1 00:00:00,200 --> 00:00:01,960 Speaker 1: She's on the Money. 2 00:00:02,160 --> 00:00:04,520 Speaker 2: She's on the Money. 3 00:00:12,640 --> 00:00:15,440 Speaker 3: Hello, and welcome to She's on the Money, the podcast 4 00:00:15,480 --> 00:00:19,040 Speaker 3: for millennials who want financial freedom. My name is Georgia King. 5 00:00:19,160 --> 00:00:22,360 Speaker 3: I'm a copywriter and journalism student, and each week I 6 00:00:22,400 --> 00:00:24,920 Speaker 3: sit down to chat all things money. Is my favorite 7 00:00:25,160 --> 00:00:28,640 Speaker 3: financial advisor, Victoria Devine. Hello, FA and friend Georgia King, 8 00:00:28,760 --> 00:00:32,040 Speaker 3: Come on and best friend now on the show. Today 9 00:00:32,080 --> 00:00:34,279 Speaker 3: we are going to be chatting through the pros and 10 00:00:34,400 --> 00:00:39,680 Speaker 3: cons of fire, also known as financial independence, retire early now. 11 00:00:39,720 --> 00:00:43,199 Speaker 3: This is the frugal money movement many millennials swear by. 12 00:00:43,360 --> 00:00:46,479 Speaker 3: But is this method of money management actually as simple 13 00:00:46,520 --> 00:00:50,320 Speaker 3: as it sounds? Today we unpack it all. Plus later 14 00:00:50,400 --> 00:00:52,640 Speaker 3: on in the show, we'll be tackling a money question 15 00:00:52,680 --> 00:00:55,040 Speaker 3: about investing for the very first time, and we'll be 16 00:00:55,080 --> 00:00:57,440 Speaker 3: hearing from a money diarist who had a hard start 17 00:00:57,480 --> 00:01:01,320 Speaker 3: to twenty twenty but has finally found her feet. So 18 00:01:01,440 --> 00:01:04,360 Speaker 3: a bit of a stellar show lined up today, guys, 19 00:01:04,360 --> 00:01:07,200 Speaker 3: if we do say so ourselves. But Victoria, before we 20 00:01:07,240 --> 00:01:10,040 Speaker 3: get into it, money wins and confessions from the week, 21 00:01:10,080 --> 00:01:11,280 Speaker 3: that was what have you got for me? 22 00:01:11,400 --> 00:01:13,440 Speaker 1: I am so here for this. This is my favorite 23 00:01:13,440 --> 00:01:16,039 Speaker 1: segment until I have a money confession, and then I 24 00:01:16,080 --> 00:01:19,000 Speaker 1: feel guilty and I wish this segment wasn't in the podcast, 25 00:01:19,440 --> 00:01:22,200 Speaker 1: but in true She's on the Money style, I have 26 00:01:22,240 --> 00:01:24,360 Speaker 1: a confession for you today, give it to me. So 27 00:01:24,800 --> 00:01:29,120 Speaker 1: this week I purchased some new runners, which I probably 28 00:01:29,160 --> 00:01:32,480 Speaker 1: didn't need, but it made me feel really good about 29 00:01:32,520 --> 00:01:35,800 Speaker 1: myself and the fact that I have recently started running again. 30 00:01:36,040 --> 00:01:39,200 Speaker 1: I felt validated the fact that I needed new runners 31 00:01:39,360 --> 00:01:41,080 Speaker 1: new these wasn't the case at all. I have a 32 00:01:41,120 --> 00:01:44,840 Speaker 1: perfectly good pair of runners, but these ones are super white, 33 00:01:44,959 --> 00:01:48,120 Speaker 1: super shiny, and I just felt like I could justify 34 00:01:48,160 --> 00:01:50,840 Speaker 1: them this week. So that's my confession. I bought a 35 00:01:50,840 --> 00:01:52,840 Speaker 1: pair of juice I probably didn't need, but for my 36 00:01:52,840 --> 00:01:55,040 Speaker 1: mental health they were absolutely money well spent. So I'm 37 00:01:55,080 --> 00:01:57,480 Speaker 1: not that sad about it, nor am I sorry. 38 00:01:57,880 --> 00:02:01,520 Speaker 3: So for Surete, I feel like you can treat yourself 39 00:02:01,560 --> 00:02:04,120 Speaker 3: for you know, getting back on the pavement and pound 40 00:02:04,120 --> 00:02:05,600 Speaker 3: in the no I think that's good. 41 00:02:05,600 --> 00:02:08,880 Speaker 1: Who am I again? I used to be a runner Georgia, 42 00:02:09,000 --> 00:02:11,880 Speaker 1: but now I am definitely not a runner, and that 43 00:02:11,960 --> 00:02:15,480 Speaker 1: has been made abundantly clear given my lack of fitness. 44 00:02:15,639 --> 00:02:18,240 Speaker 1: So maybe I'll give some updates on that in another pod, 45 00:02:18,280 --> 00:02:20,440 Speaker 1: but b yeah, share your journey with us. Yeah, look, 46 00:02:20,480 --> 00:02:23,120 Speaker 1: let's move on. What's your money win or confession? Because 47 00:02:23,160 --> 00:02:25,639 Speaker 1: it turns out I cannot run and I want to 48 00:02:25,639 --> 00:02:26,560 Speaker 1: stop talking about that. 49 00:02:26,760 --> 00:02:30,440 Speaker 3: So mine is a money win. Yay, George, Georgia has 50 00:02:30,480 --> 00:02:34,160 Speaker 3: the money win. What a legend. So it's hay fever season, guys. 51 00:02:34,280 --> 00:02:37,239 Speaker 3: Spring has sprung in saying that it's thirteen degrees and 52 00:02:37,360 --> 00:02:40,800 Speaker 3: raining in Melbourne today. But Georgia, this isn't a money no, no, no, 53 00:02:40,639 --> 00:02:43,200 Speaker 3: it's getting there. It's getting there, So hay fever season. 54 00:02:43,320 --> 00:02:45,960 Speaker 3: I'm sneezing, my eyes are itchy, mouth, the roof of 55 00:02:46,000 --> 00:02:48,000 Speaker 3: my mouth gets really itchy, which is fun as well. 56 00:02:49,160 --> 00:02:49,880 Speaker 1: I've never had that. 57 00:02:50,240 --> 00:02:50,920 Speaker 3: It's feral. 58 00:02:51,040 --> 00:02:53,280 Speaker 1: Thank you for sharing with the family and trusting us 59 00:02:53,320 --> 00:02:53,880 Speaker 1: with that informat. 60 00:02:54,040 --> 00:02:57,840 Speaker 3: Yes, sorry, sorry, guys. So the moral of the story 61 00:02:57,880 --> 00:03:04,440 Speaker 3: here is that I usually drop heaps money on clarantine. Clarantine, clarity, Yeah, clarentine. 62 00:03:04,760 --> 00:03:06,480 Speaker 3: I'm going to spring goers for three months, so by 63 00:03:06,520 --> 00:03:09,760 Speaker 3: the time spring is done, I've dropped hundreds of dollars 64 00:03:09,760 --> 00:03:12,800 Speaker 3: on clarantine. But when I went to grab the clarantine 65 00:03:12,880 --> 00:03:15,800 Speaker 3: this week, I asked the pharmacist for the generic version. 66 00:03:15,880 --> 00:03:17,720 Speaker 1: Oh, I didn't even know there was a generic version. 67 00:03:17,760 --> 00:03:17,959 Speaker 2: Yeah. 68 00:03:18,160 --> 00:03:22,560 Speaker 3: Yeah, it's called latine laretardine. 69 00:03:22,680 --> 00:03:26,720 Speaker 1: Obviously this isn't medical. Please ask your pharmacist, but I'm 70 00:03:26,720 --> 00:03:27,880 Speaker 1: definitely going to look into that. 71 00:03:28,320 --> 00:03:31,000 Speaker 3: Let's move on V and look at something maybe slightly 72 00:03:31,040 --> 00:03:34,639 Speaker 3: more interesting exciting. Our Facebook group. It's been busy, it's 73 00:03:34,639 --> 00:03:37,640 Speaker 3: always busy. Did any posts stand out to you this? 74 00:03:37,720 --> 00:03:41,480 Speaker 1: Oh my gosh, yes, Emily sang to my heart, Emily, 75 00:03:41,720 --> 00:03:44,880 Speaker 1: I want to be your friend, mainly because you make 76 00:03:45,000 --> 00:03:48,440 Speaker 1: delicious looking food, but also you are a budgeting queen. 77 00:03:48,640 --> 00:03:51,280 Speaker 1: So Emily posted this week and she said to all 78 00:03:51,320 --> 00:03:54,200 Speaker 1: the preserve making souls, which I didn't know was the thing, 79 00:03:54,280 --> 00:03:56,640 Speaker 1: but it turns out it is. She said, don't forget 80 00:03:56,680 --> 00:03:59,840 Speaker 1: that it's coming into strawbery and tomato season. She recently 81 00:04:00,240 --> 00:04:03,080 Speaker 1: up nine punnets of strawberries for a dollar forty each, 82 00:04:03,400 --> 00:04:06,000 Speaker 1: which came to a grand total of fifteen dollars. I 83 00:04:06,000 --> 00:04:08,720 Speaker 1: can see Georgia doing a chef kiss, and I think 84 00:04:08,720 --> 00:04:12,119 Speaker 1: that that's really appropriate. And for all her strawberry jam 85 00:04:12,200 --> 00:04:15,720 Speaker 1: ingredients total of fifteen dollars amazing. And she's been saving 86 00:04:15,800 --> 00:04:18,560 Speaker 1: jars across the year to make preserves and she's going 87 00:04:18,600 --> 00:04:20,680 Speaker 1: to get seven or eight jars out of it and 88 00:04:20,720 --> 00:04:23,960 Speaker 1: then use it for Christmas presents, which I think is incredible. 89 00:04:24,000 --> 00:04:27,240 Speaker 1: Like if someone gave me a homemade jam for Christmas, 90 00:04:27,520 --> 00:04:29,120 Speaker 1: I think I would love that more than a store 91 00:04:29,120 --> 00:04:32,120 Speaker 1: book gift. Like that is so thoughtful and also a 92 00:04:32,200 --> 00:04:35,000 Speaker 1: very nice reminder. The guy sits twelve weeks to Christmas, 93 00:04:35,040 --> 00:04:38,039 Speaker 1: so let's get our skates on and start planning in 94 00:04:38,120 --> 00:04:40,719 Speaker 1: saying that I'm going to put some Christmas budgeting tips 95 00:04:40,760 --> 00:04:43,559 Speaker 1: in the Facebook group this week, and probably a little 96 00:04:43,600 --> 00:04:46,960 Speaker 1: downloadable Christmas budgeting tool if I can get it done 97 00:04:47,200 --> 00:04:49,560 Speaker 1: in between everything. And yeah, I'm doing this week. But 98 00:04:50,200 --> 00:04:53,240 Speaker 1: moving on, Emily, I think you are fantastic and I 99 00:04:53,279 --> 00:04:55,960 Speaker 1: think we should all give jam making a crack. Georgia King, 100 00:04:56,000 --> 00:04:57,760 Speaker 1: did you have something from the group that was good 101 00:04:57,800 --> 00:04:58,880 Speaker 1: as Emily's. 102 00:04:58,480 --> 00:05:02,520 Speaker 3: Jam Mine's from our who has written in unique money 103 00:05:02,560 --> 00:05:06,039 Speaker 3: in question Mark, Hey, ladies, i always have a million weddings, 104 00:05:06,080 --> 00:05:08,479 Speaker 3: often the same friend group, and I've been able to 105 00:05:08,480 --> 00:05:11,200 Speaker 3: save so much money because I sow my own outfits. 106 00:05:11,520 --> 00:05:13,880 Speaker 3: I always wear something new that fits perfectly that no 107 00:05:13,920 --> 00:05:17,560 Speaker 3: one else is wearing. And I love this one from Friday, 108 00:05:17,560 --> 00:05:19,680 Speaker 3: which has got in the picture cost her twenty five 109 00:05:19,720 --> 00:05:21,800 Speaker 3: dollars to make, and that she said that that's one 110 00:05:21,800 --> 00:05:25,159 Speaker 3: of the more expensive ones. She highly recommends learning to 111 00:05:25,279 --> 00:05:27,880 Speaker 3: sew because it is a great investment. Now, this post 112 00:05:27,960 --> 00:05:31,480 Speaker 3: got about five hundred likes in like two minutes. 113 00:05:31,320 --> 00:05:32,400 Speaker 1: Which is more than you get. 114 00:05:32,440 --> 00:05:34,640 Speaker 3: Well that's I've posted a couple times in the group, guys, 115 00:05:34,640 --> 00:05:36,680 Speaker 3: and I'm ranking. I feel like my average is about 116 00:05:36,680 --> 00:05:38,920 Speaker 3: two hundred. So let's all give georgea some more love. 117 00:05:38,839 --> 00:05:40,960 Speaker 1: I mean, post in our group more bring the value 118 00:05:40,960 --> 00:05:44,200 Speaker 1: to the group. Like Ellie has come on now, no pressure, right, 119 00:05:44,279 --> 00:05:47,000 Speaker 1: all right, I'll hop to it. But also Ellie's dress 120 00:05:47,080 --> 00:05:50,080 Speaker 1: looks incredible, Like it is so well styled. And I 121 00:05:50,080 --> 00:05:52,919 Speaker 1: don't know how to explain this, but like there's a 122 00:05:52,920 --> 00:05:55,720 Speaker 1: lot of different panels on there that come together really nicely. 123 00:05:55,880 --> 00:05:57,719 Speaker 1: Like if you told me that that dress was from 124 00:05:57,760 --> 00:06:01,279 Speaker 1: Scanlon Theodore, I would not I wouldn't blink, honestly, because 125 00:06:01,279 --> 00:06:03,359 Speaker 1: it's very similar to like one that I've seen that 126 00:06:03,440 --> 00:06:06,000 Speaker 1: is Navy that has like a similar bust. I love it. 127 00:06:06,080 --> 00:06:07,200 Speaker 3: Yeah, it's gorgeous. 128 00:06:07,400 --> 00:06:09,719 Speaker 1: Maybe Early should start selling her creations. 129 00:06:09,760 --> 00:06:12,320 Speaker 3: You're a good sewer. But I'm not a good sewer, 130 00:06:12,360 --> 00:06:13,840 Speaker 3: so I feel like if I try to sow address, 131 00:06:13,839 --> 00:06:15,960 Speaker 3: it would just be like a smock set up. 132 00:06:16,120 --> 00:06:18,200 Speaker 1: Oh, that's pretty good, that's in. The smocks are in. 133 00:06:18,640 --> 00:06:19,440 Speaker 3: Maybe I'll give it a go. 134 00:06:19,600 --> 00:06:21,320 Speaker 1: You know what, We're not need to talk about smocks, 135 00:06:21,360 --> 00:06:23,840 Speaker 1: be here to talk about fire. So let's get straight 136 00:06:23,880 --> 00:06:26,239 Speaker 1: into the main chat of the show, Georgia King. 137 00:06:26,200 --> 00:06:30,320 Speaker 3: So let us chat financial independence. Retire early now. The 138 00:06:30,320 --> 00:06:32,560 Speaker 3: fire movement is centered on the premise that if you 139 00:06:32,680 --> 00:06:35,520 Speaker 3: save and invest as much as you can when you're young, 140 00:06:35,800 --> 00:06:37,839 Speaker 3: then you'll be able to retire in your thirties or 141 00:06:37,839 --> 00:06:41,640 Speaker 3: forties by living off the passive income of your investments. Now. 142 00:06:41,680 --> 00:06:44,719 Speaker 3: The movement started in America in the nineties and now 143 00:06:44,760 --> 00:06:47,599 Speaker 3: has an almost cult like following in Australia, with many 144 00:06:47,800 --> 00:06:51,680 Speaker 3: fire Chasers, as they call themselves, detailing their experiences on 145 00:06:51,800 --> 00:06:56,360 Speaker 3: blogs and in Reddit forums. The fire movement does sound 146 00:06:56,640 --> 00:06:58,520 Speaker 3: like the dream to me, as you know, who wouldn't 147 00:06:58,520 --> 00:07:00,839 Speaker 3: want to retire early? Get to the golf course, start 148 00:07:00,880 --> 00:07:03,480 Speaker 3: hitting those balls, you know, head out on a couple 149 00:07:03,560 --> 00:07:04,039 Speaker 3: of cruisers. 