Speaker 1: Hello.
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we
Speaker 2: get started on She's on the Money podcast, I would
Speaker 2: like to acknowledge the traditional custodians of the land of
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
Speaker 2: the elders, the ancestors and the next generation coming through
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
Speaker 2: the storytelling of you to make a difference for today
Speaker 2: and lasting impact for tomorrow.
Speaker 1: Let's get into it. She's on the Money, She's on
Speaker 1: the Money.
Speaker 3: Hello, and welcome to She's on the Money, the podcast
Speaker 3: for millennials who want financial freedom. My name is Beckside
Speaker 3: and with me is Victoria Devine.
Speaker 1: Welcome to another episode. Beck. I am very, very excited
Speaker 1: about this episode. So I'm gonna kick it off with
Speaker 1: a question, and it's gonna be for you, Beck. What's
Speaker 1: a lot of money to you?
Speaker 2: Oh?
Speaker 3: That is a loaded one.
Speaker 1: It's not that loaded. It's not that loaded, Like there's
Speaker 1: no ulterior motives going on. But I want to know
Speaker 1: how much money is a lot of money?
Speaker 3: To you, it depends what time of the pay cycle
Speaker 3: you ask me. I think, for context, we get paid monthly.
Speaker 3: The first week of pay I reckon five hundreds a lot. Yeah,
Speaker 3: maybe the second last and the last week of pay
Speaker 3: of the pay cycle. Yeah, maybe, like thirty dollars is
Speaker 3: a lot of money.
Speaker 1: Yeah, fair. I find it so interesting that that's how
Speaker 1: you kind of framed it. You were like, oh my gosh,
Speaker 1: well it depends on the pay cycle, because it's interesting
Speaker 1: how you respond because everybody responds so differently to that.
Speaker 1: Like we're going to talk about it because we did
Speaker 1: ask the community or I I did go to the
Speaker 1: community and say, all right, I want to know what
Speaker 1: does that look like? But we're talking about this today
Speaker 1: because I think we just need to contextualize that everybody's
Speaker 1: experience is super different and that you know, to you,
Speaker 1: five hundred or thirty dollars could be a lot, and
Speaker 1: someone else might be like, oh, three hundred thousand dollars
Speaker 1: is a lot of money. And it's really interesting to
Speaker 1: just see things from other people's perspectives because when we
Speaker 1: can lean into being able to view other people's perspectives,
Speaker 1: we learn so much more. And this episode I feel
Speaker 1: like is really about also acknowledging privilege and the different
Speaker 1: experiences as wealth. Because even though you said, oh my gosh,
Speaker 1: thirty bucks like could be a lot of money, I
Speaker 1: feel like some people would look at that and be like, oh,
Speaker 1: that's not much money at all. And I think you
Speaker 1: need to step outside of that and go no, no, no.
Speaker 1: I'm not asking you whether you think that Bech's experience
Speaker 1: is valid or not. I'm asking you to acknowledge that. Wow,
Speaker 1: Like if Beck says thirty dollars and yours is five hundred, like,
Speaker 1: maybe just go wow, I am pretty lucky that that's
Speaker 1: my personal experience. This is the way that we want
Speaker 1: to talk about it. It's a judgment free zone as always,
Speaker 1: but I really want to be able to highlight people's
Speaker 1: different experiences and what that means and how that works.
Speaker 1: And today, Beck, we're going to talk about lifestyle creep
Speaker 1: and demystifying some of the unconscious or unhelpful ideas about
Speaker 1: how much you actually need to start investing and how
Speaker 1: much you need to start when it comes to savings,
Speaker 1: and about how much money you actually need to be
Speaker 1: good at money, because I think people have this really
Speaker 1: weird idea in their head that to be good at
Speaker 1: money you have to have heaps and heaps and heaps
Speaker 1: of it and buccaloes cash. So I did think that
Speaker 1: was the case actually to be fair, and it's not true, Beck,
Speaker 1: it's not true. Sure, no, no, let's get into it.
Speaker 2: Tho.
Speaker 3: Al right, So I would say it is interesting. So
Speaker 3: thirty dollars is a lot of money to me. It
Speaker 3: kind of gets me thinking about like what you would
Speaker 3: think a lot of money is, even like in your childhood.
Speaker 3: So for example, for me, it was, you know, if
Speaker 3: I go to a friend's house and they had a
Speaker 3: silver frid.
Speaker 1: Oh my gosh, yes, silver fridge is nicol of wealth.
Speaker 1: You know what takes it another level up? The water dispenser.
Speaker 3: That's exactly right, not that, but yeah, that's lip like
Speaker 3: you must be rich for it.
Speaker 1: You are, Yeah, you're on another level.
Speaker 3: If you have a water dispenser, you must be doing
Speaker 3: well doing wealth. Must be nice. Other things that I
Speaker 3: thought made people rich growing.
Speaker 1: Up, Oh yeah, what is it?
Speaker 3: So I would say things like matching plates.
