1 00:00:00,200 --> 00:00:02,040 Speaker 1: She's on the Money. 2 00:00:02,160 --> 00:00:17,440 Speaker 2: She's on the Money. 3 00:00:20,800 --> 00:00:23,400 Speaker 1: Hello, and welcome to She's on the Money, the podcast 4 00:00:23,440 --> 00:00:26,120 Speaker 1: for millennials who want financial freedom. I'm one of your 5 00:00:26,120 --> 00:00:28,600 Speaker 1: co hosts, Annabel Lee. I'm a law student and a 6 00:00:28,640 --> 00:00:31,080 Speaker 1: millennial who loves learning more and more about money from 7 00:00:31,080 --> 00:00:35,000 Speaker 1: my friend and money expert Victoria Divine. Hey Victoria, good morning. 8 00:00:35,120 --> 00:00:36,800 Speaker 1: Welcome back from your trip to New Zealand. 9 00:00:37,000 --> 00:00:37,800 Speaker 3: Ah, thank you. 10 00:00:38,360 --> 00:00:40,479 Speaker 1: I feel like we need to say I'm recovering from 11 00:00:40,479 --> 00:00:43,120 Speaker 1: a cold and Victoria might be catching a cold. 12 00:00:43,200 --> 00:00:45,120 Speaker 3: I don't know, maybe we're on the same wavelength. 13 00:00:45,200 --> 00:00:48,120 Speaker 1: Perhaps so many of you guys are sharing your amazing 14 00:00:48,120 --> 00:00:50,800 Speaker 1: money wins in our Facebook group every day, so let's 15 00:00:50,880 --> 00:00:53,239 Speaker 1: draw a couple from the last few weeks. I've got 16 00:00:53,240 --> 00:00:56,120 Speaker 1: one from April, she said. It's officially the last day 17 00:00:56,160 --> 00:00:59,320 Speaker 1: of no by July. I challenged myself to spend zero 18 00:00:59,360 --> 00:01:02,240 Speaker 1: dollars on necessary items during July, and I've only spent 19 00:01:02,280 --> 00:01:04,600 Speaker 1: a grand total of five dollars on some stickers for 20 00:01:04,640 --> 00:01:06,679 Speaker 1: my three year old. I'm so proud of this achievement. 21 00:01:06,800 --> 00:01:09,160 Speaker 1: My husband and I have some pretty massive money decisions 22 00:01:09,200 --> 00:01:10,880 Speaker 1: to make in the near future, and I can feel 23 00:01:10,920 --> 00:01:13,760 Speaker 1: my attitudes and habits shifting in a more positive direction. 24 00:01:14,240 --> 00:01:16,960 Speaker 1: I'm really loving this whole motivational month thing. 25 00:01:17,360 --> 00:01:18,800 Speaker 3: I love it as well, and I love that they're 26 00:01:18,840 --> 00:01:20,800 Speaker 3: all sharing it in the group as well. Like I 27 00:01:20,880 --> 00:01:23,840 Speaker 3: haven't got less excited each time someone posts. 28 00:01:23,920 --> 00:01:27,400 Speaker 1: Now someone posts, I'm like, yes, do it no by July. 29 00:01:27,440 --> 00:01:29,360 Speaker 1: I feel like works hand in hand with dry July. 30 00:01:29,959 --> 00:01:32,640 Speaker 3: It does, but I don't drink, don't buy. Yeah, look, 31 00:01:32,640 --> 00:01:35,720 Speaker 3: that's not a fun couple, so I have one as well. 32 00:01:35,760 --> 00:01:37,760 Speaker 3: I was actually annoyed at you because I really liked 33 00:01:37,840 --> 00:01:39,399 Speaker 3: a pearls and I was going to use it. But 34 00:01:39,560 --> 00:01:42,399 Speaker 3: I've got Alaniz And she said, dear, she's on the 35 00:01:42,400 --> 00:01:44,920 Speaker 3: money dream team. I just want to say, with all 36 00:01:44,959 --> 00:01:47,640 Speaker 3: my heart, thank you since releasing your podcast on my 37 00:01:47,680 --> 00:01:50,520 Speaker 3: fifty three thousand dollars salary I have. And she has 38 00:01:50,520 --> 00:01:53,560 Speaker 3: a list of things that she's done. Yeah, it was 39 00:01:53,640 --> 00:01:56,400 Speaker 3: really cute, so paid out my after pains it Bay. 40 00:01:56,680 --> 00:01:59,920 Speaker 3: She has raised the fortnightly repayments on her loan into 41 00:02:00,080 --> 00:02:03,520 Speaker 3: years it'll be gone and she's completely happy with that timeline. 42 00:02:03,800 --> 00:02:06,600 Speaker 3: She has another tick, and it is she somehow rearranged 43 00:02:06,600 --> 00:02:08,720 Speaker 3: her budget so damn well that she now has two 44 00:02:08,720 --> 00:02:11,080 Speaker 3: and a half thousand dollars in savings for a holiday 45 00:02:11,240 --> 00:02:14,720 Speaker 3: to Japan next year, and that includes fifty dollars a 46 00:02:14,720 --> 00:02:17,920 Speaker 3: week of spending money. And she also said that I 47 00:02:18,040 --> 00:02:20,639 Speaker 3: no longer feel ashamed or like I'm letting the team down, 48 00:02:20,720 --> 00:02:23,000 Speaker 3: and my partner and I have been having frequent open 49 00:02:23,080 --> 00:02:26,079 Speaker 3: conversations about money and budgeting strategies, and I think that's 50 00:02:26,200 --> 00:02:28,120 Speaker 3: been my favorite part of all And you know what, 51 00:02:28,240 --> 00:02:31,520 Speaker 3: that's my favorite part as well, Like, I absolutely love that. 52 00:02:31,639 --> 00:02:34,440 Speaker 3: The one thing that she loved about that wasn't just 53 00:02:34,480 --> 00:02:36,920 Speaker 3: the financial side of things. It was more the feeling 54 00:02:37,000 --> 00:02:39,480 Speaker 3: that she no longer feels hindered by finance, but maybe 55 00:02:39,520 --> 00:02:40,400 Speaker 3: more empowered by it. 56 00:02:40,480 --> 00:02:42,600 Speaker 1: And it's so important to talk about finance with your 57 00:02:42,639 --> 00:02:46,000 Speaker 1: partner because it's like two people's different money stories coming together. 58 00:02:46,200 --> 00:02:48,400 Speaker 1: It's important to kind of work them out as. 59 00:02:48,320 --> 00:02:51,480 Speaker 3: One, exactly. And if you can't have those conversations, like 60 00:02:51,560 --> 00:02:54,079 Speaker 3: laiter down the track, they're going to become really big issues. 61 00:02:54,160 --> 00:02:57,480 Speaker 1: I'll catch up to you, exactly. So Victoria, today on 62 00:02:57,480 --> 00:03:00,680 Speaker 1: the show, we're talking all things investing again. So we've 63 00:03:00,720 --> 00:03:03,680 Speaker 1: already gone through the basics. What's an investment, what's a share? 64 00:03:04,080 --> 00:03:06,919 Speaker 1: But today we're going a bit deeper than that. Before 65 00:03:06,919 --> 00:03:09,120 Speaker 1: we get there, though, as always, it's time to share 66 00:03:09,160 --> 00:03:11,200 Speaker 1: a money win or a money confession from the week, 67 00:03:11,480 --> 00:03:14,200 Speaker 1: and as per usual, you can give us off, Victoria. 68 00:03:14,440 --> 00:03:17,920 Speaker 3: I know you love going first, always going first. So 69 00:03:18,680 --> 00:03:21,639 Speaker 3: this week, as Annabel mentioned, I've just gotten back from 70 00:03:21,680 --> 00:03:25,080 Speaker 3: a holiday in New Zealand which was absolutely beautiful. But 71 00:03:25,160 --> 00:03:27,720 Speaker 3: my money confession is I didn't stick to budget. 72 00:03:28,080 --> 00:03:30,920 Speaker 1: And that's okay sometimes, Oh look it is okay. 73 00:03:31,160 --> 00:03:33,720 Speaker 3: I'm a budgeter and I like knowing what's going on. 74 00:03:33,800 --> 00:03:36,640 Speaker 3: You should have seen the spreadsheet i'd organized for this holiday. 75 00:03:37,040 --> 00:03:39,480 Speaker 3: I had it down to a tee, but a few 76 00:03:39,480 --> 00:03:41,400 Speaker 3: things came up, and you know, we saw a couple 77 00:03:41,400 --> 00:03:44,000 Speaker 3: of restaurants we wanted to go to and we kind 78 00:03:44,040 --> 00:03:45,960 Speaker 3: of just said, well, you know what, we're not putting 79 00:03:45,960 --> 00:03:47,880 Speaker 3: it on credit, so let's just do it. 80 00:03:48,040 --> 00:03:49,680 Speaker 1: At least you had a spreadsheet. Though I'm a bit 81 00:03:49,720 --> 00:03:52,080 Speaker 1: of a holiday spreadsheeter as well, you've got to stick 82 00:03:52,120 --> 00:03:52,600 Speaker 1: to the plan. 83 00:03:53,080 --> 00:03:54,600 Speaker 3: I love it. I feel like it gets me really 84 00:03:54,640 --> 00:03:56,960 Speaker 3: excited for the holiday to come because I know exactly 85 00:03:57,040 --> 00:03:58,440 Speaker 3: what's going to happen. And when people are like, oh, 86 00:03:58,440 --> 00:04:02,080 Speaker 3: what are you doing. I'm like, well, let me so, Annabel, 87 00:04:02,160 --> 00:04:04,080 Speaker 3: what is your money with nor money confession. 88 00:04:04,320 --> 00:04:07,640 Speaker 1: I have a money confession. I have the past two 89 00:04:07,680 --> 00:04:10,800 Speaker 1: weeks gone to two bottomless brunches, which is totally not 90 00:04:11,000 --> 00:04:14,200 Speaker 1: really my thing. I don't drink all that much, but 91 00:04:14,640 --> 00:04:16,680 Speaker 1: I've felt a little bit of social pressure, which is 92 00:04:16,760 --> 00:04:18,240 Speaker 1: never good. I did have a really good time, though, 93 00:04:18,279 --> 00:04:20,640 Speaker 1: and I love brunch, but I feel like I didn't 94 00:04:20,640 --> 00:04:24,680 Speaker 1: get my money's work because alcohol is expensive, and so 95 00:04:24,920 --> 00:04:26,800 Speaker 1: is the ticket you get like a wristband to get 96 00:04:26,839 --> 00:04:29,320 Speaker 1: into bottomless brunch. Oh gosh, And like I calculated in 97 00:04:29,360 --> 00:04:31,120 Speaker 1: my head the amount of drinks I needed to drink 98 00:04:31,440 --> 00:04:32,440 Speaker 1: and what I needed. 