Latest / She's On The Money / Budget like a BOSS

Transcript

Budget like a BOSS · She's On The Money

• 0:09
  Speaker 1: Hello, and welcome to Chose on the Money, the podcast
• 0:12
  Speaker 1: Millennials who Want Financial Freedom.
• 0:14
  Speaker 2: My name is Georgia King.
• 0:15
  Speaker 1: I'm a copywriter and journalism student with lots left alone
• 0:19
  Speaker 1: when it comes to money. Fortunately, here to help me
• 0:21
  Speaker 1: out as always is Melbourne based financial advisor Victoria Devine.
• 0:25
  Speaker 2: Good morning, Georgia King.
• 0:26
  Speaker 1: Hello Victoria Devine. Now today on the show, we are
• 0:29
  Speaker 1: going to be talking all things budgeting and cash flow
• 0:32
  Speaker 1: so we can make sure that the money coming into
• 0:33
  Speaker 1: our accounts is being allocated wisely and that our spending
• 0:36
  Speaker 1: not only aligns to our values, but that it won't
• 0:39
  Speaker 1: compromise our end goal of achieving financial freedom. We are
• 0:42
  Speaker 1: also going to be focusing on a house. Staying on
• 0:44
  Speaker 1: top of our budgeting and cash flow can help us
• 0:46
  Speaker 1: stay out or get out of debt, which we know,
• 0:48
  Speaker 1: given today's climate, is something we are all really wanting
• 0:51
  Speaker 1: some guidance on. But before we get into the nitty gritty, Victoria,
• 0:55
  Speaker 1: let's start off the way we always do, even though
• 0:57
  Speaker 1: things are a little different and we're chatting to each
• 0:59
  Speaker 1: other by zoom today, Ah, tell me about your week,
• 1:04
  Speaker 1: money wins, confessions, What's been.
• 1:05
  Speaker 2: Going on all right?
• 1:06
  Speaker 3: So as you were saying last week, our money wins
• 1:09
  Speaker 3: and confessions are getting a little bit bottom of the barrel.
• 1:11
  Speaker 3: But that is okay because I bring to you one
• 1:14
  Speaker 3: of the lowest money wins ever. This week, I found
• 1:18
  Speaker 3: in my cupboard in my kitchen an ancient pancake maker, and.
• 1:23
  Speaker 2: I have started to make use of it.
• 1:25
  Speaker 3: The reason I think that this is an absolute money
• 1:28
  Speaker 3: win for me is that pancake mix really cheap. I mean,
• 1:31
  Speaker 3: I've got some fancy gluten free buckwheat flour thingy thing.
• 1:35
  Speaker 3: I don't know what you would call it. It's delicious, though,
• 1:38
  Speaker 3: and it is much cheaper than having very fancy breakfast.
• 1:41
  Speaker 3: But I feel like I'm having a fancy breakfast at
• 1:44
  Speaker 3: home because I'm putting like frozen berries and stuff that
• 1:47
  Speaker 3: is really fun into my pancake mix before I make it.
• 1:50
  Speaker 3: So money win for me is cheap breakfast at home
• 1:53
  Speaker 3: that feel fancy, especially on the weekend. Well you know,
• 1:56
  Speaker 3: we're not actually legally allowed to go out for breakfast,
• 1:59
  Speaker 3: but also that they're so quick and easy and I
• 2:02
  Speaker 3: genuinely love them, and I feel like I've been able
• 2:04
  Speaker 3: to mix it up love that. This week on the menu,
• 2:06
  Speaker 3: maybe I'm gonna put some zacchini in it and make
• 2:08
  Speaker 3: some savory pancakes.
• 2:09
  Speaker 2: Watch out.
• 2:10
  Speaker 1: I have not had pancakes for a very long time.
• 2:13
  Speaker 3: I didn't think I liked pancakes until I found the
• 2:15
  Speaker 3: maker and just thought, well, we're a nice So what
• 2:17
  Speaker 3: else have I got to do?
• 2:18
  Speaker 2: I'm going to give this a hot crack.
• 2:20
  Speaker 3: Georgia King, if you've got a better money we're or
• 2:23
  Speaker 3: confession to share with the community this week.
• 2:25
  Speaker 1: Look, I don't know if it's better, but it's a win.
• 2:28
  Speaker 1: So this week I've been making homemade peanut butter. Ooh,
• 2:32
  Speaker 1: so I've been churning through the peanut butter. I think
• 2:34
  Speaker 1: it's craft or is it bigan out? I actually think
• 2:37
  Speaker 1: it might be bigger.
• 2:38
  Speaker 2: It's bigger. It is bigger, but.
• 2:40
  Speaker 1: That delicious creamy stuff that's going to set you back
• 2:42
  Speaker 1: like six bucks, which is actually dark. That's expensive, but
• 2:45
  Speaker 1: still making your own is about two dollars because you
• 2:48
  Speaker 1: just you literally buy a packet of salted peanuts, slap
• 2:51
  Speaker 1: them in the blender for like a minute, and then
• 2:53
  Speaker 1: you've got your own peanut butter.
• 2:55
  Speaker 2: Oh yum.
• 2:56
  Speaker 3: I do like beger, but I feel like that Mava
• 2:59
  Speaker 3: is peanut butter, which which is even more expensive and
• 3:01
  Speaker 3: a little bit fancy. Is so good only because I
• 3:05
  Speaker 3: feel like it's better for me. It's probably neither are
• 3:07
  Speaker 3: probably better for me. Let's be honest, they're probably both.
• 3:10
  Speaker 2: Just as bad as each other.
• 3:12
  Speaker 3: I know it's healthy, but like in comparison, like I
• 3:14
  Speaker 3: was trying to buy the healthy version, but I feel
• 3:17
  Speaker 3: like I should just buy my bigger I love bigger.
• 3:20
  Speaker 1: Yeah, or make your own like me.
• 3:22
  Speaker 2: I don't know if I've got that skill. I'm not
• 3:23
  Speaker 2: gonna lie.
• 3:24
  Speaker 1: We could chat about peanut butter all day long, but
• 3:27
  Speaker 1: we might be boring our listeners now, So if you
• 3:29
  Speaker 1: want to move along, f you're interested in chatting about
• 3:31
  Speaker 1: the Facebook group this week?
• 3:33
  Speaker 3: Yes, absolutely, I have one from Lauren, who made a
• 3:36
  Speaker 3: very short but very sweet post that said, winning ten
• 3:39
  Speaker 3: dollars for the August edition of Vogue, love reading Vogue
• 3:43
  Speaker 3: and a free Max Factor mascara worth twenty seven dollars.
• 3:46
  Speaker 3: That's a money win in my eyes. Yeahsquit No, I
• 3:50
  Speaker 3: feel like I've been asking a lot about mascaras. I mean,
• 3:53
  Speaker 3: another Facebook group called you Beauty, and I absolutely adore it.
• 3:57
  Speaker 3: But I was reading lots about Mascara's recently because Georgia,
• 4:00
  Speaker 3: I think you know that I am an absolute tragic
• 4:02
  Speaker 3: for a set of false eye lashes, and obviously during
• 4:05
  Speaker 3: COVID that's not possible to go and get my extensions
• 4:09
  Speaker 3: put on. So I've been looking for the og Mescara
• 4:12
  Speaker 3: and a max Factor false slash effects. Mescara actually came
• 4:16
  Speaker 3: up as a suggestion, and from the look of the
• 4:18
  Speaker 3: photo it looks like that's one of the ones they recommended.
• 4:21
  Speaker 3: So to me, that looks like a money win.
• 4:23
  Speaker 2: That's FESTIFD exact.
• 4:24
  Speaker 1: And also awesome that she's supporting magazines who are obviously
• 4:27
  Speaker 1: going through a really tough time right now. Yeah, I'm
• 4:30
  Speaker 1: on board for that for sure.
• 4:31
  Speaker 2: One hundred percent. Georgia. Do you have a post that
• 4:35
  Speaker 2: stood out to you this week?
• 4:36
  Speaker 1: Absolutely?
• 4:37
  Speaker 2: I do.
• 4:37
  Speaker 1: We've had so many amazing ones lately as always, but
• 4:40
  Speaker 1: my favorite was from Kelly, who runs a group on
• 4:44
  Speaker 1: the Gold Coast called the Surf Witches. So it's a
• 4:46
  Speaker 1: girls group on the Gold Coast. They had their surf
• 4:49
  Speaker 1: in the morning and then they came back to one
• 4:51
  Speaker 1: of the girl's houses afterwards and how to chat about
• 4:54
  Speaker 1: this ses on the Money podcast and about investing Q. Yeah,
• 4:57
  Speaker 1: did you see this they were all talking about their
• 4:59
  Speaker 1: story and the relationship.
