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Speaker 1: She's on the Money. She's on the Money. Hello, and

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Speaker 1: welcome to MythBusters. Nah, just kidding, She's on the Money.

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Speaker 2: The podcast for millennials who want financial freedom. Today's show

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Speaker 2: is brought to you by Up, the Digital bank, designed

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Speaker 2: to help you organize your money and simplify your life.

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Speaker 2: My name is Georgia King, a twenty five year old

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Speaker 2: who is okay with money, but still has heaps to learn. Luckily,

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Speaker 2: I am joined as always by my friend and millennial

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Speaker 2: money expert Victoria to Fine.

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Speaker 1: Hello, Fie Hi.

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Speaker 2: Now, today's show is going to be a little bit of.

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Speaker 1: A fun one.

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Speaker 2: Victoria and I are going to be assuming the roles

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Speaker 2: of Mythbuster's own Adam and Jamie James.

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Speaker 1: I'm Adam, just spelling.

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Speaker 2: A myriad of myths in relation to the world of

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Speaker 2: financial investments. While believing in investing, myths may not physically

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Speaker 2: damage you, like dipping your hand into molten leadwood, just

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Speaker 2: like on MythBusters episode one hundred and thirty six in

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Speaker 2: two thousand and three, it will likely cause significant financial

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Speaker 2: damage to you. Before we get there, though, Let's rain

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Speaker 2: in the excitement and chat money, wins and confessions.

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Speaker 1: Victoria, define, how did you go this week like I.

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Speaker 2: Went it really Wow, she took me through.

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Speaker 3: So this is a pretty good money win, although it

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Speaker 3: could be considered a money loss. Okay, we the she's

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Speaker 3: on the money office has recently moved to a different location,

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Speaker 3: which is great fun times. Moving is always you know,

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Speaker 3: love moving, just getting your stuff, having to unpack, having

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Speaker 3: to repack.

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Speaker 1: It's not exhausting at all. A dream, no, no, no,

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Speaker 1: it's been really energy lessure.

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Speaker 3: We've recently moved and in my old office I had

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Speaker 3: a car park. In the new office, I do.

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Speaker 1: Not have a car park.

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Speaker 3: So my money win is that I now am catching

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Speaker 3: the train to work each day on you. Yes, because

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Speaker 3: parking in the CBD if you get early bird is

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Speaker 3: like twenty five dollars a day. But I drive around

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Speaker 3: the city a lot. I drive out to closence. I'm

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Speaker 3: a financial advisor, I'm.

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Speaker 1: On the road around.

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Speaker 3: It ends up being eighty or ninety dollars a day

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Speaker 3: for parking if I do that. Because you don't get

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Speaker 3: early bird if you come and go from the last

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Speaker 3: so train it is here. We are money win because

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Speaker 3: I think cashing the train is.

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Speaker 1: Obviously cheaper way to get around.

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Speaker 3: Yeah, it's a cheaper way to get around, but maybe

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Speaker 3: money loss because I no longer have a car park

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Speaker 3: of my own.

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Speaker 1: Okay, sure, double whammy.

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Speaker 3: I'll give it to Will you accept it?

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Speaker 1: I'll accept it.

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Speaker 3: Do you have a money win, money loss or a

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Speaker 3: combo for us this week? Gking Okay, it's kind of

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Speaker 3: a combo. It's mainly a confession.

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Speaker 1: You guys.

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Speaker 2: May notice my voice is a little bit husky this

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Speaker 2: week because I did go to a music festival on

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Speaker 2: the weekend, Golden Plains in regional Victoria. Shout out, guys,

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Speaker 2: it was amazing, but shtag not sponsors with George with

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Speaker 2: the Fat. Yes, I really would. Yeah, it was amazing weekend.

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Speaker 2: But as festivals always do, it added up. You got

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Speaker 2: the cost of the ticket, your alcohol, your outfits, all

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Speaker 2: of the things. I don't regret it, but you know,

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Speaker 2: it's forty eight hours of fun.

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Speaker 3: Are you a wild fest will go with though, like,

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Speaker 3: are you going all out with your outfits or are

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Speaker 3: you just more low.

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Speaker 1: Key not extreme? I'm low key.

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Speaker 2: It's like head to the upshop, get some cool stuff,

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Speaker 2: but I'm not like Bindy's all over me and like

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Speaker 2: body paint and nipple tussles and stuff like that.

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Speaker 1: I just feel like my vibe no one needs to

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Speaker 1: see it.

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Speaker 3: Yeah, as someone who cannot relate because I am wildly young.

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Speaker 2: You're not really the festival type, are you.

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Speaker 1: I wish I was. Hey, i'll take it next year.

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Speaker 1: We'll make it a date.

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Speaker 2: I just think I've ruined your time already. Enough of

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Speaker 2: the shenanigans they're Victoria. Let's move right along to the

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

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Speaker 2: on week. Which posts stood out to you this week?

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Speaker 1: Victoria?

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Speaker 3: All Right, I have a favorite post and it is

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Speaker 3: from our friend Sarah, and she posted this this week.

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Speaker 1: She said, first time poster.

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Speaker 3: I have just made a raise account because I have

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Speaker 3: been so impressed and inspired by this group. Plus there's

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Speaker 3: a really great promo code from She's on the money.

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Speaker 1: Really excited to.

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Speaker 3: See how my investment goes. And now that's not sponsored.

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Speaker 3: I'm just really excited to see that during such a

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Speaker 3: tumultuous time in the world and in the investment market, Yes,

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Speaker 3: we have people in our community still seeing the value

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Speaker 3: in investing, in getting into the market and not running away.

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Speaker 4: Ye.

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Speaker 3: So to me, I loved that. Did you have one

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Speaker 3: got stood out to you?

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Speaker 4: I do.

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Speaker 2: Mine is from Jesse, who wrote that she had a

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Speaker 2: small money win. She paid off her after pay and

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Speaker 2: shut her account down.

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Speaker 1: Yes boom.

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Speaker 2: She also bought her first festival ticket today, which I

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Speaker 2: am people on she's one of my people. She was

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Speaker 2: able to do it without denting her savings.

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Speaker 3: Impressive it is.

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Speaker 2: She's also written in that she's sorted all of her

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Speaker 2: budget for the next few months to pay off all

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Speaker 2: of her debts.

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Speaker 1: She's on the right path.

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Speaker 2: And she wouldn't have been heading down the right path

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Speaker 2: if she hadn't heard of our group, and it's made

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Speaker 2: such a difference to her. Thanks guys, she's written there, and.

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Speaker 3: Lots of her friends or our friends. We're all friends.

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Speaker 3: Everyone liked that post, so.

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Speaker 1: I love that.

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Speaker 2: Yes, well done Jesse. And now into the main part

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Speaker 2: of the show. There are so many myths out there

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Speaker 2: about money. It's something that pops up in our Facebook

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Speaker 2: group time and time again. And even in the age

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Speaker 2: of the Internet where we literally have all of the

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Speaker 2: answers at our fingertips, which some times can actually lead

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Speaker 2: to overwhelm, it seems there are still so many myths

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Speaker 2: out there, and frankly, we think it's time to put

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Speaker 2: them to rest for good. Last week, we reached out

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Speaker 2: to the shes on the money community to find the

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Speaker 2: most common investment and money myths, and then we collected

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Speaker 2: our favorites, which today, Victoria is going to help us

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Speaker 2: confirm or deny that I am now when it comes

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Speaker 2: to money, just like religion and politics, everyone has an opinion.

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Speaker 2: So instead of listening to what Janine's sisters, unqualified, untrained,

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Speaker 2: unfinancially literate, Uncle Greg thinks, let's make the most of

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Speaker 2: our very own financial expert to get.

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Speaker 1: To the bottom of it. Victoria.

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Speaker 2: Our first question of the day comes from Fern, who

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Speaker 2: wants us to bust the myth that investing is the

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Speaker 2: same as gambling myth or myth busted.

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Speaker 3: I love that question because I get it so often.

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Speaker 3: And I also hate that question because I get it

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Speaker 3: so often I'm hearing and it's something that we hear

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Speaker 3: time and time again from a generation that have experienced

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Speaker 3: significant loss in the share market. And the first thing

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Speaker 3: to preface here is if someone lost money in the

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Speaker 3: share market, it is because they pulled money out of

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Speaker 3: shares when they were not performing well. If we look

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Speaker 3: back to the GFC in two thousand and nine. We

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Speaker 3: see the people who lost the most money were those

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Speaker 3: people who pulled their money out of their investments because

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Speaker 3: often they were panic selling, or they were in a

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Speaker 3: situation where they actually couldn't afford to keep their investments.

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Speaker 3: And whilst they were panic selling, there were a lot

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Speaker 3: of people who were in positions where they were over

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Speaker 3: committed to an investment, so therefore they actually didn't have

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Speaker 3: the capital to back up what they needed to do

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Speaker 3: when the market was falling, so they had to pull

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Speaker 3: their money out. So people lost money there. If you

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Speaker 3: had invested before the GFC and remained invested, your money

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Speaker 3: came back, whilst not quickly, it did take a while

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Speaker 3: for the market to recover. When it did recover, your

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Speaker 3: shares outperformed anyone else's shit because you experienced this lull.

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Speaker 3: A lot of people purchased while the market was off

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Speaker 3: and then made a lot of money because those shares

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Speaker 3: were essentially discounted. And whilst I'm not going to get

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Speaker 3: into the semantics of what happened in the GFC, I mean,

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Speaker 3: if people are interested, we can do a.

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Speaker 1: Whole podcast on it.

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Speaker 3: I would love that, but I don't think that that's

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Speaker 3: what shees on the money is about. I think we

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Speaker 3: need to understand that people who have negative experiences are

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Speaker 3: more likely to talk about it predominantly than people who

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Speaker 3: have positive experiences exactly. But good investment is so boring

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Speaker 3: it's not worth talking about. So to actually answer that

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Speaker 3: question about investing and gambling, we actually need to understand

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Speaker 3: the difference. So investing is committing money or capital to

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Speaker 3: something with the expectation of obtaining income or profit or both.

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Speaker 3: And as you guys know, I love it when I

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Speaker 3: get both of those things. But what this definition actually

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Speaker 3: lacks is the real difference between investing and gambling, and

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Speaker 3: that is research. Gambling has no basis, it has no backing.

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Speaker 3: It is you taking a punt ye making a pure chance,

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Speaker 3: pure chance that this will happen. And whilst a lot

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Speaker 3: of people will jump in and say, oh, well, but

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Speaker 3: I've done all my stats on football, I've done all

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Speaker 3: of this and I completely understand it. That's why I'm

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Speaker 3: betting on this. I'm not saying that you didn't do

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Speaker 3: your research. But when it comes to investment, we are

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Speaker 3: far more comprehensive and have research to back us and

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Speaker 3: past performance to guide us. Albeit past performance is not

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Speaker 3: a reliable predicta a future performance financial advisor. But many

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Speaker 3: investors think that if you're investing in the stock market,

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Speaker 3: it's like going and blowing all your money in a casino.

