1 00:00:00,680 --> 00:00:01,000 Speaker 1: Hello. 2 00:00:01,560 --> 00:00:05,040 Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the 3 00:00:05,160 --> 00:00:08,760 Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we 4 00:00:08,800 --> 00:00:11,440 Speaker 2: get started on She's on the Money podcast, I would 5 00:00:11,520 --> 00:00:14,520 Speaker 2: like to acknowledge the traditional custodians of the land of 6 00:00:14,560 --> 00:00:18,680 Speaker 2: which this podcast is recorded on a wondery country, acknowledging 7 00:00:18,680 --> 00:00:22,560 Speaker 2: the elders, the ancestors and the next generation coming through 8 00:00:23,079 --> 00:00:27,159 Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and 9 00:00:27,240 --> 00:00:30,600 Speaker 2: the storytelling of you to make a difference for today 10 00:00:31,040 --> 00:00:32,640 Speaker 2: and lasting impact for tomorrow. 11 00:00:33,320 --> 00:00:37,120 Speaker 1: Let's get into it. She's on the Money, She's on 12 00:00:37,200 --> 00:00:38,840 Speaker 1: the Money. 13 00:00:57,720 --> 00:01:00,560 Speaker 3: Hello, and welcome to She's on the Money, the podcast 14 00:01:00,640 --> 00:01:04,800 Speaker 3: for millennials who want financial freedom. My name is Beckside 15 00:01:04,880 --> 00:01:06,720 Speaker 3: and with me is Victoria Devine. 16 00:01:06,880 --> 00:01:10,640 Speaker 1: Welcome to another episode. Beck. I am very, very excited 17 00:01:10,680 --> 00:01:12,520 Speaker 1: about this episode. So I'm gonna kick it off with 18 00:01:12,600 --> 00:01:15,959 Speaker 1: a question, and it's gonna be for you, Beck. What's 19 00:01:16,000 --> 00:01:16,959 Speaker 1: a lot of money to you? 20 00:01:17,640 --> 00:01:18,000 Speaker 2: Oh? 21 00:01:18,319 --> 00:01:20,200 Speaker 3: That is a loaded one. 22 00:01:20,240 --> 00:01:23,720 Speaker 1: It's not that loaded. It's not that loaded, Like there's 23 00:01:23,720 --> 00:01:26,880 Speaker 1: no ulterior motives going on. But I want to know 24 00:01:27,240 --> 00:01:29,160 Speaker 1: how much money is a lot of money? 25 00:01:29,160 --> 00:01:31,920 Speaker 3: To you, it depends what time of the pay cycle 26 00:01:32,000 --> 00:01:34,960 Speaker 3: you ask me. I think, for context, we get paid monthly. 27 00:01:35,560 --> 00:01:39,319 Speaker 3: The first week of pay I reckon five hundreds a lot. Yeah, 28 00:01:39,360 --> 00:01:41,559 Speaker 3: maybe the second last and the last week of pay 29 00:01:41,800 --> 00:01:44,720 Speaker 3: of the pay cycle. Yeah, maybe, like thirty dollars is 30 00:01:44,720 --> 00:01:45,360 Speaker 3: a lot of money. 31 00:01:45,440 --> 00:01:48,040 Speaker 1: Yeah, fair. I find it so interesting that that's how 32 00:01:48,080 --> 00:01:50,040 Speaker 1: you kind of framed it. You were like, oh my gosh, 33 00:01:50,120 --> 00:01:52,600 Speaker 1: well it depends on the pay cycle, because it's interesting 34 00:01:52,680 --> 00:01:56,720 Speaker 1: how you respond because everybody responds so differently to that. 35 00:01:56,880 --> 00:01:58,800 Speaker 1: Like we're going to talk about it because we did 36 00:01:58,840 --> 00:02:00,800 Speaker 1: ask the community or I I did go to the 37 00:02:00,800 --> 00:02:02,640 Speaker 1: community and say, all right, I want to know what 38 00:02:02,680 --> 00:02:05,480 Speaker 1: does that look like? But we're talking about this today 39 00:02:05,480 --> 00:02:08,520 Speaker 1: because I think we just need to contextualize that everybody's 40 00:02:08,560 --> 00:02:11,600 Speaker 1: experience is super different and that you know, to you, 41 00:02:11,880 --> 00:02:14,000 Speaker 1: five hundred or thirty dollars could be a lot, and 42 00:02:14,040 --> 00:02:16,560 Speaker 1: someone else might be like, oh, three hundred thousand dollars 43 00:02:16,639 --> 00:02:19,800 Speaker 1: is a lot of money. And it's really interesting to 44 00:02:19,919 --> 00:02:23,440 Speaker 1: just see things from other people's perspectives because when we 45 00:02:23,480 --> 00:02:26,519 Speaker 1: can lean into being able to view other people's perspectives, 46 00:02:26,560 --> 00:02:30,000 Speaker 1: we learn so much more. And this episode I feel 47 00:02:30,000 --> 00:02:33,320 Speaker 1: like is really about also acknowledging privilege and the different 48 00:02:33,360 --> 00:02:36,200 Speaker 1: experiences as wealth. Because even though you said, oh my gosh, 49 00:02:36,280 --> 00:02:38,680 Speaker 1: thirty bucks like could be a lot of money, I 50 00:02:38,720 --> 00:02:40,799 Speaker 1: feel like some people would look at that and be like, oh, 51 00:02:40,840 --> 00:02:42,880 Speaker 1: that's not much money at all. And I think you 52 00:02:42,919 --> 00:02:45,120 Speaker 1: need to step outside of that and go no, no, no. 53 00:02:45,160 --> 00:02:48,480 Speaker 1: I'm not asking you whether you think that Bech's experience 54 00:02:48,600 --> 00:02:51,600 Speaker 1: is valid or not. I'm asking you to acknowledge that. Wow, 55 00:02:51,760 --> 00:02:55,639 Speaker 1: Like if Beck says thirty dollars and yours is five hundred, like, 56 00:02:55,800 --> 00:02:58,200 Speaker 1: maybe just go wow, I am pretty lucky that that's 57 00:02:58,280 --> 00:03:01,200 Speaker 1: my personal experience. This is the way that we want 58 00:03:01,240 --> 00:03:04,120 Speaker 1: to talk about it. It's a judgment free zone as always, 59 00:03:04,160 --> 00:03:06,440 Speaker 1: but I really want to be able to highlight people's 60 00:03:06,480 --> 00:03:09,320 Speaker 1: different experiences and what that means and how that works. 61 00:03:09,360 --> 00:03:12,200 Speaker 1: And today, Beck, we're going to talk about lifestyle creep 62 00:03:12,200 --> 00:03:16,560 Speaker 1: and demystifying some of the unconscious or unhelpful ideas about 63 00:03:16,600 --> 00:03:19,840 Speaker 1: how much you actually need to start investing and how 64 00:03:19,919 --> 00:03:22,760 Speaker 1: much you need to start when it comes to savings, 65 00:03:22,840 --> 00:03:25,360 Speaker 1: and about how much money you actually need to be 66 00:03:25,480 --> 00:03:28,600 Speaker 1: good at money, because I think people have this really 67 00:03:28,680 --> 00:03:30,799 Speaker 1: weird idea in their head that to be good at 68 00:03:30,800 --> 00:03:32,720 Speaker 1: money you have to have heaps and heaps and heaps 69 00:03:32,760 --> 00:03:35,680 Speaker 1: of it and buccaloes cash. So I did think that 70 00:03:35,720 --> 00:03:38,360 Speaker 1: was the case actually to be fair, and. 71 00:03:38,280 --> 00:03:40,200 Speaker 3: It's not true, Beck, it's not true. 72 00:03:40,400 --> 00:03:42,680 Speaker 1: Sure, no, no, let's get into it. 73 00:03:42,760 --> 00:03:42,840 Speaker 2: Tho. 74 00:03:42,840 --> 00:03:45,520 Speaker 3: Al right, So I would say it is interesting. So 75 00:03:45,600 --> 00:03:48,200 Speaker 3: thirty dollars is a lot of money to me. It 76 00:03:48,280 --> 00:03:50,600 Speaker 3: kind of gets me thinking about like what you would 77 00:03:50,640 --> 00:03:53,760 Speaker 3: think a lot of money is, even like in your childhood. 78 00:03:53,920 --> 00:03:56,920 Speaker 3: So for example, for me, it was, you know, if 79 00:03:56,920 --> 00:03:58,760 Speaker 3: I go to a friend's house and they had a 80 00:03:58,800 --> 00:03:59,920 Speaker 3: silver frid. 81 00:04:00,040 --> 00:04:02,920 Speaker 1: Oh my gosh, yes, silver fridge is nicol of wealth. 82 00:04:03,080 --> 00:04:06,200 Speaker 1: You know what takes it another level up? The water dispenser. 83 00:04:07,080 --> 00:04:11,000 Speaker 3: That's exactly right, not that, but yeah, that's lip like 84 00:04:11,080 --> 00:04:12,200 Speaker 3: you must be rich for it. 85 00:04:12,600 --> 00:04:14,800 Speaker 1: You are, Yeah, you're on another level. 86 00:04:14,800 --> 00:04:17,119 Speaker 3: If you have a water dispenser, you must be doing 87 00:04:17,160 --> 00:04:19,880 Speaker 3: well doing wealth. Must be nice. Other things that I 88 00:04:19,960 --> 00:04:22,680 Speaker 3: thought made people rich growing. 