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Your money story · She's On The Money

• 0:00
  Speaker 1: She's on the Money.
• 0:02
  Speaker 2: She's on the Money.
• 0:20
  Speaker 1: Hello, and welcome to She's on the Money, the podcast
• 0:23
  Speaker 1: for millennials who want financial freedom. My name's Anna bell Lee.
• 0:26
  Speaker 1: I'm a law student who really wants to lift her
• 0:28
  Speaker 1: game when it comes to all things money, and I
• 0:31
  Speaker 1: feel like it's not just me. That's why I've pulled
• 0:33
  Speaker 1: in my friend and the very best money expert I know,
• 0:36
  Speaker 1: Victoria Devine, to help us through the next twelve weeks.
• 0:39
  Speaker 1: She's on the Money is a no judgment zone. We're
• 0:42
  Speaker 1: not here to make you feel bad or like you're behind.
• 0:44
  Speaker 1: We're here to make you feel included, like money is
• 0:46
  Speaker 1: something you should be talking about, from saving to spending
• 0:50
  Speaker 1: to why the hell investing isn't just a man's game anymore.
• 0:53
  Speaker 1: We've got a Facebook group where you can share your
• 0:55
  Speaker 1: missteps and success stories. We've got an Instagram page still
• 0:58
  Speaker 1: keep you motivated, and we've got a newsletter that will
• 1:00
  Speaker 1: get you across everything you need to know. But we'll
• 1:03
  Speaker 1: get to all of that very soon. First of all, Victoria,
• 1:06
  Speaker 1: you should probably get in on here as well. I
• 1:08
  Speaker 1: think I've said enough for now. Who are you and
• 1:11
  Speaker 1: why are we here?
• 1:12
  Speaker 3: Hi?
• 1:12
  Speaker 4: Hello, I'm Victoria Devine.
• 1:14
  Speaker 5: I am twenty seven and I am a financial advisor.
• 1:18
  Speaker 1: So what makes you so passionate about women and finance.
• 1:21
  Speaker 5: We are in twenty nineteen and women are increasingly out
• 1:25
  Speaker 5: earning men. Yet we don't have the yare girls, yes,
• 1:29
  Speaker 5: but we don't have the tools and resources available to
• 1:33
  Speaker 5: us to put us in positions where we are not
• 1:36
  Speaker 5: going to be disadvantaged.
• 1:37
  Speaker 1: Right, So we're part of this conversation too.
• 1:39
  Speaker 4: One hundred percent.
• 1:40
  Speaker 1: You started cheese on the money a while ago.
• 1:43
  Speaker 4: Why was that?
• 1:44
  Speaker 5: Because I'm wildly passionate about empowering women with the knowledge,
• 1:47
  Speaker 5: tools and resources to.
• 1:48
  Speaker 4: Become financially independent.
• 1:50
  Speaker 5: I think young women feel disempowered around money conversations because
• 1:54
  Speaker 5: they're in a position where finance has never been a
• 1:57
  Speaker 5: topic that they've needed to focus on. We don't learned
• 2:00
  Speaker 5: in school. We often we don't learn it from our families.
• 2:02
  Speaker 5: When this should be common topic we should be talking
• 2:05
  Speaker 5: about money. We should be in a position where empowering
• 2:08
  Speaker 5: ourselves financially to be not financially free, but just financially
• 2:13
  Speaker 5: empowered is so important. Young women need to know this
• 2:17
  Speaker 5: now because of the impacts it can have thirty forty
• 2:19
  Speaker 5: to fifty years down the track. If we start now,
• 2:22
  Speaker 5: it's tiny baby steps that we need to make to
• 2:25
  Speaker 5: create a.
• 2:26
  Speaker 4: Secure financial future.
• 2:27
  Speaker 5: Whereas if we get to fifty to fifty five and
• 2:29
  Speaker 5: we're thinking about, oh, what are we going to do
• 2:31
  Speaker 5: when we retire, it's a little bit too late.
• 2:33
  Speaker 1: So it's important to teach younger women about this before
• 2:36
  Speaker 1: maybe they're earning their peak income.
• 2:38
  Speaker 5: Absolutely, because if we can set good money habits up front,
• 2:43
  Speaker 5: we can look at our finances holistically, and we can
• 2:45
  Speaker 5: increase our savings as we increase our earnings as opposed
• 2:49
  Speaker 5: to increasing our lifestyle. So lifestyle creep is massive. And
• 2:54
  Speaker 5: if you are earning sixty thousand dollars right now and
• 2:57
  Speaker 5: you know your income's about to go up to seventy
• 2:58
  Speaker 5: thousand dollars, I'm sure you're already planning what that ten
• 3:01
  Speaker 5: ground is going to purchase you instead of saying, oh, caryeah,
• 3:05
  Speaker 5: maybe a holiday. Maybe you've got July Europe fomo. And
• 3:10
  Speaker 5: you want to be in a position where you're doing
• 3:12
  Speaker 5: that too. I think it's really important to be in
• 3:13
  Speaker 5: a position where you can say, all right, these are
• 3:16
  Speaker 5: my values around money, these are my beliefs, this is
• 3:18
  Speaker 5: what I'll be doing as my income increases, I can
• 3:20
  Speaker 5: totally increase how much I'm saving or investing or putting
• 3:23
  Speaker 5: towards a cause that's really.
• 3:24
  Speaker 4: Important to me.
• 3:25
  Speaker 1: So that leads perfectly into today's episode. We're starting with
• 3:28
  Speaker 1: money stories. What are they and why do they influence
• 3:31
  Speaker 1: how we spend and how we save? But first, Victoria,
• 3:34
  Speaker 1: let's kick things off by sharing a money win or
• 3:36
  Speaker 1: money confession from the week. What have you got for me?
• 3:39
  Speaker 4: Oh?
• 3:39
  Speaker 1: No, so that's never good when you know it's.
• 3:43
  Speaker 5: A money win, it's not a money confession. This weekend,
• 3:46
  Speaker 5: I ran out of time. I had to cancel my
• 3:49
  Speaker 5: hair dresser appointment because I had to do some work
• 3:52
  Speaker 5: and I have a couple of gray hairs that make
• 3:55
  Speaker 5: me a little self conscious, so I wanted to cover
• 3:58
  Speaker 5: them and decided that potentially a packet dye was something
• 4:02
  Speaker 5: I wanted to try out, and so I went down
• 4:04
  Speaker 5: to Cohl's and I purchased a twelve dollars hair dye
• 4:07
  Speaker 5: and it has worked out perfectly, saving me one hundred
• 4:10
  Speaker 5: and fifty dollars.
• 4:11
  Speaker 1: Can confirm looking at Victory's hair right now, it's perfect.
• 4:15
  Speaker 4: It looks quer nice.
• 4:16
  Speaker 5: But now let's see if this silicon mess is going
• 4:18
  Speaker 5: to create a nightmare later.
• 4:20
  Speaker 4: What is your money win or confession?
• 4:22
  Speaker 1: Mine is a money win this week, which I feel
• 4:24
  Speaker 1: like is going to be rare, So it's kind of
• 4:26
  Speaker 1: a sad money win though. Every week I need to
• 4:28
  Speaker 1: fill up my petrol tank because I drive quite a
• 4:30
  Speaker 1: bit to work, and I always push it almost to
• 4:33
  Speaker 1: an empty tank because petrol is so bloody expensive these days.