99 00:04:32,240 --> 00:04:34,279 Speaker 3: To order to get value, to get value, and. 100 00:04:34,279 --> 00:04:36,280 Speaker 1: I don't think I did. I literally had like one 101 00:04:36,360 --> 00:04:37,719 Speaker 1: or two drinks and I was like, I'm done, I 102 00:04:37,720 --> 00:04:38,440 Speaker 1: gotta tap out. 103 00:04:38,560 --> 00:04:41,040 Speaker 3: Yeah, I feel like morning drinking is maybe not my thing. 104 00:04:41,120 --> 00:04:43,600 Speaker 3: But also it sounds like you definitely didn't do dry July. 105 00:04:43,920 --> 00:04:44,800 Speaker 1: Oh no, no no. 106 00:04:46,720 --> 00:04:49,240 Speaker 3: And I'm glad brunch comes up in every single episode. 107 00:04:49,279 --> 00:04:50,839 Speaker 3: I feel like we need to keep this theme going. 108 00:04:50,880 --> 00:04:52,480 Speaker 1: It's an important part of my life, Victoria. 109 00:04:52,600 --> 00:04:53,680 Speaker 3: Absolutely it is. 110 00:04:53,760 --> 00:04:55,800 Speaker 1: Before we get into this week's topic, let's do a 111 00:04:55,839 --> 00:04:58,080 Speaker 1: tiny recap of last week, shall we. So we're on 112 00:04:58,120 --> 00:05:01,680 Speaker 1: the same page, Victoria. Why women begin investing more? And 113 00:05:01,760 --> 00:05:04,000 Speaker 1: in the simplest of terms, what is a share? 114 00:05:04,279 --> 00:05:07,040 Speaker 3: So a share is simply part ownership of a business. 115 00:05:07,120 --> 00:05:09,960 Speaker 3: It is a very small piece of the pie that 116 00:05:10,040 --> 00:05:13,200 Speaker 3: you get, which entitles you to have a piece of 117 00:05:13,240 --> 00:05:15,719 Speaker 3: the growth and the profits of the business you're investing in. 118 00:05:15,800 --> 00:05:18,159 Speaker 3: Why should women be investing more? We should be investing 119 00:05:18,160 --> 00:05:21,040 Speaker 3: more because it puts us in a place of financial empowerment. 120 00:05:21,279 --> 00:05:23,520 Speaker 3: It provides for our future. It puts us in a 121 00:05:23,560 --> 00:05:26,120 Speaker 3: position of power, so we're not relying on anybody else 122 00:05:26,160 --> 00:05:27,800 Speaker 3: to make decisions for us in the future. 123 00:05:28,040 --> 00:05:30,120 Speaker 1: Yes, and that's really important to me as well. The 124 00:05:30,120 --> 00:05:32,080 Speaker 1: place I want to start is here. I think there 125 00:05:32,120 --> 00:05:33,680 Speaker 1: are many different types of investment. 126 00:05:33,839 --> 00:05:34,039 Speaker 4: Right. 127 00:05:34,480 --> 00:05:36,800 Speaker 1: You mentioned to me earlier that buying shares is just 128 00:05:36,880 --> 00:05:39,600 Speaker 1: one asset class. Can you explain a little to me 129 00:05:39,720 --> 00:05:40,640 Speaker 1: what that means? 130 00:05:40,960 --> 00:05:43,800 Speaker 3: So an asset class is just a type of investment. 131 00:05:43,920 --> 00:05:46,919 Speaker 3: And there are four main asset classes that we refer 132 00:05:46,960 --> 00:05:51,240 Speaker 3: to in the investment world, and those are fixed interest, cash, property, 133 00:05:51,320 --> 00:05:51,920 Speaker 3: and shares. 134 00:05:52,200 --> 00:05:53,239 Speaker 1: What is fixed interest? 135 00:05:53,360 --> 00:05:56,840 Speaker 3: Let's talk about one fixed interest is things. They call 136 00:05:56,880 --> 00:06:00,400 Speaker 3: them securities, and they are like bonds, and they really 137 00:06:00,440 --> 00:06:03,400 Speaker 3: operate in exactly the same way that a loan operates. 138 00:06:03,760 --> 00:06:07,560 Speaker 3: So you are lending money to something or someone with 139 00:06:07,680 --> 00:06:11,120 Speaker 3: the expectation of a return. So you pay cash for 140 00:06:11,160 --> 00:06:13,479 Speaker 3: a bond, you get the bond, they give you a certificate, 141 00:06:13,520 --> 00:06:16,159 Speaker 3: and in return, you receive a regular interest payment from 142 00:06:16,160 --> 00:06:19,320 Speaker 3: the bond issuer for an agreed period of time, and 143 00:06:19,360 --> 00:06:21,760 Speaker 3: then once that period of time is up, you will 144 00:06:21,800 --> 00:06:24,120 Speaker 3: receive your bond or the initial sum back. 145 00:06:24,400 --> 00:06:26,919 Speaker 1: So you said cash was one of the asset classes. 146 00:06:27,160 --> 00:06:28,000 Speaker 1: What did you mean by that? 147 00:06:28,080 --> 00:06:30,000 Speaker 3: So that refers to all of the money you've got 148 00:06:30,000 --> 00:06:32,400 Speaker 3: sitting in your bank account right now. So that could 149 00:06:32,440 --> 00:06:36,240 Speaker 3: either be earning you no money in an interest free account, 150 00:06:36,440 --> 00:06:38,320 Speaker 3: or it could be earning you, you know, one or 151 00:06:38,360 --> 00:06:40,479 Speaker 3: two percent, depending on what the market is doing. But 152 00:06:40,640 --> 00:06:42,800 Speaker 3: cash is an investment in itself. 153 00:06:42,920 --> 00:06:45,839 Speaker 1: Okay, amazing. So Victoria, is it possible for me to 154 00:06:45,880 --> 00:06:48,200 Speaker 1: earn money while my shares are locked up in an investment. 155 00:06:48,480 --> 00:06:50,559 Speaker 1: I've heard that there's an option for me to receive 156 00:06:50,680 --> 00:06:53,159 Speaker 1: payouts and another to keep it in there for the 157 00:06:53,200 --> 00:06:53,719 Speaker 1: long run. 158 00:06:53,880 --> 00:06:55,960 Speaker 3: Is that true? So yes, you're right, and so what 159 00:06:56,000 --> 00:06:59,400 Speaker 3: you're talking about in terms of regular payouts is actually 160 00:06:59,440 --> 00:07:01,680 Speaker 3: the divid and being paid to you. So you can 161 00:07:01,720 --> 00:07:03,720 Speaker 3: do one of two things with the dividend. You can 162 00:07:03,760 --> 00:07:06,520 Speaker 3: choose to take that as income because it will, you know, 163 00:07:06,600 --> 00:07:09,520 Speaker 3: come in every quarter or every six months, or however 164 00:07:09,560 --> 00:07:12,160 Speaker 3: often your dividend gets paid out. You will get that 165 00:07:12,280 --> 00:07:14,960 Speaker 3: cash into your account, and you have two options. So 166 00:07:15,040 --> 00:07:16,840 Speaker 3: you can either take that cash and spend it on 167 00:07:16,880 --> 00:07:19,600 Speaker 3: whatever you would like to increase your monthly or weekly income, 168 00:07:20,040 --> 00:07:23,200 Speaker 3: or you are able to reinvest your dividends into your 169 00:07:23,240 --> 00:07:27,760 Speaker 3: share portfolio. And that's what creates compounding interest. So over time, 170 00:07:27,840 --> 00:07:31,080 Speaker 3: if you're consistently reinvesting the amount of money that your 171 00:07:31,120 --> 00:07:34,280 Speaker 3: shares make for you back into the share market, your 172 00:07:34,320 --> 00:07:38,240 Speaker 3: share portfolio grows without you always having to contribute more 173 00:07:38,280 --> 00:07:39,080 Speaker 3: and more income. 174 00:07:39,560 --> 00:07:43,600 Speaker 1: So compound interest is kind of like interest on your interest. 175 00:07:43,920 --> 00:07:47,560 Speaker 3: Yeah, so compound interest is the interest your interest earns 176 00:07:47,600 --> 00:07:48,920 Speaker 3: over a period of time. 177 00:07:49,160 --> 00:07:51,120 Speaker 1: Right, And so combound interest is a good thing. 178 00:07:51,240 --> 00:07:52,240 Speaker 3: It's a brilliant thing. 179 00:07:52,400 --> 00:07:55,280 Speaker 1: Great, So we know the basics of investing. Now let's 180 00:07:55,280 --> 00:07:58,160 Speaker 1: push a little deeper in discussions of investing. I hear 181 00:07:58,200 --> 00:08:01,520 Speaker 1: the word diversification thrown around lot. What on earth is 182 00:08:01,520 --> 00:08:04,920 Speaker 1: everyone talking about and why is diversifying my investments such 183 00:08:04,920 --> 00:08:05,400 Speaker 1: a good thing. 184 00:08:05,640 --> 00:08:09,520 Speaker 3: So diversification, which we briefly touched on just before, is 185 00:08:09,640 --> 00:08:12,440 Speaker 3: essentially what we're going to call a risk management strategy. 186 00:08:12,520 --> 00:08:16,000 Speaker 3: So risk management strategy is where you're essentially not putting 187 00:08:16,040 --> 00:08:19,840 Speaker 3: all your eggs in one basket. It means you're picking 188 00:08:19,880 --> 00:08:23,160 Speaker 3: a variety of different investments. So instead of just going 189 00:08:23,160 --> 00:08:26,360 Speaker 3: and buying Telstra shares and owning shares in Telstra and 190 00:08:26,520 --> 00:08:29,120 Speaker 3: if the performance of that company doesn't do so well, 191 00:08:29,240 --> 00:08:32,120 Speaker 3: your share portfolio doesn't do so well. It means picking 192 00:08:32,160 --> 00:08:35,640 Speaker 3: a range of different investments from different asset classes, so 193 00:08:35,679 --> 00:08:38,559 Speaker 3: that if one company isn't performing, that should be okay 194 00:08:38,600 --> 00:08:41,920 Speaker 3: because that all evens out and over time your investment 195 00:08:41,960 --> 00:08:43,079 Speaker 3: portfolio will increase. 