89 00:04:22,480 --> 00:04:23,599 Speaker 1: Up, Oh yeah, what is it? 90 00:04:23,880 --> 00:04:27,480 Speaker 3: So I would say things like matching plates. 91 00:04:27,120 --> 00:04:31,440 Speaker 1: Oh yeah, yeah, set a dinner set, yes, place mats 92 00:04:31,600 --> 00:04:34,000 Speaker 1: or place mats is big dog energy, big dog energy, 93 00:04:34,320 --> 00:04:36,400 Speaker 1: Like we're not just eating on the couch or eating 94 00:04:36,440 --> 00:04:38,200 Speaker 1: at the table. We're setting up for. 95 00:04:38,080 --> 00:04:40,000 Speaker 3: Dinner, setting up for dinner. We've got You don't have 96 00:04:40,200 --> 00:04:43,440 Speaker 3: ney in your house. You have dinner, yes exactly, that's 97 00:04:43,480 --> 00:04:48,080 Speaker 3: when you know. And also reusable napkins. That's big dog andages, 98 00:04:48,160 --> 00:04:50,039 Speaker 3: big dog energy. You don't just rip a bit of 99 00:04:50,080 --> 00:04:53,760 Speaker 3: paper towel off. No exactly, Okay, I would use literal 100 00:04:53,800 --> 00:04:55,960 Speaker 3: toilet paper sometimes to wipe my face. 101 00:04:55,800 --> 00:04:57,720 Speaker 1: Because I don't makes sense. It's seasy. 102 00:04:57,880 --> 00:05:01,360 Speaker 3: It's the same material as a aptail, but a little 103 00:05:01,360 --> 00:05:01,880 Speaker 3: bit cheaper. 104 00:05:02,120 --> 00:05:03,000 Speaker 1: Yeah, exactly. 105 00:05:03,360 --> 00:05:06,320 Speaker 3: You'll not find a reusable napkin in my household. I 106 00:05:06,320 --> 00:05:07,800 Speaker 3: don't know if you had this, but I didn't have 107 00:05:07,839 --> 00:05:09,800 Speaker 3: any pocket money or anything like that. I mean my 108 00:05:09,880 --> 00:05:12,320 Speaker 3: mum would, you know, give me money for the movies, 109 00:05:12,360 --> 00:05:13,840 Speaker 3: and she would find a way to make it work. 110 00:05:13,880 --> 00:05:16,800 Speaker 3: But no pocket money did you have? Was that just 111 00:05:16,880 --> 00:05:20,240 Speaker 3: a like being really pervy? Was that a situation where 112 00:05:20,240 --> 00:05:22,080 Speaker 3: it was like we couldn't afford it, or was that 113 00:05:22,120 --> 00:05:24,400 Speaker 3: a situation where it was like, oh, my parents didn't 114 00:05:24,400 --> 00:05:24,800 Speaker 3: believe in it? 115 00:05:24,800 --> 00:05:26,880 Speaker 1: Because I think those are two different experiences. 116 00:05:27,080 --> 00:05:31,680 Speaker 3: I think conveniently both Yeah, yeah, yeah, I fit is 117 00:05:31,720 --> 00:05:33,400 Speaker 3: like it's like chicken all the egg. I think we 118 00:05:33,480 --> 00:05:36,440 Speaker 3: probably couldn't really afford it because it was that's fair 119 00:05:36,560 --> 00:05:40,159 Speaker 3: for children, so but also, you know, in the same time, 120 00:05:40,279 --> 00:05:41,960 Speaker 3: it was maybe one of those things that we didn't 121 00:05:42,000 --> 00:05:42,920 Speaker 3: just we just didn't do. 122 00:05:43,160 --> 00:05:45,880 Speaker 1: Yeah, that's fair. We did have pocket money growing up, 123 00:05:46,240 --> 00:05:49,400 Speaker 1: but I remember thinking it wasn't much, and like not 124 00:05:49,520 --> 00:05:51,839 Speaker 1: at the time, Like now I look back and go, like, 125 00:05:51,920 --> 00:05:54,880 Speaker 1: it really wasn't heaps. But that's not a negative thing 126 00:05:54,880 --> 00:05:56,880 Speaker 1: because we had all our basic needs met and like 127 00:05:56,920 --> 00:05:58,520 Speaker 1: what does a six year old or seven year old 128 00:05:58,560 --> 00:06:02,039 Speaker 1: actually need to purchase? Like, probably not that much. And 129 00:06:02,320 --> 00:06:04,760 Speaker 1: my dad was an accountant. So the reason we had 130 00:06:04,760 --> 00:06:08,240 Speaker 1: pocket money, I do believe, was to teach us about money. 131 00:06:08,720 --> 00:06:10,960 Speaker 1: So the amount of pocket money we got was fifty 132 00:06:11,000 --> 00:06:13,920 Speaker 1: cents for every year that we were alive. So if 133 00:06:13,920 --> 00:06:16,240 Speaker 1: I was six, I got three dollars. If I was twelve, 134 00:06:16,240 --> 00:06:18,880 Speaker 1: I got six dollars. And that would however, I feel 135 00:06:18,920 --> 00:06:21,000 Speaker 1: like that was clever, but like it was also like 136 00:06:21,040 --> 00:06:22,960 Speaker 1: a graduation. On our birthday, I'd be like, I get 137 00:06:23,000 --> 00:06:25,960 Speaker 1: another fifty cents, Like this is big dog energy. That's 138 00:06:26,000 --> 00:06:28,080 Speaker 1: big d energy, And I think it's I think It's 139 00:06:28,080 --> 00:06:31,560 Speaker 1: interesting looking back because I remember knowing that I got 140 00:06:31,560 --> 00:06:33,480 Speaker 1: my six dollars or I got my you know whatever 141 00:06:33,520 --> 00:06:36,680 Speaker 1: it was at that period of time. But then I 142 00:06:36,720 --> 00:06:39,280 Speaker 1: saw friends who'd get like a clean twenty dollar bill 143 00:06:39,279 --> 00:06:41,640 Speaker 1: and I'd be like, wow, that's wow good, Like that 144 00:06:41,839 --> 00:06:46,240 Speaker 1: was insane to me. So it's interesting different experiences. But 145 00:06:46,279 --> 00:06:50,520 Speaker 1: then also where you grow up really does give a 146 00:06:50,520 --> 00:06:52,520 Speaker 1: bit of a deep dive into the types of like 147 00:06:52,560 --> 00:06:57,040 Speaker 1: pocket money experiences, because our pocket money was actually for 148 00:06:57,120 --> 00:06:58,680 Speaker 1: things we wanted to buy and we had to save 149 00:06:58,800 --> 00:07:00,560 Speaker 1: up for them. And it was as though, you know, 150 00:07:00,560 --> 00:07:02,440 Speaker 1: if we said, oh, Mum, I really want XYZ, like 151 00:07:02,480 --> 00:07:04,400 Speaker 1: we didn't just get it, we had to save up 152 00:07:04,440 --> 00:07:07,440 Speaker 1: for it. Or I remember Dad always saying things like, well, 153 00:07:07,480 --> 00:07:09,479 Speaker 1: if you save up for it, I will match you, 154 00:07:09,960 --> 00:07:12,400 Speaker 1: Like if you can save for X, Y or Z, 155 00:07:12,600 --> 00:07:14,720 Speaker 1: Like if I wanted a toy or something, he would say, look, 156 00:07:14,760 --> 00:07:16,840 Speaker 1: you can have it, we can save for it, we 157 00:07:16,840 --> 00:07:19,200 Speaker 1: can work it out, but I will match you. And 158 00:07:19,240 --> 00:07:21,720 Speaker 1: that always like motivated me to save even more. 159 00:07:21,880 --> 00:07:25,520 Speaker 3: It's just making a lot of sense. It's really picture. 160 00:07:26,160 --> 00:07:29,200 Speaker 3: I can understand how you are the way you are. 161 00:07:30,040 --> 00:07:33,280 Speaker 1: I didn't always listen to him. We argued about times tables. 162 00:07:33,320 --> 00:07:35,120 Speaker 1: I would cry at the table. Still not very good 163 00:07:35,120 --> 00:07:37,600 Speaker 1: at my times tables because of it. And also I 164 00:07:37,640 --> 00:07:40,400 Speaker 1: did get myself in some pretty serious, significant personal debt 165 00:07:40,400 --> 00:07:42,680 Speaker 1: when I was younger because I didn't listen to him. 166 00:07:42,800 --> 00:07:45,520 Speaker 1: But you know, you live in your own So, beck 167 00:07:45,560 --> 00:07:48,200 Speaker 1: you mentioned something before about growing up in a family 168 00:07:48,240 --> 00:07:50,400 Speaker 1: of four and the pocket money maybe was a bit 169 00:07:50,400 --> 00:07:52,800 Speaker 1: of a stretch for the family. How did that make 170 00:07:52,840 --> 00:07:55,679 Speaker 1: you feel when you saw other kids at school getting 171 00:07:55,720 --> 00:07:57,960 Speaker 1: pocket money or similar things like that. 172 00:07:58,200 --> 00:08:00,720 Speaker 3: To be honest, when I was in prime school, I 173 00:08:00,760 --> 00:08:03,200 Speaker 3: didn't notice it very well. I guess we all just 174 00:08:03,320 --> 00:08:06,360 Speaker 3: kind of, you know, I somehow still managed to have 175 00:08:06,400 --> 00:08:08,800 Speaker 3: like twenty cents to buy a red frog or a 176 00:08:08,880 --> 00:08:09,800 Speaker 3: touch sharp and everything. 