150 00:07:04,240 --> 00:07:06,320 Speaker 1: Yeah, that's exactly a line to your value. 151 00:07:06,120 --> 00:07:10,040 Speaker 3: One hundred percent. But it's Obviously it's not without controversy, 152 00:07:10,160 --> 00:07:12,120 Speaker 3: So can you please chat to me a little more 153 00:07:12,160 --> 00:07:14,680 Speaker 3: about how it actually works and why it seems so 154 00:07:14,720 --> 00:07:16,840 Speaker 3: many millennials are turning to the fire structure. 155 00:07:16,920 --> 00:07:18,720 Speaker 1: Of course I can. Georgia, and I think it's really 156 00:07:18,760 --> 00:07:21,600 Speaker 1: important to preface this episode as well before we jump 157 00:07:21,640 --> 00:07:23,880 Speaker 1: straight in and just say, look, fire is such a 158 00:07:23,920 --> 00:07:26,800 Speaker 1: populist strategy at the moment. It is all over the Internet. 159 00:07:26,960 --> 00:07:29,760 Speaker 1: It is in the debt free community in Instagram, it's 160 00:07:29,800 --> 00:07:32,200 Speaker 1: all over Reddit. I've had a number of questions in 161 00:07:32,240 --> 00:07:34,119 Speaker 1: our Facebook group, and I really wanted to talk about 162 00:07:34,120 --> 00:07:36,120 Speaker 1: it because I think it's really important that each and 163 00:07:36,120 --> 00:07:38,679 Speaker 1: every single one of us is educated about what's going 164 00:07:38,720 --> 00:07:41,960 Speaker 1: on out there. Financially. However, it doesn't mean it's attainable 165 00:07:41,960 --> 00:07:44,200 Speaker 1: for every single one of us. Like Georgia, we were 166 00:07:44,200 --> 00:07:48,000 Speaker 1: talking about this theory or this concept before we started 167 00:07:48,000 --> 00:07:50,360 Speaker 1: the podcast, and both of us kind of looked at 168 00:07:50,400 --> 00:07:53,440 Speaker 1: each other over a zoom socially distanced don't worry guys 169 00:07:53,720 --> 00:07:55,360 Speaker 1: kind of looked at each other and said, like, this 170 00:07:55,400 --> 00:07:57,880 Speaker 1: wouldn't be possible for either of us, Like, my lifestyle 171 00:07:57,920 --> 00:08:00,120 Speaker 1: does not mean I could achieve this, And Georgia you 172 00:08:00,120 --> 00:08:02,440 Speaker 1: were saying something similar, and I just think it's really 173 00:08:02,480 --> 00:08:04,679 Speaker 1: important to point this out, like we are not talking 174 00:08:04,760 --> 00:08:08,400 Speaker 1: about this because we passionately believe that everybody should be 175 00:08:08,480 --> 00:08:11,280 Speaker 1: doing fire. We want to talk about this because it 176 00:08:11,360 --> 00:08:13,480 Speaker 1: is awesome to talk about It is awesome to know 177 00:08:13,560 --> 00:08:16,680 Speaker 1: about this. I want you to all be financially educated 178 00:08:16,760 --> 00:08:19,440 Speaker 1: and able to talk about these concepts and maybe if 179 00:08:19,480 --> 00:08:22,280 Speaker 1: this does work for you, jump right in and take 180 00:08:22,320 --> 00:08:24,360 Speaker 1: it all and run with it and do more research 181 00:08:24,400 --> 00:08:27,280 Speaker 1: and really understand it. But I'm not here saying, oh 182 00:08:27,280 --> 00:08:29,440 Speaker 1: my gosh, we did an episode on fire. You guys 183 00:08:29,520 --> 00:08:31,680 Speaker 1: need to be doing this. It's not the case at all. 184 00:08:31,880 --> 00:08:34,920 Speaker 1: So to get off my little disclaimer, high horse fire 185 00:08:35,040 --> 00:08:37,480 Speaker 1: has received so much press over the years and is 186 00:08:37,520 --> 00:08:40,040 Speaker 1: starting to take off in Australia because it does sound 187 00:08:40,080 --> 00:08:42,040 Speaker 1: like the dream come true, right, Like it's a bit 188 00:08:42,080 --> 00:08:44,760 Speaker 1: of a short term pain for a really long term game. 189 00:08:44,800 --> 00:08:47,440 Speaker 1: And who wouldn't want to leave comfortably without working as 190 00:08:47,440 --> 00:08:50,800 Speaker 1: soon as possible. I know I would. That's actually a lie, Georgia. 191 00:08:50,880 --> 00:08:53,720 Speaker 1: I don't think I'll ever stop working. But that's beside 192 00:08:53,760 --> 00:08:56,320 Speaker 1: the point. So the logic for most people who follow 193 00:08:56,360 --> 00:08:58,640 Speaker 1: the fire strategy is that you spend less than you 194 00:08:58,720 --> 00:09:02,560 Speaker 1: earn and invest that surplus into low risk shares. Once 195 00:09:02,559 --> 00:09:05,040 Speaker 1: you've reached the point where your investment income is equal 196 00:09:05,200 --> 00:09:07,880 Speaker 1: to or more than what you can comfortably live on, 197 00:09:08,120 --> 00:09:09,800 Speaker 1: then you can did your day job and you can 198 00:09:09,840 --> 00:09:12,800 Speaker 1: live off that passive income for the foreseeable future. The 199 00:09:12,880 --> 00:09:15,560 Speaker 1: general idea here is actually that you'll have nailed financial 200 00:09:15,559 --> 00:09:18,360 Speaker 1: independence and be able to retire early when your net 201 00:09:18,400 --> 00:09:22,439 Speaker 1: worth is twenty five times your yearly income and living expenses. 202 00:09:22,679 --> 00:09:25,920 Speaker 1: I know everyone's asking why twenty five. Well, the whole 203 00:09:25,960 --> 00:09:28,839 Speaker 1: movement is underscored by the four percent theory, which is 204 00:09:28,880 --> 00:09:31,000 Speaker 1: a rule that assumes that the money you've saved is 205 00:09:31,040 --> 00:09:34,080 Speaker 1: invested smartly and safely, and it'll increase in value by 206 00:09:34,120 --> 00:09:37,880 Speaker 1: about seven percent each year. Then you add standard inflation 207 00:09:37,960 --> 00:09:40,480 Speaker 1: rates of about three percent to that, and you're left 208 00:09:40,480 --> 00:09:42,840 Speaker 1: with a rate of return of around four percent a year. 209 00:09:43,200 --> 00:09:45,120 Speaker 1: So the crux of the idea is that you'll have 210 00:09:45,240 --> 00:09:47,720 Speaker 1: enough saved and invested to live off just four percent 211 00:09:47,800 --> 00:09:51,480 Speaker 1: each year, and then subsequently your initial investment will last forever. 212 00:09:51,800 --> 00:09:53,839 Speaker 1: So it sounds like a dream, right yeah. To help 213 00:09:53,920 --> 00:09:56,120 Speaker 1: visualize this, even though this is a podcast, I've pulled 214 00:09:56,120 --> 00:09:59,040 Speaker 1: together an example, so like, bear with me, I'll explain it, 215 00:09:59,080 --> 00:10:00,839 Speaker 1: but you know what will also do it. We'll post 216 00:10:00,840 --> 00:10:03,520 Speaker 1: this example in the Facebook page with a pretty graphic 217 00:10:03,600 --> 00:10:05,560 Speaker 1: so that it makes a lot more sense. So, say 218 00:10:05,600 --> 00:10:08,240 Speaker 1: you've established that you need about twenty thousand dollars a 219 00:10:08,320 --> 00:10:10,480 Speaker 1: year to live on. Now, I know that that is 220 00:10:10,559 --> 00:10:12,960 Speaker 1: not what everybody will live on. I know my living 221 00:10:12,960 --> 00:10:15,000 Speaker 1: costs are a bit more than that, and everybody else's 222 00:10:15,120 --> 00:10:16,800 Speaker 1: is as well. But this is an example, and I've 223 00:10:16,840 --> 00:10:19,080 Speaker 1: simplified it as much as possible so that we can 224 00:10:19,160 --> 00:10:22,800 Speaker 1: understand it. And then twenty thousand dollars must be around 225 00:10:22,840 --> 00:10:25,680 Speaker 1: four percent of the total value of your savings before 226 00:10:25,720 --> 00:10:28,600 Speaker 1: you can retire. So using this example, you need at 227 00:10:28,679 --> 00:10:31,800 Speaker 1: least five hundred thousand dollars invested in order to live 228 00:10:31,840 --> 00:10:34,640 Speaker 1: off your passive investment income of twenty thousand dollars a year. 229 00:10:34,840 --> 00:10:37,079 Speaker 1: This is because four percent of five hundred thousand dollars 230 00:10:37,160 --> 00:10:39,839 Speaker 1: is twenty thousand dollars, and you could double that as well. 231 00:10:39,880 --> 00:10:42,720 Speaker 1: So say if you wanted to live off forty thousand dollars, 232 00:10:42,720 --> 00:10:45,320 Speaker 1: you'd need a million dollars saved and invested before you 233 00:10:45,360 --> 00:10:48,199 Speaker 1: can retire to have a passive income of forty thousand dollars. 234 00:10:48,320 --> 00:10:50,560 Speaker 1: So like it's scalable and it makes a lot of 235 00:10:50,600 --> 00:10:53,600 Speaker 1: sense in this way. These figures change according to how 236 00:10:53,679 --> 00:10:55,880 Speaker 1: much of your annual income you can actually live off 237 00:10:55,880 --> 00:10:59,480 Speaker 1: each year. So, say you're earning maybe eighty thousand dollars 238 00:10:59,480 --> 00:11:01,440 Speaker 1: a year, instead stead of living off twenty five percent 239 00:11:01,440 --> 00:11:04,079 Speaker 1: of it, you live off fifty percent. Your annual living 240 00:11:04,120 --> 00:11:07,400 Speaker 1: expenses would be forty thousand dollars instead of twenty thousand dollars. 241 00:11:07,600 --> 00:11:10,280 Speaker 1: And back to my example, before using the four percent rule, 242 00:11:10,320 --> 00:11:12,040 Speaker 1: you now need to have to save and invest at 243 00:11:12,120 --> 00:11:14,480 Speaker 1: least a million dollars before you could retire and live 244 00:11:14,480 --> 00:11:15,800 Speaker 1: off your investment earnings. 245 00:11:16,040 --> 00:11:17,359 Speaker 3: That's like a brain explosion. 246 00:11:17,440 --> 00:11:19,600 Speaker 1: Yeah, I'm sorry. I'm trying really hard to make it 247 00:11:19,679 --> 00:11:21,600 Speaker 1: really simple, but at the end of the day, money 248 00:11:21,640 --> 00:11:24,079 Speaker 1: can be a really foreign concept for most of us, 249 00:11:24,200 --> 00:11:26,439 Speaker 1: and I think that's really important to mention here as well. 250 00:11:26,760 --> 00:11:30,120 Speaker 1: Like in our brains, our brains work logically, which is 251 00:11:30,200 --> 00:11:33,400 Speaker 1: why it is so hard for us to understand compound 252 00:11:33,480 --> 00:11:36,960 Speaker 1: interest because we go one plus one equals two, right, 253 00:11:37,440 --> 00:11:40,560 Speaker 1: But when compound interest comes into play, one plus one 254 00:11:40,559 --> 00:11:43,120 Speaker 1: doesn't necessarily equal to if you've got an interest rate 255 00:11:43,160 --> 00:11:45,480 Speaker 1: being applied to a one plus one good equal two 256 00:11:45,520 --> 00:11:48,120 Speaker 1: point twenty five like, and that just doesn't make sense 257 00:11:48,160 --> 00:11:50,600 Speaker 1: to our brains. It is not because we are not smart, 258 00:11:50,679 --> 00:11:53,600 Speaker 1: is not because we don't understand it. It's because literally, 259 00:11:53,679 --> 00:11:57,800 Speaker 1: our brains are not wired to understand compound interest easily, 260 00:11:58,000 --> 00:12:00,400 Speaker 1: which is why we have to work, Georgia extra hard 261 00:12:00,440 --> 00:12:02,800 Speaker 1: to understand it and wrap our hens around it. And 262 00:12:02,840 --> 00:12:05,920 Speaker 1: why when people start talking about investment, so many of 263 00:12:06,000 --> 00:12:08,720 Speaker 1: us feel like these things just go straight over our 264 00:12:08,760 --> 00:12:12,760 Speaker 1: head because genuinely, they are hard to grasp. It's not 265 00:12:12,800 --> 00:12:15,920 Speaker 1: a simple concept. I really think that millennials are drawn 266 00:12:15,960 --> 00:12:18,880 Speaker 1: to fire though, back onto this topic, Georgia, it's because 267 00:12:18,920 --> 00:12:21,720 Speaker 1: it fits with our reputation of being leisure loving people 268 00:12:21,960 --> 00:12:24,720 Speaker 1: who have a zest for life and travel and consumerism 269 00:12:24,760 --> 00:12:26,120 Speaker 1: and all of that other stuff. 270 00:12:26,280 --> 00:12:26,560 Speaker 3: We know. 271 00:12:26,640 --> 00:12:29,720 Speaker 1: Millennials are an incredibly hard working generation, and we're also 272 00:12:29,840 --> 00:12:32,720 Speaker 1: really entrepreneurial, and a lot of us are seeking an 273 00:12:32,720 --> 00:12:35,920 Speaker 1: alternative route to the traditional path to success of working 274 00:12:35,920 --> 00:12:38,120 Speaker 1: a nine to five Monday to Friday job in a 275 00:12:38,120 --> 00:12:41,719 Speaker 1: big company and staying loyal there until retirement. Like we 276 00:12:41,840 --> 00:12:45,520 Speaker 1: know that it has changed Historically, people would get one 277 00:12:45,600 --> 00:12:47,920 Speaker 1: job and stay there and retire there, and they'd have 278 00:12:47,960 --> 00:12:50,560 Speaker 1: their thirty year ten years, whereas the average tenure of 279 00:12:50,600 --> 00:12:54,600 Speaker 1: millennials now is like eighteen months. It is so much different. 