Speaker 1: Hello.
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
Speaker 2: Order Kerney Whoalbury and a waddery woman. And before we
Speaker 2: get started on She's on the Money podcast, I would
Speaker 2: like to acknowledge the traditional custodians of the land of
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
Speaker 2: the elders, the ancestors and the next generation coming through
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
Speaker 2: the storytelling of you to make a difference for today
Speaker 2: and lasting impact for tomorrow.
Speaker 1: Let's get into it. She's on the Money.
Speaker 3: She's on the Money.
Speaker 4: Hello, and welcome to She's on the Money podcast for
Speaker 4: millennials who want financial freedom.
Speaker 1: Hello v Hello, are you ready to talk about investment?
Speaker 4: Yeah, I'm very ready. I'm very um Would you say interested?
Speaker 1: Is your interest inflated? Its inflated?
Speaker 3: Believe it or not.
Speaker 1: People didn't come here for good jokes, Beck, No, which
Speaker 1: is good because we don't have any that turns out Yeah, no, terrible.
Speaker 1: We actually might get onto the finance content. Yes see
Speaker 1: if that works out better, let's try it.
Speaker 3: Let's try it.
Speaker 4: Yeah, we're talking about investing am I getting this right?
Speaker 4: How to invest in a high inflation environment?
Speaker 1: Strap yourself in Today's Gonna Get Wild. We are back
Speaker 1: with another investing episode. As you can tell, I'm trying
Speaker 1: my hardest to come up with as many topics related
Speaker 1: to investment as possible. Let me ask you a question.
Speaker 1: Do you think it is possible to invest in a
Speaker 1: high inflation environment? Beck?
Speaker 4: Okay, So I'm going to have to break this one
Speaker 4: down real quick because I did not know what high
Speaker 4: inflation actually meant? But it is it true that high
Speaker 4: inflation is the rising cost.
Speaker 1: Of living in jen Yeah? Amazing, that's right, Okay, amazing. Yeah. So,
Speaker 1: I mean if you're not really.
Speaker 4: Affected by it, if you're making enough money to not
Speaker 4: really see a change or that much of a shift
Speaker 4: in your like how much you have to spend or
Speaker 4: how much you have left over at the end of
Speaker 4: the pay cycle, then I don't think that there would
Speaker 4: be a big problem.
Speaker 1: Yeah. I'm getting on this topic. I hope early enough
Speaker 1: so that you guys continue to invest during this period,
Speaker 1: because I've seen some stuff online that says it's not
Speaker 1: worth it, and I couldn't tell you harder, harder? Can
Speaker 1: I tell you harder. I don't know if that's the
Speaker 1: right terminology, but you can. You can do it back right, Okay,
Speaker 1: stress highly enough that it is fine to invest during
Speaker 1: a high inflation environment. So obviously there's a lot of
Speaker 1: privilege in that because during the time of peak inflation,
Speaker 1: other people are struggling. And if this episode for some
Speaker 1: reason is triggering you into feeling like other people have
Speaker 1: things that you currently don't, maybe it's not the episode
Speaker 1: for you. Honestly, I think that mindset is going to
Speaker 1: derail your confidence and make you feel worse off. And
Speaker 1: I think that the best thing we can, I guess
Speaker 1: see for our community is that quote that I use
Speaker 1: all the time, arising hidlifts soulships. Even if you're not
Speaker 1: in the best position of your life right now, that
Speaker 1: doesn't mean that somebody else needs to downplay their circumstances.
Speaker 1: You know, obviously we don't exactly want it rubbed in
Speaker 1: our faces, but someone else should thrive because by some
Speaker 1: other female or some other human being in our community thriving,
Speaker 1: that opens up even more opportunity for you and I
Speaker 1: to be successful. Beck, And I think that is so beautiful,
Speaker 1: yeahhasutely so for anyone who has been listening to Chese
Speaker 1: on the Money. I think you guys knew I was
Speaker 1: gonna say it was always a good time to invest.
Speaker 1: And today we're going to be giving you some tips
Speaker 1: and tricks on how to invest in a high inflation environment.
Speaker 1: We're going to start off with a little bit of
Speaker 1: a recap of why inflation currently sits where it is.
Speaker 1: We'll look at the sorts of investments that are a
Speaker 1: little bit more sexy in this landscape, and we're going
Speaker 1: to be doing a little bit of an investment mindset
Speaker 1: check in too, So strap yourselves in.
Speaker 4: Oh my god, I'm kind of excited. But also if
Speaker 4: you do think that you are not in the place
Speaker 4: to be listening to episode, just know that I'm on
Speaker 4: this journey with you because I also have zero dollars
Speaker 4: all the time. So we're getting better at it and
Speaker 4: getting better at it.
Speaker 3: I am, I am, I am.
Speaker 1: Can I get to sit down very soon and do
Speaker 1: her budget in cashlow? And I cannot wait.
Speaker 3: I'm so excited.
Speaker 1: We're going to bring them budget cashlow masterclass to life
Speaker 1: like you're going to get it in real life. I am,
Speaker 1: she doesn't even know.
Speaker 3: I don't know what I guess I'm explained.
Speaker 1: Do you want to talk about in place? I want
Speaker 1: to do? I want to you do? I do? All right?
Speaker 1: So first things first, I want to start off by
Speaker 1: saying that we are in a super stressful economic situation
Speaker 1: right now, but where possible, I kind of want you
Speaker 1: to try and zoom out and remember that the economy
Speaker 1: is like an ecosystem, or even like the seasons during
Speaker 1: a year, It is never stagnant and things are always
Speaker 1: che What we're in right now is the balancing out
Speaker 1: period of what was uncharacteristically low interest rates. They were
Speaker 1: actually never going to be low forever. And I feel
Speaker 1: like we heard that a lot. People would say things like, oh, beck,
Speaker 1: that money's never going to be as cheap as it
Speaker 1: is today. Maybe I heard that a lot more because
Speaker 1: I worked in money, but people would always say, oh,
Speaker 1: money is cheap right now, it's great time to invest or.
Speaker 1: Money's cheap right now. It's a great time to buy property,
Speaker 1: because you know that makes sense. But in the same way,
Speaker 1: this season is also going to pass, and we are
Speaker 1: going to find a new status and a new update
Speaker 1: and a new I guess normal you could say, so
Speaker 1: it's compening, it's comforting to know, but it's also just
Speaker 1: one of those things where I think, in every circumstance,
Speaker 1: and you know, my business partner Kate in Zella Money,
Speaker 1: because we run a mortgage broken company together. Kate and
Speaker 1: I talk about this all the time, and it's just
Speaker 1: this idea that there was this concept of money so cheap,
Speaker 1: and we would talk to people who'd be like, oh,
Speaker 1: but it's only two percent to borrow, you know, half
Speaker 1: of the million dollars, Maybe I should just got up
Speaker 1: to seven hundred thousand. And a good mortgage broker would
Speaker 1: have talked to you about your personal circumstances and whether
Speaker 1: you can go up to that or whether you shouldn't,
Speaker 1: or what that looks like, and takes your entire picture
Speaker 1: into consideration, Whereas I think a lot of people had
Speaker 1: a few cheeky mortgage brokers who were like, oh, yeah, Beck,
Speaker 1: if you want to take more, take more, money's cheap.
