1 00:00:00,680 --> 00:00:01,000 Speaker 1: Hello. 2 00:00:01,560 --> 00:00:05,040 Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the 3 00:00:05,160 --> 00:00:08,760 Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we 4 00:00:08,800 --> 00:00:11,440 Speaker 2: get started on She's on the Money podcast, I would 5 00:00:11,520 --> 00:00:14,520 Speaker 2: like to acknowledge the traditional custodians of the land of 6 00:00:14,560 --> 00:00:18,680 Speaker 2: which this podcast is recorded on a wondery country, acknowledging 7 00:00:18,680 --> 00:00:22,560 Speaker 2: the elders, the ancestors and the next generation coming through 8 00:00:23,079 --> 00:00:27,159 Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and 9 00:00:27,240 --> 00:00:30,560 Speaker 2: the storytelling of you to make a difference for today 10 00:00:31,040 --> 00:00:32,640 Speaker 2: and lasting impact for tomorrow. 11 00:00:33,320 --> 00:00:34,120 Speaker 1: Let's get into it. 12 00:00:34,800 --> 00:00:54,080 Speaker 3: She's on the Money. She's on the Money. 13 00:00:57,720 --> 00:01:00,400 Speaker 4: Hello, and welcome to She's on the Money podcast for 14 00:01:00,520 --> 00:01:03,840 Speaker 4: millennials who want financial freedom. My name is beck Syed 15 00:01:03,960 --> 00:01:05,959 Speaker 4: and with me is Victoria Divine. 16 00:01:06,800 --> 00:01:07,240 Speaker 1: I Reckon. 17 00:01:07,480 --> 00:01:09,360 Speaker 4: Let's talk more about investments today. 18 00:01:09,440 --> 00:01:10,119 Speaker 1: V what do you think. 19 00:01:10,240 --> 00:01:13,800 Speaker 5: I'm very excited to have been given permission to do 20 00:01:14,000 --> 00:01:17,039 Speaker 5: more investing content as you know, Yes, my favor, I'm 21 00:01:17,080 --> 00:01:17,679 Speaker 5: ready for this. 22 00:01:17,760 --> 00:01:18,440 Speaker 1: I'm so excited. 23 00:01:18,560 --> 00:01:20,920 Speaker 5: I don't know if you are actually excited, but you 24 00:01:20,959 --> 00:01:21,760 Speaker 5: seem excited to be. 25 00:01:21,840 --> 00:01:24,920 Speaker 1: He've got a coffee. You're ready, But let's get into it. 26 00:01:25,000 --> 00:01:27,759 Speaker 4: I'm so ready, but as you know, I have like 27 00:01:28,200 --> 00:01:30,399 Speaker 4: no money. I kind of just got like a better 28 00:01:30,440 --> 00:01:31,360 Speaker 4: paying job, as you know. 29 00:01:31,800 --> 00:01:32,560 Speaker 1: But right now I. 30 00:01:32,600 --> 00:01:35,080 Speaker 5: Think saying I have no money, that's that's a fact. 31 00:01:35,120 --> 00:01:37,600 Speaker 5: That's like you don't have nothing, but yeah, when you 32 00:01:37,640 --> 00:01:41,399 Speaker 5: have opportunity. You have such an epic salary now and 33 00:01:41,400 --> 00:01:42,640 Speaker 5: I'm not going to share it on the pod. 34 00:01:42,880 --> 00:01:45,200 Speaker 4: But like she's doing well, you're doing he's doing well 35 00:01:45,280 --> 00:01:48,000 Speaker 4: for every Eventually I'll be doing well. I've got so 36 00:01:48,160 --> 00:01:49,920 Speaker 4: much back pay of like all these things that I 37 00:01:49,920 --> 00:01:52,280 Speaker 4: haven't paid for in years, like a service for my car. 38 00:01:52,680 --> 00:01:54,600 Speaker 4: Eventually I'll be doing well when I'm. 39 00:01:54,480 --> 00:01:58,000 Speaker 5: So sexy up. But just having the ability to pay 40 00:01:58,040 --> 00:02:01,080 Speaker 5: for things like that. I feel like this episode obviously 41 00:02:01,280 --> 00:02:03,160 Speaker 5: is investing. We're going to talk about investing on a 42 00:02:03,160 --> 00:02:04,800 Speaker 5: low income, which you would have seen when. 43 00:02:04,640 --> 00:02:05,640 Speaker 1: You clicked the title. 44 00:02:06,000 --> 00:02:08,000 Speaker 5: But I would hate for people to think that this 45 00:02:08,200 --> 00:02:10,440 Speaker 5: is going to be the priority over all of those 46 00:02:10,480 --> 00:02:12,720 Speaker 5: other important things. Like you know, we're not going to 47 00:02:12,800 --> 00:02:14,840 Speaker 5: talk about it too much, but I genuinely think we 48 00:02:14,880 --> 00:02:18,000 Speaker 5: should be setting up our financial foundations right like it's 49 00:02:18,200 --> 00:02:20,400 Speaker 5: making sure that your car is serviced and you are 50 00:02:20,440 --> 00:02:23,000 Speaker 5: safe on the roads, making sure you have an emergency 51 00:02:23,000 --> 00:02:25,600 Speaker 5: account and building that up because if anything does happen, 52 00:02:25,800 --> 00:02:28,040 Speaker 5: you've got something to fall back on. And if you've 53 00:02:28,120 --> 00:02:31,720 Speaker 5: always lived on a low income, that emergency fund is 54 00:02:31,760 --> 00:02:33,920 Speaker 5: going to feel like financial freedom wrapped up in a 55 00:02:33,919 --> 00:02:37,160 Speaker 5: little bundle. That makes you feel so empowered because you've 56 00:02:37,160 --> 00:02:39,760 Speaker 5: just never had that before. Yeah, Like you've just never 57 00:02:39,800 --> 00:02:42,800 Speaker 5: been in a situation where if something happens, you end 58 00:02:42,880 --> 00:02:44,040 Speaker 5: up in a circumstance where it's. 59 00:02:43,960 --> 00:02:45,800 Speaker 1: Like, oh well, actually, Beck, that's fine because you've got 60 00:02:45,800 --> 00:02:46,520 Speaker 1: savings for that. 61 00:02:47,040 --> 00:02:49,880 Speaker 5: Tot doesn't seem sexy. But I mean, that's not what 62 00:02:49,919 --> 00:02:52,480 Speaker 5: we're talking about today. But like I think we should 63 00:02:52,480 --> 00:02:56,040 Speaker 5: really address before we talk about this, This investing on 64 00:02:56,080 --> 00:02:59,280 Speaker 5: a low income comes after all the basics have been met, 65 00:02:59,639 --> 00:03:01,520 Speaker 5: and you know what, it's okay to not be able 66 00:03:01,520 --> 00:03:03,640 Speaker 5: to invest at this point in life. I do think 67 00:03:03,680 --> 00:03:06,560 Speaker 5: that this content is really about educating you so that 68 00:03:06,600 --> 00:03:09,640 Speaker 5: you have the best opportunities and you know what investing is. 69 00:03:09,919 --> 00:03:11,960 Speaker 5: But there are so many people in our community right 70 00:03:12,000 --> 00:03:14,480 Speaker 5: now who are struggling with the rising cost of living 71 00:03:14,639 --> 00:03:16,280 Speaker 5: or how much their mortgage is gone up, or how 72 00:03:16,320 --> 00:03:18,560 Speaker 5: much their rent has gone up, or just putting food 73 00:03:18,600 --> 00:03:20,799 Speaker 5: on the table, or they might be struggling with employment. 74 00:03:20,840 --> 00:03:23,760 Speaker 5: And I think that content like this, if not framed properly, 75 00:03:23,800 --> 00:03:25,600 Speaker 5: could make you feel really bad. 76 00:03:25,520 --> 00:03:27,200 Speaker 1: Because you go, oh my gosh, I listened to this 77 00:03:27,240 --> 00:03:28,360 Speaker 1: podcast and it. 78 00:03:28,440 --> 00:03:31,240 Speaker 5: Said that I had to be investing otherwise I'm not 79 00:03:31,280 --> 00:03:32,440 Speaker 5: doing the right thing financially. 80 00:03:32,600 --> 00:03:32,840 Speaker 2: Right. 81 00:03:32,919 --> 00:03:35,040 Speaker 1: That's not true. No, that's not true at all. 82 00:03:35,200 --> 00:03:39,160 Speaker 5: Like, yeah, to create like long term financial security. In 83 00:03:39,200 --> 00:03:42,040 Speaker 5: a perfect world, everyone would have the ability to invest, 84 00:03:42,320 --> 00:03:44,760 Speaker 5: but our government's been doing us a dirty Beck, And 85 00:03:44,800 --> 00:03:47,360 Speaker 5: we're not all in that position. And I think that 86 00:03:47,560 --> 00:03:50,800 Speaker 5: as long as we're educating ourselves and know that we 87 00:03:50,960 --> 00:03:53,320 Speaker 5: have that opportunity, at some point might not be today. 88 00:03:53,400 --> 00:03:56,120 Speaker 5: And that's okay. I think we just need to understand 89 00:03:56,160 --> 00:03:58,040 Speaker 5: that because it's also not about judging. 