Latest / The Curve / Budgeting 101 & How to Split Your Pay.

Transcript

Budgeting 101 & How to Split Your Pay. · The Curve

0:00
Being prepared and having a budget and understanding your numbers, the real power behind it is just feeling so light.
0:08
Go all the time.
0:09
I think there are going to be lots of tips and tricks that have helped you save and invest more.
0:15
Should we share a few of those now?
0:17
Avoid sticking with banks just because you've been with them forever.
0:20
It's such good tip.
0:21
Intelligence has absolutely nothing to do with it.
0:24
I have honestly seen the most financially illiterate millionaires.
0:27
If you fall off the wagon, don't wait until the next month to get back on.
0:31
We're starting the end of the show again.
0:33
We have to do the absolute basics before we can have the best time at that.
0:39
Oh God, it's 2025 back and you know, it's time to really sort your shit out.
0:45
If you are having a blowout like me, it's a second week of January and I've already blown my budget.
0:51
So you know what, we've just decided this is the year that we get it sorted.
0:55
I am going to be very open about what I am doing with my budget, where I am going wrong.
1:01
And we have Danny who is our curve budgeting extraordinaire.
1:05
She is so passionate about this and she has budgeted and saved and just been like meticulous with the way that she approaches this for over a decade.
1:13
So this episode is firstly, I'd like to apologise, I forgot to hit record and the audio is a little bit shit.
1:21
So we've done our best, but there are a few times where we sound like robots, so just excuse that.
1:27
Also, we're going to do a part two.
1:29
This conversation is not one that you can have in 40 minutes.
1:33
So we're going to leave it here for today after this conversation.
1:36
We're going to check in again in a month just because I think I need to implement what I learned in this episode before coming back for part two.
1:44
And then thirdly, we mentioned our universal money and investing course in here because what we share in this episode, we've plucked bits of what we teach in that.
1:53
So if you'd like to find out more about that and you want to actually really commit to doing your money properly in 2025, we will put a little snippet in now and you can find out heaps more details in the podcast show notes.
2:05
No one has ever saved a weighted being in millenia.
2:08
Picture in a booster, what comes to mind? A man in a suit, lots of money?
2:13
Maybe over 50 and far from the race pool.
2:15
Investing does not look like that anymore.
2:17
If you want to have more money, you need to be investing.
2:20
And we're going to tell you exactly how to do it.
2:22
You don't need a finance degree, you do not need a high salary, or even lots of time.
2:27
It's way more simple than you think.
2:31
Loan with us today.
2:33
Okay, let's get into the episode.
2:38
Also, don't judge me for the amount that I spent on plastic.
2:41
It is 2025.
2:44
Officially, we are in the new year.
2:47
We wanted to start the podcast this year talking about budget.
2:53
I think this is being the biggest, exciting, most empowering part of my financial journey up until now.
3:01
For me, when we first started the curve, we spoke about investing in stocks and all those things.
3:06
And I got really excited by the shiny things.
3:09
But it was like a hand claimer shoes for this.
3:11
I feel like I jumped to all the fun stuff, the things that you really do when you can.
3:15
Yeah.
3:16
Rather the focusing on cleaning up the house, making tree rooms tidy before you got for a fun party.
3:22
Yeah, we have to do the absolute basics before we can have the best time ever.
3:26
Yeah, I wasn't doing that.
3:28
And when I tried the best time ever, it wasn't the best time ever because I was so stressed out.
3:32
I was like, but I...
3:33
What?
3:34
But I've invested.
3:35
I should have done all the good things.
3:36
It's kind of like when you're learning something that's above your grade as well.
3:39
We talk about finance all the time.
3:41
We talk about investing all the time, but all of that stuff means nothing.
3:44
If we haven't put all of the tightest parameters in place first of all,
3:49
like checking that everything's airtight and building on it from there.
3:53
Do you all just realise the best analogy ever?
3:56
I was having dessert before dinner.
3:58
That's what I was doing.
3:59
Dinner is what's going to fuel me for the next day.
4:03
That's going to give me energy.
4:04
It's going to make me healthy.
4:06
And the dessert is like the fun that extra.
4:08
And I was skipping dinner and I was straight for the ice creams.
4:12
I really...
4:13
I would say her long way.
4:15
No longer skipping the man.
4:17
This is recent.
4:18
Actually, we were buying like a falafel wrap for lunch just before.
4:22
And Danny saw me like transfer from my nights to have like my wands into my like spending.
4:28
And she was like,
4:29
Tissues and I was like,
4:30
Yeah, yeah, yeah, yeah, flip.
4:31
Which was so cool because you actually went into your bank camp.
4:34
It wasn't sat in your immediately reachable funds,
4:37
which is exactly the right thing.
4:39
And then you transferring it across mindfully going,
4:42
I am making this purchase, transferring it across in a paper.
4:45
I was like,
4:46
Oh my god, I'm so proud.
4:47
Yeah, yeah, yeah, I'm real proud too.
4:49
It's quite interesting.
4:50
So raising the code 134,
4:52
how financial literacy can change your life with Norvocassius?
4:56
She said to me off like,
4:57
You are telling you sort of give me the energy that you have like financial anxiety.
5:01
And I was like,
5:02
Yeah, I do.