Speaker 1: Whereas you're broker, if they are a good broker, or
Speaker 1: even anyone dealing with you in a money situation, really
Speaker 1: shouldn't be pushing you to take more when it's unnecessary
Speaker 1: or more when it maybe isn't the best financial decision,
Speaker 1: because anyone who works in the money space knew we
Speaker 1: and equivocally knew that two percent wouldn't last. And I mean,
Speaker 1: I'm in that position where I have a mortgage it
Speaker 1: has now gone up. I think my mortgage interest rate
Speaker 1: made me nearly be sick the other day. Grateful that
Speaker 1: I'm in a position where we can still afford. That
Speaker 1: things have shifted, that is fine, But we're like five
Speaker 1: and a half percent now.
Speaker 3: I don't know.
Speaker 1: When we first got our mortgage back, it was at
Speaker 1: two percent. Okay, side mortgage repayments have more than doubled.
Speaker 1: Oh I see, I say that is absolutely not a complaint.
Speaker 1: I'm not complaining about that at all. It's just that's
Speaker 1: the way of the world, right, And I'm grateful to
Speaker 1: have been in a position where when my husband Steve
Speaker 1: and I took on that mortgage, we went, all right,
Speaker 1: how much can we afford? And Kate, who obviously you know,
Speaker 1: helped us out loss. Yeah, I'm going to abuse that
Speaker 1: relationship to it till the day I died. But Kate said, oh,
Speaker 1: you can borrow up to X. No, no, no, no,
Speaker 1: I don't want X. How about I've done my budget
Speaker 1: and cash flow. I think this is going to be
Speaker 1: more obtainable because if things go awry, then I can
Speaker 1: afford it. But then on the flip side, I'm just
Speaker 1: gonna have more free cash flow, more free cash flow sexy.
Speaker 1: I can go on holidays, i can still enjoy my life.
Speaker 1: I can still do heaps of things that I want
Speaker 1: to do. But I'm not in a situation where I
Speaker 1: am kind of like a slave to my mortgage. Yes,
Speaker 1: a lot of people got in the position where they're like,
Speaker 1: oh my god, two percent. I could afford that two percent,
Speaker 1: but hadn't conceptualized what if it doubles, What if it
Speaker 1: goes up to four percent, what if it gets up
Speaker 1: to nearly six percent? What if we actually are in
Speaker 1: a situation where our mortgage interest of payments double. Can
Speaker 1: we actually afford that or with that significantly compromise our lives?
Speaker 1: And a lot of people are in that circumstance right now.
Speaker 1: So it's important to zoom out when we're making any decision,
Speaker 1: but especially when we're talking about investment, because when in doubt,
Speaker 1: zoom out. That's a good phrase. But also, if you
Speaker 1: look at the Australian share market over any thirty year
Speaker 1: period of time, no one has ever lost if they
Speaker 1: stayed invested right thirty years though it is a long time. Yeah,
Speaker 1: I can find you heaps of examples of people that
Speaker 1: put their money in four years later they're like, oh,
Speaker 1: I've been investing for ages and have made no money
Speaker 1: and took it out and made a loss. That would
Speaker 1: absolutely happen. Stay in there, if you stay in the market,
Speaker 1: that is what the most important thing is, getting exposure
Speaker 1: to the peaks and troughs. They might feel really painful
Speaker 1: when the market's off and you're like, I'm not getting
Speaker 1: as much banged from my buck right now, And when
Speaker 1: the market's really on, you're like, oh, making hay while
Speaker 1: the sun is shining. It all averages out to be
Speaker 1: a good return, okay, But if you're exiting the market
Speaker 1: because that trough is really scaring you, that could actually
Speaker 1: mean a lot of financial harm to you. So it's
Speaker 1: actually all about and we'll talk about it later mindset,
Speaker 1: but it's actually all about really conceptualizing and understanding these things.
Speaker 1: And there's been a lot of conversation in our Facebook
Speaker 1: group on Instagram in my dms of victoria or inflation
Speaker 1: is so high, should I still be investing I see
Speaker 1: if it works for you, my friend, Yes, if it works.
Speaker 4: For you, if you can afford it, and everyone can.
Speaker 4: I suppose if you have like a couple bucks.
Speaker 1: Yes, spare. I could talk about this forever, Beck, but
Speaker 1: let's get into the nuts and bolts of it. You
Speaker 1: asked me about inflation.
Speaker 3: Yes.
Speaker 1: Inflation is the general rising prices in an economy over
Speaker 1: a specified period of time. The RBA, or the Reserve
Speaker 1: Bank of Australia, typically targets a low and stable rate
Speaker 1: of inflation of between two and three percent each year,
Speaker 1: which can signify a growing economy. So slow and steady
Speaker 1: wins the race. According to the RBA, inflation, though it
Speaker 1: can creep into the double digits and come as an
Speaker 1: economic shock. Really, Australians annual interest rate, Beck, you're not
Speaker 1: going to be surprised seven point eight percent, okay at
Speaker 1: this point in time, right right right, And it's still
Speaker 1: fluctuating and it's going up and down. So the RBA
Speaker 1: is the bank to the other banks. Sure, so Combank, NAB,
Speaker 1: the big four. They don't just automatically have money. The
Speaker 1: RBA is like the big dog government.
Speaker 3: Bank, Mama.
Speaker 1: They set the rules. They're the big dogs. The RBA
Speaker 1: says our interest rates two percent. But if one of
Speaker 1: the big four banks then says, all right, well I'm
Speaker 1: still going to be providing mortgages to our clients. Well,
Speaker 1: then they're borrowing money from the RBA two percent and
Speaker 1: they actually have to pass along that interest rate, and
Speaker 1: that's what dictates our interest rates here in Australia. The
Speaker 1: big banks, Yeah, they might have heaps and heaps and
Speaker 1: heaps of money, but they actually do borrow from the RBA.
Speaker 1: So if the RBA's cash rate, when that gets said,
Speaker 1: I think sometimes people like, oh, that's a bit confusing.
Speaker 1: That's the amount of money it costs our big banks
Speaker 1: to borrow from the RBA.
Speaker 3: Right.
Speaker 1: So by the RBA increasing their cash rate and saying, look,
Speaker 1: we're going to make borrowing money more expensive, do you
Speaker 1: know what they're doing in that circumstance.
Speaker 3: I don't.