Speaker 1: Oh yeah, yeah, set a dinner set, yes, place mats
Speaker 1: or place mats is big dog energy, big dog energy,
Speaker 1: Like we're not just eating on the couch or eating
Speaker 1: at the table. We're setting up for.
Speaker 3: Dinner, setting up for dinner. We've got You don't have
Speaker 3: maney in your house. You have dinner, yes exactly, that's
Speaker 3: when you know. And also reusable napkins. That's big dog andages,
Speaker 3: big dog energy. You don't just rip a bit of
Speaker 3: paper towel off.
Speaker 1: No, exactly, Okay.
Speaker 3: I would use literal toilet paper sometimes to wipe my face.
Speaker 1: Because I don't makes sense. It's seasy.
Speaker 3: It's the same material as a aptail, but a little
Speaker 3: bit cheaper.
Speaker 1: Yeah, exactly.
Speaker 3: You'll not find a reusable napkin in my household. I
Speaker 3: don't know if you had this, but I didn't have
Speaker 3: any pocket money or anything like that. I mean my
Speaker 3: mum would, you know, give me money for the movies,
Speaker 3: and she would find a way to make it work.
Speaker 3: But no pocket money did you have? Was that just
Speaker 3: a like being really pervy? Was that a situation where
Speaker 3: it was like we couldn't afford it, or was that
Speaker 3: a situation where it was like, oh, my parents didn't
Speaker 3: believe in it? Because I think those are two different experiences.
Speaker 3: I think conveniently both Yeah, yeah, yeah, I fit is
Speaker 3: like it's like chicken all the egg. I think we
Speaker 3: probably couldn't really afford it because it was that's fair
Speaker 3: for children, so but also, you know, in the same time,
Speaker 3: it was maybe one of the things that we didn't
Speaker 3: just we just didn't do.
Speaker 1: Yeah, that's fair. We did have pocket money growing up,
Speaker 1: but I remember thinking it wasn't much, and like not
Speaker 1: at the time. Like now I look back and go, like,
Speaker 1: it really wasn't heaps. But that's not a negative thing
Speaker 1: because we had all our basic needs met and like
Speaker 1: what does a six year old or seven year old
Speaker 1: actually need to purchase? Like, probably not that much. And
Speaker 1: my dad was an accountant. So the reason we had
Speaker 1: pocket money, I do believe, was to teach us about money.
Speaker 1: So the amount of pocket money we got was fifty
Speaker 1: cents for every year that we were alive. So if
Speaker 1: I was six, I got three dollars. If I was twelve,
Speaker 1: I got six dollars, and that would hoever. I feel
Speaker 1: like that was clever, but like it was also like
Speaker 1: a graduation. On our birthday, I'd be like, I get
Speaker 1: another fifty cents, Like this is big dog energy. That's
Speaker 1: big d energy, And I think it's I think it's
Speaker 1: interesting looking back because I remember knowing that I got
Speaker 1: my six dollars or I got my you know whatever
Speaker 1: it was at that period of time. But then I
Speaker 1: saw friends who'd get like a clean twenty dollar bill
Speaker 1: and I'd be like, wow, that's wow good, Like that
Speaker 1: was insane to me. So it's interesting different experiences. But
Speaker 1: then also where you grow up really does give a
Speaker 1: bit of a deep dive into the types of like
Speaker 1: pocket money experiences, because our pocket money was actually for
Speaker 1: things we wanted to buy and we had to save
Speaker 1: up for them. And it was as though, you know,
Speaker 1: if we said, oh, mum, I really want XYZ, like
Speaker 1: we didn't just get it, we had to save up
Speaker 1: for it. Or I remember Dad always saying things like, well,
Speaker 1: if you save up for it, I will match you,
Speaker 1: Like if you can save for X, Y or Z,
Speaker 1: Like if I wanted a toy or something, he would say, look,
Speaker 1: you can have it, we can save for it, we
Speaker 1: can work it out, but I will match you. And
Speaker 1: that always like motivated me to save even more.
Speaker 3: It's just making a lot of sense. It's really I
Speaker 3: can't understand how you are the way you are.
Speaker 1: I didn't always listen to him. We argued about times tables.
Speaker 1: I would cry at the table. Still not very good
Speaker 1: at my times tables because of it. And also I
Speaker 1: did get myself in some pretty serious, significant personal debt
Speaker 1: when I was younger because I didn't listen to him.
Speaker 1: But you know, you live in your own So beck
Speaker 1: you mentioned something before about growing up in a family
Speaker 1: of four and the pocket money maybe was a bit
Speaker 1: of a stretch for the family. How did that make
Speaker 1: you feel when you saw other kids at school getting
Speaker 1: pocket money or similar things like that.
Speaker 3: To be honest, when I was in prime school, I
Speaker 3: didn't notice it very well. I guess we all just
Speaker 3: kind of, you know, I somehow still managed to have
Speaker 3: like twenty cents to buy a red Frog or a
Speaker 3: touch sharp and everything.
