineteen forties,

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Speaker 3: less than ten percent of people were actually proposing with

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Speaker 3: a diamond, and in Japan, if we look at this

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Speaker 3: on a global scale, in the nineteen forties, less than

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Speaker 3: five percent of men were proposing with an engagement ring.

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Speaker 1: Then de Beers came on to the scene.

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Speaker 3: Bierz Bigda bears not the kind that you like, g

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Speaker 3: but de Beers was a company that actually held the

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Speaker 3: monopoly of the diamond market for decades, and they came

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Speaker 3: into the market in nineteen thirty eight and they started

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Speaker 3: a marketing ploy They started to get Americans reinvested in

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Speaker 3: diamonds because of their marketing strategy, which arguably is probably

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Speaker 3: one of the most successful marketing strategies in the world.

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Speaker 3: Nearly eighty percent of people now putting rings on fingers

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Speaker 3: when they get.

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Speaker 2: Engaged, and that's only like eighty years later.

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Speaker 3: Exactly, And the same stuff is true for America and

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Speaker 3: now Australia. Historically we didn't actually invest in engagement rings. Yeah,

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Speaker 3: it's a big marketing strategy that has been put into

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Speaker 3: the market that we have all eaten up. And I

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Speaker 3: think that if we start talking about it more logically,

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Speaker 3: five thousand dollars is a lot of money, and we're

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Speaker 3: in a position where it's like, Okay, well fine, I'm

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Speaker 3: not saying don't get an engagement ring, but what I

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Speaker 3: am saying is, let's start having conversations about what is

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Speaker 3: reasonable in twenty twenty. We often view diamonds as rare,

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Speaker 3: and that's why we want to have a diamond because

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Speaker 3: diamonds are forever. They're a good investment. Often we're told,

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Speaker 3: you know, that's why they're valuable. Look at the four c's,

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Speaker 3: you know, you look at your cut, you look at

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Speaker 3: your color, you look at the clarity, you look at

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Speaker 3: the carrot of the ring, and that is what people

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Speaker 3: are led to believe. But for anyone who starts to

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Speaker 3: do even a little bit of research, you'll find that

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Speaker 3: diamonds aren't actually rare. They are just highly regulated and

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Speaker 3: that has come from the Diber's cartel. And even if

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Speaker 3: for one minute we pretended that they were rare, we're

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Speaker 3: faced with the problem that artificial diamonds can actually created

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Speaker 3: in the absolute boat loads, So why are we so

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Speaker 3: stuck on diamonds as a valuable investment. Diamonds aren't actually

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Speaker 3: liquid if I put my investment hat on, they are

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Speaker 3: quite hard to sell. I don't know if anyone has

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Speaker 3: had to, and I don't think that I would ever

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Speaker 3: wish this on someone. But if you go and try

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Speaker 3: and sell a secondhand diamond engagement ring, there's often a

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Speaker 3: lot of stigma that associates that so in bad luck.

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Speaker 3: Like often women are like, oh well, I don't want

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Speaker 3: to wear somebody else's engagement ring or wedding ring from

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Speaker 3: a failed marriage. But then you've also got antique jewelry.

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Speaker 3: But if you've ever gone to sell a diamond, it

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Speaker 3: is very hard to sell and you are going to

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Speaker 3: make a significant loss when you do go to sell it.

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Speaker 3: So to me, that's not a very good investment. In fact,

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Speaker 3: so many jewelers refuse to buy back diamonds, even if

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Speaker 3: you previously purchased that same diamond from them and there's

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Speaker 3: documentation to prove it, like they just won't have it.

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Speaker 3: There's often really strict refund policies in place when it

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Speaker 3: comes to diamonds and engagement rings. So in my book,

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Speaker 3: diamonds are probably a terrible investment if we look at

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Speaker 3: it on an investment side of things. They're not rare,

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Speaker 3: they're not liquid, and they're not that valuable. But because

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Speaker 3: of the way that they are being marketed and because

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Speaker 3: of the way that they are sold, they're really expensive.

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Speaker 2: So what would you say, then, is a reasonable amount

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Speaker 2: of money to be spending on a diamond ring?

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Speaker 3: This is such a hard question to start having a

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Speaker 3: conversation about. I would love to say it's a tale

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Speaker 3: as old as time, but it's not because it's not

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Speaker 3: been around for that long. It's been around our entire lives, though,

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Speaker 3: So if we want a diamond engagement ring, I think

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Speaker 3: it's also really important to look at what our expectations are.

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Speaker 3: So if we're talking to what the expectations are, often

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Speaker 3: I will have a client say, well, isn't it three

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Speaker 3: months worth of salary? That is often a stigma that

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Speaker 3: is associated with it. If we look back to the eighties,

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Speaker 3: it was two months worth of salaries. If we look

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Speaker 3: back to the fifties and sixties, that was actually.

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Speaker 1: One month's worth of salary.

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Speaker 3: And we've got indexation, we've got inflation, we've got increased

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Speaker 3: cost of salaries. I think that we are now looking

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Speaker 3: at something that is actually quite unreasonable when it comes

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Speaker 3: down to it.

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Speaker 2: So what does a three month salary actually look like? Victoria.

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Speaker 3: So if you look at the Australian median annual income

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Speaker 3: that actually sits in twenty twenty at around eighty six

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Speaker 3: thousand dollars, which is a lot of money after tax.

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Speaker 3: That is what sixty six thousand dollars going into your

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Speaker 3: bank account every year. So that means that you've got

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Speaker 3: a monthly take home salary of five four hundred dollars.

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Speaker 1: By times that by three, and we're.

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Speaker 3: At sixteen thousand dollars already. And that number, when I calculated,

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Speaker 3: it made me feel a little bit sick. So if

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Speaker 3: we start talking about sixteen thousand dollars in more tangible terms,

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Speaker 3: like if you're spending that on engadgem ring, that is

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Speaker 3: absolutely fine. And as I've said so so many times

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Speaker 3: before on the podcast, this is more just about educating

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Speaker 3: you into making decisions that you.

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Speaker 1: Are completely aware of.

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Speaker 3: But if we took sixteen thousand dollars and put it

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Speaker 3: into the share market over the next forty years, because

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Speaker 3: that's how much longer we've got to retire at. And

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Speaker 3: then we used an effective interest rate of seven and

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Speaker 3: a half percent, because, as I've told you guys before,

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Speaker 3: I always use seven and a half percent, even though

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Speaker 3: the Australian share market returns more than that on average

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Speaker 3: over a thirty year period. Sixteen thousand dollars turns into

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Speaker 3: three hundred and eighteen thousand dollars over the long term.

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Speaker 2: Imagine how many engagement rings you goodbye with that, Victoria exactly.

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Speaker 3: But I think it's more about what are your values?

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Speaker 3: Why are we placing such significant value on a ring

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Speaker 3: that that capital could be invested somewhere else? And now

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Speaker 3: I'm not saying don't do it. That is absolutely not

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Speaker 3: the message. Just think about it, Go okay, cool, no problems.

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Speaker 3: But what could we say of how could we do that?

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Speaker 3: Could we invest that for our future and spend three

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Speaker 3: hundred thousand dollars in retirement going on holidays and having

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Speaker 3: a really, really big, really long honeymoon. We are purchasing

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Speaker 3: an asset that is not really an asset because it

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Speaker 3: doesn't provide any wealth for us, It doesn't create wealth.

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Speaker 3: It might make us feel really good. Yeah, it's really pretty.

