Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud Order
Speaker 1: Order Kerney Whalbury and a waddery woman. And before we
Speaker 1: get started on She's on the Money podcast, I would
Speaker 1: like to acknowledge the traditional custodians of the land of
Speaker 1: which this podcast is recorded on a wondery country, acknowledging
Speaker 1: the elders, the ancestors and the next generation coming through
Speaker 1: as this podcast is about connecting, empowering, knowledge sharing and
Speaker 1: the storytelling of you to make a difference for today
Speaker 1: and lasting impact for tomorrow.
Speaker 2: Let's get into it.
Speaker 3: She's on the Money, She's on the Money.
Speaker 4: Hello, and welcome to She's on the Money, the podcast
Speaker 4: for millennials who want financial freedom. Do you ever spend
Speaker 4: hours and hours of researching the perfect shares and ETFs
Speaker 4: but then freeze and never actually invest?
Speaker 2: Yes?
Speaker 4: I know, I certainly don't. But have you gone down
Speaker 4: a rabbit hole of comparing all your insurance options to
Speaker 4: get a better deal? Just be overwhelmed and stick with
Speaker 4: what you've got? That actually I can relate to. But
Speaker 4: what about when you spend so much time stressing over
Speaker 4: all the little details of your trip away that you
Speaker 4: kick yourself because the price goes up because you've waited
Speaker 4: too long. If you answer yes to any of those questions,
Speaker 4: then it's likely that you've fallen victim to analysis paralysis,
Speaker 4: a phenomenon that's holding you back from moving forward and
Speaker 4: can even be costing you money. Oh my goodness, this
Speaker 4: is so relatable. Beads on her favorite topics. I'm begsited
Speaker 4: and joining me today for what I know is going
Speaker 4: to be a very empowering chat. Is the person you
Speaker 4: want on your team when it comes to all things
Speaker 4: finance and behavioral psychology. Victoria Divine, Divine.
Speaker 2: She's shaken up the intro. I'm proud of you. I
Speaker 2: love where you're going with this absolute sleigh.
Speaker 4: Thank you so much so, Vie. I guess like for
Speaker 4: anyone who isn't familiar, let's start by outlining exactly what
Speaker 4: analysis paralysis is.
Speaker 2: It's a really nice term because it rhymes that just flows.
Speaker 2: It makes it easy to rememberke sense. Yeah, I like it.
Speaker 2: I also feel like we talk about it a lot
Speaker 2: on the podcast, but we haven't done a full episode
Speaker 2: on it, So now is it's time to shine. So
Speaker 2: analysis paralysis is a state of overthinking or over analyzing
Speaker 2: a situation to the point where a decision it's never made,
Speaker 2: essentially paralyzing the decision making process. The phenomenon occurs when
Speaker 2: you become so overwhelmed by the potential outcomes, the amount
Speaker 2: of available information, or the fear of making the wrong choice,
Speaker 2: that you're unable to make any decision at all. And
Speaker 2: as I've said before, Beck, not making a decision is
Speaker 2: actually making a decision in itself, So we really need
Speaker 2: to address analysis paralysis and not bury our heads in
Speaker 2: the sand. Was a study done in the US, because
Speaker 2: that seems to be where the most studies come out
Speaker 2: of best believe, I'm always trying to find Australian studies,
Speaker 2: but alas, everything's bigger in Texas, as they say. But
Speaker 2: it was known as the jam jar study, which sounds
Speaker 2: kind of cute, where psychologists Sheena Inger and Mark Lepper
Speaker 2: showed how too many options can overroil us. No shit, Sherlock.
Speaker 2: But in a supermarket they set up two tables, one
Speaker 2: with twenty four different jars of jam and one with
Speaker 2: just six. The results about thirty shoppers picked a jar
Speaker 2: from the limited options, while only three percent picked from
Speaker 2: the larger variety, so shoppers, Beck were ten times more
Speaker 2: likely to make a purchase when they were faced with
Speaker 2: fewer options.
Speaker 4: It's a while to think about because I feel like
Speaker 4: when we are if I was decided business, for example,
Speaker 4: and I wouldn't like, you know, maybe sell jams as
Speaker 4: exactly like this experiment, I would be like, oh, I
Speaker 4: have as many options as possible because people love different things.
Speaker 4: But it turns out it really does.
Speaker 2: It's so interesting, right. There's also another study that was
Speaker 2: actually done in Australia, not so research backed, but it
Speaker 2: was about a coke can vending machine. Right, So they
Speaker 2: had a coke can vending machine and they put it
Speaker 2: on a train station platform, and like, if you owned
Speaker 2: that vending machine, Beck, you'd be pretty annoyed if you
Speaker 2: then found out that PEPSI had put a vending machine
Speaker 2: beside yours, wouldn't clever? You'd be like, well, clever, but
Speaker 2: also really annoying because Node exactly, but it actually increased
Speaker 2: sales of both. Why you might ask Beck, because while
Speaker 2: not analysis paralysis, it's just really interesting, I think Beck,
Speaker 2: The question for the consumer went from do I buy
Speaker 2: a coke or not? To do I buy a coke
Speaker 2: or do I buy a PEPSI M.
