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How to invest part one: Is micro investing legit? · She's On The Money

• 0:00
  Speaker 1: She's on the Money.
• 0:02
  Speaker 2: She's on the Money.
• 0:12
  Speaker 3: Hello, and welcome to She's on the Money, the podcast
• 0:15
  Speaker 3: for millennials to want financial freedom. My name is Georgia King.
• 0:18
  Speaker 3: I'm a copywriter and journalism student, and every Wednesday I
• 0:22
  Speaker 3: sit down to chat finance with millennial money guru Victoria Divine. Victoria,
• 0:26
  Speaker 3: would you do know you're playing with your nail?
• 0:28
  Speaker 4: Stop?
• 0:28
  Speaker 5: Hey?
• 0:29
  Speaker 1: Yeah, I am babe. Hi he hi, I'm sorry.
• 0:31
  Speaker 3: I'll continue. On today's show, we are going to be
• 0:33
  Speaker 3: deep diving into micro investing, including what it is if
• 0:37
  Speaker 3: you're completely new to the concept, as well as what
• 0:39
  Speaker 3: the perks and potential flaws are so you can decide
• 0:42
  Speaker 3: if it's the right option for you.
• 0:44
  Speaker 1: Now, this is a massive.
• 0:47
  Speaker 3: Topic and last week Victoria posted in our Facebook group
• 0:50
  Speaker 3: asking for some opinions, questions, comments from you guys on
• 0:54
  Speaker 3: the subject of micro investing, and I think it's safe
• 0:56
  Speaker 3: to save e that the post went a little bit viral,
• 0:58
  Speaker 3: went a little bit off, I.
• 1:00
  Speaker 1: Mean in a closed community viral in that sense. Yeah,
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  Speaker 1: absolutely could go.
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  Speaker 3: But that kind of made us realize that this is
• 1:06
  Speaker 3: a massive topic that you guys are really interested in.
• 1:08
  Speaker 3: So that's what we're going to be addressing today, but
• 1:11
  Speaker 3: instead of just doing our usual show, we decided the
• 1:15
  Speaker 3: easiest way to tackle it is to break it down
• 1:17
  Speaker 3: into two episodes.
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  Speaker 2: Give you're two investing exactly. That is what the people want,
• 1:21
  Speaker 2: Georgia exactly.
• 1:23
  Speaker 3: Not to give the people what they want, and that's
• 1:25
  Speaker 3: what we're all about here at sottom So. Today's show
• 1:28
  Speaker 3: we'll be covering off the basics of what micro investing
• 1:31
  Speaker 3: platforms are and how they work. And then Part two,
• 1:34
  Speaker 3: which will drop next week, will be a Q and
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  Speaker 3: A addressing those questions that you guys are eager to
• 1:39
  Speaker 3: have answered, so hopefully that all works out nicely for us, Victoria.
• 1:44
  Speaker 3: Before we do get into part one of micro Investing,
• 1:47
  Speaker 3: the biggest extravaganza, let's chat money wins and confessions from
• 1:51
  Speaker 3: the week.
• 1:52
  Speaker 2: How are you, Georgia King, I have had a bang
• 1:54
  Speaker 2: in weekend in isolation.
• 1:56
  Speaker 1: Bang once again. It's a new word.
• 1:58
  Speaker 2: I'm trying to introduce to my vocabular and will hip
• 2:01
  Speaker 2: more cool fresh.
• 2:02
  Speaker 1: Thank you love that. Trying to stay on the right
• 2:05
  Speaker 1: side of thirty here yeeah. Yeah.
• 2:07
  Speaker 2: I have maybe two money wins this week. Actually I
• 2:10
  Speaker 2: spoke to you about one earlier and that was. You know,
• 2:14
  Speaker 2: this isn't sponsored, by the way, this money win. I
• 2:16
  Speaker 2: just think that I'm really excited about it and want
• 2:19
  Speaker 2: to share it, and it's a genuine money win. On
• 2:21
  Speaker 2: the weekend, we like every other Melbournie and on a
• 2:24
  Speaker 2: sunny weekend date, have been having picnics and so I
• 2:28
  Speaker 2: made a very good cheese platter from Audi, given they
• 2:31
  Speaker 2: were our sponsors last week and we actually, Georgia challenged
• 2:34
  Speaker 2: our community to make an Audi cheese platter for less
• 2:36
  Speaker 2: than twenty five dollars and whilst I didn't, actually, you know,
• 2:40
  Speaker 2: maybe it's a money confession, because I went over the
• 2:42
  Speaker 2: twenty five dollars. I actually ended up spending about sixty
• 2:46
  Speaker 2: dollars for my cheese platter, which was incredibly bougie. And
• 2:50
  Speaker 2: I'm saying cheese even though you guys know I don't
• 2:52
  Speaker 2: eat cheese, because I was sharing it with three other
• 2:54
  Speaker 2: people who do eat cheese, Georgia, and including the wine,
• 2:57
  Speaker 2: it was less than sixty bucks and I was pretty.
• 2:59
  Speaker 1: Damn happy with that.
• 3:00
  Speaker 2: So that was money win number one, Georgia. But money
• 3:03
  Speaker 2: win number two is a little bit left field, you
• 3:06
  Speaker 2: guys know, in Iso, I have been painting my own nails,
• 3:09
  Speaker 2: and I'm very much about a DIY many. I'm getting
• 3:13
  Speaker 2: better and better at it, like I can promise you
• 3:15
  Speaker 2: that I now no longer look like I've had a
• 3:17
  Speaker 2: two year old paint my nails, which I think is
• 3:19
  Speaker 2: quite a progressive thing for me, given now a six
• 3:22
  Speaker 2: year old looks like they've painted.
• 3:23
  Speaker 3: Mind right an improvement, Yeah, thank you.
• 3:25
  Speaker 2: The win is actually a nail polish by a company
• 3:28
  Speaker 2: called Essie, and I hadn't used this brand before in
• 3:31
  Speaker 2: this style, but they've got like a gel style polish
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  Speaker 2: and you don't need a light like I have been using.
• 3:37
  Speaker 2: You guys know, I've been doing at home shellac, but
• 3:41
  Speaker 2: this is just like normal now polish. But it's lasted
• 3:43
  Speaker 2: on me a good ten days. And I bought it
• 3:45
  Speaker 2: on a door beauty for like twelve dollars ninety five
• 3:47
  Speaker 2: or something ridiculously good for such long wearing polish, and.
• 3:51
  Speaker 1: I love it.
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  Speaker 2: So that's my other money win because it's much easier
• 3:55
  Speaker 2: than a light. I can just get it off with
• 3:56
  Speaker 2: regular nail polish remover. I just feel like I'm their
• 3:59
  Speaker 2: biggest fan now s E E Double Sie fabulous but yeah,
• 4:03
  Speaker 2: beautiful little colors and are very happy with that. Yeah,
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  Speaker 2: So moving on, Georgia King, have you got a money
• 4:08
  Speaker 2: in all commission? That is, obviously get a rival my
• 4:11
  Speaker 2: cheese platter and diy mannies at home because I so.
• 4:14
  Speaker 3: Yeah, well, look I feel a little bit upset over here.
• 4:17
  Speaker 3: I feel you've kind of cut my grass in a way.
• 4:20
  Speaker 2: I can pay your nails if you want. Like we're
• 4:22
  Speaker 2: we're allowed in the same room as each other. Y'all
• 4:24
  Speaker 2: come up, probaly, no problems, baby.
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  Speaker 3: My money win this week was the glorious lum Mule
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  Speaker 3: rose from Ala, Oh Georgia, you're speaking to my heart
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  Speaker 3: that you're picnick, didn't you?
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  Speaker 1: I did? I posted about it on Instagram first.
• 4:40
  Speaker 3: No, well, I wrote this down first in the script, buddies.
• 4:44
  Speaker 1: So you know, gol joke's on you.
• 4:47
  Speaker 2: I don't read the script until it's two seconds before
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  Speaker 2: the episode. Ah no.
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  Speaker 3: But see, the good news is here that we're both
• 4:53
  Speaker 3: advocates for this rose, which is literally it's like mind
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  Speaker 3: blowingly good. Ten ninety nine Victor, sorry you said you
• 5:01
  Speaker 3: sliced up some strawbs and popped them in for a
• 5:03
  Speaker 3: bit of a gold.
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  Speaker 2: Date because I try to be really boogie on a budget,
• 5:06
  Speaker 2: And yeah, I just feel like, if you can get
• 5:09
  Speaker 2: a really beautiful looking glass with some cheap rose some
• 5:12
  Speaker 2: strawberries in there, if you want to get extra fancy
• 5:14
  Speaker 2: pop a mint leaf, you are bougie, live your best life,
• 5:18
  Speaker 2: and you have wine for four people and a cheese
• 5:20
  Speaker 2: platter under sixty bucks. Back to the gender, I'm here
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  Speaker 2: for it.
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  Speaker 3: So my comment there is also not sponsored, but get
• 5:26
  Speaker 3: some mule in your gobs. Couldn't recommend it highly enough anyway.
• 5:30
  Speaker 2: Also, it's in a bougie container as well. Not sorry,
• 5:33
  Speaker 2: it's in a bottle like it's like got gold foil.
• 5:35
  Speaker 2: I just feel like it looks so much more expensive.
• 5:37
  Speaker 3: Yeah, and it has, actually it does, and it tastes
• 5:40
  Speaker 3: more expensive than it is. It has a little picture
• 5:42
  Speaker 3: of the mule on the front, which is good, A
• 5:44
  Speaker 3: good time.
• 5:44
  Speaker 1: I have a donkey. Yeah, do you know what. Let's
• 5:46
  Speaker 1: stop getting off track and move.
• 5:48
  Speaker 3: Well, let's okay, Facebook community, Victoria. We're cusping. One hundred
• 5:52
  Speaker 3: thousand people in there at the most.
• 5:54
  Speaker 2: So many friends in there, which is the best thing ever. Honestly,
• 5:58
  Speaker 2: I feel like every post get so much love, like
• 6:01
  Speaker 2: every money win.
• 6:02
  Speaker 1: Someone's like jumping straight on it, and I'm like yes.
• 6:04
  Speaker 2: Like I don't want anybody to, you know, post in
• 6:06
  Speaker 2: the group and not have the same amount of love
• 6:09
  Speaker 2: that gets thrown at other people. So for me, I
• 6:12
  Speaker 2: just think it's so kind when I see other people
• 6:14
  Speaker 2: being like, oh, congratulations, I'm like, you don't even know
• 6:16
  Speaker 2: each other in you're so here for each other. I
• 6:19
  Speaker 2: love it anyway, big on the warm and fuzzies. But yeah,
• 6:21
  Speaker 2: I was gonna ask, did any posts stand out to
• 6:23
  Speaker 2: you this week? Yes, I have one today that I
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  Speaker 2: just think is a money win, absolutely worth celebrating, and
• 6:29
  Speaker 2: it is from our friend Charmaine. She said, today, I
• 6:32
  Speaker 2: paid off my personal loan four and a half years early.
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  Speaker 2: I originally had a seven year personal loan with a
• 6:37
  Speaker 2: stupid interest rate to buy a car in January twenty eighteen,
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  Speaker 2: and after a lot of budgeting and calculating, I was
• 6:44
  Speaker 2: able to pay that baby off in two point five years.
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  Speaker 2: It is such a relief to be debt free again.
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  Speaker 2: And I just think that that's so important because not
• 6:51
  Speaker 2: only is she debt free, but she's not paying additional
• 6:54
  Speaker 2: interest for the rest of that loan. And I just
• 6:56
  Speaker 2: think that that's so inspiring and so exciting. And yeah,
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  Speaker 2: it got like five hundred likes in point two seconds,
• 7:02
  Speaker 2: which I thought was really cute.