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Speaker 3: They throw it money at a stock or into a

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Speaker 3: basket of stocks based on rumors or tips or something

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Speaker 3: that they believe that they heard at a barbecue one time,

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Speaker 3: and they don't do a lot of research. And that

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Speaker 3: is where you lose money at your casino or in

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Speaker 3: your share market. But for the amount of people that

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Speaker 3: are doing their investment legitimately and putting themselves in a

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Speaker 3: position where they have done their research and understand it,

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Speaker 3: or spoken to a financial advisor, chosen a product that

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Speaker 3: actually has a really good research house behind it or

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Speaker 3: investment team behind it. You are investing. You are not

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Speaker 3: actually gambling. You are not here to take a chance.

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Speaker 3: We are here to put money in a place where

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Speaker 3: we know it will grow over the long term. Like

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Speaker 3: we can say with certainty that if we look back

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Speaker 3: on the Australian share market over the last thirty years,

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Speaker 3: any thirty year block in the history of the Australian

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Speaker 3: share market has never had a negative return. And I

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Speaker 3: think that that is something that is really impressive, but

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Speaker 3: also worthy of consideration when we start talking about investment. Like,

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Speaker 3: with investment, you never lose if you're invested for the

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Speaker 3: long term, exactly.

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Speaker 2: That's what you always say. The longer you're in there,

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Speaker 2: the more beneficial it's going to be. You're not just

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Speaker 2: in it for two years or whatever. That's exactly exactly.

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Speaker 3: And I think that it is one of those things

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Speaker 3: where it is so easy and so flippant to say, ah,

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Speaker 3: investing and gambling are the same. That's fine, and to that, well,

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Speaker 3: actually they're not the same thing. Understand the definition of

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Speaker 3: both of those things before you wildly go scaring other people,

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Speaker 3: because it's really easy to say that it's gambling. And

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Speaker 3: the reason I hear so many people saying it's gambling,

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Speaker 3: especially when I'm talking to them face to face, is

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Speaker 3: a lack of education and they are scared of things

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Speaker 3: that they don't understand. And if you don't understand it,

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Speaker 3: you are more likely to deny something than accept it

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Speaker 3: as Oh, you know what, Victoria, I hear you're talking

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Speaker 3: about investment.

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Speaker 1: I'm interested to learn more.

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Speaker 3: A lot of people have too much pride to say, hey,

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Speaker 3: I don't really know what you're talking about, could I

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Speaker 3: understand more? Could you tell me a little bit more?

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Speaker 3: They just go No. Investing is like gambling. It's throwing money.

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Speaker 3: It's something that you can't guarantee or return for another thing.

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Speaker 3: G to note on the investment versus gambling is that

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Speaker 3: often with gambling, you're gambling on one specific thing. You

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Speaker 3: are going and you are betting on that AFL match.

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Speaker 3: You are going and you are betting on a horse race.

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Speaker 3: You are going down, and you know putting however much

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Speaker 3: money you're putting into sports bet We talk about investment

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Speaker 3: all the time, and one of the most important things

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Speaker 3: for me about investment is being well diversified, not putting

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Speaker 3: all your eggs in one bait. And what is happening

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Speaker 3: with gambling is you are putting all of your eggs

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Speaker 3: in one really risky bucket instead of creating a portfolio

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Speaker 3: as shares that diversifies your risk to make sure that

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Speaker 3: if one thing isn't performing well, something else is. There's

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Speaker 3: also a lot of loss associated with gambling because it's

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Speaker 3: win or not. Whereas a share, once you purchase a share,

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Speaker 3: it might decrease in value, but you do not lose

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Speaker 3: money unless you sell your share whilst it's valued at less.

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Speaker 3: So if you look at your investment portfolio and you've

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Speaker 3: got ten shares worth ten dollars, and your investment portfolio

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Speaker 3: is worth one hundred dollars in total, and then the

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Speaker 3: next day each of your shares has dropped by ten

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Speaker 3: percent and your portfolio is now worth ninety dollars, you

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Speaker 3: actually still.

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Speaker 1: Have ten shares.

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Speaker 3: You haven't lost anything technically except the.

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Speaker 1: Value of your portfolio.

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Speaker 3: And I get quite passionate about this because, especially right now,

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Speaker 3: we are seeing crazy things happen in our share market,

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Speaker 3: crazy things happening with our health.

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Speaker 2: All of that, a lot of people are wondering if

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Speaker 2: they should pull out exactly.

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Speaker 3: There are so many questions around, oh my gosh, I've

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Speaker 3: lost so much in the share market. You haven't actually

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Speaker 3: lost anything unless you sell your investment and you exit

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Speaker 3: the investment market.

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Speaker 2: Yeah, so gambling is not the same as investing.

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Speaker 1: That is a myths.

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Speaker 2: Cassina wants us to bust the myth that you will

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Speaker 2: lose all of your money when the market drops, and

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Speaker 2: Tory wants us to bust the myth that coronavirus will

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Speaker 2: leave her with no superannuation.

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Speaker 3: That's a great question, gee, And because I am Randy

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Speaker 3: and love Durant, I've already answered that. And the answer

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Speaker 3: there is that when the market drops, you aren't actually

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Speaker 3: losing money at that point in time. Please don't get

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Speaker 3: me wrong. There are a lot of semantics that need

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Speaker 3: to be taken into consideration here, but you lose money

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Speaker 3: when you take your money out of the share market

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Speaker 3: and you sell your shares. You are not going to

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Speaker 3: lose your money just because the market dropped, but you

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Speaker 3: will if it drops. You panic, you try and get

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Speaker 3: out or change your investment strategy, or you go into

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Speaker 3: your super fund and you go, oh my gosh, my

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Speaker 3: aggressive share portfolio within my superannuation has dropped in value.

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Speaker 3: I'm going to switch it to conservative because I want

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Speaker 3: to quote preserve what I've got left.

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Speaker 4: Yeah.

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Speaker 3: That is actually you selling shares from your aggressive portfolio

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Speaker 3: to convert it to cash, to hold a cash investment

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Speaker 3: instead of holding shares, And that means that you are

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Speaker 3: choosing an investment. And we know that at this point

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Speaker 3: in time, cash is returning that one and a half percent,

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Speaker 3: which is not much at all, and you'd be lucky

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Speaker 3: in any high interest savings account nowadays to even cap

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Speaker 3: it too, Like you're not getting two percent nowadays in

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Speaker 3: savings accounts. That's what cash is performing at You are

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Speaker 3: swapping the opportunity to get your average of seven and

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Speaker 3: a half percent over your ten year period for your

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Speaker 3: one percent in cash. And if that's what you want

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Speaker 3: to do, you are more welcome to go ahead and

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Speaker 3: sell up and go into cash. But what we want

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Speaker 3: here is people to understand what it actually means to

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Speaker 3: sell in a falling market.

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Speaker 2: All right, So in summary, myth busted. Emma and Acacia

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Speaker 2: want us to bust the myth that buying property is

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Speaker 2: safer than purchasing shares, which I've heard a lot as

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Speaker 2: well talk.

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Speaker 1: Us through at Victoria. Is it a myth? Is it

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Speaker 1: a myth? Bustard, It is a myth?

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Speaker 3: Because this is a myth bust They're all going to beth.

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Speaker 3: I've got a feeling.

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Speaker 1: Yeah.

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Speaker 3: However, I think that this is a really impressive one

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Speaker 3: because it is such a common thing for people to say.

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Speaker 3: We see our parents having purchased property, and a lot

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Speaker 3: of our parents have made money by purchasing property because

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Speaker 3: when they were growing up, they were able to purchase

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Speaker 3: their first home for seventeen thousand dollars if they held

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Speaker 3: onto it until twenty twenty, they're selling it from one

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Speaker 3: point two to two point five million dollars and that

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Speaker 3: it's sweet, it's happy days. Maybe along that period of

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Speaker 3: time they also picked up a couple of investment properties,

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Speaker 3: which to them would have been no brainers because the

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Speaker 3: entry point for those properties was a lot easier than

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Speaker 3: it is for you r Eye today Georgia, because their

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Speaker 3: pre existing properties had a lot of equity in them,

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Speaker 3: which meant they were valued a lot more and they

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Speaker 3: could use those properties as leverage to get into other properties.

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Speaker 3: And when you have an asset that is increasing in

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Speaker 3: value like property did over the thirty years that we

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Speaker 3: have had that property booming, it was a no brainer.

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Speaker 3: That is now no longer how the property market is performing.

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Speaker 3: And it's important to go back to potentially listening to

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Speaker 3: our investment episodes where I go through the four different

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Speaker 3: investment assets that we can hold in Australia. But no

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Speaker 3: property is technically not a safer purchase than shares. Shares

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Speaker 3: actually have a higher rate of return on average than property.

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Speaker 3: But property is the Australian dream right like we can

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Speaker 3: see it. We can touch it, we can taste it.

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Speaker 3: We can go and eat a pizza on the front

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Speaker 3: lawn of that property should we wish to. But having

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Speaker 3: an investment portfolio is a really private hidden You don't

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Speaker 3: see it. You can't see it, you can't touch taste it.

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Speaker 1: It's not that.

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Speaker 3: No, you can't have your friends over on your patio

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Speaker 3: to celebrate with a bottle of champagne, because I'd be

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Speaker 3: pretty annoyed if I showed my friends my share portfolio

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Speaker 3: on my laptop and they got champagne on my keyboard.

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Speaker 3: I just feel like it is just not as tangible

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Speaker 3: as property, and we as humans are going to gravitate

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Speaker 3: to things that we can tangibly see.

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Speaker 1: Absolutely, because it's also.

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Speaker 3: Very hard for us mentally to comprehend how shares perform

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Speaker 3: and what that means. And there's more of an emotional

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Speaker 3: rollercoaster associated with shares because their value is calculated on

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Speaker 3: a daily basis. So instead of having a property where

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Speaker 3: you know you purchased that property for four hundred thousand

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Speaker 3: dollars and there's hearsay around what it's now worth, like

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Speaker 3: maybe it's worth five hundred thousand dollars if we're lucky

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Speaker 3: but we're not sure. But Barry down the road recently

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Speaker 3: sold his property and he also has three bedrooms and

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Speaker 3: it's sold for the you know, four seventy, so yours

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Speaker 3: be worth the same. There is actually no valuation methodology

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Speaker 3: on property until you.

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Speaker 1: Actually sell that property.

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Speaker 3: Yeah, and even when you sell that property, your property

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Speaker 3: is only ever worth what someone is going to purchase

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Speaker 3: it for if you have a buyer. So I think

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Speaker 3: it's very scary when you look at what shares do

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Speaker 3: because the volatility of them is really visible. It's not

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Speaker 3: to say that volatility doesn't exist in the property market,

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Speaker 3: we just can't see it as easily as logging into

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Speaker 3: our share trading platform.