Speaker 4: That makes so much sense.
Speaker 2: Yeah, right, so it's interesting to talk about I guess
Speaker 2: consumer psychology and this is what that plays in. To
Speaker 2: give people less options and they're more likely to make
Speaker 2: a decision, overwhelm them with too many options and they'll
Speaker 2: just go this is all too hard. I am going home.
Speaker 4: That's really really interesting. It does make sense. But I
Speaker 4: want to touch on this because you have a background
Speaker 4: in behavioral psychology, so a.
Speaker 2: Little bits of a nerd you are correct.
Speaker 4: Yeah, and so do you kind of like know why
Speaker 4: this happened?
Speaker 2: Yes, I do, and I feel like I've just started
Speaker 2: explaining it before you even asked me, So good prompting, Beck.
Speaker 2: But humans are naturally wired to avoid risk, Beck, I've
Speaker 2: spoken about this before. Like remember, way back in the
Speaker 2: caveman times, it was all about survival of the fittest,
Speaker 2: So I don't really Yeah, like we were both there,
Speaker 2: so we really don't want to take on unnecessary risk
Speaker 2: and a lot of us still have that hardwired into us.
Speaker 5: Right.
Speaker 2: Behavior is rooted in evolutionary psychology. This inclination. It's linked
Speaker 2: to our survival instincts, where avoiding potential dangers meant that
Speaker 2: we were more likely to survive and therefore reduce, which
Speaker 2: is obviously the most important thing in the entire world, Beck,
Speaker 2: our reproductive abilities, especially as.
Speaker 4: Women, exactly as women, and especially for the queer community,
Speaker 4: It's most important thing is that you reproduce.
Speaker 2: I have heard, Beck that you've been trying very hard
Speaker 2: to but not being successful yet. Yeah, that's a conversation
Speaker 2: for another day.
Speaker 4: That's a that it's conversation for another day. I'm so
Speaker 4: sorry to get.
Speaker 2: I watched Mean Girls and I heard that if you
Speaker 2: have sex, you will get pregnant and you will die.
Speaker 2: And you've been basically risking it for the biscuit.
Speaker 4: Yeah, I know, and nothing's happened yet. So I mean,
Speaker 4: I guess we just gotta keep we gotta get trying, lucky.
Speaker 2: This isn't a podcast about sex because we've known literally
Speaker 2: nothing anyway. Segueing back to the actual conversation, Beck.
Speaker 4: Great Calvy. So, I guess like the majority of our
Speaker 4: listeners are, of course millennials, but high to those who
Speaker 4: do not fit in that category as well. Research shows
Speaker 4: us that our gen is particularly vulnerable to analysis prolysis,
Speaker 4: And I mean, like I do have suchies.
Speaker 2: Why I want to know your theories before I get
Speaker 2: into it. I'm sure, of course I do. I mean
Speaker 2: from the woman who has been trying to get pregnant
Speaker 2: with another woman, I just feel like this is going
Speaker 2: to be enlightening at best.
Speaker 4: Absolutely, you can tell that I'm extremely bright, the sharpest
Speaker 4: tool in the shed, they say. But I guess, like
Speaker 4: for me, I'm thinking that if you were born maybe
Speaker 4: in the older generation, you didn't have to you know,
Speaker 4: I'm kind of like really zooming out here, but you
Speaker 4: didn't have to pay for education. Houses were a lot cheaper,
Speaker 4: like I don't know, millennials and younger, and I'm sure
Speaker 4: you know this goes for everyone. There's a lot of
Speaker 4: people that would be struggling with finances. But for us,
Speaker 4: it kind of feels like we don't have a lot
Speaker 4: of the flexibility. We don't have that safety blanket of
Speaker 4: just being like I'm not gonna think about this one.
Speaker 4: I'm just gonna go for it and see what happens.
Speaker 4: We actually sometimes can't do that because we might literally
Speaker 4: not survive. So I guess that's why maybe it's more
Speaker 4: prominent in our generation. But I do want to ask you,
Speaker 4: what is it about our generation that makes us more susceptible.
Speaker 2: So I think you're right, Like zooming out is really
Speaker 2: helpful if we look back historically, like even the way
Speaker 2: that my parents made decisions, which wasn't that long ago
Speaker 2: when they were you know, our age, making decisions about things.