196 00:08:43,280 --> 00:08:45,880 Speaker 1: Yeah, so we should all be trying to diversify it absolutely. 197 00:08:46,520 --> 00:08:48,920 Speaker 3: I wouldn't want to carry all my eggs in one basket, 198 00:08:49,000 --> 00:08:52,240 Speaker 3: and as much as you do, yeah, look really heavy basket. 199 00:08:52,320 --> 00:08:55,120 Speaker 3: But also it just means that we are spread out 200 00:08:55,120 --> 00:08:57,960 Speaker 3: in different types of investments, and it means that we 201 00:08:58,040 --> 00:09:01,640 Speaker 3: are less likely to, you know, have really big fluctuations 202 00:09:01,679 --> 00:09:03,120 Speaker 3: in our portfolio value. 203 00:09:03,360 --> 00:09:07,080 Speaker 1: Okay, so what about ETFs? Then what is an ETF? 204 00:09:07,160 --> 00:09:08,840 Speaker 1: I mean, I tried to google it and every time 205 00:09:08,880 --> 00:09:11,520 Speaker 1: I searched it it made ETF sound like the most 206 00:09:11,559 --> 00:09:13,880 Speaker 1: complicated thing on the planet. Is that the case? 207 00:09:14,480 --> 00:09:17,560 Speaker 3: Absolutely? No, No, not at all. So an ETF is 208 00:09:17,600 --> 00:09:21,800 Speaker 3: actually super simple. And ETF means an exchange traded fund, 209 00:09:22,160 --> 00:09:25,160 Speaker 3: which I don't think means that much to any right now. 210 00:09:25,640 --> 00:09:27,920 Speaker 3: But what you can do. You can think of an 211 00:09:27,960 --> 00:09:31,800 Speaker 3: ETF as a basket of investments. So each ETF purchases 212 00:09:31,840 --> 00:09:36,239 Speaker 3: a range of different assets like shares, bonds, commodities, different currencies, 213 00:09:36,559 --> 00:09:38,800 Speaker 3: and their aim is to match the performance of a 214 00:09:38,840 --> 00:09:43,440 Speaker 3: particular market index or a benchmark. So, for example, you 215 00:09:43,480 --> 00:09:46,400 Speaker 3: could have an ETF and purchase one that aims to 216 00:09:46,480 --> 00:09:49,680 Speaker 3: track the top two hundred stocks or shares in Australia, 217 00:09:50,040 --> 00:09:52,520 Speaker 3: and by investing those with an ETF, it means you 218 00:09:52,600 --> 00:09:56,200 Speaker 3: get a wide variety of diversification without you individually having 219 00:09:56,280 --> 00:09:59,520 Speaker 3: to go and purchase a wide variety of different stocks. 220 00:10:00,000 --> 00:10:02,280 Speaker 3: Also means you can get into the share market with 221 00:10:02,400 --> 00:10:06,680 Speaker 3: less income, because to have a well diversified portfolio where 222 00:10:06,760 --> 00:10:09,600 Speaker 3: you have individual stocks, you actually need to have a 223 00:10:09,640 --> 00:10:12,760 Speaker 3: lot of cash to invest, whereas an ETF means you 224 00:10:12,800 --> 00:10:16,079 Speaker 3: can invest with less money but still have that level 225 00:10:16,080 --> 00:10:19,120 Speaker 3: of diversification that we would recommend you have anyway. 226 00:10:19,360 --> 00:10:20,760 Speaker 1: So an ETF is your friend. 227 00:10:21,000 --> 00:10:22,760 Speaker 3: Absolutely, an ETF is your friend. 228 00:10:22,920 --> 00:10:25,360 Speaker 1: Another one that I couldn't quite get a straight answer 229 00:10:25,400 --> 00:10:29,680 Speaker 1: on with a Google search, what is a managed investment product? 230 00:10:29,960 --> 00:10:32,160 Speaker 1: Can I go to a company like say MLC and 231 00:10:32,200 --> 00:10:33,880 Speaker 1: have them decide where I shall put my money? 232 00:10:34,040 --> 00:10:38,120 Speaker 3: So an ETF is actually a managed investment product? Ah, 233 00:10:38,160 --> 00:10:41,160 Speaker 3: So a managed investment is actually known often as a 234 00:10:41,200 --> 00:10:44,520 Speaker 3: pulled investment. It's where your money as an investor gets 235 00:10:44,520 --> 00:10:46,960 Speaker 3: pulled together with the money of lots of other investors, 236 00:10:47,280 --> 00:10:51,120 Speaker 3: and it's managed by some investment experts, like a fund manager, 237 00:10:51,480 --> 00:10:54,760 Speaker 3: and they buy and sell investments on your behalf in 238 00:10:54,840 --> 00:10:57,559 Speaker 3: a big group. So instead of you know, you having 239 00:10:57,600 --> 00:11:01,560 Speaker 3: an individual stockbroker who is quite ex expensive, you're dividing 240 00:11:01,559 --> 00:11:03,760 Speaker 3: that cost up with a really big group of people. 241 00:11:03,840 --> 00:11:06,360 Speaker 3: Because the bigger your fund is, the more power it 242 00:11:06,400 --> 00:11:08,600 Speaker 3: has and the less money you're going to have to pay. 243 00:11:08,679 --> 00:11:11,240 Speaker 3: So you're essentially getting a fund manager without having to 244 00:11:11,280 --> 00:11:12,080 Speaker 3: pay them directly. 245 00:11:12,160 --> 00:11:14,600 Speaker 1: Vijori, I'm going to be completely honest with you, I'm 246 00:11:14,720 --> 00:11:15,920 Speaker 1: still very confused. 247 00:11:16,120 --> 00:11:19,320 Speaker 3: I thought you might be. I could see it. So 248 00:11:19,679 --> 00:11:22,480 Speaker 3: a managed fund, as I said, pulls all your money 249 00:11:22,480 --> 00:11:26,400 Speaker 3: together with other investors, and then a fund manager makes 250 00:11:26,440 --> 00:11:30,079 Speaker 3: all the decisions for that investment portfolio. So an example 251 00:11:30,120 --> 00:11:33,080 Speaker 3: of that is, say we have a thousand investors and 252 00:11:33,120 --> 00:11:35,800 Speaker 3: they decide to invest ten thousand dollars each into a 253 00:11:35,800 --> 00:11:38,760 Speaker 3: bank account together, and then in return they'll get ten 254 00:11:38,800 --> 00:11:42,560 Speaker 3: thousand units each, and that is one dollar then would 255 00:11:42,600 --> 00:11:45,640 Speaker 3: buy you one unit. So the money that's in the fund, 256 00:11:45,720 --> 00:11:48,720 Speaker 3: that professional fund manager makes all the decisions on which 257 00:11:48,760 --> 00:11:52,040 Speaker 3: stocks there are and how that works, and invests the money, 258 00:11:52,360 --> 00:11:55,360 Speaker 3: and if the investments do well, then the unit price 259 00:11:55,440 --> 00:11:56,720 Speaker 3: that you own will increase. 260 00:11:57,280 --> 00:11:59,920 Speaker 1: So who are these one thousand people? Are they strangers? 261 00:12:00,000 --> 00:12:00,920 Speaker 1: How do they group together? 262 00:12:01,120 --> 00:12:01,360 Speaker 4: Yeah? 263 00:12:01,440 --> 00:12:05,360 Speaker 3: Like they're true. Yes, they're not your friends. They are 264 00:12:05,440 --> 00:12:08,160 Speaker 3: just people who are in similar situations to you, who 265 00:12:08,200 --> 00:12:10,640 Speaker 3: I would assume have the same risk profile as you. 266 00:12:10,880 --> 00:12:13,319 Speaker 3: And someone picks you up and says, all right, no problems, 267 00:12:13,360 --> 00:12:16,600 Speaker 3: here's the ETF that you suit best, and that will 268 00:12:16,600 --> 00:12:18,600 Speaker 3: be really similar for the other people in the fund. 269 00:12:18,880 --> 00:12:21,120 Speaker 3: So they might be investors. They also only have ten 270 00:12:21,160 --> 00:12:23,760 Speaker 3: thousand dollars to invest, and they're you know, popping it 271 00:12:23,800 --> 00:12:26,280 Speaker 3: in all equally. And you know, we go from there 272 00:12:26,600 --> 00:12:28,800 Speaker 3: in saying that it doesn't have to be equal. So 273 00:12:28,840 --> 00:12:31,199 Speaker 3: you could go in with five thousand dollars and someone 274 00:12:31,200 --> 00:12:34,079 Speaker 3: else could go in with fifty thousand dollars. The amount 275 00:12:34,160 --> 00:12:37,480 Speaker 3: that that changes, or what that changes is just how 276 00:12:37,520 --> 00:12:40,280 Speaker 3: many units in that you own. So with your one 277 00:12:40,280 --> 00:12:42,280 Speaker 3: thousand dollars, you would own a thousand shares, and with 278 00:12:42,320 --> 00:12:45,120 Speaker 3: their fifty thousand they would own fifty thousand. Does that 279 00:12:45,200 --> 00:12:45,560 Speaker 3: make sense? 280 00:12:45,600 --> 00:12:45,680 Speaker 4: Yes? 281 00:12:45,880 --> 00:12:48,560 Speaker 1: I think so, Victoria. I saw on the Facebook group 282 00:12:48,600 --> 00:12:51,520 Speaker 1: that you said ETFs aren't for everybody. Why aren't they 283 00:12:51,520 --> 00:12:52,760 Speaker 1: your only investment option? 284 00:12:53,200 --> 00:12:55,800 Speaker 3: So I think it's really important that when we talk 285 00:12:55,800 --> 00:12:59,480 Speaker 3: about ETFs we understand the proper structure of them. So 286 00:13:00,679 --> 00:13:04,120 Speaker 3: is a separately managed fund. So it is a fund 287 00:13:04,200 --> 00:13:06,920 Speaker 3: that you put your money into and then you own 288 00:13:07,640 --> 00:13:11,800 Speaker 3: units in that fund. You do not own those shares directly. 