5:03
I kind of an anxious person,
5:05
I don't really want to just fall back on these like turns.
5:08
She was like,
5:09
No, you don't know your numbers.
5:10
And I was like, mm-hmm.
5:11
What do you mean?
5:12
You don't know your numbers.
5:13
You don't know how much you have to spend on this.
5:15
That creates such underlying financial anxiety.
5:17
And I was like,
5:18
It's so right, so simple.
5:19
I don't know my numbers.
5:20
Even if I should really feel good about a purchase,
5:23
or suddenly I'm spending,
5:24
I don't,
5:25
because I don't have the connective pace
5:27
for what Porsche of my pay that's being allocated to.
5:31
And which means you can't act in confidence ever.
5:33
No.
5:34
And I mean, is that even when I'm spending money on myself
5:36
that I deserve and that I totally should feel entitled to do?
5:40
There's this low level of guilt,
5:42
because I don't know really if I should be standing it or not.
5:45
I think that being prepared and having a budget
5:48
and understanding your numbers,
5:49
the real power behind it is just feeling so light.
5:53
For all the time,
5:54
being able to walk into a shop and love something
5:56
and really, really want to buy it
5:58
and not have to worry that you've got enough
6:00
or that I'm going to be able to pay the bill at the end of the month
6:03
though if I do this.
6:04
And it's interesting,
6:05
because what I used to think,
6:06
budget equals control,
6:08
budget equals obsessing over money,
6:10
budget means treachery dollar and cents.
6:13
In a really negative way.
6:15
Because that's the only way I've ever tracked money.
6:17
Is it a really like?
6:18
It's a really old school way of thinking.
6:19
Yeah.
6:20
And actually what I found is by putting this stuff in place.
6:24
It's made me think about money much less.
6:26
And it is a tool.
6:27
And in a really weird way,
6:28
it's made me just value my paycheck.
6:30
And I know that sounds so obvious.
6:32
But my paycheck equals being able to do the things I want now,
6:36
the things I need to do now,
6:38
and the things I want to the future.
6:40
It motivates me so much,
6:42
seeing the numbers go up in the different areas.
6:45
That makes sense.
6:46
It's kind of what you're saying is,
6:47
before it gave you relief when you got paid.
6:49
And now it gives you excitement.
6:51
Yes!
6:52
Oh my, well, that's exactly it.
6:53
That is exactly it.
6:54
Yeah.
6:55
Because you were two days to pay the one day to pay the day.
6:58
And now your life doesn't matter.
6:59
I'm completely organised.
7:01
When my pay comes in, it means more.
7:04
Not.
7:05
That's exactly it.
7:06
Yeah.
7:07
It's not relief.
7:08
It's excitement.
7:09
And it actually, it does make me a little bit annoyed at myself.
7:12
I know this is not helpful.
7:14
But I've been paid how many hundreds of times in my life?
7:18
Hmm.
7:19
So, I've been paid approximately.
7:21
It's just sad for pay life, 150 dons.
7:23
I have made the most of my pay.
7:26
Two times.
7:27
Since it's so sad,
7:29
just see it as empowering
7:31
and also how lucky you are that you have a platform
7:34
where you can educate people not to waste 142 of their base.
7:38
It's not sad.
7:39
It is really sad.
7:40
That's some love and money.
7:41
Think about if you had started doing that 10 years ago
7:44
and you'd have had this put in place,
7:46
then all of the surplus you would have had
7:48
to put into investments or savings each month.
7:50
Even if it is 10 years from now,
7:52
or it was 10 years then, 10 years in front of you
7:54
can still be that powerful.
7:55
Yeah, true.
7:56
We need to not look back.
7:57
We need to look forward.
7:58
Exactly.
7:59
This entire conversation,
8:00
and you know, just in case you've picked up on it,
8:02
is about budgeting.
8:03
We want to talk about how you can eat your finances
8:06
in a really strong place to be able to eliminate
8:10
as much financial anxiety as possible.
8:12
And that's things like emergency phones being out of debt,
8:15
paying for the way you want to live your life,
8:17
paying for the things that you need to live your life,
8:20
and then having leftover to invest in the stock market.
8:23
And that is really,
8:24
it sounds so simple when you say it like that.
8:26
And it really is that simple.
8:27
What you have to do is just take the time.
8:29
Intelligence has absolutely nothing to do with it,
8:31
because I'm just thinking that you're a super intelligent person.
8:35
I've spoken to another very intelligent person
8:37
even the last week.
8:38
And it is crazy how many people who earn really good money,
8:42
who are really intelligent,
8:44
and live really like put together lives,
8:46
don't have that basic understanding.
8:48
So for anyone that's thinking like,
8:50
this is above me, you're like,
8:51
what if I can't understand it or whatever?
8:53
Like, no, it's for every single person.
8:55
Lots of people think that just because people have money,
8:58
they have the understanding of what to do with it.
9:01
And it's just not true.
9:02
I have honestly seen the most financially illiterate millionaires.
9:05
Usually it's generational wealth.
9:07
I bet you're dead.
9:08
I don't think I even want to live like that.
9:10
I affect sometimes I feel like ignorance is bliss already sometimes.
9:13
I've someone said to me,
9:15
they'll pin in less part of money
9:17
than it's poured into your gap up.
9:19
I think and we choose that.