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  Speaker 1: Love it.
• 7:05
  Speaker 2: I'm totally here for people paying off their debts early
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  Speaker 2: and just like, how exciting is that because she can
• 7:10
  Speaker 2: start saving the amount she was allocating towards debt.
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  Speaker 1: So exciting. Anyway, what have you got for us, Georgia King?
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  Speaker 3: Okay, so this one is from Shannon and it's a
• 7:19
  Speaker 3: smaller win, but I think we celebrate all wins that
• 7:21
  Speaker 3: she's on the money. It's also a komb Butcher focused
• 7:24
  Speaker 3: money win, which we've had before on the show, and
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  Speaker 3: I'm here for it.
• 7:27
  Speaker 2: I feel like you just see kom Butcher and little
• 7:30
  Speaker 2: hippie Georgia King is like, oh that's my vibe.
• 7:32
  Speaker 1: I'm here for Kombu.
• 7:33
  Speaker 3: People always say I'm a hippoets.
• 7:35
  Speaker 2: Because you don't ram pans and you drink a.
• 7:37
  Speaker 3: Lot of kom right o mate. Anyway, back to the post.
• 7:42
  Speaker 3: So it's from the lovely Shannon, who has written in
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  Speaker 3: Kom Butcher money win. Cole's was clearing it these out
• 7:48
  Speaker 3: for the new glass bottles, so they were thirty eight
• 7:50
  Speaker 3: cents each. She got five for a total of a
• 7:53
  Speaker 3: dollar seventy one. She is also staff so she got
• 7:56
  Speaker 3: the ten ten percent off there as well. You know,
• 7:58
  Speaker 3: so that takes off seven cents. I think you know
• 8:01
  Speaker 3: everything's everything's.
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  Speaker 2: Actually a whole nineteen cents. That's nearly a solid twenty
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  Speaker 2: cent piece, right, that's absolutely a money win.
• 8:08
  Speaker 3: It all counts.
• 8:08
  Speaker 2: So yeah, little things, big things grow And that's the
• 8:11
  Speaker 2: theme of this week's show. So I just feel like
• 8:14
  Speaker 2: it is so important to celebrate the small wins as
• 8:17
  Speaker 2: well as the big ones, because if we can't celebrate
• 8:19
  Speaker 2: the small ones, big ones don't feel big, like they
• 8:21
  Speaker 2: just feel like, yeah, something that happens. And I just
• 8:25
  Speaker 2: I'm here for the small money wins. Yeah, I'm here
• 8:27
  Speaker 2: for audi wine, I'm here for kombucha that cost you
• 8:29
  Speaker 2: thirty eight cents a container, and I am definitely here
• 8:32
  Speaker 2: for getting out of dead early agreed.
• 8:33
  Speaker 3: Good on your Shannon. All right, let's move on to
• 8:36
  Speaker 3: the main topic of today's show.
• 8:38
  Speaker 1: Kombucha. Okay, sorry, maybe next time.
• 8:42
  Speaker 3: What is micro investing and is it right for you?
• 8:45
  Speaker 1: Now?
• 8:45
  Speaker 3: For those hearing the concept for the very first time,
• 8:48
  Speaker 3: micro investing platforms help you invest small amounts of money, frequently,
• 8:51
  Speaker 3: building you a neat little investment portfolio, offering you the
• 8:55
  Speaker 3: potential to earn more from that money rather than it
• 8:58
  Speaker 3: just sitting stagnant in your savings account. Now, in Australia
• 9:02
  Speaker 3: we have Spaceship and Rays. I think they're the main
• 9:05
  Speaker 3: ones that most of our community uses and are familiar with.
• 9:08
  Speaker 3: And then over in New Zealand, where we have a
• 9:10
  Speaker 3: pretty strong listenership as well, shares Is is the main
• 9:14
  Speaker 3: one over there. So Victoria, to start today's chat, tell
• 9:18
  Speaker 3: me what micro investing is and why it is such
• 9:21
  Speaker 3: a popular thing in our community.
• 9:22
  Speaker 2: So you're right, Raise and Spaceship are the two predominant
• 9:25
  Speaker 2: ones in our community. It does by no means mean
• 9:28
  Speaker 2: that they are the only ones, or that you know,
• 9:30
  Speaker 2: Georgia and I are actually recommending it, and I think
• 9:33
  Speaker 2: that we really need to preface that upfront.
• 9:36
  Speaker 1: It's very hard for.
• 9:36
  Speaker 2: Me as a financial advisor to have these conversations often
• 9:40
  Speaker 2: because I cannot give personal advice. But we can do
• 9:43
  Speaker 2: is just talk about the products, talk about how they work,
• 9:45
  Speaker 2: what they do, and why you might be interested in them.
• 9:48
  Speaker 2: And you know, we obviously have a disclaimer at the
• 9:51
  Speaker 2: end of this podcast, but I really wanted to put
• 9:53
  Speaker 2: it up front again that this is not personal advice
• 9:55
  Speaker 2: and you know, if you're going to start investing, you
• 9:57
  Speaker 2: really need to go and talk to a financial advisor
• 9:59
  Speaker 2: and get some They're not one size fits all. Just
• 10:02
  Speaker 2: because I use Rais and spaceship does not mean that
• 10:05
  Speaker 2: you should be using Rais in spaceship. You might choose
• 10:07
  Speaker 2: to do that, but that is completely your choice. So
• 10:11
  Speaker 2: back to your question, because I was just off on
• 10:13
  Speaker 2: a little rant. Micro investing Georgia essentially allows you to
• 10:17
  Speaker 2: invest really small amounts of money, like a dollar here
• 10:20
  Speaker 2: or a dollar there, or a roundup from a coffee
• 10:23
  Speaker 2: over an extended duration, which helps build up a profitable fund.
• 10:28
  Speaker 2: Usually these are either really low cost or cheap or
• 10:31
  Speaker 2: free apps, and they're very user friendly, and I think
• 10:34
  Speaker 2: that they know that they're targeting a younger demographic who
• 10:37
  Speaker 2: may be using these microinvesting platforms for the first time,
• 10:40
  Speaker 2: because it's like kind of the first step into the
• 10:42
  Speaker 2: investing world. So they're often not very overwhelming. They are
• 10:46
  Speaker 2: really clean, they're really clear, they are able to be understood,
• 10:49
  Speaker 2: and they're really about making small contributions to the share
• 10:52
  Speaker 2: market in a fairly controlled way without you having to
• 10:55
  Speaker 2: think much about it. You haven't gone and had to
• 10:57
  Speaker 2: do a whole heap of you know, research onto the
• 10:59
  Speaker 2: a you haven't had to understand each and every single part.
• 11:04
  Speaker 2: And to be honest, I really like them personally as
• 11:08
  Speaker 2: a way to kind of dip your.
• 11:09
  Speaker 1: Toes into the investment world.
• 11:11
  Speaker 2: So that you can get an understanding of what an
• 11:13
  Speaker 2: investment portfolio looks like, what performance looks like over a
• 11:16
  Speaker 2: period of time, and kind of experience the highs and
• 11:19
  Speaker 2: the lows before you go kind of like gung ho
• 11:21
  Speaker 2: and go all right, we'll I'll save thousands of dollars
• 11:23
  Speaker 2: and start investing. So for me, it's really important to
• 11:27
  Speaker 2: understand investing as a basis, So I'd never say.
• 11:30
  Speaker 1: Just download it.
• 11:30
  Speaker 2: You'll learn as you go, like, understand it before you
• 11:32
  Speaker 2: make these decisions. But I do think it's kind of
• 11:35
  Speaker 2: like a dip your toes in the water kind of
• 11:37
  Speaker 2: way of getting into investing. When I say it's kind
• 11:40
  Speaker 2: of like controlled, I mean because microinvesting platforms often invest
• 11:44
  Speaker 2: in ETFs or exchange traded funds on your behalf, which
• 11:48
  Speaker 2: means you're investing in the fund which has multiple shares
• 11:51
  Speaker 2: rather than just like one single company, not spaceship. But
• 11:54
  Speaker 2: we can talk about that a little bit later and Also,
• 11:58
  Speaker 2: if an exchange traded fund or that term feels overwhelming
• 12:02
  Speaker 2: to you, what I want you to do is go
• 12:04
  Speaker 2: straight back to see someone and listen to our episodes.
• 12:06
  Speaker 2: There I go into detail about what a share is,
• 12:09
  Speaker 2: what an ETF is, how that works, and what that means.
• 12:12
  Speaker 2: Because we had too bang in investment episodes, and I
• 12:16
  Speaker 2: think that, you know, it's always worthy of doing a
• 12:18
  Speaker 2: bit of a refresh to just kind of be on
• 12:19
  Speaker 2: the game, especially now that we're talking about a specific
• 12:23
  Speaker 2: type of investment, like we're talking about micro investing platforms.
• 12:26
  Speaker 2: But if investing as a topic is feeling overwhelming, which mate,
• 12:31
  Speaker 2: I know it can, Like it is not something that
• 12:33
  Speaker 2: we can easily wrap our heads around, I think it's
• 12:36
  Speaker 2: really important to just like understand that as a basis
• 12:38
  Speaker 2: before we start understanding, you know, the different asset classes
• 12:41
  Speaker 2: and the different types of investments that are out there,
• 12:44
  Speaker 2: because at the end of the day, we need to
• 12:46
  Speaker 2: get our foundations, you know, really solid. You really need
• 12:49
  Speaker 2: to understand those things so that when you are looking
• 12:51
  Speaker 2: at another platform, like a micro investing platform, you can
• 12:55
  Speaker 2: really easily work out if that's going to work for
• 12:57
  Speaker 2: you or not. In terms of why a lot of
• 12:59
  Speaker 2: Aussies using them. I think it's because they're honestly a
• 13:02
  Speaker 2: pretty easy way to make that first step into investing,
• 13:05
  Speaker 2: which for a lot of people, as I mentioned before,
• 13:08
  Speaker 2: is a pretty overwhelming concept.
• 13:09
  Speaker 1: It's a great.
• 13:10
  Speaker 2: Choice for younger investors more often than not, who are
• 13:13
  Speaker 2: just looking to try something new, because you don't need
• 13:16
  Speaker 2: big initial contributions, like you do not need to save
• 13:18
  Speaker 2: thousands of dollars to get started. In fact, for most
• 13:21
  Speaker 2: of these platforms, you can literally invest a minimum of
• 13:24
  Speaker 2: five dollars to get the ball rolling. It is completely
• 13:27
  Speaker 2: up to you. And that's what I love, being in
• 13:29
  Speaker 2: complete control, being able to dip your toes in the
• 13:31
  Speaker 2: water while not risking your life savings.
• 13:34
  Speaker 1: Yeah so that's a good thing.
• 13:35
  Speaker 3: Yeah, love it. Okay, so it's user friendly. It's a
• 13:39
  Speaker 3: gentle way to kind of dip your toe into the
• 13:41
  Speaker 3: world of investing. What would you say the other main
• 13:45
  Speaker 3: draw cards to micro investing platforms would.
• 13:47
  Speaker 1: Be, as I said before, they're not complex.
• 13:50
  Speaker 2: The first thing for me is that they're easy and
• 13:53
  Speaker 2: understandable and a lot less daunting for a lot of
• 13:55
  Speaker 2: people who are just starting out on their investment path.
