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Investing in your 20s, 30s, and 40s: Tips for Each Lifestage · She's On The Money

• 0:00
  Speaker 1: She's on the Money.
• 0:02
  Speaker 2: She's on the Money. My name's Tatasha Bamblet.
• 0:11
  Speaker 3: I'm a proud First Nations woman, and I'm here to
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  Speaker 3: acknowledge country. Hello, beautiful friends, we gather on the lands
• 0:17
  Speaker 3: of the Aboriginal people. We thank acknowledge and respect the
• 0:20
  Speaker 3: Aboriginal people's land that we're gathering on today. Take pleasure
• 0:22
  Speaker 3: in all the land and respect all that you see.
• 0:25
  Speaker 3: She's on the Money podcast acknowledges culture, country, community and connections,
• 0:29
  Speaker 3: bringing you the tools, knowledge and resources for you to thrive.
• 0:32
  Speaker 2: Hello, friends, and welcome to another deep diver edition of
• 0:35
  Speaker 2: She's on the Money, the podcast that helps you feel
• 0:38
  Speaker 2: more in control of your financial future, no matter your
• 0:40
  Speaker 2: age or life stage. Now, because we're no strangers to investing,
• 0:45
  Speaker 2: we're constantly on the lookout for ways to help you
• 0:48
  Speaker 2: learn more and become more confident in your own personal
• 0:51
  Speaker 2: investing journeys. But we're not all listeners at the same stage,
• 0:56
  Speaker 2: so our research and recommendations need to adapt accordingly. Right
• 1:00
  Speaker 2: fair cool, I am Victoria Divine. Today Beck and I
• 1:03
  Speaker 2: will be sharing investment strategies for people in their twenties, thirties,
• 1:07
  Speaker 2: forties and beyond. Because if we've learned anything, my friend,
• 1:10
  Speaker 2: it's all about when you start. Miss Bech sayed, welcome
• 1:15
  Speaker 2: back to a Deep Dive episode.
• 1:17
  Speaker 1: Thank you so much for having me.
• 1:18
  Speaker 2: I'm just grateful to have you. I feel like I'm
• 1:21
  Speaker 2: just I just love doing episodes with you because you
• 1:24
  Speaker 2: are just I don't know, sunshine. Oh you're so fun
• 1:28
  Speaker 2: like you.
• 1:29
  Speaker 1: They is so cut, you are so fun.
• 1:31
  Speaker 2: We just love each other so like we just want
• 1:33
  Speaker 2: to do investing content together through.
• 1:35
  Speaker 1: I really do like this the idea of this episode
• 1:38
  Speaker 1: because I think that, like, you know, I'm in my thirties,
• 1:40
  Speaker 1: you're in your thirties, Like there are people that are
• 1:42
  Speaker 1: listening that are beyond you know, forties, fifties, sixties, and
• 1:45
  Speaker 1: they're like, oh damn, it's too late. But it's not
• 1:47
  Speaker 1: necessarily too late.
• 1:48
  Speaker 2: Never too late, Beck, it is never too late. Like
• 1:50
  Speaker 2: even if you're like a year before retiring, like, there's
• 1:53
  Speaker 2: always benefit in looking at your financial position and trying
• 1:58
  Speaker 2: to better it.
• 1:58
  Speaker 1: Absolutely. There's that saying that best hundred plant a tree
• 2:02
  Speaker 1: is one hundred years ago. The second best time is.
• 2:04
  Speaker 2: Right now exactly, and you would have had a really
• 2:06
  Speaker 2: good tree if you've planted it one hundred years ago.
• 2:08
  Speaker 1: Souly, and you're about to have a really good tree
• 2:10
  Speaker 1: because you're planting it right now.
• 2:11
  Speaker 2: I think you've nailed it, Beck, and we will soon
• 2:14
  Speaker 2: explain exactly how you might set yourself up depending on
• 2:17
  Speaker 2: your age bracket, to show the impact of investing on
• 2:20
  Speaker 2: your personal wealth goals. But before Beck and I do,
• 2:23
  Speaker 2: we're going to take a really quick t break. All right, Beck,
• 2:30
  Speaker 2: we are back and I am excited. It is time
• 2:33
  Speaker 2: for us to get our ducks in a row. No
• 2:36
  Speaker 2: matter how old you are, there are actually a few
• 2:38
  Speaker 2: things that you need to have sorted before you buy
• 2:40
  Speaker 2: your first share, Beck, can you guess what they might be?
• 2:43
  Speaker 1: I have a feeling is it something to do with
• 2:45
  Speaker 1: setting up an emergency fund or paying down debt?
• 2:47
  Speaker 2: Maybe goal it is always about paying down debt with
• 2:50
  Speaker 2: it and setting up an emergency fund. I was having
• 2:53
  Speaker 2: this conversation the other day to a friend. I was like,
• 2:56
  Speaker 2: I feel like I am so gentle or I hope
• 2:59
  Speaker 2: to be so genero with the She's on the money community,
• 3:01
  Speaker 2: because I genuinely I don't care what your wealth goals are.
• 3:04
  Speaker 2: I just want to make sure that you have all
• 3:05
  Speaker 2: of the tools and all of the resources that you
• 3:07
  Speaker 2: deserve to put yourself in the best possible position. But
• 3:10
  Speaker 2: I also feel like recently, in the middle of the
• 3:13
  Speaker 2: cost of living crisis, watching all this SpaceX stuff happen,
• 3:16
  Speaker 2: watching you know, essentially the economy perform in a way
• 3:20
  Speaker 2: that's not putting us all in the best possible position.
• 3:23
  Speaker 2: I feel like I need to be more aggressive, like
• 3:26
  Speaker 2: in a positive, like big sister way, not in a
• 3:28
  Speaker 2: like we're mates way, but like want you to get
• 3:31
  Speaker 2: your together so that you can be in the best
• 3:33
  Speaker 2: possible position. And I just think that in today's economy,
• 3:40
  Speaker 2: it is so irresponsible to not have an emergency fund, Okay,
• 3:45
  Speaker 2: to not put yourself in the best possible position, like
• 3:47
  Speaker 2: you are literally stealing from future you, Like, I want
• 3:51
  Speaker 2: you to be in the best possible position. It's not
• 3:53
  Speaker 2: because I'm like, oh, that is so irresponsible, Like I
• 3:56
  Speaker 2: want you to live, love, laugh, But I also want
• 3:58
  Speaker 2: you to have five hundred stash for an emergency because
• 4:02
  Speaker 2: you deserve that, don't you, Like you deserve to get
• 4:05
  Speaker 2: out of any circumstances or situation or position you don't
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  Speaker 2: want to be in, Like you don't deserve to go
• 4:11
  Speaker 2: into debt, Like, yeah, I need to be aggressive about
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  Speaker 2: this because I feel like so many people are just
• 4:16
  Speaker 2: going I just do what I want, and I'm like, yeah,
• 4:19
  Speaker 2: pop off, queen, but like, do what future you wants too,
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  Speaker 2: and future you wants to feel secure.
• 4:25
  Speaker 1: Hmmmm. No, that's very true. That's a really good I
• 4:29
  Speaker 1: really like your outlook on that because it's like you
• 4:31
  Speaker 1: could be wanting to do whatever. You might just be like, oh,
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  Speaker 1: I just want to be able to buy Tim Tams
• 4:35
  Speaker 1: on a Friday, But oh, I get it. Emergency fund,
• 4:38
  Speaker 1: you will always be able to buy Tim Tams on a.
• 4:40
  Speaker 2: Friday, exactly. And I just think that before we start
• 4:44
  Speaker 2: investing your money anywhere, we just need to get our
• 4:47
  Speaker 2: house in order because it can be so exciting. Like
• 4:49
  Speaker 2: if you're listening to this episode, you're like, oh thee
• 4:52
  Speaker 2: this one's for me because like, I'm in my forties,
• 4:55
  Speaker 2: I haven't started investing yet and I really want to.
• 4:58
  Speaker 2: But you have some personal debt. It's not sexy, is it? Like,
• 5:01
  Speaker 2: it's not I get it. But we need to focus
• 5:04
  Speaker 2: on getting rid of that personal debt because that's actually
• 5:06
  Speaker 2: the best investment you can make. Like, if you have debt,
• 5:09
  Speaker 2: you have a high interest rate that you are guaranteed
• 5:11
  Speaker 2: to have to pay. Yeah, getting rid of that means
• 5:14
  Speaker 2: that you're not going to have to pay it. Getting
• 5:16
  Speaker 2: rid of that means we're setting up savings habits that
• 5:19
  Speaker 2: can then fold into investing habits. So that means we
• 5:23
  Speaker 2: are consolidating any bad debt and we are tackling it
• 5:26
  Speaker 2: head on. You know, any buy now, pay later, set ups,
• 5:30
  Speaker 2: any credit cards, any high interest loans that might be
• 5:32
  Speaker 2: interfering with your contributing power, Like we're caring about that.
• 5:36
  Speaker 2: We are tackling that first. And if this is a
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  Speaker 2: really big thing for you, queen, I get it. I
• 5:41
  Speaker 2: didn't get myself into forty thousand dollars worth of personal
• 5:44
  Speaker 2: debt just for fun. I did it because I was
• 5:48
  Speaker 2: just like you. And now I've pulled myself out. I'm like, oh,
• 5:52
  Speaker 2: I can see the lights, but like sometimes when you're
• 5:54
  Speaker 2: in debt, you cannot see the light and you need
• 5:56
  Speaker 2: a friend to be like becka promise. This is a
• 5:59
  Speaker 2: hard slog, but gets better, but she's on the money.
• 6:03
  Speaker 2: We have a whole heap of budget templates, we have
• 6:06
  Speaker 2: a whole heap of episodes on getting out of debt.
• 6:08
  Speaker 2: We have a whole heap of resources that are free
• 6:10
  Speaker 2: on our website, because Becky would never charge you to
• 6:13
  Speaker 2: help you get out of debt.
• 6:15
  Speaker 1: I love that, but.
• 6:15
  Speaker 2: I'll make sure that I include them in the show
• 6:17
  Speaker 2: notes for you. So it does involve you setting up
• 6:21
  Speaker 2: an emergency fund. I don't know your circumstances.
• 6:23
  Speaker 1: If you're in your.
• 6:24
  Speaker 2: Twenties and you still live with your parents and you
• 6:26
  Speaker 2: don't have to pay rent or board pop off, your
• 6:29
  Speaker 2: emergency fund might actually just be five hundred bucks to
• 6:32
  Speaker 2: the side because you don't have emergency expenses. But if
• 6:36
  Speaker 2: you're in your forties and you have two teenage kids,
• 6:39
  Speaker 2: that's going to look a little bit different. And then
• 6:41
  Speaker 2: what an emergency fund looks like to you is going
• 6:44
  Speaker 2: to be a little bit healthier, right, Like you're going
• 6:47
  Speaker 2: to need a little bit more than five hundred dollars.