• 4:37
  Speaker 4: You are me, you are me five years ago.
• 4:41
  Speaker 1: So I'm driving past all of these petrol stations and
• 4:43
  Speaker 1: they're so expensive, and I'm like, I can make it
• 4:45
  Speaker 1: home until next week when the price of petrol is
• 4:47
  Speaker 1: probably maybe lower, probably not actually, But my car starts
• 4:51
  Speaker 1: making all these really weird noises and I'm like, oh no,
• 4:54
  Speaker 1: I'm going to be stranded in the middle of this
• 4:55
  Speaker 1: busy road. And then I see in the far distance
• 4:58
  Speaker 1: it's a petrol station and it's all sense cheaper than
• 5:01
  Speaker 1: all the others, and I'm like, I've lucked out. This
• 5:04
  Speaker 1: is a money win. But yeah, as I said, kind
• 5:06
  Speaker 1: of sad because I'm just such a stinge and I
• 5:08
  Speaker 1: don't know if.
• 5:09
  Speaker 5: That's sad or really impressive.
• 5:11
  Speaker 4: I haven't decided yet.
• 5:12
  Speaker 3: It's sad.
• 5:13
  Speaker 1: I've determined it's sad. It's just such a m It's
• 5:15
  Speaker 1: such a uni student thing to do.
• 5:17
  Speaker 4: I like it.
• 5:17
  Speaker 1: Yeah, put that in the bucket with the Megoring Megoring. Okay,
• 5:22
  Speaker 1: So now that we've established I'm Stinge and you've got
• 5:25
  Speaker 1: great hair, let's get into the show. We all have
• 5:27
  Speaker 1: a money story, right. What is a money story and
• 5:30
  Speaker 1: why is it so important?
• 5:31
  Speaker 5: So a money story is out underlying beliefs and values
• 5:35
  Speaker 5: about what money actually means to you as a person.
• 5:38
  Speaker 1: And is childhood and family kind of important when it
• 5:41
  Speaker 1: comes to determining someone's money story.
• 5:43
  Speaker 5: Absolutely, So everything in your money story usually comes as
• 5:47
  Speaker 5: a product of the experiences that you've had in life.
• 5:50
  Speaker 5: So childhood, upbringing, the way your parents approach to money,
• 5:53
  Speaker 5: the way your friends approach to money. Potentially whether you
• 5:55
  Speaker 5: grew up in a wealthy family or not such a
• 5:57
  Speaker 5: wealthy family is going to shape the way you approach
• 6:00
  Speaker 5: money today.
• 6:01
  Speaker 3: Yeah. I know.
• 6:01
  Speaker 1: For me, my parents immigrated to Australia from China when
• 6:04
  Speaker 1: they were like really young, twenty years old, and they
• 6:07
  Speaker 1: had no money, and then when my sister and I
• 6:09
  Speaker 1: came along, it made it a lot harder for them financially,
• 6:12
  Speaker 1: and we definitely observed that even though they tried to
• 6:15
  Speaker 1: shield us from any financial hardship, Yeah, it was really
• 6:18
  Speaker 1: clear that we didn't necessarily have all the money in
• 6:21
  Speaker 1: the world to buy all the frivolous things and buy toys.
• 6:24
  Speaker 1: And there were even times when we would go grocery
• 6:26
  Speaker 1: shopping in Chadsden and my parents would be like, hey,
• 6:29
  Speaker 1: do you want a snack, like let's go get some sushio,
• 6:31
  Speaker 1: like let's get an ice cream, and we might be like, no, well,
• 6:34
  Speaker 1: just why do we get home even if we really
• 6:35
  Speaker 1: wanted someone, because we just knew even though my parents
• 6:38
  Speaker 1: wanted to treat us and spoil us, we knew that
• 6:41
  Speaker 1: it wasn't really in their means to do that. So
• 6:43
  Speaker 1: what should listeners be thinking about when it comes to
• 6:45
  Speaker 1: their money stories.
• 6:46
  Speaker 5: I think it's really important to just acknowledge that we
• 6:48
  Speaker 5: all have a money story, and that money story is
• 6:51
  Speaker 5: not a product of our own doing. I think it's
• 6:54
  Speaker 5: really important to say, Okay, I have a money story.
• 6:56
  Speaker 4: This is just my start position. Where can I go
• 6:59
  Speaker 4: from here?
• 7:00
  Speaker 1: There are some patterns you see with your clients then
• 7:02
  Speaker 1: with regards to their history with their money and their
• 7:04
  Speaker 1: relationship with how they spend it now.
• 7:06
  Speaker 5: So I think it's really interesting when talking to my
• 7:08
  Speaker 5: clients about their money stories where they've come from. So,
• 7:13
  Speaker 5: you know, I might be talking to a client who's
• 7:15
  Speaker 5: in a lot of debt and they're just unsure of
• 7:17
  Speaker 5: why they've gotten to this stage. And when you sit
• 7:20
  Speaker 5: them down and go all right, well, let's have a chat,
• 7:22
  Speaker 5: how do you grow up? What does that look like?
• 7:24
  Speaker 5: They grew up in a really wealthy family where money
• 7:26
  Speaker 5: was never an issue, It wasn't really talked about. Credit
• 7:29
  Speaker 5: cards were a really easy thing, and potentially when they
• 7:31
  Speaker 5: were growing up that was a really fine position to
• 7:34
  Speaker 5: be in because both of their parents had a quite
• 7:36
  Speaker 5: high salary. Whereas now they're, you know, earning fifty thousand
• 7:40
  Speaker 5: dollars as a graduate salary. They're in a position where
• 7:43
  Speaker 5: they've you know, the bank sent them a invitation to
• 7:47
  Speaker 5: apply for their first credit card and they thought, wow,
• 7:49
  Speaker 5: cool also, and this is my time to shine, And
• 7:51
  Speaker 5: they have gotten themselves into a whole heap of debt
• 7:53
  Speaker 5: without really realizing the impacts of it because it was
• 7:56
  Speaker 5: never an issue growing up. Whereas I have a number
• 7:59
  Speaker 5: of other clients who are you know, in quite quite
• 8:02
  Speaker 5: impressive roles their lawyers, their doctors, and they are living
• 8:06
  Speaker 5: really frugally because they're really worried that, you know, a
• 8:09
  Speaker 5: rainy day is going to come and they're going to
• 8:11
  Speaker 5: need it for that. So they aren't actually achieving the
• 8:13
  Speaker 5: goals that they say they want to achieve because they're
• 8:15
  Speaker 5: withholding the cash for themselves.
• 8:18
  Speaker 1: That's definitely what I do. Even though I'm not earning
• 8:20
  Speaker 1: a lot, I'm still a student. I feel like I
• 8:22
  Speaker 1: save a lot and I'm a good saver, but even
• 8:24
  Speaker 1: though I have no idea what to do with my money,
• 8:26
  Speaker 1: because I feel like I need a safety blanket, because
• 8:28
  Speaker 1: I feel like I've put myself in the position of
• 8:30
  Speaker 1: my parents when they were twenty and they came to
• 8:32
  Speaker 1: Australia with no money. They didn't have any support from
• 8:35
  Speaker 1: family or they didn't have any friends here, so they
• 8:38
  Speaker 1: knew that they had to be saving for themselves and
• 8:39
  Speaker 1: for their family. And that's kind of I feel like
• 8:42
  Speaker 1: I'm in that mindset, even though I have supportive family
• 8:44
  Speaker 1: and friends that would be able to help me if
• 8:46
  Speaker 1: anything ever did happen, but I want to be able
• 8:48
  Speaker 1: to rely on myself.