• 5:01
  Speaker 2: No, I haven't seen it.
• 5:02
  Speaker 3: I'm gonna go look now, well after the show. Obviously
• 5:05
  Speaker 3: you might kill me if I just bail to go
• 5:07
  Speaker 3: read posts.
• 5:08
  Speaker 1: See. Yeah, So, I think that's such a beautiful idea,
• 5:11
  Speaker 1: Like in a few months time, especially in Melbourne where
• 5:13
  Speaker 1: we can't really hang out right now, but together with
• 5:15
  Speaker 1: your best friends and all chat about your money stories
• 5:17
  Speaker 1: and goals and values. I think it's an awesome thing
• 5:19
  Speaker 1: to do.
• 5:20
  Speaker 2: One hundred percent.
• 5:21
  Speaker 3: Imagine if we could have She's on the Money morning
• 5:23
  Speaker 3: teats where we all just eat really cute snacks and
• 5:25
  Speaker 3: talk about money like that's my dream.
• 5:27
  Speaker 1: I think that would be huge. And I was on
• 5:29
  Speaker 1: the post as well. She's got the most gorgeous snacks there.
• 5:32
  Speaker 3: I'm looking at the picture now because you sent it.
• 5:34
  Speaker 3: It's also beautifully laid out as well. Are those SCons
• 5:37
  Speaker 3: with them?
• 5:37
  Speaker 2: And Crane? My gosh? All right here for this, Let's
• 5:40
  Speaker 2: move on before I go and get a snack, alright you.
• 5:41
  Speaker 1: So, now it's onto the main topic of today's show.
• 5:44
  Speaker 1: Where do we start when it comes to budgeting and
• 5:46
  Speaker 1: cash flow and how can it help us with our debt?
• 5:48
  Speaker 1: Recent research from you Bank revealed a whopping eighty six
• 5:51
  Speaker 1: percent of Australians don't know how much money they're spending
• 5:54
  Speaker 1: every month, and eighty two percent don't know their mortgage
• 5:57
  Speaker 1: rade either. Now, the majority of participants in this study,
• 6:00
  Speaker 1: we also cited that the reason that they weren't across
• 6:02
  Speaker 1: their spending was that it was just too hard to calculate,
• 6:04
  Speaker 1: which I empathize with as confession, guys, I don't have
• 6:09
  Speaker 1: a budget, don't really know how much I'm spending each month,
• 6:12
  Speaker 1: even though I do co host a finance podcast.
• 6:15
  Speaker 2: Please don't fire me, Victoria, I knew this already. G'odgicking.
• 6:20
  Speaker 1: So. The research also found that fifty nine percent of
• 6:22
  Speaker 1: Australians say their current financial situation causes some stress or
• 6:26
  Speaker 1: loss of sleep, and that nearly half of millennials forty
• 6:29
  Speaker 1: four percent to be exact, constantly worry about their financial future.
• 6:33
  Speaker 1: So Victoria, to kick us off today, let's start with
• 6:36
  Speaker 1: the basics. Can you please talk us through what budgeting
• 6:39
  Speaker 1: and what cash flow are, including the differences between the two,
• 6:42
  Speaker 1: because I didn't know before we kind of started chatting
• 6:45
  Speaker 1: about this show.
• 6:45
  Speaker 3: Today, Absolutely I can, and for those so if you've
• 6:48
  Speaker 3: done an hour of power with me or someone from
• 6:50
  Speaker 3: my team.
• 6:51
  Speaker 2: You know that I am.
• 6:52
  Speaker 3: Obsessed with budgeting cash flow because they are essentially the
• 6:56
  Speaker 3: bread and butter of creating financial freedom. If we have
• 6:59
  Speaker 3: a budget and have a cash flow, we're actually able
• 7:01
  Speaker 3: to create wealth. And without having that in place, it's
• 7:05
  Speaker 3: kind of like having a plan without a map and
• 7:07
  Speaker 3: without knowing where your final destination is or where we're
• 7:10
  Speaker 3: actually heading, So you could be heading towards camera instead
• 7:13
  Speaker 3: of heading towards you know, Adelaide, where you wanted to be.
• 7:16
  Speaker 3: For me, this is the thing that I want you
• 7:18
  Speaker 3: guys to understand the most, Like, yes, investing is important,
• 7:21
  Speaker 3: Yes saving is important, but without understanding what your budget
• 7:25
  Speaker 3: is and what your cash flow looks like, you don't
• 7:28
  Speaker 3: know how much you're allocating each and every single week
• 7:31
  Speaker 3: or month towards those goals. A cash flow and a
• 7:34
  Speaker 3: budget are two different things as well, which I think
• 7:37
  Speaker 3: people get a little bit confused about.
• 7:38
  Speaker 2: So let's start with budget.
• 7:40
  Speaker 3: I've spoken about it on the pod before, but this episode,
• 7:42
  Speaker 3: I am honestly so excited to talk about budgeting because
• 7:46
  Speaker 3: budgeting is absolutely not what a lot of people think
• 7:48
  Speaker 3: it is. So often people say, oh, I'm sorry, Victoria,
• 7:51
  Speaker 3: I can't do it.
• 7:52
  Speaker 2: I'm on a budget.
• 7:53
  Speaker 3: Like they treat a budget like a restrictive thing, it
• 7:56
  Speaker 3: is not a restrictive thing at all. It's actually a
• 8:00
  Speaker 3: document that helps you understand your money, what's coming in,
• 8:04
  Speaker 3: what's going out, where it's going, how it works, what
• 8:07
  Speaker 3: you actually spend your money on, so that you have
• 8:10
  Speaker 3: a tool to identify your income and expenses.
• 8:13
  Speaker 2: It's not to.
• 8:13
  Speaker 3: Say, okay, Victoria, I've done a budget and I'm only
• 8:16
  Speaker 3: going to be spending fifty dollars on groceries moving forward,
• 8:19
  Speaker 3: like that feels restrictive. How about we actually put in
• 8:22
  Speaker 3: place a budget that's actually reflective of your spending so
• 8:26
  Speaker 3: that you can live the life you want while also
• 8:28
  Speaker 3: being really reasonable about how much money you have coming in. So, Georgia,
• 8:33
  Speaker 3: a budget is going to really help to show you
• 8:35
  Speaker 3: if you are spending more or less than you can
• 8:36
  Speaker 3: actually afford, and it can help to determine your capacity
• 8:40
  Speaker 3: to save for future goals, which obviously I am a
• 8:43
  Speaker 3: massive fan of. When you have a budget, and I'm
• 8:46
  Speaker 3: going to rant about this so much this episode, so
• 8:48
  Speaker 3: I do apologize buckling, But when you have a budget,
• 8:51
  Speaker 3: you can see where you're spending your money and create
• 8:53
  Speaker 3: goals in line with your spending and your cash flow.
• 8:56
  Speaker 3: It is so easy to get disheartened if you set
• 8:58
  Speaker 3: a goal for yourself that is actually completely unachievable. And
• 9:02
  Speaker 3: an example of this is when I hear people saying, oh,
• 9:05
  Speaker 3: my gosh, Victoria, this year, I am going to save
• 9:07
  Speaker 3: ten thousand dollars, and I say, fantastic, that's so exciting,
• 9:11
  Speaker 3: really proud of you. Do you have eight hundred and
• 9:14
  Speaker 3: thirty three dollars per month to save? They go, no, okay,
• 9:18
  Speaker 3: no problems. So how are you planning on achieving that goal?
• 9:22
  Speaker 3: If you don't have the money to actually achieve that goal,
• 9:24
  Speaker 3: They're like, oh, I'll work it out later. I've been
• 9:26
  Speaker 3: saving as much as I possibly can. Like, it is
• 9:29
  Speaker 3: good to save as much as you possibly can, but
• 9:32
  Speaker 3: if you don't have an outcome that you're working towards,
• 9:35
  Speaker 3: with a tangible plan that you've worked backwards from, you're
• 9:39
  Speaker 3: not actually going to be able to achieve that goal.
• 9:42
  Speaker 3: And what happens when we don't achieve goals We feel upset,
• 9:45
  Speaker 3: we feel flat, we feel as though we aren't achieving things,
• 9:48
  Speaker 3: and we get this mentality, which is oh, I couldn't
• 9:51
  Speaker 3: do it. It's not that you can't do it, it's
• 9:53
  Speaker 3: that the goal you set yourself was unrealistic for your
• 9:56
  Speaker 3: cash flow and your personal situation. And what we actually
• 10:00
  Speaker 3: have to do is create goals that are in line
• 10:02
  Speaker 3: with your personal situation. You can save ten thousand dollars,
• 10:06
  Speaker 3: I promise you. It just might be on a larger timeframe,
• 10:09
  Speaker 3: and we need to account for that so that we
• 10:11
  Speaker 3: feel like we are actually achieving things.
