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Speaker 1: She's on the Money. She's on the Money. Hello, and

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Speaker 1: welcome to She Is on the Money, the podcast for

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Speaker 1: millennials who want financial freedom. My name is Georgia King.

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Speaker 1: I'm a copywriter and journalism student, and every Wednesday I

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Speaker 1: sit down to talk money with financial advisor Victoria Divine Victoria.

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Speaker 2: Hello, Hello, Georgia usually compliment me, but thanks.

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Speaker 1: I know it's just so straight up financial advisine. Move on, Sorry,

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Speaker 1: not hurt now. On this show today, we're talking about

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Speaker 1: perfectionism and how taking a finance a little too seriously

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Speaker 1: it can actually be detrimental to our bank accounts. Plus,

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Speaker 1: we'll be hearing from a listener who is in a

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Speaker 1: bit of a tangle about starting her own business, and

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Speaker 1: we break down the money diary for Miguel, who has

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Speaker 1: a big thing for credit card rewards. But before we

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Speaker 1: do jump into that chat, though, Vicky dy wins and

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Speaker 1: confessions from the week that was what's that? How do

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Speaker 1: you get?

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Speaker 2: Are we still talking? Are we even still friends? If

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Speaker 2: you don't compliment me excessively? In the intro of our

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Speaker 2: own podcast.

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Speaker 1: It was getting old a little, Yeah it was.

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Speaker 2: But I mean that intro was probably old to a

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Speaker 2: number of people moving on, I actually have a money

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Speaker 2: win for you. It's a very adult money win. I've

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Speaker 2: recently been clearing out my garden shed exciting, right, and

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Speaker 2: I've been popping a heap of stuff that I haven't

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Speaker 2: used in a really long time online to sell and

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Speaker 2: making some extra cash. And I actually feel really savvy

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Speaker 2: doing that, and wish I'd thought about it earlier, like

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Speaker 2: when I actually had heaps of time during COVID. Yeah,

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Speaker 2: except on the weekends when now I could be socializing

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Speaker 2: with friends and now I'm choosing to clear out my shed.

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Speaker 2: But that's a different story.

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Speaker 1: How satisfying is that though?

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Speaker 2: It is actually really satisfying because there are a whole

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Speaker 2: heap of appliance is like an old vacuum cleaner, a

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Speaker 2: jet water pressure thing that we never used, and just

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Speaker 2: like stuff that we do not need that you know,

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Speaker 2: we can pop online and make some extra cash for

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Speaker 2: sespecially coming into Christmas, which I think is really good.

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Speaker 2: Do you have a money win or confession for us

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Speaker 2: this week? Georgia, I have a money win as well.

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Speaker 2: It's a week of win.

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Speaker 1: It is a week of wins, and it's also an

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Speaker 1: adult win. I like these so everyone knows that framing

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Speaker 1: is quite expensive.

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Speaker 2: Actually do that, guys. Guys, if you're not a proper

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Speaker 2: adult who's had to go and get something framed, which

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Speaker 2: obviously Georgia King and I are, you'll find it's incredibly expensive.

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Speaker 2: Do you know how expensive mat boards are as well?

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Speaker 2: Like what's at the really like thick paper that goes

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Speaker 2: around the edge of photo.

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Speaker 1: I thought that was just like cardboard.

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Speaker 2: Yeah it is. It's really really expensive cardboard. Really anyway,

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Speaker 2: moving on.

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Speaker 1: So about your frame to avoid the expense of getting

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Speaker 1: it framed, because that can set you back like a

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Speaker 1: couple hondo minimum, which is like more than the print

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Speaker 1: that I'm framing. So I went to Ikia busy as

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Speaker 1: on a weekend. But that's okay. They have a frame

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Speaker 1: called the River Frame ribb A And I mean, I'm

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Speaker 1: no artist, I'm no frame us. Is that a thing?

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Speaker 1: I'm not sure? But they look pro to my humble Do.

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Speaker 2: They look familiar to you by cham?

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Speaker 1: Are they what you have?

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Speaker 3: Oh?

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Speaker 1: My gosh, yes, I feel like amend these though?

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Speaker 2: Yeah I did?

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Speaker 1: Though, oh did you?

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Speaker 2: I feel like every single time it's like having a

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Speaker 2: little sister that you're like, hey, here's a really great idea,

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Speaker 2: and then they ignore you, and then they come to

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Speaker 2: you and think their own idea. They're like, oh, look

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Speaker 2: at this awesome thing that I did. Yeah, and that's

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Speaker 2: not the first time you've done that with the money win.

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Speaker 2: But that's beside the point.

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Speaker 1: They're really good friend. That's on your new artwork in

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Speaker 1: the new home George jacks Hunt Facebook group. VICKI d

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Speaker 1: let's move on. Favorite post from the week.

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Speaker 2: Thought we've moved on from that nickname, but that's okay.

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Speaker 2: So I have a favorite post and it is from

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Speaker 2: our friend Monique, and I actually loved this one. I

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Speaker 2: think I squealed when I saw the photos. She said,

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Speaker 2: money Win. This is my son, my nieces, and my nephews.

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Speaker 2: She said that every year she spends between one hundred

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Speaker 2: and twenty and two hundred dollars on Santa photos. Side note,

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Speaker 2: I did not know Santa photos but expensive. I don't

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Speaker 2: have kids, so I don't know why I would have

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Speaker 2: known that. But she said this year, due to COVID

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Speaker 2: and having to socially distance from Santa, they made their

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Speaker 2: decision to do their own Santa photos. She said it

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Speaker 2: was less stressful then trying to get three kids to

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Speaker 2: smile at once in a five minute timeframe, and they

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Speaker 2: absolutely loved that. They're poppy was Santa and Georgia. I

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Speaker 2: know you've seen the photos because I've shown you before.

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Speaker 2: They are stunning. These photos are I would say, professional quality. Yeah,

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Speaker 2: and if I tried to recreate Santa photos at home,

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Speaker 2: it would not look the same.

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Speaker 1: Well, that's the thing. This isn't going to work for.

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Speaker 2: Everyone, Monique. I absolutely love your money when it's kind

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Speaker 2: of rude and a bit of a flex.

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Speaker 1: To show us how good you are at photography.

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Speaker 2: Though.

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Speaker 1: Now that's a great idea given the fact that there

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Speaker 1: is no sounda this year. I love that.

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Speaker 3: Yeah.

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Speaker 2: But also they're socially distanced photos. They're really cute. But

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Speaker 2: at the same time, if you've just had a baby,

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Speaker 2: or you've got young kids that you kind of want

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Speaker 2: the photo of them sitting on Santa's knee, not them

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Speaker 2: sitting on a stool two point five meters away from Santa,

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Speaker 2: which is what's happen at the moment.

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Speaker 1: Yeah.

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Speaker 2: I think this was genius, and I reckon anyone at

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Speaker 2: home should be giving DIY Santa photos a crap.

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Speaker 1: Yeah, send them, send them through to us. Oh my gosh,

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Speaker 1: the newsletter something.

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Speaker 2: Yes, can we put your Santa photos in the newsletter?

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Speaker 2: Please send them to us. We are so here for this, Georgia.

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Speaker 2: Have you got a favorite post from the week? I

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Speaker 2: do so.

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Speaker 1: Mine is from Bree. It's also Christmas related. You know

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Speaker 1: what else is expensive at Christmas apart from everything? Christmas trees. Again,

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Speaker 1: I can't say I've bought one, but they're about one

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Speaker 1: hundred bucks plus. Have you got one in the house?

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Speaker 2: I do, and it definitely was one hundred dollars plus.

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Speaker 2: But that was a money win from a really long

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Speaker 2: time ago that I bought my Christmas tree on a

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Speaker 2: Boxing Day sale a fair few years ago. Probably do

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Speaker 2: fair a new one, but it's a plastic tree. I

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Speaker 2: got it David Jones for like seventy percent off. Just

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Speaker 2: a small flex from me at Christmas time.

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Speaker 1: Guys. All right, So she pulled a tree off the

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Speaker 1: side of the road. It doesn't admittedly it doesn't really

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Speaker 1: look too much like an actual Christmas tree, but to

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Speaker 1: make it a little more authentic, she's got the the

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Speaker 1: air freshener that smells like yeah, I really like so

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Speaker 1: this is actually brilliant, Like Bri, I'm impressed I actually

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Speaker 1: am impressed, and it's very well decorated.

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Speaker 2: And to be honest, I definitely would be very happy

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Speaker 2: with that Christmas bush in my house.

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Speaker 1: Stunning from your Victoria and you know she's going on

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Speaker 1: a road trip, she said, so there's no point investing

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Speaker 1: in a proper tree. I love that.

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Speaker 2: I'm gonna put my Christmas tree up so in g

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Speaker 2: and I'm very excited about that. Probably Instagram, I'm surprised

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Speaker 2: you haven't done that already. You strike me as like

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Speaker 2: a November fifteen, let's get the tree up kind of vibe. Now,

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Speaker 2: my friends, there's a very good reason for that. But

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Speaker 2: I will tell you all why I haven't put my

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Speaker 2: tree up later.

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Speaker 1: Ooh mysterious. All right, let's move across to the main

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Speaker 1: topic of today's show, financial perfectionism. Now, perfectionism is generally

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Speaker 1: something that I would say is considered to be quite

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Speaker 1: a positive at tribute. You know, it's what you say.

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Speaker 1: It's what you're saying the job interviews when you're like

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Speaker 1: they're like, what is your biggest floor, and you're like, well,

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Speaker 1: I am a perfectionist. It's a humble brat.

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Speaker 2: Yeah, but it's also like wildly inaccurate. No one is

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Speaker 2: actually a perfectionist when they say that in a job interview,

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Speaker 2: because if you're going to say a flaw, you're not

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Speaker 2: actually going to say you're real flaw. You're clearly going

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Speaker 2: to say something that's kind of like, oh, stumble over this.

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Speaker 2: I don't really want to tell you what I'm bad

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Speaker 2: at because I actually want the job, moving on, moving on.

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Speaker 1: Perfectionists do have incredibly high standards. They're extremely dependable, and

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Speaker 1: you know, you would think that being a financial perfectionist

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Speaker 1: would actually be a good thing. But as we'll learn

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Speaker 1: in today's show, having impossibly high standards for ourselves isn't

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Speaker 1: always a good thing. So V, you're the finance guru,

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Speaker 1: the finance genius, the finance aficionado. You're really making up.

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Speaker 1: They're the compliments. Yeah I didn't start up. You're welcome.

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Speaker 2: Thank you.

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Speaker 1: Talk to me about what financial perfectionism actually means and

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Speaker 1: why it is holding a lot of us back. Now.

