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Speaker 1: My name is Tatasha Bamblet. I'm a proud First Nations

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Speaker 1: woman and I'm here to acknowledge country t glennyan Ganya, Niana,

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Speaker 1: Kaka yah Ya bin Ahaka Nian our gay in Nimbina,

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Speaker 1: yakarum jar Dominyama, Umagahawakaman, damon imlan Bimba ban Gadabomba in

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Speaker 1: and now in wakah ghana on yak rum jar Watnadaa. Hello,

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Speaker 1: beautiful friends, we gather on the lands of the Aboriginal people.

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Speaker 1: We thank acknowledge and respect the Aberiginal people's land that

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Speaker 1: we're gathering on today. Take pleasure in all the land

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Speaker 1: and respect all that you see. She's on the Money

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Speaker 1: podcast acknowledges culture, country, community and connections, bringing you the tools,

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Speaker 1: knowledge and resources for you to thrive.

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Speaker 2: She's on the Money. She's on the Money.

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Speaker 3: Hello and welcome to She's on the Money, the podcast

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Speaker 3: that's here to show you that investing isn't just for

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Speaker 3: the rich, it is for you too. When we add

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Speaker 3: She's on the Money team member Brooks Investing Diary. Something

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Speaker 3: she said basically broke the Internet or our DMS. At least,

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Speaker 3: she revealed that her investing strategy has her on track

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Speaker 3: to retire at the age of thirty five. Yes, thirty five.

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Speaker 3: She doesn't have that long until thirty five, you I have.

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Speaker 2: Heaps of time. What do you mean. I'm very I'm

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Speaker 2: twenty seven. That's recent, that's news. I know she was twenty,

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Speaker 2: So happy birthday. Happy birthday.

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Speaker 3: She didn't win the lottery though, which is kind of

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Speaker 3: low key crazy given you're still Actually we don't.

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Speaker 2: Know yet because I bought a ticket for last night,

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Speaker 2: so we don't know right well, we COULDBC if she does.

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Speaker 4: Will let you know. You didn't have a secret inheritance.

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Speaker 3: You didn't grow up rich Sadly, Brook has built her

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Speaker 3: portfolio step by step, following really clear rules and making

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Speaker 3: smart money moves consistently over a long period of time.

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Speaker 3: There's been no massive investment, there's been no big lump

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Speaker 3: sum of money. It's been dollar for dollar. I'm Victoria Devine.

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Speaker 3: I'm a retired financial advisor who is wildly passionate about

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Speaker 3: getting more women just like you to start building wealth

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Speaker 3: through investing. And after the response we got from her

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Speaker 3: last episode, I thought it was only the right thing

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Speaker 3: to get Brooke back in the studio and back on

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Speaker 3: the show Brook Welcome back.

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Speaker 2: Hello friends, Are you excited to do you back?

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Speaker 5: Yeah?

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Speaker 2: It does feel a bit random. Usually I edit the

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Speaker 2: videos of this podcast, so it's weird to edit videos

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Speaker 2: of myself.

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Speaker 4: I was about to say, do you enjoy editing the

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Speaker 4: videos in myself? It's gross.

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Speaker 2: It's actually way more fun to edit you guys, because

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Speaker 2: I don't know what you're going to say, Whereas like

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Speaker 2: when I'm editing myself, I know what I said, and

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Speaker 2: I'm like, oh, did I sound stupid? So if I did,

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Speaker 2: just don't.

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Speaker 4: Worry ignore it.

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Speaker 3: I can't edit videos of myself. I can't really get

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Speaker 3: them back to the podcast because I'm like, ill, who

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Speaker 3: is that?

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Speaker 2: I can actually like, do your voice in my head?

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Speaker 4: Stop it. You don't want that. You don't want that.

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Speaker 3: Look, we need to rewind to the moment in your

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Speaker 3: investing diary that I guess everyone was like, wait, what

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Speaker 3: the hell you said? Very casually, I might add, oh, yeah, like,

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Speaker 3: if I keep investing the way that I am, I'll

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Speaker 3: just be able to retire by the age of thirty five. Yep,

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Speaker 3: And like I already kind of knew that, so that

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Speaker 3: wasn't shocking to me. But like, God, that is kind

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Speaker 3: of shocking.

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Speaker 2: Yes.

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Speaker 3: And now for anyone who's maybe listening to this and

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Speaker 3: heard that in thought, sorry, what Brookie, you just like

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Speaker 3: manifesting this like you're just hoping to retire by thirty five? Like,

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Speaker 3: what's the actual investing strategy behind this? Can you tell

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Speaker 3: us a little bit more about why that number and

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Speaker 3: how that's actually going to work?

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Speaker 2: Yep. So it's this concept called financial independence retire Earlier,

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Speaker 2: or the fire movement. And I probably discovered this twenty

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Speaker 2: seventeen and I found it on Reddit, and it's all

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Speaker 2: these people that are buying index ones and ETFs and

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Speaker 2: they're increasing their savings right, which is really important. We'll

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Speaker 2: touch on it later. But they're increasing their savings rate

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Speaker 2: to be well above the amount they're spending and investing

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Speaker 2: the rest. So they're trying to live on as little

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Speaker 2: money as possible, so they can invest pretty much all

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Speaker 2: of their income early on and then slowly as they

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Speaker 2: get older. Some people increase how much they spend, but

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Speaker 2: who cares. They can retire really early because they're living

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Speaker 2: expenses are low, and they've got an investment portfolio that's

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Speaker 2: going to produce more money than they're going to spend.

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Speaker 3: I feel like this takes significant sacrifice, but I also

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Speaker 3: feel like you don't sacrifice your life that much. Do

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Speaker 3: you really resonate with that financial independence early, save every

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Speaker 3: single dollar or are you a little bit more lax

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Speaker 3: with it than most.

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Speaker 2: Well, in the beginning, I did. I literally have this

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Speaker 2: fear that tomorrow I'll be homeless. I just never think

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Speaker 2: that I will have enough money to survive, and I

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Speaker 2: always worry about that. So when I first started investing,

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Speaker 2: I did try to save heaps and heaps and heaps

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Speaker 2: of money and definitely sacrifice a lot. And then now

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Speaker 2: as I've got older and I've got a second income,

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Speaker 2: I sacrificed less because I put my entire second income

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Speaker 2: into investing. So now I feel like I can spend

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Speaker 2: a little bit more and stress less, but I still

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Speaker 2: keep my savings right really really really high.

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Speaker 4: Yeah.

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Speaker 3: I feel like you're also to give people a little

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Speaker 3: bit more context. I wouldn't say that you're an impulsive shopper. No,

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Speaker 3: Like that's not something. Is that something you've ever experienced?

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Speaker 2: No, I like definitely like spend money, Like I'm not silly,

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Speaker 2: but like my goal for this year was to buy

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Speaker 2: one item, like one item of clothing or like beauty

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Speaker 2: or anything a month. So that was like I could

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Speaker 2: only buy one item twelve things for the year, and

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Speaker 2: I've kept on track, except I did buy I think

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Speaker 2: one or two extra things, but that were my birthday

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Speaker 2: gifts to myself, which is like.

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Speaker 3: I feel like that's fine, it's fine, and like, you know,

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Speaker 3: you could reframe this and be like, well, I wasn't

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Speaker 3: more to go.

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Speaker 2: I could have been I'm not buying them new Like

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Speaker 2: I'm a deep Hop addict. I spent every day on Deepop,

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Speaker 2: even for my little friend Georgia. I find Georgia Deepop

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Speaker 2: finds too, so it's like I'm not like I bought

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Speaker 2: this jumper off Deepop. This is my item for July

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Speaker 2: and originally one hundred and thirty dollars and I got

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Speaker 2: a brand new with tags for forty, so that is

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Speaker 2: a money win.

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Speaker 3: I feel like I love talking about this side of

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Speaker 3: things because I think a lot of people just assume

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Speaker 3: that this type of lifestyle involves serious sacrifice and you

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Speaker 3: feel like you're missing out. But I think it's about

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Speaker 3: really reframing.

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Speaker 2: Like it's not missing outcause I'm helping future me.

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Speaker 3: No, and we laugh a lot because it's kind of

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Speaker 3: like peak consumerism, Like we laugh about the la booboo,

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Speaker 3: like we think it's a like cost of living crisis indicator.

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Speaker 4: Have you bought a la booboo?

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Speaker 5: No?

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Speaker 2: I do think about all the time. I wanted to

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Speaker 2: get a little boobo on the work card because I

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Speaker 2: couldn't just spart on my own gup.

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Speaker 4: But she's just gonna put on my card.

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Speaker 5: No.

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Speaker 2: No, I was going to do it for a video

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Speaker 2: for the She's and the money TikTok. But they've not

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Speaker 2: become available. So unless we find a supplier, we won't

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Speaker 2: be getting a lat boobo. But I thought the would

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Speaker 2: want a latle boobo.

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Speaker 3: We're not investing in la booboos. We are investing in ETF. Yes,

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Speaker 3: when you found this on Reddit, what made you go

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Speaker 3: far out? That's for me and I guess how did

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Speaker 3: it shift the way that you about money and investing?

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Speaker 4: Like, what were you doing before you discovered fire?

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Speaker 2: Well, I wasn't really investing, like that was part of

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Speaker 2: the beginning of my investing journey. The first time I

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Speaker 2: found out about investing was through someone at work, and

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Speaker 2: then I went home and googled a bunch of stuff

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Speaker 2: and then found the fire subreddit. And the reason it

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Speaker 2: stuck out to me was because there were very average people.

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Speaker 2: At this time, I was earning fifty thousand dollars a year,

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Speaker 2: so I wasn't earning good money, and I didn't think

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Speaker 2: I could work forever because no one does. And they

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Speaker 2: were all average people, investing most of their income and

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Speaker 2: then retiring at like an earlier age than normal. Some

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Speaker 2: people in their thirty some people in their forty, some

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Speaker 2: people in their fifties. And I thought, oh my god,

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Speaker 2: these are normal people doing this. Why can't I? And

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Speaker 2: a lot of them were American, and I could. And

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Speaker 2: the good thing is a lot of these people were

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Speaker 2: explaining how they did it, and I looked at that

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Speaker 2: and I thought, actually, that's a one off. And then

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Speaker 2: I read some more and it wasn't a one off,

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Speaker 2: and I was like.

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Speaker 4: It's actually a legitimate strategy.

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Speaker 2: It's a legitimate thing. And I thought, okay, well, if

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Speaker 2: the kind of idea that I found was you need

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Speaker 2: to increase your savings rate, so lower your fixedis spence

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Speaker 2: is right, and how much you're spending every week, and

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Speaker 2: increase savings rate as much as possible so that you

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Speaker 2: can be like investing more than your earning. So my

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Speaker 2: original goal was to get my savings right up to

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Speaker 2: thirty percent. And then once I did that, I was like, okay, well,

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Speaker 2: now what can I do? And I notoriously don't really drink.

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Speaker 2: I stopped drinking like five years ago, and I did

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Speaker 2: dorink for five years. So I saved so much money

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Speaker 2: than the average person because everyone's sending two to ThReD

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Speaker 2: dollars a week going out drinking and I wasn't so

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Speaker 2: that money I was investing. So then I was say, hey,

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Speaker 2: well my saving rate is going to go from thirty

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Speaker 2: percent to forty percent and then fifty percent and.

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Speaker 4: So on to try what is your what do you reckon?

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Speaker 4: Your saving rate is?

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Speaker 2: Now have exact figure. I did the maths for you

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Speaker 2: guys last night.

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Speaker 3: I think I was going to ask you about this

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Speaker 3: a little bit later in the show, but like you're

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Speaker 3: corregation need to know now.

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Speaker 2: So my savings right, well my essential spending, So like

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Speaker 2: my rent, my I give myself six years fun money.