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Speaker 3: And please don't get me wrong, I'm hypercritical of this

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Speaker 3: because I'm a financial advisory. Is that really something you

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Speaker 3: want to be putting your money into? And there is

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Speaker 3: a lot of research that says that it's actually putting

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Speaker 3: couples behind. So they're spending twenty thousand dollars on a ring,

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Speaker 3: which I'm telling you right now is actually very very common.

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Speaker 3: Really is spending twenty thousand dollars on a ring, and

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Speaker 3: that is putting them back because they want to purchase

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Speaker 3: a home. It is actually getting in the way of

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Speaker 3: their larger financial goals. And if that is one of

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Speaker 3: their financial goals, that is fantastic. I am here for it.

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Speaker 3: But I want to make sure that people are purchasing

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Speaker 3: in line with their values, not necessarily purchasing in line

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Speaker 3: with what the society that they see expects them to do.

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Speaker 3: And I think that that's really hard in a world

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Speaker 3: where we have comparisons gol Or, we have Instagram, we

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Speaker 3: have Facebook, we have targeted advertising. The second you input

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Speaker 3: into Google that you are looking for an engagement ring,

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Speaker 3: you are absolutely bombarded with it. On Instagram, on Facebook advertising,

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Speaker 3: it is absolutely everywhere, and I think that that is

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Speaker 3: really hard to shy away from as well, because no

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Speaker 3: one on Instagram is really showcasing smaller diamonds or alternative

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Speaker 3: They're all showcasing their big one point five carrot diamond

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Speaker 3: engagement rings. And you go, oh, okay, well, maybe this

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Speaker 3: is the expectation, because I know I see that.

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Speaker 2: So the price is constantly rising, as is the expectation

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Speaker 2: of society. What are we actually meant to be spending?

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Speaker 3: Such a hard conversation to have, And I wish I

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Speaker 3: had a dollar figure because I think it's one of

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Speaker 3: those things that everybody's looking for that figure, Like everybody

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Speaker 3: wants me to say, all right, well two thousand dollars

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Speaker 3: is reasonable, and then they go, all right, no problems,

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Speaker 3: That's exactly what I'm going to spend, because that's what

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Speaker 3: is real and reasonable. But I think it comes back

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Speaker 3: to values, and it comes back to money goals, and

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Speaker 3: it comes back to how much you are spending and

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Speaker 3: saving each and every single month. I am a very

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Speaker 3: strong believer that if you're going to purchase an engagement ring,

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Speaker 3: you should not be going into debt. If you're going

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Speaker 3: into debt, you are not ready to get engaged and

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Speaker 3: that is probably very opinionated, but it is one of

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Speaker 3: those things where you should be spending within your means.

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Speaker 3: And if it is something that you cannot realistically fit

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Speaker 3: into your budget, why is that something you are making

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Speaker 3: space for when you have other values in competing priorities.

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Speaker 3: Everybody knows how I feel about debt by now, and

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Speaker 3: we avoid it like the plague. And if you're going

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Speaker 3: to take on debt, it needs to be good debt

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Speaker 3: that is going to increase your wealth. Whilst I believe

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Speaker 3: that getting engaged is an incredibly special time in your life,

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Speaker 3: Like we're not here saying it's not, and we're not

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Speaker 3: here saying don't get engaged. We're not here saying you know,

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Speaker 3: it's a bad idea. Don't get me wrong. It's something

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Speaker 3: that I want at some point in my life, but

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Speaker 3: it is not a priority for me to go into

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Speaker 3: debt to pior ring. That is stretching me beyond my means.

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Speaker 2: Do you even need the ring? Like can't you just

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Speaker 2: get engaged and that purchase the ring later?

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Speaker 3: Or you know us so many ways. And whilst doing

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Speaker 3: my research I found a really great report. It was

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Speaker 3: the twenty nineteen Australian Wedding Industry report, and it said

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Speaker 3: that sixty percent of couples that get engaged are formed

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Speaker 3: with a ring.

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Speaker 1: That is a surprise, Okay, twenty four.

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Speaker 3: Percent of couples are choosing an engagement ring together, and

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Speaker 3: six percent of engagements are agreed upon without a ring,

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Speaker 3: six percent, which I think is really interesting because if

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Speaker 3: you're going to be spending five one hundred and forty

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Speaker 3: seven dollars on an asset, why are sixty percent of

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Speaker 3: you choosing that as a surprise. I feel like if

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Speaker 3: my partner went out and spent five grand on something

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Speaker 3: without my consent or without me understanding what's going on

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Speaker 3: and having a conversation about money, I'd be pretty unimpressed.

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Speaker 3: But that's me and I think that that's then leading

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Speaker 3: into a really good conversation about your living situation and

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Speaker 3: about your financial situation, like who pays for the ring?

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Speaker 3: I don't know, but at this point in time, and

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Speaker 3: I've been quite open about this journey, I've started working

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Speaker 3: with my partner on having joint finances and that means

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Speaker 3: complete visibility on both sides of the story. How does

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Speaker 3: someone say for an engagement ring if I see his

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Speaker 3: bank account. How do I do that without ruining the

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Speaker 3: surprise essentially? And I think that's where it comes into play,

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Speaker 3: where you could either choose it together or getting gaged

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Speaker 3: with a stand in ring. I know a couple of

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Speaker 3: girlfriends who have had that happen where their partners have

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Speaker 3: just gone and bought cheap rings from La Visa and

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Speaker 3: proposed with those rings so that they can then go

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Speaker 3: and choose the ring together later, but they haven't lost

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Speaker 3: that element of surprise. And I think that that's a

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Speaker 3: really nice way about going about it. But it's twenty

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Speaker 3: twenty as well. I think things have changed. It's no

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Speaker 3: longer about your partner going and spending a lot of

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Speaker 3: money on something and then proposing and surprising you.

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Speaker 1: I think the narrative around.

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Speaker 3: Getting engaged and getting married is now changing because in

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Speaker 3: twenty twenty, we're far more collaborative. If we're going to

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Speaker 3: be all about equality, aren't we meant to be equally

403
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Speaker 3: contributing to our relationships? And if we are equally contributing

404
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Speaker 3: to our relationships, does that then extend to paying half

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Speaker 3: for our engagement rings? What does that actually look like?

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Speaker 3: And I think that that is then a really personal question.

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Speaker 3: You know some women are going to say, well, Victoria,

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Speaker 3: regardless of how much of a feminist I am, I

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Speaker 3: still love the idea of having a surprise engagement and

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Speaker 3: that is so okay. But it's a conversation you need

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Speaker 3: to have with your partner because one, we don't want

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Speaker 3: to be disappointed when it happens, but two we also

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Speaker 3: don't want to be surprised by something that is actually

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Speaker 3: a really big financial commitment.

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Speaker 2: So back to what we should be suspending, Victoria, Well, yes,

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Speaker 2: give me some money, figures, Comma.

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Speaker 3: You keep questioning me for this, but I think it's

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Speaker 3: a really hard thing to answer. Like it is back

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Speaker 3: to values. As I said, I do not want you

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Speaker 3: going into debt. I do not want you to be

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Speaker 3: going to a place that is stretching you so financially

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Speaker 3: that you aren't achieving your other goals. I think it's

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Speaker 3: really worth having a look at all. Right, Well, yes,

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Speaker 3: you will be wearing this ring, hopefully for the rest

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Speaker 3: of your life. Probably spend some money on it so

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Speaker 3: that you feel comfortable and you love the item that

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Speaker 3: you have chosen together. But then also, is it actually

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Speaker 3: within your budget? How do you budget for this? Is

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00:19:46,359 --> 00:19:49,760
Speaker 3: it something that you save up quite aggressively for so

430
00:19:49,880 --> 00:19:53,520
Speaker 3: it's over and done with. Like we are young, and unfortunately,

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Speaker 3: when you get to the stage where you are getting engaged,

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Speaker 3: it is the most expensive period of your life. You've

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Speaker 3: got an engagement, You've then probably maybe got an engagement party.