Speaker 1: I feel like kids, they're super resourceful. There will there
Speaker 1: is a way.
Speaker 3: Absolutely, I kind of noticed it a little bit more
Speaker 3: in high school, maybe tried to keep up a little
Speaker 3: bit with sinos, the new trends, fashion trends, et cetera.
Speaker 3: And there's lunch orders.
Speaker 1: You know, oh yeah, yeah, yeah, going to the canteen,
Speaker 1: going to the canteen, get in.
Speaker 3: The lazagna move Oh my gosh.
Speaker 1: Yes, the high school Designia was lit. I forgot about that. Actually,
Speaker 1: that was so good. And we had these things called
Speaker 1: dinosaur rolls, never ever in my that's because I think
Speaker 1: my school made them up. So is the sausage roll
Speaker 1: in a white bread roll, with cheese and sauce in
Speaker 1: the white bread roll, and then they wrap it in
Speaker 1: foil and they put it in the oven and like
Speaker 1: the whole thing like melts together and it's like a
Speaker 1: hot bread roll with a sausage roll with sauce and cheese.
Speaker 1: That sounds unyeah, right anyway, but those were like seven dollars,
Speaker 1: Like that's expensive. That's expensive. I feel like it was
Speaker 1: like looking back on it as well, maybe it wasn't
Speaker 1: seven dollars, but it felt expensive. So maybe it was
Speaker 1: like four dollars, but it felt like big dogging.
Speaker 3: Yeah, expensive energy. So it seems like our perceptions of
Speaker 3: the value of money are all relative and also highly subjective.
Speaker 1: Absolutely they are.
Speaker 3: So you asked our community what they thought a lot
Speaker 3: of money was. What did they say?
Speaker 1: I did? I jumped on Instagram and I just did
Speaker 1: like this piece to camera and I was say, all right, guys,
Speaker 1: I need to know. I want to know to you
Speaker 1: how much is a lot of money. I don't want
Speaker 1: to give you any context, like we're not going to
Speaker 1: talk about it, and I'll read out some of the
Speaker 1: answers because they actually were really diverse, and it gave
Speaker 1: me such an insight just into people's mentalities. And that's
Speaker 1: why I said before I really loved that. You were like, oh, well,
Speaker 1: it depends on the pace cycle. Because so many people
Speaker 1: gave context. So someone said a lot of money looked
Speaker 1: like not worrying about the color of the plate at
Speaker 1: sushi train o.
Speaker 3: Amen. Yeah.
Speaker 1: Someone said over two hundred dollars. Someone else said to
Speaker 1: be able to buy something without checking my bank account relatable.
Speaker 1: Someone said one hundred thousand dollars. Another person said a
Speaker 1: million dollars. Wow. Someone then said millions in order to
Speaker 1: live comfortably for the rest of my life and set
Speaker 1: my kids up. I feel like that's a bit more
Speaker 1: big picture. Then someone said, my friends thought paying one
Speaker 1: hundred and fifty dollars for a small lamp was a lot,
Speaker 1: and I actually thought that was pretty cheap. No, they yeah,
Speaker 1: but like that's her experiences, Like maybe she'd been looking
Speaker 1: at five hundred dollar lamps and then she was like, oh,
Speaker 1: this one. This one's a good deal, really knows. Someone
Speaker 1: said ten thousand dollars New Zealand money and that if
Speaker 1: I lost more than that, I'd be upset less than
Speaker 1: that and I'd just be annoyed. And I was like,
Speaker 1: what in the wealth?
Speaker 3: Like, what in the wealth?
Speaker 1: Yeah, exactly. Someone said, I think a lot of money
Speaker 1: is a salary of one hundred and twenty thousand dollars,
Speaker 1: but maybe, like a once off, a lot of money
Speaker 1: is one thousand dollars, and I was like, yeah, okay,
Speaker 1: interesting context. Someone else said, in terms of cost, I
Speaker 1: guess five hundred dollars, but in terms of wealth a
Speaker 1: million plus. Someone then said, oh, anything over five hundred
Speaker 1: thousand dollars, which to them is a decent house deposit,
Speaker 1: feels comfortable. And I was like, again, what in the wealth.
Speaker 1: And then someone said anything over one hundred dollars is
Speaker 1: a lot for me to lose from my bank account,
Speaker 1: and I was like, okay, So, Beck, with all of
Speaker 1: that in mind, after I've read them all out and
Speaker 1: given you said before five hundred dollars at the start
Speaker 1: of the pay cycle and thirty dollars at the end,
Speaker 1: how does that make you feel?
Speaker 2: Like?
Speaker 1: What are you thinking right now.
Speaker 3: I didn't notice that thirty dollars wasn't on the list.
Speaker 1: That's okay.
Speaker 3: So again, it's personal.
Speaker 1: It's highly personal. Personal finance is just that it is personal.
Speaker 1: It is and we need to respect that.