Speaker 1: You're like, nah, you've lost me already. So when the
Speaker 1: RBA increases their rates, what that means is things are
Speaker 1: going to be more expensive for people, like the trickle
Speaker 1: down effect means that me, as a customer of one
Speaker 1: of the banks, because I have a mortgage, my life's
Speaker 1: going to get more expensive. My mortgage rates are going
Speaker 1: to increase. I'm going to have less disposable income, which
Speaker 1: means there's less disposable income going around in the economy,
Speaker 1: which means inflation can't creep up as fast. So the
Speaker 1: RBA are increasing their cash rates and saying, look, we're
Speaker 1: going to borrow money out at a higher rate because
Speaker 1: we don't want inflation to go wild. And after COVID,
Speaker 1: I feel like COVID put a little bit of a
Speaker 1: hold on inflation for a while there, and then everything
Speaker 1: went back to let's call it business as usual or
Speaker 1: our new normal or whatever everyone's calling it. Everyone was like, okay, cool,
Speaker 1: we are going to have to start pushing some of
Speaker 1: these you know, increases in price onto our consumers. And
Speaker 1: everything went like this, like travel has gone wild. Travel
Speaker 1: can't happen in my family as easily if I'm paying
Speaker 1: more on my mortgage. They're trying to keep our economy
Speaker 1: a little bit slower. We're trying to slow the growth
Speaker 1: of our economy. Does that make sense that I have
Speaker 1: or if you had less money to spend on things
Speaker 1: that were important to you and you really had to
Speaker 1: prioritize maybe just the basics for a little while yep,
Speaker 1: the rest of the economy and the businesses around that
Speaker 1: they aren't growing as much because you're not funding them. Right,
Speaker 1: So if those businesses aren't being funded, the economy growth
Speaker 1: starts to slow. And if economy growth starts to slow,
Speaker 1: it gets back to that two and three percent that
Speaker 1: the RBA is trying to target to mean that we
Speaker 1: have slow and steady growth instead of such rapid growth
Speaker 1: that we can't afford things. Rental crisises happen, things that
Speaker 1: were previously affordable and not affordable anymore, and it gets
Speaker 1: out of control. So the RBA, as much as a
Speaker 1: lot of people online are like a a'd awful, They've
Speaker 1: increased the cash rate. Again, it's the worst. That's them
Speaker 1: trying to do their best. Okay, it's them trying to
Speaker 1: do their best to make sure that our economy gets
Speaker 1: back to a more stable environment.
Speaker 4: Okay, that's good to know. I was going to ask
Speaker 4: why does inflation matter? But I guess you did kind
Speaker 4: of answer it in that it's inflation matters.
Speaker 1: It's an invocator of a growing environment and a growing economy.
Speaker 1: Like it can be a really sexy thing, right, Like
Speaker 1: looking at she's on the money. The rate of inflation
Speaker 1: in She's on the Money has been really beautiful four
Speaker 1: years ago the podcast started and it's kind of gone
Speaker 1: up and up and up from there. But what if
Speaker 1: absolutely every business in the entire economy did that. Where's
Speaker 1: the money coming from to fund that type of growth
Speaker 1: in every single business in Australia? Ah okay, I see,
Speaker 1: we just don't have the cash to support that. And
Speaker 1: when you do, it comes from other places. And when
Speaker 1: you have an environment where inflation keeps increasing, people kind
Speaker 1: of get greedy in a way, right, I see, And
Speaker 1: it's just it's not a nice environment to be in.
Speaker 1: So inflation matters because essentially it takes your dollar and
Speaker 1: makes it worthless. Let's talk about I recently gave someone
Speaker 1: in our team pay rise, right, and the way that
Speaker 1: I calculate pay rise is you know, I'm really proud
Speaker 1: of it because the way that I calculate it, I
Speaker 1: think is the way everyone should calculate it. And I said,
Speaker 1: all right, what's the rate of inflation? Seven point eight percent? Great,
Speaker 1: we'll start there. You get a seven point eight percent
Speaker 1: increase in your pay this year.
Speaker 3: That's very nice.
Speaker 1: It's not nice from my perspective. That for me is
Speaker 1: the bare minimum sure, because if inflation has increased by
Speaker 1: seven point eight percent, my team member is having her
Speaker 1: expenses increased by that. So today, if I had not
Speaker 1: given her a pay rise, she wouldn't be able to
Speaker 1: afford the same groceries that she was able to afford
Speaker 1: last year. Is that fair?
Speaker 3: Doesn't feel like it?
Speaker 1: No, I don't think it's fair either. So above and
Speaker 1: beyond that, we can then talk about what pay rice
Speaker 1: she deserved. But I thought, as an employer, I needed
Speaker 1: to go, Okay, Well, if this individual can not afford
Speaker 1: to buy the same groceries and put the same roof
Speaker 1: over her head this year as she could last year, Like,
Speaker 1: let's pretend bread went up. It absolutely has. But let's
Speaker 1: pretend last year a loaf of bread was four dollars.
Speaker 1: This year it might be six dollars. That's two dollars
Speaker 1: less you have in your account for something else. Right,
Speaker 1: life is just more expensive today than it was last year.
Speaker 1: And that's essentially what inflation does. Inflation kind of erodes
Speaker 1: your purchasing power over time, and as it kind of
Speaker 1: takes hold, a dollar is going to buy fewer things
Speaker 1: then you could purchase previously I see.
Speaker 4: Okay, well, I have so many questions right now, and
Speaker 4: I don't even know where to start. But if I'm
Speaker 4: just curious, this is silly. But if the inflation rate
Speaker 4: goes back down and the cost of living kind of
Speaker 4: like steadies out again, we take that money back from
Speaker 4: your employee.
Speaker 1: Yeah, of course, no, I will not, absolutely not, because
Speaker 1: it doesn't go backwards.
Speaker 3: That's scary.
Speaker 1: It might go backwards, right, okay, But like if you
Speaker 1: look at a graph over time and we started tracking it,
Speaker 1: it might go back down. But that's not going back
Speaker 1: down as in hey beck, stuff's actually just whole heap cheaper. Now.
Speaker 1: The rate of growth of things increasing has just slowed.
Speaker 1: So that loaf of bread it's now six dollars, that's
Speaker 1: the base rate, but it's not going to creep up
Speaker 1: to seven dollars as quickly as it was the year before.
Speaker 1: Right does that make sense?
Speaker 3: That doesn't make sense.
Speaker 1: It's not that. Okay, Well now it's back down to
Speaker 1: two percent. No, no, no, that's seven point eight percent.
Speaker 1: Was a line in the sand. Now we're moving along
Speaker 1: and it's just going to take less time, and it's
Speaker 1: just going to mean that growth happens a little bit
Speaker 1: more slowly, So the RBA going back to them setting
Speaker 1: the cash rate they want between two and three percent
Speaker 1: every year. Right now, things are growing way more than that.
Speaker 1: They're trying to drag us back down so that growth
Speaker 1: doesn't happen. I see so hearing this, Yes, I'm thinking
Speaker 1: this is awful, terrible, very scary. But are there any God, Yeah,
Speaker 1: I'm kind of like Okay. As I said before, inflation
Speaker 1: is actually a good thing. There's a reason the RBA
Speaker 1: actually has a target of inflation, not keeping things the same,
Speaker 1: because that is a good predictor of a strong and
Speaker 1: good and stable and reliable economy. We want to grow.