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Speaker 2: I love this topic. When we started talking about what

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Speaker 2: we were going to do this week, I just felt

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Speaker 2: like it was really fitting, especially before Christmas, because so

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Speaker 2: many of us are feeling a little bit flat about

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Speaker 2: our spending habits. Or we're feeling a little bit overwhelmed

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Speaker 2: by it all. Find this literally so interesting, and it's

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Speaker 2: also a topic that I don't I think it's being

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Speaker 2: widely discussed. Let's just say that She's on the money

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Speaker 2: has coined the term financial perfectionism. Let that go viral,

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Speaker 2: my friends. So perfectionism, as we know it refers to

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Speaker 2: people completing tasks to that perfect standard, completely free of

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Speaker 2: any flaws. But usually along with that level of perfectionism

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Speaker 2: comes a lot of hard work and usually, my friends,

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Speaker 2: some angst. Perfectionism is definitely something to be admired to

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Speaker 2: a point, my friends, and as an employer, I love

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Speaker 2: employees who want to get the job done, so it's

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Speaker 2: of a really high quality. But it's definitely not always

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Speaker 2: a positive thing, and it can totally be detrimental for

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Speaker 2: a lot of people. When you're super obsessed with making

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Speaker 2: things perfect, it means the project or plans can often

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Speaker 2: go unfinished because you quite literally never get them to

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Speaker 2: that point where you deem that to be perfect right,

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Speaker 2: and at the end of the day, sometimes just getting

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Speaker 2: the job done is much better than getting every single

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Speaker 2: aspect of it absolutely perfect. From a financial perspective, though,

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Speaker 2: the main areas I'm seeing perfectionism let people on his improperty,

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Speaker 2: where lots of people are waiting to find that perfect

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Speaker 2: dream house on the perfect street, so that perfect price

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Speaker 2: or a price that's actually out of their reach. Then

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Speaker 2: also I see this in investing, so delaying the decision

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Speaker 2: to invest because you don't have the perfect amount of

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Speaker 2: money in your bank account yet, or you don't have

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Speaker 2: the perfect understanding of how investing actually works. And the

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Speaker 2: other way I'm seeing perfectionism let us down is in

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Speaker 2: the crazy unsustainable budgets that so many of us are

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Speaker 2: putting in place to try and achieve our goals, which

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Speaker 2: often leads us to failure instead of towards financial freedom,

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Speaker 2: which is where we all want to go. So it's

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Speaker 2: a massive, really broad topic, huge, absolutely huge, George King,

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Speaker 2: but it's one thing that our listeners can really relate to,

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Speaker 2: and as I said, it's not really something that's been

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Speaker 2: discussed before, and there isn't actually that much written about

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Speaker 2: it when we looked into it. And I just think

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Speaker 2: that flashing this all out in a podcast today is

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Speaker 2: going to be really interesting not only for you and I, Georgia,

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Speaker 2: but for everybody listening, because I think it's something super relatable.

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Speaker 1: For sure, and I think we hear a lot about

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Speaker 1: perfectionism in the entrepreneurial space, which I feel is at

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Speaker 1: an all time high. Like we're seeing it in our

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Speaker 1: Facebook group a lot, with all the side hustles going on.

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Speaker 1: It's just all over Instagram as well. It's very much

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Speaker 1: a thing right now. But I wanted to really break

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Speaker 1: down the three major themes you spoke of their vas

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Speaker 1: So we had perfectionism in property, in investing, and in budgeting.

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Speaker 1: So can you talk us through those in a little

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Speaker 1: more depth.

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Speaker 2: I'm so very glad you asked, And that definitely wasn't

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Speaker 2: planned at all, but that was definitely well wrapped. And

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Speaker 2: I just feel like too often we are trying to

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Speaker 2: be too perfect, and too many times do I see,

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Speaker 2: you know, people in our community saying like, oh, I'm

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Speaker 2: just going to get my business planned perfect. The marketing

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Speaker 2: isn't perfect for my business. And I can't remember who

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Speaker 2: it was, but there was a really great quote that says,

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Speaker 2: if you're not embarrassed as the first product you put

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Speaker 2: to market, then you launched too late. And I think

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Speaker 2: it's really important to remember that everybody in business is

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Speaker 2: usually embarrassed of their first product. You best believe I am.

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Speaker 2: I'm not embarrassed in the way that I would hate

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Speaker 2: for any one to see it, but I look at

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Speaker 2: it now and I be like, oh my gosh, the

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Speaker 2: graphic design on that was horrible. The first iterations of

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Speaker 2: She's on the Money's Facebook group and website. I did

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Speaker 2: it myself, but I just wanted to get it up

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Speaker 2: there and out, and it did the job it needed

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Speaker 2: to do. Doesn't have to be perfect because you can

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Speaker 2: fix anything at a late date. So I think that's

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Speaker 2: worth saying because I know I literally get that in

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Speaker 2: my inbox every single day from small business owners. But

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Speaker 2: back to the actual question you asked me, I find

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Speaker 2: that perfectionism is essentially a form of procrastination in another

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Speaker 2: area of life. So I really want our listeners to

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Speaker 2: fight against this perfectionistic urge and start really trying to

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Speaker 2: embrace living a little bit messier, Like, not literally, but

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Speaker 2: let's metaphorically live a little bit messier, because I think

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Speaker 2: it not only makes for a more interesting life, but

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Speaker 2: usually you will be more successful. Like at the end

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Speaker 2: of the day, I've said this a million times. I'm

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Speaker 2: not sure if i've said it a million times on

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Speaker 2: the podcast. But given you're in my team, you know

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Speaker 2: I say this at work, done is often better than perfect,

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Speaker 2: and I live by that. Man. It is on my

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Speaker 2: desk on a post it note, because I am a

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Speaker 2: self confessed perfectionist. But sometimes I even need to remind

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Speaker 2: myself that stuff just needs to get out the door.

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Speaker 2: Sometimes you need to get the proposal to the client,

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Speaker 2: you need to get the piece of work to the client,

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Speaker 2: you need to get an email back to someone, and

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Speaker 2: sometimes just touching base is better than not doing anything

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Speaker 2: at all because it wasn't one hundred percent there. Back

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Speaker 2: to property for a second. As I said before, property

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Speaker 2: perfectionism is detrimental when our standards are just too high,

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Speaker 2: when we procrastinate our decision to buy because we just

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Speaker 2: can't find the right home now. Obviously, a home is

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Speaker 2: a massive purchase and it's not what I'd ever advise

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Speaker 2: rushing into. But the main point here is I would

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Speaker 2: rather our community, if buying property alignestair goals and values,

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Speaker 2: get into the property market sooner, settling for something more

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Speaker 2: affordable and more achievable, instead of waiting to buy in

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Speaker 2: thirty years time when you might have a massive killer

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Speaker 2: deposit and some killer income, but at the end of

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Speaker 2: the day inflations happened and you still can't afford to

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Speaker 2: get in. Property is not for everyone, but if you

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Speaker 2: are thinking of buying a home, then I really really

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Speaker 2: want you to remember this. It's also really important to

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Speaker 2: understand that just because the property is more expensive and

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Speaker 2: you can afford it, doesn't mean you should be affording it,

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Speaker 2: because at the end of the day, property is going

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Speaker 2: to impact your cash flow for the next minimum of

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Speaker 2: thirty years. So I think it's really important to understand

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Speaker 2: what that mortgage repayment will look like to your cash flow,

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Speaker 2: because the first hurdle is getting into the home and

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Speaker 2: the second is actually being able to make the mortgage repayments.

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Speaker 1: Remember last week we had that money diarist who she

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Speaker 1: was the regretful home buyer.

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Speaker 2: Yeah, I think, yeah, that's exactly it. So she'd obviously

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Speaker 2: dived in, but not really comprehended what for I think

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Speaker 2: it was four thousand dollars a month or something, what

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Speaker 2: that had meant for her cash flow, and what that

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Speaker 2: had meant in terms of impacting her life. The other

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Speaker 2: part of this, as it relates to property as well,

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Speaker 2: is in boxing yourself in to only buying in your

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Speaker 2: dream suburb instead of reaching out or branching out to different,

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Speaker 2: more affordable areas where you can actually just sit for

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Speaker 2: a little while. Because not many of us can actually

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Speaker 2: buy homes. The importancy as our first step into the

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Speaker 2: housing market, So widening the scope of where you want

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Speaker 2: to live and what you can actually afford and getting

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Speaker 2: rid of that perfect idea in your head opting instead

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Speaker 2: for something more achievable and actually realistic for you is

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Speaker 2: probably what I would advise in this situation.

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Speaker 1: Be investing. How does it work in that sense?

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Speaker 2: Okay, now, this is obviously the point I am most

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Speaker 2: passionate about because as you guys, no surprise, surprise, I

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Speaker 2: adore investing. But the sooner we start investing, the better

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Speaker 2: off we are going to be in the long run.

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Speaker 2: And that's because of compound interest, my friends, which we

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Speaker 2: have covered on a number of other podcasts. If you

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Speaker 2: don't know what I'm talking about, go back to our

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Speaker 2: Investing one O one series in season one, and also

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Speaker 2: I think we covered investing again in season two with

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Speaker 2: you Georgia. Because at the end of the day, it's

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Speaker 2: your money making money for you, and that can never

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Speaker 2: start too soon, in my opinion. Now, I know that

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Speaker 2: investing is a super daunting concept for a lot of people,

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Speaker 2: and if you're not completely financially literate, it can be

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Speaker 2: super overwhelming. And it's what our investing episodes are for,

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Speaker 2: and it's also why I am so gone things like

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Speaker 2: micro investing platforms, which we also did two whole episodes

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Speaker 2: on recently, so that you actually get to start learning

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Speaker 2: sooner while being in the market.

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Speaker 1: Now.

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Speaker 2: Too often, Georgia I hearp young and smart women who

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Speaker 2: are amazing at saving and smashing their goals saying nah,

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Speaker 2: I don't get it, and I'm not going to do it,

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Speaker 2: and they scare themselves off investing because they like the

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Speaker 2: security and they like the ears of just having the

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Speaker 2: money tucked away in a savings account with little reward.

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Speaker 2: Now I'm not looking across the table because I know,

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Speaker 2: Georgia King is kind of like wincing away because my friend,

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Speaker 2: are you one of those people?

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Speaker 1: I am a young, smart woman.

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Speaker 2: How good are you investing?

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Speaker 1: I'm learning every day you are? I love for you. No,

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Speaker 1: I'm exactly that example. I'm still a bit afraid, which

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Speaker 1: is totally okay, allowed to admit that you're allowed to finance.

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Speaker 2: No, you're allowed.

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Speaker 3: That's it.

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Speaker 1: Do you want to admit that, Yeah, I'll admit it.

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Speaker 1: I'll take it on the tame with the girls. Micro

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Speaker 1: investing as well is a great place to start.

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Speaker 2: Yeah, it can be really great place to start for

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Speaker 2: lots of people.

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Speaker 1: Yeah. The last part of this topic that you mentioned

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Speaker 1: to be was over budgeting to the point where you're

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Speaker 1: either unable to stick to a budget much in the

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Speaker 1: same way that diets work. So tell us more about that. Now.

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Speaker 2: This is something that I see time and time again

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Speaker 2: and something that so many people come to me and

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Speaker 2: they say, Victoria, I have such a good budgeting system.

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Speaker 2: I'm such a good budgeter. I have a spreadsheet and

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Speaker 2: they fill it out every single day. But it's not

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Speaker 2: working for me at the end of the day. Budgeting

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Speaker 2: too hard can actually be a massive recipe for disaster.

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Speaker 2: It's not sustainable at all. It is not fun, and

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Speaker 2: often we do fall off the wagon and end up

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Speaker 2: spending more than we would have had we not had

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Speaker 2: a restrictive budget in the first place. Now, the big

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Speaker 2: treat to budgeting effectively is actually establishing a really good

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Speaker 2: understanding of your own relationship with money, which you probably

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Speaker 2: expected me to say, so really understanding your money story

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Speaker 2: through and through and working out how you can make

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Speaker 2: your cash flow work for you now. Obviously, our Budgeting

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Speaker 2: Cashlow course is a very biased way and a very

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Speaker 2: good course to get you started and give you the

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Speaker 2: tools that you need to help nail this, but we've

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Speaker 2: done episodes on budgeting and cash flow too, so definitely

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Speaker 2: have a listen to those episodes for a more detailed

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Speaker 2: look as setting up a sustainable and workable budget for you.