9:21
Since I would feel the same in power,
9:22
we're like, I'm never gonna run out.
9:23
I'm just so annoyed at myself
9:25
that I've been such a hit in the sand silly for so long.
9:29
No, we look forward.
9:30
Yeah, okay.
9:31
So you cannot manage what you do not measure.
9:33
But yeah, a lot of us are taught these money basics.
9:35
And so looking to count as terrifying
9:38
or even sitting down to have a look and reassess is like,
9:41
noob.
9:42
Why be doing that?
9:43
But the best lessons are usually learnt by making stakes.
9:47
Really?
9:48
Because you have to feel consequence of something
9:50
to understand how important it is, you know?
9:52
I don't think I've learned that.
9:54
I've done some stupid things.
9:56
I'm doing specific with money.
9:57
Okay.
9:58
I've done the same mistake again and again and again and again
10:01
and my whole life.
10:03
And it wasn't until I got this blueprint
10:05
and that I thought, oh, okay, I can do that.
10:08
Yeah, but you've made that mistake so many times.
10:10
You now have done the calculations
10:12
of a couple of hundred thousand pounds
10:13
has been a lot of space on your lack of connection
10:16
with this formula and lack of action.
10:18
It's a pretty big lesson to learn.
10:20
Yeah.
10:21
You're not gonna go backwards from this.
10:22
No.
10:23
Let's hope that.
10:24
I will not let go.
10:27
Jenny, firstly, can you give some context
10:29
as to how you figure it out
10:31
to manage your money in this way?
10:33
And I realise that we're doing the biggest teas of all time.
10:35
You're probably like, tell me the stuff.
10:37
I want to know it out.
10:38
But I do think it's not just as simple as like A plus B equals C.
10:40
So like, let's give some context as to
10:43
why we now teach this way at the curve.
10:45
Where did it come from for you?
10:47
Like, how did you figure it out?
10:48
I think bear making mistakes, you know?
10:50
I moved out home young and spent money
10:54
as it was coming in because that's fun
10:56
when you're getting a paycheck for the first time
10:58
and you're spending it as a sort of young adult.
11:00
And then, you know, not having a lot of other resources
11:04
to go to to fill up that pot again
11:07
and understanding it okay, next time
11:09
I'm not gonna be able to get the bus to work
11:11
if I don't budget, you know?
11:13
It really does force you into that kind of way of thinking.
11:17
The necessity to have to really crunch the numbers
11:20
because there weren't any other pots
11:22
which I'm really grateful for because now we can, you know,
11:25
speak about the things that we do here
11:27
and it sort of taught me to budget a really young age.
11:29
And I honestly don't think that a lot of things
11:31
I've been able to do in my life
11:32
I would have been able to do
11:34
or had the opportunities I've had
11:36
if I hadn't started managing my money quite young.
11:38
Okay, so how are we, when you first put your budget in place?
11:41
Sixty.
11:42
Is it the same type of budget that you're still running now?
11:45
We've actually gone slightly more relaxed now.
11:47
Really?
11:48
Yeah, because you kind of get to that point
11:50
where you've built up what I would consider financial freedom.
11:54
So two things.
11:56
It's been running in a pretty consistent way for a long time
11:59
and obviously if you do something for a long time,
12:01
it becomes a habit.
12:02
Wait, 16.
12:03
So that means you're budgeted for how long?
12:05
I'm about 2.35, so 19 years.
12:08
Whoa!
12:09
There is such a decent amount of time
12:12
to handle your budget and check.
12:13
It definitely got stronger, you know?
12:15
I would say 16 to 24, 25.
12:19
Probably not the most robust,
12:21
but understood rent gets paid, bills get paid
12:24
and whatever is left over is sort of just my claim money.
12:27
But then the investing and sort of saving elements
12:30
came in sort of mid-20s when I realised
12:32
that part of fund money I had was actually quite big
12:35
and I was wasting it.
12:36
So I sort of segmented that often used more of fund money
12:39
on the future than having it just immediately.
12:42
If you describe what budgeting means to you now,
12:45
how would you explain it?
12:47
If someone's like, you've got one to two sentences,
12:50
what would be your stiff election of budgeting?
12:53
Empowerment and lightness, I think.
12:59
It's so ironic.
13:00
I feel light.
13:02
There's a lot of things that we all have to worry about
13:05
if we can remove having to think about that
13:08
to as much of a degree as possible.
13:11
It's an absolute game changer.
13:13
I think about the times where I would worry about it
13:16
just takes up so much of your life.
13:18
And it's kind of thick and unnecessary stress
13:21
because you're going to have what you have in that month, right?
13:24
Unless you're changing jobs,
13:26
then it's going to be the money that comes in that month.
13:28
It's pretty straightforward as in front of you.
13:30
Say it's three grand, say it's four grand, whatever it might be.
13:32
What is the point of stressing about it throughout the month?
13:35
That's not going to go up.
13:36
You've got that amount of money,
13:38
so you have to sort of work with that number
13:40
and make that work for your life throughout that month.
13:43
But we put so much pressure on ourselves and stress
13:46
and it's like, I think that's why conversations are so important as well
13:49
being able to say to your friends,
13:51
I'm actually not in a position where I can go out to that kind of dinner right now
13:54
and come and do a dinner at home instead.
