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Stop Overthinking & Start Growing Your Money! · She's On The Money

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Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud Order
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Speaker 1: Order Kerni Whoalbury and a waddery woman. And before we
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Speaker 1: get started on She's on the Money podcast, I would
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Speaker 1: like to acknowledge the traditional custodians of the land of
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Speaker 1: which this podcast is recorded on a wondery country, acknowledging
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Speaker 1: the elders, the ancestors and the next generation coming through
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Speaker 1: as this podcast is about connecting, empowering, knowledge sharing and
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Speaker 1: the storytelling of you to make a difference for today
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Speaker 1: and lasting impact for tomorrow.
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Speaker 2: Let's get into it.
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Speaker 3: She's on the Money, She's on the Money.
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Speaker 2: Hello, and welcome to She's on the Money, the podcast
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Speaker 2: for millennials who want financial freedom. Do you ever spend
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Speaker 2: hours and hours of researching the perfect chairs and ETFs
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Speaker 2: but then freeze and never actually invest?
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Speaker 4: Yes?
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Speaker 2: I know, I certainly don't. But have you gone down
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Speaker 2: a rabbit hole of comparing all your insurance options to
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Speaker 2: get a better deal? Just be overwhelmed and stick with
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Speaker 2: what you've got? That actually I can relate to. But
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Speaker 2: what about when you spend so much time stressing over
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Speaker 2: all the little details of your trip away that you
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Speaker 2: kick yourself because the price goes up because you've waited
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Speaker 2: too long. If you answer yes to any of those questions,
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Speaker 2: then it's likely that you've fallen victim to analysis paralysis,
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Speaker 2: a phenomenon that's holding you back from moving forward and
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Speaker 2: can even be costing you money. Oh my goodness, this
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Speaker 2: is so relatable. Beads on her favorite topics. I'm begsited
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Speaker 2: and joining me today for what I know is going
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Speaker 2: to be a very empowering chat. Is the person you
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Speaker 2: want on your team when it comes to all things
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Speaker 2: finance and behavioral psychology. Victoria Divine, Divine.
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Speaker 4: She's shaken up the intro. I'm proud of you. I
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Speaker 4: love where you're going with this absolute sleigh.
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Speaker 2: Thank you so much so, Vie. I guess like for
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Speaker 2: anyone who isn't familiar, let's start by outlining exactly what
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Speaker 2: analysis paralysis is.
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Speaker 4: It's a really nice term because it rhymes that just flows.
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Speaker 4: It makes it easy to rememberke sense. Yeah, I like it.
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Speaker 4: I also feel like we talk about it a lot
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Speaker 4: on the podcast, but we haven't done a full episode
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Speaker 4: on it, So now is it's time to shine. So
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Speaker 4: analysis paralysis is a state of overthinking or over analyzing
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Speaker 4: a situation to the point where a decision it's never made,
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Speaker 4: essentially paralyzing the decision making process. The phenomenon occurs when
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Speaker 4: you become so overwhelmed by the potential outcomes, the amount
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Speaker 4: of available information, or the fear of making the wrong choice,
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Speaker 4: that you're unable to make any decision at all. And
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Speaker 4: as I've said before, Beck, not making a decision is
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Speaker 4: actually making a decision in itself, So we really need
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Speaker 4: to address analysis paralysis and not bury our heads in
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Speaker 4: the sand. Was a study done in the US, because
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Speaker 4: that seems to be where the most studies come out
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Speaker 4: of best believe, I'm always trying to find Australian studies,
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Speaker 4: but alas, everything's bigger in Texas, as they say. But
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Speaker 4: it was known as the jam jar study, which sounds
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Speaker 4: kind of cute, where psychologists Sheena Inger and Mark Lepper
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Speaker 4: showed how too many options can overroil us. No shit, Sherlock.
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Speaker 4: But in a supermarket they set up two tables, one
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Speaker 4: with twenty four different jars of jam and one with
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Speaker 4: just six. The results about thirty shoppers picked a jar
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Speaker 4: from the limited options, while only three percent picked from
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Speaker 4: the larger variety, so shoppers, Beck were ten times more
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Speaker 4: likely to make a purchase when they were faced with
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Speaker 4: fewer options.
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Speaker 2: It's a while to think about because I feel like
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Speaker 2: when we are if I was decided business, for example,
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Speaker 2: and I wouldn't like, you know, maybe sell jams as
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Speaker 2: exactly like this experiment, I would be like, oh, I
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Speaker 2: have as many options as possible because people love different things.
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Speaker 2: But it turns out it really does.
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Speaker 4: It's so interesting, right. There's also another study that was
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Speaker 4: actually done in Australia, not so research backed, but it
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Speaker 4: was about a coke can vending machine. Right, So they
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Speaker 4: had a coke can vending machine and they put it
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Speaker 4: on a train station platform, and like, if you owned
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Speaker 4: that vending machine, Beck, you'd be pretty annoyed if you
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Speaker 4: then found out that PEPSI had put a vending machine
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Speaker 4: beside yours, wouldn't clever? You'd be like, well, clever, but
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Speaker 4: also really annoying because Node exactly, but it actually increased
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Speaker 4: sales of both. Why you might ask Beck, because while
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Speaker 4: not analysis paralysis, it's just really interesting, I think Beck,
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Speaker 4: The question for the consumer went from do I buy
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Speaker 4: a coke or not? To do I buy a coke
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Speaker 4: or do I buy a PEPSI M.
