Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before
Speaker 1: we get started on She's on the Money podcast, I
Speaker 1: would like to acknowledge the traditional custodians of the land
Speaker 1: of which this podcast is recorded on a wondery country,
Speaker 1: acknowledging the elders, the ancestors and the next generation coming
Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing
Speaker 1: and the storytelling of you to make a difference for
Speaker 1: today and lasting impact for tomorrow.
Speaker 2: Let's get into it.
Speaker 3: She's on the Money, She's on the Money.
Speaker 4: Hello, and welcome to She's on the Money, the podcast
Speaker 4: for people who want financial freedom. We're still in the
Speaker 4: first quarter of twenty twenty four, and if it was
Speaker 4: your year to start investing and you haven't gone around
Speaker 4: to thinking about it yet, then that's quite a right.
Speaker 2: Well, it has to be, because that's the boat you're
Speaker 2: in right now. Reality. Whatever we're going to get through relatable.
Speaker 2: That's why we're doing this today.
Speaker 4: We are going to give you a gentle nudge to
Speaker 4: help with the first steps, because the first step is
Speaker 4: often the hardest.
Speaker 2: Isn't that right? I feel like it is the hardest.
Speaker 2: That's the hardest.
Speaker 5: I mean you downloaded investing platform though, yeah, And does
Speaker 5: it feel as scary now you've downloaded it, You're like, oh,
Speaker 5: this doesn't feel as intimidating.
Speaker 2: Yeah, totally.
Speaker 4: And we did do that episode recently where you kind
Speaker 4: of broke it down for me.
Speaker 5: And I'm going to do it again because that's exactly
Speaker 5: what we're talking about today. We're talking about how to
Speaker 5: create an investment strategy. We've obviously done so many episodes
Speaker 5: on She's on the Money about investing.
Speaker 2: So as we go through this episode and.
Speaker 5: If previous topics that I have already covered come up,
Speaker 5: I'll actually point you to those episodes we've gone through
Speaker 5: and basically timestamped it.
Speaker 2: Beckt.
Speaker 5: The links are also going to be in our show
Speaker 5: notes for today, so don't worry, you don't have to
Speaker 5: write them all down.
Speaker 2: But I'm a bit biased.
Speaker 5: I think we've got a few good ones, and I've
Speaker 5: highlighted four that I think everyone needs to listen to
Speaker 5: for the first time. If you haven't, and if you
Speaker 5: have listened to these episodes, given one of them from
Speaker 5: twenty twenty one. Probably time for you to go back
Speaker 5: and have a re listen, right, So from the tenth
Speaker 5: of March twenty twenty one, listen at your own risk.
Speaker 2: Profile cod DO one. That's a good one. I do
Speaker 2: think I'm kind of funny though. That's pretty funny.
Speaker 5: I think that's a good one to talk about because
Speaker 5: we're going to be talking about risk profiles a little
Speaker 5: bit later on h We've got the fourth of May
Speaker 5: twenty twenty two. Different kinds of investing platforms. So this
Speaker 5: episode I really break down what types of platforms are
Speaker 5: out there, why you might use one over the other,
Speaker 5: and what they look like, because I feel like so
Speaker 5: many times people get analysis paralysis over what type of
Speaker 5: investing platform they should choose, and they might go, oh, Beck,
Speaker 5: what did you choose? And you go shares these and
Speaker 5: they go, oh my gosh, like my friend uses that,
Speaker 5: but then my other friend uses this other platform, Like
Speaker 5: what's the best? The best thing is working it out
Speaker 5: for yourself. From the first of March twenty twenty three,
Speaker 5: so this is like going back nearly twelve months, we
Speaker 5: did an episode back to Basics of Investing, which I
Speaker 5: think is a good one for everybody to listen to.
Speaker 5: Won't explain that one because it's actually pretty self explanatory
Speaker 5: what we actually go through in that episode. And then
Speaker 5: from the fifth of April twenty twenty three, we did
Speaker 5: an episode called Investing on a Low Income and that
Speaker 5: one I have slid in there because I think it's
Speaker 5: really important to I guess preface that you don't need
Speaker 5: to have a lot of money to start your investing journey.
Speaker 5: In fact, there are investing platforms now let you invest
Speaker 5: with as little.
Speaker 2: As one cent.
Speaker 5: Love it, and I don't think investing can get more
Speaker 5: accessible than that, especially so right now I'm talking about
Speaker 5: Chares's as a platform, not a paid mention. Obviously I
Speaker 5: work with them. I just like talking about them. But
Speaker 5: if you use the code SotM Beck get free ten
Speaker 5: dollars that is, so that's money, and then you can
Speaker 5: invest with as little as one cent, you could buy
Speaker 5: so many shares and have a double and it didn't
Speaker 5: even cost you a thing.
Speaker 2: I love it. Money win.
Speaker 4: I did notice you dropped the pun after your first
Speaker 4: investing episode, which I appreciate.
Speaker 2: I hope that this episode goes out with.
Speaker 4: The pun just got really boring. Yeah, that's okay. She
Speaker 4: got boring.
Speaker 2: Do you want to know why?
Speaker 1: Why?
