Latest / She's On The Money / The psychology of saving

Transcript

The psychology of saving · She's On The Money

• 0:00
  Speaker 1: She's on the Money.
• 0:02
  Speaker 2: She's on the Money.
• 0:19
  Speaker 3: Hello, and welcome to She's on the Money, the podcast
• 0:21
  Speaker 3: for millennials who want financial freedom. My name is Annabel Lee,
• 0:25
  Speaker 3: as you guys might know by now, I'm a law student,
• 0:27
  Speaker 3: Annama millennial, and all I want to do is expand
• 0:29
  Speaker 3: my knowledge of money. To do that, each week, I
• 0:32
  Speaker 3: pick the brains of my friend money expert Victoria Divine.
• 0:35
  Speaker 4: Hi Victoria, good morning.
• 0:37
  Speaker 3: So what we're going to do this week, and I
• 0:38
  Speaker 3: think from here on out, is share anecdotes from people
• 0:41
  Speaker 3: in the Facebook group who are making great money decisions.
• 0:44
  Speaker 1: In the last week.
• 0:45
  Speaker 3: I've got one from Zara not McDonald who said, I
• 0:48
  Speaker 3: just closed down after pay and deleted the uber eats
• 0:51
  Speaker 3: app off my phone.
• 0:52
  Speaker 1: I feel like a new woman.
• 0:53
  Speaker 4: I think that's a really big one.
• 0:55
  Speaker 1: That is bold.
• 0:57
  Speaker 5: Uber eats is massive, like I get after pay, go
• 1:00
  Speaker 5: for it, eat your heart out, but I'm eating my
• 1:02
  Speaker 5: heart out or no, so.
• 1:04
  Speaker 1: No, I commend that making my decisions.
• 1:07
  Speaker 4: Sorry.
• 1:08
  Speaker 5: I have one from Alisia and she said, I woke
• 1:11
  Speaker 5: up this morning thinking how badly I didn't want to
• 1:13
  Speaker 5: be in debt anymore.
• 1:14
  Speaker 4: So I wrung every debt that.
• 1:15
  Speaker 5: I owed and I paid them all off because of
• 1:18
  Speaker 5: listening to you guys really inspired me and encouraged me.
• 1:21
  Speaker 4: I feel like a new woman. How good is that?
• 1:23
  Speaker 3: Both?
• 1:24
  Speaker 1: Zara Andalicia feel like new women?
• 1:25
  Speaker 4: Absolutely killing it.
• 1:26
  Speaker 3: Go girls, Victoria. Today we're talking all things saving yep.
• 1:30
  Speaker 3: The psychology of saving. It sounds so basic and so simple,
• 1:34
  Speaker 3: but it's something tons of millennial women are struggling to
• 1:36
  Speaker 3: get a handle on. So we're going to strip it
• 1:38
  Speaker 3: back and start building those bank accounts.
• 1:41
  Speaker 1: But before we really dive in it, let's share a.
• 1:42
  Speaker 3: Money win or a money confession from the week, as
• 1:45
  Speaker 3: we always do.
• 1:45
  Speaker 1: Would you like to go first?
• 1:46
  Speaker 4: Why do I always have to go? Okay? So I
• 1:50
  Speaker 4: have a money confession this week to.
• 1:54
  Speaker 5: So this weekend, it was really rainy and it was
• 1:56
  Speaker 5: quite cold, and we were going to go out, but
• 1:58
  Speaker 5: I decided I didn't want to do that, and so
• 2:00
  Speaker 5: I start at home and I thought, oh, what should
• 2:02
  Speaker 5: I do?
• 2:02
  Speaker 4: I should clean my house.
• 2:03
  Speaker 5: That that makes it so responsible, so responsible, right, except
• 2:07
  Speaker 5: for the fact that I got to the part of
• 2:09
  Speaker 5: cleaning my house where I was tidying up my pantry
• 2:12
  Speaker 5: and I decided that I needed all.
• 2:14
  Speaker 4: New pantry containers.
• 2:16
  Speaker 5: So I went out and purchased all new pantry containers
• 2:19
  Speaker 5: and redid my pantry over the weekend.
• 2:21
  Speaker 4: And I'll have you know, it looks beautiful.
• 2:23
  Speaker 1: It's got to be aesthetic.
• 2:24
  Speaker 5: But that is expensive. I did not realize how much
• 2:28
  Speaker 5: containers could add up to.
• 2:30
  Speaker 1: Did you like label all the containers?
• 2:31
  Speaker 4: Well, yes, I absolutely. I'll put it on my story
• 2:36
  Speaker 4: for today.
• 2:36
  Speaker 3: I've got a money win this week. I actually started
• 2:39
  Speaker 3: seeing a psychologist last Monday. The first session was last
• 2:42
  Speaker 3: Monday for no particular reason. I just thought it's important.
• 2:44
  Speaker 3: Psychologists are important. But I thought i'd left it so
• 2:47
  Speaker 3: late because I thought you had to pay for psychologists.
• 2:50
  Speaker 3: Turns out I can get ten free sessions.
• 2:53
  Speaker 1: What's it called.
• 2:53
  Speaker 5: It's called the Mental Health Care Plan, that's it. Yeah,
• 2:56
  Speaker 5: it's actually really really cool.
• 2:57
  Speaker 4: Yeah, and I think it gives.
• 2:59
  Speaker 5: You a real good base. So each year, ten sessions
• 3:02
  Speaker 5: that you can use.
• 3:04
  Speaker 4: Keep on track. I started on that. Yeah, very Good's great,
• 3:07
  Speaker 4: good work, Thank you so much.
• 3:09
  Speaker 3: Moving track a little bit, let's talk about something that
• 3:12
  Speaker 3: keeps rearing its head in the Facebook group savings. First
• 3:17
  Speaker 3: of all, do you have to be on a cushy
• 3:18
  Speaker 3: salary to be able to save money?