280 00:12:54,880 --> 00:12:57,120 Speaker 1: But nowadays many of us are drawn to creating side 281 00:12:57,160 --> 00:12:59,960 Speaker 1: hustles or small businesses, and we're really rejecting the premise 282 00:13:00,080 --> 00:13:02,400 Speaker 1: that there is only one way, an old fashioned way 283 00:13:02,440 --> 00:13:05,240 Speaker 1: to becoming financially free. We are taking our future into 284 00:13:05,280 --> 00:13:07,720 Speaker 1: our own hands. And I think that the fire strategy 285 00:13:07,760 --> 00:13:10,840 Speaker 1: really appeals to that entrepreneurial spirit that many of us 286 00:13:10,840 --> 00:13:13,760 Speaker 1: innately have, or many of us are now being surrounded 287 00:13:13,760 --> 00:13:16,680 Speaker 1: by with social media. So I think it is really 288 00:13:16,679 --> 00:13:19,280 Speaker 1: cool to see and such an interesting concept to kind 289 00:13:19,280 --> 00:13:21,480 Speaker 1: of study and understand and go, hey, what does this 290 00:13:21,480 --> 00:13:24,280 Speaker 1: actually mean? Like what are these people doing and how 291 00:13:24,440 --> 00:13:25,480 Speaker 1: does this work? 292 00:13:26,000 --> 00:13:28,920 Speaker 3: Which leads me perfectly to my next question. V Like, 293 00:13:28,920 --> 00:13:31,200 Speaker 3: it obviously has a lot going for it, and it 294 00:13:31,240 --> 00:13:34,440 Speaker 3: does sound really appealing, but I think it would be 295 00:13:34,480 --> 00:13:36,640 Speaker 3: helpful for our listeners if we could kind of rattle 296 00:13:36,640 --> 00:13:40,280 Speaker 3: off the pros and the cons of fire so that 297 00:13:40,320 --> 00:13:42,559 Speaker 3: they know if this is the right option. 298 00:13:42,360 --> 00:13:44,560 Speaker 1: For them one hundred percent. And I think that this 299 00:13:44,720 --> 00:13:47,240 Speaker 1: is really important to do as well, because we also 300 00:13:47,400 --> 00:13:49,480 Speaker 1: need to touch on and on going a little bit 301 00:13:49,520 --> 00:13:52,599 Speaker 1: left field, because this is more into like understanding investments, 302 00:13:53,120 --> 00:13:56,120 Speaker 1: but why we invest. And so many people in our 303 00:13:56,160 --> 00:13:58,920 Speaker 1: community keep saying to me like, oh, Victoria, I really 304 00:13:58,960 --> 00:14:01,559 Speaker 1: want to start investing, and I say, great, fantastic, I'm 305 00:14:01,600 --> 00:14:03,880 Speaker 1: so glad you are here. Why do you want to invest? 306 00:14:03,960 --> 00:14:06,160 Speaker 1: And they go because it's good. And everyone's been telling 307 00:14:06,160 --> 00:14:08,320 Speaker 1: me it's good. It's like okay, but like, what do 308 00:14:08,320 --> 00:14:10,320 Speaker 1: you want to get out of it? And even last week, 309 00:14:10,360 --> 00:14:12,640 Speaker 1: I had this meeting with such a beautiful new client 310 00:14:12,640 --> 00:14:14,560 Speaker 1: of mine and I'm so excited that she's joining my 311 00:14:14,760 --> 00:14:17,360 Speaker 1: little family. But I was speaking to her and she's like, 312 00:14:17,400 --> 00:14:18,880 Speaker 1: you know, I really want to invest, and she has 313 00:14:18,880 --> 00:14:20,960 Speaker 1: a fair bit to invest in, you know, save, and 314 00:14:21,000 --> 00:14:22,520 Speaker 1: I was like, okay, let's get to the crux of it. 315 00:14:22,680 --> 00:14:24,480 Speaker 1: Why do you want to invest? And she was like, oh, 316 00:14:24,560 --> 00:14:27,040 Speaker 1: so you know, maybe when I retire, I can sell 317 00:14:27,080 --> 00:14:29,960 Speaker 1: down my investment portfolio and I can use that money 318 00:14:30,000 --> 00:14:32,640 Speaker 1: to live my life. I'm like, no, no, no, no, 319 00:14:32,800 --> 00:14:37,080 Speaker 1: that's not what we want. Investment creates passive income, and 320 00:14:37,120 --> 00:14:39,680 Speaker 1: I think that we need to understand what passive income 321 00:14:39,920 --> 00:14:42,360 Speaker 1: is so that we can understand why we are investing. 322 00:14:42,720 --> 00:14:45,400 Speaker 1: Passive income is something that I talk about all the time, 323 00:14:45,600 --> 00:14:47,840 Speaker 1: and it is a very smart way of making your 324 00:14:47,840 --> 00:14:50,200 Speaker 1: money work for you. If you do the work now, 325 00:14:50,480 --> 00:14:52,800 Speaker 1: then that compounding interest is going to look after you 326 00:14:52,840 --> 00:14:55,800 Speaker 1: in the long run forever. It's not just until you 327 00:14:55,920 --> 00:14:59,080 Speaker 1: retire and you sell your investment portfolio. It's not why 328 00:14:59,080 --> 00:15:01,560 Speaker 1: we're putting money in to supberranuation so we can sell 329 00:15:01,600 --> 00:15:03,440 Speaker 1: it down and then have you know, five hundred grand 330 00:15:03,440 --> 00:15:06,280 Speaker 1: sitting in our account. It's so that five hundred thousand 331 00:15:06,320 --> 00:15:10,120 Speaker 1: dollars makes dividends and returns that we get in cash 332 00:15:10,200 --> 00:15:14,120 Speaker 1: each and every single year, and compounding interest works by 333 00:15:14,240 --> 00:15:16,800 Speaker 1: every single year. Maybe if you've got a dollar invested, 334 00:15:16,840 --> 00:15:20,040 Speaker 1: and let's just say cleanly you're making a ten percent return, 335 00:15:20,480 --> 00:15:22,800 Speaker 1: you would then the year after you'd then have a 336 00:15:22,840 --> 00:15:25,560 Speaker 1: dollar and ten cents to invest. So the money that 337 00:15:25,640 --> 00:15:28,240 Speaker 1: your money is making so that ten cents is then 338 00:15:28,320 --> 00:15:30,520 Speaker 1: invested the year after and you might get ten percent 339 00:15:30,560 --> 00:15:33,840 Speaker 1: on that. So it makes money while you're not working 340 00:15:33,880 --> 00:15:36,520 Speaker 1: for it, and over time, that makes a very very 341 00:15:36,560 --> 00:15:38,920 Speaker 1: significant difference. And I know that this is you know, 342 00:15:39,000 --> 00:15:40,800 Speaker 1: a little bit off track, but it's so important for 343 00:15:40,840 --> 00:15:44,800 Speaker 1: you to understand that when you get to retirement, your 344 00:15:44,880 --> 00:15:48,080 Speaker 1: investment is still making money for you, and that is 345 00:15:48,120 --> 00:15:50,600 Speaker 1: the money you live off. So the money you've been 346 00:15:50,640 --> 00:15:54,240 Speaker 1: saving and investing all these years, you don't actually sell down, 347 00:15:54,320 --> 00:15:57,680 Speaker 1: you don't spend that that in theory is meant to 348 00:15:57,800 --> 00:16:01,120 Speaker 1: last forever, like that'll go to your children, or that'll 349 00:16:01,160 --> 00:16:03,640 Speaker 1: go to you know, a cause that you really believe in. 350 00:16:03,680 --> 00:16:05,960 Speaker 1: And that's why will's in a state planning, and you know, 351 00:16:06,200 --> 00:16:09,560 Speaker 1: planning your future is so important because we are going 352 00:16:09,640 --> 00:16:13,320 Speaker 1: to create assets for ourselves that pay us forever. And 353 00:16:13,360 --> 00:16:16,000 Speaker 1: that goes back to that example I gave you guys before, 354 00:16:16,400 --> 00:16:20,520 Speaker 1: which essentially says that if you save and invest and 355 00:16:20,560 --> 00:16:22,960 Speaker 1: you want to get you know, five hundred thousand dollars 356 00:16:22,960 --> 00:16:26,280 Speaker 1: in your savings account and it returns at seven percent, 357 00:16:26,320 --> 00:16:29,160 Speaker 1: and then you have inflation, et cetera, you will get 358 00:16:29,280 --> 00:16:32,520 Speaker 1: a passive income each and every single year on average 359 00:16:32,720 --> 00:16:36,520 Speaker 1: from your investment portfolio of twenty thousand dollars. And then 360 00:16:36,640 --> 00:16:39,080 Speaker 1: you know, if you've got a million dollars invested, you'll 361 00:16:39,080 --> 00:16:41,960 Speaker 1: get forty thousand dollars a year. So on and so forth. 362 00:16:42,280 --> 00:16:45,560 Speaker 1: So say, if you are in a situation where currently Georgia, 363 00:16:45,600 --> 00:16:48,960 Speaker 1: maybe you earn't eighty thousand dollars a year, and you go, hey, 364 00:16:49,040 --> 00:16:51,280 Speaker 1: if I still had eighty thousand dollars a year coming 365 00:16:51,360 --> 00:16:55,160 Speaker 1: in each and every single year, I could retire, like 366 00:16:55,200 --> 00:16:57,040 Speaker 1: I'd be happy. I could pay off my house, or 367 00:16:57,080 --> 00:16:59,000 Speaker 1: I could pay rent, or I could you know, go 368 00:16:59,080 --> 00:17:01,400 Speaker 1: on holidays. Maybe it's a really comfortable income for you 369 00:17:01,440 --> 00:17:04,240 Speaker 1: and you want to achieve it. Fantastic. If you can 370 00:17:04,359 --> 00:17:08,359 Speaker 1: create a two million dollar portfolio, you will have an 371 00:17:08,359 --> 00:17:11,080 Speaker 1: eighty thousand dollars amount of money coming in each and 372 00:17:11,119 --> 00:17:13,760 Speaker 1: every single year for the entire time that you have 373 00:17:13,840 --> 00:17:16,040 Speaker 1: two million dollars invested. Does that make sense? 374 00:17:16,240 --> 00:17:16,440 Speaker 4: Yeah? 375 00:17:16,520 --> 00:17:17,040 Speaker 1: I think so. 376 00:17:17,880 --> 00:17:20,480 Speaker 3: I think that's a pretty good description of how it 377 00:17:20,520 --> 00:17:21,119 Speaker 3: all works. 378 00:17:21,200 --> 00:17:23,159 Speaker 1: Yes, but let's get back on track. I'm sorry that 379 00:17:23,240 --> 00:17:24,639 Speaker 1: I'm just jumping around. 380 00:17:24,840 --> 00:17:27,920 Speaker 3: No, no, no, I think that's very, very valuable. But we 381 00:17:27,920 --> 00:17:30,160 Speaker 3: were talking about the pros. So that was the passive 382 00:17:30,200 --> 00:17:32,879 Speaker 3: income point, I guess, But what else can our listeners 383 00:17:32,920 --> 00:17:35,320 Speaker 3: be getting excited about with this method? 384 00:17:35,400 --> 00:17:37,639 Speaker 1: Obviously all that because I've just spent the entire episode 385 00:17:37,680 --> 00:17:41,320 Speaker 1: just talking about why we invest but also investing in 386 00:17:41,440 --> 00:17:44,200 Speaker 1: low risk generally pays off and there's not a lot 387 00:17:44,200 --> 00:17:46,640 Speaker 1: of risk here if you invest really well. So if 388 00:17:46,640 --> 00:17:49,160 Speaker 1: you're trying to achieve an early retirement by taking a part, 389 00:17:49,280 --> 00:17:52,320 Speaker 1: it is definitely not advisable. But if you really know 390 00:17:52,400 --> 00:17:54,440 Speaker 1: what you are doing with those investments, then the risk 391 00:17:54,560 --> 00:17:57,240 Speaker 1: is really reduced. So from my rating, it seems like 392 00:17:57,320 --> 00:17:59,960 Speaker 1: a lot of fire chases are choosing to invest in 393 00:18:00,040 --> 00:18:03,560 Speaker 1: ETFs or LICs, which we know are very reliable choices 394 00:18:03,600 --> 00:18:05,960 Speaker 1: when it comes to the stock market. I won't get 395 00:18:06,000 --> 00:18:07,840 Speaker 1: into those. You can absolutely google them or go back 396 00:18:07,880 --> 00:18:10,040 Speaker 1: and listen to our investing podcasts from season one just 397 00:18:10,040 --> 00:18:12,760 Speaker 1: to get a bit of a recap. But in general, 398 00:18:13,000 --> 00:18:15,760 Speaker 1: the fire method has really been designed, as I've pointed 399 00:18:15,760 --> 00:18:17,600 Speaker 1: out before, to let you live your life the way 400 00:18:17,600 --> 00:18:19,800 Speaker 1: you want to live it, and it provides an alternative 401 00:18:19,840 --> 00:18:22,000 Speaker 1: option to the nine to five grind, and honestly, that's 402 00:18:22,040 --> 00:18:24,480 Speaker 1: probably the biggest benefit. That you get to have more 403 00:18:24,520 --> 00:18:26,439 Speaker 1: say in what your life looks like, and that is 404 00:18:26,480 --> 00:18:28,840 Speaker 1: probably why so many people are drawn to it. But 405 00:18:28,960 --> 00:18:31,720 Speaker 1: in saying that, with all positives, there are often a 406 00:18:31,840 --> 00:18:34,280 Speaker 1: number of negatives, and I think it's really important to 407 00:18:34,320 --> 00:18:36,399 Speaker 1: point out those as well. Look, one of the biggest 408 00:18:36,440 --> 00:18:38,879 Speaker 1: issues for me Georgia is that fire is impossible for 409 00:18:38,880 --> 00:18:41,160 Speaker 1: a lot of people who already have been in harder 410 00:18:41,200 --> 00:18:44,520 Speaker 1: financial situations or don't earn big six, bigger salaries that 411 00:18:44,680 --> 00:18:48,520 Speaker 1: might have multiple debts, etc. So forth. So it's almost 412 00:18:48,600 --> 00:18:50,879 Speaker 1: like to make fire happen, you kind of need to 413 00:18:50,880 --> 00:18:53,320 Speaker 1: be in a privileged position from the outset to make 414 00:18:53,359 --> 00:18:56,359 Speaker 1: that occur. And you know, for you really break it down, 415 00:18:56,480 --> 00:18:59,959 Speaker 1: to make fire work, you have to really really aggressively 416 00:19:00,119 --> 00:19:03,000 Speaker 1: save like we're talking fifty to seventy five percent of 417 00:19:03,040 --> 00:19:05,600 Speaker 1: your income, and for most of us geor Ja, that's 418 00:19:05,720 --> 00:19:08,800 Speaker 1: literally not plausible. Like it sounds good in theory when 419 00:19:08,800 --> 00:19:11,000 Speaker 1: you're like, oh my gosh, this strategy could work, like 420 00:19:11,040 --> 00:19:13,800 Speaker 1: it's all about being frugal. I can be frugal, but like, 421 00:19:13,880 --> 00:19:15,879 Speaker 1: can you save seventy five percent of your income to 422 00:19:15,960 --> 00:19:18,359 Speaker 1: create this? Like it might not be something that is 423 00:19:18,400 --> 00:19:21,000 Speaker 1: actually able to be achieved. And I would hate to 424 00:19:21,000 --> 00:19:22,600 Speaker 1: think that people look at it and then get really 425 00:19:22,640 --> 00:19:25,040 Speaker 1: disheartened because it doesn't fit them. A lot of people 426 00:19:25,080 --> 00:19:28,040 Speaker 1: who actually follow fire have had success. Forget to mention 427 00:19:28,119 --> 00:19:31,200 Speaker 1: their position of privilege and insist that it's the way 428 00:19:31,280 --> 00:19:33,800 Speaker 1: to get rich and live your best life, when in reality, 429 00:19:33,880 --> 00:19:36,000 Speaker 1: for a lot of us, it's just not that easy. 430 00:19:36,320 --> 00:19:38,720 Speaker 1: Like for lots of families and individuals, putting that surplus 431 00:19:38,760 --> 00:19:41,800 Speaker 1: money aside isn't possible because there isn't actually a surplus 432 00:19:41,800 --> 00:19:44,200 Speaker 1: in their income. Life. At the end of the day, 433 00:19:44,240 --> 00:19:47,080 Speaker 1: Georgia is expensive, and I think that this outlook can 434 00:19:47,119 --> 00:19:48,840 Speaker 1: be a little bit limited and exclusive. 