13:56
But instead of stressing out about the social pressure of it
13:59
and that $100 being something that actually needed to go on your phone bill.
14:02
Yes.
14:03
Yeah, so Empowerman gets you to the point where
14:06
I don't have to have those conversations anymore.
14:08
Because you just say no in the first place to I will both.
14:13
I just say no in the first place because I've got boundaries around
14:16
what I will and won't spend my money on,
14:18
but also because I've been taking care of my money for a long time.
14:21
I don't have to have these conversations because I can go to those places
14:24
and not stress out about it.
14:26
If it's somebody's birthday, I've budgeted for it.
14:29
So it's like, how are you?
14:31
I definitely not be in terms of the micro-smaller amounts
14:35
even thinking back to like, Christmas.
14:38
I didn't buy my Christmas until at the 23rd of December.
14:41
Does that give you a head to things, aren't it?
14:43
Yeah, but I just, I buy, I don't know.
14:46
What kind of night have you probably got some deals?
14:50
No, I won't take.
14:53
Okay, I think there are going to be lots of tips and tricks
14:57
that we can talk about here that have helped you save and invest more.
15:01
Yeah, should we share a few of those now
15:04
and then go more into the how to actually split your pay?
15:07
Yeah.
15:08
I think people fall into the trap of sticking with the bank
15:11
they've been with their whole life.
15:12
And that is a big missed opportunity.
15:14
I've done that. I'm still at the bank house with since I was zero.
15:16
Yeah.
15:17
Since you were zero.
15:18
I'm pretty sure I think you can't sit up really yet.
15:21
Probably by a pair.
15:22
And actually I was five.
15:23
I remember it was like that birthday and I think my grandma took me to the bank
15:27
and got me a bank account.
15:28
Thank you.
15:29
I'm going to say here.
15:30
I'm having a cute five year old Sophie.
15:32
Five year old Sophie.
15:33
I reckon I was quite cute.
15:35
I remember when I went to the bank first time my dad took me in
15:38
and we were able to deposit two pounds
15:40
and they gave me a little plastic briefcase for opening a bank.
15:45
And I guess that's because they were emulating a male banker.
15:49
Right, not that cute.
15:51
Not that cute.
15:52
But they gave me a suitcase and inside it had chocolate money.
15:57
So cool.
15:58
It's just cute.
15:59
Like that's such a cool memory.
16:00
It's a cool memory of that.
16:01
Avoid sticking with banks just because you've been with them forever.
16:04
It's such good tip.
16:05
There are new deals all the time.
16:08
It's like they want new customers.
16:10
Other banks are fighting for you.
16:12
They will have a better deal for new customers.
16:15
I almost guarantee it.
16:16
You know, it might be 0.2% more on a savings account because you switch over.
16:22
Could they give you special deals just for swapping?
16:24
So you could say I'll join you if you get me out of five.
16:27
Oh my god.
16:28
So say you've been with Barclays in the UK, right?
16:31
And you've been with it for 34 years, 33 years.
16:35
If you're not doing a cost comparison and what other banks are offering in terms of like high yield savings accounts,
16:40
high interest savings accounts, which we will explain more.
16:43
Which we'll explain more on term deposits or even just credit cards.
16:47
There's varying degrees of interest in all of these banks.
16:49
And some of them just have significantly better deals than the other.
16:52
And they rely on people just not checking competitors.
16:55
They really do.
16:56
Literally made you a tape.
16:58
And not once thought about swapping a bank.
17:00
And banks drop their interest rates on their high interest savings accounts all the time.
17:04
How in a way is it to move that though?
17:06
It's simple.
17:07
They'll do it for you.
17:08
Really? Yeah.
17:09
If you register with a new bank and you want to send all the details across,
17:13
you'll just kind of fill out a new form.
17:15
And then you can simply just transfer your money across a monolumnsone.
17:18
I know some banks that will do it for you depending on at the level you're transferring.
17:21
Because they really want your custom.
17:23
Oh, my God.
17:24
Also, sorry.
17:25
When you say they want your custom.
17:26
Say what customer?
17:27
Okay.
17:28
Like, what does customer mean?
17:29
Bank trade.
17:30
Oh.
17:31
Yeah, customer.
17:33
Yeah.
17:34
She's slow to that.
17:36
2025 is there.
17:37
Yeah, it didn't be here.
17:38
Fix it already here.
17:39
Okay, great.
17:40
So look at the different options, the different banks.
17:42
Keep your options open always.
17:43
And all banks are typically the worst.
17:46
They do not try and keep up with the competition at the time.
17:49
And the new banks, like,
17:51
because I'm lazy and don't check.
17:53
Yeah.
17:54
Basically, they're relying on kind of the mentality of,
17:56
I've been with them forever.
17:58
It's easy.
17:59
No.
18:00
Shit.
18:01
Make the make the uncomfortable change.
18:03
If it's like 10 minutes of admin could save you hundreds and hundreds and hundreds of dollars a year.
18:07
And it missed interest here.
18:09
Okay.
18:10
Monzo and Revolut and co-op in the UK.
18:12
They're pretty competitive really.
18:14
When it comes to it.
18:15
So I think a time of research was like 1% less than I interested in this count on Monzo.
18:21
1%'s massive.
18:22
It could take it across the year.
