Speaker 1: Hello.
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we
Speaker 2: get started on She's on the Money podcast, I would
Speaker 2: like to acknowledge the traditional custodians of the land of
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
Speaker 2: the elders, the ancestors and the next generation coming through
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
Speaker 2: the storytelling of you to make a difference for today
Speaker 2: and lasting impact for tomorrow.
Speaker 1: Let's get into it.
Speaker 3: She's on the Money. She's on the Money.
Speaker 4: Hello, and welcome to She's on the Money podcast for
Speaker 4: millennials who want financial freedom. My name is beck Syed
Speaker 4: and with me is Victoria Divine.
Speaker 1: I Reckon.
Speaker 4: Let's talk more about investments today.
Speaker 1: V what do you think. I'm very excited to have
Speaker 1: been given permission to do more investing content as you know, Yes,
Speaker 1: my favor, I'm ready for this.
Speaker 4: I'm so excited.
Speaker 1: I don't know if you are actually excited, but you
Speaker 1: seem excited to be. He've got a coffee. You're ready,
Speaker 1: But let's get into it.
Speaker 4: I'm so ready, but as you know, I have like
Speaker 4: no money. I kind of just got like a better
Speaker 4: paying job, as you know. But right now I.
Speaker 1: Think saying I have no money, that's that's a fact.
Speaker 1: That's like you don't have nothing, but yeah, when you
Speaker 1: have opportunity. You have such an epic salary now and
Speaker 1: I'm not going to share it on the pod.
Speaker 4: But like she's doing well, you're doing he's doing well
Speaker 4: for every Eventually I'll be doing well. I've got so
Speaker 4: much back pay of like all these things that I
Speaker 4: haven't paid for in years, like a service for my car.
Speaker 4: Eventually I'll be doing well when I'm.
Speaker 1: So sexy up. But just having the ability to pay
Speaker 1: for things like that. I feel like this episode obviously
Speaker 1: is investing. We're going to talk about investing on a
Speaker 1: low income, which you would have seen when you clicked
Speaker 1: the title. But I would hate for people to think
Speaker 1: that this is going to be the priority over all
Speaker 1: of those other important things. Like you know, we're not
Speaker 1: going to talk about it too much, but I genuinely
Speaker 1: think we should be setting up our financial foundations right
Speaker 1: like it's making sure that your car is serviced and
Speaker 1: you are safe on the roads, making sure you have
Speaker 1: an emergency account and building that up because if anything
Speaker 1: does happen, you've got something to pull back on. And
Speaker 1: if you've always lived on a low income, that emergency
Speaker 1: fund is going to feel like financial freedom wrapped up
Speaker 1: in a little bundle. That makes you feel so empowered
Speaker 1: because you've just never had that before. Yeah, Like you've
Speaker 1: just never been in a situation where if something happens,
Speaker 1: you end up in a circumstance where it's like, oh well, actually, Beck,
Speaker 1: that's fine because you've got savings for that tot doesn't
Speaker 1: seem sexy. But I mean, that's not what we're talking
Speaker 1: about today. But like I think we should really address
Speaker 1: before we talk about this, This investing on a low
Speaker 1: income comes after all the basics have been met, and
Speaker 1: you know what, it's okay to not be able to
Speaker 1: invest at this point in life. I do think that
Speaker 1: this content is really about educating you so that you
Speaker 1: have the best opportunities and you know what investing is.
Speaker 1: But there are so many people in our community right
Speaker 1: now who are struggling with the rising cost of living
Speaker 1: or how much their mortgage is gone up, or how
Speaker 1: much their rent has gone up, or just putting food
Speaker 1: on the table, or they might be struggling with employment.
Speaker 1: And I think that content like this, if not framed properly,
Speaker 1: could make you feel really bad because you go, oh
Speaker 1: my gosh, I listened to this podcast and it said
Speaker 1: that I had to be investing otherwise I'm not doing
Speaker 1: the right thing financially.
Speaker 2: Right.
Speaker 1: That's not true. No, that's not true at all. Like, yeah,
Speaker 1: to create like long term financial security. In a perfect world,
Speaker 1: everyone would have the ability to invest, but our government's
Speaker 1: been doing us a dirty Beck, And we're not all
Speaker 1: in that position. And I think that as long as
Speaker 1: we're educating ourselves and know that we have that opportunity,
Speaker 1: at some point might not be today. And that's okay.
Speaker 1: I think we just need to understand that because it's
Speaker 1: also not about judging and going, oh my gosh. Well
Speaker 1: Victoria is talking to Beck and has a good salary
Speaker 1: so she can doesn't have kids, so she doesn't know
Speaker 1: what it's like. Sure, my experience is not your experience,
Speaker 1: and that is totally okay, But we should be celebrating
Speaker 1: the fact that we're all in a position where if
Speaker 1: one of us is successful, we're all successful. Like a
Speaker 1: rising kite is going to lift all ships and we
Speaker 1: should all be educated on this. That is beautiful.
