Latest / She's On The Money / 'Cause if you like it, then you shoulda put a ring on it

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'Cause if you like it, then you shoulda put a ring on it · She's On The Money

• 0:00
  Speaker 1: She's on the Money.
• 0:02
  Speaker 2: She's on the Money. Hello, and welcome to She's on
• 0:14
  Speaker 2: the Money, the podcast for millennials who want financial freedom.
• 0:17
  Speaker 2: This episode of the show is brought to you by
• 0:19
  Speaker 2: our brilliant ride sharing friends at DD but more in
• 0:21
  Speaker 2: than a little bit later. My name is Georgia King,
• 0:24
  Speaker 2: but if you're a diligent pod listener you'd already know
• 0:26
  Speaker 2: that by now. And as always I'm joined by my
• 0:29
  Speaker 2: lovely friend and money expert Victoria Devine.
• 0:31
  Speaker 1: Good morning.
• 0:32
  Speaker 2: Before we jump into it, Victoria, let's have a quick
• 0:34
  Speaker 2: chat about the lack of toilet papers in the supermarkets
• 0:37
  Speaker 2: right now. What is going Let's go.
• 0:40
  Speaker 3: You are absolutely correct, it's a little bit of wild
• 0:43
  Speaker 3: hysteria going.
• 0:44
  Speaker 2: On, obviously in relation to coronaviruns.
• 0:47
  Speaker 3: Yes, at this point in time. And I think it
• 0:49
  Speaker 3: has been quite reflective in our Facebook community as well,
• 0:52
  Speaker 3: people asking about their investment portfolios and what's going on
• 0:55
  Speaker 3: with their raise accounts. And I think it's really important
• 0:58
  Speaker 3: to just note here that investment is for the long term.
• 1:02
  Speaker 3: We go into an investment because we want to hold
• 1:05
  Speaker 3: it and create wealth, and the share market has ebbs
• 1:08
  Speaker 3: and flows, and this is a really normal thing to happen.
• 1:11
  Speaker 3: And if we look back on world epidemics and the
• 1:13
  Speaker 3: global stock market performance, we often see a dip when
• 1:17
  Speaker 3: an epidemic hits. So if you look back and you
• 1:20
  Speaker 3: look at the SARS or the swine flu or a bowler,
• 1:24
  Speaker 3: every single time something like that has hit our news stands,
• 1:28
  Speaker 3: it has significantly impacted one hour global economy, but two
• 1:33
  Speaker 3: it's also impacted share prices, and that is really scary
• 1:36
  Speaker 3: when you go log into your raise account and you
• 1:39
  Speaker 3: see that it's worth three hundred dollars less or one
• 1:41
  Speaker 3: thousand dollars less, or you're looking at your superannuation and
• 1:44
  Speaker 3: it's off. But if you are invested properly for your
• 1:47
  Speaker 3: risk profile, and you're invested in a way that is
• 1:50
  Speaker 3: aligned to your values, it shouldn't impact you at all.
• 1:53
  Speaker 2: So we shouldn't be rushing to pull out our shares
• 1:56
  Speaker 2: in certain areas.
• 1:57
  Speaker 3: In my opinion, No, it's definitely worthy of getting some
• 2:00
  Speaker 3: financial advice there, because I would never recommend that you
• 2:03
  Speaker 3: go and pull all your shares out or even put
• 2:05
  Speaker 3: more money in unless you've got some good advice on that.
• 2:08
  Speaker 3: Often when share prices are a little bit lower because
• 2:10
  Speaker 3: something has impacted the share market, you can often view
• 2:13
  Speaker 3: it as a discounted share. So at the moment in
• 2:16
  Speaker 3: my personal portfolio, I've actually put some more money into
• 2:19
  Speaker 3: the marketplace because I know that over time it will
• 2:23
  Speaker 3: increase in value, and I feel right now that a
• 2:26
  Speaker 3: share that I wanted to invest in is discounted, and
• 2:28
  Speaker 3: therefore I'm happy to invest. These things happen in the
• 2:32
  Speaker 3: share market and it is definitely worthy of consideration, but
• 2:35
  Speaker 3: not worry.
• 2:36
  Speaker 2: Alrighty, Victoria. Today we're going to be having a chat
• 2:38
  Speaker 2: about something that has been slightly controversial in our Facebook,
• 2:41
  Speaker 2: lightly a lot, and that is how much we should
• 2:44
  Speaker 2: be spending on our engagement rings. Now, I'm actually a
• 2:47
  Speaker 2: little way off this myself. It's not something I'm really
• 2:50
  Speaker 2: thinking about, but I know when I'm scrolling the feed
• 2:52
  Speaker 2: on Insta it seems like getting an enormous rock when
• 2:56
  Speaker 2: you do get engaged is the norm. However, this actually
• 2:59
  Speaker 2: wasn't always case, No, which was not so We were
• 3:02
  Speaker 2: doing the research earlier, and in the nineteen forties less
• 3:05
  Speaker 2: than ten percent of couples getting engaged actually exchanged diamond rings,
• 3:09
  Speaker 2: which seems incomprehensible now wild Nowadays, it seems every engagement
• 3:14
  Speaker 2: comes with a huge rock.
• 3:15
  Speaker 3: Eighty percent of engagements actually now come with a huge
• 3:18
  Speaker 3: diamond rock.
• 3:19
  Speaker 2: While I can't wait to discuss that and how we
• 3:22
  Speaker 2: have gotten to a point where the average cost of
• 3:23
  Speaker 2: an engagement ring in Australia is now one hundred and
• 3:26
  Speaker 2: forty seven dollars, it is, I think we should first
• 3:29
  Speaker 2: kick things off the way we always do, by sharing
• 3:31
  Speaker 2: a money win or confession from our own weeks. Victoria,
• 3:34
  Speaker 2: what have you got for me this week?
• 3:36
  Speaker 3: This week, I actually have a really good money win.
• 3:38
  Speaker 3: Fantastic and it's so on point for this episode. One
• 3:42
  Speaker 3: of my girlfriends has gotten engaged recently, which seems to
• 3:45
  Speaker 3: be one of the biggest themes in my friend.
• 3:47
  Speaker 1: Group of late. I know it's terrifying.
• 3:51
  Speaker 3: They're also having babies on purpose for the wild. But
• 3:55
  Speaker 3: one of my girlfriends has gotten engaged and I've been
• 3:58
  Speaker 3: asked to be a bridesmaid, and I am so proud
• 4:00
  Speaker 3: and so excited to be a bridesmaid. But that comes
• 4:03
  Speaker 3: along with needing to purchase a dress, and that dress
• 4:05
  Speaker 3: needs to be a certain color, so I'm really excited.
• 4:08
  Speaker 3: My money win this week is that her wardrobe had
• 4:10
  Speaker 3: an ex rental dress sale and then they had an
• 4:13
  Speaker 3: additional fifty percent off. So I have picked up my
• 4:17
  Speaker 3: dress for this wedding for thirty seven dollars fifty and
• 4:21
  Speaker 3: it is a four hundred and fifty dollars dress and
• 4:24
  Speaker 3: it is gorgeous and I am so excited about it,
• 4:27
  Speaker 3: and it is literally perfect for this wedding and it
• 4:30
  Speaker 3: is four hundred and fifty dollars that I actually thought
• 4:31
  Speaker 3: I was going.
• 4:32
  Speaker 1: To have to spend. She's so good.
• 4:33
  Speaker 3: But her wardrobe, by the way, absolutely not sponsored, just
• 4:36
  Speaker 3: really good.
• 4:37
  Speaker 1: Shout out to.
• 4:37
  Speaker 2: Alex Love you love the Melbourne.
• 4:39
  Speaker 1: They're Melbourne Base.
• 4:40
  Speaker 3: They're based in Saint Kilda, and I am obviously obsessed
• 4:43
  Speaker 3: with them because I feel like I go there all
• 4:45
  Speaker 3: the time. But I'm really excited that I've got no
• 4:47
  Speaker 3: dress for such discount.