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Speaker 2: Yeah, and I guess there's that feeling that you still

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Speaker 2: have your house when you know when the property market's

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Speaker 2: going down, you still got it exactly, Yeah.

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Speaker 3: Exactly, And that can be twofold. So sometimes it's really

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Speaker 3: nice to know that you still have an asset yep

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Speaker 3: in saying that if you have a share that's worthless money,

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Speaker 3: you don't not have that share anymore. But then on

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Speaker 3: the flip side, you also have people where what if

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Speaker 3: the property market goes off, what if interest rates increase

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Speaker 3: a property is a very big commitment. With shares, you're

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Speaker 3: going into an asset where you are purchased seeing a

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Speaker 3: direct share, and you usually whilst you can, you usually

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Speaker 3: just go straight in and purchase this asset with cash

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Speaker 3: you already have. You do not do that with property

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Speaker 3: unless you've saved your four hundred thousand dollars. So if

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Speaker 3: you are purchasing a property, you're putting yourself at a

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Speaker 3: lot of risk and in a lot of debt that

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Speaker 3: if the market performs differently and the interest rates rise,

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Speaker 3: can you still afford that or are you going to

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Speaker 3: be forced to sell and potentially make a loss. So

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Speaker 3: I think that we really need to consider all of

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Speaker 3: the ramifications that exist around property, and that's something I'm

404
00:18:29,600 --> 00:18:31,720
Speaker 3: really passionate about. I'm not saying it's a bad asset.

405
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Speaker 3: It is a really great asset, and property does make

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Speaker 3: up a very important part of a well diversified investment portfolio,

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Speaker 3: but it does not mean that it is the be all,

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Speaker 3: end all, and only being in property means you're not

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Speaker 3: very well diversified.

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Speaker 2: So it's definitely not safer than purchasing shares.

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Speaker 3: No, it's not, but I can absolutely see the merits

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Speaker 3: of wanting a physical.

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Speaker 2: Asset, So I guess would say that that is a

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Speaker 2: myth Bustin moving along to the next one, Jessica wants

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Speaker 2: us to bust the myth that Fred's uncle's cousins sister

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Speaker 2: lost all their money in the Great Crash of nineteen

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Speaker 2: seventy four, and therefore investing means you too will eventually

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Speaker 2: lose all of your money.

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Speaker 1: We have kind of touched on this.

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Speaker 3: Oh, look, friend's uncles, cousin, sister lost all their money,

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Speaker 3: so it must be true. I don't even know if

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Speaker 3: the semantics of that family tree actually add up ge

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Speaker 3: but if they do and that is true, I'm interested

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Speaker 3: to know where that came from. So people's opinions are

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00:19:27,320 --> 00:19:29,960
Speaker 3: always based on their experience, we need to make sure

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Speaker 3: we're taking those things into consideration when taking on the

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Speaker 3: person's When taking a person's opinion, one of my favorite

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Speaker 3: books is called The Richest Man in Babylon, and it

429
00:19:41,160 --> 00:19:44,040
Speaker 3: is the most boring investment book that you will ever read,

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Speaker 3: but it is my favorite. And a quote from that

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Speaker 3: book is, would you take advice on buying diamonds from

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Speaker 3: a bricklayer?

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Speaker 1: You wouldn't?

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Speaker 3: You wouldn't. I so why are you taking Fred's uncle's, cousin,

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00:19:56,080 --> 00:20:00,640
Speaker 3: sister's advice on shares or on investments if aren't an

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Speaker 3: investment advisor. So I'm not saying don't talk to people

437
00:20:04,560 --> 00:20:08,359
Speaker 3: who have knowledge and insight in this area, but always

438
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Speaker 3: take people's advice with a grain of salt, because whilst

439
00:20:12,000 --> 00:20:15,080
Speaker 3: their experience is really valid for you to learn, it

440
00:20:15,119 --> 00:20:18,600
Speaker 3: doesn't necessarily mean that they are right or correct. It

441
00:20:18,640 --> 00:20:21,399
Speaker 3: could just mean that they are wildly opinionated and you

442
00:20:21,480 --> 00:20:23,240
Speaker 3: need to make sure that you are making the right

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Speaker 3: decision for you. In saying that people who quote eventually

444
00:20:27,480 --> 00:20:30,560
Speaker 3: lose all their money in investment, it's not really a thing.

445
00:20:30,760 --> 00:20:33,120
Speaker 3: You lose all your money if you sell out of

446
00:20:33,200 --> 00:20:36,360
Speaker 3: the shares that you own. It's not to say gee

447
00:20:36,520 --> 00:20:40,800
Speaker 3: that there are not bad investments. So sometimes organizations do

448
00:20:40,880 --> 00:20:43,879
Speaker 3: go bust, Sometimes they go into liquidation and they have

449
00:20:43,960 --> 00:20:48,680
Speaker 3: to shut down. We as investment advisors have a job

450
00:20:48,720 --> 00:20:51,080
Speaker 3: to make sure that that risk is mitigated, and that

451
00:20:51,200 --> 00:20:55,159
Speaker 3: is why we want really well diversified investment portfolios, so

452
00:20:55,200 --> 00:20:57,480
Speaker 3: that if something bad does happen to one of your shares,

453
00:20:57,560 --> 00:21:00,479
Speaker 3: that's okay because you've got another ten different eggs in

454
00:21:00,520 --> 00:21:03,520
Speaker 3: your different buckets. So I think it's really important to

455
00:21:03,560 --> 00:21:07,440
Speaker 3: take into consideration what that actually means. And if Fred's uncles, cousin,

456
00:21:07,560 --> 00:21:10,840
Speaker 3: sister lost all of their money, ask them how, ask

457
00:21:10,920 --> 00:21:13,160
Speaker 3: them why? Why do you say that? What is your

458
00:21:13,200 --> 00:21:16,000
Speaker 3: experience here? How does that impact me? What could I

459
00:21:16,040 --> 00:21:18,320
Speaker 3: do to avoid that? And if they just go, oh,

460
00:21:18,480 --> 00:21:21,359
Speaker 3: just don't invest, maybe look for another opinion.

461
00:21:21,680 --> 00:21:26,600
Speaker 2: So that's Smith busted. Next question, Diane wants to bust

462
00:21:26,600 --> 00:21:29,200
Speaker 2: the myth that you need a stockbroker to buy shit.

463
00:21:29,440 --> 00:21:32,359
Speaker 3: Diane is correct, You do not need a stockbroker to

464
00:21:32,440 --> 00:21:35,280
Speaker 3: buy shares, or do you need a financial advisor?

465
00:21:35,640 --> 00:21:36,040
Speaker 1: You do it.

466
00:21:36,119 --> 00:21:39,600
Speaker 3: Albeit, g we do recommend getting financial advice, yep, because

467
00:21:39,640 --> 00:21:43,360
Speaker 3: it takes into consideration your holistic financial life. So they're

468
00:21:43,359 --> 00:21:46,000
Speaker 3: not just looking at how to invest, they're looking at

469
00:21:46,040 --> 00:21:48,280
Speaker 3: whether investment is actually a good option for you at

470
00:21:48,280 --> 00:21:50,400
Speaker 3: this point in time. Like maybe you've got a mortgage

471
00:21:50,440 --> 00:21:52,399
Speaker 3: and it's better for you to pay that off depending

472
00:21:52,440 --> 00:21:54,639
Speaker 3: on what the interest rate on that mortgage is. Or

473
00:21:54,680 --> 00:21:56,679
Speaker 3: maybe you've got children that you need to be saving

474
00:21:56,680 --> 00:21:59,000
Speaker 3: school fees for, or maybe you've got something.

475
00:21:58,840 --> 00:21:59,960
Speaker 1: Going across your whole situation.

476
00:22:00,040 --> 00:22:03,760
Speaker 3: Exactly, they're across your whole situation, and investment isn't just

477
00:22:03,800 --> 00:22:06,640
Speaker 3: about going and buying some shares. Investment is about making

478
00:22:06,680 --> 00:22:08,359
Speaker 3: sure that that is the right thing for you to

479
00:22:08,440 --> 00:22:11,479
Speaker 3: do at that point in time. So, no, you do

480
00:22:11,520 --> 00:22:14,160
Speaker 3: not need a stockbroker to buy shares. You can start

481
00:22:14,200 --> 00:22:17,480
Speaker 3: investing on your own quite easily. You are going to

482
00:22:17,560 --> 00:22:20,399
Speaker 3: need to do some research on making sure that you

483
00:22:20,440 --> 00:22:22,800
Speaker 3: are investing through a platform that you know and trust

484
00:22:22,840 --> 00:22:25,520
Speaker 3: and gives you access to the investments that you want

485
00:22:25,560 --> 00:22:28,199
Speaker 3: to access, that gives you access to something that is

486
00:22:28,240 --> 00:22:32,120
Speaker 3: able to be well diversified and doesn't have a ridiculous

487
00:22:32,280 --> 00:22:35,160
Speaker 3: share brokerage. And I think that that's something that's really

488
00:22:35,200 --> 00:22:38,600
Speaker 3: important to take into consideration because if you take our advice,

489
00:22:38,640 --> 00:22:40,400
Speaker 3: which we have said, you know, go into the market,

490
00:22:40,560 --> 00:22:43,280
Speaker 3: invest five hundred dollars each and every single month, or

491
00:22:43,280 --> 00:22:46,480
Speaker 3: whatever amount that we want you to invest, it's very

492
00:22:47,080 --> 00:22:50,720
Speaker 3: important to take into consideration brokerage fees because if you're

493
00:22:50,760 --> 00:22:54,560
Speaker 3: paying thirty three dollars per transaction to purchase shares, that

494
00:22:54,600 --> 00:22:58,440
Speaker 3: actually needs to be taken into consideration. With your share

495
00:22:58,440 --> 00:23:02,720
Speaker 3: purchase price, that's thirty three dollars, you're now five hundred

496
00:23:02,760 --> 00:23:05,960
Speaker 3: dollars worth of shares needs to make before it's breaking even,

497
00:23:06,040 --> 00:23:08,239
Speaker 3: and then it needs to perform above and beyond that

498
00:23:08,400 --> 00:23:11,040
Speaker 3: to actually get you a return. So I think we

499
00:23:11,160 --> 00:23:13,440
Speaker 3: need to take that into consideration. So if you're going

500
00:23:13,440 --> 00:23:15,560
Speaker 3: to look at share trading platforms and going to go

501
00:23:15,600 --> 00:23:19,080
Speaker 3: down a DIY route, make sure you understand brokerage and

502
00:23:19,200 --> 00:23:22,639
Speaker 3: any other fees that exist, and also exit fees. So

503
00:23:22,680 --> 00:23:25,320
Speaker 3: if you want to take your money off their platform,

504
00:23:25,359 --> 00:23:27,480
Speaker 3: how much is that going to cost you? But then

505
00:23:27,520 --> 00:23:29,520
Speaker 3: on top of that, there are a heap of really

506
00:23:29,640 --> 00:23:33,280
Speaker 3: good just micro investing platforms out there, and I don't

507
00:23:33,320 --> 00:23:36,679
Speaker 3: have any that I specifically recommend because it's going to

508
00:23:36,720 --> 00:23:39,040
Speaker 3: be really based on your personal situation and I can't

509
00:23:39,080 --> 00:23:42,960
Speaker 3: give you guys personal financial advice via a podcast. However,

510
00:23:43,600 --> 00:23:45,560
Speaker 3: just do a quick Google search and a heave of

511
00:23:45,600 --> 00:23:48,560
Speaker 3: them come up. Understand why you would invest in them,

512
00:23:48,640 --> 00:23:52,400
Speaker 3: Understand what their underlying investment strategy is, their fees, their

513
00:23:52,480 --> 00:23:56,240
Speaker 3: terms and conditions, and always always always read a PDS

514
00:23:56,359 --> 00:23:59,760
Speaker 3: or a product disclosure statement before making any decision.