Speaker 2: It was.
Speaker 1: Are we done? Like I can just leave now, Mic
Speaker 1: drop go away.
Speaker 4: No, it kind of feels like that, but I do
Speaker 4: have some questions. That's okay, I'm ready. First of all,
Speaker 4: is it even worth it to invest if you have
Speaker 4: no money?
Speaker 1: Yeah? Absolutely it is. And I feel like for a
Speaker 1: lot of people, it's going to be a foreign concept
Speaker 1: that we haven't tackled before. I mean, Becky and I
Speaker 1: have spoken about it before. Your parents wouldn't have taught
Speaker 1: you about investing because it just wasn't something that was
Speaker 1: even on their radars. It wasn't an option, it wasn't
Speaker 1: something that you were surrounded by. So now you're kind
Speaker 1: of starting at base levels and we're building up that
Speaker 1: financial literacy. So one day you're going to go, oh,
Speaker 1: I'm doing this, and I cannot wait for the day
Speaker 1: where you're like, yep, and I own this ETF doing this,
Speaker 1: and I'm just gonna be like bare clock where you've
Speaker 1: come from, Like, warn't that be wild dubbing it? Not
Speaker 1: only are you investing, because like, investing can be really transactional, right,
Speaker 1: Like you could become an investor, and I mean you
Speaker 1: are already because you've got superannuation. But you could go
Speaker 1: download the shares exapp and pop five bucks on an
Speaker 1: ETF or in an ETF sorry, and go from there,
Speaker 1: and that would make you an immediate investor. But the
Speaker 1: important thing to me is actually that you understand that
Speaker 1: you understand the concept of investing. You understand what you've
Speaker 1: put your money in and why you've put your money
Speaker 1: in there, and you understand what potential dividends and yield
Speaker 1: that's going to have, and that doesn't come overnight. But
Speaker 1: at the end of the day, the question you're asking
Speaker 1: is Victoria is at worth investing small amounts of money?
Speaker 1: And the answer is unequivocally yes. And there's a few
Speaker 1: reasons for this. So investing small amounts of money sets
Speaker 1: you up for the best possible financial security and financial
Speaker 1: success long term. It's not going to be a secret
Speaker 1: that five bucks every single month is not going to
Speaker 1: create a secure retirement, right, But you know what it
Speaker 1: does do educates you on the process. It puts you
Speaker 1: in control of having a platform that you know has
Speaker 1: that power behind it. It means that that platform already exists.
Speaker 1: Should you come into some extra money that you do
Speaker 1: want to invest, you know how to invest it and
Speaker 1: what that means. It puts you in a position of
Speaker 1: power where every single time your income increases, instead of
Speaker 1: falling victim to lifestyle creep and being like, oh my gosh,
Speaker 1: I just don't know where all my money is going back,
Speaker 1: you can go all right, well, actually I've gotten a
Speaker 1: pay rise. I'm going to contribute this to my pre
Speaker 1: existing portfolio, and there's not a lot of thought about it.
Speaker 1: It puts you in the position where you are not
Speaker 1: only educated on the topic, but you've walked to the walk.
Speaker 1: You know exactly what it means and how it works
Speaker 1: and how it makes you feel. You know, oh my gosh,
Speaker 1: I've been in this particular ETF. But I've now changed
Speaker 1: my mind and I want something a bit more ethical
Speaker 1: because my values aligned differently, and like, that's a really
Speaker 1: cool position to be in. I want you to and
Speaker 1: perfectly on a lower income, because like, the less you're investing,
Speaker 1: the less risk there is.
Speaker 2: Right.
Speaker 1: I want you to see the ebbs and flows of
Speaker 1: the market. I want you to log into your account
Speaker 1: sometimes and see that it's a bit off and go, oh,
Speaker 1: I don't really like that. I've never logged into my
Speaker 1: account even when I was a financial advisor and thought, oh,
Speaker 1: it's off. I love that, Like it makes me feel
Speaker 1: a little bit sick. I'm like, oh, have I done
Speaker 1: the wrong things? Like where you log in, if you
Speaker 1: see you have less, you are automatically going to feel
Speaker 1: that that's negative. Right, But then when I stay invested
Speaker 1: over the long term, that increases again and it builds
Speaker 1: itself back up. I want you to have that experience
Speaker 1: before we get to the big dollar amounts, right, I
Speaker 1: want you to be okay with investing five bucks and
Speaker 1: then going all right, well, I mean it's down four
Speaker 1: dollars this week, that's kind of okay, that's all right
Speaker 1: because it's not four thousand dollars instead of five thousand dollars.
Speaker 1: You know, if I can teach you with the small
Speaker 1: amounts the big amount it's not going to be stressful,
Speaker 1: like you're setting yourself up for future success and at
Speaker 1: the end of the day, like it does financially benefit you.