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Speaker 2: That makes so much sense.
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Speaker 4: Yeah, right, so it's interesting to talk about I guess
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Speaker 4: consumer psychology and this is what that plays in. To
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Speaker 4: give people less options and they're more likely to make
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Speaker 4: a decision, overwhelm them with too many options and they'll
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Speaker 4: just go this is all too hard. I am going home.
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Speaker 2: That's really really interesting. It does make sense. But I
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Speaker 2: want to touch on this because you have a background
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Speaker 2: in behavioral psychology.
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Speaker 4: So a little bits of a nerd you are correct.
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Speaker 2: Yeah, and so do you kind of like know why
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Speaker 2: this happened?
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Speaker 4: Yes, I do, and I feel like I've just started
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Speaker 4: explaining it before you even asked me, So good prompting, Beck.
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Speaker 4: But humans are naturally wired to avoid risk, Beck, I've
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Speaker 4: spoken about this before. Like remember, way back in the
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Speaker 4: caveman times, it was all about survival of the fittest,
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Speaker 4: So I don't really Yeah, like we were both there,
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Speaker 4: so we really don't want to take on unnecessary risk
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Speaker 4: and a lot of us still have that hardwired into us.
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Speaker 2: Right.
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Speaker 4: Behavior is rooted in evolutionary psychology. This inclination. It's linked
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Speaker 4: to our survival instincts, where avoiding potential dangers meant that
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Speaker 4: we were more likely to survive and therefore reduce, which
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Speaker 4: is obviously the most important thing in the entire world, Beck,
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Speaker 4: our reproductive abilities, especially as.
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Speaker 2: Women, exactly as women, and especially for the queer community,
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Speaker 2: It's most important thing is that you reproduce.
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Speaker 4: I have heard, Beck that you've been trying very hard
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Speaker 4: to but not being successful yet. Yeah, that's a conversation
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Speaker 4: for another day.
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Speaker 2: That's a that it's conversation for another day. I'm so
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Speaker 2: sorry to get.
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Speaker 4: I watched Mean Girls and I heard that if you
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Speaker 4: have sex, you will get pregnant and you will die.
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Speaker 4: And you've been basically risking it for the biscuit.
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Speaker 2: Yeah, I know, and nothing's happened yet. So I mean,
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Speaker 2: I guess we just gotta keep we gotta get trying, lucky.
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Speaker 4: This isn't a podcast about sex because we've known literally
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Speaker 4: nothing anyway. Segueing back to the actual conversation, Beck.
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Speaker 2: Great Calvy. So, I guess like the majority of our
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Speaker 2: listeners are, of course millennials, but high to those who
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Speaker 2: do not fit in that category as well. Research shows
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Speaker 2: us that our gen is particularly vulnerable to analysis prolysis,
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Speaker 2: And I mean, like I do have suchies.
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Speaker 4: Why I want to know your theories before I get
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Speaker 4: into it. I'm sure, of course I do. I mean
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Speaker 4: from the woman who has been trying to get pregnant
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Speaker 4: with another woman, I just feel like this is going
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Speaker 4: to be enlightening at best.
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Speaker 2: Absolutely, you can tell that I'm extremely bright, the sharpest
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Speaker 2: tool in the shed, they say. But I guess, like
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Speaker 2: for me, I'm thinking that if you were born maybe
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Speaker 2: in the older generation, you didn't have to you know,
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Speaker 2: I'm kind of like really zooming out here, but you
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Speaker 2: didn't have to pay for education. Houses were a lot cheaper,
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Speaker 2: like I don't know, millennials and younger, and I'm sure
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Speaker 2: you know this goes for everyone. There's a lot of
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Speaker 2: people that would be struggling with finances. But for us,
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Speaker 2: it kind of feels like we don't have a lot
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Speaker 2: of the flexibility. We don't have that safety blanket of
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Speaker 2: just being like I'm not gonna think about this one.
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Speaker 2: I'm just gonna go for it and see what happens.
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Speaker 2: We actually sometimes can't do that because we might literally
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Speaker 2: not survive. So I guess that's why maybe it's more
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Speaker 2: prominent in our generation. But I do want to ask you,
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Speaker 2: what is it about our generation that makes us more susceptible.
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Speaker 4: So I think you're right, Like zooming out is really
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Speaker 4: helpful if we look back historically, like even the way
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Speaker 4: that my parents made decisions, which wasn't that long ago
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Speaker 4: when they were you know, our age, making decisions about things.