435 00:19:49,080 --> 00:19:50,560 Speaker 3: Yet in a way, yeah, I feel. 436 00:19:50,280 --> 00:19:52,960 Speaker 1: That obviously a massive part of getting this right is 437 00:19:53,000 --> 00:19:56,200 Speaker 1: living very frugally and restricting yourself to maybe not treating 438 00:19:56,240 --> 00:19:59,119 Speaker 1: yourself to lavish dinners or going out or holidays here 439 00:19:59,160 --> 00:20:01,320 Speaker 1: and there, which, honestly, Georgia for a lot of us, 440 00:20:01,400 --> 00:20:04,000 Speaker 1: is a really important part of our twenties, right, Like, 441 00:20:04,320 --> 00:20:07,119 Speaker 1: that's something that I really value and I'm not willing 442 00:20:07,160 --> 00:20:09,520 Speaker 1: to give up. And of course it's very privileged to 443 00:20:09,560 --> 00:20:11,320 Speaker 1: say things like this, but I think a lot of 444 00:20:11,359 --> 00:20:14,199 Speaker 1: millennial Australians have grown up and grown used to the 445 00:20:14,280 --> 00:20:17,160 Speaker 1: idea that you can go or own overseas trip every 446 00:20:17,200 --> 00:20:19,119 Speaker 1: few years, and you can go out for dinners and 447 00:20:19,160 --> 00:20:22,480 Speaker 1: drinks pretty regularly each month. And I think that for 448 00:20:22,560 --> 00:20:24,760 Speaker 1: so many of us weighing up whether you're willing to 449 00:20:24,800 --> 00:20:27,359 Speaker 1: sacrifice these luxuries in life and the things that you 450 00:20:27,480 --> 00:20:29,919 Speaker 1: really love doing in your twenties and thirties so that 451 00:20:29,960 --> 00:20:32,920 Speaker 1: you can live comfortably without salaries in your forties might 452 00:20:33,080 --> 00:20:35,919 Speaker 1: not be something that you're doing. And being honest, like, 453 00:20:36,080 --> 00:20:38,240 Speaker 1: I don't think this is something that I would be 454 00:20:38,280 --> 00:20:40,679 Speaker 1: comfortable doing. And Jorjo, I've said before to you that 455 00:20:40,760 --> 00:20:42,919 Speaker 1: I think that old age is a privilege denied to 456 00:20:43,000 --> 00:20:45,160 Speaker 1: many people. And I really want to live my life, 457 00:20:45,200 --> 00:20:47,479 Speaker 1: you know, responsibly. I do want to save, I do 458 00:20:47,520 --> 00:20:49,639 Speaker 1: want to invest, I do want to really provide for 459 00:20:49,720 --> 00:20:52,880 Speaker 1: future me. But future me is just as important as 460 00:20:52,960 --> 00:20:54,959 Speaker 1: current me, and I need to look after both of 461 00:20:55,000 --> 00:20:58,239 Speaker 1: those versions. So I think it's important to talk about that. 462 00:20:58,480 --> 00:21:00,320 Speaker 1: Not saying that people in their forties are old by 463 00:21:00,359 --> 00:21:02,879 Speaker 1: any stretch of the imagination, but I just think that, 464 00:21:03,160 --> 00:21:05,280 Speaker 1: you know, you see so many things happen in life, 465 00:21:05,320 --> 00:21:07,440 Speaker 1: like we should be enjoying it and making the most 466 00:21:07,440 --> 00:21:10,040 Speaker 1: of it, always while still setting ourselves up for success. 467 00:21:10,520 --> 00:21:12,720 Speaker 1: And to me, if that means that I am working 468 00:21:13,240 --> 00:21:16,359 Speaker 1: for twenty more years, I'm I'm pretty okay with that. 469 00:21:16,520 --> 00:21:17,359 Speaker 3: It's worth it. 470 00:21:17,359 --> 00:21:18,000 Speaker 1: It's worth it. 471 00:21:18,040 --> 00:21:21,320 Speaker 3: I feel like this year has also really crystallized how 472 00:21:21,359 --> 00:21:25,119 Speaker 3: important the color in our worlds is. Like we can't 473 00:21:25,200 --> 00:21:27,280 Speaker 3: go on holidays, we can't go out for dinner. Yes, 474 00:21:27,320 --> 00:21:30,120 Speaker 3: it sounds privileged, but a lot of that stuff really 475 00:21:30,160 --> 00:21:33,280 Speaker 3: makes life worth living. And this method means that you 476 00:21:33,320 --> 00:21:35,280 Speaker 3: do have to forego all of that and you know, 477 00:21:35,720 --> 00:21:37,840 Speaker 3: have beans on toast for dinner most nights a week. 478 00:21:37,920 --> 00:21:40,439 Speaker 3: You can't go out with your friends and spend money, 479 00:21:40,560 --> 00:21:42,800 Speaker 3: like you really do have to make a pretty big 480 00:21:42,840 --> 00:21:44,680 Speaker 3: sacrifice to make this work. 481 00:21:45,880 --> 00:21:48,639 Speaker 1: I think it's really inspirational. There are people who are 482 00:21:48,640 --> 00:21:50,679 Speaker 1: doing it, and I absolutely love it, and I would, 483 00:21:50,720 --> 00:21:52,520 Speaker 1: you know, love to talk to more people who are 484 00:21:52,520 --> 00:21:54,080 Speaker 1: doing it, and I've met lots of them, like I 485 00:21:54,119 --> 00:21:56,560 Speaker 1: have clients who are doing this, so I'm not actually 486 00:21:56,560 --> 00:21:59,960 Speaker 1: that distanced from this concept. But for me, I also 487 00:22:00,119 --> 00:22:03,680 Speaker 1: think it's one of those things that if you're passionate 488 00:22:03,680 --> 00:22:06,600 Speaker 1: about it and you really commit to this, this isn't like, oh, 489 00:22:06,640 --> 00:22:08,920 Speaker 1: I'm saving for my house and you know, you kind 490 00:22:08,920 --> 00:22:11,199 Speaker 1: of do it for twelve months or two years or 491 00:22:11,200 --> 00:22:14,960 Speaker 1: however long that happens for You're actually doing it for life, 492 00:22:15,240 --> 00:22:18,199 Speaker 1: and I think that that's a massive you know, strain 493 00:22:18,280 --> 00:22:21,919 Speaker 1: on relationships and strain on your personal relationships. Like I know, 494 00:22:22,480 --> 00:22:23,919 Speaker 1: it would make it really hard if I had a 495 00:22:23,920 --> 00:22:27,080 Speaker 1: girlfriend who was doing that, because the way I socialize 496 00:22:27,200 --> 00:22:29,440 Speaker 1: is often, you know, going out and going for walks 497 00:22:29,480 --> 00:22:32,560 Speaker 1: and grabbing coffees and doing things that maybe she might 498 00:22:32,600 --> 00:22:34,680 Speaker 1: not want to do. And I just think that it's 499 00:22:34,720 --> 00:22:37,560 Speaker 1: worthy of taking that into consideration too. But it could 500 00:22:37,560 --> 00:22:39,600 Speaker 1: also be easier if you end all your friends want 501 00:22:39,640 --> 00:22:41,679 Speaker 1: to achieve that. Maybe you're all on the same page 502 00:22:41,680 --> 00:22:43,560 Speaker 1: and you're just like, yep, sick, this is awesome. This 503 00:22:43,600 --> 00:22:45,760 Speaker 1: is our plan. We're all going to retire early, and 504 00:22:45,800 --> 00:22:48,040 Speaker 1: we're going to do it together, like awesome. But I 505 00:22:48,040 --> 00:22:50,040 Speaker 1: think that there is a lot of social pressure that 506 00:22:50,119 --> 00:22:53,040 Speaker 1: might come along with this theory or this way of 507 00:22:53,119 --> 00:22:55,800 Speaker 1: living and then moving on a bit more. I think 508 00:22:55,880 --> 00:22:59,360 Speaker 1: that it's also another negative. Sorry guys, Via doesn't really 509 00:22:59,400 --> 00:23:02,719 Speaker 1: consider that life occurrences pop up like ill health or 510 00:23:02,760 --> 00:23:05,240 Speaker 1: death or divorce, or you know, your car breaking down 511 00:23:05,280 --> 00:23:06,600 Speaker 1: on the side of the road and you're needing to 512 00:23:06,720 --> 00:23:09,240 Speaker 1: grant to fix it. And I think that these things 513 00:23:09,280 --> 00:23:11,760 Speaker 1: can swoop in unexpectedly and muck up our plans. So 514 00:23:11,800 --> 00:23:14,400 Speaker 1: it's not always as straightforward as it would have been 515 00:23:14,720 --> 00:23:17,560 Speaker 1: in an ideal world. And while it's great on paper, 516 00:23:17,640 --> 00:23:20,320 Speaker 1: there are always unforeseen things that pop up. And if 517 00:23:20,359 --> 00:23:23,800 Speaker 1: you've been unemployed for like thirteen years retired and then 518 00:23:23,840 --> 00:23:26,040 Speaker 1: you need to get back into one of your income 519 00:23:26,080 --> 00:23:30,080 Speaker 1: streams because it's been unexpectedly compromised, then I think you 520 00:23:30,160 --> 00:23:32,480 Speaker 1: might find it harder to get back into the workforce 521 00:23:32,520 --> 00:23:34,840 Speaker 1: and get back on track. So I think that something 522 00:23:34,840 --> 00:23:36,879 Speaker 1: that goes along with this would be making sure that 523 00:23:36,920 --> 00:23:40,159 Speaker 1: you're really well insured and you're really well looked after. 524 00:23:40,760 --> 00:23:43,800 Speaker 1: But it's also really important to note that income protection 525 00:23:43,960 --> 00:23:47,199 Speaker 1: isn't paid out in most cases if you don't have 526 00:23:47,280 --> 00:23:50,360 Speaker 1: a job, because it's protecting your income, not your investments. 527 00:23:50,720 --> 00:23:52,959 Speaker 1: So for me, I think it's just about working out 528 00:23:53,040 --> 00:23:55,240 Speaker 1: what is actually going to work in the real world. 529 00:23:55,320 --> 00:23:56,880 Speaker 1: And you know, if this is something you really want 530 00:23:56,920 --> 00:24:00,480 Speaker 1: to do, see a financial advisor because it will pay 531 00:24:00,480 --> 00:24:04,200 Speaker 1: off for you, like get set up, start investing really aggressively, 532 00:24:04,359 --> 00:24:08,240 Speaker 1: like you need someone on your team. And then one 533 00:24:08,280 --> 00:24:12,000 Speaker 1: more negative before I finished. Sorry, Georgia, I know that 534 00:24:12,160 --> 00:24:15,360 Speaker 1: I said that low risk investing can be very safe, 535 00:24:15,600 --> 00:24:18,280 Speaker 1: but there are still no guarantees on return here So 536 00:24:18,359 --> 00:24:21,040 Speaker 1: the four percent theory, as I mentioned before and of HISS, 537 00:24:21,080 --> 00:24:24,080 Speaker 1: this whole thing is based on past performance of local 538 00:24:24,119 --> 00:24:27,840 Speaker 1: and global stock markets. COVID nineteen has absolutely sent our 539 00:24:27,840 --> 00:24:30,680 Speaker 1: share market plummeting. And I know that this has happened 540 00:24:30,840 --> 00:24:33,040 Speaker 1: heaps of times. But we also have to be in 541 00:24:33,080 --> 00:24:35,800 Speaker 1: financial positions where we can ride out the bad years 542 00:24:35,800 --> 00:24:37,919 Speaker 1: as well as the good because you know, if we 543 00:24:38,000 --> 00:24:40,959 Speaker 1: talk about it, since nineteen hundred, I think it is 544 00:24:41,119 --> 00:24:44,040 Speaker 1: the average return of the share market, or the Australian 545 00:24:44,080 --> 00:24:46,919 Speaker 1: share market specifically, has been thirteen point two one percent, 546 00:24:47,200 --> 00:24:49,600 Speaker 1: And that sounds quite high, especially when they're working off 547 00:24:49,640 --> 00:24:52,480 Speaker 1: four percent, because obviously they'll be in a situation where 548 00:24:52,720 --> 00:24:54,919 Speaker 1: more often than not they'll be in positive But what 549 00:24:55,040 --> 00:24:57,840 Speaker 1: if really bad things happen? What if a global pandemic 550 00:24:57,920 --> 00:25:00,440 Speaker 1: hits and their share portfolio isn't performed in the way 551 00:25:00,440 --> 00:25:02,879 Speaker 1: that it is. Could they survive for those couple of 552 00:25:02,920 --> 00:25:05,919 Speaker 1: years where their share portfolio isn't returning as much as 553 00:25:05,920 --> 00:25:09,520 Speaker 1: they had anticipated. So, yes, it's lower than average, Yes, 554 00:25:09,600 --> 00:25:12,400 Speaker 1: I think it's a really conservative number. But what happens 555 00:25:12,400 --> 00:25:14,960 Speaker 1: when you don't have that income for a couple of years? 