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Breaking up with bad money habits · She's On The Money

0:00
Speaker 1: She's on the Money, She's on the Money.
0:18
Speaker 2: Hello and welcome to She's on the Money, the podcast
0:21
Speaker 2: for millennials who want financial freedom. Today we're talking about
0:26
Speaker 2: bad financial habits and how to break them. So Victoria Divine,
0:30
Speaker 2: our Melbourne based money wiz, in your opinion, what would
0:34
Speaker 2: you say are the most common bad money habits? The
0:37
Speaker 2: naughty money habits you hear about from your clients the most,
0:40
Speaker 2: and in the shoes on the money community the most.
0:43
Speaker 3: I don't believe that this comes as a surprise to
0:45
Speaker 3: any of us. But spending too much money on food,
0:48
Speaker 3: spending too much money on after pay zip pay every
0:52
Speaker 3: other by now pay later option that exists, sporadic shopping sprees,
0:57
Speaker 3: and not thinking about our future and just assuming we
1:00
Speaker 3: can start later. I feel like there's a lot of
1:02
Speaker 3: them in our group. Would say foods are very hot topic,
1:06
Speaker 3: but maybe we won't focus on that today. Yeah, okay,
1:09
Speaker 3: we've done some episodes on food before.
1:10
Speaker 2: So that was back in season three and we had
1:12
Speaker 2: the lovely Milli Padula Dietian with us.
1:14
Speaker 1: We did.
1:15
Speaker 2: Anyway, let's get into it. So the first habit I
1:18
Speaker 2: want you to help us break down is mindless daily
1:21
Speaker 2: spending so talk to me about why exactly this is
1:25
Speaker 2: holding us back and how we can manage to break
1:27
Speaker 2: that bad habit.
1:28
Speaker 3: I feel like this is one that we're all really
1:30
Speaker 3: good at. In fact, Georgie, I did it today. Yeah,
1:34
Speaker 3: I bought a top, but that I didn't.
1:35
Speaker 2: Need Victoria device.
1:37
Speaker 3: It wasn't good. I've just did a good goal for
1:40
Speaker 3: a venue. I decided to go on a little bit
1:43
Speaker 3: of a wonder But that wander, especially given we work
1:45
Speaker 3: in the CBD, happens to go straight through Melbourne Central
1:49
Speaker 3: and they had a sale and like, oh, there was
1:51
Speaker 3: a top that I really wanted. It's actually a money loss.
1:54
Speaker 3: This is not meant to be a bantury episode, but
1:56
Speaker 3: you get what you get. I no, no, no, it
2:02
Speaker 3: was the color of your top, which is like an
2:05
Speaker 3: oak aisy oat meal. It was beautiful, and I picked
2:08
Speaker 3: up my regular size without trying it on and just
2:10
Speaker 3: purchased it for a good twenty seven dollars fifty so like,
2:13
Speaker 3: that's pretty good amount for a cheap top. And I
2:17
Speaker 3: put it on before coming to the show and it
2:19
Speaker 3: doesn't fit, So that's.
2:20
Speaker 2: I'll love it.
2:21
Speaker 3: That's what you get. So I think one of the
2:23
Speaker 3: ways that we can actually have a look at this,
2:26
Speaker 3: you know, maybe do as I say, not as I do.
2:29
Speaker 3: But one of the ways of snapping out of this
2:31
Speaker 3: is actually to just look at our spending on a
2:33
Speaker 3: yearly scale rather than on daily because as I did today,
2:36
Speaker 3: it was so easy to just pick up a top
2:39
Speaker 3: that I really liked because I genuinely felt like, oh,
2:42
Speaker 3: it's not that much and there's a further thirty percent off,
2:44
Speaker 3: Like that was really easy for me to just accidentally.
2:48
Speaker 2: Yeah, got sucked into the sale.
2:49
Speaker 3: Yeah. But if you said to me, well, Victoria, actually
2:52
Speaker 3: twenty seven dollars fifty a day course a year is
2:56
Speaker 3: ten thousand dollars. If I did that every day, that's
2:59
Speaker 3: a lot of money, correct, And I think that when
3:01
Speaker 3: we look at things like lunch, right, ten dollars a
3:04
Speaker 3: day for lunch does not feel like that much money,
3:07
Speaker 3: but every day for a week, that's fifty bucks a
3:10
Speaker 3: week or what is it, twenty six hundred dollars I
3:13
Speaker 3: was about today, twenty six thousand a year, but it's
3:15
Speaker 3: not being really dramatic lavish, but it's twenty six hundred
3:18
Speaker 3: dollars a year, and that's a lot of money as well.
3:21
Speaker 3: And I think that you can start making that calculation
3:23
Speaker 3: a whole heat bigger when you add in not just lunch,
3:26
Speaker 3: but you add in the drinks that you have and
3:28
Speaker 3: the additional stuff you're spending on uber eats, and it
3:32
Speaker 3: just starts to blow up and it ends up being
3:34
Speaker 3: maybe what you'd spend on a family holiday for four Yeah.
3:37
Speaker 3: Sorry not to be dramatic, because of course I'm not dramatic,
3:41
Speaker 3: but I think it's really important to see that from
3:44
Speaker 3: little things big things to grow, and that is my
3:46
Speaker 3: ongoing theme of I would say this year. But of
3:50
Speaker 3: course I think it's also a really important to understand
3:52
Speaker 3: that we want to also enjoy our lives and not
3:54
Speaker 3: be frugal to the point of joylessness, but also think
3:57
Speaker 3: about our spending on a really large level, on a
4:00
Speaker 3: yearly level, or how that actually adds up for you,
4:02
Speaker 3: because I think if you're considering purchasing something, we actually
4:06
Speaker 3: often just don't think about the bigger picture when we're
4:08
Speaker 3: doing that, and I certainly didn't today. And you know,
4:12
Speaker 3: I think it's important for me to share stuff like
4:13
Speaker 3: that because I'm just as bad as everybody else.
4:15
Speaker 2: Yeah.
4:17
Speaker 3: Yeah, I'm just a gol who saw a cute top
4:19
Speaker 3: and just really wanted the cute top that ultimately didn't fit. Yeah,
4:24
Speaker 3: otherwise it would have been a delightful top.