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Speaker 2: I give myself money to go out for dinner with

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Speaker 2: my boyfriend and we love eating, so that's.

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Speaker 3: That eating is like central, that's our sport. It's not

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Speaker 3: just like you guys, though. I feel like everybody in

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Speaker 3: the Shees on the Money team loves eatings and for Georgia, Yes,

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Speaker 3: in Georgia, who are just yeah, but like their chicken

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Speaker 3: nugget kids, and we kind of have we we love.

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Speaker 2: Them because then we can go out for something enough,

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Speaker 2: no one's stealing our food. I'm getting the scallops and

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Speaker 2: I'm also getting scallops and everyone else is not. But

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Speaker 2: that's okay.

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Speaker 4: We believe them. They love the bread.

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Speaker 2: My essential expenses come to thirty one percent of my

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Speaker 2: income thirty one point eight eight and my savings right

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Speaker 2: at the moment, as of last night is sixty eight

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Speaker 2: point one two per day, and that's fully automated, so

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Speaker 2: none of the money I can touch. Like I get

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Speaker 2: paid monthly, so we get you're welcome. I get paid monthly,

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Speaker 2: but I pay myself weekly, so I'm one month ahead

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Speaker 2: in my judge at all times. So we get paid

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Speaker 2: on the fifteenth. But every Friday, I pay myself, so

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Speaker 2: I give I do Thursday. Why do you pick Friday

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Speaker 2: because we typically well, I give myself Friday so that

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Speaker 2: on the weekend I have money, because then I won't

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Speaker 2: give into my savings. So on Friday, it's my coffe day.

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Speaker 2: So my boyfriend, I take Jones. He on a Thursday

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Speaker 2: go to get a coffee. On a Friday, I get paid,

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Speaker 2: get up in the water and go get a coffee.

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Speaker 2: And then I have on Saturday and Sunday to spend

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Speaker 2: my money. And and really, if I spend all my

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Speaker 2: money on those days, I've got to suffer till Friday

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Speaker 2: because I cannot touch my savings.

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Speaker 4: I try to see that's my mentality.

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Speaker 3: But I think a lot of people are listening to

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Speaker 3: this and they're like, that feels really restrictive. For me,

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Speaker 3: it feels really freeing because I'm kind of like I

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Speaker 3: don't have to think about the big picture. I'm not

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Speaker 3: thinking about whether my bills are paid or whatever.

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Speaker 2: It's aulated if I've.

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Speaker 3: Blown all my money on a Sunday brunchf and it

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Speaker 3: means that I can't have, you know, a cheeky croissant

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Speaker 3: or something that I might go, oh, I deserve a

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Speaker 3: sweet treat. Sorry, you can't afford a sweet treat, Victoria

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Speaker 3: Like it's not in the budget. Yeah, And I think

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Speaker 3: a lot of people just go and please don't get

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Speaker 3: me wrong, I do clearly have a good income, but

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Speaker 3: the way that I manage my money is on such

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Speaker 3: a week to week basis that I've allocated that amount.

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Speaker 2: You pay yourself first.

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Speaker 3: Yeah, I'm kind of low key in my head. I'm like,

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Speaker 3: I can't afford that, Like, that's not in my budget.

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Speaker 2: I try to do my grocery shopping on the Saturday

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Speaker 2: and Sunday, so then so that you can get the

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Speaker 2: good stuff. I've already got all of my grocery sorted,

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Speaker 2: and then Monday, Tuesday, Wednesday, Thursday. I work from home, so.

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Speaker 4: Yeah, that's a good deal for saving money too.

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Speaker 2: I cooked dinner, and like I cooked dinner two nights

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Speaker 2: a week, my way from will cook dinner two nights

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Speaker 2: a week, and then we'll cook lunches, but we typically

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Speaker 2: won't go out those days. You might go out for

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Speaker 2: a lunch on a Friday, we'll go out for lunch

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Speaker 2: or a dinner on a Saturday or a Sunday. But

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Speaker 2: the midweek, I'm not really spending any money. I don't

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Speaker 2: pay for money to commute because I work from home.

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Speaker 2: And then I have I splurge a little bit with

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Speaker 2: my Poliities membership, but that is for the mental health.

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Speaker 2: But my savings rate is pretty high. But I don't

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Speaker 2: feel like that's going papers full as well.

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Speaker 3: And I feel like, yeah, if you're sitting there and

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Speaker 3: you're listening to brook story and you're like, holy hell,

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Speaker 3: Like I own one hundred and fifty thousand dollars a

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Speaker 3: year and there's no way I could do that. I

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Speaker 3: think for Brook it works because you started from a

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Speaker 3: low base, and so I'm not saying I.

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Speaker 2: Haven't changed my spending couch my first income.

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Speaker 3: Yeah, And I think that that's for me because like

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Speaker 3: I think I've shared enough about my journey where I

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Speaker 3: got into a whole heap of personal debt and then

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Speaker 3: I had to get out of it and I had

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Speaker 3: to change my whole mindset around money and that was

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Speaker 3: a struggle.

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Speaker 2: You've kind of gone debt.

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Speaker 3: Yeah, you've gone from low income and like, I can

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Speaker 3: survive off this amount to every single time, like Brook

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Speaker 3: is in the perfect position. I would say, every single

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Speaker 3: time you've gotten a pay rise or a pay increase

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Speaker 3: that has not gone towards life style creep.

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Speaker 2: No. Literally, I'm so jealous. I cannot do it to myself.

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Speaker 2: Like in my head, I tomorrow if I got knocked

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Speaker 2: back down to my first salary. My savings rate would differ,

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Speaker 2: but my living expenses and stuff wouldn't change. I'm not

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Speaker 2: change any of that. I don't have a new car.

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Speaker 2: I drive a twenty eleven High and thirty with custom

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Speaker 2: number plates. But custom number plates I do, they're pretty bougie.

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Speaker 2: I hate to brag, but I'm scared.

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Speaker 3: Of custom number plates because I genuinely don't want people

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Speaker 3: to like spot my car and be like, Okay, she

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Speaker 3: can't drive.

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Speaker 2: I know that I can't drive, but it's fine, But

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Speaker 2: like I don't. I don't have a new car. I

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Speaker 2: don't have a designer bag.

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Speaker 4: Every new item a designer bag. You own a Chanelle.

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Speaker 2: Oh no, that's my designer bag. It was a thousand dollars. Sorry,

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Speaker 2: that's a designer bag. Okay, to the record, you have

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Speaker 2: a Chanel bag, and I can guarantee carrier it's from

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Speaker 2: my caraer on. It's my carry on. Oh sorry, that

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Speaker 2: justifies it. Okay, No, this is making me sound out

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Speaker 2: of such. I saved that it was a vintage Carl Lagerfeld.

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Speaker 2: Let me tell you, But it's like, no, I don't

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Speaker 2: go out and buy anything.

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Speaker 3: Everything I buy everything to do is thrifitted or art

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Speaker 3: throwing your under the bus for owning a bag, but like, sorry,

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Speaker 3: a girl's got to live as well.

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Speaker 4: And if that has been on your leg wish list

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Speaker 4: and I.

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Speaker 2: Saved for that, like that was my birthday present to

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Speaker 2: myself three years ago, and it's my carry on every

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Speaker 2: single time.

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Speaker 4: Remember it was three years ago.

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Speaker 2: It was three years ago. And because it's my laptop

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Speaker 2: bag as well, I could have claimed it on TASS.

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Speaker 2: I don't think I did, but I should have. I

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Speaker 2: kind of low key love it.

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Speaker 3: All right, let's move back from Chanel bags over to

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Speaker 3: the fire concept. If you listen to our episode on

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Speaker 3: how much Super You Actually Need, you'll know that there's

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Speaker 3: like actually no magic number when it comes to creating

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Speaker 3: your perfect retirement because your lifestyle and your needs and

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Speaker 3: your values are completely unique. And you know, if Brooke

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Speaker 3: and I swapped lifestyles, we'd have to absolutely.

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Speaker 2: Reach how to crease budget.

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Speaker 3: Well, it's interesting as well because since becoming a mum,

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Speaker 3: I already shift well yeah, and I've decreased how many

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Speaker 3: days I'm present in the office, so I now have

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Speaker 3: Mondays off and I spend them with my son and

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Speaker 3: that is expensive. Not because we're going out heaps, but

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Speaker 3: like I end up going to lunch and I go, oh,

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Speaker 3: I'm stuck in the house.

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Speaker 4: You know I've done I've killed it.

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Speaker 2: As mental health moment.

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Speaker 4: Yeah, and like, sorry, what do you mean? A kid's

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Speaker 4: toasted his twelve dollars? So most of the time I

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Speaker 4: pack his little.

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Speaker 3: Lunch because he loves a lunch box at this age.

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Speaker 3: But I'm still going out going to you know what,

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Speaker 3: I've been at home. I've done all the stuff I'm

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Speaker 3: going to that's just self care activity. Yeah, And like

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Speaker 3: I've had to reshift my budget, not just in terms

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Speaker 3: of what I originally had budgeted for baby, because like

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Speaker 3: I've done all the maths, right, Like I'd worked out

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Speaker 3: on averages.

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Speaker 4: Is what nappies are going to cost?

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Speaker 2: This is what you call my God, it's so didn't

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Speaker 2: I make so many calculations because until you're in that situation,

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Speaker 2: you can't. Like my you would change too if I

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Speaker 2: was in that s.

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Speaker 3: The lifestyle stuff, So like I find the budgeting for

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Speaker 3: the stuff that I can anticipate that's maybe not lifestyle.

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Speaker 3: So like I knew that every season he's going to

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Speaker 3: go up a size so like, you know, I did

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Speaker 3: so much research and so much talking to JGBT and

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Speaker 3: looking at like Reddit, just because I really wanted to know.

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Speaker 3: But essentially, your baby will outgrow their clothes every three months.

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Speaker 2: That is crazy. Two years pass away at the thought

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Speaker 2: for the first two years.

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Speaker 3: And so I worked out, Okay, well, if that's the case,

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Speaker 3: how many ones is do you think I'll need every season?

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Speaker 3: I was psychotic, how many? How many outfits? And like, yeah,

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Speaker 3: I've blown the budget on that a few times because

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Speaker 3: I'm like, oh sorry, like my husband, this is so lame.

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Speaker 4: But we're going to a wedding in Bali soon and

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Speaker 4: my husband has this.

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Speaker 2: At the Padma.

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Speaker 4: Yeah, yeah, Bali at the Padma. Is this going out

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Speaker 4: after that?

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Speaker 2: It'll be September.

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Speaker 4: Great, I stayed at the Padma.

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Speaker 2: That's a big contentious topic in our office. If you

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Speaker 2: want to know more, I'll make a TikTok for us.

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Speaker 3: Actually, Brooke just straight out told me that that's Bali Bogan.

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Speaker 3: But guys, when you have a kid, the Padma as

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Speaker 3: a resort. Sorry, it has a petting zoo, it has

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Speaker 3: an ice cream cut. You're selling it to your close

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Speaker 3: to me, and you know what I'm not leaving that

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Speaker 3: resort with my nearly two year old anyway. With your

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Speaker 3: Padma review, when we were doing that, I was like, oh, sorry,

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Speaker 3: I do actually need my husband and son for the

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Speaker 3: recovery party of this wedding to have matching outfits.

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Speaker 2: No, I think that that is an expense that I

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Speaker 2: would have to approve to. Yeah.

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Speaker 3: Fine, but all of those things I think you can

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Speaker 3: kind of like sort of foresee. But it was like

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Speaker 3: the mental shift of like, hold on, like I've realized

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Speaker 3: that on the Monday that my son and I are

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Speaker 3: at home on our own all day, I actually do

393
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Speaker 3: want to go out for lunch. I do want to

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Speaker 3: go out and get it toasty, and like we're not

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Speaker 3: talking like super expensive, but like those budget shifts.