18:23
Main thing here is, like, near banks.
18:26
So digital banks are going to probably head bitter deals.
18:31
The majority of them have better deals.
18:33
They're more competitive because they've got their eye on the market more.
18:36
Whereas the heritage banks, the old banks that you've been with forever and ever and ever.
18:40
They've been around a long time.
18:41
They don't have to work as hard.
18:42
They've got a lot of customers.
18:44
Okay, that's such good tip.
18:46
Tip number two, consistency is key.
18:48
It takes a lot of days to build up any kind of habit.
18:51
Whether you're trying to eat better in the new year.
18:54
Whether you're trying to produce alcohol.
18:56
See your friends more, be more mindful, getting off social media.
18:59
Apart from obviously tuning into the curve.
19:02
All habits.
19:03
All new habits take time.
19:05
So be kind to yourself.
19:07
If you fall off the wagon.
19:09
Don't wait until the next month to get back on because the amount that you're wasting money.
19:13
Oh, I had a blast this weekend.
19:15
Oh, I'm going to start fresh next month.
19:17
What if there's 20 more days left in that month?
19:19
Are you just going to default back to your old habits?
19:21
Spend sense, spend until you get the what relief of the next payday?
19:26
Yeah.
19:27
No, restart the next day.
19:28
Don't let the wagon run over you.
19:30
Yes.
19:31
There's been so many times throughout my life where I've had blast hours.
19:34
And it's usually what I've had too many drinks.
19:36
I am that person.
19:37
Think the last big one I did.
19:38
I picked up the bill for like nine people.
19:42
Why did you do that?
19:43
I don't know.
19:44
Were you just you'd had a few drinks?
19:46
Yes.
19:47
How much was the bill of your either?
19:49
Was it like over two grand?
19:51
Just under.
19:53
Wow, that's a lot of money.
19:55
What were you thinking?
19:56
I was thinking, I've got it.
19:58
I want to do something nice for you.
19:59
I'm not going to see you guys for ages.
20:01
Don't worry about it because it's kind of a good buy drink situation.
20:04
And every arm is sort of a will spill it 10 way.
20:07
You know what?
20:08
Don't worry the next day.
20:10
Writing six different versions of, hey guys,
20:12
had a great dollar last night.
20:13
You and my details.
20:14
Oh no.
20:15
So we'll put in a high in sign.
20:17
You just ice-copped it.
20:18
Drunk Danny is generous.
20:20
Oh yeah.
20:21
Okay.
20:22
So how long would it happen?
20:24
Just under a year.
20:25
How did you get back on the bandwagon?
20:27
I didn't socialize for about two weeks up.
20:31
I punished myself.
20:32
No, well I'd used all of my money up.
20:34
Yeah.
20:35
So it wasn't like, okay.
20:36
I'm going to make myself go bad for weeks and weeks.
20:38
But I was like, well, you've made a choice in that moment
20:41
that you're not going to be out having dinners for the rest of the month.
20:44
Yeah.
20:45
So that was how I got back on to that.
20:47
Actually, it was more than two weeks of recovery time.
20:49
I think that took me about four or five weeks of not going out for dinners.
20:52
By the time I was out, cool.
20:54
We can start the conquer again.
20:55
Yeah.
20:56
You're back to normal budgeting.
20:57
Yeah.
20:58
So what I'm trying to say is I'm not going to punish myself forever.
21:00
I immediately was like, slap on the wrist.
21:02
Now you don't go out for dinners for the rest of the month.
21:05
Because you have to sort of learn that lesson.
21:07
And you get back on what you got.
21:09
It's so easy though.
21:10
It should be like, I'll start on Monday.
21:12
I'll start on payday with anything.
21:14
This weekend's gone.
21:15
Forget about it.
21:16
No one's successful.
21:17
Says anything like that.
21:19
Any self-help books are not going to be like,
21:22
forget about it.
21:23
Give yourself a couple of weeks.
21:24
They're going to say start again.
21:26
Yeah.
21:27
Okay.
21:28
We're starting again.
21:29
Google Shopping is a really good tool just to...
21:32
I'm just googling in general.
21:33
If you want to buy something, if I want any pair of trainers,
21:36
not just going into a shop, a physical store,
21:39
and buying those pair of trainers you see,
21:41
this sounds really obvious, but that instant gratification
21:44
then cost people a lot of money.
21:46
Find the one you want, and then go on night and do a bit of research.
21:48
You do a good thing.
21:49
You do there a lot.
21:50
You'll go and try something on, like a new pair of shoes.
21:52
Yes.
21:53
You'll be like, cool, that's my size.
21:54
And then you'll look online and find them cheaper.
21:56
Yeah, I do.
21:57
It's just not being lazy with purchasing.
21:59
Exactly.
22:00
And that's where the instant gratification comes in those.
22:02
It's like, do you really need it this second?
22:04
Or could you wait two more days and save yourself
22:06
maybe 50, 50 pounds?
22:08
50 dollars?
22:09
I think when you have a budget in place
22:11
and you understand the value of 50 dollars, 50 pounds,
22:15
that's when you choose the sense of auction,
22:17
I think up until now because I haven't had any budget
22:20
and I haven't known my numbers,
22:22
I can just convince myself of anything.
22:24
Oh, your time is money.
22:26
Oh, it's not with your time.