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Speaker 2: The other part that I see all the time is

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Speaker 2: that you budget so hard that you actually miss out

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Speaker 2: on life and living and having fun with your friends.

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Speaker 3: Now.

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Speaker 2: We've spoken at length about the sacrifice people who follow

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Speaker 2: the fire money management method make when it comes to

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Speaker 2: enjoying life now, and I think some people do become

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Speaker 2: quite obsessive about their savings account climbing and climbing and climbing,

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Speaker 2: and that they don't let themselves enjoy any of the

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Speaker 2: fun things that money can actually afford you.

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Speaker 3: Now.

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Speaker 2: Don't get me wrong, I love that people are feeling

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Speaker 2: super inspired and really excited to crush goals and build

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Speaker 2: up those savings, but to be honest, it's really important

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Speaker 2: to enjoy yourself along the way and make sure that

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Speaker 2: there is room in your budget for the occasional splurge. Otherwise,

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Speaker 2: kind of what's the point. I know, I'm a financial

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Speaker 2: advisor and I'm meant to be like save, invest and

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Speaker 2: do this, but also like, let's overlay real life for

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Speaker 2: a second. I don't want you to miss out on

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Speaker 2: really important formative memories that you're creating with your friends

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Speaker 2: and your family just because you're really trying to budget

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Speaker 2: and save and you listen to a finance podcast once.

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Speaker 2: At the end of the day, life is definitely for living,

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Speaker 2: but at the same time, we want to make sure

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Speaker 2: that future us is okay too.

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Speaker 1: Yeah, And it's about striking.

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Speaker 2: That balance, absolutely, And it's all about balance. It's definitely

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Speaker 2: not about you know, just going oh well, Victoria's And

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Speaker 2: you should still treat yourself if you genuinely do not

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Speaker 2: have the budget or the cash fload to do that

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Speaker 2: and you're you know, forgoing paying bills to do that, absolutely,

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Speaker 2: do not do that at all. On talking about where

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Speaker 2: people allocate one hundred percent of their additional funds towards savings,

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Speaker 2: and don't you know, pop the twenty dollars in there

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Speaker 2: to go to the movies with their friends once a

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Speaker 2: month or something.

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Speaker 1: And we do definitely hear that as well, that people

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Speaker 1: do start to feel a little bit guilty about spending

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Speaker 1: when they are on that really good pattern of saving

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Speaker 1: and investing, and they can find it hard to part

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Speaker 1: with their money.

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Speaker 2: So totally, and I find that that is something that

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Speaker 2: is really overwhelming for a lot of people who have

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Speaker 2: been in debt. So often it is people who have

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Speaker 2: been in significant amounts of debt who are now out

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Speaker 2: of it and they're onto really positive savings habits, but

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Speaker 2: they're now in a position where they feel super guilty

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Speaker 2: about spending any money. And so that's why I always

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Speaker 2: suggest having kind of like a fund where it's for

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Speaker 2: you and you can give yourself permission to spend that

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Speaker 2: on whatever you want, because it's not for saving, it's

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Speaker 2: not for investing, because those things have already been allocated

438
00:19:23,800 --> 00:19:26,879
Speaker 2: for So for me, it's really important to structure yourself

439
00:19:26,960 --> 00:19:29,679
Speaker 2: so that you have that freedom. But if you're not

440
00:19:29,760 --> 00:19:32,640
Speaker 2: giving yourself that freedom, spending can make you feel really

441
00:19:32,680 --> 00:19:35,240
Speaker 2: guilty and it can feel really overwhelming. And I don't

442
00:19:35,240 --> 00:19:37,119
Speaker 2: want anyone to experience.

443
00:19:37,119 --> 00:19:40,320
Speaker 1: When it comes to the perfectionism thing again, V I'm

444
00:19:40,320 --> 00:19:43,679
Speaker 1: going to sound like a broken record because spoilers Georgia

445
00:19:43,720 --> 00:19:47,439
Speaker 1: doesn't love Instagram. But how much would you say Instagram

446
00:19:47,520 --> 00:19:52,639
Speaker 1: plays into this whole perfectionism obsession. Look, it plays a

447
00:19:52,880 --> 00:19:56,200
Speaker 1: massive part in this idea of perfectionism, and I would

448
00:19:56,240 --> 00:19:59,080
Speaker 1: say that all types of social media do. It's definitely

449
00:19:59,160 --> 00:20:03,160
Speaker 1: not just in but I think Instagram definitely distracts us

450
00:20:03,240 --> 00:20:05,760
Speaker 1: from what we really want, and it deceives us into

451
00:20:05,840 --> 00:20:08,840
Speaker 1: wanting things that, in all honesty, don't actually align with our.

452
00:20:08,760 --> 00:20:11,239
Speaker 2: True goals and values. I think that we see these

453
00:20:11,280 --> 00:20:14,160
Speaker 2: perfect lives of influences and even just other people who

454
00:20:14,200 --> 00:20:17,399
Speaker 2: aren't necessarily influencers but are really good at posting great

455
00:20:17,480 --> 00:20:20,960
Speaker 2: highlight reels of their lives online and seeing people live

456
00:20:21,000 --> 00:20:23,760
Speaker 2: these amazing lives in their amazing houses with the car

457
00:20:23,800 --> 00:20:26,240
Speaker 2: they've just bought or their brand new home, But you

458
00:20:26,359 --> 00:20:28,639
Speaker 2: actually don't get to see the flip side of things.

459
00:20:28,840 --> 00:20:31,159
Speaker 2: You actually only see the shiny side of their lives.

460
00:20:31,200 --> 00:20:33,879
Speaker 2: So I think it's really important that we understand that

461
00:20:34,160 --> 00:20:36,600
Speaker 2: what you want, even though it's not what you can afford,

462
00:20:37,280 --> 00:20:40,160
Speaker 2: may not even be what you want in a roundabout way.

463
00:20:40,320 --> 00:20:42,600
Speaker 2: I think it's really important to point out again, because

464
00:20:42,600 --> 00:20:45,399
Speaker 2: we will do this time and time again, that we

465
00:20:45,440 --> 00:20:48,439
Speaker 2: don't see people struggling on Instagram. Not many people you

466
00:20:48,480 --> 00:20:50,639
Speaker 2: know share that type of journey. We don't see the

467
00:20:50,680 --> 00:20:52,640
Speaker 2: work it takes to buy a house. We don't see

468
00:20:52,640 --> 00:20:54,320
Speaker 2: the work it takes to buy a car, or the

469
00:20:54,359 --> 00:20:56,800
Speaker 2: debt that they've taken on, or the monthlier payments that

470
00:20:56,960 --> 00:20:59,640
Speaker 2: exist around those things, or like how they're funding their

471
00:20:59,640 --> 00:21:02,440
Speaker 2: fancy dinners. We just see the end product, which is

472
00:21:02,480 --> 00:21:05,080
Speaker 2: a really beautiful flat lay of a dining table with

473
00:21:05,160 --> 00:21:07,920
Speaker 2: a really delicious looking aver all spirits. And so I

474
00:21:07,960 --> 00:21:11,200
Speaker 2: think that we tend to set these really unrealistic expectations

475
00:21:11,200 --> 00:21:13,879
Speaker 2: of what our lives should be like when life is

476
00:21:14,000 --> 00:21:16,160
Speaker 2: not just sunshine and roses all the time. And it's

477
00:21:16,160 --> 00:21:18,640
Speaker 2: actually really unrealistic to think that we could go out

478
00:21:18,680 --> 00:21:20,560
Speaker 2: for dinner three or four times a week and have

479
00:21:20,600 --> 00:21:23,600
Speaker 2: a really expensive meal, because that's just honestly ridiculous.

480
00:21:24,240 --> 00:21:27,119
Speaker 1: Yeah, I think it's easier to figure out what you

481
00:21:27,160 --> 00:21:30,520
Speaker 1: actually want in life when you're not just scrolling the

482
00:21:30,600 --> 00:21:32,879
Speaker 1: gram all day and feeling distracted.

483
00:21:33,080 --> 00:21:35,359
Speaker 2: I find that some of my most productive times have

484
00:21:35,440 --> 00:21:37,480
Speaker 2: been when I've deleted the app from my phone. Now,

485
00:21:37,480 --> 00:21:41,240
Speaker 2: I know that's probably very counterproductive for someone who business

486
00:21:41,320 --> 00:21:44,440
Speaker 2: is literally run on the internet, and I'm not saying

487
00:21:44,480 --> 00:21:47,080
Speaker 2: delete your accounts, but I find that deleting the app

488
00:21:47,119 --> 00:21:49,520
Speaker 2: from my phone so I can only access it during

489
00:21:49,600 --> 00:21:52,199
Speaker 2: work hours when I'm actually interacting for work, and I

490
00:21:52,240 --> 00:21:54,800
Speaker 2: just kind of like tap out of my personal life

491
00:21:54,840 --> 00:21:57,359
Speaker 2: online for a little bit. They've been really good. They

492
00:21:57,400 --> 00:21:59,800
Speaker 2: provide a lot of clarity that you know, I didn't

493
00:21:59,840 --> 00:22:00,639
Speaker 2: even know I need it.

494
00:22:00,960 --> 00:22:03,640
Speaker 1: My next question for you here, V is what advice

495
00:22:03,680 --> 00:22:07,560
Speaker 1: you would have for people who do have those perfectionist tendencies.

496
00:22:07,359 --> 00:22:09,840
Speaker 2: As if I haven't given you enough advice already, Georgia.

497
00:22:09,920 --> 00:22:10,760
Speaker 1: But that's okay.

498
00:22:10,960 --> 00:22:13,160
Speaker 2: I think I'm going to be again a broken record,

499
00:22:13,240 --> 00:22:16,000
Speaker 2: which is a very common quote on this podcast. But

500
00:22:16,680 --> 00:22:18,359
Speaker 2: at the end of the day, it does come back

501
00:22:18,400 --> 00:22:20,679
Speaker 2: to a number of things. First things, first, go easy

502
00:22:20,720 --> 00:22:24,520
Speaker 2: on yourself. It has been a ridiculously hard year financially,

503
00:22:24,640 --> 00:22:27,320
Speaker 2: also in pretty much every other way imaginable as well,

504
00:22:27,359 --> 00:22:30,240
Speaker 2: like let's be honest, and for perfectionists who thrive off

505
00:22:30,240 --> 00:22:32,680
Speaker 2: now in goals and achieving things, I think it would

506
00:22:32,680 --> 00:22:35,600
Speaker 2: have been particularly hard. Let's be honest. Even I've struggled

507
00:22:35,600 --> 00:22:38,120
Speaker 2: with this because I would say that I am definitely

508
00:22:38,200 --> 00:22:40,800
Speaker 2: a type A. I love lists, I love being perfect

509
00:22:40,800 --> 00:22:42,359
Speaker 2: in the work that I do and the things that

510
00:22:42,400 --> 00:22:45,479
Speaker 2: I put online and how we create and craft our work,

511
00:22:45,840 --> 00:22:47,800
Speaker 2: and I just think that the end of the day,

512
00:22:47,840 --> 00:22:49,840
Speaker 2: it is so much more important to just be kind

513
00:22:49,880 --> 00:22:53,080
Speaker 2: to yourself and not take those things on board too much.

