1 00:00:00,200 --> 00:00:02,000 Speaker 1: She's on the Money. 2 00:00:02,160 --> 00:00:14,360 Speaker 2: She's on the Money. 3 00:00:20,520 --> 00:00:23,080 Speaker 1: Hello, and welcome to She's on the Money, the podcast 4 00:00:23,120 --> 00:00:26,520 Speaker 1: for millennials who want financial freedom. My name's Anna bell Lee. 5 00:00:26,640 --> 00:00:28,560 Speaker 1: I'm a law student who really wants to lift her 6 00:00:28,600 --> 00:00:31,040 Speaker 1: game when it comes to all things money, and I 7 00:00:31,120 --> 00:00:33,720 Speaker 1: feel like it's not just me. That's why I've pulled 8 00:00:33,720 --> 00:00:36,239 Speaker 1: in my friend and the very best money expert I know, 9 00:00:36,400 --> 00:00:39,160 Speaker 1: Victoria Devine, to help us through the next twelve weeks. 10 00:00:39,680 --> 00:00:42,040 Speaker 1: She's on the Money is a no judgment zone. We're 11 00:00:42,080 --> 00:00:44,040 Speaker 1: not here to make you feel bad or like you're behind. 12 00:00:44,440 --> 00:00:46,760 Speaker 1: We're here to make you feel included, like money is 13 00:00:46,800 --> 00:00:50,040 Speaker 1: something you should be talking about, from saving to spending 14 00:00:50,360 --> 00:00:53,199 Speaker 1: to why the hell investing isn't just a man's game anymore. 15 00:00:53,560 --> 00:00:55,280 Speaker 1: We've got a Facebook group where you can share your 16 00:00:55,280 --> 00:00:58,200 Speaker 1: missteps and success stories. We've got an Instagram page still 17 00:00:58,240 --> 00:01:00,880 Speaker 1: keep you motivated, and we've got a newsletter that will 18 00:01:00,880 --> 00:01:03,480 Speaker 1: get you across everything you need to know. But we'll 19 00:01:03,520 --> 00:01:06,480 Speaker 1: get to all of that very soon. First of all, Victoria, 20 00:01:06,560 --> 00:01:08,440 Speaker 1: you should probably get in on here as well. I 21 00:01:08,480 --> 00:01:11,039 Speaker 1: think I've said enough for now. Who are you and 22 00:01:11,160 --> 00:01:11,880 Speaker 1: why are we here? 23 00:01:12,280 --> 00:01:12,520 Speaker 3: Hi? 24 00:01:12,840 --> 00:01:14,760 Speaker 4: Hello, I'm Victoria Devine. 25 00:01:14,800 --> 00:01:17,680 Speaker 5: I am twenty seven and I am a financial advisor. 26 00:01:18,000 --> 00:01:21,280 Speaker 1: So what makes you so passionate about women and finance. 27 00:01:21,680 --> 00:01:25,360 Speaker 5: We are in twenty nineteen and women are increasingly out 28 00:01:25,400 --> 00:01:28,679 Speaker 5: earning men. Yet we don't have the yare girls, yes, 29 00:01:29,280 --> 00:01:32,960 Speaker 5: but we don't have the tools and resources available to 30 00:01:33,040 --> 00:01:36,320 Speaker 5: us to put us in positions where we are not 31 00:01:36,400 --> 00:01:37,520 Speaker 5: going to be disadvantaged. 32 00:01:37,800 --> 00:01:39,400 Speaker 1: Right, So we're part of this conversation too. 33 00:01:39,480 --> 00:01:40,279 Speaker 4: One hundred percent. 34 00:01:40,400 --> 00:01:42,920 Speaker 1: You started cheese on the money a while ago. 35 00:01:43,360 --> 00:01:43,959 Speaker 4: Why was that? 36 00:01:44,120 --> 00:01:47,280 Speaker 5: Because I'm wildly passionate about empowering women with the knowledge, 37 00:01:47,360 --> 00:01:48,760 Speaker 5: tools and resources to. 38 00:01:48,840 --> 00:01:50,280 Speaker 4: Become financially independent. 39 00:01:50,520 --> 00:01:54,320 Speaker 5: I think young women feel disempowered around money conversations because 40 00:01:54,480 --> 00:01:57,760 Speaker 5: they're in a position where finance has never been a 41 00:01:57,800 --> 00:02:00,320 Speaker 5: topic that they've needed to focus on. We don't learned 42 00:02:00,360 --> 00:02:02,840 Speaker 5: in school. We often we don't learn it from our families. 43 00:02:02,880 --> 00:02:05,520 Speaker 5: When this should be common topic we should be talking 44 00:02:05,520 --> 00:02:08,600 Speaker 5: about money. We should be in a position where empowering 45 00:02:08,639 --> 00:02:13,320 Speaker 5: ourselves financially to be not financially free, but just financially 46 00:02:13,360 --> 00:02:17,160 Speaker 5: empowered is so important. Young women need to know this 47 00:02:17,280 --> 00:02:19,960 Speaker 5: now because of the impacts it can have thirty forty 48 00:02:19,960 --> 00:02:22,119 Speaker 5: to fifty years down the track. If we start now, 49 00:02:22,200 --> 00:02:25,360 Speaker 5: it's tiny baby steps that we need to make to 50 00:02:25,480 --> 00:02:26,160 Speaker 5: create a. 51 00:02:26,040 --> 00:02:27,440 Speaker 4: Secure financial future. 52 00:02:27,560 --> 00:02:29,680 Speaker 5: Whereas if we get to fifty to fifty five and 53 00:02:29,680 --> 00:02:31,440 Speaker 5: we're thinking about, oh, what are we going to do 54 00:02:31,480 --> 00:02:33,679 Speaker 5: when we retire, it's a little bit too late. 55 00:02:33,919 --> 00:02:36,880 Speaker 1: So it's important to teach younger women about this before 56 00:02:36,919 --> 00:02:38,720 Speaker 1: maybe they're earning their peak income. 57 00:02:38,919 --> 00:02:42,760 Speaker 5: Absolutely, because if we can set good money habits up front, 58 00:02:43,080 --> 00:02:45,640 Speaker 5: we can look at our finances holistically, and we can 59 00:02:45,800 --> 00:02:49,600 Speaker 5: increase our savings as we increase our earnings as opposed 60 00:02:49,639 --> 00:02:53,880 Speaker 5: to increasing our lifestyle. So lifestyle creep is massive. And 61 00:02:54,120 --> 00:02:57,000 Speaker 5: if you are earning sixty thousand dollars right now and 62 00:02:57,080 --> 00:02:58,880 Speaker 5: you know your income's about to go up to seventy 63 00:02:58,919 --> 00:03:01,120 Speaker 5: thousand dollars, I'm sure you're already planning what that ten 64 00:03:01,160 --> 00:03:04,679 Speaker 5: ground is going to purchase you instead of saying, oh, caryeah, 65 00:03:05,880 --> 00:03:09,960 Speaker 5: maybe a holiday. Maybe you've got July Europe fomo. And 66 00:03:10,120 --> 00:03:11,959 Speaker 5: you want to be in a position where you're doing 67 00:03:12,000 --> 00:03:13,680 Speaker 5: that too. I think it's really important to be in 68 00:03:13,680 --> 00:03:16,000 Speaker 5: a position where you can say, all right, these are 69 00:03:16,000 --> 00:03:18,320 Speaker 5: my values around money, these are my beliefs, this is 70 00:03:18,320 --> 00:03:20,640 Speaker 5: what I'll be doing as my income increases, I can 71 00:03:20,720 --> 00:03:23,600 Speaker 5: totally increase how much I'm saving or investing or putting 72 00:03:23,600 --> 00:03:24,880 Speaker 5: towards a cause that's really. 73 00:03:24,680 --> 00:03:25,320 Speaker 4: Important to me. 74 00:03:25,680 --> 00:03:28,400 Speaker 1: So that leads perfectly into today's episode. We're starting with 75 00:03:28,520 --> 00:03:31,560 Speaker 1: money stories. What are they and why do they influence 76 00:03:31,600 --> 00:03:34,560 Speaker 1: how we spend and how we save? But first, Victoria, 77 00:03:34,680 --> 00:03:36,720 Speaker 1: let's kick things off by sharing a money win or 78 00:03:36,760 --> 00:03:39,120 Speaker 1: money confession from the week. What have you got for me? 79 00:03:39,320 --> 00:03:39,600 Speaker 4: Oh? 80 00:03:39,720 --> 00:03:43,880 Speaker 1: No, so that's never good when you know it's. 81 00:03:43,200 --> 00:03:46,440 Speaker 5: A money win, it's not a money confession. This weekend, 82 00:03:46,760 --> 00:03:49,160 Speaker 5: I ran out of time. I had to cancel my 83 00:03:49,160 --> 00:03:52,120 Speaker 5: hair dresser appointment because I had to do some work 84 00:03:52,680 --> 00:03:55,680 Speaker 5: and I have a couple of gray hairs that make 85 00:03:55,720 --> 00:03:58,360 Speaker 5: me a little self conscious, so I wanted to cover 86 00:03:58,440 --> 00:04:02,120 Speaker 5: them and decided that potentially a packet dye was something 87 00:04:02,120 --> 00:04:04,600 Speaker 5: I wanted to try out, and so I went down 88 00:04:04,600 --> 00:04:07,400 Speaker 5: to Cohl's and I purchased a twelve dollars hair dye 89 00:04:07,520 --> 00:04:10,360 Speaker 5: and it has worked out perfectly, saving me one hundred 90 00:04:10,360 --> 00:04:11,000 Speaker 5: and fifty dollars. 91 00:04:11,040 --> 00:04:14,240 Speaker 1: Can confirm looking at Victory's hair right now, it's perfect. 92 00:04:15,080 --> 00:04:16,200 Speaker 4: It looks quer nice. 93 00:04:16,400 --> 00:04:18,960 Speaker 5: But now let's see if this silicon mess is going 94 00:04:18,960 --> 00:04:20,120 Speaker 5: to create a nightmare later. 95 00:04:20,240 --> 00:04:21,839 Speaker 4: What is your money win or confession? 