4:26
Speaker 2: Absolutely. I think we saw that as well a lot
4:29
Speaker 2: last year with everyone working from home, and I know
4:32
Speaker 2: a lot of people continue to work from home. We're
4:34
Speaker 2: not buying our lunches, we're not going out for coffee
4:36
Speaker 2: as much, so we really saw our savings build up.
4:38
Speaker 2: So I think that's just a really clear way of
4:40
Speaker 2: seeing how much taking away those luxurious little daily spendings
4:45
Speaker 2: can kind of help us out exactly.
4:47
Speaker 3: And we all know, Well, I can't say this for sure,
4:50
Speaker 3: but I'm assuming you were eating lunch at home, right,
4:52
Speaker 3: Like you were still eating at home and saving and
4:55
Speaker 3: I would assume enjoying the food that you were eating
4:57
Speaker 3: because you had an abundance of choice take that food
5:01
Speaker 3: to work, and we are in the same financial position,
5:04
Speaker 3: but probably our public transport tickets, etc. Yeah, but I
5:07
Speaker 3: think it's a really important point, like you were making
5:09
Speaker 3: lunch for yourself and you were taking it to work,
5:11
Speaker 3: and that it's a financial habit that you could absolutely.
5:14
Speaker 2: Start to look after yourself with stunning well said talk
5:17
Speaker 2: to me about sporadic shopping spreeze so obviously you went
5:20
Speaker 2: on a little one today.
5:21
Speaker 3: Okay, I bought a top. I feel like a sporadic
5:23
Speaker 3: shopping freeze. That's not what happened. Definitely overstated, but that's okay.
5:28
Speaker 3: But essentially it's another habit that I think our generation
5:31
Speaker 3: needs to break, and I see it in my friends,
5:33
Speaker 3: I see it in people that are in our community.
5:35
Speaker 3: It is not uncommon for people to go out and
5:37
Speaker 3: be like, oh, I'll just buy a whole heap of stuff,
5:39
Speaker 3: or I'll just buy one thing, and then that turns
5:41
Speaker 3: into three. I think at the end of the day,
5:44
Speaker 3: it's going to come back to advice I've given you before,
5:46
Speaker 3: and that is put twenty four hours between you and
5:49
Speaker 3: your purchases and make a wish list on your phone
5:52
Speaker 3: and make sure that you're referring back to that. If
5:54
Speaker 3: you want something, to take a photo of it and go,
5:56
Speaker 3: you know what, if I want that again tomorrow, like,
5:58
Speaker 3: I can come back. But often in the moment you'll
6:01
Speaker 3: be like, yeah, the top was cute, but I actually
6:03
Speaker 3: don't need it, and you can justify to yourself, but
6:05
Speaker 3: in that moment, you're not saying no, You're just saying
6:08
Speaker 3: I'm going to sit on this, and I think that's
6:10
Speaker 3: a much easier thing to swallow than just being like, Nah,
6:14
Speaker 3: can't have it, Nut, can't have it because that sucks. Yeah,
6:16
Speaker 3: that's not a fun mentality to be in. That is
6:19
Speaker 3: really limiting. But I think, Okay, I really really like
6:23
Speaker 3: this top in this moment. Let me think about it tomorrow,
6:26
Speaker 3: and you know what, if it's still here, I'm going
6:28
Speaker 3: to be all hippy about it and be like it
6:29
Speaker 3: was meant to be and if it's not, then it's not.
6:33
Speaker 3: So I think that that is potentially a good way
6:35
Speaker 3: of doing it. But then also on this point, stop
6:38
Speaker 3: getting sucked into sales like Miss Victoria the line today.
6:42
Speaker 3: Make the most of them if you actually need to
6:44
Speaker 3: buy something, But because it's on sale doesn't make the
6:47
Speaker 3: top any cute. I'm talking to myself here.
6:50
Speaker 2: Okay, So the next one here, v is one that
6:53
Speaker 2: I feel like the older generations would accuse us all
6:56
Speaker 2: of being really guilty.
6:57
Speaker 3: Oh is that like eating too much of a cart?
7:00
Speaker 2: Well sits around that kind of that line of thinking.
7:04
Speaker 2: I'm talking about us not taking our futures seriously enough.
7:08
Speaker 3: To slash Yeah that's a thing.
7:10
Speaker 2: Yeah, but also not considering investing in our plan kind
7:15
Speaker 2: of just assuming we can do it later and we'll
7:16
Speaker 2: be fine.
7:17
Speaker 3: Okay, well we all know that you can't just do
7:19
Speaker 3: it later and you'll be fine. I feel like I've
7:21
Speaker 3: orientted on this podcast time and time again about how
7:24
Speaker 3: we need to put future us first and start planning
7:27
Speaker 3: our financial futures today. At the end of the day,
7:29
Speaker 3: Georgia with a podcast millennials who want financial freedom not
7:33
Speaker 3: to do it tomorrow. So I think that it's really
7:36
Speaker 3: important to understand it's really important to educate yourself, and
7:39
Speaker 3: I actually think that we are incredibly educated as a generation.
7:43
Speaker 3: An article came out this week and said that research
7:46
Speaker 3: should come out about boys should be handling the finance.