22:27
Whereas now I'm having to really prioritize what I want to need.
22:31
You know, like isn't where my money's going.
22:33
So when I have to make a decision like that,
22:36
I will choose the more sensible one.
22:38
That's the next tip as well.
22:40
It's work out what the difference could buy you.
22:42
So if you go into a shop and something is a hundred pounds
22:45
and then you quickly, on your phone, in the shop,
22:48
search that product and see it for 70 pounds.
22:50
This is 30 pound difference.
22:51
And honestly, that happened all the time.
22:52
That's not a rare instance.
22:54
Tell yourself what you could buy with that 30 pound.
22:56
You're like, okay, I could buy this now for a hundred pounds
22:58
and walk out with it immediately.
23:00
Done, purchase made.
23:01
I could wait two days, get that delivered to my house.
23:04
It cost me 70 pounds.
23:06
I could then take my boyfriend out for dinner.
23:08
Where are you ever dinner?
23:10
Surely there's strict budgets
23:12
on not ordering a drink at that dinner.
23:14
Yeah.
23:15
And I said, do you know I'm in fries?
23:17
I need a snack.
23:18
But you know what I mean?
23:19
Like, what else could that money get me?
23:21
The difference in purchasing like 30 pounds.
23:23
I could do a lot of somebody.
23:25
Yes.
23:26
Okay.
23:27
If you go to the effort of saving money
23:30
by not taking the quip fix
23:32
or the easy auction or the instant gratification,
23:35
reward yourself with thinking about
23:37
how you will spend that extra money.
23:39
Yes.
23:40
Rather than just thinking about it as like, cool,
23:42
let's sky back in your pot
23:43
that I don't even get to think about.
23:44
You actually get more treats.
23:46
Yeah, by being good.
23:47
Exactly.
23:48
That was very well phrased, much better
23:50
than how I was trying to do it.
23:53
Let's just talk about how you personally split your money
23:56
because this is how we're teaching it at the curb,
23:58
which I think is just absolute game changer.
24:01
You split it into separate buckets.
24:03
Mm-hmm.
24:04
Can you talk through those three buckets?
24:06
Yep.
24:07
So I put them into essentials,
24:09
which is my rent, my bills, my groceries,
24:12
anything that is basically essential for me to live.
24:15
Non-essentials, which are my nice to have,
24:17
is getting my nails done,
24:19
if I need sort of new lipstick or something like that.
24:22
Drinks and dinners with friends.
24:24
And whatever is left over is my surplus.
24:27
And that either goes into a type of savings
24:29
that's generating money on money through interest
24:32
or it goes into my investments.
24:34
So free buckets.
24:35
If someone is in debt or doesn't have an emergency fund,
24:38
what would they do that surplus instead?
24:41
Because what I was doing was putting that money into investments.
24:45
But I had debt and I didn't have an emergency fund.
24:48
Going back to stress and pressure,
24:50
we need to alleviate stress and pressure
24:52
with that surplus money, right?
24:54
And the quickest and easiest way to do that
24:56
is to give yourself that emergency funds.
24:58
So if anything does go wrong, which life happens,
25:00
and we're not in control of everything all the time,
25:02
much to my dismay.
25:04
We waited for the coup of Christos Cuny
25:06
at Woodward Land,
25:08
and I was absolutely about to weigh my pants
25:10
getting on this ride.
25:11
It's like so scared.
25:13
And I was just like,
25:14
I was just trying to throw a shake
25:16
so I was feeling nervous.
25:17
I thought, well, Teddy, you're a control freak.
25:19
How do you know to ride?
25:21
Yeah, I was like, why are you coming from me?
25:23
Yeah, to do a get on the ride.
25:25
She's like, I love the feeling of just letting go
25:27
and not being able to control that.
25:28
And I was like, I love that.
25:29
And then I went on this giant ride.
25:31
It was like, it's been claw-cooled,
25:32
like the XXL or something terrifying.
25:34
And the whole thing went on it.
25:36
And I was like, I really did myself relax.
25:39
And I was like, I'm not going to die.
25:41
Like, I know I'm fine.
25:42
So I'm not going to try and control the fear here.
25:44
And it was quite life-changing.
25:46
I've told so many people about the fact that I went on that ride.
25:49
Well, I mean, we're not trying to tell people
25:51
though, just let go and let it happen to you.
25:53
Having a cushion makes things that you're not in control of
25:58
a little bit more palatable.
25:59
So if it's not in your essentials,
26:01
it's not in your non-essentials,
26:02
and it's your surplus,
26:03
but you've got debt or you've got a credit card to pay off
26:06
or you don't have an emergency savings pot,
26:08
then that surplus needs to be going to one of those.
26:12
Definitely, definitely building your emergency savings.
26:15
That is the priority.
26:17
And then the remainder of that apportion of that
26:19
if you were going to put it towards debt at the same time.
26:21
Genius.
26:22
Yeah.
26:23
I'm very proudly out of debt right now.
26:25
Actually, right now, in general, I'm out of debt.
26:28
Oh, where did it do?
26:29
That's the main idea.
26:30
I'm not.
26:31
I'm so proud of myself.
26:32
And that's a big deal because what was the stat
26:35
that average UK person has around 34,000 pounds
26:38
in personal debt?