• 13:58
  Speaker 2: They're not only easy to navigate, gate and use. But
• 14:00
  Speaker 2: all of the information is in one place, and it's
• 14:03
  Speaker 2: in one place that you know us as millennials and
• 14:05
  Speaker 2: gen XYZ. I don't know where we're up to now,
• 14:08
  Speaker 2: but we all have phones in our hands, and we
• 14:11
  Speaker 2: all really like phone based platforms. It's not often that
• 14:15
  Speaker 2: you know a millennial actually jumps on a computer to
• 14:17
  Speaker 2: have a look at things. We really like having things
• 14:20
  Speaker 2: at our fingertips twenty four seven, and these platforms give
• 14:23
  Speaker 2: you that freedom and that access. So I think that's
• 14:26
  Speaker 2: a really great feature. As I said before, most micro
• 14:29
  Speaker 2: investing apps invest in ETFs or index funds, so it's
• 14:32
  Speaker 2: all pretty risk averse, and that means essentially that you
• 14:35
  Speaker 2: don't need to be an investing genius to make the
• 14:38
  Speaker 2: most out of this platform. When we talk about risk,
• 14:41
  Speaker 2: you know, we're talking about Spaceship and Rays. With Spaceship
• 14:45
  Speaker 2: you don't actually get to choose a risk profile. You
• 14:47
  Speaker 2: just have their fund, whereas with Rays, you actually get
• 14:50
  Speaker 2: to choose what type of investor you are, So you
• 14:53
  Speaker 2: could be a conservative investor, you could be a really
• 14:56
  Speaker 2: aggressive investor. It doesn't actually matter which one you choose,
• 15:00
  Speaker 2: because you'll be able to see each option and pick
• 15:02
  Speaker 2: the one that aligns most closely with your values and
• 15:05
  Speaker 2: your goals and your investment timeframe, which I think is
• 15:08
  Speaker 2: really important to understand and kind of start wrapping your
• 15:10
  Speaker 2: head around, because these are the types of questions that
• 15:13
  Speaker 2: you're going to be asked by a financial advisor if
• 15:15
  Speaker 2: you ever go to invest bigger sums of money. They're
• 15:18
  Speaker 2: going to go, cool, let's talk about risk, and you'll
• 15:20
  Speaker 2: be like, oh, my gosh, what is that? Whereas if
• 15:21
  Speaker 2: you've been using a micro investing platform, you're more likely
• 15:24
  Speaker 2: to just understand the terminology and the different phrases and
• 15:27
  Speaker 2: you know what it actually means. And I think that
• 15:30
  Speaker 2: that puts you in a more powerful position to make
• 15:32
  Speaker 2: decisions that are you know, really well aligned to you
• 15:34
  Speaker 2: and your goals. As I mentioned before as well, I
• 15:37
  Speaker 2: think the second great thing, as we mentioned before, is
• 15:40
  Speaker 2: there's no deposit required, so you don't need to take
• 15:42
  Speaker 2: a thousand dollars out to start investing. You can literally
• 15:45
  Speaker 2: start with five bucks and that's a money win for me.
• 15:48
  Speaker 2: But then also given you don't need to invest thousands,
• 15:52
  Speaker 2: it just means that there is just so much more
• 15:55
  Speaker 2: access for this. Everybody is able to access these platforms,
• 15:58
  Speaker 2: and it's no longer something where the investment world was
• 16:01
  Speaker 2: seen as you know, only for rich people, and I
• 16:03
  Speaker 2: just I want to break that down so desperately because
• 16:06
  Speaker 2: it is not, and it is going to be in
• 16:08
  Speaker 2: the future. Investing is the key to financial freedom, It
• 16:12
  Speaker 2: is the key to creating wealth. It is the key
• 16:14
  Speaker 2: to literally breaking free financially. And these are really great
• 16:18
  Speaker 2: steps in the way of us understanding them, or you know,
• 16:21
  Speaker 2: if you're a unique getting started when you're really passionate
• 16:24
  Speaker 2: about it. But for me, also, there's no big lifestyle
• 16:27
  Speaker 2: change involved. It's not like you have to go and
• 16:30
  Speaker 2: you know, like we spoke about on the pod last week,
• 16:32
  Speaker 2: we spoke about fire, which means you need to have
• 16:36
  Speaker 2: like ridiculously higher levels of sacrifice to absolutely nail it.
• 16:40
  Speaker 2: But with microinvesting, nothing really changes. Sometimes it's just the
• 16:44
  Speaker 2: cost of a cup of coffee. In saying that your
• 16:47
  Speaker 2: contributions are obviously going to compound over time, and the
• 16:50
  Speaker 2: cost of a cup of coffee my compound. But that's
• 16:52
  Speaker 2: definitely not going to sustain your entire life. So I
• 16:55
  Speaker 2: think that, you know, you can't just think that microinvesting
• 16:58
  Speaker 2: platforms are the key of the few true, and you're
• 17:00
  Speaker 2: going to be in this epic financial position because you
• 17:02
  Speaker 2: download an app and you know, put five bucks in it,
• 17:04
  Speaker 2: Like that isn't going to create financial freedom. What we're
• 17:07
  Speaker 2: talking about here is starting to really understand the concepts
• 17:10
  Speaker 2: that help you create financial freedom. That's what we're trying
• 17:13
  Speaker 2: to nail here.
• 17:14
  Speaker 1: Yeah, I love it, well said.
• 17:15
  Speaker 3: Would you say that those few reasons are the main
• 17:18
  Speaker 3: reasons that you have them? Be because I know you
• 17:21
  Speaker 3: use both Rays and Spaceship, which is interesting. Would there
• 17:24
  Speaker 3: any other reasons that you use them?
• 17:26
  Speaker 2: I use them mainly because I'm a bit of an
• 17:28
  Speaker 2: investment nerd. Let's be honest, Like I have a bigger
• 17:32
  Speaker 2: investment portfolio that I invest in with just different stuff
• 17:36
  Speaker 2: that aligns to my goals and my values. But you're right,
• 17:39
  Speaker 2: I do use Raise. I do use Spaceship. That is,
• 17:41
  Speaker 2: by no means of recommendation for other people to use
• 17:44
  Speaker 2: it unless it, you know, ligns to their goals and
• 17:46
  Speaker 2: their values. But I use them both for different reasons.
• 17:49
  Speaker 2: So first things first, I use Rays because it rounds
• 17:52
  Speaker 2: up and it attaches to the bank accounts that I have,
• 17:55
  Speaker 2: and everytime I spend four dollars fifty or my own
• 17:58
  Speaker 2: LATAG I end up in position where fifty cents if
• 18:01
  Speaker 2: that four dollars fifty has been invested on my behalf
• 18:04
  Speaker 2: into my investment portfolio with rays, and over time that compounds.
• 18:08
  Speaker 2: Like I'm a very big believer that from little things,
• 18:11
  Speaker 2: big things grow, and we're in a position where, you
• 18:13
  Speaker 2: know what, like I didn't feel that additional fifty cents,
• 18:16
  Speaker 2: and I'm all about making as many investments as possible
• 18:19
  Speaker 2: because that's in line with my values. So you know,
• 18:22
  Speaker 2: over time, I might find that at the end of
• 18:25
  Speaker 2: the year, I have a couple of one hundred dollars
• 18:27
  Speaker 2: in that account or one thousand dollars in that account,
• 18:29
  Speaker 2: and I can cash that out and put that into
• 18:32
  Speaker 2: my bigger investment portfolio, and it's kind of a bonus
• 18:35
  Speaker 2: that I didn't have before. Or I get to Christmas
• 18:38
  Speaker 2: time and I go, oh, my gosh, I didn't budget
• 18:40
  Speaker 2: for this, and this is probably a good one that
• 18:42
  Speaker 2: will have on an episode in the near future about
• 18:45
  Speaker 2: Christmas budgeting. I promise it's coming, but I get to
• 18:48
  Speaker 2: Christmas and I'm like, great, that's an extra thousand dollars.
• 18:51
  Speaker 2: I didn't know where present money was coming from, and
• 18:53
  Speaker 2: it's kind of like chipped away out during the year.
• 18:55
  Speaker 2: But then Spaceship for me, I have purely out of interest,
• 18:59
  Speaker 2: if I'm honest, put some money into it, and I
• 19:01
  Speaker 2: just like watching it tick over. I like looking at
• 19:03
  Speaker 2: their fund I like looking at their performance. And also
• 19:06
  Speaker 2: because if she's on the money when other people are
• 19:09
  Speaker 2: asking questions, I really want to feel like I can
• 19:11
  Speaker 2: actually just jump into the app and understand it and
• 19:14
  Speaker 2: go yep, no, this is why this works this way,
• 19:16
  Speaker 2: instead of being like, oh, I don't know, I don't.
• 19:18
  Speaker 1: Have that app, I don't yea yeah.
• 19:19
  Speaker 2: Like for me, it's all about education and just understanding
• 19:22
  Speaker 2: what our community you're up to. And if something has
• 19:26
  Speaker 2: been overwhelmingly spoken about, I'm very likely to download it
• 19:29
  Speaker 2: and just check it all out. And that's why I
• 19:31
  Speaker 2: have too many bank accounts.
• 19:32
  Speaker 1: You just love it. Question on that.
• 19:34
  Speaker 3: So you said you have Spaceship out of interest. You
• 19:38
  Speaker 3: mean out of curiosity, not because of the interest right,
• 19:41
  Speaker 3: just check it.
• 19:42
  Speaker 2: No, not because of the interest rate, purely because I'm curious.
• 19:46
  Speaker 2: Like curiosity killed the cat though, And I think that
• 19:49
  Speaker 2: it is really important to understand that more investing platforms
• 19:52
  Speaker 2: do not equal better like having one really solid investment
• 19:56
  Speaker 2: plan is going to trump anything else. And you know,
• 19:59
  Speaker 2: divert sifying you know, too too too much can be
• 20:02
  Speaker 2: a problem. So I think it's important to you know,
• 20:05
  Speaker 2: pick something and have conviction in it. I have both
• 20:08
  Speaker 2: because I use them both very differently. But I'm a
• 20:11
  Speaker 2: little bit more flippant about it than other people should be,
• 20:14
  Speaker 2: purely because it isn't my main source of you know,
• 20:17
  Speaker 2: future wealth creation. I have a different investment portfolio managed
• 20:21
  Speaker 2: by a financial advisor who is not being so I
• 20:24
  Speaker 2: think it's really important to point that out as well.
• 20:26
  Speaker 2: Like I'm a financial advisor who has a financial advisor
• 20:29
  Speaker 2: as much as I really know what's going on, I
• 20:32
  Speaker 2: think it's also important to point out that, Hi, I
• 20:35
  Speaker 2: am an emotional human as well. I don't always make
• 20:39
  Speaker 2: decisions that are, you know, pragmatically the best.
• 20:41
  Speaker 1: Yes, I can do that for clients.
• 20:43
  Speaker 2: But when it comes to your own portfolio, I think
• 20:45
  Speaker 2: it's really important to just have that third party and
• 20:48
  Speaker 2: my financial advisor keeps my head screwed onto.
• 20:50
  Speaker 4: Yeah.
• 20:51
  Speaker 3: But in saying that, you of course don't need a
• 20:53
  Speaker 3: financial advisor to get involved with the micro investment platforms.
• 20:56
  Speaker 2: Right, absolutely not. You just need an app store.
• 21:00
  Speaker 5: See.
• 21:01
  Speaker 3: Okay, so there's quite a few pros. There Is there
• 21:05
  Speaker 3: anything that you think we need to.
• 21:06
  Speaker 1: Be mindful of.