Speaker 5: I need to also make these episodes findable for the
Speaker 5: people that are that. Like so many times I'd be
Speaker 5: like sitting down really trying to think about, like how
Speaker 5: to paraphrase another one of Beyonce's songs to make it
Speaker 5: fit into my title, And I was like, yeah, I
Speaker 5: guess it's like important. But if you want to look
Speaker 5: at that punny one, listen to your risk profile works
Speaker 5: because you might type in risk profile She's on the money,
Speaker 5: because that's what you want to learn.
Speaker 2: But if I've gone too rogue, you're not going to
Speaker 2: find the content.
Speaker 5: I went a little bit more basic. I promised I
Speaker 5: didn't lose my spark. I actually just thought it might
Speaker 5: be more helpful for listeners totally.
Speaker 4: All if you're looking for a Beyonce song, you might
Speaker 4: stumble across this and it will change your life. But anyway,
Speaker 4: exactly after the break, we are going to give you
Speaker 4: six steps to take to create your investment strategy. But
Speaker 4: first let's talk mindset, because that really is often the
Speaker 4: biggest hurdle.
Speaker 2: Yeah, and like.
Speaker 5: You've probably heard me talk about it before. Before I
Speaker 5: was a financial advisor. I worked in psychology. I have
Speaker 5: two psychology degrees. When I got out of school, I
Speaker 5: didn't want to not go to university, started something that
Speaker 5: I obviously ended up not loving as much but now
Speaker 5: adore because at the end of the day, to me,
Speaker 5: money is inherently emotional. It is inherently about your psychology
Speaker 5: and not actually that much about maths.
Speaker 2: Right Like, at the end of the day, it's.
Speaker 5: Your thoughts, your feelings, your beliefs, and your behaviors around money.
Speaker 5: It's actually not got a lot to do with how
Speaker 5: well you can add up the numbers or how hard
Speaker 5: you work, because some of the hardest workers we know
Speaker 5: back free to array all of their money. And then
Speaker 5: some people that we know on really low incomes are
Speaker 5: the best investors that I've ever met. Right, So, especially
Speaker 5: got not a lot to do with your finance literacy
Speaker 5: when it comes to the numbers, but more around your
Speaker 5: literacy when it comes to understanding you and why and
Speaker 5: when and where and how. So I would say mindset
Speaker 5: is truly the cornerstone when it comes to creating an
Speaker 5: investment strategy, and it's often the biggest hurdle for us
Speaker 5: to face because it's hard. The challenge lies in the
Speaker 5: psychological barriers that we actually build around money, whether we
Speaker 5: know we're doing it or not. So fear of the unknown,
Speaker 5: the anxiety of potential losses, and the overwhelming feeling that
Speaker 5: investing is reserved for the financially elite.
Speaker 4: Beck.
Speaker 5: We've grown up in a culture that doesn't always encourage
Speaker 5: open conversations about money, and as a result, many of
Speaker 5: us approach investing with a sense of trepidation. Additionally, the
Speaker 5: fear of making the wrong choice can be absolutely paralyzing. However,
Speaker 5: it's crucial to reframe our mindset and vie investing as
Speaker 5: a tool for financial empowerment and long term growth. Beck.
Speaker 5: If we're addressing these mental roadblocks, we can actually open
Speaker 5: ourselves up to a world of investment possibilities as lay
Speaker 5: that sounds, and we can take really confident strides towards
Speaker 5: our financial goals. And at the end of the day,
Speaker 5: I think every single person in our community and even
Speaker 5: sitting at this table, is going to be like, yeah,
Speaker 5: well that's kind of what I want. Like, I do
Speaker 5: want to be confident with money. I do want to
Speaker 5: be like empowered for the future and have long term
Speaker 5: growth and you know, not be absolutely screwed. When it
Speaker 5: comes to money in my older age, right, like, that's
Speaker 5: inherently what we want. But remember, it's not actually about
Speaker 5: where you start. It's about taking the first step with
Speaker 5: intention and purpose because we're all going to start at
Speaker 5: different places. You are starting at a different place than
Speaker 5: I am. And if you start comparing yourself to me,
Speaker 5: where do we get, You're then comparing yourself to an
Speaker 5: ex financial advisor. And obviously I would love to think
Speaker 5: that I've got it pretty sorted out, Beck, whereas you've
Speaker 5: not done that. And that's okay, But we need to
Speaker 5: kind of put our blinkers on, as I say all
Speaker 5: the time, and just look at our journey and our.
Speaker 2: Pathway and celebrate our successes. Well, that is powerful.
Speaker 4: Would be a motivational speaker, Oh, I try on, very
Speaker 4: good last, Ye've.
Speaker 5: Got it, I've got I actually want to talk about
Speaker 5: financial literacy, not just motivating people.
Speaker 2: Well, you're doing very very good both. I'm glad you're
Speaker 2: feeling motivated.
Speaker 4: Okay, So V, I'm going to make some statements and
Speaker 4: I'd love you to respond to them. Is that okay?
Speaker 4: Of course a game, It's a game. Okay, So how
Speaker 4: about this one? I'm too broke to invest, Laz.