177 00:08:09,880 --> 00:08:13,640 Speaker 1: I feel like kids, they're super resourceful. There will there 178 00:08:13,680 --> 00:08:14,160 Speaker 1: is a way. 179 00:08:14,320 --> 00:08:17,080 Speaker 3: Absolutely, I kind of noticed it a little bit more 180 00:08:17,080 --> 00:08:19,080 Speaker 3: in high school, maybe tried to keep up a little 181 00:08:19,080 --> 00:08:22,560 Speaker 3: bit with Sino the new trends, fashion trends, et cetera. 182 00:08:22,800 --> 00:08:24,240 Speaker 3: And there's lunch orders. 183 00:08:23,960 --> 00:08:25,960 Speaker 1: You know, oh yeah, yeah, yeah, going to the canteen, 184 00:08:26,040 --> 00:08:27,200 Speaker 1: going to the canteen, get in. 185 00:08:27,200 --> 00:08:29,760 Speaker 3: The lazagna move Oh my gosh. 186 00:08:29,840 --> 00:08:33,680 Speaker 1: Yes, the high school Designia was lit. I forgot about that. Actually, 187 00:08:34,040 --> 00:08:36,520 Speaker 1: that was so good. And we had these things called 188 00:08:36,520 --> 00:08:40,520 Speaker 1: dinosaur rolls, never ever in that's because I think my 189 00:08:40,600 --> 00:08:45,160 Speaker 1: school made them up. So is the sausage roll in 190 00:08:45,360 --> 00:08:48,200 Speaker 1: a white bread roll, with cheese and sauce in the 191 00:08:48,240 --> 00:08:50,680 Speaker 1: white bread roll, and then they wrap it in foil 192 00:08:50,720 --> 00:08:52,800 Speaker 1: and they put it in the oven and like the 193 00:08:52,840 --> 00:08:55,680 Speaker 1: whole thing like melts together and it's like a hot 194 00:08:55,720 --> 00:08:58,120 Speaker 1: bread roll with a sausage roll with sauce and cheese. 195 00:08:58,160 --> 00:09:03,120 Speaker 1: That sounds unyeah, right anyway, but those were like seven dollars, 196 00:09:03,160 --> 00:09:08,679 Speaker 1: Like that's expensive. That's expensive. I feel like it was 197 00:09:08,920 --> 00:09:11,160 Speaker 1: like looking back on it as well, maybe it wasn't 198 00:09:11,160 --> 00:09:13,560 Speaker 1: seven dollars, but it felt expensive. So maybe it was 199 00:09:13,600 --> 00:09:15,640 Speaker 1: like four dollars, but it felt like big dogging. 200 00:09:15,600 --> 00:09:18,679 Speaker 3: Yeah, expensive energy. So it seems like our perceptions of 201 00:09:18,720 --> 00:09:21,800 Speaker 3: the value of money are all relative and also highly subjective. 202 00:09:21,840 --> 00:09:22,839 Speaker 1: Absolutely they are. 203 00:09:23,000 --> 00:09:25,480 Speaker 3: So you asked our community what they thought a lot 204 00:09:25,520 --> 00:09:27,000 Speaker 3: of money was. What did they say? 205 00:09:27,080 --> 00:09:29,160 Speaker 1: I did? I jumped on Instagram and I just did 206 00:09:29,280 --> 00:09:31,000 Speaker 1: like this piece to camera and I was say, all right, guys, 207 00:09:31,040 --> 00:09:33,040 Speaker 1: I need to know. I want to know to you 208 00:09:33,520 --> 00:09:35,079 Speaker 1: how much is a lot of money. I don't want 209 00:09:35,080 --> 00:09:36,719 Speaker 1: to give you any context, like we're not going to 210 00:09:36,800 --> 00:09:38,440 Speaker 1: talk about it, and I'll read out some of the 211 00:09:38,440 --> 00:09:41,080 Speaker 1: answers because they actually were really diverse, and it gave 212 00:09:41,120 --> 00:09:44,880 Speaker 1: me such an insight just into people's mentalities. And that's 213 00:09:44,880 --> 00:09:47,080 Speaker 1: why I said before I really loved that. You were like, oh, well, 214 00:09:47,120 --> 00:09:49,800 Speaker 1: it depends on the pace cycle, because so many people 215 00:09:49,800 --> 00:09:53,560 Speaker 1: gave context. So someone said a lot of money looked 216 00:09:53,640 --> 00:09:56,040 Speaker 1: like not worrying about the color of the plate at 217 00:09:56,120 --> 00:09:57,079 Speaker 1: sushi train o. 218 00:09:57,400 --> 00:09:58,000 Speaker 3: Amen. 219 00:09:58,360 --> 00:10:01,720 Speaker 1: Yeah. Someone said over two hundred dollars. Someone else said 220 00:10:01,840 --> 00:10:04,080 Speaker 1: to be able to buy something without checking my bank 221 00:10:04,080 --> 00:10:07,760 Speaker 1: account relatable. Someone said one hundred thousand dollars. Another person 222 00:10:07,800 --> 00:10:11,480 Speaker 1: said a million dollars. Wow. Someone then said millions in 223 00:10:11,559 --> 00:10:13,880 Speaker 1: order to live comfortably for the rest of my life 224 00:10:13,880 --> 00:10:15,520 Speaker 1: and set my kids up. I feel like that's a 225 00:10:15,559 --> 00:10:18,880 Speaker 1: bit more big picture. Then someone said, my friends thought 226 00:10:18,920 --> 00:10:21,360 Speaker 1: paying one hundred and fifty dollars for a small lamp 227 00:10:21,440 --> 00:10:23,640 Speaker 1: was a lot, and I actually thought that was pretty cheap. No, 228 00:10:23,920 --> 00:10:28,080 Speaker 1: they yeah, but like that's her experiences, Like maybe she'd 229 00:10:28,080 --> 00:10:30,280 Speaker 1: been looking at five hundred dollar lamps and then she 230 00:10:30,400 --> 00:10:33,840 Speaker 1: was like, oh, this one, this one's a good deal. Nos. 231 00:10:34,000 --> 00:10:37,280 Speaker 1: Someone said ten thousand dollars New Zealand money and that 232 00:10:37,360 --> 00:10:40,000 Speaker 1: if I lost more than that, I'd be upset less 233 00:10:40,000 --> 00:10:41,680 Speaker 1: than that and I'd just be annoyed. And I was like, 234 00:10:41,840 --> 00:10:42,640 Speaker 1: what in the wealth? 235 00:10:42,960 --> 00:10:45,280 Speaker 3: Like, what in the wealth? 236 00:10:45,440 --> 00:10:48,600 Speaker 1: Yeah, exactly. Someone said, I think a lot of money 237 00:10:48,640 --> 00:10:50,720 Speaker 1: is a salary of one hundred and twenty thousand dollars, 238 00:10:50,960 --> 00:10:53,199 Speaker 1: but maybe, like a once off, a lot of money 239 00:10:53,200 --> 00:10:55,120 Speaker 1: is one thousand dollars, and I was like, yeah, okay, 240 00:10:55,120 --> 00:10:58,440 Speaker 1: interesting context. Someone else said in terms of cost, I 241 00:10:58,440 --> 00:11:01,200 Speaker 1: guess five hundred dollars, but in terms of wealth a 242 00:11:01,280 --> 00:11:05,040 Speaker 1: million plus. Someone then said, oh, anything over five hundred 243 00:11:05,080 --> 00:11:08,120 Speaker 1: thousand dollars, which to them is a decent house deposit, 244 00:11:08,280 --> 00:11:11,240 Speaker 1: feels comfortable. And I was like, again, what in the wealth? 245 00:11:12,000 --> 00:11:15,360 Speaker 1: And then someone said anything over one hundred dollars is 246 00:11:15,400 --> 00:11:17,200 Speaker 1: a lot for me to lose from my bank account, 247 00:11:17,240 --> 00:11:19,560 Speaker 1: and I was like, okay, So, Beck, with all of 248 00:11:19,600 --> 00:11:22,120 Speaker 1: that in mind, after I've read them all out and 249 00:11:22,200 --> 00:11:24,839 Speaker 1: given you said before five hundred dollars at the start 250 00:11:24,840 --> 00:11:27,080 Speaker 1: of the pay cycle and thirty dollars at the end, 251 00:11:27,760 --> 00:11:28,839 Speaker 1: how does that make you feel? 252 00:11:28,880 --> 00:11:28,960 Speaker 2: Like? 253 00:11:29,000 --> 00:11:30,080 Speaker 1: What are you thinking? Right? 254 00:11:30,080 --> 00:11:33,079 Speaker 3: Now I didn't notice that thirty dollars wasn't on the list. 255 00:11:33,160 --> 00:11:37,480 Speaker 1: That's okay. So again, it's personal, it's highly personal. Personal 256 00:11:37,520 --> 00:11:40,400 Speaker 1: finance is just that it is personal. It is, and 257 00:11:40,480 --> 00:11:41,480 Speaker 1: we need to respect that. 258 00:11:41,800 --> 00:11:43,959 Speaker 3: Yes, and well, it actually was very comforting because I 259 00:11:44,040 --> 00:11:46,520 Speaker 3: did relate to being able to buy something without checking 260 00:11:46,559 --> 00:11:49,760 Speaker 3: my bank account. I don't even know the last time 261 00:11:49,840 --> 00:11:52,240 Speaker 3: I bought something about having to check my bank account first. 