Latest / The Curve / RTC130: Financial planning for your move abroad.

Transcript

RTC130: Financial planning for your move abroad. · The Curve

0:00
Welcome to Raising the Curth, a podcast designed to teach you everything you need to know
0:05
to be better with your money.
0:07
And the wise words of Amy Shummer were slipping carrots into the brownie recipe.
0:11
I don't really get the saying.
0:13
It's kind of like eating vegetables that actually taste good.
0:17
You know, I'm like staring at it with you.
0:19
Are you on the script?
0:20
It's basically like saying, investing in finance can be boring but it totally doesn't
0:26
need to be.
0:27
OK, OK, so we're making it fun by putting the carrot.
0:31
OK, the vegetables are just good for you.
0:33
It's the brownie recipe.
0:34
OK, we got there, we got there.
0:36
OK, OK.
0:36
Well, you've really got a finance brain.
0:38
Yeah, one of us has to.
0:40
This is a joke.
0:41
OK, come and learn alongside me from Vick Harris, ex-fun manager.
0:45
Well, I'm going to ask all the questions that you wish you could.
0:48
And I'm going to be eating all the brownie you wish you could.
0:50
No, it's so not the joke, Vick.
0:53
Oh, OK, just come and talk and learn and laugh with us.
0:56
Because together, we really can raise the curve.
1:00
So this is something that we have had quite a few messages about in terms of,
1:05
I want to say request, like the DJ requests.
1:07
Yeah, yeah, yeah.
1:08
I'm just going to read out something that Holly sent through to us as a DM on Instagram.
1:13
OK, can you be listening to your podcast in Aussie?
1:16
Firstly, honestly, guys, actually, it's his girls.
1:19
Love the pod so much.
1:21
You're doing such an incredible job.
1:23
I'm not making this up.
1:24
Yeah, it doesn't have to say that.
1:25
I'm learning so much and already so much less stress about money.
1:30
I used to be a bit of a financial mess and podcasts like yours have truly changed my life.
1:33
Oh, it makes it.
1:34
I know we love you.
1:35
Pat ourselves on the bit.
1:37
My question is about moving to London.
1:39
I'd love to know how you decided to do it and how much money you took over there
1:43
and how you balance living in the now and trying to be fiscally responsible.
1:47
Fiscally, like I never even knew it.
1:49
That means like financially responsible.
1:51
Maybe you've already done an episode on this.
1:53
And if you could send me in the right direction that would be great.
1:55
I'm currently in a city.
1:57
I'm not loving and desperate to have a London experience.
2:01
Come on over.
2:02
But wanting to know how to do it like financially responsibly would be amazing.
2:07
Love hard.
2:08
We have honestly probably got about ten of those messages.
2:11
Yeah, maybe even so many people want to know.
2:14
And I think it's quite interesting because, well, firstly, we'll get into this in a second.
2:19
But preparing to move overseas financially is actually...
2:24
I think you learn a lot when you're on the ground.
2:26
I don't think you know a lot before you get there.
2:28
And so hopefully this episode will help anyone.
2:31
Planning on moving to London to do it a little bit more prepared from a financial perspective.
2:35
But also, I think the same rules or I guess tips and vice in this episode
2:40
apply wherever you're moving to.
2:42
Exactly.
2:43
And I think, yeah, I think there's also sometimes quite a lot of build up of like moving overseas
2:50
and then you kind of get here and you're like, not like you're unappreciative or let down.
2:55
But it's just...
2:56
I remember when I moved to Australia and I was at immigration.
3:00
And you get these little orange immigration docks you fill out.
3:03
I was like, your name, your address, what you do.
3:05
And then it was like, are you permanently immigrating to Australia?
3:08
And I was like, yes.
3:09
I checked it and like probably walked over and handed over to the immigration guys like next.
3:13
I was like, where are the loans?
3:15
I was like, this is my big move.
3:17
This is my big move overseas.
3:18
And I was probably one of a million Kiwis that was moving to Australia.
3:21
But yeah, I just think it's like sometimes moving overseas is built up a lot more than like,
3:28
what it actually is once you get here.
3:30
Once you get here, you kind of slot in.
3:32
Yes, there's a whole lot of things you have to pay for to get like set up etc.
3:34
Which we'll go through.
3:35
But like, it's exciting. It's fun. You're in a new city.
3:38
It's awesome.
3:39
I think it's like childbirth.
3:41
Not that I've been through.
3:42
I'm really waiting to hear how you compare this.
3:44
How you can talk to as many women as you want to try and prepare yourself for that event.
3:50
Everyone has such a different experience that you can't prepare in a way that will make you have the same experience as anyone else.
3:59
You're going to have such a different experience yourself.
4:01
It's exactly the same as moving overseas.
4:03
You can talk to as many people as you want.
4:05
But your experience is going to be so unique and that's what you make out of it.