90 00:03:57,680 --> 00:03:58,520 Speaker 1: And going, oh my gosh. 91 00:03:58,560 --> 00:04:00,520 Speaker 5: Well Victoria is talking to Beck and has a good 92 00:04:00,560 --> 00:04:03,920 Speaker 5: salary so she can doesn't have kids, so she doesn't 93 00:04:03,960 --> 00:04:07,080 Speaker 5: know what it's like. Sure, my experience is not your experience, 94 00:04:07,080 --> 00:04:10,080 Speaker 5: and that is totally okay, But we should be celebrating 95 00:04:10,120 --> 00:04:12,280 Speaker 5: the fact that we're all in a position where if 96 00:04:12,280 --> 00:04:15,120 Speaker 5: one of us is successful, we're all successful. Like a 97 00:04:15,200 --> 00:04:16,839 Speaker 5: rising kite is going to lift all ships and we 98 00:04:16,839 --> 00:04:18,400 Speaker 5: should all be educated on this. 99 00:04:18,680 --> 00:04:20,039 Speaker 1: That is beautiful. 100 00:04:20,120 --> 00:04:20,400 Speaker 2: It was. 101 00:04:20,560 --> 00:04:22,520 Speaker 1: Are we done? Like I can just leave now, Mic 102 00:04:22,600 --> 00:04:23,440 Speaker 1: drop go away. 103 00:04:24,400 --> 00:04:25,719 Speaker 4: No, it kind of feels like that, But I do 104 00:04:25,760 --> 00:04:29,280 Speaker 4: have some questions. That's okay, I'm ready. First of all, 105 00:04:29,480 --> 00:04:32,120 Speaker 4: is it even worth it to invest if you have 106 00:04:32,240 --> 00:04:32,839 Speaker 4: no money? 107 00:04:33,320 --> 00:04:34,760 Speaker 1: Yeah? Absolutely it is. 108 00:04:34,960 --> 00:04:36,640 Speaker 5: And I feel like for a lot of people, it's 109 00:04:36,680 --> 00:04:39,520 Speaker 5: going to be a foreign concept that we haven't tackled before. 110 00:04:39,640 --> 00:04:41,559 Speaker 5: I mean, Becky and I have spoken about it before. 111 00:04:41,600 --> 00:04:43,920 Speaker 5: Your parents wouldn't have taught you about investing because it 112 00:04:43,960 --> 00:04:46,080 Speaker 5: just wasn't something that was even on their radars. It 113 00:04:46,160 --> 00:04:49,160 Speaker 5: wasn't an option, it wasn't something that you were surrounded by. 114 00:04:49,279 --> 00:04:51,919 Speaker 5: So now you're kind of starting at base levels and 115 00:04:51,960 --> 00:04:54,960 Speaker 5: we're building up that financial literacy. So one day you're 116 00:04:54,960 --> 00:04:56,920 Speaker 5: going to go, oh, I'm doing this, and I cannot 117 00:04:56,920 --> 00:04:58,760 Speaker 5: wait for the day where you're like, yep, and I 118 00:04:58,800 --> 00:05:00,600 Speaker 5: own this ETF and doing this, and. 119 00:05:00,560 --> 00:05:02,880 Speaker 1: I'm just gonna be like bare clok where you've come from, Like, 120 00:05:02,920 --> 00:05:04,880 Speaker 1: warn't that be wild dubbing it? 121 00:05:05,000 --> 00:05:07,719 Speaker 5: Not only are you investing, because like investing can be 122 00:05:07,760 --> 00:05:10,440 Speaker 5: really transactional, right, Like you could become an investor, and 123 00:05:10,480 --> 00:05:12,640 Speaker 5: I mean you are already because you've got superannuation. 124 00:05:13,080 --> 00:05:14,240 Speaker 1: But you could go download the. 125 00:05:14,240 --> 00:05:17,039 Speaker 5: Shares exapp and pop five bucks on an ETF or 126 00:05:17,080 --> 00:05:19,839 Speaker 5: in an ETF sorry, and go from there and that 127 00:05:19,880 --> 00:05:22,520 Speaker 5: would make you an immediate investor. But the important thing 128 00:05:22,520 --> 00:05:25,000 Speaker 5: to me is actually that you understand that you understand 129 00:05:25,040 --> 00:05:27,400 Speaker 5: the concept of investing. You understand what you've put your 130 00:05:27,400 --> 00:05:29,160 Speaker 5: money in and why you've put your money in there, 131 00:05:29,200 --> 00:05:32,039 Speaker 5: and you understand what potential dividends and yield that's going 132 00:05:32,080 --> 00:05:34,840 Speaker 5: to have, and that doesn't come overnight. But at the 133 00:05:34,920 --> 00:05:37,120 Speaker 5: end of the day, the question you're asking is Victoria 134 00:05:37,279 --> 00:05:40,320 Speaker 5: is at worth investing small amounts of money? And the 135 00:05:40,400 --> 00:05:43,920 Speaker 5: answer is unequivocally yes. And there's a few reasons for this. 136 00:05:44,279 --> 00:05:47,800 Speaker 5: So investing small amounts of money sets you up for 137 00:05:47,880 --> 00:05:51,760 Speaker 5: the best possible financial security and financial success long term. 138 00:05:51,920 --> 00:05:54,240 Speaker 5: It's not going to be a secret that five bucks 139 00:05:54,279 --> 00:05:57,760 Speaker 5: every single month is not going to create a secure retirement, right, 140 00:05:58,120 --> 00:06:00,680 Speaker 5: But you know what it does do educates you on 141 00:06:00,720 --> 00:06:03,599 Speaker 5: the process. It puts you in control of having a 142 00:06:03,640 --> 00:06:06,960 Speaker 5: platform that you know has that power behind it. It 143 00:06:07,040 --> 00:06:10,080 Speaker 5: means that that platform already exists, should you come into 144 00:06:10,120 --> 00:06:12,320 Speaker 5: some extra money that you do want to invest, you 145 00:06:12,440 --> 00:06:14,800 Speaker 5: know how to invest it and what that means. It 146 00:06:14,839 --> 00:06:17,719 Speaker 5: puts you in a position of power where every single 147 00:06:17,760 --> 00:06:21,760 Speaker 5: time your income increases, instead of falling victim to lifestyle 148 00:06:21,839 --> 00:06:23,279 Speaker 5: creep and being like, oh my gosh, I just don't 149 00:06:23,279 --> 00:06:25,400 Speaker 5: know where all my money is going back, you can 150 00:06:25,440 --> 00:06:28,000 Speaker 5: go all right, well, actually I've gotten a pay rise. 151 00:06:28,040 --> 00:06:30,600 Speaker 5: I'm going to contribute this to my pre existing portfolio, 152 00:06:30,640 --> 00:06:33,040 Speaker 5: and there's not a lot of thought about it. It 153 00:06:33,120 --> 00:06:36,040 Speaker 5: puts you in the position where you are not only 154 00:06:36,200 --> 00:06:38,640 Speaker 5: educated on the topic, but you've walked to the walk. 155 00:06:38,880 --> 00:06:41,120 Speaker 5: You know exactly what it means and how it works 156 00:06:41,160 --> 00:06:43,479 Speaker 5: and how it makes you feel. You know, oh my gosh, 157 00:06:43,520 --> 00:06:46,040 Speaker 5: I've been in this particular ETF. But I've now changed 158 00:06:46,040 --> 00:06:48,440 Speaker 5: my mind and I want something a bit more ethical 159 00:06:48,520 --> 00:06:51,080 Speaker 5: because my values aligned differently, and like, that's a really 160 00:06:51,080 --> 00:06:53,920 Speaker 5: cool position to be in. I want you to and 161 00:06:54,400 --> 00:06:57,640 Speaker 5: perfectly on a lower income, because like, the less you're investing, 162 00:06:57,640 --> 00:06:59,080 Speaker 5: the less risk there is. 163 00:06:59,240 --> 00:06:59,400 Speaker 6: Right. 164 00:07:00,120 --> 00:07:01,600 Speaker 5: I want you to see the ebbs and flows of 165 00:07:01,640 --> 00:07:03,600 Speaker 5: the market. I want you to log into your account 166 00:07:03,680 --> 00:07:05,480 Speaker 5: sometimes and see that it's a bit off and go. 167 00:07:05,440 --> 00:07:06,520 Speaker 1: Oh, I don't really like that. 168 00:07:07,200 --> 00:07:09,400 Speaker 5: I've never logged into my account even when I was 169 00:07:09,440 --> 00:07:11,840 Speaker 5: a financial advisor and thought, oh, it's off. I love that, 170 00:07:13,000 --> 00:07:14,520 Speaker 5: Like it makes me feel a little bit sick. 171 00:07:14,520 --> 00:07:16,640 Speaker 1: I'm like, oh, have I done the wrong things? 172 00:07:16,720 --> 00:07:19,040 Speaker 5: Like where you log in, if you see you have less, 173 00:07:19,040 --> 00:07:21,880 Speaker 5: you are automatically going to feel that that's negative. Right, 174 00:07:22,360 --> 00:07:24,800 Speaker 5: But then when I stay invested over the long term, 175 00:07:24,960 --> 00:07:27,840 Speaker 5: that increases again and it builds itself back up. I 176 00:07:27,920 --> 00:07:30,040 Speaker 5: want you to have that experience before we get to 177 00:07:30,080 --> 00:07:32,360 Speaker 5: the big dollar amounts, right. I want you to be 178 00:07:32,480 --> 00:07:35,480 Speaker 5: okay with investing five bucks and then going all right, well, 179 00:07:35,520 --> 00:07:38,120 Speaker 5: I mean it's down four dollars this week, that's kind 180 00:07:38,120 --> 00:07:41,360 Speaker 5: of okay, that's all right because it's not four thousand 181 00:07:41,440 --> 00:07:43,440 Speaker 5: dollars instead of five thousand dollars. 