Speaker 3: Yes, and well, it actually was very comforting because I
Speaker 3: did relate to being able to buy something without checking
Speaker 3: my bank account. I don't even know the last time
Speaker 3: I bought something about having to check my bank account first.
Speaker 3: So it did make me feel comforted in some ways.
Speaker 3: In other ways, you know, for example, let's say I
Speaker 3: would be finally ten.
Speaker 1: K that was unrelatable. I would be so anxious that
Speaker 1: ruin me, but not relatable to you or I maybe
Speaker 1: other listeners that are listening to the pod are like,
Speaker 1: oh yeah, I feel exactly the same. And you know what,
Speaker 1: that's actually okay. So you didn't have any level of
Speaker 1: judgment over other people's circumstances. Absolutely absolutely In saying that,
Speaker 1: let's jump to a really quick break and then we
Speaker 1: get back, we can talk even more about this, and
Speaker 1: I really want to deep dive into lifestyle creep. Well,
Speaker 1: let's do it.
Speaker 3: I was excited. OKAYV we are back and we are
Speaker 3: talking about how much money is a lot of money.
Speaker 1: And it turns out there's not actually an answer to that.
Speaker 1: It's really dependent. So that was kind of like what
Speaker 1: do they call that? Clickbait click creak article titles but
Speaker 1: podcast titles, So we don't actually have an answer to
Speaker 1: the quarry everyone, sorry not So I want to know it, Beck,
Speaker 1: what did you do with your first full paycheck? You
Speaker 1: mentioned pay before, and it's just making me think, So
Speaker 1: I really want to know what did you do it?
Speaker 1: Do you remember?
Speaker 3: Yeah? I can't think. Yeah, so I would say, and
Speaker 3: this is probably a little embarrassing. The first thing I
Speaker 3: did when I got my first full, full time paycheck
Speaker 3: was fill up my petrol tank all the way.
Speaker 1: All the way, all the way. I feel so boogie.
Speaker 3: Oh my god.
Speaker 1: I've got this conversation in the community before, and there
Speaker 1: are so many people in our community that are like, nap,
Speaker 1: I've never done it. Like every time I go to
Speaker 1: the petrol station, I will only put like twenty dollars
Speaker 1: in or thirty dollars in or whatever it is, yeah,
Speaker 1: or can relate yeah, like, and I totally get that,
Speaker 1: but I also think it's a good way of budgeting.
Speaker 1: Like a lot of people will be like, oh, well, actually,
Speaker 1: my petrol budget each and every single week is thirty dollars.
Speaker 1: So I just even though it's more frequent, I still
Speaker 1: just go to the petrol station every week and put
Speaker 1: that thirty dollars in because it just makes me feel
Speaker 1: comfortable and confident and I know I've got petrol. But
Speaker 1: it like doesn't ever blow the budget. But it is
Speaker 1: really boogie, especially right now, to be filling your tank
Speaker 1: all the way. Yeah, that's a bit of a splurge.
Speaker 1: So would you say that with your first paycheck you
Speaker 1: did a little bit of a splurge activity.
Speaker 3: I think I did. But also I'm trying to remember
Speaker 3: when I got my first full time paycheck. I was
Speaker 3: probably eighteen, so it was like five cents an hour
Speaker 3: or something something related. Back in the day. I remember
Speaker 3: filling my petro tank up all the way. I also
Speaker 3: remember buying just like little items that I couldn't really
Speaker 3: afford before, Like I did a whole grocery shop instead
Speaker 3: of just bread and some comp and hear the essentials,
Speaker 3: I thought, oh I feel it of salmon, that's all?
Speaker 1: Oh good? Did it go off in your fridge or
Speaker 1: did you eat it? I feel like I ate it.
Speaker 3: I feel like I was very because it was it was,
Speaker 3: you know, one hundred thousand years ago, but yeah, it
Speaker 3: was very It still is very, very expensive. I think
Speaker 3: that's one thing that's never decreased or increased over time,
Speaker 3: so it's a consistent food.
Speaker 1: Also good food. Great choices there, Petrol and salmon.
Speaker 3: The two things I bought.
Speaker 1: You mentioned before that you went and bought a whole
Speaker 1: heap of little things that you maybe couldn't have afforded before.
Speaker 1: And I guess so that's on the flip side of it.
Speaker 1: And we mentioned it at the start of this episode
Speaker 1: that it really plays into lifestyle creep, and lifestyle creep
Speaker 1: is this concept that over time your lifestyle just becomes
Speaker 1: more expensive. So if you're in UNI, you probably have
Speaker 1: a cheaper lifestyle. And we say it all the time, right, Like,
Speaker 1: I don't know, We've had conversations like this offline where
Speaker 1: I'll be like, oh my gosh, remember at UNI, we
Speaker 1: used to be able to, like, you know, make fifty
Speaker 1: bucks last like literally an entire week, and I still
Speaker 1: went out most days, Like somehow I still manage to
Speaker 1: go out with my friends, go out for lunch, do
Speaker 1: this do that, like, and now brunch for my girlfriend
Speaker 1: and I will be fifty bucks, and like, oh that's
Speaker 1: me done for the week. Like I don't have another
Speaker 1: fifty bucks. So I think it's interesting to see that
Speaker 1: you said something like, oh, yeah, with my first paycheck,
Speaker 1: I bought things I couldn't afford before. What do you
Speaker 1: think about lifestyle creep? Do you think your lifestyle today
Speaker 1: is more expensive than it was, say, ten years ago.