96 00:04:22,000 --> 00:04:24,320 Speaker 1: Mine is a money win this week, which I feel 97 00:04:24,320 --> 00:04:26,560 Speaker 1: like is going to be rare, So it's kind of 98 00:04:26,560 --> 00:04:28,520 Speaker 1: a sad money win though. Every week I need to 99 00:04:28,520 --> 00:04:30,640 Speaker 1: fill up my petrol tank because I drive quite a 100 00:04:30,680 --> 00:04:33,880 Speaker 1: bit to work, and I always push it almost to 101 00:04:33,920 --> 00:04:36,880 Speaker 1: an empty tank because petrol is so bloody expensive these days. 102 00:04:37,000 --> 00:04:39,599 Speaker 4: You are me, you are me five years ago. 103 00:04:41,760 --> 00:04:43,960 Speaker 1: So I'm driving past all of these petrol stations and 104 00:04:43,960 --> 00:04:45,440 Speaker 1: they're so expensive, and I'm like, I can make it 105 00:04:45,480 --> 00:04:47,919 Speaker 1: home until next week when the price of petrol is 106 00:04:47,960 --> 00:04:51,800 Speaker 1: probably maybe lower, probably not actually, But my car starts 107 00:04:51,800 --> 00:04:54,159 Speaker 1: making all these really weird noises and I'm like, oh no, 108 00:04:54,240 --> 00:04:55,760 Speaker 1: I'm going to be stranded in the middle of this 109 00:04:55,800 --> 00:04:58,440 Speaker 1: busy road. And then I see in the far distance 110 00:04:58,720 --> 00:05:01,000 Speaker 1: it's a petrol station and it's all sense cheaper than 111 00:05:01,040 --> 00:05:03,760 Speaker 1: all the others, and I'm like, I've lucked out. This 112 00:05:04,000 --> 00:05:06,520 Speaker 1: is a money win. But yeah, as I said, kind 113 00:05:06,520 --> 00:05:08,480 Speaker 1: of sad because I'm just such a stinge and I 114 00:05:08,480 --> 00:05:09,159 Speaker 1: don't know if. 115 00:05:09,040 --> 00:05:11,000 Speaker 5: That's sad or really impressive. 116 00:05:11,240 --> 00:05:12,480 Speaker 4: I haven't decided yet. 117 00:05:12,760 --> 00:05:13,240 Speaker 3: It's sad. 118 00:05:13,320 --> 00:05:15,600 Speaker 1: I've determined it's sad. It's just such a m It's 119 00:05:15,600 --> 00:05:17,080 Speaker 1: such a uni student thing to do. 120 00:05:17,240 --> 00:05:17,800 Speaker 4: I like it. 121 00:05:17,920 --> 00:05:22,400 Speaker 1: Yeah, put that in the bucket with the Megoring Megoring. Okay, 122 00:05:22,440 --> 00:05:25,280 Speaker 1: So now that we've established I'm Stinge and you've got 123 00:05:25,279 --> 00:05:27,839 Speaker 1: great hair, let's get into the show. We all have 124 00:05:27,880 --> 00:05:30,360 Speaker 1: a money story, right. What is a money story and 125 00:05:30,360 --> 00:05:31,360 Speaker 1: why is it so important? 126 00:05:31,760 --> 00:05:35,480 Speaker 5: So a money story is out underlying beliefs and values 127 00:05:35,600 --> 00:05:38,240 Speaker 5: about what money actually means to you as a person. 128 00:05:38,839 --> 00:05:41,720 Speaker 1: And is childhood and family kind of important when it 129 00:05:41,760 --> 00:05:43,400 Speaker 1: comes to determining someone's money story. 130 00:05:43,480 --> 00:05:46,960 Speaker 5: Absolutely, So everything in your money story usually comes as 131 00:05:47,000 --> 00:05:50,000 Speaker 5: a product of the experiences that you've had in life. 132 00:05:50,320 --> 00:05:53,200 Speaker 5: So childhood, upbringing, the way your parents approach to money, 133 00:05:53,240 --> 00:05:55,560 Speaker 5: the way your friends approach to money. Potentially whether you 134 00:05:55,560 --> 00:05:57,680 Speaker 5: grew up in a wealthy family or not such a 135 00:05:57,680 --> 00:06:00,520 Speaker 5: wealthy family is going to shape the way you approach 136 00:06:00,600 --> 00:06:01,240 Speaker 5: money today. 137 00:06:01,480 --> 00:06:01,839 Speaker 3: Yeah. I know. 138 00:06:01,920 --> 00:06:04,720 Speaker 1: For me, my parents immigrated to Australia from China when 139 00:06:04,720 --> 00:06:07,040 Speaker 1: they were like really young, twenty years old, and they 140 00:06:07,080 --> 00:06:09,520 Speaker 1: had no money, and then when my sister and I 141 00:06:09,560 --> 00:06:12,360 Speaker 1: came along, it made it a lot harder for them financially, 142 00:06:12,480 --> 00:06:15,279 Speaker 1: and we definitely observed that even though they tried to 143 00:06:15,360 --> 00:06:18,760 Speaker 1: shield us from any financial hardship, Yeah, it was really 144 00:06:18,760 --> 00:06:21,520 Speaker 1: clear that we didn't necessarily have all the money in 145 00:06:21,560 --> 00:06:24,080 Speaker 1: the world to buy all the frivolous things and buy toys. 146 00:06:24,120 --> 00:06:26,359 Speaker 1: And there were even times when we would go grocery 147 00:06:26,400 --> 00:06:29,320 Speaker 1: shopping in Chadsden and my parents would be like, hey, 148 00:06:29,400 --> 00:06:31,800 Speaker 1: do you want a snack, like let's go get some sushio, 149 00:06:31,920 --> 00:06:34,120 Speaker 1: like let's get an ice cream, and we might be like, no, well, 150 00:06:34,120 --> 00:06:35,680 Speaker 1: just why do we get home even if we really 151 00:06:35,680 --> 00:06:38,520 Speaker 1: wanted someone, because we just knew even though my parents 152 00:06:38,600 --> 00:06:41,159 Speaker 1: wanted to treat us and spoil us, we knew that 153 00:06:41,200 --> 00:06:43,320 Speaker 1: it wasn't really in their means to do that. So 154 00:06:43,360 --> 00:06:45,560 Speaker 1: what should listeners be thinking about when it comes to 155 00:06:45,600 --> 00:06:46,520 Speaker 1: their money stories. 156 00:06:46,760 --> 00:06:48,839 Speaker 5: I think it's really important to just acknowledge that we 157 00:06:48,880 --> 00:06:51,640 Speaker 5: all have a money story, and that money story is 158 00:06:51,720 --> 00:06:54,320 Speaker 5: not a product of our own doing. I think it's 159 00:06:54,400 --> 00:06:56,719 Speaker 5: really important to say, Okay, I have a money story. 160 00:06:56,760 --> 00:06:59,039 Speaker 4: This is just my start position. Where can I go 161 00:06:59,080 --> 00:06:59,479 Speaker 4: from here? 162 00:07:00,000 --> 00:07:02,200 Speaker 1: There are some patterns you see with your clients then 163 00:07:02,279 --> 00:07:04,400 Speaker 1: with regards to their history with their money and their 164 00:07:04,400 --> 00:07:05,919 Speaker 1: relationship with how they spend it now. 165 00:07:06,080 --> 00:07:08,120 Speaker 5: So I think it's really interesting when talking to my 166 00:07:08,240 --> 00:07:12,600 Speaker 5: clients about their money stories where they've come from. So, 167 00:07:13,160 --> 00:07:15,320 Speaker 5: you know, I might be talking to a client who's 168 00:07:15,360 --> 00:07:17,760 Speaker 5: in a lot of debt and they're just unsure of 169 00:07:17,880 --> 00:07:20,200 Speaker 5: why they've gotten to this stage. And when you sit 170 00:07:20,240 --> 00:07:22,000 Speaker 5: them down and go all right, well, let's have a chat, 171 00:07:22,120 --> 00:07:24,000 Speaker 5: how do you grow up? What does that look like? 172 00:07:24,920 --> 00:07:26,840 Speaker 5: They grew up in a really wealthy family where money 173 00:07:26,920 --> 00:07:29,240 Speaker 5: was never an issue, It wasn't really talked about. Credit 174 00:07:29,240 --> 00:07:31,960 Speaker 5: cards were a really easy thing, and potentially when they 175 00:07:31,960 --> 00:07:34,800 Speaker 5: were growing up that was a really fine position to 176 00:07:34,800 --> 00:07:36,600 Speaker 5: be in because both of their parents had a quite 177 00:07:36,760 --> 00:07:40,840 Speaker 5: high salary. Whereas now they're, you know, earning fifty thousand 178 00:07:40,880 --> 00:07:43,400 Speaker 5: dollars as a graduate salary. They're in a position where 179 00:07:43,480 --> 00:07:47,040 Speaker 5: they've you know, the bank sent them a invitation to 180 00:07:47,080 --> 00:07:49,000 Speaker 5: apply for their first credit card and they thought, wow, 181 00:07:49,040 --> 00:07:51,560 Speaker 5: cool also, and this is my time to shine, And 182 00:07:51,760 --> 00:07:53,720 Speaker 5: they have gotten themselves into a whole heap of debt 183 00:07:53,720 --> 00:07:56,560 Speaker 5: without really realizing the impacts of it because it was 184 00:07:56,640 --> 00:07:59,320 Speaker 5: never an issue growing up. Whereas I have a number 185 00:07:59,320 --> 00:08:02,880 Speaker 5: of other clients who are you know, in quite quite 186 00:08:02,920 --> 00:08:06,760 Speaker 5: impressive roles their lawyers, their doctors, and they are living 187 00:08:06,800 --> 00:08:09,680 Speaker 5: really frugally because they're really worried that, you know, a 188 00:08:09,760 --> 00:08:11,320 Speaker 5: rainy day is going to come and they're going to 189 00:08:11,360 --> 00:08:13,520 Speaker 5: need it for that. So they aren't actually achieving the 190 00:08:13,520 --> 00:08:15,480 Speaker 5: goals that they say they want to achieve because they're 191 00:08:15,520 --> 00:08:17,840 Speaker 5: withholding the cash for themselves. 192 00:08:18,080 --> 00:08:20,760 Speaker 1: That's definitely what I do. Even though I'm not earning 193 00:08:20,800 --> 00:08:22,800 Speaker 1: a lot, I'm still a student. I feel like I 194 00:08:22,840 --> 00:08:24,680 Speaker 1: save a lot and I'm a good saver, but even 195 00:08:24,720 --> 00:08:26,200 Speaker 1: though I have no idea what to do with my money, 196 00:08:26,280 --> 00:08:28,960 Speaker 1: because I feel like I need a safety blanket, because 197 00:08:28,960 --> 00:08:30,880 Speaker 1: I feel like I've put myself in the position of 198 00:08:30,880 --> 00:08:32,439 Speaker 1: my parents when they were twenty and they came to 199 00:08:32,480 --> 00:08:35,600 Speaker 1: Australia with no money. They didn't have any support from 200 00:08:35,640 --> 00:08:37,920 Speaker 1: family or they didn't have any friends here, so they 201 00:08:38,000 --> 00:08:39,839 Speaker 1: knew that they had to be saving for themselves and 202 00:08:39,880 --> 00:08:42,240 Speaker 1: for their family. And that's kind of I feel like 203 00:08:42,240 --> 00:08:44,880 Speaker 1: I'm in that mindset, even though I have supportive family 204 00:08:44,920 --> 00:08:46,760 Speaker 1: and friends that would be able to help me if 205 00:08:46,800 --> 00:08:48,960 Speaker 1: anything ever did happen, but I want to be able 206 00:08:48,960 --> 00:08:50,480 Speaker 1: to rely on myself. 