Speaker 5: It's a very common misconception that you need a super
Speaker 5: substantial amount of money to start investing. As I said, before,
Speaker 5: investing was often seen as reserved for the financially elite,
Speaker 5: and that's a joke. Absolutely, it is not. It's all
Speaker 5: fair in love and war. Nowadays totally anyone can get
Speaker 5: in on it. You don't need to be rolling in
Speaker 5: cash to start your investment journey. The beauty of investing
Speaker 5: is that it's adaptable to various financial situations, even if
Speaker 5: you feel like your budget is really tight. They are
Speaker 5: actually ways to start small. With as little as literally
Speaker 5: one cent, you can make your initial move in the
Speaker 5: investing game. Platforms like micro investing platforms make it also
Speaker 5: really easy to dip your toes into the market without
Speaker 5: breaking your bank, but also without doing too much analysis paralysis.
Speaker 5: Often micro investing platforms and the two that are most
Speaker 5: common in our community or most popular, Spaceship and Raise.
Speaker 5: Both of those are different platforms. Go and listen to
Speaker 5: that episode on different kinds of investing Platforms from the
Speaker 5: fourth of May twenty twenty two, and I talk about
Speaker 5: those in detail. But it's honestly not about the size
Speaker 5: of your initial investment. I know that you might want
Speaker 5: to go like, if I start, I really want to
Speaker 5: start strong, totally like, I totally get that. But the
Speaker 5: longer you put it off, the less strong your position
Speaker 5: is to start. Like I would say, a stronger position
Speaker 5: is starting today with five dollars and going I'm going
Speaker 5: to save my first five hundred and then make a move.
Speaker 2: True, while you're saving, you could be.
Speaker 5: Exactly growing and growing out and giving yourself a financial
Speaker 5: education on investing, right like, you could be learning over
Speaker 5: this entire time. It's about cultivating a habit to me
Speaker 5: of consistently investing over time instead of.
Speaker 2: Going, i'll investment.
Speaker 5: I have more money and it's so easy to put
Speaker 5: it off by saying that, right, So, regardless of your
Speaker 5: current financial status, there's honestly always room to kick start
Speaker 5: your investment journey and work towards your financial goals.
Speaker 2: I love that. That's so true. So deciphered. Are you
Speaker 2: too broke to invest?
Speaker 3: No?
Speaker 2: Okay, never, you didn't sound so confident. Maybe we need
Speaker 2: thinking of to keep this podcast going there? Yeah, that's true. Okay,
Speaker 2: how about this one? Yep, I don't have time to invest?
Speaker 2: All right?
Speaker 4: What are you so busy is well, I'm thinking and
Speaker 4: this could be wrong, and it's something you have said
Speaker 4: in the past, but you know, a lot of people
Speaker 4: think that you have to play the market and react
Speaker 4: quickly if you're investments aren't doing well, and so I
Speaker 4: feel like it's kind of time consuming to be watching
Speaker 4: and waiting and predicting and thinking and all that.
Speaker 2: I mean, I'm not making you become a day trader
Speaker 2: back right.
Speaker 5: Successfully investing does not demand a significant time commitment, and
Speaker 5: as I said before, you don't need to be playing
Speaker 5: the market like day trader. In fact, research tells us
Speaker 5: that you're more likely to lose the most money doing that.
Speaker 2: When it comes to investment strategy.
Speaker 5: That is the investment strategy that is going to shoot
Speaker 5: you in the foot the quickest. So developing a thoughtful
Speaker 5: and well structured investment plan, I would say's key, And
Speaker 5: it does require some time, like you're going to have
Speaker 5: to invest upfront. By setting clear goals and really choosing
Speaker 5: investments that are aligned to these goals and objectives you have,
Speaker 5: you can actually minimize the need for consistent oversight. A
Speaker 5: couple of weeks ago back you and I were talking
Speaker 5: about the difference between an ETF and a direct share,
Speaker 5: and I was like, well, how much involvement do you want?
Speaker 5: You're like, I would really like to buy an exchange
Speaker 5: traded fund. They want somebody else to kind of do
Speaker 5: the overseeing, Like I don't want to be in and
Speaker 5: out of the market all the time, Like I don't
Speaker 5: know how to make those decisions. But that's why different
Speaker 5: asset classes exist for different people. So long term investing,
Speaker 5: it often involves a strategy called buy and hold. So
Speaker 5: that's where you invest with the expectation that your investment
Speaker 5: assets are going to increase in value over time, gonna
Speaker 5: be a day trader. I feel like the movie The
Speaker 5: Wolf of Wall Street and similar movies like The Big
Speaker 5: Short have made it look like you have to be
Speaker 5: consistently in it to win.
Speaker 2: It, and like, hey, they've really glamorized it.
Speaker 5: Yeah, but also made it look so confusing. Yes, that
Speaker 5: is exactly how mediocare middle aged white investment bankers want
Speaker 5: you to see it. Sure, Like that's how they want
Speaker 5: to get so hard, Like, oh, you couldn't do this yourself.
Speaker 2: You're just a little girl, Yes, just a little girl.
Speaker 2: What would you know? I'm seeing some patterns sound here?
Speaker 2: We are little girls who know everything. Yeah, slay, sit down, Barry.
Speaker 5: So, while it is essential to periodically review your portfolio,
Speaker 5: don't get me wrong, knee jerk reactions to short term fluctuations,
Speaker 5: I would say, are things that we need to discourage.