262 00:11:52,400 --> 00:11:55,000 Speaker 3: So it did make me feel comforted in some ways. 263 00:11:55,280 --> 00:11:58,560 Speaker 3: In other ways, you know, for example, let's say I 264 00:11:58,600 --> 00:12:00,680 Speaker 3: would be finally ten. 265 00:12:00,520 --> 00:12:04,679 Speaker 1: K that was unrelatable. I would be so anxious that 266 00:12:06,000 --> 00:12:08,920 Speaker 1: ruin me, but not relatable to you or I maybe 267 00:12:08,960 --> 00:12:10,719 Speaker 1: other listeners that are listening to the pod are like, 268 00:12:10,760 --> 00:12:12,880 Speaker 1: oh yeah, I feel exactly the same. And you know what, 269 00:12:13,000 --> 00:12:15,880 Speaker 1: that's actually okay. So you didn't have any level of 270 00:12:15,960 --> 00:12:20,200 Speaker 1: judgment over other people's circumstances. Absolutely absolutely In saying that, 271 00:12:20,320 --> 00:12:22,360 Speaker 1: let's jump to a really quick break and then we 272 00:12:22,440 --> 00:12:24,720 Speaker 1: get back, we can talk even more about this, and 273 00:12:24,720 --> 00:12:27,120 Speaker 1: I really want to deep dive into lifestyle creep. Well, 274 00:12:27,200 --> 00:12:27,640 Speaker 1: let's do it. 275 00:12:27,720 --> 00:12:34,800 Speaker 3: I was excited. Okav We are back and we are 276 00:12:34,840 --> 00:12:37,120 Speaker 3: talking about how much money is a lot of money. 277 00:12:37,320 --> 00:12:39,839 Speaker 1: And it turns out there's not actually an answer to that. 278 00:12:40,480 --> 00:12:43,520 Speaker 1: It's really dependent. So that was kind of like, what 279 00:12:43,559 --> 00:12:47,320 Speaker 1: do they call that? Clickbait click creak article titles but 280 00:12:47,480 --> 00:12:50,280 Speaker 1: podcast titles, So we don't actually have an answer to 281 00:12:50,320 --> 00:12:54,600 Speaker 1: the quarry everyone, sorry not So I want to know it, Beck, 282 00:12:55,040 --> 00:12:58,000 Speaker 1: what did you do with your first full paycheck? You 283 00:12:58,080 --> 00:12:59,960 Speaker 1: mentioned pay before, and it's just making me think, So 284 00:13:00,080 --> 00:13:01,439 Speaker 1: I really want to know what did you do it? 285 00:13:01,720 --> 00:13:02,280 Speaker 1: Do you remember? 286 00:13:02,520 --> 00:13:02,679 Speaker 3: Yeah? 287 00:13:02,720 --> 00:13:03,360 Speaker 1: I can't think. 288 00:13:03,559 --> 00:13:05,679 Speaker 3: Yeah, so I would say, and this is probably a 289 00:13:05,679 --> 00:13:08,880 Speaker 3: little embarrassing. The first thing I did when I got 290 00:13:08,880 --> 00:13:11,880 Speaker 3: my first full, full time paycheck was fill up my 291 00:13:11,960 --> 00:13:14,320 Speaker 3: petrol tank all the way, all the way, all the way. 292 00:13:14,480 --> 00:13:15,920 Speaker 1: I feel so boogie. 293 00:13:16,080 --> 00:13:16,760 Speaker 3: Oh my god. 294 00:13:17,000 --> 00:13:19,679 Speaker 1: I've got this conversation in the community before, and there 295 00:13:19,720 --> 00:13:22,240 Speaker 1: are so many people in our community that are like, nap, 296 00:13:22,280 --> 00:13:24,120 Speaker 1: I've never done it, Like every time I go to 297 00:13:24,160 --> 00:13:26,840 Speaker 1: the petrol station, I will only put like twenty dollars 298 00:13:26,880 --> 00:13:28,800 Speaker 1: in or thirty dollars in or whatever it is, yeah, 299 00:13:28,920 --> 00:13:31,720 Speaker 1: or can relate yeah, like, and I totally get that, 300 00:13:31,840 --> 00:13:33,840 Speaker 1: but I also think it's a good way of budgeting. 301 00:13:33,960 --> 00:13:36,200 Speaker 1: Like a lot of people will be like oh, well, actually, 302 00:13:36,400 --> 00:13:38,959 Speaker 1: my petrol budget each and every single week is thirty dollars, 303 00:13:38,960 --> 00:13:41,480 Speaker 1: so I just even though it's more frequent, I still 304 00:13:41,559 --> 00:13:43,559 Speaker 1: just go to the petrol station every week and put 305 00:13:43,600 --> 00:13:46,080 Speaker 1: that thirty dollars in because it just makes me feel 306 00:13:46,120 --> 00:13:48,199 Speaker 1: comfortable and confident and I know I've got petrol. But 307 00:13:48,240 --> 00:13:51,160 Speaker 1: it like doesn't ever blow the budget. But it is 308 00:13:51,240 --> 00:13:55,160 Speaker 1: really boogie, especially right now, to be filling your tank 309 00:13:55,240 --> 00:13:57,360 Speaker 1: all the way. Yeah, that's a bit of a splurge. 310 00:13:57,400 --> 00:14:00,199 Speaker 1: So would you say that with your first paycheck a 311 00:14:00,240 --> 00:14:01,959 Speaker 1: little bit of a splurge activity. 312 00:14:02,360 --> 00:14:05,080 Speaker 3: I think I did. But also I'm trying to remember 313 00:14:05,120 --> 00:14:07,760 Speaker 3: when I got my first full time paycheck. I was 314 00:14:07,880 --> 00:14:12,559 Speaker 3: probably eighteen, so it was like five cents an hour 315 00:14:12,720 --> 00:14:16,120 Speaker 3: or something something related. Back in the day. I remember 316 00:14:16,120 --> 00:14:18,520 Speaker 3: filling my petro tank up all the way. I also 317 00:14:18,559 --> 00:14:21,720 Speaker 3: remember buying just like little items that I couldn't really 318 00:14:21,760 --> 00:14:24,560 Speaker 3: afford before, Like I did a whole grocery shop instead 319 00:14:24,600 --> 00:14:29,520 Speaker 3: of just bread and some comp and hear the essentials, 320 00:14:29,960 --> 00:14:32,400 Speaker 3: I thought, Oh, I feel it of salmon, that's all. 321 00:14:32,400 --> 00:14:34,520 Speaker 1: Oh good? Did it go off in your fridge or 322 00:14:34,520 --> 00:14:36,320 Speaker 1: did you eat it? I feel like I ate it. 323 00:14:36,360 --> 00:14:38,520 Speaker 3: I feel like I was very because it was it was, 324 00:14:38,560 --> 00:14:40,960 Speaker 3: you know, one hundred thousand years ago, but yeah, it 325 00:14:41,000 --> 00:14:43,480 Speaker 3: was very It still is very, very expensive. I think 326 00:14:43,520 --> 00:14:46,800 Speaker 3: that's one thing that's never decreased or increased over time, 327 00:14:46,960 --> 00:14:48,280 Speaker 3: so it's a consistent food. 328 00:14:48,360 --> 00:14:52,760 Speaker 1: Also good food, great choices there. Petrol and salmon is 329 00:14:52,760 --> 00:14:55,320 Speaker 1: the two things I bought. You mentioned before that you 330 00:14:55,360 --> 00:14:57,480 Speaker 1: went and bought a whole heap of little things that 331 00:14:57,520 --> 00:15:00,160 Speaker 1: you maybe couldn't have afforded before, And I guess. So 332 00:15:00,200 --> 00:15:02,000 Speaker 1: that's on the flip side of it, And we mentioned 333 00:15:02,040 --> 00:15:03,880 Speaker 1: it at the start of this episode that it really 334 00:15:03,920 --> 00:15:07,520 Speaker 1: plays into lifestyle creep, and lifestyle creep is this concept 335 00:15:07,680 --> 00:15:11,680 Speaker 1: that over time your lifestyle just becomes more expensive. So 336 00:15:11,920 --> 00:15:14,800 Speaker 1: if you're in UNI, you probably have a cheaper lifestyle. 337 00:15:14,840 --> 00:15:16,440 Speaker 1: And we say it all the time, right, Like, I 338 00:15:16,520 --> 00:15:19,840 Speaker 1: don't know, We've had conversations like this offline where I'll 339 00:15:19,840 --> 00:15:22,280 Speaker 1: be like, oh my gosh, remember at UNI, we used 340 00:15:22,320 --> 00:15:24,840 Speaker 1: to be able to, like, you know, make fifty bucks 341 00:15:25,040 --> 00:15:29,120 Speaker 1: last like literally an entire week. And I still went 342 00:15:29,120 --> 00:15:32,120 Speaker 1: out most days, Like somehow I still manage to go 343 00:15:32,240 --> 00:15:33,760 Speaker 1: out with my friends, go out for lunch, do this, 344 00:15:33,840 --> 00:15:36,840 Speaker 1: do that, like and now brunch for my girlfriend and 345 00:15:36,880 --> 00:15:39,280 Speaker 1: I will be fifty bucks and like, oh, that's me 346 00:15:39,440 --> 00:15:42,320 Speaker 1: done for the week. Like I don't have another fifty bucks. 347 00:15:42,440 --> 00:15:44,200 Speaker 1: So I think it's interesting to see that you said 348 00:15:44,200 --> 00:15:46,440 Speaker 1: something like, oh, yeah, with my first paycheck, I bought 349 00:15:46,440 --> 00:15:50,200 Speaker 1: things I couldn't afford before. What do you think about lifestyle, creep? 