• 8:50
  Speaker 4: One hundred percent.
• 8:51
  Speaker 5: And if you've just said that a safety flanket is
• 8:53
  Speaker 5: something that you value.
• 8:54
  Speaker 4: That's your value.
• 8:55
  Speaker 5: No one can argue with that, just because it's a
• 8:57
  Speaker 5: part of your money story and that's where you learned
• 8:59
  Speaker 5: that value. I think it's really important to say, well,
• 9:01
  Speaker 5: you know what, I went through these experiences and my
• 9:03
  Speaker 5: parents had these experiences. But now I just feel empowered
• 9:06
  Speaker 5: because I've got some money sitting in the bank that
• 9:08
  Speaker 5: if i don't have an income for some period of time,
• 9:11
  Speaker 5: I'm going to be okay.
• 9:12
  Speaker 1: And I'm really glad and grateful that I have that value.
• 9:15
  Speaker 1: I'm really glad that I did go through that and
• 9:17
  Speaker 1: what my parents did go through that, and that my
• 9:19
  Speaker 1: sister and I observed their hardship because I feel like
• 9:22
  Speaker 1: it's helped me understand that money doesn't come easily. You know,
• 9:25
  Speaker 1: you work hard for your money and you should spend
• 9:28
  Speaker 1: within your means.
• 9:29
  Speaker 4: Absolutely.
• 9:30
  Speaker 5: I think it's really interesting that you say that because
• 9:32
  Speaker 5: so many people have different values, and that's just it, right.
• 9:36
  Speaker 5: Personal finance is just that it is personal. And your
• 9:40
  Speaker 5: experience of money and your experience of life is going
• 9:42
  Speaker 5: to be different to mine, and it's going to be
• 9:45
  Speaker 5: different to every single person that's listening to this podcast.
• 9:47
  Speaker 4: And that's okay.
• 9:48
  Speaker 5: What you value and having a safety blanket is really
• 9:50
  Speaker 5: important to you, but it might not be important to
• 9:52
  Speaker 5: the next person. And that's totally okay.
• 9:54
  Speaker 1: So is it possible to retrain yourself when it comes
• 9:56
  Speaker 1: to money, Like, how can you start? If you're listening
• 9:59
  Speaker 1: to this and you'll realize you have a bad family
• 10:01
  Speaker 1: history with money, can someone do something to change that?
• 10:03
  Speaker 5: Absolutely, you can change your money story if you choose that.
• 10:07
  Speaker 5: You can change the way you approach money, and you
• 10:09
  Speaker 5: can change your money story. But the first thing you
• 10:11
  Speaker 5: need to do is acknowledge where your money stories come from.
• 10:14
  Speaker 5: Sit down, have a think about your beliefs, have a
• 10:16
  Speaker 5: think about your values, and work out what they are
• 10:18
  Speaker 5: and where they've come from. Because if you don't know
• 10:20
  Speaker 5: where you're coming from, you're not going to know where
• 10:22
  Speaker 5: you want to go.
• 10:23
  Speaker 1: I think I've kind of done that. My parents always
• 10:26
  Speaker 1: ask me whether I'm buying myself nice things, because I
• 10:28
  Speaker 1: feel like they're they're aware that I was aware as
• 10:31
  Speaker 1: a kid of their financial hardships. And maybe I'm a
• 10:33
  Speaker 1: bit too hard on myself when I'm saving. Maybe too
• 10:35
  Speaker 1: hard even though is that ada?
• 10:37
  Speaker 4: Is there such thing?
• 10:38
  Speaker 5: I'm really impressed that you are as young as you are,
• 10:40
  Speaker 5: and you're saving really hard. But in saying that, if
• 10:43
  Speaker 5: you think that your beliefs are getting in the way
• 10:46
  Speaker 5: of your goals, I.
• 10:47
  Speaker 4: Think then it's time to have a bit of a
• 10:48
  Speaker 4: think about it.
• 10:49
  Speaker 5: But until then, I think, if you're saving and putting
• 10:52
  Speaker 5: money away and you're happy with that, go for it.
• 10:54
  Speaker 1: So we know the way you approach money is probably
• 10:57
  Speaker 1: largely dependent on your money story. Right that's the way
• 11:00
  Speaker 1: that listeners can test their financial health right now.
• 11:03
  Speaker 5: I think the easiest way to test your financial health
• 11:06
  Speaker 5: just really quickly is something that I've been doing with
• 11:09
  Speaker 5: clients for a little while now, and that's to write
• 11:12
  Speaker 5: down four figures.
• 11:13
  Speaker 3: So if you're.
• 11:13
  Speaker 5: Listening and you want to do this, write down the
• 11:15
  Speaker 5: following four figures earn, spend, own and O. So the
• 11:19
  Speaker 5: first thing you want to do is write down the
• 11:21
  Speaker 5: figure that you earn and that shouldn't be too hard.
• 11:24
  Speaker 5: If you don't know your salary package. Potentially look on
• 11:26
  Speaker 5: your Paceleep Paul, have a look on your last year's
• 11:29
  Speaker 5: tax return, then what you spend, So having a look
• 11:32
  Speaker 5: at what you're spending each month.
• 11:33
  Speaker 4: I'm not asking you to.
• 11:34
  Speaker 5: Go through a super detailed budget and outline to the
• 11:37
  Speaker 5: scent what you are spending on different things. I'm just saying,
• 11:41
  Speaker 5: do you know on average what you are spending each month?
• 11:44
  Speaker 5: Are you spending five hundred dollars less than your income?
• 11:46
  Speaker 5: Are you spending three hundred dollars less in your income?
• 11:48
  Speaker 5: Are you in a position where you're saving one thousand
• 11:50
  Speaker 5: dollars a month? Do you know that figure? If not,
• 11:53
  Speaker 5: now is the time to find out.
• 11:54
  Speaker 4: What you own is.
• 11:56
  Speaker 5: Really important to figure out because that is going to
• 11:58
  Speaker 5: be what creates your net wealth. And we'll talk a
• 12:01
  Speaker 5: lot more about that in the next couple of weeks.
• 12:03
  Speaker 5: But net wealth is what's going to ultimately support you
• 12:06
  Speaker 5: into retirement and through the rest of your life. But
• 12:10
  Speaker 5: what you own is really important. So I'm not talking
• 12:13
  Speaker 5: if you have a nice car or not, because I
• 12:15
  Speaker 5: don't actually classify that as a wealth investment. But you know,
• 12:20
  Speaker 5: how much money have you got in super how much
• 12:22
  Speaker 5: money have you got in savings? Have you purchased a
• 12:24
  Speaker 5: home yet? Are you in a position where you own
• 12:27
  Speaker 5: something that is going to contribute to your wealth moving forward?
• 12:31
  Speaker 5: And then what you owe? So do you have any
• 12:33
  Speaker 5: personal debt, do you have a credit card? Do you
• 12:35
  Speaker 5: have a personal loan. Have you got a mortgage? The
• 12:38
  Speaker 5: important thing here is that oh changes depending on what
• 12:43
  Speaker 5: phase of life you're in. You could be twenty eight
• 12:45
  Speaker 5: and you've got your first mortgage and you are up
• 12:47
  Speaker 5: to your eyeballs in five hundred thousand dollars worth of debt.