Speaker 2: If they were purchasing their first home, they weren't able
Speaker 2: to jump online and do a heap of research and
Speaker 2: do a market analysis. They were asking their parents and
Speaker 2: their friends for advice. And I feel like the same
Speaker 2: is true, Like at the moment there's a conversation online,
Speaker 2: particularly on TikTok as you know, a victim of the algorithm,
Speaker 2: I basically live there. Now. It's information overload and there's
Speaker 2: so much weight that we carry on our shoulders. And
Speaker 2: when it comes to even news, I feel like today, Beck,
Speaker 2: you and I are so well educated, and I'm so
Speaker 2: grateful for that privilege, but we're so well educated of
Speaker 2: what's going on in the world that the older demographic
Speaker 2: is actually really struggling with this because you know, if
Speaker 2: we think about our grandparents, people in their eighties, they
Speaker 2: are used to this amount of information overload. Like if
Speaker 2: I look back and look at my grandparents, right, like
Speaker 2: Mi Nan and Pop, they grew up in a world
Speaker 2: where they were in Tasmania. They were on a tiny
Speaker 2: island off the ghost of Australia. They were sheep farmers
Speaker 2: and they also farmed poppies. That's what they knew. Like,
Speaker 2: they didn't have a lot of outside influence, and when
Speaker 2: they did it was the local paper. And what does
Speaker 2: the local paper feature? Local news? So the worst things
Speaker 2: that could happen to them were really based in Australia.
Speaker 2: And even though the news stories internationally were massive and
Speaker 2: you know, terrifying and honestly some of the things happening
Speaker 2: were just as bad as the things that are happening today,
Speaker 2: they went privy to them. So now that they are
Speaker 2: being overloaded by this information, lots of them are experiencing
Speaker 2: significant levels of distress because of this information overload. Right,
Speaker 2: and in today's digital world that you and I have
Speaker 2: arguably grown up in, we constantly bombarded with endless streams
Speaker 2: of information and choice, whether that's about world news or
Speaker 2: beck buying your first home, or which savings account is
Speaker 2: the best savings account or you know which ETF do
Speaker 2: I purchase? I mean, you've got analysis paralysis. Just the
Speaker 2: other day when you were downloading chasis. You downloaded and
Speaker 2: you're like, this is simple, and then you're like, wait,
Speaker 2: what do I invest in? And I think that that
Speaker 2: happens to all of us. The mental load of our
Speaker 2: modern lifestyles. It demands we juggle numerous responsibilities and decisions,
Speaker 2: which leads to cognitive overload. And this state of being
Speaker 2: overwhelmed can cause decision fatigue, which is over it where
Speaker 2: the sheer volume of decisions becomes mentally exhausting. As millennial women,
Speaker 2: you and I, Beck, we often face high expectations for
Speaker 2: success and fulfillment, which can then lead to heightened anxiety
Speaker 2: over making the right choice for our future. We also
Speaker 2: experience fomo like never before, because Beck, if my parents'
Speaker 2: friends went out, they heard about it the next time
Speaker 2: they caught up with their friends, and by that stage,
Speaker 2: which they're probably forgetting what had happened. If I don't
Speaker 2: go out with my mates, I see it on Instagram,
Speaker 2: I see what they ate ten minutes after they ate it,
Speaker 2: or even, let's be honest, back before they even got
Speaker 2: to try it, because they took the photo to post
Speaker 2: before they actually dived in. But we get fomo at
Speaker 2: a level that's never been experienced before. And we are
Speaker 2: consistently worried about making the wrong decision, which can paralyze
Speaker 2: us into inaction.
Speaker 4: That actually makes a lot of sense. So V, how
Speaker 4: does this impact our finances?
Speaker 1: Ah?
Speaker 2: Significantly. Look, it might not be the biggest deal. Like
Speaker 2: how I experienced last night, my husband and I could
Speaker 2: not pick what we wanted to watch on Netflix. Analysis proalysis,
Speaker 2: too many options. We ended up going with a show
Speaker 2: that we'd already seen. But analysis paralysis in financial decision
Speaker 2: making can actually cost you a lot of money. This
Speaker 2: is known as opportunity cost. You need to think about
Speaker 2: what you were actually risking by not taking any risk
Speaker 2: at all. Let's take investing for example, Beck, because it
Speaker 2: is my favorite topic ever. You know you want to invest,
Speaker 2: but you're trapped in analysis paralysis. You're trying to figure
Speaker 2: out where to put your money. You know that you
Speaker 2: want to invest, you know that you have some money
Speaker 2: to invest. Maybe you've already picked a platform. This is
Speaker 2: literally you Beck in a nutshell, but you're stuck comparing
Speaker 2: the different fees of maybe the different platforms if you
Speaker 2: haven't picked one yet. Meanwhile, the clock is ticking and
Speaker 2: then suddenly it's six months later and you still haven't started.