Speaker 1: So if you're investing over a ten year period with
Speaker 1: an average rate of return of six percent, which is
Speaker 1: really low because we know the average rate of return
Speaker 1: of the Australian share market over the last thirty years
Speaker 1: has been nine point eight percent. Right, I've just gone
Speaker 1: with six because we're pretty conservative in this house. If
Speaker 1: you're investing twenty five bucks a month, which I think
Speaker 1: is for a lot of people a start point because
Speaker 1: they just go all right, well, I can't afford a
Speaker 1: whole heap, but I want not five dollars and I
Speaker 1: don't want ten. I want maybe twenty five. I feel
Speaker 1: like that feels comfortable, comfortable, It feels comfortable. If you
Speaker 1: had saved twenty five dollars each and every single month
Speaker 1: for ten years, you'd have three thousand dollars. But if
Speaker 1: you had invested it with an average rate of return
Speaker 1: of six percent, you'd have four thousand and ninety seven dollars.
Speaker 1: Oh wow, that's one thousand and ninety seven dollars more
Speaker 1: than you wouldn't have had before. Right, Like from little things,
Speaker 1: big things really do grow. And I mean the power
Speaker 1: of compounding happens one with the scale of what you're investing,
Speaker 1: but two with time. So if you went from ten
Speaker 1: years to twenty years, that would probably double again. Because
Speaker 1: money on average based on the rule of seventy two,
Speaker 1: which is a finance concept that basically says that money doubles.
Speaker 1: Let's call it every ten years, that in another ten
Speaker 1: years from now, that one thousand's going to be worth
Speaker 1: two thousand, and then in another ten years that two
Speaker 1: thousand is going to be worth four thousand, and then
Speaker 1: in another ten years that four thousand's worth eight thousand.
Speaker 1: So the power of compounding is actually in time. But hypothetically,
Speaker 1: if you were investing fifty bucks a month, if you'd
Speaker 1: saved that, that would be double what you were doing
Speaker 1: with twenty five, So that'd be six grand, But if
Speaker 1: you invested it, it'd be eight thousand, one hundred and
Speaker 1: ninety four dollars. That's a difference of just over two grand.
Speaker 1: That's sick, pretty sweet, that's sick. Like So I feel
Speaker 1: like we really need to normalize investing small amounts because
Speaker 1: I think so many times, and you guys would have
Speaker 1: heard me on the pod before being like, oh, well,
Speaker 1: if you invest five hundred dollars a month, I use
Speaker 1: that as a good example to educate you. Not because
Speaker 1: I immediately think everyone can afford five hundred bucks a month,
Speaker 1: No way, like in this economy.
Speaker 4: Not in this economy, this economy you're dreaming exactly, you're dreaming.
Speaker 1: And I feel like, if you are investing five hundred
Speaker 1: dollars a month, that's awesome, congrats on the privilege, that's
Speaker 1: absolutely fantastic. If you're doing more than that, like get
Speaker 1: it clean, I'm so excited for you. But I also
Speaker 1: wouldn't want people in our community feeling awful because they're
Speaker 1: not achieving the goals that other people are achieving. I've
Speaker 1: talked about it so many times. You're all on different trajectories,
Speaker 1: you are all on different journeys, we're all at different
Speaker 1: stages in those journeys. Yes, and I would hate for
Speaker 1: you to go, oh my gosh, well, if I'm not
Speaker 1: investing five hundred dollars a month, because that's Victoria's like
Speaker 1: go to example, that means it's not good enough. No,
Speaker 1: it's just a really sexy number. To be honest, it is.
Speaker 1: It's nice, like it's a clean it's a round number. Yeah,
Speaker 1: and it compounds over time, you know, at the end
Speaker 1: of the day. I've used this example. But if you
Speaker 1: were twenty one and you started investing over the long term,
Speaker 1: and you invested five hundred dollars each and every single month,
Speaker 1: all the way through to retirement. If you had saved,
Speaker 1: that would be two hundred and forty thousand dollars that
Speaker 1: you'd saved. But if you'd invested, that would be more
Speaker 1: than one point two million dollars. That's sexy money, but
Speaker 1: a fairy nice. That example makes you go, aw, that's
Speaker 1: a bit more powerful than just talking about this. Oh,
Speaker 1: if I invest twenty five dollars. It's not to say
Speaker 1: the twenty five dollars isn't powerful. It's so powerful, I
Speaker 1: promise you. But beck the word a million, Like the
Speaker 1: second you tip over that, you go, I'm capable of that. Yeah, yeah,
Speaker 1: you are. You absolutely are capable of that. And a
Speaker 1: lot of us who are in full time employment are
Speaker 1: actually contributing about that or just over towards superannuation. So
Speaker 1: you're already doing it. And that's why I care so
Speaker 1: much about you guys checking up on your super and
Speaker 1: making sure that your super's doing the right thing, because
Speaker 1: if it's not invested properly, you know, short changing yourself
Speaker 1: for about a million dollars. It's a lot of dollars, a.