• 10:14
  Speaker 1: I was going to ask you then about how it's
• 10:16
  Speaker 1: kind of like a diet, like if it's unsustainable, then
• 10:19
  Speaker 1: you're not exactly But with it, is it worth saying.
• 10:21
  Speaker 2: That it's exactly like a budget.
• 10:23
  Speaker 3: It's exactly like saying one day you wake up and
• 10:25
  Speaker 3: you're like, I'm going vegan. Like cool, I'm really excited
• 10:28
  Speaker 3: for you. But is it sustainable to go cold turkey
• 10:31
  Speaker 3: on something? Is it sustainable to commit to a crash diet?
• 10:34
  Speaker 3: Absolutely not. There is a reason people fall off the bandwagon.
• 10:38
  Speaker 3: What we need to do is actually create goals in
• 10:40
  Speaker 3: line with your lifestyle. Create a budget that is actually
• 10:44
  Speaker 3: reflective of what you're spending. Don't judge yourself, just put
• 10:47
  Speaker 3: it all down on a piece of paper and go awesome,
• 10:49
  Speaker 3: this is what I am spending. End of story.
• 10:52
  Speaker 2: It's just what I'm spending. And it gives you then.
• 10:55
  Speaker 3: Ability to reflect and say, well, is that actually what
• 10:57
  Speaker 3: I want to spend? Like it puts the in front
• 11:00
  Speaker 3: of you so that you can take time to consider
• 11:02
  Speaker 3: each of them. Maybe you are spending two hundred dollars
• 11:05
  Speaker 3: a week on groceries, but you're actually single and live alone. Well,
• 11:10
  Speaker 3: in that case, maybe you want to be spending less,
• 11:12
  Speaker 3: so you need to have a think about it. Instead
• 11:15
  Speaker 3: of just cutting that number in half, maybe have a
• 11:18
  Speaker 3: think of the strategy behind that. Why are you spending
• 11:21
  Speaker 3: two hundred dollars a week on groceries? Is it because
• 11:23
  Speaker 3: you love really fancy food and that's aligned to your values? Well,
• 11:27
  Speaker 3: maybe we look to save in other places so you
• 11:30
  Speaker 3: can continue the things that you love. Or maybe you
• 11:33
  Speaker 3: are just being a little bit lazy. Let's be honest
• 11:35
  Speaker 3: and buying takeaway all the time and that's where your
• 11:37
  Speaker 3: cash flow is going and you don't actually want to
• 11:39
  Speaker 3: do that, So we have to make a little change.
• 11:41
  Speaker 3: But small changes and small steps are still steps.
• 11:45
  Speaker 2: In the right direction.
• 11:46
  Speaker 3: And I think that when it comes to budgeting, it's
• 11:48
  Speaker 3: just so we know where we stand.
• 11:51
  Speaker 1: I feel like we'll talk about how to actually create
• 11:53
  Speaker 1: a budget in a little while, absolutely amazing. Before we
• 11:57
  Speaker 1: get there, can you talk to me a little bit
• 11:59
  Speaker 1: about cash flow means?
• 12:01
  Speaker 3: Okay, So cash flow is essentially the next step in budgeting.
• 12:06
  Speaker 3: So if we write down how much we are spending
• 12:09
  Speaker 3: and how much we are saving, and how much we
• 12:12
  Speaker 3: have coming in and out of our account, and if
• 12:14
  Speaker 3: you guys have listened to the first episode ever of
• 12:17
  Speaker 3: the She's on the Money podcast, I talk about these
• 12:19
  Speaker 3: four figures, which is earned, spend own, and oh and
• 12:22
  Speaker 3: those are the four figures that I always, always, always
• 12:24
  Speaker 3: want you to be in control of, because if you
• 12:26
  Speaker 3: know how much you earn, you know how much you spend,
• 12:29
  Speaker 3: you're going to know if you are actually spending in
• 12:31
  Speaker 3: line with your income or if you're spending more or
• 12:33
  Speaker 3: if you're spending less, and that will tell you how
• 12:35
  Speaker 3: much power you have to save and invest and then
• 12:39
  Speaker 3: your own and your O these figures, obviously we just
• 12:42
  Speaker 3: want to keep track of. At different periods in your life,
• 12:45
  Speaker 3: you're going to owe different amounts, Like you might get
• 12:47
  Speaker 3: a mortgage, so you owe a heap. But I think
• 12:50
  Speaker 3: it's important to work out when it comes to that,
• 12:52
  Speaker 3: like is that actually productive debt or is it personal
• 12:56
  Speaker 3: debt that you need to get out of asap? So
• 12:59
  Speaker 3: for me, cash flow is how your money flows through
• 13:02
  Speaker 3: your bank accounts. So where does it come into, where
• 13:05
  Speaker 3: does it go, how does it work, and how much
• 13:08
  Speaker 3: money do you have each and every single month left
• 13:11
  Speaker 3: over to create wealth with or to save or to
• 13:14
  Speaker 3: put towards debt reduction. So this is going to be
• 13:18
  Speaker 3: your power, and this is going to be the thing
• 13:20
  Speaker 3: that tells you how you can create wealth and how
• 13:23
  Speaker 3: you can get out of debt. But if you don't
• 13:25
  Speaker 3: know your cash flow and you don't know how much
• 13:27
  Speaker 3: you have left over, it's really hard because it will
• 13:30
  Speaker 3: always feel overwhelming. Because too many times do I see
• 13:33
  Speaker 3: people who come to me and they're like, bitru out.
• 13:35
  Speaker 3: I'm trying really hard to save and I put, you know,
• 13:37
  Speaker 3: five hundred dollars every single month into my savings account.
• 13:41
  Speaker 3: But then at the end of the month or when
• 13:42
  Speaker 3: the end of the month is coming, I go back
• 13:44
  Speaker 3: into my savings and I pull some money out because
• 13:46
  Speaker 3: I've got extra expenses. Well, that's obviously not sustainable. You're
• 13:50
  Speaker 3: not actually saving five hundred dollars a month. You've allocated
• 13:54
  Speaker 3: five hundred dollars to your savings, but you actually have
• 13:57
  Speaker 3: expenses that outweigh that. So we actually need to work
• 13:59
  Speaker 3: out what is reach to save and cashlow is going
• 14:02
  Speaker 3: to tell us that.
• 14:03
  Speaker 1: And I feel like you've kind of gone over it.
• 14:05
  Speaker 1: But why is it so important that we stay on
• 14:07
  Speaker 1: top of our budget and our cash flow?
• 14:09
  Speaker 3: Because if we are all creating budgets, we are all
• 14:12
  Speaker 3: putting ourselves in a position where we are making our
• 14:15
  Speaker 3: money work for us and we can feel in control.
• 14:17
  Speaker 3: We can be on top of our money story, we
• 14:19
  Speaker 3: can be on top of what's going to happen moving forward,
• 14:22
  Speaker 3: and it will help us avoid going into bad debt,
• 14:25
  Speaker 3: or if we are already in bad debt, it will
• 14:27
  Speaker 3: help us understand our power to get out of that
• 14:30
  Speaker 3: bad debt when we can do it, how we can
• 14:32
  Speaker 3: do it, and what that actually looks like.
• 14:35
  Speaker 1: So how do we actually set up a budget and
• 14:37
  Speaker 1: a cash flow system?
• 14:39
  Speaker 3: So there are so many different ways. I obviously have
• 14:42
  Speaker 3: my own way, Georgia, and I'm pretty passionate about it
• 14:45
  Speaker 3: in the She's on the money Facebook group and I'll
• 14:47
  Speaker 3: probably link it below too. We actually have a budget
• 14:51
  Speaker 3: that you guys can use to fill in so that
• 14:53
  Speaker 3: you understand your spending. But also excitingly, obviously to plug
• 14:58
  Speaker 3: my own product to Georgia the start of octom we
• 15:00
  Speaker 3: have a.
• 15:00
  Speaker 2: Budgeting and cash flow.
• 15:02
  Speaker 3: She's on the money course coming out, which honestly, I
• 15:05
  Speaker 3: can see you dancing on the screen like you could
• 15:07
  Speaker 3: maybe vocalize this. This is a podcast, no interrupt. We've
• 15:12
  Speaker 3: got a course coming out which I'm so excited for.
• 15:15
  Speaker 3: I did two full days of filming videos for this.
• 15:18
  Speaker 3: I've tried to absolutely jam pack it full of value
• 15:22
  Speaker 3: so that when you watch it and when you go
• 15:24
  Speaker 3: through it, it's meat holding your hand throughout the entire thing.
