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How to invest part two: Now we know micro investing is legit · She's On The Money

• 0:00
  Speaker 1: She's on the Money. She's on the Money. Hello, and
• 0:13
  Speaker 1: welcome to She's on the Money, the podcast Millennials Like
• 0:16
  Speaker 1: Financial Freedom. My name is Dodger King. I'm a copywriter
• 0:19
  Speaker 1: and journalism students and every Wednesday I sit down for
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  Speaker 1: a fun finance chat with millennial money expert Victoria to
• 0:25
  Speaker 1: I'm Victoria.
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  Speaker 2: Hello, Georgia, Hello, Hello.
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  Speaker 1: Now we have a monster show lined up for you today, guys.
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  Speaker 1: It's part two about deep dive into micro investing, where
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  Speaker 1: we will be answering ten of our favorite questions from
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  Speaker 1: our Facebook group, including everything from how to get started
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  Speaker 1: to how much you should be investing to see a
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  Speaker 1: worthwhile return. Now, if you haven't listened to part one
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  Speaker 1: of the micro Investing Chat, which we've recorded last week,
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  Speaker 1: then we recommend you go back and listen to that
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  Speaker 1: one first so you have a bit of context if
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  Speaker 1: you are just learning about micro investing for the first time.
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  Speaker 1: Today on the show, we will also be hearing from
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  Speaker 1: a money who has had a money makeover this year,
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  Speaker 1: and we will be answering a listener question on when
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  Speaker 1: is the right time to graduate from micro investing and
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  Speaker 1: move on to investing on a larger scale. Goodness a lot.
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  Speaker 1: They're victoria to find a lot to get through.
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  Speaker 2: Not enough maybe part three, Oh.
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  Speaker 1: Maybe we'll see. We'll see how today it goes. Before
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  Speaker 1: we do get into today's show, though, Money wins and confessions.
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  Speaker 1: What happened this.
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  Speaker 3: Week, Georgia King, once again, I have a money win
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  Speaker 3: slash confession for you. This week, I decided to buy
• 1:31
  Speaker 3: myself a couple of new tops online. Now, don't get
• 1:34
  Speaker 3: too excited. They are isolation tops, so think soft, long sleeves,
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  Speaker 3: T shirt material, like, we're not too bougie.
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  Speaker 2: But the website that I.
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  Speaker 3: Was purchasing them on, i'd put it all into my
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  Speaker 3: cart and then left it because I got a bit
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  Speaker 3: lazy to shut my laptop and went back to order
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  Speaker 3: them this morning. Actually, and now they have forty percent
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  Speaker 3: off on top of their already fifteen percent discount.
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  Speaker 2: So I'm winning.
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  Speaker 3: And I think my top's are like twelve dollars each.
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  Speaker 3: If that's not a money win, I don't know what
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  Speaker 3: it is. Don't ask whether I need more tops or not.
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  Speaker 3: Though that's a classic money win. I love that classic.
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  Speaker 3: I'm spending money to save money, so I'm pretty much
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  Speaker 3: making money.
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  Speaker 1: Yeah, Well that's what's that's he That's exactly how it works, right.
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  Speaker 3: But let's move on from that because my money wins
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  Speaker 3: and money confessions are getting a little bit dire. Have
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  Speaker 3: you got a dire money win on confession for us
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  Speaker 3: this week?
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  Speaker 2: Georgia?
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  Speaker 1: I actually feel like my money win this week is
• 2:24
  Speaker 1: like quintessential she's on the money post a girl vibe.
• 2:28
  Speaker 1: I sounded like, oh, guess when I said that?
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  Speaker 2: Can I guess?
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  Speaker 3: Yeah?
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  Speaker 1: You can guess.
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  Speaker 2: Is it about cheese?
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  Speaker 4: No?
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  Speaker 2: Is it about like insurance?
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  Speaker 4: Yes?
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  Speaker 1: How did you know? Because we spoke about it?
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  Speaker 3: Because I feel like all we do, all we do
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  Speaker 3: in this group is e cheese and go in hustle insurance.
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  Speaker 1: But it's true.
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  Speaker 2: So this week it is actually true. Did I get that?
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  Speaker 1: You did get that? But this week the dreaded car
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  Speaker 1: insurance was due and instead of just you know, paying
• 2:54
  Speaker 1: it mindlessly, I was like, what would she's on the
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  Speaker 1: money listeners do. They would challenge the fee, They would
• 3:01
  Speaker 1: look around compare the pair. Ah, So I had to
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  Speaker 1: look at heaps of different companies and found one for
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  Speaker 1: one hundred dollars less than what I was going to pay.
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  Speaker 3: So hey, that's pretty good. Was it with the same
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  Speaker 3: company or was it with the different company. I feel
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  Speaker 3: like everybody's been doing that in the Facebook group. So
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  Speaker 3: if you've been thinking about it and you have your
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  Speaker 3: car insurance coming up, definitely try and save yourself a.
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  Speaker 2: Couple of hundred bucks. Why not.
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  Speaker 3: That's an absolute money win that I think we can
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  Speaker 3: all try and make.
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  Speaker 2: Do it.
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  Speaker 1: Loved it post of the week? What have you got
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  Speaker 1: for me?
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  Speaker 3: Okay, so this week I have one from Jess, and
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  Speaker 3: Jess posted and these are my favorite posts.
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  Speaker 2: Just for the record, I'm not biased.
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  Speaker 3: She posted, Oh my gosh, you guys, I am finally
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  Speaker 3: debt free. She said, thanks to this podcast, I pulled
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  Speaker 3: my head out of the sand. I feel like that's
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  Speaker 3: such a victoria.
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  Speaker 1: That's very ute.
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  Speaker 3: Yeah, like I pulled my head out of the sand,
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  Speaker 3: Like it's written all over it. But she went through
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  Speaker 3: her statement for her loans and she essentially snowballed it all,
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  Speaker 3: got out of debt, and now after a few months
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  Speaker 3: she's completely debt free. And these are the stories that
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  Speaker 3: I adore hearing in our group, Like they are so
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  Speaker 3: inspiring for those of us who are in debt and
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  Speaker 3: are slowly working our ways out of it. Because there's
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  Speaker 3: a light at the end of the tunnel. And then
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  Speaker 3: for those of us who aren't in debt, like, I
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  Speaker 3: just feel like we're so proud of our little community
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  Speaker 3: being debt free and like the weight that's lifted off
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  Speaker 3: her shoulders, like I know what that feels like, and
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  Speaker 3: I just feel like that's such a win, like a
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  Speaker 3: genuine win.
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  Speaker 5: Yeah.
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  Speaker 3: Anyway, that was my favorite one from the week. Please
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  Speaker 3: try try and hustle me that.
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  Speaker 1: Okay, this one is whatsap mean, Victoria?
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  Speaker 2: Hold on, please try and top that, Georgia. Key.
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  Speaker 1: I don't know if I can top that.
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  Speaker 2: I can allot, It's fine, just tap out now, I can.
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  Speaker 1: I can mushroom top it because this there's not mushroom
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  Speaker 1: in our script for your money.
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  Speaker 3: Win, Okay, just for everyone listening this, I knew what
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  Speaker 3: her money wind was going to be as well.
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  Speaker 1: It's about mushking about it. Yeah, exactly. So this one
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  Speaker 1: is from the lovely Fiona who, in March this year,
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  Speaker 1: I decided to make a conscious decision decision to move
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  Speaker 1: towards a more plant based diet, which would make you proud, Victoria.
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  Speaker 2: It definitely does.
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  Speaker 1: The qualm was though that she began smashing through mushrooms
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  Speaker 1: because you can't eat soy and was spending about twelve
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  Speaker 1: dollars a week on shrooms, which is, you know, it's
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  Speaker 1: a lot of dollars. Fortunately, she found a grow your
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  Speaker 1: own mushroom kit last month on Facebook Marketplace for twenty dollars.
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  Speaker 1: Sounds sus, but the results here are amazing. After three
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  Speaker 1: weeks of basically hiding it in her laundry cupboard and
• 5:30
  Speaker 1: occasionally spritzing it with water, she harvested some yesterday, about
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  Speaker 1: five hundred grams worth, and that was only a quarter
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  Speaker 1: of what had sprouted. She said they tasted amazing, and
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  Speaker 1: a kit yields about every six to ten weeks, depending
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  Speaker 1: on how well you care for it. And I just
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  Speaker 1: think that is the most like unique money win that
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  Speaker 1: we've ever seen on the show, Victoria.
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  Speaker 3: I'm not gonna lie, it's a pretty good money win,
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  Speaker 3: but I just feel like it is a very sus
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  Speaker 3: money win as well, like, hey, I've been growing some
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  Speaker 3: stuff in my laundry and it's a.
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  Speaker 2: Yeah link saving me.
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  Speaker 1: Yes.
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  Speaker 2: No, I really love it. And Fiona is great.
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  Speaker 3: She's actually been a part of our Facebook community because
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  Speaker 3: I swear I have seen her name since the very
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  Speaker 3: beginning in our community. She posts all the time, she
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  Speaker 3: always talks about our stuff online, and she's just a
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  Speaker 3: delightful human to be honest. So when I saw that
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  Speaker 3: you were posting about Fiona mushrooms, I was stoked. And
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  Speaker 3: to be honest, I'm probably going to copy her and
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  Speaker 3: try and grow my own do it.
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  Speaker 2: I did. Let us know how you go. I just
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  Speaker 2: think it'd be a bit of fun if nothing else,
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  Speaker 2: if I mess it.
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  Speaker 1: Up like it was a fun time, just shrooms in
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  Speaker 1: the cupboard, love it shroom chat Aside, Victoria, we can
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  Speaker 1: move on to the main topic of today's show. So
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  Speaker 1: today is really all about addressing your most burning micro
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  Speaker 1: investing questions. Now, when you posted in the group about
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  Speaker 1: this subject, to me, it got a lot of traction.
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  Speaker 1: We had like five hundred comments questions.
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  Speaker 2: Yeah, look, I'm not gonna lie.
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  Speaker 3: I didn't expect it to be that wild, And we
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  Speaker 3: obviously can't answer five hundred questions.
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  Speaker 1: We'll go for too lot.
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  Speaker 3: But you've gone through and picked ten of the best
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  Speaker 3: or ten of the most pointed questions, and I agree
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  Speaker 3: with a lot of them being in this list.
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  Speaker 1: So Glad, what do you reckon about just jumping straight in,
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  Speaker 1: let's do it all right. So our first question here,
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  Speaker 1: which I think is pretty apt, is when it comes
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  Speaker 1: to micro investing, how do you even start?
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  Speaker 3: So first things first, you need to understand your goals
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  Speaker 3: and values, which is probably going to be the most
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  Speaker 3: basic thing. It's like saying sticking your head in the
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  Speaker 3: sand or fake rich real. I just feel like I'm
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  Speaker 3: a broken record and you guys are probably going to
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  Speaker 3: get really sick of me really soon. But at the
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  Speaker 3: end of the day, it's all about your values and
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  Speaker 3: your goals. If you're trying to understand when to start
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  Speaker 3: micro investing, but you have other financial goals, well maybe
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  Speaker 3: now's not the right time if you just don't have
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  Speaker 3: the cash flow for it. In saying that, you don't
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  Speaker 3: need massive amounts of money to start investing. On micro
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  Speaker 3: investing platforms, you can literally start with as little as
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  Speaker 3: five dollars, and if you use a referral code, you
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  Speaker 3: can often get that five bucks for free, which is
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  Speaker 3: honestly a big money win. One hundred percent return on
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  Speaker 3: your non existent investment, so that's pretty good. But essentially
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  Speaker 3: all you need to do is download one of the
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  Speaker 3: apps app of your choice and enter all your information.