289 00:13:12,160 --> 00:13:14,720 Speaker 3: So you might own a unit in this fund and 290 00:13:14,760 --> 00:13:17,320 Speaker 3: that fund owns A and Z, but you do not 291 00:13:17,360 --> 00:13:20,319 Speaker 3: own A and Z shares directly. So for me, as 292 00:13:20,360 --> 00:13:23,360 Speaker 3: a financial advisor, I really want to mitigate risk, right, 293 00:13:23,400 --> 00:13:25,240 Speaker 3: Like it's my job to put you in the best 294 00:13:25,280 --> 00:13:29,040 Speaker 3: possible position. And whilst an ETF is a really brilliant 295 00:13:29,160 --> 00:13:31,800 Speaker 3: choice for someone who doesn't have one hundred thousand dollars 296 00:13:31,840 --> 00:13:35,360 Speaker 3: of capital, it's also something where I say, look, there's 297 00:13:35,360 --> 00:13:37,840 Speaker 3: a bit of risk there as well, because by having 298 00:13:37,880 --> 00:13:41,080 Speaker 3: a fund manager making decisions for you, you could wake up 299 00:13:41,120 --> 00:13:43,559 Speaker 3: tomorrow and your shares in A and Z have been 300 00:13:43,600 --> 00:13:46,439 Speaker 3: sold down and maybe that's not something that you wanted. 301 00:13:46,960 --> 00:13:50,679 Speaker 3: So for me and ETF is a really great entry 302 00:13:50,720 --> 00:13:53,760 Speaker 3: point to the investment market where you can start building 303 00:13:53,760 --> 00:13:56,240 Speaker 3: a portfolio up, and once you've built it up to 304 00:13:56,320 --> 00:13:59,920 Speaker 3: a certain level, we then start talking about buying shares directly, 305 00:14:00,240 --> 00:14:02,319 Speaker 3: so that you and Annabelle would own that A and 306 00:14:02,440 --> 00:14:05,160 Speaker 3: Z share instead of a fund owning it on your 307 00:14:05,200 --> 00:14:07,960 Speaker 3: behalf and just giving you part of the profit. You 308 00:14:08,000 --> 00:14:10,960 Speaker 3: would get the profit directly. Does that make sense, Yeah, 309 00:14:10,960 --> 00:14:13,720 Speaker 3: it does. So I think that ETFs are a really 310 00:14:13,760 --> 00:14:16,400 Speaker 3: great thing to start playing with. It's a bit like raise, 311 00:14:16,480 --> 00:14:20,680 Speaker 3: so raise owns atfs and the different portfolios will be 312 00:14:20,720 --> 00:14:23,640 Speaker 3: dependent upon what your tolerance to risk is. And I 313 00:14:23,680 --> 00:14:26,640 Speaker 3: think that, you know, great introduction to the market, But 314 00:14:26,760 --> 00:14:29,160 Speaker 3: I also don't want people to think the ETFs are 315 00:14:29,200 --> 00:14:31,880 Speaker 3: the only way you invest in the market, because if 316 00:14:31,880 --> 00:14:35,160 Speaker 3: you have enough capital, you can be buying shares directly 317 00:14:35,200 --> 00:14:37,360 Speaker 3: and you can be the personal owner of you know, 318 00:14:37,640 --> 00:14:39,920 Speaker 3: those Telstra shares or those A and Z shares. 319 00:14:40,000 --> 00:14:41,560 Speaker 1: So it's a great way to like dip your toes in, 320 00:14:41,640 --> 00:14:44,080 Speaker 1: But the main end goal is to own your own 321 00:14:44,120 --> 00:14:44,880 Speaker 1: shares directly. 322 00:14:45,080 --> 00:14:48,240 Speaker 3: Yes, and once we're talking about investment portfolios over one 323 00:14:48,280 --> 00:14:51,040 Speaker 3: hundred thousand dollars, which sounds crazy to people, but because 324 00:14:51,040 --> 00:14:52,920 Speaker 3: you guys are young, that's going to happen at some 325 00:14:53,000 --> 00:14:56,080 Speaker 3: point if you invest now, once it's over one hundred 326 00:14:56,080 --> 00:14:58,520 Speaker 3: thousand dollars, we really need to be looking at owning 327 00:14:58,560 --> 00:15:01,920 Speaker 3: things directly because one owning directly means you're not paying 328 00:15:01,920 --> 00:15:04,600 Speaker 3: a fund manager to manage your funds for you. But 329 00:15:04,680 --> 00:15:08,440 Speaker 3: then also you don't have the risk associated with somebody 330 00:15:08,480 --> 00:15:10,760 Speaker 3: selling down an asset that you might not want to lose. 331 00:15:11,160 --> 00:15:12,680 Speaker 1: Yeah, so you're in power. 332 00:15:13,000 --> 00:15:15,800 Speaker 3: Yeah, you've got the power once you own direct shares, 333 00:15:15,800 --> 00:15:18,160 Speaker 3: whereas an ETF carries a little bit of risk because 334 00:15:18,160 --> 00:15:20,400 Speaker 3: someone else is making the decisions on your behalf. 335 00:15:20,560 --> 00:15:22,960 Speaker 1: Okay, so tell me if I've got this right. As 336 00:15:22,960 --> 00:15:25,720 Speaker 1: a bit of a recap compound interest is a fabulous 337 00:15:25,760 --> 00:15:28,960 Speaker 1: thing because we make more money. Diversification is great because 338 00:15:28,960 --> 00:15:32,120 Speaker 1: we're mitigating risk, and an ETF means we own shares 339 00:15:32,160 --> 00:15:34,280 Speaker 1: but not directly, and it can be a great intro 340 00:15:34,440 --> 00:15:37,160 Speaker 1: into the market. I think I'm finally starting to get 341 00:15:37,200 --> 00:15:37,840 Speaker 1: a handle on this. 342 00:15:38,200 --> 00:15:39,120 Speaker 3: I think you are as well. 343 00:15:39,160 --> 00:15:47,280 Speaker 1: Goodbye then, Hi there, you've called the shoes on the 344 00:15:47,280 --> 00:15:49,600 Speaker 1: Money Hotline. Do you have a money problem you want 345 00:15:49,600 --> 00:15:51,880 Speaker 1: help solving. Do you have a money dilemma you just 346 00:15:51,880 --> 00:15:54,800 Speaker 1: want to chat about. Victoria is here to help. Each 347 00:15:54,880 --> 00:15:57,120 Speaker 1: week we'll be playing your hotline questions to help make 348 00:15:57,200 --> 00:15:59,200 Speaker 1: sense of the money mess you may have found yourself in. 349 00:15:59,480 --> 00:16:02,160 Speaker 1: Give us all on four three, five, two nine three 350 00:16:02,280 --> 00:16:08,280 Speaker 1: double eighty six and you might find yourself on the show. 351 00:16:13,680 --> 00:16:18,800 Speaker 5: Hi there, I have a question about investing. I have 352 00:16:19,040 --> 00:16:22,560 Speaker 5: absolutely no idea where to start. In terms of investing. 353 00:16:22,960 --> 00:16:26,080 Speaker 5: I've set up my super account of research that I have, 354 00:16:26,800 --> 00:16:29,400 Speaker 5: you know, consulted people, and I feel like my super 355 00:16:29,560 --> 00:16:33,120 Speaker 5: is really well set up and researched. However, for my 356 00:16:33,160 --> 00:16:36,280 Speaker 5: long term gain obviously, but in terms of short term gain, 357 00:16:36,360 --> 00:16:39,440 Speaker 5: maybe for the next five to ten years. In terms 358 00:16:39,440 --> 00:16:42,520 Speaker 5: of investing, I have absolutely no idea where to start, 359 00:16:42,520 --> 00:16:45,160 Speaker 5: and I would really love to help. You know, I'm 360 00:16:45,200 --> 00:16:47,080 Speaker 5: quite scared, to be honest, to put money into it 361 00:16:47,560 --> 00:16:48,920 Speaker 5: that I want to learn and I want to give 362 00:16:48,920 --> 00:16:51,600 Speaker 5: it a go, So any help around anything investing would 363 00:16:51,640 --> 00:16:53,000 Speaker 5: be really beneficial. 364 00:16:53,080 --> 00:16:56,760 Speaker 1: Thanks Victoria. I've actually seen this a lot in the 365 00:16:56,800 --> 00:17:00,320 Speaker 1: Facebook group. Where do you start with investing? How much 366 00:17:00,360 --> 00:17:02,880 Speaker 1: money do you need? Do you need one lump sum 367 00:17:03,000 --> 00:17:05,159 Speaker 1: or is it more like a series of deposits? 368 00:17:05,600 --> 00:17:08,120 Speaker 3: So you're right, this is something that comes up all 369 00:17:08,200 --> 00:17:10,919 Speaker 3: the time, and it's probably the biggest question I get. 370 00:17:11,080 --> 00:17:14,280 Speaker 3: Where do I start with investment? This is a really 371 00:17:14,320 --> 00:17:18,280 Speaker 3: hard question to answer because everybody is so different, so 372 00:17:18,440 --> 00:17:21,640 Speaker 3: investment is a really personal thing. But I would love 373 00:17:21,680 --> 00:17:23,680 Speaker 3: to be able to give you guys a little bit 374 00:17:23,680 --> 00:17:26,200 Speaker 3: of direction in terms of where you can actually start. 