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Speaker 3: Then you've got a wedding, and then you often spend

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00:20:06,600 --> 00:20:09,119
Speaker 3: money on a honeymoon, and then more likely than not,

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00:20:09,359 --> 00:20:12,439
Speaker 3: you know, without stereotyping, then a baby comes onto the

437
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Speaker 3: scene and you've got financial commitments coming from everywhere, and

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Speaker 3: unlike any other period in your life, this is the

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Speaker 3: period that you are spending.

440
00:20:20,400 --> 00:20:21,240
Speaker 1: The most money.

441
00:20:21,680 --> 00:20:24,439
Speaker 3: And I think it's worthy of consideration to actually just

442
00:20:24,520 --> 00:20:26,760
Speaker 3: reflect on that and go, Okay, well, how could I

443
00:20:26,760 --> 00:20:28,639
Speaker 3: save money, How could I get the things that I

444
00:20:28,680 --> 00:20:30,560
Speaker 3: want what is really going to matter to me the

445
00:20:30,560 --> 00:20:33,520
Speaker 3: most ten years from now, and based decisions on that

446
00:20:33,800 --> 00:20:34,119
Speaker 3: rather so.

447
00:20:34,160 --> 00:20:36,199
Speaker 2: Getting caught up and swept up in the world of

448
00:20:36,240 --> 00:20:37,240
Speaker 2: Instagram and all of that.

449
00:20:37,320 --> 00:20:40,240
Speaker 3: Absolutely comparison, And I think that having hard and fast

450
00:20:40,320 --> 00:20:43,359
Speaker 3: numbers is really hard because every couple has a different

451
00:20:43,400 --> 00:20:47,359
Speaker 3: set of values and every budget has room for movement.

452
00:20:47,480 --> 00:20:49,679
Speaker 3: So we all have different things in our budgets, like

453
00:20:49,720 --> 00:20:51,880
Speaker 3: We're talking a couple of weeks ago in the Facebook

454
00:20:51,880 --> 00:20:55,760
Speaker 3: group that someone was absolutely not negotiable on their eyelash extensions,

455
00:20:55,760 --> 00:20:57,399
Speaker 3: and someone else was like, wow, why would you have

456
00:20:57,440 --> 00:20:59,159
Speaker 3: that in your budget at all? Like, I don't have

457
00:20:59,200 --> 00:21:01,760
Speaker 3: any value on that, But they're spending seventy dollars a

458
00:21:01,840 --> 00:21:05,080
Speaker 3: week on a gym membership. So we are all so different.

459
00:21:05,240 --> 00:21:07,520
Speaker 3: I think it would be quite inconsiderate of me to

460
00:21:07,600 --> 00:21:09,640
Speaker 3: give you a number like, Okay, well, I think five

461
00:21:09,680 --> 00:21:10,800
Speaker 3: thousand dollars is reasonable.

462
00:21:11,000 --> 00:21:11,359
Speaker 1: It is not.

463
00:21:11,560 --> 00:21:13,440
Speaker 3: I know women who have gotten engaged with one hundred

464
00:21:13,440 --> 00:21:15,520
Speaker 3: dollars engagement ring, and that is the ring that they

465
00:21:15,520 --> 00:21:17,399
Speaker 3: are wearing for their entire lives, and they love it

466
00:21:17,440 --> 00:21:19,560
Speaker 3: and it is so so special to them. But then

467
00:21:19,600 --> 00:21:22,320
Speaker 3: I also have clients who spend upwards of fifty thousand

468
00:21:22,359 --> 00:21:24,960
Speaker 3: dollars on an engagement ring, and they are it's a

469
00:21:24,960 --> 00:21:27,040
Speaker 3: lot of money, but they are really happy, and I'm

470
00:21:27,080 --> 00:21:30,040
Speaker 3: really happy for them. So I think it is purchasing

471
00:21:30,080 --> 00:21:32,520
Speaker 3: something together that is in your budget that you have

472
00:21:32,600 --> 00:21:37,159
Speaker 3: allocated funds too, or you have organized funds together to

473
00:21:37,320 --> 00:21:40,600
Speaker 3: purchase something. I think we often try to spend beyond

474
00:21:40,600 --> 00:21:43,280
Speaker 3: our means because we are trying to impress people that

475
00:21:43,320 --> 00:21:46,200
Speaker 3: we don't need to impress. I think all that matters

476
00:21:46,280 --> 00:21:48,760
Speaker 3: here is that it is what you would like to wear,

477
00:21:48,840 --> 00:21:51,280
Speaker 3: and it is something that makes you and your partner

478
00:21:51,320 --> 00:21:51,879
Speaker 3: really happy.

479
00:21:52,040 --> 00:21:54,040
Speaker 2: So what if you can't afford the ring that you

480
00:21:54,359 --> 00:21:55,320
Speaker 2: so just really want.

481
00:21:55,480 --> 00:21:57,640
Speaker 3: I think that that is such a common thing, and

482
00:21:57,720 --> 00:22:00,000
Speaker 3: that is something that a lot of women are struggle

483
00:22:00,320 --> 00:22:03,320
Speaker 3: with because they see these big, beautiful two carrot diamond

484
00:22:03,400 --> 00:22:05,280
Speaker 3: rings and they go, well, that's what I would like,

485
00:22:05,359 --> 00:22:07,359
Speaker 3: And this is where we can start a conversation I guess,

486
00:22:07,359 --> 00:22:10,600
Speaker 3: gee around diamond alternatives. Yes, so there are so many

487
00:22:10,680 --> 00:22:14,399
Speaker 3: great diamond alternatives on the marketplace. My money when before

488
00:22:14,480 --> 00:22:16,679
Speaker 3: was about buying a dress for a wedding that's coming up.

489
00:22:16,960 --> 00:22:20,080
Speaker 3: And the friend that got engaged actually has this absolutely

490
00:22:20,119 --> 00:22:23,639
Speaker 3: gorgeous blue sapphire. It is an heirloom from her family

491
00:22:23,680 --> 00:22:26,560
Speaker 3: that she has reset and honestly, I have never seen

492
00:22:26,600 --> 00:22:29,200
Speaker 3: something more stunning. Yeah, it is this like three stone

493
00:22:29,280 --> 00:22:32,360
Speaker 3: ring that I'm obsessed with, but it is so her,

494
00:22:32,440 --> 00:22:34,680
Speaker 3: it's not funny. So I think if an heirloom is

495
00:22:34,720 --> 00:22:37,919
Speaker 3: an opportunity for you, definitely look into that, because it is.

496
00:22:38,320 --> 00:22:42,959
Speaker 3: It's nice to have something sentimental, absolutely, but then also gemstones.

497
00:22:42,600 --> 00:22:43,240
Speaker 1: Have a color.

498
00:22:43,400 --> 00:22:46,080
Speaker 3: If you've got a favorite color, fantastic, like, if that

499
00:22:46,200 --> 00:22:48,240
Speaker 3: is something that makes you really happy, go for it.