• 15:27
  Speaker 3: To get your budget done, then get your cash flow done,
• 15:30
  Speaker 3: then go through your goals, and then set all of
• 15:32
  Speaker 3: those up so that you can achieve success. And honestly,
• 15:35
  Speaker 3: I couldn't be more excited about that. But in saying
• 15:38
  Speaker 3: that a budget is what you want to make it,
• 15:40
  Speaker 3: so it could be on the back of an envelope,
• 15:43
  Speaker 3: I really don't mind. It is whatever works for you.
• 15:45
  Speaker 3: Some people use apps, some people like to sit down
• 15:48
  Speaker 3: and write it in a notebook. Some people like to
• 15:50
  Speaker 3: use a spreadsheet. There are so many different ways, but essentially,
• 15:54
  Speaker 3: a budget is going to include a list of all
• 15:57
  Speaker 3: of your expenses broken down, all of your in come
• 16:00
  Speaker 3: broken down, and then how that weighs out at the
• 16:04
  Speaker 3: end of the year. Now I work in my budgets
• 16:07
  Speaker 3: to a final average annual goal because I feel like
• 16:11
  Speaker 3: that's more motivating knowing entirely what you can save in
• 16:14
  Speaker 3: a twelve month period, as opposed to, Oh, you can
• 16:17
  Speaker 3: save eight hundred and thirty three dollars a month, you go, okay,
• 16:20
  Speaker 3: like that's not enough to achieve my goal, Whereas if
• 16:22
  Speaker 3: I say, Georgia eight hundred and thirty three dollars a
• 16:24
  Speaker 3: month is ten thousand dollars in your savings, you are
• 16:27
  Speaker 3: more likely to commit to that when you can see
• 16:29
  Speaker 3: the bigger goal. So it creates short term motivation and
• 16:33
  Speaker 3: long term commitment for me.
• 16:34
  Speaker 1: Sorry, B so you said your course is coming out
• 16:36
  Speaker 1: in October.
• 16:37
  Speaker 2: Just to recap it is.
• 16:38
  Speaker 3: I mean, we're not meant to be plugging this, but
• 16:40
  Speaker 3: I'm actually so excited about it. I have spent honestly,
• 16:43
  Speaker 3: probably thirty hours over the last three days trying to
• 16:46
  Speaker 3: make the online core system work. I promise you it
• 16:49
  Speaker 3: is now stunning.
• 16:51
  Speaker 1: And that is what matters.
• 16:53
  Speaker 2: I'm biased, though not at all.
• 16:56
  Speaker 1: How would you say, we can use a budgeting and
• 16:58
  Speaker 1: cash flow system to help get us out of debt,
• 17:00
  Speaker 1: which we know is a huge issue right now.
• 17:02
  Speaker 3: Obviously, look it's a massive issue now, but it's been
• 17:04
  Speaker 3: a massive issue for years and years and years. And essentially,
• 17:08
  Speaker 3: if you are in debt, stop judging yourself. Like, I
• 17:10
  Speaker 3: know that that sounds really flippant, but I know that
• 17:12
  Speaker 3: debt can carry a lot of stigma, and it can
• 17:14
  Speaker 3: carry a lot of guilt, and you feel bad and
• 17:17
  Speaker 3: you maybe don't want to tell your friends or a
• 17:18
  Speaker 3: family about it.
• 17:19
  Speaker 2: You don't have to do that.
• 17:21
  Speaker 3: But the one thing I want you to do if
• 17:22
  Speaker 3: you are in debt is stop feeling bad about it, because.
• 17:25
  Speaker 2: It doesn't help you at all.
• 17:27
  Speaker 3: It does not help you in the slightest to feel
• 17:30
  Speaker 3: guilty about this. And Georgia, I work literally every week
• 17:33
  Speaker 3: with people in large amounts of debt, and we do
• 17:37
  Speaker 3: these cash flow systems and we talk about budgeting, and
• 17:39
  Speaker 3: it is honestly the same thing every single time we
• 17:43
  Speaker 3: sit down and I say why haven't you done this before?
• 17:45
  Speaker 3: Like you know, why now? And they just say, feel
• 17:47
  Speaker 3: really overwhelmed. I've never wanted to tackle it head on,
• 17:50
  Speaker 3: and now I am, and I say, okay, no problems.
• 17:53
  Speaker 3: And by the end of the session, and we have
• 17:54
  Speaker 3: a clear budget and we have a clear cash flow,
• 17:56
  Speaker 3: and we have a plan, and we can articulate okay,
• 18:00
  Speaker 3: by the end of twenty twenty one, that person is
• 18:03
  Speaker 3: going to be out of debt. She will make her
• 18:04
  Speaker 3: final payment at the start of November twenty twenty one,
• 18:07
  Speaker 3: and that will be it. That is so motivating, and
• 18:10
  Speaker 3: that clarity is going to help you immensely, both obviously
• 18:14
  Speaker 3: and getting out of debt, but also mentally, and to
• 18:16
  Speaker 3: me that is so so important. So for me, budgeting
• 18:21
  Speaker 3: in cashlow one helps you get out of debt because
• 18:23
  Speaker 3: we can work out your power and we can actually
• 18:25
  Speaker 3: go all right, cool, if you pulled the reins in
• 18:28
  Speaker 3: a little bit on this spending for the next six months,
• 18:30
  Speaker 3: will be out of debt quicker. And the same goes
• 18:33
  Speaker 3: for every type of debt, right Georgia, Like it could
• 18:35
  Speaker 3: be your mortgage and working out how to get out
• 18:39
  Speaker 3: of debt with that, because you know, obviously your mortgage
• 18:42
  Speaker 3: is often a thirty year plan, but working out what
• 18:45
  Speaker 3: your repayments look like and maybe working out how much
• 18:48
  Speaker 3: additional you can contribute to that each month, maybe wipe
• 18:51
  Speaker 3: literally years off your mortgage though that you're out of
• 18:54
  Speaker 3: debt sooner and that money can be used to create wealth.
• 18:58
  Speaker 2: And I think I said this to you.
• 18:59
  Speaker 3: Georgia when we'll playing the episode and talking about the
• 19:02
  Speaker 3: things that I really wanted to share on this EPP.
• 19:04
  Speaker 3: I really wanted to point out that if you're in
• 19:06
  Speaker 3: debt and you're paying off that debt, that is so exciting,
• 19:10
  Speaker 3: one because you're getting out of debt, but two because
• 19:13
  Speaker 3: you're creating these positive habits for yourself. You are putting
• 19:16
  Speaker 3: yourself in a position where you are proving to yourself
• 19:20
  Speaker 3: that each and every single month you can contribute a
• 19:23
  Speaker 3: certain amount to that debt and you know what, when
• 19:25
  Speaker 3: it's done, and when the debt is over, you then
• 19:28
  Speaker 3: have that amount of money to create wealth. So back
• 19:30
  Speaker 3: to our ten thousand dollar example, if you're in ten
• 19:33
  Speaker 3: thousand dollars worth of debt and you're paying it off
• 19:35
  Speaker 3: at eight hundred and thirty three dollars a month, continue
• 19:38
  Speaker 3: that the year after, and you now have ten thousand
• 19:41
  Speaker 3: dollars worth of savings or ten thousand dollars in an investment,
• 19:44
  Speaker 3: and to me, that's so exciting. So for me, look
• 19:47
  Speaker 3: at your getting out of debt process as a process
• 19:50
  Speaker 3: that you are proving to yourself that you can create wealth.
• 19:53
  Speaker 3: It's like the trial run, it's like the practice. It's saying, Okay,
• 19:56
  Speaker 3: well I did that, why can't I create wealth after this?
• 19:59
  Speaker 3: I don't have to be in debt anymore. This doesn't
• 20:01
  Speaker 3: have to be a cycle for me. And it's an
• 20:03
  Speaker 3: active choice to essentially not put your heads in the
• 20:06
  Speaker 3: sand about it and instead feel really empowered about it.
• 20:09
  Speaker 1: As you said, there's a lot of shame that comes
• 20:12
  Speaker 1: with having debt, I think, and we just need to
• 20:14
  Speaker 1: get rid of that shame so you can face it head.
• 20:16
  Speaker 2: On, right, absolutely, Georgia.
• 20:18
  Speaker 3: And there's only one thing that personal debt means, and
• 20:20
  Speaker 3: that just means that you've spent more than you've earnt.
• 20:22
  Speaker 2: That's it.