Speaker 3: I think so. And I think that's the funny thing.
Speaker 3: A good friend of mine once said, this is a
Speaker 3: direct quote from her Mo money Mo problems, So you
Speaker 3: kind of it's.
Speaker 1: Your friend a wrapper. Are you trying to tell me
Speaker 1: you've got famous friends? I have famous friends. Yeah?
Speaker 3: Cool. But I really do think it's that thing that
Speaker 3: the more money you make, the more money you spend.
Speaker 3: So I think that my lifestyle now, the amount of
Speaker 3: money I spend now is way more than what I
Speaker 3: used to spend when I wasn't making as much. Not
Speaker 3: that I'm making twenty billion dollars today, but I kind
Speaker 3: of always just spend a little bit more if I
Speaker 3: have a little bit more, you know.
Speaker 1: And this kind of plays into this concept that I
Speaker 1: think a lot of people just I don't know they
Speaker 1: really lean into because they go, oh, I don't have
Speaker 1: a big salary, therefore it's not worth it. It's not worth saving,
Speaker 1: it's not worth investing. Like what's the point? Like I
Speaker 1: don't even earn that much. But history tells me that
Speaker 1: it's not actually those people who earn the most money.
Speaker 1: And I talked about this in my first book. If
Speaker 1: you've read my book, you know exactly what I'm talking about.
Speaker 1: But I had two different couples, and I inherited both
Speaker 1: of them as clients, so they weren't my clients their
Speaker 1: entire lives, which makes sense because I'm in my thirties
Speaker 1: and both of them would now be in their late seventies,
Speaker 1: so it wasn't their financial advisor the whole time. But
Speaker 1: I had this one couple who he worked as a
Speaker 1: maintenance man and maybe earned seventy grand a year for
Speaker 1: his entire career, maybe it went up a little bit
Speaker 1: towards the end of his career, and they had three kids,
Speaker 1: and his wife never worked. She stayed at home and
Speaker 1: looked after the kids because that obviously made sense for them,
Speaker 1: And he retired with so much money because he had
Speaker 1: been saving and investing that whole time and was really
Speaker 1: good at budgeting and really good at making things work.
Speaker 1: And now they have this lifestyle where they have a
Speaker 1: passive income of about one hundred and thirty one hundred
Speaker 1: and forty thousand dollars from memory coming in each and
Speaker 1: every single year, which is more than they've ever had before.
Speaker 1: And because he was so good at saving and investing,
Speaker 1: like they don't have any big expenses, so they don't
Speaker 1: have a mortgage anymore, Like they're all good to go.
Speaker 1: But wow, in comparison, I had this client or these
Speaker 1: two clients who were really really well. They had a
Speaker 1: combined income of half a million dollars each year, like
Speaker 1: lots of kids, still three kids, all kids are going
Speaker 1: to private schools. They have you know, a car loan each.
Speaker 1: They had a loan for a boat. They had multiple
Speaker 1: properties that were not paid off because they were just
Speaker 1: paying the interest on the properties because like, with an
Speaker 1: income that big, you can get the loan, and like
Speaker 1: that made sense, but looking at their financial planning, I
Speaker 1: sat down with them because they were in their fifties
Speaker 1: when they came to me, and they said, really want
Speaker 1: to retire, Like what's what's the plan, like, you know,
Speaker 1: we obviously have a lot of money, and they were
Speaker 1: going on ski trips every year to Aspen, like that's
Speaker 1: big dog energy, that is big. But they couldn't afford
Speaker 1: to retire, and they couldn't afford to retire because they
Speaker 1: didn't have any savings or any investments at all to
Speaker 1: put themselves in a position where they could stop working.
Speaker 1: So their lifestyle was maintainable if they continued to do
Speaker 1: their really high income jobs every single year. But for
Speaker 1: them to retire, we did a financial plan that meant
Speaker 1: they had to get rid of the cars, they had
Speaker 1: to get rid of the boats, they had to get
Speaker 1: rid of one of the houses. And with that financial plan,
Speaker 1: beck it put them in the same position as my
Speaker 1: other couple, So their outcome meant that their income during
Speaker 1: retirement would be exactly the same as my other couple
Speaker 1: who didn't have that massive income, who you know, had
Speaker 1: just plotted along the whole time, and you know, they
Speaker 1: actually financially were going to be in the same position. However,
Speaker 1: because my first client had been doing it their entire life,
Speaker 1: they didn't need that much to be contributed every month.