4:09
I also think like to enjoy the analogy.
4:12
Yep, very good.
4:14
I also think the analogy is good in the sense that you can plan until the cows come home.
4:20
There's a lot that's out of your control.
4:22
And so if I was using an example of a really good friend of mine over here,
4:26
she was working for Meta.
4:28
She had a reasonably well-paid job.
4:30
She was enjoying it.
4:31
And then all of those tech cuts happened.
4:34
And remember, I don't know, maybe it was a year ago.
4:36
And a lot of people in the tech space lost their jobs.
4:39
Yes, post-COVID.
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They did this massive hire before COVID.
4:43
And in post-COVID, revenue and demand for their products wasn't as high.
4:46
So they laid off staff unfortunately.
4:48
Yeah. And so because she was a contractor,
4:50
she basically finished pretty immediately.
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And she worked in marketing.
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So she immediately started looking for jobs.
4:55
And it took her like five or six months to find a new one.
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And she's super talented, really smart, like an awesome person.
5:02
Like you'd be lucky to have her at your company,
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but she just couldn't find work.
5:06
I guess like in the analogy you used around having a baby
5:10
and you're planning for your birth,
5:12
there's some people that will land in two weeks.
5:14
They might get a job in a new country.
5:16
They might take them a year.
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And you just don't know.
5:20
And so I think it's like,
5:21
you almost do want to have a few backup plans.
5:23
And this is something we'll get into with the financial plan
5:26
of moving overseas.
5:27
And I think that's totally it.
5:29
It's like you need to plan for it taking you six months
5:32
or a year to find a job.
5:34
Then if you do get it in two weeks,
5:36
amazing, you can put their money into investments
5:38
or into emergency funding.
5:39
Or it's thinking,
5:40
okay, I can support myself up until say three months
5:44
without getting work.
5:45
If at that point my funds or my, you know,
5:48
my moving to insert country plan gets to five grain
5:53
or ten grain or whatever your threshold is
5:55
where it starts to make you nervous.
5:57
Maybe it's at that point you're like,
5:58
okay, I haven't got a job in my industry.
6:00
I'll do some temp work just to kind of like keep myself at bay.
6:04
There's many different ways that you can go about it.
6:06
But I think it's just having those conversations
6:08
with yourself before you move.
6:10
So that you're prepared for worst case scenario.
6:13
So if it does happen, it's not too scary.
6:16
When we decided to come over here,
6:18
maybe it's worth us just giving some context
6:21
because I came over for two summers before I actually moved.
6:24
So I didn't really plan financially either of those.
6:27
I mean, let's be honest.
6:28
I didn't do a huge amount of planning any of the times.
6:31
But for you, you had a first dent in London,
6:34
which was last summer and we did five months.
6:36
And then we moved officially this year, like three or four months ago.
6:41
The first time, like in terms of the summer sabbatical last year,
6:46
what kind of financial plans did you put in place?
6:49
How are you feeling personally?
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And then like, can we compare that to the official move?
6:54
Yeah. Well, last year,
6:57
we were only supposed to be coming for like four months and end up being six.
7:02
So there was a bit of a spanner in my financial plan.
7:05
Plus, I was still paying a mortgage in New Zealand
7:07
because we're only going a couple of months.
7:08
There was no point in renting out my house.
7:10
And then that couple of months turned into six.
7:12
So it was like, that was one of the reasons I had to go home.
7:14
I was like, I cannot pay for London rent
7:16
and a mortgage in New Zealand any longer.
7:18
And I remember you being like,
7:19
but we've got all these opportunities.
7:20
I said, I'm sorry babe, I'm bleeding.
7:22
I am bleeding.
7:23
I remember you saying.
7:24
I'm bleeding money.
7:25
And yes, I had to dip into my investments.
7:27
Like it was, it was a whole thing.
7:29
And I think in reflection, it's like, I don't know.
7:32
It's hard to say because I'm more of a planner than you.
7:36
And there was opportunities that we had to stay for.
7:40
So it's almost like you're just kind of a bit like,
7:43
I know this is going to be a short term financial stab
7:48
for a long to benefit of the curve.
7:50
Do you know what I mean?
7:51
I could have put my foot down and be like, no,
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my plan is only for four months.
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It's all I can afford financially.
7:56
But I think having investments allowed me to be like,
8:00
I know it's not the right thing to do.
8:02
But this is an incredible opportunity just to say
8:05
for another couple of months,
8:07
yes, it's going to impact me financially.
8:09
But long term, it's going to be more beneficial.
8:11
And that was my thinking.
8:12
It was so interesting to hear as well.
8:14
Because I remember, I think some of the things
8:16
happening at the time were we were invited to speak at Oxford,
8:19
which was like holy shit.
8:21
There was quite a few things like that that came up.
8:23
And I remember it being just like a total no brain.