500
00:22:48,280 --> 00:22:50,480
Speaker 3: But then also if you just really want that perfect

501
00:22:50,480 --> 00:22:53,560
Speaker 3: diamond look in clear stone, there are so many alternatives,

502
00:22:53,600 --> 00:22:55,320
Speaker 3: like on the market. I've been doing a little bit

503
00:22:55,320 --> 00:22:58,520
Speaker 3: of research for this episode, and there are white sapphires

504
00:22:58,520 --> 00:23:02,000
Speaker 3: that look very similar to diamonds, Cubic xiconias. So companies

505
00:23:02,040 --> 00:23:07,000
Speaker 3: like Secrets, however you say it, Secrets, they have really

506
00:23:07,000 --> 00:23:11,040
Speaker 3: beautiful rings, are really really reasonable prices that look very

507
00:23:11,040 --> 00:23:14,960
Speaker 3: similar to diamonds. You've then got stones like mosonite or

508
00:23:15,000 --> 00:23:17,000
Speaker 3: mois and night I'm unsure of how to say that,

509
00:23:17,080 --> 00:23:19,960
Speaker 3: and that is incredibly popular in the US. It doesn't

510
00:23:19,960 --> 00:23:22,360
Speaker 3: seem to be very big in Australia yet. And then

511
00:23:22,400 --> 00:23:24,920
Speaker 3: you have lab grown diamonds, which to the human eye

512
00:23:24,960 --> 00:23:29,480
Speaker 3: are absolutely indistinguishable from real diamonds. So we can actually

513
00:23:29,480 --> 00:23:32,880
Speaker 3: find alternatives that give us the look that we want

514
00:23:33,000 --> 00:23:35,680
Speaker 3: and the ring size that we want without actually having

515
00:23:35,720 --> 00:23:38,480
Speaker 3: to go into a lot of debt and doing my research,

516
00:23:38,520 --> 00:23:40,840
Speaker 3: they are less than a quarter of the price of

517
00:23:40,880 --> 00:23:43,840
Speaker 3: a diamond, and that's crazy to me, if you want

518
00:23:43,880 --> 00:23:46,240
Speaker 3: a certain ring, or if you want something that is

519
00:23:46,280 --> 00:23:49,240
Speaker 3: a little bit out of your price budget, maybe have

520
00:23:49,320 --> 00:23:52,080
Speaker 3: a look at an alternative. That means that you get

521
00:23:52,119 --> 00:23:55,320
Speaker 3: the look essentially for less, and you get exactly what

522
00:23:55,359 --> 00:23:57,760
Speaker 3: you have been looking for all along. And I think

523
00:23:57,760 --> 00:24:00,280
Speaker 3: that that's actually really I don't know, there's something.

524
00:24:00,160 --> 00:24:02,359
Speaker 2: About that, the visual and personalized.

525
00:24:02,359 --> 00:24:04,520
Speaker 3: I think as well, Yeah, I love it, Like, I

526
00:24:04,600 --> 00:24:07,119
Speaker 3: actually think it's something that you know, like, when my

527
00:24:07,240 --> 00:24:09,320
Speaker 3: time comes, you say, like, I think that's something that

528
00:24:09,359 --> 00:24:13,280
Speaker 3: I would genuinely look into because I do love personally

529
00:24:13,320 --> 00:24:15,880
Speaker 3: the look of bigger rings, Like I just think they

530
00:24:15,880 --> 00:24:18,080
Speaker 3: are really beautiful. And I've got a couple of friends

531
00:24:18,119 --> 00:24:21,840
Speaker 3: that have these absolutely stunning rings, but I really don't

532
00:24:21,840 --> 00:24:23,960
Speaker 3: want to spend what they've spent on those rings. But

533
00:24:24,040 --> 00:24:26,560
Speaker 3: I also kind of want the opportunity to have a big,

534
00:24:26,600 --> 00:24:29,000
Speaker 3: sparkly thing. So I don't know what the right or

535
00:24:29,000 --> 00:24:31,760
Speaker 3: wrong answer here is. I think looking into alternatives is

536
00:24:31,800 --> 00:24:35,120
Speaker 3: definitely something that is worthy of consideration. It is definitely

537
00:24:35,160 --> 00:24:37,000
Speaker 3: something that to me is a little bit sexy in

538
00:24:37,080 --> 00:24:39,679
Speaker 3: terms of budgeting and in terms of making sure that

539
00:24:39,760 --> 00:24:43,040
Speaker 3: it fits within your cash flow, fits within your lifestyle.

540
00:24:43,600 --> 00:24:45,960
Speaker 3: But too often do I see couples that come in

541
00:24:46,080 --> 00:24:48,879
Speaker 3: and have a meeting with me and they've overspent on

542
00:24:48,920 --> 00:24:51,399
Speaker 3: their engagement ring and they actually regret it. Like I

543
00:24:51,440 --> 00:24:54,280
Speaker 3: don't meet any couple that has spent out of their

544
00:24:54,320 --> 00:24:57,240
Speaker 3: budget that doesn't say, hey, yeah, like we probably could

545
00:24:57,240 --> 00:24:58,040
Speaker 3: have been a bit smarter.

546
00:24:58,119 --> 00:24:59,679
Speaker 1: He we just got swept up in it.

547
00:25:03,560 --> 00:25:06,200
Speaker 2: Hi, there you've breached that. She's on the money mailbox.

548
00:25:06,320 --> 00:25:08,240
Speaker 2: Do you have a money problem you want help solving.

549
00:25:08,520 --> 00:25:10,199
Speaker 2: Do you have a money's your lemma you just want

550
00:25:10,240 --> 00:25:13,320
Speaker 2: to chat about? Victoria is here to help. Every week,

551
00:25:13,400 --> 00:25:15,840
Speaker 2: we'll be playing your questions to help make sense of

552
00:25:15,840 --> 00:25:18,040
Speaker 2: a money mess you may have found yourself in. Make

553
00:25:18,119 --> 00:25:20,080
Speaker 2: a quick recording on your phone and send it through

554
00:25:20,119 --> 00:25:22,679
Speaker 2: to podcast at shoes onthemoney dot com dot you, and

555
00:25:22,800 --> 00:25:25,480
Speaker 2: you might even find yourself on the show. But for now,

556
00:25:25,520 --> 00:25:26,720
Speaker 2: here's today's listener question.

557
00:25:27,440 --> 00:25:31,320
Speaker 4: Hey girls, So I recently just got engaged and I've

558
00:25:31,400 --> 00:25:33,840
Speaker 4: just started planning my wedding, which seems to be getting

559
00:25:33,880 --> 00:25:36,240
Speaker 4: a lot bigger than I thought it would be. Our

560
00:25:36,240 --> 00:25:38,720
Speaker 4: wedding is just over a year from now. But on

561
00:25:38,760 --> 00:25:40,800
Speaker 4: the weekend, my partner said that he wants to host

562
00:25:40,800 --> 00:25:43,840
Speaker 4: an engagement party as well. Originally we weren't going to

563
00:25:43,920 --> 00:25:46,120
Speaker 4: do this, but now that he's changed his mind, I've

564
00:25:46,119 --> 00:25:47,200
Speaker 4: started to think about it.

565
00:25:47,920 --> 00:25:49,240
Speaker 1: I just think the costs of the.

566
00:25:49,119 --> 00:25:52,440
Speaker 4: Wedding are already adding up, and the engagement party would

567
00:25:52,520 --> 00:25:54,800
Speaker 4: just be another cost that I don't particularly want to

568
00:25:54,840 --> 00:25:58,600
Speaker 4: plan for, especially given that we've already booked half of

569
00:25:58,640 --> 00:26:02,120
Speaker 4: our wedding. Is how do I approach my partner with this.

570
00:26:02,640 --> 00:26:05,720
Speaker 4: I don't think he realizes how much of an extra

571
00:26:05,800 --> 00:26:07,479
Speaker 4: cost this engagement party would be.

572
00:26:08,160 --> 00:26:12,479
Speaker 2: Thanks another tough question this week, Victoria, this is going

573
00:26:12,520 --> 00:26:15,880
Speaker 2: to be very expensive with the engagement party and the wedding.