Speaker 4: Lot of dollars that you could be short changing yourself.
Speaker 1: Yeah, exactly, one out of ten cannot recommend short changing yourself,
Speaker 1: terrible idea.
Speaker 4: Do you just want to mention for anyone listening and
Speaker 4: maybe isn't familiar with those catch words like EFT dividends,
Speaker 4: we did coming?
Speaker 1: Do you mean ETF? But that's okay, I mean I
Speaker 1: feel like that that's really relatable an exchange traded fund.
Speaker 4: Yes, but we did do an episode.
Speaker 1: We did, and we've covered those and I feel like
Speaker 1: this is one of those things where I'm not trying
Speaker 1: to confuse you. I feel like there have been a
Speaker 1: lot of media who com middle aged white men who
Speaker 1: historically have used a lot of acronyms to scare us
Speaker 1: out of the market and make themselves feel smarter than
Speaker 1: they actually are. Like how flippant You're at brunch and
Speaker 1: you're like, look over to the table beside you, and
Speaker 1: there's guys and they're sitting there at brunch on Saturday
Speaker 1: morning wearing suits, and you're like, I don't know what
Speaker 1: you think you are.
Speaker 5: And I invested in this etof and I do this
Speaker 5: and I got this yield, Like you've seen them at
Speaker 5: brunch before, Like they're just like investing bros who think
Speaker 5: they're really smart and usually you're like eavesdrop on the
Speaker 5: conversation if you're me, because like I can't egs drop, right,
Speaker 5: you eavesdrop on the conversation.
Speaker 1: Then they start talking about like big queen and stuff,
Speaker 1: and you're just like, you've got no idea.
Speaker 4: If they are no idea, if they ask me a question,
Speaker 4: I will cry on this. I'll not have any idea.
Speaker 1: ETF is actually quite and I won't say it's simple
Speaker 1: because it's not. It's actually quite complicated. But for you
Speaker 1: to understand it is quite simple. ETF is an exchange
Speaker 1: traded fund, which sounds complicated, but essentially it's a basket
Speaker 1: of shares. So if you buy that instead of a
Speaker 1: direct share, you're getting instant diversification, and diversification is meaning
Speaker 1: that you're just not putting all your eggs in one basket.
Speaker 1: You're getting lots of different companies that somebody else has picked.
Speaker 1: You might feel a bit more secure with that decision,
Speaker 1: and it just is kind of like a list of
Speaker 1: different investments that are going to be way more affordable
Speaker 1: to purchase because you're just buying fractions of that share
Speaker 1: as opposed to going in and buying, you know, a
Speaker 1: whole BHP share or a whole A and Z share,
Speaker 1: Like I couldn't afford to own every single thing in
Speaker 1: an ETF outright, but if I put my money into
Speaker 1: that ETF, I could have exposure to all those things immediately. Yes,
Speaker 1: that's a good thing. That's really sexy. And if you
Speaker 1: are somebody who is interested in the share market and
Speaker 1: you're like, oh my gosh, I want to invest five
Speaker 1: bucks a month fee, maybe have a look in an ETF.
Speaker 1: Maybe have a look at something that gives you the
Speaker 1: exposure to a particular asset class or gives you exposure
Speaker 1: to a particular market, because I mean you could go
Speaker 1: to the ASX two hundred, which is the Australian share
Speaker 1: market's top two hundred companies. That seems pretty simple. Yeah,
Speaker 1: if you don't want your investment journey to be complicated,
Speaker 1: it doesn't have to be. I think so many times
Speaker 1: we give ourselves analysis paralysis, right, Like I need to
Speaker 1: make the right investment decision. We can change it later, babe,
Speaker 1: Like it doesn't matter. Just get your feet into the water,
Speaker 1: because it starts getting a little bit more comfortable the
Speaker 1: longer your feeder in.
Speaker 4: Right, totally, just jam that foot in the door.
Speaker 1: Baby, please do like, don't probably don't jam your foot
Speaker 1: in the don't jet up with a bruise, but like,
Speaker 1: dip your toes into the water. I promise the pools
Speaker 1: real warm and we're having a party.
Speaker 4: Yeah that sounds like so much fun.
Speaker 1: It's way more fun than what investment actually is. So
Speaker 1: I'm lulling you into this false sense of security so
Speaker 1: that you all benefits.
Speaker 4: Yeah, it's I'm the cool mom.
Speaker 1: I'm not a regular mom. I'm a cool investment mark.
Speaker 4: I feel that. I feel that now VI, I heard
Speaker 4: you mention the term dollar cost averaging.
Speaker 1: I have thrown that around a few times historically, and like,
Speaker 1: to be fair, I'm going to be honest with you.