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Speaker 2: Are different a different friend stage or.

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Speaker 3: At different life stages, so I think it's important to go, oh,

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Speaker 3: what's the perfect retirement. I'm well, it's going to look

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Speaker 3: different for me and different for you because we also

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00:16:52,000 --> 00:16:55,120
Speaker 3: have different lifestyle goals and we live in different states.

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Speaker 2: Like if Melbom's notoriously more expensive if you pay for tolls.

402
00:16:58,040 --> 00:16:59,440
Speaker 2: I found out the other day how much tolls were,

403
00:16:59,440 --> 00:17:01,400
Speaker 2: which is crazy scenes here, but like that's something that's

404
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Speaker 2: never going in my budget.

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Speaker 3: No, no, And I think that that's where we go

406
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Speaker 3: back to this concept of financial independence. Retire early, like

407
00:17:09,040 --> 00:17:12,159
Speaker 3: your personal fire number isn't just about hitting like a

408
00:17:12,280 --> 00:17:14,880
Speaker 3: million dollars and being like, Okay, well I hit the goal,

409
00:17:15,920 --> 00:17:18,840
Speaker 3: or retiring by a certain age. It's about designing a

410
00:17:18,960 --> 00:17:21,600
Speaker 3: life that works for you and then building an investment

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00:17:21,640 --> 00:17:25,560
Speaker 3: portfolio that can support that version of freedom. And whether

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00:17:25,680 --> 00:17:29,520
Speaker 3: that's like, you know, really luxury or really minimalist or

413
00:17:29,600 --> 00:17:34,520
Speaker 3: like you're like semi retired or something or anything in between. Like,

414
00:17:34,760 --> 00:17:36,600
Speaker 3: it's going to look different and you have to work backwards.

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Speaker 3: So Brook, what version of fire are you currently working towards?

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00:17:40,720 --> 00:17:42,920
Speaker 3: Like once you hit thirty five? Sorry, I need to

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Speaker 3: know the gritty details.

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Speaker 2: Why would your lifestyle look like? It depends because I

419
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Speaker 2: know that realistically, before the time I hit thirty five,

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Speaker 2: I'll probably have kids, get married, except I would never

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Speaker 2: do a big wedding, which why would you do that?

422
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Speaker 2: That's so crazy?

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Speaker 4: I would never spend lots of there doesn't.

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Speaker 2: All like aligned to my values. I'm a kind For

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Speaker 2: those of you who don't follow me on social media,

426
00:18:04,520 --> 00:18:06,679
Speaker 2: which is huge, a significant amount of money on over

427
00:18:06,960 --> 00:18:10,399
Speaker 2: right nothing. But to me, I could never justify that.

428
00:18:10,560 --> 00:18:13,080
Speaker 2: I would justify loping and spending twenty can a really

429
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Speaker 2: sick holiday for me and my part families. I would

430
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Speaker 2: just never have a big wedding. It's not mine.

431
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Speaker 4: You like, can I come to the wedding?

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Speaker 2: You can't. But that's okay, that's weird.

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Speaker 4: Okay, let me.

434
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Speaker 2: Set this boundary here. You won't be attending my single elopement.

435
00:18:27,119 --> 00:18:32,080
Speaker 2: This is bullshit. But for me, my fire mentality right

436
00:18:32,119 --> 00:18:33,680
Speaker 2: now is I would love to get to two million

437
00:18:33,760 --> 00:18:36,399
Speaker 2: by thirty five and then be able to have like

438
00:18:36,440 --> 00:18:38,760
Speaker 2: a full eighty thousand year income, which would be a

439
00:18:38,760 --> 00:18:42,320
Speaker 2: four percent draw down rate. But I'm realistic that I'm

440
00:18:42,400 --> 00:18:44,240
Speaker 2: not going to retire at thirty five because.

441
00:18:44,000 --> 00:18:46,119
Speaker 4: I really will have a number that you want to

442
00:18:46,520 --> 00:18:47,760
Speaker 4: which is two millions.

443
00:18:47,520 --> 00:18:51,000
Speaker 2: So that's a work optional then. But I would also

444
00:18:51,520 --> 00:18:54,160
Speaker 2: think about doing something called coast fire or barrista fire,

445
00:18:54,560 --> 00:18:57,280
Speaker 2: which is where your investing portfolio will give you like

446
00:18:57,320 --> 00:19:00,280
Speaker 2: a part time income, so would would be a barista file.

447
00:19:01,080 --> 00:19:03,280
Speaker 2: This is my favorite concept. Do georgially talk about this

448
00:19:03,320 --> 00:19:05,159
Speaker 2: all the time, which is like you kind of get

449
00:19:05,160 --> 00:19:08,160
Speaker 2: to a point where okay, well, I've experienced the corporate

450
00:19:08,280 --> 00:19:10,879
Speaker 2: highs and lows. I've enjoyed doing my career and growing that,

451
00:19:11,160 --> 00:19:13,200
Speaker 2: but now that doesn't serve me anymore. I want to

452
00:19:13,240 --> 00:19:14,800
Speaker 2: do passion projects. I want to do this.

453
00:19:15,240 --> 00:19:18,280
Speaker 4: So you then get into CEO who then becomes yoga teacher.

454
00:19:18,359 --> 00:19:20,879
Speaker 2: Exactly, and you can live on a lower income but

455
00:19:21,040 --> 00:19:24,040
Speaker 2: continue to have your lifestyle because your investment portfolio will

456
00:19:24,080 --> 00:19:27,160
Speaker 2: prop you up. So say my my Barista fire number

457
00:19:27,160 --> 00:19:30,440
Speaker 2: would be one million, one hundred and twenty five thousand dollars,

458
00:19:30,440 --> 00:19:33,480
Speaker 2: which would then get me forty five K year income.

459
00:19:33,840 --> 00:19:36,159
Speaker 2: Then say I have a fifty K year salary. That

460
00:19:36,240 --> 00:19:38,160
Speaker 2: means I'm still earning one hundred and five thousand dollars

461
00:19:38,160 --> 00:19:40,520
Speaker 2: a year. Okay, but I'm working a fun job that

462
00:19:40,600 --> 00:19:42,240
Speaker 2: I find like, I feel passionate about it. And then

463
00:19:42,240 --> 00:19:44,320
Speaker 2: if I wanted to take a little sabbatical and I

464
00:19:44,400 --> 00:19:46,960
Speaker 2: wanted to go overseas for a couple of years, I'm

465
00:19:46,960 --> 00:19:50,359
Speaker 2: still earning forty five K. So you can coast towards

466
00:19:50,400 --> 00:19:52,719
Speaker 2: your fire and now you're still increasing your savings rate

467
00:19:53,200 --> 00:19:56,080
Speaker 2: because of that forty five thousand, I still spend like

468
00:19:56,240 --> 00:19:58,080
Speaker 2: I spend less than that a year. I spend like

469
00:19:58,480 --> 00:20:00,960
Speaker 2: thirty grand a year or something, I would still be

470
00:20:01,080 --> 00:20:04,160
Speaker 2: contributing towards my investing fund. So my investments are still

471
00:20:04,200 --> 00:20:06,760
Speaker 2: growing as I'm getting closer to that main fire number.

472
00:20:07,200 --> 00:20:10,119
Speaker 3: I love that, and I feel like just knowing your

473
00:20:10,160 --> 00:20:12,359
Speaker 3: fire number is only one piece of the puzzle. So

474
00:20:12,440 --> 00:20:15,080
Speaker 3: we're going to take a very quick break, and when

475
00:20:15,119 --> 00:20:17,160
Speaker 3: we get back, we're going to dive into a little

476
00:20:17,160 --> 00:20:19,240
Speaker 3: bit more of the juicy stuff, the strategy and the

477
00:20:19,320 --> 00:20:21,959
Speaker 3: things that you need to think about if you actually

478
00:20:22,040 --> 00:20:22,920
Speaker 3: want to retire early.

479
00:20:23,040 --> 00:20:24,400
Speaker 4: So guys, don't go anywhere.

480
00:20:28,280 --> 00:20:29,960
Speaker 3: All right, we are back, and it is time to

481
00:20:30,080 --> 00:20:34,040
Speaker 3: jump into the strategy that you have behind retiring early.

482
00:20:34,680 --> 00:20:38,440
Speaker 3: When most people start their plans for retiring early, say

483
00:20:38,480 --> 00:20:41,920
Speaker 3: around like I don't know, sixty five is what people

484
00:20:42,000 --> 00:20:45,280
Speaker 3: are like working towards On average, they often work out

485
00:20:45,760 --> 00:20:48,159
Speaker 3: a draw down rate of around five percent. You mentioned

486
00:20:48,240 --> 00:20:50,600
Speaker 3: that your draw down rate was four percent before, just

487
00:20:50,680 --> 00:20:54,480
Speaker 3: for context, and that's because their investment portfolio only needs

488
00:20:54,520 --> 00:20:56,560
Speaker 3: to last like twenty or thirty years for them.

489
00:20:57,320 --> 00:20:58,040
Speaker 5: But when you're.

490
00:20:57,960 --> 00:21:00,960
Speaker 3: Planning to retire much earlier, you're in investments actually have

491
00:21:01,119 --> 00:21:03,000
Speaker 3: to support you for longer, and that money has to

492
00:21:03,119 --> 00:21:06,920
Speaker 3: stretch further, and you need to be a bit more conservative. Yes, Brook,

493
00:21:07,080 --> 00:21:09,640
Speaker 3: you mentioned that your draw down rate was four percent

494
00:21:10,400 --> 00:21:14,400
Speaker 3: when you calculated your fire number. Why did that draw

495
00:21:14,520 --> 00:21:16,000
Speaker 3: down rate make the most sense for you?

496
00:21:16,359 --> 00:21:19,080
Speaker 2: I just try to be as conservative as possible, because

497
00:21:19,160 --> 00:21:22,040
Speaker 2: then if I could actually draw down more, that is

498
00:21:22,080 --> 00:21:24,440
Speaker 2: a win. A win is a win. I will take that.

499
00:21:24,920 --> 00:21:28,320
Speaker 2: I'm always going to base my calculations on the lowest possible,

500
00:21:28,400 --> 00:21:30,800
Speaker 2: like obviously it's not the lowest possible, but the most

501
00:21:30,920 --> 00:21:34,200
Speaker 2: reasonable and lowest amount, so that then any extra it's

502
00:21:34,240 --> 00:21:36,680
Speaker 2: a bonus. Yeah, it's like a little this is your

503
00:21:36,880 --> 00:21:40,200
Speaker 2: annual bonus. Great. But if I factored my draw down

504
00:21:40,240 --> 00:21:42,479
Speaker 2: rate is like six percent and realistically I could only

505
00:21:42,560 --> 00:21:45,040
Speaker 2: draw down four percent, that I would be disappointed. So

506
00:21:45,240 --> 00:21:47,679
Speaker 2: if I am low and land.

507
00:21:47,480 --> 00:21:50,760
Speaker 3: High money win. We want to set our expectations to

508
00:21:50,920 --> 00:21:54,359
Speaker 3: be exceeded. When I was a financial advisor, I always

509
00:21:54,400 --> 00:21:56,000
Speaker 3: did that because I'd always be like, I really want

510
00:21:56,040 --> 00:21:57,840
Speaker 3: to impress you, and I'd prefer you to be happy

511
00:21:57,920 --> 00:22:01,120
Speaker 3: with me. I'm the promises of a deliver exactly. Now.