• 12:51
  Speaker 5: But is that debt actually contributing to your future? Yes,
• 12:55
  Speaker 5: a mortgage absolutely is, where as someone who's just gotten
• 12:59
  Speaker 5: back from Europe and has a twenty thousand dollar bill
• 13:01
  Speaker 5: on their credit card potentially isn't helping themselves.
• 13:04
  Speaker 1: So is there a percentage that people should be looking at.
• 13:07
  Speaker 5: Look, I'm going to straight out say that I think
• 13:09
  Speaker 5: that if you are in a position where you are
• 13:11
  Speaker 5: saving and you are investing, twenty percent is a really
• 13:15
  Speaker 5: good number to aim for. So twenty percent often sounds
• 13:19
  Speaker 5: like a really hard pill to swallow, because it is
• 13:21
  Speaker 5: if you're in a position where you have been in
• 13:24
  Speaker 5: your job for a couple of years, you've probably worked
• 13:26
  Speaker 5: out a way to spend all of the money that
• 13:28
  Speaker 5: you've earned. And I think that that's an okay position
• 13:32
  Speaker 5: to be. And I'm not saying tomorrow you have to
• 13:34
  Speaker 5: be saving twenty percent, but if you can work towards
• 13:36
  Speaker 5: saving twenty percent, you're going to be in a significantly
• 13:39
  Speaker 5: better position ten, twenty, thirty, forty fifty years into the future.
• 13:44
  Speaker 5: But in saying that, it's really important to realize that
• 13:47
  Speaker 5: twenty percent can be a really unreasonable figure for some people.
• 13:51
  Speaker 5: So if you are in a position where you're earning
• 13:53
  Speaker 5: thirty five thousand dollars, you're in your first job, that
• 13:55
  Speaker 5: is an absolutely unreasonable amount of your income to be saving.
• 13:59
  Speaker 5: You've got rent, you've got bill, you've got things to pay,
• 14:01
  Speaker 5: and to put an expectation over the top of someone
• 14:05
  Speaker 5: in that position is completely unreasonable. Whereas if you are
• 14:08
  Speaker 5: in a position where you're earning three hundred thousand dollars
• 14:11
  Speaker 5: a year, saving twenty percent should just come naturally, and
• 14:14
  Speaker 5: if it's not, you really need to be sitting down
• 14:16
  Speaker 5: and saying, all right, how have we gotten to this point?
• 14:19
  Speaker 1: So what can our listeners do with those four figures?
• 14:21
  Speaker 5: So those four figures tell us a lot about your
• 14:24
  Speaker 5: financial health. So the first two figures, earn and spend,
• 14:28
  Speaker 5: tell us whether you are spending more money than you're earning,
• 14:31
  Speaker 5: or you're earning more money than you're spending. It's quite simple.
• 14:34
  Speaker 5: We want to be in a position where we are
• 14:36
  Speaker 5: spending less than we are earning. It sounds pretty simple,
• 14:38
  Speaker 5: but it's actually a really hard thing to achieve. You
• 14:41
  Speaker 5: might think that each month you are doing a really
• 14:43
  Speaker 5: good job because you're breaking about even, but if you
• 14:46
  Speaker 5: look at it on the grand scheme of things, on
• 14:47
  Speaker 5: a yearly basis, you could actually be spending you know,
• 14:50
  Speaker 5: one thousand or two thousand dollars more than you've actually earned.
• 14:53
  Speaker 5: And that it's not a recipe for disaster, but it's
• 14:56
  Speaker 5: on the wrong.
• 14:57
  Speaker 1: Track, especially if you've got like a credit card.
• 14:58
  Speaker 5: Absolutely and sometimes you think, all right, well, I really
• 15:02
  Speaker 5: want to go to this music festival. I'm just going
• 15:04
  Speaker 5: to put these tickets onto my credit card and I'll
• 15:06
  Speaker 5: sort it out later.
• 15:08
  Speaker 4: You will sort it out later.
• 15:09
  Speaker 5: But you know, if you look at it in the
• 15:10
  Speaker 5: grand scheme of things, that might be three or four
• 15:12
  Speaker 5: hundred dollars more than you actually earned in that year.
• 15:14
  Speaker 5: And is that something that you want to do, Like,
• 15:16
  Speaker 5: is that in line with your values?
• 15:18
  Speaker 4: Are you putting.
• 15:19
  Speaker 5: Yourself in the best possible position to create wealth long term?
• 15:23
  Speaker 5: I think something that's really important here is saying, you
• 15:25
  Speaker 5: know what, I don't want you to be in a
• 15:27
  Speaker 5: position where we know exactly down to the scent what
• 15:30
  Speaker 5: we are spending each month. But if you were a
• 15:33
  Speaker 5: listener who went on I actually don't know what I spend.
• 15:36
  Speaker 5: I think something that you could do in the next
• 15:38
  Speaker 5: week is print out one of your bank's statements, grab
• 15:41
  Speaker 5: a highlighter, and highlight all of the things that were
• 15:45
  Speaker 5: personal spending. So I'm not talking about bills, I'm not
• 15:47
  Speaker 5: talking about rent. Highlight the things that you were spending
• 15:50
  Speaker 5: money on that might not be aligned to the necessities
• 15:53
  Speaker 5: of life. So what things are you putting your money on?
• 15:57
  Speaker 5: And then work out what you have spent the most
• 15:59
  Speaker 5: money on in that month, and then that will tell
• 16:02
  Speaker 5: you what your values are. So if you spend the
• 16:04
  Speaker 5: most ongoing out, that to me is what you value
• 16:08
  Speaker 5: the most. If not change it, change what you're spending.
• 16:11
  Speaker 1: So those necessities of life are different for everyone, so you'd.
• 16:14
  Speaker 5: Need absolutely absolutely, So necessities of life for me would
• 16:18
  Speaker 5: be rent and bills, and you know the cost of
• 16:21
  Speaker 5: my car and fuel and things that I need to
• 16:24
  Speaker 5: get to work and to get through life. Things that
• 16:27
  Speaker 5: I am spending money on that aren't essential.
• 16:30
  Speaker 4: Hairdresser realpointment, yeah.
• 16:33
  Speaker 5: And getting my nails done and going out for brunch
• 16:35
  Speaker 5: with my girlfriends. And whilst I love those things, those
• 16:38
  Speaker 5: are discretionary. Those are things I don't need to be
• 16:40
  Speaker 5: spending money on, and I really need to have a
• 16:42
  Speaker 5: look at whether those things are actually helping me achieve
• 16:45
  Speaker 5: my goals or setting me back a little bit. As
• 16:48
  Speaker 5: much as we want to spend time with our friends
• 16:49
  Speaker 5: and go for brunch, is it actually helping me? And
• 16:52
  Speaker 5: in the bigger picture, is it actually helping my friend?
• 16:55
  Speaker 5: Should we be doing something different together. I'm not saying
• 16:58
  Speaker 5: put on your friend your financial values, but like is
• 17:02
  Speaker 5: li like often you will circulate with people who are
• 17:05
  Speaker 5: very similar to you in finance. So is it a
• 17:08
  Speaker 5: good idea to sit down with a friend and be like, Hey,
• 17:10
  Speaker 5: we go out for brunch every Sunday, do you want
• 17:12
  Speaker 5: to go for a walk and grab a coffee instead?