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  Speaker 2: So I want you to set up an emergency fund
• 6:52
  Speaker 2: so that you can still afford a decent quality of
• 6:55
  Speaker 2: living if you get sick, or if you need to
• 6:57
  Speaker 2: take some time off work, or if you become injured
• 6:59
  Speaker 2: or suddenly unemployed. That's happening to all our friends at
• 7:02
  Speaker 2: the moment.
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  Speaker 1: Beck Yeah, that's so true, Like.
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  Speaker 2: So many of our friends are becoming suddenly unemployed. They
• 7:07
  Speaker 2: didn't see it coming. It's not because of their talent,
• 7:10
  Speaker 2: it's not because of how smart they are. It's the
• 7:13
  Speaker 2: nature of work at the moment. I feel like redundancies
• 7:16
  Speaker 2: are everywhere and you just can't predict them.
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  Speaker 1: It's so true.
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  Speaker 2: And think about it. If you can't bet afford to
• 7:22
  Speaker 2: pay rent or buy basic groceries, maybe investing isn't actually
• 7:27
  Speaker 2: right for you right now. And I mean that in
• 7:30
  Speaker 2: the kindest of ways. I do want you to stay
• 7:32
  Speaker 2: for the episode. I do want you to learn, because
• 7:35
  Speaker 2: the second you have your emergency fund and the second
• 7:37
  Speaker 2: you're able to do those things, we can start investing.
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  Speaker 2: And you don't even have to do the education part
• 7:43
  Speaker 2: because you already did it, Like you're already like finger
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  Speaker 2: on the pulse, you are ready to go, like you
• 7:47
  Speaker 2: are set up. Just because you're not investing doesn't mean
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  Speaker 2: you're not on your investing journey right like we are
• 7:52
  Speaker 2: on the education section of the journey. Anyway, I think
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  Speaker 2: it's really important that you get your baseline budget and
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  Speaker 2: your emergency fund going, and then you and I can
• 8:03
  Speaker 2: talk about your actual investment portfolio what you're allowed to
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  Speaker 2: invest in. But like, yeah, being your best friend, Like,
• 8:10
  Speaker 2: I want to be the best friend that you've got.
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  Speaker 2: I care so deeply about you, genuinely, I feel like
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  Speaker 2: I do need to up the ante on how aggressively
• 8:20
  Speaker 2: I believe that you need your emergency fund. Yeah, because like,
• 8:24
  Speaker 2: it's not me going you're doing the wrong thing, it's
• 8:27
  Speaker 2: me going back put future you first.
• 8:29
  Speaker 1: Please?
• 8:30
  Speaker 2: She deserves that, Yeah, for sure, and you do right, Like,
• 8:33
  Speaker 2: if I ask you just future you deserve to be
• 8:36
  Speaker 2: financially comfortable. Yeah, heck yes, she does exactly. And it
• 8:42
  Speaker 2: doesn't feel good in the moment when you're like, but
• 8:44
  Speaker 2: I wanted to invest or, I wanted to go on
• 8:46
  Speaker 2: a holiday, for sure. No, queen, that's not what we're doing.
• 8:49
  Speaker 1: Okay, what do I things like savings? Your savings become
• 8:52
  Speaker 1: your investment contributions or should you divvy it up? How
• 8:55
  Speaker 1: do you approach it?
• 8:56
  Speaker 2: Okay? So this depends on your money goals personally. So
• 8:58
  Speaker 2: maybe you're saving for like house deposit and you still
• 9:01
  Speaker 2: really want to dabble in investing on the side, or
• 9:04
  Speaker 2: maybe your goal is to invest aggressively and retire really early.
• 9:08
  Speaker 2: So depending on what your plan is, you might choose
• 9:10
  Speaker 2: to set up automations that make contributions as soon as
• 9:13
  Speaker 2: you get paid, so that you aren't hesitating with what's
• 9:16
  Speaker 2: left around your day to day expenses. So some people,
• 9:19
  Speaker 2: and this doesn't work for everybody, but some people aim
• 9:22
  Speaker 2: to invest twenty percent of their income, while others only
• 9:25
  Speaker 2: contribute what they can paycheck to paycheck. Like some months
• 9:29
  Speaker 2: it might be like five bucks. Some months you might
• 9:30
  Speaker 2: be like, oh, I've got some tax back. I've got
• 9:32
  Speaker 2: a couple of hundred bucks. So you might also want
• 9:35
  Speaker 2: to split up all of your accounts so that savings
• 9:38
  Speaker 2: and your contributions are separate. Now, our team has created
• 9:42
  Speaker 2: an investing playlist to help you explore the different ways
• 9:44
  Speaker 2: that you're able to do this as well. Because there's
• 9:46
  Speaker 2: no right or wrong answer. All right, beck, Let's say
• 9:49
  Speaker 2: that you've got your ducks in a row, and you've
• 9:52
  Speaker 2: got your you've got your emergency fund. You know, you
• 9:55
  Speaker 2: have a really good finger on the pulse around your budget,
• 9:58
  Speaker 2: like you've got it together. I'm going to give you
• 10:00
  Speaker 2: an idea of how much each age group will need
• 10:04
  Speaker 2: to invest every single month in order to reach an
• 10:08
  Speaker 2: investment portfolio of one million dollars.
• 10:11
  Speaker 1: Okay, cool.
• 10:12
  Speaker 2: I'm also going to explain how things like returns so
• 10:15
  Speaker 2: like the success of various shares or ETFs, and inflation
• 10:18
  Speaker 2: might impact this over time. Okay, I have picked a
• 10:22
  Speaker 2: million dollars. Sure it's a really round number. If you
• 10:27
  Speaker 2: zoom out a little bit and look at Australian statistics,
• 10:30
  Speaker 2: you do not need a million dollars to retire. I
• 10:35
  Speaker 2: think that you would retire incredibly comfortably if you had
• 10:38
  Speaker 2: a million dollars. And every single person in my community
• 10:43
  Speaker 2: has the ability, I promise you to create an investment
• 10:47
  Speaker 2: portfolio that supports them in retirement. Yes, okay, we have
• 10:51
  Speaker 2: the ability to financially put ourselves first. It does involve
• 10:55
  Speaker 2: pulling your finger out and getting some stuff done, though.
• 10:57
  Speaker 1: Sure, sure, sure it does. This is very motivating, say
• 11:00
  Speaker 1: so because we know the inflation affects the purchasing power
• 11:03
  Speaker 1: of your money and that what costs a million dollars
• 11:06
  Speaker 1: today might cost you way more in say a decade
• 11:09
  Speaker 1: or so. I guess it means like one million dollars now,
• 11:12
  Speaker 1: just hypothetically. It probably probably changes a little bit if
• 11:16
  Speaker 1: you are renting versus don't have to pay mortgage anymore,
• 11:19
  Speaker 1: et cetera, et cetera. But yeah, it's a nice round number,
• 11:22
  Speaker 1: and we're gonna just.
• 11:23
  Speaker 2: Assume you know, when you're like, if I picked like
• 11:26
  Speaker 2: six hundred thousand dollars, the numbers don't become as round
• 11:29
  Speaker 2: and easy to like kind of stick in your brain.
• 11:32
  Speaker 2: And I don't want people to think, oh my gosh,
• 11:34
  Speaker 2: Victoria is so out of touch. She thinks I can
• 11:37
  Speaker 2: create a million dollar portfolio, like you can do? You
• 11:40
  Speaker 2: know what you can? Like Beck, boys have done it. Absolutely,
• 11:44
  Speaker 2: don't get me wrong. There is a lot standing in
• 11:47
  Speaker 2: your way.
• 11:47
  Speaker 1: Do you think I could?
• 11:48
  Speaker 2: Absolutely you could. I do not, Beck. I do not
• 11:51
  Speaker 2: say why you could not do that? Yeah, Like it
• 11:54
  Speaker 2: actually comes down to you committing to it though, And
• 11:57
  Speaker 2: that is the hardest friggin thing. Yeah, because like life happens,
• 12:01
  Speaker 2: and short term gratification versus delayed gratification is so hard
• 12:06
  Speaker 2: and it's something that I have had to learn the
• 12:08
  Speaker 2: hard way. But like one thing I am good at
• 12:11
  Speaker 2: and I know is really hard, especially living in twenty
• 12:14
  Speaker 2: twenty six, is I am good at sacrificing something smaller
• 12:18
  Speaker 2: now because I know that I'll have a bigger, better
• 12:21
  Speaker 2: one later, Whereas a lot of people would much prefer
• 12:26
  Speaker 2: to go. I can't be bothered let's not think about
• 12:28
  Speaker 2: the bigger thing. I'm going to shut that part of
• 12:30
  Speaker 2: my brain out. I don't care. Sure, I really want
• 12:33
  Speaker 2: the smaller thing right now because it gives me that
• 12:35
  Speaker 2: dopamine hit. And that cycle is so freaking hard to break.
• 12:40
  Speaker 2: But you can break it. You've got to want it
• 12:43
  Speaker 2: enough though. Yeah, Like, it doesn't come down to, oh,
• 12:46
  Speaker 2: you need a better paying job, It doesn't come down
• 12:48
  Speaker 2: to any of that. It comes down to your commitment
• 12:51
  Speaker 2: to a goal. Some of my richest clients when I
• 12:54
  Speaker 2: was a financial advisor had day to day jobs that
• 12:58
  Speaker 2: were not, you know, arguably impressive, right, And I'm not
• 13:02
  Speaker 2: saying that in a bad way, but I think that
• 13:04
  Speaker 2: there's this still stereotype and misconception that to have a
• 13:09
  Speaker 2: million dollars invested you need to be earning big dog money.
• 13:13
  Speaker 1: Sure you don't.
• 13:14
  Speaker 2: You just need to be consistent.
• 13:16
  Speaker 1: Yeah, absolutely. And if you're like listening to this in
• 13:18
  Speaker 1: your living paycheck to paycheck as m I got, damn,
• 13:21
  Speaker 1: but I would. I was just putting five dollars away
• 13:24
  Speaker 1: and it was just like uneven, intentional. So maybe not
• 13:27
  Speaker 1: all of this right now applies. But once you get
• 13:30
  Speaker 1: yourself into a position where you got your emergency f
• 13:31
  Speaker 1: on going.
• 13:33
  Speaker 2: Everyone everyone can do it. I just feel so like
• 13:35
  Speaker 2: every how it fall into it, and I just it
• 13:37
  Speaker 2: breaks my heart that so many people just don't have
• 13:41
  Speaker 2: the belief in themselves that they can or that it's
• 13:44
  Speaker 2: for them, or you know, if you've grown up in
• 13:47
  Speaker 2: a situation where generational trauma exists, like and generational financial
• 13:52
  Speaker 2: trauma exists, it's really hard to get out of that.
• 13:55
  Speaker 1: It really is.