26:39
Yeah, it's some lower in Australia and New Zealand too.
26:42
Now, let's define.
26:43
Okay.
26:44
So you just made it very clear.
26:46
If you want needs, yeah, surplus.
26:49
Yeah, surplus will go into either an emergency fund if you
26:53
don't have one, which I don't think we go into too much detail
26:56
on right now only because we've got quite a few things to get through.
26:59
But if all of this is, if you're hearing it and you're thinking,
27:02
okay, I can do this.
27:03
I should be doing this.
27:04
I want to know more.
27:05
The universal money and investing course will,
27:07
like in the podcast show notes, go into this in way more detail.
27:09
So you can actually go through and set everything up as you go through.
27:12
Yeah.
27:14
But yeah, you either put your surplus towards your emergency fund,
27:16
then you pay off your debt, then you've got your money to invest.
27:19
Let's go into more details around how we define,
27:26
like an essential or a non-essential.
27:28
Yeah.
27:29
Well, anything can be scooped into essentials if we aren't strict with ourselves.
27:33
You know, I need to get my tea fired and wrong.
27:38
I need to go to the gym.
27:41
Correct.
27:42
It's an essential.
27:43
Love it.
27:44
And we're sexually deferred to a lot of budgeting.
27:46
Yeah.
27:47
And debt.
27:48
And I love this.
27:49
This was fully spearheaded by Dania.
27:50
It's the idea that we want people to live a healthy, happy lives.
27:54
Instead of also looking after your physical, mental, emotional health.
27:58
Yeah.
27:59
And we also include therapy in that.
28:00
Yeah.
28:01
Because if I needed to live my life in a happy and healthy way,
28:04
then I consider it an essential.
28:06
Do I need Netflix to thrive?
28:08
No.
28:09
That's personal value.
28:10
I had decided I do not need Netflix in order to live my life.
28:13
I really need to have a healthy system for my mind and my body, though.
28:18
Evening, and that really helps as well.
28:20
Because then you don't feel like you're going without anything.
28:22
And it's not about going without things.
28:25
It's realizing that essential means you can't live without it or you can't get by without it.
28:29
It's like if your boss says everything's urgent.
28:32
Well, if everything's urgent, then nothing's really urgent.
28:35
And it loses all sense of meaning, non-essential and essential.
28:38
And just blurs into one.
28:39
And you don't really take any action on anything.
28:41
You have to be very clear and defined.
28:43
That's actually a really uncomfortable thing for a lot of people too.
28:45
When they go through their list.
28:46
I've done it with a lot of people now.
28:48
And they write their list out.
28:50
And they'll put managers and essentials.
28:52
Okay.
28:53
Should I read you mine?
28:54
Because my next question was going to be,
28:55
how can we, if someone's listening and they want to, like,
28:59
go through a little audit?
29:00
Like, what would they do or how would they be structured themselves?
29:03
He'll be so proud of me as well.
29:04
I put it as a spreadsheet.
29:06
Which is so rare for me.
29:08
I hate a spreadsheet.
29:09
But I thought, I'm going to do it.
29:11
I'm apparently on so many levels today as broadcast.
29:14
I'm sorry.
29:15
Who would be so proud of you right now?
29:17
Yeah.
29:18
She would be, wouldn't she?
29:19
Okay.
29:20
This was the last month for me.
29:21
These are all the things that I consider essential.
29:24
Healthcare.
29:25
Like, I do, I get.
29:27
Okay.
29:28
Actually, maybe this is a question of what?
29:29
I needed to get plastic.
29:31
Because I had real bad blisters.
29:33
And stuff at the pharmacy, because I found myself getting sick.
29:36
So I put it in the essential.
29:38
How do we feel about that?
29:40
It's not essential with this not a fixed cost.
29:44
Okay.
29:45
But it was essential for me to be happy and healthy.
29:47
Yeah.
29:48
Fine.
29:49
But you can't ever, like, forecast that.
29:50
Fuck.
29:51
Winter hat.
29:52
I had no beaning.
29:53
And I thought, this is an essential.
29:55
Anyway, I put winter hat, winter jumper, times two.
29:58
And essentials.
30:00
Now, arguably I could have got a cheaper shirt or one,
30:03
but I got hand-nessed Mo here.
30:05
And like, though both, I got them on sale.
30:08
The question here is, did you have another jumper home?
30:11
Not.
30:12
Well, then yes, it's essential.
30:13
Yeah.
30:14
I hardly have any jumpers.
30:15
Yeah.
30:16
Well, so you do have another jumper home.
30:18
Like, I would have one.
30:22
But I needed it.
30:25
Yes, I did.
30:26
No, you wouldn't.
30:27
Because you could have just worn your normal jumper this month.
30:30
And then put an extra 50 pounds in your nice-to-hats next month.
30:34
And then bought it then from your nice-to-hats.
30:36
That's kind of what I was thinking.
30:37
I was thinking, you've always said essentials like,
30:39
if you need warm socks, if you need a warm...
30:42
You wanted to say a guest of a hat and noted jumper
30:44
because you just said you have jumper home.
30:46
Not a warm one like that.
30:48
Honestly, I don't have like a woolen.
30:50
I didn't have any woolen things.
30:51
I had shitty, like cotton things.
30:53
I like hoodies.