Speaker 2: Suddenly it's three years later and you haven't invested a dollar.
Speaker 2: Every moment of indecision means that you're missing out on
Speaker 2: potential money in your pocket, as your investment could have
Speaker 2: been compounding over this time. And we know on average,
Speaker 2: money compounds every seven years. So Beck, the amount of
Speaker 2: decisions I've put off for that period of time is wild.
Speaker 4: I know, and I know this isn't the same, but
Speaker 4: I was just thinking, as you're saying that that, like
Speaker 4: I really wouldn't find your phone, and I know it's
Speaker 4: not smart. I know it's not wise because my phone works.
Speaker 2: On my doesn't I actually need a new phone?
Speaker 5: Well?
Speaker 2: This so this is a good example. Tell me more so.
Speaker 4: Last week the Google Pixel eight pro was on special.
Speaker 4: It was like seven hundred dollars cheaper than it usually is.
Speaker 2: I forgot that you were a non iPhone girly.
Speaker 4: I'm not an iPhone girly. I do love my Google Pixels.
Speaker 4: And then I was like, oh, sick, Like it's a
Speaker 4: thousand bucks. Let me just think about it for like
Speaker 4: a few days.
Speaker 2: That's so much money back, it's so much money. It's
Speaker 2: so much money. But I was like, oh, it's so
Speaker 2: much cheaper than usual. I might, yeah, I'll probably buy it,
Speaker 2: but let me just like sit on it and get
Speaker 2: my finances in order. And then I went to buy
Speaker 2: it and it was just as special for a week
Speaker 2: and it's gone back to regular price. And so so
Speaker 2: I used to This is a side conversation if something
Speaker 2: was discounted and the discount was motivating you to purchase it,
Speaker 2: beck huh, and then it isn't discounted anymore, and you
Speaker 2: somehow don't need the item. Did you really need the
Speaker 2: item to begin with?
Speaker 4: Well, that's you're so right, Victoria.
Speaker 2: You're like, that's not what this episode is about, Victoria Devine.
Speaker 4: No, that's true. Well I'm gonna buy it any way.
Speaker 4: That's the problem.
Speaker 2: So you did need the item?
Speaker 4: I did?
Speaker 1: I did?
Speaker 2: Okay for me?
Speaker 4: So anyway, that's my story on analysis paralysis. Let me
Speaker 4: hear what you've got if you have anything.
Speaker 2: I feel like I get analysis paralysis over so much
Speaker 2: like even analysis paralysis. This is probably a bougier purchase,
Speaker 2: but my wedding dress. So like I didn't want to
Speaker 2: spend heaps of money on my wedding dress. Spoiler, I did,
Speaker 2: but I didn't at the start, and I was like,
Speaker 2: you know what I'll do, Like I'll buy a second
Speaker 2: hand dress off Still White, because you know, wedding dresses
Speaker 2: are exorbitant, like they're so expensive, and it didn't make
Speaker 2: any sense to me. Anyway, went back and forth and
Speaker 2: back and forth, and I ended up buying a dress
Speaker 2: off Still White, so a secondhand wedding dress, and I
Speaker 2: thought this is perfect because let's be honest, the dresses
Speaker 2: would warm once. Like people aren't wearing these dresses and
Speaker 2: then selling them because they've worn them for a year
Speaker 2: and they're over it and it's out of they're wardrobe.
Speaker 2: They wore it for their special day, and honestly, most
Speaker 2: brides wear their dresses for a max of like six
Speaker 2: hours before they change. Anyway, back to the story at hand,
Speaker 2: I bought one basically shotgunk because I started to get
Speaker 2: worried that I was going to miss out on it,
Speaker 2: and I purchased it and then it didn't fit my
Speaker 2: body properly, and I thought, all right, well, maybe I'll
Speaker 2: go on a diet, maybe I'll do all of this
Speaker 2: other stuff to fit in the dress. Turns out that's
Speaker 2: a terrible idea. I was like, come to my senses.
Speaker 2: I was like, why am I dieting for a wedding?
Speaker 2: Like that is not who I am at my core,
Speaker 2: absolutely not. I do not want this. So then I
Speaker 2: put off for ages what I would do because I
Speaker 2: was like, I feel like I've now wasted money on
Speaker 2: this secondhand dress. Yes, I did relist it to try
Speaker 2: and sell it, but like, what do I do now?
Speaker 2: Beck Anyway, analysis prolysis ended with me having to spend
Speaker 2: even more on my dress because I'd left it so late.