556 00:25:15,080 --> 00:25:16,439 Speaker 3: Yeah, really good point. 557 00:25:16,520 --> 00:25:16,919 Speaker 1: There'd be. 558 00:25:17,440 --> 00:25:20,400 Speaker 3: On a slightly different note, I think it's probably worth 559 00:25:20,520 --> 00:25:24,160 Speaker 3: mentioning the impact that fire could potentially have on your 560 00:25:24,200 --> 00:25:27,720 Speaker 3: mental health. Like I joked before about retiring early and 561 00:25:27,800 --> 00:25:30,000 Speaker 3: like how good that would be for the golf and 562 00:25:30,119 --> 00:25:34,480 Speaker 3: you know, cruises and stuff, all of the retiring stereotypes 563 00:25:34,680 --> 00:25:35,120 Speaker 3: because you. 564 00:25:35,200 --> 00:25:38,480 Speaker 1: Just got your go on so many golf cruises. Is 565 00:25:38,520 --> 00:25:39,640 Speaker 1: that a thing? A golf cruise? 566 00:25:39,680 --> 00:25:43,040 Speaker 3: I'm actually pretty good at golf guys. Anyway, I digress 567 00:25:43,160 --> 00:25:48,560 Speaker 3: golf chats. But the mental health aspect of this is 568 00:25:49,080 --> 00:25:52,639 Speaker 3: that you retire at forty and then it's like, great, 569 00:25:52,760 --> 00:25:56,280 Speaker 3: I've got you know, maybe forty to sixty years of 570 00:25:56,640 --> 00:26:00,600 Speaker 3: doing sweet nothing like that sounds maybe good theory, but 571 00:26:00,680 --> 00:26:02,800 Speaker 3: you still have to live brutally, and it's like, what 572 00:26:02,800 --> 00:26:04,439 Speaker 3: are you going to do for that whole time? I know, 573 00:26:04,520 --> 00:26:08,000 Speaker 3: like you have very much an ATYPEV I do to 574 00:26:08,040 --> 00:26:11,360 Speaker 3: an extent. Oh, I think so. But can you imagine 575 00:26:11,359 --> 00:26:14,560 Speaker 3: if you were to no longer work or have anything 576 00:26:14,760 --> 00:26:16,679 Speaker 3: to fill your days? Like, what would your purpose be? 577 00:26:16,760 --> 00:26:17,639 Speaker 3: What would your drive be? 578 00:26:18,080 --> 00:26:20,560 Speaker 1: I mean, I know exactly what mine is, and mine 579 00:26:20,560 --> 00:26:23,600 Speaker 1: is so closely tied to work, Like my mental health 580 00:26:24,000 --> 00:26:27,880 Speaker 1: honestly during COVID has been hit for six because I 581 00:26:28,080 --> 00:26:32,560 Speaker 1: thrive on working. I thrive on human interaction and being 582 00:26:32,560 --> 00:26:35,200 Speaker 1: able to go to work and create things, and feeling 583 00:26:35,240 --> 00:26:37,199 Speaker 1: like I'm not able to do that and feeling a 584 00:26:37,200 --> 00:26:39,679 Speaker 1: little bit helpless sucks. And I know that, you know, 585 00:26:39,760 --> 00:26:41,399 Speaker 1: the whole purpose of this isn't to go through a 586 00:26:41,480 --> 00:26:45,600 Speaker 1: global pandemic. But not having something that helps me with 587 00:26:45,720 --> 00:26:48,760 Speaker 1: my drive and gives me a channel and a creative outlet, 588 00:26:49,160 --> 00:26:52,439 Speaker 1: I'd really struggle with personally. But in saying that I 589 00:26:52,440 --> 00:26:54,439 Speaker 1: would love to be in a position where, by the 590 00:26:54,440 --> 00:26:57,080 Speaker 1: age of forty, I'm financially free so that I can 591 00:26:57,119 --> 00:26:59,880 Speaker 1: actually choose what to do. So I think it's important 592 00:27:00,119 --> 00:27:02,600 Speaker 1: go okay, like, are we striving for financial freedom or 593 00:27:02,600 --> 00:27:06,479 Speaker 1: are we striving for retirement? Because for me, financial freedom 594 00:27:06,520 --> 00:27:08,719 Speaker 1: is the thing that I would ideally love to achieve 595 00:27:08,760 --> 00:27:11,560 Speaker 1: sooner rather than later, And for me, that means knowing 596 00:27:11,600 --> 00:27:13,800 Speaker 1: that I have a passive income if I need it, 597 00:27:13,880 --> 00:27:16,600 Speaker 1: but I also will probably work. But for a lot 598 00:27:16,640 --> 00:27:19,520 Speaker 1: of people it's like, Okay, well, maybe retiring isn't what 599 00:27:19,560 --> 00:27:21,840 Speaker 1: you want. Maybe you just want the freedom to work 600 00:27:21,920 --> 00:27:24,640 Speaker 1: part time. Yeah, it take six months off and travel 601 00:27:24,720 --> 00:27:27,480 Speaker 1: Australia and do whatever you want to do. But I 602 00:27:27,520 --> 00:27:31,320 Speaker 1: think it's really worth thinking about what happens after, Like 603 00:27:31,359 --> 00:27:34,159 Speaker 1: what happens once you achieve this, what is your lifestyle? 604 00:27:34,200 --> 00:27:36,280 Speaker 1: What are you doing? How does that work for you? 605 00:27:36,560 --> 00:27:38,240 Speaker 1: And I think it's important to talk about the mental 606 00:27:38,280 --> 00:27:42,280 Speaker 1: health impacts of that, like will your friendships change? Will 607 00:27:42,359 --> 00:27:46,040 Speaker 1: your social interactions change? Like so many of us have 608 00:27:46,320 --> 00:27:48,680 Speaker 1: really great relationships with the people that we work with, 609 00:27:49,040 --> 00:27:51,240 Speaker 1: Like does that change or we meant to change that? 610 00:27:51,359 --> 00:27:51,920 Speaker 1: I'm not sure. 611 00:27:52,600 --> 00:27:55,199 Speaker 3: Yeah, I think your world kind of becomes smaller. And 612 00:27:55,240 --> 00:27:58,680 Speaker 3: I think this theory also kind of assumes that everyone 613 00:27:58,720 --> 00:28:01,240 Speaker 3: hates their job and hate working and hates that I'm 614 00:28:01,280 --> 00:28:04,159 Speaker 3: to five grind, when that's simply not true for a 615 00:28:04,160 --> 00:28:08,159 Speaker 3: lot of people. I love working. I would not enjoy 616 00:28:08,359 --> 00:28:11,119 Speaker 3: retiring at forty even if I could go hit golf 617 00:28:11,160 --> 00:28:13,560 Speaker 3: every day, you know, I just I just don't think 618 00:28:13,640 --> 00:28:17,280 Speaker 3: it is necessarily as fabulous an idea as a lot 619 00:28:17,280 --> 00:28:19,439 Speaker 3: of the fire chases make it out to be. 620 00:28:19,640 --> 00:28:21,920 Speaker 1: Yeah, And I think that that's where, you know, it's 621 00:28:21,960 --> 00:28:25,200 Speaker 1: actually a really nice topic for us to talk about 622 00:28:25,640 --> 00:28:29,479 Speaker 1: because this isn't in line with my values. But that's Okay, 623 00:28:29,960 --> 00:28:33,159 Speaker 1: and that's like, that's perfectly fine for something to not 624 00:28:33,200 --> 00:28:35,480 Speaker 1: be in line with my values, but I can see 625 00:28:35,520 --> 00:28:37,560 Speaker 1: that it's in line with other people's values. And I'm 626 00:28:37,600 --> 00:28:40,560 Speaker 1: really grateful that I really understand what that means, and 627 00:28:40,640 --> 00:28:43,239 Speaker 1: I've had the opportunity to think about whether it's an 628 00:28:43,240 --> 00:28:45,760 Speaker 1: option for me. And I think that that's a really 629 00:28:45,800 --> 00:28:48,120 Speaker 1: beautiful position to be in, where you can say, wow, 630 00:28:48,240 --> 00:28:49,920 Speaker 1: that works for me, but it might not work for 631 00:28:49,960 --> 00:28:52,520 Speaker 1: someone else. Yeah, And it's just like me choosing not 632 00:28:52,600 --> 00:28:55,120 Speaker 1: to eat meat, Like, I know why I choose not 633 00:28:55,240 --> 00:28:57,920 Speaker 1: to eat meat. Does it mean it works for everybody else? No? 634 00:28:58,120 --> 00:29:00,200 Speaker 1: Does it mean that I judge people who do eat me? 635 00:29:00,440 --> 00:29:00,480 Speaker 3: No? 636 00:29:00,840 --> 00:29:03,160 Speaker 1: Like, I don't mind what you do with your time 637 00:29:03,240 --> 00:29:06,440 Speaker 1: and energy and choices. It's not my place to have 638 00:29:06,480 --> 00:29:08,920 Speaker 1: an opinion on that. But does it mean that I 639 00:29:08,960 --> 00:29:11,760 Speaker 1: should consider whether I should do what you're doing? Yeah, 640 00:29:11,800 --> 00:29:13,440 Speaker 1: I'd love to know what you're up to and why 641 00:29:13,520 --> 00:29:15,280 Speaker 1: you're doing it so I can see if it fits 642 00:29:15,280 --> 00:29:16,760 Speaker 1: with my values and my beliefs. 643 00:29:16,960 --> 00:29:17,160 Speaker 2: Yeah. 644 00:29:17,200 --> 00:29:18,960 Speaker 1: Like, how awesome is that that we live in a 645 00:29:19,000 --> 00:29:20,680 Speaker 1: world where we have that opportunity? 646 00:29:21,080 --> 00:29:24,200 Speaker 3: One hundred percent? Well said there V Before we do 647 00:29:24,560 --> 00:29:26,680 Speaker 3: wrap this main part of the show and head to 648 00:29:26,680 --> 00:29:30,560 Speaker 3: today's listener question as a bit of an overarching response, 649 00:29:30,640 --> 00:29:33,120 Speaker 3: be do you think fire is something our shoes on 650 00:29:33,120 --> 00:29:35,560 Speaker 3: the money listeners should actually consider pursuing. 651 00:29:35,640 --> 00:29:39,360 Speaker 1: Look, I think saving money is amazing, and investing is amazing, 652 00:29:39,400 --> 00:29:42,400 Speaker 1: and investing smartly are definitely things that we all should 653 00:29:42,400 --> 00:29:45,240 Speaker 1: be doing and celebrating and implementing in our own lives. 654 00:29:45,600 --> 00:29:48,680 Speaker 1: But I'd probably advise a more sustainable approach to money 655 00:29:48,760 --> 00:29:51,120 Speaker 1: so that we can enjoy our lives right now instead 656 00:29:51,160 --> 00:29:53,760 Speaker 1: of just later on. But if you are following Fire 657 00:29:53,880 --> 00:29:55,840 Speaker 1: or you've listened to this and you're like, wow, FIA 658 00:29:55,960 --> 00:29:57,600 Speaker 1: is incredible, because at the end of the day, it 659 00:29:57,680 --> 00:30:00,920 Speaker 1: is like, how great is this concept we can create 660 00:30:01,000 --> 00:30:04,400 Speaker 1: financial freedom for ourselves earlier, Like you might want to 661 00:30:04,520 --> 00:30:07,000 Speaker 1: create financial freedom and then go work in a charity 662 00:30:07,040 --> 00:30:08,680 Speaker 1: for the next thirty years so you can have an 663 00:30:08,680 --> 00:30:11,360 Speaker 1: epic impact on the world. Like I am so here 664 00:30:11,400 --> 00:30:14,120 Speaker 1: for all of that. It just isn't something that I 665 00:30:14,160 --> 00:30:17,320 Speaker 1: am going to personally adopt. But if you're doing Fire, 666 00:30:17,400 --> 00:30:19,600 Speaker 1: can you please post in the Facebook group this week 667 00:30:19,600 --> 00:30:22,120 Speaker 1: about how you're achieving that, because I want to hear it. 668 00:30:22,160 --> 00:30:24,160 Speaker 1: I want to be here for it, and I just 669 00:30:24,280 --> 00:30:27,479 Speaker 1: I'm so interested because it is such a cool concept that, 670 00:30:27,680 --> 00:30:29,400 Speaker 1: you know, I just go to work out how I'd 671 00:30:29,440 --> 00:30:30,480 Speaker 1: adopt into my life. 672 00:30:30,720 --> 00:30:37,520 Speaker 3: Yeah, me, Hi them, you've breached the Ses on the 673 00:30:37,560 --> 00:30:39,760 Speaker 3: Money mailbox. Do you have a money problem you want 674 00:30:39,800 --> 00:30:42,240 Speaker 3: help solving? Do you have the money dilemma you just 675 00:30:42,320 --> 00:30:45,680 Speaker 3: want to chat about? Victoria is here to help. Each week, 676 00:30:45,760 --> 00:30:47,840 Speaker 3: we'll be playing your questions to help make sense of 677 00:30:47,840 --> 00:30:49,880 Speaker 3: a money mess you may have found yourself in. Make 678 00:30:49,920 --> 00:30:51,960 Speaker 3: a quick recording on your phone and send it through 679 00:30:52,040 --> 00:30:54,800 Speaker 3: to podcast at chesothemoney dot com dot au and you 680 00:30:54,880 --> 00:30:57,480 Speaker 3: might even find yourself on the show. But for now, 681 00:30:57,560 --> 00:30:59,000 Speaker 3: here's today's listener question. 682 00:30:59,800 --> 00:31:02,920 Speaker 5: Hey girls, I've both listened to She's on the Money 683 00:31:02,920 --> 00:31:05,320 Speaker 5: over the past couple of weeks, and I love the show, 684 00:31:05,480 --> 00:31:09,080 Speaker 5: so thank you. My question is that because of you guys, 685 00:31:09,240 --> 00:31:12,240 Speaker 5: I'm actually thinking about investing in shares instead of property, 686 00:31:12,280 --> 00:31:15,080 Speaker 5: which I always thought i'd do. But I was wondering 687 00:31:15,120 --> 00:31:17,680 Speaker 5: if you could maybe expand a bit more on where 688 00:31:17,680 --> 00:31:19,760 Speaker 5: we should start as first time investors. 689 00:31:20,480 --> 00:31:23,320 Speaker 3: Victoria, obviously I am not the person to be answering 690 00:31:23,480 --> 00:31:24,120 Speaker 3: this question. 691 00:31:24,280 --> 00:31:26,360 Speaker 1: By not, well, I mean you could take. 692 00:31:26,240 --> 00:31:28,320 Speaker 3: My advice, but I'm not sure it would be that useful. 693 00:31:28,640 --> 00:31:31,680 Speaker 3: Before we do get into it, I know that you've 694 00:31:31,720 --> 00:31:35,000 Speaker 3: recently been talking about property and you're kind of known 695 00:31:35,040 --> 00:31:38,960 Speaker 3: as the shares guru, Like that's your way of creating wealth. 