• 17:14
  Speaker 3: Great?
• 17:14
  Speaker 1: So, for everyone listening, you and I are gonna write
• 17:17
  Speaker 1: down our four figures, get a highlighter out and highlight
• 17:20
  Speaker 1: all of the things Victoria just told us about. And
• 17:22
  Speaker 1: then I want you to go onto our Facebook group
• 17:24
  Speaker 1: and tell us the most glaring thing that you're spending
• 17:27
  Speaker 1: your money on that you didn't know you were. So
• 17:29
  Speaker 1: go on to Facebook, type in Cheese on the Money
• 17:31
  Speaker 1: and come join our lovely community. Hi, there, you've called
• 17:43
  Speaker 1: the Shees of the money Hotline. Do you have a
• 17:45
  Speaker 1: money problem you want help solving. Do you have a
• 17:47
  Speaker 1: money dilemma you just want to chat about? Victoria is
• 17:49
  Speaker 1: here to help. Every week we'll be playing your hotline
• 17:52
  Speaker 1: questions to help make sense of the money mess you
• 17:54
  Speaker 1: may have found yourself in. Give us a call on
• 17:56
  Speaker 1: four three five two nine three double eighty six and
• 17:59
  Speaker 1: you might find yourself on the show. But for now,
• 18:02
  Speaker 1: here's Jacinta.
• 18:10
  Speaker 6: Hi, She's on the money. My own problems with money
• 18:12
  Speaker 6: began when I got married at twenty one. My husband
• 18:15
  Speaker 6: and I bought a house, but the marriage crumbled eighteen
• 18:17
  Speaker 6: months later and we sold it, leaving me with forty
• 18:19
  Speaker 6: thousand dollars in my bank account. I was never got
• 18:22
  Speaker 6: what to do with money as a child, but I
• 18:24
  Speaker 6: spent it all within two years, taking myself on lavish
• 18:27
  Speaker 6: holidays and shopping trips. That time of my life grew
• 18:30
  Speaker 6: in my perspective of money. A decade later, I haven't
• 18:33
  Speaker 6: been able to save anything close to that amount. Backup,
• 18:35
  Speaker 6: I have five thousand dollars to my name and seem
• 18:38
  Speaker 6: to continually live above my means. What can I do
• 18:40
  Speaker 6: to retain myself on how to save? Thanks? So much?
• 18:44
  Speaker 1: Seems like Jacinta needs a total financial reboot. Here, what's
• 18:48
  Speaker 1: the very first thing you'd do if you were in
• 18:50
  Speaker 1: her situation?
• 18:51
  Speaker 5: I think she needs to acknowledge that she's not in
• 18:53
  Speaker 5: that terrible of a situation. She's got five thousand dollars
• 18:56
  Speaker 5: in her account and that is so much better than
• 18:59
  Speaker 5: moist women in Australia to be honest, If she's feeling
• 19:02
  Speaker 5: disempowered and wants to change her ways, though, there are
• 19:04
  Speaker 5: a heap of things that she can do. So first
• 19:07
  Speaker 5: things first, we just spoke about what you earn, what
• 19:09
  Speaker 5: you spend, what you own and what you owe, so
• 19:12
  Speaker 5: just seems to go away, write those figures down and
• 19:14
  Speaker 5: work out exactly what you are spending?
• 19:17
  Speaker 4: What's your financial health look like?
• 19:18
  Speaker 5: Actually, are you in a position where you own more
• 19:22
  Speaker 5: than you owe? And I think that from what we've
• 19:24
  Speaker 5: heard from Discina, she actually is. So I think Jacinta
• 19:27
  Speaker 5: needs to have a look at that and go, wow,
• 19:29
  Speaker 5: I'm actually in a position where I am a positive
• 19:31
  Speaker 5: net wealth. It might only be five thousand dollars, but
• 19:34
  Speaker 5: that's really impressive. That is a position so many people
• 19:37
  Speaker 5: would envy to be in. The second thing she can
• 19:39
  Speaker 5: do is go through her bank account, like we mentioned,
• 19:42
  Speaker 5: and work out what she's actually spending. It sounds like
• 19:45
  Speaker 5: she doesn't have a hold on what she's actually spending
• 19:48
  Speaker 5: each month and where it's going. But it also sounds
• 19:51
  Speaker 5: like she doesn't have some solid goals to work towards.
• 19:54
  Speaker 5: And that's really hard, Like, that's a really hard position
• 19:56
  Speaker 5: to be in, because why would I be saving and
• 19:59
  Speaker 5: why would I be, you know, allocating funds to something
• 20:02
  Speaker 5: If I don't have a specific goal in mind and
• 20:04
  Speaker 5: I don't know what I'm working.
• 20:05
  Speaker 1: It's like you may as well spend.
• 20:06
  Speaker 5: Yeah, you may as well spend. Like I've got five
• 20:08
  Speaker 5: hundred dollars in my account. I know I'm going to
• 20:10
  Speaker 5: get paid in three weeks. It doesn't actually matter if
• 20:13
  Speaker 5: I spend that five hundred dollars, but it does because
• 20:17
  Speaker 5: you need to work out what your goals are, where
• 20:18
  Speaker 5: you're going, what you want to do.
• 20:20
  Speaker 4: Do you want to buy a home?
• 20:21
  Speaker 5: Is that something that you want in the future. If not,
• 20:24
  Speaker 5: that's totally cool. But do you want to retire? Retirement
• 20:27
  Speaker 5: is such a boring thing to talk about because it
• 20:29
  Speaker 5: seems so far in the distance.
• 20:30
  Speaker 4: It is something that you know, seems quite.
• 20:32
  Speaker 5: Elusive, and you know you've got forty or fifty years
• 20:35
  Speaker 5: to still work, and you know people are talking about
• 20:38
  Speaker 5: how the retirement age is going to change to be
• 20:41
  Speaker 5: seventy and you're like, wow, that's you know, that's a
• 20:43
  Speaker 5: million years off. Why should I care about it now?
• 20:46
  Speaker 5: Why should you care about it now? Because if you're
• 20:48
  Speaker 5: investing five hundred dollars a month from the age of
• 20:51
  Speaker 5: twenty one, you'd be a millionaire by the time you
• 20:54
  Speaker 5: were in retirement.
• 20:55
  Speaker 4: That's crazy.
• 20:56
  Speaker 5: So I think that the impact of you know, making
• 21:00
  Speaker 5: some small steps today is actually going to have a
• 21:03
  Speaker 5: massive impact on your future. Whether you're starting right now
• 21:06
  Speaker 5: at the age of twenty one or you're starting at
• 21:09
  Speaker 5: the age of thirty five, you can still have that
• 21:11
  Speaker 5: massive impact on your financial future. So another thing Jacinta
• 21:15
  Speaker 5: can do is automate her transfers. So if she's saying
• 21:19
  Speaker 5: I'm bad with money, I don't know what I'm doing,
• 21:21
  Speaker 5: make it not your responsibility. So I'm not saying don't
• 21:24
  Speaker 5: take responsibility for the situation you're in, but stop the
• 21:28
  Speaker 5: part of you that wants to spend money and go out.
• 21:30
  Speaker 5: Stop that person from having access to those funds. So
• 21:34
  Speaker 5: sit down and say, all right, I earn four thousand
• 21:36
  Speaker 5: dollars per month. This is where that four thousand dollars
• 21:39
  Speaker 5: each month is going to go.