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  Speaker 3: It's secure of course on the platforms that we talk
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  Speaker 3: about and we've reviewed, and basically you're set to go
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  Speaker 3: within five minutes, so it's not hard to start. It's
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  Speaker 3: more around making sure that these things actually align to
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  Speaker 3: your goals in values and that you understand why you
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  Speaker 3: want to invest, not just oh, I listened to the
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  Speaker 3: Sheese on the Money podcast, so therefore I guess I
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  Speaker 3: have to micro invest. That's not the point of this
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  Speaker 3: at all. This is just about educating you so that
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  Speaker 3: you can make a decision that might help you achieve
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  Speaker 3: your goals in line with your values.
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  Speaker 1: Perfect, all right, So our next question here is when
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  Speaker 1: starting to use a micro investing app, is it better
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  Speaker 1: to start with a large deposit and add to it
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  Speaker 1: in small or large increments or does it not matter
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  Speaker 1: how much slash when you add it?
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  Speaker 2: So all of those are correct.
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  Speaker 3: I think that this is a really interesting one because
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  Speaker 3: everyone seems to think that you need to save heaps
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  Speaker 3: and heaps to start investing, when that simply not the case.
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  Speaker 5: For me.
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  Speaker 3: The most important thing is having cash flow so that
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  Speaker 3: you're able to afford it. There's genuinely like, not no point,
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  Speaker 3: but it's far better for you to invest on a
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  Speaker 3: regular basis as opposed to just putting fifty dollars in
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  Speaker 3: there and just wishing for the best. It's not something
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  Speaker 3: I would recommend by any stretch of the imagination. So
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  Speaker 3: when you're starting with a microinvesting app, to be honest,
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  Speaker 3: i'd want you to start small and just be consistent,
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  Speaker 3: Like I don't need you to tip your life savings
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  Speaker 3: in or even consider that. To be honest, that's a
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  Speaker 3: terrible idea. We want to just dip our toes in
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  Speaker 3: the water with microinvesting apps, see what's going on with it,
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  Speaker 3: and then start to increase it in line with what
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  Speaker 3: we want to achieve. So obviously, if you are, you know,
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  Speaker 3: putting fifty dollars in, you can't expect to have a
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  Speaker 3: five thousand dollars return. So it's going to quantify depending
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  Speaker 3: on how much to invest over how long a period.
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  Speaker 3: But at the end of the day, I've said this
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  Speaker 3: on the podcast so many times. From little things, big things.
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  Speaker 2: Really do grow.
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  Speaker 3: And if you can afford fifty dollars a week, that's fantastic,
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  Speaker 3: And you know what, like even if it's five or
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  Speaker 3: ten dollars a week, just getting in the habit of
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  Speaker 3: beginning to invest is going to set you up for
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  Speaker 3: financial success in the long term.
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  Speaker 1: Love that, well, said b Off the back of that question,
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  Speaker 1: would you say that it would be better to do
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  Speaker 1: fifty dollars a week every week instead of like five
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  Speaker 1: hundred dollars one time here and then five months doing
• 10:22
  Speaker 1: a grand or something like that.
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  Speaker 3: Yes, yes, yes, And the reason I would say that
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  Speaker 3: is because of dollar cost averaging. Now that is not
• 10:29
  Speaker 3: the sexiest term, but like you know what, and she's
• 10:31
  Speaker 3: on the money, We're not about sexy anything. I mean,
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  Speaker 3: we use terms like stick it in the sand. Dollar
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  Speaker 3: cost averaging is a really effective way of managing your risk.
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  Speaker 3: So say you invest that. You know you said before
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  Speaker 3: five hundred dollars, So you invested that today in the
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  Speaker 3: share market. You don't know if the share market's going
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  Speaker 3: to crash tomorrow or if it's going to grow exponentially.
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  Speaker 3: Like we can't predict the future. I've said a million
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  Speaker 3: times that if I could, I'd be really rich, and
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  Speaker 3: it's just not going to happen because I'm no Warren Buffett,
• 10:59
  Speaker 3: and even he isn't always one hundred percent on the money.
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  Speaker 3: But essentially, dolar cost averaging is a really great alternative
• 11:06
  Speaker 3: to investing in a lump sum. Instead of investing all
• 11:09
  Speaker 3: your capital at one time, the idea is you invest
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  Speaker 3: smaller fixed amounts on a really regular basis over an
• 11:15
  Speaker 3: extended period of time. So, for example, instead of investing
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  Speaker 3: five hundred dollars in one transaction, you could just invest
• 11:21
  Speaker 3: fifty dollars each month for the foreseeable future. The price
• 11:25
  Speaker 3: of the asset you're buying might go up and down
• 11:28
  Speaker 3: in that time period, though, but you are always investing
• 11:31
  Speaker 3: the same amount. What happens is you end up buying
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  Speaker 3: more of the asset when the price falls in any
• 11:36
  Speaker 3: given month, and fewer if that price is higher. So
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  Speaker 3: dolo cost averaging is in some cases kind of like
• 11:42
  Speaker 3: taking away the timing risk of the market of trying
• 11:45
  Speaker 3: to pick the bottom of the market, which as I've
• 11:47
  Speaker 3: said before, no one can actually do, and can possibly
• 11:50
  Speaker 3: offer other benefits in volatility or hard to predict markets
• 11:54
  Speaker 3: where investing a lump sum can actually just be really
• 11:57
  Speaker 3: nerve wracking, Like at the end of the day, it
• 11:58
  Speaker 3: can be really scary to invest a lump some into
• 12:01
  Speaker 3: the market. So, for example, let's just really simplify this
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  Speaker 3: back if I invested one dollar. Like, let's just be
• 12:09
  Speaker 3: as simple as possible. If I invested one dollar in
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  Speaker 3: the share market today and that gave me one hundred shares.
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  Speaker 3: I wish it was like that, but this is going
• 12:17
  Speaker 3: to make a lot of sense. Right, one dollar into
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  Speaker 3: the market and for that I got one hundred shares
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  Speaker 3: in return, And then next week the share market drops
• 12:27
  Speaker 3: by half, so every share is worth half of what
• 12:30
  Speaker 3: it was previously. But I'm still investing one dollar. Well,
• 12:34
  Speaker 3: I got double the shares that I got last time,
• 12:36
  Speaker 3: because now for a dollar, I can buy two hundred
• 12:39
  Speaker 3: shares instead of one hundred shares, So you're always investing
• 12:42
  Speaker 3: the same amount. But the same thing is going to
• 12:45
  Speaker 3: be true if you then invest that same one dollar
• 12:48
  Speaker 3: and the share market is up, so you'll get less shares,
• 12:51
  Speaker 3: but you'll still be investing the same amount of money.
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  Speaker 3: And what happens over time is this on average brings
• 12:58
  Speaker 3: down the average of each individual share. So say if
• 13:02
  Speaker 3: you go back to that example before, if the one
• 13:05
  Speaker 3: dollar being invested, this's one dollar one month and one
• 13:08
  Speaker 3: dollar the next month. One month it's up or it's
• 13:11
  Speaker 3: down fifty percent, that would mean that your average share
• 13:14
  Speaker 3: price goes to seventy five cents instead of one dollar
• 13:17
  Speaker 3: for one hundred shares. Does that make sense? So we're
• 13:19
  Speaker 3: just like trying to bring it down, but we're always
• 13:21
  Speaker 3: making use of the fact that we cannot time the market.
• 13:25
  Speaker 3: So for me, it's better to be consistent than it
• 13:28
  Speaker 3: is for having.
• 13:29
  Speaker 2: Lump massive amounts going in.
• 13:31
  Speaker 4: Now.
• 13:31
  Speaker 3: That's not to say Georgia and I feel like we're
• 13:33
  Speaker 3: getting off track here a little bit, but that's okay
• 13:36
  Speaker 3: because this is just more investment chat and I feel
• 13:37
  Speaker 3: like if you guys, the more you know, the more
• 13:39
  Speaker 3: empowered you're going to be. That's not to say you
• 13:42
  Speaker 3: shouldn't have a lump sum in there to begin with
• 13:45
  Speaker 3: to justify the fees and justify how much it's going
• 13:48
  Speaker 3: to cost you to invest. So it's always nice to
• 13:51
  Speaker 3: kind of like start with a certain amount, like, you know,
• 13:54
  Speaker 3: if you can afford it, putting a couple of one
• 13:55
  Speaker 3: hundred dollars in there, whether that's two hundred or three
• 13:58
  Speaker 3: hundred dollars, just to make sure the monthly fee of
• 14:01
  Speaker 3: whatever platform you choose is definitely worth it, because you
• 14:04
  Speaker 3: don't want to just be investing five dollars a month
• 14:06
  Speaker 3: and then half of that, you know, two dollars fifty
• 14:08
  Speaker 3: is your monthly fee, Like, that's not smart finance in
• 14:12
  Speaker 3: saying that, I said on last week's podcast, and you
• 14:14
  Speaker 3: guys can go back to that. To me, two dollars
• 14:16
  Speaker 3: fifty a month is actually very very cheap for a
• 14:19
  Speaker 3: financial education in the share market.
• 14:21
  Speaker 1: What you just said leads in perfectly to our third question.
• 14:25
  Speaker 1: So this might be a really quick answer because you
• 14:27
  Speaker 1: pretty much said it there. But is there a minimum
• 14:29
  Speaker 1: amount we should be investing to cover the cost of
• 14:32
  Speaker 1: any fees involved in using the platform?
• 14:34
  Speaker 2: Yes and no.
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  Speaker 3: So I think it's important to just work out what
• 14:38
  Speaker 3: your goals and values are and remember that you know,
• 14:41
  Speaker 3: investing to begin with is going to be more expensive
• 14:44
  Speaker 3: than investing hundreds of thousands of dollars. So the more
• 14:47
  Speaker 3: you invest, the cheaper investment usually becomes because obviously you
• 14:51
  Speaker 3: get scale and you're able to you know, do things
• 14:53
  Speaker 3: like wholesale investing, and that's the ultimate goal. But do
• 14:57
  Speaker 3: be prepared for an investment to the cost some money
• 15:00
  Speaker 3: up front. And I think that's something that is a
• 15:03
  Speaker 3: little bit shocking to a lot of people when they go, oh,
• 15:06
  Speaker 3: that investing it's.
• 15:07
  Speaker 2: Just not worth it.
• 15:07
  Speaker 3: And it's like, well, actually it is in the long term,
• 15:10
  Speaker 3: but they're you know, no paying, no gain kind of thing.
• 15:13
  Speaker 3: So like, if you're starting with it a micro investing platform,
• 15:16
  Speaker 3: usually it will be the monthly fee, or on some
• 15:19
  Speaker 3: platforms there are no monthly fees, which is fantastic. But
• 15:22
  Speaker 3: once you start to step into the realm of investing
• 15:26
  Speaker 3: properly and I say properly because I'm micro investing is
• 15:29
  Speaker 3: proper investment, but it's not your own share portfolio. It's
• 15:33
  Speaker 3: kind of on a different platform and it will always
• 15:35
  Speaker 3: be there. But for me, it would be about taking
• 15:39
  Speaker 3: into consideration at what point is it worth paying a
• 15:42
  Speaker 3: financial advisor. I personally wouldn't want to charge you a
• 15:46
  Speaker 3: couple of thousand dollars for financial advice if you're only
• 15:49
  Speaker 3: investing one thousand dollars. That's not financially responsible of me.