574
00:26:16,200 --> 00:26:17,440
Speaker 2: Do you need to be doing both?

575
00:26:17,640 --> 00:26:19,680
Speaker 3: I think it's a double whammy here. If he's a

576
00:26:19,720 --> 00:26:25,600
Speaker 3: double um, I think this one's really interesting. So Australians

577
00:26:25,640 --> 00:26:29,640
Speaker 3: on average spending thirty six thousand dollars on weddings, which

578
00:26:29,640 --> 00:26:31,240
Speaker 3: you guys would know if you listened to our wedding

579
00:26:31,280 --> 00:26:35,600
Speaker 3: episode from last season, and according to money Smart, eighty

580
00:26:35,640 --> 00:26:38,480
Speaker 3: two percent of couples are dipping into their savings to

581
00:26:38,560 --> 00:26:41,000
Speaker 3: pay for their wedding, which is fine. I like that

582
00:26:41,080 --> 00:26:44,520
Speaker 3: they've saved for it, but sixty percent of couples are

583
00:26:44,600 --> 00:26:47,919
Speaker 3: also relying on a loan, and eighteen percent of couples

584
00:26:48,000 --> 00:26:50,560
Speaker 3: are using a credit card to pay for parts of

585
00:26:50,600 --> 00:26:53,000
Speaker 3: their wedding. So I think that this is a really

586
00:26:53,040 --> 00:26:57,119
Speaker 3: interesting question because it comes back down to money budgeting,

587
00:26:57,480 --> 00:27:01,399
Speaker 3: and I am wild about budget as you guys would know,

588
00:27:01,640 --> 00:27:03,639
Speaker 3: but I also think that if you've got a wedding

589
00:27:03,720 --> 00:27:06,679
Speaker 3: coming up, you need to be doing a comprehensive budget

590
00:27:06,760 --> 00:27:10,640
Speaker 3: that takes into consideration every single part of your wedding

591
00:27:11,119 --> 00:27:14,520
Speaker 3: and the whole process. So, for me, a wedding budget

592
00:27:14,600 --> 00:27:18,320
Speaker 3: includes the engagement party, it includes the engagement ring, it

593
00:27:18,359 --> 00:27:20,520
Speaker 3: includes all of the honeymoon.

594
00:27:20,000 --> 00:27:23,400
Speaker 1: And every other budget everything.

595
00:27:22,960 --> 00:27:26,719
Speaker 3: Literally your hen's party, your Bucks party, the bridesmaid's dresses

596
00:27:26,760 --> 00:27:30,280
Speaker 3: if you're paying for them, hair makeup, like every single thing,

597
00:27:30,400 --> 00:27:32,840
Speaker 3: including the thank you notes that you send out at

598
00:27:32,840 --> 00:27:34,919
Speaker 3: the end of the wedding. So I think that that

599
00:27:35,080 --> 00:27:37,800
Speaker 3: is a number that needs to be agreed on between

600
00:27:37,840 --> 00:27:40,080
Speaker 3: you and your partner, and you need to be under

601
00:27:40,119 --> 00:27:41,320
Speaker 3: the understanding of what.

602
00:27:41,359 --> 00:27:43,080
Speaker 1: Is included in that budget to begin with.

603
00:27:43,680 --> 00:27:46,520
Speaker 3: So, if you're choosing a wedding budget, let's call the average,

604
00:27:46,560 --> 00:27:49,400
Speaker 3: if you have chosen to spend thirty six thousand dollars

605
00:27:49,440 --> 00:27:51,880
Speaker 3: on a wedding, you need to make all of those

606
00:27:51,920 --> 00:27:54,720
Speaker 3: events fit into that budget. It is not all right,

607
00:27:54,760 --> 00:27:57,200
Speaker 3: thirty six thousand dollars is happening just for the wedding,

608
00:27:57,240 --> 00:27:59,000
Speaker 3: and then we've got an engagement party, and then we've

609
00:27:59,040 --> 00:28:01,399
Speaker 3: got engagement ring, and then we've got wedding rings, and

610
00:28:01,400 --> 00:28:02,320
Speaker 3: we've got a honeymoon.

611
00:28:02,480 --> 00:28:04,600
Speaker 1: So I think it's pick a budget.

612
00:28:04,280 --> 00:28:07,879
Speaker 3: And that covers every single festivity related to that event,

613
00:28:08,240 --> 00:28:09,920
Speaker 3: and then you break it down from there.

614
00:28:10,240 --> 00:28:11,920
Speaker 1: And that's where couples come.

615
00:28:11,760 --> 00:28:14,880
Speaker 3: Really unstuck when planning a wedding because they say, oh,

616
00:28:14,880 --> 00:28:17,399
Speaker 3: we're going to spend thirty thousand dollars, but they actually

617
00:28:17,440 --> 00:28:19,800
Speaker 3: didn't realize that the florist they want has a minimum

618
00:28:19,880 --> 00:28:22,560
Speaker 3: spend of five thousand dollars and so then bam, you've

619
00:28:22,560 --> 00:28:25,200
Speaker 3: eaten up a very significant portion of your budget there

620
00:28:25,240 --> 00:28:28,280
Speaker 3: without even thinking about it. And everything in wedding, like

621
00:28:28,320 --> 00:28:30,679
Speaker 3: when weddings roll around is wedding tax.

622
00:28:31,040 --> 00:28:32,280
Speaker 1: Yeah, that's it exactly.

623
00:28:32,440 --> 00:28:34,479
Speaker 3: So I think that it's really important when you are

624
00:28:34,520 --> 00:28:38,600
Speaker 3: planning an overall wedding budget, be educated, understand what these

625
00:28:38,600 --> 00:28:41,400
Speaker 3: things cost. Before setting a wedding budget, have a think

626
00:28:41,400 --> 00:28:44,760
Speaker 3: about the things that you want make some inquiries, understand

627
00:28:44,800 --> 00:28:48,880
Speaker 3: what the videographer is going to cost. Often videographers these days,

628
00:28:48,960 --> 00:28:50,520
Speaker 3: if you want one of the ones that are really

629
00:28:50,520 --> 00:28:53,240
Speaker 3: fancy on Instagram, sit between eight and ten thousand dollars

630
00:28:53,280 --> 00:28:57,200
Speaker 3: for the day and that adds up so quickly, and

631
00:28:57,280 --> 00:28:59,480
Speaker 3: whilst it might be a value to you, I think

632
00:28:59,480 --> 00:29:01,480
Speaker 3: you really need to get on the same page with

633
00:29:01,520 --> 00:29:03,960
Speaker 3: your partner and say, Okay, we've got this wedding budget.

634
00:29:04,240 --> 00:29:06,840
Speaker 3: What needs to be taken into consideration. How do we

635
00:29:07,200 --> 00:29:09,840
Speaker 3: put an engagement party into the budget that we already have.

636
00:29:10,000 --> 00:29:12,000
Speaker 3: Do we need to have less flowers at the wedding

637
00:29:12,280 --> 00:29:15,000
Speaker 3: and you know, maybe have the really standard drinks package

638
00:29:15,000 --> 00:29:17,520
Speaker 3: as opposed to the premium one we were previously considering,

639
00:29:17,680 --> 00:29:19,920
Speaker 3: because it means that we've got more cash to play

640
00:29:20,000 --> 00:29:22,680
Speaker 3: with for something else, and I think that that's where

641
00:29:22,720 --> 00:29:24,880
Speaker 3: we need to be seeing these things. I don't have

642
00:29:24,920 --> 00:29:27,920
Speaker 3: an opinion on whether you should or shouldn't have engagement parties.