• 21:40
  Speaker 4: This is what I have.
• 21:41
  Speaker 5: To spend on friends and family and going out. This
• 21:44
  Speaker 5: is what I have to spend on bills. Automate any
• 21:47
  Speaker 5: payments that you can, So if you can pay a
• 21:50
  Speaker 5: bill by a direct debit, do it. Put it into
• 21:53
  Speaker 5: a bank account. Change your banking structure so that you're
• 21:55
  Speaker 5: in a position where all of your income comes into
• 21:58
  Speaker 5: one account, all of your bank bills come out of that,
• 22:01
  Speaker 5: and you allocate yourself a certain amount of spending money
• 22:04
  Speaker 5: per week, and if you go over that, well, it
• 22:06
  Speaker 5: looks like noodles for the rest of the week because
• 22:08
  Speaker 5: you can't have any more than that. I think putting
• 22:10
  Speaker 5: yourself in a position where you are empowered financially but
• 22:15
  Speaker 5: also constrained by certain figures is really important when trying
• 22:19
  Speaker 5: to achieve goals, because short term gratification is always such
• 22:23
  Speaker 5: a stronger feeling than long term gain.
• 22:26
  Speaker 1: Would you recommend setting up like a rainy day's.
• 22:28
  Speaker 5: Bank account absolutely, and it sounds like Jacinta's in a
• 22:31
  Speaker 5: position where she has set that up. She said she
• 22:33
  Speaker 5: had five thousand dollars to her name. But I think
• 22:36
  Speaker 5: it's really important to realize that savings and a rainy
• 22:38
  Speaker 5: day fund are not actually the same thing. So savings
• 22:42
  Speaker 5: are something that you put aside to go towards a
• 22:44
  Speaker 5: larger goal, whereas a rainy day fund, whether that's one
• 22:47
  Speaker 5: thousand dollars, two thousand dollars, or in Ciners case, five
• 22:50
  Speaker 5: thousand dollars, that fund is there if you're ever in
• 22:52
  Speaker 5: a position where you need to access funds quickly but
• 22:55
  Speaker 5: not draw down on the savings so you're still on
• 22:58
  Speaker 5: track to make your goals.
• 23:00
  Speaker 1: You conflated the time.
• 23:01
  Speaker 5: Yeah, look a lot of people do, and I think
• 23:03
  Speaker 5: it's something that is really common. It's not unusual to say, well,
• 23:07
  Speaker 5: i've got savings, I'll just dip into those when I
• 23:10
  Speaker 5: have financial hardship on a rainy day. You might need
• 23:12
  Speaker 5: that entire five thousand exactly, and then you're back at
• 23:15
  Speaker 5: ground zero. So where do we start from. I think
• 23:18
  Speaker 5: it's really important to differentiate the two. If we've got
• 23:21
  Speaker 5: a rainy day account and we've got a savings account.
• 23:24
  Speaker 5: Those two things to me personally a different sat at
• 23:27
  Speaker 5: a million times. Personal finance is just that it's personal.
• 23:30
  Speaker 5: But if you're in a position where you can create
• 23:33
  Speaker 5: a rainy day fund, where if you find yourself in
• 23:35
  Speaker 5: a position where you don't.
• 23:36
  Speaker 4: Have income for a month or you have a really.
• 23:38
  Speaker 5: Large unexpected cost, those things aren't going to impact you
• 23:41
  Speaker 5: achieving your goals long term.
• 23:43
  Speaker 1: And maybe a rainy day's bank account might be different
• 23:45
  Speaker 1: for someone with kids.
• 23:46
  Speaker 5: Yes, absolutely, so I'm in a position where I don't
• 23:50
  Speaker 5: have any dependence. I don't have any kids, but a
• 23:53
  Speaker 5: cat I treat like a kid. And my rainy day
• 23:55
  Speaker 5: fund is far less than most of my clients because
• 23:58
  Speaker 5: I know that that's enough for me to survive financially,
• 24:02
  Speaker 5: pay my bills, pay my rent, make sure I'm in
• 24:04
  Speaker 5: an okay financial position for three months, whereas someone with
• 24:08
  Speaker 5: kids might have to factor in childcare costs, children's fees,
• 24:12
  Speaker 5: medical whatever, your you know, whatever is a part of
• 24:16
  Speaker 5: your story into that fund. So my fee or my
• 24:19
  Speaker 5: costs are a bare minimum, whereas someone else's might be
• 24:22
  Speaker 5: you know, a lot more cushiony. So ultimately it actually
• 24:26
  Speaker 5: looks like just center you're in a position where you're
• 24:28
  Speaker 5: lacking a little bit of direction. You might not know
• 24:30
  Speaker 5: what your goals are, what your values are, And I
• 24:32
  Speaker 5: think to me, that's the most important thing to work
• 24:35
  Speaker 5: out this week. Sit down, work out where you want
• 24:37
  Speaker 5: to be in five years, where you want to be
• 24:38
  Speaker 5: in ten years, and what you want to do for
• 24:40
  Speaker 5: the rest of your life. I'm not saying these things
• 24:42
  Speaker 5: can't change, because they always do. But if we can't
• 24:46
  Speaker 5: create direction for ourselves, it's very hard to change our situation.
• 24:50
  Speaker 1: Okay, So just sinta, it looks like we're doing a
• 24:52
  Speaker 1: couple of things. We're grabbing those four figures. We're also
• 24:55
  Speaker 1: grabbing a highlighter. We're setting up those automatic bank transfers,
• 24:58
  Speaker 1: and where potentially setting up that rainy day fund. If
• 25:01
  Speaker 1: any listeners want to share their money dilemma on the show,
• 25:04
  Speaker 1: give us a call on Oh four three five two
• 25:06
  Speaker 1: nine three double eight six. That's oh four three five
• 25:09
  Speaker 1: two nine three double eight six. Okay, Now for the
• 25:17
  Speaker 1: fun stuff. What good would a money podcast be without
• 25:20
  Speaker 1: the pervy stuff. Each week we're bringing you a money diary.
• 25:23
  Speaker 1: Let's do this. Today's money diary is from a teacher
• 25:32
  Speaker 1: whose history with money isn't straightforward.
• 25:34
  Speaker 3: Hi, I'm twenty eight and I'm controlling. I'm like really
• 25:38
  Speaker 3: thoughtful about everything that I spend my money on. I think, like,
• 25:43
  Speaker 3: because I was a student for a long time towards
• 25:45
  Speaker 3: the end of my second degree, all my friends were
• 25:48
  Speaker 3: working and I wanted to keep up, and I was
• 25:52
  Speaker 3: living out of home at that time, and so I
• 25:53
  Speaker 3: was I wasn't I it was really conscious of the
• 25:55
  Speaker 3: fact that I wasn't earning as much as my friends were,
• 25:58
  Speaker 3: but I still wanted to keep up, and so like,
• 26:00
  Speaker 3: I kept myself super accountable and I just feel like
• 26:02
  Speaker 3: I never got out of that.
• 26:02
  Speaker 1: Okay, So down to the nitty gritty stuff. How much
• 26:05
  Speaker 1: does twenty eight and controlling earn and how much has
• 26:08
  Speaker 1: she saved?