• 20:23
  Speaker 3: It doesn't make you a bad person, it doesn't make
• 20:25
  Speaker 3: you silly, it doesn't make you dumb, it doesn't mean
• 20:27
  Speaker 3: that you are less than in which I hear all
• 20:29
  Speaker 3: the time. It literally just means you have spent more
• 20:32
  Speaker 3: than you have earned. And now we just need to
• 20:35
  Speaker 3: rectify that. We need to pay back that surplus that
• 20:37
  Speaker 3: you've overspent by and then we can create wealth and
• 20:40
  Speaker 3: we can actually have a budget and cash flow system
• 20:42
  Speaker 3: that puts us in a place of power so that
• 20:45
  Speaker 3: we feel like we can achieve everything because we actually
• 20:48
  Speaker 3: are able to achieve everything we set our minds to.
• 20:51
  Speaker 1: And just because you're in twenty k of debt now,
• 20:53
  Speaker 1: it doesn't mean you will be forever. Like there's so
• 20:55
  Speaker 1: many things we can do to get you out of
• 20:57
  Speaker 1: that debt, which leads me to my next question, Victoria. Yes,
• 21:01
  Speaker 1: we know the snowball and the avalanche theories from old
• 21:05
  Speaker 1: Dave Ramsey. Yes, what other methods are there that we
• 21:08
  Speaker 1: can use to get out of debt? What little hacks?
• 21:10
  Speaker 3: So there are a fair few other little hacks. Obviously,
• 21:14
  Speaker 3: making sure that you're looking at your debt, having a
• 21:16
  Speaker 3: look at whether your interest rate is too high. If
• 21:19
  Speaker 3: you're in a massive amount of credit card debt, I
• 21:22
  Speaker 3: would genuinely be having a look at whether you need
• 21:24
  Speaker 3: to consolidate your debt into a personal loan, because it
• 21:28
  Speaker 3: could take you a really long time to get out
• 21:30
  Speaker 3: of that, And if you're going to be in debt
• 21:32
  Speaker 3: for a couple of more years, getting out of a
• 21:35
  Speaker 3: credit card debt, then I would be looking at consolidating
• 21:38
  Speaker 3: it into a personal loan, which will most likely have
• 21:41
  Speaker 3: a lower interest. Right, But that's not available for everybody
• 21:44
  Speaker 3: because some debts can't be consolidated because they just are
• 21:47
  Speaker 3: simply too much and you just need to buckle down
• 21:49
  Speaker 3: and get it done. Something that I do see a
• 21:51
  Speaker 3: lot of people doing is getting a side hustle or
• 21:54
  Speaker 3: earning a little more to supplement your primary income. It
• 21:57
  Speaker 3: could be an extra shift at work, it could be,
• 22:00
  Speaker 3: you know, an online survey that you're doing. It could
• 22:02
  Speaker 3: be you know, obviously during COVID, this isn't as good.
• 22:05
  Speaker 3: I've got clients who went and got Uber and started
• 22:08
  Speaker 3: being Uber drivers so that they could smash down their
• 22:11
  Speaker 3: debt because any additional income that you are bringing in
• 22:14
  Speaker 3: can go straight to debt because it's not your primary income,
• 22:17
  Speaker 3: which is super exciting. So if you know you're bringing
• 22:19
  Speaker 3: an extra one hundred dollars each time you do something, also,
• 22:23
  Speaker 3: that's one hundred dollars off your debt, and that's really exciting.
• 22:26
  Speaker 3: I think that spending less and making compromises in another
• 22:29
  Speaker 3: way is also a really good, but really obvious one
• 22:32
  Speaker 3: these could be temporary changes so that you can get
• 22:35
  Speaker 3: out of debt quicker. If you've got a sixty five
• 22:38
  Speaker 3: dollars a week gym membership but you're trying to get
• 22:40
  Speaker 3: out of debt, maybe you could suspend it until you're
• 22:43
  Speaker 3: out of debt so that you can really make the
• 22:45
  Speaker 3: most of your cash flow and really allocate it towards that,
• 22:48
  Speaker 3: and then once you're out of debt, go back to
• 22:50
  Speaker 3: the things that you love. I think that it's important
• 22:53
  Speaker 3: to remember that, you know, compromise doesn't have to be forever.
• 22:56
  Speaker 3: It can be for a short period of time. We
• 22:59
  Speaker 3: can compromise something for the short term, like not having
• 23:01
  Speaker 3: Netflix and Stand, so that we can allocate those funds
• 23:05
  Speaker 3: to something different. And I think that that's a really
• 23:07
  Speaker 3: good point for this point in time as well, Georgia.
• 23:10
  Speaker 3: So it's more about saying, Okay, cool, we're all going
• 23:14
  Speaker 3: through this absolute mess of COVID and we're not sure
• 23:17
  Speaker 3: what's going on with our finances. What can we compromise
• 23:21
  Speaker 3: in the short term so that we can be successful
• 23:23
  Speaker 3: in the long term and maybe breathe a little bit easier.
• 23:25
  Speaker 3: Maybe you don't need Netflix and Stand, Maybe you don't
• 23:27
  Speaker 3: need your Spotify account. Maybe you've got some subscriptions that
• 23:30
  Speaker 3: you can just spend temporarily so that you can increase
• 23:33
  Speaker 3: your cash flow during a time where money is tight,
• 23:36
  Speaker 3: and we can go back to it later. So it's
• 23:38
  Speaker 3: not saying get rid of it you don't need it,
• 23:40
  Speaker 3: saying okay, well maybe not right now. And another good
• 23:43
  Speaker 3: one is to make the most of amazing apps out there.
• 23:46
  Speaker 3: And I know that this is a sponsored episode, but
• 23:48
  Speaker 3: I kid you not when I say that my favorite
• 23:51
  Speaker 3: app at the moment is an app called Wiser. And
• 23:54
  Speaker 3: I know that not a heap of people are going
• 23:56
  Speaker 3: to have heard of this before, but I do know
• 23:58
  Speaker 3: that there are a fair few peas in our community
• 24:01
  Speaker 3: using it. And if you guys love roundup apps like
• 24:04
  Speaker 3: I obviously do, I use Rais, I also use shop back,
• 24:07
  Speaker 3: and you've heard me talk about these guys before. Wiser
• 24:11
  Speaker 3: is exactly like those. It is a roundup app that
• 24:13
  Speaker 3: takes your spare change and actually puts it towards paying
• 24:16
  Speaker 3: off your debt. Like how good is that? I can't
• 24:19
  Speaker 3: think of a better use for a roundup app for
• 24:21
  Speaker 3: people in debt, Like every single transaction that you have
• 24:25
  Speaker 3: is contributing to you paying down debt. Now, I don't
• 24:28
  Speaker 3: mean to say go and transact more so that you
• 24:29
  Speaker 3: can put more money towards your debt, But I just
• 24:31
  Speaker 3: think it's cool that your everyday expenses and your roundups
• 24:35
  Speaker 3: and buying dinner will mean that you actually save money.
• 24:39
  Speaker 3: But we're obviously going to have a plug about them later.
• 24:41
  Speaker 3: But honestly, there are apps out there. You can use
• 24:45
  Speaker 3: budgeting apps, you can use cash flow apps, and then
• 24:47
  Speaker 3: apps like Wiser. Honestly, if you start looking, you'll find
• 24:51
  Speaker 3: things that actually help you in a really constructive but
• 24:53
  Speaker 3: really motivating way.
• 24:54
  Speaker 1: Okay, well, obviously you're a fan of Wiser. But if
• 24:58
  Speaker 1: our listeners had to take it just one thing away
• 25:00
  Speaker 1: from today's show, what do you think it would be.
• 25:02
  Speaker 3: Obviously, budgeting in cash flow is really important. I want
• 25:05
  Speaker 3: every single one of you to have a budget and
• 25:07
  Speaker 3: have a cash flow plan.
• 25:09
  Speaker 2: But I think the one thing that I want.
• 25:10
  Speaker 3: People to get out of this episode is that if
• 25:13
  Speaker 3: you're in debt, stop beating yourself up about it and
• 25:16
  Speaker 3: work out what you can do about it. There are
• 25:18
  Speaker 3: so many resources and plans and budgets and apps and
• 25:23
  Speaker 3: things out there and people that actually help you and
• 25:26
  Speaker 3: that are there and that are on your team that
• 25:28
  Speaker 3: are going to get you out of this position. You
• 25:31
  Speaker 3: don't actually have to do it alone. So for me,
• 25:34
  Speaker 3: it would be one have a budget and actually take
• 25:36
  Speaker 3: charge of that. You'll feel incredibly empowered, I promise. But
• 25:39
  Speaker 3: then too, know.
• 25:40
  Speaker 2: That if you are in a situation where you are in.
• 25:43
  Speaker 3: Debt, there are people that can help you, and there
• 25:45
  Speaker 3: are people that are genuinely so excited about doing that,
• 25:48
  Speaker 3: and they're not there to judge you. They're just there
• 25:50
  Speaker 3: to get you in a better position because they get
• 25:52
  Speaker 3: a whole heap of gratification out of that.