207 00:08:50,080 --> 00:08:50,920 Speaker 4: One hundred percent. 208 00:08:51,000 --> 00:08:53,120 Speaker 5: And if you've just said that a safety flanket is 209 00:08:53,120 --> 00:08:54,120 Speaker 5: something that you value. 210 00:08:54,240 --> 00:08:55,160 Speaker 4: That's your value. 211 00:08:55,280 --> 00:08:57,440 Speaker 5: No one can argue with that, just because it's a 212 00:08:57,440 --> 00:08:59,400 Speaker 5: part of your money story and that's where you learned 213 00:08:59,400 --> 00:09:01,760 Speaker 5: that value. I think it's really important to say, well, 214 00:09:01,800 --> 00:09:03,760 Speaker 5: you know what, I went through these experiences and my 215 00:09:03,840 --> 00:09:06,560 Speaker 5: parents had these experiences. But now I just feel empowered 216 00:09:06,600 --> 00:09:08,760 Speaker 5: because I've got some money sitting in the bank that 217 00:09:08,840 --> 00:09:11,040 Speaker 5: if i don't have an income for some period of time, 218 00:09:11,160 --> 00:09:12,400 Speaker 5: I'm going to be okay. 219 00:09:12,480 --> 00:09:15,559 Speaker 1: And I'm really glad and grateful that I have that value. 220 00:09:15,679 --> 00:09:17,280 Speaker 1: I'm really glad that I did go through that and 221 00:09:17,320 --> 00:09:19,360 Speaker 1: what my parents did go through that, and that my 222 00:09:19,679 --> 00:09:22,320 Speaker 1: sister and I observed their hardship because I feel like 223 00:09:22,360 --> 00:09:25,480 Speaker 1: it's helped me understand that money doesn't come easily. You know, 224 00:09:25,760 --> 00:09:28,240 Speaker 1: you work hard for your money and you should spend 225 00:09:28,280 --> 00:09:29,160 Speaker 1: within your means. 226 00:09:29,440 --> 00:09:30,080 Speaker 4: Absolutely. 227 00:09:30,240 --> 00:09:32,559 Speaker 5: I think it's really interesting that you say that because 228 00:09:32,640 --> 00:09:36,680 Speaker 5: so many people have different values, and that's just it, right. 229 00:09:36,679 --> 00:09:39,760 Speaker 5: Personal finance is just that it is personal. And your 230 00:09:40,080 --> 00:09:42,560 Speaker 5: experience of money and your experience of life is going 231 00:09:42,600 --> 00:09:44,959 Speaker 5: to be different to mine, and it's going to be 232 00:09:45,040 --> 00:09:47,680 Speaker 5: different to every single person that's listening to this podcast. 233 00:09:47,720 --> 00:09:48,400 Speaker 4: And that's okay. 234 00:09:48,600 --> 00:09:50,840 Speaker 5: What you value and having a safety blanket is really 235 00:09:50,840 --> 00:09:52,439 Speaker 5: important to you, but it might not be important to 236 00:09:52,480 --> 00:09:54,160 Speaker 5: the next person. And that's totally okay. 237 00:09:54,640 --> 00:09:56,520 Speaker 1: So is it possible to retrain yourself when it comes 238 00:09:56,559 --> 00:09:59,160 Speaker 1: to money, Like, how can you start? If you're listening 239 00:09:59,200 --> 00:10:01,079 Speaker 1: to this and you'll realize you have a bad family 240 00:10:01,160 --> 00:10:03,360 Speaker 1: history with money, can someone do something to change that? 241 00:10:03,679 --> 00:10:07,040 Speaker 5: Absolutely, you can change your money story if you choose that. 242 00:10:07,160 --> 00:10:09,000 Speaker 5: You can change the way you approach money, and you 243 00:10:09,040 --> 00:10:11,200 Speaker 5: can change your money story. But the first thing you 244 00:10:11,240 --> 00:10:14,080 Speaker 5: need to do is acknowledge where your money stories come from. 245 00:10:14,280 --> 00:10:16,080 Speaker 5: Sit down, have a think about your beliefs, have a 246 00:10:16,120 --> 00:10:18,040 Speaker 5: think about your values, and work out what they are 247 00:10:18,120 --> 00:10:20,280 Speaker 5: and where they've come from. Because if you don't know 248 00:10:20,320 --> 00:10:22,040 Speaker 5: where you're coming from, you're not going to know where 249 00:10:22,040 --> 00:10:22,720 Speaker 5: you want to go. 250 00:10:23,320 --> 00:10:26,120 Speaker 1: I think I've kind of done that. My parents always 251 00:10:26,280 --> 00:10:28,439 Speaker 1: ask me whether I'm buying myself nice things, because I 252 00:10:28,480 --> 00:10:31,000 Speaker 1: feel like they're they're aware that I was aware as 253 00:10:31,000 --> 00:10:33,000 Speaker 1: a kid of their financial hardships. And maybe I'm a 254 00:10:33,000 --> 00:10:35,720 Speaker 1: bit too hard on myself when I'm saving. Maybe too 255 00:10:35,800 --> 00:10:37,160 Speaker 1: hard even though is that ada? 256 00:10:37,320 --> 00:10:38,040 Speaker 4: Is there such thing? 257 00:10:38,320 --> 00:10:40,920 Speaker 5: I'm really impressed that you are as young as you are, 258 00:10:40,960 --> 00:10:43,720 Speaker 5: and you're saving really hard. But in saying that, if 259 00:10:43,760 --> 00:10:46,160 Speaker 5: you think that your beliefs are getting in the way 260 00:10:46,240 --> 00:10:47,280 Speaker 5: of your goals, I. 261 00:10:47,240 --> 00:10:48,840 Speaker 4: Think then it's time to have a bit of a 262 00:10:48,880 --> 00:10:49,559 Speaker 4: think about it. 263 00:10:49,679 --> 00:10:52,520 Speaker 5: But until then, I think, if you're saving and putting 264 00:10:52,520 --> 00:10:54,839 Speaker 5: money away and you're happy with that, go for it. 265 00:10:54,960 --> 00:10:57,360 Speaker 1: So we know the way you approach money is probably 266 00:10:57,480 --> 00:11:00,320 Speaker 1: largely dependent on your money story. Right that's the way 267 00:11:00,320 --> 00:11:02,800 Speaker 1: that listeners can test their financial health right now. 268 00:11:03,200 --> 00:11:06,439 Speaker 5: I think the easiest way to test your financial health 269 00:11:06,559 --> 00:11:09,080 Speaker 5: just really quickly is something that I've been doing with 270 00:11:09,120 --> 00:11:12,160 Speaker 5: clients for a little while now, and that's to write 271 00:11:12,200 --> 00:11:13,079 Speaker 5: down four figures. 272 00:11:13,160 --> 00:11:13,800 Speaker 3: So if you're. 273 00:11:13,679 --> 00:11:15,280 Speaker 5: Listening and you want to do this, write down the 274 00:11:15,320 --> 00:11:19,360 Speaker 5: following four figures earn, spend, own and O. So the 275 00:11:19,400 --> 00:11:21,160 Speaker 5: first thing you want to do is write down the 276 00:11:21,160 --> 00:11:24,000 Speaker 5: figure that you earn and that shouldn't be too hard. 277 00:11:24,080 --> 00:11:26,800 Speaker 5: If you don't know your salary package. Potentially look on 278 00:11:26,840 --> 00:11:29,000 Speaker 5: your Paceleep Paul, have a look on your last year's 279 00:11:29,000 --> 00:11:32,560 Speaker 5: tax return, then what you spend, So having a look 280 00:11:32,559 --> 00:11:33,760 Speaker 5: at what you're spending each month. 281 00:11:33,800 --> 00:11:34,800 Speaker 4: I'm not asking you to. 282 00:11:34,760 --> 00:11:37,840 Speaker 5: Go through a super detailed budget and outline to the 283 00:11:37,920 --> 00:11:41,280 Speaker 5: scent what you are spending on different things. I'm just saying, 284 00:11:41,360 --> 00:11:44,160 Speaker 5: do you know on average what you are spending each month? 285 00:11:44,200 --> 00:11:46,640 Speaker 5: Are you spending five hundred dollars less than your income? 286 00:11:46,640 --> 00:11:48,720 Speaker 5: Are you spending three hundred dollars less in your income? 287 00:11:48,840 --> 00:11:50,560 Speaker 5: Are you in a position where you're saving one thousand 288 00:11:50,600 --> 00:11:52,800 Speaker 5: dollars a month? Do you know that figure? If not, 289 00:11:53,000 --> 00:11:54,440 Speaker 5: now is the time to find out. 290 00:11:54,559 --> 00:11:56,040 Speaker 4: What you own is. 291 00:11:56,400 --> 00:11:58,960 Speaker 5: Really important to figure out because that is going to 292 00:11:58,960 --> 00:12:01,280 Speaker 5: be what creates your net wealth. And we'll talk a 293 00:12:01,320 --> 00:12:03,640 Speaker 5: lot more about that in the next couple of weeks. 294 00:12:03,679 --> 00:12:06,360 Speaker 5: But net wealth is what's going to ultimately support you 295 00:12:06,800 --> 00:12:10,319 Speaker 5: into retirement and through the rest of your life. But 296 00:12:10,360 --> 00:12:13,120 Speaker 5: what you own is really important. So I'm not talking 297 00:12:13,200 --> 00:12:15,240 Speaker 5: if you have a nice car or not, because I 298 00:12:15,280 --> 00:12:20,400 Speaker 5: don't actually classify that as a wealth investment. But you know, 299 00:12:20,400 --> 00:12:22,120 Speaker 5: how much money have you got in super how much 300 00:12:22,120 --> 00:12:24,560 Speaker 5: money have you got in savings? Have you purchased a 301 00:12:24,600 --> 00:12:27,199 Speaker 5: home yet? Are you in a position where you own 302 00:12:27,600 --> 00:12:31,079 Speaker 5: something that is going to contribute to your wealth moving forward? 