• 4:50
  Speaker 1: It's wild. Anyway, what have you got?
• 4:51
  Speaker 2: G Mind's the money win as well? Far less exciting.
• 4:54
  Speaker 2: It's mid March now and I decided it was time
• 4:57
  Speaker 2: to head out there and buy myself a diary to
• 4:59
  Speaker 2: get organized. Twenty twenty.
• 5:00
  Speaker 1: So a little late, a little late, but.
• 5:03
  Speaker 2: This meant that when I rolled into the local news agency.
• 5:06
  Speaker 1: Do they still sell them?
• 5:07
  Speaker 4: Yeah?
• 5:07
  Speaker 1: They do?
• 5:08
  Speaker 2: Okay, it was half prized because I'm so late to
• 5:10
  Speaker 2: the party. So instead of a forty dollar diary, I
• 5:13
  Speaker 2: got a twenty dollar diary. That is why it's basically
• 5:15
  Speaker 2: the same as your dress.
• 5:16
  Speaker 3: Well, you've got three months stood in our invalid in
• 5:18
  Speaker 3: that diary, so I would hope there is a significant
• 5:20
  Speaker 3: discount associated.
• 5:23
  Speaker 2: Okay, moving right along, Let's take a quick look at
• 5:26
  Speaker 2: the Facebook community, which was impressive, as it always is
• 5:29
  Speaker 2: week after week, Victoria, did anyone stand out to you
• 5:32
  Speaker 2: in the Facebook group this week?
• 5:33
  Speaker 3: I have one from our friend Kristen, and she said
• 5:37
  Speaker 3: that she has a money in with the tongue out
• 5:39
  Speaker 3: dollar sign I face.
• 5:40
  Speaker 1: Thank you for.
• 5:40
  Speaker 3: Describing that, no problems. I've taken a note out of
• 5:43
  Speaker 3: your book, out of your diary, may I say? And
• 5:47
  Speaker 3: she said that she got quoted recently seven and a
• 5:49
  Speaker 3: half thousand dollars to install some shelves in her house
• 5:52
  Speaker 3: and she refused to pay that, which obviously is very
• 5:55
  Speaker 3: very fair. So she put her trading partner to work
• 5:59
  Speaker 3: and it took them almost the whole weekend, but it
• 6:01
  Speaker 3: ended up costing them sixteen hundred dollars and they're proud
• 6:04
  Speaker 3: of what they came up with. And she posted a
• 6:06
  Speaker 3: really cute photo of these new shelves and like a
• 6:09
  Speaker 3: desk space in her house. Really cute, Really proud of
• 6:12
  Speaker 3: her anyway, loved that money win and the fact that
• 6:15
  Speaker 3: she has a really handy partner that could help her out.
• 6:17
  Speaker 1: Yes, what have you got you?
• 6:19
  Speaker 2: Mine is crafty as well. So this one is from
• 6:22
  Speaker 2: Arjie who has written in I wanted to do something
• 6:25
  Speaker 2: special for my nephew's birthday this year, so I made
• 6:27
  Speaker 2: it twenty four cupcakes from scratch as a part of
• 6:30
  Speaker 2: his present, rather than buying a cake or cupcakes from
• 6:32
  Speaker 2: the bakery.
• 6:32
  Speaker 1: Oh my gosh, I saw this, so they had kohala once.
• 6:35
  Speaker 1: It looks they were so cute.
• 6:37
  Speaker 2: She saved heaps of money and the rest of the
• 6:39
  Speaker 2: money went in his birthday car, which is gorgeous, very
• 6:42
  Speaker 2: creative and clever money we now, Victoria. As I mentioned before,
• 6:50
  Speaker 2: the average engagement ring costs five one hundred and forty
• 6:53
  Speaker 2: seven dollars according to the twenty nineteen Australian Wedding Industry Report,
• 6:57
  Speaker 2: and that has only been increasing. This seems like a
• 7:01
  Speaker 2: wild start to me, especially when you're take into consideration
• 7:04
  Speaker 2: that one in four households in Australia has less than
• 7:06
  Speaker 2: one thousand dollars in cash savings, and that two in
• 7:09
  Speaker 2: three Australians could not raise three thousand dollars within a
• 7:11
  Speaker 2: week of an emergency. So Victoria, where on earth did
• 7:14
  Speaker 2: this expectation come from? Because it seems like a lot
• 7:17
  Speaker 2: of money to be spending on a ring.
• 7:19
  Speaker 3: It is a wild amount of money if we think
• 7:21
  Speaker 3: about what we could do with five thousand dollars.
• 7:24
  Speaker 1: And whilst I think it's.
• 7:25
  Speaker 3: Really important to preface this conversation about engagement rings really upfront,
• 7:29
  Speaker 3: is more about values, like if you want to spend
• 7:30
  Speaker 3: five grand, I am here for it. You want to
• 7:32
  Speaker 3: spend ten thousand dollars, fifteen thousand dollars, sure go for it?
• 7:35
  Speaker 2: What?
• 7:36
  Speaker 3: No, Absolutely none. In fact, I don't even know if
• 7:38
  Speaker 3: when that happens for me. I don't know what that
• 7:40
  Speaker 3: price point looks like. So I'd hate to have a
• 7:42
  Speaker 3: whole episode on on engagement rings to then shoot myself
• 7:45
  Speaker 3: in the foot later. So there's absolutely no judgment when
• 7:48
  Speaker 3: it comes to what you're spending. It's more about well,
• 7:50
  Speaker 3: where has this come from? And why are these expectations
• 7:53
  Speaker 3: in place? And are they actually reasonable for us to
• 7:56
  Speaker 3: be putting on each other or putting on ourselves. I
• 8:00
  Speaker 3: think one of the most interesting things when we start
• 8:02
  Speaker 3: talking about engagement rings is that diamonds haven't always been
• 8:07
  Speaker 3: the social norm. You mentioned before that in the nineteen forties,
• 8:11
  Speaker 3: less than ten percent of people were actually proposing with
• 8:15
  Speaker 3: a diamond, and in Japan, if we look at this
• 8:18
  Speaker 3: on a global scale, in the nineteen forties, less than
• 8:21
  Speaker 3: five percent of men were proposing with an engagement ring.
• 8:25
  Speaker 1: Then de Beers came on to the scene.
• 8:28
  Speaker 3: Bierz Bigda bears not the kind that you like, g
• 8:31
  Speaker 3: but de Beers was a company that actually held the
• 8:34
  Speaker 3: monopoly of the diamond market for decades, and they came
• 8:37
  Speaker 3: into the market in nineteen thirty eight and they started
• 8:40
  Speaker 3: a marketing ploy They started to get Americans reinvested in
• 8:45
  Speaker 3: diamonds because of their marketing strategy, which arguably is probably
• 8:49
  Speaker 3: one of the most successful marketing strategies in the world.
• 8:53
  Speaker 3: Nearly eighty percent of people now putting rings on fingers
• 8:56
  Speaker 3: when they get.
• 8:56
  Speaker 2: Engaged, and that's only like eighty years later.