• 13:56
  Speaker 2: And if you're listening to this podcast, it's because you
• 13:58
  Speaker 2: want to break that so bad. And it makes sense
• 14:01
  Speaker 2: that you slip into old habits because you know what
• 14:02
  Speaker 2: old habits are beck old comfortable, Yes, comfortable, they're like
• 14:07
  Speaker 2: your track is that you can just trust. Like how
• 14:09
  Speaker 2: many times, and I don't know if you've done this,
• 14:11
  Speaker 2: but how many times you've been shopping and you go, oh,
• 14:14
  Speaker 2: those pants are really nice. I'm going to get so
• 14:16
  Speaker 2: much wear out of them. You buy a new pair
• 14:18
  Speaker 2: of pants, then you go home and you change straight
• 14:20
  Speaker 2: into your old daggy TRACKI dacks that probably have a
• 14:24
  Speaker 2: hole in them because you're comfying, you know how they
• 14:28
  Speaker 2: perform the waistband it doesn't cut in, whereas the new
• 14:31
  Speaker 2: ones you just don't reach for them as much. They
• 14:33
  Speaker 2: might be just as nice. They haven't been broken in,
• 14:36
  Speaker 2: have they?
• 14:37
  Speaker 1: Absolutely, you don't feel.
• 14:38
  Speaker 2: Comfy in it. No, change is uncomfortable.
• 14:42
  Speaker 1: Let's do it.
• 14:43
  Speaker 2: But the new pair of jeans, they might be a
• 14:45
  Speaker 2: little bit stiff right now, but if you're tenacious, they
• 14:48
  Speaker 2: might become the best pair of pants you've ever worn.
• 14:50
  Speaker 1: So true, hang in there, hang in there, right, okay,
• 14:53
  Speaker 1: let's get into it all right.
• 14:54
  Speaker 2: I'm going to start with investing in your twenties. So
• 14:58
  Speaker 2: what is BECK? Your greatest asset can beare to all
• 15:00
  Speaker 2: other age groups if you are twenty.
• 15:02
  Speaker 1: I guess it is time.
• 15:07
  Speaker 2: Yeah, you're young and dem young and dumb. No, no,
• 15:10
  Speaker 2: it is just time. You're not young and dumb, you're
• 15:13
  Speaker 2: just young. Yeah, but time time is on your side,
• 15:17
  Speaker 2: and with things like compound interest, your investments can absolutely
• 15:21
  Speaker 2: take off, especially BECK. If you know, touchy, yeah, okay,
• 15:26
  Speaker 2: leave it. If you don't touch it, sure, touch it
• 15:29
  Speaker 2: can't help you. But according to the Financial Review, based
• 15:32
  Speaker 2: on a current average return, and I love to use
• 15:35
  Speaker 2: numbers that are a little bit lower. And I also
• 15:38
  Speaker 2: love to use inconsistent numbers to give you examples, because
• 15:41
  Speaker 2: everything that I say in this is just an example.
• 15:44
  Speaker 2: It is not a specific ETF or product or share
• 15:46
  Speaker 2: that I'm referring to. It's just an example. So like,
• 15:51
  Speaker 2: I feel like I need to caveat this because I
• 15:53
  Speaker 2: don't want to be giving you financial advice. I want
• 15:55
  Speaker 2: you to be just getting some information that puts you
• 15:57
  Speaker 2: in the best possible position. But since inception of the
• 16:01
  Speaker 2: Australian share market, the average rate of return overall has
• 16:05
  Speaker 2: been thirteen percent. Okay, I would never use that as
• 16:09
  Speaker 2: an example because I'd prefer to underpromise over deliver.
• 16:13
  Speaker 1: Yes, absolutely, I agree, and I want.
• 16:15
  Speaker 2: That for your portfolio. So we don't expect thirteen percent.
• 16:18
  Speaker 2: We never would because time it just doesn't work that way.
• 16:22
  Speaker 2: But today we're going to use the average rate of
• 16:24
  Speaker 2: return of seven percent, which feels a little bit more conservative.
• 16:28
  Speaker 2: And if we look at all the ETFs and all
• 16:30
  Speaker 2: of the shares on the market, that's not unrealistic as
• 16:34
  Speaker 2: an example, So I would say that's a pretty conservative
• 16:37
  Speaker 2: reflection of how well Australian shares or ETFs are performing
• 16:40
  Speaker 2: adjusted for inflation. So if Beck you invested two hundred
• 16:47
  Speaker 2: and sixty two dollars per month sure from the age
• 16:50
  Speaker 2: of twenty years old, you would be expected to reach
• 16:54
  Speaker 2: one million dollars in your portfolio by the time you
• 16:57
  Speaker 2: reach the age of sixty five.
• 16:59
  Speaker 1: Okay, okay, okay, that seems like that seems doable. It's
• 17:04
  Speaker 1: obviously hard right now, especially in the cost of living crisis.
• 17:07
  Speaker 2: But it's going to get harder. I promise going to
• 17:09
  Speaker 2: get hard. These are just examples because the older you get,
• 17:13
  Speaker 2: the less time you have, which means the more money
• 17:14
  Speaker 2: you need to contribute, which is why I am so
• 17:17
  Speaker 2: aggressive without going If you can start young and early,
• 17:21
  Speaker 2: you're going to just be able to commit to two
• 17:23
  Speaker 2: hundred and sixty two dollars every month compared to someone
• 17:26
  Speaker 2: in their forties who is genuinely going to have to
• 17:29
  Speaker 2: contribute more to achieve exactly the same goal. Sure, and
• 17:31
  Speaker 2: that's harder, Rit, Like the second you get to the
• 17:34
  Speaker 2: age of forty, life is a bit different to being twenty. Yeah,
• 17:37
  Speaker 2: like you're I don't know about you, Beck, but when
• 17:40
  Speaker 2: I was twenty, I was at university. A good night
• 17:43
  Speaker 2: out for me was dumplings in Chinatown split between my
• 17:47
  Speaker 2: mates byo bottle of wine. Like I was all for
• 17:51
  Speaker 2: cheap thrills. Yeah, like love it. Yeah, I didn't have
• 17:54
  Speaker 2: a lot of financial responsibility. Sure, I didn't have kids,
• 17:57
  Speaker 2: I didn't have a husband, I didn't have a mortgage,
• 17:59
  Speaker 2: I didn't have you know, I had the desire to travel,
• 18:03
  Speaker 2: but my travel goals were backpacker vibes.
• 18:06
  Speaker 4: Yeah.
• 18:07
  Speaker 2: But now I'm sadly closer to forty than I am twenty.
• 18:11
  Speaker 2: I have two kids, I have a mortgage, I have
• 18:14
  Speaker 2: a lifestyle that I've created with my husband that I
• 18:16
  Speaker 2: don't want to compromise. Finding an amount of money that is,
• 18:21
  Speaker 2: you know, relatively significant in my budget is much harder today,
• 18:24
  Speaker 2: Like finding that money is harder. But if I got
• 18:26
  Speaker 2: a twenty year old. And don't get me wrong, I'm
• 18:29
  Speaker 2: not saying that this is easy to just find two
• 18:31
  Speaker 2: hundred and sixty two dollars every single month. Yeah, but
• 18:34
  Speaker 2: I promise if you want it hard enough, you will
• 18:36
  Speaker 2: do it. You will find it anyway. Thanks to things
• 18:40
  Speaker 2: like compound interest, your contributions earn a profit based on
• 18:44
  Speaker 2: the performance of the market, and then those profits continue
• 18:47
  Speaker 2: to earn a profit the longer that you leave them there.
• 18:50
  Speaker 2: So the money that your money makes ends up making
• 18:52
  Speaker 2: money beck And that is sexy because that's the free
• 18:54
  Speaker 2: money making more free money.
• 18:55
  Speaker 1: Hell yeah, we love free money.
• 18:57
  Speaker 2: We love free money. Of course, if you're investing in
• 18:59
  Speaker 2: America Shares or ETFs, this figure might actually be a
• 19:02
  Speaker 2: lot higher depending on returns. But let's just keep things
• 19:05
  Speaker 2: local for now.
• 19:06
  Speaker 1: Good idea. Okay, So not sure how true this is
• 19:09
  Speaker 1: for our listeners, but when I was twenty, I'd be
• 19:11
  Speaker 1: lucky to even have like twenty bucks left over at
• 19:13
  Speaker 1: the end of the month, totally with the cost of rent, grocers, bills, petrol.
• 19:17
  Speaker 1: I did have hexset, although I didn't really ever finish anything.
• 19:21
  Speaker 1: And then also like fun money if I ever had
• 19:23
  Speaker 1: any of that leftover. So what can people do to
• 19:26
  Speaker 1: make this more achievable?
• 19:28
  Speaker 2: There's obviously a lot in it, And as I said before,
• 19:32
  Speaker 2: you have to want this. Yeah, Like it's not me going,
• 19:36
  Speaker 2: oh it just happens so easily. It doesn't. This stuff
• 19:40
  Speaker 2: takes work, and that's why it's so hard. Like if
• 19:43
  Speaker 2: I said to you, find two hundred and sixty two
• 19:45
  Speaker 2: dollars back every single month, you'd be like, Okay, I'm
• 19:47
  Speaker 2: gonna have to like shift a lot around. But first
• 19:50
  Speaker 2: things first, we're going to work out our budget. How
• 19:52
  Speaker 2: much are you spending on essentials? Like your rent and
• 19:54
  Speaker 2: your bills, and how much is left for saving and investing.
• 19:58
  Speaker 2: Then I want you to assess whether they're room here
• 20:00
  Speaker 2: to meet your personal investing goals. So maybe you don't
• 20:04
  Speaker 2: actually care about getting a million dollars by sixty five,
• 20:06
  Speaker 2: because as I said, that was just a good example. Sure,
• 20:09
  Speaker 2: and we're defaulting to that for this episode. Maybe you're
• 20:12
  Speaker 2: investing for other reasons in case your contributions might be
• 20:15
  Speaker 2: like less, like you might only need one hundred or
• 20:18
  Speaker 2: only need fifty. So if you haven't already explore your options,
• 20:23
  Speaker 2: find a high interest rate savings account. The second thing
• 20:26
  Speaker 2: I would do superannuation, Babe, it is slept on. I
• 20:31
  Speaker 2: can guarantee that most people listening to this episode have
• 20:35
  Speaker 2: not checked their SUPER this month. Yeah, and that's normal.
• 20:39
  Speaker 2: Can we change that? Can we look at our super?
• 20:41
  Speaker 2: Because do you know what that is?
• 20:42
  Speaker 4: Beck?
• 20:43
  Speaker 2: It is twelve percent of your income paid into if
• 20:46
  Speaker 2: you're a PAYG employer, paid into a fund that is
• 20:51
  Speaker 2: completely controllable by you. That is money put aside for
• 20:54
  Speaker 2: your future.
• 20:55
  Speaker 4: Beck.
• 20:55
  Speaker 2: Are you saving twelve percent of your income right now?
• 20:58
  Speaker 1: I think so? Outside of outside of it, God no.
• 21:04
  Speaker 2: No, But you are in SUPER and that money is
• 21:06
  Speaker 2: invested for you for your future. Yeah, beg, you're investing
• 21:10
  Speaker 2: every single month more than two hundred and sixty two dollars,
• 21:12
  Speaker 2: are you not?
• 21:13
  Speaker 1: Oh?
• 21:14
  Speaker 2: Oh my god, but you're not checking on it. No,
• 21:17
  Speaker 2: that's crazy, my queen.