303 00:12:31,559 --> 00:12:33,800 Speaker 5: And then what you owe? So do you have any 304 00:12:33,840 --> 00:12:35,520 Speaker 5: personal debt, do you have a credit card? Do you 305 00:12:35,559 --> 00:12:38,160 Speaker 5: have a personal loan. Have you got a mortgage? The 306 00:12:38,440 --> 00:12:43,280 Speaker 5: important thing here is that oh changes depending on what 307 00:12:43,440 --> 00:12:45,640 Speaker 5: phase of life you're in. You could be twenty eight 308 00:12:45,679 --> 00:12:47,800 Speaker 5: and you've got your first mortgage and you are up 309 00:12:47,800 --> 00:12:50,679 Speaker 5: to your eyeballs in five hundred thousand dollars worth of debt. 310 00:12:51,040 --> 00:12:55,280 Speaker 5: But is that debt actually contributing to your future? Yes, 311 00:12:55,320 --> 00:12:59,080 Speaker 5: a mortgage absolutely is, where as someone who's just gotten 312 00:12:59,120 --> 00:13:01,240 Speaker 5: back from Europe and has a twenty thousand dollar bill 313 00:13:01,280 --> 00:13:04,160 Speaker 5: on their credit card potentially isn't helping themselves. 314 00:13:04,640 --> 00:13:06,839 Speaker 1: So is there a percentage that people should be looking at. 315 00:13:07,200 --> 00:13:09,320 Speaker 5: Look, I'm going to straight out say that I think 316 00:13:09,360 --> 00:13:11,360 Speaker 5: that if you are in a position where you are 317 00:13:11,400 --> 00:13:15,600 Speaker 5: saving and you are investing, twenty percent is a really 318 00:13:15,600 --> 00:13:18,959 Speaker 5: good number to aim for. So twenty percent often sounds 319 00:13:19,000 --> 00:13:21,120 Speaker 5: like a really hard pill to swallow, because it is 320 00:13:21,360 --> 00:13:24,040 Speaker 5: if you're in a position where you have been in 321 00:13:24,080 --> 00:13:26,600 Speaker 5: your job for a couple of years, you've probably worked 322 00:13:26,600 --> 00:13:28,480 Speaker 5: out a way to spend all of the money that 323 00:13:28,520 --> 00:13:32,720 Speaker 5: you've earned. And I think that that's an okay position 324 00:13:32,760 --> 00:13:34,360 Speaker 5: to be. And I'm not saying tomorrow you have to 325 00:13:34,360 --> 00:13:36,520 Speaker 5: be saving twenty percent, but if you can work towards 326 00:13:36,520 --> 00:13:39,479 Speaker 5: saving twenty percent, you're going to be in a significantly 327 00:13:39,559 --> 00:13:43,760 Speaker 5: better position ten, twenty, thirty, forty fifty years into the future. 328 00:13:44,800 --> 00:13:47,520 Speaker 5: But in saying that, it's really important to realize that 329 00:13:47,679 --> 00:13:51,120 Speaker 5: twenty percent can be a really unreasonable figure for some people. 330 00:13:51,520 --> 00:13:53,480 Speaker 5: So if you are in a position where you're earning 331 00:13:53,480 --> 00:13:55,679 Speaker 5: thirty five thousand dollars, you're in your first job, that 332 00:13:55,880 --> 00:13:58,960 Speaker 5: is an absolutely unreasonable amount of your income to be saving. 333 00:13:59,000 --> 00:14:01,360 Speaker 5: You've got rent, you've got bill, you've got things to pay, 334 00:14:01,800 --> 00:14:04,920 Speaker 5: and to put an expectation over the top of someone 335 00:14:05,040 --> 00:14:08,600 Speaker 5: in that position is completely unreasonable. Whereas if you are 336 00:14:08,600 --> 00:14:11,080 Speaker 5: in a position where you're earning three hundred thousand dollars 337 00:14:11,120 --> 00:14:14,679 Speaker 5: a year, saving twenty percent should just come naturally, and 338 00:14:14,720 --> 00:14:16,840 Speaker 5: if it's not, you really need to be sitting down 339 00:14:16,840 --> 00:14:19,080 Speaker 5: and saying, all right, how have we gotten to this point? 340 00:14:19,200 --> 00:14:21,480 Speaker 1: So what can our listeners do with those four figures? 341 00:14:21,680 --> 00:14:24,480 Speaker 5: So those four figures tell us a lot about your 342 00:14:24,520 --> 00:14:28,160 Speaker 5: financial health. So the first two figures, earn and spend, 343 00:14:28,800 --> 00:14:31,840 Speaker 5: tell us whether you are spending more money than you're earning, 344 00:14:31,960 --> 00:14:34,400 Speaker 5: or you're earning more money than you're spending. It's quite simple. 345 00:14:34,480 --> 00:14:36,040 Speaker 5: We want to be in a position where we are 346 00:14:36,080 --> 00:14:38,960 Speaker 5: spending less than we are earning. It sounds pretty simple, 347 00:14:38,960 --> 00:14:41,320 Speaker 5: but it's actually a really hard thing to achieve. You 348 00:14:41,400 --> 00:14:43,440 Speaker 5: might think that each month you are doing a really 349 00:14:43,520 --> 00:14:46,160 Speaker 5: good job because you're breaking about even, but if you 350 00:14:46,200 --> 00:14:47,920 Speaker 5: look at it on the grand scheme of things, on 351 00:14:47,960 --> 00:14:50,480 Speaker 5: a yearly basis, you could actually be spending you know, 352 00:14:50,560 --> 00:14:53,120 Speaker 5: one thousand or two thousand dollars more than you've actually earned. 353 00:14:53,400 --> 00:14:56,360 Speaker 5: And that it's not a recipe for disaster, but it's 354 00:14:56,440 --> 00:14:57,280 Speaker 5: on the wrong. 355 00:14:57,080 --> 00:14:58,840 Speaker 1: Track, especially if you've got like a credit card. 356 00:14:58,920 --> 00:15:02,280 Speaker 5: Absolutely and sometimes you think, all right, well, I really 357 00:15:02,280 --> 00:15:03,960 Speaker 5: want to go to this music festival. I'm just going 358 00:15:04,000 --> 00:15:06,760 Speaker 5: to put these tickets onto my credit card and I'll 359 00:15:06,800 --> 00:15:07,640 Speaker 5: sort it out later. 360 00:15:08,120 --> 00:15:09,360 Speaker 4: You will sort it out later. 361 00:15:09,440 --> 00:15:10,840 Speaker 5: But you know, if you look at it in the 362 00:15:10,840 --> 00:15:12,480 Speaker 5: grand scheme of things, that might be three or four 363 00:15:12,560 --> 00:15:14,760 Speaker 5: hundred dollars more than you actually earned in that year. 364 00:15:14,840 --> 00:15:16,720 Speaker 5: And is that something that you want to do, Like, 365 00:15:16,880 --> 00:15:18,360 Speaker 5: is that in line with your values? 366 00:15:18,480 --> 00:15:19,440 Speaker 4: Are you putting. 367 00:15:19,120 --> 00:15:23,320 Speaker 5: Yourself in the best possible position to create wealth long term? 368 00:15:23,600 --> 00:15:25,920 Speaker 5: I think something that's really important here is saying, you 369 00:15:25,960 --> 00:15:27,840 Speaker 5: know what, I don't want you to be in a 370 00:15:27,840 --> 00:15:30,480 Speaker 5: position where we know exactly down to the scent what 371 00:15:30,520 --> 00:15:33,160 Speaker 5: we are spending each month. But if you were a 372 00:15:33,200 --> 00:15:36,520 Speaker 5: listener who went on I actually don't know what I spend. 373 00:15:36,840 --> 00:15:38,840 Speaker 5: I think something that you could do in the next 374 00:15:38,840 --> 00:15:41,920 Speaker 5: week is print out one of your bank's statements, grab 375 00:15:41,960 --> 00:15:45,200 Speaker 5: a highlighter, and highlight all of the things that were 376 00:15:45,240 --> 00:15:47,480 Speaker 5: personal spending. So I'm not talking about bills, I'm not 377 00:15:47,480 --> 00:15:49,960 Speaker 5: talking about rent. Highlight the things that you were spending 378 00:15:50,000 --> 00:15:53,760 Speaker 5: money on that might not be aligned to the necessities 379 00:15:53,760 --> 00:15:56,960 Speaker 5: of life. So what things are you putting your money on? 380 00:15:57,640 --> 00:15:59,680 Speaker 5: And then work out what you have spent the most 381 00:15:59,760 --> 00:16:02,560 Speaker 5: money on in that month, and then that will tell 382 00:16:02,600 --> 00:16:04,880 Speaker 5: you what your values are. So if you spend the 383 00:16:04,880 --> 00:16:08,160 Speaker 5: most ongoing out, that to me is what you value 384 00:16:08,320 --> 00:16:11,360 Speaker 5: the most. If not change it, change what you're spending. 385 00:16:11,800 --> 00:16:14,640 Speaker 1: So those necessities of life are different for everyone, so you'd. 386 00:16:14,440 --> 00:16:18,400 Speaker 5: Need absolutely absolutely, So necessities of life for me would 387 00:16:18,480 --> 00:16:21,160 Speaker 5: be rent and bills, and you know the cost of 388 00:16:21,200 --> 00:16:24,440 Speaker 5: my car and fuel and things that I need to 389 00:16:24,640 --> 00:16:27,160 Speaker 5: get to work and to get through life. Things that 390 00:16:27,320 --> 00:16:29,840 Speaker 5: I am spending money on that aren't essential. 391 00:16:30,520 --> 00:16:33,600 Speaker 4: Hairdresser realpointment, yeah. 392 00:16:33,440 --> 00:16:35,560 Speaker 5: And getting my nails done and going out for brunch 393 00:16:35,600 --> 00:16:38,280 Speaker 5: with my girlfriends. And whilst I love those things, those 394 00:16:38,320 --> 00:16:40,480 Speaker 5: are discretionary. Those are things I don't need to be 395 00:16:40,520 --> 00:16:42,400 Speaker 5: spending money on, and I really need to have a 396 00:16:42,400 --> 00:16:45,480 Speaker 5: look at whether those things are actually helping me achieve 397 00:16:45,520 --> 00:16:48,080 Speaker 5: my goals or setting me back a little bit. As 398 00:16:48,160 --> 00:16:49,920 Speaker 5: much as we want to spend time with our friends 399 00:16:49,920 --> 00:16:52,560 Speaker 5: and go for brunch, is it actually helping me? And 400 00:16:52,880 --> 00:16:55,240 Speaker 5: in the bigger picture, is it actually helping my friend? 