643
00:29:27,960 --> 00:29:30,960
Speaker 3: It's each to their own. And often when things happen

644
00:29:31,440 --> 00:29:34,880
Speaker 3: like weddings, families get involved. So sometimes your family will

645
00:29:34,880 --> 00:29:37,760
Speaker 3: pay for some things, or sometimes you've got these expectations

646
00:29:37,800 --> 00:29:40,640
Speaker 3: from a family member that you will have an engagement party,

647
00:29:40,720 --> 00:29:43,160
Speaker 3: or you will be paying for this, that or the other. Yeah,

648
00:29:43,160 --> 00:29:46,520
Speaker 3: and I think that everybody's situation is so different that

649
00:29:46,600 --> 00:29:48,840
Speaker 3: it's hard to say what's right or what's wrong. And

650
00:29:48,880 --> 00:29:51,280
Speaker 3: the advice here from me is actually just create an

651
00:29:51,360 --> 00:29:54,719
Speaker 3: overall budget and make everything fit into that. So if

652
00:29:54,760 --> 00:29:57,600
Speaker 3: you need to chop and change what that budget looks like,

653
00:29:58,040 --> 00:30:01,080
Speaker 3: you can reallocate funds from a deal different part. So,

654
00:30:01,120 --> 00:30:03,000
Speaker 3: as I said before, you could take some money off

655
00:30:03,000 --> 00:30:05,720
Speaker 3: your florist budget and put it into something else if

656
00:30:05,720 --> 00:30:08,200
Speaker 3: you needed to. But that's how we should be looking

657
00:30:08,200 --> 00:30:11,200
Speaker 3: at weddings, because that is how it gets so wildly

658
00:30:11,240 --> 00:30:14,640
Speaker 3: out of control because we don't actually take into consideration

659
00:30:14,760 --> 00:30:16,000
Speaker 3: every single piece.

660
00:30:15,760 --> 00:30:16,320
Speaker 1: That we need.

661
00:30:16,840 --> 00:30:18,959
Speaker 2: I think as well, engagement parties don't have to be

662
00:30:19,240 --> 00:30:21,320
Speaker 2: as enormous as the wedding. You could just have an

663
00:30:21,360 --> 00:30:24,000
Speaker 2: intimate gathering of your nearest and dearest, and yeah, it

664
00:30:24,040 --> 00:30:24,520
Speaker 2: doesn't have.

665
00:30:24,520 --> 00:30:27,960
Speaker 3: To hundred percent hundred percent, but it could also be

666
00:30:28,080 --> 00:30:31,400
Speaker 3: the flip. It could also be a massive engagement party

667
00:30:31,440 --> 00:30:33,760
Speaker 3: with one hundred plus people, and then you have a

668
00:30:33,800 --> 00:30:36,760
Speaker 3: really small, intimate wedding. And I don't think that that

669
00:30:37,000 --> 00:30:39,080
Speaker 3: is bad. And I've got clients who have had these

670
00:30:39,120 --> 00:30:42,160
Speaker 3: epic engagement parties that have turned into their weddings or

671
00:30:42,200 --> 00:30:45,600
Speaker 3: epic engagement parties that have then turned into them eloping

672
00:30:45,720 --> 00:30:48,760
Speaker 3: and saying ha ha, we actually we actually already we

673
00:30:48,800 --> 00:30:52,160
Speaker 3: actually already got married. Joke's on you, and I think

674
00:30:52,200 --> 00:30:55,280
Speaker 3: it's a really important thing to remember that everyone has

675
00:30:55,320 --> 00:30:58,840
Speaker 3: a different set of values, but everyone can keep a

676
00:30:58,880 --> 00:30:59,600
Speaker 3: clear budget.

677
00:31:03,080 --> 00:31:05,360
Speaker 2: Okay, now for the fun stuff. What good would a

678
00:31:05,360 --> 00:31:08,000
Speaker 2: money podcast be without the pervy bits. It's time for

679
00:31:08,040 --> 00:31:10,960
Speaker 2: money Diary. Strap yourselves in, guys, because this one's a goodie.

680
00:31:11,120 --> 00:31:11,280
Speaker 3: Hi.

681
00:31:11,400 --> 00:31:13,320
Speaker 1: I'm twenty one and ninety percent sorted.

682
00:31:13,920 --> 00:31:18,720
Speaker 5: I would say that my relationship with money is pretty decent.

683
00:31:19,320 --> 00:31:24,040
Speaker 5: I work for myself as a videographer and social media manager,

684
00:31:24,160 --> 00:31:27,360
Speaker 5: so I based my income off invoices, which is kind

685
00:31:27,360 --> 00:31:30,600
Speaker 5: of a rollercoaster of a way to live at twenty one,

686
00:31:30,840 --> 00:31:33,560
Speaker 5: but I love it and money's okay.

687
00:31:33,840 --> 00:31:36,240
Speaker 2: Okay, So now we know what she does. Let's get

688
00:31:36,240 --> 00:31:38,560
Speaker 2: into the juicy stuff. How much does she earn and

689
00:31:38,600 --> 00:31:40,480
Speaker 2: how much is sitting in her bank account right now?

690
00:31:40,600 --> 00:31:43,040
Speaker 5: I don't have a salary, so just basically how much

691
00:31:43,080 --> 00:31:45,160
Speaker 5: I work, how many clients I can bring on board.

692
00:31:45,320 --> 00:31:47,760
Speaker 5: I think in like my last year of high school,

693
00:31:47,760 --> 00:31:50,160
Speaker 5: when I kind of sort of started getting serious about business,

694
00:31:50,400 --> 00:31:52,680
Speaker 5: I profited like thirteen dollars after tax.

695
00:31:53,200 --> 00:31:53,680
Speaker 1: There was a win.

696
00:31:53,920 --> 00:31:56,080
Speaker 5: I was positive, so that was cool, and then it

697
00:31:56,240 --> 00:31:58,920
Speaker 5: just kind of has progressed since I moved to Melbourne

698
00:31:58,960 --> 00:32:01,720
Speaker 5: three years ago, and it was like thirteen thousand, and

699
00:32:01,720 --> 00:32:04,680
Speaker 5: then like thirty and then this year I'm looking to

700
00:32:04,720 --> 00:32:07,440
Speaker 5: do this financial year looking to do about eighty thousand

701
00:32:07,680 --> 00:32:10,280
Speaker 5: pre tax. So sitting in my savings account right now

702
00:32:10,280 --> 00:32:13,720
Speaker 5: between my business and personal is about ten thousand dollars.

703
00:32:13,760 --> 00:32:15,720
Speaker 5: It's not a huge amount of money, but I tend

704
00:32:15,800 --> 00:32:17,719
Speaker 5: to be the person who will just wake up one

705
00:32:17,800 --> 00:32:19,840
Speaker 5: day have like too much money in my account, and

706
00:32:19,880 --> 00:32:21,600
Speaker 5: I'll go to all camera shop and be like literally

707
00:32:21,680 --> 00:32:24,240
Speaker 5: say goodbye to like like eight thousand dollars just because

708
00:32:24,600 --> 00:32:25,680
Speaker 5: I want new camera gear.

709
00:32:27,000 --> 00:32:28,360
Speaker 1: Victoria's going nuts over here.

710
00:32:29,440 --> 00:32:31,120
Speaker 5: So at this point in time, I have about thirty

711
00:32:31,120 --> 00:32:34,400
Speaker 5: three thousand dollars worth of camera equipment to my business,

712
00:32:34,480 --> 00:32:36,760
Speaker 5: which is really it's a cool achievement for me. But

713
00:32:36,800 --> 00:32:38,560
Speaker 5: then I also I think about it and all my

714
00:32:38,600 --> 00:32:41,200
Speaker 5: friends are like going on European holidays and American holidays,

715
00:32:41,240 --> 00:32:42,840
Speaker 5: and I'm like, where's my holiday?