515
00:24:00,200 --> 00:24:03,080
Speaker 2: Alrighty be So I guess once again that was myth busting.

516
00:24:04,400 --> 00:24:07,080
Speaker 2: Now Amanda wants us to bust the myth that all

517
00:24:07,119 --> 00:24:09,120
Speaker 2: it will take for gen y to purchase a home

518
00:24:09,240 --> 00:24:12,320
Speaker 2: is to stop traveling and eating smashed avo on toast.

519
00:24:12,640 --> 00:24:15,280
Speaker 3: Oh that's not a myth, that's reality. In fact, all

520
00:24:15,320 --> 00:24:19,040
Speaker 3: of our problems come from smashed avocado.

521
00:24:18,560 --> 00:24:19,080
Speaker 1: They do you.

522
00:24:19,240 --> 00:24:22,600
Speaker 3: Yeah, absolutely, I love that because it is such a

523
00:24:22,600 --> 00:24:27,240
Speaker 3: flippant way of calling us underprepared, and a really flippant

524
00:24:27,280 --> 00:24:30,240
Speaker 3: way of telling us that we are irresponsible with our money.

525
00:24:30,280 --> 00:24:32,840
Speaker 1: That so patronizing. It is so patronizing, and it is

526
00:24:32,920 --> 00:24:33,800
Speaker 1: just so rude.

527
00:24:33,880 --> 00:24:34,080
Speaker 2: Yeah.

528
00:24:34,080 --> 00:24:37,080
Speaker 3: And whilst I think it is quite funny in theory,

529
00:24:37,119 --> 00:24:39,800
Speaker 3: because don't get me wrong, our generation quite clearly loves

530
00:24:39,800 --> 00:24:42,480
Speaker 3: a good smash davot and a note last eh. However,

531
00:24:42,840 --> 00:24:46,199
Speaker 3: we are in a world where purchasing a home is

532
00:24:46,320 --> 00:24:48,880
Speaker 3: not nearly as accessible as it was thirty years ago,

533
00:24:49,000 --> 00:24:52,600
Speaker 3: and it harped on about this before. Getting into property

534
00:24:52,800 --> 00:24:57,200
Speaker 3: is not easy nowadays. It takes a twenty percent deposit,

535
00:24:57,320 --> 00:25:00,399
Speaker 3: which looks a lot like to most millennials, more than

536
00:25:00,440 --> 00:25:03,400
Speaker 3: one hundred thousand dollars in savings. And by the time

537
00:25:03,440 --> 00:25:06,000
Speaker 3: a lot of millennials save up one hundred thousand dollars,

538
00:25:06,000 --> 00:25:07,920
Speaker 3: the bar has changed. Now you need one hundred and

539
00:25:07,920 --> 00:25:11,400
Speaker 3: twenty thousand dollars, and then people aren't taking into consideration

540
00:25:11,520 --> 00:25:15,400
Speaker 3: the fees and charges that getting a mortgage includes. So

541
00:25:15,440 --> 00:25:18,040
Speaker 3: I think that it is a very easy and flippant

542
00:25:18,080 --> 00:25:21,879
Speaker 3: way for past generations to essentially throw shade at us

543
00:25:21,920 --> 00:25:23,719
Speaker 3: and say, well, oh, you guys don't care about your

544
00:25:23,720 --> 00:25:27,000
Speaker 3: financial futures. But if you look at the statistics, Gen

545
00:25:27,160 --> 00:25:31,960
Speaker 3: hy are the most financial literate generation to exist. Exactly

546
00:25:32,200 --> 00:25:34,639
Speaker 3: it is, It is very true, and we are the

547
00:25:34,760 --> 00:25:38,760
Speaker 3: most money conscious generation to exist. We're also in a

548
00:25:38,800 --> 00:25:41,000
Speaker 3: whole heap of debt, but that is not their point.

549
00:25:41,040 --> 00:25:43,320
Speaker 3: Where we are aware of it, and we are making

550
00:25:43,359 --> 00:25:47,000
Speaker 3: decisions based on our personal situations. We are often setting

551
00:25:47,000 --> 00:25:49,920
Speaker 3: goals that aren't based on property, and I think that

552
00:25:49,920 --> 00:25:52,040
Speaker 3: that blows the minds of a lot of people who

553
00:25:52,119 --> 00:25:55,480
Speaker 3: created their wealthy property. So we are now talking about

554
00:25:55,480 --> 00:25:59,560
Speaker 3: purchasing chares or saving or traveling, or we have other goals.

555
00:25:59,600 --> 00:26:03,800
Speaker 3: And whilst we have a yolow mentality, it is actually

556
00:26:04,280 --> 00:26:06,959
Speaker 3: not an entitled thing to have. It's I would like

557
00:26:07,040 --> 00:26:09,800
Speaker 3: to enjoy my life, ye, instead of commit to a

558
00:26:09,840 --> 00:26:12,439
Speaker 3: mortgage here in now, because you can buy a home

559
00:26:12,600 --> 00:26:14,879
Speaker 3: five years from now and pay it off and we

560
00:26:14,920 --> 00:26:17,000
Speaker 3: can do that. There doesn't actually need to be this

561
00:26:17,080 --> 00:26:21,679
Speaker 3: sense of urgency to get into property asap. However, I

562
00:26:21,680 --> 00:26:24,520
Speaker 3: think it is really unfair that we are being lumped

563
00:26:24,560 --> 00:26:28,000
Speaker 3: into a situation where previous generations are saying, look, it's

564
00:26:28,000 --> 00:26:31,040
Speaker 3: because you're traveling too much and you don't care about anything,

565
00:26:31,160 --> 00:26:33,840
Speaker 3: and you guys are eating too much smutched avocado. It's

566
00:26:33,840 --> 00:26:37,000
Speaker 3: a terrible mentality to have about us. Yeah, because we

567
00:26:37,040 --> 00:26:39,439
Speaker 3: are one of the smartest generations to ever exist.

568
00:26:39,720 --> 00:26:44,639
Speaker 2: Okay, so that was another myth busted. Okay, next question.

569
00:26:44,720 --> 00:26:47,439
Speaker 2: Victoria Erica wants us to bust the myth that you

570
00:26:47,520 --> 00:26:50,120
Speaker 2: don't need to stress when you're thirty years from retirement.

571
00:26:50,400 --> 00:26:53,280
Speaker 3: Oh yes, you do, you really really do. Tell us

572
00:26:53,320 --> 00:26:55,639
Speaker 3: what Whilst you don't need to stress now, we do

573
00:26:55,760 --> 00:26:58,879
Speaker 3: need to be making retirement a priority. And this is

574
00:26:58,920 --> 00:27:01,160
Speaker 3: something that I have had had a lot of conversations

575
00:27:01,200 --> 00:27:05,760
Speaker 3: today actually about, and that is that thirty years from now,

576
00:27:06,320 --> 00:27:09,320
Speaker 3: you are going to have so many financial commitments and

577
00:27:09,359 --> 00:27:11,960
Speaker 3: you are going to be in a position where saving

578
00:27:12,000 --> 00:27:15,600
Speaker 3: the amount that is necessary to save to reach retirement

579
00:27:15,680 --> 00:27:19,560
Speaker 3: comfortably is going to be significantly higher than what it

580
00:27:19,800 --> 00:27:22,479
Speaker 3: is if you started planning for it today, and I

581
00:27:22,640 --> 00:27:25,240
Speaker 3: use this example all the time, but I want to

582
00:27:25,320 --> 00:27:28,199
Speaker 3: keep using it because I give you consistency and hopefully

583
00:27:28,240 --> 00:27:30,400
Speaker 3: one day at a barbe you can whip it out

584
00:27:30,440 --> 00:27:31,800
Speaker 3: and tell people that you know this.

585
00:27:31,920 --> 00:27:33,040
Speaker 1: Wise lady told me.

586
00:27:33,040 --> 00:27:35,639
Speaker 3: A wise lady once told me that if I was

587
00:27:35,680 --> 00:27:38,840
Speaker 3: twenty one and I invested five hundred dollars on a

588
00:27:38,880 --> 00:27:42,959
Speaker 3: monthly basis at retirement, I would have an investment portfolio

589
00:27:43,080 --> 00:27:45,880
Speaker 3: worth one point two million dollars.

590
00:27:46,440 --> 00:27:48,040
Speaker 1: And that is a lot of money.

591
00:27:48,440 --> 00:27:51,240
Speaker 3: And we start talking about okay, well, that's five hundred

592
00:27:51,240 --> 00:27:53,600
Speaker 3: dollars a month when you're twenty one. Once you are

593
00:27:53,640 --> 00:27:56,680
Speaker 3: in your forties, that looks more like eight, nine, ten

594
00:27:56,760 --> 00:27:59,920
Speaker 3: thousand dollars a month, depending on your retirement time frame.

595
00:28:00,080 --> 00:28:01,320
Speaker 1: Yep, that's a lot of money.