• 8:58
  Speaker 3: Exactly, And the same stuff is true for America and
• 9:01
  Speaker 3: now Australia. Historically we didn't actually invest in engagement rings. Yeah,
• 9:05
  Speaker 3: it's a big marketing strategy that has been put into
• 9:08
  Speaker 3: the market that we have all eaten up. And I
• 9:10
  Speaker 3: think that if we start talking about it more logically,
• 9:14
  Speaker 3: five thousand dollars is a lot of money, and we're
• 9:17
  Speaker 3: in a position where it's like, Okay, well fine, I'm
• 9:19
  Speaker 3: not saying don't get an engagement ring, but what I
• 9:21
  Speaker 3: am saying is, let's start having conversations about what is
• 9:24
  Speaker 3: reasonable in twenty twenty. We often view diamonds as rare,
• 9:28
  Speaker 3: and that's why we want to have a diamond because
• 9:30
  Speaker 3: diamonds are forever. They're a good investment. Often we're told,
• 9:33
  Speaker 3: you know, that's why they're valuable. Look at the four c's,
• 9:36
  Speaker 3: you know, you look at your cut, you look at
• 9:37
  Speaker 3: your color, you look at the clarity, you look at
• 9:39
  Speaker 3: the carrot of the ring, and that is what people
• 9:42
  Speaker 3: are led to believe. But for anyone who starts to
• 9:45
  Speaker 3: do even a little bit of research, you'll find that
• 9:47
  Speaker 3: diamonds aren't actually rare. They are just highly regulated and
• 9:51
  Speaker 3: that has come from the Diber's cartel. And even if
• 9:54
  Speaker 3: for one minute we pretended that they were rare, we're
• 9:57
  Speaker 3: faced with the problem that artificial diamonds can actually created
• 10:00
  Speaker 3: in the absolute boat loads, So why are we so
• 10:04
  Speaker 3: stuck on diamonds as a valuable investment. Diamonds aren't actually
• 10:08
  Speaker 3: liquid if I put my investment hat on, they are
• 10:10
  Speaker 3: quite hard to sell. I don't know if anyone has
• 10:13
  Speaker 3: had to, and I don't think that I would ever
• 10:15
  Speaker 3: wish this on someone. But if you go and try
• 10:17
  Speaker 3: and sell a secondhand diamond engagement ring, there's often a
• 10:20
  Speaker 3: lot of stigma that associates that so in bad luck.
• 10:24
  Speaker 3: Like often women are like, oh well, I don't want
• 10:26
  Speaker 3: to wear somebody else's engagement ring or wedding ring from
• 10:29
  Speaker 3: a failed marriage. But then you've also got antique jewelry.
• 10:33
  Speaker 3: But if you've ever gone to sell a diamond, it
• 10:35
  Speaker 3: is very hard to sell and you are going to
• 10:37
  Speaker 3: make a significant loss when you do go to sell it.
• 10:40
  Speaker 3: So to me, that's not a very good investment. In fact,
• 10:43
  Speaker 3: so many jewelers refuse to buy back diamonds, even if
• 10:46
  Speaker 3: you previously purchased that same diamond from them and there's
• 10:49
  Speaker 3: documentation to prove it, like they just won't have it.
• 10:52
  Speaker 3: There's often really strict refund policies in place when it
• 10:55
  Speaker 3: comes to diamonds and engagement rings. So in my book,
• 10:58
  Speaker 3: diamonds are probably a terrible investment if we look at
• 11:00
  Speaker 3: it on an investment side of things. They're not rare,
• 11:03
  Speaker 3: they're not liquid, and they're not that valuable. But because
• 11:06
  Speaker 3: of the way that they are being marketed and because
• 11:08
  Speaker 3: of the way that they are sold, they're really expensive.
• 11:12
  Speaker 2: So what would you say, then, is a reasonable amount
• 11:14
  Speaker 2: of money to be spending on a diamond ring?
• 11:17
  Speaker 3: This is such a hard question to start having a
• 11:20
  Speaker 3: conversation about. I would love to say it's a tale
• 11:22
  Speaker 3: as old as time, but it's not because it's not
• 11:25
  Speaker 3: been around for that long. It's been around our entire lives, though,
• 11:29
  Speaker 3: So if we want a diamond engagement ring, I think
• 11:30
  Speaker 3: it's also really important to look at what our expectations are.
• 11:34
  Speaker 3: So if we're talking to what the expectations are, often
• 11:38
  Speaker 3: I will have a client say, well, isn't it three
• 11:40
  Speaker 3: months worth of salary? That is often a stigma that
• 11:43
  Speaker 3: is associated with it. If we look back to the eighties,
• 11:45
  Speaker 3: it was two months worth of salaries. If we look
• 11:48
  Speaker 3: back to the fifties and sixties, that was actually.
• 11:50
  Speaker 1: One month's worth of salary.
• 11:51
  Speaker 3: And we've got indexation, we've got inflation, we've got increased
• 11:54
  Speaker 3: cost of salaries. I think that we are now looking
• 11:57
  Speaker 3: at something that is actually quite unreasonable when it comes
• 12:00
  Speaker 3: down to it.
• 12:01
  Speaker 2: So what does a three month salary actually look like? Victoria.
• 12:04
  Speaker 3: So if you look at the Australian median annual income
• 12:07
  Speaker 3: that actually sits in twenty twenty at around eighty six
• 12:10
  Speaker 3: thousand dollars, which is a lot of money after tax.
• 12:13
  Speaker 3: That is what sixty six thousand dollars going into your
• 12:16
  Speaker 3: bank account every year. So that means that you've got
• 12:19
  Speaker 3: a monthly take home salary of five four hundred dollars.
• 12:23
  Speaker 1: By times that by three, and we're.
• 12:25
  Speaker 3: At sixteen thousand dollars already. And that number, when I calculated,
• 12:29
  Speaker 3: it made me feel a little bit sick. So if
• 12:32
  Speaker 3: we start talking about sixteen thousand dollars in more tangible terms,
• 12:37
  Speaker 3: like if you're spending that on engadgem ring, that is
• 12:38
  Speaker 3: absolutely fine. And as I've said so so many times
• 12:42
  Speaker 3: before on the podcast, this is more just about educating
• 12:44
  Speaker 3: you into making decisions that you.
• 12:46
  Speaker 1: Are completely aware of.
• 12:48
  Speaker 3: But if we took sixteen thousand dollars and put it
• 12:51
  Speaker 3: into the share market over the next forty years, because
• 12:55
  Speaker 3: that's how much longer we've got to retire at. And
• 12:58
  Speaker 3: then we used an effective interest rate of seven and
• 13:00
  Speaker 3: a half percent, because, as I've told you guys before,
• 13:03
  Speaker 3: I always use seven and a half percent, even though
• 13:05
  Speaker 3: the Australian share market returns more than that on average
• 13:08
  Speaker 3: over a thirty year period. Sixteen thousand dollars turns into
• 13:13
  Speaker 3: three hundred and eighteen thousand dollars over the long term.
• 13:17
  Speaker 2: Imagine how many engagement rings you goodbye with that, Victoria exactly.
• 13:20
  Speaker 3: But I think it's more about what are your values?
• 13:22
  Speaker 3: Why are we placing such significant value on a ring
• 13:26
  Speaker 3: that that capital could be invested somewhere else? And now
• 13:29
  Speaker 3: I'm not saying don't do it. That is absolutely not
• 13:32
  Speaker 3: the message. Just think about it, Go okay, cool, no problems.
• 13:35
  Speaker 3: But what could we say of how could we do that?
• 13:37
  Speaker 3: Could we invest that for our future and spend three
• 13:39
  Speaker 3: hundred thousand dollars in retirement going on holidays and having
• 13:42
  Speaker 3: a really, really big, really long honeymoon. We are purchasing
• 13:46
  Speaker 3: an asset that is not really an asset because it
• 13:49
  Speaker 3: doesn't provide any wealth for us, It doesn't create wealth.
• 13:51
  Speaker 3: It might make us feel really good. Yeah, it's really pretty.
• 13:54
  Speaker 3: And please don't get me wrong, I'm hypercritical of this
• 13:57
  Speaker 3: because I'm a financial advisory. Is that really something you
• 14:00
  Speaker 3: want to be putting your money into? And there is
• 14:02
  Speaker 3: a lot of research that says that it's actually putting
• 14:05
  Speaker 3: couples behind. So they're spending twenty thousand dollars on a ring,
• 14:09
  Speaker 3: which I'm telling you right now is actually very very common.
• 14:12
  Speaker 3: Really is spending twenty thousand dollars on a ring, and
• 14:14
  Speaker 3: that is putting them back because they want to purchase
• 14:16
  Speaker 3: a home. It is actually getting in the way of
• 14:19
  Speaker 3: their larger financial goals. And if that is one of
• 14:22
  Speaker 3: their financial goals, that is fantastic. I am here for it.