375 00:17:26,280 --> 00:17:29,000 Speaker 3: So there's a few places. So you can start with 376 00:17:29,080 --> 00:17:32,720 Speaker 3: investment platforms like rais or Spaceship or you know micro 377 00:17:32,840 --> 00:17:37,720 Speaker 3: investment platforms that start you off in an investment platform 378 00:17:37,760 --> 00:17:39,919 Speaker 3: and you can start tracking the market and see what 379 00:17:39,960 --> 00:17:43,439 Speaker 3: it does and understand risk profiles and understand what's going on. 380 00:17:43,720 --> 00:17:46,679 Speaker 3: They're really really great resources. You can go to the 381 00:17:46,720 --> 00:17:50,640 Speaker 3: ASX website. At the moment, they've just released the ASX 382 00:17:50,720 --> 00:17:53,440 Speaker 3: trading game. It's a bit like Monopoly, but it's online 383 00:17:53,480 --> 00:17:56,760 Speaker 3: and you can play with shares with fake money, and 384 00:17:56,960 --> 00:17:58,879 Speaker 3: you know, see how you go for a little while 385 00:17:58,920 --> 00:18:01,720 Speaker 3: doing it on your own. I mentioned in our last 386 00:18:01,760 --> 00:18:04,280 Speaker 3: episode a number of different platforms, and now I'm not 387 00:18:04,280 --> 00:18:08,000 Speaker 3: saying I recommend them, but a number of different reputable 388 00:18:08,040 --> 00:18:12,480 Speaker 3: platforms that you're able to buy shares directly through. And 389 00:18:12,520 --> 00:18:15,320 Speaker 3: then you're also able to see a financial advisor. And 390 00:18:15,320 --> 00:18:18,480 Speaker 3: whilst I think that that's a really intimidating response, it's 391 00:18:18,520 --> 00:18:21,119 Speaker 3: probably the best one, to be honest. And that's not 392 00:18:21,160 --> 00:18:23,320 Speaker 3: because I'm a financial advisor and I want you guys 393 00:18:23,359 --> 00:18:26,600 Speaker 3: all to come and see me, but yeah, please do. Yeah, 394 00:18:26,680 --> 00:18:30,840 Speaker 3: shameless self promotion, but seeing a financial advisor means you're 395 00:18:30,880 --> 00:18:33,879 Speaker 3: going to get a customized strategy that suits the goals 396 00:18:33,920 --> 00:18:36,280 Speaker 3: you're trying to achieve and puts you in the best 397 00:18:36,320 --> 00:18:39,520 Speaker 3: possible position to achieve all of those goals and create 398 00:18:39,560 --> 00:18:42,280 Speaker 3: wealth long term. So the listener that we were just 399 00:18:42,359 --> 00:18:46,480 Speaker 3: listening to before mentioned that she wanted some short term 400 00:18:46,520 --> 00:18:47,640 Speaker 3: investment topics. 401 00:18:47,800 --> 00:18:48,280 Speaker 1: Yes you did. 402 00:18:48,359 --> 00:18:50,960 Speaker 3: Yeah, I don't recommend short term investment. If you are 403 00:18:50,960 --> 00:18:53,520 Speaker 3: looking to invest money for five years, it's just simply 404 00:18:53,560 --> 00:18:55,960 Speaker 3: not enough. You need to be looking at investing for 405 00:18:56,040 --> 00:18:58,560 Speaker 3: the long term. She sounded really on top of her. 406 00:18:58,600 --> 00:19:00,840 Speaker 3: Super sounded really on top you know what she'd been 407 00:19:00,880 --> 00:19:03,440 Speaker 3: looking at. But investment is something that we are looking 408 00:19:03,480 --> 00:19:05,960 Speaker 3: at for the long term, not for the short term. 409 00:19:05,960 --> 00:19:09,240 Speaker 3: If you're looking to invest money for anything under five years, 410 00:19:09,320 --> 00:19:12,320 Speaker 3: I'd honestly be really hesitant to expose it to the 411 00:19:12,359 --> 00:19:15,480 Speaker 3: share market because it's just too volatile in that short 412 00:19:15,520 --> 00:19:20,200 Speaker 3: period of time. However, over twenty thirty years, the volatility 413 00:19:20,280 --> 00:19:23,200 Speaker 3: of the share market, which means how much it fluctuates, 414 00:19:23,640 --> 00:19:26,160 Speaker 3: is far far less, And I don't think there's been 415 00:19:26,280 --> 00:19:29,240 Speaker 3: a period of time in the Australian share market history 416 00:19:29,400 --> 00:19:32,119 Speaker 3: where we have had a negative return over a thirty 417 00:19:32,240 --> 00:19:36,040 Speaker 3: year period. So for me, long term investment is where 418 00:19:36,080 --> 00:19:39,120 Speaker 3: we're at. It's not about investing for five or six years. 419 00:19:39,160 --> 00:19:42,040 Speaker 3: It's about creating a strategy that you can have forever. 420 00:19:42,320 --> 00:19:45,240 Speaker 1: So if I had like fifty grand in savings, not 421 00:19:45,320 --> 00:19:48,520 Speaker 1: that I do, sad, that's not enough. I need to 422 00:19:48,520 --> 00:19:51,679 Speaker 1: be able to make it a long term consistent lifestyle 423 00:19:51,760 --> 00:19:52,640 Speaker 1: mindset kind. 424 00:19:52,560 --> 00:19:57,000 Speaker 3: Of thing lifestyle mindset is absolutely correct. However, you don't 425 00:19:57,040 --> 00:19:59,960 Speaker 3: need fifty thousand dollars in savings to start a sharepot fall. 426 00:20:00,480 --> 00:20:03,600 Speaker 3: What you need is good savings habits, and you need 427 00:20:03,640 --> 00:20:06,239 Speaker 3: to be able to contribute to your investment plan on 428 00:20:06,280 --> 00:20:10,440 Speaker 3: a regular basis. So in the last episode, I explained 429 00:20:10,520 --> 00:20:13,640 Speaker 3: that to create wealth, you needed to spend less than 430 00:20:13,680 --> 00:20:17,240 Speaker 3: you earn and you need to consistently invest over the 431 00:20:17,320 --> 00:20:19,520 Speaker 3: long term. And to be able to do that, you 432 00:20:19,560 --> 00:20:22,160 Speaker 3: don't need a massive amount of capital to start. It's nice, 433 00:20:22,400 --> 00:20:24,680 Speaker 3: it's a great place to begin, but if you don't 434 00:20:24,720 --> 00:20:27,280 Speaker 3: have that, work out how much per month you're going 435 00:20:27,280 --> 00:20:30,080 Speaker 3: to be able to invest, whether that's three hundred dollars 436 00:20:30,080 --> 00:20:32,320 Speaker 3: five hundred dollars, are you able to invest one thousand 437 00:20:32,320 --> 00:20:34,840 Speaker 3: dollars a month? Work out a way that you can 438 00:20:35,240 --> 00:20:38,080 Speaker 3: test yourself on that. So I'm not saying commit yourself 439 00:20:38,080 --> 00:20:40,600 Speaker 3: to something that you can't maintain, but maybe over the 440 00:20:40,600 --> 00:20:42,439 Speaker 3: next three months, work out if you can put that 441 00:20:42,480 --> 00:20:45,320 Speaker 3: five hundred dollars a month aside and you don't miss 442 00:20:45,359 --> 00:20:47,919 Speaker 3: it too much, then work out how am I going 443 00:20:48,000 --> 00:20:49,360 Speaker 3: to do this? And that's when you need to talk 444 00:20:49,400 --> 00:20:52,560 Speaker 3: to a financial advisor. To create that strategy that is 445 00:20:52,640 --> 00:20:54,760 Speaker 3: going to endure and make sure that you are achieving 446 00:20:54,840 --> 00:20:55,520 Speaker 3: those goals. 447 00:20:55,760 --> 00:20:57,800 Speaker 1: Right, let's roll into our second question. 448 00:21:01,080 --> 00:21:03,280 Speaker 6: Hi, Victorian and Annabel, I just have a quick question 449 00:21:03,400 --> 00:21:05,840 Speaker 6: for you. What is Raise and why does everyone in 450 00:21:05,840 --> 00:21:07,600 Speaker 6: the Facebook group always talk about it? 451 00:21:07,800 --> 00:21:08,240 Speaker 3: Thanks? 452 00:21:09,280 --> 00:21:12,520 Speaker 1: Victoria? What's Raised? Can you give us a quick summary? 453 00:21:12,840 --> 00:21:12,919 Speaker 4: So? 454 00:21:13,160 --> 00:21:16,520 Speaker 3: Raises an investment product. It is something that you know, 455 00:21:16,680 --> 00:21:18,679 Speaker 3: gets a lot of exposure through the She's on the 456 00:21:18,680 --> 00:21:20,919 Speaker 3: Money community because I think a lot of people in 457 00:21:20,960 --> 00:21:23,359 Speaker 3: the group are already invested in it or see it 458 00:21:23,400 --> 00:21:26,520 Speaker 3: as a really accessible way to begin their investment journey, 459 00:21:26,600 --> 00:21:30,440 Speaker 3: which it absolutely is. However, it is just one investment 460 00:21:30,520 --> 00:21:33,480 Speaker 3: product in a sea of many. So as much as 461 00:21:33,480 --> 00:21:36,359 Speaker 3: it's got more exposure, I don't think Raise is, you know, 462 00:21:36,440 --> 00:21:39,960 Speaker 3: necessarily the perfect tool for everybody. It's great personally, I 463 00:21:40,119 --> 00:21:43,399 Speaker 3: have it in addition to my actual share portfolio because 464 00:21:43,400 --> 00:21:45,200 Speaker 3: I really like it. I think it's a really great 465 00:21:45,200 --> 00:21:48,160 Speaker 3: little roundup tool. I invest a small amount per month 466 00:21:48,200 --> 00:21:50,520 Speaker 3: so I can see it grow, But once I reach 467 00:21:50,600 --> 00:21:53,959 Speaker 3: a certain number, I then sell down my portfolio and 468 00:21:54,000 --> 00:21:57,600 Speaker 3: shift that money into my wider portfolio because I have 469 00:21:57,680 --> 00:22:00,240 Speaker 3: lower fees in there. Okay, So we've had a lot 470 00:22:00,280 --> 00:22:03,119 Speaker 3: of conversations this week in the Facebook group about the 471 00:22:03,119 --> 00:22:06,480 Speaker 3: fees on rays being exorbitant at the end of the day, yes, 472 00:22:06,560 --> 00:22:08,760 Speaker 3: they are expensive if you only have fifty or one 473 00:22:08,840 --> 00:22:11,440 Speaker 3: hundred dollars in the account. But the purpose of investment 474 00:22:11,640 --> 00:22:15,040 Speaker 3: is to consistently invest over the long term, and if 475 00:22:15,080 --> 00:22:18,680 Speaker 3: you are consistently investing, that fee becomes lower and lower 476 00:22:18,680 --> 00:22:21,000 Speaker 3: and lower. So a five dollar fee on a fifty 477 00:22:21,000 --> 00:22:23,720 Speaker 3: dollars investment sounds like a lot, But once you're looking 478 00:22:23,720 --> 00:22:25,720 Speaker 3: at you know, two or three or four thousand dollars 479 00:22:25,720 --> 00:22:29,000 Speaker 3: in your raise account, which is the ultimate goal, you know, 480 00:22:29,119 --> 00:22:32,360 Speaker 3: that fee kind of dissipates and becomes not as impactful 481 00:22:32,680 --> 00:22:35,160 Speaker 3: as it would be at the very beginning of your 482 00:22:35,160 --> 00:22:38,080 Speaker 3: investment journey. So I think it's really important to realize 483 00:22:38,119 --> 00:22:41,080 Speaker 3: that you know, with every investment product there will be fees, 484 00:22:41,560 --> 00:22:43,840 Speaker 3: and with every investment product it might not be the 485 00:22:43,920 --> 00:22:46,240 Speaker 3: right product for you. You really need to be reading 486 00:22:46,280 --> 00:22:49,880 Speaker 3: their product exclosure statements and understanding what that product does, 487 00:22:49,920 --> 00:22:55,040 Speaker 3: why it does it, and how it works. 