Speaker 1: As we said before, slow and steady wins the race,
Speaker 1: so we actually want it to be between two and
Speaker 1: three percent. Sometimes it goes backwards, sometimes like right now,
Speaker 1: it is higher. Low and stable inflation is a good indicator,
Speaker 1: or can be a good indicator to be a little
Speaker 1: bit more economically correct of a growing economy. It benefits
Speaker 1: holders of fixed rate debts like mortgages. So a lot
Speaker 1: of people have been messaging me recently, like about to
Speaker 1: come off my fixed rate, and I don't know what
Speaker 1: to do. Talk to mortgage broken. My friend asap. It
Speaker 1: encourages consumption today rather than later, so we're not like
Speaker 1: saving up for things as we were before. So like
Speaker 1: the holidays and stuff, they kind of come to a
Speaker 1: grinding holt because we can't afford them. But then there
Speaker 1: are obviously a few cons As you said, it does
Speaker 1: feel a little bit negative. Inflation reduces your purchasing power
Speaker 1: since essentially every dollar that you have purchases less stuff,
Speaker 1: higher prices throughout the economy ends up hurting retail consumers.
Speaker 1: It's very tough on retirees that are living on fixed incomes.
Speaker 1: If you've predicted that you're going to have X amount
Speaker 1: every single year, obviously when things absolutely spike, that's unforeseen
Speaker 1: and you just have a fixed income, and then it
Speaker 1: does prompt action by the RBA. So the RBA is
Speaker 1: the Reserve Bank of Australia that we've been talking about.
Speaker 4: Yes, absolutely, So back to the idea of seasons, every
Speaker 4: season has its possibility. Then what are the possibilities of
Speaker 4: this high inflation environment.
Speaker 1: Well, inflation is a great season I think to kind
Speaker 1: of re examine your portfolio and what your strategy is doing.
Speaker 1: I think any economic pressure is good for you as
Speaker 1: an individual. To kind of like re prompt how you
Speaker 1: feel about things, because when we start our investment journeys
Speaker 1: often we're really gung ho and we're so excited about it.
Speaker 1: And I get it because I am too. Like I
Speaker 1: remember starting investing out, I'm like, I'm going to be rich.
Speaker 1: I am setting myself up for a very secure financial future,
Speaker 1: and I cannot wait. But then, like the economy starts
Speaker 1: to take hold and you kind of see the effects
Speaker 1: of did in your portfolio, and you feel a little
Speaker 1: bit uncertain, or you feel a little bit unsure, and
Speaker 1: things get rocky and you're not sure if you should
Speaker 1: exit the market or stay, or do I put some
Speaker 1: more in. But we really shouldn't be burying our heads
Speaker 1: in the sand at this point. We need to re
Speaker 1: examine our portfolio to make sure it's actually a lot
Speaker 1: to our values and our goals and what we're trying
Speaker 1: to achieve. One of the best strategies in a time
Speaker 1: like this is actually to ensure that you're properly diversified
Speaker 1: and fully invested. Money invested into shares tends to outpace
Speaker 1: inflation in the long run, So you might be looking
Speaker 1: at your portfolio today amally the I don't know what
Speaker 1: you're talking about. My portfolio has returned five percent and
Speaker 1: you just said inflation is seven point eight percent. I
Speaker 1: think I'm going backwards. But when we look at the
Speaker 1: numbers and we actually look at the data, yes, for
Speaker 1: a point in time, that might be absolutely true, and
Speaker 1: I will not argue with you on that. But again,
Speaker 1: when in doubt, zoom out and look at the bigger picture,
Speaker 1: and usually it ends up or most of the time,
Speaker 1: it ends up outperforming what inflation was because this rate
Speaker 1: of inflation will not exist for as long as the
Speaker 1: rate of growth in your investment portfolio. So we know
Speaker 1: that over the last twenty years, the average rate of
Speaker 1: return of the Australian share markets about eleven percent, right, Okay,
Speaker 1: So obviously that's just the Australian shair market. There's lots
Speaker 1: of different share markets and that's not a promise that
Speaker 1: your portfolio will return that. It's just that's the fact
Speaker 1: of the matter when it comes down to the data.
Speaker 1: So yeah, I think it's very pretty So now's the
Speaker 1: time to maybe have a think about some additional things
Speaker 1: that you could add to your portfolio that might make
Speaker 1: sense if you only have shares and if you've got
Speaker 1: some cash, maybe you would consider things like maybe some
Speaker 1: investments in real estate. You can invest in real estate
Speaker 1: via shares if you want to do that. You don't
Speaker 1: have to go out and buy a family home or
Speaker 1: an apartment to do that. Commodities or even Treasury indexed
Speaker 1: bonds they often serve as a further diversification support for
Speaker 1: your portfolio. Cash on the sidelines is essentially guaranteed to
Speaker 1: lose money. Not that sexy. So right now, if you've
Speaker 1: got ten thousand dollars in a cash account just sitting there,
Speaker 1: absolutely no interest rate on their bank account, it's working
Speaker 1: at negative seven point eight percent, like having a desk.
Speaker 1: It's costing you seven point eight percent per anm right
Speaker 1: now to not have that money working for you. But
Speaker 1: people don't see it that way, no, Because right now
Speaker 1: I can see ten thousand dollars in that account, and
Speaker 1: let's pretend I have absolutely no fees on that account,
Speaker 1: and I just let it sit dormant for the next
Speaker 1: twelve months. I'll go back in twelve months that account
Speaker 1: will have ten thousand dollars exactly in that account. It's
Speaker 1: not going to have seven point eight percent less, but
Speaker 1: that ten thousand dollars will buy you seven point eight
Speaker 1: percent less of stuff than it was able to today
Speaker 1: when you had the opportunity to invest it and you didn't.
Speaker 3: That is a.
Speaker 1: Really, really good I'm realated, dramatic Thanks for coming.
Speaker 4: Oh I love this because I was going to say
Speaker 4: I should not be doing this, but I started putting
Speaker 4: money in a piggybank thinking that that was a.
Speaker 3: Good It's a good start. I'm going to not do that.
Speaker 1: No, but looking at your financial circumstances, that works. Does
Speaker 1: it mean that I'm not sitting on some cash. Absolutely not.
Speaker 1: I absolutely have a savings account. You're not going to
Speaker 1: touch that. I'm not going to invest that. I have
Speaker 1: an emergency fund. I will not be investing that because
Speaker 1: the entire purpose of an emergency fund is to have
Speaker 1: access to quick cash and capital, and that's that money's job.
Speaker 1: I don't want you to take from this that every
Speaker 1: single dollar you have needs to be invested and you
Speaker 1: need to be getting a return otherwise it's not worth it.
Speaker 1: That's not what we're saying. But I think we need
Speaker 1: to drive home this. If you've been thinking about investing,
Speaker 1: then yeah, like it's a good time to have a chat.