696 00:31:39,200 --> 00:31:40,560 Speaker 3: Can you talk to me a little bit about what 697 00:31:40,560 --> 00:31:41,320 Speaker 3: you're doing at the moment? 698 00:31:41,640 --> 00:31:45,160 Speaker 1: I feel attacked here, Georgia King, But I am currently 699 00:31:45,480 --> 00:31:49,600 Speaker 1: looking at purchasing my first property, which you know, I'd 700 00:31:49,680 --> 00:31:51,960 Speaker 1: love to share more information about when I have more 701 00:31:51,960 --> 00:31:55,440 Speaker 1: information with it. But obviously I am wildly passionate about 702 00:31:55,440 --> 00:31:58,000 Speaker 1: shares and will continue to be so. But purchasing a 703 00:31:58,040 --> 00:32:01,160 Speaker 1: property is in line with my partners values and now 704 00:32:01,320 --> 00:32:03,640 Speaker 1: is something that I'm like, yep, cool, I would absolutely 705 00:32:03,680 --> 00:32:05,920 Speaker 1: love to do that, But it doesn't mean we aren't 706 00:32:05,920 --> 00:32:09,120 Speaker 1: investing in shares as well. I do think, you know, 707 00:32:09,200 --> 00:32:11,680 Speaker 1: looking at it from a more holistic point of view, 708 00:32:12,120 --> 00:32:15,400 Speaker 1: like one or the other is often something that we 709 00:32:15,440 --> 00:32:17,800 Speaker 1: are choosing at the very start of our journey because 710 00:32:17,800 --> 00:32:19,640 Speaker 1: we can't afford to do it all and we can't. 711 00:32:19,680 --> 00:32:22,360 Speaker 1: Like our listener, she's like, yep, cool, I'm thinking about 712 00:32:22,360 --> 00:32:25,680 Speaker 1: investing in shares instead of property, because you know, maybe 713 00:32:25,720 --> 00:32:27,240 Speaker 1: she can't afford to do both. At the end of 714 00:32:27,240 --> 00:32:30,880 Speaker 1: the day, home deposits are incredibly expensive, like it takes 715 00:32:30,960 --> 00:32:33,320 Speaker 1: ages to save up for them. But I think it's 716 00:32:33,360 --> 00:32:36,520 Speaker 1: also really important to note that whilst property is really 717 00:32:36,600 --> 00:32:39,280 Speaker 1: expensive to get in the door with, it's also an 718 00:32:39,360 --> 00:32:44,480 Speaker 1: ongoing financial commitment. So you are committing to usually thirty 719 00:32:44,560 --> 00:32:47,520 Speaker 1: years worth of home loan repayments, and that's something that 720 00:32:47,560 --> 00:32:49,680 Speaker 1: you can't just skip one month because you want to 721 00:32:49,720 --> 00:32:51,920 Speaker 1: go on a holiday, or skip one month because your 722 00:32:51,960 --> 00:32:54,520 Speaker 1: car broke down and you need that money to you know, 723 00:32:54,560 --> 00:32:57,200 Speaker 1: go towards new tires or whatever it is. So I 724 00:32:57,200 --> 00:33:00,280 Speaker 1: think it's really important to actually point out that, yes, 725 00:33:00,520 --> 00:33:03,120 Speaker 1: investing in shares is something I'm passionate about, but I'm 726 00:33:03,160 --> 00:33:05,360 Speaker 1: passionate about it because it's in line with my values, 727 00:33:05,560 --> 00:33:09,560 Speaker 1: and that is having flexibility around creating my future wealth. 728 00:33:09,840 --> 00:33:11,720 Speaker 1: I know that, you know, if one month I can't 729 00:33:11,760 --> 00:33:14,840 Speaker 1: afford to invest in the share market, I just don't, 730 00:33:14,920 --> 00:33:16,800 Speaker 1: and there's no bank coming for me because I didn't 731 00:33:16,800 --> 00:33:19,960 Speaker 1: pay my mortgage or payment, and there's no ongoing commitment 732 00:33:20,040 --> 00:33:22,960 Speaker 1: for me. So, yes, property is something that I'm looking into, 733 00:33:23,000 --> 00:33:25,440 Speaker 1: but it is definitely something that I don't want a 734 00:33:25,480 --> 00:33:28,440 Speaker 1: majority of my wealth going into because I just feel 735 00:33:28,440 --> 00:33:30,720 Speaker 1: like I don't want such a big commitment. But if 736 00:33:30,760 --> 00:33:33,720 Speaker 1: you are a first timer, right, if you're someone who's 737 00:33:33,760 --> 00:33:36,160 Speaker 1: getting into the market for the first time and you're 738 00:33:36,200 --> 00:33:39,440 Speaker 1: not even sure where to start, one, listen to our 739 00:33:39,480 --> 00:33:43,280 Speaker 1: podcasts in season one about investing get a good understanding 740 00:33:43,320 --> 00:33:45,640 Speaker 1: of why you want to invest. Like earlier in this episode, 741 00:33:45,680 --> 00:33:48,800 Speaker 1: Georgia I explained that I have a client and she's 742 00:33:48,800 --> 00:33:51,080 Speaker 1: a brand new client, and we really had to deep 743 00:33:51,160 --> 00:33:53,959 Speaker 1: dive into why she wants to invest in, Like what 744 00:33:54,000 --> 00:33:56,680 Speaker 1: are we trying to create and understand that? Like are 745 00:33:56,720 --> 00:33:59,760 Speaker 1: you investing so that you can retire? Are you in 746 00:34:00,600 --> 00:34:03,200 Speaker 1: because you want your money to work for you while 747 00:34:03,240 --> 00:34:06,600 Speaker 1: you aren't buying property. Maybe your ultimate dream is to 748 00:34:06,600 --> 00:34:08,359 Speaker 1: buy property, but you want to do that in ten 749 00:34:08,480 --> 00:34:10,520 Speaker 1: or fifteen years because it's not something aligned to your 750 00:34:10,600 --> 00:34:14,120 Speaker 1: values right now. Maybe you're waiting for that, but you 751 00:34:14,160 --> 00:34:17,200 Speaker 1: want your money to be working hard while you're getting 752 00:34:17,320 --> 00:34:19,479 Speaker 1: to that point in your life. Like, all of these 753 00:34:19,480 --> 00:34:22,399 Speaker 1: things are really good options, and all of these things 754 00:34:22,400 --> 00:34:25,680 Speaker 1: are really valid reasons for investing, but it's important that 755 00:34:25,760 --> 00:34:28,880 Speaker 1: we understand why we are investing in the first place, 756 00:34:28,920 --> 00:34:30,920 Speaker 1: so that we can then pick assets that are in 757 00:34:30,960 --> 00:34:35,320 Speaker 1: line with those goals. Obviously, we're going to be taking 758 00:34:35,800 --> 00:34:38,239 Speaker 1: low levels of risk because I would never recommend that 759 00:34:38,239 --> 00:34:40,480 Speaker 1: someone just take a punt on a share, even though 760 00:34:40,640 --> 00:34:43,320 Speaker 1: you know, we hear really great stories like Georgia. A 761 00:34:43,360 --> 00:34:45,320 Speaker 1: couple of months ago, we saw a really great post 762 00:34:45,360 --> 00:34:47,279 Speaker 1: in our Facebook group of someone being like, oh my gosh, 763 00:34:47,320 --> 00:34:49,520 Speaker 1: I bought after pay it like four dollars fifty and 764 00:34:49,560 --> 00:34:52,719 Speaker 1: I've made this massive return and that's great, But that 765 00:34:52,800 --> 00:34:56,080 Speaker 1: doesn't mean that that is something that is sustainable nor 766 00:34:56,200 --> 00:34:59,640 Speaker 1: a good idea because it's so volatile, like that has 767 00:34:59,640 --> 00:35:02,319 Speaker 1: gone again, and you know, is that something that we 768 00:35:02,320 --> 00:35:05,280 Speaker 1: can sustain? Like we can't time the market. So obviously 769 00:35:05,280 --> 00:35:08,160 Speaker 1: we can't tell you what to invest in because we 770 00:35:08,200 --> 00:35:12,080 Speaker 1: don't actually understand you your financial goals, what you're actually 771 00:35:12,120 --> 00:35:14,399 Speaker 1: looking to achieve. And that's something that's so hard about 772 00:35:14,400 --> 00:35:17,160 Speaker 1: this podcast, right. I would adore it if I could 773 00:35:17,160 --> 00:35:18,440 Speaker 1: get on here and be like, all right, guys, so 774 00:35:18,520 --> 00:35:20,239 Speaker 1: this is how you set up a share portfolio. This 775 00:35:20,280 --> 00:35:22,080 Speaker 1: is exactly what shares you're going to buy, This is 776 00:35:22,120 --> 00:35:25,120 Speaker 1: how it is, Like I would love that, but there's 777 00:35:25,160 --> 00:35:28,759 Speaker 1: so many different components of investing, like how long are 778 00:35:28,760 --> 00:35:31,160 Speaker 1: you going to invest, how old are you, how much 779 00:35:31,200 --> 00:35:33,239 Speaker 1: do you have to invest, what types of assets do 780 00:35:33,280 --> 00:35:35,840 Speaker 1: you want in your portfolio? Are you an ethical investor? 781 00:35:35,880 --> 00:35:38,560 Speaker 1: Are you not an ethical investor? What type of risk 782 00:35:38,640 --> 00:35:41,560 Speaker 1: are you able to take on? How long for? What 783 00:35:41,640 --> 00:35:44,080 Speaker 1: does risk look like to you? What other assets do 784 00:35:44,120 --> 00:35:46,239 Speaker 1: you have? What does your future look like like? How 785 00:35:46,320 --> 00:35:49,719 Speaker 1: much do you earn? All of these things come into consideration, 786 00:35:50,040 --> 00:35:52,520 Speaker 1: and I think that you know it's far more complex, 787 00:35:52,920 --> 00:35:55,799 Speaker 1: but working out your own financial situation than picking an 788 00:35:55,840 --> 00:35:58,640 Speaker 1: asset class that works for you is really important. So 789 00:35:58,640 --> 00:36:00,920 Speaker 1: if you're picking shares and you realize that that is 790 00:36:00,960 --> 00:36:04,000 Speaker 1: aligned to you, first things first, I would either look 791 00:36:04,120 --> 00:36:07,879 Speaker 1: into different investing platforms, get a love for our Facebook group, 792 00:36:08,239 --> 00:36:10,719 Speaker 1: understand what is going on and you know, what are 793 00:36:10,719 --> 00:36:14,800 Speaker 1: other people doing, learning from their journeys, and then potentially 794 00:36:14,840 --> 00:36:18,480 Speaker 1: seeing a financial advisor. Because if you are choosing shares 795 00:36:18,560 --> 00:36:21,799 Speaker 1: instead of property, I'm assuming we're not talking about you know, 796 00:36:21,960 --> 00:36:24,960 Speaker 1: I've got a thousand dollars to invest. I'm assuming that 797 00:36:25,040 --> 00:36:29,120 Speaker 1: you have potentially enough cash flow to create an asset 798 00:36:29,239 --> 00:36:31,920 Speaker 1: would potentially be worth a property. And if you're talking 799 00:36:31,960 --> 00:36:34,719 Speaker 1: to me about that get financial advice. It will be 800 00:36:34,800 --> 00:36:35,800 Speaker 1: worth its wait in gold. 801 00:36:36,000 --> 00:36:40,120 Speaker 3: Love that micro investing platforms beak get a lot of 802 00:36:40,280 --> 00:36:44,080 Speaker 3: love in our group they do. Are they a good 803 00:36:44,120 --> 00:36:47,920 Speaker 3: option for this listener? Or is that a different game completely? 804 00:36:48,000 --> 00:36:50,480 Speaker 1: So you're right, Georgia. Micro investing platforms are a bit 805 00:36:50,480 --> 00:36:52,960 Speaker 1: of a different game because they aren't meant to hold 806 00:36:53,000 --> 00:36:57,120 Speaker 1: your entire wealth like they are micro investing platforms for 807 00:36:57,120 --> 00:36:59,359 Speaker 1: a reason, and the whole point is to invest either 808 00:36:59,600 --> 00:37:02,680 Speaker 1: your all change or you know, additional amounts of money. 809 00:37:02,880 --> 00:37:06,560 Speaker 1: But at the same time, I love micro investing platforms. 810 00:37:06,880 --> 00:37:10,360 Speaker 1: I use them myself. Obviously I can't recommend specific ones 811 00:37:10,719 --> 00:37:13,520 Speaker 1: because I am a financial advisor, but I just think 812 00:37:13,560 --> 00:37:16,840 Speaker 1: that they are a fantastic place for first time investors 813 00:37:16,880 --> 00:37:18,920 Speaker 1: to start having a bit of a play around and 814 00:37:19,000 --> 00:37:22,400 Speaker 1: seeing what is the investment market, like, like what assets 815 00:37:22,400 --> 00:37:25,759 Speaker 1: do these investing platforms invest in? What does this mean? 816 00:37:25,800 --> 00:37:28,959 Speaker 1: And like you guys know that I use personally Rais 817 00:37:29,000 --> 00:37:32,320 Speaker 1: and Spaceship, and I don't use them for my actual 818 00:37:32,520 --> 00:37:35,240 Speaker 1: share portfolio. I use Spaceship as like a small amount 819 00:37:35,280 --> 00:37:36,479 Speaker 1: just so I can have a bit of a play 820 00:37:36,480 --> 00:37:38,439 Speaker 1: with it because I am a bit of an investing nerd, 821 00:37:38,440 --> 00:37:43,000 Speaker 1: and I also use rays as my roundups on my purchases, 822 00:37:43,040 --> 00:37:46,080 Speaker 1: and then, as you guys know already, I usually take 823 00:37:46,200 --> 00:37:48,759 Speaker 1: that amount of money when it has reached a certain sum, 824 00:37:48,800 --> 00:37:51,840 Speaker 1: and I invest it in my bigger portfolio. But I 825 00:37:52,040 --> 00:37:54,759 Speaker 1: find them really great at getting your head around first 826 00:37:54,800 --> 00:37:57,600 Speaker 1: time investing, like what does a share portfolio look like? 827 00:37:57,719 --> 00:38:01,439 Speaker 1: On Raise, you're able to choose your investment platform, You're 828 00:38:01,440 --> 00:38:04,360 Speaker 1: able to choose which portfolio is in line with your values, 829 00:38:04,440 --> 00:38:06,799 Speaker 1: and you're able to actually go in and learn a 830 00:38:06,800 --> 00:38:08,600 Speaker 1: bit more about it. And I think that you know, 831 00:38:08,680 --> 00:38:11,320 Speaker 1: that's probably why they're so loved in our group, because 832 00:38:11,320 --> 00:38:14,400 Speaker 1: they're accessible because you can start investing with as little 833 00:38:14,400 --> 00:38:16,759 Speaker 1: as five dollars. But then also you're able to kind 834 00:38:16,760 --> 00:38:19,279 Speaker 1: of follow the market and see how your portfolio goes 835 00:38:19,360 --> 00:38:21,720 Speaker 1: up and down. So when you do start investing larger 836 00:38:21,760 --> 00:38:25,440 Speaker 1: amounts of money, you're not feeling overwhelmed by the concepts 837 00:38:25,480 --> 00:38:27,480 Speaker 1: because you're already quite familiar with them. 838 00:38:27,719 --> 00:38:31,080 Speaker 3: Really well said, they're VSE. So yeah, I guess have 839 00:38:31,160 --> 00:38:35,320 Speaker 3: a go with the micro investing platforms and it's exciting. 