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Speaker 4: If they were purchasing their first home, they weren't able
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Speaker 4: to jump online and do a heap of research and
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Speaker 4: do a market analysis. They were asking their parents and
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Speaker 4: their friends for advice. And I feel like the same
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Speaker 4: is true, Like at the moment there's a conversation online,
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Speaker 4: particularly on TikTok as you know, a victim of the algorithm,
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Speaker 4: I basically live there. Now. It's information overload and there's
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Speaker 4: so much weight that we carry on our shoulders. And
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Speaker 4: when it comes to even news, I feel like today, Beck,
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Speaker 4: you and I are so well educated, and I'm so
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Speaker 4: grateful for that privilege, but we're so well educated of
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Speaker 4: what's going on in the world that the older demographic
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Speaker 4: is actually really struggling with this because you know, if
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Speaker 4: we think about our grandparents, people in their eighties, they
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Speaker 4: are used to this amount of information overload. Like if
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Speaker 4: I look back and look at my grandparents, right, like
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Speaker 4: Mi Nan and Pop, they grew up in a world
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Speaker 4: where they were in Tasmania. They were on a tiny
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Speaker 4: island off the ghost of Australia. They were sheep farmers
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Speaker 4: and they also farmed poppies. That's what they knew. Like,
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Speaker 4: they didn't have a lot of outside influence, and when
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Speaker 4: they did it was the local paper. And what does
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Speaker 4: the local paper feature? Local news? So the worst things
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Speaker 4: that could happen to them were really based in Australia.
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Speaker 4: And even though the news stories internationally were massive and
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Speaker 4: you know, terrifying and honestly some of the things happening
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Speaker 4: were just as bad as the things that are happening today,
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Speaker 4: they went privy to them. So now that they are
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Speaker 4: being overloaded by this information, lots of them are experiencing
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Speaker 4: significant levels of distress because of this information overload. Right,
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Speaker 4: and in today's digital world that you and I have
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Speaker 4: arguably grown up in, we constantly bombarded with endless streams
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Speaker 4: of information and choice, whether that's about world news or
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Speaker 4: beck buying your first home, or which savings account is
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Speaker 4: the best savings account or you know which ETF do
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Speaker 4: I purchase? I mean, you've got analysis paralysis. Just the
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Speaker 4: other day when you were downloading chasis. You downloaded and
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Speaker 4: you're like, this is simple, and then you're like, wait,
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Speaker 4: what do I invest in? And I think that that
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Speaker 4: happens to all of us. The mental load of our
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Speaker 4: modern lifestyles. It demands we juggle numerous responsibilities and decisions,
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Speaker 4: which leads to cognitive overload. And this state of being
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Speaker 4: overwhelmed can cause decision fatigue, which is over it where
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Speaker 4: the sheer volume of decisions becomes mentally exhausting. As millennial women,
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Speaker 4: you and I, Beck, we often face high expectations for
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Speaker 4: success and fulfillment, which can then lead to heightened anxiety
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Speaker 4: over making the right choice for our future. We also
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Speaker 4: experience fomo like never before, because Beck, if my parents'
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Speaker 4: friends went out, they heard about it the next time
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Speaker 4: they caught up with their friends, and by that stage,
11:00
Speaker 4: which they're probably forgetting what had happened. If I don't
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Speaker 4: go out with my mates, I see it on Instagram,
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Speaker 4: I see what they ate ten minutes after they ate it,
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Speaker 4: or even, let's be honest, back before they even got
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Speaker 4: to try it, because they took the photo to post
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Speaker 4: before they actually dived in. But we get fomo at
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Speaker 4: a level that's never been experienced before. And we are
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Speaker 4: consistently worried about making the wrong decision, which can paralyze
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Speaker 4: us into inaction.
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Speaker 2: That actually makes a lot of sense. So V, how
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Speaker 2: does this impact our finances?
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Speaker 1: Ah?
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Speaker 4: Significantly. Look, it might not be the biggest deal. Like
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Speaker 4: how I experienced last night, my husband and I could
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Speaker 4: not pick what we wanted to watch on Netflix. Analysis proalysis,
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Speaker 4: too many options. We ended up going with a show
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Speaker 4: that we'd already seen. But analysis paralysis in financial decision
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Speaker 4: making can actually cost you a lot of money. This
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Speaker 4: is known as opportunity cost. You need to think about
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Speaker 4: what you were actually risking by not taking any risk
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Speaker 4: at all. Let's take investing for example, Beck, because it
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Speaker 4: is my favorite topic ever. You know you want to invest,
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Speaker 4: but you're trapped in analysis paralysis. You're trying to figure
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Speaker 4: out where to put your money. You know that you
12:07
Speaker 4: want to invest, you know that you have some money
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Speaker 4: to invest. Maybe you've already picked a platform. This is
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Speaker 4: literally you Beck in a nutshell, but you're stuck comparing
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Speaker 4: the different fees of maybe the different platforms if you
12:20
Speaker 4: haven't picked one yet. Meanwhile, the clock is ticking and
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Speaker 4: then suddenly it's six months later and you still haven't started.
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Speaker 4: Suddenly it's three years later and you haven't invested a dollar.
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Speaker 4: Every moment of indecision means that you're missing out on
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Speaker 4: potential money in your pocket, as your investment could have
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Speaker 4: been compounding over this time. And we know on average,
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Speaker 4: money compounds every seven years. So Beck, the amount of
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Speaker 4: decisions I've put off for that period of time is wild.
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Speaker 2: I know, and I know this isn't the same, but
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Speaker 2: I was just thinking, as you're saying that that, like
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Speaker 2: I really wouldn't find your phone, and I know it's
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Speaker 2: not smart. I know it's not wise because my phone works.
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Speaker 4: On my doesn't I actually need a new phone?
13:02
Speaker 5: Well?
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Speaker 4: This so this is a good example. Tell me more so.
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Speaker 2: Last week the Google Pixel eight pro was on special.