Speaker 5: Like if you see your portfolio go slightly down, we
Speaker 5: don't want to just sell out because it looks scary.
Speaker 5: We need to zoom out. And how many times have
Speaker 5: I said when in doubt, zoom out, look at the
Speaker 5: bigger picture. There will be a reason for that beck.
Speaker 5: So by adopting I would say, a discipline and patient approach,
Speaker 5: you're able to balance it's your investment strategy with the
Speaker 5: demands of your busy schedule, which is often drinking sparkling
Speaker 5: water at the pub. Yes, which is honestly really important.
Speaker 2: It's very important.
Speaker 5: But that's why we want to choose an investment strategy
Speaker 5: that works for your lifestyle.
Speaker 6: Right.
Speaker 2: Doesn't want to be a day trader tick.
Speaker 5: Remember, it's actually about creating a plan that aligns to
Speaker 5: your life back, not tethering you to I guess the
Speaker 5: fast paced world of day trading, which kind of looks
Speaker 5: sexy and it's actually a bit of a joke. Like,
Speaker 5: I'm not saying that day traders are jokes. You need
Speaker 5: to like back out of that a little bit because
Speaker 5: some people might come for me and that's fine, but
Speaker 5: it's not the normal way to invest for long term gains.
Speaker 2: It carries so much risk.
Speaker 5: That that's why I kind of go, Well, if you're
Speaker 5: listening to this episode about how to create your investment strategy,
Speaker 5: I can almost guarantee that day trading is completely off
Speaker 5: the table because you don't have the experience yet to
Speaker 5: even consider what day trading might look like. So I
Speaker 5: guess you invest for the long term. Again, If in doubt,
Speaker 5: what are you going to do?
Speaker 2: Zoom out by Okay, what about this one? I'm ready.
Speaker 2: I'm afraid to lose money. I get it.
Speaker 5: I don't want to lose my money either. Yeah, do
Speaker 5: you really think that I want to lose all my money?
Speaker 5: I'm the most conservative girl you've ever met.
Speaker 2: Like, everything's in cash, not cash.
Speaker 5: I'm an investor, but I think the fear of losing
Speaker 5: money is such a common concern. But it's super critical
Speaker 5: that you understand that investing is not a guaranteed pathway
Speaker 5: to losing all your money.
Speaker 2: It's not gambling.
Speaker 5: And I think that if you don't have a good
Speaker 5: level of financial literacy to understand that, you assume it's gambling.
Speaker 5: And it might be written into your money story that
Speaker 5: you think it's gambling because your parents or your guardians
Speaker 5: or people around you growing up had that mentality and go, oh,
Speaker 5: that's too risky, Beck, don't do that. You go, no, worries, no,
Speaker 5: never going to talk about it again. But like you
Speaker 5: just assume that's actually true, when in fact, historically the
Speaker 5: share market has shown a tendency to trend upwards over
Speaker 5: the long term. And if we look at the Australian
Speaker 5: share market, if you take any period that the ASEX
Speaker 5: has existed, and you go, all right, I'm going to
Speaker 5: take this thirty year chunk or that thirty year chunk, Nobody,
Speaker 5: if they've been invested for more than thirty years on
Speaker 5: the ASEX, has ever lost money. Beck, that's pretty that's
Speaker 5: pretty be powerful. So if you're particularly risk averse, I
Speaker 5: get it. You can obviously opt for a more conservative
Speaker 5: portfolio that includes assets that have lower volatility. So then diversification,
Speaker 5: We've talked about spreading your investments across different asset classes,
Speaker 5: so as you said before, are you.
Speaker 2: All in cash?
Speaker 5: Would Beck twelve months ago have said something like that,
Speaker 5: I really don't think you would have true like.
Speaker 2: Oh if you got all in cash, like, how would
Speaker 2: have known? Who is she? Who is she? She's a
Speaker 2: blowed up woman.
Speaker 5: But I think it's really important to go all right, well,
Speaker 5: I've diversified, I do have some cash, I do have
Speaker 5: some shares. You know, you might have a bond. It's
Speaker 5: all going to depend on what your portfolio tolerance is.
Speaker 5: And so I think it's really important to you know,
Speaker 5: remember that. And obviously the more diversified you are, the
Speaker 5: more you can increase the likelihood of achieving positive returns
Speaker 5: over time. I also want you to remember, before I
Speaker 5: move on from this part of the conversation, that avoiding
Speaker 5: investing altogether it doesn't stop you from, I guess, being
Speaker 5: exposed to financial risks. So you do actually need to
Speaker 5: take an informed approach that can lead to wealth accumulation
Speaker 5: and financial growth.
Speaker 2: Because if you leave.
Speaker 5: Your money in cash right now, Beck I wrote about
Speaker 5: this in the Age the other week, the average savings
Speaker 5: account is returning anywhere between three and a half and
Speaker 5: six percent, but our rate of inflation right now is
Speaker 5: still sitting above seven percent. So if you look at
Speaker 5: those two numbers, inflation is eating away at your cash
Speaker 5: and even if you are making some money in your
Speaker 5: savings account, over the long term, you're going backwards, right, terrifying.
Speaker 2: Yeah, that is actually very very scary. It's not good. Yeah,
Speaker 2: not good. How about this one? Oh you've got more?