• 21:18
  Speaker 1: What Yeah, that's wild.
• 21:20
  Speaker 2: Like we need to care about this, like we need
• 21:22
  Speaker 2: to care about our money. Like also from July twenty
• 21:25
  Speaker 2: twenty six, so like literally right now, employers legally had
• 21:30
  Speaker 2: to make sure that your superannuation hits your account within
• 21:33
  Speaker 2: seven days of your paycheck rather than quarterly.
• 21:35
  Speaker 1: That's great.
• 21:36
  Speaker 2: Yeah, more money more often means it's getting into the
• 21:39
  Speaker 2: market more consistently, which means you're going to get better returns.
• 21:42
  Speaker 2: Oh yeah, money win for everyone. Then you need to
• 21:46
  Speaker 2: confirm how your super is being invested. Are you in
• 21:48
  Speaker 2: a high growth option? You might not know if you
• 21:52
  Speaker 2: don't go and check. My friend, is it aligned to
• 21:55
  Speaker 2: your wealth goals? Do you actually like the fund that
• 21:57
  Speaker 2: you're in? If not, change it?
• 22:00
  Speaker 1: Yeah.
• 22:00
  Speaker 2: And the next thing we could do is salary sacrificing,
• 22:04
  Speaker 2: So you could potentially be making contributions on top of
• 22:08
  Speaker 2: your employer's mandatory twelve percent, and arguably that is the
• 22:12
  Speaker 2: biggest tax hack in Australia and the closest thing to
• 22:17
  Speaker 2: a tax haven because like the tax rate inside supranuation,
• 22:21
  Speaker 2: it sits at fifteen percent and the average seese on
• 22:25
  Speaker 2: the money listener is paying thirty percent in tax.
• 22:28
  Speaker 1: Yes.
• 22:28
  Speaker 2: Yes, so immediately you're getting fifteen percent back if you
• 22:31
  Speaker 2: used super Yes, not saying that that's a good idea,
• 22:35
  Speaker 2: but because you're only tax fifteen percent on contributions versus
• 22:40
  Speaker 2: your marginal tax bracket, you might get better returns inside
• 22:44
  Speaker 2: your superranuation than you would if you were to invest
• 22:46
  Speaker 2: it on your platform.
• 22:48
  Speaker 1: That is a great piece of advice.
• 22:50
  Speaker 2: Being careful though, because you know that if you contribute
• 22:54
  Speaker 2: to superanuation, you can't touch it until retirement. And then
• 22:58
  Speaker 2: there's that conversation around Like for me personally, my wealth
• 23:01
  Speaker 2: goals Beck want to retire early. Yeah, I want to
• 23:05
  Speaker 2: retire before sixty five. Like girl. If I'm not ready
• 23:08
  Speaker 2: to retire by the age of fifty, I have gone wrong.
• 23:12
  Speaker 2: I've done something wrong. But to be able to retire
• 23:15
  Speaker 2: at fifty, I need an investment portfolio outside of my
• 23:17
  Speaker 2: superannuation to be able to do that tool because I've
• 23:20
  Speaker 2: got to carry fifteen years where I can't access my
• 23:22
  Speaker 2: super Yeah. Yeah, so like for me, it's it's a balance,
• 23:26
  Speaker 2: and maybe for you it's a balance. Maybe for our
• 23:28
  Speaker 2: community it's a balance, but that's something I just want
• 23:30
  Speaker 2: to be like, sounds great, but you can't touch you.
• 23:33
  Speaker 2: So for me, I'm obviously contributing to it because I
• 23:36
  Speaker 2: know in the future I will have access to it,
• 23:39
  Speaker 2: but we'll just be careful. Yeah, okay, got you. The
• 23:43
  Speaker 2: next thing, investing, Yes, if you have a little extra
• 23:48
  Speaker 2: cash or like a few coins outside your essential outgoings,
• 23:52
  Speaker 2: maybe consider signing up for a platform like Chas's where
• 23:56
  Speaker 2: there's no minimum investment, so like you can investor as
• 23:59
  Speaker 2: little as to get started, and then you can do
• 24:03
  Speaker 2: things like roundups and you can invest like a few
• 24:05
  Speaker 2: dollars here and there, so instead of having to commit
• 24:08
  Speaker 2: to a monthly amount, you could be like, okay, cool,
• 24:10
  Speaker 2: when I purchase a coffee, I know I'll invest an
• 24:13
  Speaker 2: additional dollar. Yeah, because obviously roundups are like small change
• 24:19
  Speaker 2: that heads in the right direction and maybe you won't
• 24:21
  Speaker 2: notice it, and maybe that's what makes sense for you,
• 24:25
  Speaker 2: and then earnings like sorry, we hit it back ourselves.
• 24:30
  Speaker 2: If you're listening to an episode on how to Invest
• 24:32
  Speaker 2: I'm assuming you want to get rich. Yeah, I want money.
• 24:36
  Speaker 2: I want to be comfortable. One of those things is
• 24:38
  Speaker 2: looking at your role, you know, looking at your earnings
• 24:41
  Speaker 2: and whether there's any room within your industry to grow
• 24:44
  Speaker 2: your take home pay.
• 24:45
  Speaker 1: Now.
• 24:46
  Speaker 2: I know that in particular industries like nursing, you don't
• 24:51
  Speaker 2: have control over that. You can't go to your unit
• 24:53
  Speaker 2: manager and be like, hey, babe, so I was thinking,
• 24:55
  Speaker 2: can I have a pay rise? It's just not going
• 24:57
  Speaker 2: to happen. You're in a band, you get paid a
• 24:59
  Speaker 2: certain that is non negotiable, like the government sets it.
• 25:03
  Speaker 2: I get it. This is not a tip for every
• 25:05
  Speaker 2: single person, But what I do want you to do
• 25:08
  Speaker 2: is look at the market and do not be afraid
• 25:10
  Speaker 2: to ask your colleagues and your peers what they earn
• 25:15
  Speaker 2: to make sure that you are being paid competitively.
• 25:18
  Speaker 1: Completely agree, Beck.
• 25:19
  Speaker 2: I know you worked for a place where you earned
• 25:22
  Speaker 2: a certain amount and then somebody got hired in the
• 25:25
  Speaker 2: same role as you and got paid more.
• 25:27
  Speaker 1: Yes, yes, that's the cook I know, and that's why
• 25:30
  Speaker 1: pace secrecy. I never agreed to it and never liked it.
• 25:33
  Speaker 2: Now it's gone exactly asking b Busy, you would never
• 25:37
  Speaker 2: have known that if you weren't nosy, and you never
• 25:39
  Speaker 2: would have gotten a pay rise if you didn't have
• 25:42
  Speaker 2: conversations about this. It can be uncomfortable. Yeah, but if
• 25:47
  Speaker 2: I share my like if I was a PAYG salaried employee,
• 25:51
  Speaker 2: I feel like I would be happy to share with you,
• 25:54
  Speaker 2: you know, like I don't know, money can still be weird.
• 25:57
  Speaker 2: So I get when people are like, oh, I don't
• 25:59
  Speaker 2: really want to share it. I get it. And I
• 26:01
  Speaker 2: don't share beck what I earn on the podcast because
• 26:04
  Speaker 2: I am not comparable to the average employee, not because
• 26:08
  Speaker 2: I think I'm better, but because you knowing my salary
• 26:12
  Speaker 2: does not help you build yours. Yeah, but if I
• 26:16
  Speaker 2: was a nurse, I would tell you my salary. If
• 26:19
  Speaker 2: I had a PAYG job, I would make sure that
• 26:22
  Speaker 2: my colleagues knew what I was on. You know, maybe
• 26:25
  Speaker 2: it's not a consistent conversation, but I'd be like, oh,
• 26:27
  Speaker 2: if you want to know what I'm on, like, I'll share.
• 26:29
  Speaker 2: You can have a look at my pay sleep. Yeah,
• 26:30
  Speaker 2: because I want what you've got and you want what
• 26:32
  Speaker 2: I've got, and we want equality, and I think that
• 26:35
  Speaker 2: that is fair. But maybe it's time, Maybe it's time
• 26:38
  Speaker 2: for you to push for that pay rise. What's the
• 26:40
  Speaker 2: worst thing that could happen? They say, no, Yeah, that's fine.
• 26:43
  Speaker 2: Chat with your direct report about your professional or your
• 26:45
  Speaker 2: career goals so that you can work together so that
• 26:48
  Speaker 2: you can achieve them. Maybe consider a side hustle to
• 26:51
  Speaker 2: support your income. Yeah. Sometimes, and people aren't going to
• 26:55
  Speaker 2: like this. Sometimes. If you want more, you've got to
• 26:57
  Speaker 2: do more. You can't just sit at home and be like, oh,
• 27:00
  Speaker 2: I wish I could do that. I get it, I
• 27:04
  Speaker 2: do I want more, so I do more. It might
• 27:08
  Speaker 2: not be what you want to do, and I get
• 27:10
  Speaker 2: that you don't have to, but I want you to
• 27:12
  Speaker 2: know that that's an option, and I want you to
• 27:15
  Speaker 2: know that you are completely in control of what that
• 27:17
  Speaker 2: looks like.
• 27:18
  Speaker 1: That's very true. And there are like other things for
• 27:20
  Speaker 1: you know, different abilities and stuff like that. There are
• 27:22
  Speaker 1: things you can do from home and like ways you can.
• 27:24
  Speaker 1: It's it does suck that we had to have a
• 27:25
  Speaker 1: side hustle to like make more than you.
• 27:28
  Speaker 2: Know, just more, yet like to put ourselves ahead and
• 27:31
  Speaker 2: to put ourselves in a position that our parents got
• 27:33
  Speaker 2: with their nine to five Mondays Friday jobs. Exactly. It
• 27:35
  Speaker 2: is bullshit, Beck, It is I'm not saying, oh, do
• 27:38
  Speaker 2: this because you have to. I'm saying do this because
• 27:41
  Speaker 2: I want what's best for you. And sometimes short term
• 27:44
  Speaker 2: pain is long term gain.
• 27:45
  Speaker 1: That's very true.
• 27:46
  Speaker 2: And if you earn less than thirty seven thousand dollars,
• 27:49
  Speaker 2: there's actually a very cool thing that the Australian government does.
• 27:53
  Speaker 2: It's called co contributions and they will pay get this,
• 27:57
  Speaker 2: fifty cents. That doesn't sound impressive, but wait for the
• 28:00
  Speaker 2: rest of the sentence. They will pay fifty cents for
• 28:03
  Speaker 2: every one dollar you cantribute after tax to superkay to
• 28:08
  Speaker 2: five hundred dollars per year from the government for free. Yeah, okay,
• 28:15
  Speaker 2: don't leave that on the table. True, that's a fifty
• 28:17
  Speaker 2: percent return. Hell yeah, be so for real take it.
• 28:20
  Speaker 2: Then let's touch on property.
• 28:22
  Speaker 1: Sure, if you're.