• 14:24
  Speaker 3: But I want to make sure that people are purchasing
• 14:27
  Speaker 3: in line with their values, not necessarily purchasing in line
• 14:31
  Speaker 3: with what the society that they see expects them to do.
• 14:35
  Speaker 3: And I think that that's really hard in a world
• 14:37
  Speaker 3: where we have comparisons gol Or, we have Instagram, we
• 14:40
  Speaker 3: have Facebook, we have targeted advertising. The second you input
• 14:43
  Speaker 3: into Google that you are looking for an engagement ring,
• 14:45
  Speaker 3: you are absolutely bombarded with it. On Instagram, on Facebook advertising,
• 14:50
  Speaker 3: it is absolutely everywhere, and I think that that is
• 14:53
  Speaker 3: really hard to shy away from as well, because no
• 14:55
  Speaker 3: one on Instagram is really showcasing smaller diamonds or alternative
• 15:00
  Speaker 3: They're all showcasing their big one point five carrot diamond
• 15:03
  Speaker 3: engagement rings. And you go, oh, okay, well, maybe this
• 15:05
  Speaker 3: is the expectation, because I know I see that.
• 15:08
  Speaker 2: So the price is constantly rising, as is the expectation
• 15:11
  Speaker 2: of society. What are we actually meant to be spending?
• 15:14
  Speaker 3: Such a hard conversation to have, And I wish I
• 15:16
  Speaker 3: had a dollar figure because I think it's one of
• 15:19
  Speaker 3: those things that everybody's looking for that figure, Like everybody
• 15:21
  Speaker 3: wants me to say, all right, well two thousand dollars
• 15:23
  Speaker 3: is reasonable, and then they go, all right, no problems,
• 15:25
  Speaker 3: That's exactly what I'm going to spend, because that's what
• 15:28
  Speaker 3: is real and reasonable. But I think it comes back
• 15:31
  Speaker 3: to values, and it comes back to money goals, and
• 15:33
  Speaker 3: it comes back to how much you are spending and
• 15:35
  Speaker 3: saving each and every single month. I am a very
• 15:38
  Speaker 3: strong believer that if you're going to purchase an engagement ring,
• 15:41
  Speaker 3: you should not be going into debt. If you're going
• 15:43
  Speaker 3: into debt, you are not ready to get engaged and
• 15:46
  Speaker 3: that is probably very opinionated, but it is one of
• 15:49
  Speaker 3: those things where you should be spending within your means.
• 15:52
  Speaker 3: And if it is something that you cannot realistically fit
• 15:55
  Speaker 3: into your budget, why is that something you are making
• 15:58
  Speaker 3: space for when you have other values in competing priorities.
• 16:02
  Speaker 3: Everybody knows how I feel about debt by now, and
• 16:06
  Speaker 3: we avoid it like the plague. And if you're going
• 16:08
  Speaker 3: to take on debt, it needs to be good debt
• 16:10
  Speaker 3: that is going to increase your wealth. Whilst I believe
• 16:14
  Speaker 3: that getting engaged is an incredibly special time in your life,
• 16:17
  Speaker 3: Like we're not here saying it's not, and we're not
• 16:19
  Speaker 3: here saying don't get engaged. We're not here saying you know,
• 16:22
  Speaker 3: it's a bad idea. Don't get me wrong. It's something
• 16:24
  Speaker 3: that I want at some point in my life, but
• 16:27
  Speaker 3: it is not a priority for me to go into
• 16:30
  Speaker 3: debt to pior ring. That is stretching me beyond my means.
• 16:33
  Speaker 2: Do you even need the ring? Like can't you just
• 16:35
  Speaker 2: get engaged and that purchase the ring later?
• 16:37
  Speaker 3: Or you know us so many ways. And whilst doing
• 16:41
  Speaker 3: my research I found a really great report. It was
• 16:44
  Speaker 3: the twenty nineteen Australian Wedding Industry report, and it said
• 16:47
  Speaker 3: that sixty percent of couples that get engaged are formed
• 16:51
  Speaker 3: with a ring.
• 16:51
  Speaker 1: That is a surprise, Okay, twenty four.
• 16:53
  Speaker 3: Percent of couples are choosing an engagement ring together, and
• 16:57
  Speaker 3: six percent of engagements are agreed upon without a ring,
• 17:00
  Speaker 3: six percent, which I think is really interesting because if
• 17:04
  Speaker 3: you're going to be spending five one hundred and forty
• 17:07
  Speaker 3: seven dollars on an asset, why are sixty percent of
• 17:10
  Speaker 3: you choosing that as a surprise. I feel like if
• 17:13
  Speaker 3: my partner went out and spent five grand on something
• 17:16
  Speaker 3: without my consent or without me understanding what's going on
• 17:20
  Speaker 3: and having a conversation about money, I'd be pretty unimpressed.
• 17:23
  Speaker 3: But that's me and I think that that's then leading
• 17:26
  Speaker 3: into a really good conversation about your living situation and
• 17:30
  Speaker 3: about your financial situation, like who pays for the ring?
• 17:34
  Speaker 3: I don't know, but at this point in time, and
• 17:37
  Speaker 3: I've been quite open about this journey, I've started working
• 17:40
  Speaker 3: with my partner on having joint finances and that means
• 17:43
  Speaker 3: complete visibility on both sides of the story. How does
• 17:47
  Speaker 3: someone say for an engagement ring if I see his
• 17:50
  Speaker 3: bank account. How do I do that without ruining the
• 17:53
  Speaker 3: surprise essentially? And I think that's where it comes into play,
• 17:57
  Speaker 3: where you could either choose it together or getting gaged
• 18:00
  Speaker 3: with a stand in ring. I know a couple of
• 18:02
  Speaker 3: girlfriends who have had that happen where their partners have
• 18:04
  Speaker 3: just gone and bought cheap rings from La Visa and
• 18:07
  Speaker 3: proposed with those rings so that they can then go
• 18:10
  Speaker 3: and choose the ring together later, but they haven't lost
• 18:13
  Speaker 3: that element of surprise. And I think that that's a
• 18:15
  Speaker 3: really nice way about going about it. But it's twenty
• 18:19
  Speaker 3: twenty as well. I think things have changed. It's no
• 18:21
  Speaker 3: longer about your partner going and spending a lot of
• 18:24
  Speaker 3: money on something and then proposing and surprising you.
• 18:27
  Speaker 1: I think the narrative around.
• 18:29
  Speaker 3: Getting engaged and getting married is now changing because in
• 18:32
  Speaker 3: twenty twenty, we're far more collaborative. If we're going to
• 18:34
  Speaker 3: be all about equality, aren't we meant to be equally
• 18:37
  Speaker 3: contributing to our relationships? And if we are equally contributing
• 18:41
  Speaker 3: to our relationships, does that then extend to paying half
• 18:44
  Speaker 3: for our engagement rings? What does that actually look like?
• 18:47
  Speaker 3: And I think that that is then a really personal question.
• 18:51
  Speaker 3: You know some women are going to say, well, Victoria,
• 18:53
  Speaker 3: regardless of how much of a feminist I am, I
• 18:55
  Speaker 3: still love the idea of having a surprise engagement and
• 18:58
  Speaker 3: that is so okay. But it's a conversation you need
• 19:01
  Speaker 3: to have with your partner because one, we don't want
• 19:03
  Speaker 3: to be disappointed when it happens, but two we also
• 19:06
  Speaker 3: don't want to be surprised by something that is actually
• 19:09
  Speaker 3: a really big financial commitment.
• 19:11
  Speaker 2: So back to what we should be suspending, Victoria, Well, yes,
• 19:14
  Speaker 2: give me some money, figures, Comma.