Speaker 1: But because my other clients, who were really wealthy were
Speaker 1: only doing it in their late fifties. They're in a
Speaker 1: bit of a picky position because that means they've got
Speaker 1: to save and invest heaps, like more than half of
Speaker 1: their income had to go towards wealth creation and saving
Speaker 1: and investing to actually put them in the same position.
Speaker 1: So I will at some point post that example on
Speaker 1: Instagram because I think it's a really interesting case study
Speaker 1: to go. Well, Beck, it's actually not about how much
Speaker 1: you earn, but more what you do with it over
Speaker 1: the long term. And this idea of you know, we're
Speaker 1: talking about lifestyle creep. Obviously they had significant lifestyle creep,
Speaker 1: but it's this idea that you know, a lot of
Speaker 1: people think to be good at money, you have to
Speaker 1: have lots of it, and that's just not the case.
Speaker 1: It's not the case at all, Like anyone can create
Speaker 1: financial freedom if they put their minds to it.
Speaker 3: Well, it's actually very interesting, very hard, very very hot.
Speaker 3: The earlier today, you were telling me about lotto winners,
Speaker 3: and that's actually a really good example here. So we
Speaker 3: always hear this idea that a lot of people who
Speaker 3: win the lottery go broke, right, Like, that's not a
Speaker 3: new concept. I think a lot of people have heard
Speaker 3: it before, but there is some research out of Boston
Speaker 3: University that actually found that, you know, putting that aside,
Speaker 3: the people that are most likely to go broke are
Speaker 3: actually the neighbors of lotto winners. What So, if you
Speaker 3: live next door to someone who won the lotto, you
Speaker 3: are more likely to go broke, right. So it was
Speaker 3: this article that was published in a working paper from
Speaker 3: the f Reserve Bank of Philadelphia in the US, and
Speaker 3: the researchers poured over Canadian data relating to lottery winners
Speaker 3: and then bankruptcy claims from two thousand and four to
Speaker 3: twenty fourteen. And this article it's centered around people who
Speaker 3: won less than one hundred and fifty thousand dollars because
Speaker 3: people who won more than that tended to move away
Speaker 3: to that more fancy fancy pants areas where they lived
Speaker 3: among you know, more rich people. So it's not as.
Speaker 1: Relatable of course, yep. But the bigger the lottery win
Speaker 1: in a neighborhood, the more cases of bankruptcy they're tended
Speaker 1: to be in the same area.
Speaker 3: Wow.
Speaker 1: And the total amount of cash board also rose across
Speaker 1: the whole neighborhood relative to the amount that was one.
Speaker 1: And this trend apparently occurred because neighbors of lottery winners
Speaker 1: tended to splurge on what we call obvious displays of wealth,
Speaker 1: like brand new cars or boats or things to put
Speaker 1: in their driveways because they saw their neighbors with them
Speaker 1: and they got jealous and got a little bit of
Speaker 1: fomo and wanted to do the whole keeping up with
Speaker 1: the Joneses thing. And they're like, oh, well, Beck did it,
Speaker 1: but maybe didn't know. Beck won a whole heap of money.
Speaker 1: So people are more likely to go broke because they
Speaker 1: want to keep up with the Joneses. Isn't that wild?
Speaker 3: That is so wild? It kind of in a way
Speaker 3: makes sense. And I don't know if you know this
Speaker 3: about me, v, but keeping up with the Joneses is
Speaker 3: kind of what made me go bankrupt.
Speaker 1: So I know that, but the community is not going
Speaker 1: to know that. You and I have spoken about it,
Speaker 1: and I think the thing I love about you is
Speaker 1: that you're so open and willing to talk about that journey.
Speaker 1: And I'm assuming it's because you don't want other people
Speaker 1: to end up in that position, nor do you want
Speaker 1: to end up in it again yourself. But from your perspective.
Speaker 1: Having been in that circumstance, do you still, I guess
Speaker 1: have the mindset of thinking that you need a whole
Speaker 1: heap of money to be able to create wealth, look.
Speaker 3: To a degree, because for me, it was kind of like,
Speaker 3: you know, I knew that I wanted to go to
Speaker 3: UNI and study and make a career for myself. So
Speaker 3: I'd see people around me and they would have the
Speaker 3: newest MacBook, the best devices, and you know, I kind
Speaker 3: of had like a really old laptop or just a
Speaker 3: note pad and pen, and I kind of thought there
Speaker 3: are certain parts of life where you need money in
Speaker 3: order to have a bit of a leg up. I'm
Speaker 3: not saying it's impossible to move forward with that money.
Speaker 1: But it obviously is a very very nice advantage.
Speaker 3: Right, A nice advantage.
Speaker 1: One hundred percent doesn't hurt one hundred percent. But given
Speaker 1: you've given us a little bit of context, I'm assuming
Speaker 1: you didn't grow up in a super wealthy family, so
Speaker 1: it's not as though you could go, oh, mom and dad,
Speaker 1: I need new laptop for you. Me, Like, is that
Speaker 1: a circumstance that would have ever happened for you?