• 21:07
  Speaker 2: I think that when it comes down to it, it's
• 21:09
  Speaker 2: really important to not just go, oh my gosh, this
• 21:11
  Speaker 2: is great, I'll just download it, like you really need
• 21:13
  Speaker 2: to think about this. It does take up time to
• 21:16
  Speaker 2: build wealth via these platforms, obviously, because you're not investing
• 21:19
  Speaker 2: as significant an amount as if you were investing thousands
• 21:23
  Speaker 2: of dollars in the share market and how to financial
• 21:24
  Speaker 2: advisor in this massive investment plan, right, So if you're
• 21:27
  Speaker 2: an investor who knows what you're doing, you might end up,
• 21:30
  Speaker 2: you know, not feeling as empowered because you're actually investing
• 21:33
  Speaker 2: a lot less in these platforms, unless you choose a
• 21:35
  Speaker 2: massive amount to invest, in which case you really need
• 21:38
  Speaker 2: to look at how much it's going to cost to
• 21:40
  Speaker 2: invest on these platforms and assess what is the best
• 21:43
  Speaker 2: option for you, because it might not be that platform.
• 21:46
  Speaker 2: I also think it is really important that if you
• 21:48
  Speaker 2: are planning on seeing bigger returns, as in you're investing
• 21:52
  Speaker 2: a large sum of money like ten grand or twenty grand,
• 21:54
  Speaker 2: and you're still a little bit fluxomed by the whole
• 21:57
  Speaker 2: investing thing. Then you might be better off to just
• 22:00
  Speaker 2: adding to a financial advisor so you can make sure
• 22:02
  Speaker 2: that your investment strategy actually fits.
• 22:04
  Speaker 1: With your goals and values.
• 22:05
  Speaker 2: Like this is so important because I also see a
• 22:09
  Speaker 2: lot of people in our Facebook community and they comment
• 22:12
  Speaker 2: on things. They're like, Oh, I had raised and then
• 22:13
  Speaker 2: I deleted it because the returns were terrible. It's like,
• 22:17
  Speaker 2: how long were you invested for? And they're like, oh,
• 22:20
  Speaker 2: had it for like three weeks and I lost money.
• 22:22
  Speaker 2: It's like, guys, the investment rules of investment world apply
• 22:27
  Speaker 2: here too. So if you have a micro investing platform,
• 22:30
  Speaker 2: that doesn't mean for micro amounts of time, Like you
• 22:33
  Speaker 2: still need to have plans to be on these platforms
• 22:37
  Speaker 2: for five plus years to see proper compound interests starting
• 22:41
  Speaker 2: to kick in. Compound interest is magic, but it isn't
• 22:44
  Speaker 2: magic overnight. There is absolutely no such thing as a
• 22:48
  Speaker 2: get rich quick scheme, and I think it is so
• 22:50
  Speaker 2: important for you to remember that, Like, if you're planning
• 22:52
  Speaker 2: on downloading this and only having it for six months,
• 22:55
  Speaker 2: you might see negative returns over six months. That doesn't
• 22:59
  Speaker 2: mean that the fund is performing badly. It just means
• 23:02
  Speaker 2: that that six month period of time the share market
• 23:05
  Speaker 2: has gone down. For example, if you downloaded, and I'm
• 23:08
  Speaker 2: sure there's a fair few people thinking about this right
• 23:10
  Speaker 2: now and going to Toroa. My platforms off at the moment,
• 23:13
  Speaker 2: so will we in the midst of the global pandemics
• 23:16
  Speaker 2: if you downloaded one of these microinvesting platforms in like
• 23:18
  Speaker 2: January or February here in Australia. Yes, of course your
• 23:22
  Speaker 2: share portfolio is going to be off. We've been through
• 23:25
  Speaker 2: so much. But you also need to remember that there
• 23:28
  Speaker 2: is a very big chance that is going to come
• 23:30
  Speaker 2: back off soon once everything kind of settles down. So
• 23:33
  Speaker 2: in exactly the same way that I would make recommendations
• 23:36
  Speaker 2: about normal investing, do not invest for short periods of time.
• 23:40
  Speaker 2: Invest for long periods of time. If you're looking at
• 23:43
  Speaker 2: anything under five years, I think it's really important to
• 23:46
  Speaker 2: really reconsider what your strategy is. But in saying that,
• 23:50
  Speaker 2: I also have clients who use it for short periods
• 23:53
  Speaker 2: of time. You just have to understand what the risks
• 23:56
  Speaker 2: associated are and the fact that yes, you could lose
• 23:59
  Speaker 2: some money. You're planning on taking it out in December
• 24:02
  Speaker 2: and you only got it in January, like it could
• 24:04
  Speaker 2: happen and that's okay, but you need to be in
• 24:07
  Speaker 2: a position where you're not only willing to risk that
• 24:10
  Speaker 2: but also write it out if it is off. Can
• 24:12
  Speaker 2: you leave that money invested for a little bit longer
• 24:15
  Speaker 2: so that it can come back off. So I think
• 24:17
  Speaker 2: it's really important to consider these things. And then also
• 24:21
  Speaker 2: there are fees attached with certain platforms that can make
• 24:25
  Speaker 2: a difference to your return. So usually there be something
• 24:28
  Speaker 2: like two dollars fifty or three dollars a month, but
• 24:30
  Speaker 2: these incentives are there to keep you contributing. So Georgia,
• 24:35
  Speaker 2: the investment fee for raise sits at about two dollars
• 24:39
  Speaker 2: fifty a month, and that doesn't seem like much. Yes,
• 24:42
  Speaker 2: it's less than a cup of coffee, but it's still
• 24:44
  Speaker 2: worth thinking about because in investment land, I would want
• 24:48
  Speaker 2: to see you be paying always one percent or less
• 24:52
  Speaker 2: for fees for an investment platform. That's just my guide. Yes,
• 24:56
  Speaker 2: there are always going to be platforms that are more expensive,
• 24:59
  Speaker 2: but they might carry higher risks or just different investment
• 25:02
  Speaker 2: strategies that you're interested in. But that's kind of like
• 25:05
  Speaker 2: the rule of Thumber. I would say, so one percent
• 25:07
  Speaker 2: on a monthly basis of two dollars fifty is two
• 25:09
  Speaker 2: hundred and fifty dollars, right, But that fee happens each
• 25:12
  Speaker 2: and every single month, So that means that you have
• 25:14
  Speaker 2: over the course of twelve months, thirty dollars in total
• 25:17
  Speaker 2: worth of fees. Now exciting bonus, Georgia, we actually are
• 25:21
  Speaker 2: able to claim that thirty dollars on tax because it
• 25:24
  Speaker 2: is an investment.
• 25:25
  Speaker 1: Fee, which is very exciting.
• 25:27
  Speaker 2: But if you are then looking at thirty dollars worth
• 25:30
  Speaker 2: of investment fees, that means the over twelve months you
• 25:33
  Speaker 2: need to invest about three thousand dollars to make that
• 25:35
  Speaker 2: a really effective platform. In saying that, if you are
• 25:38
  Speaker 2: not invest in that amount, that is totally okay because
• 25:42
  Speaker 2: often when you're investing more, the fees do start to
• 25:44
  Speaker 2: come down over time. But I also think it's really
• 25:47
  Speaker 2: important to understand why you are using these platforms. Are
• 25:51
  Speaker 2: you using these platforms because they have the cheapest fees
• 25:53
  Speaker 2: to invest or are you using these platforms to dip
• 25:57
  Speaker 2: your toes in the water of financial literacy and understanding
• 26:00
  Speaker 2: what the share market is and how the share market
• 26:03
  Speaker 2: works and what that's going to look like for you. Well,
• 26:05
  Speaker 2: then arguably, over twelve months for me, the cost of
• 26:09
  Speaker 2: thirty dollars and being able to claim that on tax
• 26:11
  Speaker 2: is actually money well spent. So yes, in terms of fees,
• 26:15
  Speaker 2: you know, and you only had five hundred dollars in
• 26:17
  Speaker 2: that account for the twelve months that you had it,
• 26:19
  Speaker 2: obviously the percentage of fees would be higher and therefore
• 26:22
  Speaker 2: it would seem expensive. But for me, I also think
• 26:25
  Speaker 2: you really need to take into consideration what else you're
• 26:28
  Speaker 2: getting out of that platform, and if that means that
• 26:30
  Speaker 2: for thirty bucks in an annual year, you are in
• 26:33
  Speaker 2: a position where you know you're far more confident to
• 26:36
  Speaker 2: invest in the future and create financial freedom. Like, I
• 26:39
  Speaker 2: just think that's money well spent. And I'm not saying
• 26:41
  Speaker 2: that about one particular platform. I'm just saying, like, really
• 26:45
  Speaker 2: understand what those fees mean, because for me, yes, it
• 26:48
  Speaker 2: might seem scary if you're like, wow, like that's a
• 26:50
  Speaker 2: lot of money, But at the end of the day,
• 26:53
  Speaker 2: are you getting that much.
• 26:54
  Speaker 1: Value out of it? Arguably yes.
• 26:56
  Speaker 2: And then on top of that, Georgia, it's also worth
• 26:59
  Speaker 2: making use of. Most microinvesting platforms have like sign on
• 27:02
  Speaker 2: bonuses and referral codes, which I know are rife in
• 27:05
  Speaker 2: our community. If you're looking for them, but you can
• 27:07
  Speaker 2: sign up with one of them, and I know that
• 27:09
  Speaker 2: most of them have like a five dollars sign up bonus,
• 27:12
  Speaker 2: so you get let's just call it your first two
• 27:14
  Speaker 2: months a fees are covered. But then I think that's
• 27:17
  Speaker 2: really important just to talk about as well. You know,
• 27:19
  Speaker 2: don't just sign up because you get free money, like
• 27:22
  Speaker 2: it is a commitment and is an investment, Like, really
• 27:25
  Speaker 2: understand that it's nice if you were always going to
• 27:27
  Speaker 2: plan to do that, but don't do it just because
• 27:29
  Speaker 2: you get free five dollars, Like that's not a good
• 27:31
  Speaker 2: reason to do it.
• 27:32
  Speaker 3: Yeah. Yeah, What would you say if someone was coming
• 27:37
  Speaker 3: to you and they had fifty thousand dollars in the
• 27:40
  Speaker 3: bank and they were wanting to invest, would you say
• 27:44
  Speaker 3: high suites go with the micro investing platform option or
• 27:47
  Speaker 3: would you say get on the stock market duh, Like
• 27:51
  Speaker 3: I mean, I'm assuming you would use slightly more professional
• 27:55
  Speaker 3: kind of.
• 27:55
  Speaker 2: No, that's what I say. I also answer the phone like, Yo.
• 28:00
  Speaker 1: That's just so what I do, Georgia.
• 28:02
  Speaker 2: No, I think it's really important to understand their goals
• 28:04
  Speaker 2: and what they're trying to achieve. And it's actually quite
• 28:07
  Speaker 2: interesting because I obviously have a lot of people coming
• 28:10
  Speaker 2: to me and saying, Oh, Victoria, I have fifty thousand
• 28:11
  Speaker 2: dollars i'd like to invest or I have one hundred
• 28:13
  Speaker 2: thousand dollars I'd like to invest. I think you need
• 28:15
  Speaker 2: to understand when, where, how, how long for all of
• 28:19
  Speaker 2: those things about that money before you do it, because
• 28:22
  Speaker 2: more often than not, I'll have someone like you, Georgia.
• 28:25
  Speaker 1: Come in and they'll say, Victoria, I really want to invest.
• 28:27
  Speaker 2: I have fifty thousand dollars and I was like, Wow,
• 28:29
  Speaker 2: that's incredible, congratulations, let's do it.
• 28:32
  Speaker 1: Do you want to invest that full amount?