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Speaker 2: It was like seven hundred dollars cheaper than it usually is.
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Speaker 4: I forgot that you were a non iPhone girly.
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Speaker 2: I'm not an iPhone girly. I do love my Google Pixels.
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Speaker 2: And then I was like, oh, sick, Like it's a
13:17
Speaker 2: thousand bucks. Let me just think about it for like
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Speaker 2: a few days. That's so much money back, it's so
13:21
Speaker 2: much money. It's so much money. But I was like, oh,
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Speaker 2: it's so much cheaper than usual. I might, yeah, I'll
13:26
Speaker 2: probably buy it, but let me just like sit on
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Speaker 2: it and get my finances in order. And then I
13:31
Speaker 2: went to buy it and it was just as special
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Speaker 2: for a week and it's gone back to regular price.
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Speaker 4: And so so I used to This is a side
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Speaker 4: conversation if something was discounted and the discount was motivating
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Speaker 4: you to purchase it, beck huh, and then it isn't
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Speaker 4: discounted anymore, and you somehow don't need the item. Did
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Speaker 4: you really need the item to begin with?
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Speaker 2: Well, that's you're so right, Victoria.
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Speaker 4: You're like, that's not what this episode is about, Victoria Devine.
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Speaker 2: No, that's true. Well I'm gonna buy it any way.
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Speaker 2: That's the problem.
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Speaker 4: So you did need the item?
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Speaker 2: I did?
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Speaker 1: I did?
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Speaker 4: Okay for me?
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Speaker 2: So anyway, that's my story on analysis paralysis. Let me
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Speaker 2: hear what you've got if you have anything.
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Speaker 4: I feel like I get analysis paralysis over so much
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Speaker 4: like even analysis paralysis. This is probably a bougier purchase,
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Speaker 4: but my wedding dress. So like I didn't want to
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Speaker 4: spend heaps of money on my wedding dress. Spoiler, I did,
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Speaker 4: but I didn't at the start, and I was like,
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Speaker 4: you know what I'll do, Like I'll buy a second
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Speaker 4: hand dress off Still White, because you know, wedding dresses
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Speaker 4: are exorbitant, like they're so expensive, and it didn't make
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Speaker 4: any sense to me. Anyway, went back and forth and
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Speaker 4: back and forth, and I ended up buying a dress
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Speaker 4: off Still White, so a secondhand wedding dress, and I
14:42
Speaker 4: thought this is perfect because let's be honest, the dresses
14:44
Speaker 4: would warm once. Like people aren't wearing these dresses and
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Speaker 4: then selling them because they've worn them for a year
14:49
Speaker 4: and they're over it and it's out of they're wardrobe.
14:50
Speaker 4: They wore it for their special day, and honestly, most
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Speaker 4: brides wear their dresses for a max of like six
14:55
Speaker 4: hours before they change. Anyway, back to the story at hand,
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Speaker 4: I bought one basically shotgunk because I started to get
15:03
Speaker 4: worried that I was going to miss out on it,
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Speaker 4: and I purchased it and then it didn't fit my
15:08
Speaker 4: body properly, and I thought, all right, well, maybe I'll
15:11
Speaker 4: go on a diet, maybe I'll do all of this
15:13
Speaker 4: other stuff to fit in the dress. Turns out that's
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Speaker 4: a terrible idea. I was like, come to my senses.
15:19
Speaker 4: I was like, why am I dieting for a wedding?
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Speaker 4: Like that is not who I am at my core,
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Speaker 4: absolutely not. I do not want this. So then I
15:28
Speaker 4: put off for ages what I would do because I
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Speaker 4: was like, I feel like I've now wasted money on
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Speaker 4: this secondhand dress. Yes, I did relist it to try
15:35
Speaker 4: and sell it, but like, what do I do now?
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Speaker 4: Beck Anyway, analysis prolysis ended with me having to spend
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Speaker 4: even more on my dress because I'd left it so late.
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Speaker 4: And it turns out that you needed to have like
15:46
Speaker 4: a long period of time for your wedding dress to
15:48
Speaker 4: be made, so it had to be on like a
15:50
Speaker 4: shorter timeframe, which is more expensive. And anyway, it was
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Speaker 4: a lot and I ended up wasting a lot of
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Speaker 4: money getting to my dream wedding dress. I don't regret
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Speaker 4: it for a second because I'm in love with that
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Speaker 4: dress and now I will not be selling it. But ah,
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Speaker 4: analysis paralysis in that circumstance cost me a lot because
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Speaker 4: I feel like I was throwing good money after bad
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Speaker 4: even though it wasn't. And if I had just got
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Speaker 4: myself together and worked out what I actually wanted instead
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Speaker 4: of putting it off and putting it off, I wouldn't
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Speaker 4: have spent nearly as much as what I actually did. Yes,
16:22
Speaker 4: let's get back on track. Yes, because I feel like
16:24
Speaker 4: both of us have suffered with analysis paralysis. We now
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Speaker 4: know what it is, and I'm going to arm you
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Speaker 4: today with a toolkit full of mindset shifts and actionable
16:33
Speaker 4: tips to be able to push through that analysis paralysis
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Speaker 4: and get your decision making Mojo jojo back.