• 25:54
  Speaker 2: I promise you've breached that.
• 26:00
  Speaker 1: She is on the Money mailbox. Do you have a
• 26:02
  Speaker 1: money problem you want help solving. Do you have a
• 26:04
  Speaker 1: money dilemma you just want to chat about? Victoria is
• 26:07
  Speaker 1: here to help. Every week we'll be playing your questions
• 26:10
  Speaker 1: to help make sense of a money mess you may
• 26:12
  Speaker 1: have found yourself in. Make a quick recording on your
• 26:14
  Speaker 1: phone and send it through to podcasts at She is
• 26:16
  Speaker 1: on the Money dot com dot au and you might
• 26:18
  Speaker 1: even find yourself on the show. But for now, here's
• 26:21
  Speaker 1: today's listener question.
• 26:23
  Speaker 4: Hello, lovely ladies, I just have a quick one for you,
• 26:27
  Speaker 4: so I think lucky enough to get a promotion at
• 26:30
  Speaker 4: work and we'll be earning twenty five thousand dollars more
• 26:33
  Speaker 4: than I was in my previous role, which is, I know,
• 26:36
  Speaker 4: pretty exciting. But I'm actually pretty conscious of not falling
• 26:41
  Speaker 4: into the habits of lifestyle creep because since listening to
• 26:45
  Speaker 4: the podcast and joining me she's on the money Facebook group,
• 26:48
  Speaker 4: I've become really conscious of my spending and I've been
• 26:51
  Speaker 4: getting my savings together and taking control of my finances.
• 26:55
  Speaker 4: So I'm just wondering if you have any i don't know,
• 26:58
  Speaker 4: budgeting tips or even words of wisdom to kind of
• 27:01
  Speaker 4: help me make the most of this extra money and
• 27:03
  Speaker 4: manage it, because I definitely don't want to be wasting it.
• 27:07
  Speaker 2: Thanks.
• 27:08
  Speaker 1: Hey, Okay, Victoria, So how does she avoid falling victim
• 27:12
  Speaker 1: to lifestyle greep?
• 27:13
  Speaker 3: I really like this question because I get so excited. Obviously,
• 27:17
  Speaker 3: that's a massive increase in her salary, Like congratulations, that's honestly,
• 27:22
  Speaker 3: it's so incredible, exactly, like actually amazing. But I feel
• 27:26
  Speaker 3: like this is such a common one and it's so
• 27:29
  Speaker 3: easy to see that twenty five thousand dollars as all right, cool,
• 27:32
  Speaker 3: I can get a new car I can do this.
• 27:34
  Speaker 3: I can do that.
• 27:35
  Speaker 2: For me.
• 27:36
  Speaker 3: The important thing is before you even get a promotion,
• 27:39
  Speaker 3: before you even increase the amount of money that you have,
• 27:42
  Speaker 3: is to have a reasonable budget and cash flow planning place.
• 27:45
  Speaker 3: And I know that I jump up and down about
• 27:47
  Speaker 3: this all the time, but that is your power. Because
• 27:49
  Speaker 3: if you've got your cash flow plan and you know
• 27:52
  Speaker 3: that your expenses are you know, maybe sixteen thousand dollars
• 27:55
  Speaker 3: a year, and in your personal spending, you're spending you know,
• 27:58
  Speaker 3: maybe like two hundred and fifty dollars away, I think
• 28:01
  Speaker 3: it's really important to then say, okay, no problems. Now
• 28:04
  Speaker 3: I have an additional twenty five thousand dollars coming in.
• 28:07
  Speaker 3: Well maybe not obviously tax, super whatever else, but let's
• 28:10
  Speaker 3: just say it's twenty five thousand coming in.
• 28:12
  Speaker 2: Awesome.
• 28:13
  Speaker 3: How am I going to allocate that to my pre
• 28:15
  Speaker 3: existing goals to turbocharge them if that makes sense. So
• 28:19
  Speaker 3: instead of you know, achieving that goal in three years,
• 28:22
  Speaker 3: maybe you'll achieve it in one because you've obviously got
• 28:24
  Speaker 3: so much more to save. So for me, it's important
• 28:28
  Speaker 3: to have a list of goals. It's important to have
• 28:30
  Speaker 3: a cash flow and budgeting system that works for you.
• 28:33
  Speaker 3: As I said, I don't care how you do it,
• 28:34
  Speaker 3: as long as you are doing it so that when
• 28:37
  Speaker 3: a new amount of money actually comes into your account,
• 28:40
  Speaker 3: you've already got goals that can be allocated too, and
• 28:42
  Speaker 3: all you do is update how much you're allocating towards
• 28:45
  Speaker 3: that goal each month, a week, or fortnite or however
• 28:47
  Speaker 3: often you're contributing.
• 28:49
  Speaker 2: So for me, my biggest tip would actually be.
• 28:53
  Speaker 3: Sit down and make a budget, make a plan, work
• 28:55
  Speaker 3: out how much you want to save, because otherwise it
• 28:57
  Speaker 3: does get wasted because it is so easy with lifestyle
• 29:00
  Speaker 3: creep to just see that money come straight in and
• 29:02
  Speaker 3: go straight back out, because often you'll have a mentality
• 29:06
  Speaker 3: of Okay, well I'm going to treat myself. I'm going
• 29:08
  Speaker 3: to you know, buy those new shoes. I'm going to
• 29:10
  Speaker 3: go out for lunch more often I can afford it.
• 29:12
  Speaker 3: I earn more money now. Like to me, that's a
• 29:14
  Speaker 3: detrimental mindset when in reality, what we want them to
• 29:18
  Speaker 3: be doing is actually allocating those funds towards goals and
• 29:22
  Speaker 3: towards creating wealth, and whether that's savings or investments, or
• 29:25
  Speaker 3: you know, maybe you've got a trip that you've been
• 29:27
  Speaker 3: planning for that. You can now save more too, so
• 29:30
  Speaker 3: that when you come home, you've got a surplus, Like,
• 29:32
  Speaker 3: to me, what can you actually contribute that to? And
• 29:36
  Speaker 3: divide that twenty five grand by twelve months, work out
• 29:39
  Speaker 3: how much that is per month so that you're not
• 29:41
  Speaker 3: missing any of it, and then make sure that amount
• 29:43
  Speaker 3: is going into an account that helps you build wealth
• 29:46
  Speaker 3: instead of losing it.
• 29:48
  Speaker 1: Do you think a financial advisor is necessary for this
• 29:51
  Speaker 1: situation or just kind of depends on how she's feeling.
• 29:54
  Speaker 2: Absolutely not.
• 29:55
  Speaker 3: I think that budgeting in cashlow is something that you
• 29:57
  Speaker 3: guys can take control of yourself. Don' need a financial
• 30:00
  Speaker 3: advisor to do that for you. Obviously, there are financial
• 30:04
  Speaker 3: advisors that will do it. Obviously I work with my
• 30:06
  Speaker 3: clients to do that, and there are money coaches out there.
• 30:09
  Speaker 3: But I genuinely feel like if you have the tools
• 30:12
  Speaker 3: in front of you and you have been given the
• 30:14
  Speaker 3: guidance to do that and Jodja, that's actually why I've
• 30:16
  Speaker 3: created the course that I've created. It's purely because you
• 30:20
  Speaker 3: can actually go and do it yourself and go through
• 30:23
  Speaker 3: the framework and go through a PDF and go through
• 30:26
  Speaker 3: you know, just different tools that you can do to
• 30:28
  Speaker 3: one work out your goals, work out your cash flow,
• 30:30
  Speaker 3: work out your savings, work out what that actually means,
• 30:33
  Speaker 3: and go from there. So for me, no, you don't
• 30:36
  Speaker 3: need a financial advisor for spending. You don't need a
• 30:39
  Speaker 3: financial advisor to tell you what your budgeting and cash
• 30:41
  Speaker 3: flow should be because you are smart, like your own
• 30:44
  Speaker 3: intelligent human being, and we can all work.
• 30:46
  Speaker 2: That out ourselves.
• 30:47
  Speaker 3: It might just be a little bit sticky at the
• 30:49
  Speaker 3: very start because it can feel overwhelming, but hopefully you
• 30:53
  Speaker 3: can sit down and go, you know what, I'm just
• 30:55
  Speaker 3: going to do it. Small steps are still steps in
• 30:57
  Speaker 3: the right direction, and I'm just going to work it
• 30:59
  Speaker 3: out trial and error at the start, I promised.
• 31:02
  Speaker 5: You Hi, I'm thirty five. I'm on a journey from
• 31:08
  Speaker 5: impulsive to informed money management, and this is my money diary.