512
00:22:01,800 --> 00:22:03,639
Speaker 3: You have mentioned that you want to retire at the

513
00:22:03,720 --> 00:22:07,040
Speaker 3: age of thirty five, which means that your superannuation actually

514
00:22:07,160 --> 00:22:10,639
Speaker 3: can't come into this conversation. Yes, but we will have

515
00:22:10,720 --> 00:22:12,680
Speaker 3: that when we turn sixty five and when we're a

516
00:22:12,680 --> 00:22:16,840
Speaker 3: little bit older. I want to know that combination because

517
00:22:16,840 --> 00:22:19,440
Speaker 3: at the moment your fire number you mentioned two million

518
00:22:19,480 --> 00:22:22,159
Speaker 3: dollars that would not be including any super because you

519
00:22:22,200 --> 00:22:24,520
Speaker 3: can't touch that. Just because you decided to retire does

520
00:22:24,640 --> 00:22:25,119
Speaker 3: not mean that.

521
00:22:25,119 --> 00:22:28,479
Speaker 2: The government gunners. Oh yes you are retired. Yes, good job, Brooke, here,

522
00:22:28,520 --> 00:22:30,960
Speaker 2: I have it all early. You've done amazing. Unfortunately, that's

523
00:22:31,040 --> 00:22:31,240
Speaker 2: not it.

524
00:22:31,359 --> 00:22:33,359
Speaker 3: And I think that that makes it a little bit

525
00:22:33,520 --> 00:22:36,959
Speaker 3: trickier than a traditional retirement because, as I've said time

526
00:22:37,040 --> 00:22:40,479
Speaker 3: and time again on the show before, I think superranuation.

527
00:22:40,359 --> 00:22:43,920
Speaker 4: Is the sexiest tax vehicle in existence.

528
00:22:44,119 --> 00:22:46,520
Speaker 3: Like, at the moment, you'd be paying a relatively high

529
00:22:46,560 --> 00:22:50,160
Speaker 3: marginal tax rate, but in subranuation you are paying fifteen percent.

530
00:22:50,600 --> 00:22:54,560
Speaker 3: That is hot girl shit for most of us, unless like,

531
00:22:54,920 --> 00:22:57,120
Speaker 3: and I don't want people coming at me and being like, well,

532
00:22:57,280 --> 00:23:00,200
Speaker 3: my cousin accessed his super early. You can in really

533
00:23:00,240 --> 00:23:02,760
Speaker 3: extreme circumstances of illness or injury or like.

534
00:23:03,200 --> 00:23:04,000
Speaker 2: I think I'm eligible.

535
00:23:04,240 --> 00:23:06,040
Speaker 4: Yeah no, no, you're just ill.

536
00:23:06,720 --> 00:23:09,680
Speaker 3: But we can't access it until we sixty and then

537
00:23:10,040 --> 00:23:12,480
Speaker 3: we can actually draw down on it properly tax free

538
00:23:12,520 --> 00:23:15,480
Speaker 3: from sixty five. At this point, I do believe side

539
00:23:15,520 --> 00:23:18,199
Speaker 3: note that that retirement age is going to be reset

540
00:23:18,280 --> 00:23:21,359
Speaker 3: to probably seventy or seventy two. And the reason for

541
00:23:21,480 --> 00:23:23,800
Speaker 3: that is just we are working later and later, and

542
00:23:23,920 --> 00:23:26,560
Speaker 3: the government wants to push off retirement age.

543
00:23:26,600 --> 00:23:27,600
Speaker 2: Business saves and money.

544
00:23:27,720 --> 00:23:30,919
Speaker 3: Yeah, it would take significant pressure off the pension system

545
00:23:31,280 --> 00:23:34,399
Speaker 3: because they're basically forcing you to work longer. But anyway

546
00:23:34,520 --> 00:23:37,560
Speaker 3: back on track, if you're aiming to stop working in

547
00:23:37,680 --> 00:23:40,359
Speaker 3: your mid thirties or maybe even closer to forty, you

548
00:23:40,440 --> 00:23:44,359
Speaker 3: need a way to fund the next you know, years

549
00:23:44,440 --> 00:23:45,159
Speaker 3: between that.

550
00:23:46,160 --> 00:23:48,960
Speaker 4: And this is where the idea of like bridging buckets

551
00:23:49,200 --> 00:23:49,879
Speaker 4: comes into it.

552
00:23:50,160 --> 00:23:53,760
Speaker 3: And I think it's that part of the portfolio that's

553
00:23:53,800 --> 00:23:57,440
Speaker 3: invested outside of Super and that's designed to cover your

554
00:23:57,520 --> 00:24:00,440
Speaker 3: lifestyle until Super becomes available. But tell me, like, have

555
00:24:00,600 --> 00:24:03,320
Speaker 3: you actually factored Super into the plow? Are we talking

556
00:24:03,359 --> 00:24:05,639
Speaker 3: about that? Because like I do payroll every month and

557
00:24:05,720 --> 00:24:06,679
Speaker 3: I'm paying your supers?

558
00:24:06,840 --> 00:24:08,040
Speaker 2: So are youreful for it?

559
00:24:08,119 --> 00:24:10,040
Speaker 4: Yeah? But are you watching it? Are you caring about it?

560
00:24:10,160 --> 00:24:11,920
Speaker 2: I do definitely watch it. It's definitely in my I

561
00:24:12,040 --> 00:24:15,120
Speaker 2: track my network every month just because I'm freaking insane.

562
00:24:15,240 --> 00:24:15,639
Speaker 5: I love this.

563
00:24:15,880 --> 00:24:16,919
Speaker 4: Also free network.

564
00:24:17,600 --> 00:24:19,440
Speaker 2: It's not free, it's in the Vestry musk Strace. But

565
00:24:19,600 --> 00:24:21,760
Speaker 2: the network track that's in the investing musklass I made.

566
00:24:22,160 --> 00:24:24,280
Speaker 2: I was one that I use. Yeah, there we go.

567
00:24:24,680 --> 00:24:27,560
Speaker 4: I was like, it's free hold on a bonus for

568
00:24:27,640 --> 00:24:28,720
Speaker 4: our investing muster class.

569
00:24:28,760 --> 00:24:31,640
Speaker 2: I feel that network tracker out every single month because

570
00:24:31,640 --> 00:24:33,840
Speaker 2: I like to see it grow. But I do factor

571
00:24:33,840 --> 00:24:36,080
Speaker 2: my SUPER in there. But it is not factored into

572
00:24:36,119 --> 00:24:39,040
Speaker 2: my fire number at all because obviously the fire you

573
00:24:39,160 --> 00:24:41,399
Speaker 2: can't access it. No, and the fire movement started in

574
00:24:41,440 --> 00:24:44,040
Speaker 2: America they don't have super. So I've just always not

575
00:24:44,160 --> 00:24:47,560
Speaker 2: included it, and I considered that my superannuation is a bonus.

576
00:24:47,720 --> 00:24:50,399
Speaker 2: It's like when I reach sixty five, it's a thank you.

577
00:24:50,640 --> 00:24:51,159
Speaker 5: Here you go.

578
00:24:51,520 --> 00:24:54,239
Speaker 4: Do you know, like, what would your SUPER be sitting at?

579
00:24:54,359 --> 00:24:56,280
Speaker 2: Like I'm not it would be in the millions by

580
00:24:56,320 --> 00:24:57,320
Speaker 2: the time I get that.

581
00:24:57,440 --> 00:25:00,440
Speaker 3: It's like sitting at a good amount for your age. Yeah,

582
00:25:00,440 --> 00:25:01,800
Speaker 3: I'm assuming because you've always.

583
00:25:01,560 --> 00:25:03,480
Speaker 2: Double it's more. Yeah, it's more than double what the

584
00:25:03,600 --> 00:25:07,960
Speaker 2: average is. Okay, But I don't conflict see here, No,

585
00:25:08,119 --> 00:25:09,800
Speaker 2: I just had I've always worked with. You don't make

586
00:25:09,800 --> 00:25:12,560
Speaker 2: additional contract. I don't make any additional contributions because I

587
00:25:12,680 --> 00:25:15,320
Speaker 2: really like to have control over my investments, and because

588
00:25:15,320 --> 00:25:17,399
Speaker 2: I want to be able to be work optional by

589
00:25:17,480 --> 00:25:20,880
Speaker 2: thirty five. I don't like I don't factor that into

590
00:25:20,880 --> 00:25:23,440
Speaker 2: my investing. Obviously, I feel grateful to have SUPER, and

591
00:25:23,640 --> 00:25:25,720
Speaker 2: if my SUPER was lower than the average, I would

592
00:25:25,720 --> 00:25:29,120
Speaker 2: definitely contribute to it. But right now it's not part

593
00:25:29,160 --> 00:25:31,359
Speaker 2: of my fire strategy. It's a nice to have when

594
00:25:31,400 --> 00:25:33,200
Speaker 2: I turned sixty five, and I hope that that money

595
00:25:33,200 --> 00:25:35,159
Speaker 2: will then just be things I could help with my family.

596
00:25:35,440 --> 00:25:38,440
Speaker 3: Yeah, and that's kind of my strategy as well, just

597
00:25:38,520 --> 00:25:39,960
Speaker 3: to flip it, because I think people are always like,

598
00:25:39,960 --> 00:25:41,080
Speaker 3: well what do you do with your super?

599
00:25:41,160 --> 00:25:41,560
Speaker 4: Victoria?

600
00:25:42,080 --> 00:25:45,960
Speaker 3: And I too, Look, I think we've all heard that.

601
00:25:46,160 --> 00:25:48,359
Speaker 3: There's two phrases that come to mind. Here, do as

602
00:25:48,400 --> 00:25:50,359
Speaker 3: I say, not as I do? And then the other

603
00:25:50,440 --> 00:25:52,840
Speaker 3: one is the plumber always has the leaky tap, right,

604
00:25:53,400 --> 00:25:54,960
Speaker 3: And so I've never heard that.

605
00:25:55,160 --> 00:25:57,040
Speaker 2: Have you never heard about the plumber? But no, I

606
00:25:57,160 --> 00:25:59,600
Speaker 2: do agree because people that do a job, they don't

607
00:25:59,600 --> 00:26:00,880
Speaker 2: necessarily do that for themselves.

608
00:26:01,080 --> 00:26:04,320
Speaker 3: No, And I have always said if you're a small

609
00:26:04,359 --> 00:26:07,480
Speaker 3: business owner, like you need to be paying yourself superannuation

610
00:26:07,600 --> 00:26:10,359
Speaker 3: and I'm wildly passionate about that, but I also don't

611
00:26:10,400 --> 00:26:11,360
Speaker 3: live with the fairies.

612
00:26:11,800 --> 00:26:14,240
Speaker 4: And like, when I first started my business, I'm.

613
00:26:14,160 --> 00:26:16,680
Speaker 3: Sorry, I did keep track of it, Like I knew

614
00:26:16,720 --> 00:26:19,520
Speaker 3: what I should be paying myself in SUPER and sometimes.

615
00:26:19,200 --> 00:26:20,240
Speaker 2: It's not realistic to worry.