Speaker 2: Yeah?
Speaker 3: Like I know that growing up I knew that my
Speaker 3: mum would always come through with the goods. She always
Speaker 3: found a way too. It sounds like her queen. She's
Speaker 3: a queen, probably a budget queen. She's actually now quite
Speaker 3: a budget queen. I've realized I need to take a
Speaker 3: page out of her book. Ironically, she always came up
Speaker 3: with the goods. But it kind of hit a point
Speaker 3: where I was about seventeen eighteen, and my circle of
Speaker 3: friends always had, you know, the newest shoes. They're always like,
Speaker 3: you know, completely decked out and cool stuff, and so,
Speaker 3: you know, I got to a point where I kind
Speaker 3: of needed to keep up, and I found myself in
Speaker 3: a bit of debt. Just we're just spending more than
Speaker 3: just sing more than I was earning. And I got
Speaker 3: myself a credit card at eighteen, and then before I
Speaker 3: knew it, I hit like twenty I needed a personal
Speaker 3: loan to pay off that credit card, and then I
Speaker 3: kind of just it just snowballed. I needed more and
Speaker 3: more loans to pay off more and more loans, and
Speaker 3: then by the time I hit twenty five, I was like,
Speaker 3: I am drowning.
Speaker 1: I am in a pickle. And a minut of people,
Speaker 1: how you ended up going bankrupt. We will do some
Speaker 1: more deep diving, I think into how that worked, because
Speaker 1: I think that bankruptcy has a lot of shame associated
Speaker 1: with it, which is absolutely not necessary, because I'm assuming,
Speaker 1: you know, grand assumption that when you got a credit card,
Speaker 1: you didn't know how bad that could be for you,
Speaker 1: of course, because you just didn't have the right mindset,
Speaker 1: you didn't have the right educational knowledge. And I'm sure
Speaker 1: that today, if you were handed a credit card, I
Speaker 1: feel like it would be thrown across the room and
Speaker 1: you probably wouldn't want it. But I also think that
Speaker 1: you would have a lot more knowledge today than you
Speaker 1: did then to use it respectfully.
Speaker 3: Right, Yes, absolutely, I mean I would hope, so, I
Speaker 3: would hope so get a couple of dollars in my hand,
Speaker 3: and I do become a bit white.
Speaker 1: We talk about this concept on the podcast that from
Speaker 1: little things grow and it's kind of about these small
Speaker 1: steps in the right direction. And you know, there's this
Speaker 1: quote that says, if you can't manage one thousand dollars,
Speaker 1: there's no way you can manage ten thousand dollars, and
Speaker 1: I think that that is so true, and I get
Speaker 1: so frustrated because people in our community. You'll be like, oh, well,
Speaker 1: that's nice. Like, I'll put an example up right, I'll go, oh, well,
Speaker 1: if you invest five hundred dollars each and every single month,
Speaker 1: by the time you reach retirement, you'll have an investment
Speaker 1: portfolio of one point two million dollars at a rate
Speaker 1: of return of seven and a half percent. People be like, well,
Speaker 1: I don't have five hundred dollars a month, Victoria, And
Speaker 1: I'll go, look, that's a really good example though, Like
Speaker 1: I'm not here saying that everybody needs five hundred dollars.
Speaker 1: What I'm saying is that, hey, look at the power
Speaker 1: of compounding. Look at the power of time. Right, But
Speaker 1: what you could do, and whether you have five hundred
Speaker 1: dollars a month or five dollars a month, compounding over
Speaker 1: that period of time is going to happen. And every
Speaker 1: small step is a step in the right direction. Because today,
Speaker 1: back you might have five bus that you can invest
Speaker 1: every month. How good is it that you have created
Speaker 1: this habit to invest every single month. You've started this
Speaker 1: habit that can grow from there, and maybe in the
Speaker 1: future you'll have ten dollars a month, and maybe in
Speaker 1: the future you'll have fifty dollars a month, right, And
Speaker 1: I promise little things and little steps in the right
Speaker 1: direction are still steps that are absolutely worth taking, because
Speaker 1: if you're waiting for that five hundred dollars to pop
Speaker 1: up in your account that you can spare, I promise
Speaker 1: it's not just going to come from nowhere, Like your
Speaker 1: boss doesn't just walk into your office one day and
Speaker 1: go Beck. So I've been thinking, I'm going to give
Speaker 1: you a raise that is another five hundred dollars in
Speaker 1: your pocket each and every fortnight, like it's just it. Yeah,
Speaker 1: I wouldn't hate it, but it's just not going to happen.
Speaker 1: Like no one's going to come in with a magic
Speaker 1: wand and go okay, cool now Beck, all of a
Speaker 1: sudden you have that five hundred dollars free in your budget.