Speaker 4: I kind of just smiled and nodded, but I actually
Speaker 4: have no idea what okay?
Speaker 1: So that means you're giving yourself exposure to the market
Speaker 1: a lots of different points. So say you have twelve
Speaker 1: hundred dollars to invest, right, You're like, I really want
Speaker 1: to invest twelve hundred dollars and you've got it in
Speaker 1: your savings account. How do you know that today is
Speaker 1: a good day to enter the share market? I don't
Speaker 1: know that you don't know that I could look at
Speaker 1: the historical performance and be like, okay, cool. Based on history,
Speaker 1: maybe today is a good day. But as a very
Speaker 1: good ex financial advisor beck, past performance is not indicative
Speaker 1: of future performance. And we know that that is true.
Speaker 1: But what we can do, because unfortunately, timing the market
Speaker 1: isn't a thing unless you're Warren Buffett and you somehow
Speaker 1: have this insane ability to vest really well. The average
Speaker 1: person doesn't have that. So the next best thing we
Speaker 1: can do to timing the market is have time in
Speaker 1: the market. And so when we have time in the market,
Speaker 1: that means instead of dumping that twelve hundred bucks in
Speaker 1: in all one lump, you might choose to put one
Speaker 1: hundred dollars in each and every single month. And that
Speaker 1: means if you, you know, bought ten shares that are
Speaker 1: worth ten dollars this month, well next month they actually
Speaker 1: might have gone down a little bit, and so you
Speaker 1: have the same ten dollars to invest. But you know,
Speaker 1: let's be dramatic, the share market's dropped by fifty percent.
Speaker 1: So instead of buying ten shares for ten dollars, you're
Speaker 1: now able to buy twenty shares for ten dollars. So
Speaker 1: you've increased how many shares you have with the same
Speaker 1: amount of money that you're investing, right, And then we
Speaker 1: extrapolate that out, and then maybe the month after that,
Speaker 1: the share market's up and you go, okay, cool, well
Speaker 1: now it's up fifty percent. Because we're just using averages
Speaker 1: and like being dramatic about our example here because I
Speaker 1: think it makes the most sense. Share market's up fifty percent.
Speaker 1: So now you can only buy five shares instead of
Speaker 1: the ten shares that you originally got for ten dollars.
Speaker 1: So one month you bought ten shares, another month you
Speaker 1: were able to buy twenty shares. A month after that
Speaker 1: you're only able to buy five shares. But you put
Speaker 1: the same amount of money in every month, right, Right.
Speaker 1: But that means that if we averaged it out, like
Speaker 1: let's say over twelve months, the average kind of becomes
Speaker 1: a lower price point than what the higher of the
Speaker 1: market is and what the lower of the market is.
Speaker 1: So we only end up on average paying the average
Speaker 1: amount that the share market is worth. Because as I
Speaker 1: said before, first month, we paid the average. Second month,
Speaker 1: we kind of weore onto a winner because the share
Speaker 1: market was a bit down, so we made more of
Speaker 1: the money that we invested the month after that share
Speaker 1: market was up, but we still invested because you don't
Speaker 1: know if it's going to go up any higher than that,
Speaker 1: and that's still a good opportunity. You don't know if
Speaker 1: the month after it's going to go down. But over time,
Speaker 1: the market ebbs and flows, and what that means is
Speaker 1: we end up with an average line that gets drawn
Speaker 1: between the ebbs and flour and that's what we end
Speaker 1: up paying. So if we extrapolated that out, instead of
Speaker 1: paying one dollar for each share, which you were doing
Speaker 1: at the start, if we averaged that out, you're actually
Speaker 1: paying seventy five cents per share in the example I've given.
Speaker 1: Because sometimes you're paying more, sometimes you're paying less. But
Speaker 1: by consistently being in the market, we've saved ourself money.
Speaker 1: And that means that we're not trying to time the market,
Speaker 1: because no one can do that. I've said before on
Speaker 1: this podcast. If I could have timed the market, I
Speaker 1: have the knowledge I used to be an investment specific
Speaker 1: financial advisor, like I would work with people worth tens
Speaker 1: of millions of dollars. And that's not a flex that's
Speaker 1: just me saying I had that experience and I still
Speaker 1: couldn't time the market. So I don't mean to have
Speaker 1: too many tickets, but I don't know how other people
Speaker 1: are thinking that they can time the market when I
Speaker 1: was in such a privileged position, like I had access
Speaker 1: to clients with heaps of money, I had access to
Speaker 1: the best brokers in the country because people with lots
Speaker 1: of money can afford the best brokers. I had access
Speaker 1: to the best investment houses in the country, and those
Speaker 1: investment houses so they're basically people who do a whole
Speaker 1: heap of research on the markets. And when you get
Speaker 1: to a level of financial advice where your clients have
Speaker 1: heaps of money, you can pay a lot for the research.