Speaker 2: And it turns out that you needed to have like
Speaker 2: a long period of time for your wedding dress to
Speaker 2: be made, so I had to be on like a
Speaker 2: shorter timeframe, which is more expensive. And anyway, it was
Speaker 2: a lot and I ended up wasting a lot of
Speaker 2: money getting to my dream wedding dress. I don't regret
Speaker 2: it for a second because I'm in love with that
Speaker 2: dress and no, I will not be selling it. But ah,
Speaker 2: analysis paralysis in that circumstance cost me a lot because
Speaker 2: I feel like I was throwing good money after bad
Speaker 2: even though it wasn't. And if I had just got
Speaker 2: myself together and worked out what I actually wanted instead
Speaker 2: of putting it off and putting it off, I wouldn't
Speaker 2: have spent nearly as much as what I actually did. Yes,
Speaker 2: let's get back on track. Yes, because I feel like
Speaker 2: both of us have suffered with analysis paralysis. We now
Speaker 2: know what it is, and I'm going to arm you
Speaker 2: today with a toolkit full of mindset shifts and actionable
Speaker 2: tips to be able to push through that analysis paralysis
Speaker 2: and get your decision making Mojo Jojo back.
Speaker 4: That sounds really juicy, so I had to have a
Speaker 4: really quick break before we jump into that. Don't go anywhere, guys,
Speaker 4: Welcome back everyone. We are chatting about analysis paralysis. V
Speaker 4: I'm dying to know how to get myself out of
Speaker 4: the dreaded loop of indecision.
Speaker 2: All right, Beck, this is going to come as absolutely
Speaker 2: no surprise, but you all, oh no. I am a
Speaker 2: big mindset girly, So I think we should start with
Speaker 2: three shifts in your thinking that you can make to
Speaker 2: help you get unstuck. First things first, Now, this one
Speaker 2: is going to be hard for our perfectionists out there,
Speaker 2: But firstly, what you need to do is embrace the imperfection.
Speaker 2: Once you realize that there is no such thing as
Speaker 2: the perfect decision. Aiming for good enough is often, honestly
Speaker 2: the best approach you've heard, the saying before Beck, done
Speaker 2: is better than perfect. There's books called done is better
Speaker 2: than perfect, like they're onto something. The next thing I
Speaker 2: want you to consider, And another key mindset change is
Speaker 2: to accept uncertainty. Not all variables can be controlled, and
Speaker 2: that's actually okay, Beck. Making a decision despite uncertainty is
Speaker 2: how we grow and how new opportunities arise for us.
Speaker 2: And then finally, there's never gonna be a perfect time
Speaker 2: if you're waiting for all your worries to disappear or
Speaker 2: you to be in the absolute perfect position to do
Speaker 2: make a move now, otherwise you're going to be waiting forever.
Speaker 2: Beg how many times do you say to yourself, I'll
Speaker 2: just do it once I xyzm oh my gosh, Beck,
Speaker 2: I'm going to start saving once I earn more money,
Speaker 2: like years real, that's not going to happen. Lifestyle creep's
Speaker 2: going to get you because you already have your head
Speaker 2: in the sand.
Speaker 4: That's so true. And then you think about like when
Speaker 4: you were a year younger or two years younger, and
Speaker 4: you still say the same thing. And honestly, like some
Speaker 4: people literally can't save and invest in all these other things.
Speaker 4: But I totally get that. But if you have the
Speaker 4: capacity to, you'd rather be you know, for example, I'm
Speaker 4: going to be thirty five eventually. I'd rather be thirty
Speaker 4: five with like an extra two hundred bucks of savings
Speaker 4: than yes, you know exactly so going to get there eventually,
Speaker 4: but it may as well have a little bit of
Speaker 4: a surplus, you know.
Speaker 2: And I feel like we're all guilty of it, right
Speaker 2: And my favorite time of the year to be reminded
Speaker 2: that analysis paralysis strikes us all these New years when
Speaker 2: you're like, should I set any New Years resolutions?
Speaker 5: No?
Speaker 2: Because I don't do them?
Speaker 4: Yeah, yep, yeah, yeah, it's a real reminder. It's a
Speaker 4: bit dire, Yeah, unfortunately, but yeah, I think so that
Speaker 4: makes sense. Like I feel like those mindset shifts really
Speaker 4: would feel quite empowering and freeing. But what about when
Speaker 4: it actually comes to making a decision?
Speaker 2: You know, me, I am if nothing predictable. I love
Speaker 2: a good goal setting session. We've got one coming up.