8:26
It's like, why would we not stay, you know?
8:29
And you sort of said lightly,
8:31
but you didn't go into much detail in terms of that's,
8:34
which is so interesting to hear on hindsight.
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Because I think I now understand so much more
8:41
even just from what you've said around the hesitancy
8:45
and like dragging your feet kind of when you were like,
8:47
no, and I didn't really totally understand why.
8:50
Because I didn't have anything holding you back financially.
8:52
I didn't have a financial plan.
8:54
So I was very much through caution to the word,
8:57
whereas you had planned financially for four months.
9:00
And that would have really spun things out a lot
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in terms of what you then would have to spend.
9:06
Because not renting your house out meant you were paying double rent, right?
9:09
Yeah, I was spending a lot.
9:11
I think I've just done it like fast forward to this year.
9:13
And it's like, right, we're permanently moving.
9:15
I need someone in there that's going to fully cover my mortgage
9:17
because I don't know when I'm coming back.
9:20
And I don't want to be in the position I was in last year.
9:22
Yeah, yeah.
9:23
I think the lesson is that I'm glad I had my investments
9:27
to fall back on.
9:28
And I know that's not something that we preach,
9:31
but in that case, it was your safety net.
9:36
Yeah.
9:37
So I'm going to run through a few tips
9:40
that we wanted to relate to you guys that have helped us.
9:42
And I'll move to London and hopefully we'll help other people
9:45
because there's about 90,000 Kiwis that move to London every year.
9:50
That's like crazy.
9:51
Crack, crack, crack, crack, crack, crack.
9:53
That's crazy.
9:54
No, I think I'm also, if you think about then,
9:58
the amount of people that are moving to Australia
10:00
or if you're in other parts of the world,
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I would say there's a shitload of people,
10:04
particularly in the millennial space,
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that are like either nearing their 30s,
10:09
sailing to be like, I'm not ready to settle and put roots down.
10:12
I want to go live somewhere else.
10:14
And I think that's really exciting.
10:15
There's been mass exodus.
10:17
There's been mass exodus.
10:19
Wow.
10:20
There's been a mass exodus from New Zealand.
10:24
And the last year, it's at a living year high
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of people living the country
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because wages are terrible.
10:32
The price of groceries is terrible.
10:34
Just the opportunities are terrible.
10:36
So New Zealand, it's what you should out.
10:39
Did you feel, I just before getting to some of these terms,
10:43
being at an age where a lot of our friends
10:46
are either having kids or getting married
10:48
or doing the classic like staying in New Zealand,
10:52
was there a part of you that thought financially
10:56
or I don't know, I guess in any capacity
10:58
where you were like, you know how you're saying,
11:00
it's not a big deal to move countries at the start of the episode.
11:03
I know, I love it.
11:04
Because I remember you were stressing balls about it.
11:07
And a lot of your friends and family
11:08
were making into a massive deal to turn.
11:10
I think that's just from a place
11:12
if they don't want you to leave.
11:13
They want you near home
11:14
and you're literally on the other side of the world.
11:16
But I think you just get comfortable
11:19
and comfort's fine.
11:21
A lot of people love that.
11:22
But I think what you gain experience-wise
11:25
and opportunity-wise for others,
11:26
and this is what movie overseas, like I definitely,
11:28
I think I could see that in the back of my mind,
11:31
but I was like, wasn't part of the plan.
11:33
You know, and it's like, yeah, I just think.
11:36
I will now in a fiction, I'm like,
11:38
oh, why didn't I come sooner?
11:39
Yeah, yeah, yeah.
11:40
Which is such a good place to be.
11:41
Yeah.
11:42
Rather than Mike, I want to go home.
11:43
So good.
11:45
Literally move the company to be a UK business
11:47
and fix like,
11:48
I want to go home.
11:49
Yeah.
11:50
Okay, so let's get started on some of these tips.
11:52
So what is your number one when moving countries
11:56
tip to prepare yourself financially?
11:59
To add some GST to your budget.
12:02
And I don't mean literal GST.
12:04
You know when someone's like, oh, she's added GST to that story.
12:07
It's like she's embellished and she's made it a bit buffed it up a bit.
12:10
That's what I mean with your budget.
12:12
I think there's always, like we're kind of talking to
12:15
there's always going to be things that you don't put in your budget
12:19
that prop up that you want to take advantage of whatever.
12:23
Like, for example, getting a flat,
12:26
you have to pay a deposit.
12:28
And when you're moving country,
12:30
there's a lot of set up costs like paying for a deposit for a flat,
12:35
setting up your phone,
12:37
setting up your internet, all of that.
12:39
And there's little fees in there that you kind of might not budget for.
12:43
So you might not know.
12:44
For example, also you are coming to a foreign country.
12:48
You might not have pay slips in that country.
12:50
You might not have income in that country yet.