• 19:17
  Speaker 3: You keep questioning me for this, but I think it's
• 19:19
  Speaker 3: a really hard thing to answer. Like it is back
• 19:22
  Speaker 3: to values. As I said, I do not want you
• 19:24
  Speaker 3: going into debt. I do not want you to be
• 19:26
  Speaker 3: going to a place that is stretching you so financially
• 19:28
  Speaker 3: that you aren't achieving your other goals. I think it's
• 19:31
  Speaker 3: really worth having a look at all. Right, Well, yes,
• 19:34
  Speaker 3: you will be wearing this ring, hopefully for the rest
• 19:36
  Speaker 3: of your life. Probably spend some money on it so
• 19:39
  Speaker 3: that you feel comfortable and you love the item that
• 19:41
  Speaker 3: you have chosen together. But then also, is it actually
• 19:44
  Speaker 3: within your budget? How do you budget for this? Is
• 19:46
  Speaker 3: it something that you save up quite aggressively for so
• 19:49
  Speaker 3: it's over and done with. Like we are young, and unfortunately,
• 19:53
  Speaker 3: when you get to the stage where you are getting engaged,
• 19:56
  Speaker 3: it is the most expensive period of your life. You've
• 20:00
  Speaker 3: got an engagement, You've then probably maybe got an engagement party.
• 20:04
  Speaker 3: Then you've got a wedding, and then you often spend
• 20:06
  Speaker 3: money on a honeymoon, and then more likely than not,
• 20:09
  Speaker 3: you know, without stereotyping, then a baby comes onto the
• 20:12
  Speaker 3: scene and you've got financial commitments coming from everywhere, and
• 20:16
  Speaker 3: unlike any other period in your life, this is the
• 20:19
  Speaker 3: period that you are spending.
• 20:20
  Speaker 1: The most money.
• 20:21
  Speaker 3: And I think it's worthy of consideration to actually just
• 20:24
  Speaker 3: reflect on that and go, Okay, well, how could I
• 20:26
  Speaker 3: save money, How could I get the things that I
• 20:28
  Speaker 3: want what is really going to matter to me the
• 20:30
  Speaker 3: most ten years from now, and based decisions on that
• 20:33
  Speaker 3: rather so.
• 20:34
  Speaker 2: Getting caught up and swept up in the world of
• 20:36
  Speaker 2: Instagram and all of that.
• 20:37
  Speaker 3: Absolutely comparison, And I think that having hard and fast
• 20:40
  Speaker 3: numbers is really hard because every couple has a different
• 20:43
  Speaker 3: set of values and every budget has room for movement.
• 20:47
  Speaker 3: So we all have different things in our budgets, like
• 20:49
  Speaker 3: We're talking a couple of weeks ago in the Facebook
• 20:51
  Speaker 3: group that someone was absolutely not negotiable on their eyelash extensions,
• 20:55
  Speaker 3: and someone else was like, wow, why would you have
• 20:57
  Speaker 3: that in your budget at all? Like, I don't have
• 20:59
  Speaker 3: any value on that, But they're spending seventy dollars a
• 21:01
  Speaker 3: week on a gym membership. So we are all so different.
• 21:05
  Speaker 3: I think it would be quite inconsiderate of me to
• 21:07
  Speaker 3: give you a number like, Okay, well, I think five
• 21:09
  Speaker 3: thousand dollars is reasonable.
• 21:11
  Speaker 1: It is not.
• 21:11
  Speaker 3: I know women who have gotten engaged with one hundred
• 21:13
  Speaker 3: dollars engagement ring, and that is the ring that they
• 21:15
  Speaker 3: are wearing for their entire lives, and they love it
• 21:17
  Speaker 3: and it is so so special to them. But then
• 21:19
  Speaker 3: I also have clients who spend upwards of fifty thousand
• 21:22
  Speaker 3: dollars on an engagement ring, and they are it's a
• 21:24
  Speaker 3: lot of money, but they are really happy, and I'm
• 21:27
  Speaker 3: really happy for them. So I think it is purchasing
• 21:30
  Speaker 3: something together that is in your budget that you have
• 21:32
  Speaker 3: allocated funds too, or you have organized funds together to
• 21:37
  Speaker 3: purchase something. I think we often try to spend beyond
• 21:40
  Speaker 3: our means because we are trying to impress people that
• 21:43
  Speaker 3: we don't need to impress. I think all that matters
• 21:46
  Speaker 3: here is that it is what you would like to wear,
• 21:48
  Speaker 3: and it is something that makes you and your partner
• 21:51
  Speaker 3: really happy.
• 21:52
  Speaker 2: So what if you can't afford the ring that you
• 21:54
  Speaker 2: so just really want.
• 21:55
  Speaker 3: I think that that is such a common thing, and
• 21:57
  Speaker 3: that is something that a lot of women are struggle
• 22:00
  Speaker 3: with because they see these big, beautiful two carrot diamond
• 22:03
  Speaker 3: rings and they go, well, that's what I would like,
• 22:05
  Speaker 3: And this is where we can start a conversation I guess,
• 22:07
  Speaker 3: gee around diamond alternatives. Yes, so there are so many
• 22:10
  Speaker 3: great diamond alternatives on the marketplace. My money when before
• 22:14
  Speaker 3: was about buying a dress for a wedding that's coming up.
• 22:16
  Speaker 3: And the friend that got engaged actually has this absolutely
• 22:20
  Speaker 3: gorgeous blue sapphire. It is an heirloom from her family
• 22:23
  Speaker 3: that she has reset and honestly, I have never seen
• 22:26
  Speaker 3: something more stunning. Yeah, it is this like three stone
• 22:29
  Speaker 3: ring that I'm obsessed with, but it is so her,
• 22:32
  Speaker 3: it's not funny. So I think if an heirloom is
• 22:34
  Speaker 3: an opportunity for you, definitely look into that, because it is.
• 22:38
  Speaker 3: It's nice to have something sentimental, absolutely, but then also gemstones.
• 22:42
  Speaker 1: Have a color.
• 22:43
  Speaker 3: If you've got a favorite color, fantastic, like, if that
• 22:46
  Speaker 3: is something that makes you really happy, go for it.
• 22:48
  Speaker 3: But then also if you just really want that perfect
• 22:50
  Speaker 3: diamond look in clear stone, there are so many alternatives,
• 22:53
  Speaker 3: like on the market. I've been doing a little bit
• 22:55
  Speaker 3: of research for this episode, and there are white sapphires
• 22:58
  Speaker 3: that look very similar to diamonds, Cubic xiconias. So companies
• 23:02
  Speaker 3: like Secrets, however you say it, Secrets, they have really
• 23:07
  Speaker 3: beautiful rings, are really really reasonable prices that look very
• 23:11
  Speaker 3: similar to diamonds. You've then got stones like mosonite or
• 23:15
  Speaker 3: mois and night I'm unsure of how to say that,
• 23:17
  Speaker 3: and that is incredibly popular in the US. It doesn't
• 23:19
  Speaker 3: seem to be very big in Australia yet. And then
• 23:22
  Speaker 3: you have lab grown diamonds, which to the human eye
• 23:24
  Speaker 3: are absolutely indistinguishable from real diamonds. So we can actually
• 23:29
  Speaker 3: find alternatives that give us the look that we want
• 23:33
  Speaker 3: and the ring size that we want without actually having
• 23:35
  Speaker 3: to go into a lot of debt and doing my research,
• 23:38
  Speaker 3: they are less than a quarter of the price of
• 23:40
  Speaker 3: a diamond, and that's crazy to me, if you want
• 23:43
  Speaker 3: a certain ring, or if you want something that is
• 23:46
  Speaker 3: a little bit out of your price budget, maybe have
• 23:49
  Speaker 3: a look at an alternative. That means that you get
• 23:52
  Speaker 3: the look essentially for less, and you get exactly what
• 23:55
  Speaker 3: you have been looking for all along. And I think
• 23:57
  Speaker 3: that that's actually really I don't know, there's something.
• 24:00
  Speaker 2: About that, the visual and personalized.