514
00:22:53,240 --> 00:22:55,160
Speaker 2: I've had to really step back and go, cool, well,

515
00:22:55,200 --> 00:22:57,280
Speaker 2: I'm not actually going to be able to do this

516
00:22:57,280 --> 00:22:59,840
Speaker 2: this year. It's actually not your fault that you're not

517
00:23:00,040 --> 00:23:02,639
Speaker 2: achieving things this year. It's the fact that there's a

518
00:23:02,680 --> 00:23:05,960
Speaker 2: global pandemic going on. Not sure if you've noticed. That

519
00:23:06,160 --> 00:23:10,040
Speaker 2: is literally unprecedented, dumpster fire, whatever we're going to call it,

520
00:23:10,320 --> 00:23:12,399
Speaker 2: and it is in the way. So take a massive

521
00:23:12,440 --> 00:23:15,360
Speaker 2: deep breath and just be super kind to yourself. The

522
00:23:15,400 --> 00:23:18,560
Speaker 2: next thing is focus on slow and steady progress instead

523
00:23:18,600 --> 00:23:20,840
Speaker 2: of perfection. At the end of the day, a small

524
00:23:20,880 --> 00:23:22,960
Speaker 2: step is still a step in the right direction, and

525
00:23:23,040 --> 00:23:25,359
Speaker 2: to me, that is the most important thing here. I

526
00:23:25,400 --> 00:23:27,280
Speaker 2: don't want you guys to fall off the wagon because

527
00:23:27,320 --> 00:23:31,479
Speaker 2: you are setting ridiculously impossible goals. Take it slow, be smart,

528
00:23:31,560 --> 00:23:34,600
Speaker 2: be strategic instead of being restrictive, and just really define

529
00:23:34,600 --> 00:23:37,399
Speaker 2: your goals and work towards them bit by bit. And

530
00:23:37,400 --> 00:23:38,960
Speaker 2: what do you say, George. I think it was on

531
00:23:39,000 --> 00:23:42,520
Speaker 2: a previous episode it was eat the elephant bite by

532
00:23:42,640 --> 00:23:44,680
Speaker 2: bite instead of taking one mouthful.

533
00:23:44,720 --> 00:23:47,800
Speaker 1: Wait, that is a phrase probat phase. I can promise

534
00:23:47,840 --> 00:23:49,160
Speaker 1: you google it.

535
00:23:49,160 --> 00:23:52,760
Speaker 2: It's not a phrase, but anyway, moving on, lastly, I

536
00:23:52,760 --> 00:23:55,840
Speaker 2: would say, my friend, stay in your own lane. Everybody

537
00:23:55,840 --> 00:23:58,840
Speaker 2: else's lane is too crowded. Focus on your goals and

538
00:23:58,880 --> 00:24:02,320
Speaker 2: your goals only, and stop comparing yourself to what other

539
00:24:02,320 --> 00:24:05,200
Speaker 2: people around you are doing or achieving. You're your own

540
00:24:05,240 --> 00:24:08,679
Speaker 2: person and it's honestly too distracting and exhausting to be

541
00:24:08,720 --> 00:24:11,719
Speaker 2: looking left at what Sally's doing from high school. Who's

542
00:24:12,040 --> 00:24:14,320
Speaker 2: you know what she's up to financially, or you know

543
00:24:14,359 --> 00:24:16,440
Speaker 2: how often she's working out and checking in at the gym,

544
00:24:16,480 --> 00:24:18,679
Speaker 2: which I still think is a bit weird, But that's okay.

545
00:24:19,200 --> 00:24:21,960
Speaker 2: Just do you and everything will honestly be a little

546
00:24:21,960 --> 00:24:24,560
Speaker 2: bit easier. Your lane is your lane for a reason.

547
00:24:24,760 --> 00:24:26,639
Speaker 2: Make it your own and follow your own journey and

548
00:24:26,680 --> 00:24:28,440
Speaker 2: stop looking at what other people are doing.

549
00:24:28,680 --> 00:24:30,720
Speaker 1: Inspirational words from you, Thank.

550
00:24:30,600 --> 00:24:33,080
Speaker 2: You, I mean unless you have like very clean, clear

551
00:24:33,160 --> 00:24:36,280
Speaker 2: their copy of their budget, their financial statements.

552
00:24:35,840 --> 00:24:40,320
Speaker 1: Before the listener question today, v as all, you're not

553
00:24:40,320 --> 00:24:42,439
Speaker 1: really a small business owner, a small business owner. I'm

554
00:24:42,480 --> 00:24:43,480
Speaker 1: a big business owner.

555
00:24:43,640 --> 00:24:46,320
Speaker 2: I don't know, oh I'm a small I'm a small

556
00:24:46,359 --> 00:24:48,960
Speaker 2: business owner. So I think you've got to be making

557
00:24:49,040 --> 00:24:51,920
Speaker 2: millions before you can call yourself a big business making

558
00:24:51,960 --> 00:24:55,720
Speaker 2: millions sadly not, sadly not, but that is another story

559
00:24:55,800 --> 00:24:59,520
Speaker 2: I'm trying. You got to start starts somewhere that starts

560
00:24:59,560 --> 00:25:00,600
Speaker 2: balled extra.

561
00:25:01,560 --> 00:25:05,440
Speaker 1: So, as a business owner who is a huge perfectionist,

562
00:25:05,480 --> 00:25:07,880
Speaker 1: as you admitted before, what would you say the biggest

563
00:25:07,960 --> 00:25:09,800
Speaker 1: lessons that you've learned along the way have been?

564
00:25:09,960 --> 00:25:12,400
Speaker 2: I think first things first is just having a plan

565
00:25:12,480 --> 00:25:14,760
Speaker 2: and making sure that you're doing things before you are ready.

566
00:25:15,280 --> 00:25:17,879
Speaker 2: As I said before, like having a website up is

567
00:25:18,000 --> 00:25:21,000
Speaker 2: better than having a perfect website up because your consumers

568
00:25:21,040 --> 00:25:22,520
Speaker 2: and the people that you want to connect with can

569
00:25:22,560 --> 00:25:25,400
Speaker 2: better find you. Having a logo that maybe isn't your

570
00:25:25,440 --> 00:25:27,840
Speaker 2: favorite logo, but is one that will do the job

571
00:25:27,920 --> 00:25:30,840
Speaker 2: until you find your dream logo is better than spending

572
00:25:31,040 --> 00:25:33,919
Speaker 2: hours and weeks, you know, mulling things over when you

573
00:25:33,920 --> 00:25:36,840
Speaker 2: should be working on product design the end of the day.

574
00:25:37,000 --> 00:25:39,320
Speaker 2: Done is better than perfect in a lot of ways.

575
00:25:39,520 --> 00:25:42,120
Speaker 2: But as you start to grow, I'm going to pump

576
00:25:42,160 --> 00:25:45,119
Speaker 2: your ties up here, Georgia. Hiring good people like Georgia

577
00:25:45,200 --> 00:25:47,920
Speaker 2: King very important. Having a team that surrounds you, that

578
00:25:48,040 --> 00:25:51,280
Speaker 2: is on the same team as you and understands and

579
00:25:51,320 --> 00:25:53,960
Speaker 2: has the same passion and goals and motivation that you

580
00:25:54,040 --> 00:25:56,040
Speaker 2: do is really important. And I'm really lucky that my

581
00:25:56,080 --> 00:25:58,359
Speaker 2: Shoes on the Money team is exactly that. And I

582
00:25:58,440 --> 00:26:00,600
Speaker 2: also think since I've been the hard thing for me,

583
00:26:00,640 --> 00:26:02,399
Speaker 2: and I think you will like smirk a little bit

584
00:26:02,440 --> 00:26:06,400
Speaker 2: because I totally don't do this well. But stop trying

585
00:26:06,400 --> 00:26:09,240
Speaker 2: to be in control and let people do their jobs

586
00:26:09,320 --> 00:26:11,760
Speaker 2: and let them be good at what they are good at.

587
00:26:11,920 --> 00:26:14,199
Speaker 2: So if you hire a co host, let her be

588
00:26:14,359 --> 00:26:17,320
Speaker 2: the co host. If you hire an audio engineer, let

589
00:26:17,359 --> 00:26:19,600
Speaker 2: them be the audio engineer, and stop telling them how

590
00:26:19,600 --> 00:26:20,280
Speaker 2: to do their job.

591
00:26:20,680 --> 00:26:21,960
Speaker 1: I'm not saying I do that all the.

592
00:26:21,920 --> 00:26:24,159
Speaker 2: Time, but I definitely do stick my nose into a

593
00:26:24,160 --> 00:26:25,840
Speaker 2: lot of things. But I think that done is better

594
00:26:25,840 --> 00:26:28,040
Speaker 2: than perfect is probably my motto for this episode.

595
00:26:28,080 --> 00:26:38,200
Speaker 1: Georgia King, love it. Hi, There You've reached the Shoes

596
00:26:38,240 --> 00:26:40,240
Speaker 1: on the Money mailbox. Do you have a money problem

597
00:26:40,320 --> 00:26:42,480
Speaker 1: you want help solving. Do you have a money dilemma

598
00:26:42,600 --> 00:26:45,080
Speaker 1: that you just want to chat about. Victoria is here

599
00:26:45,119 --> 00:26:47,840
Speaker 1: to help. Every week, we'll be playing your questions to

600
00:26:47,880 --> 00:26:49,399
Speaker 1: help make sense of a money mess you may have

601
00:26:49,400 --> 00:26:51,800
Speaker 1: found yourself in. Make a quick recording on your phone

602
00:26:51,880 --> 00:26:54,640
Speaker 1: and send it through to podcast at sesothomoney dot com

603
00:26:54,640 --> 00:26:57,119
Speaker 1: today you and you might even find yourself on the show.

604
00:26:57,680 --> 00:26:59,720
Speaker 1: But for now, here's today's listener question.

605
00:27:00,920 --> 00:27:03,720
Speaker 4: Hey ladies, I've been feeling really inspired by the Shees

606
00:27:03,800 --> 00:27:06,080
Speaker 4: on the Money Facebook group lately, and I think I'm

607
00:27:06,080 --> 00:27:08,040
Speaker 4: ready to turn my hobby of jewelry making into a

608
00:27:08,040 --> 00:27:10,720
Speaker 4: bit of a side hustle slash business. I already have

609
00:27:10,800 --> 00:27:13,120
Speaker 4: quite a bit of the product, and I studied marketing,

610
00:27:13,400 --> 00:27:15,159
Speaker 4: so I know how to handle that side of things,

611
00:27:15,520 --> 00:27:17,359
Speaker 4: but when it comes to running the business side and

612
00:27:17,400 --> 00:27:20,000
Speaker 4: the financial side of things, I'm feeling a little overwhelmed.

613
00:27:20,560 --> 00:27:22,480
Speaker 4: I guess my question is where do you think I

614
00:27:22,480 --> 00:27:25,240
Speaker 4: should start so that the business can be as successful

615
00:27:25,240 --> 00:27:25,920
Speaker 4: as possible.

616
00:27:26,440 --> 00:27:26,840
Speaker 3: Thanks?

617
00:27:27,600 --> 00:27:31,600
Speaker 1: Now, Victoria, you've just said done is better than perfect

618
00:27:32,160 --> 00:27:34,040
Speaker 1: that I have. Is that what you would then?