488 00:22:55,280 --> 00:22:58,399 Speaker 6: Hi, guys, I'm just wondering if it's better off investing 489 00:22:58,880 --> 00:23:03,159 Speaker 6: your disposable income to a hedge fund account or to 490 00:23:03,200 --> 00:23:07,159 Speaker 6: set up a high interest earning saving account with a bank. 491 00:23:07,840 --> 00:23:09,560 Speaker 6: Loving the podcast, thank you so much. 492 00:23:10,760 --> 00:23:13,200 Speaker 1: All right, So what actually is a hedge fund? 493 00:23:13,440 --> 00:23:17,040 Speaker 3: So hedge fund uses more than one type of investment strategy, 494 00:23:17,200 --> 00:23:20,640 Speaker 3: so it's kind of like diversifying, but not just in stocks, 495 00:23:20,680 --> 00:23:23,760 Speaker 3: in the strategy that you use to invest in the stocks. 496 00:23:24,480 --> 00:23:27,080 Speaker 3: It's a bit like a managed fund. However, the scope 497 00:23:27,119 --> 00:23:30,640 Speaker 3: is a lot broader and they often invest in private businesses. 498 00:23:31,240 --> 00:23:34,240 Speaker 3: So essentially, in my experience, they are for higher network 499 00:23:34,359 --> 00:23:36,960 Speaker 3: people who are prepared to pay a fair bit more 500 00:23:37,119 --> 00:23:40,439 Speaker 3: money to invest their money in investments that other people 501 00:23:40,440 --> 00:23:43,439 Speaker 3: aren't invested in. They tend to take up quite a 502 00:23:43,440 --> 00:23:45,520 Speaker 3: lot of fees, so they tend to take on quite 503 00:23:45,560 --> 00:23:47,720 Speaker 3: a lot of risk to justify the fees that they have. 504 00:23:48,119 --> 00:23:50,800 Speaker 3: And generally these fees are anywhere between two and four 505 00:23:50,840 --> 00:23:53,400 Speaker 3: percent of the funds that you have in that account, 506 00:23:53,560 --> 00:23:55,800 Speaker 3: which is actually quite a high investment fee. So just 507 00:23:55,880 --> 00:23:58,919 Speaker 3: to normalize that a little bit, average investment fees should 508 00:23:58,920 --> 00:24:02,000 Speaker 3: be under one percent if you're paying investment. 509 00:24:01,600 --> 00:24:04,120 Speaker 1: Fees, and what are the hedge fund fees. 510 00:24:04,200 --> 00:24:06,959 Speaker 3: So they could be anywhere between two and four percent? Okay, 511 00:24:07,040 --> 00:24:08,800 Speaker 3: so there are a lot more than average. You know 512 00:24:08,840 --> 00:24:11,639 Speaker 3: your ETF or your direct managed fund, or you know 513 00:24:11,680 --> 00:24:14,080 Speaker 3: what you're working on with your financial advisor. 514 00:24:14,440 --> 00:24:17,320 Speaker 1: So you said the term diversification before. Yes, that's a 515 00:24:17,320 --> 00:24:17,920 Speaker 1: good thing. 516 00:24:17,800 --> 00:24:21,520 Speaker 3: Right, Diversification is really good, and that's actually what hedging means. 517 00:24:21,720 --> 00:24:27,040 Speaker 3: So hedging means protecting against risk. However, a hedge fund 518 00:24:27,760 --> 00:24:30,080 Speaker 3: is a lot, in my experience, is a lot more 519 00:24:30,200 --> 00:24:32,720 Speaker 3: risky than you know, an ETF or something that is 520 00:24:32,800 --> 00:24:36,280 Speaker 3: quite vanilla. Hedge funds I probably wouldn't be playing with 521 00:24:36,359 --> 00:24:39,280 Speaker 3: if they're your first investment or you know, you're first 522 00:24:39,280 --> 00:24:41,880 Speaker 3: getting into the market. But I think that it's really 523 00:24:41,920 --> 00:24:45,119 Speaker 3: important to understand what they are, how they work, and 524 00:24:45,320 --> 00:24:46,760 Speaker 3: you know when you might be using them. 525 00:24:47,200 --> 00:24:49,440 Speaker 1: So if you're a high net wealth client. 526 00:24:49,760 --> 00:24:52,240 Speaker 3: Yes, but also if you've got the risk profile for it, 527 00:24:52,359 --> 00:24:54,720 Speaker 3: so you know, you could be a really conservative investor 528 00:24:54,760 --> 00:24:56,560 Speaker 3: and a hedge fund might not be the right option 529 00:24:56,640 --> 00:24:59,840 Speaker 3: for you, Whereas if you have you know the capacity 530 00:24:59,880 --> 00:25:01,640 Speaker 3: and and the want to take on a lot more risk, 531 00:25:01,720 --> 00:25:03,560 Speaker 3: a hedge fund might be a place that you want 532 00:25:03,600 --> 00:25:07,280 Speaker 3: to start investing. It's all about understanding your risk profile. Again, 533 00:25:07,320 --> 00:25:10,159 Speaker 3: I probably sound like a broken record here, but understanding 534 00:25:10,160 --> 00:25:12,879 Speaker 3: your risk profile is the most important part of investment 535 00:25:13,040 --> 00:25:15,239 Speaker 3: because as boring as this sounds, and as much as 536 00:25:15,280 --> 00:25:17,040 Speaker 3: a lot of people laugh at me when I say 537 00:25:17,080 --> 00:25:19,439 Speaker 3: this as a financial advisor, I just want you to 538 00:25:19,440 --> 00:25:21,679 Speaker 3: be able to sleep at night, and that means not 539 00:25:21,840 --> 00:25:24,159 Speaker 3: stressing every minute of the day. And you know when 540 00:25:24,200 --> 00:25:26,679 Speaker 3: you go to bed about your investments, and if you are, 541 00:25:26,960 --> 00:25:28,879 Speaker 3: you really need to have a look at maybe changing 542 00:25:28,920 --> 00:25:32,359 Speaker 3: that strategy, becoming more educated on it, or talking to 543 00:25:32,359 --> 00:25:35,600 Speaker 3: your financial advisor about how to diversify even further to 544 00:25:35,640 --> 00:25:37,000 Speaker 3: make sure that that's not an issue for you. 545 00:25:38,880 --> 00:25:41,320 Speaker 1: Now it's time for our weekly money dary. My favorite 546 00:25:41,359 --> 00:25:45,720 Speaker 1: part today's money dary is from a twenty four year 547 00:25:45,720 --> 00:25:48,119 Speaker 1: old PhD student who isn't able to work because of 548 00:25:48,119 --> 00:25:49,600 Speaker 1: a demanding university course. 549 00:25:49,840 --> 00:25:52,800 Speaker 4: I'm living off a research stipend, so I kind of 550 00:25:52,840 --> 00:25:55,520 Speaker 4: get paid to study, which means I don't have much 551 00:25:55,600 --> 00:25:58,080 Speaker 4: time to do actual work, and it means I have 552 00:25:58,119 --> 00:25:59,800 Speaker 4: to live off about thirty grand. 553 00:26:00,440 --> 00:26:02,480 Speaker 1: Okay, so we know twenty four and living off a 554 00:26:02,520 --> 00:26:05,360 Speaker 1: scholarship spends a bunch of time at university. But let's 555 00:26:05,359 --> 00:26:07,840 Speaker 1: hear the nitty gritty stuff. How much does she earn 556 00:26:07,920 --> 00:26:10,640 Speaker 1: and how much is sitting in her bank account right now. 557 00:26:10,720 --> 00:26:14,000 Speaker 4: I'm doing a PhD in psychology. It's actually twenty eight grand, 558 00:26:14,040 --> 00:26:15,760 Speaker 4: and then I do a little bit of teaching, so 559 00:26:16,680 --> 00:26:18,959 Speaker 4: pushes it up to thirty and I think thirty sounds 560 00:26:19,400 --> 00:26:22,159 Speaker 4: a lot more adult than twenty eight. For some reason, 561 00:26:22,160 --> 00:26:23,920 Speaker 4: that true grand makes a little bit of a difference. 562 00:26:24,200 --> 00:26:25,080 Speaker 3: I have about. 563 00:26:24,840 --> 00:26:27,479 Speaker 4: Seven grand, but that is only because I have been 564 00:26:27,520 --> 00:26:30,720 Speaker 4: living at home until very recently, so most of that 565 00:26:30,800 --> 00:26:33,520 Speaker 4: saving is not from what my life is like right now. 566 00:26:33,680 --> 00:26:35,560 Speaker 4: It's most of that saving is from when I was 567 00:26:35,560 --> 00:26:38,640 Speaker 4: having at home and was working but not didn't really 568 00:26:38,640 --> 00:26:40,720 Speaker 4: have any kind of expenses. So I moved out of 569 00:26:40,960 --> 00:26:44,639 Speaker 4: home about eight months ago and basically paying rent on 570 00:26:44,720 --> 00:26:47,760 Speaker 4: my income. I've really been struggling to save anything more 571 00:26:47,800 --> 00:26:49,040 Speaker 4: than like one hundred dollars a week. 572 00:26:49,080 --> 00:26:50,160 Speaker 3: Got fifty dollars a week. 573 00:26:50,520 --> 00:26:52,359 Speaker 1: So we know how twenty four and living off a 574 00:26:52,400 --> 00:26:55,480 Speaker 1: scholarship gets paid, But what exactly happens to that money 575 00:26:55,520 --> 00:26:57,440 Speaker 1: after it's deposited into her account? 