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Speaker 2: That sounds really juicy, So I's have a really quick
16:41
Speaker 2: break before we jump into that. Don't go anywhere, guys,
16:48
Speaker 2: Welcome back everyone. We are chatting about analysis paralysis. V
16:52
Speaker 2: I'm dying to know how to get myself out of
16:54
Speaker 2: the dreaded loop of indecision.
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Speaker 4: All right, beck, this is going to come as absolutely
16:58
Speaker 4: no surprise, but you all, oh no. I am a
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Speaker 4: big mindset girly, So I think we should start with
17:04
Speaker 4: three shifts in your thinking that you can make to
17:06
Speaker 4: help you get unstuck. First things first, Now, this one
17:11
Speaker 4: is going to be hard for our perfectionists out there,
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Speaker 4: But firstly, what you need to do is embrace the imperfection.
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Speaker 4: Once you realize that there is no such thing as
17:20
Speaker 4: the perfect decision. Aiming for good enough is often, honestly
17:24
Speaker 4: the best approach you've heard, the saying before Beck, done
17:28
Speaker 4: is better than perfect. There's books called done is better
17:31
Speaker 4: than perfect, like they're onto something. The next thing I
17:35
Speaker 4: want you to consider, And another key mindset change is
17:38
Speaker 4: to accept uncertainty. Not all variables can be controlled, and
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Speaker 4: that's actually okay, Beck. Making a decision despite uncertainty is
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Speaker 4: how we grow and how new opportunities arise for us.
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Speaker 4: And then finally, there's never gonna be a perfect time
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Speaker 4: if you're waiting for all your worries to disappear or
17:57
Speaker 4: you to be in the absolute perfect position to do
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Speaker 4: make a move now, otherwise you're going to be waiting forever.
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Speaker 4: Beg how many times do you say to yourself, I'll
18:07
Speaker 4: just do it once I xyzm oh, my gosh, Beck,
18:11
Speaker 4: I'm going to start saving once I earn more money,
18:14
Speaker 4: like years real, that's not going to happen. Lifestyle creep's
18:17
Speaker 4: going to get you because you already have your head
18:19
Speaker 4: in the sand.
18:19
Speaker 2: That's so true. And then you think about like when
18:22
Speaker 2: you were a year younger or two years younger, and
18:25
Speaker 2: you still say the same thing. And honestly, like some
18:27
Speaker 2: people literally can't save and invest in all these other things.
18:30
Speaker 2: But I totally get that. But if you have the
18:32
Speaker 2: capacity to, you'd rather be you know, for example, I'm
18:35
Speaker 2: going to be thirty five eventually. I'd rather be thirty
18:38
Speaker 2: five with like an extra two hundred bucks of savings
18:40
Speaker 2: than yes, you know exactly so going to get there eventually,
18:45
Speaker 2: but it may as well have a little bit of
18:46
Speaker 2: a surplus, you know.
18:47
Speaker 4: And I feel like we're all guilty of it, right
18:49
Speaker 4: And my favorite time of the year to be reminded
18:51
Speaker 4: that analysis paralysis strikes us all these New years when
18:55
Speaker 4: you're like, should I set any New Years resolutions? No?
18:58
Speaker 4: Because I don't do them?
19:00
Speaker 2: Yeah, yep, yeah, yeah, it's a real reminder. It's a
19:03
Speaker 2: bit dire, Yeah, unfortunately, but yeah, I think so that
19:07
Speaker 2: makes sense. Like I feel like those mindset shifts really
19:09
Speaker 2: would feel quite empowering and freeing. But what about when
19:13
Speaker 2: it actually comes to making a decision?
19:15
Speaker 4: You know, me, I am if nothing predictable. I love
19:20
Speaker 4: a good goal setting session. We've got one coming up.
19:22
Speaker 4: Vis's on the money soon, not for the audience, but
19:25
Speaker 4: for you and I were going to sit down and
19:26
Speaker 4: set some goals, which is going to be slay, but
19:30
Speaker 4: you know that I never jump into a decision without
19:32
Speaker 4: setting some clear goals and working out what is important
19:35
Speaker 4: to me. I feel like goal setting is like breaking
19:37
Speaker 4: down the big task that feels overwhelming so that it
19:40
Speaker 4: can be like small bite sized pieces. And if they're
19:43
Speaker 4: not pieces that you feel like you can buy it
19:45
Speaker 4: because they're still too big, break them down even further,
19:47
Speaker 4: like tiny steps are still steps in the right direction,
19:51
Speaker 4: And I think that's really important to remember. The next
19:54
Speaker 4: is I really like a deadline. I work really well
19:57
Speaker 4: under pressure. In fact, if I do not have a timeline,
19:59
Speaker 4: things do happens. So give yourself a really specific time
20:02
Speaker 4: frame to decide. Like when you look at a menu
20:05
Speaker 4: and can't decide between having the parts that are or
20:07
Speaker 4: the pizza, give yourself until the weight it gets back
20:10
Speaker 4: to you and then you're forced to make a decision.
20:12
Speaker 4: I feel like that's how I always make menu decisions.
20:14
Speaker 4: Back Like I'm a really last minute I can't make
20:17
Speaker 4: a decision like a brunch on like French toast eggs,
20:20
Speaker 4: Oh my god, they've got pancakes, French toast eggs, pancakes,
20:23
Speaker 4: And then the way there comes in, I'm like, I'll
20:25
Speaker 4: just have a piece of toast. Thanks, Like, I just
20:27
Speaker 4: can't make a decision and then I default back to
20:29
Speaker 4: what I always order.