• 26:08
  Speaker 3: I earn about seventy two thousand each year. Right now,
• 26:11
  Speaker 3: I've got about thirty five thousand in my savings. Yeah,
• 26:14
  Speaker 3: I'm really proud of it. Like, yeah, I'm super proud
• 26:17
  Speaker 3: of it. No, Yeah, it's really important to me. Oh God,
• 26:22
  Speaker 3: to me, it represents like my independence, and to me
• 26:27
  Speaker 3: it's kind of like my rainy day fund almost like
• 26:30
  Speaker 3: I'm saving for a house at the moment, and that's
• 26:32
  Speaker 3: kind of taking precedent with my savings. But yeah, it
• 26:35
  Speaker 3: just shows that, like I don't know that, like at
• 26:37
  Speaker 3: this I'm really proud of it at this point in
• 26:38
  Speaker 3: my life because I feel like I'm where I want
• 26:40
  Speaker 3: to be.
• 26:41
  Speaker 1: The reason twenty eight and controlling has a fraught relationship
• 26:43
  Speaker 1: with money largely comes down to her parents and how
• 26:46
  Speaker 1: they dealt with their own finances.
• 26:48
  Speaker 3: My parents are now divorced, but they I didn't realize.
• 26:53
  Speaker 3: I didn't learn this until after they divorced, until I
• 26:55
  Speaker 3: was like really an adult, But they never shared a
• 26:59
  Speaker 3: bank account in their whole marriage. And when I learned that,
• 27:02
  Speaker 3: I thought, I just felt that was really odd. And
• 27:05
  Speaker 3: then kind of as I learned more, I discovered that
• 27:09
  Speaker 3: my dad made a lot of the financial decisions, which
• 27:12
  Speaker 3: I it's quite traditionalist. I guess that, like you know,
• 27:15
  Speaker 3: it's probably the same in a lot of families of
• 27:17
  Speaker 3: people my age as well. I mean, I don't know,
• 27:19
  Speaker 3: but he made a lot of the decisions, and I
• 27:22
  Speaker 3: guess after my parents separated, they stayed married for a
• 27:28
  Speaker 3: really long time so that my dad could continue to
• 27:30
  Speaker 3: support my mum in a lot of different ways. And
• 27:33
  Speaker 3: although it worked out fine, and although my mum in
• 27:36
  Speaker 3: other ways, you know, gained her independence, and even now
• 27:40
  Speaker 3: she's very independent. She owns a house outright, and she's
• 27:44
  Speaker 3: very self sufficient financially. I just really thought, like, I
• 27:49
  Speaker 3: don't want to become a mum and then lose my capacity.
• 27:54
  Speaker 3: I know I wouldn't totally lose it, but lose some
• 27:56
  Speaker 3: of my capacity to earn independently. And so yeah, I yes,
• 28:00
  Speaker 3: I tie I link really closely. When I think about money,
• 28:04
  Speaker 3: I link it to my career really closely, because that's
• 28:07
  Speaker 3: obviously it's how I own money. But that in continuing
• 28:10
  Speaker 3: to build my career and using my degree and having
• 28:15
  Speaker 3: a career that's sustainable, I really see that as, yeah,
• 28:18
  Speaker 3: like a safety net for myself. I guess.
• 28:20
  Speaker 1: So we know how twenty eight and controlling gets paid,
• 28:23
  Speaker 1: but what exactly happens to that money afterwards? Deposited into
• 28:26
  Speaker 1: her account every fortnight.
• 28:28
  Speaker 3: So I've got I've got some a balance on my
• 28:31
  Speaker 3: credit card, so some of it goes to that, although
• 28:33
  Speaker 3: I decide each fortnight, I kind of decide how much
• 28:36
  Speaker 3: we'll go to that. But each fortnite I have about
• 28:39
  Speaker 3: four hundred bucks go to savings, and then I have
• 28:42
  Speaker 3: four hundred dollars goes to my joint account with my partner.
• 28:45
  Speaker 1: Now let's talk about investing DOES twenty eight and controlling
• 28:48
  Speaker 1: invest and if not, why no, No, I don't.
• 28:53
  Speaker 3: My partner is really interest he has more of a
• 28:57
  Speaker 3: well in our friendship Greep, we joke that he's like
• 28:59
  Speaker 3: a businessman like he's yeah, like he's but that's that's
• 29:03
  Speaker 3: what he's like. Like, he's got that kind of mind,
• 29:04
  Speaker 3: and he looks for opportunities to invest. And you know,
• 29:07
  Speaker 3: he'll be like the first to tell you that, oh
• 29:09
  Speaker 3: this thing, like he invested in baby formula and he's
• 29:11
  Speaker 3: actually made like a lot of money from it. Yeah,
• 29:13
  Speaker 3: Like but he's he's on top of all of that,
• 29:15
  Speaker 3: even if it's something that he's not interested in. So yeah,
• 29:18
  Speaker 3: he kind of like wears that for us. And I
• 29:20
  Speaker 3: don't even I don't invest in anything. It's one of
• 29:22
  Speaker 3: those things I was just saying actually earlier. It's one
• 29:24
  Speaker 3: of those things that and I'm like this, this is
• 29:27
  Speaker 3: my personality as well. I don't. I'm a bit bored
• 29:30
  Speaker 3: by it. I don't know enough about it, so then
• 29:32
  Speaker 3: I don't want to learn about it, and so I
• 29:35
  Speaker 3: just don't. I just don't bother like I just yeah,
• 29:37
  Speaker 3: what I've got is like a bank account, savings account
• 29:40
  Speaker 3: that acrues interest, and that's pretty much it.
• 29:42
  Speaker 1: Controlling has a little bit of debt too. Here's where
• 29:44
  Speaker 1: she stands with it all.
• 29:45
  Speaker 3: I have twenty GRANDEXTEP at the moment, I have about
• 29:49
  Speaker 3: three grand on my credit.
• 29:50
  Speaker 1: Card twenty eight And Controlling knows what she's good at
• 29:54
  Speaker 1: when it comes to money. Her best money habit is
• 29:56
  Speaker 1: one she's had for a while and dates back to
• 29:58
  Speaker 1: her early UNI days.
• 30:00
  Speaker 3: So my best money have it is that I don't
• 30:03
  Speaker 3: buy anything without really thinking it through. Like I don't
• 30:09
  Speaker 3: impulse buy ever, because I just there was a time
• 30:12
  Speaker 3: when I couldn't, Like I really couldn't, Like I might
• 30:14
  Speaker 3: have had fifty bucks for the week, and if I
• 30:16
  Speaker 3: was going to buy, like literally, if I was going
• 30:18
  Speaker 3: to buy that top instead of go out, that's the
• 30:19
  Speaker 3: decision I made. And it's kind of annoying sometimes because
• 30:22
  Speaker 3: I think, like, God, how I live? And I have
• 30:24
  Speaker 3: buyers remorse all the time. I returned things all the time.
• 30:28
  Speaker 1: And her worst money habit, well, let's just say it
• 30:30
  Speaker 1: comes back to describing herself as controlling.