616
00:26:20,280 --> 00:26:23,080
Speaker 3: I didn't have any cash flow, and the decision, like

617
00:26:23,240 --> 00:26:25,520
Speaker 3: Jess we've talked about was my first employee in She's

618
00:26:25,560 --> 00:26:27,920
Speaker 3: on the money, completely separate from Zella. But I remember

619
00:26:28,000 --> 00:26:31,560
Speaker 3: being like, well, I can't afford to take SUPER if

620
00:26:31,600 --> 00:26:33,840
Speaker 3: I'm going to then be paying someone else's SUPER and

621
00:26:33,920 --> 00:26:36,840
Speaker 3: actually getting this support in my business. Yeah, and like

622
00:26:36,920 --> 00:26:39,480
Speaker 3: there were so many like, yes, you should be paying

623
00:26:39,560 --> 00:26:42,800
Speaker 3: super as a small business owner, but also was a

624
00:26:43,160 --> 00:26:45,879
Speaker 3: factors Let's be honest, No, I wasn't, but I did

625
00:26:46,000 --> 00:26:48,159
Speaker 3: keep track of what I should have been paying myself

626
00:26:48,200 --> 00:26:50,480
Speaker 3: in SUPER. And so when people are like, oh, do

627
00:26:50,480 --> 00:26:52,399
Speaker 3: you make extra contributions, I'm kind of like, Okay, this

628
00:26:52,520 --> 00:26:55,560
Speaker 3: is complicated, because yes, but the reason I do is

629
00:26:55,640 --> 00:26:57,800
Speaker 3: to get back up where I need to be and

630
00:26:57,920 --> 00:27:01,080
Speaker 3: what I quote in my head, oh myself, not because

631
00:27:01,080 --> 00:27:03,360
Speaker 3: I'm trying to bowlk up my super because I would

632
00:27:03,440 --> 00:27:05,920
Speaker 3: love for my husband Steve and I to be in

633
00:27:06,040 --> 00:27:09,080
Speaker 3: a position ideally by the age of forty. Mine's not

634
00:27:09,200 --> 00:27:12,520
Speaker 3: thirty five, because that's next year, by the age of forty,

635
00:27:12,720 --> 00:27:16,080
Speaker 3: where we have that financial freedom to go. Actually, let's

636
00:27:16,119 --> 00:27:16,720
Speaker 3: just a bashion prop.

637
00:27:16,880 --> 00:27:18,840
Speaker 4: Yeah, and like the way that I have worked that

638
00:27:18,960 --> 00:27:21,360
Speaker 4: out is same as you. Like I've gone.

639
00:27:21,400 --> 00:27:24,000
Speaker 3: Okay, our number is x and thankfully we have a

640
00:27:24,119 --> 00:27:26,639
Speaker 3: dual income household, so we're both contributing to this.

641
00:27:27,680 --> 00:27:28,920
Speaker 4: No not dinks, double income.

642
00:27:29,000 --> 00:27:33,480
Speaker 2: No kids, you're no kids. I'm not a dinkless with dinkless,

643
00:27:34,080 --> 00:27:34,880
Speaker 2: which is really sad.

644
00:27:34,920 --> 00:27:37,119
Speaker 3: I graduated from being a dink what eighteen months a

645
00:27:37,200 --> 00:27:40,120
Speaker 3: great turn out of ten can recommend to the graduation,

646
00:27:40,800 --> 00:27:43,440
Speaker 3: but not for the financial benefits, because as such there

647
00:27:43,520 --> 00:27:46,560
Speaker 3: are none. I have a tiny free loader who basically

648
00:27:46,640 --> 00:27:49,359
Speaker 3: he doesn't even need yours, no chores, and all he

649
00:27:49,480 --> 00:27:50,240
Speaker 3: does is snack.

650
00:27:50,760 --> 00:27:52,640
Speaker 2: Honestly, if I lived at your house, i'd also snack.

651
00:27:52,640 --> 00:27:54,679
Speaker 2: You've got an ice machine to It's fantastic.

652
00:27:55,000 --> 00:27:59,240
Speaker 3: When when I did my baby budgeting, I didn't budget

653
00:27:59,359 --> 00:28:02,680
Speaker 3: for the amount of snacks this tiny gremlin demands.

654
00:28:02,840 --> 00:28:04,919
Speaker 2: Yeah, I know that's like, what do you mean?

655
00:28:05,080 --> 00:28:07,760
Speaker 3: And he's a money loss, he's a bottomless pit anyway,

656
00:28:08,320 --> 00:28:12,280
Speaker 3: So it's an interesting problem. But we've worked out okay, cool,

657
00:28:12,480 --> 00:28:15,000
Speaker 3: well this amount of money, we won't be debt free

658
00:28:15,240 --> 00:28:17,480
Speaker 3: at that point, but this amount of miss so we

659
00:28:17,520 --> 00:28:18,080
Speaker 3: have mortgages.

660
00:28:18,119 --> 00:28:20,800
Speaker 2: I don't own a home, yeah, so for us, it

661
00:28:21,000 --> 00:28:22,000
Speaker 2: won't it look different.

662
00:28:22,080 --> 00:28:25,359
Speaker 3: Yeah, we'll have a financial independent number, but built into

663
00:28:25,520 --> 00:28:29,480
Speaker 3: that islage picture of payments and like our living works. Yeah,

664
00:28:29,520 --> 00:28:31,320
Speaker 3: and I just I look at it and I go, well,

665
00:28:31,320 --> 00:28:32,920
Speaker 3: I don't know what life will look like. I don't

666
00:28:33,000 --> 00:28:35,960
Speaker 3: know if like podcasting is going to be successful forever.

667
00:28:36,200 --> 00:28:39,040
Speaker 3: Like honestly, that's why I have two separate businesses. I

668
00:28:39,120 --> 00:28:41,480
Speaker 3: feel like this is like my fun, shiny one that

669
00:28:41,760 --> 00:28:44,000
Speaker 3: hopefully will last for ages, and like, you know, I

670
00:28:44,080 --> 00:28:46,800
Speaker 3: love financial literacy, but you never know. And then I

671
00:28:46,880 --> 00:28:50,200
Speaker 3: have my more legitimate mortgage broking business, which basically every

672
00:28:50,280 --> 00:28:53,360
Speaker 3: piece of income that goes into that gets reinvested into.

673
00:28:53,440 --> 00:28:55,440
Speaker 2: That is the long term business.

674
00:28:55,640 --> 00:28:55,800
Speaker 1: Yeah.

675
00:28:55,880 --> 00:28:59,320
Speaker 3: So we then have our like investing like or our

676
00:28:59,440 --> 00:29:02,200
Speaker 3: retirement number that we could retire at, but we won't

677
00:29:02,240 --> 00:29:03,920
Speaker 3: be debt free. And I think that's an important thing

678
00:29:04,000 --> 00:29:06,120
Speaker 3: to add because I think a lot of people think

679
00:29:06,160 --> 00:29:08,160
Speaker 3: that you'll have to get to your retirement number and

680
00:29:08,200 --> 00:29:09,280
Speaker 3: you'll have to be debt free.

681
00:29:10,960 --> 00:29:13,520
Speaker 2: A mortgage by the time, Like obviously I'm looking to

682
00:29:13,560 --> 00:29:16,320
Speaker 2: buy a house in the next few years, and by

683
00:29:16,400 --> 00:29:18,480
Speaker 2: the time I would reach my fire number, I wouldn't

684
00:29:18,480 --> 00:29:20,600
Speaker 2: be using that money to pay down my mortgage. I

685
00:29:20,640 --> 00:29:24,200
Speaker 2: would be factoring those mortgage repayments in there. They're my costs,

686
00:29:24,240 --> 00:29:25,960
Speaker 2: there are my cost there are my living expenses.

687
00:29:26,480 --> 00:29:28,600
Speaker 3: And I think that that's an important call out because

688
00:29:28,600 --> 00:29:30,920
Speaker 3: I think a lot of people, especially in the fire community,

689
00:29:31,400 --> 00:29:33,720
Speaker 3: they can be quite aggressive about this, like they want

690
00:29:33,760 --> 00:29:36,160
Speaker 3: to be at their retirement number, but also debt free.

691
00:29:36,320 --> 00:29:38,840
Speaker 2: That's because in America housing is heaps cheaper. Like if

692
00:29:38,880 --> 00:29:40,360
Speaker 2: I used to go and move to Missouri right now,

693
00:29:40,480 --> 00:29:42,239
Speaker 2: I could buy a five bedroom match and for two

694
00:29:42,320 --> 00:29:44,520
Speaker 2: hundred thousand dollars and I could pay all cash, you know,

695
00:29:44,960 --> 00:29:47,000
Speaker 2: but you can't. It's not realistic. And I think that

696
00:29:47,120 --> 00:29:49,120
Speaker 2: that's why it's different market, and that's why it's really

697
00:29:49,160 --> 00:29:52,360
Speaker 2: hard with the fire subreddits because most of them are American.

698
00:29:52,040 --> 00:29:53,320
Speaker 3: And that's why I was like, I really want to

699
00:29:53,320 --> 00:29:55,960
Speaker 3: point out that, like stiff. I'm also working towards this.

700
00:29:56,600 --> 00:29:58,640
Speaker 3: I think it would be a miss to not mention

701
00:29:58,840 --> 00:30:00,600
Speaker 3: that I'm actually going to be debt. I'm going to

702
00:30:00,640 --> 00:30:02,360
Speaker 3: still be in a lot of debt for our mortgage.

703
00:30:03,400 --> 00:30:05,680
Speaker 3: But I'm actually low key fine with that because like,

704
00:30:05,720 --> 00:30:07,680
Speaker 3: it's in your plan, it's in the plan. It's just

705
00:30:07,840 --> 00:30:10,040
Speaker 3: it's our housing cost. And even if we didn't have

706
00:30:10,200 --> 00:30:12,880
Speaker 3: a primary principal place of residence.

707
00:30:12,560 --> 00:30:13,520
Speaker 4: Yeah, whatever we call it.

708
00:30:14,560 --> 00:30:18,080
Speaker 3: So there are lots of different strategies, both internationally and

709
00:30:18,240 --> 00:30:21,800
Speaker 3: in Australia that people are using to reach their fire number.

710
00:30:22,000 --> 00:30:24,520
Speaker 3: I think some of them really focus on capital growth.

711
00:30:24,560 --> 00:30:26,440
Speaker 3: And if you've listened to other episodes with Brooke and I,

712
00:30:26,560 --> 00:30:29,800
Speaker 3: we both love Warren Buffett and like kind of subscribe

713
00:30:29,880 --> 00:30:34,040
Speaker 3: to his investing methodologies, but we also differ a little

714
00:30:34,040 --> 00:30:37,640
Speaker 3: bit in that my yeah, my priorities when picking my

715
00:30:37,760 --> 00:30:41,440
Speaker 3: investments are more dividend yield and like you know, balanced

716
00:30:41,480 --> 00:30:43,640
Speaker 3: with performance, whereas you're like, just shoot lights out, I

717
00:30:43,680 --> 00:30:44,400
Speaker 3: want more performance.

718
00:30:44,440 --> 00:30:45,080
Speaker 4: I don't give you.

719
00:30:45,720 --> 00:30:50,880
Speaker 3: Rats about your didend your dividends. So everybody has a

720
00:30:51,000 --> 00:30:55,480
Speaker 3: different strategy, which means building a portfolio looks in a

721
00:30:55,520 --> 00:30:58,960
Speaker 3: different way, and that's okay. But the idea is that

722
00:30:59,080 --> 00:31:03,080
Speaker 3: every single one of a building a portfolio that increases

723
00:31:03,160 --> 00:31:07,160
Speaker 3: in value over time so that we can eventually live

724
00:31:07,240 --> 00:31:10,320
Speaker 3: off either the dividends from our investments or for some

725
00:31:10,480 --> 00:31:13,360
Speaker 3: people start selling off our investments and living off.

726
00:31:13,320 --> 00:31:15,200
Speaker 2: That without raw down right.

727
00:31:15,360 --> 00:31:15,560
Speaker 5: Yeah.

728
00:31:15,640 --> 00:31:19,040
Speaker 3: And I think some other people, like as we're saying,

729
00:31:19,120 --> 00:31:22,760
Speaker 3: they really focus on income producing assets like me, But

730
00:31:23,000 --> 00:31:26,520
Speaker 3: I'm not an income producing assets early in the investment

731
00:31:26,640 --> 00:31:29,479
Speaker 3: property space, Like I think a lot of people go, oh,

732
00:31:29,560 --> 00:31:31,920
Speaker 3: I could buy a rental property. That's fine, that could

733
00:31:31,920 --> 00:31:33,920
Speaker 3: be part of your strategy, but that's actually not my

734
00:31:34,000 --> 00:31:36,680
Speaker 3: circus nor my monkeys. I don't want to be someone's landlord.

