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Budgeting 102 & How to Actually Stick to It. · The Curve

0:00
Welcome to Raising the Curve, a podcast designed to teach you everything that you need to know to be better with your money.
0:06
Come and learn alongside me, Sophie Hallwright, a total beginner from the finance expert Victoria Harris.
0:12
So I've asked all of the questions you wish you could so that finance, investing and growing your wealth actually makes sense.
0:18
Yes, it's expert education, but with promise will not be boring. And in the wise words of sheer...
0:22
My mum said to me, you know sweetheart, one day you should settle down and marry a rich man.
0:28
I said, Mum, I am a rich man.
0:30
Come and talk and learn and laugh with us because together we really can raise the curve.
0:36
Do you know what Danny? I am strangely feeling as though I'm sitting in a therapist room right now.
0:44
Like I feel as though you're about to be like, right Sophie, I've had a look at your stuff and here's the... like it feels...
0:50
I think it's a combination of the cheer that I'm sitting in, the fact that I've synced you my bank statements for three months.
0:56
I'm like, I feel exposed.
0:58
I'm pleased and proud with the amount of trust similarly concerned with how little friction there was of me saying send me your bank statements and you just sent them across to me.
1:10
So this is the thing, I think since we've started the curve, I'm just like, you know when it's like exposure therapy.
1:16
Let's say for example, you're awkward talking about sex and then you start doing sex therapy and all of a sudden you're like,
1:22
oh the other day I was looking at my urethra. Do you know what I mean? Like it's like you kind of like your senses or you're like awareness of how wear it is for other people dulls.
1:32
When it comes to money and talking about what I earn, what I spend, what I invest, what I save, I'm like, I feel like the whole world knows inside my bank account.
1:41
It doesn't feel sacred anymore and it's fine and I don't know if it's because people think Sophie does the curve.
1:48
I'll talk to her about money, but like it seems to me like since I've been home a lot of the times that I've caught up with friends.
1:54
Like I, I hyped the pinnacles yesterday, which is this massive hike in New Zealand and like the column.
2:00
It's beautiful. It's like a big three hour hike each way and the journey there, my friend and I were like discussing how we've potted our money the whole way.
2:10
Like it was like a good two hour conversation around the way we are without money. And I was like, I wonder if this is what the curve has reverberated to everyone and everyone's now doing this.
2:19
Or if it's just because I have like a giant curve sign on my forehead that I'm the one that ends up talking about it.
2:25
Yeah, well I mean if it's reverberating around the whole community then something's going very very well.
2:31
I mean that's the plan, right?
2:33
I've had people that I went to school with come out of the woodwork and text me and say like is this the ISA savings account?
2:39
I should be putting my money in for my child. I'm like I'm fine thanks by the way.
2:44
Shit, I love that. It's great.
2:46
ISA as well for anyone in New Zealand, it's like the UK version of a high interest like savings account or you can also put money into stocks and shares.
2:54
It's basically just a different product name. So if you're not in the UK, don't worry about it.
2:58
Is that wrong?
3:00
Well, it's like some gray area with tax there but we'll go into that.
3:04
Oh Jesus.
3:06
You're just you turning into Vic in the whole like you're nearly there but not quiet.
3:10
It's just that that ISAs are a tax benefit that you can get access to in the UK that's not available in countries like New Zealand or Australia.
3:19
So it's important that we don't compare them to high interest savings account because high interest savings are taxed.
3:24
Okay, and yes, the best part of an ISA is that the interest that you earn basically up until a certain threshold, you're not getting taxed.
3:31
Which means you get more money essentially.
3:33
Yeah, yeah.
3:34
Before we get started on my own budgeting and money and how I've been this year, I would actually like to know how it's been for you.
3:41
How is your budget gone this year so far?
3:44
But you know what, I've lived a relatively boring life since Christmas because I was in New Zealand for about three weeks but I was working the whole time and sort of staying with a friend.
3:53
So I didn't really have many expenses other than contributing to food shopping.