596
00:28:01,400 --> 00:28:04,000
Speaker 3: And the important thing to take into consideration here is

597
00:28:04,359 --> 00:28:07,639
Speaker 3: we as young people, are very easy at saying, oh,

598
00:28:07,760 --> 00:28:10,080
Speaker 3: I'll do it when I earn more money. I'll do

599
00:28:10,200 --> 00:28:13,280
Speaker 3: it when I have finished at that festival. I'll do

600
00:28:13,320 --> 00:28:15,879
Speaker 3: it after my Europe trip next year. I'll really knuckle

601
00:28:15,960 --> 00:28:19,000
Speaker 3: down after we purchase a home. We are very good

602
00:28:19,320 --> 00:28:21,800
Speaker 3: at thinking that future US is going to look after

603
00:28:21,920 --> 00:28:24,199
Speaker 3: us when it's actually current us that needs to be

604
00:28:24,240 --> 00:28:27,960
Speaker 3: looking after us, because when we get to that point

605
00:28:28,000 --> 00:28:30,960
Speaker 3: in our lives where maybe we haven't taken into consideration

606
00:28:31,400 --> 00:28:33,840
Speaker 3: how much we really need to be investing to achieve

607
00:28:33,840 --> 00:28:37,400
Speaker 3: our goals, the financial commitments, and the lifestyle we lead

608
00:28:37,560 --> 00:28:40,560
Speaker 3: right then and there is going to need to dramatically

609
00:28:40,720 --> 00:28:44,480
Speaker 3: change for us to actually be in a position where

610
00:28:44,520 --> 00:28:47,760
Speaker 3: we can achieve that bigger financial goal. To ask someone

611
00:28:47,800 --> 00:28:51,560
Speaker 3: in their fifties to change their lifestyle so significantly that

612
00:28:51,600 --> 00:28:54,160
Speaker 3: they go from having their really nice car, paying off

613
00:28:54,160 --> 00:28:58,959
Speaker 3: a mortgage, probably still paying some private school fees to saying, okay,

614
00:28:58,960 --> 00:29:01,320
Speaker 3: but I need you to be investing eight thousand dollars

615
00:29:01,360 --> 00:29:05,520
Speaker 3: a month. Requires significant sacrifice, and you don't work your

616
00:29:05,680 --> 00:29:07,719
Speaker 3: entire life to get to a point where you actually

617
00:29:07,720 --> 00:29:10,240
Speaker 3: need to sell your car, sell your home, start investing

618
00:29:10,280 --> 00:29:13,320
Speaker 3: really aggressively when we could give you this gift of

619
00:29:13,400 --> 00:29:16,040
Speaker 3: knowledge right here and now, and you just start putting

620
00:29:16,120 --> 00:29:18,560
Speaker 3: five hundred dollars away from the age of twenty one

621
00:29:18,840 --> 00:29:21,520
Speaker 3: to achieve this goal that you pretend you never had,

622
00:29:21,880 --> 00:29:24,320
Speaker 3: so I never, as a financial advisor have to sit

623
00:29:24,360 --> 00:29:26,360
Speaker 3: across a table from you and say I need to

624
00:29:26,480 --> 00:29:30,200
Speaker 3: drastically change your lifestyle for you to achieve this goal.

625
00:29:30,520 --> 00:29:33,880
Speaker 3: So for me, no, you do have to make retirement

626
00:29:33,960 --> 00:29:36,760
Speaker 3: a priority now, and the sooner that we can do that,

627
00:29:36,920 --> 00:29:37,320
Speaker 3: the better.

628
00:29:37,480 --> 00:29:37,640
Speaker 1: Yep.

629
00:29:37,720 --> 00:29:40,480
Speaker 3: Retirement doesn't mean you have to stop work. Retirement doesn't

630
00:29:40,480 --> 00:29:43,480
Speaker 3: mean anything other than when we are planning for it.

631
00:29:43,480 --> 00:29:45,040
Speaker 1: It's the age at which you.

632
00:29:45,000 --> 00:29:48,320
Speaker 3: Are financially free to make any decision you would like

633
00:29:48,400 --> 00:29:51,560
Speaker 3: to make. So it's a point in time when you

634
00:29:51,840 --> 00:29:54,200
Speaker 3: can say, no, I'd prefer not to go to work.

635
00:29:54,240 --> 00:29:58,160
Speaker 3: I have enough investments and savings and a financial backing.

636
00:29:58,360 --> 00:30:01,000
Speaker 3: I don't actually need an income. And when we go

637
00:30:01,120 --> 00:30:04,480
Speaker 3: back to that five hundred dollars example, that is important

638
00:30:04,560 --> 00:30:07,920
Speaker 3: because of investment returns. If we look at and I

639
00:30:08,000 --> 00:30:10,160
Speaker 3: always say seven and a half percent, but let's drop

640
00:30:10,200 --> 00:30:12,760
Speaker 3: it back to five percent. Yep. If the share market

641
00:30:12,840 --> 00:30:16,800
Speaker 3: was returning on average five percent, that's sixty thousand dollars

642
00:30:16,840 --> 00:30:19,200
Speaker 3: you have coming in each and every single year in

643
00:30:19,200 --> 00:30:23,120
Speaker 3: investment returns that you then live on instead of the

644
00:30:23,200 --> 00:30:26,160
Speaker 3: money that you are earning from your job. The idea

645
00:30:26,200 --> 00:30:30,520
Speaker 3: is to create an investment portfolio that returns you enough

646
00:30:30,600 --> 00:30:33,120
Speaker 3: money in dividends so that you can live off that

647
00:30:33,320 --> 00:30:36,360
Speaker 3: without ever having to spend the money that you've invested.

648
00:30:36,600 --> 00:30:39,880
Speaker 2: So basically, do consider it now, don't stress about it.

649
00:30:39,880 --> 00:30:41,320
Speaker 2: But the earlier you get in the better.

650
00:30:41,880 --> 00:30:44,160
Speaker 3: The earlier you get in, the less of a monthly

651
00:30:44,200 --> 00:30:46,360
Speaker 3: contribution you are going to need to make to achieve

652
00:30:46,400 --> 00:30:47,560
Speaker 3: exactly the same goal.

653
00:30:48,080 --> 00:30:55,240
Speaker 2: So that's another myth busted. Hi, there you've reached that

654
00:30:55,280 --> 00:30:57,200
Speaker 2: shes on the money mail bux. Do you have a

655
00:30:57,200 --> 00:30:59,240
Speaker 2: money problem you want help solving. Do you have a

656
00:30:59,240 --> 00:31:02,200
Speaker 2: money dilemma you just want to chat about. Victoria is

657
00:31:02,240 --> 00:31:05,160
Speaker 2: here to help. Every week we'll be planning your questions

658
00:31:05,200 --> 00:31:06,880
Speaker 2: to help make sense of a money mess you may

659
00:31:06,880 --> 00:31:09,160
Speaker 2: have found yourself in. Make a quick recording on your

660
00:31:09,160 --> 00:31:11,640
Speaker 2: phone and send it through to podcast at Shoes Onthemoney

661
00:31:11,720 --> 00:31:13,800
Speaker 2: dot com dot au and you might find yourself on

662
00:31:13,840 --> 00:31:16,480
Speaker 2: the show. But for now, here's today's listener question.

663
00:31:17,440 --> 00:31:19,800
Speaker 4: Heyve, I've got a sticky one for you. I've been

664
00:31:19,800 --> 00:31:22,160
Speaker 4: part of the community for a while and realize that

665
00:31:22,280 --> 00:31:25,120
Speaker 4: I have a lot of financial changes to make. I

666
00:31:25,160 --> 00:31:27,680
Speaker 4: actually have a really high income, which I know I'm

667
00:31:27,720 --> 00:31:31,080
Speaker 4: lucky to have insisted about two hundred thousand dollars a year. However,

668
00:31:31,320 --> 00:31:34,320
Speaker 4: I have no savings or assets to show for it.

669
00:31:35,080 --> 00:31:37,840
Speaker 4: I'm thirty five now, and whilst I know I need

670
00:31:37,880 --> 00:31:40,040
Speaker 4: to change my ways, where do I even start? And

671
00:31:40,080 --> 00:31:42,320
Speaker 4: how do I manage to get back on track? All

672
00:31:42,360 --> 00:31:44,680
Speaker 4: my friends think of me as the rich friend because

673
00:31:44,680 --> 00:31:46,160
Speaker 4: I've got a nice car and live in a really

674
00:31:46,240 --> 00:31:48,960
Speaker 4: nice apartment. So how do I change my ways without

675
00:31:48,960 --> 00:31:52,040
Speaker 4: turning into an absolute stine and ruining the lifestyle? I love?

676
00:31:52,240 --> 00:31:53,680
Speaker 4: Thanks girls? Bye?

677
00:31:54,400 --> 00:31:56,200
Speaker 1: Where does she begin? Victoria?

678
00:31:56,560 --> 00:31:58,560
Speaker 3: I think that this is fun more common than a

679
00:31:58,560 --> 00:32:01,040
Speaker 3: lot of people would like to with me. Whilst a

680
00:32:01,080 --> 00:32:03,560
Speaker 3: lot of people would love to, I guess see it

681
00:32:03,600 --> 00:32:05,600
Speaker 3: as more common that we all have two hundred thousand

682
00:32:05,640 --> 00:32:09,600
Speaker 3: dollars incomes, and whilst that's not necessarily the norm, what

683
00:32:09,640 --> 00:32:12,400
Speaker 3: we do see is people who do have really high

684
00:32:12,480 --> 00:32:16,400
Speaker 3: income spending beyond their means, or spending everything that they

685
00:32:16,440 --> 00:32:20,520
Speaker 3: have earned, and lifestyle creep is real. Guys like you

686
00:32:20,600 --> 00:32:22,560
Speaker 3: speaking of that last week, Yeah, and when we talk

687
00:32:22,600 --> 00:32:24,200
Speaker 3: about it a lot, And I think it's really good

688
00:32:24,240 --> 00:32:28,920
Speaker 3: to reiterate because as your income increases, so do your expectations,

689
00:32:28,960 --> 00:32:31,719
Speaker 3: and so do your standards and the way that you spend.

690
00:32:31,880 --> 00:32:33,720
Speaker 3: Like I think I gave the example, and I'm not

691
00:32:33,720 --> 00:32:35,680
Speaker 3: sure if I did this in a workshopper on the podcast,

692
00:32:35,680 --> 00:32:38,120
Speaker 3: and I'm really confused right now, but I gave the

693
00:32:38,160 --> 00:32:41,760
Speaker 3: example of when I was in UNI first year, UNI

694
00:32:41,920 --> 00:32:44,120
Speaker 3: didn't have heaps of money. I was just saying to

695
00:32:44,120 --> 00:32:46,240
Speaker 3: you before that. I remember one time where I didn't

696
00:32:46,240 --> 00:32:47,920
Speaker 3: have money to put under my key, so I had

697
00:32:47,960 --> 00:32:50,440
Speaker 3: to walk to UNI and that was a bit painful.

698
00:32:50,960 --> 00:32:55,040
Speaker 3: But I was purchasing makeup from the supermarket and I'd

699
00:32:55,040 --> 00:32:56,920
Speaker 3: always look for it on sale, and that's just where

700
00:32:56,960 --> 00:32:59,720
Speaker 3: I purchased makeup. And then I got my first really

701
00:32:59,720 --> 00:33:02,360
Speaker 3: good part time job, started having a good income.

702
00:33:02,440 --> 00:33:02,640
Speaker 4: You know.