619
00:27:34,240 --> 00:27:37,639
Speaker 2: Relate to this lovely Listeners question, I absolutely would. But

620
00:27:37,720 --> 00:27:40,080
Speaker 2: when it comes to finance, I do think that you

621
00:27:40,119 --> 00:27:43,840
Speaker 2: know just done and filling out a form. Finance does

622
00:27:43,920 --> 00:27:46,439
Speaker 2: sometimes have to be perfect. Obviously, when it comes to

623
00:27:46,840 --> 00:27:50,080
Speaker 2: ordering stock and kind of guesstimating how much you will need,

624
00:27:50,280 --> 00:27:52,560
Speaker 2: that's a bit harder. But at the end of the day,

625
00:27:52,640 --> 00:27:54,679
Speaker 2: if you're a small business owner, I want you to

626
00:27:54,760 --> 00:27:57,720
Speaker 2: have your head around your cash flow, and this advice

627
00:27:57,840 --> 00:28:00,360
Speaker 2: is probably only going to be relevant into small business.

628
00:28:00,400 --> 00:28:03,119
Speaker 2: But if you're a small anything, if you walk dogs

629
00:28:03,160 --> 00:28:05,399
Speaker 2: on the side, if you're a cat sitter, if your

630
00:28:05,480 --> 00:28:08,000
Speaker 2: job is getting someone's mail and you get paid for this,

631
00:28:08,160 --> 00:28:10,000
Speaker 2: at the end of the day, I think it's really

632
00:28:10,000 --> 00:28:13,480
Speaker 2: important to take this advice and take it on even

633
00:28:13,480 --> 00:28:14,320
Speaker 2: in your own lives.

634
00:28:14,359 --> 00:28:14,920
Speaker 1: If you're an.

635
00:28:14,800 --> 00:28:17,879
Speaker 2: Individual who works for someone, you are kind of running

636
00:28:17,880 --> 00:28:19,760
Speaker 2: a small business because you are the small business and

637
00:28:19,760 --> 00:28:23,080
Speaker 2: your income is your payg income, and then it's your

638
00:28:23,200 --> 00:28:25,240
Speaker 2: job to divvy it up the end of the day.

639
00:28:25,520 --> 00:28:27,320
Speaker 2: If you're a small business owner and want you to

640
00:28:27,359 --> 00:28:29,320
Speaker 2: know how much money is coming in each and every

641
00:28:29,359 --> 00:28:32,600
Speaker 2: single month that you are able to allocate to your expenses,

642
00:28:32,880 --> 00:28:35,920
Speaker 2: I need you to tell me exactly what your expenses are,

643
00:28:36,040 --> 00:28:38,920
Speaker 2: what bills come into that business that need to be

644
00:28:38,960 --> 00:28:42,160
Speaker 2: paid on a monthly basis. A good business owner will

645
00:28:42,200 --> 00:28:44,800
Speaker 2: always know those two figures because they'll know what their

646
00:28:44,840 --> 00:28:48,840
Speaker 2: responsibility is financially, and they'll also know what amount is

647
00:28:48,880 --> 00:28:51,800
Speaker 2: coming in that they can service their responsibilities with. The

648
00:28:51,840 --> 00:28:54,000
Speaker 2: next thing I would want them to know is their

649
00:28:54,040 --> 00:28:57,280
Speaker 2: balance sheet and their profit and loss statement. Those two

650
00:28:57,400 --> 00:29:00,480
Speaker 2: things are the most important things that are busyness ownA

651
00:29:00,520 --> 00:29:03,320
Speaker 2: can understand it's a balance sheet will have all of

652
00:29:03,360 --> 00:29:05,640
Speaker 2: their stock and what's coming in and what's gone out,

653
00:29:05,680 --> 00:29:08,959
Speaker 2: and it'll show the overall balance. And then a profit

654
00:29:09,000 --> 00:29:11,280
Speaker 2: and loss is going to tell you whether you're profitable

655
00:29:11,360 --> 00:29:13,880
Speaker 2: or not. And being able to understand that and understand

656
00:29:13,880 --> 00:29:16,960
Speaker 2: the intricacies of where maybe am I not being profitable

657
00:29:17,040 --> 00:29:19,240
Speaker 2: or where am I spending too much money? Or where

658
00:29:19,280 --> 00:29:22,120
Speaker 2: am I really profitable? How could I know turbocharge? That

659
00:29:22,360 --> 00:29:24,840
Speaker 2: is going to be really important for you. That all

660
00:29:24,880 --> 00:29:28,160
Speaker 2: probably sounds super overwhelming, but at the end of the day,

661
00:29:28,240 --> 00:29:31,640
Speaker 2: it's about just understanding the basics. And she said that

662
00:29:31,680 --> 00:29:34,360
Speaker 2: she just feels a little bit overwhelmed by the financial

663
00:29:34,400 --> 00:29:37,400
Speaker 2: side of things, So just start with watches, your product cost?

664
00:29:38,200 --> 00:29:41,240
Speaker 2: How much are you going to charge for your product?

665
00:29:41,320 --> 00:29:43,400
Speaker 2: And a good way to understand that is how much

666
00:29:43,440 --> 00:29:45,400
Speaker 2: do you want to make per year? So at the

667
00:29:45,480 --> 00:29:46,840
Speaker 2: end of the day, if you say, look, I'm a

668
00:29:46,880 --> 00:29:49,440
Speaker 2: small business owner, I really want to make eighty thousand

669
00:29:49,480 --> 00:29:52,240
Speaker 2: dollars a year, fantastic. How much is that per month?

670
00:29:52,480 --> 00:29:55,240
Speaker 2: How much is that per week? Okay, well, if you

671
00:29:55,280 --> 00:29:58,480
Speaker 2: can make you know, fifteen hundred dollars per week, let's

672
00:29:58,560 --> 00:30:01,080
Speaker 2: divide that by how many products you're making and work

673
00:30:01,080 --> 00:30:04,120
Speaker 2: out how many you're selling, so it can become bite

674
00:30:04,160 --> 00:30:06,959
Speaker 2: sized pieces and we can really scale it back so

675
00:30:07,040 --> 00:30:09,480
Speaker 2: that the bigger picture makes sense. Because if I said

676
00:30:09,480 --> 00:30:11,520
Speaker 2: to you, hey, you need to make eighty grand this

677
00:30:11,600 --> 00:30:13,400
Speaker 2: year'd be like, oh my gosh, I don't know how.

678
00:30:13,720 --> 00:30:16,760
Speaker 2: But if we start making the goals smaller the end

679
00:30:16,760 --> 00:30:18,560
Speaker 2: of the day, you're going to feel so much more

680
00:30:18,600 --> 00:30:21,960
Speaker 2: empowered because you'll work out what to cost your product at.

681
00:30:22,200 --> 00:30:26,480
Speaker 2: And often people forget to take into consideration their time

682
00:30:26,560 --> 00:30:29,760
Speaker 2: when they're a small business owner. They'll go, ah, all right, Well,

683
00:30:29,880 --> 00:30:33,440
Speaker 2: let's say that she makes bracelets and her biggest competitor

684
00:30:33,480 --> 00:30:34,840
Speaker 2: sells bracelets for eighty dollars.

685
00:30:34,880 --> 00:30:36,840
Speaker 1: So she says, you know what, I'm new to the market.

686
00:30:36,880 --> 00:30:37,600
Speaker 1: I'm going to sell.

687
00:30:37,440 --> 00:30:42,000
Speaker 2: Bracelets for seventy dollars. What she's forgetting, maybe, is that

688
00:30:42,000 --> 00:30:44,640
Speaker 2: that person sells bracelets for eighty dollars because they are

689
00:30:44,640 --> 00:30:47,760
Speaker 2: able to order them in bulk and have them made

690
00:30:47,760 --> 00:30:51,920
Speaker 2: overseas with really low labor costs, and she's selling them

691
00:30:51,920 --> 00:30:54,080
Speaker 2: for seventy dollars. They might be cheaper, but she's making

692
00:30:54,120 --> 00:30:56,960
Speaker 2: every single one by hand in her bedroom in Melbourne

693
00:30:57,040 --> 00:30:59,760
Speaker 2: and using all of her time personally to do that.

694
00:31:00,120 --> 00:31:02,880
Speaker 2: So I think it's really important to factor in what

695
00:31:03,120 --> 00:31:06,000
Speaker 2: is your hourly rate, because too often do I talk

696
00:31:06,000 --> 00:31:09,920
Speaker 2: to small business owners who say, oh, Viventoria, like, my

697
00:31:10,040 --> 00:31:13,080
Speaker 2: product might be beautiful, but I'm making two dollars an hour

698
00:31:13,160 --> 00:31:15,400
Speaker 2: because of how long this is taking me. And in

699
00:31:15,440 --> 00:31:17,840
Speaker 2: that case, that business is a really it's not a

700
00:31:17,840 --> 00:31:20,440
Speaker 2: bad business, because there are things that we need to

701
00:31:20,480 --> 00:31:22,960
Speaker 2: be fixed and your product is probably beautiful, but I'm

702
00:31:23,000 --> 00:31:25,600
Speaker 2: guessing that's not the lifestyle you're going for when you

703
00:31:25,720 --> 00:31:29,400
Speaker 2: wanted to create a small business to have freedom and flexibility.

704
00:31:28,720 --> 00:31:31,960
Speaker 1: In your life exactly. And if you if you did

705
00:31:32,000 --> 00:31:34,320
Speaker 1: sell those bracelets for fifty dollars or something, and then

706
00:31:34,360 --> 00:31:37,240
Speaker 1: you realized, you know, halfway through doing it, that oh god,

707
00:31:37,320 --> 00:31:39,320
Speaker 1: I'm never going to make money from this. It's hard

708
00:31:39,360 --> 00:31:41,920
Speaker 1: to then be like, oh, actually it's three hundred dollars now.

709
00:31:42,000 --> 00:31:45,000
Speaker 1: That kind of ruins the brand perception exactly.

710
00:31:45,200 --> 00:31:48,160
Speaker 2: And you've just got to start understanding what is your

711
00:31:48,240 --> 00:31:50,520
Speaker 2: time worth. And if you say, look, my time's worth

712
00:31:50,560 --> 00:31:54,760
Speaker 2: twenty dollars an hour, fantastic, factor that into the production, factor,

713
00:31:54,800 --> 00:31:57,280
Speaker 2: that into the way that you're costing up this product.