840 00:38:35,400 --> 00:38:38,120 Speaker 3: I guess that she's going to start looking at shares. 841 00:38:38,040 --> 00:38:40,719 Speaker 1: I think it's exciting, but that's me and I'm obsessed, 842 00:38:40,840 --> 00:38:44,200 Speaker 1: so you are. Let's move on, jodge your king. 843 00:38:47,800 --> 00:38:50,240 Speaker 3: Now let's take a sneak peek into the financial lives 844 00:38:50,280 --> 00:38:53,560 Speaker 3: of perfect strangers. It's time for money diaries. 845 00:38:54,040 --> 00:38:56,279 Speaker 2: Hi, I'm the twenty four year old come back kid 846 00:38:56,440 --> 00:38:57,680 Speaker 2: and this is my money diary. 847 00:38:58,000 --> 00:39:01,120 Speaker 4: So six months ago of as. 848 00:39:01,480 --> 00:39:05,080 Speaker 2: This COVID situation was beginning to pop off, I was 849 00:39:05,760 --> 00:39:11,040 Speaker 2: in an abusive relationship and crashing at that person's house 850 00:39:11,680 --> 00:39:14,759 Speaker 2: and so sort of, as we were all dealing with 851 00:39:15,040 --> 00:39:18,680 Speaker 2: this worldwide pandemic, I also became unemployed. 852 00:39:18,800 --> 00:39:22,920 Speaker 4: And yeah, in the space of sort of between the two. 853 00:39:22,880 --> 00:39:26,680 Speaker 2: Lockdowns in Melbourne, I moved into my first rental with 854 00:39:26,960 --> 00:39:31,239 Speaker 2: two of my wonderful friends, and I also got my 855 00:39:31,320 --> 00:39:32,200 Speaker 2: driver's license. 856 00:39:32,480 --> 00:39:35,280 Speaker 4: I met a new wonderful. 857 00:39:34,719 --> 00:39:38,520 Speaker 2: Partner, and I got a job pretty much my dream 858 00:39:38,560 --> 00:39:42,720 Speaker 2: job as well. After what was almost yes, seven months 859 00:39:42,760 --> 00:39:46,479 Speaker 2: of unemployment, I landed a job That's all I could 860 00:39:46,480 --> 00:39:51,040 Speaker 2: have ever wanted. So now I'm feeling financially secure and 861 00:39:51,520 --> 00:39:54,160 Speaker 2: I guess quite positive about the outlook of the rest 862 00:39:54,160 --> 00:39:57,360 Speaker 2: of the year and how life is looking compared to 863 00:39:57,400 --> 00:39:59,120 Speaker 2: what it was many months ago. 864 00:40:00,040 --> 00:40:00,880 Speaker 4: Yeah, it's really great. 865 00:40:01,160 --> 00:40:04,160 Speaker 3: So to get started, we asked what she does for 866 00:40:04,280 --> 00:40:06,480 Speaker 3: work now and how much she is earning. 867 00:40:06,920 --> 00:40:11,560 Speaker 2: So I work in human resources, but only got this 868 00:40:11,719 --> 00:40:14,560 Speaker 2: job within the last month. Prior to that, I've been 869 00:40:14,880 --> 00:40:18,720 Speaker 2: unemployed for the last seven months, and I'm earning fifty 870 00:40:18,760 --> 00:40:23,200 Speaker 2: five thousand a year plus super and I have about 871 00:40:23,280 --> 00:40:28,560 Speaker 2: twenty four thousand in various savings accounts plus and money 872 00:40:28,560 --> 00:40:29,279 Speaker 2: in chairs. 873 00:40:29,560 --> 00:40:32,160 Speaker 3: And what happens to that money once it hits her account? 874 00:40:32,360 --> 00:40:37,839 Speaker 2: I transfer money to my house account for rent and bills, 875 00:40:37,920 --> 00:40:40,040 Speaker 2: and all the house bills they get direct debited from 876 00:40:40,080 --> 00:40:44,560 Speaker 2: the house account. And then at the moment, actually I 877 00:40:44,600 --> 00:40:48,839 Speaker 2: transfer each week, my partner and I have been transferring 878 00:40:49,320 --> 00:40:52,200 Speaker 2: like twenty to thirty dollars or whatever we've sort of 879 00:40:52,239 --> 00:40:56,440 Speaker 2: got leftover to a separate, like fun account that we're 880 00:40:56,480 --> 00:40:58,600 Speaker 2: going to use to spend when we can eventually like 881 00:40:58,760 --> 00:41:01,600 Speaker 2: go out for dinner and do e normal things. So 882 00:41:01,719 --> 00:41:03,720 Speaker 2: put a little bit of money in there, and then 883 00:41:04,080 --> 00:41:06,640 Speaker 2: my tactic at the moment is kind of just whatever's 884 00:41:06,719 --> 00:41:09,080 Speaker 2: left at the end of the month, I transfer to savings. 885 00:41:09,200 --> 00:41:11,880 Speaker 3: How does she feel about investing? Does she invest? And 886 00:41:11,960 --> 00:41:15,080 Speaker 3: if so, how I have some money in shares. 887 00:41:15,160 --> 00:41:20,160 Speaker 2: So I put money in a comsext share portfolio about 888 00:41:20,200 --> 00:41:24,080 Speaker 2: three years ago, I think, and before covid times it 889 00:41:24,200 --> 00:41:27,279 Speaker 2: was up to about eleven and a half grand, but 890 00:41:27,400 --> 00:41:31,920 Speaker 2: now it's gone down a significant amount as everyone's so 891 00:41:32,040 --> 00:41:34,919 Speaker 2: that's awesome. But I think I probably put my money 892 00:41:34,960 --> 00:41:38,040 Speaker 2: into those shares when I wasn't one hundred percent informed 893 00:41:38,080 --> 00:41:41,920 Speaker 2: about the ins and outs of the process, and also 894 00:41:42,600 --> 00:41:46,719 Speaker 2: I guess what the individual companies were within that share portfolio. 895 00:41:46,760 --> 00:41:48,320 Speaker 4: I kind of just was like, Yep. 896 00:41:48,239 --> 00:41:52,320 Speaker 2: This is a steady, conservative growth kind of portfolio. 897 00:41:52,560 --> 00:41:55,040 Speaker 4: Sounds good put my money in, rather than. 898 00:41:54,920 --> 00:41:58,799 Speaker 2: Sort of investigating the individual companies and how much they 899 00:41:58,840 --> 00:42:02,520 Speaker 2: aligned to my particular roles and things like that. So 900 00:42:02,560 --> 00:42:04,680 Speaker 2: I think I do want to invest more when I'm 901 00:42:04,840 --> 00:42:08,440 Speaker 2: a bit more settled financially, but when I do be 902 00:42:08,520 --> 00:42:13,399 Speaker 2: a lot more informed and I guess particular about which specific. 903 00:42:13,080 --> 00:42:15,520 Speaker 4: Companies I want to be putting my money towards. 904 00:42:15,640 --> 00:42:18,600 Speaker 3: I guess, does the comeback Kid have any debts? 905 00:42:18,840 --> 00:42:23,080 Speaker 2: I only have a hex step from my psychology Bachelor, 906 00:42:23,320 --> 00:42:26,200 Speaker 2: which was I think it's about thirty five grand or so, 907 00:42:27,080 --> 00:42:30,680 Speaker 2: but no other debts, and I don't plan on having 908 00:42:30,719 --> 00:42:34,000 Speaker 2: any other debts until I get a mortgage or something. 909 00:42:34,840 --> 00:42:36,440 Speaker 3: What is her worst money habit? 910 00:42:36,640 --> 00:42:40,439 Speaker 2: My worst money habit would be that I definitely get 911 00:42:40,440 --> 00:42:45,000 Speaker 2: caught up, not this year, let's say normal social existences, 912 00:42:45,040 --> 00:42:48,080 Speaker 2: getting caught up in social sort of situations. And I 913 00:42:48,239 --> 00:42:51,239 Speaker 2: find it hard saying no to things. I definitely get 914 00:42:51,280 --> 00:42:54,920 Speaker 2: the fomo feelings. And I don't like saying no to 915 00:42:55,520 --> 00:42:58,520 Speaker 2: events or dinners out or things like that. 916 00:42:58,640 --> 00:43:01,799 Speaker 4: And I like everyone around me to be having a. 917 00:43:01,719 --> 00:43:04,160 Speaker 2: Good time, so I'm willing to spend the money to 918 00:43:04,200 --> 00:43:05,960 Speaker 2: make sure that people are having a good time. 919 00:43:06,760 --> 00:43:10,719 Speaker 4: And also, I would say I have pretty expensive. 920 00:43:10,440 --> 00:43:14,719 Speaker 2: Tastes in food that would be my guilty pleasure and 921 00:43:14,800 --> 00:43:16,840 Speaker 2: I'm not quite willingked to negotiate on. 922 00:43:18,000 --> 00:43:19,960 Speaker 3: And what is her best money habit? 923 00:43:20,080 --> 00:43:24,200 Speaker 2: I would say I've always been a very thoughtful saver 924 00:43:24,480 --> 00:43:29,719 Speaker 2: and spender. I'm never spontaneous with my spending, and I 925 00:43:29,840 --> 00:43:33,360 Speaker 2: do you know, I apply the rule of wait a 926 00:43:33,440 --> 00:43:36,080 Speaker 2: day or two days if you're thinking about buying, particularly 927 00:43:36,120 --> 00:43:38,719 Speaker 2: like clothes and items and things like that that I 928 00:43:38,719 --> 00:43:43,560 Speaker 2: wouldn't have an inherent need for. Perhaps I like to 929 00:43:43,600 --> 00:43:46,879 Speaker 2: really ponder and think about things like that. And yeah, 930 00:43:46,920 --> 00:43:50,280 Speaker 2: I just have always I hate the feeling of regret 931 00:43:50,320 --> 00:43:53,319 Speaker 2: more than any other feeling in the world, and that 932 00:43:53,800 --> 00:43:56,520 Speaker 2: translates to money regrets. So I don't ever like spending 933 00:43:56,520 --> 00:43:59,879 Speaker 2: money and then the next day going, oh my god, 934 00:44:00,000 --> 00:44:02,719 Speaker 2: why did I do that? So that truth to me 935 00:44:02,920 --> 00:44:06,399 Speaker 2: just being really careful before I before I spend anything big. 936 00:44:06,640 --> 00:44:08,719 Speaker 3: What is the comeback big money goal? 937 00:44:09,000 --> 00:44:12,239 Speaker 2: I guess after the year that it's been and has 938 00:44:12,440 --> 00:44:15,200 Speaker 2: been such a financially stressful year, my goal at the 939 00:44:15,280 --> 00:44:17,359 Speaker 2: moment is just sort of to save so that I 940 00:44:17,440 --> 00:44:21,640 Speaker 2: have some money to enjoy, if that makes sense, Like 941 00:44:21,680 --> 00:44:24,200 Speaker 2: I just want to sort of build up a savings 942 00:44:24,760 --> 00:44:27,960 Speaker 2: account that I can then yeah, spend on the things 943 00:44:28,080 --> 00:44:31,359 Speaker 2: that bring me joy and eventually where we can you know, 944 00:44:31,480 --> 00:44:33,799 Speaker 2: do these nice things again and go out and do 945 00:44:33,880 --> 00:44:36,480 Speaker 2: all the normal bits and pieces to be able to 946 00:44:36,800 --> 00:44:41,240 Speaker 2: just spend that money and not feel stressed or guilty 947 00:44:41,280 --> 00:44:45,960 Speaker 2: about it. So it's not particularly saving for one, you know, 948 00:44:46,040 --> 00:44:48,520 Speaker 2: one big purchase or anything like that, but just sort 949 00:44:48,520 --> 00:44:51,360 Speaker 2: of like saving to be able to enjoy it again, 950 00:44:51,520 --> 00:44:55,480 Speaker 2: because I would say, this whole year, I haven't enjoyed 951 00:44:55,560 --> 00:44:57,319 Speaker 2: spending money and whatsoever. 952 00:44:57,520 --> 00:44:58,520 Speaker 4: It's just been a stress. 953 00:44:58,560 --> 00:45:00,960 Speaker 2: It hasn't been anything that's brought me sort of you know, 954 00:45:01,040 --> 00:45:04,000 Speaker 2: any freedom or joy or anything. 955 00:45:04,480 --> 00:45:07,000 Speaker 3: And finally, what grade would a comeback kid give her 956 00:45:07,040 --> 00:45:08,120 Speaker 3: money habits? 957 00:45:08,320 --> 00:45:11,279 Speaker 2: I would rate my money habits I think as a 958 00:45:11,480 --> 00:45:15,759 Speaker 2: b pluff because my saving sort of plans are just 959 00:45:15,880 --> 00:45:19,120 Speaker 2: very ad hoc and just save as much as you can. 960 00:45:19,400 --> 00:45:22,600 Speaker 4: I definitely could be budgeting things more and. 961 00:45:22,600 --> 00:45:26,200 Speaker 2: Being a bit more aware of what's coming in and 962 00:45:26,239 --> 00:45:28,319 Speaker 2: where I can put it. I don't think I would 963 00:45:28,360 --> 00:45:31,719 Speaker 2: recognize the situation that I'm in now. It's like I 964 00:45:31,840 --> 00:45:36,759 Speaker 2: transformed my world from being dependent on other people and 965 00:45:36,840 --> 00:45:41,640 Speaker 2: dependent on other things and just not free or safe 966 00:45:41,640 --> 00:45:43,520 Speaker 2: in any sense of the word, to complete. 967 00:45:44,280 --> 00:45:45,719 Speaker 4: I'm completely independent. 