Speaker 2: Vis's on the money soon, not for the audience, but
Speaker 2: for you and I were going to sit down and
Speaker 2: set some goals, which is going to be slay, but
Speaker 2: you know that I never jump into a decision without
Speaker 2: setting some clear goals and working out what is important
Speaker 2: to me. I feel like goal setting is like breaking
Speaker 2: down the big task that feels overwhelming so that it
Speaker 2: can be like small bite sized pieces. And if they're
Speaker 2: not pieces that you feel like you can buy it
Speaker 2: because they're still too big, break them down even further,
Speaker 2: like tiny steps are still steps in the right direction,
Speaker 2: And I think that's really important to remember. The next
Speaker 2: is I really like a deadline. I work really well
Speaker 2: under pressure. In fact, if I do not have a timeline,
Speaker 2: things do happens. So give yourself a really specific time
Speaker 2: frame to decide. Like when you look at a menu
Speaker 2: and can't decide between having the parts that are or
Speaker 2: the pizza, give yourself until the weight it gets back
Speaker 2: to you and then you're forced to make a decision.
Speaker 2: I feel like that's how I always make menu decisions.
Speaker 2: Back Like I'm a really last minute I can't make
Speaker 2: a decision like a brunch on like French toast eggs,
Speaker 2: Oh my god, they've got pancakes, French toast eggs, pancakes,
Speaker 2: And then the way there comes in, I'm like, I'll
Speaker 2: just have a piece of toast. Thanks, Like, I just
Speaker 2: can't make a decision, and then I default back to
Speaker 2: what I always order.
Speaker 4: It's usually the wrong life I'm not trying.
Speaker 2: To it, and then I get bomoyah. I mean, it's
Speaker 2: probably a really good place to start and practice our
Speaker 2: decision making because let's be honest, investing can be overwhelming
Speaker 2: and money decisions can be overwhelming. Like let's start small.
Speaker 2: Let's start reading the menu and have an answer for
Speaker 2: the waiter by the time they get back. Yeah, that
Speaker 2: sounds small, but that's big for me totally.
Speaker 4: And I feel like, yeah, if you start there, like
Speaker 4: that's pretty inconsequential, Like you can't really have that too wrong.
Speaker 4: So practice, practice, practice exactly.
Speaker 2: Practice makes perfect, and setting a deadline is going to
Speaker 2: help you from overthinking and just keep things moving the way.
Speaker 2: It doesn't need to go away for another couple of
Speaker 2: minutes for you to make a decision that's going to
Speaker 2: be the same decision you were going to make at
Speaker 2: that point in time, Like just order the food, you
Speaker 2: know what I mean, I feel it's deep, it's really deep, guys.
Speaker 2: Then what I want you to do, and this is
Speaker 2: where analysis paralysis really sets in right, and that's I
Speaker 2: want you to do your research, but put a limit
Speaker 2: on it. So to really stop the information overwhelm, I
Speaker 2: need you to limit two things, so the amount of
Speaker 2: time that you're going to allow for research, and then
Speaker 2: the amount of sources you are going to use. So
Speaker 2: I like this because then it feels like a university
Speaker 2: project or like a school project. Right, like beck, you
Speaker 2: have five hundred words and you can use three references
Speaker 2: like right. I think that that means that it feels
Speaker 2: a little bit more structured. You feel like you're doing
Speaker 2: your due diligence. But getting started and actually getting some
Speaker 2: skin in the game is going to be the best research.
Speaker 2: And I think that that's what we want to get
Speaker 2: too faster. They're putting my psychology hat back on. A
Speaker 2: law in psychology known as Hicks law actually tells us
Speaker 2: the more choices we have, the longer it takes to
Speaker 2: choose due to the increased cognitive load of processing of
Speaker 2: each option. And do you know what that leads to? What?
Speaker 2: Not actually even making better decisions of course, of course,
Speaker 2: which is kind of since the toast. Yeah, hence the
Speaker 2: toe I love toast.
Speaker 4: That case.
Speaker 2: Honestly, my default option at brunch, if you should care,
Speaker 2: is actually two poached eggs on buttered toast, because there's
Speaker 2: nothing worse than a cafe bringing out your eggs on
Speaker 2: toast with no butter. Like, be for real, who's ordering
Speaker 2: eggs on toast with no butter?
Speaker 1: Beck?
Speaker 4: Yeah's so true? That order will stay with me forever.
Speaker 4: Do you like them runny or hard?
Speaker 2: Just like normal poached eggs? Runny like? If they're hard, like,
Speaker 2: that's actually quite illegal. Yeah. So ultimately you want to
Speaker 2: be informed back, but not overwhelmed, because that actually doesn't
Speaker 2: help anybody, and you don't need to know absolutely everything
Speaker 2: on the topic to make a good decision. And if
Speaker 2: you're listening to this, yes I I am, in fact
Speaker 2: talking to you the person who over analyzes absolutely everything
Speaker 2: and still goes, oh my gosh. But there's still so
Speaker 2: much to learn about investing thee You're right, there is.
Speaker 2: I'm even still learning. But that doesn't mean that you
Speaker 2: stop yourself from getting started.
Speaker 4: Exactly. You can learn on the journey. It's never too
Speaker 4: late to learn, and it's never too early to start.