• 30:32
  Speaker 3: I'm at the point of my life now where things
• 30:37
  Speaker 3: are becoming more in meshed when it comes to money
• 30:41
  Speaker 3: with my partner. And yeah, as I said, we're thinking
• 30:44
  Speaker 3: about we are looking at buying a house, and we
• 30:48
  Speaker 3: do share a bank account and that's for everyday things
• 30:51
  Speaker 3: like that's for bills and rent and stuff. And still
• 30:54
  Speaker 3: I'm like, was that fifty dollars gone? Did you spend
• 30:57
  Speaker 3: twenty two dollars on a collus which you buy? I
• 30:59
  Speaker 3: didn't see anything new and the fridge, Like, I'm really
• 31:02
  Speaker 3: can be quite picky like that because when it comes
• 31:04
  Speaker 3: I'm when I'm just managing myself. That's how I keep
• 31:08
  Speaker 3: myself to account, you know. So he when he's like, oh,
• 31:11
  Speaker 3: we've got to top up the account, I'm like, why
• 31:12
  Speaker 3: what's happening? Why have we gonna where the money go?
• 31:15
  Speaker 3: You know? I think that's my best habit. I'm not
• 31:16
  Speaker 3: very trusting now sharing it with someone else.
• 31:18
  Speaker 1: So how would today's money diarist rate her own relationship
• 31:21
  Speaker 1: with money if we force her to give herself a grade?
• 31:23
  Speaker 3: If I was to give myself a money report, I
• 31:25
  Speaker 3: would give myself a B plus because I think I
• 31:28
  Speaker 3: am really thoughtful with money and I am very deliberate
• 31:31
  Speaker 3: with where I spend my money but at the same time,
• 31:34
  Speaker 3: I do think that if I'm going to be that way,
• 31:38
  Speaker 3: and if I'm going to like wear it like a
• 31:39
  Speaker 3: badge of honor, you know that I will return that
• 31:41
  Speaker 3: jacket if I don't wear it, if I don't see
• 31:43
  Speaker 3: myself wearing it, and all that kind of stuff. I
• 31:44
  Speaker 3: think that I also should be autonomous enough and independent
• 31:49
  Speaker 3: enough to do my homework about like investing, or about
• 31:52
  Speaker 3: other opportunities of where to put my money.
• 31:55
  Speaker 1: Okay, Victoria, what struck you most about twenty eight and
• 31:58
  Speaker 1: controlling his money diary?
• 31:59
  Speaker 5: That she called herself controlling instead of empowered. Honestly, I
• 32:03
  Speaker 5: think it's something that she should be really proud of.
• 32:05
  Speaker 5: You could hear it in her voice, and it made
• 32:07
  Speaker 5: me really proud of her that she's created exactly. She's
• 32:12
  Speaker 5: created this base that's made her feel confident and safe,
• 32:16
  Speaker 5: and I think that if we could all do that
• 32:18
  Speaker 5: for ourselves, we would be far far better off. But
• 32:21
  Speaker 5: I think she needs to change her mindset around the
• 32:23
  Speaker 5: way she's viewing money. Her money story sounded like it
• 32:26
  Speaker 5: had a massive impact on her life, and in a
• 32:29
  Speaker 5: really positive way. From a negative situation. She's created this
• 32:33
  Speaker 5: life where she's going to achieve so many things. She
• 32:36
  Speaker 5: said that she feels a little bit bad about, you know,
• 32:38
  Speaker 5: the way she approaches money with her partner, But potentially
• 32:41
  Speaker 5: by having a conversation about his money story, they could
• 32:44
  Speaker 5: get on the same page. If they can sit down
• 32:47
  Speaker 5: and share things about where she's come from and potentially
• 32:49
  Speaker 5: share the story she's just shared with us with her partner,
• 32:52
  Speaker 5: where did this come from? Why do you feel like this?
• 32:54
  Speaker 5: How does this impact our relationship? And he can do
• 32:57
  Speaker 5: the same thing. I think they'll be in a farm
• 33:00
  Speaker 5: empowered position to have those conversations, to purchase a house,
• 33:03
  Speaker 5: to have a shared bank account, because moving forward, it
• 33:06
  Speaker 5: sounds like she's planning her life with this person, and
• 33:09
  Speaker 5: money only gets harder when you introduce dependence and a
• 33:13
  Speaker 5: mortgage and things that are going to put more financial
• 33:15
  Speaker 5: stress on a relationship. So she can get across how
• 33:18
  Speaker 5: that works for her partner, how that works for her,
• 33:20
  Speaker 5: and how those things interlock, she's going to be in
• 33:23
  Speaker 5: a far more secure position than had she not had
• 33:26
  Speaker 5: that conversation.
• 33:27
  Speaker 1: So that's what she should improve on. What do you
• 33:29
  Speaker 1: think she's doing really well?
• 33:30
  Speaker 5: I feel like she's doing a lot saving saving I
• 33:33
  Speaker 5: think that she's done an incredible job for her age.
• 33:36
  Speaker 5: There are not many people that can say they've saved
• 33:38
  Speaker 5: that amount of money. I think the credit card potentially
• 33:42
  Speaker 5: could be knocked down. If you're in a position where
• 33:45
  Speaker 5: you've got a credit card with three thousand dollars on it,
• 33:47
  Speaker 5: you're potentially in a position where there's an interest rate
• 33:51
  Speaker 5: between fourteen and eighteen percent being applied to that. And
• 33:55
  Speaker 5: maybe it's a good idea to consider pulling some money
• 33:58
  Speaker 5: out of savings to get rid of instead of, you know,
• 34:01
  Speaker 5: paying off interest that essentially gets flushed down the toilet
• 34:04
  Speaker 5: and using those credit card repayments that she's making each
• 34:07
  Speaker 5: month just to replenish her savings.
• 34:09
  Speaker 1: How do you consider her overall self analysis?
• 34:11
  Speaker 3: Then?
• 34:12
  Speaker 1: Do you think she's been a bit hard on herself.
• 34:13
  Speaker 5: I think she's being pretty hard on herself. But I
• 34:16
  Speaker 5: think that's a reflection of the goals she's got. She's
• 34:18
  Speaker 5: dreaming big. There are things she wants to achieve and
• 34:21
  Speaker 5: places she wants to go, and she knows she's.
• 34:23
  Speaker 4: Not there yet.
• 34:24
  Speaker 5: To her, an a plus looks like having a home
• 34:26
  Speaker 5: paid off, it looks like having enough in savings, it
• 34:29
  Speaker 5: looks like not having hex step. So for her maybe
• 34:31
  Speaker 5: B plus is the right assessment for me. I think
• 34:34
  Speaker 5: she's doing fantastic. I would say she's an A plus
• 34:36
  Speaker 5: because she's at a stage in her life where that's
• 34:39
  Speaker 5: a fantastic place to be. But if she says she's
• 34:42
  Speaker 5: a B plus, I'm not gonna argue with her, because
• 34:44
  Speaker 5: we can only go up from here.
• 34:46
  Speaker 1: Well, that's all we have time for today. Unfortunately, that's
• 34:49
  Speaker 1: so quickly. Just before we head off, let's quickly wrap
• 34:51
  Speaker 1: up the boring but important stuff. The advice shared on
• 34:54
  Speaker 1: She's on the Money is general in nature and does
• 34:56
  Speaker 1: not consider your individual circumstances. She's on the Money purely
• 34:59
  Speaker 1: ex for educational purposes only and should not be relied
• 35:02
  Speaker 1: upon to make an investment or financial decision. Oh and yes,
• 35:05
  Speaker 1: don't worry, we promised. Victoria Divine is an authorized representative
• 35:09
  Speaker 1: of Consultant Financial Advices Proprietary Limited ABN six y five
• 35:13
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• 35:17
  Speaker 1: L two three O three two three. That was wordy
• 35:20
  Speaker 1: and numbere, but we got there.
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