• 28:23
  Speaker 2: In a position to buy and you want to be buying. Yeah,
• 28:26
  Speaker 2: and you haven't looked at the first time super Savior
• 28:28
  Speaker 2: scheme because maybe it's too much of a mouthful for you.
• 28:32
  Speaker 2: I get that. But you can potentially contribute. And I
• 28:36
  Speaker 2: have to say you can potentially contribute because I'm not
• 28:39
  Speaker 2: giving advice, but go look at this scheme and see
• 28:41
  Speaker 2: if it aligns to your values, you can potentially contribute
• 28:45
  Speaker 2: fifteen thousand dollars a year into your superannuation up to
• 28:51
  Speaker 2: fifty thousand dollars, and then you can withdraw it for
• 28:55
  Speaker 2: your first home deposit at a lower tax rate, which
• 28:57
  Speaker 2: is a tax discount on saving for your first home.
• 29:01
  Speaker 2: That means that if you are on a thirty percent
• 29:06
  Speaker 2: tax rate, and let me do some quick numbers in
• 29:09
  Speaker 2: my head, and you contribute fifty thousand dollars, maybe over
• 29:13
  Speaker 2: five years, you've like done ten grand a year into
• 29:16
  Speaker 2: your first home. Super Savior scheme. One person to follow
• 29:20
  Speaker 2: and look at this who has done this and is
• 29:22
  Speaker 2: publicly sharing her journey is miss Jess Gerricci from the show.
• 29:26
  Speaker 2: She did this. But if you contributed that ten grand
• 29:29
  Speaker 2: per year, you would approximately be nine five hundred dollars
• 29:34
  Speaker 2: better off.
• 29:35
  Speaker 1: Oh amazing, true, because you get the you get a.
• 29:37
  Speaker 2: Tax fifteen percent tax back every time you put it
• 29:40
  Speaker 2: into your super and you get a tax return and
• 29:42
  Speaker 2: then interest and then you pull it out and you're
• 29:44
  Speaker 2: in a better financial position.
• 29:46
  Speaker 1: Incredible.
• 29:47
  Speaker 2: That is sick.
• 29:48
  Speaker 1: Yeah, it's actually great. Okay, So if you're satisfied, I'm
• 29:52
  Speaker 1: happy to drum straight into thirties.
• 29:53
  Speaker 2: If you want to that's what us fair, Okay, that's
• 29:56
  Speaker 2: you sit down, strap here, huh. I saw something on TikTok. Right,
• 30:00
  Speaker 2: get your fist and put it on your right shoulder. Yeah,
• 30:02
  Speaker 2: Now pull it down and put it on your left hip.
• 30:05
  Speaker 2: You've buckled in. You're ready to go. Oh okay, are right?
• 30:11
  Speaker 2: Based on a current average return of seven percent, So
• 30:15
  Speaker 2: that's the growth adjusted for inflation that we picked before,
• 30:18
  Speaker 2: you'd need to invest five hundred and fifty two dollars
• 30:22
  Speaker 2: each and every single month from the age of thirty
• 30:25
  Speaker 2: to have a million dollars by the time you reach
• 30:27
  Speaker 2: sixty five.
• 30:28
  Speaker 1: Well, do what but see how three hundred?
• 30:32
  Speaker 2: Yes, but see how that number has jumped. It's now
• 30:35
  Speaker 2: five hundred and fifty two dollars each and every single
• 30:39
  Speaker 2: month until you're sixty five, compared to when you're twenty
• 30:42
  Speaker 2: and you're investing two hundred and sixty two dollars per month.
• 30:45
  Speaker 2: Sure you now need to find more than double.
• 30:47
  Speaker 1: Okay, okay, okay.
• 30:49
  Speaker 2: I'm not trying to bring their mood down, but I'm
• 30:52
  Speaker 2: trying to show you that if you started at twenty
• 30:57
  Speaker 2: and you were investing two hundred and sixty two dollars
• 30:58
  Speaker 2: per month, by the age of sea sixty five, you
• 31:00
  Speaker 2: would achieve an investment portfolio of a million dollars. You
• 31:04
  Speaker 2: will achieve the same goal at sixty five if you
• 31:07
  Speaker 2: start when you're thirty with a higher contribution per month. Okay,
• 31:10
  Speaker 2: And which is cool because it's still achievable technically.
• 31:13
  Speaker 1: Technically, and that is eighteen dollars a day.
• 31:17
  Speaker 2: Yeah, Like, if we reframe it, it's not that bad.
• 31:20
  Speaker 3: Beck.
• 31:21
  Speaker 1: Absolutely, I'm spending eighteen bucks a day on coffee.
• 31:24
  Speaker 2: I know. And this is why I have decided that
• 31:26
  Speaker 2: I want to be slightly more aggressive in being your
• 31:30
  Speaker 2: best friend, because like, I'm just like Beck, I want
• 31:34
  Speaker 2: what's best for you. Can you imagine how many lattes
• 31:37
  Speaker 2: you could buy when you're retired, Beck, So there's going
• 31:40
  Speaker 2: to be a period of your life where if you
• 31:42
  Speaker 2: knuckle down today, you don't have to go to work,
• 31:45
  Speaker 2: you don't have to earn an income. Your investment portfolio
• 31:48
  Speaker 2: is going to pay your income, and you just have
• 31:50
  Speaker 2: late every day.
• 31:51
  Speaker 1: Incredible, and it's.
• 31:53
  Speaker 2: No alarms in the morning. No one's a micro manager.
• 31:57
  Speaker 2: No one's going to tell you to get out of
• 31:59
  Speaker 2: bed because you did the hard yards early.
• 32:02
  Speaker 1: You just do whatever you want from that point, guys,
• 32:04
  Speaker 1: so incredible.
• 32:04
  Speaker 2: That's the point. And I mean, don't get me wrong,
• 32:07
  Speaker 2: Like for me, there's like the fire movement, which you've
• 32:10
  Speaker 2: heard of, which is financial independence retire early, where people
• 32:13
  Speaker 2: are investing like eighty or ninety percent of their incomes
• 32:15
  Speaker 2: to retire early and get that lifestyle by the time
• 32:18
  Speaker 2: they're like thirty five for forty And that's wild and
• 32:20
  Speaker 2: that's crazy and that's amazing. And Brooke from our team, Yeah,
• 32:23
  Speaker 2: does that. She's incredible. She's incredible, and she's going to
• 32:27
  Speaker 2: achieve that. Beck, she's going to be able to retire
• 32:29
  Speaker 2: by the time she's thirty five. And we did a
• 32:31
  Speaker 2: whole podcast with her on her plan and what she's
• 32:34
  Speaker 2: investing in and how that's going to happen on old
• 32:36
  Speaker 2: linked in the show notes. Okay, like different people have
• 32:38
  Speaker 2: different goals. Yeah, she's incredible. I could never do that, neck.
• 32:42
  Speaker 2: I as much as I'm like, yes, I'm very good
• 32:44
  Speaker 2: at delayed ratification, I'm not nearly as good at it
• 32:47
  Speaker 2: as she is. Sure, and I kind of want to
• 32:49
  Speaker 2: enjoy the journey a bit more. Yeah, I love a
• 32:52
  Speaker 2: mont Blanc coffee. That stuff costs me eleven dollars, you know,
• 32:55
  Speaker 2: what I mean, it's so good, but I'm not going
• 32:58
  Speaker 2: to say no. So like it's about finding balance that
• 33:00
  Speaker 2: works for you. Anyway, back to this five hundred and
• 33:03
  Speaker 2: fifty two dollars per month, while median income and net
• 33:06
  Speaker 2: worth has risen, so it's now seventy seven thousand dollars
• 33:10
  Speaker 2: as a median income and two hundred and fifty thousand
• 33:13
  Speaker 2: dollars as a net worth, respectively. So to have your
• 33:17
  Speaker 2: financial obligations, Yeah, at this age, we see mortgage interest
• 33:21
  Speaker 2: rate pressures, we see maybe you've possibly got a child,
• 33:24
  Speaker 2: and you know, family care duties and costs, as well
• 33:27
  Speaker 2: as an unfortunately widening gender pay gap widening. It gets worse.
• 33:33
  Speaker 2: The order you get, the worse it gets. Oh my god,
• 33:36
  Speaker 2: and I know, don't even get me started. But here
• 33:39
  Speaker 2: are some things to consider us. So we're going to
• 33:41
  Speaker 2: touch on budget really quick. Add to everything I've told
• 33:45
  Speaker 2: you about being in your twenties, you're going to do that.
• 33:48
  Speaker 2: Plus you might earn more now that you're in your
• 33:51
  Speaker 2: thirties than you did in your twenties. Is a generalization,
• 33:54
  Speaker 2: but for a lot of people that generalization might be true.
• 33:57
  Speaker 2: Your outgoings might also have crept up and we're talking about,
• 34:00
  Speaker 2: you know, lifestyle creep, but we're also talking about now
• 34:03
  Speaker 2: you actually have responsibilities, so annoying, Beck, Like you now
• 34:08
  Speaker 2: have rent, a mortgage, and maybe you're paying for childcare
• 34:11
  Speaker 2: or other costs. You've probably got some more insurances that
• 34:14
  Speaker 2: you're paying for groceries. You're probably being an adult and
• 34:17
  Speaker 2: not just having me gooring every single meal any more.
• 34:21
  Speaker 2: Are there subscriptions that you have or non essential payments
• 34:24
  Speaker 2: going out on the regular? Could you, you know, maybe
• 34:27
  Speaker 2: pare back a discretionary spend or adjust purchase habits, just
• 34:31
  Speaker 2: look for better deals on everything. Yeah, Like, sometimes we
• 34:34
  Speaker 2: just need to hustle, and we're like not hustling to
• 34:36
  Speaker 2: get a new job. We're just hustling with the bills.
• 34:38
  Speaker 2: We've already got to make sure we're getting the best
• 34:40
  Speaker 2: possible discount yep. Like, can you direct fifteen or twenty
• 34:44
  Speaker 2: percent of your paycheck towards saving and investing if it's possible,
• 34:48
  Speaker 2: And can you automate any payments so that your bases
• 34:51
  Speaker 2: are covered before you have a chance to spend again? Right? Like,
• 34:55
  Speaker 2: I know that right now, Beck, you're in a situation
• 34:57
  Speaker 2: where you're living paycheck to paycheck. Yeah, it's okay, Like
• 35:01
  Speaker 2: it really is. But what if I just took some
• 35:03
  Speaker 2: money off you at the start of every month. Yeah,
• 35:06
  Speaker 2: I'm pretty sure you're good at living paycheck to paycheck.
• 35:09
  Speaker 1: Yeah, that's true.
• 35:10
  Speaker 2: So like what if I just made your paycheck slightly smaller.
• 35:13
  Speaker 2: I'm not saying this is going to work for everybody, sure, sure,
• 35:15
  Speaker 2: but like I kind of know on average what you earn,
• 35:18
  Speaker 2: and I kind of know how you spend, so I
• 35:21
  Speaker 2: kind of can almost guarantee if I took one hundred
• 35:24
  Speaker 2: bucks off you on payday, you're as an individual in
• 35:28
  Speaker 2: your particular situation, you might not notice it. Yeah, yeah,
• 35:32
  Speaker 2: because you've now got less money to spend. Yeah, and
• 35:35
  Speaker 2: just accordingly, yeah, you'll adjust, true, And I don't think
• 35:39
  Speaker 2: that you'll feel like you're missing out as much because
• 35:41
  Speaker 2: you're like, oh, that's not mine.