12:52
So like for me, I had to pay three months upfront in terms of rent
12:56
just to get the place.
12:58
So I was like, how much is that?
13:00
That's a lot about £10,000.
13:02
Oh my God.
13:05
Had you budgeted for that?
13:07
Otherwise, I would have had to stay somewhere and get an Airbnb.
13:11
You know, I actually pay more than that.
13:13
And pay more. So it was kind of like, okay, I'll just, yeah.
13:16
I think this is why, yeah, it's also about timing.
13:19
When can you financially move?
13:21
You might want to move this year, but that's not financially viable.
13:24
So let's save up and have a plan and a budget for you to move next year.
13:30
Because otherwise, you're going to get here.
13:32
You're not going to be able to afford those things.
13:34
And you're going to end up going home.
13:36
I also think as a side note, a cheaper option is to not sign a lease.
13:40
Yes.
13:41
If you have free ends or yeah, every country has like a subletting website.
13:46
So I guess the point is, if you're signing a lease,
13:49
you might have to fork out a decent amount in advance.
13:52
If you're not, a cheaper way would be to take over someone else's room
13:56
in a sublet situation.
13:57
The best thing to do in any situation with this,
14:00
with any budget, any financial plan, is to take the most conservative
14:05
or try, try your best to do three months.
14:07
Yeah, because again, you're not in a situation where you're like,
14:10
oh shit, now I have to pay a deposit and I can't afford it.
14:12
Yeah, don't try and set a budget like to the dollar.
14:15
Yeah.
14:16
Definitely.
14:17
That's what I used to do.
14:18
Yeah.
14:19
Yes.
14:20
Oh my god, that is actually like, it's a very obvious tip.
14:22
But I actually think a lot of people like another really good thing to be aware of
14:26
is like the exchange rate moves around.
14:29
So like if you had decided, right, I need $5,000 in New Zealand dollars
14:34
to move to London, that would be 2,300 pounds now.
14:40
Whereas if you'd moved to London February last year,
14:43
that would have been 2,600 pounds.
14:45
So you've got an extra 300 pounds there, which is about $600 Kiwi.
14:49
Which is actually a lot.
14:50
Which is a lot.
14:51
But so if you'd saved up to the dollar, you'd get here and you're like,
14:54
oh shit, was that 300 pounds gone?
14:56
Yeah.
14:57
Yeah, it's just lost in the buffer buffer buffer of the exchange rate.
15:00
So yeah.
15:01
Okay tip number two, let's move on.
15:03
What would be your second tip if you're moving country financially planning?
15:07
When you get here, I would say talk to as many British people as you can.
15:10
What deals, what, you know, what are some really good platforms
15:13
that give you discounts like all that and just sign up to them all.
15:16
Our British friend was Emily.
15:18
Emily, come here.
15:20
Would you?
15:21
She's like stop giving me cameos in the podcast.
15:24
But it is true, locals know what's up.
15:27
I was sitting over here.
15:28
Emily's like, well, your rail card, what about your rail card?
15:31
I was like, what rail card?
15:32
And I was just like, wow.
15:34
It's also just really easy to forget about that kind of thing
15:37
because we use it every single day.
15:39
And then it's like, oh shit, really let these things on.
15:42
So can you explain the rail card please?
15:44
Okay, so the rail card is 30% off of off peak travel in and outside of London.
15:50
So it's basically anywhere in the UK.
15:51
And they have these deals on where it's like 16 to 20, 21 to 25, like 26 to 30.
15:58
There's basically everybody.
15:59
What about 30 to 31?
16:00
Yeah, yeah, yeah.
16:01
You're included as well, don't worry.
16:03
And so yeah, it's unless you're going in like peak traveling times,
16:07
which is in the morning when everyone else is commuting and like five o'clock,
16:11
then you've got 30% off.
16:12
You pay, I think it's like 30 pounds for a whole year or like 73 years
16:17
and you just instantly make it back.
16:18
If you go like to Brighton or up north some way,
16:21
you've like instantly made all that money back.
16:23
And what about lunches?
16:24
Oh, the Tesco meal deal.
16:27
I already just found out about the tis.
16:30
I cannot believe no one told me about the service meeting
16:33
and the three of them and the curved team had the drink,
16:36
the sandwich and the snack.
16:37
And I was like, oh, someone's taking advantage of the tisco meal deal.
16:40
It is just, yeah, it's so good.
16:42
It's it's three pound 50.
16:43
If you have a Tesco club card,
16:45
three pounds 50 for a drink, a snack of your choice,
16:49
and like a sandwich or a pasta or a wrap.
16:52
She doesn't work for Tisco.
16:53
I know, yeah.
16:54
She's making me very hungry as well.
16:56
Yeah.
16:57
What other hot tips have we got to share?
16:58
I think class pass is something that I've definitely got on to.
17:01
I used it a bit in New Zealand and it is a global thing.