• 31:13
  Speaker 1: As you guys would know, we've been partnering with Wiser.
• 31:16
  Speaker 1: So for today's money diary, we have someone who's used
• 31:18
  Speaker 1: the app to start their journey to becoming debt free.
• 31:21
  Speaker 1: But first let's learn a little more about what she does,
• 31:24
  Speaker 1: how much she earns, and how much she currently has
• 31:26
  Speaker 1: in her bank account.
• 31:28
  Speaker 5: Typically, I'm in sales and marketing in the specification building industry.
• 31:34
  Speaker 5: My typical income prior to being made redundant was roughly
• 31:39
  Speaker 5: ninety thousand a year, plus commission and potentially other allowances.
• 31:47
  Speaker 5: I'm pretty sure the spending account is zero.
• 31:51
  Speaker 1: So what's her story with debt?
• 31:53
  Speaker 5: It's a story that starts fifteen years ago, when I
• 31:57
  Speaker 5: was about twenty twenty one, I moved to Sydney, and
• 32:04
  Speaker 5: at that time I was trying to survive in the
• 32:08
  Speaker 5: big smoke and rent even when you're sharing in the city,
• 32:13
  Speaker 5: even fifteen years ago, was a lot of money. Unfortunately,
• 32:17
  Speaker 5: at that time, it was very easy for a young
• 32:22
  Speaker 5: person with a moderately steady income to get a credit
• 32:27
  Speaker 5: card or a personal loan, and I found myself caught
• 32:32
  Speaker 5: in the trap of having living expenses to pay, but
• 32:36
  Speaker 5: also being in my twenties and not being in a
• 32:39
  Speaker 5: position to earn a fantastic amount of money, and also
• 32:43
  Speaker 5: wanting to have a social life. When you're in your twenties,
• 32:47
  Speaker 5: you're usually not in an environment where staying home and
• 32:51
  Speaker 5: occupying yourself is appealing in comparison to going out with
• 32:57
  Speaker 5: your friends and seeing the latest movie and hitting nightclubs
• 33:01
  Speaker 5: and wearing flashy clothes. Because there's still that teenage element
• 33:04
  Speaker 5: of needing to sort of validate one status with things,
• 33:08
  Speaker 5: and when your living environment is the bare minimum one
• 33:11
  Speaker 5: can afford, it's probably not the most pleasant space for
• 33:15
  Speaker 5: your mental health. So I found personally there was a
• 33:20
  Speaker 5: bit of that fear of missing out, that wanting to
• 33:23
  Speaker 5: socialize with friends and have the latest and greatest and
• 33:25
  Speaker 5: not miss out on experiences. Anyway, that was a repeat
• 33:31
  Speaker 5: situation for me for many, many years, and I found
• 33:35
  Speaker 5: as I was becoming more valuable at the workplace and
• 33:37
  Speaker 5: earning more as I put studies on hold and moved
• 33:41
  Speaker 5: into full time work, I was still never quite able
• 33:44
  Speaker 5: to get head of the debt payments and the rent
• 33:48
  Speaker 5: payments and the living expenses in order to take down
• 33:53
  Speaker 5: my debt and add some savings. So fast forward ten
• 33:57
  Speaker 5: years ahead, and I am still in debt. I have,
• 34:00
  Speaker 5: on multiple occasions consolidated credit cards into personal loans, then
• 34:05
  Speaker 5: not close to those cards, just in case, and of
• 34:09
  Speaker 5: course just in case became somebody's twenty fifth birthday and
• 34:14
  Speaker 5: let's go out, and I'll just buy this bottle of wine,
• 34:17
  Speaker 5: and oh well, now I've started spending money on the
• 34:20
  Speaker 5: credit cards, so I'll just get this uber home and
• 34:23
  Speaker 5: suddenly you're using the card again, and it's easy to
• 34:25
  Speaker 5: continue clocking up additional debt. The most debt I was
• 34:29
  Speaker 5: in was probably still twenty thousand dollars on the car,
• 34:34
  Speaker 5: fifteen thousand in credit cards, and a consolidated loan for
• 34:38
  Speaker 5: almost the same amount.
• 34:40
  Speaker 1: And when did you decide something had to change?
• 34:42
  Speaker 5: I can't say there was just one day where I
• 34:45
  Speaker 5: changed my mind. There was no specific moment, but the
• 34:49
  Speaker 5: constant need to prioritize debt payments and then say no
• 34:55
  Speaker 5: to friends and say no to events and stripped back
• 35:01
  Speaker 5: on grocery bills in order to pay the electricity bill
• 35:04
  Speaker 5: became something that really bothered me. I got to a
• 35:09
  Speaker 5: point where I was like, I am, I'm in my thirties.
• 35:12
  Speaker 5: Now I should not be eating baked beans because I
• 35:14
  Speaker 5: had a particularly large electricity bill.
• 35:16
  Speaker 1: So how did she use Wiser to consolidate and help
• 35:18
  Speaker 1: get on top of her debts.
• 35:20
  Speaker 5: There was a really easy online application process. It took
• 35:23
  Speaker 5: less than five minutes. I was approved within twenty four hours,
• 35:27
  Speaker 5: and the money was in my bank twenty four hours later.
• 35:30
  Speaker 5: Everything is now consolidated. I have one debt which is
• 35:33
  Speaker 5: with Wiser, and it is so much easier to manage.
• 35:36
  Speaker 5: The roundup app is fantastic. You install it on your
• 35:39
  Speaker 5: phone and over the course of a month, it tracks
• 35:43
  Speaker 5: you're spending across whichever bank accounts you nominate. I still
• 35:47
  Speaker 5: have a sizeable debt to pay, but it could, presuming
• 35:52
  Speaker 5: I'm employed again, it could be paid off by the
• 35:55
  Speaker 5: end of the year.
• 35:55
  Speaker 1: What is her big money goal?
• 35:57
  Speaker 5: The big goal is home ownership, but I want a
• 36:00
  Speaker 5: home where I can pay the mortgage but also travel
• 36:05
  Speaker 5: every year and go out and see the friends and
• 36:08
  Speaker 5: go to the theater, that sort of thing. So the
• 36:11
  Speaker 5: home ownership, but also a nice lifestyle.
• 36:14
  Speaker 1: And what's her best money habit?
• 36:16
  Speaker 2: Now it's budgeting.
• 36:17
  Speaker 5: I have a spreadsheet that I write out all incoming
• 36:19
  Speaker 5: and all outgoing expenses per month, and I follow that
• 36:23
  Speaker 5: quite religiously.
• 36:24
  Speaker 1: And what's her worst money habit?
• 36:25
  Speaker 5: There's still an element of impulse buying, particularly if I'm
• 36:29
  Speaker 5: out with friends, so the you know, the two dollar
• 36:31
  Speaker 5: budget on dinner could become very quickly become one hundred
• 36:34
  Speaker 5: dollars without me intending to.
• 36:36
  Speaker 1: And finally, what grade would you give her relationship with money?
• 36:40
  Speaker 5: Okay, so I'd say that, let's say, twelve months ago,
• 36:42
  Speaker 5: I was probably a C minus and now I'm seeing
• 36:46
  Speaker 5: myself as a B plus working towards an A.
• 36:48
  Speaker 1: Alrighty, Victoria, I kick us off. What did you think
• 36:51
  Speaker 1: of impulsive to informed? Love that name?
• 36:53
  Speaker 2: Just side note? Yeah, I feel like.
• 36:55
  Speaker 3: That had a fair bit of thought put into it
• 36:56
  Speaker 3: as well, you can tell. But I really liked her.
• 37:00
  Speaker 3: I really liked learning about it. It sounds like she's
• 37:03
  Speaker 3: feeling more empowered than ever now, but also at the
• 37:06
  Speaker 3: same time, she seems quite positive for such a negative
• 37:09
  Speaker 3: situation that she's gone through. Like she mentioned that she's
• 37:12
  Speaker 3: been made redundant and she doesn't currently have a role,
• 37:15
  Speaker 3: which must be such a significant lifestyle shift, because she
• 37:18
  Speaker 3: said that she previously, if my memory serves me correctly,
• 37:23
  Speaker 3: she was on ninety thousand dollars a year, plus comms
• 37:25
  Speaker 3: maybe plus some other stuff that she said she got.