Speaker 1: But if you have an emergency fund that's doing its job,
Speaker 1: it's not meant to be there. Yeah, And I know
Speaker 1: you're in the circumstance because we talked about it openly
Speaker 1: before where you're like, I just need to start saving.
Speaker 1: That's a bloody great start.
Speaker 3: Cool, Okay.
Speaker 1: I don't want you to think that me having this
Speaker 1: conversation about it now is a good time to invest. Like, yes,
Speaker 1: if you're in the financial position to invest, it's gonna
Speaker 1: cost you a lot more long term if you invest
Speaker 1: at a time that you can't afford, because what happens
Speaker 1: twelve months from now you have to pull that money
Speaker 1: out to afford something else, and you lose money because
Speaker 1: the sheer market might not have recovered yet. That's a
Speaker 1: really bad outcome, right, So I think it's really important
Speaker 1: to make sure that you're making decisions that are based
Speaker 1: on you, not the way that that example came across.
Speaker 1: So that example, I still stand by it. It's a
Speaker 1: great example because the purchasing power of ten thousand dollars
Speaker 1: today is going to be less if you don't do
Speaker 1: anything with it in twelve months. And if that motivated
Speaker 1: you to go and invest, that's sexy. Yes, But if
Speaker 1: you were like, yeah, but the that ten thousand dollars
Speaker 1: is my emergency fund, I'll go get it. Quain, leave
Speaker 1: it there. That makes absolute sense. But what we want
Speaker 1: is the education to know that every dollar in your
Speaker 1: account has been thought about and has been allocated a job.
Speaker 1: If that money's job is to make you money, then
Speaker 1: go get it. But if that money's job is to
Speaker 1: keep you feeling safe, leave it there. Yeah, does that
Speaker 1: make sense?
Speaker 3: That makes so much sense.
Speaker 1: I love that.
Speaker 4: Okay, thank you so much for that. I think it's
Speaker 4: a really good place to leave it for Now.
Speaker 3: Let's stick have a.
Speaker 4: Little break and come back and.
Speaker 3: Talk more about it. Okay, we're back, and welcome back
Speaker 3: to you.
Speaker 1: I always get so fired up on these episodes.
Speaker 4: I'm like, let's talk about investments, and then I know
Speaker 4: it's time for you to have a little tea, a
Speaker 4: little breather.
Speaker 1: We all know that was a fake break. Again, back,
Speaker 1: I've got to pay you. No one on this team
Speaker 1: doesn't get paid.
Speaker 3: That's true, that's true. It was a fake break. Okay,
Speaker 3: it was a fake break.
Speaker 1: It was a fake break. But you get to talk
Speaker 1: about chairs e's and like, I do feel like Chazy's
Speaker 1: are a part of our team. Like, yeah, ten out
Speaker 1: of ten, very good team, very good people. Do you
Speaker 1: know what they love my dog? Oh yeah, well there's.
Speaker 3: A place at our table for them.
Speaker 1: Exactly.
Speaker 3: Let's get back.
Speaker 4: To the investment chat. Exciting, exciting, fun investment chat.
Speaker 1: All right, let's make this conversation a little bit more confusing. Okay,
Speaker 1: have you heard of like hedging an investment hedging? Yes? Yeah,
Speaker 1: like hear it on like the show's like suits, Yes,
Speaker 1: where you.
Speaker 4: Like plot your session in several different areas and some
Speaker 4: that are competing, like say, for example, I can't actually
Speaker 4: I'm really doing probably a bad job.
Speaker 1: No studies study? Is that?
Speaker 3: Just forget everything I see?
Speaker 1: No, I really liked where you were going with that.
Speaker 1: Let's maybe talk about inflation hedges in the case. So,
Speaker 1: a hedge in finance means to take an offsetting position.
Speaker 1: Who are absolutely correct? You kind of like you know
Speaker 1: hedge a bet? You might go, oh, well, what if
Speaker 1: it doesn't work out? So in real estate, single family
Speaker 1: homes financed with low fixed rate mortgages tend to perform
Speaker 1: well during periods of inflation. Do you know why we
Speaker 1: know that because TikTok's going wild about how much they
Speaker 1: are costing to lease out at the moment. A right like,
Speaker 1: I always talk about TikTok because I basically live on TikTok.
Speaker 1: Am I creating enough content on there? Hell? No, am
Speaker 1: I just consuming the content mindlessly scrolling my life away.
Speaker 1: Hell yes, that's what I'm doing. As inflation climbs, your
Speaker 1: property is likely to appreciate in value while the monthly
Speaker 1: service cost of your mortgage either stays the same or
Speaker 1: slightly increases. This is at the core of home equity,
Speaker 1: which can rapidly increase your net worth very very sexy.
Speaker 1: By purchasing real estate, you'll also they call it insulating.
Speaker 1: You're also insulating yourself from rising rents, as they are
Speaker 1: likely to rise during inflation surges. We do need to
Speaker 1: take into consideration. They're obviously the rising costs of mortgage repayments,
Speaker 1: because as I said before, might have more than doubled.
Speaker 1: And that makes me feel quite sick because I know
Speaker 1: that it's not just me that's happening too. Again, super
Speaker 1: grateful to be in a position where that is not
Speaker 1: putting significant stress on our lives. We just have to
Speaker 1: reshuffle a few things maybe push a few goals off
Speaker 1: a little bit, and I feel grateful that we're in
Speaker 1: that position. But for some people, mortgages right now are
Speaker 1: absolutely destroying them. Let's just be honest about that. The
Speaker 1: second thing we want to talk about is what's called
Speaker 1: a value share or a value stock if you're a
Speaker 1: little bit more American. Some research has shown that value
Speaker 1: shares tend to do better than growth stocks during periods
Speaker 1: of inflation, which I think is interesting because we have
Speaker 1: done a whole series on what a value share is,
Speaker 1: what a growth share is, how all of these things work.
Speaker 1: So if you haven't listened to that, please go back
Speaker 1: and have a listen, because I feel like there was
Speaker 1: so much information in that that people said was really
Speaker 1: powerful and really helpful. But value shares are companies that
Speaker 1: have strong earnings relative to their current share price. They're
Speaker 1: also known to have like really good cash flows, which
Speaker 1: investors typically value when prices are rising. When prices a
Speaker 1: rising and things are getting more expensive, you know what's
Speaker 1: really sexy knowing that the company you're investing in has
Speaker 1: lots of money coming in the door. That makes me
Speaker 1: feel really good. Probably not if you're poor. To Davis
Speaker 1: Holmes like, that's not going to work out.
Speaker 3: I heard about that.
Speaker 1: Yeah, not great. But do you know what it is
Speaker 1: great about that? And I said to you guys, this
Speaker 1: would happen is that all of those Porter Davis contracts
Speaker 1: have been bought or transferred over to another company to finish.
Speaker 1: So people aren't going to be left in the loach.