• 24:02
  Speaker 3: I think as well, Yeah, I love it, Like, I
• 24:04
  Speaker 3: actually think it's something that you know, like, when my
• 24:07
  Speaker 3: time comes, you say, like, I think that's something that
• 24:09
  Speaker 3: I would genuinely look into because I do love personally
• 24:13
  Speaker 3: the look of bigger rings, Like I just think they
• 24:15
  Speaker 3: are really beautiful. And I've got a couple of friends
• 24:18
  Speaker 3: that have these absolutely stunning rings, but I really don't
• 24:21
  Speaker 3: want to spend what they've spent on those rings. But
• 24:24
  Speaker 3: I also kind of want the opportunity to have a big,
• 24:26
  Speaker 3: sparkly thing. So I don't know what the right or
• 24:29
  Speaker 3: wrong answer here is. I think looking into alternatives is
• 24:31
  Speaker 3: definitely something that is worthy of consideration. It is definitely
• 24:35
  Speaker 3: something that to me is a little bit sexy in
• 24:37
  Speaker 3: terms of budgeting and in terms of making sure that
• 24:39
  Speaker 3: it fits within your cash flow, fits within your lifestyle.
• 24:43
  Speaker 3: But too often do I see couples that come in
• 24:46
  Speaker 3: and have a meeting with me and they've overspent on
• 24:48
  Speaker 3: their engagement ring and they actually regret it. Like I
• 24:51
  Speaker 3: don't meet any couple that has spent out of their
• 24:54
  Speaker 3: budget that doesn't say, hey, yeah, like we probably could
• 24:57
  Speaker 3: have been a bit smarter.
• 24:58
  Speaker 1: He we just got swept up in it.
• 25:03
  Speaker 2: Hi, there you've breached that. She's on the money mailbox.
• 25:06
  Speaker 2: Do you have a money problem you want help solving.
• 25:08
  Speaker 2: Do you have a money's your lemma you just want
• 25:10
  Speaker 2: to chat about? Victoria is here to help. Every week,
• 25:13
  Speaker 2: we'll be playing your questions to help make sense of
• 25:15
  Speaker 2: a money mess you may have found yourself in. Make
• 25:18
  Speaker 2: a quick recording on your phone and send it through
• 25:20
  Speaker 2: to podcast at shoes onthemoney dot com dot you, and
• 25:22
  Speaker 2: you might even find yourself on the show. But for now,
• 25:25
  Speaker 2: here's today's listener question.
• 25:27
  Speaker 4: Hey girls, So I recently just got engaged and I've
• 25:31
  Speaker 4: just started planning my wedding, which seems to be getting
• 25:33
  Speaker 4: a lot bigger than I thought it would be. Our
• 25:36
  Speaker 4: wedding is just over a year from now. But on
• 25:38
  Speaker 4: the weekend, my partner said that he wants to host
• 25:40
  Speaker 4: an engagement party as well. Originally we weren't going to
• 25:43
  Speaker 4: do this, but now that he's changed his mind, I've
• 25:46
  Speaker 4: started to think about it.
• 25:47
  Speaker 1: I just think the costs of the.
• 25:49
  Speaker 4: Wedding are already adding up, and the engagement party would
• 25:52
  Speaker 4: just be another cost that I don't particularly want to
• 25:54
  Speaker 4: plan for, especially given that we've already booked half of
• 25:58
  Speaker 4: our wedding. Is how do I approach my partner with this.
• 26:02
  Speaker 4: I don't think he realizes how much of an extra
• 26:05
  Speaker 4: cost this engagement party would be.
• 26:08
  Speaker 2: Thanks another tough question this week, Victoria, this is going
• 26:12
  Speaker 2: to be very expensive with the engagement party and the wedding.
• 26:16
  Speaker 2: Do you need to be doing both?
• 26:17
  Speaker 3: I think it's a double whammy here. If he's a
• 26:19
  Speaker 3: double um, I think this one's really interesting. So Australians
• 26:25
  Speaker 3: on average spending thirty six thousand dollars on weddings, which
• 26:29
  Speaker 3: you guys would know if you listened to our wedding
• 26:31
  Speaker 3: episode from last season, and according to money Smart, eighty
• 26:35
  Speaker 3: two percent of couples are dipping into their savings to
• 26:38
  Speaker 3: pay for their wedding, which is fine. I like that
• 26:41
  Speaker 3: they've saved for it, but sixty percent of couples are
• 26:44
  Speaker 3: also relying on a loan, and eighteen percent of couples
• 26:48
  Speaker 3: are using a credit card to pay for parts of
• 26:50
  Speaker 3: their wedding. So I think that this is a really
• 26:53
  Speaker 3: interesting question because it comes back down to money budgeting,
• 26:57
  Speaker 3: and I am wild about budget as you guys would know,
• 27:01
  Speaker 3: but I also think that if you've got a wedding
• 27:03
  Speaker 3: coming up, you need to be doing a comprehensive budget
• 27:06
  Speaker 3: that takes into consideration every single part of your wedding
• 27:11
  Speaker 3: and the whole process. So, for me, a wedding budget
• 27:14
  Speaker 3: includes the engagement party, it includes the engagement ring, it
• 27:18
  Speaker 3: includes all of the honeymoon.
• 27:20
  Speaker 1: And every other budget everything.
• 27:22
  Speaker 3: Literally your hen's party, your Bucks party, the bridesmaid's dresses
• 27:26
  Speaker 3: if you're paying for them, hair makeup, like every single thing,
• 27:30
  Speaker 3: including the thank you notes that you send out at
• 27:32
  Speaker 3: the end of the wedding. So I think that that
• 27:35
  Speaker 3: is a number that needs to be agreed on between
• 27:37
  Speaker 3: you and your partner, and you need to be under
• 27:40
  Speaker 3: the understanding of what.
• 27:41
  Speaker 1: Is included in that budget to begin with.
• 27:43
  Speaker 3: So, if you're choosing a wedding budget, let's call the average,
• 27:46
  Speaker 3: if you have chosen to spend thirty six thousand dollars
• 27:49
  Speaker 3: on a wedding, you need to make all of those
• 27:51
  Speaker 3: events fit into that budget. It is not all right,
• 27:54
  Speaker 3: thirty six thousand dollars is happening just for the wedding,
• 27:57
  Speaker 3: and then we've got an engagement party, and then we've
• 27:59
  Speaker 3: got engagement ring, and then we've got wedding rings, and
• 28:01
  Speaker 3: we've got a honeymoon.
• 28:02
  Speaker 1: So I think it's pick a budget.
• 28:04
  Speaker 3: And that covers every single festivity related to that event,
• 28:08
  Speaker 3: and then you break it down from there.
• 28:10
  Speaker 1: And that's where couples come.
• 28:11
  Speaker 3: Really unstuck when planning a wedding because they say, oh,
• 28:14
  Speaker 3: we're going to spend thirty thousand dollars, but they actually
• 28:17
  Speaker 3: didn't realize that the florist they want has a minimum
• 28:19
  Speaker 3: spend of five thousand dollars and so then bam, you've
• 28:22
  Speaker 3: eaten up a very significant portion of your budget there
• 28:25
  Speaker 3: without even thinking about it. And everything in wedding, like
• 28:28
  Speaker 3: when weddings roll around is wedding tax.
• 28:31
  Speaker 1: Yeah, that's it exactly.
• 28:32
  Speaker 3: So I think that it's really important when you are
• 28:34
  Speaker 3: planning an overall wedding budget, be educated, understand what these
• 28:38
  Speaker 3: things cost. Before setting a wedding budget, have a think
• 28:41
  Speaker 3: about the things that you want make some inquiries, understand
• 28:44
  Speaker 3: what the videographer is going to cost. Often videographers these days,
• 28:48
  Speaker 3: if you want one of the ones that are really
• 28:50
  Speaker 3: fancy on Instagram, sit between eight and ten thousand dollars
• 28:53
  Speaker 3: for the day and that adds up so quickly, and
• 28:57
  Speaker 3: whilst it might be a value to you, I think
• 28:59
  Speaker 3: you really need to get on the same page with
• 29:01
  Speaker 3: your partner and say, Okay, we've got this wedding budget.