182 00:07:43,480 --> 00:07:44,640 Speaker 1: You know, if I can. 183 00:07:44,520 --> 00:07:46,640 Speaker 5: Teach you with the small amounts the big amount it's 184 00:07:46,720 --> 00:07:49,240 Speaker 5: not going to be stressful, like you're setting yourself up 185 00:07:49,240 --> 00:07:52,160 Speaker 5: for future success and at the end of the day, 186 00:07:52,480 --> 00:07:56,080 Speaker 5: like it does financially benefit you. So if you're investing 187 00:07:56,200 --> 00:07:58,840 Speaker 5: over a ten year period with an average rate of 188 00:07:58,840 --> 00:08:01,400 Speaker 5: return of six percent, which is really low because we 189 00:08:01,480 --> 00:08:03,720 Speaker 5: know the average rate of return of the Australian share 190 00:08:03,720 --> 00:08:06,000 Speaker 5: market over the last thirty years has been nine point 191 00:08:06,040 --> 00:08:08,400 Speaker 5: eight percent. Right, I've just gone with six because we're 192 00:08:08,480 --> 00:08:11,800 Speaker 5: pretty conservative in this house. If you're investing twenty five 193 00:08:11,840 --> 00:08:14,040 Speaker 5: bucks a month, which I think is for a lot 194 00:08:14,120 --> 00:08:17,280 Speaker 5: of people start point because they just go, all right, well, 195 00:08:17,320 --> 00:08:19,400 Speaker 5: I can't afford a whole heap, but I want not 196 00:08:19,560 --> 00:08:21,240 Speaker 5: five dollars and I don't want ten. 197 00:08:21,280 --> 00:08:22,440 Speaker 1: I want maybe twenty five. 198 00:08:22,480 --> 00:08:25,520 Speaker 5: I feel like that feels comfortable, comfortable, It feels comfortable. 199 00:08:25,960 --> 00:08:28,640 Speaker 5: If you had saved twenty five dollars each and every 200 00:08:28,640 --> 00:08:31,520 Speaker 5: single month for ten years, you'd have three thousand dollars. 201 00:08:31,880 --> 00:08:34,000 Speaker 5: But if you had invested it with an average rate 202 00:08:34,040 --> 00:08:36,199 Speaker 5: of return of six percent, you'd have four thousand and 203 00:08:36,280 --> 00:08:39,000 Speaker 5: ninety seven dollars. Oh wow, that's one thousand and ninety 204 00:08:39,040 --> 00:08:42,000 Speaker 5: seven dollars more than you wouldn't have had before. Right, 205 00:08:42,480 --> 00:08:45,120 Speaker 5: Like from little things, big things really do grow. And 206 00:08:45,160 --> 00:08:49,040 Speaker 5: I mean the power of compounding happens one with the 207 00:08:49,080 --> 00:08:51,800 Speaker 5: scale of what you're investing, but two with time. So 208 00:08:51,920 --> 00:08:53,800 Speaker 5: if you went from ten years to twenty years, that 209 00:08:53,840 --> 00:08:58,160 Speaker 5: would probably double again. Because money on average based on 210 00:08:58,200 --> 00:09:01,000 Speaker 5: the rule of seventy two, which is a finance concept 211 00:09:01,080 --> 00:09:04,040 Speaker 5: that basically says that money doubles. Let's call it every 212 00:09:04,080 --> 00:09:06,800 Speaker 5: ten years, that in another ten years from now, that 213 00:09:06,800 --> 00:09:09,040 Speaker 5: one thousand's going to be worth two thousand, and then 214 00:09:09,080 --> 00:09:10,959 Speaker 5: in another ten years that two thousand is going to 215 00:09:11,000 --> 00:09:13,319 Speaker 5: be worth four thousand, and then in another ten years 216 00:09:13,400 --> 00:09:16,000 Speaker 5: that four thousand's worth eight thousand. So the power of 217 00:09:16,040 --> 00:09:19,440 Speaker 5: compounding is actually in time. But hypothetically, if you were 218 00:09:19,480 --> 00:09:22,120 Speaker 5: investing fifty bucks a month, if you'd saved that, that 219 00:09:22,120 --> 00:09:24,120 Speaker 5: would be double what you were doing with twenty five, 220 00:09:24,200 --> 00:09:27,240 Speaker 5: So that'd be six grand, But if you invested it, 221 00:09:27,240 --> 00:09:29,720 Speaker 5: it'd be eight thousand, one hundred and ninety four dollars. 222 00:09:29,800 --> 00:09:31,680 Speaker 5: That's a difference of just over two grand. 223 00:09:32,120 --> 00:09:34,000 Speaker 1: That's sick, pretty sweet, that's sick. 224 00:09:35,080 --> 00:09:38,160 Speaker 5: Like So I feel like we really need to normalize 225 00:09:38,160 --> 00:09:41,000 Speaker 5: investing small amounts because I think so many times, and 226 00:09:41,040 --> 00:09:42,800 Speaker 5: you guys would have heard me on the pod before 227 00:09:42,840 --> 00:09:44,960 Speaker 5: being like, oh, well, if you invest five hundred dollars 228 00:09:44,960 --> 00:09:47,200 Speaker 5: a month, I use that as a good example to 229 00:09:47,360 --> 00:09:50,160 Speaker 5: educate you. Not because I immediately think everyone can afford 230 00:09:50,200 --> 00:09:52,000 Speaker 5: five hundred bucks a month, No way, like. 231 00:09:52,280 --> 00:09:53,040 Speaker 1: In this economy. 232 00:09:53,360 --> 00:09:57,120 Speaker 4: Not in this economy, this economy you're dreaming exactly, you're dreaming. 233 00:09:57,320 --> 00:10:00,440 Speaker 5: And I feel like, if you are investing five hundred 234 00:10:00,480 --> 00:10:04,160 Speaker 5: dollars a month, that's awesome, congrats on the privilege, that's 235 00:10:04,240 --> 00:10:07,120 Speaker 5: absolutely fantastic. If you're doing more than that, like get 236 00:10:07,120 --> 00:10:09,760 Speaker 5: it clean, I'm so excited for you. But I also 237 00:10:09,840 --> 00:10:13,000 Speaker 5: wouldn't want people in our community feeling awful because they're 238 00:10:13,040 --> 00:10:15,839 Speaker 5: not achieving the goals that other people are achieving. I've 239 00:10:15,840 --> 00:10:18,800 Speaker 5: talked about it so many times. You're all on different trajectories, 240 00:10:18,840 --> 00:10:21,199 Speaker 5: you are all on different journeys, we're all at different 241 00:10:21,360 --> 00:10:24,000 Speaker 5: stages in those journeys. Yes, and I would hate for 242 00:10:24,040 --> 00:10:25,480 Speaker 5: you to go, oh my gosh, well, if I'm not 243 00:10:25,520 --> 00:10:28,200 Speaker 5: investing five hundred dollars a month, because that's Victoria's like 244 00:10:28,400 --> 00:10:31,320 Speaker 5: go to example, that means it's not good enough. 245 00:10:31,880 --> 00:10:34,240 Speaker 1: No, it's just a really sexy number. To be honest, 246 00:10:34,320 --> 00:10:34,600 Speaker 1: it is. 247 00:10:34,640 --> 00:10:35,400 Speaker 4: It's nice, like. 248 00:10:35,360 --> 00:10:37,040 Speaker 1: It's a clean it's a round number. 249 00:10:37,200 --> 00:10:40,079 Speaker 5: Yeah, and it compounds over time, you know, at the 250 00:10:40,200 --> 00:10:42,520 Speaker 5: end of the day. I've used this example. But if 251 00:10:42,520 --> 00:10:45,000 Speaker 5: you were twenty one and you started investing over the 252 00:10:45,040 --> 00:10:48,080 Speaker 5: long term, and you invested five hundred dollars each and 253 00:10:48,120 --> 00:10:51,079 Speaker 5: every single month, all the way through to retirement. If 254 00:10:51,080 --> 00:10:53,880 Speaker 5: you had saved, that would be two hundred and forty 255 00:10:53,880 --> 00:10:57,240 Speaker 5: thousand dollars that you'd saved. But if you'd invested, that 256 00:10:57,280 --> 00:11:00,400 Speaker 5: would be more than one point two million dollars. That's 257 00:11:00,400 --> 00:11:04,720 Speaker 5: sexy money, but a fairy nice. That example makes you go, aw, 258 00:11:05,559 --> 00:11:08,320 Speaker 5: that's a bit more powerful than just talking about this. Oh, 259 00:11:08,360 --> 00:11:10,840 Speaker 5: if I invest twenty five dollars. It's not to say 260 00:11:10,840 --> 00:11:13,440 Speaker 5: the twenty five dollars isn't powerful. It's so powerful, I 261 00:11:13,480 --> 00:11:17,160 Speaker 5: promise you. But beck the word a million, Like the 262 00:11:17,320 --> 00:11:20,120 Speaker 5: second you tip over that, you go, I'm capable of that. 263 00:11:20,360 --> 00:11:24,000 Speaker 1: Yeah, yeah, you are. You absolutely are capable of that. 264 00:11:24,200 --> 00:11:25,920 Speaker 5: And a lot of us who are in full time 265 00:11:25,960 --> 00:11:31,359 Speaker 5: employment are actually contributing about that or just over towards superannuation. 