• 3:20
  Speaker 5: So I think that this is a really big misconception
• 3:23
  Speaker 5: that you need to be earning a lot to be
• 3:26
  Speaker 5: saving at all. And I think a lot of people say, well,
• 3:29
  Speaker 5: when I earn eighty thousand dollars, I'll start saving, And
• 3:32
  Speaker 5: to me, that's very like saying well, I'll go to
• 3:35
  Speaker 5: the gym when i'm skinny and i'm fit, And I
• 3:38
  Speaker 5: think that that's just the wrong way to look at
• 3:40
  Speaker 5: it completely. I think that you should be starting to
• 3:43
  Speaker 5: create habits with whatever salary you do have. And whilst
• 3:47
  Speaker 5: I know that that's not an easy thing to do.
• 3:50
  Speaker 5: If you've got goals and you want to be creating
• 3:53
  Speaker 5: the life that you think you deserve, saving is a
• 3:55
  Speaker 5: very key part of that. And being able to compartmentalize
• 3:59
  Speaker 5: your sales and work out, you know, what part of
• 4:02
  Speaker 5: it you're going to be putting away each week or
• 4:03
  Speaker 5: each month is really important. And the time to do
• 4:07
  Speaker 5: that is now, not when you're earning more money.
• 4:09
  Speaker 1: So some background to all of this.
• 4:10
  Speaker 3: The median and Australian income is fifty seven, nine hundred
• 4:14
  Speaker 3: and eighteen dollars a year before tax. It is which
• 4:16
  Speaker 3: equates to the average ossie having about one thousand, nine
• 4:19
  Speaker 3: hundred dollars deposited into their bank account every fortnight, or
• 4:22
  Speaker 3: three thy eight hundred every month. On top of that,
• 4:24
  Speaker 3: Ossie men are saving on average five hundred and seven
• 4:26
  Speaker 3: dollars a month, while Ossie women are saving three hundred
• 4:29
  Speaker 3: and forty.
• 4:29
  Speaker 1: Six dollars a month. Why does the average Australian woman
• 4:32
  Speaker 1: find saving so tough?
• 4:34
  Speaker 6: So?
• 4:34
  Speaker 5: I think first things first, here, women on average earn
• 4:37
  Speaker 5: less than men, so that obviously could play into why
• 4:40
  Speaker 5: women are saving less than men. And I think that's,
• 4:44
  Speaker 5: you know, an important point, but it also doesn't get
• 4:46
  Speaker 5: you guys off the hook at all. I don't want
• 4:48
  Speaker 5: you to think that because we're earning less or maybe
• 4:51
  Speaker 5: working less, or you know, we have part time roles,
• 4:53
  Speaker 5: or you know, we spend more on you know, life
• 4:56
  Speaker 5: than men do.
• 4:57
  Speaker 4: I think that that is those things.
• 4:59
  Speaker 5: Are all just excuses for you not putting money aside
• 5:03
  Speaker 5: and saving. I think that people are really good at
• 5:07
  Speaker 5: not taking ownership of their own issues and blaming other
• 5:10
  Speaker 5: things like their upbringings or their influencers or you know,
• 5:13
  Speaker 5: the friends they circulate with, or their lifestyle they think
• 5:16
  Speaker 5: they deserve to have. So I think women are not
• 5:19
  Speaker 5: saving as much because they haven't put plans in place,
• 5:21
  Speaker 5: and it's as simple as that. If you guys wanted
• 5:23
  Speaker 5: to be saving that amount you potentially could be obviously
• 5:27
  Speaker 5: dependent upon you know how much income you're deriving in
• 5:30
  Speaker 5: the first place, and you know whether your income actually
• 5:33
  Speaker 5: leaves enough.
• 5:34
  Speaker 4: After basics for you to save.
• 5:37
  Speaker 5: I think women are finding it tough because they haven't
• 5:40
  Speaker 5: been tough enough on themselves.
• 5:41
  Speaker 3: So do you think our attitude towards saving needs work?
• 5:44
  Speaker 1: Then do you think we assume it's too out of reach?
• 5:47
  Speaker 5: I think it does need work, And I think that
• 5:50
  Speaker 5: this is one of those harsh.
• 5:51
  Speaker 4: But true realities of life.
• 5:54
  Speaker 5: And I don't want to sit here and say, oh,
• 5:56
  Speaker 5: well I can save, and people look at me and go, well, okay,
• 6:00
  Speaker 5: she can save, but that's definitely beyond me, like she's
• 6:03
  Speaker 5: putting unrealistic expectations on us. I think there's a couple
• 6:07
  Speaker 5: of reasons why people struggle. Well, the first is our upbringing.
• 6:10
  Speaker 5: You know, if you've been raised in a frugal household,
• 6:13
  Speaker 5: you're more likely to be frugal and have the perception
• 6:16
  Speaker 5: that money is not everlasting. It is something that you
• 6:20
  Speaker 5: know you've got to spend it the second you get it,
• 6:22
  Speaker 5: and you know, look after yourself when you can. I
• 6:25
  Speaker 5: think another reason women actually struggle is this concept called
• 6:29
  Speaker 5: learned helplessness and what is that. So it's a state
• 6:34
  Speaker 5: of mind that causes people to believe that there's nothing
• 6:36
  Speaker 5: they can do to escape their negative situation, when the opposite.
• 6:40
  Speaker 4: Is actually true. The power is actually all in your hands.
• 6:44
  Speaker 5: And if it relates to saving money, learned helplessness often
• 6:47
  Speaker 5: arises in people who have had consistently negative experiences with money,
• 6:51
  Speaker 5: so they believe that negative things are going to happen
• 6:54
  Speaker 5: around money, that they're not going to be able to
• 6:56
  Speaker 5: save money because historically that's been true for them, But
• 7:00
  Speaker 5: it doesn't have to be true moving forwards.