• 15:53
  Speaker 3: But for you as an investor, I think you should
• 15:56
  Speaker 3: be looking for introm options where you can build up
• 15:59
  Speaker 3: your amount and then once you reach a certain point
• 16:01
  Speaker 3: where you say this is worth it for me, at
• 16:03
  Speaker 3: that point you get proper financial advice. So no, there's
• 16:07
  Speaker 3: not a minimum amount. Obviously the minimum will be required
• 16:10
  Speaker 3: on each different platform and I'm pretty sure for most
• 16:12
  Speaker 3: micro investing platforms it's about five dollars. But if you
• 16:16
  Speaker 3: really want to make sure that the fees are really reasonable,
• 16:18
  Speaker 3: I would be making sure that they are at least
• 16:21
  Speaker 3: below one percent of your platform's invested amount. But in
• 16:25
  Speaker 3: saying that, if I was just starting, I wouldn't be
• 16:28
  Speaker 3: too concerned. I'd just be more concerned about making sure
• 16:30
  Speaker 3: that I can be consistent and actually, you know, grow
• 16:33
  Speaker 3: a portfolio in the first place.
• 16:34
  Speaker 1: So beautiful. And again that leads into the next question. So,
• 16:38
  Speaker 1: how long roughly should we be expecting to keep money
• 16:42
  Speaker 1: in there for it to be worthwhile?
• 16:44
  Speaker 2: Can I say forever? Because forever? Yeah, and a story
• 16:47
  Speaker 2: next question.
• 16:47
  Speaker 3: No, guys, I always always, always say this investing is
• 16:51
  Speaker 3: not for the short term. Don't go into micro investing
• 16:54
  Speaker 3: with the attitude that you can just chuck fifty dollars
• 16:56
  Speaker 3: in a month and you're going to become a millionaire.
• 16:58
  Speaker 3: It's really the same as investing in any other way.
• 17:02
  Speaker 3: It's just on a smaller scale. So the return is
• 17:04
  Speaker 3: going to be smaller if you're investing small amounts, and
• 17:07
  Speaker 3: if you're investing larger amounts in the stock market, your
• 17:10
  Speaker 3: returns would be higher, so it's not going to happen overnight.
• 17:13
  Speaker 3: But I would leave it in honestly for as long
• 17:16
  Speaker 3: as you possibly can, but in line with your goals
• 17:18
  Speaker 3: and values. To me, I would never want a client
• 17:21
  Speaker 3: investing in an asset for anything under ten years. In
• 17:25
  Speaker 3: saying that, I've got friends who use Raise, I even
• 17:28
  Speaker 3: use Rays, and I pull it out after a year
• 17:30
  Speaker 3: when it hits a certain amount, I pull mine out
• 17:33
  Speaker 3: so I know, and I'm always really transparent about this
• 17:36
  Speaker 3: in the Facebook group. But once my raise hits about
• 17:38
  Speaker 3: one thousand dollars, I pull that out and I put
• 17:40
  Speaker 3: it into my bigger share platform just because I look
• 17:44
  Speaker 3: at it and I go, okay, no problems, Like I'd
• 17:46
  Speaker 3: much prefer.
• 17:46
  Speaker 2: It to be in my other, you know portfolio.
• 17:49
  Speaker 3: It's not because Raise is bad, it's not because the
• 17:52
  Speaker 3: platforms are bad. It's just my personal preference and I
• 17:54
  Speaker 3: can't really justify why, except I like all of my
• 17:57
  Speaker 3: stuff in one place. I also have friends who use
• 18:01
  Speaker 3: it to buy golf clubs, like they have their spare
• 18:03
  Speaker 3: change roundup, and they're really happy to watch it be
• 18:06
  Speaker 3: invested and get a little bit of return, and they
• 18:08
  Speaker 3: will only take it out when the market is up
• 18:10
  Speaker 3: and they've made something and they go, you know what,
• 18:12
  Speaker 3: that didn't sting me. I'll go buy some golf clubs
• 18:15
  Speaker 3: and you're like, okay, no problems, like you do you
• 18:17
  Speaker 3: The same could go for anything. I've got friends who
• 18:20
  Speaker 3: also use these platforms to help them save for holidays.
• 18:24
  Speaker 3: I don't think that there's any right or wrong way
• 18:26
  Speaker 3: to use these platforms. But to me, it's about making
• 18:30
  Speaker 3: sure that you understand the platforms because at the end
• 18:33
  Speaker 3: of the day, if you are just getting one of
• 18:34
  Speaker 3: these platforms to save, you need to know that it's
• 18:37
  Speaker 3: not a savings account, it's an investment account, and if
• 18:41
  Speaker 3: you aren't willing to take on that risk, then it's
• 18:44
  Speaker 3: probably the wrong choice for you.
• 18:45
  Speaker 1: So I feel like there could be a perception because
• 18:48
  Speaker 1: micro investing platforms are apps, they appeal to millennials, you know,
• 18:53
  Speaker 1: they're easy to use, whatever, that's kind of their usp.
• 18:57
  Speaker 1: Would you say that, like you you can't just go
• 19:01
  Speaker 1: into it with like a two month outlook like yeah,
• 19:04
  Speaker 1: no way, longer.
• 19:05
  Speaker 2: Yeah, no way.
• 19:06
  Speaker 3: And we've seen this on our Facebook group before where
• 19:08
  Speaker 3: people have posted and they're like, oh my gosh, well
• 19:10
  Speaker 3: I deleted my Raise account because the returns were dismal,
• 19:13
  Speaker 3: and you're like, what I like, personally, I've had great
• 19:17
  Speaker 3: returns from Rais Right now I've got, you know, not
• 19:20
  Speaker 3: so great returns in all of my portfolios. Because it
• 19:23
  Speaker 3: turns out, Georgia we're going through a global pandemic and
• 19:27
  Speaker 3: that is quite well reflected in the share market. But
• 19:31
  Speaker 3: in saying that, I just feel like, potentially these people
• 19:35
  Speaker 3: aren't educated enough in investment to know that if you're
• 19:39
  Speaker 3: going to you know, and this happened recently, if you're
• 19:42
  Speaker 3: going to start investing on a micro investing platform, and
• 19:44
  Speaker 3: you picked that micro investing platform in March this year,
• 19:47
  Speaker 3: and then by June you were really upset with the
• 19:50
  Speaker 3: response that is happening on your platform.
• 19:52
  Speaker 2: Like, of course it was.
• 19:53
  Speaker 3: Going to go down. That's market returns, that's market volatility,
• 19:57
  Speaker 3: that is how it works. You were always going to
• 19:59
  Speaker 3: lose money or lose value in your portfolio because Georgia,
• 20:03
  Speaker 3: as we always say, you do not lose money on
• 20:05
  Speaker 3: the share market unless you actually cash that money out. Yes,
• 20:09
  Speaker 3: it was going to go down, but that is actually
• 20:11
  Speaker 3: an okay thing. And what I would want to see
• 20:14
  Speaker 3: people have the mind frame of is when they start
• 20:17
  Speaker 3: investing and the share market drops, and maybe if they've
• 20:20
  Speaker 3: got a little bit extra cash, that might be a
• 20:22
  Speaker 3: really good time to put it into the share market
• 20:24
  Speaker 3: to get a better return. In saying that, that's obviously
• 20:27
  Speaker 3: not advice, it's just you know, how I run my portfolios.
• 20:31
  Speaker 1: Let's move on to our next question here. Micro investing
• 20:34
  Speaker 1: seems good for diversity in a short period of time,
• 20:37
  Speaker 1: but is it really worth it over the long run
• 20:39
  Speaker 1: in terms of fees, etc. Is it more beneficial to
• 20:42
  Speaker 1: consistently invest in single company shares?
• 20:45
  Speaker 2: Okay, Georgia.
• 20:46
  Speaker 3: So when we talk about diversity, micro investing platforms are
• 20:50
  Speaker 3: usually really well diversified because they have what's called a
• 20:54
  Speaker 3: fund manager running them. So fund manager sounds complicated, but
• 20:58
  Speaker 3: it is one dude or one woman who runs the
• 21:01
  Speaker 3: fund and that's their job. They pick the stocks, they
• 21:03
  Speaker 3: come in, they come out, They you know, run it
• 21:06
  Speaker 3: and make the decisions on behalf of the entire community
• 21:09
  Speaker 3: that are investing in that platform. And they're kind of
• 21:11
  Speaker 3: like the boss in charge of it. So they've obviously
• 21:14
  Speaker 3: got teams behind them, but they will make the decision
• 21:17
  Speaker 3: to go, Okay, cool, We're going to sell Apple shares
• 21:19
  Speaker 3: today and pick up some more.
• 21:21
  Speaker 2: You know, Microsoft shares.
• 21:22
  Speaker 3: Like these are the people making the big decisions on
• 21:25
  Speaker 3: behalf of you in relation to the market. And that's
• 21:27
  Speaker 3: something that a micro investing platform brings to the table
• 21:30
  Speaker 3: because otherwise, if you're just investing in individual company shares
• 21:34
  Speaker 3: on your own, how do you know what the market's doing?
• 21:37
  Speaker 3: Are you a financial advisor? Can you make these decisions?
• 21:41
  Speaker 3: At what point do you know it's a good time
• 21:43
  Speaker 3: to sell something or buy something? Should you be buying
• 21:45
  Speaker 3: it in the first place? Is actually aligned to your
• 21:48
  Speaker 3: value proposition and your values as a whole.
• 21:51
  Speaker 2: It depends.
• 21:52
  Speaker 3: But also you've got to remember that the reason we
• 21:55
  Speaker 3: want diversity is too low a risk. Like we are young,
• 21:59
  Speaker 3: or most people but are listening to this podcast are
• 22:01
  Speaker 3: relatively young, haven't started their investment journey yet because they
• 22:05
  Speaker 3: simply just don't have the income for it yet. So
• 22:07
  Speaker 3: we want diversification in our portfolios to lower risk. And
• 22:12
  Speaker 3: what I mean by that is, you know, if real
• 22:14
  Speaker 3: estate is off and you have some shares in some
• 22:17
  Speaker 3: commercial real estate companies, well, maybe healthcare is performing, so
• 22:22
  Speaker 3: you know that'll hold your portfolio up. And maybe healthcare
• 22:25
  Speaker 3: is performing at like ten percent, but real estate's performing
• 22:28
  Speaker 3: at like negative two for some reason, and these are
• 22:30
  Speaker 3: all hypotheticals, it would bring it back down to an
• 22:33
  Speaker 3: average return. Whereas if you're investing in individual company stocks,
• 22:37
  Speaker 3: and now I'm not saying this about people who have
• 22:40
  Speaker 3: invested in, you know, a diversified portfolio of individual stocks,
• 22:44
  Speaker 3: that's a different thing. But if you just go out
• 22:46
  Speaker 3: and buy a bank because you say, well, banks are good,
• 22:48
  Speaker 3: they're a good asset, they're pretty stable, you know, Australian banks,
• 22:52
  Speaker 3: that's a thing that people invest in. Maybe I'll just
• 22:55
  Speaker 3: go on my comset app and just buy that consistently. Well,
• 22:59
  Speaker 3: what if that banks a bad day, what if it
• 23:01
  Speaker 3: just completely GNOVS dives by ten percent, you are going
• 23:05
  Speaker 3: to feel that entire ten percent drop in your portfolio,
• 23:09
  Speaker 3: as opposed to it having been weighed up by something else.
• 23:12
  Speaker 3: So if you're investing in you know, spaceship for example,
• 23:15
  Speaker 3: they give you exposure companies like Apple and Microsoft and Adobe,
• 23:19
  Speaker 3: and they have a whole heap of different areas that
• 23:21
  Speaker 3: they invest so that when one thing's off, usually something
• 23:25
  Speaker 3: else is performing. And we're looking for an average return.