735
00:31:38,360 --> 00:31:40,240
Speaker 3: I don't think I've shared a lot about that, but like,

736
00:31:40,360 --> 00:31:43,280
Speaker 3: over time, I've just realized that's that journey. It's not

737
00:31:43,360 --> 00:31:46,320
Speaker 3: my journey. I just feel like that's not for me,

738
00:31:47,000 --> 00:31:48,880
Speaker 3: and that's okay, but it is for other people.

739
00:31:49,600 --> 00:31:49,880
Speaker 2: Brook.

740
00:31:49,920 --> 00:31:53,240
Speaker 3: I want to talk a little bit about when you're

741
00:31:53,320 --> 00:31:59,000
Speaker 3: building your portfolio with this fire methodology in mind, are you,

742
00:31:59,280 --> 00:32:00,920
Speaker 3: like we've talked about it a little bit in that

743
00:32:01,160 --> 00:32:04,160
Speaker 3: you're just after growth shares at this point in time,

744
00:32:04,320 --> 00:32:07,680
Speaker 3: but like, how does that strategy impact the ETF so

745
00:32:07,760 --> 00:32:09,560
Speaker 3: or the investments that you ultimately pick.

746
00:32:09,880 --> 00:32:12,080
Speaker 2: I think because when I first started investing, I was

747
00:32:12,120 --> 00:32:15,520
Speaker 2: like really young, I was in my early twenties. And my,

748
00:32:16,560 --> 00:32:18,080
Speaker 2: when you read all of these things, and I have

749
00:32:18,200 --> 00:32:20,680
Speaker 2: read literally every investing book on the market.

750
00:32:20,800 --> 00:32:23,800
Speaker 3: I literally just like backtrack. I literally paid her to

751
00:32:23,880 --> 00:32:25,880
Speaker 3: do that, to make Oh my god, we did so fun.

752
00:32:26,160 --> 00:32:28,880
Speaker 3: We did not miss a bloody beat in our investing

753
00:32:28,960 --> 00:32:29,520
Speaker 3: master class.

754
00:32:29,640 --> 00:32:32,000
Speaker 2: Sorry, I spent like three months working on that.

755
00:32:32,120 --> 00:32:35,000
Speaker 4: I was like, day in date, we can't have all

756
00:32:35,040 --> 00:32:36,800
Speaker 4: these other investor what if we miss something that.

757
00:32:37,320 --> 00:32:39,520
Speaker 2: Yeah, it needed to be perfect. And I think I

758
00:32:39,640 --> 00:32:41,680
Speaker 2: learned a lot in that, and even in my early

759
00:32:41,760 --> 00:32:42,920
Speaker 2: twenties that I'm welcome.

760
00:32:43,040 --> 00:32:45,400
Speaker 4: So I basically paid you to get a financial education.

761
00:32:45,520 --> 00:32:47,000
Speaker 2: I know I would love to get a degree. So

762
00:32:47,080 --> 00:32:48,960
Speaker 2: if you want to pay for that, true, I'll just

763
00:32:49,120 --> 00:32:52,560
Speaker 2: draw like me. You'll get Georgian and make one and Adobe.

764
00:32:53,040 --> 00:32:53,240
Speaker 1: Yeah.

765
00:32:54,120 --> 00:32:56,640
Speaker 2: I learned that I have so much time for risk.

766
00:32:56,840 --> 00:32:59,880
Speaker 2: So my strategy when I first started investing was high growth,

767
00:33:00,160 --> 00:33:02,560
Speaker 2: high risk, because I have time for the market to

768
00:33:02,600 --> 00:33:04,200
Speaker 2: go up, I have time for the market to go down,

769
00:33:04,440 --> 00:33:06,280
Speaker 2: and I want to buy at every stage of that.

770
00:33:06,400 --> 00:33:07,760
Speaker 2: I want to buy it when I said it's highest,

771
00:33:07,760 --> 00:33:09,200
Speaker 2: I want to buy it when it's that it's lowest.

772
00:33:09,320 --> 00:33:11,520
Speaker 2: I want to be buying it every single week. So

773
00:33:12,560 --> 00:33:15,320
Speaker 2: my strategy from the beginning was to buy. I didn't

774
00:33:15,320 --> 00:33:18,280
Speaker 2: care about dividends, high growth investments, and ETFs that were

775
00:33:18,480 --> 00:33:21,320
Speaker 2: just high risk. I was happy with the risk. Everything

776
00:33:21,360 --> 00:33:24,400
Speaker 2: was diversified and risky, but I wanted to make sure

777
00:33:24,440 --> 00:33:27,080
Speaker 2: that I was getting at least ten percent return every year.

778
00:33:27,440 --> 00:33:31,200
Speaker 2: Obviously that's averaged out over ten years. But now I

779
00:33:31,240 --> 00:33:34,240
Speaker 2: look at my portfolio and I've been investing consistently since

780
00:33:35,120 --> 00:33:40,440
Speaker 2: twenty eighteen, twenty nineteen, and my strategy really hasn't changed.

781
00:33:40,440 --> 00:33:43,480
Speaker 2: Obviously I've added in more ETFs, in more index funds,

782
00:33:43,520 --> 00:33:45,480
Speaker 2: and some direct shares, but I really don't factor them in.

783
00:33:46,120 --> 00:33:50,400
Speaker 2: My average return since twenty eighteen twenty nineteen, which was

784
00:33:50,480 --> 00:33:54,280
Speaker 2: like six or seven years, is I'm up thirteen point

785
00:33:54,320 --> 00:33:56,960
Speaker 2: seven nine per sex. Yes see, that's good, which is

786
00:33:57,080 --> 00:33:59,600
Speaker 2: really good. So like, my strategy is currently working for me,

787
00:33:59,720 --> 00:34:02,960
Speaker 2: and I'm still picking chairs and ETFs that a ligne

788
00:34:03,000 --> 00:34:05,080
Speaker 2: in that sort of space. But as I get older,

789
00:34:05,360 --> 00:34:09,120
Speaker 2: as I near closer to that fire number, obviously I

790
00:34:09,200 --> 00:34:11,160
Speaker 2: will probably change the way that I invest because I

791
00:34:11,160 --> 00:34:14,440
Speaker 2: don't want as risky options when I am actually beginning

792
00:34:14,480 --> 00:34:17,520
Speaker 2: to draw down, I only want I'm not caring as

793
00:34:17,640 --> 00:34:18,600
Speaker 2: much about the return.

794
00:34:18,680 --> 00:34:21,960
Speaker 3: Yes, and like going back to my financial advisor career,

795
00:34:22,920 --> 00:34:26,000
Speaker 3: that was very true of all of our clients.

796
00:34:26,080 --> 00:34:28,000
Speaker 4: So like the clients that I had that were your age,

797
00:34:28,280 --> 00:34:29,760
Speaker 4: they were very, very risky.

798
00:34:29,920 --> 00:34:32,480
Speaker 3: And the older you get, the more capital stable you're

799
00:34:32,520 --> 00:34:35,240
Speaker 3: looking for because you just don't have the time ahead

800
00:34:35,239 --> 00:34:37,560
Speaker 3: of you. Like if you're like sixty and you're like Victoria,

801
00:34:37,600 --> 00:34:39,839
Speaker 3: I'm here, got my super I've got my investments. I'm

802
00:34:39,880 --> 00:34:42,720
Speaker 3: ready to start like gearing up to retire in five years.

803
00:34:43,320 --> 00:34:46,400
Speaker 3: I'm not looking at you know, high growth, high yield funds.

804
00:34:46,800 --> 00:34:50,080
Speaker 3: I'm looking at capital stable investments to really stabilize what

805
00:34:50,200 --> 00:34:52,759
Speaker 3: you have built and essentially lock it in, Like I

806
00:34:52,880 --> 00:34:55,960
Speaker 3: want to lock and load what you have got, because

807
00:34:56,239 --> 00:34:58,440
Speaker 3: I don't want you to feel those ebbs and flows

808
00:34:58,520 --> 00:35:01,400
Speaker 3: so much once you are retired, because once you're retired,

809
00:35:02,120 --> 00:35:05,160
Speaker 3: you want consistency. You want consistency and you want to

810
00:35:05,239 --> 00:35:08,160
Speaker 3: know that you can trust it. And I would prefer

811
00:35:08,280 --> 00:35:11,800
Speaker 3: you to at that stage switch not everything like this

812
00:35:11,960 --> 00:35:15,040
Speaker 3: is probably a little bit dramatic, but we're switching to going, okay, cool,

813
00:35:15,040 --> 00:35:17,640
Speaker 3: we've got our five percent or our four percent draw

814
00:35:17,760 --> 00:35:19,960
Speaker 3: down rate. I actually just want to be able to

815
00:35:20,040 --> 00:35:22,120
Speaker 3: lock that in for you so that every single year

816
00:35:22,200 --> 00:35:24,160
Speaker 3: you can go, no, I know, I will have an

817
00:35:24,200 --> 00:35:26,720
Speaker 3: income of eighty thousand dollars or fifty or whatever.

818
00:35:26,960 --> 00:35:28,560
Speaker 2: It's less about growing that capital.

819
00:35:28,680 --> 00:35:31,440
Speaker 3: Yeah, it's less about the capital increasing. It's more about

820
00:35:32,000 --> 00:35:35,040
Speaker 3: having a consistent income. Because right now, if your portfolio

821
00:35:35,200 --> 00:35:38,239
Speaker 3: is performing one year thirteen percent, the next year it

822
00:35:38,320 --> 00:35:40,640
Speaker 3: could do negative five. And that's okay because it doesn't

823
00:35:40,680 --> 00:35:44,160
Speaker 3: matterfy now. But imagine if you don't work. Imagine if

824
00:35:44,200 --> 00:35:46,359
Speaker 3: you were like, okay, cool, I'm banking on this eighty

825
00:35:46,440 --> 00:35:49,400
Speaker 3: grand coming in, and then the year after it's like, sorry, you're.

826
00:35:49,239 --> 00:35:51,480
Speaker 2: Put down here twenty percent and you get nothing.

827
00:35:51,520 --> 00:35:54,400
Speaker 4: You lost something. You also can't afford to draw down.

828
00:35:54,239 --> 00:35:56,080
Speaker 2: On that, Like, then your life's soffix.

829
00:35:56,360 --> 00:35:58,759
Speaker 3: Yeah, And I feel like we just want stability at

830
00:35:58,800 --> 00:36:00,880
Speaker 3: that point. So when you are a bit younger and

831
00:36:00,960 --> 00:36:04,279
Speaker 3: you can ride that risk ride, great, let's do that.

832
00:36:04,440 --> 00:36:06,719
Speaker 3: But it's never going to be And that's why I'm like, oh,

833
00:36:06,760 --> 00:36:07,000
Speaker 3: I'm not.

834
00:36:07,040 --> 00:36:09,560
Speaker 2: What a strategy forever. It's not certain forget, it's you

835
00:36:09,640 --> 00:36:10,719
Speaker 2: need a free check.

836
00:36:10,800 --> 00:36:12,600
Speaker 4: Like we can set and forget for twelve months, we

837
00:36:12,640 --> 00:36:14,320
Speaker 4: can get for twenty four months.

838
00:36:14,160 --> 00:36:16,279
Speaker 2: But not for thirty years. I think that's not. One

839
00:36:16,320 --> 00:36:17,960
Speaker 2: thing that's really interesting that I found when I was

840
00:36:18,000 --> 00:36:22,120
Speaker 2: researching for the Investing Masterclass. Something that America does really well.