30:54
Okay.
30:55
Oh, I reckon it was a set-up.
30:56
I stared by it.
30:57
Cool.
30:58
I stared by it.
30:59
I said sure.
31:00
Transport.
31:01
I always put a message.
31:02
But that was not an over just to clarify.
31:04
That was like bus train blah, blah, blah.
31:06
Groceries.
31:07
I cooked for the flat once a week.
31:09
Pharmacy trips.
31:10
Now I'm seeing as a real thing here.
31:12
Don't buy band-aids from Pharmacy.
31:14
Denver classes from the farm.
31:15
But it exists so much cheaper in supermarket.
31:17
Panquillos of any kind, so much cheaper though.
31:20
But if you're desperate and you're hobbling
31:22
a sewing store, you've got a giant blister.
31:24
Am I going to all get extra two kilometres for 40 pence
31:27
off of a blaster baguette?
31:28
I'm pretty sure you passed the same spree as local before that.
31:31
But okay.
31:32
Groceries.
31:33
Groceries.
31:34
Class pass.
31:35
A seagull.
31:36
Rumble, rumble.
31:37
Liked to classes.
31:38
Mist classes.
31:39
Was a charge.
31:40
No, but did you dilute your non-essential part?
31:42
No, I just overs eat.
31:44
No, see, I wouldn't do that.
31:46
I think if you've caused yourself late fees,
31:49
or no show fees by not going,
31:51
you'd have to take it out somewhere else.
31:53
In order for your goals to stay the same,
31:55
if you set this up a £2,000 gold,
31:58
that's just getting further and further away.
32:00
When really, you could have had your non-essential spots
32:03
slightly less that amount to make up for
32:05
the lack of diligence you showed in your essentials.
32:08
So what I will say is I got to the end of this month,
32:11
and I had a surplus of $358,
32:16
that I hadn't spent from my nice to herfs.
32:19
Wait, so I underspinned?
32:21
Oh, no, I'm not think that I'm a Paris trip, actually.
32:24
It's still a really good step, though.
32:26
It is a really, it's a really good step.
32:28
This is a trial period, right?
32:29
You're finding the balance.
32:31
And you can't be disheartened by the fact
32:33
that you've had a wobbly month.
32:34
You just got to keep going.
32:35
Yeah.
32:36
And go, great, what am I going to learn from this?
32:38
And what lessons am I going to take from the fact
32:40
that maybe I abandoned some bulk?
32:42
I don't think the classes blew me up.
32:44
I've got a feeling it was Paris, but I think it was Paris.
32:47
No, do you not get banned in Europe?
32:51
I mean, no, I'm just thinking now.
32:54
I'm thinking about it.
32:56
What I need to do is I need to put, I need to put, it's money.
33:04
She's like, Danny, wait, it's just hit me.
33:08
The Paris is expensive,
33:10
the foundations are not.
33:12
So, so, I think I need to start putting in my
33:15
nice to have or like pulling money out of that lot of money
33:19
every month into a savings part that can go towards things like a trip
33:24
because I just feel like I always blow out
33:27
if I'm using my just normal monthly budget.
33:29
Yeah.
33:30
For something that is quite like out of the ordinary,
33:32
yeah, Paris would have been in your short term goals.
33:35
It would have been in a hell.
33:36
I'm going to Paris in three months' time.
33:38
I'm going to put aside a little bit from that surplus every month
33:41
so that when you get there, you're using that.
33:43
And it was by design, it was there for that.
33:45
So, maybe your short term part that you put maybe
33:48
10% of your surplus to every month is travel.
33:51
Yeah.
33:52
Future trips.
33:53
I think that's what I'm going to do.
33:55
That's my Loneau Future trips part.
33:58
And I put there in a high interest savings account,
34:00
which we will get to in another episode.
34:03
Yes, we will.
34:05
We'll do a part two and we'll talk about all of the top accounts
34:07
and the interest rates currently.
34:09
People can go and immediately put their funds into it.
34:11
But remember, have a look at what your bank is currently offering you.
34:15
Even right now, you could have a look on their websites
34:17
and just because you'd be with the same bank for a long time
34:19
doesn't mean it's the best place to be.
34:21
Maybe we do this in a month's time
34:23
so that I can have a bit of time to regroup,
34:25
report back on my budgeting update,
34:27
how I winked, my learnings,
34:29
and then we can talk about the short term goals.
34:32
Because of just thinking,
34:33
I need a bit of, I think,
34:34
and every time to come back feel motivated
34:36
and those should be up by today.
34:37
But every month there's a chance
34:39
to get that home-to-been wagon.
34:41
Every day should.
34:42
Every day was the point wasn't it?
34:44
Yeah, every day.
34:45
Yeah, don't buy two coffees every single day
34:47
to be in the month
34:48
because you've already had a bad one.
34:49
Yeah, yeah, yeah, yeah.
34:50
Thank you, Jenny.
34:51
Soja.
34:52
Loved this.
34:54
Pleasure. Can't wait for part two.
34:56
Yeah, part two coming.
34:57
Thanks, guys.
34:58
I see you later.
34:59
Bye.
35:00
Thank you so much for listening to Raisin the Curve.
35:02
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35:04
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35:06
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35:07
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35:25
Okay, quickly,
35:26
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35:28
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35:31
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