• 35:42
  Speaker 1: Yeah.
• 35:43
  Speaker 2: Like if I took it off you and put it
• 35:44
  Speaker 2: somewhere else at the end of the month, you might
• 35:46
  Speaker 2: be like, oh, I'm cutting it fine. V. But I
• 35:48
  Speaker 2: can almost guarantee that you'd also have been cutting it
• 35:50
  Speaker 2: fine had you had the extra hundred Yeah.
• 35:53
  Speaker 1: So true, you've already spent that too, for sure.
• 35:55
  Speaker 2: And that's not me being mean, that's me going. I
• 35:58
  Speaker 2: think that more is possible, yeah, than what you think
• 36:01
  Speaker 2: is possible for you.
• 36:03
  Speaker 1: Yeah, for sure, And that's a good thing.
• 36:04
  Speaker 2: Right, Yeah, because we love opportunity. Again, I'm going to
• 36:08
  Speaker 2: touch on supranuation. What's your super looking like? Are you
• 36:11
  Speaker 2: looking at it? Please?
• 36:12
  Speaker 3: Do? Like?
• 36:13
  Speaker 2: Is it coming in when it's supposed to? Is it
• 36:15
  Speaker 2: being invested in the correct growth option to support your
• 36:18
  Speaker 2: wealth goals? Like are your insurances switched on or activated
• 36:22
  Speaker 2: or will they offer the cover that you need? If not,
• 36:25
  Speaker 2: why not let's change that stuff up. Because we had
• 36:28
  Speaker 2: Phil on the show recently from Sky Wealth and he
• 36:30
  Speaker 2: was saying that he's changing people often out of their
• 36:33
  Speaker 2: insurances inside supranuation to other insurances inside their supranuation and
• 36:38
  Speaker 2: saving the money. Yeah. Okay, so we can save money
• 36:41
  Speaker 2: there as well. Hell yeah, we can talk about salary
• 36:43
  Speaker 2: sacrificing at this age. If you have the ability to
• 36:46
  Speaker 2: do it, it might be strongly recommended. Sure, especially if
• 36:49
  Speaker 2: your marginal tax rate is starting to creep up, because
• 36:52
  Speaker 2: again generalization, if you are earning more money, you're paying
• 36:57
  Speaker 2: more tax. Yeah, and I mean that's a privilege, but
• 36:59
  Speaker 2: it doesn't mean feels nice. So if you had an
• 37:02
  Speaker 2: eighty thousand dollars salary, Contributing ten k a year saves
• 37:08
  Speaker 2: you between seventeen hundred and fifty to two two hundred
• 37:11
  Speaker 2: dollars in taxes annually. That's a lot of money. And
• 37:15
  Speaker 2: you can contribute up to thirty two thousand, five hundred
• 37:17
  Speaker 2: dollars per year from July one, twenty twenty six. And
• 37:22
  Speaker 2: there's also this thing called a carry forward concessional cap,
• 37:26
  Speaker 2: where essentially it's a limit to how much you can
• 37:30
  Speaker 2: contribute to your super over a few years. So if
• 37:33
  Speaker 2: your balance is under five hundred thousand dollars, which for
• 37:35
  Speaker 2: most people in their thirties it will be, and you
• 37:38
  Speaker 2: haven't maxed out your contributions in previous years, you could
• 37:42
  Speaker 2: potentially contribute more than thirty two thousand, five hundred dollars
• 37:45
  Speaker 2: this year if you wanted to. Yeah, okay, it's just
• 37:47
  Speaker 2: kind of cool to know. It's kind of a tax win.
• 37:50
  Speaker 1: Great.
• 37:50
  Speaker 2: And then investing, if you aren't already investing outside your super, now,
• 37:54
  Speaker 2: my friend, is the time to have a think about it.
• 37:57
  Speaker 2: A platform like shares Is or like pearl I can
• 37:59
  Speaker 2: help you get started without a minimum investment amount. If
• 38:03
  Speaker 2: it's early days and the research is overwhelming and intimidating.
• 38:06
  Speaker 2: Let's look out for low cost diversified ETFs so that
• 38:09
  Speaker 2: you get a bunch of exposure to a bundle of
• 38:11
  Speaker 2: shares and it becomes a little bit easier than you
• 38:14
  Speaker 2: trying to time and pick particular shares that you think
• 38:17
  Speaker 2: are going to perform. I would resist the urge to
• 38:21
  Speaker 2: respond emotionally when markets are dipping. Harder done than said,
• 38:25
  Speaker 2: but it is all part of the process. Time in
• 38:28
  Speaker 2: the market beck beats time ming the market. Yes, true, Okay, earnings,
• 38:34
  Speaker 2: we're not playing small here. I want to earn as
• 38:37
  Speaker 2: much money as possible, and I'm pretty sure you do too.
• 38:40
  Speaker 2: This is the bracket with the highest earning potential of income.
• 38:44
  Speaker 2: This is the period where if you are going to
• 38:47
  Speaker 2: have significant income growth, it's probably going to happen in
• 38:50
  Speaker 2: your thirties. It is also the highest return on investments period. So,
• 38:55
  Speaker 2: for example, if you are thirty three and you get
• 38:58
  Speaker 2: a ten thousand dollars rise and you consistently invest over
• 39:03
  Speaker 2: thirty five years at an eight percent growth rate, approximately, Yeah,
• 39:08
  Speaker 2: that's one hundred and eighty six thousand dollars added to
• 39:10
  Speaker 2: your portfolio. Okay, that's a lot of money. I want
• 39:13
  Speaker 2: you to look at the market and don't be afraid
• 39:15
  Speaker 2: to ask colleagues or peers what they earn to make
• 39:18
  Speaker 2: sure that you are being competitive. We had this conversation already,
• 39:22
  Speaker 2: so I won't recap it, but ask what's the worst
• 39:26
  Speaker 2: thing that could happen?
• 39:27
  Speaker 1: Well, that's it, what's the losing happened?
• 39:28
  Speaker 2: They say, No, that's fine, that's not that bad. Push
• 39:32
  Speaker 2: for a pay rise, girl, you deserve it. And if
• 39:35
  Speaker 2: you're taking parental leave, maybe consider making voluntary super contributions
• 39:39
  Speaker 2: before the thirtieth of June to offset the gap in
• 39:42
  Speaker 2: contributions while you are on leave. Okay, if your income
• 39:45
  Speaker 2: is lower in the year you return, you also might
• 39:49
  Speaker 2: be eligible for the government co contribution. So look at that. Yeah,
• 39:53
  Speaker 2: we told you about that before. Like, you can still
• 39:55
  Speaker 2: access that in your thirties. Money win great property. If
• 39:58
  Speaker 2: you have a mortgage with an offset account, my friend,
• 40:00
  Speaker 2: treat it as an investment vehicle. Yes, rising interest rates suck,
• 40:05
  Speaker 2: they really do, but they also work in your favor
• 40:08
  Speaker 2: with your offset. So with every dollar earning at that
• 40:12
  Speaker 2: rate completely tax free. Like if it's in your offset,
• 40:15
  Speaker 2: you're not actually earning money, you're offsetting interest that is payable.
• 40:18
  Speaker 2: And if you don't earn it and you just saved it,
• 40:21
  Speaker 2: you don't know the government anything. But if you put
• 40:24
  Speaker 2: it in a high interest savings account and earn interest
• 40:27
  Speaker 2: on it, you would have to pay tax on that
• 40:29
  Speaker 2: interest because you earn money. Yes, I see, Okay, you're
• 40:32
  Speaker 2: saying right, And I would think carefully at this period
• 40:37
  Speaker 2: of your life. Right, if you are in your first home,
• 40:40
  Speaker 2: if you've been in your first home for five years,
• 40:44
  Speaker 2: you might be having a think about upgrading you maybe like, oh,
• 40:47
  Speaker 2: I want a bigger family home, Queen a Yata, I
• 40:50
  Speaker 2: did it? Like, don't do as I say, not as
• 40:52
  Speaker 2: I do, you know, but have a think about what
• 40:55
  Speaker 2: that looks like, because this just locks your equity into
• 40:59
  Speaker 2: a non income producing asset and resets your mortgage another
• 41:04
  Speaker 2: thirty like it goes back to thirty years again. Yeah,
• 41:07
  Speaker 2: and that money could potentially be compounding in your portfolio.
• 41:11
  Speaker 2: So like, do you prioritize bigger house or financial freedom?
• 41:15
  Speaker 2: Like what are those decisions that you're making at this age?
• 41:17
  Speaker 2: And make sure you really understand this conversation about like
• 41:22
  Speaker 2: the real negative gearing implications of investment properties. If this
• 41:27
  Speaker 2: is something that you're considering because that capital could be
• 41:29
  Speaker 2: generating stronger returns in ETFs or in your superannuation with
• 41:33
  Speaker 2: a whole lot less hasshole. Okay, but so many people
• 41:35
  Speaker 2: are like, this is the best way to create wealth.
• 41:37
  Speaker 2: And recently I wrote an article in the Sydney Morning
• 41:40
  Speaker 2: Herald and The Age about let's just not be polite
• 41:45
  Speaker 2: anymore about property. Sure, if you have access to property,
• 41:49
  Speaker 2: you are in a significantly better financial position than anybody else.
• 41:53
  Speaker 1: Yeah.
• 41:54
  Speaker 2: Like true, Like every mortgage or a payment that you're
• 41:56
  Speaker 2: making back, it's going towards your future wealth. I know
• 42:00
  Speaker 2: rent is necessary, I know you need to put a
• 42:02
  Speaker 2: roof over your head, but it is really freaking hard
• 42:05
  Speaker 2: to pay rent and say for a first home. At
• 42:08
  Speaker 2: the same time, I agree, like that's not easy. Yeah,
• 42:11
  Speaker 2: and we don't need to be polite about that. But
• 42:13
  Speaker 2: also if you have a first home, yeah, like I
• 42:15
  Speaker 2: own property, I don't need to downplay it. Yeah, but
• 42:19
  Speaker 2: let's not ignore the privilege that went into that and
• 42:22
  Speaker 2: the fact that because I'm in the property market now,
• 42:24
  Speaker 2: I'm in a significantly better financial position than someone who
• 42:27
  Speaker 2: hasn't gotten into the market yet. Sure, Like, I think
• 42:30
  Speaker 2: the goal is to you know, not turn a blind dye. Ye,
• 42:35
  Speaker 2: but the goal is to make sure that we're not
• 42:37
  Speaker 2: pulling the ladder up after us so that you two
• 42:40
  Speaker 2: can climb.
• 42:40
  Speaker 1: It's gorgeous analogy, is it? Yeah?