17:04
But here it was just like the exorbitant, exorbitant.
17:08
Oh my gosh.
17:09
Really strong thing to say.
17:10
Exorbitant price of like workout classes like Pilates, etc.
17:14
It's like 30 pounds for Pilates over here,
17:16
which is 16 New Zealanders.
17:17
It's honestly like outrageous.
17:19
Like a mazo just trying to sneak in.
17:22
I imagine.
17:23
Or is it a prize maze when they're in the park
17:25
trying to like copy the class?
17:27
Yeah, yeah, yeah, yeah.
17:28
And he's like, I can see you.
17:29
We're dancing.
17:30
Anyway, yeah.
17:32
If you don't use class pass,
17:33
you're honestly paying an arm and a leg
17:35
for Pilates or formal classes,
17:38
which then there's no point if you're paying an arm and a leg.
17:40
Do you guys also use meal deal services in your houses for like...
17:44
Oh, yes.
17:45
Oh, gasto.
17:47
Honestly, it is 30 pounds for five meals.
17:51
For one person?
17:52
For one person.
17:53
That is so much cheaper than I thought it was.
17:55
It's like 40 for two people.
17:56
Like I'm thinking I might just do two
17:58
and just cook once and have it for lunch.
18:00
That's so cheap.
18:01
Yeah, take that.
18:02
Tesco meal deal.
18:03
Yeah.
18:05
So essentially what you're saying is...
18:07
Get into the locals.
18:08
I think the thing is, you're in a big city.
18:10
There are so many deals going on.
18:12
It's just you have to talk to people,
18:14
figure out, you know, like, yeah,
18:15
just do your research kind of thing.
18:17
I think also remembering that everyone has moved countries before.
18:20
Everyone knows what it's like to be new
18:22
and a bit broke and trying to figure it out.
18:25
Whether it's having to stay on someone's couch
18:27
or asking someone if they've got any hot tips
18:29
they're going to help you save money,
18:31
everyone gets it.
18:32
And I think little things just add up, you know,
18:34
saving a couple of pounds here and there.
18:37
Definitely adds up.
18:39
Even if someone, at the other day,
18:40
someone was like,
18:41
oh, do you want a coffee card?
18:42
You're for fun's free.
18:44
And I, in New Zealand, I don't know why,
18:45
but I'm like, oh, no, no.
18:46
Whereas here, it's like, yes, please.
18:48
Probably because, yeah, if I convert it,
18:50
it's like I'm paying $6.
18:52
It always loads the card.
18:53
Oh, yeah.
18:54
Okay, tip number three.
18:55
Groceries are in restaurants throughout.
18:58
Oh, yeah, yeah, yeah.
18:59
Yeah.
19:00
This is kind of flowing on
19:01
from the gusto, gusto conversation,
19:03
is actually eating out here
19:05
is way more expensive than buying groceries.
19:07
Yeah.
19:08
And that will be different,
19:09
depending on where you're moving to,
19:10
but particularly in the UK.
19:11
Yeah.
19:12
If you were to compare grocery prices to New Zealand,
19:14
it's way cheaper.
19:16
Like, I just remember having such anxiety going
19:19
to the supermarket in New Zealand.
19:21
Like, I'd buy like four things
19:23
and spend $120, you know what I mean?
19:25
I was just,
19:26
you kind of get to the point where you're like,
19:28
well, I may as well eat out.
19:29
Yeah.
19:30
Because it's just, there's,
19:31
it's much of a much less.
19:32
Whereas here, honestly,
19:34
the fruit and veg, it's so good,
19:36
it's so cheap.
19:37
I mean, I feel like people in the UK
19:39
might not think it's cheap,
19:41
but I guess we're coming from New Zealand
19:42
where it was way more expensive.
19:43
So it's all relatively different people.
19:45
Yeah.
19:46
So like here, like strawberries.
19:47
Oh, they're like,
19:48
you can have berries.
19:49
Honestly.
19:50
Yeah, my flatmate in Tonya is like,
19:52
oh, berries again.
19:53
Honestly, it's like Christmas.
19:55
We only get them in summertime in New Zealand.
19:57
So they're like a delicacy.
19:59
Whereas here, it's like,
20:00
if anyone wants to get a present,
20:02
go for raspberries.
20:03
Yeah.
20:04
Or blueberries.
20:05
She'll love you forever.
20:06
Yeah. Well, maybe I'll just smuggle them back.
20:07
Maybe I'll start a side hustle.
20:08
Smuggle back strawberries to New Zealand.
20:10
You'll get those dogs chasing at the airport.
20:12
I'd be so stressed here.
20:13
Yeah, yeah.
20:14
True.
20:15
Do you have anything to declare?
20:16
No, like a four-way service.
20:18
I just, if that was me,
20:20
something would happen
20:21
where it's like,
20:22
they're defrosted on the plane.