• 23:28
  Speaker 3: When you invest just in a direct company stock, you're
• 23:32
  Speaker 3: feeling the full brunt of that one individual shares return
• 23:36
  Speaker 3: and therefore that is just the return. There's no averaging
• 23:39
  Speaker 3: it out.
• 23:39
  Speaker 1: It is what it is.
• 23:41
  Speaker 3: So for me, it's more about just making sure that
• 23:43
  Speaker 3: we are safe and we are secure, and instead of
• 23:46
  Speaker 3: being on super rough seas where we feel every single
• 23:49
  Speaker 3: drop and every single high, we kind of just sit
• 23:52
  Speaker 3: on calm water that trickles and.
• 23:53
  Speaker 1: You know, ebbs and flows, ebbs and flows.
• 23:56
  Speaker 3: It's very nice, the edge of the lake, beautiful day,
• 23:59
  Speaker 3: you know what I mean. Like, yes, one of those
• 24:01
  Speaker 3: things where diversification is not complicated to understand when you
• 24:06
  Speaker 3: understand that, it's about just having one pie with lots
• 24:09
  Speaker 3: of little slices in it that make up the big slice.
• 24:12
  Speaker 3: So if one little slice is you know, taken away,
• 24:15
  Speaker 3: it doesn't really impact the big pie. Whereas if you
• 24:18
  Speaker 3: invest in one share that big pie, if someone takes
• 24:21
  Speaker 3: a slice, they take the entire thing. So I think
• 24:23
  Speaker 3: it's really important to just understand the importance of having
• 24:26
  Speaker 3: diversification in any platform and in any type of share
• 24:31
  Speaker 3: investment strategy.
• 24:32
  Speaker 1: So we want lots of different slices.
• 24:34
  Speaker 2: I could talk about this for ages. We need to
• 24:36
  Speaker 2: do more investing podcasts. Tragicy Oh, my gosh, it's my
• 24:40
  Speaker 2: favorite topic.
• 24:41
  Speaker 1: I couldn't even you can tell you're glowing over there
• 24:43
  Speaker 1: on the zoom screen. Sp.
• 24:44
  Speaker 3: It's actually concerning, Like, honestly, it is so concerning how
• 24:49
  Speaker 3: excited I get about this stuff.
• 24:51
  Speaker 1: It's good your passionate. Thank you. You go to our
• 24:54
  Speaker 1: next question, of course we should, okay, So how much
• 24:57
  Speaker 1: should you aim to be putting away into these accounts
• 25:00
  Speaker 1: a certain percentage of your income? Question mark.
• 25:03
  Speaker 3: I like how you say that, Georgia, because you know
• 25:05
  Speaker 3: that grinds my years. Yeah, okay, So I dislike, strongly dislike.
• 25:12
  Speaker 3: I grew up with a very beautiful mother who used
• 25:14
  Speaker 3: to tell me, Victoria, you don't hate anything, You only
• 25:17
  Speaker 3: ever strongly dislike things. Hate is not a word we
• 25:20
  Speaker 3: use in this family. So I don't hate things.
• 25:22
  Speaker 2: Friends.
• 25:23
  Speaker 3: I strongly dislike basing your income on percentages because I
• 25:28
  Speaker 3: think it's wildly unrealistic and it is just not a
• 25:31
  Speaker 3: fair way of going about things. So if I say
• 25:34
  Speaker 3: to you, Georgia, like, let's just live in hypothetical land again,
• 25:37
  Speaker 3: because I feel like that's a really great place to be.
• 25:39
  Speaker 3: For examples, if we earn forty thousand dollars a year,
• 25:42
  Speaker 3: for example, if I then said, Georgia, you need to
• 25:45
  Speaker 3: save and invest fifteen percent of your income, you might
• 25:48
  Speaker 3: go but Victoria, I have rent and bills, and I've
• 25:51
  Speaker 3: got a kid, and you know, I've got all these
• 25:53
  Speaker 3: other financial goals and things that I've got to payoff,
• 25:56
  Speaker 3: and I've got this loan over here of five grand. Like, Victoria,
• 25:59
  Speaker 3: I can't reasonably pay fifteen percent of my income into
• 26:03
  Speaker 3: a savings or investment portfolio each month. And I go, well,
• 26:06
  Speaker 3: that makes sense. But then Georgia, maybe in a couple
• 26:08
  Speaker 3: of years you come to me and you say, Victoria,
• 26:10
  Speaker 3: I'm earning four hundred thousand dollars, and I go, gee,
• 26:13
  Speaker 3: you clearly don't work for shees on the money and
• 26:17
  Speaker 3: you then say, so I'm investing in saving fifteen percent.
• 26:20
  Speaker 2: Of my income.
• 26:21
  Speaker 3: Well, Georgia, King, that's just not enough for your income,
• 26:24
  Speaker 3: Like you are not investing enough. Whereas on the flip side,
• 26:27
  Speaker 3: if you were earning an income of forty thousand dollars,
• 26:29
  Speaker 3: that might just be too much and be too ridiculous
• 26:32
  Speaker 3: and put too much unnecessary pressure on yourself to achieve something.
• 26:35
  Speaker 3: So if we could just drop having a certain percentage
• 26:38
  Speaker 3: of your income going into something and actually working out
• 26:41
  Speaker 3: what our budget is, what our cash flow is, and
• 26:43
  Speaker 3: working out what we can afford in line with our
• 26:44
  Speaker 3: goals and values. We're going to be far better off
• 26:48
  Speaker 3: because there is not one thing wrong with not being
• 26:51
  Speaker 3: able to afford to invest right now. And I don't
• 26:53
  Speaker 3: want people to be listening along going but Victoria, I
• 26:55
  Speaker 3: can't afford five hundred dollars a month, like girl, I know,
• 26:59
  Speaker 3: and it's really hard that you're in that position at
• 27:01
  Speaker 3: the moment, and hopefully one day you will be in
• 27:03
  Speaker 3: that position. But I think we need to just drop
• 27:06
  Speaker 3: the unnecessary pressure that we're putting on ourselves to do
• 27:08
  Speaker 3: what other people are doing, especially if we're just doing
• 27:11
  Speaker 3: the best that we can. And like, if you're here
• 27:13
  Speaker 3: listening to this podcast, like you are five million steps
• 27:17
  Speaker 3: ahead of everybody else who quote Victori at Vine is
• 27:20
  Speaker 3: sticking their head in the sand.
• 27:21
  Speaker 1: Yeah yeah, well said Okay, so you kind of already
• 27:24
  Speaker 1: answered the next question, but it is from a New
• 27:28
  Speaker 1: Zealand listener, which I'm here for.
• 27:31
  Speaker 3: So yeah, New Zealand's my favorite place on it I
• 27:34
  Speaker 3: have never been a killin Honestly, it is the most
• 27:37
  Speaker 3: delightful place in the entire world. And that's coming from
• 27:40
  Speaker 3: a Tasmanian who has come from a beautiful state in
• 27:43
  Speaker 3: the beginning. So honestly it's stunning. If you've not been
• 27:46
  Speaker 3: to New Zealand, get on over there. They've also got
• 27:48
  Speaker 3: kind people and they're always so nice in our grip,
• 27:50
  Speaker 3: so obviously that's a thing.
• 27:52
  Speaker 1: Well, I mean, we've got the travel bubble now, so
• 27:54
  Speaker 1: you know, maybe we can do a little travel bonus
• 27:57
  Speaker 1: episode that yeah, bad idea.
• 28:00
  Speaker 3: Not yeah, guys, money loss Actually, just to add add
• 28:03
  Speaker 3: in here, like bonus money loss from Victoria, I had
• 28:07
  Speaker 3: a holiday booked to New Zealand and I had to
• 28:09
  Speaker 3: cancel it, which is absolutely fine, and I lost the flights. Okay,
• 28:14
  Speaker 3: that sucks, but I also have accommodations, so I guess
• 28:16
  Speaker 3: I've got to justify our holiday to New Zealand at
• 28:19
  Speaker 3: some point in the near future to make up for that.
• 28:21
  Speaker 1: Oh so your accommodation is still booked sort of thing.
• 28:24
  Speaker 3: We got given holiday credits, yeah, right, so that we
• 28:27
  Speaker 3: can still go over and still you know, stay in
• 28:30
  Speaker 3: the hotel that we're going to stay in that and
• 28:32
  Speaker 3: we're meant to go in like July.
• 28:33
  Speaker 2: So clearly that didn't happen. Guys.
• 28:35
  Speaker 1: Hopefully next year. Hopefully next year. Yeah, honestly, this next
• 28:39
  Speaker 1: year would be all chat from us. I'm loving it.
• 28:42
  Speaker 1: Are you?
• 28:43
  Speaker 3: Victoria didn't get to go skiing? Most first world problem ever?
• 28:48
  Speaker 1: You privileged bitch?
• 28:50
  Speaker 2: I mean, well that's true. I am incredibly lucky.
• 28:55
  Speaker 1: But back to your question, Yeah, New Zealand listener, Yes,
• 28:59
  Speaker 1: so I I've just started with chess in New Zealand,
• 29:02
  Speaker 1: but I'm only able to do a small amount per week.
• 29:06
  Speaker 1: I then wonder if it's even worth only doing a
• 29:08
  Speaker 1: small amount, like ten dollars a week small amount? Is
• 29:12
  Speaker 1: the reality that you need larger amounts or is it
• 29:14
  Speaker 1: just a case of having to start somewhere?
• 29:16
  Speaker 3: Ten dollars a week is an incredible amount to start with. Yeah, Like,
• 29:20
  Speaker 3: that's five hundred and twenty dollars a year, or two
• 29:23
  Speaker 3: hundred dollars over ten years that you may not have
• 29:25
  Speaker 3: invested otherwise. So I definitely wouldn't be dismissing that small
• 29:28
  Speaker 3: number at all. I say it all the time.
• 29:31
  Speaker 1: From little things, big things grow and you know it
• 29:34
  Speaker 1: starts at ten dollars and.
• 29:35
  Speaker 3: Then you might have a spare five dollars to add
• 29:37
  Speaker 3: to that, and then it's fifteen, and then you creep
• 29:40
  Speaker 3: up and you get you know, a salary increase so
• 29:42
  Speaker 3: you can afford thirty dollars a week. And honestly, it's
• 29:45
  Speaker 3: about setting the habit up and saying to yourself this,
• 29:49
  Speaker 3: this is a priority for me. This is something that
• 29:51
  Speaker 3: I really want to continue and grow. So do not
• 29:53
  Speaker 3: look at five or ten dollars a week as being
• 29:55
  Speaker 3: too small. There is no such thing. It's just about
• 29:58
  Speaker 3: kind of like putting or you know, putting your hand
• 30:01
  Speaker 3: up and putting your like do I want to say
• 30:03
  Speaker 3: dice on the board, Like you're just putting yourself out
• 30:06
  Speaker 3: there to.
• 30:06
  Speaker 1: Actually already be in the ring. You're already in the game.
• 30:09
  Speaker 3: It is about scaling that game as opposed to just
• 30:12
  Speaker 3: not being in it at all. Yeah, if you weren't
• 30:15
  Speaker 3: investing that ten dollars a week either, like you are
• 30:17
  Speaker 3: stuck in the mind frame of going one day I
• 30:19
  Speaker 3: want to be investing. Like how empowering is it to be?
• 30:22
  Speaker 3: Like no, I'm an investor, Like you're twenty fantastic, Like
• 30:25
  Speaker 3: how good would it have been, Georgia if someone had
• 30:27
  Speaker 3: told us when we were nineteen or twenty, hey, start investing.
• 30:30
  Speaker 3: I mean I probably wouldn't have listened, But that is
• 30:33
  Speaker 3: not the point.