716
00:32:42,960 --> 00:32:45,160
Speaker 1: Like I work, I work and I save, but where's

717
00:32:45,200 --> 00:32:45,680
Speaker 1: my holiday?

718
00:32:45,720 --> 00:32:48,440
Speaker 5: And then my mum sends through like my insurancing and

719
00:32:48,480 --> 00:32:52,040
Speaker 5: she's like insured, gear's like thirty three grand, and I'm like, hmm,

720
00:32:52,400 --> 00:32:52,960
Speaker 5: that might be.

721
00:32:53,120 --> 00:32:54,760
Speaker 1: It might be where my America trip is.

722
00:32:55,120 --> 00:32:58,160
Speaker 2: And what exactly happens to that money after it's deposited

723
00:32:58,240 --> 00:32:59,000
Speaker 2: into her account?

724
00:32:59,240 --> 00:33:02,840
Speaker 5: Everything that I kin't only pay myself two hundred dollars

725
00:33:02,880 --> 00:33:05,280
Speaker 5: a week and then the rest goes to my business.

726
00:33:05,720 --> 00:33:08,440
Speaker 5: Money comes into my account, and when I get an

727
00:33:08,440 --> 00:33:11,960
Speaker 5: invoice paid, it's thirty percent tax and GST. That goes

728
00:33:12,000 --> 00:33:14,920
Speaker 5: to my up account. Then it's thirty percent to my

729
00:33:15,000 --> 00:33:17,680
Speaker 5: business within my combank, and it's thirty percent to my

730
00:33:17,680 --> 00:33:20,920
Speaker 5: personal Then I pay my rent from my personal account

731
00:33:21,080 --> 00:33:23,280
Speaker 5: as that adds up, and then anything I buy for

732
00:33:23,400 --> 00:33:25,640
Speaker 5: my business goes from my business account.

733
00:33:25,720 --> 00:33:28,520
Speaker 2: Okay, then, so how does she feel about investing? Does

734
00:33:28,560 --> 00:33:29,520
Speaker 2: she invest? And if so?

735
00:33:29,760 --> 00:33:31,520
Speaker 1: How I think investing? For me?

736
00:33:31,680 --> 00:33:33,600
Speaker 5: Was never something that I grew up with, Like neither

737
00:33:33,640 --> 00:33:37,160
Speaker 5: of my parents. I did not know anything about investing

738
00:33:37,360 --> 00:33:39,160
Speaker 5: until I went out to look for it.

739
00:33:39,200 --> 00:33:41,240
Speaker 1: So it was never something my mum was.

740
00:33:41,280 --> 00:33:43,800
Speaker 5: Super duper skeptical about it because she never knew, like

741
00:33:43,880 --> 00:33:46,719
Speaker 5: understood it. So I went out and learnt about it,

742
00:33:46,800 --> 00:33:49,440
Speaker 5: learned the basics, and learned like how it works, and

743
00:33:49,520 --> 00:33:52,120
Speaker 5: I just see it as a way to This is

744
00:33:52,160 --> 00:33:54,360
Speaker 5: probably a real dumb way of saying it, but here

745
00:33:54,400 --> 00:33:56,800
Speaker 5: is a way to grow wealth without really doing much.

746
00:33:57,080 --> 00:33:59,760
Speaker 5: It kind of just compounds over time, and that sounds

747
00:33:59,760 --> 00:34:02,400
Speaker 5: like a deal to me. So at this stage, I'm

748
00:34:02,440 --> 00:34:05,280
Speaker 5: currently investing monthly into Rays, so it's just one hundred

749
00:34:05,280 --> 00:34:08,280
Speaker 5: dollars a month. But because I work based off invoices,

750
00:34:08,840 --> 00:34:11,040
Speaker 5: I try to have my expenses set out, and then

751
00:34:11,080 --> 00:34:13,840
Speaker 5: anything above for what comes in that's not in my

752
00:34:13,960 --> 00:34:17,399
Speaker 5: necessary expenses usually just goes into RAYS. So about two

753
00:34:17,440 --> 00:34:19,520
Speaker 5: thousand dollars in RAYS at the minute, but with the

754
00:34:19,560 --> 00:34:22,800
Speaker 5: current financial climate, it could be five hundred dollars tomorrow.

755
00:34:22,840 --> 00:34:25,800
Speaker 5: We'll just hang in there and see how that goes.

756
00:34:26,040 --> 00:34:28,400
Speaker 2: What about debts like credit cards or personal loans?

757
00:34:28,560 --> 00:34:30,360
Speaker 1: So I'm actually super super duper.

758
00:34:30,239 --> 00:34:32,640
Speaker 5: Lucky that the only debt I have is my hex

759
00:34:32,680 --> 00:34:36,239
Speaker 5: debt help debt. I just graduated from UNI last month,

760
00:34:36,239 --> 00:34:38,919
Speaker 5: and I have twenty one thousand dollars in a help debt,

761
00:34:38,960 --> 00:34:40,960
Speaker 5: which I'm really not in a hurry to pay off

762
00:34:40,960 --> 00:34:42,839
Speaker 5: because it's super too below interest and I'd rather put

763
00:34:42,880 --> 00:34:46,680
Speaker 5: my money elsewhere. So growing up, my mum really instilled

764
00:34:46,680 --> 00:34:49,160
Speaker 5: into me that it was really important to be careful

765
00:34:49,200 --> 00:34:51,759
Speaker 5: around credit cards, in saying that I did get a

766
00:34:51,760 --> 00:34:54,399
Speaker 5: credit card when I was eighteen. It had a nine

767
00:34:54,480 --> 00:34:56,840
Speaker 5: hundred dollar limit on it, and I had that because

768
00:34:56,840 --> 00:35:01,040
Speaker 5: I moved from a very small hometown where my family were,

769
00:35:01,200 --> 00:35:03,160
Speaker 5: so it's like eight hours from Melbourne, and moved down

770
00:35:03,200 --> 00:35:05,000
Speaker 5: to Melbourne, and my mom's like, I want you to

771
00:35:05,040 --> 00:35:07,960
Speaker 5: be okay, like if you need something, like it's not

772
00:35:08,000 --> 00:35:09,680
Speaker 5: like you can just trip around the corner and come

773
00:35:09,719 --> 00:35:11,880
Speaker 5: and see us, Like you have this if you need it.

774
00:35:11,920 --> 00:35:13,799
Speaker 5: And I also use it for my business, like a

775
00:35:13,800 --> 00:35:16,440
Speaker 5: lot of the times for clients that I work for,

776
00:35:16,880 --> 00:35:18,880
Speaker 5: I'll have to go and spend five hundred dollars on

777
00:35:18,920 --> 00:35:20,600
Speaker 5: flights that I don't have the money for because they

778
00:35:20,600 --> 00:35:22,400
Speaker 5: ever paid me yet, but they're like, you need to

779
00:35:22,400 --> 00:35:23,799
Speaker 5: get here, you need to do the work, and then

780
00:35:23,880 --> 00:35:25,399
Speaker 5: you can and then your invoice and then I'll pay it.

781
00:35:25,719 --> 00:35:28,040
Speaker 5: So I'll put flights to Tasmania for work.

782
00:35:28,160 --> 00:35:28,640
Speaker 1: Last night.