20:23
It's dripping out raspberry juice
20:24
on my way through.
20:25
Yeah.
20:26
I just, there's no way I'd get away with something like that.
20:28
Yuck.
20:29
What would be tip number four?
20:31
Tip number four.
20:33
I bet this is when you don't,
20:35
I actually, this is a tax, isn't it?
20:37
Just tell by your exhale.
20:39
Yeah.
20:40
Like, does anything she can to avoid this topic?
20:42
I know.
20:43
Get your own advice.
20:44
Get your own text advice.
20:45
Yeah, tax.
20:47
I think just growing up in one country,
20:50
you kind of learn tax biosmosis.
20:53
Whereas over here,
20:54
there's like, oh my goodness.
20:55
And we've started doing payroll.
20:57
We've now got staff at the curve.
20:59
We've got accountants.
21:00
They sent me this piece of paper
21:01
and I was honestly like a foreign language.
21:03
And I was like,
21:04
you're fucking working violence.
21:06
Sort it out.
21:07
Sort it out.
21:08
And just like steering
21:09
all these numbers on the screen.
21:10
And there was like a tax code
21:11
and initial insurance.
21:13
There was personal allowance.
21:15
And I was just like, oh my goodness.
21:17
And then sent it off to all the staff,
21:19
going, here's your pay slips.
21:21
No one knows what they, if they're looking at it.
21:25
They came back with all these questions.
21:26
I was like, damn it.
21:27
Sorry.
21:28
Maybe as an aside, we could do
21:29
how to read your pay.
21:30
It's a separate thing.
21:31
Because I think that would be really helpful.
21:33
Yeah.
21:34
So it was, it's just,
21:35
there is things called a tax code,
21:36
which is your tax percentage.
21:39
But it's an encode form.
21:40
It's not like, as a percentage.
21:42
And there's things like national insurance,
21:44
which is what you pay for your state pension.
21:47
But it's not called state pension.
21:48
It's called national insurance.
21:50
All these terminologies you have to,
21:52
you have to figure out.
21:53
And then you also don't pay tax
21:55
on your first 12,570 pounds.
21:59
So then again, like our first pay slips
22:03
will be like, oh my god, amazing.
22:04
We get so much money in the bank.
22:06
Well, you didn't tell me that.
22:07
Yes, sorry.
22:08
What the hell?
22:09
I know.
22:10
So that's why it's so hard budget.
22:11
Oh my god.
22:12
I can't even tell me that.
22:13
I was really excited.
22:14
Sorry.
22:15
Sorry.
22:16
Okay.
22:17
So national insurance number,
22:18
which often is a breeder to NIN.
22:20
Yeah.
22:21
You need to apply online for that.
22:22
And you need to get to the country.
22:23
Yep.
22:24
So as soon as you get to London,
22:25
if London's where you're moving, apply for that.
22:27
And wherever you're moving to, figure out
22:29
that's something you need to do.
22:30
Because you don't want to get yourself
22:31
in a situation where you get a job.
22:33
And they're like, what's your national insurance number
22:35
or whatever your problem is?
22:36
Yeah.
22:37
That doesn't you don't have one.
22:38
Because speaking from experience,
22:40
it took mine ages to come through.
22:42
In fact, was like, do you have it?
22:43
Do you have it?
22:44
No.
22:45
I don't.
22:46
Okay.
22:47
You didn't tell me.
22:48
No, I was like, so.
22:49
Oh my god.
22:50
Do you have a national insurance number?
22:51
She's like, yeah, yeah, yeah.
22:52
And I was like, wow.
22:53
I'll get mine in shit.
22:54
I was like, you're really onto it.
22:55
Three months later.
22:56
I was like, hey babe, where's that national insurance number?
22:57
Oh, what are you talking about?
22:58
I was like, oh god.
22:59
Here you go.
23:00
But again, it's just so confusing.
23:02
Because it's like there's, oh yeah,
23:04
there's just so many numbers and codes in there.
23:05
Go text code to left or apply for?
23:07
No.
23:08
No, it's just like what your,
23:09
what your text rate is due to what you earn.
23:11
And are there different brackets in the UK?
23:13
Like, how does it work?
23:14
Not short.
23:15
No.
23:16
Okay.
23:17
Well, basically, it'll be similar to New Zealand, right?
23:18
Or the more you earn, the more you pay.
23:19
Yeah.
23:20
The more you earn, the more you pay.
23:21
Yeah.
23:22
That's kind of a...
23:23
And you can't do anything about that.
23:24
Care approach.
23:25
Yeah.
23:26
I mean, you could.
23:27
Yeah.
23:28
No, you can't do anything about it.
23:29
Unfortunately, it taxes.
23:30
Tax.
23:31
And the fifth one.
23:32
Wait, quickly, on the pension front in the UK,
23:36
or if you're overseas and you have the option to not put money
23:41
into your pension...