• 37:28
  Speaker 3: And I just feel like, going from that to being
• 37:30
  Speaker 3: made redundant, if she's hopefully on like job seeker or something,
• 37:34
  Speaker 3: she's got some income coming in, but that's still not
• 37:37
  Speaker 3: heaps of money each month, and I know that lots
• 37:40
  Speaker 3: and lots of us are struggling with that. So look,
• 37:43
  Speaker 3: I get it, and I know that lots of us
• 37:45
  Speaker 3: are going through that, but I think that's where, you know,
• 37:48
  Speaker 3: we can feel a little bit grateful that we still
• 37:50
  Speaker 3: have some level of support to come in so that
• 37:53
  Speaker 3: she can, you know, continue to pay off debt and
• 37:55
  Speaker 3: continue to fund her lifestyle essentially, even if it is
• 37:59
  Speaker 3: a little bit restrict did at the moment.
• 38:01
  Speaker 1: I also liked keeping in line with today's episode that
• 38:04
  Speaker 1: she's got a budget going, so she's on top of
• 38:07
  Speaker 1: it in that aspect, right.
• 38:09
  Speaker 3: Yeah, absolutely, And I feel like that's the key to
• 38:12
  Speaker 3: success here, Like, yes, there are so many different things
• 38:15
  Speaker 3: that we can do to get ourselves out of debt,
• 38:17
  Speaker 3: but the one thing that is going to help you
• 38:19
  Speaker 3: here is having a budget and understanding your income and
• 38:22
  Speaker 3: your expenses, like what's coming in and what's going out.
• 38:26
  Speaker 3: Because when you put a budget together, understanding all your
• 38:29
  Speaker 3: regular repayments, let's you know, one how much you can
• 38:32
  Speaker 3: save it an entire year, but two how much you
• 38:35
  Speaker 3: can attribute to debt repayments and how much you actually
• 38:38
  Speaker 3: have to be able to contribute. And I think that
• 38:41
  Speaker 3: that's really powerful and that's really important. And once you
• 38:44
  Speaker 3: understand your budget, you're able to reflect on that a
• 38:46
  Speaker 3: little bit more holistically and understand where you maybe need
• 38:50
  Speaker 3: to make some change in Georgia. I know that you
• 38:52
  Speaker 3: and I were like nodding along when she said, yeah,
• 38:55
  Speaker 3: and I have Fomo and I still have Fomo. It's
• 38:57
  Speaker 3: something I struggle with because as much as I am
• 39:01
  Speaker 3: definitely someone who's like, no, let's budget and cash flow,
• 39:04
  Speaker 3: I don't want it to impact your lifestyle. And that's
• 39:07
  Speaker 3: why I always recommend having some money set aside that
• 39:11
  Speaker 3: you actually do have entertainment and recreation in your budget,
• 39:16
  Speaker 3: so that you know you don't completely restrict yourself and
• 39:19
  Speaker 3: go no, I can't go out, no, I can't do this,
• 39:21
  Speaker 3: so that then you blow out.
• 39:23
  Speaker 2: It's all about balance.
• 39:24
  Speaker 3: And making sure that yes, I'm paying down my debt
• 39:26
  Speaker 3: and yes I'm trying really hard to get rid of it,
• 39:29
  Speaker 3: but also we need to live life along the way
• 39:31
  Speaker 3: as well, Like I'm not naive to the fact that
• 39:34
  Speaker 3: you know, if you've got mass amounts of debt that
• 39:36
  Speaker 3: life goes on around you, and that can be really hard.
• 39:40
  Speaker 1: I think it would be a good idea for Today's
• 39:43
  Speaker 1: Money Dirist as well to go back and listen to
• 39:46
  Speaker 1: last week's episode, because we did do a deep dive
• 39:48
  Speaker 1: on Fomo while we're feeling it and how we can
• 39:50
  Speaker 1: battle it. So definitely have a listen to that one,
• 39:53
  Speaker 1: and to anyone else interested, go back and listen to
• 39:55
  Speaker 1: that one.
• 39:56
  Speaker 3: Yes, absolutely, that was actually a really popular one. I
• 39:58
  Speaker 3: got so many messages about people saying that's me. I
• 40:01
  Speaker 3: totally get that. Like that resonated so much, and I
• 40:04
  Speaker 3: love feedback like that because if you guys, yeah exactly,
• 40:07
  Speaker 3: and if you guys are listening and feeling like we're
• 40:10
  Speaker 3: talking directly to you, well, Georgia King, we are on
• 40:13
  Speaker 3: the right track.
• 40:14
  Speaker 1: Yeah. I also, last little point, I loved that she
• 40:17
  Speaker 1: spoke about Wiser, which again terribly convenient because they're on
• 40:20
  Speaker 1: the show today.
• 40:21
  Speaker 3: Yeah exactly, And I feel like we did line this
• 40:24
  Speaker 3: up pretty well, let's be honest. But at the end
• 40:26
  Speaker 3: of the day, like I looked into Wiser when I
• 40:29
  Speaker 3: first started speaking to them, and I'd seen them around before,
• 40:32
  Speaker 3: to be honest, I was mind blown. I just felt
• 40:35
  Speaker 3: like they've got the same heart that we do. And
• 40:37
  Speaker 3: I know that sounds really lame, but talking to them
• 40:39
  Speaker 3: and their team like they are just as passionate about
• 40:42
  Speaker 3: money and cash flow and budgeting as I am, and
• 40:45
  Speaker 3: the amount of hours honestly, I don't know if I
• 40:47
  Speaker 3: should even say this that I've wasted after hours talking
• 40:50
  Speaker 3: to their team on just Zoom because they're based in Sydney. Amazing, Like,
• 40:54
  Speaker 3: I really like them. I'm just we're actually friend just
• 40:58
  Speaker 3: as people. Yeah, totally, I feel like we're friends now,
• 41:01
  Speaker 3: so hopefully they feel the same way.
• 41:04
  Speaker 1: I'm sure the people at Wiser love you too, Victoria.
• 41:08
  Speaker 1: Was there anything else you wanted to add about today's
• 41:10
  Speaker 1: money Diarist?
• 41:11
  Speaker 3: I don't think so, to be honest, I was just
• 41:13
  Speaker 3: really impressed with her ability to reflect on her journey
• 41:16
  Speaker 3: where it came from. And I think that she's clearly
• 41:18
  Speaker 3: got a deep understanding of her money story, which you
• 41:21
  Speaker 3: guys know, I think is really really important. I loved
• 41:24
  Speaker 3: that she was budgeting and then that she was really
• 41:26
  Speaker 3: aware of FOMO and that's still being a sticking point
• 41:29
  Speaker 3: for her. But I think that she should absolutely give
• 41:31
  Speaker 3: herself a massive pat on the back because she's doing amazingly.
• 41:35
  Speaker 3: And I just think that there are so many people
• 41:37
  Speaker 3: in similar situations to her that hopefully will be inspired
• 41:41
  Speaker 3: by this story to get out of debt and to
• 41:43
  Speaker 3: you know, just kind of put your hand up and go, hey,
• 41:45
  Speaker 3: I might need a hand.
• 41:46
  Speaker 1: Great points there, Victoria, as always, but it is time
• 41:49
  Speaker 1: to now wrap the show.
• 41:51
  Speaker 3: But just before we head off, we'd like to acknowledge
• 41:53
  Speaker 3: and pay respect to Australia's Aboriginal and torrest Rate Islander people's,
• 41:57
  Speaker 3: the traditional custodians of the land, waterways and skies across Australia.
• 42:02
  Speaker 3: We thank you for sharing and caring for the land
• 42:04
  Speaker 3: on which we are able to learn. We pay our
• 42:06
  Speaker 3: respects to elders past and present and share our friendship
• 42:10
  Speaker 3: and kindness.
• 42:11
  Speaker 1: Now let's quickly wrap the boring but important stuff. The
• 42:14
  Speaker 1: advice shared on Cheers on the Money is general in
• 42:16
  Speaker 1: nature and does not consider your individual circumstances. Cheers on
• 42:20
  Speaker 1: the Money exists purely for educational purposes and should not
• 42:23
  Speaker 1: be relied upon to make an investment or financial decision.
• 42:26
  Speaker 1: And stress less, we promise. Victoria Devine is an authorized
• 42:30
  Speaker 1: representative of Australia Pacific Funds Management Proprietary Limited ABN three
• 42:34
  Speaker 1: four one three two four six three two five seven
• 42:37
  Speaker 1: AFSEL three three nine one five one. As always, a
• 42:40
  Speaker 1: big old shout out to Ryan John for putting together
• 42:42
  Speaker 1: today's podcast.
• 42:43
  Speaker 3: We would love it if you joined our Facebook group
• 42:46
  Speaker 3: where our community shares money tips and tricks every single
• 42:49
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• 42:52
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• 42:55
  Speaker 3: also find us on Instagram. We're at She's on the
• 42:58
  Speaker 3: Money a US, See you next week.
• 43:00
  Speaker 2: Got five
• 43:11
  Speaker 1: Mm hmm,