• 7:02
  Speaker 3: I feel like it ties back kind of to the
• 7:05
  Speaker 3: Your Money Stories episode that we did. Absolutely, I feel
• 7:07
  Speaker 3: like I avoid that because I've gone through or my
• 7:10
  Speaker 3: family have gone through some kind of financial hardship.
• 7:12
  Speaker 7: Yeah.
• 7:12
  Speaker 1: Absolutely, and I think for everyone.
• 7:14
  Speaker 5: Yeah, I think learned helplessness comes into play because it
• 7:17
  Speaker 5: can most often come up during childhood. It's something that
• 7:21
  Speaker 5: is kind of drummed into them inadvertently, but it can
• 7:24
  Speaker 5: also come up from adult experiences as well. So the
• 7:27
  Speaker 5: more often you experience failed attempts at saving, the more
• 7:31
  Speaker 5: likely you are to believe that you're simply not capable
• 7:34
  Speaker 5: of doing so. And I think, in other words, you
• 7:36
  Speaker 5: begin to think that that inability to save money is
• 7:39
  Speaker 5: a part of who you are, not something that you
• 7:41
  Speaker 5: can actually achieve. And I think we really need to
• 7:43
  Speaker 5: push forward with this. And you know, a community like
• 7:46
  Speaker 5: She's on the Money is here to support you and
• 7:48
  Speaker 5: to lift you up, and you know, we're all in
• 7:50
  Speaker 5: it together, and I think that that is something we
• 7:53
  Speaker 5: can get over together as well.
• 7:54
  Speaker 1: One undred percent. Some people worry that saving money might
• 7:57
  Speaker 1: restrict their lifestyle. Do you think that that's true?
• 8:00
  Speaker 5: Yes, I do think it's true, because if you're spending
• 8:04
  Speaker 5: every dollar that you are earning on the lifestyle that
• 8:07
  Speaker 5: you currently have, bringing it back a little bit and
• 8:10
  Speaker 5: saying well, now I want to save one hundred dollars
• 8:12
  Speaker 5: a month, two hundred dollars a month is going to
• 8:14
  Speaker 5: impact the way you live your life, because if you
• 8:17
  Speaker 5: were spending that money before and you're now not wanting
• 8:21
  Speaker 5: to spend that money, you know, what are you missing
• 8:23
  Speaker 5: out on? And I don't want it to be a
• 8:25
  Speaker 5: situation where you're missing out on anything. But saving is
• 8:27
  Speaker 5: about declayed gratification and essentially deferring instant.
• 8:31
  Speaker 4: Gratification for later.
• 8:33
  Speaker 5: So I think the mindset of people needs to change dramatically,
• 8:37
  Speaker 5: So you need to be looking at it, not oh, well,
• 8:40
  Speaker 5: my lifestyle is going to change negatively, and I'm not
• 8:43
  Speaker 5: going to be able to, you know, go out for
• 8:44
  Speaker 5: coffee with my friends or do this or do that too.
• 8:47
  Speaker 5: If I don't go out for coffee with my friends
• 8:49
  Speaker 5: and spend thirty dollars on brunch today, it means that
• 8:52
  Speaker 5: at some point in the future, I can use that
• 8:54
  Speaker 5: money for something else.
• 8:55
  Speaker 3: So I often or I sometimes find that I'm either
• 8:58
  Speaker 3: aggressively saving it at the expense of having fun like
• 9:01
  Speaker 3: going out on those thirty dollars brunch dates, or I'm
• 9:04
  Speaker 3: finding that I'm spending far too much. Is finding that
• 9:07
  Speaker 3: sweet spot difficult for everyone?
• 9:08
  Speaker 6: Do you think?
• 9:09
  Speaker 4: I think it is?
• 9:09
  Speaker 5: And I wish I was more like you and I
• 9:11
  Speaker 5: was a little bit more frugal with my brunches and
• 9:13
  Speaker 5: going out and made some smarter decisions. But I think
• 9:16
  Speaker 5: we all feel like we have things that we can
• 9:19
  Speaker 5: approve on.
• 9:21
  Speaker 4: I think it's about goals.
• 9:22
  Speaker 5: I think it's about setting realistic goals and having a
• 9:24
  Speaker 5: look at all of those little things that you do
• 9:26
  Speaker 5: in your life that add up. So if brunch is
• 9:28
  Speaker 5: an issue for you, and I never think brunches, but
• 9:32
  Speaker 5: if brunch is something that you're spending a significant amount
• 9:35
  Speaker 5: of money on, have a look at how you can
• 9:38
  Speaker 5: change the way you're spending at brunch. Could you potentially
• 9:41
  Speaker 5: go with your girlfriends to brunch and.
• 9:43
  Speaker 4: Just get a coffee?
• 9:44
  Speaker 5: Could you go and pick a menu item that is
• 9:47
  Speaker 5: a lot less than what you'd usually do. If you're
• 9:50
  Speaker 5: going and getting the nineteen dollar eggs ben addict with
• 9:52
  Speaker 5: extra bacon, with extra bacon and like me yesterday, halloumi
• 9:56
  Speaker 5: on the side, oh, you do not need that. You're
• 9:59
  Speaker 5: then spending cl twenty five dollars on a brunch. Can
• 10:02
  Speaker 5: you go along and maybe get a toasted sandwich and
• 10:04
  Speaker 5: a coffee. Maybe you don't need the additional coffee at the.
• 10:07
  Speaker 8: End of brunch.
• 10:07
  Speaker 5: I think it's all about looking at what your situation
• 10:10
  Speaker 5: is and tweaking small things along the way instead of
• 10:14
  Speaker 5: just going along and going, well, okay, I'm helpless. Now
• 10:17
  Speaker 5: we're going to brunch. I guess I'm gonna have to
• 10:18
  Speaker 5: spend nineteen dollars on expendedit.