7:51
Speaker 3: A whole piece of research has been done on Australian
7:53
Speaker 3: parents and an older generation than what you or I
7:56
Speaker 3: or our average listeners age is and it says that
8:00
Speaker 3: stuck in a traditional view. And I went on a
8:02
Speaker 3: bit of a rant because at the end of the day,
8:03
Speaker 3: obviously I am wildly passionate about financial literacy and changing
8:09
Speaker 3: that and making sure that that is not the view
8:11
Speaker 3: of our current generation. But at the same time, if
8:15
Speaker 3: older generations seem to think that we are, you know,
8:17
Speaker 3: maybe not taking our futures seriously, I would argue back
8:20
Speaker 3: and being like, we are actually taking back this power,
8:23
Speaker 3: or we are investing. Young women are investing so much
8:25
Speaker 3: more than any other generation or age or demographic is
8:29
Speaker 3: At the moment, we are seeing an epic change in
8:32
Speaker 3: women in the workforce, in women in jobs of power,
8:35
Speaker 3: in leadership positions. I am so wildly passionate about this,
8:39
Speaker 3: and I swear if somebody else in an older generation
8:42
Speaker 3: starts saying that we are guilty of being maybe two
8:45
Speaker 3: in the moment or not taking things seriously, like, yeah,
8:48
Speaker 3: you're right, we might not take things seriously on social media,
8:50
Speaker 3: but when they were our age, they didn't have access
8:53
Speaker 3: to platforms that allowed them to be as free or
8:55
Speaker 3: as open or as you know, conversational as what we
8:58
Speaker 3: currently are. That question gets me a little bit heated
9:01
Speaker 3: because it really frustrates me that older generations are not
9:05
Speaker 3: seeing the opportunities that we have as a generation and
9:08
Speaker 3: that we are seizing. So for me, it's a bit
9:11
Speaker 3: it's a bit topical, because they get really frustrated that
9:15
Speaker 3: we are not in the best possible position and people
9:17
Speaker 3: do not seem to see that we actually have a
9:20
Speaker 3: whole heap of other barriers and hurdles that are actually
9:22
Speaker 3: in our way. And you know, I won't go on
9:25
Speaker 3: about it, but property prices, the fact that inflation has
9:28
Speaker 3: gone up higher than what the average salary has, like.
9:32
Speaker 2: The number of people who lost their jobs last year,
9:34
Speaker 2: exactly young people being amongst the hardest hits.
9:36
Speaker 3: But then we're also seeing so many people come through
9:39
Speaker 3: that and being innovative and coming up with different businesses
9:42
Speaker 3: and being nimble and agile. And then we're also seeing
9:44
Speaker 3: people I have seen this wave of people who are
9:47
Speaker 3: just willing to get their hands dirty, people who are going, yep, cool,
9:50
Speaker 3: that was my job. But I'll just take whatever's going
9:52
Speaker 3: because I need to put food on the table. And
9:54
Speaker 3: I think that older generations and this might be wildly
9:57
Speaker 3: and accurate, so I do apologize, weren't as will to
10:00
Speaker 3: do that because I think they were too proud, whereas
10:02
Speaker 3: this generation's kind of like, yep, seek, I'll drive an uber.
10:05
Speaker 3: That'd be good. I'll just earn some extra cash, or
10:07
Speaker 3: don't have a job at the moment, so I'll absolutely
10:10
Speaker 3: do that, or yeah, I'll go. One of our staff
10:13
Speaker 3: worked in a warehouse during COVID and I cannot tell
10:15
Speaker 3: you how impressed I was with that, because at the
10:18
Speaker 3: end of the day, that person could have gone and
10:21
Speaker 3: just gotten you know, job seeker, job keeper, but they
10:24
Speaker 3: were like, no, like, I've got two hands, I can
10:27
Speaker 3: do a job and I can earn money with that.
10:29
Speaker 3: And I love that mentality, and that is a mentality
10:32
Speaker 3: that I don't see in any other generations. So that's
10:34
Speaker 3: the end of my ranch. Georgia we were actually talking about.
10:38
Speaker 2: Just want to jump in there and say, of course,
10:40
Speaker 2: job seeker, job keeper like no, Jo.
10:43
Speaker 3: Yeah, no, no, no, yeah, And I think that's actually
10:45
Speaker 3: really good for you to pull me up on. That's
10:47
Speaker 3: absolutely not it. But I think that a number of
10:49
Speaker 3: people did sit back during COVID and just going, oh, like,
10:53
Speaker 3: I can't do anything. You know what, there are a
10:55
Speaker 3: lot of people that were not in the location or
10:58
Speaker 3: the financial position, or the lifestyle position, or had kids
11:01
Speaker 3: at home and absolutely couldn't work. Like please, don't get
11:04
Speaker 3: me wrong, but I think that as a generation as
11:07
Speaker 3: a whole, if we have the ability to do something,
11:09
Speaker 3: we do it, and most generations don't do that.
11:12
Speaker 2: I love that. Okay, So you're basically saying that we
11:15
Speaker 2: are taking our futures pretty seriously, So you don't really
11:18
Speaker 2: subscribe to what these older generations are perhaps saying. Is
11:22
Speaker 2: the you know, classic millennial you don't believe in those tropes.
11:26
Speaker 3: Which I love. They can Georgia Hey, getting the.
11:29
Speaker 2: Bin, Getting the bin? Yeah, love it. Okay, Well it's.
11:33
Speaker 3: The professional and mature way to respond to accusations.
11:39
Speaker 2: Get in the bin. I just want to quickly touch
11:42
Speaker 2: on super here V because I know we are smart,
11:45
Speaker 2: empowered and interested in finance now, but I feel like
11:47
Speaker 2: super is still something that is maybe considered or perceived
11:51
Speaker 2: to be as a little bit of a boring topic.
11:54
Speaker 2: Can you just reiterate, I.
11:55
Speaker 3: Don't know why you want to talk about it on
11:56
Speaker 3: this podcast.
11:58
Speaker 2: Is it boring?
11:58
Speaker 3: No, it's actually so was so cool.
12:00
Speaker 2: That's what I thought. You're gonna say this little spiel
12:03
Speaker 2: about what just why it's something we need to be
12:06
Speaker 2: thinking about.
12:07
Speaker 3: So I think that when people say I'm not investing
12:10
Speaker 3: my friend, have you got a super account? Yes, you're
12:12
Speaker 3: an investor, something that I don't think a lot of
12:15
Speaker 3: people realize is that their superanuation money is not saving
12:19
Speaker 3: for retirement. It's an investment for retirement. It's going into
12:22
Speaker 3: what we call an investment fund. Essentially, this is all
12:25
Speaker 3: very basic in comparison, but that is then being invested
12:29
Speaker 3: on behalf of you to create wealth for your financial future.