• 30:33
  Speaker 1: All right, next question here v which was one of
• 30:36
  Speaker 1: my favorites in terms of how much time you have
• 30:39
  Speaker 1: to build. Is micro investing really worth it for a
• 30:42
  Speaker 1: forty year old or am I better off going a
• 30:44
  Speaker 1: different way.
• 30:45
  Speaker 3: I don't think there's such thing as starting too late.
• 30:48
  Speaker 3: And if you are, you know, investing in your forty, fantastic,
• 30:51
  Speaker 3: like you are starting your journey. Same thing goes, you're
• 30:55
  Speaker 3: just starting your financial education or your investment education. In
• 30:58
  Speaker 3: saying that, if you are, and you are, you know,
• 31:01
  Speaker 3: twenty five years away from retirement, you have so much
• 31:04
  Speaker 3: power still, like you have you know, two entire rounds
• 31:07
  Speaker 3: of compounding to go, which is crazy good, Like it's
• 31:10
  Speaker 3: not a bad thing at all, Like you are in
• 31:12
  Speaker 3: such a powerful position. So I would recommend seeing a
• 31:15
  Speaker 3: financial advisor if you're at that age and you know
• 31:18
  Speaker 3: you're like not investing already, or you just want some clarity,
• 31:22
  Speaker 3: because now is kind of the time when things do
• 31:26
  Speaker 3: start to become and I don't want to be too dramatic,
• 31:28
  Speaker 3: but things do start to become critical because at forty
• 31:31
  Speaker 3: you've got so much power.
• 31:33
  Speaker 2: At fifty you have fifty.
• 31:34
  Speaker 3: Percent less power than you had, and at sixty you've
• 31:37
  Speaker 3: got five years and you won't even go through a
• 31:39
  Speaker 3: full round of compounding. So it's more about going, Okay,
• 31:42
  Speaker 3: well I probably should see someone, and financial advisors will
• 31:45
  Speaker 3: often do a consultation like their first fact find meeting
• 31:48
  Speaker 3: complementary and even if you just want to call someone
• 31:51
  Speaker 3: and be like, hey, this is my situation. Should I
• 31:53
  Speaker 3: be seeing you for advice? Is this something I should do?
• 31:56
  Speaker 3: Pick up the phone, have that conversation. I just think
• 31:58
  Speaker 3: that too many people think about getting financial advice when
• 32:01
  Speaker 3: they're that age, then don't do it, then regret it.
• 32:04
  Speaker 1: Yeah, all right. Next question, This one came up a
• 32:07
  Speaker 1: lot there. It's probably going to be the most popular
• 32:09
  Speaker 1: question you will answer. Can you please compare the pros
• 32:13
  Speaker 1: and cons between RAYS and Spaceship Slash? Is there any
• 32:16
  Speaker 1: merit in having both?
• 32:18
  Speaker 3: They are both very different platforms, and I think that
• 32:21
  Speaker 3: it is important to understand it's not one or the other.
• 32:25
  Speaker 3: RAYS is a platform where you're able to invest in
• 32:28
  Speaker 3: one of six different diversified portfolios, each having varying levels
• 32:32
  Speaker 3: of risk, so that you can have a conservative, a
• 32:34
  Speaker 3: moderately conservative, a moderate, a moderately regressive and in aggressive portfolio,
• 32:38
  Speaker 3: and they also have an Emerald portfolio for those of
• 32:41
  Speaker 3: you who want to invest ethically, which I saw came
• 32:43
  Speaker 3: up a lot in the thread for today's show. What
• 32:45
  Speaker 3: is important to understand there though, and we Georgia are
• 32:49
  Speaker 3: going to be doing an entire episode soon on ethical
• 32:53
  Speaker 3: investment because it means very different things to very different
• 32:56
  Speaker 3: people and we need to all get on the same
• 32:58
  Speaker 3: page about it.
• 32:59
  Speaker 2: But the Emerald folio.
• 33:00
  Speaker 3: Does cost flight me more, so it is important to
• 33:03
  Speaker 3: understand that that exists. But then also a lot of
• 33:07
  Speaker 3: people that I've had deep conversation with about this, the
• 33:10
  Speaker 3: Emerald portfolios had things that they didn't expect to be
• 33:14
  Speaker 3: in there, like banks. So I'm not saying that banks
• 33:17
  Speaker 3: are bad. I'm just saying that a lot of people
• 33:19
  Speaker 3: assumed that an ethical portfolio wouldn't hold banks. But more
• 33:23
  Speaker 3: often than not, ethical doesn't actually refer to what they
• 33:26
  Speaker 3: invest in, but rather their business practices.
• 33:29
  Speaker 2: So banks are.
• 33:30
  Speaker 3: Ethical because they pay their staff well, they do the
• 33:32
  Speaker 3: right job, they are you know, putting their money to
• 33:35
  Speaker 3: good causes, they're donating to charity. That sometimes is enough
• 33:39
  Speaker 3: to be ethical. And it's also important to understand this
• 33:43
  Speaker 3: is me or my high horse. Again, I feel like
• 33:45
  Speaker 3: all I do islah, I get so excited and worked
• 33:48
  Speaker 3: up about this. But in Australia it is really important
• 33:51
  Speaker 3: to understand that quote ethical investment isn't a regulated term.
• 33:58
  Speaker 3: For example, if you go to the supermarket and you're like,
• 34:00
  Speaker 3: I would like some organic pears, you know that there's
• 34:03
  Speaker 3: a set of requirements associated with being able to use
• 34:06
  Speaker 3: that sticker that says organic that does not exist for
• 34:10
  Speaker 3: ethical investments and ethical and green and emerald and all
• 34:14
  Speaker 3: of these words make us feel like things are ethical
• 34:18
  Speaker 3: when maybe they don't actually align to our values. So
• 34:22
  Speaker 3: make sure that you're looking into that if that is
• 34:23
  Speaker 3: something that is really important to you. That's not a
• 34:26
  Speaker 3: reflection on Rays by any stretch of the imagination. It's
• 34:29
  Speaker 3: just a point that's come up that I think you
• 34:31
  Speaker 3: guys should understand. The other moving on the other distinguishing
• 34:36
  Speaker 3: features of Rays, that they do have that round up feature.
• 34:39
  Speaker 3: So we've spoken about this before on the show, but
• 34:41
  Speaker 3: it's where you invest your spare change from your coffee
• 34:44
  Speaker 3: and you pop that towards your investments. So if you
• 34:47
  Speaker 3: buy a four dollars fifty oh lata one new winning
• 34:49
  Speaker 3: because actually lates are a little bit more expensive than that,
• 34:52
  Speaker 3: It'll round up to five dollars and put that fifty
• 34:55
  Speaker 3: cents towards your investment without you having to lift a finger.
• 34:58
  Speaker 3: It might not sound like a lot, but if you
• 35:01
  Speaker 3: do this every day for an entire year, which I
• 35:04
  Speaker 3: could potentially be very guilty of because I'm very good
• 35:06
  Speaker 3: at spending money on coffee, then that's one hundred and
• 35:09
  Speaker 3: eighty two dollars fifty straight into your investment without you
• 35:11
  Speaker 3: lifting a finger. You can also invest larger sums on
• 35:14
  Speaker 3: a regular basis too, because they have the ability to,
• 35:17
  Speaker 3: you know, just contribute weekly or monthly or yearly based
• 35:20
  Speaker 3: on what you would like to do, and you can
• 35:22
  Speaker 3: withdraw your money at any time, which is quite cool. Personally,
• 35:26
  Speaker 3: I do use this platform, and I use it just
• 35:28
  Speaker 3: because I like the platform. I'm not gonna lie. It's
• 35:32
  Speaker 3: not because I know invest massive amounts of money on it.
• 35:35
  Speaker 3: It is purely because I like playing with the platform.
• 35:38
  Speaker 3: I like using it for work, and to be honest,
• 35:40
  Speaker 3: the amount of times in client meetings I whack my
• 35:42
  Speaker 3: own raise portfolio out and put it on the table
• 35:45
  Speaker 3: because I know it's not like it's not me going
• 35:47
  Speaker 3: oh look how much money I have. There's usually only
• 35:48
  Speaker 3: one hundred and eighty bucks or so in there, but
• 35:50
  Speaker 3: I go, this is how a microinvesting platform works. This
• 35:53
  Speaker 3: is how a share portfolio works on these platforms, And
• 35:56
  Speaker 3: it's just a good tool for me as a financial
• 35:58
  Speaker 3: advisor to have access to to take you through so
• 36:01
  Speaker 3: it doesn't feel so overwhelming. And what's the go with
• 36:04
  Speaker 3: fees on Raise V so at the moment and this
• 36:07
  Speaker 3: is what October twenty twenty, the fees are two dollars
• 36:11
  Speaker 3: fifty a month for accounts that are under ten thousand
• 36:13
  Speaker 3: dollars or zero point two seven five for balances of
• 36:17
  Speaker 3: accounts with more than ten thousand dollars in them. So
• 36:20
  Speaker 3: do keep an eye on that though, because if you're
• 36:22
  Speaker 3: listening to this well into the future, which I hope
• 36:24
  Speaker 3: you are, it's one of those things where these things
• 36:27
  Speaker 3: can fluctuate over time. So again, please read your pedoses.
• 36:31
  Speaker 1: Love it okay, Now, Spaceship talk to me about that.
• 36:34
  Speaker 3: Look, we've seen lots of people in our community jumping
• 36:37
  Speaker 3: over from Raise to Spaceship this year, which has been
• 36:39
  Speaker 3: quite interesting and not something I expected, but it kind
• 36:43
  Speaker 3: of makes sense because the main difference with Spaceship is
• 36:46
  Speaker 3: that there aren't actually any fees until you hit five
• 36:49
  Speaker 3: thousand dollars, which is pretty appealing to a lot of people.
• 36:52
  Speaker 3: But the other difference is Spaceship doesn't offer those six
• 36:55
  Speaker 3: different portfolios that Raise offers. Spaceship offers two different managed funds,
• 36:59
  Speaker 3: so they have this Spaceship Index Portfolio or the Spaceship
• 37:02
  Speaker 3: Universe portfolio. So the Spaceship Spaceship is such a mouthful
• 37:07
  Speaker 3: when you're trying to talk and be clear about it,
• 37:10
  Speaker 3: Georgia King. But the Spaceship Index portfolio is a low
• 37:15
  Speaker 3: cost market index fund that contains two hundred of Australia's
• 37:19
  Speaker 3: biggest companies plus a handful of major companies from around
• 37:22
  Speaker 3: the world. As I said before, if you stay under
• 37:24
  Speaker 3: five grand in there there are no fees, but when
• 37:26
  Speaker 3: you surpass that fee, they are zero point zero five
• 37:29
  Speaker 3: percent per year. In comparison to that, the Spaceship Universe
• 37:33
  Speaker 3: portfolio is personally managed by Spaceship and it invests in,
• 37:37
  Speaker 3: to quote their website, Georgia, the one hundred companies of tomorrow,
• 37:41
  Speaker 3: which sounds quite promising, which means it is more risky
• 37:45
  Speaker 3: but has the potential of greater return. Fifty percent of
• 37:48
  Speaker 3: its current portfolio currently consists of US based companies, which
• 37:52
  Speaker 3: is quite interesting as well.
• 37:53
  Speaker 1: Which one of those do you use? Be out of curiosity?
• 37:56
  Speaker 3: Can we play a game and make you guess like
• 37:58
  Speaker 3: gues Victoria's risk fuh dun dun du? I can have
• 38:02
  Speaker 3: like the come on down music from Hey, Hey, It's Saturday.