401 00:16:55,320 --> 00:16:58,240 Speaker 5: Should we be doing something different together. I'm not saying 402 00:16:58,440 --> 00:17:02,800 Speaker 5: put on your friend your financial values, but like is 403 00:17:02,880 --> 00:17:05,760 Speaker 5: li like often you will circulate with people who are 404 00:17:05,880 --> 00:17:08,760 Speaker 5: very similar to you in finance. So is it a 405 00:17:08,760 --> 00:17:10,360 Speaker 5: good idea to sit down with a friend and be like, Hey, 406 00:17:10,400 --> 00:17:12,160 Speaker 5: we go out for brunch every Sunday, do you want 407 00:17:12,160 --> 00:17:13,960 Speaker 5: to go for a walk and grab a coffee instead? 408 00:17:14,119 --> 00:17:14,399 Speaker 3: Great? 409 00:17:14,440 --> 00:17:17,399 Speaker 1: So, for everyone listening, you and I are gonna write 410 00:17:17,400 --> 00:17:20,160 Speaker 1: down our four figures, get a highlighter out and highlight 411 00:17:20,200 --> 00:17:22,679 Speaker 1: all of the things Victoria just told us about. And 412 00:17:22,720 --> 00:17:24,520 Speaker 1: then I want you to go onto our Facebook group 413 00:17:24,600 --> 00:17:27,040 Speaker 1: and tell us the most glaring thing that you're spending 414 00:17:27,040 --> 00:17:29,199 Speaker 1: your money on that you didn't know you were. So 415 00:17:29,240 --> 00:17:31,120 Speaker 1: go on to Facebook, type in Cheese on the Money 416 00:17:31,160 --> 00:17:43,320 Speaker 1: and come join our lovely community. Hi, there, you've called 417 00:17:43,320 --> 00:17:45,159 Speaker 1: the Shees of the money Hotline. Do you have a 418 00:17:45,160 --> 00:17:47,280 Speaker 1: money problem you want help solving. Do you have a 419 00:17:47,320 --> 00:17:49,760 Speaker 1: money dilemma you just want to chat about? Victoria is 420 00:17:49,800 --> 00:17:52,159 Speaker 1: here to help. Every week we'll be playing your hotline 421 00:17:52,240 --> 00:17:54,159 Speaker 1: questions to help make sense of the money mess you 422 00:17:54,200 --> 00:17:56,280 Speaker 1: may have found yourself in. Give us a call on 423 00:17:56,680 --> 00:17:59,600 Speaker 1: four three five two nine three double eighty six and 424 00:17:59,640 --> 00:18:02,200 Speaker 1: you might find yourself on the show. But for now, 425 00:18:02,280 --> 00:18:03,080 Speaker 1: here's Jacinta. 426 00:18:10,240 --> 00:18:12,440 Speaker 6: Hi, She's on the money. My own problems with money 427 00:18:12,480 --> 00:18:15,240 Speaker 6: began when I got married at twenty one. My husband 428 00:18:15,280 --> 00:18:17,680 Speaker 6: and I bought a house, but the marriage crumbled eighteen 429 00:18:17,680 --> 00:18:19,760 Speaker 6: months later and we sold it, leaving me with forty 430 00:18:19,800 --> 00:18:22,560 Speaker 6: thousand dollars in my bank account. I was never got 431 00:18:22,600 --> 00:18:24,159 Speaker 6: what to do with money as a child, but I 432 00:18:24,200 --> 00:18:27,040 Speaker 6: spent it all within two years, taking myself on lavish 433 00:18:27,080 --> 00:18:30,040 Speaker 6: holidays and shopping trips. That time of my life grew 434 00:18:30,080 --> 00:18:33,000 Speaker 6: in my perspective of money. A decade later, I haven't 435 00:18:33,000 --> 00:18:35,479 Speaker 6: been able to save anything close to that amount. Backup, 436 00:18:35,840 --> 00:18:37,880 Speaker 6: I have five thousand dollars to my name and seem 437 00:18:38,000 --> 00:18:40,840 Speaker 6: to continually live above my means. What can I do 438 00:18:40,920 --> 00:18:43,880 Speaker 6: to retain myself on how to save? Thanks? So much? 439 00:18:44,960 --> 00:18:48,720 Speaker 1: Seems like Jacinta needs a total financial reboot. Here, what's 440 00:18:48,760 --> 00:18:50,719 Speaker 1: the very first thing you'd do if you were in 441 00:18:50,720 --> 00:18:51,320 Speaker 1: her situation? 442 00:18:51,600 --> 00:18:53,600 Speaker 5: I think she needs to acknowledge that she's not in 443 00:18:53,680 --> 00:18:56,440 Speaker 5: that terrible of a situation. She's got five thousand dollars 444 00:18:56,520 --> 00:18:59,080 Speaker 5: in her account and that is so much better than 445 00:18:59,119 --> 00:19:02,520 Speaker 5: moist women in Australia to be honest, If she's feeling 446 00:19:02,560 --> 00:19:04,919 Speaker 5: disempowered and wants to change her ways, though, there are 447 00:19:04,960 --> 00:19:07,320 Speaker 5: a heap of things that she can do. So first 448 00:19:07,359 --> 00:19:09,800 Speaker 5: things first, we just spoke about what you earn, what 449 00:19:09,840 --> 00:19:11,919 Speaker 5: you spend, what you own and what you owe, so 450 00:19:12,119 --> 00:19:14,919 Speaker 5: just seems to go away, write those figures down and 451 00:19:14,960 --> 00:19:16,959 Speaker 5: work out exactly what you are spending? 452 00:19:17,000 --> 00:19:18,520 Speaker 4: What's your financial health look like? 453 00:19:18,960 --> 00:19:22,000 Speaker 5: Actually, are you in a position where you own more 454 00:19:22,040 --> 00:19:24,840 Speaker 5: than you owe? And I think that from what we've 455 00:19:24,880 --> 00:19:27,359 Speaker 5: heard from Discina, she actually is. So I think Jacinta 456 00:19:27,440 --> 00:19:29,040 Speaker 5: needs to have a look at that and go, wow, 457 00:19:29,160 --> 00:19:31,679 Speaker 5: I'm actually in a position where I am a positive 458 00:19:31,720 --> 00:19:34,199 Speaker 5: net wealth. It might only be five thousand dollars, but 459 00:19:34,240 --> 00:19:36,960 Speaker 5: that's really impressive. That is a position so many people 460 00:19:37,000 --> 00:19:39,880 Speaker 5: would envy to be in. The second thing she can 461 00:19:39,920 --> 00:19:42,359 Speaker 5: do is go through her bank account, like we mentioned, 462 00:19:42,400 --> 00:19:45,000 Speaker 5: and work out what she's actually spending. It sounds like 463 00:19:45,080 --> 00:19:48,120 Speaker 5: she doesn't have a hold on what she's actually spending 464 00:19:48,200 --> 00:19:51,439 Speaker 5: each month and where it's going. But it also sounds 465 00:19:51,480 --> 00:19:54,040 Speaker 5: like she doesn't have some solid goals to work towards. 466 00:19:54,240 --> 00:19:56,800 Speaker 5: And that's really hard, Like, that's a really hard position 467 00:19:56,880 --> 00:19:59,439 Speaker 5: to be in, because why would I be saving and 468 00:19:59,440 --> 00:20:02,000 Speaker 5: why would I be, you know, allocating funds to something 469 00:20:02,000 --> 00:20:04,080 Speaker 5: If I don't have a specific goal in mind and 470 00:20:04,119 --> 00:20:05,160 Speaker 5: I don't know what I'm working. 471 00:20:05,160 --> 00:20:06,520 Speaker 1: It's like you may as well spend. 472 00:20:06,600 --> 00:20:08,640 Speaker 5: Yeah, you may as well spend. Like I've got five 473 00:20:08,720 --> 00:20:10,520 Speaker 5: hundred dollars in my account. I know I'm going to 474 00:20:10,560 --> 00:20:13,400 Speaker 5: get paid in three weeks. It doesn't actually matter if 475 00:20:13,440 --> 00:20:16,720 Speaker 5: I spend that five hundred dollars, but it does because 476 00:20:17,040 --> 00:20:18,920 Speaker 5: you need to work out what your goals are, where 477 00:20:18,920 --> 00:20:20,119 Speaker 5: you're going, what you want to do. 478 00:20:20,119 --> 00:20:21,040 Speaker 4: Do you want to buy a home? 479 00:20:21,400 --> 00:20:24,159 Speaker 5: Is that something that you want in the future. If not, 480 00:20:24,240 --> 00:20:27,120 Speaker 5: that's totally cool. But do you want to retire? Retirement 481 00:20:27,200 --> 00:20:29,199 Speaker 5: is such a boring thing to talk about because it 482 00:20:29,240 --> 00:20:30,840 Speaker 5: seems so far in the distance. 483 00:20:30,880 --> 00:20:33,120 Speaker 4: It is something that you know, seems quite. 484 00:20:32,960 --> 00:20:35,560 Speaker 5: Elusive, and you know you've got forty or fifty years 485 00:20:35,600 --> 00:20:38,439 Speaker 5: to still work, and you know people are talking about 486 00:20:38,480 --> 00:20:41,199 Speaker 5: how the retirement age is going to change to be 487 00:20:41,400 --> 00:20:43,679 Speaker 5: seventy and you're like, wow, that's you know, that's a 488 00:20:43,760 --> 00:20:46,200 Speaker 5: million years off. Why should I care about it now? 489 00:20:46,520 --> 00:20:48,320 Speaker 5: Why should you care about it now? Because if you're 490 00:20:48,320 --> 00:20:51,760 Speaker 5: investing five hundred dollars a month from the age of 491 00:20:51,840 --> 00:20:54,040 Speaker 5: twenty one, you'd be a millionaire by the time you 492 00:20:54,080 --> 00:20:55,200 Speaker 5: were in retirement. 493 00:20:55,240 --> 00:20:55,960 Speaker 4: That's crazy. 