12:33
Speaker 3: And superanuation here in Australia is essentially the closest thing
12:37
Speaker 3: we have to what maybe other people would refer to
12:41
Speaker 3: as a tax haven, right, and that's like a really
12:43
Speaker 3: good tax situation. Essentially, the amount of tax we pay
12:47
Speaker 3: in superannuation is only fifteen percent, whereas a lot of
12:50
Speaker 3: our listeners would be paying marginal tax rates between twenty
12:53
Speaker 3: five and thirty nine percent, which obviously, if you were
12:57
Speaker 3: going to put money somewhere and save some moreuation is
13:00
Speaker 3: the environment for that. So I think that for us
13:03
Speaker 3: we just don't take it seriously because we don't feel
13:05
Speaker 3: like it's our money. But at the end of the day,
13:07
Speaker 3: supernuation is nine point five usually can be more than that,
13:11
Speaker 3: but at a base level here in Australia, subernuation is
13:14
Speaker 3: a base of nine point five percent of your real money,
13:17
Speaker 3: like your real money that you are going to work
13:19
Speaker 3: each and every single day to earn, and it is
13:21
Speaker 3: being put in an investment for you, and that investment
13:25
Speaker 3: for you should be performing and you should be keeping
13:27
Speaker 3: an eye on that, because, my friend, that's your share portfolio.
13:31
Speaker 3: You might not be able to pull your money out
13:32
Speaker 3: two sixty five, but that doesn't matter. It's still your
13:35
Speaker 3: money and it is still invested on your behalf. If
13:38
Speaker 3: you don't like the way it's invested, you've got to
13:40
Speaker 3: change that. So I think that we don't take it
13:42
Speaker 3: seriously enough because we genuinely don't see it as ours,
13:45
Speaker 3: when in reality, that's your future sitting right there, my friends.
13:48
Speaker 2: One hundred percent. And we did do a whole episode
13:51
Speaker 2: on super as well, so scoop back and listen to
13:54
Speaker 2: that one if you do need help breaking the bad
13:56
Speaker 2: habit of not taking your super seriously. Next one v
14:01
Speaker 2: Maybe a little bit predictable. We did touch on it
14:03
Speaker 2: at the top.
14:04
Speaker 3: Predictable never no, no, never go over the hit. We're fresh, But.
14:12
Speaker 2: I want to talk now about buy now, pay later.
14:15
Speaker 2: So this made the list of the startling it Yeah,
14:20
Speaker 2: let the kids call it so regular listeners would of
14:23
Speaker 2: course know that both you and my good self are
14:26
Speaker 2: quite anti BNPR. But can you please give us a
14:30
Speaker 2: little refresher as to why find our pay later schemes?
14:34
Speaker 2: Is that too hard? Why they're more of a hindurance
14:37
Speaker 2: than a help.
14:38
Speaker 3: I think it's a trap. Is that bad? I actually
14:42
Speaker 3: want to disclaimer this right. We actually have a number
14:44
Speaker 3: of people in our community that do use programs like
14:48
Speaker 3: after pay for really constructive reasons. They're really good at
14:51
Speaker 3: cash flow, and they're using it as a cash flow tool.
14:54
Speaker 3: We are not talking to those people. We are talking
14:56
Speaker 3: to the people that get after paid by things they
14:58
Speaker 3: don't need with money they don't have. And so though
15:02
Speaker 3: it may seem like after pay is going to help
15:05
Speaker 3: you attain an item or an object or a life
15:08
Speaker 3: that you don't currently have that you do want, the
15:11
Speaker 3: reality is they are actually going to be bad news
15:13
Speaker 3: for your financial future. They're literally just another line of
15:16
Speaker 3: credit and it is absolutely not something I want our
15:19
Speaker 3: community to come to rely on. And for me, it's
15:22
Speaker 3: a really slippery slope. If you're going to go buy
15:25
Speaker 3: a dress and that dress is two hundred dollars, they're like, oh,
15:27
Speaker 3: it's easy, we'll just take payments out and it'll be
15:30
Speaker 3: fifty dollars a week for the next four weeks, and
15:32
Speaker 3: you kind of don't feel the bite of that dress
15:35
Speaker 3: as harshly as you would have had you had to
15:38
Speaker 3: cough up that money initially. It's even worse if you
15:40
Speaker 3: didn't have that money at the time, because you're literally
15:43
Speaker 3: spending money that you don't have. I just feel like
15:46
Speaker 3: it's a really slippery slope. The end of the day,
15:48
Speaker 3: you don't need to be buying things to impress other people.
15:51
Speaker 3: And it really frustrates me that we're in a in
15:54
Speaker 3: a world where we are often buying things to impress
15:56
Speaker 3: people we don't even like. I think it's really not constructive.
15:59
Speaker 3: And seeing a number of different platforms pop up at
16:03
Speaker 3: the moment that are equally as concerning that maybe are
16:06
Speaker 3: worthy of talking about on a future podcast episode, like
16:09
Speaker 3: my pay Now, Georgia. I'm not sure if you've heard
16:11
Speaker 3: the advertisements for them, but they are also terrifying.
16:15
Speaker 2: Did you say, why pay now?
16:16
Speaker 3: My pay Now?
16:18
Speaker 2: Oh okay, interesting.
16:20
Speaker 3: It's like essentially a cash advance on your own income.
16:24
Speaker 3: And they say they're revolutionizing the way that people get paid,
16:28
Speaker 3: and they say it's early and on demand, when in reality,
16:31
Speaker 3: they're just going to charge you money to behaveock your
16:34
Speaker 3: own salary, and it kind of makes me feel sick.
16:37
Speaker 2: With interest or late fees and all of that kind.
16:40
Speaker 3: Of flat rate Georgia. You know, no, hidden fees are
16:43
Speaker 3: annoying interest. What they're saying there is like they are
16:46
Speaker 3: going to charge you money on the money that you have,
16:50
Speaker 3: and they say, that's really good. But I'm looking at
16:52
Speaker 3: their website right now because I keyed it in to
16:54
Speaker 3: make sure that I wasn't wrong, and they say for
16:57
Speaker 3: just five dollars for every one hundred dollars that you
17:01
Speaker 3: get an advance on. Like wow, So you're gonna charge
17:03
Speaker 3: me five percent yep, for every dollar that I get
17:08
Speaker 3: as an advance. So that's essentially alone. My friends and
17:10
Speaker 3: I think that it's a really really slippery slope and
17:13
Speaker 3: that's my opinion on that.