3:58
And I had my car while I was there because I still hadn't sold that which I have now sold.
4:03
So technically I made money in January because I got a cash injection from my car sale.
4:08
Which by the way, I sold for a thousand less than I bought it for four years ago.
4:16
It's so good.
4:18
I spent January sort of treating myself to a couple of new clothes.
4:23
What did you get?
4:25
So I got a new pair of leather boots.
4:27
The cons just, they can't appear in every outfit, you know, it was really time.
4:32
Like, oh, you conned a sorry year's use.
4:35
Yeah, my chucks, sorry for Kiwis and Australians.
4:38
So I bought some new items of clothing as well.
4:41
So that's more than I would usually spend and more than I would usually budget for.
4:44
So I had to pull back in other areas.
4:46
So I didn't go out for dinners as much because I was spending more on clothes.
4:49
But other than that, investments are still the same.
4:52
I have got a plan to buy a house in the UK by the end of the year, which is super exciting.
4:57
Oh my god, that's epic.
4:59
Yes. And I've already seen some houses as well just to sort of make it feel a bit more real.
5:04
And that's always cool because then I can say great when I am putting something aside.
5:08
It feels like it's something more intentional than just investing for my future.
5:11
It feels like it's for a purchase that I'm going to make soon.
5:14
So it just keeps you going, you know, and you just need a bit of momentum after Christmas.
5:17
And you spent loads of money on gifts and travel to New Zealand or just bits that add up.
5:23
And you sort of think, oh, what am I doing towards putting towards anything that's for my future
5:28
that I can enjoy in the near term rather than just like, yes, I'm going to have a very successful retirement.
5:33
That's amazing. But what about the next five years?
5:35
Yeah, it's a really good point you make because I think, and we'll get to that in a second.
5:39
But I do think that the biggest motivator is having goals.
5:43
And it's so, it's kind of counterintuitive because on one side everyone just wants as much money as possible,
5:48
which means long term investing, which generally is for a retirement.
5:52
But what I found in the short term, things like building up my emergency fund,
5:57
has been such a dopamine hit for me.
6:00
And that's obviously like a short term goal.
6:03
But I know what you mean about having things that are, whether it's buying a house, whether it's,
6:08
I don't know, like something that's not just your 40 year plan,
6:12
but actually something that feels a little bit more tangible is like really validating.
6:17
Yeah, absolutely. And it's been such a long time since I had a short term goal.
6:21
With holidays, I've used a lot of my points that I get from using my credit card and paying it off every month.
6:29
And so I would use that for my whole flight.
6:31
So at last year, it paid for all of my flights to Europe and back.
6:34
So I didn't even have to save the money for that short term goal.
6:37
Can we do an episode on that?
6:39
I would love to know how to do that properly.
6:41
Because that's the main thing I blow out in when it comes to traveling.
6:45
And I want to be able to do trips.
6:47
I've started putting money aside, which you will have seen in my accounts.
6:50
But it always is more than that, always.
6:52
And it's expensive to do trips.
6:55
So if there's a way of like having your flights paid for, I'd be totally keen to hear that.
6:58
One thing that you mentioned is that you did, like not blow up,
7:01
but you spent more on clothes, therefore you pulled back on other things.
7:06
We've spoken before about how you plan in advance.
7:09
And you think about your things that you need.
7:13
It might be that you don't have a jumper, so you need a jumper.
7:16
But then obviously for the things you want,
7:19
as like you've already got jumpers, you're getting another one.
7:21
You don't need that.
7:22
Did you put your boots, all of that stuff?
7:26
Was that considered essential purchase?
7:28
Or...
7:29
I mean, I just don't think there's a world where I can say,
7:32
whether knee-hyboots are essential.
7:34
So no, in order to keep true to what I say, I did pull back in other areas,
7:37
because it was definitely a nice to have.
7:39
I'll wear them for years.
7:40
I'll have them for the next five or six years and take care of them,
7:43
but yeah, they're not essential.
7:44
Okay.