350 00:15:50,200 --> 00:15:52,680 Speaker 1: Do you think your lifestyle today is more expensive than 351 00:15:52,680 --> 00:15:55,560 Speaker 1: it was, say, ten years ago. I think so, And. 352 00:15:55,520 --> 00:15:57,440 Speaker 3: I think that's the funny thing. A good friend of 353 00:15:57,440 --> 00:15:59,760 Speaker 3: mine once said, this is a direct quote from her 354 00:16:00,280 --> 00:16:03,800 Speaker 3: Mo money Mo problems, So you kind of. 355 00:16:03,760 --> 00:16:07,680 Speaker 1: It's your friend a wrapper. Are you trying to tell 356 00:16:07,680 --> 00:16:09,720 Speaker 1: me you've got famous friends? I have famous friends. 357 00:16:09,800 --> 00:16:10,000 Speaker 2: Yeah? 358 00:16:10,080 --> 00:16:12,000 Speaker 3: Cool. But I really do think it's that thing that 359 00:16:12,200 --> 00:16:14,080 Speaker 3: the more money you make, the more money you spend. 360 00:16:14,240 --> 00:16:16,560 Speaker 3: So I think that my lifestyle now, the amount of 361 00:16:16,600 --> 00:16:19,200 Speaker 3: money I spend now is way more than what I 362 00:16:19,280 --> 00:16:21,680 Speaker 3: used to spend when I wasn't making as much. Not 363 00:16:21,720 --> 00:16:26,000 Speaker 3: that I'm making twenty billion dollars today, but I kind 364 00:16:26,000 --> 00:16:28,160 Speaker 3: of always just spend a little bit more if I 365 00:16:28,200 --> 00:16:29,320 Speaker 3: have a little bit more, you know. 366 00:16:29,520 --> 00:16:31,880 Speaker 1: And this kind of plays into this concept that I 367 00:16:31,920 --> 00:16:34,040 Speaker 1: think a lot of people just I don't know they 368 00:16:34,080 --> 00:16:36,080 Speaker 1: really lean into because they go, oh, I don't have 369 00:16:36,120 --> 00:16:38,880 Speaker 1: a big salary, Therefore it's not worth it. It's not worth saving, 370 00:16:38,920 --> 00:16:41,880 Speaker 1: it's not worth investing. Like what's the point, Like I 371 00:16:41,880 --> 00:16:45,840 Speaker 1: don't even earn that much. But history tells me that 372 00:16:46,160 --> 00:16:48,880 Speaker 1: it's not actually those people who earn the most money. 373 00:16:48,960 --> 00:16:50,920 Speaker 1: And I talked about this in my first book. If 374 00:16:50,920 --> 00:16:53,320 Speaker 1: you've read my book, you know exactly what I'm talking about. 375 00:16:53,640 --> 00:16:56,920 Speaker 1: But I had two different couples, and I inherited both 376 00:16:56,960 --> 00:16:59,160 Speaker 1: of them as clients, so they weren't my clients their 377 00:16:59,320 --> 00:17:02,000 Speaker 1: entire lives, which makes sense because I'm in my thirties 378 00:17:02,040 --> 00:17:05,639 Speaker 1: and both of them would now be in their late seventies, 379 00:17:05,720 --> 00:17:08,320 Speaker 1: so it wasn't their financial advisor the whole time. But 380 00:17:08,400 --> 00:17:11,520 Speaker 1: I had this one couple who he worked as a 381 00:17:11,520 --> 00:17:14,359 Speaker 1: maintenance man and maybe earned seventy grand a year for 382 00:17:14,640 --> 00:17:17,120 Speaker 1: his entire career, maybe it went up a little bit 383 00:17:17,200 --> 00:17:20,200 Speaker 1: towards the end of his career, and they had three kids, 384 00:17:20,280 --> 00:17:22,720 Speaker 1: and his wife never worked. She stayed at home and 385 00:17:22,720 --> 00:17:25,560 Speaker 1: looked after the kids because that obviously made sense for them, 386 00:17:25,920 --> 00:17:29,920 Speaker 1: And he retired with so much money because he had 387 00:17:29,960 --> 00:17:32,600 Speaker 1: been saving and investing that whole time and was really 388 00:17:32,600 --> 00:17:35,000 Speaker 1: good at budgeting and really good at making things work. 389 00:17:35,240 --> 00:17:37,960 Speaker 1: And now they have this lifestyle where they have a 390 00:17:38,000 --> 00:17:40,639 Speaker 1: passive income of about one hundred and thirty one hundred 391 00:17:40,640 --> 00:17:43,080 Speaker 1: and forty thousand dollars from memory coming in each and 392 00:17:43,119 --> 00:17:45,760 Speaker 1: every single year, which is more than they've ever had before. 393 00:17:46,080 --> 00:17:48,280 Speaker 1: And because he was so good at saving and investing, 394 00:17:48,320 --> 00:17:50,160 Speaker 1: like they don't have any big expenses, so they don't 395 00:17:50,160 --> 00:17:52,320 Speaker 1: have a mortgage anymore, Like they're all good to go. 396 00:17:53,040 --> 00:17:57,720 Speaker 1: But wow, in comparison, I had this client or these 397 00:17:57,720 --> 00:18:00,679 Speaker 1: two clients who were really really well. They had a 398 00:18:00,680 --> 00:18:04,719 Speaker 1: combined income of half a million dollars each year, like 399 00:18:05,440 --> 00:18:08,200 Speaker 1: lots of kids, still three kids, all kids are going 400 00:18:08,240 --> 00:18:11,360 Speaker 1: to private schools. They have you know, a car loan each. 401 00:18:11,440 --> 00:18:13,880 Speaker 1: They had a loan for a boat. They had multiple 402 00:18:13,920 --> 00:18:16,000 Speaker 1: properties that were not paid off because they were just 403 00:18:16,040 --> 00:18:18,359 Speaker 1: paying the interest on the properties because like, with an 404 00:18:18,359 --> 00:18:20,199 Speaker 1: income that big, you can get the loan, and like 405 00:18:20,240 --> 00:18:24,080 Speaker 1: that made sense. But looking at their financial planning, I 406 00:18:24,119 --> 00:18:26,520 Speaker 1: sat down with them because they were in their fifties 407 00:18:26,600 --> 00:18:28,560 Speaker 1: when they came to me, and they said, really want 408 00:18:28,600 --> 00:18:30,600 Speaker 1: to retire, Like what's what's the plan, Like, you know, 409 00:18:30,680 --> 00:18:32,320 Speaker 1: we obviously have a lot of money, and they were 410 00:18:32,359 --> 00:18:36,160 Speaker 1: going on ski trips every year to Aspen, like that's 411 00:18:36,160 --> 00:18:37,040 Speaker 1: big dog energy. 412 00:18:37,160 --> 00:18:37,920 Speaker 2: That is big. 413 00:18:38,040 --> 00:18:40,920 Speaker 1: But they couldn't afford to retire, and they couldn't afford 414 00:18:40,960 --> 00:18:44,120 Speaker 1: to retire because they didn't have any savings or any 415 00:18:44,119 --> 00:18:47,440 Speaker 1: investments at all to put themselves in a position where 416 00:18:47,440 --> 00:18:50,239 Speaker 1: they could stop working. So their lifestyle was maintainable if 417 00:18:50,280 --> 00:18:53,560 Speaker 1: they continued to do their really high income jobs every 418 00:18:53,600 --> 00:18:56,560 Speaker 1: single year. But for them to retire, we did a 419 00:18:56,560 --> 00:18:58,399 Speaker 1: financial plan that meant they had to get rid of 420 00:18:58,400 --> 00:18:59,600 Speaker 1: the cars, they had to get rid of the boats, 421 00:18:59,600 --> 00:19:01,200 Speaker 1: they had to get rid of one of the houses. 422 00:19:01,640 --> 00:19:05,639 Speaker 1: And with that financial plan, beck it put them in 423 00:19:05,680 --> 00:19:09,720 Speaker 1: the same position as my other couple, So their outcome 424 00:19:09,960 --> 00:19:13,040 Speaker 1: meant that their income during retirement would be exactly the 425 00:19:13,080 --> 00:19:16,200 Speaker 1: same as my other couple who didn't have that massive income, 426 00:19:16,480 --> 00:19:19,000 Speaker 1: who you know, had just plotted along the whole time, 427 00:19:19,160 --> 00:19:22,320 Speaker 1: and you know, they actually financially were going to be 428 00:19:22,320 --> 00:19:26,880 Speaker 1: in the same position. However, because my first client had 429 00:19:26,920 --> 00:19:29,320 Speaker 1: been doing it their entire life, they didn't need that 430 00:19:29,440 --> 00:19:33,240 Speaker 1: much to be contributed every month. But because my other clients, 431 00:19:33,280 --> 00:19:35,760 Speaker 1: who were really wealthy, were only doing it in their 432 00:19:35,840 --> 00:19:39,320 Speaker 1: late fifties. They're in a bit of a picky position 433 00:19:39,520 --> 00:19:42,160 Speaker 1: because that means they've got to save and invest heaps, 434 00:19:42,200 --> 00:19:44,880 Speaker 1: like more than half of their income had to go 435 00:19:45,240 --> 00:19:48,480 