Speaker 1: And I love that because I'm super interested in it.
Speaker 1: But even with all of those resources accessible to me,
Speaker 1: still can't time the market. So I don't know how
Speaker 1: the average bro at brunch, she's like, oh, yeah, the
Speaker 1: market's going to be done. It's going to be a
Speaker 1: sick thing to buy next week. Mate, you don't know anything.
Speaker 1: Sit down, drink your oatmeal claste that you asked for
Speaker 1: to be a little bit extra week because you had
Speaker 1: a big night last night. Like I'm done with you.
Speaker 1: Like no one can time the market. End of story.
Speaker 1: That's the wrap on this part of the conversation. That's
Speaker 1: why dollar cost averaging is important, Beck, and that's why
Speaker 1: we want to consistently invest instead of thinking that we
Speaker 1: can time the market and put our twelve hundred bucks
Speaker 1: in immediately.
Speaker 4: Mike, does that make sense? That makes so much sense?
Speaker 1: I hate saying does that make sense? As well? Because
Speaker 1: I feel like I'm it's something that's like, we need
Speaker 1: to drop that out of our vocabulary. Actually, I was
Speaker 1: talking to a friend about this the other day, complete
Speaker 1: sidetrack like saying, Oh, I'm just a podcaster or I'm
Speaker 1: just you know, a videographer, right, Like you're not. You
Speaker 1: are a videographer and you're a good one. Like downplays
Speaker 1: our ability to communicate efficiently or to even stand our
Speaker 1: own ground. Right. I feel like I say so many times,
Speaker 1: oh my gosh, does that make sense? Beck, as though
Speaker 1: I didn't know what I was talking about? Like, oh, Beck,
Speaker 1: did my example make sense? I knew I made sense?
Speaker 4: Why am I saying that, yes, you did make sense?
Speaker 4: I guess a better way because you don't know if
Speaker 4: I've fully absorbed the true is maybe to be like,
Speaker 4: do you have any questions. You absorb that, you silly girl.
Speaker 1: Mean, we're not doing that at all.
Speaker 4: What's your next question.
Speaker 1: I'll try and answer it in the most educated way possible.
Speaker 1: Thank you.
Speaker 4: I do have more questions for you, but I reckon,
Speaker 4: let's take a quick five seconds too.
Speaker 1: Because we're spoiled. At the other day, I had a
Speaker 1: whole heap of DMS from people being like, what do
Speaker 1: you mean you didn't get a cup of tea. I'm like, no,
Speaker 1: it's a fake break. So we're going to take another
Speaker 1: fake break and we will pay the bills with the
Speaker 1: advertisement that you hear, and we'll see you on the
Speaker 1: flip side. Love you, love you.
Speaker 4: Hi everyone, we are back from our fake break.
Speaker 1: No, it was a real break. I do actually have
Speaker 1: a coffee now you do.
Speaker 4: Actually that one was real. But generally, don't be fooled.
Speaker 1: They are. We can be lazy. We can be like lazy.
Speaker 4: Now we are talking about investing on Alo you come today.
Speaker 4: So we've talked before on the pod about different levels
Speaker 4: of investing and different available platforms. Run us through this
Speaker 4: again and where to start. This is a big conversation.
Speaker 1: Aren't you ready to sit down and ready to drap
Speaker 1: yourself in maybe you should have got a coffee as well.
Speaker 2: Damn.
Speaker 1: So last year we did an episode. It was on
Speaker 1: the fourth of May, so if you want to go
Speaker 1: listen to that. It was comparing the different types of
Speaker 1: investment platforms that exist here in Australia because not all
Speaker 1: investment platforms have been created equally. And I kind of
Speaker 1: framed that different levels of investing kind of in context
Speaker 1: of like primary school, high school, university, except we kind
Speaker 1: of called it entry level and then like advanced investing,
Speaker 1: and like I wanted people to understand that from my perspective,
Speaker 1: not that this like legitimately exists, Like people don't go, oh,
Speaker 1: we have a basic platform, well we have a super
Speaker 1: advanced one, Like I wanted you guys to understand, I
Speaker 1: guess from my perspective as an ex financial advisor, the
Speaker 1: entry points and what the different entry points look like.
Speaker 1: Because from what I deemed to be an entry level platform,
Speaker 1: I said, look, I reckon micro investing platforms where you're
Speaker 1: depositing minimal amounts of money, like you're able to invest
Speaker 1: like one cent or a dollar or something small, is
Speaker 1: probably where at a beginner level is at. Obviously, when
Speaker 1: it comes to micro investing. That is different than a
Speaker 1: direct share platform, where you're able to go and pick
Speaker 1: the actual share. A micro investing platform, while you might
Speaker 1: be able to pick your risk profile, you don't have
Speaker 1: any control over the actual investment. Meant options that are
Speaker 1: available to you. You can pick, oh, I'm a conservative
Speaker 1: or an aggressive investor, or, you might even be an
Speaker 1: ethically conscious investor. But what's in that profile is just
Speaker 1: the set by the platform, and it's not actually controllable
Speaker 1: by you. And obviously it's going to depend which micro
Speaker 1: investing platform you choose, but like lots of them actually
Speaker 1: now have the ability to round up your spare change,
Speaker 1: which is kind of cool if you're not a massive
Speaker 1: investor and kind of want to dip your toes in
Speaker 1: the water. But you also don't know what to spend
Speaker 1: each month and you know that your oat latte is
Speaker 1: going to cost. Get this, I paid five dollars fifty
Speaker 1: for an oat latte the other day. Where was that gross?