17:14
Speaker 2: Yeah, and the marketing makes it sound so glossy, so
17:16
Speaker 2: you have to.
17:17
Speaker 3: Tell me, gosh, yes, And you look at their beautiful
17:19
Speaker 3: websites and their Coverty memes and they're covered in emojis
17:23
Speaker 3: and they are beautiful, like they're branding stunning, Like whoever
17:25
Speaker 3: did they wear the website? Whoever did their website? Get
17:29
Speaker 3: in touch? But I just get so frustrated because this
17:32
Speaker 3: is not putting you in the best possible financial position.
17:36
Speaker 3: And please don't get me wrong, if you need a
17:38
Speaker 3: cash advance, and you need it for a really good reason.
17:42
Speaker 3: Medical food on the table, like all of that stuff.
17:45
Speaker 3: Please don't get me wrong if you're using these as
17:47
Speaker 3: tools to actually put your family in a position where
17:50
Speaker 3: they're getting by. But if you are advancing your salary
17:54
Speaker 3: because you went out a couple of times too many
17:57
Speaker 3: with the girls for a couple of espresso martinis, like
18:00
Speaker 3: this is not how you're going to get ahead in life,
18:02
Speaker 3: and it's actually impacting future you.
18:05
Speaker 2: I just wanted to throw in some stats here before
18:06
Speaker 2: I ask you how we can actually break the habit
18:09
Speaker 2: if we are. You know, I love some stats. I
18:12
Speaker 2: do so. First stat here, one in five people using
18:15
Speaker 2: buy now, Pay Later schemes misspayments and are racking up
18:18
Speaker 2: serious amounts of debt. One in five.
18:20
Speaker 3: That's pretty sad. Twenty Georgia. That's twenty percent. That's a
18:24
Speaker 3: lot of percents.
18:26
Speaker 2: That's a lot of percent.
18:27
Speaker 3: You're not wrong.
18:28
Speaker 2: Next up for you here, people under the age of
18:31
Speaker 2: thirty five are using buy now, Pay Later more than
18:34
Speaker 2: any other demographic, which our audience yep. And the number
18:38
Speaker 2: of buy now Pay Later transactions increased from a sixteen
18:41
Speaker 2: point eight million in the twenty seventeen to eighteen financial
18:45
Speaker 2: year to thirty two million in twenty eighteen to nineteen,
18:49
Speaker 2: which is an increase of ninety percent, essentially double. It
18:52
Speaker 2: is filthy. V talk us through how we can break
18:56
Speaker 2: this habit.
18:57
Speaker 3: I'm so opinionated on this podcast this week. I do
19:00
Speaker 3: apologize friends, we're talking about habits. I'm just bad habits,
19:03
Speaker 3: And given Valentine's Day is literally just around the corner,
19:07
Speaker 3: I feel like we should be taking care of ourselves,
19:10
Speaker 3: not someone else. So let's just put ourselves first and
19:13
Speaker 3: break a whole heap of bad financial habits. And it
19:17
Speaker 3: gets me really riled up when we have habits that
19:19
Speaker 3: aren't necessarily our fault, because it's due to us being
19:22
Speaker 3: sucked in with really beautiful marketing or own idea or
19:25
Speaker 3: a statement that seems too good to be true because
19:28
Speaker 3: it actually is. So I think that while credit is
19:31
Speaker 3: absolutely a super important lifeline for a lot of people,
19:35
Speaker 3: we shouldn't be going into debt to buy brand new
19:37
Speaker 3: tops or dresses or outfits. We shouldn't be going into
19:40
Speaker 3: debt to buy a new technology or things that we
19:43
Speaker 3: genuinely do not need. So don't forget how satisfying it
19:47
Speaker 3: can be to save up for something. And I've plugged
19:50
Speaker 3: this before. I'm not sponsored by these people, by the way, Georgia,
19:54
Speaker 3: otherwise you might know about it. But I've plugged them
19:57
Speaker 3: before and I really love them because it's essentially proper layby.
20:01
Speaker 3: If you would like to purchase something and you're bad
20:03
Speaker 3: at cash flow and management, you can actually go to
20:06
Speaker 3: layby land dot com, dot a you and lay by
20:08
Speaker 3: something like you can start paying towards an item and
20:12
Speaker 3: then have it delivered once you've paid it off.
20:14
Speaker 2: Yeah, so that's the other way around.
20:16
Speaker 3: Yeah, so the people don't have any debt on something.
20:19
Speaker 3: And I think that if you need a new fridge
20:21
Speaker 3: for your home and you're really bad at cash flow,
20:23
Speaker 3: like pick out that fridge, go and put it on
20:25
Speaker 3: layby and go and actually purchase it that way because
20:29
Speaker 3: they're not charging you anymore. And I obviously wouldn't recommend
20:32
Speaker 3: it if it was a more expensive option, but at
20:35
Speaker 3: the end of the day, like, if cash flow is
20:37
Speaker 3: your problem, find another solution for it. And lay by
20:39
Speaker 3: land again not sponsored. I just really like that that
20:43
Speaker 3: is an option because a lot of people say, oh, yeah,
20:45
Speaker 3: by Victoria so bad like that fridge. I wants a
20:48
Speaker 3: thousand dollars so bad at saving up so after pace
20:52
Speaker 3: the way that I kind of, you know, say, okay, well,
20:55
Speaker 3: let's reverse engineer that the problem is saving. Let's get
20:58
Speaker 3: that item on a cash flow plan that doesn't negatively
21:00
Speaker 3: impact you. So for me, it's just let's think about
21:03
Speaker 3: how gratifying it can be to save. If you're bad
21:05
Speaker 3: at cashalo, let's look at another option instead of turning
21:08
Speaker 3: to places that could end up flashing you in the bottom.
21:11
Speaker 2: The last habit here, v, the one that you're pretty
21:15
Speaker 2: renowned for saying on the podcast, is keeping our heads
21:19
Speaker 2: buried in the sand.
21:20
Speaker 3: I don't know where that phrase even came from. I'm
21:22
Speaker 3: not saying a lot I do, I do, And it's
21:25
Speaker 3: so dated.