714
00:31:57,600 --> 00:32:00,480
Speaker 2: I think it is really important to make you of

715
00:32:00,680 --> 00:32:03,360
Speaker 2: free budgeting tools. If you go to the MyGov website,

716
00:32:03,400 --> 00:32:05,560
Speaker 2: they'll have a business plan that you can download and

717
00:32:05,600 --> 00:32:07,880
Speaker 2: do for free. And as you guys already, no, I

718
00:32:07,960 --> 00:32:11,600
Speaker 2: love the MyGov Smart Money website because I just feel

719
00:32:11,640 --> 00:32:15,440
Speaker 2: like it's such great content and it is free and consumable,

720
00:32:15,480 --> 00:32:17,640
Speaker 2: and it's coming from a non bias source, so it

721
00:32:17,720 --> 00:32:20,880
Speaker 2: is literally perfect. And there are so many small business

722
00:32:20,880 --> 00:32:23,280
Speaker 2: hacks on there. So if you need to understand your

723
00:32:23,280 --> 00:32:25,920
Speaker 2: small business cashlow, go there first. But the first thing

724
00:32:25,960 --> 00:32:28,360
Speaker 2: I would say to small business owners is your time

725
00:32:28,440 --> 00:32:30,320
Speaker 2: is worth a lot, and you need to make sure

726
00:32:30,320 --> 00:32:33,160
Speaker 2: that that's factored into your production, regardless of whether you're

727
00:32:33,160 --> 00:32:37,440
Speaker 2: a freelance writer creating copy, or you are a small

728
00:32:37,440 --> 00:32:41,200
Speaker 2: business owner making jewelry or you're a web designer. At

729
00:32:41,200 --> 00:32:43,360
Speaker 2: the end of the day, if you quote one thousand

730
00:32:43,360 --> 00:32:45,360
Speaker 2: dollars and you say, wow, that's epic. I'm going to

731
00:32:45,400 --> 00:32:47,600
Speaker 2: make a thousand dollars for this project. But it takes

732
00:32:47,640 --> 00:32:50,040
Speaker 2: you ten weeks of your life and you spend forty

733
00:32:50,040 --> 00:32:52,200
Speaker 2: hours a week doing that, that is a bad deal,

734
00:32:52,280 --> 00:32:55,600
Speaker 2: my friends, Even if on face value a thousand dollars

735
00:32:55,600 --> 00:32:57,080
Speaker 2: sounded like a really good deal.

736
00:32:56,960 --> 00:32:59,200
Speaker 1: How long generally, v would you say it takes for

737
00:32:59,560 --> 00:33:03,120
Speaker 1: a small business to kind of find its feet.

738
00:33:03,440 --> 00:33:05,760
Speaker 2: Everybody is different, and I think in the age of

739
00:33:05,840 --> 00:33:09,920
Speaker 2: social media, people can go viral overnight. I've got small

740
00:33:09,920 --> 00:33:13,280
Speaker 2: business owners who have started small businesses in COVID that

741
00:33:13,320 --> 00:33:16,280
Speaker 2: I'm working with currently, and they're amazing, and they're already

742
00:33:16,320 --> 00:33:19,720
Speaker 2: turning millions in profit just because they went viral on TikTok,

743
00:33:19,760 --> 00:33:22,480
Speaker 2: and that is crazy. But then I also have small

744
00:33:22,480 --> 00:33:24,480
Speaker 2: business owners who have been doing something on the side

745
00:33:24,520 --> 00:33:28,600
Speaker 2: for the last five years and they're breaking even, but

746
00:33:28,680 --> 00:33:31,719
Speaker 2: they are not super profitable, but they're still really passionate

747
00:33:31,760 --> 00:33:33,360
Speaker 2: about what they're doing. So I think you need to

748
00:33:33,400 --> 00:33:37,000
Speaker 2: remember that profitability is important, but you need to understand

749
00:33:37,000 --> 00:33:39,080
Speaker 2: why you're doing your business. If it's just because you're

750
00:33:39,080 --> 00:33:41,080
Speaker 2: super passionate about the job that you're doing and the

751
00:33:41,120 --> 00:33:42,520
Speaker 2: thing you get to do as a hobby, and you're

752
00:33:42,520 --> 00:33:45,240
Speaker 2: making some cash on the side, then my friend, maybe

753
00:33:45,240 --> 00:33:48,120
Speaker 2: you're not chasing profitability. Maybe you're just trying to cover

754
00:33:48,160 --> 00:33:50,320
Speaker 2: the costs so you can do a hobby that you love.

755
00:33:50,680 --> 00:33:53,080
Speaker 2: I just think it's really different for every single person

756
00:33:53,200 --> 00:33:55,560
Speaker 2: and there's no one cookie cut away. But at the

757
00:33:55,600 --> 00:33:58,000
Speaker 2: end of the day, you should know when your business

758
00:33:58,040 --> 00:34:00,520
Speaker 2: is meant to be profitable, whether that is you need

759
00:34:00,560 --> 00:34:02,720
Speaker 2: to sell x amount of units per month or work

760
00:34:02,800 --> 00:34:05,800
Speaker 2: so many hours per month. You need to understand what

761
00:34:05,840 --> 00:34:09,279
Speaker 2: that point is. Not just go oh, one day I'll

762
00:34:09,280 --> 00:34:11,279
Speaker 2: be profitable, Like No, I want you to be able

763
00:34:11,280 --> 00:34:13,560
Speaker 2: to tell me I will be profitable when I sell

764
00:34:13,600 --> 00:34:15,960
Speaker 2: fifteen bracelets every single month and that's my goal.

765
00:34:16,040 --> 00:34:17,920
Speaker 1: Yep. So have those really clear cut goals.

766
00:34:18,280 --> 00:34:18,600
Speaker 3: Love it.

767
00:34:18,640 --> 00:34:22,680
Speaker 1: I reckon it's time for money diaries now.

768
00:34:24,880 --> 00:34:27,280
Speaker 3: Hi, I'm a twenty eight year old credit card rewards

769
00:34:27,320 --> 00:34:32,000
Speaker 3: junkie and this is my money diary. I signed up

770
00:34:32,040 --> 00:34:34,560
Speaker 3: to my first credit card after I got a full

771
00:34:34,600 --> 00:34:36,600
Speaker 3: time job, and I knew I could pay it off

772
00:34:36,760 --> 00:34:40,160
Speaker 3: because I thought, this seems like an interesting cash flow tool,

773
00:34:40,320 --> 00:34:43,000
Speaker 3: and getting some of those bonus points seems like a

774
00:34:43,040 --> 00:34:45,959
Speaker 3: good idea because I want to do some traveling. And

775
00:34:46,239 --> 00:34:49,960
Speaker 3: it worked out great for me. I managed to always

776
00:34:50,000 --> 00:34:53,799
Speaker 3: pay it off, and therefore I decided to get more

777
00:34:53,840 --> 00:34:58,040
Speaker 3: credit cards. They're only dangerous if you are someone who

778
00:34:58,080 --> 00:35:00,359
Speaker 3: is tempted to spend money you don't have. So I've

779
00:35:00,360 --> 00:35:03,600
Speaker 3: always viewed putting expenses on a credit card as just

780
00:35:03,680 --> 00:35:06,000
Speaker 3: sort of one side of a balance sheet. If you've

781
00:35:06,040 --> 00:35:08,160
Speaker 3: got the money to pay it, why not use the

782
00:35:08,200 --> 00:35:12,320
Speaker 3: cash flow to earn yourself to the points and push

783
00:35:12,360 --> 00:35:15,319
Speaker 3: that debt out for another month and then just pay

784
00:35:15,320 --> 00:35:16,360
Speaker 3: it off as you get paid.

785
00:35:17,040 --> 00:35:19,239
Speaker 1: What does our twenty eight year old credit card junkie do?

786
00:35:19,640 --> 00:35:21,560
Speaker 1: How much does she earn and how much is in

787
00:35:21,600 --> 00:35:22,600
Speaker 1: her account right now?

788
00:35:23,040 --> 00:35:25,440
Speaker 3: I'm a full time engineer. I'm twenty eight, and I've

789
00:35:25,480 --> 00:35:27,799
Speaker 3: been working in my field for five years, and I

790
00:35:27,840 --> 00:35:30,600
Speaker 3: earn one hundred thousand dollars a year. I currently have

791
00:35:30,719 --> 00:35:33,080
Speaker 3: a few thousand dollars in my transaction account and a

792
00:35:33,120 --> 00:35:36,360
Speaker 3: shared account with my partner fifty thousand dollars in savings,

793
00:35:36,440 --> 00:35:38,680
Speaker 3: and I'm a credit card rewards junkie with a quantits

794
00:35:38,719 --> 00:35:41,279
Speaker 3: account of about one hundred thousand points or about seven

795
00:35:41,400 --> 00:35:43,279
Speaker 3: hundred dollars worth of flight What.

796
00:35:43,280 --> 00:35:45,280
Speaker 1: Happens to her money once it hits her account?

797
00:35:45,840 --> 00:35:50,200
Speaker 3: Currently? I immediately put half my half of the mortgage

798
00:35:50,200 --> 00:35:53,120
Speaker 3: payments into our shared account. I set some aside for savings,

799
00:35:53,200 --> 00:35:55,360
Speaker 3: and then I leave about one to two thousand dollars

800
00:35:55,440 --> 00:35:57,600
Speaker 3: for spending over the month, and I might top that

801
00:35:57,680 --> 00:35:59,960
Speaker 3: up from savings if I need it. I used to

802
00:36:00,040 --> 00:36:01,799
Speaker 3: pay the balance on my credit cards for the month

803
00:36:01,840 --> 00:36:04,280
Speaker 3: immediately as well, so that I never got charged interest.

804
00:36:04,360 --> 00:36:06,040
Speaker 3: But I gave those up to get a mortgage.

805
00:36:06,440 --> 00:36:08,759
Speaker 1: And what was it like getting a house and a

806
00:36:08,800 --> 00:36:10,239
Speaker 1: mortgage during the pandemic.

807
00:36:10,480 --> 00:36:14,520
Speaker 3: We decided, well, all the savings that were doing is

808
00:36:14,800 --> 00:36:18,359
Speaker 3: probably not going to go towards any holidays anytime soon.

809
00:36:19,080 --> 00:36:22,200
Speaker 3: And I got sick of paying rent on a four

810
00:36:22,200 --> 00:36:25,480
Speaker 3: bedroom house, so decided we should buy one instead.

811
00:36:25,719 --> 00:36:27,720
Speaker 1: What are our twenty eight year old credit card junkie

812
00:36:27,800 --> 00:36:30,480
Speaker 1: thoughts on investing and does she invest in herself?

813
00:36:30,880 --> 00:36:33,800
Speaker 3: I wish i'd started sooner. I was advised by my

814
00:36:33,880 --> 00:36:35,719
Speaker 3: dad to buy Tesla a few years ago, and I

815
00:36:35,760 --> 00:36:37,719
Speaker 3: got lucky with that. I think of those shares as

816
00:36:37,719 --> 00:36:39,759
Speaker 3: like a lottery tickets that I might one day cash

817
00:36:39,760 --> 00:36:42,960
Speaker 3: in or I might lose entirely. But I realized I

818
00:36:43,040 --> 00:36:45,919
Speaker 3: need a diverse portfolio as well, and I should invest

819
00:36:46,000 --> 00:36:48,279
Speaker 3: outside my savings account, and that's why I started listening

820
00:36:48,320 --> 00:36:50,880
Speaker 3: to the podcast. Within the next two years, I'd like

821
00:36:50,920 --> 00:36:53,239
Speaker 3: to set up an investment portfolio that's going to work

822
00:36:53,280 --> 00:36:56,040
Speaker 3: for the long term, but also offset the risks involved

823
00:36:56,040 --> 00:36:58,799
Speaker 3: with having a mortgage that's currently at a really low rate.

824
00:36:59,239 --> 00:37:01,480
Speaker 3: And I definitely need to learn more about investing, and

825
00:37:01,560 --> 00:37:03,880
Speaker 3: I'll probably talk to a financial planner at some point.

826
00:37:04,480 --> 00:37:05,520
Speaker 1: What debts does she have?