494 00:20:56,680 --> 00:21:00,280 Speaker 5: So I think that the impact of you know, making 495 00:21:00,320 --> 00:21:03,359 Speaker 5: some small steps today is actually going to have a 496 00:21:03,440 --> 00:21:06,680 Speaker 5: massive impact on your future. Whether you're starting right now 497 00:21:06,760 --> 00:21:09,200 Speaker 5: at the age of twenty one or you're starting at 498 00:21:09,200 --> 00:21:11,560 Speaker 5: the age of thirty five, you can still have that 499 00:21:11,640 --> 00:21:15,560 Speaker 5: massive impact on your financial future. So another thing Jacinta 500 00:21:15,640 --> 00:21:19,119 Speaker 5: can do is automate her transfers. So if she's saying 501 00:21:19,160 --> 00:21:21,200 Speaker 5: I'm bad with money, I don't know what I'm doing, 502 00:21:21,600 --> 00:21:24,760 Speaker 5: make it not your responsibility. So I'm not saying don't 503 00:21:24,760 --> 00:21:28,080 Speaker 5: take responsibility for the situation you're in, but stop the 504 00:21:28,160 --> 00:21:30,360 Speaker 5: part of you that wants to spend money and go out. 505 00:21:30,680 --> 00:21:33,879 Speaker 5: Stop that person from having access to those funds. So 506 00:21:34,000 --> 00:21:36,280 Speaker 5: sit down and say, all right, I earn four thousand 507 00:21:36,320 --> 00:21:39,399 Speaker 5: dollars per month. This is where that four thousand dollars 508 00:21:39,440 --> 00:21:40,600 Speaker 5: each month is going to go. 509 00:21:40,920 --> 00:21:41,760 Speaker 4: This is what I have. 510 00:21:41,800 --> 00:21:44,719 Speaker 5: To spend on friends and family and going out. This 511 00:21:44,800 --> 00:21:47,480 Speaker 5: is what I have to spend on bills. Automate any 512 00:21:47,600 --> 00:21:50,000 Speaker 5: payments that you can, So if you can pay a 513 00:21:50,040 --> 00:21:53,000 Speaker 5: bill by a direct debit, do it. Put it into 514 00:21:53,040 --> 00:21:55,680 Speaker 5: a bank account. Change your banking structure so that you're 515 00:21:55,680 --> 00:21:58,480 Speaker 5: in a position where all of your income comes into 516 00:21:58,520 --> 00:22:01,000 Speaker 5: one account, all of your bank bills come out of that, 517 00:22:01,080 --> 00:22:04,080 Speaker 5: and you allocate yourself a certain amount of spending money 518 00:22:04,080 --> 00:22:06,240 Speaker 5: per week, and if you go over that, well, it 519 00:22:06,280 --> 00:22:08,480 Speaker 5: looks like noodles for the rest of the week because 520 00:22:08,520 --> 00:22:10,720 Speaker 5: you can't have any more than that. I think putting 521 00:22:10,720 --> 00:22:15,359 Speaker 5: yourself in a position where you are empowered financially but 522 00:22:15,520 --> 00:22:19,960 Speaker 5: also constrained by certain figures is really important when trying 523 00:22:19,960 --> 00:22:23,960 Speaker 5: to achieve goals, because short term gratification is always such 524 00:22:23,960 --> 00:22:26,119 Speaker 5: a stronger feeling than long term gain. 525 00:22:26,480 --> 00:22:28,840 Speaker 1: Would you recommend setting up like a rainy day's. 526 00:22:28,640 --> 00:22:31,359 Speaker 5: Bank account absolutely, and it sounds like Jacinta's in a 527 00:22:31,400 --> 00:22:33,679 Speaker 5: position where she has set that up. She said she 528 00:22:33,760 --> 00:22:36,280 Speaker 5: had five thousand dollars to her name. But I think 529 00:22:36,280 --> 00:22:38,760 Speaker 5: it's really important to realize that savings and a rainy 530 00:22:38,800 --> 00:22:42,080 Speaker 5: day fund are not actually the same thing. So savings 531 00:22:42,160 --> 00:22:44,520 Speaker 5: are something that you put aside to go towards a 532 00:22:44,600 --> 00:22:47,119 Speaker 5: larger goal, whereas a rainy day fund, whether that's one 533 00:22:47,119 --> 00:22:49,920 Speaker 5: thousand dollars, two thousand dollars, or in Ciners case, five 534 00:22:50,000 --> 00:22:52,720 Speaker 5: thousand dollars, that fund is there if you're ever in 535 00:22:52,760 --> 00:22:55,480 Speaker 5: a position where you need to access funds quickly but 536 00:22:55,640 --> 00:22:58,159 Speaker 5: not draw down on the savings so you're still on 537 00:22:58,280 --> 00:22:59,600 Speaker 5: track to make your goals. 538 00:23:00,119 --> 00:23:01,040 Speaker 1: You conflated the time. 539 00:23:01,400 --> 00:23:03,640 Speaker 5: Yeah, look a lot of people do, and I think 540 00:23:03,680 --> 00:23:07,480 Speaker 5: it's something that is really common. It's not unusual to say, well, 541 00:23:07,480 --> 00:23:09,960 Speaker 5: i've got savings, I'll just dip into those when I 542 00:23:10,000 --> 00:23:12,920 Speaker 5: have financial hardship on a rainy day. You might need 543 00:23:12,920 --> 00:23:15,920 Speaker 5: that entire five thousand exactly, and then you're back at 544 00:23:15,920 --> 00:23:18,640 Speaker 5: ground zero. So where do we start from. I think 545 00:23:18,640 --> 00:23:21,479 Speaker 5: it's really important to differentiate the two. If we've got 546 00:23:21,520 --> 00:23:24,280 Speaker 5: a rainy day account and we've got a savings account. 547 00:23:24,320 --> 00:23:26,960 Speaker 5: Those two things to me personally a different sat at 548 00:23:27,000 --> 00:23:30,639 Speaker 5: a million times. Personal finance is just that it's personal. 549 00:23:30,880 --> 00:23:33,080 Speaker 5: But if you're in a position where you can create 550 00:23:33,119 --> 00:23:35,320 Speaker 5: a rainy day fund, where if you find yourself in 551 00:23:35,320 --> 00:23:36,480 Speaker 5: a position where you don't. 552 00:23:36,320 --> 00:23:38,280 Speaker 4: Have income for a month or you have a really. 553 00:23:38,160 --> 00:23:41,600 Speaker 5: Large unexpected cost, those things aren't going to impact you 554 00:23:41,720 --> 00:23:43,320 Speaker 5: achieving your goals long term. 555 00:23:43,359 --> 00:23:45,679 Speaker 1: And maybe a rainy day's bank account might be different 556 00:23:45,680 --> 00:23:46,480 Speaker 1: for someone with kids. 557 00:23:46,760 --> 00:23:50,800 Speaker 5: Yes, absolutely, so I'm in a position where I don't 558 00:23:50,800 --> 00:23:52,960 Speaker 5: have any dependence. I don't have any kids, but a 559 00:23:53,000 --> 00:23:55,680 Speaker 5: cat I treat like a kid. And my rainy day 560 00:23:55,680 --> 00:23:58,280 Speaker 5: fund is far less than most of my clients because 561 00:23:58,320 --> 00:24:01,600 Speaker 5: I know that that's enough for me to survive financially, 562 00:24:02,080 --> 00:24:04,159 Speaker 5: pay my bills, pay my rent, make sure I'm in 563 00:24:04,200 --> 00:24:07,879 Speaker 5: an okay financial position for three months, whereas someone with 564 00:24:08,040 --> 00:24:12,439 Speaker 5: kids might have to factor in childcare costs, children's fees, 565 00:24:12,960 --> 00:24:16,040 Speaker 5: medical whatever, your you know, whatever is a part of 566 00:24:16,080 --> 00:24:19,359 Speaker 5: your story into that fund. So my fee or my 567 00:24:19,800 --> 00:24:22,520 Speaker 5: costs are a bare minimum, whereas someone else's might be 568 00:24:22,720 --> 00:24:26,080 Speaker 5: you know, a lot more cushiony. So ultimately it actually 569 00:24:26,119 --> 00:24:27,959 Speaker 5: looks like just center you're in a position where you're 570 00:24:28,040 --> 00:24:30,439 Speaker 5: lacking a little bit of direction. You might not know 571 00:24:30,480 --> 00:24:32,600 Speaker 5: what your goals are, what your values are, And I 572 00:24:32,640 --> 00:24:35,120 Speaker 5: think to me, that's the most important thing to work 573 00:24:35,160 --> 00:24:37,360 Speaker 5: out this week. Sit down, work out where you want 574 00:24:37,359 --> 00:24:38,800 Speaker 5: to be in five years, where you want to be 575 00:24:38,840 --> 00:24:40,760 Speaker 5: in ten years, and what you want to do for 576 00:24:40,800 --> 00:24:42,800 Speaker 5: the rest of your life. I'm not saying these things 577 00:24:42,840 --> 00:24:46,320 Speaker 5: can't change, because they always do. But if we can't 578 00:24:46,400 --> 00:24:50,320 Speaker 5: create direction for ourselves, it's very hard to change our situation. 579 00:24:50,560 --> 00:24:52,600 Speaker 1: Okay, So just sinta, it looks like we're doing a 580 00:24:52,600 --> 00:24:55,560 Speaker 1: couple of things. We're grabbing those four figures. We're also 581 00:24:55,560 --> 00:24:58,840 Speaker 1: grabbing a highlighter. We're setting up those automatic bank transfers, 582 00:24:58,880 --> 00:25:01,439 Speaker 1: and where potentially setting up that rainy day fund. If 583 00:25:01,480 --> 00:25:04,200 Speaker 1: any listeners want to share their money dilemma on the show, 584 00:25:04,280 --> 00:25:06,600 Speaker 1: give us a call on Oh four three five two 585 00:25:06,760 --> 00:25:09,760 Speaker 1: nine three double eight six. That's oh four three five 586 00:25:09,920 --> 00:25:17,760 Speaker 1: two nine three double eight six. Okay, Now for the 587 00:25:17,800 --> 00:25:20,280 Speaker 1: fun stuff. What good would a money podcast be without 588 00:25:20,320 --> 00:25:23,439 Speaker 1: the pervy stuff. Each week we're bringing you a money diary. 589 00:25:23,720 --> 00:25:32,040 Speaker 1: Let's do this. Today's money diary is from a teacher 590 00:25:32,080 --> 00:25:34,280 Speaker 1: whose history with money isn't straightforward. 591 00:25:34,560 --> 00:25:38,320 Speaker 3: Hi, I'm twenty eight and I'm controlling. I'm like really 592 00:25:38,440 --> 00:25:43,280 Speaker 3: thoughtful about everything that I spend my money on. I think, like, 593 00:25:43,320 --> 00:25:45,600 Speaker 3: because I was a student for a long time towards 594 00:25:45,640 --> 00:25:48,480 Speaker 3: the end of my second degree, all my friends were 595 00:25:48,480 --> 00:25:52,040 Speaker 3: working and I wanted to keep up, and I was 596 00:25:52,080 --> 00:25:54,240 Speaker 3: living out of home at that time, and so I 597 00:25:53,920 --> 00:25:55,800 Speaker 3: was I wasn't I it was really conscious of the 598 00:25:55,800 --> 00:25:57,880 Speaker 3: fact that I wasn't earning as much as my friends were, 599 00:25:58,160 --> 00:26:00,159 Speaker 3: but I still wanted to keep up, and so like, 600 00:26:00,160 --> 00:26:02,000 Speaker 3: I kept myself super accountable and I just feel like 601 00:26:02,000 --> 00:26:02,840 Speaker 3: I never got out of that. 602 00:26:02,920 --> 00:26:05,480 Speaker 1: Okay, So down to the nitty gritty stuff. How much 603 00:26:05,520 --> 00:26:08,000 Speaker 1: does twenty eight and controlling earn and how much has 604 00:26:08,040 --> 00:26:08,640 Speaker 1: she saved? 