• 10:20
  Speaker 3: So you don't have to give up those fun experiences altogether,
• 10:23
  Speaker 3: which I often find that I do.
• 10:24
  Speaker 4: No, I don't think so.
• 10:25
  Speaker 5: I think it's about being reasonable and really aware of
• 10:28
  Speaker 5: what you're spending, So having a think about what you're
• 10:31
  Speaker 5: going to spend going into it is a really good idea,
• 10:33
  Speaker 5: and not feeling helpless about it the entire time, not saying, oh,
• 10:37
  Speaker 5: I've accepted an invitation to brunch and now look at me,
• 10:40
  Speaker 5: I'm going to have to spend twenty five dollars when
• 10:42
  Speaker 5: it's not the case. The power is still in your
• 10:44
  Speaker 5: hands and it's only up to you to make a
• 10:47
  Speaker 5: good decision or not so good decision.
• 10:49
  Speaker 3: Lots of Australian women feel like they don't have control
• 10:52
  Speaker 3: over their financial position and their wealth.
• 10:54
  Speaker 1: Do you think this is accurate?
• 10:56
  Speaker 5: I think so, And I think that goes back to
• 10:58
  Speaker 5: this learned helplessness. Have experienced negativity in our experience is
• 11:03
  Speaker 5: thus far, so therefore we think it's going to carry through.
• 11:07
  Speaker 5: And I think that we've always felt maybe a little
• 11:09
  Speaker 5: less educated or a little less financially literate than men,
• 11:14
  Speaker 5: so therefore we feel less empowered. And I think, you know,
• 11:16
  Speaker 5: we're doing a lot to change that we're trying to
• 11:18
  Speaker 5: do a lot to change that right now, but we've
• 11:21
  Speaker 5: always felt less empowered over their position and their wealth
• 11:24
  Speaker 5: because potentially we don't understand what we're doing or how
• 11:27
  Speaker 5: to do what we want to do.
• 11:29
  Speaker 3: So talking about and sharing your own missteps and everything
• 11:32
  Speaker 3: is important.
• 11:33
  Speaker 5: I guess yes, I think it's really important to be
• 11:35
  Speaker 5: sharing those things and having discussions about money, and a
• 11:38
  Speaker 5: discussion about money with your friends doesn't necessarily mean divulging
• 11:42
  Speaker 5: all your personal details and telling them how much you
• 11:45
  Speaker 5: earn and how much you've been spending in you know,
• 11:47
  Speaker 5: the personal debt you could be in. I think having
• 11:49
  Speaker 5: a conversation with friends around hey brunch is pretty expensive. Why, like,
• 11:54
  Speaker 5: is there something else we can do? Is there somewhere
• 11:56
  Speaker 5: else we can go? Is there something that we can change?
• 11:59
  Speaker 5: Because you don't have to divulge all your information to
• 12:02
  Speaker 5: tell your friends you're working towards a bigger goal and
• 12:04
  Speaker 5: that brunch doesn't align to that.
• 12:06
  Speaker 3: These days, I've been catching up with friends and going
• 12:08
  Speaker 3: for walks because it's like, you get your social interaction in.
• 12:10
  Speaker 1: You don't have to go to the gym. You can
• 12:12
  Speaker 1: just go for the leisurely walk.
• 12:13
  Speaker 5: A couple of my friends and I have been doing
• 12:15
  Speaker 5: that recently as well, and albeit it's been very cold,
• 12:18
  Speaker 5: I actually prefer it. I feel like we have deeper
• 12:20
  Speaker 5: conversations and we end up, you know, waffling on about
• 12:24
  Speaker 5: things that I never would have waffled on about at brunch,
• 12:27
  Speaker 5: because I feel like brunch can be a little bit
• 12:29
  Speaker 5: disjointed at like, guess, and.
• 12:31
  Speaker 1: There are people around you.
• 12:32
  Speaker 4: There are people around you.
• 12:33
  Speaker 5: You know, someone comes over and asks you if you
• 12:35
  Speaker 5: want a coffee and your conversation ends, or you're sitting
• 12:39
  Speaker 5: at brunch and you're looking at someone else and you're like, oh,
• 12:41
  Speaker 5: you get a little bit distracted. Whereas I feel like
• 12:44
  Speaker 5: the walks I've fit on recently, I've had some very
• 12:46
  Speaker 5: deep and meaningful conversations with my friends.
• 12:48
  Speaker 1: I'd recommend it.
• 12:49
  Speaker 3: Guys, Yeah, Hi, there, you've called the Shees on the
• 12:57
  Speaker 3: Money Hotline.
• 12:58
  Speaker 1: Do you have a money problem? What helps solving?
• 13:01
  Speaker 3: Do you have a money dilemma you just want to
• 13:02
  Speaker 3: chat about. Victoria is here to help. Every week, we'll
• 13:06
  Speaker 3: be playing your hotline questions to help make sense of
• 13:08
  Speaker 3: the money mess you may have found yourself in. Give
• 13:10
  Speaker 3: us a call on four three, five, two nine three
• 13:12
  Speaker 3: double eight six, and you might find.
• 13:14
  Speaker 1: Yourself on the show. Over to today's listener question.
• 13:22
  Speaker 7: Hi, Victorian Annabel, I love listening to your podcast and
• 13:24
  Speaker 7: really are home for the third time, and I'm learning
• 13:26
  Speaker 7: what percentage of my income ship is going towards the
• 13:29
  Speaker 7: rent as I'm also trying to stay for a more
• 13:30
  Speaker 7: such ex same time, a little bit concern that I'm
• 13:34
  Speaker 7: spending too much, but also I'm not sure how the
• 13:37
  Speaker 7: life should be spending. Any help would be gay.
• 13:41
  Speaker 3: So Victoria, what, in your opinion, is a figure or
• 13:44
  Speaker 3: a percentage you can justify spending rent on.