• 38:06
  Speaker 1: Fun retro reference, but I love it. I reckon you
• 38:08
  Speaker 1: would go with the riskier one.
• 38:10
  Speaker 2: I would.
• 38:11
  Speaker 1: I don't know why you're a thrill seeker.
• 38:12
  Speaker 2: I'm a thrill seeker. I just love the sheer market.
• 38:15
  Speaker 2: Georgia King.
• 38:16
  Speaker 3: No, I am a Spaceship Universe portfolio user, and the
• 38:20
  Speaker 3: reason for that is just because I am more attuned
• 38:23
  Speaker 3: to taking on more risk. I do fully understand the risks.
• 38:26
  Speaker 3: I never invest more than I can afford, and to
• 38:29
  Speaker 3: be honest, I much prefer returns like that. Like I'm
• 38:32
  Speaker 3: investing because I want to see good returns and I
• 38:35
  Speaker 3: want to create financial future of myself.
• 38:37
  Speaker 2: But I also have time on my side. So as
• 38:40
  Speaker 2: you guys know, I am twenty nine.
• 38:42
  Speaker 3: Which is nearly thirty, which is quite scary, but that's okay,
• 38:46
  Speaker 3: but it means that I've got thirty plus years before
• 38:48
  Speaker 3: I even consider retiring. So for me to ride that
• 38:51
  Speaker 3: risk for a long period of time, I'm actually really
• 38:53
  Speaker 3: okay with that. So that's just personally, that's not you know,
• 38:57
  Speaker 3: what everybody should do. It's just how it works. But
• 39:00
  Speaker 3: on that Spaceship offers a lot of information about the
• 39:02
  Speaker 3: companies that you're investing in on its interface, so you
• 39:05
  Speaker 3: have a lot of transparency there, which is really good.
• 39:08
  Speaker 3: And it also tends to invest in like tech companies,
• 39:11
  Speaker 3: which mean that you're more likely to see a higher
• 39:13
  Speaker 3: return than you would in other apps or funds, but
• 39:15
  Speaker 3: it also means the risk is higher, So please remember
• 39:18
  Speaker 3: that when picking something, don't just go with it because
• 39:20
  Speaker 3: you're like, oh that's shiny, that's cool. Like, understand what
• 39:24
  Speaker 3: aligns with your values, my friends.
• 39:26
  Speaker 1: So to make it really clear, V, can you rattle
• 39:28
  Speaker 1: off the key differences between the two?
• 39:30
  Speaker 5: Yeah?
• 39:30
  Speaker 2: I could.
• 39:31
  Speaker 3: I mean if you were listening, I wouldn't have to
• 39:33
  Speaker 3: do this. But that's okay, Georgia, see you with your coffee.
• 39:36
  Speaker 3: It's all good. But when it comes to the minimum
• 39:38
  Speaker 3: investment amount, Spaceship requires a total of one dollar, my friends,
• 39:42
  Speaker 3: while Raise requires five dollars or more. And then fees
• 39:46
  Speaker 3: for Spaceship don't exist until you hit five grand in
• 39:49
  Speaker 3: your account, and then fees are still quite small in
• 39:52
  Speaker 3: my opinion. And Raise charges two dollars fifty a month
• 39:54
  Speaker 3: on accounts that hold five grand or less, and zero
• 39:57
  Speaker 3: point two seven five on an account has more than
• 40:00
  Speaker 3: five grand in it, So that's on fees.
• 40:03
  Speaker 2: But then to compare that.
• 40:04
  Speaker 3: The level of risk on Spaceship is arguably higher because
• 40:07
  Speaker 3: they don't have a conservative profile. And Raise does offer
• 40:12
  Speaker 3: greater diversity, which means that you're able to choose from
• 40:15
  Speaker 3: the several options I mentioned before, so you can tailor
• 40:17
  Speaker 3: it if you want low or high risk score. You know,
• 40:20
  Speaker 3: it just makes more sense in terms of diversification, whereas
• 40:22
  Speaker 3: with Spaceship you just have one of two options, which,
• 40:25
  Speaker 3: to be honest, if you like me, Georgia, I hate
• 40:27
  Speaker 3: going to a restaurant having six million things on the
• 40:29
  Speaker 3: menu that I can eat. It just feels overwhelming. So
• 40:32
  Speaker 3: I'm not gonna lie. I do really like Spaceship. It's
• 40:34
  Speaker 3: like left or right, and I'm like, oh ah, right,
• 40:37
  Speaker 3: I guess so for me, I like it for that reason.
• 40:41
  Speaker 3: But in terms of investment strategy, Spaceship goes with the
• 40:44
  Speaker 3: personal money management approach, whereas RAISE puts your money into ETFs.
• 40:49
  Speaker 3: So in terms of investment strategy, that means that RAISE
• 40:52
  Speaker 3: goes with more of a personal money management approach, whereas
• 40:55
  Speaker 3: RAISE goes into putting all your money straight into ETFs.
• 40:58
  Speaker 3: In terms of withdrawal, which is something that I get
• 41:01
  Speaker 3: a lot of questions about, like when can I pull
• 41:03
  Speaker 3: my money out? How does that work? Both Raise and
• 41:06
  Speaker 3: Spaceship let you sell your investment whenever. They don't charge
• 41:09
  Speaker 3: an expert fee, which I think is really important, and
• 41:11
  Speaker 3: with any type of investment, that is usually back in
• 41:14
  Speaker 3: your account in three to five business days. So it's
• 41:17
  Speaker 3: not because they're dragging their feet. It's literally because if
• 41:20
  Speaker 3: you choose to sell your investment, they actually have to
• 41:23
  Speaker 3: do a number of things to get it back into
• 41:25
  Speaker 3: your account. It's not just you know, a quick bank
• 41:27
  Speaker 3: transfer from their bank to yours. It's they will take
• 41:30
  Speaker 3: the shares that you'll own, they will sell those shares
• 41:32
  Speaker 3: down that will money will go into their account, and
• 41:35
  Speaker 3: then once they have that they can transfer it to you.
• 41:38
  Speaker 3: So it does take a little bit longer than just
• 41:40
  Speaker 3: like transferring money that you have from another bank, But
• 41:43
  Speaker 3: I do want you guys to understand that that is
• 41:45
  Speaker 3: pretty quick, like in comparison to other asset classes, like
• 41:49
  Speaker 3: say you've got a house Georgia, Like, how do you
• 41:51
  Speaker 3: get money from that? You've got to put it online.
• 41:54
  Speaker 3: It probably will be up for marketing and open for
• 41:56
  Speaker 3: home inspections. Then you'll have maybe a ninety day settlement
• 41:59
  Speaker 3: and be literally three months before that money's back in
• 42:02
  Speaker 3: your account. That's why I quite like having shares, because
• 42:06
  Speaker 3: I know that if I ever run into trouble and
• 42:08
  Speaker 3: I really need my money back, I can just sell
• 42:10
  Speaker 3: down my portfolio and in about a week I'll have
• 42:13
  Speaker 3: all of it back in my account. It's not something
• 42:15
  Speaker 3: we should rely on. It is just an important fact
• 42:17
  Speaker 3: to understand about investment and Georgia. On that final point
• 42:21
  Speaker 3: that I'm going to make, Praise has a round up
• 42:23
  Speaker 3: feature whereas Spaceship does not. You have to set up
• 42:25
  Speaker 3: automatic transfers in Spaceship, whereas Rays does the thing with
• 42:28
  Speaker 3: your coffees, which is quite attractive. So I don't prefer
• 42:32
  Speaker 3: one over the other. I think it's really important to
• 42:34
  Speaker 3: note that, like I've said before, I use both. The
• 42:37
  Speaker 3: reason that I haven't, you know, included a whole heap
• 42:39
  Speaker 3: of other platforms in This is purely because I just
• 42:42
  Speaker 3: think that we need to understand it on a base level.
• 42:45
  Speaker 3: Like if I started bringing in all of these other
• 42:47
  Speaker 3: micro investing platforms, which you know what, they might be great,
• 42:49
  Speaker 3: they might be exactly the same. But I think with
• 42:52
  Speaker 3: this level of knowledge, everyone can go away and make
• 42:54
  Speaker 3: their own decision. If you find another micro investing platform
• 42:57
  Speaker 3: you're interested in, I would hope that you would just
• 42:59
  Speaker 3: go read the peace and understand if it's a good
• 43:01
  Speaker 3: idea for you. In saying that, I think it's really
• 43:04
  Speaker 3: important as well to point out here that we are
• 43:07
  Speaker 3: not sponsored by Raise or Spaceship. This is purely my
• 43:11
  Speaker 3: opinion at George's opinion. I don't want you guys to
• 43:14
  Speaker 3: think for any stretch of the imagination that Raise or
• 43:17
  Speaker 3: Spaceship have asked us for this. I have never even
• 43:19
  Speaker 3: talked to either of those brands. So I think that's
• 43:22
  Speaker 3: important there because a few of you might go, oh,
• 43:25
  Speaker 3: why are you such an advocate of it? No, friends,
• 43:27
  Speaker 3: I'm an advocate of investing and you guys understanding what's
• 43:30
  Speaker 3: going on, and these are really really topical conversations going
• 43:34
  Speaker 3: on in our community at the moment.
• 43:35
  Speaker 1: Okay, well, that leads us to our last question here
• 43:39
  Speaker 1: v I actually loved this one as well, and it
• 43:42
  Speaker 1: is the perfect one to end on. I think so
• 43:45
  Speaker 1: She's written in I feel like I can regurgitate so
• 43:48
  Speaker 1: much information about investing because of this podcast. Yes, Queen,
• 43:53
  Speaker 1: my friends and family are genuinely shocked by how much
• 43:56
  Speaker 1: I can tell them. But even in doing so, I
• 43:59
  Speaker 1: still don't feel confident enough about opening an account. Now
• 44:03
  Speaker 1: I get the confidence to take that first step from it,
• 44:06
  Speaker 1: little things, big things grow my friends. I think it's
• 44:09
  Speaker 1: about not going so hard, like, don't go put your
• 44:11
  Speaker 1: life savings in an account that makes you feel unstable
• 44:14
  Speaker 1: at the end of the day.
• 44:15
  Speaker 3: You need to sleep really well at night. And I
• 44:17
  Speaker 3: think that potentially a microinvesting platform could be a good
• 44:22
  Speaker 3: option for you to consider if you're looking at taking
• 44:25
  Speaker 3: a first step without really carrying a lot of the risk.
• 44:28
  Speaker 2: Now I'm not.
• 44:28
  Speaker 3: Saying risk in terms of, you know, oh, they're a
• 44:31
  Speaker 3: really safe way to do it, Like they have exactly
• 44:33
  Speaker 3: the same amount of risk as any other platform. They're
• 44:36
  Speaker 3: an investment platform. But at the end of the day,
• 44:39
  Speaker 3: would you be willing to lose ten dollars potentially? I
• 44:42
  Speaker 3: mean not everyone's in that situation. But you know, if
• 44:45
  Speaker 3: you've gone ahead and saved up ten grand and you're
• 44:48
  Speaker 3: really really passionate about investing and you really want to start,
• 44:51
  Speaker 3: I wouldn't be putting that ten thousand dollars straight into
• 44:53
  Speaker 3: the share market if you genuinely wouldn't sleep well at
• 44:56
  Speaker 3: night doing that. Start with ten dollars a month.
• 44:58
  Speaker 2: See how you go grow?
• 45:00
  Speaker 3: Oh, it's slowly become confident. I think it's just about
• 45:03
  Speaker 3: taking the first step. The first step is honestly always
• 45:06
  Speaker 3: the hardest one, and you'll look back on this moment
• 45:08
  Speaker 3: twelve months room now I'll be like, geez, why.