20:30
Speaker 2: It's usually the wrong life I'm not trying to.
20:32
Speaker 4: It, and then I get bomoyah. I mean, it's probably
20:36
Speaker 4: a really good place to start and practice our decision
20:38
Speaker 4: making because let's be honest, investing can be overwhelming and
20:42
Speaker 4: money decisions can be overwhelming. Like let's start small. Let's
20:46
Speaker 4: start reading the menu and have an answer for the
20:48
Speaker 4: waiter of by the time they get back. Yeah, that
20:50
Speaker 4: sounds small, but that's big for me totally.
20:53
Speaker 2: And I feel like, yeah, if you start there, like
20:54
Speaker 2: that's pretty inconsequential, Like you can't really at that too wrong.
20:57
Speaker 2: So practice, practice, practice exactly.
21:00
Speaker 4: Practice makes perfect, and setting a deadline is going to
21:02
Speaker 4: help you from overthinking and just keep things moving the way.
21:05
Speaker 4: It doesn't need to go away for another couple of
21:07
Speaker 4: minutes for you to make a decision that's going to
21:08
Speaker 4: be the same decision you were going to make at
21:10
Speaker 4: that point in time, Like just order the food, you
21:13
Speaker 4: know what I mean, I feel it's deep, it's really deep, guys.
21:18
Speaker 4: Then what I want you to do, and this is
21:20
Speaker 4: where analysis paralysis really sets in right, and that's I
21:23
Speaker 4: want you to do your research, but put a limit
21:26
Speaker 4: on it. So to really stop the information overwhelm, I
21:29
Speaker 4: need you to limit two things, so the amount of
21:31
Speaker 4: time that you're going to allow for research, and then
21:34
Speaker 4: the amount of sources you are going to use. So
21:37
Speaker 4: I like this because then it feels like a university
21:40
Speaker 4: project or like a school project. Right, like beck, you
21:43
Speaker 4: have five hundred words and you can use three references
21:46
Speaker 4: like right. I think that that means that it feels
21:49
Speaker 4: a little bit more structured. You feel like you're doing
21:51
Speaker 4: your due diligence. But getting started and actually getting some
21:55
Speaker 4: skin in the game is going to be the best research.
21:58
Speaker 4: And I think that that's what we want to get
22:00
Speaker 4: too faster. They're putting my psychology hat back on. A
22:03
Speaker 4: law in psychology known as Hicks law actually tells us
22:06
Speaker 4: the more choices we have, the longer it takes to
22:09
Speaker 4: choose due to the increased cognitive load of processing of
22:12
Speaker 4: each option. And do you know what that leads to?
22:14
Speaker 4: What not actually even making better decisions.
22:17
Speaker 2: Of course, of course, which.
22:19
Speaker 4: Is kind of hence the toast. Yeah, hence the toe
22:22
Speaker 4: I love toast.
22:24
Speaker 2: That case.
22:25
Speaker 4: Honestly, my default option at brunch, if you should care,
22:29
Speaker 4: is actually two poached eggs on buttered toast, because there's
22:32
Speaker 4: nothing worse than a cafe bringing out your eggs on
22:35
Speaker 4: toast with no butter. Like, be for real, who's ordering
22:38
Speaker 4: eggs on toast with no butter?
22:39
Speaker 1: Beck?
22:39
Speaker 2: Yeah's so true. That order will stay with me forever.
22:42
Speaker 2: Do you like them runny or hard?
22:44
Speaker 4: Just like normal poached eggs? Runny like? If they're hard, like,
22:47
Speaker 4: that's actually quite illegal. Yeah. So, ultimately you want to
22:50
Speaker 4: be informed back, but not overwhelmed, because that actually doesn't
22:53
Speaker 4: help anybody, and you don't need to know absolutely everything
22:56
Speaker 4: on the topic to make a good decision. And if
22:58
Speaker 4: you're listening to this, yes I I am, in fact
23:00
Speaker 4: talking to you the person who over analyzes absolutely everything
23:04
Speaker 4: and still goes, oh my gosh. But there's still so
23:06
Speaker 4: much to learn about investing thee You're right, there is.
23:09
Speaker 4: I'm even still learning. But that doesn't mean that you
23:12
Speaker 4: stop yourself from getting started.
23:14
Speaker 2: Exactly. You can learn on the journey. It's never too
23:16
Speaker 2: late to learn, and it's never too early to start.
23:20
Speaker 2: All right, I think that I've summarized this whole thing
23:23
Speaker 2: and we're done. But no, I'm off, Queen, thank you
23:26
Speaker 2: so much. V. I want to know what about when
23:27
Speaker 2: you're comparing differences?
23:29
Speaker 4: All right, So when I'm trying to compare difference as often,
23:33
Speaker 4: I make a spreadsheet. I'm so for those of you interested. Recently,
23:36
Speaker 4: I traveled to Europe. This is a little bit of
23:38
Speaker 4: a flex to remind you that I got to go
23:40
Speaker 4: to Europe this summer. But also I made a spreadsheet
23:43
Speaker 4: comparing the pros and cons of different travel prams for Harvey.