Speaker 1: What is I treat hold on, hold on, It's going
Speaker 1: to be okay. Someone is going to want those contracts
Speaker 1: to finish your houses. It is okay. But a company
Speaker 1: like Porter Davis as a good example of that, because
Speaker 1: I feel like it's been all over the media and
Speaker 1: we've all heard about it had terrible cash flow and
Speaker 1: could not keep up with the rising cost of prices.
Speaker 1: And that's not a reflection on them having terrible work
Speaker 1: or being a bad company or any of those things.
Speaker 1: But if you don't have money coming in the door,
Speaker 1: you can't pay your contractors, you can't pay your stuff.
Speaker 1: The business has to end. Like that's just a matter
Speaker 1: of fact. I suppose, on the other hand, something like
Speaker 1: a growth share it tends to be a little bit
Speaker 1: more sensitive to change in interest Over the past decade,
Speaker 1: when inflation has been conspicuously absent. Growth stocks have enjoyed
Speaker 1: a pretty good period, but lately value shares have been
Speaker 1: I guess staged for a comeback. The current environment makes
Speaker 1: their continuing success likely, though, So would you say what
Speaker 1: is better? I mean, I think that's a question that
Speaker 1: might pop up. B Is a value share better than
Speaker 1: a growth share? The answer is no, nothing's better. Like
Speaker 1: different things perform well in different economies and different periods
Speaker 1: of economic change, it does not mean one should be
Speaker 1: preferenced over the other. That's why we promote having a
Speaker 1: really well diversified portfolio. It's why we talk about, you know,
Speaker 1: having some here, having some there, making sure that you
Speaker 1: don't have all your eggs in one basket. Because if
Speaker 1: you've got some growth stocks that are good companies, maybe
Speaker 1: they're not performing as well as they could during this period.
Speaker 1: They're just chugging along doing their best. Your value stocks, though,
Speaker 1: they're the ones like pulling away. They're the ones putting
Speaker 1: in the hard yards during this period of time, so
Speaker 1: that you know, if the value stocks or the value
Speaker 1: shares are doing really well up here and there, your
Speaker 1: growth shares they just trying their best. They're just trying
Speaker 1: to get in this economy. Over time, the average of
Speaker 1: your overall return is going to be a good average.
Speaker 1: You're not going to get the highs of the highs,
Speaker 1: You're not going to get the lows of the lows.
Speaker 1: Everything will kind of balance out, and that is what
Speaker 1: we want from investment. We just want to be safe.
Speaker 1: I don't want to just have one thing that does
Speaker 1: really well in only one economy. So like playing board games,
Speaker 1: you just want a little bit of everything. In your
Speaker 1: next role, you don't know what you're going to get,
Speaker 1: but you're probably going to have a good.
Speaker 4: Shot exactly, Exactly, like Monopoly, you've got to buy the
Speaker 4: light blues and the dark blues exactly.
Speaker 1: I've recently got into a board game called this is
Speaker 1: just showing how nerdy I am. It shows how nerdy
Speaker 1: I am. Like, take us to the next level. Okay,
Speaker 1: I've paid for and download an app on my phone
Speaker 1: so that I can play the board game all my
Speaker 1: flights Katan.
Speaker 4: Oh my god, same v serious the eight dollars one?
Speaker 3: Can we play?
Speaker 1: Can we play Togain?
Speaker 4: I did not know you were into Katan Okay obsessed, but.
Speaker 1: It's like that, right, like you don't know what's going
Speaker 1: to happen next, Like you don't know if you're going
Speaker 1: to need to build a road or you're going to
Speaker 1: be able to buy a car, Like you don't know
Speaker 1: if you're going to be able to build a city,
Speaker 1: because like on the next roll, you could be given
Speaker 1: a whole heap of different resources. But like it's good
Speaker 1: to just have like one in the bank, freach because
Speaker 1: like or if you can't really do much, well I
Speaker 1: just build a road, you.
Speaker 4: Know, exactly, don't exact all your eggs in the brick bus.
Speaker 1: Exactly, you don't want to. And if you do have
Speaker 1: six bricks, do you know what you do? You go
Speaker 1: into the trade and you trade four bricks for one straw.
Speaker 3: Anyway, we can definitely talk exactly excited.
Speaker 1: Alright, alright, you can come over. We can have a
Speaker 1: wine night where we play Katan.
Speaker 3: Real life, Ktar real life.
Speaker 1: I have the board game. I bought it online. Okay, cool,
Speaker 1: let's go to the easter. One of our friends brought it
Speaker 1: down and I was like so skeptical, right, No, I
Speaker 1: was skeptical. Oh yeah, I don't know about this game.
Speaker 1: Was one of Steve's mates. So I just thought it
Speaker 1: was like.
Speaker 3: You know, dumb boygo, dumb boygo.
Speaker 1: I am the dumb boy for it.
Speaker 3: Unfortunately we are the dumb boys now, all right.
Speaker 1: Well, you know what dumb boys like to do. They
Speaker 1: also like to use complicated words like commodities. Yeah, that
Speaker 1: is the next thing I want to talk about, So
Speaker 1: to commodities, complicated word for what is essentially things like
Speaker 1: gold and other precious metals, Like can you just say
Speaker 1: you're invested in gold? Yeah, Like it'd be a lot
Speaker 1: easier than gold and other precious metals, as well as
Speaker 1: things like raw materials and various natural resources, which are
Speaker 1: critical to production. As demand increases, prices rising the economy,
Speaker 1: and the cost of production to meet that demand typically
Speaker 1: rises accordingly. So I can tell you this is true
Speaker 1: because the steel in my house is double what it
Speaker 1: was when I got quoted to pay for it last year,
Speaker 1: and now I have no other choice but to pay
Speaker 1: double for the renovation we're doing. And that's okay, again,
Speaker 1: very privileged position to be. But man, I'm feeling it.
Speaker 1: I'm a little bit salty about it.
Speaker 3: Yeah, but can you go no steal or you is it?
Speaker 4: You?
Speaker 1: You got to you got to get the steal. You
Speaker 1: gotta get the steal, I feel you. Even though commodities
Speaker 1: don't pay dividends or represent any underlying business, they are
Speaker 1: disconnected to the traditional asset classes like shares and bonds,
Speaker 1: and they actually tend to move in an unrelated direction.
Speaker 1: So they're a good way of diversifying. Treasury indexed bonds.
Speaker 3: Yes, good, I was going to ask you about this one.
Speaker 1: Bonds are sexy. I think they're really hot. They're really underrated. Actually,
Speaker 1: I feel like a bond is like a happy medium
Speaker 1: between if you're not willing to take on as much
Speaker 1: risk as a share, but you also don't want your
Speaker 1: money just sitting in cash. There's something that if that's
Speaker 1: your circumstance, you might consider. So Treasury indexed bonds, very specific,
Speaker 1: are medium to long term securities where the capital value
Speaker 1: of the security is adjusted for movements in the CPI.