• 13:46
  Speaker 5: So this is a really hard question to answer because
• 13:49
  Speaker 5: it depends on where you live and the lifestyle costs
• 13:53
  Speaker 5: of the you know state or city or you know
• 13:56
  Speaker 5: town that you're living in. But I would never want
• 14:00
  Speaker 5: to see someone spending more than thirty or forty percent
• 14:03
  Speaker 5: of their income on rent. I think a lot of
• 14:05
  Speaker 5: people do, and they live these lifestyles that they really love.
• 14:11
  Speaker 4: But if you want to live.
• 14:12
  Speaker 5: In an apartment that is costing you seventy percent of
• 14:15
  Speaker 5: your income, I'm not surprised you're not able to save.
• 14:18
  Speaker 5: I'm not surprised that you're not able to defer that
• 14:21
  Speaker 5: gratification of living in a nice house now so you
• 14:23
  Speaker 5: can live in a nice house later. I think it's
• 14:25
  Speaker 5: honestly a little bit baffling when people say to me, Hey, Victoria,
• 14:28
  Speaker 5: this is how much I'm spending on rent. How else
• 14:31
  Speaker 5: can I save? And my first thing is, well, you're
• 14:34
  Speaker 5: spending seventy or seventy five percent on rent, Move like,
• 14:37
  Speaker 5: move into an apartment that is more aligned to your goals.
• 14:40
  Speaker 5: Move into an apartment that doesn't cost you everything that
• 14:43
  Speaker 5: you're earning.
• 14:44
  Speaker 3: So I'm currently renting, but I'd also like to buy
• 14:47
  Speaker 3: property one day. There's this big idea though, that if
• 14:49
  Speaker 3: you're renting, you'll never be able to buy a home
• 14:51
  Speaker 3: or save money. Do you think this is a myth
• 14:53
  Speaker 3: that we need to bust.
• 14:54
  Speaker 4: Yes, absolutely so.
• 14:56
  Speaker 5: I think that if you're renting, you are absolutely still
• 14:59
  Speaker 5: in a position where you you can purchase a home,
• 15:01
  Speaker 5: because you need to be saving as well. If you
• 15:04
  Speaker 5: are spending so much money on rent that you are
• 15:07
  Speaker 5: unable to save, that is too much money on rent,
• 15:10
  Speaker 5: So potentially it's time to have a look at how
• 15:12
  Speaker 5: you can cut that down. If you're living with your
• 15:15
  Speaker 5: partner and you have a beautiful apartment, but you're spending
• 15:18
  Speaker 5: seventy percent of your incomes on rent. Is it time
• 15:22
  Speaker 5: to have a look at maybe having a housemate, or
• 15:24
  Speaker 5: is it time to look at moving into a sharehouse
• 15:27
  Speaker 5: or moving into a cheaper apartment that you can live
• 15:29
  Speaker 5: in in the short term so that you can achieve
• 15:32
  Speaker 5: your long term goal of purchasing a home.
• 15:34
  Speaker 1: I think it's you.
• 15:35
  Speaker 5: Know, there's a meme going around on Instagram at the
• 15:38
  Speaker 5: moment that says, if you live fake rich now, you're
• 15:41
  Speaker 5: going to live real poor later, And I think it's very,
• 15:43
  Speaker 5: very true.
• 15:44
  Speaker 4: I really like.
• 15:45
  Speaker 5: That statement because I think that a lot of people
• 15:48
  Speaker 5: are living beyond their means right now while still being
• 15:51
  Speaker 5: able to afford that.
• 15:52
  Speaker 1: Memes are so relevant.
• 15:54
  Speaker 3: On that note, though, how important is it to make
• 15:56
  Speaker 3: sure your partner or your housemate and you share similar
• 15:59
  Speaker 3: mine values?
• 16:01
  Speaker 5: Back to our money story conversation, I think it's really
• 16:03
  Speaker 5: important to not only understand your own money story, but
• 16:06
  Speaker 5: understand the money stories of those around you so that
• 16:09
  Speaker 5: you can fit with them, because if you don't take
• 16:13
  Speaker 5: those things into consideration, their money stories and potentially the
• 16:16
  Speaker 5: bad parts of their money stories become a part of yours.
• 16:19
  Speaker 5: So if they're a person who is not usually into
• 16:23
  Speaker 5: looking into, you know, how to best save money on
• 16:25
  Speaker 5: bills or looking for the best deals, but you are,
• 16:27
  Speaker 5: but you let it laps, You're potentially not putting yourself
• 16:30
  Speaker 5: in the best possible financial position. Equally, are they you know?
• 16:34
  Speaker 5: Are they dining out every night? And you become a
• 16:36
  Speaker 5: part of that culture, like what are the expectations upfront?
• 16:39
  Speaker 5: How do you spend money? What are your values? How
• 16:42
  Speaker 5: are you working towards goals together? Having a housemate is
• 16:46
  Speaker 5: really fantastic in some of these situations too, because they
• 16:48
  Speaker 5: can be your accountability buddy. There can be the one
• 16:51
  Speaker 5: that calls you out when you're ordering over eats too
• 16:52
  Speaker 5: many times per week. So I think we need to
• 16:55
  Speaker 5: see housemates as a really good accountability buddy now instead
• 16:59
  Speaker 5: of someone that costs you money.
• 17:10
  Speaker 3: And as always, now it's time for the fun stuff.
• 17:12
  Speaker 3: What good would this be if we didn't bring you
• 17:14
  Speaker 3: the purvy stuff? Yep, it's time for our weekly money dary.
• 17:18
  Speaker 8: Let's go.
• 17:18
  Speaker 3: Today's money dary is from a twenty three year old
• 17:20
  Speaker 3: student who says she's still figuring it out.
• 17:23
  Speaker 8: I feel like.