266 00:11:31,760 --> 00:11:34,400 Speaker 5: So you're already doing it. And that's why I care 267 00:11:34,520 --> 00:11:37,040 Speaker 5: so much about you guys checking up on your super 268 00:11:37,160 --> 00:11:39,240 Speaker 5: and making sure that your super's doing the right thing, 269 00:11:39,559 --> 00:11:42,800 Speaker 5: because if it's not invested properly, you know, short changing 270 00:11:42,800 --> 00:11:44,360 Speaker 5: yourself for about a million dollars. 271 00:11:44,720 --> 00:11:47,960 Speaker 4: It's a lot of dollars, a lot of dollars that 272 00:11:48,000 --> 00:11:49,160 Speaker 4: you could be short changing yourself. 273 00:11:49,240 --> 00:11:52,120 Speaker 5: Yeah, exactly, one out of ten cannot recommend short changing yourself, 274 00:11:52,520 --> 00:11:53,320 Speaker 5: terrible idea. 275 00:11:53,480 --> 00:11:55,280 Speaker 4: Do you just want to mention for anyone listening and 276 00:11:55,600 --> 00:11:58,959 Speaker 4: maybe isn't familiar with those catch words like EFT dividends, 277 00:11:59,000 --> 00:11:59,760 Speaker 4: we did coming? 278 00:12:00,000 --> 00:12:01,720 Speaker 1: Do you mean ETF? 279 00:12:02,200 --> 00:12:05,120 Speaker 5: But that's okay, I mean I feel like that that's 280 00:12:05,160 --> 00:12:08,360 Speaker 5: really relatable an exchange traded fund. 281 00:12:08,559 --> 00:12:10,280 Speaker 4: Yes, but we did do an episode. 282 00:12:10,600 --> 00:12:12,800 Speaker 5: We did, and we've covered those and I feel like 283 00:12:13,160 --> 00:12:15,320 Speaker 5: this is one of those things where I'm not trying 284 00:12:15,320 --> 00:12:17,680 Speaker 5: to confuse you. I feel like there have been a 285 00:12:17,720 --> 00:12:19,760 Speaker 5: lot of media who com middle aged white men who 286 00:12:19,920 --> 00:12:23,079 Speaker 5: historically have used a lot of acronyms to scare us 287 00:12:23,120 --> 00:12:25,640 Speaker 5: out of the market and make themselves feel smarter than 288 00:12:25,640 --> 00:12:26,360 Speaker 5: they actually are. 289 00:12:26,640 --> 00:12:28,520 Speaker 1: Like how flippant You're at brunch and you're. 290 00:12:28,360 --> 00:12:30,440 Speaker 5: Like, look over to the table beside you, and there's 291 00:12:30,480 --> 00:12:32,760 Speaker 5: guys and they're sitting there at brunch on Saturday morning 292 00:12:32,760 --> 00:12:34,199 Speaker 5: wearing suits, and you're like, I don't know what you 293 00:12:34,200 --> 00:12:36,720 Speaker 5: think you are. And I invested in this etof and 294 00:12:36,840 --> 00:12:39,760 Speaker 5: I do this and I get this yield, Like you've 295 00:12:39,800 --> 00:12:43,360 Speaker 5: seen them at brunch before, Like they're just like investing 296 00:12:43,440 --> 00:12:47,200 Speaker 5: bros who think they're really smart and usually you're like 297 00:12:47,400 --> 00:12:49,680 Speaker 5: eavesdrop on the conversation if you're me, because like I 298 00:12:49,720 --> 00:12:52,600 Speaker 5: can't eggs drop, right, you eavesdrop on the conversation. 299 00:12:52,679 --> 00:12:55,040 Speaker 1: Then they start talking about like big queen and stuff, 300 00:12:55,080 --> 00:12:56,280 Speaker 1: and you're just like, you've got no idea. 301 00:12:56,480 --> 00:12:58,400 Speaker 4: If they are no idea, if they ask me a question, 302 00:12:58,600 --> 00:13:01,840 Speaker 4: I will cry on this. I'll not have any idea. 303 00:13:01,920 --> 00:13:05,080 Speaker 5: ETF is actually quite and I won't say it's simple 304 00:13:05,120 --> 00:13:07,760 Speaker 5: because it's not. It's actually quite complicated. But for you 305 00:13:07,880 --> 00:13:10,400 Speaker 5: to understand it is quite simple. ETF is an exchange 306 00:13:10,400 --> 00:13:14,440 Speaker 5: traded fund, which sounds complicated, but essentially it's a basket 307 00:13:14,480 --> 00:13:16,720 Speaker 5: of shares. So if you buy that instead of a 308 00:13:16,760 --> 00:13:21,439 Speaker 5: direct share, you're getting instant diversification, and diversification is meaning 309 00:13:21,440 --> 00:13:23,480 Speaker 5: that you're just not putting all your eggs in one basket. 310 00:13:23,640 --> 00:13:26,040 Speaker 5: You're getting lots of different companies that somebody. 311 00:13:25,760 --> 00:13:26,439 Speaker 1: Else has picked. 312 00:13:26,480 --> 00:13:28,880 Speaker 5: You might feel a bit more secure with that decision, 313 00:13:29,120 --> 00:13:31,360 Speaker 5: and it just is kind of like a list of 314 00:13:31,400 --> 00:13:34,239 Speaker 5: different investments that are going to be way more affordable 315 00:13:34,280 --> 00:13:37,120 Speaker 5: to purchase because you're just buying fractions of that share 316 00:13:37,200 --> 00:13:40,040 Speaker 5: as opposed to going in and buying, you know, a 317 00:13:40,080 --> 00:13:42,520 Speaker 5: whole BHP share or a whole A and Z share, 318 00:13:42,559 --> 00:13:45,520 Speaker 5: Like I couldn't afford to own every single thing in 319 00:13:45,559 --> 00:13:48,200 Speaker 5: an ETF outright, but if I put my money into 320 00:13:48,200 --> 00:13:49,360 Speaker 5: that ETF, I could. 321 00:13:49,200 --> 00:13:52,360 Speaker 1: Have exposure to all those things immediately. Yes, that's a 322 00:13:52,360 --> 00:13:53,840 Speaker 1: good thing. That's really sexy. 323 00:13:54,120 --> 00:13:56,720 Speaker 5: And if you are somebody who is interested in the 324 00:13:56,720 --> 00:13:58,640 Speaker 5: share market and you're like, oh my gosh, I want 325 00:13:58,640 --> 00:14:01,280 Speaker 5: to invest five bucks a month fee, maybe have a 326 00:14:01,280 --> 00:14:03,840 Speaker 5: look in an ETF. Maybe have a look at something 327 00:14:03,880 --> 00:14:07,600 Speaker 5: that gives you the exposure to a particular asset class 328 00:14:07,679 --> 00:14:10,520 Speaker 5: or gives you exposure to a particular market, because I 329 00:14:10,559 --> 00:14:12,800 Speaker 5: mean you could go to the ASX two hundred, which 330 00:14:12,840 --> 00:14:16,440 Speaker 5: is the Australian share market's top two hundred companies. That 331 00:14:16,520 --> 00:14:19,720 Speaker 5: seems pretty simple. Yeah, if you don't want your investment 332 00:14:19,840 --> 00:14:23,040 Speaker 5: journey to be complicated, it doesn't have to be. I 333 00:14:23,080 --> 00:14:26,920 Speaker 5: think so many times we give ourselves analysis paralysis, right, 334 00:14:27,160 --> 00:14:29,680 Speaker 5: Like I need to make the right investment decision. We 335 00:14:29,720 --> 00:14:32,520 Speaker 5: can change it later, babe, Like it doesn't matter. Just 336 00:14:32,520 --> 00:14:35,200 Speaker 5: get your feet into the water, because it starts getting 337 00:14:35,200 --> 00:14:37,840 Speaker 5: a little bit more comfortable the longer your feeder in. 338 00:14:37,840 --> 00:14:40,760 Speaker 4: Right, totally, just jam that foot in the door. 339 00:14:40,800 --> 00:14:43,200 Speaker 5: Baby, please do like, don't probably don't jam your foot 340 00:14:43,200 --> 00:14:44,800 Speaker 5: in the don't jet up with a bruise, but like, 341 00:14:44,920 --> 00:14:46,040 Speaker 5: dip your tooes into the water. 342 00:14:46,120 --> 00:14:48,960 Speaker 1: I promise the pools real warm and we're having a party. 343 00:14:49,160 --> 00:14:51,760 Speaker 4: Yeah that sounds like so much fun. 344 00:14:51,880 --> 00:14:54,600 Speaker 5: It's way more fun than what investment actually is. So 345 00:14:54,680 --> 00:14:57,600 Speaker 5: I'm lulling you into this false sense of security so. 346 00:14:57,600 --> 00:14:58,920 Speaker 1: That you all benefits. 347 00:14:59,120 --> 00:15:01,400 Speaker 4: Yeah, it's I'm the cool mom. 348 00:15:01,560 --> 00:15:04,080 Speaker 1: I'm not a regular mom. I'm a cool investment mark. 349 00:15:04,160 --> 00:15:06,960 Speaker 4: I feel that. I feel that now VI, I heard 350 00:15:07,000 --> 00:15:09,160 Speaker 4: you mention the term dollar cost averaging. 