• 45:11
  Speaker 2: Didn't I just invest more at the beginning?
• 45:13
  Speaker 3: And I'd prefer you to be in that position than
• 45:15
  Speaker 3: feeling overwhelmed and pulling all your money out of it
• 45:18
  Speaker 3: two months later and then never considering investing again.
• 45:21
  Speaker 1: Perfectly said, they're very Hopefully that helps that listener as well.
• 45:26
  Speaker 1: But now it's over to our listener question.
• 45:29
  Speaker 5: Hey, girls, I've been using rays for the last year
• 45:32
  Speaker 5: and I've loved it for the most part. Obviously, this
• 45:35
  Speaker 5: year things took a bit of a dip, but I
• 45:37
  Speaker 5: feel like it's really helped me gain a better understanding
• 45:39
  Speaker 5: of how investing works. My question for you is when
• 45:42
  Speaker 5: do you think it's time to move from a micro
• 45:44
  Speaker 5: investing platform into more serious investing. I feel like I
• 45:48
  Speaker 5: might be ready, but I'm not really sure.
• 45:50
  Speaker 1: Thanks Victoria. This is one that came up a lot
• 45:54
  Speaker 1: in that Facebook thread as well. So how would you
• 45:57
  Speaker 1: answer this?
• 45:58
  Speaker 3: This is actually such a good question, and I feel
• 46:01
  Speaker 3: like giving you guys listen to my answers on all
• 46:04
  Speaker 3: of the other questions, or I hope you were listening.
• 46:06
  Speaker 3: Maybe you weren't concentrating. I wouldn't, but consistent cash flow
• 46:11
  Speaker 3: is what I would say. So if you're in a
• 46:13
  Speaker 3: situation where you've been using your raise platform or your
• 46:16
  Speaker 3: spaceship platform for the last twelve months and you're consistently
• 46:19
  Speaker 3: investing each and every single month, and you see that
• 46:21
  Speaker 3: continuing for the foreseeable future, I would consider changing your platform.
• 46:27
  Speaker 3: Because we don't want to be on micro investing platforms forever.
• 46:30
  Speaker 3: We do want to create, you know, long term wealth.
• 46:32
  Speaker 3: So I think it is really important to work out
• 46:35
  Speaker 3: what your consistent cash flow situation looks like, and if
• 46:38
  Speaker 3: you've been able to commit to investing each and every
• 46:41
  Speaker 3: single month. In that case, i'd probably go hmm, maybe
• 46:43
  Speaker 3: I will start to see a financial advisor or you know,
• 46:46
  Speaker 3: start some conversations around that, because at the end of
• 46:49
  Speaker 3: the day, that's the most important part, because to be honest,
• 46:53
  Speaker 3: like if you're on spaceship and you've got four thousand
• 46:55
  Speaker 3: dollars invested, and you know, you're not investing anything every
• 46:58
  Speaker 3: week or every month, just adding a ten dollars here
• 47:01
  Speaker 3: or there, I think potentially staying on that platform might
• 47:05
  Speaker 3: be a good idea for you purely because there's no
• 47:07
  Speaker 3: fees associated with it, and once you step up to
• 47:10
  Speaker 3: another platform, you will have brokerage fees to get in
• 47:14
  Speaker 3: and out of the market, you will have platform investment
• 47:17
  Speaker 3: fees and other fees and costs associated with it. Potentially
• 47:20
  Speaker 3: even a financial advisor cost that if you're not investing consistently,
• 47:24
  Speaker 3: don't make sense for you to engage in.
• 47:26
  Speaker 1: All right, well said their fie, So consistent cash flow
• 47:29
  Speaker 1: is the key. Really, Hopefully that helps answer today's listener question.
• 47:33
  Speaker 4: Yay, hey guys, I'm twenty four and in twenty twenty
• 47:41
  Speaker 4: I had a money makeover and this is my money diary.
• 47:44
  Speaker 1: Now it's time for a snack peek into the financial
• 47:47
  Speaker 1: lives of perfect strangers. It's time for money diaries.
• 47:50
  Speaker 4: I started the year about five K in debt, and
• 47:54
  Speaker 4: my friends kind of inspired me. My boyfriend was my
• 47:57
  Speaker 4: biggest inspiration to kind of get that out of the world,
• 48:00
  Speaker 4: and so I worked really hard at snowballing the debt
• 48:03
  Speaker 4: out and within eight months I was debt free, and
• 48:07
  Speaker 4: I just about doubled that in savings for my car
• 48:10
  Speaker 4: that I wanted. You may have actually seen it on
• 48:13
  Speaker 4: the Facebook page, and I just want to thank everyone
• 48:15
  Speaker 4: for your client comments and encouragement. It really helped me
• 48:19
  Speaker 4: along the way.
• 48:20
  Speaker 1: So what does she do for work? How much does
• 48:22
  Speaker 1: she earn and how much does she have in her account?
• 48:25
  Speaker 4: I work as a disability support worker for two different organizations,
• 48:30
  Speaker 4: just supporting people in the community, and I really love it.
• 48:33
  Speaker 4: It's kind of my dream job. And I earn around
• 48:38
  Speaker 4: thirty nine thousand a year because I'm just working casually
• 48:42
  Speaker 4: for the two companies. What I have in my bank
• 48:44
  Speaker 4: account If you had asked me a few months ago,
• 48:47
  Speaker 4: it would have been a lot more because I was
• 48:49
  Speaker 4: actually saving. It was my goal to save a large
• 48:52
  Speaker 4: chunk for a new car. So right now it's gone
• 48:57
  Speaker 4: down a fair bit, but I have the goal to
• 48:59
  Speaker 4: now build up my savings into my accounts.
• 49:02
  Speaker 1: Again, what happens to her money, he wants it arrives
• 49:04
  Speaker 1: in her account.
• 49:05
  Speaker 4: When the money reaches my accounts. Being casual for two
• 49:08
  Speaker 4: different companies, that can fluctuate a fair bit, but generally
• 49:11
  Speaker 4: I've got a bit of a normal amount that i
• 49:14
  Speaker 4: receive for my work, so when that reaches my account.
• 49:17
  Speaker 4: I actually have three separate banks that I'm with. I
• 49:20
  Speaker 4: have my normal Combank when my pays arrive, and then
• 49:23
  Speaker 4: I have direct Debit automatically transfer money to Upbank and
• 49:29
  Speaker 4: from Upbank, I then have all my normal expenses, my
• 49:32
  Speaker 4: electricity rent, that kind of stuff. And then I also
• 49:35
  Speaker 4: have another account with Westpac. I've kind of tried to
• 49:38
  Speaker 4: take advantage of both the bonus rates that can be generated.
• 49:43
  Speaker 4: So I do that, and it's quite easy because because
• 49:45
  Speaker 4: I've got all my expenses coming automatically out of these accounts,
• 49:49
  Speaker 4: I hit the bonus rate and I'm sitting pretty well there,
• 49:52
  Speaker 4: and I pretty much my Westpac is there for my
• 49:54
  Speaker 4: savings so that I can get that three percent interest rate.
• 49:58
  Speaker 4: It's a bit of a mess if you think it,
• 50:00
  Speaker 4: but I've kind of sat down and just had everything
• 50:02
  Speaker 4: automatically set up, so I can kind of just sit
• 50:05
  Speaker 4: back and let it do its thing.
• 50:06
  Speaker 1: What are her investment plans? What are her attitudes towards investing.
• 50:10
  Speaker 4: I don't currently invest, but we have been Me and
• 50:13
  Speaker 4: my boyfriend have been talking about it. Someday we might
• 50:15
  Speaker 4: look into doing it together. It was kind of funny
• 50:18
  Speaker 4: because this week we're actually talking about micro investing. Because
• 50:21
  Speaker 4: I'm telling him all about the podcast, I'm like, you
• 50:23
  Speaker 4: need to listen. It's like for everybody. I was like,
• 50:26
  Speaker 4: they talk about investing, and he's like, oh cool. And
• 50:29
  Speaker 4: then literally the next day, micro Investing was the episode,
• 50:32
  Speaker 4: and I was like, I'm telling you, yeah, So I
• 50:34
  Speaker 4: think eventually we'll look into doing that together.
• 50:37
  Speaker 1: Does she have any debts?
• 50:39
  Speaker 4: I don't currently have any personal loans for any banks
• 50:42
  Speaker 4: or credit cards. With my car, I was a little
• 50:45
  Speaker 4: bit under what I was required to pay, but I
• 50:48
  Speaker 4: actually had a family member offered to loan me some
• 50:51
  Speaker 4: money for that amount, so I'm actually just paying back
• 50:53
  Speaker 4: them the money because that kind of meant I didn't
• 50:57
  Speaker 4: have to worry about like account keeping fee penalties at
• 51:01
  Speaker 4: those kind of things. But I have the goal to
• 51:03
  Speaker 4: pay that off in about twelve months.
• 51:05
  Speaker 1: What is her best money habit?
• 51:06
  Speaker 4: I guess my best money habit would be being aware
• 51:09
  Speaker 4: of where my money is and where it's going. So
• 51:13
  Speaker 4: I kind of I have like this big spreadsheet I created,
• 51:16
  Speaker 4: and I know exactly what amount goes into which account
• 51:18
  Speaker 4: every fortnight. A couple months ago, I probably had no
• 51:22
  Speaker 4: good money habits, but I really sat down and fine
• 51:25
  Speaker 4: tuned and like sacrificed and worked really hard to kind
• 51:28
  Speaker 4: of get better and make myself more knowledgeable, so I
• 51:31
  Speaker 4: knew what was happening.
• 51:32
  Speaker 2: With my money.
• 51:33
  Speaker 1: What's her worst money habit in.
• 51:35
  Speaker 4: The past, It probably was trying to avoid looking at
• 51:38
  Speaker 4: my money my bank account, Like I used to not
• 51:41
  Speaker 4: even be aware when things were leaving my account. I
• 51:43
  Speaker 4: guess that's changed. But my probably worst money habit now
• 51:47
  Speaker 4: is I find I get a bit of anxiety actually
• 51:50
  Speaker 4: spending money now that I'm in such a habit of saving,
• 51:53
  Speaker 4: I kind of get to a point where I'm like,
• 51:55
  Speaker 4: I do have this money to spend, like I've put
• 51:58
  Speaker 4: it aside. It's there, but I've almost feel guilty spending it,
• 52:01
  Speaker 4: and so I kind of have to work through, like no,
• 52:04
  Speaker 4: like you can treat yourself, you can do this. I
• 52:06
  Speaker 4: do like a good hot chocolate, So that's probably where
• 52:10
  Speaker 4: my money goes to that I don't worry too much.
• 52:13
  Speaker 4: But everything else I'm.
• 52:14
  Speaker 2: Like, oh, I don't need to spend that.
• 52:16
  Speaker 1: What is her big money goal?
• 52:18
  Speaker 4: My biggest goal would be to firstly pay back this
• 52:21
  Speaker 4: money to my family that they've loaned me, which I'm
• 52:24
  Speaker 4: super grateful for, Like that's put me into a really
• 52:26
  Speaker 4: good position moving forward. I guess growing my savings accounts
• 52:30
  Speaker 4: some more to like a decent buffer amount that I
• 52:33
  Speaker 4: could lean on if I need to. Biggest goal would
• 52:36
  Speaker 4: be like someday my partner he's got a house that
• 52:40
  Speaker 4: he's paying off, and I guess someday the big goal
• 52:42
  Speaker 4: would be that we would get married and pay it
• 52:45
  Speaker 4: off together kind of thing. Yeah, so that would be
• 52:48
  Speaker 4: probably the biggest goal. Maybe get into property a bit
• 52:50
  Speaker 4: more together.