• 42:43
  Speaker 2: Like that? Well, let's take a quick break, because I
• 42:45
  Speaker 2: could go on and on about this, like I've got
• 42:48
  Speaker 2: a whole heap to say on equity. But when we
• 42:50
  Speaker 2: get back, Beck, you and I are going to cover
• 42:52
  Speaker 2: investing in your forties. Don't go anywhere.
• 42:58
  Speaker 1: Welcome back everyone. The I've heard that forty is a
• 43:01
  Speaker 1: new thirty. How does this play out when it comes
• 43:03
  Speaker 1: to investing?
• 43:04
  Speaker 2: Yeah, look, I'm really hoping that that's true. I think
• 43:07
  Speaker 2: it is because I'm actually closer to forty than I
• 43:10
  Speaker 2: am thirty.
• 43:11
  Speaker 1: Now, well, now you're closer to the new thirty exactly. Yeah,
• 43:15
  Speaker 1: so you've got plenty of time.
• 43:17
  Speaker 2: Thanks, I'm glad something and things Unfortunately, like I want
• 43:22
  Speaker 2: it to be more like my thirties, but things just
• 43:24
  Speaker 2: become more expensive the later you start, but not unfeasible.
• 43:29
  Speaker 2: So based on a current average return of seven percent,
• 43:32
  Speaker 2: we've been using this entire episode, hold your b Reathbeck, Okay,
• 43:36
  Speaker 2: you need to invest one thy two hundred and twenty
• 43:38
  Speaker 2: seven dollars per month from the age of forty to
• 43:40
  Speaker 2: reach a investment of one million dollars by the age
• 43:44
  Speaker 2: of sixty five.
• 43:44
  Speaker 1: Okay, forty dollars a day, that's not too bad.
• 43:49
  Speaker 2: I mean it's still a lot of money. Where are
• 43:50
  Speaker 2: you finding forty bucks a day, like if you're in
• 43:53
  Speaker 2: your forties, Like life is expensive. I get it. But
• 43:56
  Speaker 2: again we're using this as an example to the power
• 44:00
  Speaker 2: of compounding interest, because like you're in your twenties, you
• 44:04
  Speaker 2: are investing two hundred and sixty two dollars per month
• 44:07
  Speaker 2: to achieve the same goal that someone who's starting in
• 44:09
  Speaker 2: their forties is investing two hundred and twenty seven dollars
• 44:12
  Speaker 2: per month to achieve. And that feels trash. I get it,
• 44:16
  Speaker 2: But it doesn't need to be trash. But you can
• 44:18
  Speaker 2: still definitely reach your wealth goals, I promise. But this
• 44:22
  Speaker 2: bracket might experience a little bit of a plateau when
• 44:26
  Speaker 2: it comes to earnings. So the median earnings for somebody
• 44:29
  Speaker 2: in their forties is seventy seven thousand, and their net
• 44:31
  Speaker 2: worth medium is four hundred and eighty thousand dollars. So
• 44:35
  Speaker 2: wealth it needs to shift, so coming from assets versus income,
• 44:40
  Speaker 2: but there are also I guess mounting costs accrued, Like
• 44:44
  Speaker 2: if you have children in your forties, it gets really expensive.
• 44:49
  Speaker 2: Maybe you've got aging parents that you're supporting, or maybe
• 44:52
  Speaker 2: you've got both with less time to recover from poor choices.
• 44:57
  Speaker 2: If you're starting in your forties, the key here making
• 45:00
  Speaker 2: wiser investment choices. You still have so much power, you
• 45:03
  Speaker 2: really do. So when it comes to budgeting, while you
• 45:07
  Speaker 2: might earn more, you're also probably spending more. I'd be
• 45:10
  Speaker 2: reassessing my budget, like looking at my outgoings and my
• 45:13
  Speaker 2: commitments so that lifestyle creep is not consuming you. Like
• 45:16
  Speaker 2: salary increases tend to slow down here, so you might
• 45:20
  Speaker 2: need to consider how to make your assets work for you,
• 45:22
  Speaker 2: like not simply rely on your wages. A good goal
• 45:26
  Speaker 2: is to have approximately three times your annual salary saved
• 45:30
  Speaker 2: across all your assets in this bracket, so across your
• 45:34
  Speaker 2: super your equity, your investments, your savings. And if you
• 45:38
  Speaker 2: aren't there, that's fine, You've got heaps of time to hustle.
• 45:40
  Speaker 2: But like, this is just general advice only, this is
• 45:43
  Speaker 2: not saying you have to And I feel like some
• 45:47
  Speaker 2: people are going to go, well, that's ridiculous. I get it.
• 45:50
  Speaker 2: It might feel ridiculous for you, and I get that,
• 45:52
  Speaker 2: but we're talking about the average. Right when it comes
• 45:56
  Speaker 2: to superannuation goal review, where your super is and how
• 45:59
  Speaker 2: this is, I cannot yell this from the rooftops louder.
• 46:03
  Speaker 2: Many funds automatically update this based on your lifestyle as well,
• 46:07
  Speaker 2: so it really does pay to check to make sure
• 46:09
  Speaker 2: they haven't shifted it on you prematurely, like for example,
• 46:12
  Speaker 2: they might take your high growth portfolio and drop it
• 46:14
  Speaker 2: down to growth, or they might take a growth portfolio
• 46:17
  Speaker 2: and change it to balance. So always have your finger
• 46:19
  Speaker 2: on the pulse. And if you come into a healthy inheritance,
• 46:24
  Speaker 2: which is not the reality for everybody, but in the
• 46:27
  Speaker 2: next five years, Beck, we are going to see the
• 46:30
  Speaker 2: biggest transfer of intergenerational wealth that the world's ever seen. Really, yeah,
• 46:35
  Speaker 2: and I mean it's a bit morbid. Lots of people
• 46:37
  Speaker 2: are going to die.
• 46:37
  Speaker 1: It is very morbid.
• 46:38
  Speaker 2: But that's how it's going to happen. If you come
• 46:42
  Speaker 2: into a healthy inheritance or a bonus or you know,
• 46:44
  Speaker 2: sale proceeds from an asset, consider placing them in your superannuation. Yeah,
• 46:50
  Speaker 2: so a non concessional So after tax contribution of up
• 46:54
  Speaker 2: to one hundred and twenty thousand dollars will only be
• 46:57
  Speaker 2: taxed at fifteen percent or zero percent during retirement. Okay,
• 47:02
  Speaker 2: we're talking about salary sacrificing, So please max out your
• 47:06
  Speaker 2: carry forward cap on your concessional contributions like make and
• 47:09
  Speaker 2: take advantage of what the government allows you to take
• 47:13
  Speaker 2: advantage of. If your souper is under five hundred grand
• 47:17
  Speaker 2: and you haven't used your full cap in prior years,
• 47:21
  Speaker 2: you might be able to make the most of this.
• 47:23
  Speaker 2: So this is arguably the biggest tax hack. Again a
• 47:26
  Speaker 2: privileged one beck because you need the cash to be
• 47:28
  Speaker 2: able to actually do this, but especially at this age bracket,
• 47:33
  Speaker 2: if it goes straight into your subranuation, it goes straight
• 47:35
  Speaker 2: to retirement. So, for example, on a one hundred thousand
• 47:40
  Speaker 2: dollars salary, contributing eighteen thousand dollars per year actually saves
• 47:46
  Speaker 2: you five four hundred dollars in income tax annually, so
• 47:50
  Speaker 2: you can contribute up to thirty two thousand, five hundred
• 47:52
  Speaker 2: dollars per year from the first of July twenty twenty six.
• 47:57
  Speaker 1: Oh okay, that's good to know.
• 47:58
  Speaker 2: I know we're in the middle of the cost of
• 48:01
  Speaker 2: living crisis. There are going to be lots of people
• 48:02
  Speaker 2: listening that are like, Victoria, what the hell eighteen thousand
• 48:05
  Speaker 2: dollars a year? Where am I getting that from? Yeah?
• 48:08
  Speaker 2: These are examples. For sure, you might have a spare
• 48:10
  Speaker 2: one thousand dollars. You are still going to get tax
• 48:12
  Speaker 2: back on that. You might have a spare one hundred dollars.
• 48:16
  Speaker 2: Something is better than nothing, for sure. I'm not saying
• 48:19
  Speaker 2: that that is the best outcome. I'm giving you a
• 48:21
  Speaker 2: healthy example that we can go, Wow, that's cool. Yeah,
• 48:25
  Speaker 2: just because it's cool doesn't mean it applies to you though. Investing,
• 48:30
  Speaker 2: if you are aiming and again example, but if you
• 48:33
  Speaker 2: aim to invest approximately two to three thousand dollars outside
• 48:36
  Speaker 2: of your super in a diversified ETF example, again in
• 48:42
  Speaker 2: your early forties, you have the potential get this to
• 48:46
  Speaker 2: add up to seven hundred thousand dollars to your portfolio
• 48:48
  Speaker 2: over the next twenty years.
• 48:49
  Speaker 1: O my god.
• 48:51
  Speaker 2: So if you had that amount of money on a
• 48:52
  Speaker 2: monthly basis and you could invest it, you might put
• 48:56
  Speaker 2: yourself in a better position of seven hundred grand by
• 48:59
  Speaker 2: the time retire.
• 49:00
  Speaker 1: Okay, that's really good to know.
• 49:02
  Speaker 2: And this is also the time to really consider maybe
• 49:05
  Speaker 2: adding some income generating ETFs to the fold so that
• 49:09
  Speaker 2: you have some money coming in to supplement your salary
• 49:12
  Speaker 2: if you decide to wind down later, like what's it
• 49:15
  Speaker 2: called dividends? Dividends pay me? Yeah exactly. So I would
• 49:20
  Speaker 2: also again resist the urge to respond emotionally when the
• 49:24
  Speaker 2: market is dipping. Over your lifetime, you're going to see
• 49:27
  Speaker 2: the market dip or crash seven times. Okay, Okay, I
• 49:31
  Speaker 2: need you to resist selling your portfolio every single time
• 49:34
  Speaker 2: that happens, because that will be a very bad financial
• 49:37
  Speaker 2: decision for you. Got you got your want to, because
• 49:39
  Speaker 2: you'll be like, oh my god, I'm so scared. Just
• 49:41
  Speaker 2: like what do I do?
• 49:42
  Speaker 1: Don't be scared.
• 49:43
  Speaker 2: Don't be scared.
• 49:44
  Speaker 1: It's fine.
• 49:44
  Speaker 2: Hold on for those long term recoveries, okay, and then
• 49:47
  Speaker 2: your earnings, your base salary might have slowed down, but
• 49:51
  Speaker 2: there's still room to earn supplementary income through other kinds
• 49:54
  Speaker 2: of roles. You might not want to hear this, but
• 49:56
  Speaker 2: you have the ability. Well, able bodied people have the ability.