605 00:26:08,840 --> 00:26:11,800 Speaker 3: I earn about seventy two thousand each year. Right now, 606 00:26:11,880 --> 00:26:14,720 Speaker 3: I've got about thirty five thousand in my savings. Yeah, 607 00:26:14,960 --> 00:26:17,640 Speaker 3: I'm really proud of it. Like, yeah, I'm super proud 608 00:26:17,640 --> 00:26:22,040 Speaker 3: of it. No, Yeah, it's really important to me. Oh God, 609 00:26:22,840 --> 00:26:27,800 Speaker 3: to me, it represents like my independence, and to me 610 00:26:27,880 --> 00:26:30,600 Speaker 3: it's kind of like my rainy day fund almost like 611 00:26:30,640 --> 00:26:32,600 Speaker 3: I'm saving for a house at the moment, and that's 612 00:26:32,680 --> 00:26:35,119 Speaker 3: kind of taking precedent with my savings. But yeah, it 613 00:26:35,240 --> 00:26:37,280 Speaker 3: just shows that, like I don't know that, like at 614 00:26:37,280 --> 00:26:38,840 Speaker 3: this I'm really proud of it at this point in 615 00:26:38,840 --> 00:26:40,680 Speaker 3: my life because I feel like I'm where I want 616 00:26:40,720 --> 00:26:41,000 Speaker 3: to be. 617 00:26:41,160 --> 00:26:43,600 Speaker 1: The reason twenty eight and controlling has a fraught relationship 618 00:26:43,640 --> 00:26:46,040 Speaker 1: with money largely comes down to her parents and how 619 00:26:46,080 --> 00:26:47,800 Speaker 1: they dealt with their own finances. 620 00:26:48,000 --> 00:26:53,040 Speaker 3: My parents are now divorced, but they I didn't realize. 621 00:26:53,080 --> 00:26:55,679 Speaker 3: I didn't learn this until after they divorced, until I 622 00:26:55,760 --> 00:26:59,320 Speaker 3: was like really an adult, But they never shared a 623 00:26:59,320 --> 00:27:02,800 Speaker 3: bank account in their whole marriage. And when I learned that, 624 00:27:02,840 --> 00:27:05,439 Speaker 3: I thought, I just felt that was really odd. And 625 00:27:05,480 --> 00:27:09,000 Speaker 3: then kind of as I learned more, I discovered that 626 00:27:09,359 --> 00:27:12,440 Speaker 3: my dad made a lot of the financial decisions, which 627 00:27:12,480 --> 00:27:15,240 Speaker 3: I it's quite traditionalist. I guess that, like you know, 628 00:27:15,240 --> 00:27:17,800 Speaker 3: it's probably the same in a lot of families of 629 00:27:17,800 --> 00:27:19,639 Speaker 3: people my age as well. I mean, I don't know, 630 00:27:19,680 --> 00:27:22,720 Speaker 3: but he made a lot of the decisions, and I 631 00:27:22,760 --> 00:27:27,960 Speaker 3: guess after my parents separated, they stayed married for a 632 00:27:28,040 --> 00:27:30,240 Speaker 3: really long time so that my dad could continue to 633 00:27:30,280 --> 00:27:33,040 Speaker 3: support my mum in a lot of different ways. And 634 00:27:33,440 --> 00:27:36,720 Speaker 3: although it worked out fine, and although my mum in 635 00:27:36,760 --> 00:27:40,439 Speaker 3: other ways, you know, gained her independence, and even now 636 00:27:40,480 --> 00:27:44,000 Speaker 3: she's very independent. She owns a house outright, and she's 637 00:27:44,040 --> 00:27:47,960 Speaker 3: very self sufficient financially. I just really thought, like, I 638 00:27:49,680 --> 00:27:53,920 Speaker 3: don't want to become a mum and then lose my capacity. 639 00:27:54,040 --> 00:27:56,159 Speaker 3: I know I wouldn't totally lose it, but lose some 640 00:27:56,200 --> 00:28:00,240 Speaker 3: of my capacity to earn independently. And so yeah, I yes, 641 00:28:00,280 --> 00:28:04,439 Speaker 3: I tie I link really closely. When I think about money, 642 00:28:04,600 --> 00:28:07,280 Speaker 3: I link it to my career really closely, because that's 643 00:28:07,320 --> 00:28:10,200 Speaker 3: obviously it's how I own money. But that in continuing 644 00:28:10,200 --> 00:28:15,160 Speaker 3: to build my career and using my degree and having 645 00:28:15,240 --> 00:28:18,200 Speaker 3: a career that's sustainable, I really see that as, yeah, 646 00:28:18,280 --> 00:28:20,240 Speaker 3: like a safety net for myself. I guess. 647 00:28:20,600 --> 00:28:23,320 Speaker 1: So we know how twenty eight and controlling gets paid, 648 00:28:23,560 --> 00:28:26,320 Speaker 1: but what exactly happens to that money afterwards? Deposited into 649 00:28:26,359 --> 00:28:28,240 Speaker 1: her account every fortnight. 650 00:28:28,240 --> 00:28:31,560 Speaker 3: So I've got I've got some a balance on my 651 00:28:31,560 --> 00:28:33,800 Speaker 3: credit card, so some of it goes to that, although 652 00:28:33,840 --> 00:28:36,280 Speaker 3: I decide each fortnight, I kind of decide how much 653 00:28:36,320 --> 00:28:39,080 Speaker 3: we'll go to that. But each fortnite I have about 654 00:28:39,080 --> 00:28:41,760 Speaker 3: four hundred bucks go to savings, and then I have 655 00:28:42,320 --> 00:28:45,080 Speaker 3: four hundred dollars goes to my joint account with my partner. 656 00:28:45,360 --> 00:28:48,400 Speaker 1: Now let's talk about investing DOES twenty eight and controlling 657 00:28:48,440 --> 00:28:52,640 Speaker 1: invest and if not, why no, No, I don't. 658 00:28:53,080 --> 00:28:56,680 Speaker 3: My partner is really interest he has more of a 659 00:28:57,280 --> 00:28:59,320 Speaker 3: well in our friendship Greep, we joke that he's like 660 00:28:59,360 --> 00:29:03,080 Speaker 3: a businessman like he's yeah, like he's but that's that's 661 00:29:03,080 --> 00:29:04,720 Speaker 3: what he's like. Like, he's got that kind of mind, 662 00:29:04,760 --> 00:29:07,200 Speaker 3: and he looks for opportunities to invest. And you know, 663 00:29:07,280 --> 00:29:09,040 Speaker 3: he'll be like the first to tell you that, oh 664 00:29:09,120 --> 00:29:11,040 Speaker 3: this thing, like he invested in baby formula and he's 665 00:29:11,040 --> 00:29:13,200 Speaker 3: actually made like a lot of money from it. Yeah, 666 00:29:13,280 --> 00:29:15,120 Speaker 3: Like but he's he's on top of all of that, 667 00:29:15,160 --> 00:29:18,480 Speaker 3: even if it's something that he's not interested in. So yeah, 668 00:29:18,520 --> 00:29:20,360 Speaker 3: he kind of like wears that for us. And I 669 00:29:20,400 --> 00:29:22,120 Speaker 3: don't even I don't invest in anything. It's one of 670 00:29:22,160 --> 00:29:24,320 Speaker 3: those things I was just saying actually earlier. It's one 671 00:29:24,360 --> 00:29:27,520 Speaker 3: of those things that and I'm like this, this is 672 00:29:27,520 --> 00:29:30,080 Speaker 3: my personality as well. I don't. I'm a bit bored 673 00:29:30,080 --> 00:29:32,800 Speaker 3: by it. I don't know enough about it, so then 674 00:29:32,840 --> 00:29:35,320 Speaker 3: I don't want to learn about it, and so I 675 00:29:35,400 --> 00:29:37,560 Speaker 3: just don't. I just don't bother like I just yeah, 676 00:29:37,720 --> 00:29:40,680 Speaker 3: what I've got is like a bank account, savings account 677 00:29:40,720 --> 00:29:42,280 Speaker 3: that acrues interest, and that's pretty much it. 678 00:29:42,440 --> 00:29:44,600 Speaker 1: Controlling has a little bit of debt too. Here's where 679 00:29:44,640 --> 00:29:45,440 Speaker 1: she stands with it all. 680 00:29:45,480 --> 00:29:49,760 Speaker 3: I have twenty GRANDEXTEP at the moment, I have about 681 00:29:49,800 --> 00:29:50,960 Speaker 3: three grand on my credit. 682 00:29:50,840 --> 00:29:54,920 Speaker 1: Card twenty eight And Controlling knows what she's good at 683 00:29:54,960 --> 00:29:56,840 Speaker 1: when it comes to money. Her best money habit is 684 00:29:56,880 --> 00:29:58,840 Speaker 1: one she's had for a while and dates back to 685 00:29:58,880 --> 00:30:00,000 Speaker 1: her early UNI days. 686 00:30:00,240 --> 00:30:03,880 Speaker 3: So my best money have it is that I don't 687 00:30:03,920 --> 00:30:09,040 Speaker 3: buy anything without really thinking it through. Like I don't 688 00:30:09,040 --> 00:30:12,360 Speaker 3: impulse buy ever, because I just there was a time 689 00:30:12,440 --> 00:30:14,520 Speaker 3: when I couldn't, Like I really couldn't, Like I might 690 00:30:14,520 --> 00:30:16,440 Speaker 3: have had fifty bucks for the week, and if I 691 00:30:16,480 --> 00:30:18,080 Speaker 3: was going to buy, like literally, if I was going 692 00:30:18,160 --> 00:30:19,760 Speaker 3: to buy that top instead of go out, that's the 693 00:30:19,800 --> 00:30:22,080 Speaker 3: decision I made. And it's kind of annoying sometimes because 694 00:30:22,120 --> 00:30:23,960 Speaker 3: I think, like, God, how I live? And I have 695 00:30:24,360 --> 00:30:27,920 Speaker 3: buyers remorse all the time. I returned things all the time. 696 00:30:28,040 --> 00:30:30,240 Speaker 1: And her worst money habit, well, let's just say it 697 00:30:30,280 --> 00:30:32,320 Speaker 1: comes back to describing herself as controlling. 