• 29:04
  Speaker 3: What needs to be taken into consideration. How do we
• 29:07
  Speaker 3: put an engagement party into the budget that we already have.
• 29:10
  Speaker 3: Do we need to have less flowers at the wedding
• 29:12
  Speaker 3: and you know, maybe have the really standard drinks package
• 29:15
  Speaker 3: as opposed to the premium one we were previously considering,
• 29:17
  Speaker 3: because it means that we've got more cash to play
• 29:20
  Speaker 3: with for something else, and I think that that's where
• 29:22
  Speaker 3: we need to be seeing these things. I don't have
• 29:24
  Speaker 3: an opinion on whether you should or shouldn't have engagement parties.
• 29:27
  Speaker 3: It's each to their own. And often when things happen
• 29:31
  Speaker 3: like weddings, families get involved. So sometimes your family will
• 29:34
  Speaker 3: pay for some things, or sometimes you've got these expectations
• 29:37
  Speaker 3: from a family member that you will have an engagement party,
• 29:40
  Speaker 3: or you will be paying for this, that or the other. Yeah,
• 29:43
  Speaker 3: and I think that everybody's situation is so different that
• 29:46
  Speaker 3: it's hard to say what's right or what's wrong. And
• 29:48
  Speaker 3: the advice here from me is actually just create an
• 29:51
  Speaker 3: overall budget and make everything fit into that. So if
• 29:54
  Speaker 3: you need to chop and change what that budget looks like,
• 29:58
  Speaker 3: you can reallocate funds from a deal different part. So,
• 30:01
  Speaker 3: as I said before, you could take some money off
• 30:03
  Speaker 3: your florist budget and put it into something else if
• 30:05
  Speaker 3: you needed to. But that's how we should be looking
• 30:08
  Speaker 3: at weddings, because that is how it gets so wildly
• 30:11
  Speaker 3: out of control because we don't actually take into consideration
• 30:14
  Speaker 3: every single piece.
• 30:15
  Speaker 1: That we need.
• 30:16
  Speaker 2: I think as well, engagement parties don't have to be
• 30:19
  Speaker 2: as enormous as the wedding. You could just have an
• 30:21
  Speaker 2: intimate gathering of your nearest and dearest, and yeah, it
• 30:24
  Speaker 2: doesn't have.
• 30:24
  Speaker 3: To hundred percent hundred percent, but it could also be
• 30:28
  Speaker 3: the flip. It could also be a massive engagement party
• 30:31
  Speaker 3: with one hundred plus people, and then you have a
• 30:33
  Speaker 3: really small, intimate wedding. And I don't think that that
• 30:37
  Speaker 3: is bad. And I've got clients who have had these
• 30:39
  Speaker 3: epic engagement parties that have turned into their weddings or
• 30:42
  Speaker 3: epic engagement parties that have then turned into them eloping
• 30:45
  Speaker 3: and saying ha ha, we actually we actually already we
• 30:48
  Speaker 3: actually already got married. Joke's on you, and I think
• 30:52
  Speaker 3: it's a really important thing to remember that everyone has
• 30:55
  Speaker 3: a different set of values, but everyone can keep a
• 30:58
  Speaker 3: clear budget.
• 31:03
  Speaker 2: Okay, now for the fun stuff. What good would a
• 31:05
  Speaker 2: money podcast be without the pervy bits. It's time for
• 31:08
  Speaker 2: money Diary. Strap yourselves in, guys, because this one's a goodie.
• 31:11
  Speaker 3: Hi.
• 31:11
  Speaker 1: I'm twenty one and ninety percent sorted.
• 31:13
  Speaker 5: I would say that my relationship with money is pretty decent.
• 31:19
  Speaker 5: I work for myself as a videographer and social media manager,
• 31:24
  Speaker 5: so I based my income off invoices, which is kind
• 31:27
  Speaker 5: of a rollercoaster of a way to live at twenty one,
• 31:30
  Speaker 5: but I love it and money's okay.
• 31:33
  Speaker 2: Okay, So now we know what she does. Let's get
• 31:36
  Speaker 2: into the juicy stuff. How much does she earn and
• 31:38
  Speaker 2: how much is sitting in her bank account right now?
• 31:40
  Speaker 5: I don't have a salary, so just basically how much
• 31:43
  Speaker 5: I work, how many clients I can bring on board.
• 31:45
  Speaker 5: I think in like my last year of high school,
• 31:47
  Speaker 5: when I kind of sort of started getting serious about business,
• 31:50
  Speaker 5: I profited like thirteen dollars after tax.
• 31:53
  Speaker 1: There was a win.
• 31:53
  Speaker 5: I was positive, so that was cool, and then it
• 31:56
  Speaker 5: just kind of has progressed since I moved to Melbourne
• 31:58
  Speaker 5: three years ago, and it was like thirteen thousand, and
• 32:01
  Speaker 5: then like thirty and then this year I'm looking to
• 32:04
  Speaker 5: do this financial year looking to do about eighty thousand
• 32:07
  Speaker 5: pre tax. So sitting in my savings account right now
• 32:10
  Speaker 5: between my business and personal is about ten thousand dollars.
• 32:13
  Speaker 5: It's not a huge amount of money, but I tend
• 32:15
  Speaker 5: to be the person who will just wake up one
• 32:17
  Speaker 5: day have like too much money in my account, and
• 32:19
  Speaker 5: I'll go to all camera shop and be like literally
• 32:21
  Speaker 5: say goodbye to like like eight thousand dollars just because
• 32:24
  Speaker 5: I want new camera gear.
• 32:27
  Speaker 1: Victoria's going nuts over here.
• 32:29
  Speaker 5: So at this point in time, I have about thirty
• 32:31
  Speaker 5: three thousand dollars worth of camera equipment to my business,
• 32:34
  Speaker 5: which is really it's a cool achievement for me. But
• 32:36
  Speaker 5: then I also I think about it and all my
• 32:38
  Speaker 5: friends are like going on European holidays and American holidays,
• 32:41
  Speaker 5: and I'm like, where's my holiday?
• 32:42
  Speaker 1: Like I work, I work and I save, but where's
• 32:45
  Speaker 1: my holiday?
• 32:45
  Speaker 5: And then my mum sends through like my insurancing and
• 32:48
  Speaker 5: she's like insured, gear's like thirty three grand, and I'm like, hmm,
• 32:52
  Speaker 5: that might be.
• 32:53
  Speaker 1: It might be where my America trip is.
• 32:55
  Speaker 2: And what exactly happens to that money after it's deposited
• 32:58
  Speaker 2: into her account?
• 32:59
  Speaker 5: Everything that I kin't only pay myself two hundred dollars
• 33:02
  Speaker 5: a week and then the rest goes to my business.
• 33:05
  Speaker 5: Money comes into my account, and when I get an
• 33:08
  Speaker 5: invoice paid, it's thirty percent tax and GST. That goes
• 33:12
  Speaker 5: to my up account. Then it's thirty percent to my
• 33:15
  Speaker 5: business within my combank, and it's thirty percent to my
• 33:17
  Speaker 5: personal Then I pay my rent from my personal account
• 33:21
  Speaker 5: as that adds up, and then anything I buy for
• 33:23
  Speaker 5: my business goes from my business account.
• 33:25
  Speaker 2: Okay, then, so how does she feel about investing? Does
• 33:28
  Speaker 2: she invest? And if so?
• 33:29
  Speaker 1: How I think investing? For me?
• 33:31
  Speaker 5: Was never something that I grew up with, Like neither
• 33:33
  Speaker 5: of my parents. I did not know anything about investing
• 33:37
  Speaker 5: until I went out to look for it.
• 33:39
  Speaker 1: So it was never something my mum was.