Speaker 1: So in the Consumer Price Index, just paid quarterly hot
Speaker 1: at a fixed rate on the adjusted capital value at maturity.
Speaker 1: So maturity just means at the end of the time
Speaker 1: that you agreed to invest for mm.
Speaker 3: Hmm, Well, what's it?
Speaker 1: All these confusing more ridiculous? Isn't it? Like I get
Speaker 1: it that you get it now? But the fact that
Speaker 1: I have to explain something that shouldn't need explaining, Like
Speaker 1: why can't we just be like, yeah, okay, at the
Speaker 1: end of the term that you agreed to invest, so
Speaker 1: at the maturity of the loan or at the maturity
Speaker 1: of the investment. In this circumstance, investors receive the adjusted
Speaker 1: capital value of the security. So do you know what
Speaker 1: that means. Means you get your cash back, oh, initial
Speaker 1: investment back, but it will be adjusted based on CPI.
Speaker 1: So that's okay, We're all right with that. The value
Speaker 1: adjusted for movement in the CPI is done over the
Speaker 1: lifetime of the bond, not just like what it is today.
Speaker 1: So if you were pulling it out today, like let's
Speaker 1: say that your bond matured today, it wouldn't be at
Speaker 1: seven point eight percent. It would be you know, if
Speaker 1: you were in a ten year bond, it would be
Speaker 1: averaged out over those ten years. So it's a little
Speaker 1: bit more palatable than that seven point eight So it's
Speaker 1: not as scary as you think it is.
Speaker 3: But yeah, gotcha, gotcha, gotcha.
Speaker 1: Okay.
Speaker 4: The podcast before, Yeah, you know what we have spoken
Speaker 4: about and you haven't mentioned yet, and I'm kind of
Speaker 4: getting concerned. You usually talk about Warren Buffett.
Speaker 1: Yeah, because he's real hot.
Speaker 3: I haven't seen him. Can you show you a picture
Speaker 3: after this?
Speaker 1: I'll show you a picture now so I can get
Speaker 1: your response.
Speaker 3: Okay, let's do it.
Speaker 4: Oh No, honestly, I thought he's kind of cute.
Speaker 1: I mean, I mean, Beck, he's like the type of
Speaker 1: guy that he just looks like he would line up
Speaker 1: behind you at the supermarket and you'd let him cut
Speaker 1: in line. I wouldn't let a single soul. Yeah, okay
Speaker 1: in line. Do you know what that's because you're not
Speaker 1: very nice? But I reckon he's pay you bill if
Speaker 1: he was behind your supermarket. Well, he know what he's worth.
Speaker 1: What do you want to guess what that man? Look
Speaker 1: at it.
Speaker 3: He's sound familiar.
Speaker 1: Yeah, yeah, yeah, he's going to say yeah because he's
Speaker 1: see it. Oh, he's the most famous investor in the
Speaker 1: entire world.
Speaker 3: Eleven billion no oh.
Speaker 1: You read that role That was one hundred and thirteen
Speaker 1: point eight billion dollars is what he's currently valued. He's
Speaker 1: ninety two years old for those of you playing along
Speaker 1: at home, and is basically an American businessman and investor
Speaker 1: who has a very, very big following. And he is
Speaker 1: very rich because of his investment decisions, not because he
Speaker 1: has built super good businesses or came from family wealth.
Speaker 1: He's essentially made all of his money by relying on
Speaker 1: time tested rules of value investing if you are interested.
Speaker 1: And I just think that's really really sexy. Like I mean,
Speaker 1: he's one of the most frugal people in the entire world.
Speaker 1: He still drives his original car, original car.
Speaker 3: That's cute.
Speaker 1: So he Yeah, he still drives his original car. And
Speaker 1: I'm just getting up a picture for Beck which you
Speaker 1: guys can google and I might even put it on
Speaker 1: my Instagram stories today. But that's his house. It's all
Speaker 1: he needs. Cute, little modest I do wonder sometimes, like
Speaker 1: he does have a very modest family home in America,
Speaker 1: and that's very exciting. But what kind of security do
Speaker 1: you reckon he needs on that given who he is
Speaker 1: and what's going on?
Speaker 3: Oh true, I just.
Speaker 1: Go hold up, hold up. If you're worth one hundred
Speaker 1: and thirteen point eight billion dollars, like you don't just
Speaker 1: get to walk home without any type of risk kind
Speaker 1: of overarching that circumstance. Well, he's a dude, so yeah,
Speaker 1: you're right, And I need two year old guy who
Speaker 1: he can defend himself to defend himself. No, he probably
Speaker 1: needs some help. But that's a very good question. Actually, yeah,
Speaker 1: so google it. We both agree that we'ren Buffett. Oh
Speaker 1: sexy smash.
Speaker 3: Yeah, yeah, oh smash for sure.
Speaker 1: You're right. I'm going to do a TikTok of all
Speaker 1: the famous investors and it'll be just like one of
Speaker 1: those Smash or past serieses.
Speaker 3: Yeah, let's do it.
Speaker 1: Yeah done.
Speaker 3: Okay.
Speaker 4: So, so since we're talking about Warren Buffett, Yeah, it's a
Speaker 4: real yeah, real hottie. What does it usually say in
Speaker 4: trying times like this?
Speaker 1: So he has so many good quotes and if you've
Speaker 1: ever heard me say, oh my gosh, yeah, look, I've
Speaker 1: just stolen a lot of things that he said.
Speaker 3: Can't you.
Speaker 1: Yeah, he's inspirational. Yeah, he says, all right, So the
Speaker 1: first best thing you can do to protect against inflation
Speaker 1: is to invest in yourself and your skills. He says,
Speaker 1: if you're the best teacher, if you're the best surgeon,
Speaker 1: if you're the best lawyer, you will get your share
Speaker 1: of the national economic pie, regardless of the value of
Speaker 1: whatever the currency may be. Isn't that interesting hmmm, I
Speaker 1: feel like it's just like you've just been like, I
Speaker 1: don't get what he means.
Speaker 3: It was too fast for me.
Speaker 1: So essentially, he says, if you're the best in your field,
Speaker 1: you're always going to be valued and be able to
Speaker 1: generate a good income, regardless of what the economics at
Speaker 1: the time are doing. Right. So, like, if you prove
Speaker 1: your value and you invest in yourself and you invest
Speaker 1: in your skills to become the best of the best,
Speaker 1: that is not going to betray you because you're in
Speaker 1: trying times. We see, you know, we've got the tech
Speaker 1: redundancies going on right now. They're not going to lose
Speaker 1: the people that are integral to their companies, are they
Speaker 1: very true? They're going to try and cut the people
Speaker 1: that they go Okay, cool, we could get another XYZX
Speaker 1: at some point in the future.
Speaker 3: Yeah.