Speaker 2: I do have a how many more?
Speaker 5: Well?
Speaker 2: Look, I'm going to do two too. Okay? Is that
Speaker 2: okay with you? So fine?
Speaker 5: Because I feel like this is just an ongoing argument.
Speaker 5: You're like, here's a statement, and I'm like, yes, sit.
Speaker 2: Down, what about this.
Speaker 4: I don't know why I'm trying to prove you wrong
Speaker 4: so badly, but here we go. I like that, that's
Speaker 4: the strategy you've taken this way.
Speaker 2: Okay.
Speaker 4: So what if I say it's too late, I've already
Speaker 4: missed the boat on investing.
Speaker 2: I'll get the jet's case.
Speaker 7: So good.
Speaker 2: I always want to be right at the end of
Speaker 2: the day.
Speaker 5: The best time to invest was thirty years ago. The
Speaker 5: second best time to invest is today. It is never, ever,
Speaker 5: ever too late to start your investing journey. You can
Speaker 5: feel behind like I totally get that, and we probably
Speaker 5: should acknowledge that, because if I'm talking about my portfolio,
Speaker 5: you'd be like, well, you've had such good gains, I'm
Speaker 5: not going to get those ones. No, you're not get
Speaker 5: the next ones that I'm going to be in on.
Speaker 1: Then.
Speaker 5: Yeah, kind of like going surfing and you arrive at
Speaker 5: the beach and your friends are talking about these sick
Speaker 5: waves that they've caught, and you're like, oh, okay, well
Speaker 5: maybe I'll go home because I'm not going to catch
Speaker 5: those waves.
Speaker 2: There's more waves, aren't they back? Totally exactly.
Speaker 5: I don't surf, but that was I feel like a
Speaker 5: good analogy, good analogy for a non.
Speaker 2: So thank you is that obvious? Haha?
Speaker 5: I feel like the notion that you've missed the boat
Speaker 5: is just one of the biggest misconceptions in investing. In reality,
Speaker 5: the investment landscape, it's really dynamic. It's always changing, and
Speaker 5: the opportunities ahead still exists regardless of where on that
Speaker 5: journey you have personally started. So time in the market
Speaker 5: is very much more important than timing the market. How
Speaker 5: many times have I said, verbatim.
Speaker 2: I'd be a really rich woman if I could turn.
Speaker 7: The market back at least a billion, a billion times,
Speaker 7: billion times yead makes so much money. If people get
Speaker 7: me a dollar every time I said that, that would
Speaker 7: be a good investment if anyone wants to dm me ish.
Speaker 7: But historically, trends have shown that consistent long term investing
Speaker 7: can yield very good results. Whether you're in your twenties
Speaker 7: or your thirties, or you're listening to this podcast and you're.
Speaker 2: Like, yeah, I've never invested and I'm in my sixties. Great,
Speaker 2: let's start. Let's go. I'm ready, you're ready.
Speaker 5: There are strategies to actually tailor your investments to your
Speaker 5: unique goals and the time horizon that you have, and
Speaker 5: the key is to actually just start as soon as possible.
Speaker 5: No such thing as missing out. We're getting on the
Speaker 5: train today. There's always another one coming, so stay committed
Speaker 5: to your plan and then let the power of compounding
Speaker 5: work in your favor. So I guess we need to
Speaker 5: just throw out the idea that you've missed out because
Speaker 5: your financial journey beck it can still set surf.
Speaker 2: I don't know catch away.
Speaker 5: I was trying to think about something that would make
Speaker 5: it ocean inspired, but there are plenty of ports along
Speaker 5: the way.
Speaker 2: Ah, you did manage it right. It's a bit of
Speaker 2: a sa reference, right.
Speaker 4: I think that also applies to literally everything. If you
Speaker 4: feel like it's too late to start doing something, it's like,
Speaker 4: best time start was twenty years ago.
Speaker 2: Second, best time is literally right now? Yeah, get it, queen.
Speaker 4: So last one, what if I say I don't know
Speaker 4: where to start?
Speaker 5: It's a good question after I say that the best
Speaker 5: time to start is now?
Speaker 2: Haha.
Speaker 4: Yeah.
Speaker 2: So I was not actually born with an understanding of
Speaker 2: the shermket crazy right. It didn't come out of the womb.
Speaker 5: No, my dad's an accountant. I was born on the
Speaker 5: thirtieth of June. So you might assume that I did
Speaker 5: just walk out of the womb with a calculator.
Speaker 2: In my hand. All the world's are up, but I didn't.
Speaker 2: That's that from So.
Speaker 5: I think it's completely normal to feel unsure because when
Speaker 5: I started studying this, this was all consuming and overwhelming
Speaker 5: for me. And now I'm like, oh, this is like
Speaker 5: a second language. I have learnt the language. You have not, beck,
Speaker 5: So how do I expect you to speak it if
Speaker 5: you haven't started at the basics and at the fundamentals.
Speaker 5: If you don't know where to start, that is actually
Speaker 5: more normal than knowing where to start, because if you
Speaker 5: do know where to start, what the hell why are
Speaker 5: you listening to this podcast like you might've already started
Speaker 5: and you just really like our podcast in which guess
Speaker 5: thank you, please stay, we love you. But you're not
Speaker 5: alone in that sentiment. The investment world, as I said,
Speaker 5: can be really overwhelming with its array of options and
Speaker 5: jargon and mediocm middle aged white men trying to make
Speaker 5: you think that this is more complicated than it is
Speaker 5: to justify their jobs.