7:45
So before we keep going and before we get into like my money,
7:48
and like what I've been doing,
7:50
because we did a check in about a month ago.
7:52
And if you've missed that, maybe listen,
7:54
because we kind of did a real deep dive into what is budgeting and money management.
7:58
And what are the key principles?
8:00
And how should you feel?
8:01
And it was a really good episode.
8:03
So it was called budgeting 101 and how to split your pay.
8:06
Go back and listen to that if you haven't yet.
8:08
We're going to kind of pick up from where we were,
8:10
which is doing a...
8:12
Because for me, the idea of splitting my money into three buckets
8:16
is starting to make more sense.
8:18
As in essentials, the things that do not change your fixed expenses,
8:22
like the stuff that you know every month rent bills fixed costs.
8:28
Then you have your nice-to-haves or your non-essentials,
8:32
which is things you do not need to survive.
8:34
This is things like an Uber going out for dinner,
8:37
new leather boats.
8:38
Then you have your, you know, like sort of feature you fund,
8:41
which is your investments, your savings, your surplus.
8:46
Where I get really confused is a lot of my essentials.
8:50
For some reason happened to be essentials,
8:52
but they're not fixed costs.
8:54
So I think that's where I get a little bit like funny.
8:57
You know, for example, like the stuff that I've put in that bucket,
9:01
they're not all exact amounts that every month are the same
9:05
that come out like clockwork.
9:07
And this is what I was speaking to my friend about on the way to Ohio.
9:10
She was like, all my, you know, my essentials are
9:14
literally to a T. I know exactly how much comes out
9:17
and it just doesn't need to change, don't need to think about it.
9:20
I don't think I've quite got there yet,
9:22
and I'm not sure what I'm doing wrong.
9:24
You will get there in a second, but I think just the division
9:28
of what those costs should be is still not super clear.
9:32
Can you give me an example like groceries?
9:34
They are always a different amount.
9:36
I don't always find the exact same amount at the grocery store.
9:39
That's an example.
9:40
The, the way I do that is, so I set a fixed amount per month
9:45
on what I will be spending on groceries.
9:47
Again, it's not about rigidity,
9:49
it's about consistency, right?
9:51
So if you say to yourself,
9:53
I'm going to spend $800 a month on groceries in New Zealand,
9:58
£400 a month in the UK, which I think is quite realistic,
10:01
depending on whether it's for a two person household, maybe.
10:04
Then when you're going, it's about taking stock
10:07
while you're doing your grocery shopping
10:09
and figuring out what your basket's at while you're shopping.
10:12
Like that.
10:13
And I don't even consider that granular.
10:15
I think it's pretty normal if you're looking and you're sort of tracking as you go,
10:18
and you know you've got $200 to spend that week.
10:21
If you pick up something that you know is going to blow it out,
10:24
maybe that just means that you have to alleviate that somewhere else.
10:27
So really your food shopping should be coming in
10:30
at a pretty consistent number each month.
10:32
I think the nuance here for me is that I'm in New Zealand right now,
10:34
not in the UK.
10:36
So I'm not in my normal house situation where I cook.
10:39
Once a week for my flat, where I have my lunches,
10:42
you know, I'm with my parents.
10:44
So you know the other night I went to cook them a nice meal,
10:47
which by the way, the first time I had done it since I got there,
10:50
I was like, I'm such a shit daughter anyway.
10:53
I then bought, I spashed out and I thought,
10:55
I need to make this nice.
10:56
I want to buy a buffalo cheese.
10:58
So I bought a jar of $21.50 of buffalo cheese for the salad,
11:03
like outrageous, but I was just sort of like,
11:05
well, I'm not contributing to groceries in a normal way.
11:08
So I want to make this nice.
11:09
So I'm just finding it really hard to be like,
11:11
this is my consistency, this is my essential,
11:14
and this is the amount I have.
11:15
Do you know what I mean?