• 17:24
  Speaker 6: I am I have an idea of what I'm doing
• 17:27
  Speaker 6: with money, but I feel like sometimes priorities aren't really
• 17:32
  Speaker 6: where they should be, but at the same time, like
• 17:36
  Speaker 6: I know where they should be, but I feel like
• 17:38
  Speaker 6: my situation sort of prevents me from doing what I
• 17:41
  Speaker 6: feel like I need to.
• 17:42
  Speaker 8: Do or what I should be doing.
• 17:44
  Speaker 6: I'm currently a full time student and then I have
• 17:47
  Speaker 6: about four jobs, but I feel like I am always
• 17:50
  Speaker 6: paying out so much then so much more than what
• 17:53
  Speaker 6: I am getting in. So I feel like I'm always
• 17:57
  Speaker 6: not balanced, like I'm trying to do what I can
• 18:00
  Speaker 6: what I have, but every time I have money coming in,
• 18:03
  Speaker 6: it's just in and out straightaway, like it. Yeah, I
• 18:06
  Speaker 6: feel like it's never in my account long enough to
• 18:08
  Speaker 6: do anything with it.
• 18:10
  Speaker 3: Okay, so we know twenty three and figuring it out
• 18:12
  Speaker 3: has had it tough.
• 18:13
  Speaker 1: But let's hear the juicy stuff.
• 18:15
  Speaker 3: How much does she earn and how much is sitting
• 18:17
  Speaker 3: in her bank account right now?
• 18:18
  Speaker 6: So I have all four of the jobs casual, two
• 18:22
  Speaker 6: of them I get paid fortnightly, one just works on
• 18:26
  Speaker 6: school holidays, and the other one is like a mentoring program.
• 18:30
  Speaker 6: So that comes in one thousand dollar lots, So four
• 18:34
  Speaker 6: times a year we get one thousand dollars.
• 18:37
  Speaker 8: So yeah, there's that from that, so four.
• 18:39
  Speaker 6: Thousand for that one, and then well, having just done
• 18:43
  Speaker 6: my tax I think for last year, I earned about
• 18:46
  Speaker 6: nineteen thousand. Yeah, across the year, I have about five
• 18:50
  Speaker 6: hundred dollars in my savings account.
• 18:52
  Speaker 8: For the last two years.
• 18:54
  Speaker 6: Last year I put my made my New Year's resolution
• 18:57
  Speaker 6: to save ten thousand dollars.
• 18:59
  Speaker 8: That didn't happen.
• 19:00
  Speaker 6: So this year I adjusted and thought, okay, let's just
• 19:03
  Speaker 6: go down a little bit and go to five thousand.
• 19:05
  Speaker 6: So five hundred and five thousand not quite the same,
• 19:08
  Speaker 6: But yeah, I feel like I've done things that I
• 19:13
  Speaker 6: want to do with my money. Like I sort of
• 19:15
  Speaker 6: feel like if with my money, that at least I'm
• 19:19
  Speaker 6: enjoying what I'm doing. But I do understand that you
• 19:22
  Speaker 6: do need to have money as well, so I would
• 19:24
  Speaker 6: like to have more than five hundred dollars in there.
• 19:28
  Speaker 3: But yeah, so we know how this twenty three year
• 19:31
  Speaker 3: old gets paid, but what exactly happens to that money
• 19:34
  Speaker 3: after it's deposited into her account?
• 19:36
  Speaker 6: So when I get paid from my two like fortnightly
• 19:40
  Speaker 6: from two jobs, one of them I get about one
• 19:44
  Speaker 6: hundred and twenty dollars and then the other one I
• 19:46
  Speaker 6: get about two hundred and So I have a debt
• 19:49
  Speaker 6: for in visiline, so for like a teeth treatment, So
• 19:53
  Speaker 6: I pay eighty dollars a week for that, So that
• 19:56
  Speaker 6: goes on a Wednesday, and then I pay off one
• 19:59
  Speaker 6: hundred and twenty five do each fortnite for my car,
• 20:01
  Speaker 6: So that's two hundred dollars pretty much straight away. So
• 20:04
  Speaker 6: it leaves me with about eighty and then forty dollars
• 20:07
  Speaker 6: for petrol to fill my car for the week. And
• 20:09
  Speaker 6: so I'm, yeah, sort of left with forty dollars for me.
• 20:12
  Speaker 1: It's time for the dreaded question, what about investing?
• 20:16
  Speaker 8: I don't invest, I haven't ever.
• 20:20
  Speaker 6: I don't really know much about it, but I feel
• 20:23
  Speaker 6: like I don't really have enough either knowledge or money
• 20:27
  Speaker 6: to make anything like worthwhile of that.
• 20:30
  Speaker 1: And where does she sit with her debts?
• 20:31
  Speaker 8: Okay, so I.
• 20:32
  Speaker 6: Have my car loan, so I pay one hundred and
• 20:35
  Speaker 6: twenty five dollars a fortnight and I think the car
• 20:39
  Speaker 6: was around seventeen thousand, so plus the interest on top
• 20:42
  Speaker 6: of that when you're paying it back, and then my
• 20:46
  Speaker 6: invisi line is around eight thousand dollars, that works out
• 20:50
  Speaker 6: to be about.
• 20:51
  Speaker 8: Eighty dollars a week.
• 20:53
  Speaker 6: Then I also have my hex step for UNI, which
• 20:55
  Speaker 6: is about twenty eight thousand. And then I also have
• 20:59
  Speaker 6: a enteling debt of about two thousand that I pay
• 21:03
  Speaker 6: every fortnight, just a little amount. So when I was
• 21:06
  Speaker 6: getting my car, actually my car died on the side
• 21:09
  Speaker 6: of the road after Adella's concert, so I didn't actually
• 21:12
  Speaker 6: have the money saved up to buy a new car.
• 21:15
  Speaker 6: Like I didn't just decide that I wanted a new car.