• 52:51
  Speaker 1: And what grade would our twenty four year old money
• 52:54
  Speaker 1: makeover give herself?
• 52:56
  Speaker 4: I would have said for beginning of the year, probably D,
• 53:01
  Speaker 4: maybe a little bit higher because it was not good.
• 53:04
  Speaker 4: But now I want to say that I'm probably a
• 53:07
  Speaker 4: B plus maybe an.
• 53:08
  Speaker 1: A arati Victoria divine, what did you make of our
• 53:12
  Speaker 1: twenty four year old money? Makeover.
• 53:14
  Speaker 3: I want to be her friend. She sounded so kind
• 53:17
  Speaker 3: and like she's a disability support worker that takes such
• 53:20
  Speaker 3: a special person to do that job, and doing it
• 53:23
  Speaker 3: for two different organizations. I just feel like these people
• 53:27
  Speaker 3: need to be paid more, Like there's just such a
• 53:30
  Speaker 3: lapse in what they get. Like Please don't get me wrong,
• 53:32
  Speaker 3: this is not what this segment is about. But you
• 53:34
  Speaker 3: can just tell when people work in these industries start talking,
• 53:37
  Speaker 3: who just tell their like glowy, really nice humans that
• 53:40
  Speaker 3: I want to be a part of. So No, I
• 53:42
  Speaker 3: really liked it, and I really liked that she's kind
• 53:44
  Speaker 3: of like done an entire financial makeover. There's nothing sexier
• 53:48
  Speaker 3: than that, let's be honest, having gone from being in
• 53:50
  Speaker 3: debt to like being in a situation where she feels
• 53:53
  Speaker 3: empowered by her finances even though she's not completely out
• 53:56
  Speaker 3: of debt yet. That's amazing and I'm really really proud
• 53:59
  Speaker 3: of her. And I just I think that that's yeah,
• 54:01
  Speaker 3: just so special and so nice, and I just I.
• 54:04
  Speaker 2: Really like it. What did you think, Georgia, Well, I
• 54:06
  Speaker 2: had a couple of.
• 54:06
  Speaker 1: Questions for you, but I agree with you, Like, I
• 54:09
  Speaker 1: definitely think people in those industries should be paid more
• 54:12
  Speaker 1: and that she clearly has an amazing energy. It was
• 54:15
  Speaker 1: lovely to listen to. But my questions for you. So
• 54:18
  Speaker 1: she mentioned that she has three separate bank accounts. It
• 54:21
  Speaker 1: was up Westpact and west Pact west Pac and one
• 54:24
  Speaker 1: other one didn't catch it.
• 54:26
  Speaker 3: Is that a good idea if that's how she wants
• 54:28
  Speaker 3: to manage her money, and it makes sense, I think
• 54:31
  Speaker 3: it is a good idea. Some people actually need to
• 54:34
  Speaker 3: have their money in different banks to make it hard
• 54:36
  Speaker 3: to access it. So that if you have your up
• 54:40
  Speaker 3: bank card that you are tapping every day, having maybe
• 54:43
  Speaker 3: your savings that you are consistently dipping into in a
• 54:47
  Speaker 3: different bank might be, you know, kind of another hurdle
• 54:49
  Speaker 3: for you to jump. That makes sense in saying that,
• 54:53
  Speaker 3: Ryan John and I did give her the online course
• 54:56
  Speaker 3: that we have done so that she can do that
• 54:58
  Speaker 3: because we felt like maybe it was an assistant that
• 55:01
  Speaker 3: was working as seamlessly as it could, and we spoke
• 55:04
  Speaker 3: about cash flow and just made sure she understood how
• 55:07
  Speaker 3: all that worked so that essentially she can make her
• 55:09
  Speaker 3: cash flow work for her. So there were some tweaks
• 55:12
  Speaker 3: that she could do, so for me, it would be
• 55:14
  Speaker 3: about making sure that she understood her weekly spend so
• 55:17
  Speaker 3: on discretionary things like you know, is she going out,
• 55:20
  Speaker 3: you know, grabbing coffees, Like what does that add up
• 55:22
  Speaker 3: to in comparison to like debt repayments? And is she
• 55:26
  Speaker 3: making every single dollar that comes into her account work
• 55:29
  Speaker 3: for her? So for me, that was what I guess
• 55:31
  Speaker 3: the next steps for her were going to be. And
• 55:34
  Speaker 3: I think that the budgeting and cash flow tool that
• 55:36
  Speaker 3: we have is actually going to be really powerful for
• 55:38
  Speaker 3: her once she does the course. Obviously, but in saying that,
• 55:42
  Speaker 3: I just feel like her tenacity and you know, how
• 55:44
  Speaker 3: committed she is to making her life financially powerful. Like
• 55:48
  Speaker 3: I loved it, and I just felt like she's got
• 55:50
  Speaker 3: a lot to bring to the table and I cannot
• 55:52
  Speaker 3: wait to see what she does in the next five
• 55:54
  Speaker 3: or ten years.
• 55:54
  Speaker 1: One hundred percent. Was there anything you wanted to add
• 55:57
  Speaker 1: about well, she mentioned that her worst is feeling anxiety
• 56:00
  Speaker 1: about spending now that she's a bit of a savings queen.
• 56:03
  Speaker 1: Was there any message that you wanted to share there
• 56:06
  Speaker 1: or any advice words of wisdom?
• 56:07
  Speaker 3: Yeah, And I think that that's actually a really important
• 56:09
  Speaker 3: thing that you've picked up, because that was why we
• 56:12
  Speaker 3: recommended the online course, and I know that that sounds
• 56:15
  Speaker 3: really promotional, but at the end of the day, sometimes
• 56:17
  Speaker 3: we just go too hard, like it's all or nothing
• 56:20
  Speaker 3: with a lot of us, like we're either spenders or
• 56:22
  Speaker 3: we're savers. We can't seem to find the happy medium.
• 56:25
  Speaker 3: And I think she needed to give herself a bit
• 56:27
  Speaker 3: of her mission to go all right, you know what
• 56:30
  Speaker 3: at the end of the day, like debt is debt,
• 56:32
  Speaker 3: draw a line in the sand, don't judge yourself for it.
• 56:35
  Speaker 3: I'm getting out of it. But that doesn't mean that
• 56:37
  Speaker 3: you have to sacrifice everything in your life, Like I'm
• 56:40
  Speaker 3: a very big believer in you know, you don't have
• 56:43
  Speaker 3: to completely sacrifice everything to get out of debt, Like
• 56:45
  Speaker 3: sometimes you do have to sacrifice her fair bit. But
• 56:48
  Speaker 3: at the end of the day, I think she needs
• 56:50
  Speaker 3: to have a little bit more leeway when it comes
• 56:53
  Speaker 3: to spending, because we don't want money to be something
• 56:56
  Speaker 3: that invokes anxiety. Like at the end of the day,
• 56:58
  Speaker 3: money is a tool that we use to live our lives.
• 57:01
  Speaker 5: That is it.
• 57:01
  Speaker 3: We should just see it as the tool that it
• 57:03
  Speaker 3: is and deal with it effectively. If it means that
• 57:06
  Speaker 3: we allocate some of that tool towards our self care
• 57:09
  Speaker 3: and ourselves.
• 57:10
  Speaker 2: To be happy.
• 57:11
  Speaker 3: Like, I'm here for that, And I just think that sometimes,
• 57:14
  Speaker 3: especially around debt, we just feel too nervy to do
• 57:17
  Speaker 3: that or give ourselves a permission to do so. This
• 57:20
  Speaker 3: is your little reminder if you're listening, that you need
• 57:23
  Speaker 3: to give yourself permission to look after yourself and that
• 57:26
  Speaker 3: is often just as important as getting rid of the debt.
• 57:29
  Speaker 3: If it means a couple more months being in debt,
• 57:32
  Speaker 3: but those months are really happy months. Probably not the
• 57:35
  Speaker 3: best best financial advice you've ever gotten, but I promise
• 57:38
  Speaker 3: for your mental health and wellbeing, it will absolutely be
• 57:41
  Speaker 3: worth it.
• 57:41
  Speaker 1: Yeah, enjoy those hot chocolates as well, all right, one
• 57:44
  Speaker 1: hundred percent?
• 57:45
  Speaker 2: How good's a hot shoky Georgia?
• 57:47
  Speaker 1: Kiy, have you had a hot shocky with oat milk? Reckon?
• 57:49
  Speaker 2: That be gorge? I think we need to try that.
• 57:52
  Speaker 3: Yeah, let's look into it, all right, A mocker oat
• 57:56
  Speaker 3: milk I've tried. This is the end of the episode,
• 57:58
  Speaker 3: and I knew you'd weise a oat milk somewhere.
• 58:00
  Speaker 2: I just know it true. Just before the end of
• 58:03
  Speaker 2: the show, oat milk.
• 58:04
  Speaker 3: Aside, just before we head off, we'd really like to
• 58:07
  Speaker 3: acknowledge and pay respects to Australia's Aboriginal and torrest Right
• 58:10
  Speaker 3: Islander people's, the traditional custodians of the lands, the waterways
• 58:14
  Speaker 3: and the skies across Australia. We thank you for sharing
• 58:17
  Speaker 3: and caring for the land on which we are able
• 58:19
  Speaker 3: to learn. We pay our respects to elders past and present,
• 58:22
  Speaker 3: and share our friendship and our kindness.
• 58:25
  Speaker 1: Now it's time for the old, boring but important stuff.
• 58:28
  Speaker 1: The advice shed on ses on the money is general
• 58:31
  Speaker 1: in nature and does not consider your individual circumstances. She
• 58:34
  Speaker 1: is on the money exists purely for educational purposes and
• 58:37
  Speaker 1: should not be relied upon to make an investment or
• 58:40
  Speaker 1: financial decision. And relax, Max we promise. Victoria Divine is
• 58:44
  Speaker 1: an authorized representative of Australia Pacific Funds Management Propriety Limited
• 58:49
  Speaker 1: ABN three four one three two four six three two
• 58:51
  Speaker 1: five seven AFOSL three three nine one five one. I
• 58:54
  Speaker 1: love how my voice like faulted halfway through that. It's
• 58:57
  Speaker 1: beautiful as always, big old thank you to ours, Ryan John,
• 59:02
  Speaker 1: who I nearly called rusidiser, But cut is lit, so
• 59:06
  Speaker 1: we'll cut that out.
• 59:07
  Speaker 2: Don't cut it out. Don't cut it out. If people
• 59:09
  Speaker 2: have made it this far into their pod, they deserve
• 59:11
  Speaker 2: this type. That's very true.
• 59:13
  Speaker 1: The point is thanksful And if.
• 59:15
  Speaker 3: You still haven't joined our Facebook group, what are you
• 59:18
  Speaker 3: actually doing with your life? Our community shares money tips
• 59:21
  Speaker 3: and tricks every single day, free of judgment. So she's
• 59:24
  Speaker 3: on the money on Facebook and join us. If Facebook's
• 59:27
  Speaker 3: not your thing, or you just want to hang out
• 59:28
  Speaker 3: with us on the Gram, you can find us and
• 59:30
  Speaker 3: she's on the money aus And to subtly plug it,
• 59:33
  Speaker 3: not so subtly, I'm now on TikTok as well at
• 59:36
  Speaker 3: Victoria Underscore Devine.
• 59:38
  Speaker 2: Join me for my six sick money tips.
• 59:41
  Speaker 1: She's gone full influencer. Guys, I think we'll see you
• 59:44
  Speaker 1: next week.
• 59:44
  Speaker 2: Bye, friends,