Speaker 1: towards wealth creation and saving and investing to actually put 436 00:19:48,520 --> 00:19:51,240 Speaker 1: them in the same position. So I will at some 437 00:19:51,320 --> 00:19:54,080 Speaker 1: point post that example on Instagram because I think it's 438 00:19:54,119 --> 00:19:56,960 Speaker 1: a really interesting case study to go. Well, Beck, it's 439 00:19:57,000 --> 00:19:59,280 Speaker 1: actually not about how much you earn, but more what 440 00:19:59,320 --> 00:20:01,679 Speaker 1: you do with it over the long term. And this 441 00:20:01,840 --> 00:20:05,280 Speaker 1: idea of you know, we're talking about lifestyle creep. Obviously 442 00:20:05,320 --> 00:20:09,160 Speaker 1: they had significant lifestyle creep, but it's this idea that 443 00:20:09,600 --> 00:20:11,560 Speaker 1: you know, a lot of people think to be good 444 00:20:11,560 --> 00:20:13,119 Speaker 1: at money, you have to have lots of it, and 445 00:20:13,160 --> 00:20:15,440 Speaker 1: that's just not the case. It's not the case at all, 446 00:20:15,520 --> 00:20:18,640 Speaker 1: Like anyone can create financial freedom if they put their 447 00:20:18,640 --> 00:20:19,159 Speaker 1: minds to it. 448 00:20:19,200 --> 00:20:22,639 Speaker 3: Well, it's actually very interesting, very hard, very very hot. 449 00:20:23,160 --> 00:20:26,119 Speaker 3: The earlier today, you were telling me about lotto winners, and. 450 00:20:26,800 --> 00:20:30,320 Speaker 1: Yes, that's actually a really good example here. So we 451 00:20:30,400 --> 00:20:33,400 Speaker 1: always hear this idea that a lot of people who 452 00:20:33,400 --> 00:20:35,879 Speaker 1: win the lottery go broke, right, Like, that's not a 453 00:20:35,880 --> 00:20:38,320 Speaker 1: new concept. I think a lot of people have heard 454 00:20:38,320 --> 00:20:41,760 Speaker 1: it before, but there is some research out of Boston 455 00:20:41,880 --> 00:20:45,600 Speaker 1: University that actually found that, you know, putting that aside, 456 00:20:46,040 --> 00:20:49,400 Speaker 1: the people that are most likely to go broke are 457 00:20:49,480 --> 00:20:52,399 Speaker 1: actually the neighbors of lotto winners. What So, if you 458 00:20:52,480 --> 00:20:54,639 Speaker 1: live next door to someone who won the lotto, you 459 00:20:54,680 --> 00:20:57,520 Speaker 1: are more likely to go broke, right. So it was 460 00:20:57,560 --> 00:20:59,680 Speaker 1: this article that was published in a working paper from 461 00:20:59,680 --> 00:21:02,600 Speaker 1: the f Reserve Bank of Philadelphia in the US, and 462 00:21:02,640 --> 00:21:06,520 Speaker 1: the researchers poured over Canadian data relating to lottery winners 463 00:21:06,640 --> 00:21:09,320 Speaker 1: and then bankruptcy claims from two thousand and four to 464 00:21:09,320 --> 00:21:12,919 Speaker 1: twenty fourteen. And this article it's centered around people who 465 00:21:13,000 --> 00:21:15,600 Speaker 1: won less than one hundred and fifty thousand dollars because 466 00:21:15,640 --> 00:21:17,880 Speaker 1: people who won more than that tended to move away 467 00:21:17,920 --> 00:21:20,600 Speaker 1: to that more fancy, fancy pants areas where they lived 468 00:21:20,600 --> 00:21:22,960 Speaker 1: among you know, more rich people. So it's not as 469 00:21:23,080 --> 00:21:26,960 Speaker 1: relatable of course, yep. But the bigger the lottery win 470 00:21:27,119 --> 00:21:30,840 Speaker 1: in a neighborhood, the more cases of bankruptcy they're tended 471 00:21:30,880 --> 00:21:33,600 Speaker 1: to be in the same area. Wow. And the total 472 00:21:33,600 --> 00:21:37,720 Speaker 1: amount of cash board also rose across the whole neighborhood 473 00:21:38,040 --> 00:21:40,600 Speaker 1: relative to the amount that was one and This trend 474 00:21:40,680 --> 00:21:44,800 Speaker 1: apparently occurred because neighbors of lottery winners tended to splurge 475 00:21:44,840 --> 00:21:47,440 Speaker 1: on what we call obvious displays of wealth, like brand 476 00:21:47,440 --> 00:21:49,159 Speaker 1: new cars or boats or things to put in their 477 00:21:49,240 --> 00:21:52,400 Speaker 1: driveways because they saw their neighbors with them and they 478 00:21:52,480 --> 00:21:54,800 Speaker 1: got jealous and got a little bit of fomo and 479 00:21:54,880 --> 00:21:57,239 Speaker 1: wanted to do the whole keeping up with the Joneses thing. 480 00:21:57,280 --> 00:21:58,920 Speaker 1: And they're like, oh, well, Beck did it, but maybe 481 00:21:59,000 --> 00:22:01,239 Speaker 1: didn't know. Beck won a whole heap of money. So 482 00:22:01,480 --> 00:22:04,280 Speaker 1: people are more likely to go broke because they want 483 00:22:04,280 --> 00:22:06,359 Speaker 1: to keep up with the Joneses. Isn't that wild? 484 00:22:06,440 --> 00:22:09,560 Speaker 3: That is so wild? It kind of in a way 485 00:22:09,680 --> 00:22:11,359 Speaker 3: makes sense. And I don't know if you know this 486 00:22:11,359 --> 00:22:14,040 Speaker 3: about me, v, but keeping up with the Joneses is 487 00:22:14,200 --> 00:22:16,560 Speaker 3: kind of what made me go bankrupt. 488 00:22:17,000 --> 00:22:19,040 Speaker 1: So I know that, but the community is not going 489 00:22:19,080 --> 00:22:20,800 Speaker 1: to know that. You and I have spoken about it, 490 00:22:20,840 --> 00:22:22,560 Speaker 1: and I think the thing I love about you is 491 00:22:22,600 --> 00:22:25,560 Speaker 1: that you're so open and willing to talk about that journey. 492 00:22:25,600 --> 00:22:27,639 Speaker 1: And I'm assuming it's because you don't want other people 493 00:22:27,640 --> 00:22:29,560 Speaker 1: to end up in that position, nor do you want 494 00:22:29,560 --> 00:22:33,560 Speaker 1: to end up in it again yourself. But from your perspective, 495 00:22:33,640 --> 00:22:36,639 Speaker 1: having been in that circumstance, do you still, I guess, 496 00:22:36,680 --> 00:22:38,800 Speaker 1: have the mindset of thinking that you need a whole 497 00:22:38,840 --> 00:22:41,560 Speaker 1: heap of money to be able to create wealth, look. 498 00:22:41,440 --> 00:22:44,199 Speaker 3: To a degree, because for me, it was kind of like, 499 00:22:44,280 --> 00:22:46,159 Speaker 3: you know, I knew that I wanted to go to 500 00:22:46,280 --> 00:22:49,399 Speaker 3: UNI and study and make a career for myself. So 501 00:22:49,440 --> 00:22:51,439 Speaker 3: I'd see people around me and they would have the 502 00:22:51,600 --> 00:22:56,120 Speaker 3: newest MacBook, the best devices, and you know, I kind 503 00:22:56,119 --> 00:22:58,800 Speaker 3: of had like a really old laptop or just a 504 00:22:59,119 --> 00:23:01,840 Speaker 3: note pad and pen, and I kind of thought there 505 00:23:01,880 --> 00:23:05,600 Speaker 3: are certain parts of life where you need money in 506 00:23:05,760 --> 00:23:07,640 Speaker 3: order to have a bit of a leg up. I'm 507 00:23:07,640 --> 00:23:09,800 Speaker 3: not saying it's impossible to move forward with that money. 508 00:23:09,520 --> 00:23:13,400 Speaker 1: But it obviously is a very very nice advantage. 509 00:23:12,920 --> 00:23:14,080 Speaker 3: Right, a nice advantage. 