11:16
Like it's just a feel, and I was staying with a friend in Hawke's Bay
11:19
last week of the week before,
11:20
and I bought them a whole lot of groceries
11:23
because I was eating their food.
11:24
But again, it was just like, it wasn't a fixed cost.
11:27
It's not a normal amount.
11:28
But I guess it's just where you are in your journey, you know.
11:31
So the goal, long term, isn't to be checking every single dollar.
11:35
You know, you want that financial freedom and flexibility,
11:37
but that comes after doing the consistent routine for a long time.
11:41
So it just depends.
11:42
If you know that you've got a longer way to go on your journey
11:45
before you get to that place where you can pick something up in the store
11:48
and not have to triple check that you've got nothing in your bank account,
11:51
which I consider to be real financial freedom
11:53
and that really amazing piece of mind
11:55
that having your finances sort of gives you.
11:57
If you're there, then it's okay if you have them flow
12:00
because you're already further and far enough on your journey.
12:02
You know, whereas if you are starting out
12:04
and you're building up an emergency fund
12:06
and you're paying off debt,
12:07
it's just far more important that you have the consistency
12:10
until you reach the point where $10 up, $100 up, down.
12:15
It doesn't make or break it.
12:17
But for you, if you've got short-term goals
12:19
that you're working towards like a holiday or a new car,
12:22
then yeah, there should be more attention to detail.
12:26
I feel like the fun police with you sometimes.
12:28
So like you said, it's really fun stuff.
12:30
I swear I do have fun.
12:32
I think it's just I do want to be able to set and forget.
12:36
Like last time we spoke about money management,
12:38
you said it makes you feel really light all the time
12:41
and it's really stuck with me.
12:43
And I think that I want to feel that I do.
12:45
And I definitely feel so much lighter
12:48
and so much less financial anxiety than when I didn't know my numbers.
12:52
So like this has been a massive step up.
12:54
And I think it will be an evolution
12:58
as I become more confident with it,
13:00
as I'm more used to doing it.
13:02
I think there'll be times where maybe my income changes
13:05
so my budget has to change.
13:06
And like that doesn't scare me anymore.
13:08
But for where I am right now,
13:10
because I haven't had consistency,
13:12
I guess I'm struggling to get to a place where it feels.
13:15
Like I can remove the mental load that comes with it.
13:18
Yeah, but when you're out of your normal environment as well,
13:21
the fact that you're overseas right now
13:22
and you don't have the things
13:24
that you would normally have in your kitchen
13:26
to go to convenience tax is always a thing
13:29
when you're staying with someone else as well.
13:31
And you want to make a,
13:32
you want to make a meal for them,
13:33
but you actually have to buy three or four of the condiments,
13:35
which end up being more than a takeaway would cost.
13:38
You know, if you ever had,
13:39
you see that meme where it's like,
13:40
why, why buy a pad tie for $20 when I could make a really
13:43
$1 for $78?
13:44
Right.
13:46
What is that?
13:48
Yeah, the math is not mapping
13:49
when it comes to supermarket shopping at all.
13:52
You have to be cooking a bulk for it to make sense.
13:55
Yeah, you do.
13:56
You have to be cooking a bulk.
13:57
I mean, there's £7 sandwiches
13:59
downstairs at our office
14:00
will be the actual death of me.
14:02
The young, though, the tuna melts.
14:04
I know, but think about it.
14:06
That tuna is a pound at best.
14:09
$2.50 in New Zealand.
14:11
And that sandwich is the New Zealand equivalent of $15.
14:15
What?
14:16
Yeah, there you go.
14:17
You're like, just with the math is finally mapping.
14:20
But like then,
14:21
the alternative is with you going by a toasty machine.
14:23
So by a toasty machine,
14:25
£10, £20, done.
14:27
We talk about cost per wear all the time with clothing.
14:29
Cost per use is the same with appliances.
14:31
What I'm hearing is I have the budget for an air fryer.
14:35
I really want an air fryer too,
14:39
but I'm just worried that I'll get really obsessive about it
14:41
and then just talk about it all the last time,
14:43
like I do with money,
14:44
and that will make me an even worse dinner party guest.