783
00:35:28,880 --> 00:35:30,759
Speaker 5: It's like four hundred dollars, but I won't see that

784
00:35:30,800 --> 00:35:33,319
Speaker 5: money until probably mid April, so it's like something like

785
00:35:33,360 --> 00:35:36,000
Speaker 5: that's super super handy. And then when I have enough money,

786
00:35:36,040 --> 00:35:37,200
Speaker 5: I'll just pay the credit card off.

787
00:35:37,280 --> 00:35:40,000
Speaker 2: Does she have any good money habits that she's especially

788
00:35:40,040 --> 00:35:40,440
Speaker 2: proud of?

789
00:35:40,560 --> 00:35:42,920
Speaker 5: Yeah, So another good habit that I'm actually really proud

790
00:35:42,920 --> 00:35:46,680
Speaker 5: of is the fact that I allocate for tax, and

791
00:35:46,760 --> 00:35:49,839
Speaker 5: I actually work based off percentages. So say, if it's

792
00:35:49,840 --> 00:35:52,440
Speaker 5: one thousand dollars a month, which only really happens one

793
00:35:52,440 --> 00:35:55,000
Speaker 5: month a year, thirty percent of whatever comes in goes

794
00:35:55,000 --> 00:35:57,440
Speaker 5: to personal, thirty percent goes to business, and thirty percent

795
00:35:57,480 --> 00:35:59,719
Speaker 5: goes to tax. And then my tax sits there and

796
00:35:59,840 --> 00:36:02,600
Speaker 5: to June thirty and I sit down with my account

797
00:36:02,600 --> 00:36:05,279
Speaker 5: and he's like, you need to pay this month money

798
00:36:05,280 --> 00:36:08,600
Speaker 5: for this quarter, and then it pretty much isn't really mine.

799
00:36:09,040 --> 00:36:11,560
Speaker 5: I kind of just allocate it there, doesn't come into

800
00:36:11,640 --> 00:36:13,279
Speaker 5: my account of spending or anything like that. Like at

801
00:36:13,280 --> 00:36:15,400
Speaker 5: the minute, there's there's thirteen grain in there, and I'm like,

802
00:36:15,400 --> 00:36:16,920
Speaker 5: oh sick, look at the things I can buy with

803
00:36:16,960 --> 00:36:20,080
Speaker 5: thirteen grand, but I can't. And then whenever I've made

804
00:36:20,160 --> 00:36:23,680
Speaker 5: all my actual contributions to for my baths and for

805
00:36:24,320 --> 00:36:27,320
Speaker 5: my tax and things like that. Then at that point

806
00:36:27,320 --> 00:36:29,000
Speaker 5: I'll then decide what to do with the money, and

807
00:36:29,000 --> 00:36:31,840
Speaker 5: depending on how much is there, I'll probably go fifty

808
00:36:31,880 --> 00:36:35,560
Speaker 5: percent investment and then probably fifty percent holiday cause why not.

809
00:36:35,719 --> 00:36:37,520
Speaker 2: And what about her worst money habit?

810
00:36:37,680 --> 00:36:41,000
Speaker 5: My worst money habit is probably not really that bad.

811
00:36:41,040 --> 00:36:43,920
Speaker 5: I just have super duba high expectations. So like my

812
00:36:43,960 --> 00:36:48,200
Speaker 5: worst money habit is probably spending a little bit too

813
00:36:48,280 --> 00:36:52,759
Speaker 5: much money on like books and like learning knowledge and

814
00:36:52,800 --> 00:36:54,520
Speaker 5: stuff like I can easily like I try and only

815
00:36:54,560 --> 00:36:56,040
Speaker 5: go once a month, but like that once a month

816
00:36:56,120 --> 00:36:57,960
Speaker 5: can be like two hundred bucks just but then I'll

817
00:36:58,000 --> 00:37:00,839
Speaker 5: read every single book. But like in the big scheme

818
00:37:00,880 --> 00:37:03,319
Speaker 5: of things, what do books other than the knowledge in them?

819
00:37:03,360 --> 00:37:04,680
Speaker 5: They just kind of sit on my shelf.

820
00:37:04,760 --> 00:37:07,760
Speaker 2: How would today's money diarist rate her own relationship with money.

821
00:37:07,600 --> 00:37:09,640
Speaker 5: If she had to give herself a grade based on

822
00:37:09,840 --> 00:37:12,480
Speaker 5: my expectations? If I was to force myself, I'd give

823
00:37:12,520 --> 00:37:16,160
Speaker 5: myself a bee only because I'm like, I know I'm

824
00:37:16,680 --> 00:37:19,600
Speaker 5: pretty decent at it, but I also know how much

825
00:37:19,640 --> 00:37:22,600
Speaker 5: better I could be. This is where the twenty one

826
00:37:22,600 --> 00:37:25,560
Speaker 5: and ninety percent sort it comes from, because I know

827
00:37:25,760 --> 00:37:27,560
Speaker 5: what I want and how to get there, and then

828
00:37:27,600 --> 00:37:29,560
Speaker 5: sometimes I just go out and drink a little bit

829
00:37:29,560 --> 00:37:31,440
Speaker 5: too much alcohol and wake up the next day and

830
00:37:31,480 --> 00:37:34,040
Speaker 5: I'm like, Aha, bugger, that wasn't part of the plan.

831
00:37:34,480 --> 00:37:36,279
Speaker 5: But then we move on and I just work extra

832
00:37:36,320 --> 00:37:37,680
Speaker 5: hard that week to make.

833
00:37:37,560 --> 00:37:38,160
Speaker 1: That money back.

834
00:37:41,600 --> 00:37:43,919
Speaker 2: That is all we have time for today. But before

835
00:37:43,960 --> 00:37:46,800
Speaker 2: we head off, let's quickly wrap the boring but important stuff.

836
00:37:47,120 --> 00:37:49,200
Speaker 2: The advice shed on She's on the Money is general

837
00:37:49,200 --> 00:37:52,560
Speaker 2: in nature and does not consider your individual circumstances. She's

838
00:37:52,600 --> 00:37:55,680
Speaker 2: on the Money exists purely for educational purposes and should

839
00:37:55,680 --> 00:37:58,480
Speaker 2: not be relied upon to make an investment or financial decision.

840
00:37:59,000 --> 00:38:02,200
Speaker 2: And fear not promise. Victoria to Find is an authorized

841
00:38:02,239 --> 00:38:07,120
Speaker 2: representative of Consultant Financial Advisors Propriety Limited ABM sixty five

842
00:38:07,160 --> 00:38:10,319
Speaker 2: double six three seven three double ninety five AFSL two

843
00:38:10,400 --> 00:38:13,120
Speaker 2: three OHO three two three. And thank you, of course

844
00:38:13,120 --> 00:38:15,720
Speaker 2: to Ryan John, our audio king, for whipping our wild.

845
00:38:15,560 --> 00:38:16,839
Speaker 1: Chat into the podcast you love.

846
00:38:17,040 --> 00:38:19,160
Speaker 3: We would love it if you joined our Facebook group,

847
00:38:19,160 --> 00:38:22,200
Speaker 3: where our community shares money tips and tricks every single day,

848
00:38:22,280 --> 00:38:24,960
Speaker 3: free of judgment. Search She's on the Money on Facebook

849
00:38:25,000 --> 00:38:27,560
Speaker 3: and join if Facebook's not your thing. You can also

850
00:38:27,600 --> 00:38:29,720
Speaker 3: find us on Instagram where it She's on the money.

851
00:38:29,800 --> 00:38:30,360
Speaker 1: AUS.

852
00:38:30,520 --> 00:38:32,879
Speaker 2: We are see you next week. Guys, see you soon.