510 00:23:14,200 --> 00:23:17,119 Speaker 1: One hundred percent doesn't hurt one hundred percent. But given 511 00:23:17,200 --> 00:23:19,640 Speaker 1: you've given us a little bit of context, I'm assuming 512 00:23:19,640 --> 00:23:21,879 Speaker 1: you didn't grow up in a super wealthy family, so 513 00:23:21,920 --> 00:23:23,480 Speaker 1: it's not as though you could go, oh, mom and dad, 514 00:23:23,480 --> 00:23:25,159 Speaker 1: I need new laptop for you. Me like, is that 515 00:23:25,240 --> 00:23:27,080 Speaker 1: a circumstance that would have ever happened for you? 516 00:23:27,440 --> 00:23:27,720 Speaker 2: Yeah? 517 00:23:27,800 --> 00:23:29,840 Speaker 3: Like I know that growing up, I knew that my 518 00:23:29,960 --> 00:23:32,919 Speaker 3: Mum would always come through with the goods. She always 519 00:23:32,960 --> 00:23:35,200 Speaker 3: found a way too. It sounds like her queen. She's 520 00:23:35,240 --> 00:23:37,800 Speaker 3: a queen, probably a budget queen. She's actually now quite 521 00:23:37,800 --> 00:23:40,520 Speaker 3: a budget queen. I've realized I need to take a 522 00:23:40,560 --> 00:23:43,199 Speaker 3: page out of her book. Ironically, she always came up 523 00:23:43,240 --> 00:23:44,920 Speaker 3: with the goods. But it kind of hit a point 524 00:23:44,920 --> 00:23:47,680 Speaker 3: where I was about seventeen eighteen, and my circle of 525 00:23:47,720 --> 00:23:51,479 Speaker 3: friends always had, you know, the newest shoes. They're always like, 526 00:23:51,760 --> 00:23:54,199 Speaker 3: you know, completely decked out and cool stuff, and so, 527 00:23:54,760 --> 00:23:56,160 Speaker 3: you know, I got to a point where I kind 528 00:23:56,160 --> 00:23:59,679 Speaker 3: of needed to keep up, and I found myself in 529 00:23:59,800 --> 00:24:01,840 Speaker 3: a bit of debt. Just you, we're just spending more 530 00:24:01,840 --> 00:24:03,960 Speaker 3: than more than I was earning. And I got myself 531 00:24:03,960 --> 00:24:06,480 Speaker 3: a credit card at eighteen, and then before I knew it, 532 00:24:06,520 --> 00:24:08,480 Speaker 3: I hit like twenty I needed a personal loan to 533 00:24:08,480 --> 00:24:11,399 Speaker 3: pay off that credit card, and then I kind of 534 00:24:11,480 --> 00:24:14,399 Speaker 3: just it just snowballed. I needed more and more loans 535 00:24:14,520 --> 00:24:16,720 Speaker 3: to pay off more and more loans, and then by 536 00:24:16,720 --> 00:24:18,600 Speaker 3: the time I hit twenty five, I was like, I 537 00:24:18,640 --> 00:24:20,200 Speaker 3: am drowning. 538 00:24:20,280 --> 00:24:22,280 Speaker 1: I am in a pickle. And a minut of people 539 00:24:22,440 --> 00:24:25,360 Speaker 1: how you ended up going bankrupt? We will do some 540 00:24:25,400 --> 00:24:27,800 Speaker 1: more deep diving I think into how that worked, because 541 00:24:27,800 --> 00:24:30,960 Speaker 1: I think that bankruptcy has a lot of shame associated 542 00:24:31,000 --> 00:24:33,960 Speaker 1: with it, which is absolutely not necessary, because I'm assuming, 543 00:24:34,240 --> 00:24:36,400 Speaker 1: you know, grand assumption that when you got a credit card, 544 00:24:36,480 --> 00:24:37,960 Speaker 1: you didn't know how bad that could be for you, 545 00:24:38,080 --> 00:24:39,920 Speaker 1: of course, because you just didn't have the right mindset, 546 00:24:39,920 --> 00:24:42,320 Speaker 1: you didn't have the right educational knowledge. And I'm sure 547 00:24:42,320 --> 00:24:44,520 Speaker 1: that today, if you were handed a credit card, I 548 00:24:44,560 --> 00:24:46,240 Speaker 1: feel like it would be thrown across the room and 549 00:24:46,240 --> 00:24:49,199 Speaker 1: you probably wouldn't want it. But I also think that 550 00:24:49,200 --> 00:24:51,000 Speaker 1: you would have a lot more knowledge today than you 551 00:24:51,040 --> 00:24:52,960 Speaker 1: did then to use it respectfully. 552 00:24:53,040 --> 00:24:55,760 Speaker 3: Right, Yes, absolutely, I mean I would hope, so, I 553 00:24:55,760 --> 00:24:57,920 Speaker 3: would hope, so get a couple of dollars in my hand, 554 00:24:57,960 --> 00:25:00,000 Speaker 3: and I do become a bit white. 555 00:25:00,280 --> 00:25:02,480 Speaker 1: We talk about this concept on the podcast that from 556 00:25:02,520 --> 00:25:05,240 Speaker 1: little things grow and it's kind of about these small 557 00:25:05,280 --> 00:25:08,119 Speaker 1: steps in the right direction. And you know, there's this 558 00:25:08,240 --> 00:25:10,200 Speaker 1: quote that says, if you can't manage one thousand dollars, 559 00:25:10,200 --> 00:25:12,320 Speaker 1: there's no way you can manage ten thousand dollars, and 560 00:25:12,359 --> 00:25:15,040 Speaker 1: I think that that is so true, and I get 561 00:25:15,160 --> 00:25:18,760 Speaker 1: so frustrated because people in our community, you'll be like, oh, well, 562 00:25:18,840 --> 00:25:21,680 Speaker 1: that's nice. Like, I'll put an example up right, I'll go, oh, well, 563 00:25:21,680 --> 00:25:24,600 Speaker 1: if you invest five hundred dollars each and every single month, 564 00:25:24,640 --> 00:25:26,879 Speaker 1: by the time you reach retirement, you'll have an investment 565 00:25:26,960 --> 00:25:29,600 Speaker 1: portfolio of one point two million dollars at a rate 566 00:25:29,600 --> 00:25:31,680 Speaker 1: of return of seven and a half percent. People be like, well, 567 00:25:31,720 --> 00:25:34,159 Speaker 1: I don't have five hundred dollars a month, Victoria, And 568 00:25:34,200 --> 00:25:36,520 Speaker 1: I'll go, look, that's a really good example, though, Like, 569 00:25:36,720 --> 00:25:40,120 Speaker 1: I'm not here saying that everybody needs five hundred dollars. 570 00:25:40,280 --> 00:25:42,720 Speaker 1: What I'm saying is that, hey, look at the power 571 00:25:42,760 --> 00:25:45,359 Speaker 1: of compounding. Look at the power of time. Right, But 572 00:25:45,560 --> 00:25:48,480 Speaker 1: what you could do, and whether you have five hundred 573 00:25:48,520 --> 00:25:52,040 Speaker 1: dollars a month or five dollars a month, compounding over 574 00:25:52,080 --> 00:25:55,600 Speaker 1: that period of time is going to happen. And every 575 00:25:55,600 --> 00:25:58,560 Speaker 1: small step is a step in the right direction. Because today, 576 00:25:58,560 --> 00:26:00,919 Speaker 1: back you might have five bus that you can invest 577 00:26:00,960 --> 00:26:04,359 Speaker 1: every month. How good is it that you have created 578 00:26:04,359 --> 00:26:07,919 Speaker 1: this habit to invest every single month. You've started this 579 00:26:08,040 --> 00:26:10,679 Speaker 1: habit that can grow from there, and maybe in the 580 00:26:10,720 --> 00:26:13,000 Speaker 1: future you'll have ten dollars a month, and maybe in 581 00:26:13,040 --> 00:26:15,520 Speaker 1: the future you'll have fifty dollars a month, right, And 582 00:26:15,560 --> 00:26:18,680 Speaker 1: I promise little things and little steps in the right 583 00:26:18,720 --> 00:26:23,280 Speaker 1: direction are still steps that are absolutely worth taking, because 584 00:26:23,640 --> 00:26:25,800 Speaker 1: if you're waiting for that five hundred dollars to pop 585 00:26:25,880 --> 00:26:28,120 Speaker 1: up in your account that you can spare, I promise 586 00:26:28,200 --> 00:26:30,479 Speaker 1: it's not just going to come from nowhere, Like your 587 00:26:30,520 --> 00:26:32,480 Speaker 1: boss doesn't just walk into your office one day and 588 00:26:32,520 --> 00:26:34,720 Speaker 1: go Beck. So I've been thinking, I'm going to give 589 00:26:34,720 --> 00:26:36,760 Speaker 1: you a raise that is another five hundred dollars in 590 00:26:36,800 --> 00:26:39,840 Speaker 1: your pocket each and every fortnight, like it's just it. Yeah, 591 00:26:39,840 --> 00:26:42,280 Speaker 1: I wouldn't hate it, but it's just not going to happen. 592 00:26:42,320 --> 00:26:44,280 Speaker 1: Like no one's going to come in with a magic 593 00:26:44,359 --> 00:26:46,760 Speaker 1: wand and go okay, cool now Beck, all of a 594 00:26:46,800 --> 00:26:49,560 Speaker 1: sudden you have that five hundred dollars free in your budget. 