968 00:45:45,880 --> 00:45:49,359 Speaker 2: My life is run for me by me the way 969 00:45:49,400 --> 00:45:52,680 Speaker 2: I want it to be, and I also just feel 970 00:45:52,719 --> 00:45:57,560 Speaker 2: like I'm capable of looking after myself and making making 971 00:45:57,560 --> 00:45:59,120 Speaker 2: the rest of my life the way that I want 972 00:45:59,160 --> 00:46:00,920 Speaker 2: it to look. I don't think if you had have 973 00:46:00,960 --> 00:46:03,520 Speaker 2: told me in March of this year that I would 974 00:46:03,520 --> 00:46:05,839 Speaker 2: be in the position that I am now, I don't 975 00:46:05,840 --> 00:46:07,719 Speaker 2: think I would have believed you. I thought for a 976 00:46:07,840 --> 00:46:10,160 Speaker 2: very long time that I was stuck in that situation 977 00:46:10,440 --> 00:46:13,080 Speaker 2: that I was in, and that one of the reasons 978 00:46:13,080 --> 00:46:15,919 Speaker 2: that I found it quite hard to leave that relationship 979 00:46:16,000 --> 00:46:19,160 Speaker 2: was because I didn't have an income and I didn't 980 00:46:19,160 --> 00:46:21,759 Speaker 2: know where I was going to live, So that was 981 00:46:21,800 --> 00:46:22,879 Speaker 2: something that kept me there. 982 00:46:23,040 --> 00:46:27,040 Speaker 4: And if you had told me, Yeah, if you had 983 00:46:27,120 --> 00:46:27,719 Speaker 4: told me that it. 984 00:46:27,640 --> 00:46:32,080 Speaker 2: Would have been possible and worked so wonderfully and so 985 00:46:32,360 --> 00:46:35,880 Speaker 2: well and the way that it has, I would have 986 00:46:35,920 --> 00:46:40,279 Speaker 2: felt so secure in leaving earlier, because yeah, God, I've 987 00:46:40,320 --> 00:46:42,160 Speaker 2: just made the life of myself that I never really 988 00:46:42,160 --> 00:46:43,040 Speaker 2: would have imagined. 989 00:46:43,520 --> 00:46:45,600 Speaker 4: So it's amazing. 990 00:46:45,719 --> 00:46:50,600 Speaker 3: It's awesome, Victoria, what a money diarist? Where do we begin? 991 00:46:50,640 --> 00:46:51,520 Speaker 3: What did you think? Oh? 992 00:46:51,520 --> 00:46:54,120 Speaker 1: My gosh, I loved her. What a journey though, Yeah, 993 00:46:54,160 --> 00:46:57,640 Speaker 1: I loved hearing all of that. I honestly am so 994 00:46:57,800 --> 00:47:01,600 Speaker 1: in awe of people who changed their situations and you know, 995 00:47:01,719 --> 00:47:04,160 Speaker 1: actually go through stuff like that. To have been in 996 00:47:04,200 --> 00:47:07,279 Speaker 1: an abusive relationship to now six months later being in 997 00:47:07,320 --> 00:47:10,920 Speaker 1: a completely different situation, like, it's inspiring, Like, and I 998 00:47:10,960 --> 00:47:12,880 Speaker 1: think that it's inspiring for someone like me who's not 999 00:47:12,960 --> 00:47:15,600 Speaker 1: in that position. But then also hopefully if people are 1000 00:47:15,640 --> 00:47:18,839 Speaker 1: listening and they are in similar positions like hearing other 1001 00:47:18,840 --> 00:47:21,359 Speaker 1: people who have gone through situations like that and are 1002 00:47:21,360 --> 00:47:24,359 Speaker 1: now in bigger, better positions, Like she has her dream job, 1003 00:47:24,440 --> 00:47:27,480 Speaker 1: she's got savings, she said she was investing, Like you know, 1004 00:47:27,640 --> 00:47:29,840 Speaker 1: she said, I've got thirty five grand of hextet, Like 1005 00:47:29,840 --> 00:47:31,480 Speaker 1: I never want to be in this position again, Like 1006 00:47:31,719 --> 00:47:34,440 Speaker 1: what a queen. I can't I can't love her more 1007 00:47:34,480 --> 00:47:37,680 Speaker 1: like and you know how confident she was, like her voice, 1008 00:47:37,840 --> 00:47:39,600 Speaker 1: like you could just hear that she was a happy 1009 00:47:39,680 --> 00:47:40,760 Speaker 1: person like I want. 1010 00:47:40,640 --> 00:47:41,799 Speaker 3: And that she'd come a long way. 1011 00:47:42,000 --> 00:47:44,640 Speaker 1: Yeah, she'd comes so far. And I think that, you know, 1012 00:47:44,760 --> 00:47:48,160 Speaker 1: it's so easy to judge people because you look at 1013 00:47:48,200 --> 00:47:50,160 Speaker 1: her situation and you break it down, you're like, wow, 1014 00:47:50,320 --> 00:47:53,080 Speaker 1: Like she's got a lot of savings. Why didn't she 1015 00:47:53,239 --> 00:47:56,680 Speaker 1: just leave her relationship? You don't know their relationship, you 1016 00:47:56,719 --> 00:47:59,640 Speaker 1: don't know their situation, you don't know what's going on. 1017 00:47:59,760 --> 00:48:02,319 Speaker 1: And I think something that really grinds my gears is 1018 00:48:02,320 --> 00:48:05,080 Speaker 1: when people say, well, why didn't you leave earlier? Like 1019 00:48:05,160 --> 00:48:08,560 Speaker 1: that's a really privileged position to be in, regardless of finance, 1020 00:48:08,640 --> 00:48:12,080 Speaker 1: regardless of anything. Just saying oh, well, why didn't you 1021 00:48:12,120 --> 00:48:14,719 Speaker 1: leave is ridiculous. But the fact that she found a 1022 00:48:14,800 --> 00:48:17,560 Speaker 1: time that she could leave, that she you know, had 1023 00:48:17,600 --> 00:48:19,480 Speaker 1: a place to fall and she had some ducks in 1024 00:48:19,520 --> 00:48:21,640 Speaker 1: a row and she moved in with her sister and 1025 00:48:21,800 --> 00:48:23,879 Speaker 1: you know them was looking for a place. Like none 1026 00:48:23,960 --> 00:48:26,760 Speaker 1: of that is easy. All of that is really hard. 1027 00:48:27,040 --> 00:48:29,160 Speaker 1: And to have gone through that and be coming out 1028 00:48:29,200 --> 00:48:31,279 Speaker 1: on the other side and be this happy, and I'm 1029 00:48:31,280 --> 00:48:33,480 Speaker 1: sure there are still things that she's sorting through, but 1030 00:48:34,000 --> 00:48:36,560 Speaker 1: you know, to come out in that position, like I'm 1031 00:48:36,600 --> 00:48:39,440 Speaker 1: so proud of her. That honestly would have required so 1032 00:48:39,440 --> 00:48:43,359 Speaker 1: so much work, like mentally, physically, like everything like that 1033 00:48:43,480 --> 00:48:44,279 Speaker 1: is so hard to. 1034 00:48:44,239 --> 00:48:47,200 Speaker 3: Go through, and even to share it on the podcast 1035 00:48:47,200 --> 00:48:49,600 Speaker 3: with our listeners, I think is a beautiful thing to do. 1036 00:48:49,760 --> 00:48:52,480 Speaker 1: So, oh my gosh, I cannot tell you how grateful 1037 00:48:52,480 --> 00:48:55,319 Speaker 1: I am for our money diarists. And that's why they're anonymous, right, 1038 00:48:55,400 --> 00:48:57,680 Speaker 1: Like I don't need to know what your name is, 1039 00:48:57,880 --> 00:48:59,960 Speaker 1: or you know where you come from or where you leave. 1040 00:49:00,160 --> 00:49:03,800 Speaker 1: Obviously she's not living in Melbourne though you're king given 1041 00:49:03,920 --> 00:49:06,400 Speaker 1: us she's going out and we are not allowed to 1042 00:49:06,440 --> 00:49:10,960 Speaker 1: do that, so give you a clue. But yeah, I 1043 00:49:11,120 --> 00:49:13,600 Speaker 1: just I'm always in awe of the money diarists and 1044 00:49:13,640 --> 00:49:16,560 Speaker 1: their willingness to share information with us to learn from, 1045 00:49:16,600 --> 00:49:19,799 Speaker 1: Like we are so lucky these stories are so beautiful 1046 00:49:19,880 --> 00:49:23,320 Speaker 1: and like hearing them in their own voices. Yeah ah, 1047 00:49:23,440 --> 00:49:24,000 Speaker 1: I love it. 1048 00:49:24,120 --> 00:49:28,920 Speaker 3: Yeah, warm and fuzzies. From the financial perspective, V, so 1049 00:49:29,000 --> 00:49:31,799 Speaker 3: she does have twenty four thousand dollars in savings as 1050 00:49:31,840 --> 00:49:35,680 Speaker 3: a twenty four year old. She started investing at twenty one, 1051 00:49:35,760 --> 00:49:37,680 Speaker 3: so she's doing a lot of things right there as well. 1052 00:49:37,800 --> 00:49:40,799 Speaker 1: Guys, twenty four grand in savings at the age of 1053 00:49:40,840 --> 00:49:44,640 Speaker 1: twenty four is incredible. She should be so proud of herself. 1054 00:49:44,680 --> 00:49:47,400 Speaker 1: That is something that so many people listening are not 1055 00:49:47,640 --> 00:49:50,720 Speaker 1: going to be able to resonate with and I definitely 1056 00:49:50,719 --> 00:49:52,560 Speaker 1: didn't have that, so yeah. 1057 00:49:52,560 --> 00:49:55,640 Speaker 3: And also no debts, just a hextep like she's killing it. 1058 00:49:55,760 --> 00:49:59,120 Speaker 3: So yeah, a big well done on so many levels 1059 00:49:59,120 --> 00:50:02,799 Speaker 3: for this money to Unfortunately V. I think it's time 1060 00:50:02,840 --> 00:50:04,399 Speaker 3: to wrap the show though it is. 1061 00:50:04,480 --> 00:50:06,800 Speaker 1: But just before we head off, we'd like to acknowledge 1062 00:50:06,800 --> 00:50:10,320 Speaker 1: and pay respects to Australia's Aboriginal and torrest right islander peoples, 1063 00:50:10,560 --> 00:50:14,560 Speaker 1: the traditional custodians at the lands, badways and skies across Australia. 1064 00:50:14,880 --> 00:50:16,759 Speaker 1: We thank you for sharing and the caring for the 1065 00:50:16,840 --> 00:50:19,000 Speaker 1: land on which we are able to learn. We pay 1066 00:50:19,040 --> 00:50:21,440 Speaker 1: our respects to elders past and present and share our 1067 00:50:21,520 --> 00:50:22,839 Speaker 1: friendship and kindness. 1068 00:50:22,960 --> 00:50:25,840 Speaker 3: Now it's time for the boring but important stuff. The 1069 00:50:25,880 --> 00:50:28,040 Speaker 3: advice shed on she is on the Money is general 1070 00:50:28,080 --> 00:50:31,880 Speaker 3: in nature and does not consider your individual circumstances. She 1071 00:50:32,040 --> 00:50:35,120 Speaker 3: is on the Money exists purely for educational purposes and 1072 00:50:35,160 --> 00:50:37,480 Speaker 3: should not be relied upon to make an investment or 1073 00:50:37,480 --> 00:50:41,600 Speaker 3: a financial decision. And stress less, we promise. Victoria Divine 1074 00:50:41,640 --> 00:50:45,440 Speaker 3: is an authorized representative of Australia Pacific Funds Management. Prior 1075 00:50:45,480 --> 00:50:48,000 Speaker 3: she limited Abian three four one three two four six 1076 00:50:48,040 --> 00:50:50,480 Speaker 3: three two five seven AFOSL three three nine one five 1077 00:50:50,560 --> 00:50:53,520 Speaker 3: one A bit of a sing song there and as 1078 00:50:53,520 --> 00:50:54,000 Speaker 3: a loser. 1079 00:50:54,160 --> 00:50:56,360 Speaker 1: I want you to start rapping it next week. I 1080 00:50:56,360 --> 00:50:58,719 Speaker 1: think you can do an entire wrap of our rap 1081 00:50:58,800 --> 00:51:01,280 Speaker 1: watch this Spain. Oh I brought us thrill. 1082 00:51:01,840 --> 00:51:04,480 Speaker 3: As always, a big old thank you to Ryan John 1083 00:51:04,719 --> 00:51:06,520 Speaker 3: for putting together today's podcast. 1084 00:51:06,719 --> 00:51:09,200 Speaker 1: We would absolutely love it as well if you joined 1085 00:51:09,239 --> 00:51:12,000 Speaker 1: our Facebook group, where our community shares money tips and 1086 00:51:12,040 --> 00:51:15,040 Speaker 1: tricks every single day, free of judgment. So She's on 1087 00:51:15,080 --> 00:51:18,160 Speaker 1: the Money on Facebook and join us. If Facebook's not 1088 00:51:18,200 --> 00:51:21,279 Speaker 1: your thing, find us on Instagram. We're at She's on 1089 00:51:21,320 --> 00:51:24,440 Speaker 1: the money Aus and don't forget guys. A couple of 1090 00:51:24,440 --> 00:51:28,280 Speaker 1: weeks ago, we launched our online master Class, which Georgia 1091 00:51:28,360 --> 00:51:32,200 Speaker 1: King has been getting surprisingly glowing reviews. It's true, I 1092 00:51:32,239 --> 00:51:34,640 Speaker 1: made it. I am actually shocked that people are loving 1093 00:51:34,680 --> 00:51:36,960 Speaker 1: it as much as they are, So head to our 1094 00:51:37,000 --> 00:51:39,640 Speaker 1: website and hit master Class to check that one out. 1095 00:51:39,719 --> 00:51:42,040 Speaker 3: Yeah, some other things here at the end, guys, if 1096 00:51:42,040 --> 00:51:44,200 Speaker 3: you want some fun on your Friday, we've got a 1097 00:51:44,200 --> 00:51:47,560 Speaker 3: newsletter that pops off. That one goes out every Friday 1098 00:51:47,600 --> 00:51:50,440 Speaker 3: about midday, so you just so very good newsletter. 1099 00:51:50,640 --> 00:51:53,520 Speaker 1: Last week Georgia King edited a party hat onto herself 1100 00:51:53,560 --> 00:51:56,360 Speaker 1: staring at Michael Google. And this week she edited herself 1101 00:51:56,400 --> 00:51:59,239 Speaker 1: staring at a tub of philly Chilly Philly, sweetly chilli 1102 00:51:59,280 --> 00:52:01,520 Speaker 1: sweet SCP. 1103 00:52:01,400 --> 00:52:02,160 Speaker 4: As I call it. 1104 00:52:02,680 --> 00:52:03,880 Speaker 3: So there's a lot of fun in there, a lot 1105 00:52:03,920 --> 00:52:06,719 Speaker 3: of value as well, sort of that's you know, debatable. 1106 00:52:06,880 --> 00:52:09,000 Speaker 3: So sign up to that. And if you guys love 1107 00:52:09,040 --> 00:52:11,440 Speaker 3: the show, feel through to rate, review and subscribe. It 1108 00:52:11,520 --> 00:52:13,799 Speaker 3: helps us out, gets us hire in the charts, and 1109 00:52:13,840 --> 00:52:15,840 Speaker 3: you know we love to find those charts, don't we 1110 00:52:15,880 --> 00:52:16,680 Speaker 3: beat It's good time. 1111 00:52:16,719 --> 00:52:19,680 Speaker 1: We do because we find more friends and that's more fun, 1112 00:52:19,880 --> 00:52:21,319 Speaker 1: more friends, more fun, more money. 1113 00:52:21,360 --> 00:52:21,600 Speaker 4: Diary. 1114 00:52:21,719 --> 00:52:23,719 Speaker 1: But that is all we have time for today. We 1115 00:52:23,719 --> 00:52:25,840 Speaker 1: will see you next week. Bye guys.