698 00:30:32,560 --> 00:30:36,960 Speaker 3: I'm at the point of my life now where things 699 00:30:37,000 --> 00:30:41,400 Speaker 3: are becoming more in meshed when it comes to money 700 00:30:41,400 --> 00:30:44,280 Speaker 3: with my partner. And yeah, as I said, we're thinking 701 00:30:44,280 --> 00:30:48,560 Speaker 3: about we are looking at buying a house, and we 702 00:30:48,640 --> 00:30:51,200 Speaker 3: do share a bank account and that's for everyday things 703 00:30:51,200 --> 00:30:54,800 Speaker 3: like that's for bills and rent and stuff. And still 704 00:30:54,880 --> 00:30:57,640 Speaker 3: I'm like, was that fifty dollars gone? Did you spend 705 00:30:57,680 --> 00:30:59,400 Speaker 3: twenty two dollars on a collus which you buy? I 706 00:30:59,440 --> 00:31:01,360 Speaker 3: didn't see anything new and the fridge, Like, I'm really 707 00:31:02,080 --> 00:31:04,760 Speaker 3: can be quite picky like that because when it comes 708 00:31:04,960 --> 00:31:08,000 Speaker 3: I'm when I'm just managing myself. That's how I keep 709 00:31:08,040 --> 00:31:11,160 Speaker 3: myself to account, you know. So he when he's like, oh, 710 00:31:11,200 --> 00:31:12,720 Speaker 3: we've got to top up the account, I'm like, why 711 00:31:12,880 --> 00:31:15,120 Speaker 3: what's happening? Why have we gonna where the money go? 712 00:31:15,280 --> 00:31:16,800 Speaker 3: You know? I think that's my best habit. I'm not 713 00:31:16,920 --> 00:31:18,760 Speaker 3: very trusting now sharing it with someone else. 714 00:31:18,960 --> 00:31:21,600 Speaker 1: So how would today's money diarist rate her own relationship 715 00:31:21,600 --> 00:31:23,680 Speaker 1: with money if we force her to give herself a grade? 716 00:31:23,920 --> 00:31:25,600 Speaker 3: If I was to give myself a money report, I 717 00:31:25,640 --> 00:31:28,800 Speaker 3: would give myself a B plus because I think I 718 00:31:28,840 --> 00:31:31,560 Speaker 3: am really thoughtful with money and I am very deliberate 719 00:31:31,600 --> 00:31:34,240 Speaker 3: with where I spend my money but at the same time, 720 00:31:34,720 --> 00:31:38,040 Speaker 3: I do think that if I'm going to be that way, 721 00:31:38,120 --> 00:31:39,600 Speaker 3: and if I'm going to like wear it like a 722 00:31:39,600 --> 00:31:41,320 Speaker 3: badge of honor, you know that I will return that 723 00:31:41,400 --> 00:31:43,040 Speaker 3: jacket if I don't wear it, if I don't see 724 00:31:43,080 --> 00:31:44,920 Speaker 3: myself wearing it, and all that kind of stuff. I 725 00:31:44,920 --> 00:31:49,880 Speaker 3: think that I also should be autonomous enough and independent 726 00:31:49,960 --> 00:31:52,480 Speaker 3: enough to do my homework about like investing, or about 727 00:31:52,680 --> 00:31:54,920 Speaker 3: other opportunities of where to put my money. 728 00:31:55,360 --> 00:31:58,000 Speaker 1: Okay, Victoria, what struck you most about twenty eight and 729 00:31:58,040 --> 00:31:59,160 Speaker 1: controlling his money diary? 730 00:31:59,280 --> 00:32:03,200 Speaker 5: That she called herself controlling instead of empowered. Honestly, I 731 00:32:03,240 --> 00:32:05,520 Speaker 5: think it's something that she should be really proud of. 732 00:32:05,600 --> 00:32:07,720 Speaker 5: You could hear it in her voice, and it made 733 00:32:07,800 --> 00:32:12,160 Speaker 5: me really proud of her that she's created exactly. She's 734 00:32:12,240 --> 00:32:16,080 Speaker 5: created this base that's made her feel confident and safe, 735 00:32:16,440 --> 00:32:18,240 Speaker 5: and I think that if we could all do that 736 00:32:18,280 --> 00:32:21,120 Speaker 5: for ourselves, we would be far far better off. But 737 00:32:21,640 --> 00:32:23,600 Speaker 5: I think she needs to change her mindset around the 738 00:32:23,640 --> 00:32:26,720 Speaker 5: way she's viewing money. Her money story sounded like it 739 00:32:26,840 --> 00:32:29,560 Speaker 5: had a massive impact on her life, and in a 740 00:32:29,600 --> 00:32:33,440 Speaker 5: really positive way. From a negative situation. She's created this 741 00:32:33,560 --> 00:32:36,000 Speaker 5: life where she's going to achieve so many things. She 742 00:32:36,040 --> 00:32:38,320 Speaker 5: said that she feels a little bit bad about, you know, 743 00:32:38,400 --> 00:32:41,480 Speaker 5: the way she approaches money with her partner, But potentially 744 00:32:41,560 --> 00:32:44,400 Speaker 5: by having a conversation about his money story, they could 745 00:32:44,440 --> 00:32:47,040 Speaker 5: get on the same page. If they can sit down 746 00:32:47,080 --> 00:32:49,760 Speaker 5: and share things about where she's come from and potentially 747 00:32:49,760 --> 00:32:52,240 Speaker 5: share the story she's just shared with us with her partner, 748 00:32:52,360 --> 00:32:54,280 Speaker 5: where did this come from? Why do you feel like this? 749 00:32:54,440 --> 00:32:57,480 Speaker 5: How does this impact our relationship? And he can do 750 00:32:57,800 --> 00:32:59,920 Speaker 5: the same thing. I think they'll be in a farm 751 00:33:00,080 --> 00:33:03,440 Speaker 5: empowered position to have those conversations, to purchase a house, 752 00:33:03,480 --> 00:33:06,440 Speaker 5: to have a shared bank account, because moving forward, it 753 00:33:06,480 --> 00:33:09,600 Speaker 5: sounds like she's planning her life with this person, and 754 00:33:09,760 --> 00:33:12,920 Speaker 5: money only gets harder when you introduce dependence and a 755 00:33:13,000 --> 00:33:15,600 Speaker 5: mortgage and things that are going to put more financial 756 00:33:15,680 --> 00:33:18,840 Speaker 5: stress on a relationship. So she can get across how 757 00:33:18,880 --> 00:33:20,800 Speaker 5: that works for her partner, how that works for her, 758 00:33:20,840 --> 00:33:23,120 Speaker 5: and how those things interlock, she's going to be in 759 00:33:23,160 --> 00:33:26,120 Speaker 5: a far more secure position than had she not had 760 00:33:26,120 --> 00:33:26,920 Speaker 5: that conversation. 761 00:33:27,200 --> 00:33:28,960 Speaker 1: So that's what she should improve on. What do you 762 00:33:29,080 --> 00:33:30,520 Speaker 1: think she's doing really well? 763 00:33:30,520 --> 00:33:33,400 Speaker 5: I feel like she's doing a lot saving saving I 764 00:33:33,440 --> 00:33:36,160 Speaker 5: think that she's done an incredible job for her age. 765 00:33:36,200 --> 00:33:38,440 Speaker 5: There are not many people that can say they've saved 766 00:33:38,520 --> 00:33:41,959 Speaker 5: that amount of money. I think the credit card potentially 767 00:33:42,040 --> 00:33:45,240 Speaker 5: could be knocked down. If you're in a position where 768 00:33:45,240 --> 00:33:47,719 Speaker 5: you've got a credit card with three thousand dollars on it, 769 00:33:47,720 --> 00:33:51,200 Speaker 5: you're potentially in a position where there's an interest rate 770 00:33:51,240 --> 00:33:55,200 Speaker 5: between fourteen and eighteen percent being applied to that. And 771 00:33:55,640 --> 00:33:58,720 Speaker 5: maybe it's a good idea to consider pulling some money 772 00:33:58,720 --> 00:34:01,240 Speaker 5: out of savings to get rid of instead of, you know, 773 00:34:01,520 --> 00:34:04,480 Speaker 5: paying off interest that essentially gets flushed down the toilet 774 00:34:04,680 --> 00:34:07,320 Speaker 5: and using those credit card repayments that she's making each 775 00:34:07,360 --> 00:34:09,280 Speaker 5: month just to replenish her savings. 776 00:34:09,520 --> 00:34:11,880 Speaker 1: How do you consider her overall self analysis? 777 00:34:11,920 --> 00:34:12,080 Speaker 3: Then? 778 00:34:12,120 --> 00:34:13,720 Speaker 1: Do you think she's been a bit hard on herself. 779 00:34:13,760 --> 00:34:16,080 Speaker 5: I think she's being pretty hard on herself. But I 780 00:34:16,120 --> 00:34:18,439 Speaker 5: think that's a reflection of the goals she's got. She's 781 00:34:18,520 --> 00:34:21,200 Speaker 5: dreaming big. There are things she wants to achieve and 782 00:34:21,320 --> 00:34:23,640 Speaker 5: places she wants to go, and she knows she's. 783 00:34:23,520 --> 00:34:24,160 Speaker 4: Not there yet. 784 00:34:24,239 --> 00:34:26,640 Speaker 5: To her, an a plus looks like having a home 785 00:34:26,680 --> 00:34:29,160 Speaker 5: paid off, it looks like having enough in savings, it 786 00:34:29,160 --> 00:34:31,480 Speaker 5: looks like not having hex step. So for her maybe 787 00:34:31,560 --> 00:34:34,279 Speaker 5: B plus is the right assessment for me. I think 788 00:34:34,280 --> 00:34:36,720 Speaker 5: she's doing fantastic. I would say she's an A plus 789 00:34:36,760 --> 00:34:39,279 Speaker 5: because she's at a stage in her life where that's 790 00:34:39,320 --> 00:34:42,480 Speaker 5: a fantastic place to be. But if she says she's 791 00:34:42,480 --> 00:34:44,520 Speaker 5: a B plus, I'm not gonna argue with her, because 792 00:34:44,520 --> 00:34:45,680 Speaker 5: we can only go up from here. 793 00:34:46,160 --> 00:34:48,960 Speaker 1: Well, that's all we have time for today. Unfortunately, that's 794 00:34:49,000 --> 00:34:51,839 Speaker 1: so quickly. Just before we head off, let's quickly wrap 795 00:34:51,920 --> 00:34:54,279 Speaker 1: up the boring but important stuff. The advice shared on 796 00:34:54,360 --> 00:34:56,279 Speaker 1: She's on the Money is general in nature and does 797 00:34:56,320 --> 00:34:59,720 Speaker 1: not consider your individual circumstances. She's on the Money purely 798 00:34:59,719 --> 00:35:02,719 Speaker 1: ex for educational purposes only and should not be relied 799 00:35:02,800 --> 00:35:05,399 Speaker 1: upon to make an investment or financial decision. Oh and yes, 800 00:35:05,440 --> 00:35:09,040 Speaker 1: don't worry, we promised. 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