351 00:15:09,320 --> 00:15:12,240 Speaker 5: I have thrown that around a few times historically, and like, 352 00:15:12,600 --> 00:15:14,200 Speaker 5: to be fair, I'm going to be honest with you. 353 00:15:14,320 --> 00:15:16,760 Speaker 4: I kind of just smiled and nodded, but I actually 354 00:15:16,760 --> 00:15:18,040 Speaker 4: have no idea what okay? 355 00:15:18,400 --> 00:15:21,280 Speaker 5: So that means you're giving yourself exposure to the market 356 00:15:21,320 --> 00:15:23,680 Speaker 5: a lots of different points. So say you have twelve 357 00:15:23,720 --> 00:15:25,600 Speaker 5: hundred dollars to invest, right, You're like, I really want 358 00:15:25,600 --> 00:15:27,280 Speaker 5: to invest twelve hundred dollars and you've got it in 359 00:15:27,320 --> 00:15:30,360 Speaker 5: your savings account. How do you know that today is 360 00:15:30,360 --> 00:15:31,440 Speaker 5: a good day to enter. 361 00:15:31,360 --> 00:15:32,000 Speaker 1: The share market? 362 00:15:32,320 --> 00:15:34,720 Speaker 5: I don't know that you don't know that I could 363 00:15:34,760 --> 00:15:37,400 Speaker 5: look at the historical performance and be like, okay, cool. 364 00:15:37,480 --> 00:15:40,840 Speaker 5: Based on history, maybe today is a good day. But 365 00:15:41,080 --> 00:15:45,280 Speaker 5: as a very good ex financial advisor beck, past performance 366 00:15:45,440 --> 00:15:47,400 Speaker 5: is not indicative of future performance. 367 00:15:47,800 --> 00:15:49,320 Speaker 1: And we know that that is true. 368 00:15:49,640 --> 00:15:53,400 Speaker 5: But what we can do, because unfortunately, timing the market 369 00:15:53,440 --> 00:15:56,120 Speaker 5: isn't a thing unless you're Warren Buffett and you somehow 370 00:15:56,200 --> 00:16:01,880 Speaker 5: have this insane ability to vest really well. The average 371 00:16:01,880 --> 00:16:04,360 Speaker 5: person doesn't have that. So the next best thing we 372 00:16:04,400 --> 00:16:06,920 Speaker 5: can do to timing the market is have time in 373 00:16:06,920 --> 00:16:09,880 Speaker 5: the market. And so when we have time in the market, 374 00:16:09,920 --> 00:16:12,840 Speaker 5: that means instead of dumping that twelve hundred bucks in 375 00:16:12,840 --> 00:16:14,800 Speaker 5: in all one lump, you might choose to put one 376 00:16:14,840 --> 00:16:17,240 Speaker 5: hundred dollars in each and every single month. And that 377 00:16:17,360 --> 00:16:20,680 Speaker 5: means if you, you know, bought ten shares that are 378 00:16:20,680 --> 00:16:24,920 Speaker 5: worth ten dollars this month, well next month they actually 379 00:16:25,000 --> 00:16:27,000 Speaker 5: might have gone down a little bit, and so you 380 00:16:27,080 --> 00:16:29,440 Speaker 5: have the same ten dollars to invest. But you know, 381 00:16:29,520 --> 00:16:32,320 Speaker 5: let's be dramatic, the share market's dropped by fifty percent. 382 00:16:32,680 --> 00:16:36,000 Speaker 5: So instead of buying ten shares for ten dollars, you're 383 00:16:36,040 --> 00:16:39,040 Speaker 5: now able to buy twenty shares for ten dollars. So 384 00:16:39,080 --> 00:16:42,120 Speaker 5: you've increased how many shares you have with the same 385 00:16:42,160 --> 00:16:45,440 Speaker 5: amount of money that you're investing, right, And then we 386 00:16:45,520 --> 00:16:48,160 Speaker 5: extrapolate that out, and then maybe the month after that, 387 00:16:48,200 --> 00:16:50,960 Speaker 5: the share market's up and you go, okay, cool, well 388 00:16:51,120 --> 00:16:54,040 Speaker 5: now it's up fifty percent. Because we're just using averages 389 00:16:54,080 --> 00:16:56,600 Speaker 5: and like being dramatic about our example here because I 390 00:16:56,640 --> 00:16:59,360 Speaker 5: think it makes the most sense. Share market's up fifty percent. 391 00:16:59,480 --> 00:17:02,120 Speaker 5: So now you can only buy five shares instead of 392 00:17:02,160 --> 00:17:04,480 Speaker 5: the ten shares that you originally got for ten dollars. 393 00:17:04,760 --> 00:17:07,159 Speaker 5: So one month you bought ten shares, another month you 394 00:17:07,160 --> 00:17:09,119 Speaker 5: were able to buy twenty shares. A month after that 395 00:17:09,160 --> 00:17:10,919 Speaker 5: you're only able to buy five shares. 396 00:17:11,240 --> 00:17:12,040 Speaker 1: But you put the. 397 00:17:12,080 --> 00:17:15,560 Speaker 5: Same amount of money in every month, right, right. But 398 00:17:16,119 --> 00:17:18,920 Speaker 5: that means that if we averaged it out, like let's 399 00:17:18,920 --> 00:17:22,280 Speaker 5: say over twelve months, the average kind of becomes a 400 00:17:22,359 --> 00:17:24,680 Speaker 5: lower price point than what the higher of the market 401 00:17:24,800 --> 00:17:26,320 Speaker 5: is and what the lower of the market is. 402 00:17:26,359 --> 00:17:27,760 Speaker 1: So we only end up. 403 00:17:27,800 --> 00:17:31,240 Speaker 5: On average paying the average amount that the share market 404 00:17:31,320 --> 00:17:34,399 Speaker 5: is worth. Because as I said before, first month, we 405 00:17:34,440 --> 00:17:37,520 Speaker 5: paid the average. Second month, we kind of were onto 406 00:17:37,560 --> 00:17:39,360 Speaker 5: a winner because the share market was a bit down, 407 00:17:39,400 --> 00:17:41,240 Speaker 5: so we made more of the money that we invested 408 00:17:41,720 --> 00:17:43,879 Speaker 5: the month after that share market was up, but we 409 00:17:44,080 --> 00:17:46,439 Speaker 5: still invested because you don't know if it's going to 410 00:17:46,440 --> 00:17:48,840 Speaker 5: go up any higher than that, and that's still a 411 00:17:48,840 --> 00:17:51,320 Speaker 5: good opportunity. You don't know if the month after it's 412 00:17:51,359 --> 00:17:54,159 Speaker 5: going to go down. But over time, the market ebbs 413 00:17:54,160 --> 00:17:57,399 Speaker 5: and flows, and what that means is we end up 414 00:17:57,400 --> 00:17:59,760 Speaker 5: with an average line that gets drawn between the ebbs 415 00:17:59,760 --> 00:18:02,320 Speaker 5: and flour and that's what we end up paying. So 416 00:18:02,359 --> 00:18:05,439 Speaker 5: if we extrapolated that out, instead of paying one dollar 417 00:18:05,480 --> 00:18:07,399 Speaker 5: for each share, which you were doing at the start, 418 00:18:07,720 --> 00:18:10,480 Speaker 5: if we averaged that out, you're actually paying seventy five 419 00:18:10,560 --> 00:18:13,880 Speaker 5: cents per share in the example I've given. Because sometimes 420 00:18:13,880 --> 00:18:17,160 Speaker 5: you're paying more, sometimes you're paying less. But by consistently 421 00:18:17,240 --> 00:18:20,120 Speaker 5: being in the market, we've saved ourself money. And that 422 00:18:20,240 --> 00:18:22,960 Speaker 5: means that we're not trying to time the market, because 423 00:18:23,040 --> 00:18:23,879 Speaker 5: no one can do that. 424 00:18:23,920 --> 00:18:25,679 Speaker 1: I've said before on this podcast. 425 00:18:25,880 --> 00:18:28,600 Speaker 5: If I could have timed the market, I have the 426 00:18:28,680 --> 00:18:32,960 Speaker 5: knowledge I used to be an investment specific financial advisor, 427 00:18:33,080 --> 00:18:36,600 Speaker 5: like I would work with people worth tens of millions 428 00:18:36,640 --> 00:18:38,760 Speaker 5: of dollars. And that's not a flex that's just me 429 00:18:38,840 --> 00:18:41,640 Speaker 5: saying I had that experience and I still couldn't time 430 00:18:41,680 --> 00:18:44,080 Speaker 5: the market, so I don't mean to have too many tickets, 431 00:18:44,119 --> 00:18:46,760 Speaker 5: but I don't know how other people are thinking that 432 00:18:46,800 --> 00:18:49,760 Speaker 5: they can time the market when I was in such 433 00:18:49,760 --> 00:18:52,760 Speaker 5: a privileged position, like I had access to clients with 434 00:18:52,800 --> 00:18:55,520 Speaker 5: heaps of money, I had access to the best brokers 435 00:18:55,560 --> 00:18:57,639 Speaker 5: in the country because people with lots of money can 436 00:18:57,680 --> 00:19:00,560 Speaker 5: afford the best brokers. I had access to the best 437 00:19:00,600 --> 00:19:03,960 Speaker 5: investment houses in the country, and those investment houses so 438 00:19:04,000 --> 00:19:06,080 Speaker 5: they're basically people who do a whole heap of. 439 00:19:06,040 --> 00:19:07,200 Speaker 1: Research on the markets. 