• 21:18
  Speaker 6: It sort of got to a point where I needed
• 21:20
  Speaker 6: one and I couldn't get around, And our family situation
• 21:23
  Speaker 6: meant that I couldn't just borrow money off my parents
• 21:26
  Speaker 6: to get a new car. It was sort of like
• 21:28
  Speaker 6: a need and a yeah straight away and something that
• 21:32
  Speaker 6: they couldn't really help with rite on the spot. So
• 21:35
  Speaker 6: I had to take out a personal loan through not
• 21:37
  Speaker 6: through the bank because I didn't earn enough, but through
• 21:40
  Speaker 6: the car yard.
• 21:41
  Speaker 3: Directly does twenty three and figuring it out. Have any
• 21:43
  Speaker 3: good money habits that she's especially proud of.
• 21:45
  Speaker 6: I find that I don't spend money on clothes, shoes,
• 21:50
  Speaker 6: going out, like food or anything like that I would
• 21:53
  Speaker 6: spend it. Well, I do spend it on traveling and
• 21:56
  Speaker 6: going on holidays, So I feel like that is a
• 21:59
  Speaker 6: large amount of that is going towards that. But if
• 22:01
  Speaker 6: I was to add up, if I was to buy
• 22:04
  Speaker 6: something every week, a new piece of clothing every single week,
• 22:07
  Speaker 6: and then add all that up, it would probably equal
• 22:09
  Speaker 6: the same amount as going away anyway. So I, yeah,
• 22:12
  Speaker 6: would prefer to bundle all of my money up and
• 22:15
  Speaker 6: spend on something like a week away rather than yet
• 22:19
  Speaker 6: on something like a material piece.
• 22:21
  Speaker 1: What about her worst money habit?
• 22:23
  Speaker 6: I think my worst money habit is probably when I
• 22:27
  Speaker 6: do see more money than usual in my account, I think, oh, yeah, awesome,
• 22:31
  Speaker 6: like this is good, so I can just spend it,
• 22:35
  Speaker 6: which yeah, probably isn't the best.
• 22:37
  Speaker 3: So what's today's money diarist? Actually saving for? What's her
• 22:41
  Speaker 3: big money goal?
• 22:42
  Speaker 6: I think the reason behind having or wanting to have
• 22:46
  Speaker 6: five thousand dollars saved is not so much saving up
• 22:49
  Speaker 6: for something in particular, but just to have money. Like
• 22:52
  Speaker 6: I don't really just have money there, Like if something
• 22:55
  Speaker 6: was to happen, I don't really have anything to fall
• 22:58
  Speaker 6: back on, So I think just knowing that there is
• 23:00
  Speaker 6: least something there. It might not be a lot, but yeah,
• 23:03
  Speaker 6: just having something to fall back on.
• 23:05
  Speaker 8: Yeah, it would be good.
• 23:06
  Speaker 3: So how would today's money diarist to rate her own
• 23:08
  Speaker 3: relationship with money? If we forced her to give herself
• 23:10
  Speaker 3: a grade.
• 23:11
  Speaker 8: I would probably give myself.
• 23:13
  Speaker 6: A maybe, like a bus or a C plus because
• 23:17
  Speaker 6: I feel like I know what I need to be doing,
• 23:20
  Speaker 6: but my situation and like the income that I have
• 23:22
  Speaker 6: doesn't physically allow me to do what I know that
• 23:26
  Speaker 6: I should be doing. But yeah, I feel like I'm
• 23:28
  Speaker 6: not like silly with money, and I understand, yeah, what
• 23:32
  Speaker 6: needs to be done, but at the moment, as a student, I, yeah,
• 23:36
  Speaker 6: feel like I just can't do that.
• 23:38
  Speaker 1: So Victoria, what were your first thoughts?
• 23:41
  Speaker 5: I understand that she's in a position where she has
• 23:44
  Speaker 5: these goals, but I felt like those goals potentially didn't
• 23:47
  Speaker 5: meet her salary. So I felt like she was setting
• 23:50
  Speaker 5: herself up for failure, to be honest, because she at
• 23:54
  Speaker 5: the start said her income was nineteen thousand dollars but
• 23:57
  Speaker 5: that she had a savings goal of ten thousand dollars.
• 24:00
  Speaker 5: And I found that to be quite unrealistic for her
• 24:02
  Speaker 5: income and all of the other expenses she has in
• 24:06
  Speaker 5: her life.
• 24:06
  Speaker 3: And I guess it'd make you feel a little bit deflated. Yeah,
• 24:08
  Speaker 3: and you weren't saving your goal.
• 24:10
  Speaker 5: Yeah, and back to what we were talking about earlier
• 24:12
  Speaker 5: in the episode about learned helplessness, this is going to
• 24:15
  Speaker 5: make her feel helpless if she's setting a goal for
• 24:18
  Speaker 5: herself that she's unable to achieve. If she's saying, well,
• 24:21
  Speaker 5: I need to save ten thousand dollars that's more than
• 24:24
  Speaker 5: fifty percent of her income, and she's making decisions like
• 24:28
  Speaker 5: going and getting eight thousand dollars on in visi line, like,
• 24:31
  Speaker 5: these things aren't adding up, and I feel like it's
• 24:34
  Speaker 5: going to leave her feeling really deflated and like she's
• 24:37
  Speaker 5: maybe not able to achieve goals or you know, create
• 24:40
  Speaker 5: the life that she wants to create for herself. It's
• 24:43
  Speaker 5: good that she's wanting to save the amounts of money, though,
• 24:45
  Speaker 5: I guess absolutely, and I think it's really important to
• 24:48
  Speaker 5: have those things in place. But I think it's also
• 24:50
  Speaker 5: really important to be realistic about these things and set
• 24:54
  Speaker 5: goals that are in that smart framework, so making sure
• 24:57
  Speaker 5: that they are specific and they are actually relevant to
• 25:00
  Speaker 5: your situation, because the easiest way to get off track
• 25:03
  Speaker 5: and feel disheartened is to set a goal that you're
• 25:06
  Speaker 5: not able to achieve for yourself.