703
00:33:02,720 --> 00:33:05,040
Speaker 3: I ended up in a position where I was earning

704
00:33:05,080 --> 00:33:08,080
Speaker 3: a full time salary while still at UNI, which was great,

705
00:33:08,120 --> 00:33:10,800
Speaker 3: and I started shopping at price Line and that was

706
00:33:10,880 --> 00:33:12,440
Speaker 3: kind of like a little bit more luck for a

707
00:33:12,480 --> 00:33:13,240
Speaker 3: little step up.

708
00:33:13,160 --> 00:33:15,080
Speaker 1: Little step up, good step up.

709
00:33:15,080 --> 00:33:17,600
Speaker 3: But also we are starting to spend more money on

710
00:33:17,720 --> 00:33:20,560
Speaker 3: products that I was already spending a little bit less on.

711
00:33:21,120 --> 00:33:23,440
Speaker 3: Now I'm a business owner and I am in a

712
00:33:23,480 --> 00:33:25,360
Speaker 3: position where I do have more income than I.

713
00:33:25,320 --> 00:33:26,840
Speaker 1: Had it out of first year UNI.

714
00:33:27,320 --> 00:33:31,640
Speaker 3: I'm obsessed with Mega Mecca and it's not a bad thing.

715
00:33:31,840 --> 00:33:34,000
Speaker 3: And I think that we need to just understand our

716
00:33:34,040 --> 00:33:35,760
Speaker 3: financial decisions that we are making.

717
00:33:36,040 --> 00:33:38,120
Speaker 1: But it's not bad, it just is what it is.

718
00:33:38,280 --> 00:33:41,160
Speaker 3: But it's so easy to creep up and our expectations

719
00:33:41,200 --> 00:33:43,680
Speaker 3: creep up, and once we've been to Mecca, then we

720
00:33:43,720 --> 00:33:46,400
Speaker 3: start going to Mecca and it just becomes more ready

721
00:33:46,520 --> 00:33:50,000
Speaker 3: by makeup. Okay, well that's where I go, instead of remembering,

722
00:33:50,040 --> 00:33:53,240
Speaker 3: I guess quote where we came from and actually going

723
00:33:53,280 --> 00:33:55,640
Speaker 3: all right, well I was able to live within my means,

724
00:33:55,680 --> 00:33:57,720
Speaker 3: Then how come I can't do that now I'm the

725
00:33:57,720 --> 00:34:00,600
Speaker 3: same person exactly, I'm the same person. Why was I

726
00:34:00,640 --> 00:34:03,640
Speaker 3: totally happy with that and now I'm not? So I

727
00:34:03,640 --> 00:34:05,840
Speaker 3: think it's a really good reflection point. But this is

728
00:34:05,880 --> 00:34:09,279
Speaker 3: really common. It's very keeping up with the Joneses. It's

729
00:34:09,400 --> 00:34:12,239
Speaker 3: very spending in line with what you are earning and

730
00:34:12,400 --> 00:34:15,000
Speaker 3: proving that you are earning a lot of money, and

731
00:34:15,040 --> 00:34:17,600
Speaker 3: it's just detrimental for your future. Like I say it

732
00:34:17,760 --> 00:34:20,440
Speaker 3: all the time, if you live fake rich now, you

733
00:34:20,480 --> 00:34:23,360
Speaker 3: will be real poor later. And this is the perfect

734
00:34:23,440 --> 00:34:27,200
Speaker 3: example of that. I have clients who have been on

735
00:34:27,560 --> 00:34:30,920
Speaker 3: really normal salaries like sixty seventy eighty thousand dollars for

736
00:34:30,960 --> 00:34:34,719
Speaker 3: their entire lives, but they have prioritized saving and investing,

737
00:34:34,760 --> 00:34:39,160
Speaker 3: and now they are retiring millionaires. Really yeah, yeah, absolutely.

738
00:34:39,200 --> 00:34:41,120
Speaker 3: I mean I'm too young to have had them for

739
00:34:41,160 --> 00:34:44,240
Speaker 3: their entire financial lives, but that's what.

740
00:34:44,160 --> 00:34:44,719
Speaker 1: They have done.

741
00:34:44,760 --> 00:34:47,000
Speaker 3: And now I'm working with them, and they will retire

742
00:34:47,040 --> 00:34:50,320
Speaker 3: as millionaires, and some of them already are, just because

743
00:34:50,320 --> 00:34:53,280
Speaker 3: that was a priority to them. I also have clients

744
00:34:53,360 --> 00:34:57,760
Speaker 3: in their fifties and nearly sixties who have had really

745
00:34:57,840 --> 00:35:02,040
Speaker 3: high incomes, think half a million dollars, and they don't

746
00:35:02,040 --> 00:35:04,120
Speaker 3: have anything to show for it because they've lived in

747
00:35:04,160 --> 00:35:08,120
Speaker 3: line with their incomes and so easily. It's kind of

748
00:35:08,160 --> 00:35:10,280
Speaker 3: like the rabbit and the hair, like slow and steady

749
00:35:10,320 --> 00:35:13,320
Speaker 3: wins the race. I think it's really important to remember

750
00:35:13,600 --> 00:35:16,640
Speaker 3: it's actually not about how much you earn. It's about

751
00:35:16,680 --> 00:35:19,000
Speaker 3: what you do with the money that you have coming

752
00:35:19,040 --> 00:35:22,000
Speaker 3: in and making Hey, while the sun is shining, like,

753
00:35:22,160 --> 00:35:24,480
Speaker 3: make the most of a good situation that you are in.

754
00:35:24,520 --> 00:35:27,560
Speaker 3: If you have a really good income, that is really lucky.

755
00:35:27,800 --> 00:35:29,799
Speaker 3: I'm not doubting that you worked hard for it. I'm

756
00:35:29,840 --> 00:35:32,600
Speaker 3: sure you absolutely did. But let's make sure that you

757
00:35:32,640 --> 00:35:35,239
Speaker 3: are setting future you up to not have to work

758
00:35:35,280 --> 00:35:36,280
Speaker 3: as hard in the future.

759
00:35:36,760 --> 00:35:39,799
Speaker 2: So where does this listener actually start and how does

760
00:35:39,840 --> 00:35:40,799
Speaker 2: she get her money on track.

761
00:35:41,160 --> 00:35:43,439
Speaker 3: I think she needs to actually have a good long

762
00:35:43,560 --> 00:35:46,799
Speaker 3: chat to herself. Do her budget, do her cash flow,

763
00:35:47,000 --> 00:35:51,320
Speaker 3: understand where her budget is blowing out, put everything on paper.

764
00:35:51,600 --> 00:35:53,800
Speaker 3: Look at your budget and work out what your surplus

765
00:35:53,840 --> 00:35:54,560
Speaker 3: each and every.

766
00:35:54,400 --> 00:35:55,480
Speaker 1: Single month should be.

767
00:35:56,160 --> 00:35:58,360
Speaker 3: And if you are not actually saving that, maybe you

768
00:35:58,360 --> 00:36:00,200
Speaker 3: haven't done your budget correctly and we need to go

769
00:36:00,239 --> 00:36:03,080
Speaker 3: back and review. A budget is actually something that takes

770
00:36:03,120 --> 00:36:05,520
Speaker 3: a while to do. Sometimes it requires a couple of

771
00:36:05,560 --> 00:36:07,840
Speaker 3: reviews over a number of weeks, as you remember the

772
00:36:07,880 --> 00:36:10,359
Speaker 3: things that you spend money on. For example, I remember

773
00:36:10,400 --> 00:36:12,000
Speaker 3: when I first did my budget, I was like, all right,

774
00:36:12,040 --> 00:36:14,400
Speaker 3: I spend this my on gifts. I know what I'm

775
00:36:14,440 --> 00:36:16,960
Speaker 3: spending at Christmas, I know what I'm spending at birthdays.

776
00:36:17,440 --> 00:36:20,399
Speaker 3: And then over the next couple of weeks, I was like, oh, yeah,

777
00:36:20,480 --> 00:36:23,560
Speaker 3: actually I always buy my dad something for Fatness Day.

778
00:36:23,719 --> 00:36:26,439
Speaker 3: Oh yeah, I buy this gift for my friend when

779
00:36:26,520 --> 00:36:29,879
Speaker 3: she graduated university. And just making sure that you are

780
00:36:29,920 --> 00:36:32,799
Speaker 3: capturing all the small things in your budget that add up,

781
00:36:32,840 --> 00:36:36,120
Speaker 3: because from little things, big things really do grow. And

782
00:36:36,160 --> 00:36:38,160
Speaker 3: I think that we just need to have a good

783
00:36:38,200 --> 00:36:41,360
Speaker 3: hard look at ourselves and go am I actually spending

784
00:36:41,400 --> 00:36:44,160
Speaker 3: in line with my values? Do I actually need this

785
00:36:44,239 --> 00:36:47,080
Speaker 3: really fancy one bedroom apartment in the middle of the

786
00:36:47,120 --> 00:36:50,640
Speaker 3: CVD so that I can enjoy my lifestyle now? Or

787
00:36:50,680 --> 00:36:53,000
Speaker 3: could I maybe move into a similar apartment that has

788
00:36:53,040 --> 00:36:53,520
Speaker 3: a housemate?

789
00:36:53,680 --> 00:36:53,919
Speaker 2: Yeah?

790
00:36:53,960 --> 00:36:56,239
Speaker 3: What can I do to put myself in the best

791
00:36:56,280 --> 00:36:59,000
Speaker 3: financial position? Doesn't mean that everyone is going to have

792
00:36:59,040 --> 00:37:01,520
Speaker 3: the same goals or value use or budget, but it

793
00:37:01,560 --> 00:37:03,640
Speaker 3: does mean taking a little bit of a look at

794
00:37:03,640 --> 00:37:07,000
Speaker 3: yourself and prioritizing to you what is important. As I've

795
00:37:07,040 --> 00:37:09,960
Speaker 3: said a million times, to me, financial freedom is the

796
00:37:10,000 --> 00:37:12,640
Speaker 3: most important thing, and it is creating an asset that

797
00:37:12,680 --> 00:37:14,359
Speaker 3: one day will completely support you.

798
00:37:14,560 --> 00:37:17,400
Speaker 2: Would you recommend as well, Victoria, seeing a financial advisor

799
00:37:17,960 --> 00:37:19,759
Speaker 2: or starting off on your own seeing how you go.

800
00:37:20,239 --> 00:37:23,360
Speaker 3: I always recommend starting off on your own and seeing

801
00:37:23,360 --> 00:37:26,920
Speaker 3: how you go, because budgeting and cash flow are something

802
00:37:26,960 --> 00:37:29,080
Speaker 3: that you can get a really good grasp on on

803
00:37:29,120 --> 00:37:32,640
Speaker 3: your own. Sometimes it's just about having some hard conversations

804
00:37:32,640 --> 00:37:36,160
Speaker 3: with yourself and printing out those like three months worth

805
00:37:36,160 --> 00:37:38,359
Speaker 3: of bank statements and you're looking at that, what.