827
00:37:06,320 --> 00:37:08,680
Speaker 3: So we do have a mortgage, but other than that,

828
00:37:08,760 --> 00:37:10,960
Speaker 3: I've never been in debt, although I've had about a

829
00:37:10,960 --> 00:37:13,440
Speaker 3: dozen credit cards over the last five years, and I'm

830
00:37:13,480 --> 00:37:16,080
Speaker 3: really conscious about getting the cards just for ether cash

831
00:37:16,160 --> 00:37:19,319
Speaker 3: back travel vouchers or bonus rewards points and then using

832
00:37:19,320 --> 00:37:22,520
Speaker 3: them for my everyday spend. Sometimes I even time the

833
00:37:22,560 --> 00:37:25,560
Speaker 3: cards to match up with big expenses like car insurance,

834
00:37:25,560 --> 00:37:27,759
Speaker 3: so that I reached the minimum spend and then I

835
00:37:27,800 --> 00:37:30,479
Speaker 3: cancel the card after paying the full balance. But yeah,

836
00:37:30,640 --> 00:37:33,360
Speaker 3: I've never been in debt because I am very careful

837
00:37:33,400 --> 00:37:34,399
Speaker 3: to always pay them off.

838
00:37:34,480 --> 00:37:36,080
Speaker 1: What is her best money happen.

839
00:37:36,360 --> 00:37:39,240
Speaker 3: I'm good at spending within my means. I use a

840
00:37:39,280 --> 00:37:43,360
Speaker 3: prepaid old iPhone and a boring, reliable secondhand car, and

841
00:37:43,440 --> 00:37:46,080
Speaker 3: I avoid buying stuff full price unless I really need it.

842
00:37:46,400 --> 00:37:49,399
Speaker 3: I also love spreadsheets and planning out holiday budgets. And

843
00:37:49,560 --> 00:37:52,120
Speaker 3: as I said, I collector rewards points for fun. We

844
00:37:52,200 --> 00:37:54,600
Speaker 3: actually use them to fly to and around Europe in

845
00:37:54,600 --> 00:37:56,440
Speaker 3: twenty nineteen and some of the flight three of an

846
00:37:56,480 --> 00:37:59,040
Speaker 3: in business class and all we paid was tax. We've

847
00:37:59,080 --> 00:38:01,520
Speaker 3: also done multiple domestic trips over the years. You have

848
00:38:01,560 --> 00:38:03,120
Speaker 3: to be a bit flexible and when you fly if

849
00:38:03,120 --> 00:38:05,840
Speaker 3: you're going to use points. I love spending reward points

850
00:38:05,880 --> 00:38:09,040
Speaker 3: on holiday because it means you don't break the bank

851
00:38:09,160 --> 00:38:12,479
Speaker 3: when you're going taking time off work.

852
00:38:12,800 --> 00:38:15,040
Speaker 1: And what's our twenty eight year old credit card junkie's

853
00:38:15,040 --> 00:38:15,800
Speaker 1: worst money habit?

854
00:38:16,160 --> 00:38:18,880
Speaker 3: Well, I have realized looking back at the credit cards

855
00:38:18,920 --> 00:38:22,880
Speaker 3: that I did use to justify some unnecessary purchases to

856
00:38:22,960 --> 00:38:26,200
Speaker 3: make the minimum spend. I also forgot to update my

857
00:38:26,280 --> 00:38:30,560
Speaker 3: recurring payment details occasionally, so if you're using and canceling

858
00:38:30,640 --> 00:38:33,640
Speaker 3: cards all the time, then you need to update your

859
00:38:33,640 --> 00:38:37,400
Speaker 3: payment details otherwise you can get charged late payment fees

860
00:38:37,440 --> 00:38:41,040
Speaker 3: on recurring payments. And my credit rating was pretty bad

861
00:38:41,040 --> 00:38:42,760
Speaker 3: for a while when I kept applying for the cards

862
00:38:42,760 --> 00:38:45,920
Speaker 3: with more rewards points because they have higher limits, especially

863
00:38:45,960 --> 00:38:47,120
Speaker 3: when I missed a payment on one.

864
00:38:47,280 --> 00:38:48,680
Speaker 1: What's her big money goal?

865
00:38:48,920 --> 00:38:51,399
Speaker 3: The payoff for mortgage is the main goal, but that's

866
00:38:51,440 --> 00:38:54,319
Speaker 3: a long way off. We're also thinking about doing some

867
00:38:54,320 --> 00:38:57,920
Speaker 3: home renovations, which again I would probably consider putting on

868
00:38:57,920 --> 00:39:01,800
Speaker 3: a credit card. Unfortunately can't pay treaties with rewards points.

869
00:39:02,320 --> 00:39:06,840
Speaker 3: But yeah, I would carefully manage the cash flow on

870
00:39:07,040 --> 00:39:11,640
Speaker 3: those big money goals because big cash flow means big points.

871
00:39:11,680 --> 00:39:13,680
Speaker 1: What grade would she give her money habits.

872
00:39:14,320 --> 00:39:16,279
Speaker 3: I'm going to go out on a limit, say an

873
00:39:16,320 --> 00:39:18,359
Speaker 3: A minus, but I'd like to get it to an

874
00:39:18,360 --> 00:39:21,000
Speaker 3: aplus for some investments and forward planning.

875
00:39:21,960 --> 00:39:24,680
Speaker 1: Okay, V So the twenty eight year old credit card

876
00:39:24,880 --> 00:39:27,799
Speaker 1: rewards junkie, this is such an interesting one.

877
00:39:28,000 --> 00:39:31,120
Speaker 2: Aye makes me uncomfortable because I've got things I love

878
00:39:31,239 --> 00:39:33,680
Speaker 2: and things that I'm like. Ah, I hope people don't

879
00:39:33,719 --> 00:39:34,200
Speaker 2: start that.

880
00:39:34,480 --> 00:39:36,800
Speaker 1: Let's talk through them, So maybe do you want to

881
00:39:36,840 --> 00:39:39,040
Speaker 1: start with the best things about this?

882
00:39:39,719 --> 00:39:43,719
Speaker 2: How savvy she was, Like, traveling the entire world on

883
00:39:43,880 --> 00:39:46,800
Speaker 2: points is kind of epic. Someone else is paying for

884
00:39:46,840 --> 00:39:49,680
Speaker 2: your flights? Yes, please, I'm all about that. I think

885
00:39:49,719 --> 00:39:52,840
Speaker 2: that that is really savvy and really smart. I loved

886
00:39:52,880 --> 00:39:54,879
Speaker 2: that she was on top of her budgeting. I loved

887
00:39:54,920 --> 00:39:57,600
Speaker 2: that she was on top of arguably her cash flow.

888
00:39:57,640 --> 00:39:59,919
Speaker 2: She knew how much was coming in and what point

889
00:40:00,120 --> 00:40:02,680
Speaker 2: we're everywhere, and just like how to get them. It

890
00:40:02,760 --> 00:40:05,120
Speaker 2: was actually super empowering because she was like, yep, I'm

891
00:40:05,160 --> 00:40:08,360
Speaker 2: a spreadsheet junkie and I just know exactly where everything

892
00:40:08,440 --> 00:40:11,520
Speaker 2: is and how to do it. But but and I'm

893
00:40:11,560 --> 00:40:13,799
Speaker 2: sorry that there's such a big butt. That's never going

894
00:40:13,880 --> 00:40:16,319
Speaker 2: to work for everybody. So I'm super excited that that

895
00:40:16,360 --> 00:40:18,640
Speaker 2: works for her. I've got a friend that that works for.

896
00:40:18,880 --> 00:40:21,480
Speaker 2: I also have a number of clients that that works for,

897
00:40:21,760 --> 00:40:25,279
Speaker 2: But those people are few and far between, because that

898
00:40:25,360 --> 00:40:28,640
Speaker 2: type of discipline does not exist for everybody, And so

899
00:40:28,800 --> 00:40:30,440
Speaker 2: many of you are going to hear that and be

900
00:40:30,640 --> 00:40:33,800
Speaker 2: so motivated to kick that off and go, oh my gosh, totally.

901
00:40:33,840 --> 00:40:36,920
Speaker 2: I'd love one hundred thousand quantus points, because everybody loves

902
00:40:37,000 --> 00:40:38,800
Speaker 2: quantus points, right, Like you can get into the lounge

903
00:40:38,800 --> 00:40:40,480
Speaker 2: when you've got enough of them, and you can get

904
00:40:40,520 --> 00:40:43,759
Speaker 2: free flights. But we don't actually all have the discipline

905
00:40:43,760 --> 00:40:46,200
Speaker 2: to sustain that for a long period of time, because

906
00:40:46,239 --> 00:40:48,239
Speaker 2: we'll get over it a month from now, and we'll

907
00:40:48,239 --> 00:40:50,759
Speaker 2: forget that there's money on a credit card, and then

908
00:40:50,760 --> 00:40:52,799
Speaker 2: we'll be paying interest off it, and then we'll pay

909
00:40:52,840 --> 00:40:55,080
Speaker 2: it off, and then we'll forget that there's a yearly

910
00:40:55,160 --> 00:40:57,600
Speaker 2: fee to hold that credit card, and that will pop

911
00:40:57,719 --> 00:40:59,880
Speaker 2: up and we'll be like, oh, yeah, that's two hundred

912
00:40:59,880 --> 00:41:02,360
Speaker 2: and fifty dollars. I should call them, And then you

913
00:41:02,440 --> 00:41:05,320
Speaker 2: don't call them, and it's just a never ending spiral.

914
00:41:05,640 --> 00:41:08,120
Speaker 2: She'd said she'd had more than a dozen credit cards

915
00:41:08,400 --> 00:41:11,439
Speaker 2: to me epic if she's managed to use them all.

916
00:41:11,880 --> 00:41:14,239
Speaker 2: I'm concerned that a lot of people might see that

917
00:41:14,320 --> 00:41:17,200
Speaker 2: as inspirational and try and copy that, and they just

918
00:41:17,280 --> 00:41:21,120
Speaker 2: don't have again the discipline to actually follow that through

919
00:41:21,160 --> 00:41:23,040
Speaker 2: and make it work for them, because that is a

920
00:41:23,080 --> 00:41:26,920
Speaker 2: money hack that is great, but is going to require

921
00:41:27,000 --> 00:41:30,560
Speaker 2: a lot of time and energy and effort. And at

922
00:41:30,560 --> 00:41:32,200
Speaker 2: the end of the day, I've said this on the

923
00:41:32,200 --> 00:41:36,040
Speaker 2: podcast before Flybys. Points are not worth very much money

924
00:41:36,040 --> 00:41:39,080
Speaker 2: at all, but we all strive to collect them, and

925
00:41:39,480 --> 00:41:40,920
Speaker 2: at the end of the day, they're only going to

926
00:41:40,920 --> 00:41:44,000
Speaker 2: add up if you're really consistent about using them, i e.

927
00:41:44,239 --> 00:41:47,640
Speaker 2: Putting every single purchase every single month on a credit card.

928
00:41:47,719 --> 00:41:49,480
Speaker 2: It's not going to happen if you just you know,

929
00:41:49,800 --> 00:41:52,000
Speaker 2: have a credit card and use it for overseas travel

930
00:41:52,040 --> 00:41:54,080
Speaker 2: and hope that the points add up. And I just

931
00:41:54,120 --> 00:41:57,319
Speaker 2: think that that is a very slippery slope when it

932
00:41:57,360 --> 00:42:01,839
Speaker 2: comes to finances. Sodation would be don't try this at home.

933
00:42:02,160 --> 00:42:04,200
Speaker 2: But at the same time, if you're doing this, I'm

934
00:42:04,239 --> 00:42:06,719
Speaker 2: so pervy. Please tell me what have you got on

935
00:42:06,800 --> 00:42:10,240
Speaker 2: points that is really expensive that you got for free?