Speaker 4: All right, I think that I've summarized this whole thing
Speaker 4: and we're done. But no, I'm off, Queen, thank you
Speaker 4: so much. V. I want to know what about when
Speaker 4: you're comparing differences?
Speaker 2: All right, So when I'm trying to compare difference as often,
Speaker 2: I make a spreadsheet. I'm so for those of you interested, recently,
Speaker 2: I traveled to Europe. This is a little bit of
Speaker 2: a flex to remind you that I got to go
Speaker 2: to Europe this summer. But also I made a spreadsheet
Speaker 2: comparing the pros and cons of different travel prams for Harvey.
Speaker 2: And that's who I am at my core. I know
Speaker 2: that not everybody is like that. But what I do
Speaker 2: that you could do is I work out what's important
Speaker 2: to me and then prioritize them in order of importance.
Speaker 2: So if we were talking about investing for exams, Beck,
Speaker 2: I could sit down and go, well, what's the list,
Speaker 2: Like what's important to me? Like I'd say, Beck, you
Speaker 2: want to invest? Yeah? And you go yeah, Well what's important?
Speaker 2: Is it important for you to have ultimate control over
Speaker 2: your shares? Is it important that you have direct shares
Speaker 2: over ETFs? And you might go no, okay, is it
Speaker 2: important that you're an ethical investor? Yes? Or no? Like
Speaker 2: these are so easy to answer. We're not trying to
Speaker 2: do deep amounts of research. But then what I want
Speaker 2: to do is create a pros and cons list. It's classic, right,
Speaker 2: but it's a really effective way to visualize your options
Speaker 2: and then consider the worst case scenarios. There is a
Speaker 2: book called What is the Worst Thing That Never Happened?
Speaker 1: To You?
Speaker 4: That's powerful.
Speaker 2: It's because so often we consider the worst case scenarios
Speaker 2: and then get anxiety from these worst case scenarios, and
Speaker 2: ultimately most of these things never actually happen. Sometimes knowing
Speaker 2: the worst that can happen can actually make the decision
Speaker 2: easier as well. Like, Beck, what's the worst thing that
Speaker 2: could happen? You lose money? Okay, what's your initial investment?
Speaker 2: Like Beck, let's pick one, all right, So let's pretend
Speaker 2: it's fifty dollars. To me, fifty dollars is not a
Speaker 2: trivial amount of money. It is a significant amount. Yeah,
Speaker 2: and you would agree, I think.
Speaker 4: Oh yeah, oh yeah, for sure.
Speaker 2: So when it comes to this fifty dollars, if we
Speaker 2: invested that, Beck, and then oh my gosh, you lost
Speaker 2: it all, is that actually the worst thing to ever happen.
Speaker 4: Not to ever happen.
Speaker 2: That's true exactly. So, like let's try and contextualize this,
Speaker 2: and if putting fifty dollars into the share market and
Speaker 2: losing it is going to be the worst thing that
Speaker 2: ever happened, I think we need to strip back. I
Speaker 2: think we need to go back to our financial house
Speaker 2: and create an emergency fund and do our budget and
Speaker 2: do our cash flow. And I would say that maybe
Speaker 2: you're not ready to invest, because if losing fifty dollars
Speaker 2: is the worst ever and it's going to impact your
Speaker 2: financial life significantly, we need to reassess our goals, right.
Speaker 2: I then also always talk to independent experts, get their advice,
Speaker 2: financial advisors, mortgage brokers. They can be in value all
Speaker 2: sources of information. Literally, it's their job to know everything
Speaker 2: that you don't about that topic. So take advantage of
Speaker 2: it and it might lighten your mental load. And then beck,
Speaker 2: if you're really struggling to choose, do you know what
Speaker 2: I'm going to say.
Speaker 4: I have a feeling?
Speaker 2: Is it when in doubt zoom out?
Speaker 4: Yes, ask yourself.
Speaker 2: If the small differences that you're stressing over right now
Speaker 2: actually what really matters in the long term, Like spoiler,
Speaker 2: they probably don't matter. Yeah, that's so true, And that's
Speaker 2: not to invalidate it. But ultimately, yes, is it going
Speaker 2: to change the trajectory of your entire life? Probably not
Speaker 2: if you pick the wrong ETF today, Beck, do you
Speaker 2: know what you can do? You can invest in it
Speaker 2: for a little while and then change your investment a
Speaker 2: little down the track. It's really easy.
Speaker 4: Yeah, Like, it's not the end of the world. Sure, sure, sure, Okay,
Speaker 4: So let's say hypothetically we've come to a decision. What's next.
Speaker 2: So once we've made a decision, this is the hard part.