23:46
Speaker 4: And that's who I am at my core. I know
23:49
Speaker 4: that not everybody is like that. But what I do
23:51
Speaker 4: that you could do is I work out what's important
23:53
Speaker 4: to me and then prioritize them in order of importance.
23:57
Speaker 4: So if we were talking about investing for exams, Beck,
24:00
Speaker 4: I could sit down and go, well, what's the list,
24:02
Speaker 4: Like what's important to me? Like I'd say, Beck, you
24:05
Speaker 4: want to invest?
24:06
Speaker 2: Yeah?
24:06
Speaker 4: And you go yeah, Well what's important? Is it important
24:09
Speaker 4: for you to have ultimate control over your shares? Is
24:11
Speaker 4: it important that you have direct shares over ETFs? And
24:15
Speaker 4: you might go no, okay, is it important that you're
24:18
Speaker 4: an ethical investor? Yes? Or no? Like these are so
24:21
Speaker 4: easy to answer. We're not trying to do deep amounts
24:24
Speaker 4: of research. But then what I want to do is
24:26
Speaker 4: create a pros and cons list. It's classic, right, but
24:29
Speaker 4: it's a really effective way to visualize your options and
24:32
Speaker 4: then consider the worst case scenarios. There is a book
24:35
Speaker 4: called What is the Worst Thing That Never Happened?
24:37
Speaker 1: To You?
24:39
Speaker 2: That's powerful.
24:40
Speaker 4: It's because so often we consider the worst case scenarios
24:43
Speaker 4: and then get anxiety from these worst case scenarios, and
24:46
Speaker 4: ultimately most of these things never actually happen. Sometimes knowing
24:51
Speaker 4: the worst that can happen can actually make the decision
24:53
Speaker 4: easier as well. Like, Beck, what's the worst thing that
24:55
Speaker 4: could happen? You lose money? Okay, what's your initial investment?
25:00
Speaker 4: Like beck Leer's pick one? All right, so let's pretend
25:02
Speaker 4: it's fifty dollars. To me, fifty dollars is not a
25:04
Speaker 4: trivial amount of money. It is a significant amount. Yeah,
25:08
Speaker 4: and you would agree, I think.
25:10
Speaker 2: Oh yeah, oh yeah, for sure.
25:11
Speaker 4: So when it comes to this fifty dollars, if we
25:14
Speaker 4: invested that, Beck, and then oh my gosh, you lost
25:18
Speaker 4: it all, is that actually the worst thing to ever happen.
25:21
Speaker 2: Not to ever happen.
25:22
Speaker 4: That's true, exactly so like, let's try and contextualize this,
25:26
Speaker 4: and if putting fifty dollars into the share market and
25:29
Speaker 4: losing it is going to be the worst thing that
25:31
Speaker 4: ever happened, I think we need to strip back. I
25:34
Speaker 4: think we need to go back to our financial house
25:36
Speaker 4: and create an emergency fund and do our budget and
25:39
Speaker 4: do our cash flow. And I would say that maybe
25:41
Speaker 4: you're not ready to invest, because if losing fifty dollars
25:45
Speaker 4: is the worst ever and it's going to impact your
25:47
Speaker 4: financial life significantly, we need to reassess our goals, right.
25:51
Speaker 4: I then also always talk to independent experts, get their advice,
25:56
Speaker 4: financial advisors, mortgage brokers. They can be in value all
26:00
Speaker 4: sources of information. Literally it's their job to know everything
26:03
Speaker 4: that you don't about that topic. So take advantage of
26:06
Speaker 4: it and it might lighten your mental load. And then beck,
26:10
Speaker 4: if you're really struggling to choose, do you know what
26:11
Speaker 4: I'm going to say.
26:12
Speaker 2: I have a feeling?
26:14
Speaker 4: Is it when in doubt zoom out?
26:16
Speaker 2: Yes, ask yourself.
26:17
Speaker 4: If the small differences that you're stressing over right now
26:21
Speaker 4: actually what really matters in the long term, Like spoiler,
26:25
Speaker 4: they probably don't matter.
26:26
Speaker 2: Yeah, that's so true.
26:27
Speaker 4: And that's not to invalidate it, but ultimately, yes, is
26:31
Speaker 4: it going to change the trajectory of your entire life?
26:34
Speaker 4: Probably not if you pick the wrong ETF today. Beck,
26:38
Speaker 4: do you know what you can do? You can invest
26:40
Speaker 4: in it for a little while and then change your
26:42
Speaker 4: investment a little down the track. It's really easy. Yeah, Like,
26:46
Speaker 4: it's not the end of the world.
26:48
Speaker 2: Sure, sure, sure, Okay. So let's say hypothetically we've come
26:51
Speaker 2: to a decision. What's next.
26:53
Speaker 4: So once we've made a decision, this is the hard part.
26:57
Speaker 4: We have to take action. How many times do we
27:00
Speaker 4: say to ourselves we've made a decision and then we're like,
27:03
Speaker 4: we actually haven't made a decision because we don't want
27:05
Speaker 4: to action it. Yeah, We're like, oh yeah, no, no,
27:07
Speaker 4: I've decided I'm getting the red one.
27:08
Speaker 2: Mm hmm.
27:09
Speaker 4: Have you ordered the red one back? No? No, no?