576 00:26:57,520 --> 00:27:01,200 Speaker 4: So it comes in about every fortnight and each fortnite, 577 00:27:01,200 --> 00:27:05,080 Speaker 4: so it's about one tho sixty a fortnite, and then 578 00:27:05,240 --> 00:27:08,480 Speaker 4: I pay rent every month, and that the scholarship that 579 00:27:08,520 --> 00:27:11,119 Speaker 4: comes during that time goes all of it goes towards rent, 580 00:27:11,480 --> 00:27:13,280 Speaker 4: and then the pay before that kind of is what 581 00:27:13,320 --> 00:27:16,040 Speaker 4: I live off. So every month I get kind of 582 00:27:16,080 --> 00:27:19,359 Speaker 4: two paychecks and they're both the same, about one thousand 583 00:27:19,400 --> 00:27:22,280 Speaker 4: and sixty one goes the entire one goes to rent, 584 00:27:22,320 --> 00:27:22,720 Speaker 4: and then the. 585 00:27:22,680 --> 00:27:23,800 Speaker 1: Other one I live off. 586 00:27:23,880 --> 00:27:26,800 Speaker 4: And then in the introm when I'm teaching, I try 587 00:27:26,960 --> 00:27:29,280 Speaker 4: and save what I can with a little bit of 588 00:27:29,320 --> 00:27:32,280 Speaker 4: extra kind of money that comes in, which is probably 589 00:27:32,320 --> 00:27:36,200 Speaker 4: about two three hundred a fortnite, so it's not a 590 00:27:36,280 --> 00:27:38,199 Speaker 4: whole lot, but yeah, I try and put away a 591 00:27:38,240 --> 00:27:38,680 Speaker 4: tiny bit. 592 00:27:38,720 --> 00:27:41,119 Speaker 1: If I count every month, probably ranges from. 593 00:27:41,000 --> 00:27:44,840 Speaker 4: About gosh, it can be like twenty dollars some months 594 00:27:44,880 --> 00:27:48,000 Speaker 4: where things are a bit grim, but then it can 595 00:27:48,040 --> 00:27:50,920 Speaker 4: also be up to like two three hundred dollars a month. 596 00:27:51,040 --> 00:27:53,240 Speaker 1: So she's got a pretty healthy sum in her bank account. 597 00:27:53,520 --> 00:27:54,760 Speaker 1: How does she go with investing? 598 00:27:54,800 --> 00:27:55,080 Speaker 3: Though? 599 00:27:55,400 --> 00:27:55,840 Speaker 1: Oh dear. 600 00:27:58,200 --> 00:28:01,600 Speaker 4: The period we're bitcoin real one found out about bitcoin, 601 00:28:02,080 --> 00:28:05,280 Speaker 4: I was like, I should definitely buy some bitcoin. So 602 00:28:05,720 --> 00:28:09,720 Speaker 4: I decided to buy some bitcoin when everyone knew about bitcoin, 603 00:28:09,840 --> 00:28:13,080 Speaker 4: and then it went down straight after that, so I 604 00:28:13,119 --> 00:28:16,480 Speaker 4: absolutely do not know anything about investing, and I probably 605 00:28:16,520 --> 00:28:17,440 Speaker 4: should know a little bit. 606 00:28:17,320 --> 00:28:17,920 Speaker 3: More about it. 607 00:28:17,960 --> 00:28:19,199 Speaker 1: And what about her debts? 608 00:28:19,600 --> 00:28:22,720 Speaker 4: Oh, this is a this is a sad one. I 609 00:28:22,760 --> 00:28:25,919 Speaker 4: have about forty grand of hextet at the moment, and 610 00:28:26,040 --> 00:28:28,639 Speaker 4: actually did not even think about it until I was 611 00:28:28,680 --> 00:28:32,719 Speaker 4: asked to do this little podcast segment. It's just it's 612 00:28:32,760 --> 00:28:35,600 Speaker 4: something that I just pretend doesn't exist. I guess because 613 00:28:35,960 --> 00:28:37,879 Speaker 4: I'm probably not going to be earning enough to pay 614 00:28:37,880 --> 00:28:40,360 Speaker 4: it off for the next two three years. I actually 615 00:28:40,400 --> 00:28:42,480 Speaker 4: didn't even know how much I had in debt until 616 00:28:42,680 --> 00:28:45,200 Speaker 4: I was going until I knew that I was gonna 617 00:28:45,200 --> 00:28:45,880 Speaker 4: be asked this question. 618 00:28:46,360 --> 00:28:49,080 Speaker 1: Forty grand sounds like a lot. Just twenty four are 619 00:28:49,120 --> 00:28:51,280 Speaker 1: living off a scholarship. Have any good money habits that 620 00:28:51,320 --> 00:28:52,400 Speaker 1: she's especially proud of? 621 00:28:52,560 --> 00:28:55,640 Speaker 4: Oh, I think it's actually it's probably being in a 622 00:28:56,520 --> 00:28:58,640 Speaker 4: probably always making sure that I can put away at 623 00:28:58,760 --> 00:29:01,480 Speaker 4: least a tiny bit each month, and some months that 624 00:29:01,560 --> 00:29:04,520 Speaker 4: tiny bit might actually just be like fifty dollars. But 625 00:29:04,600 --> 00:29:06,720 Speaker 4: I've just been in a habit. I've just been in 626 00:29:06,720 --> 00:29:09,000 Speaker 4: the habit of putting away what I can every month 627 00:29:09,000 --> 00:29:13,040 Speaker 4: for almost as long as I remember. It used to 628 00:29:13,080 --> 00:29:14,560 Speaker 4: be a lot more when I was living at home, 629 00:29:14,640 --> 00:29:17,160 Speaker 4: and now it actually very often than not, is like 630 00:29:17,160 --> 00:29:19,800 Speaker 4: fifty or one hundred dollars a month. But I think just 631 00:29:19,840 --> 00:29:21,320 Speaker 4: being just knowing that I. 632 00:29:21,280 --> 00:29:23,959 Speaker 1: Should do that is a good habit. What about her 633 00:29:24,000 --> 00:29:24,880 Speaker 1: worst money habit? 634 00:29:25,080 --> 00:29:25,880 Speaker 3: Probably coffee. 635 00:29:25,880 --> 00:29:29,160 Speaker 4: Actually, I'm really lucky in that where I work three 636 00:29:29,200 --> 00:29:31,720 Speaker 4: days a week there's a coffee machine, but the other 637 00:29:31,800 --> 00:29:35,720 Speaker 4: two days I work somewhere else and unfortunately they don't 638 00:29:35,760 --> 00:29:37,440 Speaker 4: have a coffee machine. So it means that I buy 639 00:29:37,440 --> 00:29:39,280 Speaker 4: buy coffee about twice a week during the week and 640 00:29:39,280 --> 00:29:41,560 Speaker 4: then twice on the weekend, so by coffee about four 641 00:29:41,600 --> 00:29:43,160 Speaker 4: days a week. And then I also spent a lot 642 00:29:43,200 --> 00:29:47,640 Speaker 4: on Uber eats. So coffee and Uber eats are probably 643 00:29:47,680 --> 00:29:52,200 Speaker 4: my worst worst money habits, and probably also online shopping. 644 00:29:52,280 --> 00:29:54,240 Speaker 4: I get can be really impositive when I like something, 645 00:29:55,040 --> 00:29:58,160 Speaker 4: I think that that happens more with the money. The 646 00:29:58,240 --> 00:30:00,680 Speaker 4: less money I have, I think I make more decisions 647 00:30:00,680 --> 00:30:03,440 Speaker 4: because I get into the mindset off I am actually 648 00:30:03,520 --> 00:30:06,360 Speaker 4: earning like nothing, and I'm probably gonna save like almost 649 00:30:06,360 --> 00:30:08,280 Speaker 4: nothing this month, so I might as well just buy 650 00:30:08,680 --> 00:30:11,880 Speaker 4: like the pair of pants that I want. It's like 651 00:30:12,120 --> 00:30:15,080 Speaker 4: when you can't go up much more. It's just it's 652 00:30:15,400 --> 00:30:17,680 Speaker 4: easy to go down a little, if that makes sense. 653 00:30:18,240 --> 00:30:21,160 Speaker 1: So what's twenty four and living off a scholarship actually 654 00:30:21,200 --> 00:30:23,480 Speaker 1: saving four? What's a big money goal? 655 00:30:23,680 --> 00:30:25,480 Speaker 4: I think for the next two years, I can see 656 00:30:25,520 --> 00:30:28,720 Speaker 4: my goals being really aligned to just making sure that 657 00:30:28,760 --> 00:30:30,040 Speaker 4: I travel as much as I can. 658 00:30:30,840 --> 00:30:31,760 Speaker 3: When I start. 659 00:30:31,520 --> 00:30:34,040 Speaker 4: Working full time, which will probably be in about two 660 00:30:34,120 --> 00:30:36,479 Speaker 4: or three years, that's when I can see my goals 661 00:30:36,600 --> 00:30:40,040 Speaker 4: changing adjusting a little bit. But I think only because 662 00:30:40,680 --> 00:30:42,719 Speaker 4: hopefully be able to travel at the same time as 663 00:30:42,840 --> 00:30:45,920 Speaker 4: aiming to aiming for a bigger goal, like I feel 664 00:30:45,960 --> 00:30:47,960 Speaker 4: like I should say buying a house, because everyone wants 665 00:30:48,080 --> 00:30:50,320 Speaker 4: things that you should want to buy a house. Maybe 666 00:30:50,360 --> 00:30:52,320 Speaker 4: it will be that in three years time. I can 667 00:30:52,440 --> 00:30:55,080 Speaker 4: also see myself not buying a house for like ten 668 00:30:55,160 --> 00:30:55,800 Speaker 4: fifteen years. 669 00:30:55,800 --> 00:30:57,520 Speaker 3: It's just not something that I feel. 670 00:30:57,520 --> 00:30:58,920 Speaker 4: I can feel like a lot of pressure in that 671 00:30:58,960 --> 00:31:01,080 Speaker 4: I should want to buy, but it's not something that 672 00:31:01,240 --> 00:31:02,480 Speaker 4: actually really want. 673 00:31:02,760 --> 00:31:05,360 Speaker 1: How would today's money diarist rate her own relationship with 674 00:31:05,400 --> 00:31:07,440 Speaker 1: money if we force her to give herself a grade? 