Speaker 2: We have to take action. How many times do we
Speaker 2: say to ourselves we've made a decision and then we're like,
Speaker 2: we actually haven't made a decision because we don't want
Speaker 2: to action it. Yeah, We're like, oh yeah, no, no,
Speaker 2: I've decided I'm getting the red one mm hmm. Have
Speaker 2: you ordered the red one back? No? No, no? And
Speaker 2: then all right, well why don't you order it right now?
Speaker 2: And then you go, oh my god, but they've also
Speaker 2: got blue? Do you reckon? I should change to blue?
Speaker 1: Right?
Speaker 2: So we want to make a decision, but then we
Speaker 2: want to take action and actually trigger that. This reduces
Speaker 2: the likelihood of second guessing, Like, just get it done back,
Speaker 2: just pick the red one, order the red one, because
Speaker 2: then if I bring up that there's a blue one,
Speaker 2: you're like, ah Vi, I have actually already ordered it.
Speaker 2: It's all good though. Thanks. Though, if jumping in all
Speaker 2: at once feels like it's too much, beck just start
Speaker 2: small gradual actions can build your confidence. Think about it
Speaker 2: as kind of like dipping your toe in the pool
Speaker 2: before diving right in. I've said this time and time again, like,
Speaker 2: if the steps are too big, make them smaller. We
Speaker 2: can take tiny, tiny steps. If the analysis paralysis you're
Speaker 2: actually experiencing is actually over researching to begin with, like
Speaker 2: you're like, oh my god, I don't even know where
Speaker 2: to start. Google what is an ETF. Today, you just
Speaker 2: took a tiny step in the right direction. So do
Speaker 2: small things that add up back.
Speaker 4: Okay, so Vhie. What I'm taking away from today is
Speaker 4: that you don't need to know every little detail to
Speaker 4: make a good decision. It's all about breaking things down
Speaker 4: into manageable steps and not letting the fear of missing
Speaker 4: out on the quote unquote perfect choice hold you back.
Speaker 4: It's really about simplifying your options and focusing on what's important,
Speaker 4: which will make you feel less overwhelmed. And more confident
Speaker 4: in your financial decisions. Taking action will feel so much
Speaker 4: better than being stuck in indecision exactly.
Speaker 2: And like, there's no such thing as making perfect decisions.
Speaker 2: In fact, some of the worst decisions I've ever made
Speaker 2: I do not regret because they've led me here, right, Yeah,
Speaker 2: like some of the worst decisions. And I'm like, let's
Speaker 2: be honest, was it smart of me to get into
Speaker 2: forty thousand dollars worth of personal debt back?
Speaker 1: Not?
Speaker 2: No one would look at that and be like, oh,
Speaker 2: that's so smart vee. But she's on the.
Speaker 4: Money, was born, She's on the money, exactly.
Speaker 2: And I feel like we all have situations like this
Speaker 2: where I'm not saying, make the wrong decision and just yollow,
Speaker 2: do a little bit of research, understand it. We can grow,
Speaker 2: we can learn, but nothing is going to be perfect.
Speaker 2: And sometimes you can do all the research in the world,
Speaker 2: Beck you can make what you deem to be the
Speaker 2: perfect decision. And then tomorrow Trump could come out and
Speaker 2: say that something happened online, tweet about it, and the
Speaker 2: entire economy could go into a panic, like we can't
Speaker 2: predict the unpredictable. Yeah, it's wild. And I guess the
Speaker 2: last thing I want to leave you on, because I've
Speaker 2: just realized how long we have been recording for Beck,
Speaker 2: is that I don't think we should underestimate the power
Speaker 2: of trusting your gut. No one knows your situation better
Speaker 2: than you do.
Speaker 1: Well.
Speaker 2: Researching and getting advice they're great tools, right, Ultimately, you're
Speaker 2: the one who's going to be the best judge of
Speaker 2: what is right for you. So Beck, I want everyone
Speaker 2: to confidently take a leap of faith and just believe
Speaker 2: in your own ability to make the best decision for
Speaker 2: you in your financial future. At the end of the day,
Speaker 2: it's not gonna be what my decision is. It's not
Speaker 2: going to be what Beck's decision is, and even my
Speaker 2: own Bech's decisions, they're so different. You've got to kind
Speaker 2: of pave your own path. Put those blinkers on, and
Speaker 2: you've got.
Speaker 4: This summed up so perfectly.
Speaker 2: Fee, I love this all right. Well, you're in Sydney,
Speaker 2: my love, so you've got to get back to this
Speaker 2: holiday that you're having. Thank you for doing a little
Speaker 2: episode on analysis paralysis with me. Thank you, And we'll
Speaker 2: see everybody on Friday, and then you'll be back in
Speaker 2: the studio, bright eyed and bushy tailed. Next week for another.
Speaker 4: I will be I'll see you guys, then bye bye.
Speaker 2: Did buy shared on?
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