27:12
Speaker 4: And then all right, well why don't you order it
27:14
Speaker 4: right now? And then you go, oh my god, but
27:16
Speaker 4: they've also got blue do you reckon? I should change
27:18
Speaker 4: to blue?
27:19
Speaker 1: Right?
27:20
Speaker 4: So we want to make a decision, but then we
27:22
Speaker 4: want to take action and actually trigger that. This reduces
27:26
Speaker 4: the likelihood of second guessing, Like, just get it. Done back,
27:29
Speaker 4: Just pick the red one, order the red one, because
27:31
Speaker 4: then if I bring up that there's a blue one,
27:32
Speaker 4: you're like, ah Vi, I have actually already ordered it.
27:35
Speaker 4: It's all good though. Thanks. Though, if jumping in all
27:38
Speaker 4: at once feels like it's too much, beck, just start small.
27:42
Speaker 4: Gradual actions can build your confidence. Think about it as
27:45
Speaker 4: kind of like dipping your toe in the pool before
27:47
Speaker 4: diving right in. I've said this time and time again, like,
27:51
Speaker 4: if the steps are too big, make them smaller. We
27:54
Speaker 4: can take tiny, tiny steps. If the analysis paralysis you're
27:59
Speaker 4: actually experiencing is actually over researching to begin with, like
28:03
Speaker 4: you're like, oh my god, I don't even know where
28:04
Speaker 4: to start. Google what is an ETF? Today, you just
28:08
Speaker 4: took a tiny step in the right direction. So do
28:11
Speaker 4: small things that add up back.
28:13
Speaker 2: Okay, so Vhie. What I'm taking away from today is
28:15
Speaker 2: that you don't need to know every little detail to
28:17
Speaker 2: make a good decision. It's all about breaking things down
28:20
Speaker 2: into manageable steps and not letting the fear of missing
28:23
Speaker 2: out on the quote unquote perfect choice hold you back.
28:28
Speaker 2: It's really about simplifying your options and focusing on what's important,
28:31
Speaker 2: which will make you feel less overwhelmed and more confident
28:34
Speaker 2: in your financial decisions. Taking action will feel so much
28:38
Speaker 2: better than being stuck in indecision exactly.
28:41
Speaker 4: And like, there's no such thing as making perfect decisions.
28:45
Speaker 4: In fact, some of the worst decisions I've ever made
28:48
Speaker 4: I do not regret because they've led me here, right, Yeah,
28:51
Speaker 4: like some of the worst decisions. And I'm like, let's
28:54
Speaker 4: be honest, was it smart of me to get into
28:57
Speaker 4: forty thousand dollars worth of personal debt back?
29:00
Speaker 1: Not?
29:00
Speaker 4: No one would look at that and be like, oh,
29:02
Speaker 4: that's so smart vee. But she's on the.
29:05
Speaker 2: Money, was born, She's on the money exactly.
29:08
Speaker 4: And I feel like we all have situations like this
29:11
Speaker 4: where I'm not saying, make the wrong decision and just yollow,
29:14
Speaker 4: do a little bit of research, understand it. We can grow,
29:18
Speaker 4: we can learn, but nothing is going to be perfect.
29:20
Speaker 4: And sometimes you can do all the research in the world,
29:23
Speaker 4: beck you can make what you deem to be the
29:25
Speaker 4: perfect decision, and then tomorrow Trump could come out and
29:28
Speaker 4: say that something happened online, tweet about it, and the
29:32
Speaker 4: entire economy could go into a panic, like we can't
29:35
Speaker 4: predict the unpredictable. Yeah, it's wild. And I guess the
29:39
Speaker 4: last thing I want to leave you on, because I've
29:40
Speaker 4: just realized how long we have been recording for Beck,
29:43
Speaker 4: is that I don't think we should underestimate the power
29:46
Speaker 4: of trusting your gut. No one knows your situation better
29:49
Speaker 4: than you do.
29:50
Speaker 1: Well.
29:50
Speaker 4: Researching and getting advice they're great tools, right, Ultimately, you're
29:55
Speaker 4: the one who's going to be the best judge of
29:57
Speaker 4: what is right for you. So Beck, I want everyone
30:00
Speaker 4: to confidently take a leap of faith and just believe
30:02
Speaker 4: in your own ability to make the best decision for
30:05
Speaker 4: you in your financial future. At the end of the day,
30:08
Speaker 4: it's not gonna be what my decision is. It's not
30:11
Speaker 4: going to be what Beck's decision is, and even my
30:13
Speaker 4: own Bech's decisions, they're so different. You've got to kind
30:17
Speaker 4: of pave your own path. Put those blinkers on, and
30:19
Speaker 4: you've got.
30:19
Speaker 2: This summed up so perfectly.
30:22
Speaker 4: Fee, I love this all right. Well, you're in Sydney,
30:25
Speaker 4: my love, so you've got to get back to this
30:27
Speaker 4: holiday that you're having. Thank you for doing a little
30:31
Speaker 4: episode on analysis paralysis with me. Thank you, And we'll
30:35
Speaker 4: see everybody on Friday, and then you'll be back in
30:37
Speaker 4: the studio, bright eyed and bushy tailed. Next week for another.
30:41
Speaker 2: I will be I'll see you guys, then bye bye.
30:49
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