440 00:19:07,640 --> 00:19:10,560 Speaker 5: And when you get to a level of financial advice 441 00:19:10,720 --> 00:19:13,400 Speaker 5: where your clients have heaps of money, you can pay 442 00:19:13,400 --> 00:19:15,600 Speaker 5: a lot for the research. And I love that because 443 00:19:15,600 --> 00:19:17,919 Speaker 5: I'm super interested in it. But even with all of 444 00:19:17,920 --> 00:19:21,200 Speaker 5: those resources accessible to me, still can't time the market. 445 00:19:21,560 --> 00:19:24,760 Speaker 5: So I don't know how the average bro at brunch, 446 00:19:24,800 --> 00:19:26,720 Speaker 5: she's like, oh, yeah, the market's going to be done. 447 00:19:26,760 --> 00:19:29,440 Speaker 5: It's going to be a sick thing to buy next week. Mate, 448 00:19:29,440 --> 00:19:33,359 Speaker 5: you don't know anything. Sit down, drink your oatmeal claste 449 00:19:33,760 --> 00:19:36,119 Speaker 5: that you asked for to be a little bit extra 450 00:19:36,200 --> 00:19:38,840 Speaker 5: week because you had a big night last night. Like 451 00:19:38,960 --> 00:19:41,320 Speaker 5: I'm done with you. Like no one can time the market. 452 00:19:41,480 --> 00:19:43,280 Speaker 5: End of story. That's the wrap on this part of 453 00:19:43,280 --> 00:19:46,520 Speaker 5: the conversation. That's why dollar cost averaging is important, Beck, 454 00:19:46,720 --> 00:19:49,359 Speaker 5: and that's why we want to consistently invest instead of 455 00:19:49,359 --> 00:19:51,040 Speaker 5: thinking that we can time the market and put our 456 00:19:51,080 --> 00:19:52,520 Speaker 5: twelve hundred bucks in immediately. 457 00:19:53,440 --> 00:19:55,359 Speaker 1: Mike, does that make sense? 458 00:19:55,480 --> 00:19:56,960 Speaker 4: That makes so much sense? 459 00:19:57,200 --> 00:19:58,960 Speaker 1: I hate saying does that make sense? As well? 460 00:19:59,000 --> 00:20:01,919 Speaker 5: Because I feel like I'm it's something that's like, we 461 00:20:01,960 --> 00:20:05,280 Speaker 5: need to drop that out of our vocabulary. Actually, I 462 00:20:05,320 --> 00:20:07,080 Speaker 5: was talking to a friend about this the other day, 463 00:20:07,200 --> 00:20:11,119 Speaker 5: complete sidetrack like saying, Oh, I'm just a podcaster, or 464 00:20:11,359 --> 00:20:14,000 Speaker 5: I'm just you know, a videographer, right, Like you're not. 465 00:20:14,160 --> 00:20:16,199 Speaker 5: You are a videographer and you're a good one. Like 466 00:20:16,280 --> 00:20:21,600 Speaker 5: downplays our ability to communicate efficiently or to even stand 467 00:20:21,640 --> 00:20:22,439 Speaker 5: our own ground. 468 00:20:22,680 --> 00:20:22,880 Speaker 4: Right. 469 00:20:23,160 --> 00:20:26,399 Speaker 5: I feel like I say so many times, oh my gosh, 470 00:20:26,440 --> 00:20:29,000 Speaker 5: does that make sense? Beck, as though I didn't know 471 00:20:29,080 --> 00:20:30,160 Speaker 5: what I was talking about? 472 00:20:30,280 --> 00:20:32,440 Speaker 1: Like, oh, Beck, did my example make sense? I knew 473 00:20:32,440 --> 00:20:33,000 Speaker 1: I made sense. 474 00:20:33,040 --> 00:20:35,280 Speaker 4: Why am I saying that, yes, you did make sense? 475 00:20:35,480 --> 00:20:37,680 Speaker 4: I guess a better way because you don't know if 476 00:20:37,720 --> 00:20:39,800 Speaker 4: I've fully absorbed the true is maybe to be like, 477 00:20:40,000 --> 00:20:46,440 Speaker 4: do you have any questions. You absorb that, silly girl, mean, 478 00:20:46,600 --> 00:20:49,520 Speaker 4: we're not doing that at all. What's your next question. 479 00:20:49,800 --> 00:20:52,920 Speaker 5: I'll try and answer it in the most educated way possible. 480 00:20:53,000 --> 00:20:53,480 Speaker 5: Thank you. 481 00:20:53,800 --> 00:20:55,720 Speaker 4: I do have more questions for but I reckon, let's 482 00:20:55,720 --> 00:20:58,480 Speaker 4: take a quick five seconds too. 483 00:20:58,560 --> 00:20:59,640 Speaker 1: Because we're spoiled. 484 00:20:59,680 --> 00:21:01,080 Speaker 5: At the other day, I had a whole heap of 485 00:21:01,160 --> 00:21:02,879 Speaker 5: DMS from people being like, what do you mean you 486 00:21:02,880 --> 00:21:03,720 Speaker 5: didn't get a cup of tea. 487 00:21:03,800 --> 00:21:05,080 Speaker 1: I'm like, no, it's a fake break. 488 00:21:05,440 --> 00:21:06,879 Speaker 5: So we're going to take an out of fake break 489 00:21:06,920 --> 00:21:09,320 Speaker 5: and we will pay the bills with the advertisement that 490 00:21:09,359 --> 00:21:10,920 Speaker 5: you hear, and we'll see you on the flip side. 491 00:21:10,960 --> 00:21:11,800 Speaker 1: Love you, love you. 492 00:21:16,040 --> 00:21:18,320 Speaker 4: Hi everyone, we are back from our fake break. 493 00:21:18,359 --> 00:21:20,480 Speaker 1: No, it was a real break. I do actually have 494 00:21:20,520 --> 00:21:21,760 Speaker 1: a coffee now you do. 495 00:21:21,840 --> 00:21:25,600 Speaker 4: Actually that one was real. But generally, don't be fooled. 496 00:21:25,640 --> 00:21:28,679 Speaker 1: They are. We can be lazy. We can be like lazy. 497 00:21:29,000 --> 00:21:31,639 Speaker 4: Now we are talking about investing on Alo you come today. 498 00:21:32,240 --> 00:21:34,800 Speaker 4: So we've talked before on the pod about different levels 499 00:21:34,800 --> 00:21:38,240 Speaker 4: of investing and different available platforms. Run us through this 500 00:21:38,320 --> 00:21:41,680 Speaker 4: again and where to start. This is a big conversation. 501 00:21:41,920 --> 00:21:44,000 Speaker 4: Aren't you ready to sit down? Ready to drap yourself 502 00:21:44,000 --> 00:21:45,720 Speaker 4: in maybe you should have got a coffee as well. 503 00:21:45,960 --> 00:21:46,200 Speaker 2: Damn. 504 00:21:46,400 --> 00:21:49,080 Speaker 5: So last year we did an episode. It was on 505 00:21:49,280 --> 00:21:51,119 Speaker 5: the fourth of May, so if you want to go 506 00:21:51,200 --> 00:21:53,280 Speaker 5: listen to that. It was comparing the different types of 507 00:21:53,320 --> 00:21:56,800 Speaker 5: investment platforms that exist here in Australia, because not all 508 00:21:56,840 --> 00:21:59,359 Speaker 5: investment platforms have been created equally. And I kind of 509 00:21:59,400 --> 00:22:02,280 Speaker 5: framed that different levels of investing kind of in context 510 00:22:02,320 --> 00:22:05,399 Speaker 5: of like primary school, high school, university, except we kind 511 00:22:05,440 --> 00:22:08,600 Speaker 5: of called it entry level and then like advanced investing, 512 00:22:08,720 --> 00:22:12,720 Speaker 5: and like I wanted people to understand that from my perspective, 513 00:22:12,880 --> 00:22:16,160 Speaker 5: not that this like legitimately exists, Like people don't go, oh, 514 00:22:16,240 --> 00:22:18,840 Speaker 5: we have a basic platform, well we have a super 515 00:22:18,880 --> 00:22:22,320 Speaker 5: advanced one, Like I wanted you guys to understand, I guess, 516 00:22:22,440 --> 00:22:25,760 Speaker 5: from my perspective as an ex financial advisor, the entry 517 00:22:25,800 --> 00:22:28,800 Speaker 5: points and what the different entry points look like. Because 518 00:22:28,920 --> 00:22:31,959 Speaker 5: from what I deemed to be an entry level platform, 519 00:22:32,160 --> 00:22:35,520 Speaker 5: I said, look, I reckon micro investing platforms where you're 520 00:22:35,520 --> 00:22:38,520 Speaker 5: depositing minimal amounts of money, like you're able to invest 521 00:22:38,560 --> 00:22:41,479 Speaker 5: like one cent or a dollar or something small, is 522 00:22:41,520 --> 00:22:45,680 Speaker 5: probably where at a beginner level is at. Obviously, when 523 00:22:45,720 --> 00:22:48,320 Speaker 5: it comes to micro investing. That is different than a 524 00:22:48,400 --> 00:22:51,400 Speaker 5: direct share platform, where you're able to go and pick 525 00:22:51,480 --> 00:22:54,680 Speaker 5: the actual share. A micro investing platform, while you might 526 00:22:54,720 --> 00:22:57,399 Speaker 5: be able to pick your risk profile, you don't have 527 00:22:57,600 --> 00:23:01,159 Speaker 5: any control over the actual investment. Meant options that are 528 00:23:01,160 --> 00:23:04,600 Speaker 5: available to you. You can pick, oh, I'm a conservative 529 00:23:04,760 --> 00:23:07,080 Speaker 5: or an aggressive investor, or you might even be an 530 00:23:07,080 --> 00:23:11,040 Speaker 5: ethically conscious investor. But what's in that profile is just 531 00:23:11,160 --> 00:23:14,240 Speaker 5: the set by the platform, and it's not actually controllable 532 00:23:14,240 --> 00:23:17,359 Speaker 5: by you. And obviously it's going to depend which micro 533 00:23:17,440 --> 00:23:20,720 Speaker 5: investing platform you choose, but like lots of them actually 534 00:23:20,720 --> 00:23:23,000 Speaker 5: now have the ability to round up your spare change, 535 00:23:23,400 --> 00:23:25,920 Speaker 5: which is kind of cool if you're not a massive 536 00:23:25,960 --> 00:23:28,000 Speaker 5: investor and kind of want to dip your toes in 537 00:23:28,000 --> 00:23:29,639 Speaker 5: the water. But you also don't know what to spend 538 00:23:29,640 --> 00:23:32,159 Speaker 5: each month and you know that your oat latte is 539 00:23:32,200 --> 00:23:34,560 Speaker 5: going to cost. Get this, I paid five dollars fifty 540 00:23:34,600 --> 00:23:37,240 Speaker 5: for an oat latte the other day. Where was that gross? 