Speaker 2: Cute from them.
Speaker 5: But the good news is that there are resources and
Speaker 5: support available to guide you through this process.
Speaker 2: Have you heard of this podcast?
Speaker 1: Right?
Speaker 2: It's called She's on the Money? So ring a bell?
Speaker 2: Heard of it? Yeah?
Speaker 5: So I would begin with their content. Begin by educating yourself.
Speaker 5: You don't need to jump into a platform, you don't
Speaker 5: need to jump into putting your money where your mouth is,
Speaker 5: but understand what platforms exist. Understand that there are heaps
Speaker 5: of podcasts and articles, including obviously our episode Back to Basics,
Speaker 5: which we mentioned before that break down the essentials. Take
Speaker 5: small steps and consider using micro investing platforms as like
Speaker 5: a little way to dip your toes into the water
Speaker 5: and get a hands on understanding and education that isn't
Speaker 5: going to cost you much in what investment actually looks like.
Speaker 5: I would also recommend if you really want to to
Speaker 5: see a financial professional, So whether that's a financial advisor
Speaker 5: or a mortgage broker, or even if you're just joining
Speaker 5: an online community like ow She's on the Money community,
Speaker 5: it can provide really valuable insights. But the important thing
Speaker 5: is what I've been harping on about all this episode back,
Speaker 5: and that is everyone starts somewhere, and the most important
Speaker 5: thing is to actually initiate that learning process.
Speaker 2: So don't let uncertainty hold you.
Speaker 5: Back, because the path towards investing clarity actually begins with
Speaker 5: you taking a step and going, what does this look
Speaker 5: like like? If you're always staring at the gate and
Speaker 5: it's shut like, it's not going to make sense. You're
Speaker 5: not all of a sudden going to be like, finally
Speaker 5: I can open the gate and see what's beyond, Like
Speaker 5: you actually.
Speaker 2: Just have to open the damn Gatebeck totally.
Speaker 4: We need to fight through that analysis paralysis exactly. I
Speaker 4: think this is a great time to go to a
Speaker 4: really quick break. Need a nap, Great, let's do it
Speaker 4: and we'll see you guys on the flip side, I'm ready.
Speaker 4: Welcome back everyone. So we are talking about how to
Speaker 4: create your investment strategy. I feel like it's high time
Speaker 4: we get to the You're like, give me an investment strategy.
Speaker 4: I mean I'm ready. I don't know if you're ready
Speaker 4: to feel emotionally and physically ready. I mean physically no,
Speaker 4: I have a very short breath. But I feel like
Speaker 4: investment strategy is one of my favorite things to build.
Speaker 4: And obviously I can't sit down with each and every
Speaker 4: single one of you to build you your own I
Speaker 4: wish I could. Maybe one day there's an app maybe,
Speaker 4: although I did look into it.
Speaker 2: Apps are very expensive. Oh yeah, okay, so till then
Speaker 2: about that you get that podcast.
Speaker 5: So I would like to teach you how to create
Speaker 5: an investment strategy. So, creating an investment strategy, it involves
Speaker 5: a lot of thoughtful steps, right, So you've got to
Speaker 5: know what you want before you come to writing down
Speaker 5: an investment strategy. It involves a whole heap of process
Speaker 5: to align your financial goals with your risk tolerance and
Speaker 5: your time horizon. So if I say risk tolerance and
Speaker 5: you go they no idea what that is? You're going
Speaker 5: to go back to the tenth of March twenty twenty
Speaker 5: one and listen to the episode Listen at your own
Speaker 5: Risk Profile, because that is going to tell you exactly
Speaker 5: what a risk profile is.
Speaker 2: It takes you through all.
Speaker 5: The steps of understanding what your risk profile can be,
Speaker 5: and there are so many online that you can download
Speaker 5: and do, so you're going to go do that. I
Speaker 5: have listed out a step by step guide below. Keep
Speaker 5: listening to hopefully help you kickstart your investment journey, which
Speaker 5: I already low keyno is helpful.
Speaker 2: So let's go in.
Speaker 5: So first things first, I want you to conduct a
Speaker 5: really thorough review of your budget. We're going to look
Speaker 5: at your debts, your asset, your income, and your expenses.
Speaker 5: That's not very sexy, I know, but this is going
Speaker 5: to provide you a clear understanding of your financial position
Speaker 5: and where you're currently sitting. And we need to know
Speaker 5: that if you're going to start investing, because how on earth,
Speaker 5: beck are we creating a plan to get to somewhere
Speaker 5: else if you don't know where.
Speaker 2: You're starting from. Very good call.
Speaker 5: It's daunting, Yes, it's overwhelming, Yes nobody really wants to
Speaker 5: do it, but We're approaching this with no judgment. We're
Speaker 5: just going to look at it as what's going in
Speaker 5: and what's coming out of your bank account. It's going
Speaker 5: to tell you where your start line is and ultimately
Speaker 5: help you get as far ahead as possible. So you
Speaker 5: need to do it even if you think it's the
Speaker 5: most boring thing.