23:42
Don't do this ever, etc.
23:44
Should you not do it?
23:45
No.
23:46
Why?
23:47
You should always put money into your pension.
23:48
Oh, I thought you were saying you shouldn't.
23:49
And I was like, what?
23:50
So I guess my thing is, a lot of people will move away from New Zealand.
23:54
And the options will be very different.
23:56
If you're in the US, you've got your full one, okay?
23:58
What are it's called?
23:59
Australia, super.
24:00
The UK, pension.
24:02
If there's an option to opt out, always opt in.
24:05
Is that Western?
24:06
Always opt in.
24:07
Always opt in.
24:08
And is it similar?
24:09
If you're from overseas, have to the same rules apply,
24:12
where you still won't be able to touch that money till you're...
24:15
Yeah, different rules like in New Zealand.
24:17
You can take it out to get your first home.
24:19
There's always little nuances like that.
24:21
Some are 60, some are 65.
24:23
When you can take it out, there's all little nuances,
24:26
but most of them are locked into your 65.
24:29
And I guess before you move, a clever thing to do would be looking
24:32
to do companies match their amount you put in your 20-year retirement fund.
24:38
And also talk to your company that's employing you.
24:41
Ask lots of questions.
24:42
Ask lots of questions.
24:43
Like, they'll probably have an HR department
24:45
that you will be the 100th person that's asked, you know,
24:48
do you have any employer schemes?
24:50
Do you contribute to my...
24:51
What does this mean?
24:52
What does this mean?
24:53
So you really go in with your eyes wide open.
24:55
Yeah.
24:56
Neither they're afraid to ask questions,
24:57
whether they've got to be different or anything.
24:59
Okay, tip number five.
25:01
Take advantage of all the fun free activities.
25:04
You're living in a new city.
25:05
There's so much, even just getting up in the morning
25:08
and just walking around,
25:10
doing that in a new place.
25:11
Seeing interesting people,
25:13
interesting parks, shops, cafes, restaurants,
25:16
like just taking it all in.
25:19
Put on some Taylor Swift.
25:20
Take a walk, get on a line bike.
25:22
All of those things.
25:23
I mean, there will be so many people that hear us mention Taylor Swift
25:26
and just never listen again.
25:27
They're like, oh my God.
25:28
So many of us.
25:29
Sorry we love to answer.
25:30
Yeah, there's markets.
25:31
There's museums.
25:32
There's so many free activities.
25:34
It's like, I think I need to take my own advice with this one a bit more.
25:38
I also think something that really helped me was to look at
25:42
what I felt comfortable spending each day.
25:44
So I guess if you're not, we were lucky
25:46
because we moved over with work, right?
25:48
So we didn't get here and have no job.
25:50
But if you have budgeted for three months of being somewhere
25:53
without having a job,
25:54
what is your daily spend?
25:55
Yeah.
25:56
That's a good point.
25:57
And I think it's, you know, things like just getting on,
25:59
if you're in London, like a double-decker bus
26:01
and having a look around.
26:02
As you say, going to a market, getting food and eating it in the park.
26:05
There's so many ways to keep your costs down, but still enjoy it.
26:08
Because I think before you start working,
26:10
you want, and hopefully by having a financial plan,
26:13
it eliminates some of that kind of stress.
26:15
Because when you're in a position where you're applying for work,
26:17
you also want to enjoy the fact you're not working.
26:19
You don't want to, because as soon as you have a job,
26:22
you automatically don't have much free time.
26:24
And so it's a really good way to explore a new place.
26:27
But just put some parameters in place for yourself
26:30
so that you don't go over that and then start to stress out,
26:33
and need to fast forward, you know, your timeline for getting a job.
26:36
And I think it's also worth noting is to, like,
26:39
still have a emergency fund.
26:41
You're a few fund.
26:42
And if you fund, because like, the last thing you want to do is get,
26:45
if you're going from New Zealand to London,
26:47
get on the other side of the world, and then for whatever reason.
26:50
You need a tooth replacement.
26:51
You need to go home.
26:52
You know, like an emergency.
26:54
Or like, for me, I always need to have enough money to get home last minute.
26:59
And I think that is like a nice, comforting thought that,
27:04
if shit hit the fan, I have enough to get home.
27:07
Do you know what I mean?
27:08
Like, I will never spend that money because I want to get home
27:12
in an emergency if I need to.
27:13
Or spend it on something else.
27:14
But it's just more like, I just having that,
27:16
like financially, financial stress wise is just like, yeah.
27:20
So always over-prepare in terms of have, like,
27:23
20% more than you think you need,
27:25
as well as an FU fund.
27:27
Your 20% extra is not your FU fund.
27:29
There are two separate amounts that you need
27:31
to be over-compensating.
27:33
Should you need to?
27:34
Yeah.
27:35
Okay.