841
00:36:22,200 --> 00:36:23,560
Speaker 2: We don't really have it here, but I feel like

842
00:36:23,640 --> 00:36:25,000
Speaker 2: in the next few years we might have it is

843
00:36:25,080 --> 00:36:28,360
Speaker 2: target date funds. Yes, so target date funds. Basically, it

844
00:36:28,440 --> 00:36:31,160
Speaker 2: might be a fund that's called year twenty to fifty

845
00:36:31,239 --> 00:36:32,920
Speaker 2: and it's based on the year that you would like

846
00:36:33,000 --> 00:36:35,680
Speaker 2: to retire, and you invest in that and then as

847
00:36:35,880 --> 00:36:38,880
Speaker 2: you get closer to that age. So say the portfolio

848
00:36:39,000 --> 00:36:40,920
Speaker 2: right now for a target date fund for year fifty

849
00:36:41,360 --> 00:36:44,680
Speaker 2: might be seventy percent really high risk. But as you

850
00:36:45,000 --> 00:36:46,920
Speaker 2: age and you people do it, they do the stage

851
00:36:47,200 --> 00:36:51,799
Speaker 2: everything you forget a managed fund, they wind down your risk. Yeah,

852
00:36:51,840 --> 00:36:54,479
Speaker 2: they slowly change it and rebalance the portfolio to suit

853
00:36:54,600 --> 00:36:56,480
Speaker 2: where you're at in your life stage. I think that's

854
00:36:56,520 --> 00:36:59,120
Speaker 2: such an interesting way of investing, and like we don't

855
00:36:59,200 --> 00:37:00,920
Speaker 2: have access to that in Australia, but I think for

856
00:37:01,040 --> 00:37:04,319
Speaker 2: like Americans, that's so good because if you don't feel

857
00:37:04,440 --> 00:37:07,120
Speaker 2: educated enough to make all of those decisions about your risk,

858
00:37:07,560 --> 00:37:09,520
Speaker 2: well okay, what are they doing? What can I look

859
00:37:09,560 --> 00:37:12,080
Speaker 2: out and think, okay, well let's do that. So when

860
00:37:12,120 --> 00:37:14,239
Speaker 2: I was researching for the Messy Masks, I remember looking

861
00:37:14,239 --> 00:37:17,320
Speaker 2: at thing that's such an interesting way to invest and

862
00:37:17,360 --> 00:37:19,080
Speaker 2: I think in Australia we might see something.

863
00:37:18,960 --> 00:37:19,680
Speaker 4: Like that in the future.

864
00:37:19,880 --> 00:37:23,759
Speaker 3: Yeah, they're coming, They're absolutely coming. They're coming, and I'm

865
00:37:23,800 --> 00:37:26,160
Speaker 3: seeing a lot of people, like I'm still on all

866
00:37:26,200 --> 00:37:29,040
Speaker 3: of the edms for all of the financial advice houses

867
00:37:29,040 --> 00:37:32,879
Speaker 3: because like I haven't left them yet. They're definitely being

868
00:37:32,960 --> 00:37:36,120
Speaker 3: looked into if we pivot a little bit. I feel

869
00:37:36,160 --> 00:37:41,520
Speaker 3: like fire feels heavy, Like for me, I'm investing, but

870
00:37:41,640 --> 00:37:44,239
Speaker 3: I definitely wouldn't subscribe to saying that I am a

871
00:37:44,360 --> 00:37:47,440
Speaker 3: fire person. Like, yes, I want to retire early. Yes

872
00:37:47,480 --> 00:37:50,120
Speaker 3: I want to have financial freedom, but like I also

873
00:37:50,800 --> 00:37:53,160
Speaker 3: I probably love my lifestyle a little bit more than you.

874
00:37:54,000 --> 00:37:55,360
Speaker 2: Like I'm happy to sacrifice eaves.

875
00:37:55,680 --> 00:37:57,320
Speaker 4: Yeah, and like I'm kind of just in that.

876
00:37:58,080 --> 00:38:01,399
Speaker 3: Like, honestly, before kids, Steve and I were very good

877
00:38:01,440 --> 00:38:03,759
Speaker 3: at being a little bit more frugal and getting stuff done,

878
00:38:03,800 --> 00:38:06,160
Speaker 3: and like I was very aggressive getting out of debt

879
00:38:06,160 --> 00:38:08,840
Speaker 3: and whatnot, and now we're kind of in the I

880
00:38:08,920 --> 00:38:11,960
Speaker 3: can't even breathe sometimes, Like life is really stressful, work

881
00:38:12,080 --> 00:38:14,759
Speaker 3: is really stressful, and like it's okay, that's definitely not

882
00:38:14,840 --> 00:38:17,040
Speaker 3: a complaint, Like what a bloody privilege to be stressed

883
00:38:17,040 --> 00:38:18,080
Speaker 3: by something I created.

884
00:38:18,400 --> 00:38:20,360
Speaker 4: Like that's good, there's no complaints.

885
00:38:20,440 --> 00:38:22,920
Speaker 3: But like that does mean I am a little bit

886
00:38:23,120 --> 00:38:28,240
Speaker 3: more convenient with my spending, Like I am probably spending

887
00:38:28,280 --> 00:38:29,880
Speaker 3: more on ub eats than I would like to. But

888
00:38:29,920 --> 00:38:32,239
Speaker 3: I'm telling you right now, like for me, in this

889
00:38:33,280 --> 00:38:34,719
Speaker 3: the heart of my life, I'm so.

890
00:38:34,800 --> 00:38:35,560
Speaker 4: Happy to do that.

891
00:38:36,200 --> 00:38:38,280
Speaker 3: But I want to know, is there like a specific

892
00:38:38,360 --> 00:38:41,040
Speaker 3: have it or an investing rule or something you've put

893
00:38:41,120 --> 00:38:44,840
Speaker 3: on yourself that has made getting closer to fight easier

894
00:38:44,920 --> 00:38:47,400
Speaker 3: without feeling like you're compromising your entire lifestyle.

895
00:38:47,560 --> 00:38:51,880
Speaker 2: Well, because I pay myself weekly, my investments come out first.

896
00:38:52,000 --> 00:38:54,880
Speaker 2: So every Friday, I pay myself a spending money. I

897
00:38:54,920 --> 00:38:58,160
Speaker 2: have a spending account. Money goes into my investments come

898
00:38:58,200 --> 00:39:00,719
Speaker 2: out of my pay account, so I never see it,

899
00:39:01,120 --> 00:39:03,000
Speaker 2: I don't touch it, and I never change it. So

900
00:39:03,160 --> 00:39:06,080
Speaker 2: at a minimum, every single week, six hundred fift dollars

901
00:39:06,120 --> 00:39:08,279
Speaker 2: gets put in that account, and if I get paid

902
00:39:08,320 --> 00:39:10,120
Speaker 2: a bit more, or my side hustle pays off a

903
00:39:10,120 --> 00:39:12,000
Speaker 2: little bit more, I put a little bit extra in.

904
00:39:12,360 --> 00:39:15,359
Speaker 2: But I never invest less than six hundred fifty dollars

905
00:39:15,480 --> 00:39:16,000
Speaker 2: every week.

906
00:39:16,600 --> 00:39:18,000
Speaker 4: And that's insane to me.

907
00:39:18,400 --> 00:39:20,840
Speaker 2: It's crazy, I know, but I think it's because I

908
00:39:20,960 --> 00:39:23,560
Speaker 2: started just investing that little extra bit. So like when

909
00:39:23,560 --> 00:39:27,160
Speaker 2: I first started average investing, like I was investing twenty

910
00:39:27,200 --> 00:39:28,800
Speaker 2: five dollars a week, and then when I got a

911
00:39:28,880 --> 00:39:30,960
Speaker 2: better paying job, it was one hundred fifty dollars a week,

912
00:39:30,960 --> 00:39:32,160
Speaker 2: and then it was two hundred five dollars. But I

913
00:39:32,280 --> 00:39:35,399
Speaker 2: literally haven't changed my fixed expenses at all. And then

914
00:39:35,480 --> 00:39:37,000
Speaker 2: I was lucky for a period of time. When I

915
00:39:37,040 --> 00:39:39,400
Speaker 2: moved back to Perth, I wasn't paying rent, so I

916
00:39:39,480 --> 00:39:41,799
Speaker 2: had that rental income, that rental income that I had

917
00:39:41,960 --> 00:39:46,160
Speaker 2: thanks Steslie, I invested that rental income into the share market,

918
00:39:46,239 --> 00:39:48,000
Speaker 2: so I was investing in extra two hudred fifty dollars

919
00:39:48,040 --> 00:39:50,120
Speaker 2: a week. Now that I am paying rent again, obviously

920
00:39:50,280 --> 00:39:52,600
Speaker 2: i'm investing less because I have to pay rent, but

921
00:39:53,560 --> 00:39:55,480
Speaker 2: I had that little extra, So every time I can

922
00:39:55,680 --> 00:39:58,200
Speaker 2: give myself a little bit of a boost because compound

923
00:39:58,280 --> 00:39:59,840
Speaker 2: interest is and time in the market is going to

924
00:39:59,880 --> 00:40:01,960
Speaker 2: make more difference in how much I'm investing over the

925
00:40:02,040 --> 00:40:04,680
Speaker 2: long term. So the earlier I can get the money in,

926
00:40:04,760 --> 00:40:06,640
Speaker 2: the better. So if I can sacrifice a little bit

927
00:40:06,719 --> 00:40:09,160
Speaker 2: now in the future, I won't have to sacrifice as much.

928
00:40:09,239 --> 00:40:09,600
Speaker 1: I like it.

929
00:40:09,680 --> 00:40:12,440
Speaker 4: We're just girls. So on the flip side, what are

930
00:40:12,480 --> 00:40:13,920
Speaker 4: you not willing to sacrifice?

931
00:40:14,560 --> 00:40:17,680
Speaker 2: Travel? If you know me, I've been to like over

932
00:40:17,760 --> 00:40:19,879
Speaker 2: forty countries. I think I'll get to like forty seven

933
00:40:19,880 --> 00:40:21,359
Speaker 2: this year because I'm going to Europe for three months.

934
00:40:21,520 --> 00:40:24,359
Speaker 2: God bless. But I always say for travel. Every week,

935
00:40:24,440 --> 00:40:26,640
Speaker 2: I save like two dollars a week for travel. And

936
00:40:26,680 --> 00:40:28,520
Speaker 2: it probably sounds like I save a lot of money

937
00:40:28,800 --> 00:40:31,480
Speaker 2: and then spend a lot on weird things. But my

938
00:40:31,680 --> 00:40:34,520
Speaker 2: value is travel. So people drink, I didn't drink, so

939
00:40:34,960 --> 00:40:37,360
Speaker 2: that money goes into travel funds. I will always have

940
00:40:37,520 --> 00:40:39,360
Speaker 2: money to travel and do fun things like that. But

941
00:40:39,480 --> 00:40:41,239
Speaker 2: that means if I want to travel, I need to

942
00:40:41,280 --> 00:40:44,280
Speaker 2: be savvy with it. So ipoints HAC. I just booked

943
00:40:44,320 --> 00:40:46,960
Speaker 2: flights literally yesterday with points to go to Takanana.

944
00:40:47,040 --> 00:40:47,840
Speaker 4: I'm excited about it.

945
00:40:48,600 --> 00:40:52,000
Speaker 2: You didn't tell me literally only literally. Yesterday we're in Tasmania.

946
00:40:52,320 --> 00:40:54,000
Speaker 2: We go to Hoba. But then Connor and I are

947
00:40:54,080 --> 00:40:58,319
Speaker 2: doing just getting shine see Harriet. We could we're doing

948
00:40:58,400 --> 00:41:00,560
Speaker 2: a road job. I've never been Tasy my state. I

949
00:41:00,600 --> 00:41:02,920
Speaker 2: have to visit. So I we're going to do a

950
00:41:03,000 --> 00:41:05,240
Speaker 2: road trip in like early late December.