• 33:41
  Speaker 5: Super duper skeptical about it because she never knew, like
• 33:43
  Speaker 5: understood it. So I went out and learnt about it,
• 33:46
  Speaker 5: learned the basics, and learned like how it works, and
• 33:49
  Speaker 5: I just see it as a way to This is
• 33:52
  Speaker 5: probably a real dumb way of saying it, but here
• 33:54
  Speaker 5: is a way to grow wealth without really doing much.
• 33:57
  Speaker 5: It kind of just compounds over time, and that sounds
• 33:59
  Speaker 5: like a deal to me. So at this stage, I'm
• 34:02
  Speaker 5: currently investing monthly into Rays, so it's just one hundred
• 34:05
  Speaker 5: dollars a month. But because I work based off invoices,
• 34:08
  Speaker 5: I try to have my expenses set out, and then
• 34:11
  Speaker 5: anything above for what comes in that's not in my
• 34:13
  Speaker 5: necessary expenses usually just goes into RAYS. So about two
• 34:17
  Speaker 5: thousand dollars in RAYS at the minute, but with the
• 34:19
  Speaker 5: current financial climate, it could be five hundred dollars tomorrow.
• 34:22
  Speaker 5: We'll just hang in there and see how that goes.
• 34:26
  Speaker 2: What about debts like credit cards or personal loans?
• 34:28
  Speaker 1: So I'm actually super super duper.
• 34:30
  Speaker 5: Lucky that the only debt I have is my hex
• 34:32
  Speaker 5: debt help debt. I just graduated from UNI last month,
• 34:36
  Speaker 5: and I have twenty one thousand dollars in a help debt,
• 34:38
  Speaker 5: which I'm really not in a hurry to pay off
• 34:40
  Speaker 5: because it's super too below interest and I'd rather put
• 34:42
  Speaker 5: my money elsewhere. So growing up, my mum really instilled
• 34:46
  Speaker 5: into me that it was really important to be careful
• 34:49
  Speaker 5: around credit cards, in saying that I did get a
• 34:51
  Speaker 5: credit card when I was eighteen. It had a nine
• 34:54
  Speaker 5: hundred dollar limit on it, and I had that because
• 34:56
  Speaker 5: I moved from a very small hometown where my family were,
• 35:01
  Speaker 5: so it's like eight hours from Melbourne, and moved down
• 35:03
  Speaker 5: to Melbourne, and my mom's like, I want you to
• 35:05
  Speaker 5: be okay, like if you need something, like it's not
• 35:08
  Speaker 5: like you can just trip around the corner and come
• 35:09
  Speaker 5: and see us, Like you have this if you need it.
• 35:11
  Speaker 5: And I also use it for my business, like a
• 35:13
  Speaker 5: lot of the times for clients that I work for,
• 35:16
  Speaker 5: I'll have to go and spend five hundred dollars on
• 35:18
  Speaker 5: flights that I don't have the money for because they
• 35:20
  Speaker 5: ever paid me yet, but they're like, you need to
• 35:22
  Speaker 5: get here, you need to do the work, and then
• 35:23
  Speaker 5: you can and then your invoice and then I'll pay it.
• 35:25
  Speaker 5: So I'll put flights to Tasmania for work.
• 35:28
  Speaker 1: Last night.
• 35:28
  Speaker 5: It's like four hundred dollars, but I won't see that
• 35:30
  Speaker 5: money until probably mid April, so it's like something like
• 35:33
  Speaker 5: that's super super handy. And then when I have enough money,
• 35:36
  Speaker 5: I'll just pay the credit card off.
• 35:37
  Speaker 2: Does she have any good money habits that she's especially
• 35:40
  Speaker 2: proud of?
• 35:40
  Speaker 5: Yeah, So another good habit that I'm actually really proud
• 35:42
  Speaker 5: of is the fact that I allocate for tax, and
• 35:46
  Speaker 5: I actually work based off percentages. So say, if it's
• 35:49
  Speaker 5: one thousand dollars a month, which only really happens one
• 35:52
  Speaker 5: month a year, thirty percent of whatever comes in goes
• 35:55
  Speaker 5: to personal, thirty percent goes to business, and thirty percent
• 35:57
  Speaker 5: goes to tax. And then my tax sits there and
• 35:59
  Speaker 5: to June thirty and I sit down with my account
• 36:02
  Speaker 5: and he's like, you need to pay this month money
• 36:05
  Speaker 5: for this quarter, and then it pretty much isn't really mine.
• 36:09
  Speaker 5: I kind of just allocate it there, doesn't come into
• 36:11
  Speaker 5: my account of spending or anything like that. Like at
• 36:13
  Speaker 5: the minute, there's there's thirteen grain in there, and I'm like,
• 36:15
  Speaker 5: oh sick, look at the things I can buy with
• 36:16
  Speaker 5: thirteen grand, but I can't. And then whenever I've made
• 36:20
  Speaker 5: all my actual contributions to for my baths and for
• 36:24
  Speaker 5: my tax and things like that. Then at that point
• 36:27
  Speaker 5: I'll then decide what to do with the money, and
• 36:29
  Speaker 5: depending on how much is there, I'll probably go fifty
• 36:31
  Speaker 5: percent investment and then probably fifty percent holiday cause why not.
• 36:35
  Speaker 2: And what about her worst money habit?
• 36:37
  Speaker 5: My worst money habit is probably not really that bad.
• 36:41
  Speaker 5: I just have super duba high expectations. So like my
• 36:43
  Speaker 5: worst money habit is probably spending a little bit too
• 36:48
  Speaker 5: much money on like books and like learning knowledge and
• 36:52
  Speaker 5: stuff like I can easily like I try and only
• 36:54
  Speaker 5: go once a month, but like that once a month
• 36:56
  Speaker 5: can be like two hundred bucks just but then I'll
• 36:58
  Speaker 5: read every single book. But like in the big scheme
• 37:00
  Speaker 5: of things, what do books other than the knowledge in them?
• 37:03
  Speaker 5: They just kind of sit on my shelf.
• 37:04
  Speaker 2: How would today's money diarist rate her own relationship with money.
• 37:07
  Speaker 5: If she had to give herself a grade based on
• 37:09
  Speaker 5: my expectations? If I was to force myself, I'd give
• 37:12
  Speaker 5: myself a bee only because I'm like, I know I'm
• 37:16
  Speaker 5: pretty decent at it, but I also know how much
• 37:19
  Speaker 5: better I could be. This is where the twenty one
• 37:22
  Speaker 5: and ninety percent sort it comes from, because I know
• 37:25
  Speaker 5: what I want and how to get there, and then
• 37:27
  Speaker 5: sometimes I just go out and drink a little bit
• 37:29
  Speaker 5: too much alcohol and wake up the next day and
• 37:31
  Speaker 5: I'm like, Aha, bugger, that wasn't part of the plan.
• 37:34
  Speaker 5: But then we move on and I just work extra
• 37:36
  Speaker 5: hard that week to make.
• 37:37
  Speaker 1: That money back.
• 37:41
  Speaker 2: That is all we have time for today. But before
• 37:43
  Speaker 2: we head off, let's quickly wrap the boring but important stuff.
• 37:47
  Speaker 2: The advice shed on She's on the Money is general
• 37:49
  Speaker 2: in nature and does not consider your individual circumstances. She's
• 37:52
  Speaker 2: on the Money exists purely for educational purposes and should
• 37:55
  Speaker 2: not be relied upon to make an investment or financial decision.
• 37:59
  Speaker 2: And fear not promise. Victoria to Find is an authorized
• 38:02
  Speaker 2: representative of Consultant Financial Advisors Propriety Limited ABM sixty five
• 38:07
  Speaker 2: double six three seven three double ninety five AFSL two
• 38:10
  Speaker 2: three OHO three two three. And thank you, of course
• 38:13
  Speaker 2: to Ryan John, our audio king, for whipping our wild.
• 38:15
  Speaker 1: Chat into the podcast you love.
• 38:17
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• 38:19
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• 38:22
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• 38:29
  Speaker 1: AUS.
• 38:30
  Speaker 2: We are see you next week. Guys, see you soon.