27:36
All super helpful.
27:37
Any, you know, final wrap-up points?
27:39
I heard some the other day, actually, in our co-working space.
27:42
She was on the phone to a friend or something.
27:45
And I think they live in the UK, but then she'd moved to London or whatever.
27:48
And she was like, yeah, you don't move to London to save money.
27:53
And it was kind of like, at first I was like, what?
27:56
But then I was like, you know what?
27:58
I was kind of, that works for you.
28:00
And you're experiencing living in a big city
28:03
and all it has to offer.
28:04
I was kind of like, power to you.
28:06
You know what I mean?
28:07
As long as you've kind of got your investments,
28:09
you've got your emergency fund.
28:11
And you're spending your money paycheck to paycheck after that
28:14
because you're prioritizing current you and experiences
28:19
and opportunities.
28:21
Good on you.
28:22
You know, I think you also, you might be the person that comes here
28:26
and wants to save money and sacrifice some of those things.
28:30
And that's fine too.
28:31
It's kind of figuring out what your happy is, if that makes sense.
28:35
Yeah.
28:36
And I also think, if you are pausing investing for a couple of years
28:39
because it's just not in your immediate plan, you're kind of like,
28:42
do you know what I know I'm sacrificing quite a lot here by not investing?
28:45
But for me, this is priority.
28:48
I think that's fine if it's a conscious decision you've made.
28:50
If you're making it because you're like, well, I know I'm going to start investing again
28:53
in two years or whatever, fine.
28:55
But it's just like realizing that that's a decision you've made.
28:59
It's coming to terms with it mentally.
29:01
It's like, you know what?
29:02
I'm fine with this.
29:03
It's fine rather than being forced into a situation like that.
29:05
And being like, oh my gosh, I don't have any money in now.
29:07
I can.
29:08
Yeah.
29:09
Yeah.
29:10
I think that's just a decision.
29:11
What I would also say is asking yourself the question when you're moving overseas.
29:14
Are you moving for career, for personal, for financial?
29:17
What's the reason?
29:18
Because if you came somewhere like London and you normally work in marketing,
29:22
but you get over here and you realize that the average salary for a market
29:26
and coordinator is 30,000 pounds.
29:28
Yeah.
29:29
And you know that's just enough to live here.
29:31
You may or may not be able to afford travel.
29:34
It might be a situation where you think, you know what?
29:36
I'm moving to London for the experience.
29:38
I'm going to move into an industry that pays me better for these two years
29:41
so that I can live the kind of life I want.
29:43
Realizing it's not a step forward in the career I want to be doing.
29:46
You know, I think there's like, there's lots of decisions that you can make
29:49
based on the kind of experience you want overseas.
29:52
Yeah.
29:53
And then look for work that will support whatever that decision or plan is.
29:58
Because yeah, like for you, it might be like, I wouldn't want to move overseas
30:02
if it means sacrificing doing what I love.
30:04
Even if it pays me shut, I want to stay doing that.
30:06
But you might not feel like that.
30:08
You might be like, I just want to move overseas and actually save a shirtload of money.
30:11
So I'm going to move into finance or I'm going to move into this.
30:14
You know, it's like there's so many decisions and options to make.
30:17
And also, I think my final thing would be like, I understand the idea of not wanting to go
30:23
and take a bar job if that's not in your plan or work in a cafe or do temp work.
30:28
But if you're getting to a point where you're starting to feel stressed about your finances
30:33
and you're at that threshold where you start noticing that it affects your behaviour
30:37
and your emotions and all sorts of aspects of your life.
30:41
Find something short term that's going to bridge that gap.
30:44
Because I just think you need to know yourself and you need to know that limit.
30:49
And when you start to get into panic mode.
30:51
And if you're getting into panic mode, find a short term solution to tide you over.
30:55
Like looking after dogs.
30:57
Yes. Oh my god, this is another of Emily's suggestions.
31:00
There's an act called Rover in London where you can dogs in.
31:03
You get like 60 pounds a day.
31:04
Oh, Ragers. Also, I heard there's a random, sorry, this is kind of off track.
31:08
But there's a rabbit hotel where someone's decided to set up where there's like 35 rabbits
31:13
that can go out and you pay 35 pounds a day.
31:16
They're making bank like nearly a million a year on this rabbit hotel.
31:20
I mean, get creative.
31:22
You never know.
31:23
Oh my god, start your own rabbit hotel.
31:26
There we have it.
31:27
There we have it.
31:28
Thank you. Over and out.
31:31
Thank you so much for listening to Raising the Curve.
31:35
These conversations are designed to teach you everything that you need to know
31:39
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31:40
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31:49
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31:56
Okay. Lots of love. See you soon. Bye.
31:58
Okay, quickly, the curve was created to empower and educate you about investing,
32:07
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32:09
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32:12
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32:15
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32:19
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32:23
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32:27
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