Speaker 1: I'm not going to tell because last time I ended
Speaker 1: up creating a daily mail drawer and coffee gate Heaven,
Speaker 1: so we're not going to talk about that. But I
Speaker 1: paid five dollars fifty for a Latte, and I still
Speaker 1: do play with micro investing platforms because I just find
Speaker 1: them interesting and I kind of because I exist in
Speaker 1: this sphere of cheese on the money, I kind of
Speaker 1: like knowing what's going on. Like if you guys are
Speaker 1: talking in a Facebook group about a particular investment platform,
Speaker 1: I'm going to be like, yeah, I understand and exactly
Speaker 1: what they're talking about because I have personal experience with
Speaker 1: this because I put fifty cents there. But essentially, if
Speaker 1: you round up your purchases, that five dollars fifty late
Speaker 1: goes up to six dollars to the nearest dollar and
Speaker 1: invest fifty cents on your behalf, which is kind of
Speaker 1: cool to know that every single platform is kind of
Speaker 1: like looking after you. But then you step up right
Speaker 1: and the next was intermediate level. We're talking about DIY
Speaker 1: investment platforms, but some of them give you the ability
Speaker 1: to invest with azulla as one cent, So like our
Speaker 1: friends from Charesas, we talk about them quite often because
Speaker 1: we work with them quite closely. Use the code so
Speaker 1: SotM for a free ten dollars when you sign up,
Speaker 1: which I just think is a really good money in
Speaker 1: I don't make any money off that code by the
Speaker 1: way we talk to them, And I want to say
Speaker 1: that clearly because I don't want people to think, like, oh,
Speaker 1: she's using a referral code that means she'll get ten bucks. Sure, No,
Speaker 1: we talked about it. It could be five dollars each.
Speaker 1: Or I could have given you guys ten bucks to
Speaker 1: sign up, and I'd prefer you guys to have ten
Speaker 1: bucks to sign up, because I don't want you to
Speaker 1: think that I'm recommending something because I'm being paid. Does
Speaker 1: that make sense? Like I only work with brands that
Speaker 1: I genuinely know, trust and think are going to put
Speaker 1: you in a good position. Right anyway, Sidetrack you can
Speaker 1: invest with them for as little as one cent, whereas
Speaker 1: if you went over to another platform that's quite popular
Speaker 1: in our community, self Wealth, you need a minimum of
Speaker 1: five hundred dollars to enter that platform and start investing,
Speaker 1: which is fine because if that's what your progative is,
Speaker 1: that's what your prerogative is. But they have different bells
Speaker 1: and whistles that Shareszy's might not have, So like Chasey's
Speaker 1: gives you like base level of information it's really digestible,
Speaker 1: whereas self Wealth it actually is far more technical, and
Speaker 1: it gives you like insights and guidance and like reports
Speaker 1: on each company. It's going to be a bit more deep.