• 25:07
  Speaker 1: So what do you think that she could improve on?
• 25:09
  Speaker 5: Then?
• 25:09
  Speaker 1: How could she set those realistic goals?
• 25:11
  Speaker 5: I think going back to the really basic smart methodology
• 25:14
  Speaker 5: of having specific, measurable, achievable, realistic and timely goals is important.
• 25:19
  Speaker 5: It sounds really lame. I'll post a goal setting chart
• 25:23
  Speaker 5: in the Facebook group this week for everyone if they
• 25:25
  Speaker 5: want to use that. But I think setting really unambiguous
• 25:29
  Speaker 5: goals is really important because if we set ourselves up
• 25:33
  Speaker 5: for failure from the beginning, there's no way we're going
• 25:35
  Speaker 5: to want to get up every single time and try
• 25:37
  Speaker 5: again when it feels fruitless.
• 25:39
  Speaker 3: So do you think a better idea for her would
• 25:41
  Speaker 3: be setting micro goals? So maybe month to month saving
• 25:44
  Speaker 3: a certain amount, and what amount do you think she
• 25:46
  Speaker 3: should be saving?
• 25:47
  Speaker 5: I think that that's a really good idea. Actually setting
• 25:49
  Speaker 5: smaller goals that you can achieve on a month to
• 25:52
  Speaker 5: month basis is going to keep you motivated for the
• 25:54
  Speaker 5: long term, as opposed to looking at a big goal
• 25:57
  Speaker 5: like ten thousand dollars and always feeling like you haven't
• 26:00
  Speaker 5: made it. So setting small goals, but making sure that
• 26:03
  Speaker 5: they are actually aligned to her income. So she said
• 26:06
  Speaker 5: she already has eighty dollars a week coming out for
• 26:09
  Speaker 5: in biziligne that's going to impact her savings. She has
• 26:12
  Speaker 5: a personal loan for a car that's going to impact
• 26:14
  Speaker 5: how much she's able to save. So I think here
• 26:17
  Speaker 5: debt reduction needs to be her priority because she is
• 26:20
  Speaker 5: paying a lot back on things that aren't increasing her wealth.
• 26:24
  Speaker 5: So both of these assets in bizziligne and a car
• 26:27
  Speaker 5: are not helping her achieve a more financially stable future.
• 26:30
  Speaker 5: In fact, you could actually say that these are the
• 26:32
  Speaker 5: things that are holding her back from not only achieving
• 26:35
  Speaker 5: her goals, but achieving financial stability in the near future. Great,
• 26:38
  Speaker 5: So it seems that maybe this money diarist should be
• 26:41
  Speaker 5: saving maybe one hundred dollars a month instead of the
• 26:44
  Speaker 5: big goals like or ten thousand dollars a year. Yeah,
• 26:47
  Speaker 5: and I think that that's a really smart start because
• 26:50
  Speaker 5: it means that she can maybe go through her current
• 26:52
  Speaker 5: finances and tweak a few things to be able to
• 26:55
  Speaker 5: save one hundred dollars. So instead of setting a really big,
• 26:57
  Speaker 5: unrealistic financial goal, she can maybe have a look at
• 27:00
  Speaker 5: the things she's doing in day to day life that
• 27:02
  Speaker 5: could add up to one hundred dollars over a month
• 27:04
  Speaker 5: to be able to meet those financial goals in the
• 27:06
  Speaker 5: short term.
• 27:07
  Speaker 3: So maybe the listeners out there can do that as well.
• 27:09
  Speaker 3: If they're struggling to save big amounts of money over
• 27:11
  Speaker 3: a long period of time, they can set micro goals
• 27:13
  Speaker 3: every month.
• 27:14
  Speaker 8: Maybe.
• 27:14
  Speaker 5: Yeah, And I think that that's a really good way
• 27:16
  Speaker 5: to keep yourself motivated on track, because if your goal
• 27:19
  Speaker 5: is to save you know, ten thousand dollars, but you
• 27:22
  Speaker 5: haven't met the halfway point, you know that that either
• 27:25
  Speaker 5: needs tweaking or you need to be you know, maybe
• 27:28
  Speaker 5: saving a little harder one month because you let it
• 27:30
  Speaker 5: laps a month before.
• 27:32
  Speaker 1: That's all we have time for today.
• 27:34
  Speaker 3: Just before we head off, as always, let's quickly wrap
• 27:36
  Speaker 3: the boring button important stuff. The advice shared on Shees
• 27:39
  Speaker 3: on the Money is general in nature and does not
• 27:41
  Speaker 3: consider your individual circumstances. She's on the Money exists purely
• 27:44
  Speaker 3: for educational purposes only and should not be relied upon
• 27:47
  Speaker 3: to make investment or a financial decision. And of course
• 27:50
  Speaker 3: we promise Victoria Devine is an authorized representative of Consultant
• 27:54
  Speaker 3: Financial Advisors Proprietary Limited ABN six y five double oh
• 27:58
  Speaker 3: six three seven three double nine five AFSL two three
• 28:01
  Speaker 3: O three two.
• 28:02
  Speaker 4: Three that was impressive.
• 28:04
  Speaker 5: Once again, I'm skilled to my you are, so join
• 28:09
  Speaker 5: our Facebook group, where more than seven thousand women share
• 28:11
  Speaker 5: money tips and tricks every single day, free of judgment.
• 28:15
  Speaker 5: Search She's on the Money on Facebook and join us.
• 28:17
  Speaker 5: If Facebook's not your thing, though, find us on Instagram.
• 28:20
  Speaker 5: We're at She's on the Money a US.
• 28:22
  Speaker 3: This podcast is a production of Shameless Media on behalf
• 28:25
  Speaker 3: of She's on the Money. See you guys next week
• 28:28
  Speaker 3: by