951
00:41:05,520 --> 00:41:07,360
Speaker 4: I am going to give you my laundry.

952
00:41:07,560 --> 00:41:08,759
Speaker 2: But I want all the recommendation.

953
00:41:08,880 --> 00:41:10,680
Speaker 3: I have all the good coffee spots, I have all

954
00:41:10,719 --> 00:41:12,360
Speaker 3: the good restaurants need I want to have all the

955
00:41:12,440 --> 00:41:15,560
Speaker 3: good hikes. There's a hike that I will specifically send

956
00:41:15,600 --> 00:41:17,359
Speaker 3: you to on the East coast. That is just it's

957
00:41:17,400 --> 00:41:20,080
Speaker 3: Wombat Central. That's just see the animals.

958
00:41:20,160 --> 00:41:21,279
Speaker 2: I want a little square poop.

959
00:41:21,400 --> 00:41:21,600
Speaker 5: Yeah.

960
00:41:21,640 --> 00:41:23,520
Speaker 2: So I won't ever sacrifice in trouble, but I'll just

961
00:41:23,600 --> 00:41:25,319
Speaker 2: be savvy with it. I'll be using shot back, I'll

962
00:41:25,360 --> 00:41:27,440
Speaker 2: be using like points. I'm making sure that I can

963
00:41:27,480 --> 00:41:29,360
Speaker 2: still do the things I want to do, but just

964
00:41:29,440 --> 00:41:31,360
Speaker 2: in a savvy way. I don't care about a faster hotel.

965
00:41:31,760 --> 00:41:34,719
Speaker 2: I've got no no rules about that. I'll just make

966
00:41:34,760 --> 00:41:37,000
Speaker 2: sure I can still live my life. But I'm not

967
00:41:37,040 --> 00:41:38,640
Speaker 2: spending money on you because I don't value you.

968
00:41:38,800 --> 00:41:40,320
Speaker 3: I feel like a lot of people are listening to

969
00:41:40,400 --> 00:41:45,160
Speaker 3: this episode and they would absolutely love to retire early,

970
00:41:45,440 --> 00:41:47,800
Speaker 3: like they would love this, but they're like, this is

971
00:41:47,920 --> 00:41:50,200
Speaker 3: just not feasible for me. And that's fine because I

972
00:41:50,239 --> 00:41:53,160
Speaker 3: think some of us are too far down our financial

973
00:41:53,239 --> 00:41:56,480
Speaker 3: journeys and our financial commitments. Take step back, to take

974
00:41:56,520 --> 00:41:58,759
Speaker 3: a step back, and that step back would be you know,

975
00:41:59,000 --> 00:42:01,640
Speaker 3: someone might listen to this and be like, holy gulco Moly,

976
00:42:01,719 --> 00:42:03,439
Speaker 3: I am so inspired by this. I'm going to change

977
00:42:03,480 --> 00:42:07,000
Speaker 3: my entire mindset. But that's a lot to ask for,

978
00:42:07,360 --> 00:42:09,600
Speaker 3: because you're not just changing the way you think about money,

979
00:42:09,760 --> 00:42:11,320
Speaker 3: you're changing the way that you would act with it,

980
00:42:11,480 --> 00:42:15,239
Speaker 3: how you would live the like decisions self sacrifice.

981
00:42:14,760 --> 00:42:15,600
Speaker 2: Yes exactly.

982
00:42:16,440 --> 00:42:19,760
Speaker 3: But as I said earlier, like fire does seem relatively

983
00:42:19,800 --> 00:42:22,440
Speaker 3: extreme for a lot of people. What would be your

984
00:42:22,520 --> 00:42:25,399
Speaker 3: investing advice to somebody who's maybe gotten a little bit

985
00:42:25,520 --> 00:42:28,440
Speaker 3: further down that track of like, you know, let's pretend

986
00:42:28,520 --> 00:42:31,120
Speaker 3: I don't invest and I go well Brook, Actually that

987
00:42:31,239 --> 00:42:34,200
Speaker 3: sounds slay. I have a mortgage, I have a husband,

988
00:42:34,280 --> 00:42:38,000
Speaker 3: I have a kid, Like I actually have these financial commitments.

989
00:42:38,840 --> 00:42:39,600
Speaker 4: What's your advice?

990
00:42:39,960 --> 00:42:42,319
Speaker 2: Where can you cut corners that isn't going to make

991
00:42:42,360 --> 00:42:44,840
Speaker 2: a big difference. So, like you said, you like Uber eatsing,

992
00:42:44,960 --> 00:42:47,960
Speaker 2: I really don't Uber eads because I could just walk there,

993
00:42:48,400 --> 00:42:50,920
Speaker 2: or I could you know, or maybe I'm changing my

994
00:42:51,000 --> 00:42:53,040
Speaker 2: shopping from shopping at will Worse every day to shopping

995
00:42:53,040 --> 00:42:55,480
Speaker 2: at Aldi once a week, or just make those little

996
00:42:55,520 --> 00:42:58,040
Speaker 2: sacrifices so that I could slowly increase my savings rate.

997
00:42:58,160 --> 00:43:01,040
Speaker 2: What could you change your savings by one percent? Because

998
00:43:01,040 --> 00:43:02,360
Speaker 2: that one percent you're saving.

999
00:43:02,160 --> 00:43:04,520
Speaker 4: Now now do not make me look at my budget.

1000
00:43:04,280 --> 00:43:05,880
Speaker 2: Literally, But if you could save that an extra one

1001
00:43:05,920 --> 00:43:08,359
Speaker 2: percent or that extra five percent and invest that, that's

1002
00:43:08,440 --> 00:43:10,440
Speaker 2: really going to pay off. Like those small amounts. If

1003
00:43:10,480 --> 00:43:12,880
Speaker 2: you use a compound interest calculator and you change how

1004
00:43:12,960 --> 00:43:15,680
Speaker 2: much you're investing by five dollars or twenty dollars, so

1005
00:43:15,880 --> 00:43:19,000
Speaker 2: Sidney can massive term If you invest one hundred dollars

1006
00:43:19,080 --> 00:43:21,879
Speaker 2: from the ages of twenty to thirty and then stop

1007
00:43:22,000 --> 00:43:25,720
Speaker 2: investing at thirty and reach fifty, the person that starts

1008
00:43:25,760 --> 00:43:28,440
Speaker 2: investing at thirty and invests consistently from thirty to fifty

1009
00:43:28,600 --> 00:43:31,080
Speaker 2: will never catch up even though you stopped investing after

1010
00:43:31,160 --> 00:43:33,680
Speaker 2: ten years. Yeah, like I'll make it's real for our

1011
00:43:33,719 --> 00:43:35,759
Speaker 2: Instagram to explain that where this goes out, we will be.

1012
00:43:35,920 --> 00:43:38,120
Speaker 4: Like all of that stuff is already in our masterclass,

1013
00:43:38,160 --> 00:43:41,480
Speaker 4: that it is hundred nine and you.

1014
00:43:41,600 --> 00:43:43,799
Speaker 2: Just have to make tiny little sacrifices to increase your

1015
00:43:43,840 --> 00:43:46,120
Speaker 2: savings rate. What ways could you increase your savings rate?

1016
00:43:46,160 --> 00:43:48,600
Speaker 2: Are you calling your phone provided to say, hey, I

1017
00:43:48,719 --> 00:43:50,960
Speaker 2: currently pay ninety dollars a month for my phone? Could

1018
00:43:50,960 --> 00:43:52,600
Speaker 2: you get it down to forty? Because I got my

1019
00:43:52,640 --> 00:43:54,640
Speaker 2: phone deal down to thirty nine dollars a month, so

1020
00:43:54,800 --> 00:43:58,160
Speaker 2: that extra bit? Okay, great, I'm investing it every little

1021
00:43:58,239 --> 00:44:00,880
Speaker 2: cent that you can using roundups? What can yet, what

1022
00:44:01,080 --> 00:44:03,160
Speaker 2: little changes could you make to increase that savings right?

1023
00:44:03,280 --> 00:44:04,719
Speaker 2: Just a little bit. That's why I would tell.

1024
00:44:04,640 --> 00:44:07,680
Speaker 4: You agreed, Brooke, we have run out of time very quickly.

1025
00:44:08,320 --> 00:44:10,600
Speaker 3: Thank you so much for coming back on the show

1026
00:44:10,640 --> 00:44:13,840
Speaker 3: and letting us be very pervy about your investing journey.

1027
00:44:13,880 --> 00:44:14,360
Speaker 2: You're welcome.

1028
00:44:14,480 --> 00:44:16,320
Speaker 4: I know this episode, I don't know.

1029
00:44:16,520 --> 00:44:19,360
Speaker 3: I feel like, yes, I can do so many educational episodes,

1030
00:44:19,400 --> 00:44:22,120
Speaker 3: but the best thing is to learn from example and

1031
00:44:22,200 --> 00:44:24,319
Speaker 3: see what other people are actually doing, so you can go, oh,

1032
00:44:24,400 --> 00:44:25,560
Speaker 3: that would work or that wouldn't work.

1033
00:44:25,600 --> 00:44:27,520
Speaker 2: As theory is theory, and I think.

1034
00:44:27,440 --> 00:44:29,719
Speaker 3: That this will shift a lot of perspectives, not just

1035
00:44:29,800 --> 00:44:33,360
Speaker 3: around fire, but more around what's actually possible when you

1036
00:44:33,560 --> 00:44:38,080
Speaker 3: start investing with intention. So thank you for coming on

1037
00:44:38,200 --> 00:44:41,440
Speaker 3: the show and very sorry we've run out of time. Okay, guys,

1038
00:44:41,560 --> 00:44:43,800
Speaker 3: if you have loved this chat, please make sure you

1039
00:44:43,920 --> 00:44:46,400
Speaker 3: hit subscribe so that you never missed an episode with us.

1040
00:44:46,480 --> 00:44:48,560
Speaker 3: And if you've got a friend who's been maybe flirting

1041
00:44:48,640 --> 00:44:52,680
Speaker 3: with the idea of investing or retiring early, please send.

1042
00:44:52,560 --> 00:44:53,479
Speaker 2: This their way.

1043
00:44:54,000 --> 00:44:56,680
Speaker 3: We love a group glow up. So that is all

1044
00:44:56,719 --> 00:44:58,640
Speaker 3: from us today, but we'll be back in your ears

1045
00:44:58,719 --> 00:45:00,359
Speaker 3: on Friday. See than guys, spy.

1046
00:45:06,880 --> 00:45:09,400
Speaker 5: The advice shared on She's on the Money is general

1047
00:45:09,480 --> 00:45:13,320
Speaker 5: in nature and does not consider your individual circumstances. She's

1048
00:45:13,360 --> 00:45:16,760
Speaker 5: on the Money exists purely for educational purposes and should

1049
00:45:16,840 --> 00:45:20,000
Speaker 5: not be relied upon to make an investment or financial decision.

1050
00:45:20,400 --> 00:45:22,839
Speaker 5: If you do choose to buy a financial product, read

1051
00:45:22,880 --> 00:45:27,000
Speaker 5: the PDS TMD and obtain appropriate financial advice tailored towards

1052
00:45:27,040 --> 00:45:30,319
Speaker 5: your needs. Victoria Divine and She's on the Money are

1053
00:45:30,400 --> 00:45:32,359
Speaker 5: authorized representatives of Money.

1054
00:45:32,400 --> 00:45:34,319
Speaker 2: Shepper Pty Ltd.

1055
00:45:34,239 --> 00:45:37,680
Speaker 5: ABN three two one six four nine two seven seven

1056
00:45:37,840 --> 00:45:41,279
Speaker 5: zero eight AFSL four five one two eight nine