21:27
Speaker 2: Ah it's a real visual Like every time you say it,
21:30
Speaker 2: I can imagine me with like.
21:33
Speaker 3: Some sand up your nose. Yeah, yeah, that's really a hotness.
21:37
Speaker 3: What were you trying to say before I cut off?
21:40
Speaker 2: So the issue of keeping our heads buried in the
21:43
Speaker 2: sand rather than facing our financial fears head on quicksand too. Ah, Well,
21:49
Speaker 2: that's the worst kind of sand.
21:51
Speaker 3: Ah No, the worst kind of sands, That really gritty,
21:54
Speaker 3: thin sand that gets stuck in your baths. Yeah, that's
21:57
Speaker 3: the worst.
21:58
Speaker 2: That is the worst sand and you find it in
21:59
Speaker 2: the shower.
22:00
Speaker 3: Yes, and you thought you didn't have any in your babies,
22:03
Speaker 3: but then it is.
22:05
Speaker 2: Yeah, I haven't thought about that. Noah, good visual. One
22:09
Speaker 2: more time, I'm going to ask.
22:10
Speaker 3: You, I'm really trying to railroad this episode because I'm
22:14
Speaker 3: missing the band to Georgia.
22:17
Speaker 2: Why do you think this is an issue that we
22:19
Speaker 2: need to address.
22:20
Speaker 3: I think a lot of people that have come into
22:22
Speaker 3: our community that were a bit reluctant when it came
22:25
Speaker 3: to talking to about things related to finance came because
22:29
Speaker 3: it filled them with a sense of dread and anxiety
22:31
Speaker 3: and it made them feel really uneasy. And we've spoken
22:34
Speaker 3: about this like literally, if you haven't heard our Money
22:36
Speaker 3: Story episode, it was the first episode we did ever,
22:40
Speaker 3: and that arguably is the premise of everything I do.
22:43
Speaker 3: And that's why I wanted it to be the first episode,
22:45
Speaker 3: because your money story is so important to me and
22:48
Speaker 3: so important to you to understand, because the way you
22:52
Speaker 3: were brought up around money is going to impact the
22:55
Speaker 3: rest of your life. When we said on a podcast, recently,
22:58
Speaker 3: some research has come out that you're money beliefs and
23:01
Speaker 3: values start being shaped as young as seven years old
23:04
Speaker 3: and they then become ingrained. So for me, understanding your
23:08
Speaker 3: money story is going to help you understand a little
23:10
Speaker 3: bit about why you might feel dread or anxiety and
23:14
Speaker 3: money anxiety is such a real thing. It is not
23:18
Speaker 3: something that we should laugh at or you know, if
23:20
Speaker 3: you don't understand what that feels like, you should be grateful.
23:24
Speaker 3: Money anxiety is a really real thing, and lots of
23:26
Speaker 3: us would actually prefer to live in a state of ignorance.
23:29
Speaker 3: That's why we put our head in this and rather
23:31
Speaker 3: than actually taking control of our finances because that can
23:34
Speaker 3: often feel incredibly overwhelming and often too much. So for
23:39
Speaker 3: our community to understand this, you need to know that
23:42
Speaker 3: the longer I did is going to be in the sand,
23:44
Speaker 3: the longer you're going to be saving or investing or
23:47
Speaker 3: you know, trying to get out of the sand. So
23:49
Speaker 3: the sooner that you can essentially just start going, you
23:51
Speaker 3: know what, I'm going to tackle this head on, like,
23:53
Speaker 3: let's just have a chat about it. Let's work out
23:55
Speaker 3: what my money story is. Let's work out what I
23:57
Speaker 3: can do for future me. The less time and energy
23:59
Speaker 3: in it that you're going to have to put into
24:01
Speaker 3: that future you, situation that you want to achieve when
24:04
Speaker 3: you're really young. It can actually just be easy to
24:07
Speaker 3: focus on life right now. I was guilty of that.
24:10
Speaker 3: I went to UNI. I definitely spent everything I had
24:12
Speaker 3: and ended up in debt because of it. And you
24:15
Speaker 3: just don't end up putting much thought into future you
24:17
Speaker 3: because you're thinking, Okay, well it doesn't actually matter I'm
24:20
Speaker 3: a UNI, I'll have a full time job at some point,
24:22
Speaker 3: or it doesn't actually matter I m agrad right now,
24:24
Speaker 3: I'll have a real paying job at some point. Like
24:27
Speaker 3: that point never comes. There's always going to be oh, well,
24:31
Speaker 3: i'll have a higher paying job, or I'll do it
24:33
Speaker 3: when I achieve X, or I'll do it once I've
24:36
Speaker 3: paid off my personal loan, and oh once the personal
24:38
Speaker 3: loan's gone. It's I'll do it once I get a
24:40
Speaker 3: new car, because I really I deserve one and I
24:42
Speaker 3: need it. And there's just there's never today like today
24:45
Speaker 3: is the day. And I think we need to understand that,
24:48
Speaker 3: because it can be so easy to just focus on
24:50
Speaker 3: the right now instead of putting future you first.
24:54
Speaker 2: All right, before we hear what your worst money habit is,
24:57
Speaker 2: miss Victoria Devine, and have a little chat about the
25:00
Speaker 2: psychology of why it is so very hard to break
25:03
Speaker 2: bad habits. Here is a quick word from the partners
25:06
Speaker 2: of today's show. Now, if you're falling as in love
25:20
Speaker 2: with finance as our good mate Vickid is, then please
25:26
Speaker 2: should I stop calling you Vikid?
25:28
Speaker 3: No? I want to let's do a pop background.
25:30
Speaker 2: Okay, Now, if you're falling as in love with finance
25:34
Speaker 2: as Vikid is, then please remember that we aren't just
25:38
Speaker 2: hanging around on this podcast. We also have a Facebook community,
25:42
Speaker 2: which we talk a lot about on the podcast, where
25:45
Speaker 2: one hundred and thirty thousand angels absolute weekly daily our.
25:49
Speaker 3: One hundred and thirty thousand people like that's a lot
25:51
Speaker 3: of people.
25:52
Speaker 2: It's a lot.