675 00:31:07,720 --> 00:31:13,680 Speaker 4: Gosh, probably like a D minus because but I think 676 00:31:13,680 --> 00:31:15,600 Speaker 4: that D minus is mainly because what I want to 677 00:31:15,600 --> 00:31:18,680 Speaker 4: spend my money on is stuff that's not going to 678 00:31:18,760 --> 00:31:23,240 Speaker 4: actually make my account grow, like investment properties or I 679 00:31:23,240 --> 00:31:26,680 Speaker 4: actually have absolutely zero interest in investing my money in anything, 680 00:31:26,840 --> 00:31:29,920 Speaker 4: and my only goals are really about are full. I 681 00:31:30,200 --> 00:31:32,400 Speaker 4: like explurge on dinners and I gu out with friends, 682 00:31:32,400 --> 00:31:34,640 Speaker 4: and I don't think I think twice at the moment 683 00:31:34,680 --> 00:31:36,800 Speaker 4: about doing that. I think the seven ground that I 684 00:31:36,840 --> 00:31:40,080 Speaker 4: have in my savings account is purely for experiences, and 685 00:31:40,080 --> 00:31:42,960 Speaker 4: it's purely so that I can travel next year when 686 00:31:43,600 --> 00:31:46,200 Speaker 4: for like a longer time period than this year. And 687 00:31:46,240 --> 00:31:49,080 Speaker 4: it is purely because I think it's almost a safety 688 00:31:49,080 --> 00:31:51,240 Speaker 4: inn I'm worried that like one day I'll have to 689 00:31:52,360 --> 00:31:54,440 Speaker 4: one day I won't, we'll go up, or when I 690 00:31:54,480 --> 00:31:57,120 Speaker 4: have to pay my car insurance stuff. It's mainly for 691 00:31:57,160 --> 00:31:59,320 Speaker 4: stuff like that. It's not so much the seven ground 692 00:31:59,400 --> 00:32:01,520 Speaker 4: is not so much to one day invest in something 693 00:32:01,560 --> 00:32:04,000 Speaker 4: that's going to make my bank account grow more. So 694 00:32:04,040 --> 00:32:06,720 Speaker 4: I think that not having that money for sight is 695 00:32:06,760 --> 00:32:08,880 Speaker 4: why probably why would I would give myself like a 696 00:32:08,960 --> 00:32:09,560 Speaker 4: D minus. 697 00:32:10,640 --> 00:32:13,360 Speaker 1: So she said that the less money you have in 698 00:32:13,360 --> 00:32:15,840 Speaker 1: your savings, the more impulsive you are with buying, and 699 00:32:15,880 --> 00:32:17,560 Speaker 1: I totally relate to that. 700 00:32:17,800 --> 00:32:20,160 Speaker 3: I feel like, that's a really true thing, right, Yes, 701 00:32:20,720 --> 00:32:23,800 Speaker 3: money is really emotional, so I think that if we 702 00:32:23,920 --> 00:32:26,480 Speaker 3: don't have a lot of it and we're feeling quite 703 00:32:26,480 --> 00:32:29,480 Speaker 3: emotional about that, it's really easy to buy something to 704 00:32:29,480 --> 00:32:33,040 Speaker 3: make us feelings. What you're said, Yeah, which I'm really 705 00:32:33,080 --> 00:32:34,880 Speaker 3: good at, by the way, it's a skill. 706 00:32:35,080 --> 00:32:36,360 Speaker 1: So what is she doing well? 707 00:32:36,680 --> 00:32:39,479 Speaker 3: I think what she's doing really well is aligning her 708 00:32:39,520 --> 00:32:42,120 Speaker 3: spending to her values. So, you know, she mentioned that 709 00:32:42,160 --> 00:32:44,560 Speaker 3: she spends on coffee, and maybe that was her downfall, 710 00:32:44,600 --> 00:32:46,720 Speaker 3: but I think that if that's something she values, go 711 00:32:46,800 --> 00:32:48,880 Speaker 3: for it. Spend money on that make yourself feel good 712 00:32:48,960 --> 00:32:51,280 Speaker 3: in that aspect. Coffee at the end of the day, 713 00:32:51,560 --> 00:32:54,040 Speaker 3: is not spending seven hundred dollars a month on shopping. 714 00:32:54,360 --> 00:32:56,760 Speaker 3: It is, you know, a small win that makes you 715 00:32:56,800 --> 00:32:59,360 Speaker 3: feel good about yourself. And if that's her I guess 716 00:32:59,360 --> 00:33:02,200 Speaker 3: money fall, think that's a pretty good thing. But traveling, Yeah, 717 00:33:02,240 --> 00:33:04,800 Speaker 3: Also she said that she really likes traveling and that 718 00:33:04,880 --> 00:33:07,280 Speaker 3: her money is going towards that. So what she told 719 00:33:07,400 --> 00:33:09,560 Speaker 3: us was her values, and then she told us that 720 00:33:09,600 --> 00:33:12,600 Speaker 3: her values are being met with her income. And I 721 00:33:12,600 --> 00:33:15,959 Speaker 3: think that that's a really good thing in terms of 722 00:33:16,200 --> 00:33:20,520 Speaker 3: negative things though, dnus Like, I don't agree with that, 723 00:33:20,960 --> 00:33:23,000 Speaker 3: but I do agree with that in relation to bitcoin, 724 00:33:23,240 --> 00:33:26,920 Speaker 3: like that wasn't a great bitcoin, No, do not bring 725 00:33:26,960 --> 00:33:29,840 Speaker 3: back bitcoin. I think that that was a really good 726 00:33:29,880 --> 00:33:35,120 Speaker 3: example of how emotional investment works actually, And you'd think 727 00:33:35,160 --> 00:33:38,479 Speaker 3: that people in this industry would be really rational and 728 00:33:38,520 --> 00:33:41,320 Speaker 3: people in general would be really rational, but they aren't. 729 00:33:41,680 --> 00:33:44,400 Speaker 3: And the emotions of an investor, especially when they can 730 00:33:44,440 --> 00:33:49,080 Speaker 3: see people around them jumping on something, makes them, I guess, 731 00:33:49,160 --> 00:33:51,560 Speaker 3: have a little bit of fomo. Right, So like you go, oh, 732 00:33:51,680 --> 00:33:54,560 Speaker 3: my friend's got bitcoin, I should have bitcoin, but you 733 00:33:54,600 --> 00:33:59,280 Speaker 3: don't fully understand it. I have never recommended bitcoin to anyone, 734 00:33:59,320 --> 00:34:01,640 Speaker 3: nor have I pert just h myself, and I think 735 00:34:01,680 --> 00:34:04,880 Speaker 3: that that's probably telling in terms of how great of 736 00:34:04,920 --> 00:34:07,360 Speaker 3: an investment it is. Yes, a lot of money was 737 00:34:07,400 --> 00:34:09,800 Speaker 3: made in that investment, but the money that was made 738 00:34:10,239 --> 00:34:13,200 Speaker 3: was through people who knew about bitcoin before we were 739 00:34:13,239 --> 00:34:15,719 Speaker 3: talking about it at brunch. Yeah, so you know, if 740 00:34:15,719 --> 00:34:19,520 Speaker 3: you're talking about an investment over brunch with friends, I 741 00:34:19,560 --> 00:34:22,200 Speaker 3: think that that investment might have already had its time 742 00:34:22,239 --> 00:34:25,439 Speaker 3: to shine and it's not time to invest in that yet. 743 00:34:26,400 --> 00:34:28,759 Speaker 3: But we also really need to be having a think 744 00:34:28,760 --> 00:34:32,440 Speaker 3: about who we're taking investment advice from. Because if we're 745 00:34:32,440 --> 00:34:34,600 Speaker 3: sitting at brunch with a friend who said I invested 746 00:34:34,600 --> 00:34:37,520 Speaker 3: in this, and you decided that an investment decision was 747 00:34:37,560 --> 00:34:39,960 Speaker 3: a good one because your friend was in it, are 748 00:34:39,960 --> 00:34:43,279 Speaker 3: you really getting educated content? Are you really making decisions 749 00:34:43,560 --> 00:34:45,480 Speaker 3: that are best for you over the long term. 750 00:34:45,600 --> 00:34:48,560 Speaker 1: That's all we have time for today. Unfortunately, just before 751 00:34:48,560 --> 00:34:50,920 Speaker 1: we head off, though, as always, let's quickly wrap the 752 00:34:50,920 --> 00:34:53,920 Speaker 1: boring but important stuff. The advice shared on She's on 753 00:34:53,960 --> 00:34:56,040 Speaker 1: the Money is general in nature and does not consider 754 00:34:56,040 --> 00:34:59,239 Speaker 1: your individual circumstances. She's on the Money exists purely for 755 00:34:59,320 --> 00:35:01,719 Speaker 1: educational purpose only and should not be relied upon to 756 00:35:01,760 --> 00:35:04,920 Speaker 1: make an investment or financial decision. And of course we 757 00:35:05,040 --> 00:35:08,920 Speaker 1: promise Victoria Divine is an authorized representative of Consultant Financial 758 00:35:08,920 --> 00:35:13,560 Speaker 1: Advisors Proprietary Limited. Here goes ABN sixty five double O 759 00:35:13,719 --> 00:35:17,600 Speaker 1: six three seven three double nine five AFSL two three 760 00:35:17,719 --> 00:35:18,800 Speaker 1: O three two three. 761 00:35:19,000 --> 00:35:22,960 Speaker 3: Join our Facebook group where twelve thousand women share I 762 00:35:23,040 --> 00:35:26,719 Speaker 3: know right. We share money tips and tricks every single day, 763 00:35:26,800 --> 00:35:29,560 Speaker 3: free of judgment. Just search She's on the Money on 764 00:35:29,640 --> 00:35:32,640 Speaker 3: Facebook and join. If Facebook's not your thing, you're also 765 00:35:32,719 --> 00:35:34,919 Speaker 3: able to find us and follow us on Instagram. We're 766 00:35:34,920 --> 00:35:36,520 Speaker 3: at She's on the Money AUS. 767 00:35:37,000 --> 00:35:39,600 Speaker 1: This podcast is a production of Shameless Media on behalf 768 00:35:39,640 --> 00:35:40,480 Speaker 1: of She's on the Money. 769 00:35:40,800 --> 00:35:42,200 Speaker 3: Bye, guys, see you later.