Speaker 1: The second best protection is a wonderful business, which means
Speaker 1: a company in which the products are in demand even
Speaker 1: if the company does have to raise their prices. Companies
Speaker 1: that tend to withstand an inflationary environment quote must have
Speaker 1: two characteristics. The first is an ability to increase prices
Speaker 1: rather easily even when the product demand is flat and
Speaker 1: capacity is not fully utilized without fear of significant loss
Speaker 1: of either market share or unit volume. And the second
Speaker 1: is an ability to accommodate large dollar volume increases in
Speaker 1: business often produced more by inflation rather than by real growth,
Speaker 1: with only minor additional investment of capital. So those two
Speaker 1: things are really good. So rather than trying to pick
Speaker 1: individual stocks, whether we're in an inflationary period or not,
Speaker 1: you should go with this tried and true method, the
Speaker 1: index fund to have and to hold. Ah Warren Buffett
Speaker 1: also talks a lot about it's time in the market,
Speaker 1: not timing the market. He has been known for identifying
Speaker 1: companies that are on his watch list, which is public.
Speaker 1: By the way, it becomes a public thing. If he's
Speaker 1: looking into a company, he talks about it and shits that.
Speaker 1: But he has been known to watch a company for
Speaker 1: ten twenty thirty years before investing in them. The patients
Speaker 1: are patience, ain't and people being like you're missing out
Speaker 1: on these things, like you're not getting in and he's like, yep,
Speaker 1: no worries, but I'm going to make sure that I'm
Speaker 1: making the right decision for me. And then he does
Speaker 1: and it always works out. No, don't know how he
Speaker 1: knows what he's doing. Everyone's given to it. He's a billionaire.
Speaker 4: And is this something that you say it? Or does
Speaker 4: Warren Buffet say this? From Little Things, Big Things Grow?
Speaker 1: No, I believe that was the very regal Paul Kelly, Ah,
Speaker 1: Paul Kelly, Yeah, yep, yep, yeah, yeah. I believe that
Speaker 1: was his very very well versed song.
Speaker 3: Yeah, sounds familiar to me.
Speaker 1: So little Things Things gross, it's beautiful, that's gonna be
Speaker 1: stuck in my head or study stunning.
Speaker 4: I really recommend people go back to listen to our
Speaker 4: recent Investing Small Amounts episode That works.
Speaker 3: Oh, that was.
Speaker 1: Wildly popular, Like I didn't expect it to be as
Speaker 1: popular as it was, but the amount of beautiful messages
Speaker 1: you guys sent me, and let's be honest, the spike
Speaker 1: in download, so that was pretty good. So I feel
Speaker 1: like it was a good EP though, where he had
Speaker 1: good vibes to throughout the.
Speaker 3: Good vibes is a really really nice day.
Speaker 1: That was on the fifth of April, So April go
Speaker 1: and have a listen to that. But there are also
Speaker 1: a few things that I want to leave you guys
Speaker 1: with today. One is from Little Things being skill growth.
Speaker 1: The next year is the average investor will experience. Get this,
Speaker 1: beec approximately seven market corrections during their lifetime, and the
Speaker 1: last was the GFC. Ah, do you know what a
Speaker 1: market correction is? No, it's where it absolutely crashes. You're
Speaker 1: going to experience your portfolio look like trash seven times.
Speaker 1: I'm so sorry.
Speaker 4: Oh man, that's a really pretty name for something that's
Speaker 4: so diffictating.
Speaker 1: Yeah, but it's not devastating if you understand and your
Speaker 1: mindset is good, and you're in a position where you're like, Okay, cool,
Speaker 1: the market is off, My portfolio doesn't look the best,
Speaker 1: but if I hold on to this roller coaster, it
Speaker 1: will go back up right. And we know that after
Speaker 1: the GFC, which was a global financial crisis which happened
Speaker 1: in two thousand and eight two thousand and nine, we
Speaker 1: know that some of the best investment returns have come
Speaker 1: after that, Like our market and our economy has more
Speaker 1: than recovered since the GFC, and people talk about that
Speaker 1: as the worst thing in history. And if you go
Speaker 1: on my favorite website is the Vanguard website at the moment,
Speaker 1: I mean, there's a lot of favorite websites I have.
Speaker 1: Isn't there too anyway? TikTok, TikTok's and app that's TikTok
Speaker 1: is currently being overtaken by Katan though oh god, yeah, yeah,
Speaker 1: Like I'm I'm gonna lose my pop culture references and
Speaker 1: I'm just going to be starting to talk about how
Speaker 1: many bricks and shape you'll trade me for a piece
Speaker 1: of awe.
Speaker 3: Honestly, I won't complain, You'll get.
Speaker 1: It all right. So I think it's really important to
Speaker 1: understand that if you go onto the Vanguard website and
Speaker 1: have a look at their interactive Investor chart, you can
Speaker 1: actually slide around and have a look at the different
Speaker 1: asset classes and how they've provided. But that graph is
Speaker 1: my favorite graph for showing people how the GFC at
Speaker 1: the time, if you cut back, the chart looks like
Speaker 1: the scariest drop in the entire world. And then if
Speaker 1: you add all the way up to twenty twenty three,
Speaker 1: it becomes this little blip ah in the roller coaster
Speaker 1: and you go, what's that?
Speaker 4: It's a GFC when in doubt, zoom ow exactly fair.
Speaker 1: You are learning. And the second thing I want to
Speaker 1: leave you with today is my favorite thing to harp
Speaker 1: on about. Have your emergency fund pump it up. Make
Speaker 1: sure financially you are in an okay position right now
Speaker 1: is uncertain for so many people, and so many people think, oh,
Speaker 1: something won't happen to me. It's fine if you have
Speaker 1: some extra cash pumping up your emergency fund is never
Speaker 1: going to go astray. Pay your bills on time, hopefully,
Speaker 1: stay on top of your mortgage. And if you don't
Speaker 1: feel like you're on top of your mortgage, please sign
Speaker 1: into the Xela Money Instagram DMS or email them or
Speaker 1: shoot me a message or you know, get in contact
Speaker 1: because they can review it and make sure that you're
Speaker 1: in the best possible position moving forward, and make sure
Speaker 1: you're getting paid well for your job. I know that
Speaker 1: that can be a very hard one, and we are
Speaker 1: going to be creating, in hopefully the near future, a
Speaker 1: lot more career episodes because I feel like I can
Speaker 1: tell you to invest until the cows come home, but
Speaker 1: you know what, you can't do invest if you don't
Speaker 1: have a good income. So we're going to be building
Speaker 1: up on the career kind of vibe to be like
Speaker 1: okay cool. I just feel like there are so many
Speaker 1: people in our community who I want to shake and
Speaker 1: be like, babe, do you know your worth. You are
Speaker 1: worth so much more in his how to achieve that
Speaker 1: or here's how you can create a pathway to that
Speaker 1: without feeling awful about it. So I just I'm really
Speaker 1: excited for that stuff. But we're done here today. I
Speaker 1: love that we're going to talk about Katan. Yes, and
Speaker 1: we'll see you guys on Friday.
Speaker 3: See you guys then.
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Speaker 3: The imputed the diffected people.
Speaker 1: They were