806
00:37:38,280 --> 00:37:38,960
Speaker 1: Am I spending?

807
00:37:39,120 --> 00:37:40,719
Speaker 3: I need to draw a line in the sand here,

808
00:37:40,840 --> 00:37:43,520
Speaker 3: be really honest with myself, not judge myself.

809
00:37:43,640 --> 00:37:44,640
Speaker 1: Actually just go all.

810
00:37:44,640 --> 00:37:46,840
Speaker 3: Right, well what am I spending? Do I want to

811
00:37:46,920 --> 00:37:50,960
Speaker 3: keep doing this? No? Okay, let's move on. So I

812
00:37:50,960 --> 00:37:54,480
Speaker 3: think getting a really good grasp of your own financial

813
00:37:54,520 --> 00:37:57,239
Speaker 3: life before you see a financial advisor enables you to

814
00:37:57,239 --> 00:37:59,920
Speaker 3: get better value out of a financial advisor once you

815
00:38:00,120 --> 00:38:02,759
Speaker 3: know what you're working with. Because as someone who is

816
00:38:02,760 --> 00:38:06,080
Speaker 3: a financial advisor, I love talking to people, but it

817
00:38:06,120 --> 00:38:08,919
Speaker 3: makes my job a whole hey easier if you come

818
00:38:08,920 --> 00:38:11,359
Speaker 3: empowered with Okay, well I know that I can save

819
00:38:11,680 --> 00:38:12,279
Speaker 3: X per month.

820
00:38:12,440 --> 00:38:14,400
Speaker 1: Yeah, and you know a watch if it is.

821
00:38:14,400 --> 00:38:16,920
Speaker 3: All too hard for you, there are always ways that

822
00:38:16,960 --> 00:38:19,600
Speaker 3: you can work with a financial advisor to actually work

823
00:38:19,640 --> 00:38:22,640
Speaker 3: that out. So not saying don't, but often it is

824
00:38:22,680 --> 00:38:25,560
Speaker 3: a very reflective piece, something that does take a little

825
00:38:25,600 --> 00:38:27,919
Speaker 3: bit of time, a little bit of consideration, and it's more,

826
00:38:28,040 --> 00:38:30,200
Speaker 3: You're going to get more value out of an advisor

827
00:38:30,480 --> 00:38:32,440
Speaker 3: if you know your goals and you know what you

828
00:38:32,480 --> 00:38:33,160
Speaker 3: want to achieve.

829
00:38:36,800 --> 00:38:39,360
Speaker 2: Okay, now for the fun stuff. What good would a

830
00:38:39,400 --> 00:38:42,080
Speaker 2: money podcast be without the perby bits. It's time for

831
00:38:42,160 --> 00:38:42,840
Speaker 2: money diaries.

832
00:38:42,960 --> 00:38:45,799
Speaker 5: Hi, I'm thirty and earning less, And the reason for

833
00:38:45,880 --> 00:38:49,080
Speaker 5: this is because I've had a big pay cut thirty

834
00:38:49,120 --> 00:38:52,040
Speaker 5: thousand dollars less this year. So I'm just having to

835
00:38:52,080 --> 00:38:55,480
Speaker 5: readjust my lifestyle and work out how I can live

836
00:38:55,480 --> 00:38:58,320
Speaker 5: the way I'd like to live on a lot less money.

837
00:38:59,080 --> 00:39:01,440
Speaker 2: Thirty in earning less explain to us what happened to

838
00:39:01,480 --> 00:39:03,480
Speaker 2: her and her finances in twenty nineteen.

839
00:39:03,600 --> 00:39:06,000
Speaker 5: So last year I was in an acting position, which

840
00:39:06,120 --> 00:39:10,000
Speaker 5: was incredible. I jumped up thirty grand, was able to

841
00:39:10,960 --> 00:39:13,719
Speaker 5: pay a lot off on my mortgage. I also purchased

842
00:39:13,960 --> 00:39:18,600
Speaker 5: some nice boobs for myself. Yeah, I'm quite happy with

843
00:39:18,640 --> 00:39:23,359
Speaker 5: myself there. But now, unfortunately I was unsuccessful and I

844
00:39:23,480 --> 00:39:26,160
Speaker 5: was kind of assuming that I was going to get

845
00:39:26,200 --> 00:39:29,799
Speaker 5: the position as an ongoing. So now I'm in a

846
00:39:29,840 --> 00:39:34,520
Speaker 5: situation where I'm earning now seven hundred dollars less a fortnight.

847
00:39:35,360 --> 00:39:37,800
Speaker 5: So now I really have to look at my money

848
00:39:37,840 --> 00:39:41,960
Speaker 5: situation and now my relationship is. I mean, it's definitely

849
00:39:41,960 --> 00:39:45,360
Speaker 5: not dire. I'm living comfortably, but I do need to

850
00:39:45,400 --> 00:39:47,840
Speaker 5: really evaluate where my spendings are going.

851
00:39:48,080 --> 00:39:50,160
Speaker 2: So how much does she earn and where does some

852
00:39:50,200 --> 00:39:51,840
Speaker 2: money go after it hits her account?

853
00:39:51,920 --> 00:39:56,240
Speaker 5: I get paid a fortnite two one hundred dollars. Fourteen

854
00:39:56,440 --> 00:40:00,439
Speaker 5: hundred of that grow straight into my mortgage, therefore off

855
00:40:00,520 --> 00:40:04,400
Speaker 5: seven hundred dollars a fortnight and then from there that's

856
00:40:04,520 --> 00:40:08,239
Speaker 5: inclusive of bill's my other spendings, which you know, my

857
00:40:08,360 --> 00:40:10,440
Speaker 5: values are going to the gym. So i have my

858
00:40:11,040 --> 00:40:13,839
Speaker 5: one hundred and twenty dollars a fortnight bill for the gym,

859
00:40:13,840 --> 00:40:16,279
Speaker 5: which is a lot, I know. And I've listened to

860
00:40:16,280 --> 00:40:18,359
Speaker 5: the other podcasts on She's on the Money and how

861
00:40:18,360 --> 00:40:20,520
Speaker 5: you can save money going to other gyms that aren't

862
00:40:20,640 --> 00:40:22,800
Speaker 5: is expensive, but this is my value and I really

863
00:40:22,840 --> 00:40:25,520
Speaker 5: like going to the gym, and I'm not willing to change.

864
00:40:25,200 --> 00:40:26,879
Speaker 1: It, all right.

865
00:40:26,920 --> 00:40:29,400
Speaker 5: So in my bank accounts, I have one hundred and

866
00:40:29,480 --> 00:40:32,320
Speaker 5: twenty dollars in one, one hundred and six dollars in another,

867
00:40:32,800 --> 00:40:35,320
Speaker 5: and I've just recently opened an eighty six four hundred

868
00:40:35,320 --> 00:40:38,160
Speaker 5: account thanks to She's on the Money podcast for that,

869
00:40:38,360 --> 00:40:39,840
Speaker 5: and I've got some money in there as well.

870
00:40:39,880 --> 00:40:41,240
Speaker 1: I've got around four hundred dollars.

871
00:40:41,400 --> 00:40:44,120
Speaker 2: Okay, then, so how does she feel about investing? Does

872
00:40:44,160 --> 00:40:45,799
Speaker 2: she invest? And if so, how so?

873
00:40:45,800 --> 00:40:48,439
Speaker 5: I think investing is really important. I think that's been

874
00:40:48,719 --> 00:40:51,839
Speaker 5: handed to through my parents as well. They've really shown

875
00:40:51,920 --> 00:40:54,480
Speaker 5: me that, you know, having a property is a really

876
00:40:54,520 --> 00:40:56,560
Speaker 5: good investment. And look, i can tick that off the

877
00:40:56,600 --> 00:40:59,000
Speaker 5: bucket list because I'm very proud to say I owned

878
00:40:59,040 --> 00:41:03,280
Speaker 5: my first proper I do have shares, but I don't

879
00:41:03,320 --> 00:41:05,359
Speaker 5: know where they are. I don't know how much money

880
00:41:05,400 --> 00:41:09,600
Speaker 5: is in them. I'm very naive, and I want to

881
00:41:09,680 --> 00:41:12,160
Speaker 5: learn more about shares. I want to know if it's

882
00:41:12,200 --> 00:41:15,759
Speaker 5: worth me pulling out my money, putting it into my mortgage,

883
00:41:16,040 --> 00:41:18,920
Speaker 5: or just reevaluating where my shares are going. But I

884
00:41:18,960 --> 00:41:21,200
Speaker 5: don't know a lot about shares, and I want to

885
00:41:21,480 --> 00:41:23,319
Speaker 5: That's a bit of a goal for me for this year,

886
00:41:23,760 --> 00:41:24,960
Speaker 5: learning more about shares.

887
00:41:25,080 --> 00:41:27,800
Speaker 2: What about debts like credit cards or personal lodes?

888
00:41:28,040 --> 00:41:32,120
Speaker 5: Zero debt no credit card debt just to my hexit

889
00:41:32,200 --> 00:41:36,280
Speaker 5: that I mentioned earlier. And my mortgage, but I'm definitely

890
00:41:36,280 --> 00:41:38,200
Speaker 5: paying off a lot more than what I need to,

891
00:41:38,680 --> 00:41:40,839
Speaker 5: So I'm really smashing that out and trying to pay

892
00:41:40,840 --> 00:41:43,680
Speaker 5: off as much as I can to not have a

893
00:41:43,719 --> 00:41:44,560
Speaker 5: mortgage anymore.

894
00:41:45,160 --> 00:41:47,040
Speaker 2: Dirty and Earning List has a habit that she says

895
00:41:47,120 --> 00:41:48,360
Speaker 2: is both good and bad.

896
00:41:48,640 --> 00:41:51,160
Speaker 5: Yeah, So my good and bad habit is that I

897
00:41:51,239 --> 00:41:55,800
Speaker 5: do have a taste for expensive clothes, but I also

898
00:41:55,960 --> 00:41:58,600
Speaker 5: do like to sell my clothes, so I try every

899
00:41:58,680 --> 00:42:02,160
Speaker 5: six months to twelve months sell my clothes at a market. Therefore,

900
00:42:02,320 --> 00:42:05,400
Speaker 5: I'm getting money coming in and I can actually purchase

901
00:42:05,560 --> 00:42:07,360
Speaker 5: other new, nice, expensive clothes.

902
00:42:07,520 --> 00:42:09,880
Speaker 1: And what are the good money habits does she have recently?