541 00:23:37,320 --> 00:23:39,480 Speaker 5: I'm not going to tell because last time I ended 542 00:23:39,560 --> 00:23:42,440 Speaker 5: up creating a daily mail drawer and coffee gate Heaven, 543 00:23:42,600 --> 00:23:45,560 Speaker 5: so we're not going to talk about that. But I 544 00:23:45,600 --> 00:23:47,760 Speaker 5: paid five dollars fifty for a Latte, and I still 545 00:23:47,800 --> 00:23:50,080 Speaker 5: do play with micro investing platforms because I just find 546 00:23:50,119 --> 00:23:52,199 Speaker 5: them interesting and I kind of because I exist in 547 00:23:52,240 --> 00:23:54,040 Speaker 5: this sphere of cheese on the money, I kind of 548 00:23:54,080 --> 00:23:56,000 Speaker 5: like knowing what's going on. Like if you guys are 549 00:23:56,000 --> 00:23:58,840 Speaker 5: talking in a Facebook group about a particular investment platform, 550 00:23:58,840 --> 00:24:00,440 Speaker 5: I'm going to be like, yeah, I understand and exactly 551 00:24:00,480 --> 00:24:02,600 Speaker 5: what they're talking about because I have personal experience with 552 00:24:02,680 --> 00:24:05,280 Speaker 5: this because I put fifty cents there. But essentially, if 553 00:24:05,320 --> 00:24:09,160 Speaker 5: you round up your purchases, that five dollars fifty late 554 00:24:09,640 --> 00:24:11,760 Speaker 5: goes up to six dollars to the nearest dollar and 555 00:24:11,840 --> 00:24:14,439 Speaker 5: invest fifty cents on your behalf, which is kind of 556 00:24:14,440 --> 00:24:16,639 Speaker 5: cool to know that every single platform is kind of 557 00:24:16,680 --> 00:24:19,640 Speaker 5: like looking after you. But then you step up right 558 00:24:19,880 --> 00:24:22,720 Speaker 5: and the next was intermediate level. We're talking about DIY 559 00:24:22,800 --> 00:24:26,760 Speaker 5: investment platforms, but some of them give you the ability 560 00:24:26,800 --> 00:24:29,000 Speaker 5: to invest with azulla as one cent, So like our 561 00:24:29,040 --> 00:24:31,520 Speaker 5: friends from Charesas, we talk about them quite often because 562 00:24:31,560 --> 00:24:34,199 Speaker 5: we work with them quite closely. Use the code so 563 00:24:34,200 --> 00:24:37,040 Speaker 5: SotM for a free ten dollars when you sign up, 564 00:24:37,080 --> 00:24:38,600 Speaker 5: which I just think is a really good money in 565 00:24:38,720 --> 00:24:40,359 Speaker 5: I don't make any money off that code by the 566 00:24:40,359 --> 00:24:42,480 Speaker 5: way we talk to them, And I want to say 567 00:24:42,480 --> 00:24:44,880 Speaker 5: that clearly because I don't want people to think, like, oh, 568 00:24:44,920 --> 00:24:48,080 Speaker 5: she's using a referral code that means she'll get ten bucks. Sure, No, 569 00:24:48,280 --> 00:24:50,720 Speaker 5: we talked about it. It could be five dollars each. 570 00:24:51,040 --> 00:24:52,919 Speaker 5: Or I could have given you guys ten bucks to 571 00:24:52,960 --> 00:24:55,160 Speaker 5: sign up, and I'd prefer you guys to have ten 572 00:24:55,200 --> 00:24:57,159 Speaker 5: bucks to sign up, because I don't want you to 573 00:24:57,200 --> 00:24:59,399 Speaker 5: think that I'm recommending something because I'm being paid. 574 00:25:00,200 --> 00:25:00,880 Speaker 1: Does that make sense? 575 00:25:00,920 --> 00:25:03,080 Speaker 5: Like I only work with brands that I genuinely know, 576 00:25:03,280 --> 00:25:05,119 Speaker 5: trust and think are going to put you in a 577 00:25:05,119 --> 00:25:08,280 Speaker 5: good position. Right anyway, Sidetrack you can invest with them 578 00:25:08,320 --> 00:25:10,520 Speaker 5: for as little as one cent, whereas if you went 579 00:25:10,560 --> 00:25:13,480 Speaker 5: over to another platform that's quite popular in our community, 580 00:25:13,600 --> 00:25:16,879 Speaker 5: self Wealth, you need a minimum of five hundred dollars 581 00:25:16,920 --> 00:25:20,440 Speaker 5: to enter that platform and start investing, which is fine 582 00:25:20,920 --> 00:25:23,560 Speaker 5: because if that's what your progative is, that's what your 583 00:25:23,560 --> 00:25:26,720 Speaker 5: prerogative is. But they have different bells and whistles that 584 00:25:26,760 --> 00:25:29,679 Speaker 5: Shareszy's might not have, So like Chasey's gives you like 585 00:25:29,920 --> 00:25:33,720 Speaker 5: base level of information it's really digestible, whereas self Wealth 586 00:25:33,840 --> 00:25:36,880 Speaker 5: it actually is far more technical, and it gives you 587 00:25:36,920 --> 00:25:40,640 Speaker 5: like insights and guidance and like reports on each company. 588 00:25:40,800 --> 00:25:42,200 Speaker 1: It's going to be a bit more deep. 589 00:25:42,560 --> 00:25:45,600 Speaker 5: Some people want that, Some people get analysis paralysis when 590 00:25:45,640 --> 00:25:47,680 Speaker 5: they go on a platform like that, but I think 591 00:25:47,720 --> 00:25:51,560 Speaker 5: we deserve to have the transparency of understanding where it is. Anyway, 592 00:25:51,600 --> 00:25:53,359 Speaker 5: go listen to that episode because I won't, you know, 593 00:25:53,440 --> 00:25:55,679 Speaker 5: redo the whole episode here. And I think that that 594 00:25:55,760 --> 00:25:58,760 Speaker 5: could be quite powerful for you to understand because there's 595 00:25:58,840 --> 00:26:01,840 Speaker 5: actually a lot of different platforms that are accessible to 596 00:26:01,920 --> 00:26:05,040 Speaker 5: people who are investing with a low income. So there's 597 00:26:05,080 --> 00:26:08,600 Speaker 5: micro investing, and there's investment platforms that are able to 598 00:26:08,680 --> 00:26:10,359 Speaker 5: be invested on with one cent. 599 00:26:10,920 --> 00:26:12,080 Speaker 1: But then there are also ones. 600 00:26:12,160 --> 00:26:14,359 Speaker 5: Let's be honest that if you discovered them first, you 601 00:26:14,440 --> 00:26:16,640 Speaker 5: might assume that you are just out of the market 602 00:26:16,680 --> 00:26:18,640 Speaker 5: because you don't have that five hundred dollars to start 603 00:26:18,720 --> 00:26:21,159 Speaker 5: right back, Like if you did your research and just 604 00:26:21,200 --> 00:26:23,960 Speaker 5: said top investing platforms in Australia and self wealth came 605 00:26:24,040 --> 00:26:25,960 Speaker 5: up first, and you hadn't listened to Cheese on the 606 00:26:25,960 --> 00:26:28,720 Speaker 5: Money and you didn't understand this market, you go, oh, 607 00:26:28,760 --> 00:26:31,960 Speaker 5: I don't have five hundred bucks. I thought investing might 608 00:26:31,960 --> 00:26:33,359 Speaker 5: have been for me and it's not, and then the 609 00:26:33,359 --> 00:26:36,560 Speaker 5: conversation ends there. Whereas if we give you everything on 610 00:26:36,600 --> 00:26:39,280 Speaker 5: a platter and I say, okay, here's your education, please 611 00:26:39,320 --> 00:26:41,760 Speaker 5: absorb all of this. Now here's a table which is 612 00:26:41,800 --> 00:26:44,480 Speaker 5: actually in my investing book, and I think I also 613 00:26:44,560 --> 00:26:46,719 Speaker 5: have it for free download on my website, or make 