595 00:26:49,760 --> 00:26:52,680 Speaker 1: But what can happen is we get into a groove 596 00:26:52,760 --> 00:26:55,239 Speaker 1: of investing five bucks a month and then going wow, like, 597 00:26:55,320 --> 00:26:57,480 Speaker 1: you know, I did have a pay rise. Maybe I 598 00:26:57,520 --> 00:27:00,359 Speaker 1: could allocate some of my pay rise towards that, because 599 00:27:00,560 --> 00:27:04,439 Speaker 1: sometimes we can't change our lifestyles, especially if someone is 600 00:27:04,480 --> 00:27:07,600 Speaker 1: on a lower income, you can't actually go, oh, well, 601 00:27:07,600 --> 00:27:09,840 Speaker 1: I would love to invest that amount. We would all 602 00:27:09,920 --> 00:27:13,000 Speaker 1: love to invest that amount, but if let's say, for example, 603 00:27:13,240 --> 00:27:15,679 Speaker 1: you're a single mum of two young kids and you 604 00:27:15,760 --> 00:27:19,000 Speaker 1: have an income of sixty five thousand dollars, The idea 605 00:27:19,080 --> 00:27:21,640 Speaker 1: that if you have two young kids you could invest 606 00:27:22,480 --> 00:27:25,919 Speaker 1: is absolutely wild to me on that income. Like, unfortunately, 607 00:27:26,240 --> 00:27:30,080 Speaker 1: in that circumstance, paying for daycare, paying for formula, paying 608 00:27:30,080 --> 00:27:32,480 Speaker 1: for all of the things that are baby related is 609 00:27:32,520 --> 00:27:34,720 Speaker 1: going to be the priority. And I think that that's 610 00:27:34,760 --> 00:27:37,080 Speaker 1: where we need to embrace this idea of seasons of 611 00:27:37,200 --> 00:27:40,400 Speaker 1: life where yes, you know what, that doesn't mean it's 612 00:27:40,520 --> 00:27:43,000 Speaker 1: useless for you to learn about investing. What you should 613 00:27:43,000 --> 00:27:45,720 Speaker 1: do is learn about it and acknowledge that right now, 614 00:27:45,760 --> 00:27:48,480 Speaker 1: this season of your life that you're going through is 615 00:27:48,520 --> 00:27:50,840 Speaker 1: actually just a season where it's not possible, but you 616 00:27:50,880 --> 00:27:52,960 Speaker 1: know what you're going to get out of that season, 617 00:27:53,200 --> 00:27:55,119 Speaker 1: and then you're going to have the skills and the 618 00:27:55,160 --> 00:27:57,719 Speaker 1: knowledge and the information that you need to take that 619 00:27:57,760 --> 00:28:00,000 Speaker 1: next step to put yourself in the best possible position 620 00:28:00,440 --> 00:28:02,240 Speaker 1: because you've already learned about it. It's kind of like 621 00:28:02,320 --> 00:28:04,160 Speaker 1: doing a uni degree and then getting the full time 622 00:28:04,240 --> 00:28:07,240 Speaker 1: job later, like you equipped, my friend. So I think 623 00:28:07,280 --> 00:28:11,000 Speaker 1: it's super important that we don't just assume oh Beck 624 00:28:11,040 --> 00:28:13,600 Speaker 1: wait until you actually have enough money to invest, sure, 625 00:28:13,680 --> 00:28:16,360 Speaker 1: because it's twenty twenty three. Like, and I'm not plugging 626 00:28:16,440 --> 00:28:19,640 Speaker 1: Chazy's here because like, you know, I love Shares's, I do, 627 00:28:20,080 --> 00:28:23,280 Speaker 1: but I'm plugging them because even that platform, like they 628 00:28:23,440 --> 00:28:27,200 Speaker 1: openly say you can invest with as literal as one dollar, Like, 629 00:28:27,440 --> 00:28:30,680 Speaker 1: how much more accessible can we get? No longer are 630 00:28:30,720 --> 00:28:34,239 Speaker 1: we looking? You know, ten years ago, minimum investments on 631 00:28:34,280 --> 00:28:38,000 Speaker 1: platforms were five hundred dollars, and that was unobtainable. And 632 00:28:38,040 --> 00:28:40,640 Speaker 1: so I think that there's this ongoing mentality in the 633 00:28:40,640 --> 00:28:44,560 Speaker 1: investment world, or in especially women's minds, that I can't 634 00:28:44,560 --> 00:28:47,080 Speaker 1: invest because like it's really expensive to get started, because 635 00:28:47,080 --> 00:28:49,520 Speaker 1: we've been fed this idea that it is expensive to 636 00:28:49,520 --> 00:28:51,680 Speaker 1: get started because that's what it used to be, but 637 00:28:51,720 --> 00:28:55,040 Speaker 1: it's not anymore and it's changed. And even if you 638 00:28:55,080 --> 00:28:57,840 Speaker 1: can only afford a dollar a month, how great is 639 00:28:57,840 --> 00:29:01,600 Speaker 1: it that you are teaching yourself to invest in putting 640 00:29:01,720 --> 00:29:04,400 Speaker 1: future you in the best possible position. Yeah, because even 641 00:29:04,400 --> 00:29:06,680 Speaker 1: if it ends up being fifty dollars in an investment account, 642 00:29:06,880 --> 00:29:08,880 Speaker 1: fifty bucks you didn't have before, isn't it Beck. 643 00:29:08,840 --> 00:29:11,520 Speaker 3: That's so true. That's a really good takeaway. I think, 644 00:29:11,840 --> 00:29:13,360 Speaker 3: just start with what. 645 00:29:13,240 --> 00:29:16,520 Speaker 1: You have exactly and stretch. It's a lot of money 646 00:29:16,560 --> 00:29:19,160 Speaker 1: to one person might not be a lot to somebody else. 647 00:29:19,240 --> 00:29:22,640 Speaker 1: But I don't think that should jade your opinion of 648 00:29:22,680 --> 00:29:26,440 Speaker 1: yourself or your own financial circumstances. And just because you know, 649 00:29:26,480 --> 00:29:29,000 Speaker 1: Beck says thirty bucks is a lot of money, don't 650 00:29:29,000 --> 00:29:30,960 Speaker 1: feel bad if you thought five bucks was a lot 651 00:29:31,000 --> 00:29:34,600 Speaker 1: of money. Like that's not something that is helpful or 652 00:29:34,640 --> 00:29:37,240 Speaker 1: constructive to you. And that's a layer of judgment that 653 00:29:37,320 --> 00:29:40,560 Speaker 1: you don't deserve. And the one person that shouldn't be 654 00:29:40,640 --> 00:29:43,920 Speaker 1: judging ourselves is ourselves. So I think very probably a 655 00:29:43,920 --> 00:29:45,200 Speaker 1: full place to leave it. What do you reckon? 656 00:29:45,240 --> 00:29:45,440 Speaker 2: Beck? 657 00:29:45,640 --> 00:29:47,920 Speaker 3: I absolutely love that. I think it's a really good takeaway. 658 00:29:47,960 --> 00:29:50,840 Speaker 3: I'm going to go away now and invest fifty cents 659 00:29:50,920 --> 00:29:51,600 Speaker 3: to the dollar. 660 00:29:51,840 --> 00:29:54,040 Speaker 1: I love it. I love it all right. I don't 661 00:29:54,040 --> 00:29:55,560 Speaker 1: know if that makes sense, but let's do you know what, 662 00:29:55,600 --> 00:29:56,720 Speaker 1: We're going to take it and we're just going to 663 00:29:56,800 --> 00:29:59,360 Speaker 1: run with it. Go get a coffee, all right, guys, 664 00:29:59,360 --> 00:30:01,240 Speaker 1: We would love it if you joined our Facebook group, 665 00:30:01,280 --> 00:30:04,680 Speaker 1: where our community shares money tips and tricks every single day, 666 00:30:04,800 --> 00:30:08,000 Speaker 1: free of judgment. Search She's on the money on Facebook 667 00:30:08,040 --> 00:30:10,360 Speaker 1: and join us if Facebook's not your thing. We're on 668 00:30:10,400 --> 00:30:12,960 Speaker 1: Instagram and She's on the Money aus and we're also 669 00:30:13,040 --> 00:30:16,600 Speaker 1: on TikTok producing content every single day at She's on 670 00:30:16,680 --> 00:30:19,480 Speaker 1: the Money And as always, don't forget to rate, review, 671 00:30:19,560 --> 00:30:22,360 Speaker 1: unsubscribe to let Beck know that she's doing an epic 672 00:30:22,440 --> 00:30:24,440 Speaker 1: new job as an epic new co host. Please let 673 00:30:24,440 --> 00:30:24,600 Speaker 1: me know. 674 00:30:24,680 --> 00:30:26,280 Speaker 3: I need all the sport I can get right now. 675 00:30:26,280 --> 00:30:27,920 Speaker 1: Please put me and tell me I'm pretty all right. 676 00:30:28,040 --> 00:30:36,480 Speaker 1: See you on Friday, Guys, Bie guys. The advice shared 677 00:30:36,520 --> 00:30:38,920 Speaker 1: on She's on the Money is general in nature and 678 00:30:38,960 --> 00:30:42,600 Speaker 1: does not consider your individual circumstances. She's on the Money 679 00:30:42,720 --> 00:30:46,280 Speaker 1: exists purely for educational purposes and should not be relied 680 00:30:46,320 --> 00:30:49,440 Speaker 1: upon to make an investment or financial decision. If you 681 00:30:49,560 --> 00:30:52,280 Speaker 1: do choose to buy a financial product, read the PDS 682 00:30:52,320 --> 00:30:56,320 Speaker 1: TMD and obtain appropriate financial advice tailored towards your needs. 683 00:30:56,680 --> 00:31:00,040 Speaker 1: Victoria Devine and She's on the Money are authorized p 684 00:31:00,080 --> 00:31:02,720 Speaker 1: Sentitives of Money sherper p T y l t D 685 00:31:02,960 --> 00:31:05,760 Speaker 1: A B N three two one six four nine two 686 00:31:05,800 --> 00:31:08,760 Speaker 1: seven seven zero eight a f s L four five 687 00:31:08,840 --> 00:31:11,120 Speaker 1: one two eight nine