Speaker 1: Some people want that, Some people get analysis paralysis when
Speaker 1: they go on a platform like that, but I think
Speaker 1: we deserve to have the transparency of understanding where it is. Anyway,
Speaker 1: go listen to that episode because I won't, you know,
Speaker 1: redo the whole episode here. And I think that that
Speaker 1: could be quite powerful for you to understand because there's
Speaker 1: actually a lot of different platforms that are accessible to
Speaker 1: people who are investing with a low income. So there's
Speaker 1: micro investing, and there's investment platforms that are able to
Speaker 1: be invested on with one cent. But then there are
Speaker 1: also ones. Let's be honest that if you discovered them first,
Speaker 1: you might assume that you are just out of the
Speaker 1: market because you don't have that five hundred dollars to
Speaker 1: start right back, Like if you did your research and
Speaker 1: just said top investing platforms in Australia and self wealth
Speaker 1: came up first, and you hadn't listened to Cheese on
Speaker 1: the Money and you didn't understand this market, you go, oh,
Speaker 1: I don't have five hundred bucks. I thought investing might
Speaker 1: have been for me and it's not, and then the
Speaker 1: conversation ends there. Whereas if we give you everything on
Speaker 1: a platter and I say, okay, here's your education, please
Speaker 1: absorb all of this. Now here's a table which is
Speaker 1: actually in my investing book, and I think I also
Speaker 1: have it for free download on my website, or make
Speaker 1: sure it is if it's not by the time this
Speaker 1: episode comes out, though, And it's basically a table that
Speaker 1: compares all of the platforms, their features, their benefits, how
Speaker 1: much they cost, what their minimum investments are, and what
Speaker 1: other like bells and whistles and information you need on it,
Speaker 1: because I couldn't find one place that wasn't an advertising
Speaker 1: platform that compared them. Because I was like, all right, well,
Speaker 1: you deserve to be able to see the fees on
Speaker 1: Rays versus Spaceship if you're planning on micro investing and
Speaker 1: have it be really transparent. Everywhere was a paid advertising
Speaker 1: platform or like you go onto the Raise website and
Speaker 1: they're talking about the Spaceship fees, I'm like, well, that's
Speaker 1: not going to be the best place to get information
Speaker 1: about whether Spaceship's good for me or not. Right, So
Speaker 1: I think it's all about doing your research, but then
Speaker 1: also not feeling overwhelmed because investing in twenty twenty three
Speaker 1: is super accessible and you can do it and it
Speaker 1: is absolutely worth doing it, Like it is not something
Speaker 1: that we do because you need millions in retirement. Do
Speaker 1: not feel that pressure, like discount that completely, but like
Speaker 1: start building your financial literacy. I've had people ask me, oh, Vie,
Speaker 1: I'm just so excited about my investment journey, but I'm
Speaker 1: still in a bit of personal debt. If that's what's
Speaker 1: going to motivate you, and you already have your emergency
Speaker 1: fund and you are up to date on your pains
Speaker 1: five or ten bucks invested on an investment platform, so
Speaker 1: that you feel like your life is progressing and you
Speaker 1: feel like you are getting ahead financially, that's a good
Speaker 1: investment from my perspective. Yeah, Like you need to make
Speaker 1: the right decision for you though, and I can't tell
Speaker 1: you what that is because for a lot of other people,
Speaker 1: they'd be like, oh my gosh, I don't even want
Speaker 1: one share or one one cent edf before I'm out
Speaker 1: of debt, because that will give me anxiety because that
Speaker 1: money could have been getting me out of debt. But
Speaker 1: at the end of the day, it's a completely personal decision,
Speaker 1: and I think that you guys need to make that yourselves.
Speaker 1: But my job is to just give you all of
Speaker 1: the resources that you deserve to have access to to
Speaker 1: make those decisions properly for yourself.
Speaker 4: I love that, I reckon that's all we have time
Speaker 4: for today.
Speaker 1: V Now, oh, I'm not telling I know I could
Speaker 1: go on and on and on, and I have before
Speaker 1: I know. Thank you've actually written down a cute little
Speaker 1: list of a few episodes that you think people should
Speaker 1: go back to to listen to. They haven't already, what
Speaker 1: are they?
Speaker 4: Yes, So obviously we have done a few episodes this
Speaker 4: year that will be very helpful to you. So the
Speaker 4: first one I'm thinking of is I believe it was
Speaker 4: the fourth of Jam we did setting up an investment
Speaker 4: plan for the new year yep. And then feb first,
Speaker 4: we is Scarcy Mindset Investing.
Speaker 1: That was a good one. I mean, I'm biased because
Speaker 1: it was literally my podcast, but I think it's important
Speaker 1: to talk about scarcity mindset because that could be a
Speaker 1: roadblock to you actually starting the process, definitely. And then
Speaker 1: finally March first, we did back to basics of investing,
Speaker 1: which was very sexy as well. Yeah, I feel like
Speaker 1: it's as though I'm obsessed with investing and I want
Speaker 1: you guys to have as much information as possible. And
Speaker 1: if you think I'm done with investing topics, no, We'll
Speaker 1: keep on keeping on going, to keep on coming. That
Speaker 1: is all we have time for today. If you want
Speaker 1: the investing conversations to continue, feel free to join our
Speaker 1: Facebook group where we have judgment free conversations about money
Speaker 1: and investing every single day. Join us, I would love it.
Speaker 1: We're also really active on TikTok. At the moment, we're
Speaker 1: not that good at it, but we appreciate your support.
Speaker 4: I love TikTok.
Speaker 1: We will see you guys on Friday for our wrap.
Speaker 3: So you guys.
Speaker 6: The advice shared on She's on the Money is general
Speaker 6: in nature and does not consider your individual circumstances. She's
Speaker 6: on the Money exists purely for educational purposes and should
Speaker 6: not be relied upon to make an investment or financial decision.
Speaker 1: If you do choose to buy a financial product.
Speaker 6: Read the PDS TMD and obtain appropriate financial.
Speaker 1: Advice tailored towards your needs.
Speaker 6: Victoria Divine and She's on the money are authorized representatives
Speaker 6: of money. Shepper pty Ltd ABN three two one IS
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