25:52
Speaker 3: I don't know how many people that visually looks like
25:56
Speaker 3: MCG plus some. I can't even tell you how many
26:00
Speaker 3: people fit in an MCG just on it. Let you
26:02
Speaker 3: know that. Hypothetically, it's probably ten mcgs.
26:06
Speaker 2: Okay, so it's one, it's not. We'll get there. The
26:10
Speaker 2: aim is to get to ten mcgs.
26:12
Speaker 3: This is all, but but George is worth of people
26:18
Speaker 3: listen to our podcast last month.
26:20
Speaker 2: Okay, well that's big, that's big. That's a stat worth celebrated.
26:24
Speaker 3: Do you know what else is worth celebrating Georgia King?
26:27
Speaker 2: Oh, here we go. I know what you're gonna say.
26:28
Speaker 2: You do what, Victoria?
26:30
Speaker 3: Oh shot, Georgia, we got verified on him.
26:34
Speaker 2: Yeah, dear willogit the blue tick. You've approved got the
26:38
Speaker 2: blue tick.
26:39
Speaker 3: So Brian John has the blue tick. No one really
26:41
Speaker 3: knows how we got it, but he's got it. So
26:43
Speaker 3: now we're as cool as Ryan John. Yay?
26:46
Speaker 2: Do you have one? Personally?
26:47
Speaker 3: Absolutely not.
26:49
Speaker 2: But so if you love the pod, don't forget. We're
26:53
Speaker 2: also on YouTube.
26:54
Speaker 3: We are if you love the pod, We're on YouTube,
26:56
Speaker 3: We're on Instagram, we're on TikTok, and George is not
26:59
Speaker 3: gonna mention it. But we put together an absolutely delightful
27:03
Speaker 3: newsletter where Georgia shares tips, tricks, her unsolicited recommendations, what's
27:09
Speaker 3: going on in the community, and every week a really
27:11
Speaker 3: short summary of what actually happened on the pod. So
27:14
Speaker 3: if you missed out a bit of a recap, you
27:16
Speaker 3: get the juicy, juicy recap.
27:18
Speaker 2: So let's get very silly, very fun. Okay, so everyone
27:21
Speaker 2: is dying to know Victoria, what is your worst financial
27:26
Speaker 2: habit by Yeah.
27:28
Speaker 3: Everybody has bad habits. Yeah, I actually get quite frustrated
27:32
Speaker 3: when people put me up on a pedestal as being
27:34
Speaker 3: the absolute og of money, because at the end of
27:37
Speaker 3: the day, I'm not. Yes, I'm really open about talking
27:40
Speaker 3: about it. Yes, I'm really passionate about it. And if
27:43
Speaker 3: you say I'm the og of being passionate about financial literacy,
27:46
Speaker 3: I'm not going to say no. But if you think
27:49
Speaker 3: I've got incredibly good money habits, sorry, I brought two
27:51
Speaker 3: oat lattes today in a top I didn't need Toria, Yeah, exactly, exactly,
27:57
Speaker 3: So come at me.
27:59
Speaker 2: Would you say that it's your worst money habit then,
28:01
Speaker 2: just daily non essential spending?
28:03
Speaker 3: Yeah, I think I would say that it's just little
28:06
Speaker 3: non essential spending that really adds up. Like I genuinely
28:10
Speaker 3: didn't need another coffee today, but I felt like I
28:13
Speaker 3: needed to get out of the office and just you know,
28:15
Speaker 3: have a breather, so I used a coffee as that.
28:17
Speaker 3: And I really could be a little bit more thoughtful
28:19
Speaker 3: about that and go for a walk around the block
28:21
Speaker 3: instead of a walk to Melbourne's Central Yes, but here
28:24
Speaker 3: we are.
28:25
Speaker 2: You obviously have an amazing suite of knowledge in your head.
28:29
Speaker 3: Absolutely, and this isn't coming out of my savings account
28:33
Speaker 3: or anything. But it does frustrate me that I do
28:35
Speaker 3: things like that sometimes. But I'm not mad about it.
28:39
Speaker 3: I just take it as it is.
28:41
Speaker 2: What about when you were younger, Like, what was the
28:42
Speaker 2: turning point?
28:43
Speaker 3: When I was younger, I lived way beyond my means.
28:46
Speaker 3: I went into personal debt when I went overseas for UNI,
28:50
Speaker 3: and you know, lived my best life. I don't think
28:53
Speaker 3: that that was something I regret, because it's a part
28:56
Speaker 3: of my money story. I think that going through being
28:59
Speaker 3: in debt actually helped me really understand the impact of it,
29:02
Speaker 3: the anxiety it brings, how upset it made me, felt
29:06
Speaker 3: a lot of shame around that. It made me really embarrassed,
29:09
Speaker 3: especially when my friends would talk about their savings and
29:12
Speaker 3: I was sitting here with like twenty thousand dollars on
29:15
Speaker 3: a personal loan. Yeah, that feels awful, And I know
29:19
Speaker 3: how that feels. And that's why I'm so passionate about
29:21
Speaker 3: making sure that everyone in our community feels heard and
29:24
Speaker 3: feels seen and is actually you know, a part of
29:27
Speaker 3: changing their story and not being ashamed of it. Because
29:29
Speaker 3: no one chooses to get into debt. So I think
29:32
Speaker 3: that for me, there's nothing I would change about my
29:35
Speaker 3: money story or what I did when I was younger,
29:37
Speaker 3: because it has made me who I am today and
29:39
Speaker 3: has helped me understand financial literacy to a deeper level.
29:43
Speaker 2: And Yeah, you're able to empathize with our community and
29:46
Speaker 2: your clients more, which I think would probably give you
29:48
Speaker 2: an edge as well.
29:49
Speaker 3: Yeah, and I'm still working towards financial freedom too, like
29:52
Speaker 3: I have to come to work every day and earn
29:54
Speaker 3: an income because I'm definitely not financially free like Georgia.
29:58
Speaker 3: You heard, I just bought a house. Yeah, we have
30:01
Speaker 3: a mortgage now the commitment a mortgage and a dog.
30:04
Speaker 3: I have a family to provide for.