Speaker 2: In the world. Mm hmm.
Speaker 1: I know.
Speaker 2: I back that it's boring. I get it.
Speaker 5: But sometimes we have to do these things called hygiene factors,
Speaker 5: and that's those things you just have.
Speaker 2: To do to tick a box and go. You know
Speaker 2: what I did it.
Speaker 5: If it makes it easier, go get a nice cup
Speaker 5: of tea, a soda, water, a little cheeky wine. I
Speaker 5: don't actually care, Yo, Cornetto, you've leveled this up.
Speaker 1: Yeah.
Speaker 4: I don't know what made me think cornetto and tax
Speaker 4: or sorry. So your telebody is hand in hand.
Speaker 2: That if I got you a Cornetto, you do your budget.
Speaker 2: I think, so Boffer calls after this sit down, ha haha,
Speaker 2: just wait here.
Speaker 5: The next thing we're going to do is set concrete
Speaker 5: financial goals. So I want you to divide them into short, medium,
Speaker 5: and the long term objectives. I round about this all
Speaker 5: the time, because this is actually how I've broken up
Speaker 5: my money masterclass because to me, it is the best
Speaker 5: way to manage financial goals, because we need to understand
Speaker 5: what needs to happen asap, like in the next two years,
Speaker 5: but also what does like ten years fifteen years look like,
Speaker 5: because we can't have one without the other, because more
Speaker 5: often than not, if we set a ten year goal,
Speaker 5: but we also have a big two year goal, that
Speaker 5: big two year goal, if it's prioritized over the ten
Speaker 5: year goal, compromises the ten year goal, and then things
Speaker 5: just get blown out and things don't happen, and then
Speaker 5: you look back and go, oh, my god, what happened?
Speaker 2: Like I didn't actually get to achieve.
Speaker 5: Any of the goals I set, And that's obviously disheartening,
Speaker 5: and that's not what we want. We want to make
Speaker 5: sure that we go, oh, we've taken everything into consideration.
Speaker 5: You might actually have a long term goal that you'd
Speaker 5: completely sheltered. You're like, I have no money for that
Speaker 5: right now. It's still a goal, but you know why
Speaker 5: you've put it to the side, right like, we know
Speaker 5: what it is. And this really helps in choosing the
Speaker 5: right investment for each goal because if you're planning on investing,
Speaker 5: and let's go back to you loving to go to Meredith.
Speaker 5: I know, Meredith is this year right, Like, it's less
Speaker 5: than twelve months away. So I'm not going to let
Speaker 5: you invest that money in the short term. But you
Speaker 5: might have a really long term goal of buying your
Speaker 5: own house and you go, Vie, that's not going to
Speaker 5: happen in the next you know, ten plus years, might
Speaker 5: go well, maybe we could invest that money. So we
Speaker 5: really need to understand our time frames on our goals
Speaker 5: so we know what we can do with that money.
Speaker 5: Does that make sense?
Speaker 2: Great point?
Speaker 5: All right, So the third thing we are going to
Speaker 5: do is look into the world and asset classes. And
Speaker 5: you showed me before that you knew exactly what you
Speaker 5: were talking about. Yes, so we're going to talk about
Speaker 5: shares and property and bonds and cash, and we have
Speaker 5: spoken about the different types of asset classes before on
Speaker 5: their podcast. But what I want you to do is
Speaker 5: also conduct detailed research. So what you're going to do
Speaker 5: is literally use Google and you're going to look up
Speaker 5: you know, factors like expected returns and time frames and
Speaker 5: how quickly you can get rid of that and what
Speaker 5: tax implications exist for those asset classes. We've done so
Speaker 5: many episodes on what different asset classes exist. And you know, Beck,
Speaker 5: a couple of weeks ago, you and I were talking
Speaker 5: about the differences between ETFs and shares and managed funds
Speaker 5: and what that looks like. But back to the understanding
Speaker 5: your risk profile. That's going to be pretty cool when
Speaker 5: it comes to actually investing and getting yourself off the
Speaker 5: ground because a risk profile is going to guide what
Speaker 5: you are comfortable taking on. So if you've not heard it,
Speaker 5: please just go back and listen to that episode. Your
Speaker 5: risk profile is going to really hone down what's accessible
Speaker 5: to you as well. So if you've got that feeling
Speaker 5: of analysis paralysis, your risk profile is going to be
Speaker 5: like Beck, your real conservative, we're looking at cash or
Speaker 5: an ETF basically.
Speaker 2: And you go, oh, that's helpful, because I've just wiped
Speaker 2: everything else off the table. Gotcha. A risk profile can
Speaker 2: do that for you. I'm not gonna lie. This all
Speaker 2: sounds kind of boring.
Speaker 4: Just call it out, is babe. You know, I wonder
Speaker 4: if we get to a fun part eventually.
Speaker 2: Oh you want to know how to build your football?
Speaker 1: Yeah?
Speaker 2: Can I buy some stuff yet? Or like, am I
Speaker 2: still just writing down my goals?
Speaker 1: Yeah?
Speaker 5: Okay, So now we're at the fun beer, right, which
Speaker 5: is where we actually get to build our portfolio. Because
Speaker 5: we have looked at tailoring our goals, We've looked at
Speaker 5: our time frame, we understand our risk tolerance and what
Speaker 5: asset classes we could potentially buy.