• 28:33
  Speaker 2: And they're like, yes, but I also need to take
• 28:35
  Speaker 2: it out in two years because I want to buy
• 28:36
  Speaker 2: a house.
• 28:37
  Speaker 1: And I'd be like, okay, well.
• 28:38
  Speaker 2: We're not investing, are we, because that is a terrible
• 28:40
  Speaker 2: idea because that is too short a period of time
• 28:43
  Speaker 2: to expose that money to the market, and there's just
• 28:45
  Speaker 2: too much risk associated with that.
• 28:47
  Speaker 1: I'm not doing it. And they go, oh, but it's
• 28:49
  Speaker 1: sitting there.
• 28:49
  Speaker 2: I'm like, yes, because it's going to an e because
• 28:52
  Speaker 2: it's going to a different asset class. The plan for
• 28:55
  Speaker 2: that is property, and I think we really need to
• 28:57
  Speaker 2: be clear on why we are investing So if you
• 28:59
  Speaker 2: have fifty thousand dollars and you come to me and
• 29:02
  Speaker 2: say I want to invest it, I would assume that
• 29:04
  Speaker 2: you wanted to invest that full amount, So it's really
• 29:06
  Speaker 2: important to understand what that means. I also think that
• 29:09
  Speaker 2: it is really important when you start investing to be
• 29:11
  Speaker 2: super comfortable with the concept of it. So if that
• 29:15
  Speaker 2: means that you don't invest for another twelve months, that
• 29:17
  Speaker 2: is fine. If you just want to use, you know,
• 29:19
  Speaker 2: a micro investing platform and invest you know, ten or
• 29:22
  Speaker 2: fifteen dollars a month and be really conservative about it,
• 29:25
  Speaker 2: just so you can kind of dip your toes in
• 29:27
  Speaker 2: the water and get an understanding of it before you,
• 29:29
  Speaker 2: you know, commit your life savings to an asset. That
• 29:33
  Speaker 2: can feel really overwhelming, because the worst thing I can
• 29:36
  Speaker 2: do as a financial advisor is take someone on and
• 29:38
  Speaker 2: be like, oh, you just get comfortable with it once
• 29:41
  Speaker 2: we get into it, Like no, I don't want that.
• 29:43
  Speaker 1: I want you to.
• 29:44
  Speaker 2: Say, Victoria, but like, why can't we invest now and
• 29:46
  Speaker 2: to go okay, now.
• 29:47
  Speaker 1: Is the time.
• 29:48
  Speaker 2: I want everybody to be on the same page. I
• 29:50
  Speaker 2: want to be as excited about it as you are,
• 29:52
  Speaker 2: because I want you to be able to sleep at night.
• 29:54
  Speaker 2: I don't want you to be scared or worried or
• 29:56
  Speaker 2: you know, concerned about your asset. I want you to
• 29:59
  Speaker 2: have as much care viction in that as I do.
• 30:01
  Speaker 2: And that takes time. So if someone came to me
• 30:04
  Speaker 2: with fifty thousand dollars, I'd say, okay, well, what are
• 30:07
  Speaker 2: we actually trying to do here? You know, what's your
• 30:09
  Speaker 2: time frame? How is this going to work? What does
• 30:11
  Speaker 2: this actually look like? And how can we create that
• 30:13
  Speaker 2: for you as opposed to our right, there's no one
• 30:16
  Speaker 2: size fits all approach.
• 30:17
  Speaker 1: It's not up fifty thousand dollars right, well, this is.
• 30:20
  Speaker 2: The stock i'd buy, Like, it doesn't work like that
• 30:22
  Speaker 2: because everybody's investment strategy is different because we all have
• 30:26
  Speaker 2: different goals and we all have different things that we
• 30:28
  Speaker 2: want to achieve. So sorry that I'm you know, being
• 30:31
  Speaker 2: a little bit evasive there, but that's just the cold,
• 30:33
  Speaker 2: hard truth of it, my friend.
• 30:35
  Speaker 3: No, Well, it makes sense, and I mean, life would
• 30:37
  Speaker 3: be so much easier if it was just like clear
• 30:39
  Speaker 3: cut and we knew how much of a percentage of
• 30:42
  Speaker 3: our income we had to invest to be filthy rich
• 30:44
  Speaker 3: by the time we retire, Like it'd be nice but
• 30:46
  Speaker 3: it is different for everyone.
• 30:47
  Speaker 1: One hundred percent.
• 30:48
  Speaker 2: And this is something that I've been going on and
• 30:50
  Speaker 2: on and on about because We've just released our budgeting
• 30:53
  Speaker 2: and cash flow course, and people keep saying like, well,
• 30:56
  Speaker 2: what percentage should I be saving? Or what percentage should
• 30:59
  Speaker 2: I be invested? Or what percentage should I be spending
• 31:01
  Speaker 2: on clothes and shoes and alcohol? And I just go,
• 31:05
  Speaker 2: that is such a redundant way of looking at things
• 31:08
  Speaker 2: that actually just makes us feel bad about ourselves. If
• 31:11
  Speaker 2: you earn forty thousand dollars, it is not reasonable to
• 31:15
  Speaker 2: assume that you can allocate twenty percent to savings. You
• 31:18
  Speaker 2: don't have that much to save because living is expensive,
• 31:22
  Speaker 2: and I think it's unnecessary, like it's super unnecessary pressure
• 31:26
  Speaker 2: to put on yourself when doing a budget or doing
• 31:28
  Speaker 2: cash flow.
• 31:29
  Speaker 1: Whereas if Georgia you had.
• 31:30
  Speaker 2: An income of four hundred thousand dollars and I mean,
• 31:32
  Speaker 2: I'm sorry, she's on the money does not pay you
• 31:34
  Speaker 2: that well, So sorry about that. Doesn't pay anybody that well.
• 31:38
  Speaker 2: But if you had that income, you best believe I
• 31:41
  Speaker 2: want you to be saving more than twenty percent of
• 31:42
  Speaker 2: your income because you have a lot of disposable income
• 31:45
  Speaker 2: in comparison to somebody else. So for me, percentages sometimes
• 31:49
  Speaker 2: they're nice to have because you can just use them
• 31:51
  Speaker 2: as a tool to understand what your cash flow is
• 31:54
  Speaker 2: when it comes to budgeting, But it is not something
• 31:57
  Speaker 2: that I would use as a benchmark. I would be
• 31:59
  Speaker 2: looking at your situation personally and going, Okay, this makes
• 32:03
  Speaker 2: sense because of ABC and D like, stop putting so
• 32:06
  Speaker 2: much pressure on yourself to conform to a percentage that
• 32:09
  Speaker 2: some middle aged white guy recommended.
• 32:11
  Speaker 1: Yeah, love it.
• 32:12
  Speaker 3: I feel like I still have so many questions.
• 32:15
  Speaker 1: But you do.
• 32:16
  Speaker 2: That's why we're doing two episodes because I just feel
• 32:19
  Speaker 2: like this would be a three hour rep in the
• 32:21
  Speaker 2: end if we didn't, you know, cap ourselves exactly.
• 32:24
  Speaker 3: So before we go to the listener question, I wanted
• 32:28
  Speaker 3: to ask you if there are any micro investing misconceptions
• 32:31
  Speaker 3: you'd lack our community.
• 32:32
  Speaker 1: Good question. I think there are a few.
• 32:35
  Speaker 2: So the first is that you should only be investing
• 32:37
  Speaker 2: if you already have a decent amount of money in
• 32:39
  Speaker 2: your savings account. Yes, I think we should all have
• 32:42
  Speaker 2: an emergency fund before even considering investing. It doesn't mean
• 32:46
  Speaker 2: you have to have a you know, full time high
• 32:48
  Speaker 2: paid job, but you do need to have emergency funds,
• 32:50
  Speaker 2: because your investment portfolio is absolutely not your emergency fund
• 32:54
  Speaker 2: because in the a situation where you need to rip
• 32:57
  Speaker 2: it out and pay for some spare tires, you don't
• 33:00
  Speaker 2: want to be losing money in the process of making
• 33:02
  Speaker 2: that decision. I also think it is a misconception that
• 33:05
  Speaker 2: you should be investing if you are in personal debt.
• 33:08
  Speaker 2: So if you're in personal debt, you need to get
• 33:10
  Speaker 2: your budget and cash flow sorted so you can start
• 33:13
  Speaker 2: allocating the money that you've been paying off to debt
• 33:15
  Speaker 2: towards your investments. But you don't do them side by
• 33:19
  Speaker 2: side unless your debt is you know, a hex debt
• 33:22
  Speaker 2: where it doesn't actually carry any interest rate, in which
• 33:25
  Speaker 2: case I'm like, yep, gung ho, let's go. But if
• 33:27
  Speaker 2: you have personal debt at like fourteen or fifteen percent, girl,
• 33:30
  Speaker 2: I wish I could promise that to you on the
• 33:33
  Speaker 2: investment market, like I if I could lock that in,
• 33:35
  Speaker 2: that's fantastic.
• 33:37
  Speaker 1: But paying debt.
• 33:38
  Speaker 2: Off in itself is an investment because you are saving
• 33:41
  Speaker 2: yourself in the long term. That's thirteen, fourteen, eighteen, twenty
• 33:44
  Speaker 2: two percent or whatever interest rate you're paying, and that's
• 33:47
  Speaker 2: better than the share market. So honestly, get out of
• 33:50
  Speaker 2: debt before you consider any of these things. I honestly
• 33:53
  Speaker 2: don't want to see you investing and you know, listening
• 33:56
  Speaker 2: to this episode and going right, well, I'll download my
• 33:58
  Speaker 2: portfolio and then you're going backwards in it another area
• 34:00
  Speaker 2: of your life, not an option, my friend. And also,
• 34:04
  Speaker 2: if you're in that position, like get out of debt,
• 34:06
  Speaker 2: I'm so excited for you. These are the things that
• 34:08
  Speaker 2: you have to look forward to, Like, we can achieve
• 34:11
  Speaker 2: so so much. I think there's also a massive misconception
• 34:14
  Speaker 2: that it's complex and too hard to consider, which is
• 34:17
  Speaker 2: absolutely not the case.
• 34:18
  Speaker 1: Like we're all in this together.
• 34:19
  Speaker 2: And the more you learn, the more you are inquisitive,
• 34:22
  Speaker 2: the more you just read bits and bobs here and there,
• 34:24
  Speaker 2: and you know, over the next two weeks, we're going
• 34:26
  Speaker 2: to be obviously dropping these episodes, but we are going
• 34:29
  Speaker 2: to be dropping blogs and you know, some pointers, and
• 34:31
  Speaker 2: I'll be posting in the Facebook group and you know,
• 34:33
  Speaker 2: doing a whole heap of other things. So hopefully you
• 34:35
  Speaker 2: guys feel really empowered and understand these concepts. I've had
• 34:39
  Speaker 2: a number of questions over the past couple of you know, months,
• 34:43
  Speaker 2: where people are saying, oh, but if I invest and
• 34:45
  Speaker 2: put my money in micro investing platform B, I'll have
• 34:49
  Speaker 2: to pay more tax. And you just go, yes, if
• 34:52
  Speaker 2: you realize the gains, which means yes, you will pay tax,
• 34:56
  Speaker 2: because anytime you make money, you will pay tax. You
• 34:59
  Speaker 2: won't have to pay tax on the money you just
• 35:01
  Speaker 2: put into the portfolio, but any money that you do make, yes,
• 35:05
  Speaker 2: you pay money on. So I think it's really important
• 35:08
  Speaker 2: to be in a position where you understand that. And
• 35:10
  Speaker 2: you also only pay tax on realized capital gains. And
• 35:13
  Speaker 2: that sounds really complex. Like memorize that though, because it
• 35:16
  Speaker 2: can make you sound really important and really smart when
• 35:19
  Speaker 2: you're a brunch, so like get that in your head.