903
00:42:09,920 --> 00:42:13,680
Speaker 5: So I've deleted Uber Eats and Uber which I actually

904
00:42:13,719 --> 00:42:16,120
Speaker 5: got stuck out at a bar last night because I

905
00:42:16,160 --> 00:42:19,800
Speaker 5: had to download the app because I didn't have Uber

906
00:42:19,880 --> 00:42:22,800
Speaker 5: on my phone anymore, which was quite hard to download

907
00:42:22,840 --> 00:42:26,080
Speaker 5: an app after a few drinks. But I got there

908
00:42:26,120 --> 00:42:27,920
Speaker 5: in the wedd and I got home safe, so that

909
00:42:28,440 --> 00:42:31,600
Speaker 5: was good. Another good habit is that I looked at

910
00:42:31,960 --> 00:42:34,160
Speaker 5: where my money has been going and I've cut down.

911
00:42:34,320 --> 00:42:37,799
Speaker 5: I'm not buying lashes anymore, which I worked out to

912
00:42:37,880 --> 00:42:40,920
Speaker 5: save me fourteen hundred for the year, so that's a

913
00:42:40,920 --> 00:42:41,560
Speaker 5: big bonus.

914
00:42:41,920 --> 00:42:44,560
Speaker 2: How would Today's money diarist rate her own relationship with

915
00:42:44,600 --> 00:42:46,239
Speaker 2: money if she had to give herself.

916
00:42:45,880 --> 00:42:48,200
Speaker 5: A greade, I'd give myself a B. But I really

917
00:42:48,200 --> 00:42:50,080
Speaker 5: want to be in a sorry to get there, I

918
00:42:50,160 --> 00:42:53,040
Speaker 5: need to learn more about how I can budget better

919
00:42:53,360 --> 00:42:56,360
Speaker 5: with my new income and how it's changed. Trying to

920
00:42:56,400 --> 00:42:59,160
Speaker 5: maintain the last style that I liked to live. I

921
00:42:59,200 --> 00:43:01,120
Speaker 5: really want to get to an but I think I

922
00:43:01,160 --> 00:43:03,640
Speaker 5: need to give myself a bee because there's always room

923
00:43:03,680 --> 00:43:06,960
Speaker 5: for growth, and I think bees are pretty good grade anyway,

924
00:43:07,040 --> 00:43:10,000
Speaker 5: because I can see that I'm already starting to change,

925
00:43:10,120 --> 00:43:12,080
Speaker 5: but I've got a lot of other areas that i

926
00:43:12,080 --> 00:43:12,719
Speaker 5: can improve on.

927
00:43:12,920 --> 00:43:14,560
Speaker 1: What did you think of that one, Victoria?

928
00:43:14,920 --> 00:43:15,719
Speaker 3: I really liked it.

929
00:43:15,760 --> 00:43:19,080
Speaker 1: I feel like she was really compidy. Yeah, she was lovely.

930
00:43:19,239 --> 00:43:20,560
Speaker 3: What did you like about her energy?

931
00:43:20,840 --> 00:43:22,360
Speaker 1: I just feel like she was very positive.

932
00:43:22,440 --> 00:43:25,319
Speaker 2: Given that she's now earning thirty grands less, which is

933
00:43:25,480 --> 00:43:26,160
Speaker 2: a huge.

934
00:43:26,040 --> 00:43:28,640
Speaker 3: Number, it sounds like she knows what she's talking about.

935
00:43:28,960 --> 00:43:31,920
Speaker 3: It feels like she knew how to allocate it to

936
00:43:31,960 --> 00:43:34,640
Speaker 3: begin with. I love that she said she've paid down

937
00:43:34,840 --> 00:43:37,319
Speaker 3: some of her mortgage. I'm all for boobs if you're

938
00:43:37,320 --> 00:43:40,879
Speaker 3: into boobs hard, yes, But then also I think it's

939
00:43:40,920 --> 00:43:44,120
Speaker 3: really important that now she's on less, she sounds like

940
00:43:44,200 --> 00:43:46,719
Speaker 3: she knows what she's budgeting for while she said she

941
00:43:46,760 --> 00:43:50,280
Speaker 3: didn't really know what happens when it comes to shares,

942
00:43:50,320 --> 00:43:52,560
Speaker 3: and definitely like we can educate her on that. They

943
00:43:52,600 --> 00:43:54,560
Speaker 3: have a couple of podcasts on that I heard, But

944
00:43:54,680 --> 00:43:57,280
Speaker 3: I think that she was doing pretty well given she knew,

945
00:43:57,280 --> 00:43:59,560
Speaker 3: you know, exactly what was coming into her bank account

946
00:43:59,560 --> 00:44:02,279
Speaker 3: every four and where it was going and what it

947
00:44:02,320 --> 00:44:03,319
Speaker 3: was allocated to.

948
00:44:03,760 --> 00:44:05,920
Speaker 2: What did you think about the grade? I think she

949
00:44:05,920 --> 00:44:06,600
Speaker 2: gave herself a B.

950
00:44:07,080 --> 00:44:08,000
Speaker 1: I think that's fair.

951
00:44:08,080 --> 00:44:10,320
Speaker 3: I never like, as you guys know, I never like

952
00:44:10,520 --> 00:44:13,080
Speaker 3: arguing with people on their grades, because I think that

953
00:44:13,680 --> 00:44:15,799
Speaker 3: if you feel like you're a B, then you're a B.

954
00:44:16,440 --> 00:44:18,080
Speaker 3: And she did say that she wants to become an

955
00:44:18,080 --> 00:44:20,560
Speaker 3: A plus or she wants to become an A A courage.

956
00:44:20,880 --> 00:44:22,920
Speaker 1: I can't remember which one it was. I think it's

957
00:44:22,960 --> 00:44:23,160
Speaker 1: an A.

958
00:44:23,719 --> 00:44:26,000
Speaker 3: But she also said how she's going to get to

959
00:44:26,040 --> 00:44:28,160
Speaker 3: an A, and I love that she has a plan there.

960
00:44:28,640 --> 00:44:31,080
Speaker 3: The one thing I would say, though, is it sounded

961
00:44:31,080 --> 00:44:33,120
Speaker 3: like she didn't have much of an emergency fund.

962
00:44:33,239 --> 00:44:36,359
Speaker 1: Yeah, she only had what was it, two hundred. She

963
00:44:36,400 --> 00:44:37,080
Speaker 1: didn't have a lot.

964
00:44:37,239 --> 00:44:40,719
Speaker 3: No, she didn't have heaps sitting in her various bank accounts.

965
00:44:40,760 --> 00:44:43,399
Speaker 3: And I'm probably making some grand assumptions here. I don't

966
00:44:43,440 --> 00:44:47,799
Speaker 3: actually know her full financial history or position, but I'm

967
00:44:47,800 --> 00:44:50,440
Speaker 3: assuming that she put a lot of her surplus cash

968
00:44:50,520 --> 00:44:54,120
Speaker 3: into her mortgage, which would make sense given her conversation

969
00:44:54,239 --> 00:44:57,759
Speaker 3: that she was having earlier. However, I really like the

970
00:44:57,800 --> 00:45:01,239
Speaker 3: idea of people having access to emergency any funds, Like, gee,

971
00:45:01,320 --> 00:45:03,440
Speaker 3: we're seeing it. At the moment, there is so much

972
00:45:03,560 --> 00:45:07,239
Speaker 3: uncertainty floating around, and we're just not sure what's going

973
00:45:07,280 --> 00:45:10,560
Speaker 3: to happen with our pays, and sometimes we can't guarantee

974
00:45:10,560 --> 00:45:13,200
Speaker 3: our employment is going to exist in a couple of weeks.

975
00:45:13,640 --> 00:45:15,400
Speaker 3: So I think it's really important to have something to

976
00:45:15,400 --> 00:45:18,280
Speaker 3: fall back on so that if we're out of employment

977
00:45:18,360 --> 00:45:22,000
Speaker 3: or our financial situation changes, we're not stuck in the lurch.

978
00:45:23,200 --> 00:45:26,480
Speaker 2: So love the energy overall, happy with the grade. Anything

979
00:45:26,480 --> 00:45:27,399
Speaker 2: else to add, I.

980
00:45:27,320 --> 00:45:29,399
Speaker 3: Don't think I have a lot to add. I think

981
00:45:29,440 --> 00:45:31,279
Speaker 3: she had a lot of conviction in what she was

982
00:45:31,320 --> 00:45:33,319
Speaker 3: saying and knew what she wanted to get better at.

983
00:45:33,440 --> 00:45:35,319
Speaker 3: And I have no doubt that over the next couple

984
00:45:35,360 --> 00:45:37,239
Speaker 3: of months she's going to teach herself that because she

985
00:45:37,239 --> 00:45:38,280
Speaker 3: sounds like a smart lady.

986
00:45:41,719 --> 00:45:43,440
Speaker 1: That is all we have time for today.

987
00:45:43,600 --> 00:45:45,840
Speaker 2: But before we head off, let's quickly wrap the boring

988
00:45:45,840 --> 00:45:48,960
Speaker 2: but important stuff. The advice shed on MythBusters just hidding,

989
00:45:49,040 --> 00:45:51,200
Speaker 2: she's on the money is general in nature and does

990
00:45:51,239 --> 00:45:54,680
Speaker 2: not consider your individual circumstances. She's on the Money exists

991
00:45:54,680 --> 00:45:57,640
Speaker 2: purely for educational purposes and should not be relied upon

992
00:45:57,680 --> 00:45:59,640
Speaker 2: to make an investment or financial decision.

993
00:46:00,080 --> 00:46:01,480
Speaker 1: And fear not, We promise.

994
00:46:01,640 --> 00:46:05,960
Speaker 2: Victoria Divine is an authorized representative of Consultant Financial Advisors

995
00:46:06,040 --> 00:46:09,200
Speaker 2: propriet You Limited ABN six five double six three seven

996
00:46:09,239 --> 00:46:12,520
Speaker 2: three double nine five afossel two three Oho three two three.

997
00:46:13,000 --> 00:46:15,879
Speaker 2: And thank you, of course to Brian John, our audio man,

998
00:46:15,920 --> 00:46:18,279
Speaker 2: for whipping our wild chat into the podcast you Love.

999
00:46:18,640 --> 00:46:21,520
Speaker 3: We would absolutely love it if you joined our Facebook group,

1000
00:46:21,520 --> 00:46:25,160
Speaker 3: where our community shares money tips and tricks every single day,

1001
00:46:25,280 --> 00:46:30,480
Speaker 3: free of judgment. We also talk about myths, so we

1002
00:46:30,640 --> 00:46:34,839
Speaker 3: bust search She's on the Money on Facebook and join us.

1003
00:46:34,880 --> 00:46:37,280
Speaker 3: If Facebook's not your thing, or maybe you like both,

1004
00:46:37,520 --> 00:46:40,000
Speaker 3: join us on Instagram. We're at She's on the Money

1005
00:46:40,040 --> 00:46:40,600
Speaker 3: a US.

1006
00:46:40,800 --> 00:46:42,800
Speaker 2: See you next week, guy, Next week, guys,