Speaker 1: But what can happen is we get into a groove
Speaker 1: of investing five bucks a month and then going wow, like,
Speaker 1: you know, I did have a pay rise. Maybe I
Speaker 1: could allocate some of my pay rise towards that, because
Speaker 1: sometimes we can't change our lifestyles, especially if someone is
Speaker 1: on a lower income, you can't actually go oh, well,
Speaker 1: I would love to invest that amount. We would all
Speaker 1: love to invest that amount. But if let's say, for example,
Speaker 1: you're a single mum of two young kids and you
Speaker 1: have an income of sixty five thousand dollars, the idea
Speaker 1: that if you have two young kids you could invest
Speaker 1: is absolutely wild to me on that income. Like unfortunately,
Speaker 1: in that circumstance, paying for daycare, paying for formula, paying
Speaker 1: for all of the things that are baby related is
Speaker 1: going to be the priority. And I think that that's
Speaker 1: where we need to embrace this idea of seasons of
Speaker 1: life where yes, you know what, that doesn't mean it's
Speaker 1: useless for you to learn about investing. What you should
Speaker 1: do is learn about it and acknowledge that right now
Speaker 1: this season of your life that you're going through is
Speaker 1: actually just a season where it's not possible, but you
Speaker 1: know what you're going to get out of that season,
Speaker 1: and then you're going to have the skills and the
Speaker 1: knowledge and the information that you need to take that
Speaker 1: next step to put yourself in the best possible position
Speaker 1: because you've already learned about it. It's kind of like
Speaker 1: doing a uni degree and then getting the full time
Speaker 1: job later, like you equipped, my friend. So I think
Speaker 1: it's super important that we don't just assume, Oh, Beck,
Speaker 1: wait until you actually have enough money to invest? Sure,
Speaker 1: because it's twenty twenty three. Like, and I'm not plugging
Speaker 1: Chazy's here because like, you know, I love Shares's, I do,
Speaker 1: but I'm plugging them because even that platform, like they
Speaker 1: openly say you can invest with as literal as one dollar, Like,
Speaker 1: how much more accessible can we get? No longer are
Speaker 1: we looking? You know, ten years ago, minimum investments on
Speaker 1: platforms were five hundred dollars, and that was unobtainable. And
Speaker 1: so I think that there's this ongoing mentality in the
Speaker 1: investment world, or in especially women's minds, that I can't
Speaker 1: invest because like it's really expensive to get started, because
Speaker 1: we've been fed this idea that it is expensive to
Speaker 1: get started because that's what it used to be, but
Speaker 1: it's not anymore and it's changed. And even if you
Speaker 1: can only afford a dollar a month, how great is
Speaker 1: it that you are teaching yourself to invest in putting
Speaker 1: future you in the best possible position. Yeah, because even
Speaker 1: if it ends up being fifty dollars in an investment account,
Speaker 1: fifty bucks you didn't have before, isn't it, Beck?
Speaker 3: That's so true? That's a really good takeaway. I think
Speaker 3: just start with what you.
Speaker 1: Have exactly and stretch. Is a lot of money to
Speaker 1: one person might not be a lot to somebody else.
Speaker 1: But I don't think that should jade your opinion of
Speaker 1: yourself or your own financial circumstances. And just because you
Speaker 1: know Beck says thirty bucks is a lot of money,
Speaker 1: don't feel bad if you thought five bucks was a
Speaker 1: lot of money. Like that's not something that is helpful
Speaker 1: or constructive to you. And that's a layer of judgment
Speaker 1: that you don't deserve. And the one person that shouldn't
Speaker 1: be judging ourselves is ourselves. So I think very probably
Speaker 1: a full place to leave it. What do you reckon?
Speaker 2: Beck?
Speaker 3: I absolutely love that. I think it's a really good takeaway.
Speaker 3: I'm going to go away now and invest fifty cents
Speaker 3: to the dollar.
Speaker 1: I love it. I love it all right. I don't
Speaker 1: know if that makes sense, but let's do you know what,
Speaker 1: We're going to take it and we're just gonna run
Speaker 1: with it. Go get a coffee, all right, Guys, We
Speaker 1: would love it if you joined our Facebook group, where
Speaker 1: our community shares money tips and tricks every single day,
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Speaker 1: the Money, and as always, don't forget to rate, review,
Speaker 1: unsubscribe to let Beck know that she's doing an epic
Speaker 1: new job as an epic new co host. Please let
Speaker 1: me know.
Speaker 3: I need all the sport I can get right now.
Speaker 1: Please put me and tell me I'm pretty all right.
Speaker 1: See you on Friday, guys, Bye guys. The advice shared
Speaker 1: on She's on the Money is general in nature and
Speaker 1: does not consider your individual circumstances. She's on the Money
Speaker 1: exists purely for educational purposes and should not be relied
Speaker 1: upon to make an investment or financial decision. If you
Speaker 1: do choose to buy a financial product, read the PDS
Speaker 1: TMD and obtain appropriate financial advice tailored towards your needs.
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