• 35:21
  Speaker 2: But it means that capital gains are essentially profits.
• 35:25
  Speaker 1: On an investment.
• 35:26
  Speaker 2: And when you sell an investment at a higher price
• 35:29
  Speaker 2: than what you paid for it, that's what a capital
• 35:31
  Speaker 2: gain is when you realize it. Realizing it means you
• 35:35
  Speaker 2: sell it so that that cash goes straight into your
• 35:37
  Speaker 2: bank account. Then you will owe taxes on any profit.
• 35:40
  Speaker 2: So you won't owe taxes on the minimum amount that
• 35:42
  Speaker 2: you put in, but you will owe taxes on the profit.
• 35:46
  Speaker 2: So say if you put one hundred dollars in and
• 35:47
  Speaker 2: you made ten dollars that year, and you pulled one
• 35:49
  Speaker 2: hundred and ten dollars out of your investment portfolio, you'd
• 35:52
  Speaker 2: owe tax on your ten dollars. So I think it's
• 35:55
  Speaker 2: important to understand that you are only going to be
• 35:57
  Speaker 2: taxed when you are making money. And at the end
• 35:59
  Speaker 2: of the day, Georgia, I want to be the highest
• 36:02
  Speaker 2: tax person in the entire worl. Well, that's what you
• 36:04
  Speaker 2: were saying before. Yeah, tax is a good thing exactly.
• 36:06
  Speaker 2: Tax means you're making money, my friend. It is a
• 36:08
  Speaker 2: good thing to pay. And the last thing there is
• 36:11
  Speaker 2: that people believe that you only choose one asset class,
• 36:14
  Speaker 2: like you only invest in shares or you only invest
• 36:16
  Speaker 2: in property, But you can absolutely do both, and you
• 36:19
  Speaker 2: can do it at the same time. And microinvesting can
• 36:21
  Speaker 2: be a really great fit if you're in a position
• 36:23
  Speaker 2: where you are saving for a home or you've just
• 36:25
  Speaker 2: purchased a home, and you know you don't have hundreds
• 36:28
  Speaker 2: of dollars each and every single month to be investing.
• 36:31
  Speaker 2: So I think there are lots of reasons why these
• 36:33
  Speaker 2: things could work for you. But then yeah, there are
• 36:35
  Speaker 2: also a number of misconceptions. But I feel like I've
• 36:38
  Speaker 2: ranted for a long time and I could do more.
• 36:40
  Speaker 2: So Georgia King, let's segue into the next segment.
• 36:48
  Speaker 3: Hi, there, you've reached that Shoes on the Money mail box.
• 36:51
  Speaker 3: Do you have a money problem you want help solving.
• 36:53
  Speaker 3: Do you have a money dilemma you just want to
• 36:55
  Speaker 3: chat about? Victoria is here to help. Every week, we'll
• 36:58
  Speaker 3: be playing your questions to help make sense of the
• 37:00
  Speaker 3: money mess you may have found yourself in. Make a
• 37:03
  Speaker 3: quick recording on your phone and send it through to
• 37:05
  Speaker 3: podcasts or CH's on the Money, dot COM's it at you,
• 37:07
  Speaker 3: and you might even find yourself on the show. But
• 37:09
  Speaker 3: for now, here's today's listener question.
• 37:12
  Speaker 5: Hi, Victoria and Georgia.
• 37:14
  Speaker 6: I'm about to start investing for the first time, which
• 37:16
  Speaker 6: is super exciting because I feel like a year ago
• 37:19
  Speaker 6: it's something that I wouldn't have even considered. But I'm
• 37:22
  Speaker 6: wondering if I should start micro investing or go straight
• 37:24
  Speaker 6: into a proper share market, or is it a good
• 37:27
  Speaker 6: idea to do both at once? Thanks?
• 37:30
  Speaker 3: What do we think?
• 37:31
  Speaker 1: Victoria?
• 37:31
  Speaker 2: I feel like I already answered this question earlier in
• 37:35
  Speaker 2: one of my rants, but that's a bit awkward. Maybe
• 37:38
  Speaker 2: I should have listened to the listener question before now,
• 37:40
  Speaker 2: but that is okay. I think it's a really valid question.
• 37:43
  Speaker 1: Personally, I do both. I don't think there needs to
• 37:45
  Speaker 1: be a mentality of one or the other.
• 37:47
  Speaker 2: As I said, like, I use them for different reasons
• 37:49
  Speaker 2: and still have a quote proper share portfolio. But I
• 37:53
  Speaker 2: think it's really important for you to understand anything before
• 37:56
  Speaker 2: you start investing. So if your plan is to you know,
• 37:59
  Speaker 2: invest your first ten thousand dollars, then fantastic, but really
• 38:03
  Speaker 2: understand that microinvesting can be a great place to start,
• 38:06
  Speaker 2: but it can also put you in a position where
• 38:08
  Speaker 2: you feel more empowered when you do speak to.
• 38:09
  Speaker 1: A financial advisor.
• 38:11
  Speaker 2: But as you guys know, I'm a really big advocate
• 38:13
  Speaker 2: of reaching out to financial advisors early so that you
• 38:16
  Speaker 2: can set something up that really works for you. So
• 38:19
  Speaker 2: in this situation, I think that have a bit of
• 38:21
  Speaker 2: a dabble, understand it, do your research, but also get
• 38:25
  Speaker 2: in contact with a really good financial advisor who can
• 38:28
  Speaker 2: kind of hold your hand and be like, yeah, yeah,
• 38:29
  Speaker 2: I do this, this and this or here's your.
• 38:31
  Speaker 1: Priority right now.
• 38:32
  Speaker 2: Because this is a great question, but I have no
• 38:35
  Speaker 2: idea what your other priorities are as I was saying before,
• 38:38
  Speaker 2: I don't know how long you're planning on investing for,
• 38:40
  Speaker 2: Like do you want to buy property?
• 38:42
  Speaker 1: Is that something that you want to do in.
• 38:43
  Speaker 2: The future, the near future, in the far future. Do
• 38:45
  Speaker 2: you want to have kids? Like what kind of financial
• 38:47
  Speaker 2: constraints are those going to apply to you? So I
• 38:50
  Speaker 2: think it's really important to just, you know, sit down
• 38:53
  Speaker 2: and really think about your situation, and a financial advisor
• 38:55
  Speaker 2: knows how to create clarity on that for you.
• 38:58
  Speaker 3: Two questions for you beg yes. One, do you think
• 39:01
  Speaker 3: a lot of people think that they can only see
• 39:04
  Speaker 3: a financial advisor if they're earning like two hundred k year?
• 39:08
  Speaker 3: And I don't know, I always put on that cinematic
• 39:10
  Speaker 3: voice apologies.
• 39:11
  Speaker 1: I like it. It's my favorite voice of thank you.
• 39:14
  Speaker 4: Well.
• 39:15
  Speaker 3: Do you think that's the thing though, that people and
• 39:16
  Speaker 3: obviously a lot of people in our community are that
• 39:19
  Speaker 3: younger generation, so they're probably not meeting those massive incomes
• 39:24
  Speaker 3: yet would you say that there is no time to
• 39:27
  Speaker 3: be like you can't be too young to see a
• 39:29
  Speaker 3: financial advisor, or you can't have there's no limit on
• 39:32
  Speaker 3: the amount of money you need to see a financial advisor.
• 39:35
  Speaker 2: That was a very long line. I know three that question,
• 39:38
  Speaker 2: but that's cool. I think that there is no way,
• 39:41
  Speaker 2: like whether you earn thirty thousand dollars or whether you
• 39:44
  Speaker 2: earn three hundred thousand dollars, you will benefit from seeing
• 39:46
  Speaker 2: a financial advisor. And there is a financial advisor out
• 39:49
  Speaker 2: there that helps you and your situation. You just need
• 39:52
  Speaker 2: to find them. So I have said it before on
• 39:55
  Speaker 2: the podcast. The AFA website is a very good place
• 39:59
  Speaker 2: to find financial advisor who is in that community. Always
• 40:03
  Speaker 2: look on the ASSEIC platform and have a look and
• 40:05
  Speaker 2: make sure that they are a registered financial advisor on
• 40:08
  Speaker 2: the ASSEK Registered Financial Advisor portal.
• 40:11
  Speaker 1: And do your research.
• 40:12
  Speaker 2: Often word of mouth is a really great way to
• 40:15
  Speaker 2: be connected with a financial advisor. But you know I've
• 40:18
  Speaker 2: said this before as well. If you want me to
• 40:20
  Speaker 2: hook you up with a financial advisor, fill out the
• 40:22
  Speaker 2: form on our website. We'll get back to you and
• 40:24
  Speaker 2: hook you up with somebody who fits your profile and
• 40:27
  Speaker 2: you know the info you've sent through. And I think
• 40:29
  Speaker 2: that that's potentially a really good way because the people
• 40:31
  Speaker 2: on that platform are literally people that I don't get
• 40:35
  Speaker 2: paid for. I don't get paid a commission for that
• 40:38
  Speaker 2: but I just have this panel of beautiful people who
• 40:41
  Speaker 2: are beautiful financial advisors who have all different things, like
• 40:44
  Speaker 2: if you say, oh I want this, I'll send you
• 40:46
  Speaker 2: to a particular person. And I think it's really nice
• 40:49
  Speaker 2: sometimes even if you haven't got a good recommendation from
• 40:52
  Speaker 2: a friend, to just know that that person's been vetted
• 40:55
  Speaker 2: by someone that you kind of already know when that
• 40:57
  Speaker 2: might be me. So for me, yeah, I would be
• 41:00
  Speaker 2: going and seeing a financial advisor regardless of what your
• 41:03
  Speaker 2: situation is, because even if you are you know, not
• 41:06
  Speaker 2: a massive income earner or your in personal debt, like,
• 41:09
  Speaker 2: there is a plan for you out there and it
• 41:11
  Speaker 2: will arguably impact your life for the better over the
• 41:13
  Speaker 2: long term.
• 41:14
  Speaker 3: Perfect, you actually answered my second question or really yeah,
• 41:18
  Speaker 3: in asking how you actually find a good financial advisor.
• 41:21
  Speaker 1: So you find us something into.
• 41:23
  Speaker 3: Where exactly we can move on to money Diaries now,
• 41:25
  Speaker 3: I think, Doe.
• 41:26
  Speaker 1: What a time?
• 41:26
  Speaker 2: All right, let's take a sneak peek into the financial
• 41:29
  Speaker 2: lives of perfect strangers.
• 41:30
  Speaker 1: Is that what you usually say? Yeah, you're on it,
• 41:33
  Speaker 1: let's do it. It's the home for Money Diaries. Friends.
• 41:36
  Speaker 5: Hi, I'm twenty eight and scared to invest. This is
• 41:39
  Speaker 5: my money diary.
• 41:40
  Speaker 3: What good would a money podcast be without the perfu beans,
• 41:43
  Speaker 3: It's time for money diaries.
• 41:45
  Speaker 4: My attitude to money, I guess growing up member and
• 41:47
  Speaker 4: my sister three women, she taught us from a very
• 41:49
  Speaker 4: young yet age that you need to be independent, if
• 41:52
  Speaker 4: you need to do things yourself. You can't rely on
• 41:53
  Speaker 4: if anyone, whether that's family or by So you know,
• 41:57
  Speaker 4: we've seen my mum not struggle, but you know, really
• 42:01
  Speaker 4: have to work hard to give us everything we needed.