• 50:00
  Speaker 2: And I feel like sometimes I want to be like,
• 50:03
  Speaker 2: you can do this, and then people go, well I can't. Yeah,
• 50:06
  Speaker 2: I know, I'm not dumb, Like I'm not silly and
• 50:10
  Speaker 2: don't understand that there are lots of different people in
• 50:13
  Speaker 2: the world. I'm talking to the able bodied people that
• 50:16
  Speaker 2: have the ability and the time and the energy to
• 50:18
  Speaker 2: be able to do these things. Sure, sure, I'm not
• 50:21
  Speaker 2: talking to people who are stuck in a rut and
• 50:23
  Speaker 2: in a situation they can't get out of. Like I
• 50:26
  Speaker 2: see you. I know that this happens, and that's why
• 50:29
  Speaker 2: I create content specifically for you too as well.
• 50:32
  Speaker 1: For sure, exactly, so maybe just more the supplementary income
• 50:35
  Speaker 1: might know, exactly, Like, yeah, there's still room for sure.
• 50:39
  Speaker 1: So like, could you do some side consulting, Like a
• 50:42
  Speaker 1: lot of people, if they work corporately, are looking for
• 50:45
  Speaker 1: roles on boards or advisories, or they might want to
• 50:48
  Speaker 1: do some contracting or seek out opportunities to complement your
• 50:51
  Speaker 1: primary gig. I have a neighbor down the road. He
• 50:55
  Speaker 1: works in consulting and every Saturday. I only learned about
• 50:58
  Speaker 1: this recently because I only move into the area recently.
• 51:02
  Speaker 1: Every Saturday he gets out for four hours and has
• 51:06
  Speaker 1: gone up and down the streets and ask people, Hey,
• 51:09
  Speaker 1: I mow nature strips.
• 51:11
  Speaker 2: That's it. I don't mow your backyard. I just mow
• 51:13
  Speaker 2: your nature strip. Would you like me to, for a
• 51:16
  Speaker 2: set feet every week mow your nature strip. That's great,
• 51:19
  Speaker 2: that's very one pays him cash, that's great. He just
• 51:22
  Speaker 2: walks out his driveway with his lawn mower, goes up
• 51:26
  Speaker 2: all the houses, does the entire freaking street.
• 51:29
  Speaker 1: That's amazing, and it's just nature gets paid.
• 51:31
  Speaker 2: Yeap gets paid cash by everybody does like three or
• 51:34
  Speaker 2: four hours on a Saturday. He makes a whole heap
• 51:37
  Speaker 2: of supplementary income. Like he works a fancy consulting job.
• 51:41
  Speaker 2: Like we're not talking about somebody you know who's like, oh,
• 51:45
  Speaker 2: working gardenings. So I've got heap of like you know, experience,
• 51:48
  Speaker 2: and no he's just like, oh I could do that. Yeah,
• 51:52
  Speaker 2: And he put himself out there and now he makes
• 51:54
  Speaker 2: literally hundreds of dollars on a Saturday morning because every
• 51:58
  Speaker 2: nature strip adds up.
• 51:59
  Speaker 1: Yeah, hell, yeah gorgeous.
• 52:00
  Speaker 2: I'll pay you twenty five bucks to mow miman nature strip.
• 52:04
  Speaker 2: How long does it take to the morow in nature strip?
• 52:07
  Speaker 1: Ten minutes?
• 52:08
  Speaker 4: Right?
• 52:09
  Speaker 2: Yeah, I reckon do that, next house, do that, next house,
• 52:12
  Speaker 2: Get four houses. You've got what one hundred bucks?
• 52:15
  Speaker 1: That's so true I'm gonna start doing that, I think.
• 52:18
  Speaker 2: Isn't that crazy?
• 52:18
  Speaker 1: Yeah, that's great.
• 52:19
  Speaker 2: Like anyway, there's just so much that you could potentially do.
• 52:23
  Speaker 2: And I'm not saying that it's gonna work for everybody
• 52:25
  Speaker 2: for sure, but there are options out there.
• 52:28
  Speaker 1: Absolutely. As I like to, well, I've been really big
• 52:31
  Speaker 1: on tarotok recently, and as I always say, and as
• 52:34
  Speaker 1: they always say, take what resonates, leave what doesn't. So
• 52:37
  Speaker 1: if anything is like, you know, oh I couldn't do that,
• 52:39
  Speaker 1: then take what does.
• 52:40
  Speaker 2: Work for you, but it resonates, leave what doesn't.
• 52:43
  Speaker 1: Yeah, I love that. Do you like that? Like that?
• 52:45
  Speaker 2: I love that because I just feel like sometimes there's
• 52:47
  Speaker 2: so much pressure literally on me to create content that
• 52:53
  Speaker 2: is applicable to all Yes, yes, fair, and I go.
• 52:55
  Speaker 2: I don't want people to feel left out. I don't
• 52:57
  Speaker 2: want people to feel like less than because I'm giving
• 53:00
  Speaker 2: advice to invest and create a portfolio of a million
• 53:03
  Speaker 2: dollars when that's actually not going to be the reality
• 53:05
  Speaker 2: of their situation. And I don't want, you know, to
• 53:08
  Speaker 2: only give advice for our friends who use center Link,
• 53:12
  Speaker 2: because then that's not applicable for you know, my other
• 53:14
  Speaker 2: friends in the shees on the money community, whoill like
• 53:16
  Speaker 2: v I actually do have five hundred dollars a month
• 53:19
  Speaker 2: that I want to invest and I want advice on that. Sure,
• 53:22
  Speaker 2: do you know what I mean? Like, I feel like
• 53:23
  Speaker 2: I'm in this rock and hard place where sometimes I
• 53:26
  Speaker 2: think that other people think that I don't respect their
• 53:29
  Speaker 2: situations as much because I'm creating content for one particular narrative. Sure, Like, no, Like,
• 53:34
  Speaker 2: that's why we've got more than a thousand episodes. There's
• 53:37
  Speaker 2: so much I've got to cover.
• 53:39
  Speaker 1: Yeah, I agree, I completely agree, and I think it's
• 53:41
  Speaker 1: a really good Like you know, you can definitely slide
• 53:43
  Speaker 1: into any one of our dams and give your specific situation.
• 53:46
  Speaker 2: But exactly. Yeah, And that's why we create free contents
• 53:49
  Speaker 2: or its accessible. Take what resonates, leave what doesn't. I
• 53:52
  Speaker 2: love that, Beck, It's made my day anyway. Also, property
• 53:56
  Speaker 2: in your forties, Yes, if you have a mortgage, resist
• 54:01
  Speaker 2: the urge to refinance it for your lifestyle spending, like
• 54:05
  Speaker 2: being really brutal. You do not need to refinance your
• 54:08
  Speaker 2: house to go on a Europe trip. Sure you don't,
• 54:11
  Speaker 2: Sure you don't. And if you can't afford to go
• 54:14
  Speaker 2: on the Europe trip, well that's the nature of the situation,
• 54:17
  Speaker 2: isn't it.
• 54:18
  Speaker 1: Okay, Okay, we're not putting.
• 54:20
  Speaker 2: Our future selves at risk for that, Like every single
• 54:24
  Speaker 2: dollar of equity freed is better directed towards income generating investments. Yeah,
• 54:31
  Speaker 2: to putting you in a better financial position. Yep, Okay,
• 54:35
  Speaker 2: I really we're not doing this.
• 54:36
  Speaker 1: No, this is great. Thank you so much, Fetie.
• 54:40
  Speaker 2: I feel like we're getting towards the end. But Beck,
• 54:43
  Speaker 2: I feel like I've ranted at you a lot, so
• 54:44
  Speaker 2: I do apologize. I am just wildly passionate about these things.
• 54:50
  Speaker 2: But after everything that we've chatted about today, what have
• 54:53
  Speaker 2: we learned?
• 54:54
  Speaker 1: So first of all, it's never too late. Also, if
• 54:56
  Speaker 1: you're listening in your fifty sixty seventies, et cetera, et cetera.
• 54:59
  Speaker 2: Oh god, we just didn't have enough time this episode.
• 55:01
  Speaker 2: But I'm glad you're here too. Let me get to
• 55:03
  Speaker 2: that at some point. Also, really nice plug for our
• 55:07
  Speaker 2: friends Glenn James and Vince Scully. They have a podcast
• 55:10
  Speaker 2: together called Retire Right where they have it's so niche.
• 55:14
  Speaker 2: It's literally a podcast about retiring correctly. Go and check
• 55:19
  Speaker 2: that out, and it is actually incredible. Glenn James is
• 55:22
  Speaker 2: obviously a good friend of mine ex financial advisor, gives
• 55:26
  Speaker 2: really good advice. And Vince Scully is also a financial advisor,
• 55:30
  Speaker 2: but he's also my licensee, so like he's the one
• 55:33
  Speaker 2: that holds me accountable. But his podcast that him and
• 55:36
  Speaker 2: Glenn put together, it's just so informative and for that demographic,
• 55:42
  Speaker 2: like if you're looking to retire in the next ten
• 55:45
  Speaker 2: even fifteen years, like my friend, that is for you.
• 55:48
  Speaker 1: Oh, that's amazing. And there is a website money Smart
• 55:50
  Speaker 1: where you can like type in your own digits and
• 55:53
  Speaker 1: you know your age and stuff and like figure out
• 55:55
  Speaker 1: what you would need. So I think, yeah, we've we've
• 55:57
  Speaker 1: learned that timing is everything, but also so there is
• 56:00
  Speaker 1: it's never too late. There are clever things you can
• 56:02
  Speaker 1: do throughout your lifetime to help put you in a
• 56:05
  Speaker 1: better position financially. But honestly, starting now, starting yesterday, as
• 56:09
  Speaker 1: long as you're starting exactly.
• 56:11
  Speaker 2: And just because you didn't buy like after Pay or Microsoft,
• 56:16
  Speaker 2: it doesn't mean that you are out of the share market.
• 56:19
  Speaker 2: There are so many different ways that you can take
• 56:21
  Speaker 2: control of your wealth even if you can't control the
• 56:23
  Speaker 2: market or the economy. I wish we could, Beck, I've
• 56:26
  Speaker 2: said it a million times on the show. If we could,
• 56:28
  Speaker 2: I would, and I'd be so filthy rich.
• 56:31
  Speaker 1: Absolutely, we wouldn't be here. We wouldn't be here, would
• 56:34
  Speaker 1: be all right?
• 56:34
  Speaker 2: Friends? That is unfortunately all we have time for today.
• 56:37
  Speaker 2: I hope you've taken something out of this episode, if
• 56:40
  Speaker 2: not for today, for future you my friends. So we
• 56:43
  Speaker 2: will make sure that we include all of their helpful
• 56:45
  Speaker 2: links and references we've made along the way in our
• 56:48
  Speaker 2: show notes. But if you have any follow up questions,
• 56:51
  Speaker 2: please hit us up. We are literally we respond to
• 56:53
  Speaker 2: every DM we want to chat with you. We hope
• 56:55
  Speaker 2: that we've inspired you to maybe make a little bit
• 56:58
  Speaker 2: of our money move big money move. But take care
• 57:01
  Speaker 2: of yourselves and of each other, and we'll catch you
• 57:04
  Speaker 2: later in the week for Friday drinks.
• 57:05
  Speaker 1: Bye guys.
• 57:10
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• 57:13
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