30:06
Speaker 2: You're all grownupul that's a bad habits though, in terms
30:11
Speaker 2: of the psychology behind why it is so hard to
30:14
Speaker 2: break them, where do we begin, Like why is it
30:18
Speaker 2: so hard?
30:19
Speaker 3: Because we are humans and humans like to be comfortable,
30:23
Speaker 3: And once you've created a habit that you are comfortable with,
30:27
Speaker 3: change is too hard, so we are less likely to
30:30
Speaker 3: change than we are to stick with. Where we know
30:33
Speaker 3: most of us would have heard this historically, and that
30:36
Speaker 3: is that it takes twenty one days to break a
30:38
Speaker 3: bad habit, which actually hasn't improven, but it seems pretty
30:41
Speaker 3: accurate to me, because I feel like that seems like
30:44
Speaker 3: enough time for you to get in the really good
30:47
Speaker 3: swing of testing things out, like twenty one days without
30:50
Speaker 3: an oat latae, and I'd probably forget that I used
30:52
Speaker 3: to go and get one. Often bad habits are associated
30:56
Speaker 3: with pleasure, though, Georgia and I think that instant gratification
31:01
Speaker 3: of buying a new top randomly on a Tuesday that
31:05
Speaker 3: you hadn't really thought about and acknowledging that you're potentially
31:08
Speaker 3: sabotaging your bigger financial goals by doing this can be
31:12
Speaker 3: much harder than actually just stopping yourself from buying top.
31:15
Speaker 3: So we're not saying it is easy, but we are
31:17
Speaker 3: just saying, how do we be a little bit more
31:19
Speaker 3: aware of this and what does that actually look like?
31:22
Speaker 3: And sometimes we don't even know that we have a
31:24
Speaker 3: bad habit because we actually consider it really normal. And
31:26
Speaker 3: I think that we need to acknowledge that behavior is
31:29
Speaker 3: an issue that can be helpful in stopping it. And yeah,
31:32
Speaker 3: That's where I'm at. Also, stress, like, you don't need
31:35
Speaker 3: to stress about money. Life is already hard enough. We
31:38
Speaker 3: know that money is the largest stressor of Australian employees,
31:43
Speaker 3: which is crazy and completely anticipated from my perspective. So
31:48
Speaker 3: rather than acknowledging an issue and leaving our heads buried
31:50
Speaker 3: in the sands, like we can create the life that
31:52
Speaker 3: we want and stop stressing about money, even if it
31:54
Speaker 3: means that we are less stressed about money because we're
31:57
Speaker 3: just talking about it. Like, we might not be able
31:59
Speaker 3: to change our financial situation right now, but a problem
32:02
Speaker 3: shared is a problem halved.
32:03
Speaker 2: My friends well said, they're v Now, before we do
32:07
Speaker 2: head off for today, can you please leave us with
32:10
Speaker 2: some final words of wisdom For anyone who's listening, who
32:13
Speaker 2: has related to any and or all of the bad
32:17
Speaker 2: habits that we've mentioned here, what would you like to
32:19
Speaker 2: leave them with?
32:21
Speaker 3: I think we need to understand that we can make small,
32:24
Speaker 3: sustainable changes that impact our stress levels and our lives
32:28
Speaker 3: on a really, really deep level. And I would use
32:30
Speaker 3: the quote from little things Big Things Grow, but I
32:33
Speaker 3: use that too much, so I'm not going to use that,
32:34
Speaker 3: And I'm just going to say that talking about it
32:37
Speaker 3: and sharing problems and sharing just conversation about money can
32:41
Speaker 3: actually make that weight feel a little less heavy, and
32:45
Speaker 3: especially after the year that we had last year, which
32:47
Speaker 3: I think weighed really heavily on other people. We just
32:50
Speaker 3: don't need to add to that, like, let's just be
32:52
Speaker 3: kind to ourselves. It's Valentine's Day and I think that's
32:55
Speaker 3: just about showing yourself a lot of self love.
32:57
Speaker 2: Well said Vicki D Just before.
33:00
Speaker 3: We head off, we'd like to acknowledge and pay respects
33:03
Speaker 3: to Australia's Aboriginal and torri Straight Islander people's, the traditional
33:07
Speaker 3: custodians of the lands, the waterways and the skies all
33:10
Speaker 3: across Australia. We thank you for sharing and for caring
33:13
Speaker 3: on the land which we are able to learn. We
33:15
Speaker 3: pay our respects to elders past and present, and we
33:18
Speaker 3: share our friendship and our kindness.
33:21
Speaker 2: And please remember that the advice sheared on She's on
33:24
Speaker 2: the Money is general in nature and does not consider
33:26
Speaker 2: your individual circumstances. She's on the Money exists purely for
33:30
Speaker 2: educational purposes and should not be relied upon to make
33:33
Speaker 2: an investment or a financial decision.
33:36
Speaker 3: Educational and meet for sure, we're funny funny gal ariy
33:42
Speaker 3: on media rap.
33:42
Speaker 2: We promise that Victoria Divine is an authorized representative of
33:46
Speaker 2: Australia Pacific Funds Management Proprietary Limited ABN three four one
33:50
Speaker 2: through two four six, three two two five seven FSL
33:54
Speaker 2: three through nine one five one and big thanks to
33:58
Speaker 2: Ryan Beck and Jess our producer does so pling it
34:01
Speaker 2: all together.
34:02
Speaker 3: They are actual wizards. They are pressed with them. Honestly,
34:05
Speaker 3: She's in the money. Would not happen without any of them,
34:08
Speaker 3: which is kind of stands no longer just us tweaking.
34:11
Speaker 2: We need them, We need the crew. Ye imagine us
34:13
Speaker 2: trying to edit.
34:14
Speaker 3: Oh my gosh, we don't even hot mess when we
34:18
Speaker 3: try to podcast on our own right now, guys, we
34:21
Speaker 3: do have two producers sitting with us. When we podcast
34:24
Speaker 3: on our own at my house, we end up with
34:25
Speaker 3: a bottle of red.
34:26
Speaker 2: That was fun.
34:27
Speaker 3: We need to be controlled anyway, See you next week, guys.
34:32
Speaker 2: Bye, guys,