• 42:04
  Speaker 5: So I guess that.
• 42:05
  Speaker 4: Kind of instilled values that me and my sister have
• 42:08
  Speaker 4: from a young age, so we never asked our.
• 42:10
  Speaker 5: Much for anything. She would give us whatever she needed.
• 42:12
  Speaker 4: You know, I'd see kids at the supermarket asking for
• 42:15
  Speaker 4: chocolate and you know all these a two things because
• 42:18
  Speaker 4: that's I guess what they've learned from their parents.
• 42:20
  Speaker 5: And you know, we would.
• 42:20
  Speaker 4: Never not ask out of any other reason, and we
• 42:23
  Speaker 4: didn't want to add that pressure to our mum. And
• 42:26
  Speaker 4: then you know, as soon as we could start paying
• 42:27
  Speaker 4: with things ourselves. So like you know, from the age
• 42:29
  Speaker 4: of thirty, like all our ound clothes, my mum always
• 42:32
  Speaker 4: got us our school things, and you know it took
• 42:33
  Speaker 4: us through our sport, but anything outside of that, you know, phones, going.
• 42:38
  Speaker 5: Out with friends completely was all on us.
• 42:40
  Speaker 4: And I think that even if my mom had, you know,
• 42:43
  Speaker 4: millions dollars in the bank, she would still have brought
• 42:45
  Speaker 4: us up in a very similar way because it's the
• 42:47
  Speaker 4: lesson that I guess she let and the lesson she
• 42:49
  Speaker 4: wanted to instill in us.
• 42:51
  Speaker 3: What does twenty eight and scared to invest do for
• 42:53
  Speaker 3: a living? How much does she earn and how much
• 42:55
  Speaker 3: is sitting in her bank accounts?
• 42:57
  Speaker 5: So I'm a human resources professional.
• 42:59
  Speaker 4: I'm currently earning seventy five thousand a year plus super
• 43:03
  Speaker 4: and at the moment, I have one hundred and thirty
• 43:07
  Speaker 4: eight thousand in savings, which has taken me sixty years
• 43:10
  Speaker 4: to save. In addition to that, I was recently gifted
• 43:13
  Speaker 4: thirty thousand from my mum. She gifted that same amount
• 43:17
  Speaker 4: to my sister when she got married, So in total,
• 43:19
  Speaker 4: I have one hundred and sixty eight thousand at this
• 43:22
  Speaker 4: point time.
• 43:23
  Speaker 3: What happens to her income once it hits her account?
• 43:25
  Speaker 4: I mean, I'm pretty basic, logical, straightforward with how I
• 43:29
  Speaker 4: run my life, particularly finances. So soon as the money
• 43:32
  Speaker 4: comes in, I'll pop it into sub accounts. So obviously savings, rent.
• 43:36
  Speaker 5: And bills and things like that.
• 43:37
  Speaker 4: But for me personally, it basically all goes into savings
• 43:41
  Speaker 4: and then whatever is left in my access account, which is,
• 43:44
  Speaker 4: you know, what I used for day to day.
• 43:46
  Speaker 5: I know I can spend, so if there's two dollars
• 43:49
  Speaker 5: in there, I can spend it.
• 43:50
  Speaker 4: If there's twenty dollars, I can spend it and not
• 43:51
  Speaker 4: feel bad about that because I.
• 43:53
  Speaker 5: Know I've already put the money away than I need
• 43:55
  Speaker 5: to put away.
• 43:55
  Speaker 3: How does she feel about investing?
• 43:58
  Speaker 5: To be honest, I.
• 43:58
  Speaker 4: Feel super overwhelmed, getting scared to make a bad decision
• 44:02
  Speaker 4: when it comes to investing.
• 44:03
  Speaker 5: So today I have not invested in anything.
• 44:06
  Speaker 4: I can save really well, but I just don't know
• 44:08
  Speaker 4: what to do with my money, you know now that
• 44:10
  Speaker 4: I've saved it.
• 44:11
  Speaker 5: So that's obviously why I've reached out to Victoria. I
• 44:13
  Speaker 5: want to get put.
• 44:14
  Speaker 4: In touch with someone who can advise me on what
• 44:17
  Speaker 4: I need to do. So I think I'm halfway there
• 44:19
  Speaker 4: from that aspect. You know, I can save the money,
• 44:22
  Speaker 4: it's just I need that help with what I then
• 44:24
  Speaker 4: need to do with it, because at the moment I'm
• 44:26
  Speaker 4: working hard, I'm not working smarter. So that's why I
• 44:29
  Speaker 4: think investing will actually make.
• 44:31
  Speaker 5: My money grow.
• 44:32
  Speaker 3: Does she have any debts?
• 44:33
  Speaker 5: So I have no debts. I've never had a debt.
• 44:35
  Speaker 4: I've never had a credit card've never had a loan,
• 44:37
  Speaker 4: I've never had enough to pay account. Basically, I only
• 44:40
  Speaker 4: think you should get into debt for big ticket artists.
• 44:43
  Speaker 4: If you don't have the money for something, you shouldn't
• 44:45
  Speaker 4: be spending the money that you don't have. And I
• 44:47
  Speaker 4: guess my motto is to live within your means. That
• 44:49
  Speaker 4: was instilled from quite a young age.
• 44:52
  Speaker 1: What are her best money habits again?
• 44:54
  Speaker 4: Yeah, my ability is say so consistently months and months
• 44:57
  Speaker 4: year on year.
• 44:58
  Speaker 5: It's so a bit of background and grow up is
• 45:00
  Speaker 5: your parent household.
• 45:01
  Speaker 7: So it was just me and my sister, so I
• 45:03
  Speaker 7: knew the value of a dollar from a very young age.
• 45:06
  Speaker 7: My mum worked a butt off to give us everything
• 45:08
  Speaker 7: that we needed, and then from the age of thirteen
• 45:11
  Speaker 7: I would do after school jobs so I could pay
• 45:13
  Speaker 7: for the extras to clothes and socializing with friends.
• 45:16
  Speaker 5: Then when I finished school, I had a gap year
• 45:18
  Speaker 5: work two jobs so I.
• 45:19
  Speaker 4: Could put myself through UNI. And then obviously once I
• 45:22
  Speaker 4: got through UNI, like most graduates. I was making peanuts
• 45:25
  Speaker 4: first year out, so I had a second job just
• 45:27
  Speaker 4: so I could say living your own Sydney, paying rent, transport,
• 45:31
  Speaker 4: all of that.
• 45:31
  Speaker 5: There was no ray really to save unless she had
• 45:33
  Speaker 5: that second job.
• 45:34
  Speaker 4: So yeah, I've always paid my own way since I've
• 45:38
  Speaker 4: been living out home for seven and a half years.
• 45:40
  Speaker 4: So if you can pay your own way and still say,
• 45:42
  Speaker 4: I think you're doing pretty well.
• 45:44
  Speaker 3: And what are her worst money habits?
• 45:46
  Speaker 4: Like, I know it's so ridiculous, but I don't think
• 45:48
  Speaker 4: I have a bad money habit. And the only reason
• 45:51
  Speaker 4: I say that is because there's two things that I
• 45:52
  Speaker 4: will spend money on which I do not feel bad
• 45:56
  Speaker 4: about it in any way, shape or form. So the
• 45:58
  Speaker 4: two things that I'll splur John is my beautiful fur
• 46:02
  Speaker 4: baby who's four years old. So I happily drop, you know,
• 46:06
  Speaker 4: seven hundred and fifty bucks one thousand dollars on his birthday,
• 46:10
  Speaker 4: Christmas and Easter, which sounds ridiculous, but honestly, it brings
• 46:13
  Speaker 4: me so much joy to see.
• 46:15
  Speaker 5: Him have a great day.
• 46:16
  Speaker 4: So for his birthday, you'll obviously get heaps of presents,
• 46:18
  Speaker 4: but I'll organize like a birthday party.
• 46:21
  Speaker 5: So his daycare friends. You know, I'll hang out and
• 46:24
  Speaker 5: they'll have the best day and I'll look back from
• 46:26
  Speaker 5: those photos and I was like, I'd spend double just
• 46:29
  Speaker 5: to like see how happy.
• 46:30
  Speaker 3: And it's so they all get And what would your
• 46:33
  Speaker 3: grain how money happens?
• 46:34
  Speaker 4: I originally said B, but I moved it to an
• 46:37
  Speaker 4: ABB And the reason I moved it to an A
• 46:39
  Speaker 4: is because I think I can say, really well, if
• 46:41
  Speaker 4: I say, you know I'm going to do something, I'll
• 46:43
  Speaker 4: do it no matter what. So that's only half of
• 46:46
  Speaker 4: the way. The other half of the way is then
• 46:48
  Speaker 4: investing it. I have no idea what to do in
• 46:50
  Speaker 4: that space, so there's always that room for improvement and
• 46:53
  Speaker 4: definitely for me to de.
• 46:54
  Speaker 5: Go my analogy.
• 46:55
  Speaker 2: George King, what do you think about this week's money arrest?
• 46:58
  Speaker 2: I usually have to answer first, but I thought, jump
• 47:00
  Speaker 2: in before you know. I love this role reversal. Okay,
• 47:04
  Speaker 2: So doing a little bit of role play on the
• 47:06
  Speaker 2: She's of the money pop this week?
• 47:08
  Speaker 3: Okay, So I guess my take was that she's bloody amazing.
• 47:13
  Speaker 3: To be honest, agrade twenty eight with one hundred and
• 47:17
  Speaker 3: sixty eight dollars in her bank account.
• 47:20
  Speaker 2: I mean she had one hundred and sixty eight thousand
• 47:22
  Speaker 2: dollars in a bank account.
• 47:23
  Speaker 1: But I'm pay a hundred p Yeah.
• 47:24
  Speaker 2: Look, I'm honestly really glad that you're just as impressed
• 47:27
  Speaker 2: at one hundred and sixty eight dollars as you are
• 47:30
  Speaker 2: at one hundred and sixty eight thousand dollars. But you
• 47:32
  Speaker 2: know what, it all counts, does It absolutely does?
• 47:35
  Speaker 3: But that is so impressive, And I think it was
• 47:38
  Speaker 3: just a really kind of girl power empowering story, Like
• 47:43
  Speaker 3: she learned so many good habits from her mom, who
• 47:45
  Speaker 3: really set her up to have a financially prosperous future
• 47:49
  Speaker 3: purely by being educated. And yeah, I think she's done
• 47:53
  Speaker 3: an amazing job on like a pretty moderate salary. I
• 47:57
  Speaker 3: guess to have that much on seventy five okay, yeah.