Speaker 2: We now know because we've listened to all.
Speaker 5: These other episodes that diversifying across lots of different asset
Speaker 5: classes helps us to protect against potential losses. So it's
Speaker 5: actually time to do the fun thing and roll up
Speaker 5: your sleeve, assess your financial landscape, and let's set sale.
Speaker 5: She loves related puns otion related to set sale on
Speaker 5: the path to creating your own investment strategy. So for
Speaker 5: short term goals, as I dropped before, maybe consider investments
Speaker 5: like savings accounts that are a little bit more conservative,
Speaker 5: maybe looking at a term deposit or a government bond.
Speaker 5: These investments are lower risk because they're less likely to
Speaker 5: fall in value and you can access your money still.
Speaker 2: For the longer term.
Speaker 5: Goals, like I gave the example of you buying a
Speaker 5: house in turn plus years, investments that have higher returns,
Speaker 5: like maybe shares or property can actually be a little
Speaker 5: bit more suitable for these goals and for that timeframe.
Speaker 5: So these vestments are higher risk, but you're investing long term,
Speaker 5: which rides out any short term falls in value, which
Speaker 5: is really sexy. So it's important to make sure that
Speaker 5: you diversify your portfolio across lots of different asset classes
Speaker 5: and with in each asset class. But obviously, Beck, you've
Speaker 5: said before, I just want ANYTF You don't have to
Speaker 5: worry too much because yes, automatic diversification, but this is
Speaker 5: going to protect you against losing too much. But once
Speaker 5: you're at this point, Beck, we're going shopping. You know
Speaker 5: exactly what you want. You know the timeframe of your investment.
Speaker 5: You know how much you can afford. Because we did
Speaker 5: our budget, we did our cash flow, we looked at
Speaker 5: the different asset classes.
Speaker 2: You picked one.
Speaker 5: Now we just have to go to the supermarket and
Speaker 5: pick which one we're buying. Fun It's like their share
Speaker 5: market is kind of like coals, and you go down
Speaker 5: to coals, but there's lots and lots of different products
Speaker 5: in coals. But you just created a recipe, so you're
Speaker 5: going to go in and go all right, Well, you know,
Speaker 5: I'm making dumplings, at home, I need some flour. You're
Speaker 5: going to go to the flower section and look at
Speaker 5: the different floss.
Speaker 2: Flower is your ETF.
Speaker 5: So you're gonna look at the different ETFs and pick
Speaker 5: one that aligns to your budget, aligns to your goals
Speaker 5: and your values.
Speaker 2: Like if you're.
Speaker 5: Gluten free, you're gonna pick a gluten free flower, right, Sure,
Speaker 5: but that could be true of if you're going to
Speaker 5: the shop and going, well, I want an ETF, but
Speaker 5: it needs to be ethical. Sure, it doesn't have to
Speaker 5: be complicated.
Speaker 4: That makes so much sense, and that that sounds like
Speaker 4: my kind of fun.
Speaker 2: Yeah, because you like shopping, I do.
Speaker 5: I do really like dumplings, so I felt like that
Speaker 5: would work.
Speaker 4: That's true, okay for me. Anyway, that's probably a good
Speaker 4: place to sleep.
Speaker 5: Final thoughts, we are absolutely done. The last thing I
Speaker 5: do want to say, though, is please friends, remember to
Speaker 5: start small. Micro investment platforms and platforms that enable you
Speaker 5: to invest with small, small amounts of money to begin
Speaker 5: with can be fantastic for learning. I also want you
Speaker 5: to be really kind to yourself because this is a
Speaker 5: journey and mistakes are just stepping stones to successes, right,
Speaker 5: Like I have failed so many times. But the thing
Speaker 5: that has meant that I can be successful. As I
Speaker 5: get up, I dust myself off and go, wow, I
Speaker 5: learned from that. I'm not going to do that again.
Speaker 5: It's like touching an electric fence. You're not going to
Speaker 5: do it twice?
Speaker 2: Are you? I have done? But yes, I agree that
Speaker 2: was a choice. So wasn't it back a weird one?
Speaker 2: But we'll talk about that later.
Speaker 5: We'll talk about that off here, but most importantly, when
Speaker 5: it comes to investing, when in doubt, my friend zoom
Speaker 5: out the road to financial empowerment.
Speaker 2: Honestly, it's filled with twists and turns.
Speaker 5: It's never ever linear, but each and every single one
Speaker 5: is really important for growth. So let's just embrace the
Speaker 5: journey for what it is. It's not about the destination.
Speaker 5: We're learning along the way. Stay curious, my friends, and
Speaker 5: know that you're taking an airpeck step towards securing your
Speaker 5: financial future, which I'm so excited about. So until then,
Speaker 5: we love you, have fun. Please let me know if
Speaker 5: you've just started investing.
Speaker 4: Absolutely, And just a reminder that the episodes that we
Speaker 4: mentioned today are in the show notes.
Speaker 5: Yeah, because we know that you didn't have a pen
Speaker 5: you're listening to a podcast in the car.
Speaker 2: Bye Bye.
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Speaker 6: on the Money exists purely for educational purposes and should
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