614 00:26:46,760 --> 00:26:48,879 Speaker 5: sure it is if it's not by the time this 615 00:26:48,960 --> 00:26:51,840 Speaker 5: episode comes out, though, And it's basically a table that 616 00:26:51,920 --> 00:26:55,439 Speaker 5: compares all of the platforms, their features, their benefits, how 617 00:26:55,520 --> 00:26:57,919 Speaker 5: much they cost, what their minimum investments are, and what 618 00:26:58,000 --> 00:27:00,439 Speaker 5: other like bells and whistles and information you need on it, 619 00:27:00,560 --> 00:27:04,840 Speaker 5: because I couldn't find one place that wasn't an advertising 620 00:27:04,880 --> 00:27:07,760 Speaker 5: platform that compared them. Because I was like, all right, well, 621 00:27:07,800 --> 00:27:09,440 Speaker 5: you deserve to be able to see the fees on 622 00:27:09,560 --> 00:27:12,439 Speaker 5: Rays versus Spaceship if you're planning on micro investing and 623 00:27:12,520 --> 00:27:16,320 Speaker 5: have it be really transparent. Everywhere was a paid advertising 624 00:27:16,359 --> 00:27:18,879 Speaker 5: platform or like you go onto the Raise website and 625 00:27:18,880 --> 00:27:21,280 Speaker 5: they're talking about the Spaceship fees, I'm like, well, that's 626 00:27:21,320 --> 00:27:22,119 Speaker 5: not going to be the. 627 00:27:21,960 --> 00:27:25,080 Speaker 1: Best place to get information about whether Spaceship's good for 628 00:27:25,119 --> 00:27:25,520 Speaker 1: me or not. 629 00:27:25,640 --> 00:27:28,680 Speaker 5: Right, So I think it's all about doing your research, 630 00:27:28,760 --> 00:27:32,520 Speaker 5: but then also not feeling overwhelmed because investing in twenty 631 00:27:32,560 --> 00:27:35,800 Speaker 5: twenty three is super accessible and you can do it 632 00:27:35,960 --> 00:27:38,560 Speaker 5: and it is absolutely worth doing it, Like it is 633 00:27:38,600 --> 00:27:41,440 Speaker 5: not something that we do because you need millions in retirement. 634 00:27:41,720 --> 00:27:46,239 Speaker 5: Do not feel that pressure, like discount that completely, but 635 00:27:46,320 --> 00:27:50,159 Speaker 5: like start building your financial literacy. I've had people ask me, oh, Vie, 636 00:27:50,280 --> 00:27:53,160 Speaker 5: I'm just so excited about my investment journey, but I'm 637 00:27:53,200 --> 00:27:55,720 Speaker 5: still in a bit of personal debt. If that's what's 638 00:27:55,760 --> 00:27:58,359 Speaker 5: going to motivate you, and you already have your emergency 639 00:27:58,359 --> 00:28:00,280 Speaker 5: fund and you are up to date on your pains 640 00:28:00,920 --> 00:28:03,600 Speaker 5: five or ten bucks invested on an investment platform, so 641 00:28:03,640 --> 00:28:06,160 Speaker 5: that you feel like your life is progressing and you 642 00:28:06,200 --> 00:28:09,080 Speaker 5: feel like you are getting ahead financially, that's a good 643 00:28:09,080 --> 00:28:12,000 Speaker 5: investment from my perspective. Yeah, Like you need to make 644 00:28:12,000 --> 00:28:14,520 Speaker 5: the right decision for you though, and I can't tell 645 00:28:14,560 --> 00:28:17,000 Speaker 5: you what that is because for a lot of other people, 646 00:28:17,000 --> 00:28:18,680 Speaker 5: they'd be like, oh my gosh, I don't even want 647 00:28:18,920 --> 00:28:22,760 Speaker 5: one share or one one cent edf before I'm out 648 00:28:22,760 --> 00:28:24,760 Speaker 5: of debt, because that will give me anxiety because that 649 00:28:24,800 --> 00:28:26,479 Speaker 5: money could have been getting me out of debt. 650 00:28:26,920 --> 00:28:28,760 Speaker 1: But at the end of the day, it's. 651 00:28:28,600 --> 00:28:31,280 Speaker 5: A completely personal decision, and I think that you guys 652 00:28:31,359 --> 00:28:33,959 Speaker 5: need to make that yourselves. But my job is to 653 00:28:33,960 --> 00:28:36,159 Speaker 5: just give you all of the resources that you deserve 654 00:28:36,240 --> 00:28:39,360 Speaker 5: to have access to to make those decisions properly for yourself. 655 00:28:39,520 --> 00:28:41,880 Speaker 1: I love that, I reckon that's all we have time 656 00:28:41,920 --> 00:28:42,280 Speaker 1: for today. 657 00:28:42,400 --> 00:28:45,760 Speaker 5: V Now, oh, I'm not telling I know I could 658 00:28:45,840 --> 00:28:47,800 Speaker 5: go on and on and on, and I have before 659 00:28:47,960 --> 00:28:50,360 Speaker 5: I know. Thank you've actually written down a cute little 660 00:28:50,400 --> 00:28:52,840 Speaker 5: list of a few episodes that you think people should 661 00:28:52,840 --> 00:28:54,280 Speaker 5: go back to to listen to. 662 00:28:54,760 --> 00:28:56,520 Speaker 1: They haven't already, what are they? 663 00:28:56,880 --> 00:28:58,960 Speaker 4: Yes, So obviously we have done a few episodes this 664 00:28:59,040 --> 00:29:01,040 Speaker 4: year that will be very helpful to you. So the 665 00:29:01,080 --> 00:29:04,200 Speaker 4: first one I'm thinking of is I believe it was 666 00:29:04,200 --> 00:29:07,160 Speaker 4: the fourth of Jam we did setting up an investment 667 00:29:07,200 --> 00:29:09,720 Speaker 4: plan for the new year yep. And then feb first, 668 00:29:09,760 --> 00:29:11,640 Speaker 4: we is Scarcity Mindset investing. 669 00:29:11,760 --> 00:29:12,440 Speaker 1: That was a good one. 670 00:29:12,480 --> 00:29:14,960 Speaker 5: I mean, I'm biased because it was literally my podcast, 671 00:29:15,080 --> 00:29:17,600 Speaker 5: but I think it's important to talk about scarcity mindset 672 00:29:17,640 --> 00:29:20,080 Speaker 5: because that could be a roadblock to you actually starting 673 00:29:20,120 --> 00:29:23,800 Speaker 5: the process, definitely. And then finally March first, we did 674 00:29:23,920 --> 00:29:26,440 Speaker 5: back to basics of investing. 675 00:29:25,840 --> 00:29:27,240 Speaker 1: Which was very sexy as well. 676 00:29:27,320 --> 00:29:30,000 Speaker 5: Yeah, I feel like it's as though I'm obsessed with 677 00:29:30,120 --> 00:29:31,800 Speaker 5: investing and I want you guys to have as much 678 00:29:31,800 --> 00:29:33,720 Speaker 5: information as possible. And if you think I'm done with 679 00:29:33,840 --> 00:29:37,680 Speaker 5: investing topics, no, We'll keep on keeping on going, to 680 00:29:37,720 --> 00:29:38,280 Speaker 5: keep on coming. 681 00:29:38,800 --> 00:29:40,080 Speaker 1: That is all we have time for today. 682 00:29:40,120 --> 00:29:42,840 Speaker 5: If you want the investing conversations to continue, feel free 683 00:29:42,880 --> 00:29:45,440 Speaker 5: to join our Facebook group where we have judgment free 684 00:29:45,440 --> 00:29:49,680 Speaker 5: conversations about money and investing every single day. Join us, 685 00:29:49,720 --> 00:29:52,160 Speaker 5: I would love it. We're also really active on TikTok. 686 00:29:52,200 --> 00:29:54,160 Speaker 5: At the moment, we're not that good at it, but 687 00:29:54,280 --> 00:29:55,840 Speaker 5: we appreciate your support. 688 00:29:55,960 --> 00:29:56,760 Speaker 4: I love TikTok. 689 00:29:56,920 --> 00:29:59,400 Speaker 1: We will see you guys on Friday for our wrap. 690 00:29:59,480 --> 00:29:59,840 Speaker 3: So you guys. 691 00:30:06,120 --> 00:30:08,640 Speaker 6: The advice shared on She's on the Money is general 692 00:30:08,720 --> 00:30:12,560 Speaker 6: in nature and does not consider your individual circumstances. She's 693 00:30:12,600 --> 00:30:16,000 Speaker 6: on the Money exists purely for educational purposes and should 694 00:30:16,080 --> 00:30:19,280 Speaker 6: not be relied upon to make an investment or financial decision. 695 00:30:19,640 --> 00:30:22,160 Speaker 1: If you do choose to buy a financial product. 696 00:30:21,920 --> 00:30:25,440 Speaker 6: Read the PDS TMD and obtain appropriate financial. 697 00:30:25,040 --> 00:30:26,840 Speaker 1: Advice tailored towards your needs. 698 00:30:27,160 --> 00:30:31,120 Speaker 6: Victoria Divine and She's on the money are authorized representatives 699 00:30:31,160 --> 00:30:35,040 Speaker 6: of money. Shepper pty Ltd ABN three two one IS 700 00:30:35,080 --> 00:30:38,920 Speaker 6: six four nine two seven seven zero eight AFSL four 701 00:30:39,040 --> 00:30:43,000 Speaker 6: five one two eight nine