936
00:42:10,360 --> 00:42:13,640
Speaker 1: How do points even work? Excuse my ignorance.

937
00:42:13,680 --> 00:42:16,759
Speaker 2: So points work. They're kind of like a reward for

938
00:42:16,920 --> 00:42:19,440
Speaker 2: using that card. So you might get one point for

939
00:42:19,480 --> 00:42:22,200
Speaker 2: every three dollars you spend. Sometimes it's point for points,

940
00:42:22,239 --> 00:42:24,080
Speaker 2: so if you spend a dollar, you get a point,

941
00:42:24,160 --> 00:42:26,880
Speaker 2: and then those points are redeemable for other things, so

942
00:42:26,920 --> 00:42:28,440
Speaker 2: you might be able to get and you die, some

943
00:42:28,560 --> 00:42:32,160
Speaker 2: vacuum cleaner because that might be worth fifty seven thousand points,

944
00:42:32,640 --> 00:42:34,920
Speaker 2: or you might be able to get upgraded flights for

945
00:42:35,160 --> 00:42:37,640
Speaker 2: X amount of points or whatever it is. Every single

946
00:42:37,719 --> 00:42:41,520
Speaker 2: rewards program is very different, and the points are definitely

947
00:42:41,600 --> 00:42:43,839
Speaker 2: not worth a dollar. So if you spend a dollar

948
00:42:43,880 --> 00:42:47,160
Speaker 2: and you get a point for one point, it's not equal.

949
00:42:47,239 --> 00:42:49,759
Speaker 2: It's not worth that. It might be worth like one

950
00:42:49,840 --> 00:42:52,080
Speaker 2: cent or five cent, and you really have to accrue

951
00:42:52,080 --> 00:42:54,600
Speaker 2: those points. Or one hundred thousand points does not mean

952
00:42:54,640 --> 00:42:56,960
Speaker 2: you have one hundred thousand dollars in credit. It might

953
00:42:57,000 --> 00:42:59,160
Speaker 2: be seven hundred dollars worth of credit, so you've got

954
00:42:59,200 --> 00:43:01,600
Speaker 2: a flight to Bali. So for me, I think it's

955
00:43:02,080 --> 00:43:05,680
Speaker 2: only worth it if you're super regimented about these things.

956
00:43:05,719 --> 00:43:08,040
Speaker 2: But at the same time, I'd much prefer you to

957
00:43:08,040 --> 00:43:10,160
Speaker 2: put your time and energy and effort into something else

958
00:43:10,200 --> 00:43:12,879
Speaker 2: that's really going to help you create wealth. Because I'm

959
00:43:12,920 --> 00:43:15,200
Speaker 2: not trying to be negative. I really love this story,

960
00:43:15,520 --> 00:43:19,120
Speaker 2: but I just think that she was so upbeaten, so positive,

961
00:43:19,640 --> 00:43:21,920
Speaker 2: that I don't want you all walking away and doing this,

962
00:43:22,000 --> 00:43:24,160
Speaker 2: because I'd love you to put that time and energy

963
00:43:24,160 --> 00:43:26,320
Speaker 2: and effort into your cash loow or your budget or

964
00:43:26,400 --> 00:43:29,560
Speaker 2: investing or creating future wealth. Because as much as free

965
00:43:29,560 --> 00:43:32,880
Speaker 2: flights sound pretty damn sexy. They're not going to create

966
00:43:33,000 --> 00:43:34,160
Speaker 2: future wealth for future you.

967
00:43:34,560 --> 00:43:38,239
Speaker 1: I think it's probably also important to remember, and I

968
00:43:38,280 --> 00:43:41,680
Speaker 1: could be wrong here, but credit card points are probably

969
00:43:42,040 --> 00:43:46,239
Speaker 1: a marketing ploy by the credit card companies, right, absolutely,

970
00:43:46,360 --> 00:43:49,080
Speaker 1: and they have them, absolutely, and they're often used as

971
00:43:49,160 --> 00:43:50,839
Speaker 1: kind of like their carrot on the stick when you're

972
00:43:50,840 --> 00:43:53,200
Speaker 1: signing up for a home loan or a new personal

973
00:43:53,280 --> 00:43:55,120
Speaker 1: loan or whatever it.

974
00:43:55,000 --> 00:43:57,960
Speaker 2: Is to get you to stay in debt. Like the

975
00:43:58,000 --> 00:44:00,200
Speaker 2: end of the day, they'll be like, hey, cool, did

976
00:44:00,239 --> 00:44:03,400
Speaker 2: you just get your home loan. Fantastic, here's this count's

977
00:44:03,440 --> 00:44:06,560
Speaker 2: credit card with one hundred thousand three points, Please rack

978
00:44:06,680 --> 00:44:08,160
Speaker 2: up more debt, and you just go.

979
00:44:08,280 --> 00:44:09,720
Speaker 1: Great, one hundred thousand points.

980
00:44:09,719 --> 00:44:13,080
Speaker 2: That's flight's great, and you kind of again go down

981
00:44:13,120 --> 00:44:16,120
Speaker 2: the slippery slope of spending because you think it's really

982
00:44:16,160 --> 00:44:19,000
Speaker 2: positive and they've created a positive experience for you the

983
00:44:19,120 --> 00:44:21,160
Speaker 2: end of the day, if you can use those systems

984
00:44:21,200 --> 00:44:23,160
Speaker 2: to your advantage, I am all for it, but not

985
00:44:23,239 --> 00:44:25,200
Speaker 2: many of us have the ability to do that, and

986
00:44:25,239 --> 00:44:27,359
Speaker 2: I think we need to be honest with ourselves about that.

987
00:44:27,640 --> 00:44:29,560
Speaker 2: There were also a few things in there worthy of

988
00:44:29,640 --> 00:44:34,160
Speaker 2: celebrating as well. Yes, absolutely, engineer earning one hundred thousand

989
00:44:34,160 --> 00:44:37,520
Speaker 2: dollars a year. What a queen at twenty eight Yeah exactly.

990
00:44:37,520 --> 00:44:39,760
Speaker 2: Oh my gosh, one hundred grand before she's thirty.

991
00:44:39,800 --> 00:44:43,440
Speaker 1: That is epic. Yeah, that is huge. She loves spreadsheets

992
00:44:43,480 --> 00:44:44,600
Speaker 1: like you could mean too, so.

993
00:44:46,400 --> 00:44:48,600
Speaker 2: Absolutely, and that's what I mean. Like, I loved this

994
00:44:48,719 --> 00:44:51,680
Speaker 2: money diary and she sounded like such a legend. And

995
00:44:51,719 --> 00:44:54,040
Speaker 2: maybe I've harped on about this too much, but I

996
00:44:54,040 --> 00:44:56,120
Speaker 2: don't think we can go on too much about slippery

997
00:44:56,120 --> 00:44:58,520
Speaker 2: slopes that you could potentially go down, because at the

998
00:44:58,600 --> 00:45:01,439
Speaker 2: end of the day, that was super inspirational money diary.

999
00:45:01,520 --> 00:45:04,680
Speaker 1: Yeah, she knows what She's a woman, empowered and educated.

1000
00:45:04,880 --> 00:45:07,200
Speaker 2: I loved her and I loved her story and I

1001
00:45:07,239 --> 00:45:08,879
Speaker 2: loved that we got to share it because I love

1002
00:45:08,920 --> 00:45:10,920
Speaker 2: the Pervia money diaries, so I'm like, oh, what did

1003
00:45:10,960 --> 00:45:13,040
Speaker 2: you do with your points? Yeah, had a very different

1004
00:45:13,120 --> 00:45:16,400
Speaker 2: one hundred percent love it, but also disclaimer.

1005
00:45:16,080 --> 00:45:20,040
Speaker 1: Yeah, exactly right. I think it is time to wrap

1006
00:45:20,080 --> 00:45:21,160
Speaker 1: the show there, VICKI.

1007
00:45:21,000 --> 00:45:23,960
Speaker 2: D yes, But just before we head off Georgia, we'd

1008
00:45:24,000 --> 00:45:26,719
Speaker 2: like to acknowledge and pay respects to Australia's Aboriginal and

1009
00:45:26,760 --> 00:45:30,319
Speaker 2: Torristrad islanda peoples the traditional custodians of the lands, the

1010
00:45:30,360 --> 00:45:33,400
Speaker 2: waterways and the skies all across Australia. We thank you

1011
00:45:33,480 --> 00:45:35,520
Speaker 2: for sharing. After carrying on the land which we are

1012
00:45:35,560 --> 00:45:38,120
Speaker 2: able to learn, we pay our respects to elders past

1013
00:45:38,200 --> 00:45:40,719
Speaker 2: and present, and we share our friendship and our kindness.

1014
00:45:40,920 --> 00:45:42,759
Speaker 1: The advice shared on she Is on the Money is

1015
00:45:42,800 --> 00:45:46,160
Speaker 1: general in nature and does not consider your individual circumstances.

1016
00:45:46,520 --> 00:45:49,440
Speaker 1: She is on the Money exists purely for educational purposes

1017
00:45:49,480 --> 00:45:51,800
Speaker 1: and should not be relied upon to make an investment

1018
00:45:51,960 --> 00:45:56,200
Speaker 1: or a financial decision. And we promise Victoria Devine is legit.

1019
00:45:56,280 --> 00:45:59,760
Speaker 1: She is an authorized representative of Australia Pacific Funds Management

1020
00:46:00,120 --> 00:46:03,279
Speaker 1: prior to limited ABN three four one three two four six,

1021
00:46:03,360 --> 00:46:06,120
Speaker 1: three two five seven, AFSL three three nine or one

1022
00:46:06,200 --> 00:46:09,120
Speaker 1: five one. And thanks to Ryan and Beck our producer

1023
00:46:09,200 --> 00:46:10,880
Speaker 1: Angels for putting it all together.

1024
00:46:11,120 --> 00:46:14,120
Speaker 2: Guys, Beck is new, we have the she's in the

1025
00:46:14,200 --> 00:46:17,279
Speaker 2: room watching us and she edited last week's podcast, which

1026
00:46:17,280 --> 00:46:20,200
Speaker 2: honestly was epic and we love her. Welcome to the team.

1027
00:46:20,280 --> 00:46:20,480
Speaker 1: Beck.

1028
00:46:20,719 --> 00:46:23,160
Speaker 2: We are so grateful to have you here, but we'd

1029
00:46:23,160 --> 00:46:24,960
Speaker 2: also love you know what else we love We love

1030
00:46:24,960 --> 00:46:27,480
Speaker 2: it when you join our Facebook group. Nice segue, exactly.

1031
00:46:27,520 --> 00:46:29,959
Speaker 2: I'm so good at this. We're our community shares money,

1032
00:46:29,960 --> 00:46:33,239
Speaker 2: tips and tricks every single day without judgment. So She's

1033
00:46:33,280 --> 00:46:35,560
Speaker 2: on the Money on Facebook and join us. If Facebook's

1034
00:46:35,560 --> 00:46:37,399
Speaker 2: not your thing, you can find us on Instagram. Also

1035
00:46:37,520 --> 00:46:40,880
Speaker 2: on TikTok were She's on the Money a US YouTube

1036
00:46:40,920 --> 00:46:44,960
Speaker 2: literally everything. Guys, We're done here, George, next week, next week,