• 48:00
  Speaker 2: Yeah, that's like it's a good salary. She's obviously making
• 48:04
  Speaker 2: a fair bit of sacrifice to get that done for
• 48:07
  Speaker 2: her life. And you know what, like, I love these stories,
• 48:10
  Speaker 2: and I think it is so important for us to
• 48:12
  Speaker 2: share these stories with you as kind of like inspiration
• 48:16
  Speaker 2: for what we can achieve. And I know that, you know, like,
• 48:19
  Speaker 2: let's be really real here, Georgia, there is a lot
• 48:22
  Speaker 2: of privilege that goes into this. There's educational privilege, there's
• 48:25
  Speaker 2: probably geographical privilege. There's probably even white privilege in this,
• 48:30
  Speaker 2: and being able to achieve these things is not achievable
• 48:33
  Speaker 2: for everybody, And we're not sharing these stories thinking that
• 48:36
  Speaker 2: it is achievable for everybody. But I think us being
• 48:40
  Speaker 2: able to celebrate everybody is incredible and us being able
• 48:43
  Speaker 2: to share these stories for everybody to learn from and
• 48:45
  Speaker 2: go wow, like she's gonna do this and she's saved
• 48:48
  Speaker 2: this much like I just love that someone's twenty eight
• 48:51
  Speaker 2: and done that. Like fifty years ago, that wouldn't have
• 48:53
  Speaker 2: been a thing because a female wasn't even allowed to
• 48:56
  Speaker 2: have her own bank account without having it co signed
• 48:58
  Speaker 2: by man. Like this uff is incredible, Like let's celebrate
• 49:02
  Speaker 2: it for what it is, not look at it and
• 49:04
  Speaker 2: go oh, I could never achieve that. That's obviously unrelatable,
• 49:07
  Speaker 2: Like no, like exactly, we're all so passionate, Like you
• 49:10
  Speaker 2: could tell she loved her dog. I mean a thousand
• 49:12
  Speaker 2: dollars a month on or a thousand dollars per birthday
• 49:15
  Speaker 2: party for her dog, Like that's a lot more. But
• 49:17
  Speaker 2: I'm so glad it aligns to her values. There's Honestly,
• 49:20
  Speaker 2: there's no judgment there for me, Like you go, girlfriend,
• 49:23
  Speaker 2: you've obviously got more than enough money and done more
• 49:25
  Speaker 2: than enough good things to actually get that done. But
• 49:29
  Speaker 2: I think it's also really cool to point out she
• 49:32
  Speaker 2: said she was really interested in starting to invest, and
• 49:35
  Speaker 2: last week on the podcast Georgia, we spoke about investment
• 49:38
  Speaker 2: a fair bit.
• 49:39
  Speaker 1: We spoke about what it actually.
• 49:40
  Speaker 2: Means and how we can achieve that, and what financial
• 49:43
  Speaker 2: freedom actually looks like. Right, it's not just investing and
• 49:46
  Speaker 2: then selling it down once you have a certain amount
• 49:48
  Speaker 2: of money. It's actually investing it so that we can
• 49:51
  Speaker 2: create an asset that produces an income for ourselves in
• 49:54
  Speaker 2: the future. And if she invested, and I'm always quite conservative,
• 49:59
  Speaker 2: we're making pre addictions. If she invested one hundred thousand
• 50:02
  Speaker 2: dollars at an annual interest rate return of seven and
• 50:05
  Speaker 2: a half percent, which is pretty conservative for the next
• 50:08
  Speaker 2: thirty years, because let's just assume she's going to return return. No,
• 50:12
  Speaker 2: she's not returning anywhere. She's retiring in thirty years. Maybe
• 50:16
  Speaker 2: if she just took one hundred thousand dollars of her
• 50:18
  Speaker 2: savings right now and invested that, she would arguably have
• 50:21
  Speaker 2: nine hundred and forty two thousand dollars when she retired,
• 50:25
  Speaker 2: which is epic and that's not with any regular deposits
• 50:28
  Speaker 2: at all. But if we actually looked at it, I mean,
• 50:31
  Speaker 2: I'm going to use her thousand dollars as an example
• 50:33
  Speaker 2: because she said she spent one thousand dollars on her
• 50:35
  Speaker 2: dog each birthday in Christmas. So I'm going to make
• 50:39
  Speaker 2: a grand assumption that she's investing one thousand dollars a month.
• 50:42
  Speaker 2: She might be able to afford that, she might not.
• 50:44
  Speaker 2: It is what it is. It's an example here, friends.
• 50:47
  Speaker 2: If she invested one hundred thousand dollars today and then
• 50:50
  Speaker 2: regularly deposited one thousand dollars a month Georgia King, she
• 50:54
  Speaker 2: would have two point two eight nine million dollars by
• 50:58
  Speaker 2: the time she retires. That's not even the best bit.
• 51:02
  Speaker 2: Like the best bit is that generates a passive income
• 51:06
  Speaker 2: for her of more than one hundred thousand dollars a year.
• 51:09
  Speaker 2: Like that's what we're here for. She won't ever lose
• 51:11
  Speaker 2: that money. It won't ever, you know, have to be
• 51:15
  Speaker 2: spent because it'll sit in her investment and each and
• 51:17
  Speaker 2: every single year her dividends will pay her an income.
• 51:21
  Speaker 2: How cool is that? It is really the fact that
• 51:23
  Speaker 2: we can create our own incomes so one day we
• 51:26
  Speaker 2: don't even have to go to work anymore.
• 51:28
  Speaker 1: And like you said, she earned seventy five thousand dollars
• 51:30
  Speaker 1: a year just before. That's a good income.
• 51:32
  Speaker 2: Arguably, if she continues to invest and save in the
• 51:35
  Speaker 2: same way she has been, she's gonna have an income
• 51:37
  Speaker 2: higher than what she currently has when she retires.
• 51:40
  Speaker 5: Yeah.
• 51:40
  Speaker 2: Like, if that's not financial freedom, I don't know what is.
• 51:43
  Speaker 2: And I think that that's really inspirational.
• 51:44
  Speaker 1: Yeah, so she is set to go.
• 51:47
  Speaker 3: Would you say, be that micro investing for her because
• 51:51
  Speaker 3: she is scared to invest is the way to go?
• 51:53
  Speaker 3: Or would you be saying head to the financial advisor, girl,
• 51:57
  Speaker 3: and let's go.
• 51:59
  Speaker 2: I don't know, if you're looking at investing more than
• 52:01
  Speaker 2: one hundred thousand dollars, just go to an advisory, Like
• 52:04
  Speaker 2: it is not worth the risk associated with making a
• 52:06
  Speaker 2: bad decision, or you know, investing in a platform and
• 52:09
  Speaker 2: picking the wrong risk profile that doesn't actually suit you
• 52:12
  Speaker 2: or your goals, or just get some advice. It will
• 52:15
  Speaker 2: absolutely be worth its weighting gold. And I just think
• 52:18
  Speaker 2: it's so important to you know, have someone on your
• 52:21
  Speaker 2: side when you're creating wealth in that way, like, regardless
• 52:25
  Speaker 2: of what you're investing, Like, I just think professional advice.
• 52:28
  Speaker 2: I know I'm obviously quite biased, Like it's absolutely worth
• 52:31
  Speaker 2: its waiting gold.
• 52:32
  Speaker 3: Yeah, well, little give her that peace of mind. Before
• 52:36
  Speaker 3: we wrapped the show as well, Victoria, I just wanted
• 52:39
  Speaker 3: to add that it was Ryan John laughing in that
• 52:41
  Speaker 3: little that link was voice sober part when she was chatting,
• 52:47
  Speaker 3: just in case you guys are like, who is that?
• 52:49
  Speaker 1: What is he doing? Edit it out?
• 52:52
  Speaker 3: So apologies if that offended anyone's ear holes. Look, he
• 52:56
  Speaker 3: won't do it again.
• 52:57
  Speaker 2: Yeah, Look, he might not be invited back to be
• 52:59
  Speaker 2: the producer of show with that, right, But yeah, Ryan
• 53:02
  Speaker 2: John actually did that interview for us, which was very
• 53:05
  Speaker 2: kind of him. But turns out he's not the greatest
• 53:07
  Speaker 2: interview because he laughed through it.
• 53:09
  Speaker 1: Yeah, but turns out.
• 53:10
  Speaker 2: People interviewed by him actually really like him, so he
• 53:13
  Speaker 2: might stick around anyway. I think that that's enough on
• 53:16
  Speaker 2: our Money Diary though, Georgia. But just before we head off,
• 53:19
  Speaker 2: we'd like to acknowledge and pay respects to Australia's Aboriginal
• 53:22
  Speaker 2: and Torrestraight Islander people's the traditional custodians of the lands,
• 53:25
  Speaker 2: waterways and skies across Australia. We thank you for sharing
• 53:29
  Speaker 2: and for caring for the land on which we are
• 53:31
  Speaker 2: able to learn. We pay our respects to elder's past
• 53:33
  Speaker 2: and present, and we share our friendship and our kindness.
• 53:37
  Speaker 3: Now let's scoot over to the boring bits. The advice
• 53:40
  Speaker 3: shared on Sheers on the Money is general in nature
• 53:43
  Speaker 3: and does not consider your individual circumstances.
• 53:46
  Speaker 1: No, it doesn't, Georgia King Uh.
• 53:47
  Speaker 3: As we said earlier, She's on the Money exists purely
• 53:51
  Speaker 3: for educational purposes and should not be relied upon to
• 53:54
  Speaker 3: make an investment or a financial decision. And stressless, we promise,
• 53:58
  Speaker 3: Victoria divine isn't all the Rise, Representative of Australia Pacific
• 54:02
  Speaker 3: Funds Management Proprietory Limited ABN three four one three two
• 54:06
  Speaker 3: four six three two five SEVENFSL three three nine one
• 54:09
  Speaker 3: five one. I think I said I was going to
• 54:11
  Speaker 3: wrap that this week.
• 54:12
  Speaker 2: Disappointed next week. I'm holding you to it next week though.
• 54:16
  Speaker 2: If you don't get some rap line, it's actually if
• 54:18
  Speaker 2: anybody has maybe do it tutorial for Georgia to learn
• 54:21
  Speaker 2: to rap, that would be very good pop that in.
• 54:24
  Speaker 3: Here me rapping is just futrid always as well, we
• 54:28
  Speaker 3: like to say a big thank you to Ryan John,
• 54:30
  Speaker 3: the aforementioned giggling Dirty. Thank you to the big Man
• 54:35
  Speaker 3: for putting together today's podcast. Hope your trip to the
• 54:37
  Speaker 3: Great Ocean Road was awful?
• 54:40
  Speaker 1: Just kidding.
• 54:40
  Speaker 3: I hope it was good, but I was pretty jealous
• 54:42
  Speaker 3: sitting here in my five k radius.
• 54:44
  Speaker 1: Yeah not fair.
• 54:45
  Speaker 2: Also chout out to our friends in Sydney who had
• 54:47
  Speaker 2: arguably a better weekend than we did. But we would
• 54:50
  Speaker 2: so love it if you guys joined our Facebook group,
• 54:53
  Speaker 2: where honestly nearly one hundred thousand of you share money
• 54:57
  Speaker 2: tips and tricks every single date, free of judgment. So
• 55:00
  Speaker 2: She's on the Money on Facebook and join us if
• 55:02
  Speaker 2: Facebook's not your thing, though, you can also find us
• 55:04
  Speaker 2: on the ground We're at She's on the Money aus.
• 55:07
  Speaker 2: And also, please don't forget we have recently launched our
• 55:11
  Speaker 2: budget and cash Flow masterclass, which George King is getting
• 55:14
  Speaker 2: absolutely glowing reviews, and I am, well, oh right, like
• 55:19
  Speaker 2: I've got no tickets on myself, but like, my god,
• 55:21
  Speaker 2: these people are actually eating it up and I'm so
• 55:24
  Speaker 2: here for this.
• 55:25
  Speaker 1: But that has just dropped and if you keep.
• 55:28
  Speaker 2: An eye out on the Instagram this week, there might
• 55:30
  Speaker 2: be a cheeky little discount code for you all.
• 55:33
  Speaker 3: Oh a little money win their dog.
• 55:35
  Speaker 1: Little money win low us all to have midweek. I
• 55:38
  Speaker 1: love that for us gorgeous.
• 55:39
  Speaker 3: Also, don't forget to rate, review and subscribe if you
• 55:42
  Speaker 3: love the show, Love your dearly and I.
• 55:44
  Speaker 2: Guess we'll see you have a good week.
• 55:47
  Speaker 1: Bye, but