14:46
And I would actually would be an air fryer chatter.
14:49
I can just imagine it.
14:50
I can actually see that.
14:52
Can we chat about, so at our event that we did a few weeks ago,
14:56
we had a couple of amazing guests that came on,
14:59
and one of them was Ash London,
15:01
who's this amazing media personality,
15:03
who's now an author,
15:04
and she's like a podcaster or a TV girl.
15:07
She's so cool,
15:08
and she's someone that's had a really interesting experience
15:11
with money and finances growing up.
15:14
And then we had someone that was really different,
15:16
Karen Walker, who's a New Zealand fashion icon,
15:19
an amazing business woman,
15:20
who's had a super successful brand.
15:22
And one of the things that Karen said was that
15:25
she encourages her daughter to put 25% of her pay
15:30
towards her investments,
15:31
or the future you, the surplus, the blah, blah, blah.
15:35
Which I loved.
15:36
And obviously her daughter's only 17.
15:38
She's not in a full-time job.
15:39
She's not paying for a lot of things.
15:41
So there's not a strategic reason for 25.
15:45
She just didn't want it to be so little
15:47
and made no difference.
15:48
And she didn't feel excited seeing the money compound
15:50
and too big that she resented it.
15:53
And I was like, cool, that makes sense.
15:55
My question to you would be right now,
15:57
the percentage that I am having as my surplus
16:00
is much closer to 10 than it would be 25.
16:04
Do I need to be having a look at my life
16:07
and what I'm considering, fun,
16:10
and pull back on that to increase my surplus?
16:13
Like, I don't know, where do you draw the line
16:15
between not having fun, but also being clever
16:18
while I don't have kids in a whole lot of dependence?
16:21
So this is different for everyone.
16:23
You know, the thing that I think is the common point
16:26
for everyone is the fact that more than 10% is the goal.
16:29
But what you pull back on is depending on what your values are.
16:32
So for me, I try and keep my fixed costs as low as possible.
16:36
I try and keep my essentials as low as possible.
16:38
So I've always had very cheap rent comparatively to my friends.
16:43
That's by design, until moving to London,
16:46
because that's a little bit more.
16:47
But I have a cheaper phone plan than most people I know,
16:49
and I have the same service.
16:50
You know, what you're paying for your phone plan in the UK.
16:53
So I think it's £40.
16:55
But I actually have a friend who works at Vodafone,
16:57
so she said she can get me 50% off,
16:59
which I thought was a total win.
17:02
Great, mine's £10 a month for unlimited.
17:04
What? Where the hell are you?
17:06
La Barra.
17:07
I'm never heard of it.
17:08
Yeah, so I think it uses the same master's EE, I don't know.
17:12
But the point is that is 25% of what you're paying.
17:17
And I'm still got unlimited data and everything that you've got.
17:21
So it's just about doing a bit of research
17:23
to keep those fixed costs as low as possible,
17:25
which kind of goes back to what we were saying in that first budgeting episode
17:28
of just not assuming that the rate you've got is the best.
17:32
With a bank, same thing with internet, same thing with phone bills.
17:36
There are always competitors out there.
17:38
So just making sure that you're doing that market research
17:40
and not spending more than you need to on things that they have.
17:43
They serve a single purpose,
17:45
having a more expensive phone plan doesn't make your phone better.
17:48
You know, internet is variable.
17:50
You don't want rubbish internet, but you can still get a pretty solid deal in the UK
17:54
if you just do a bit of research on it.
17:56
So for me, I always have low fixed expenses
18:00
because I do want to live in the moment to a certain degree,
18:03
contrary to how I found.
18:05
And I do want to be able to go on trips
18:08
and I do want to be able to pay for food for my friends and treat people I love.
18:13
So my fixed expenses are quite low.
18:16
My nights to have are still relatively low,
18:20
but they are what mean a lot to me.
18:22
So I don't have lots and lots of categories.
18:24
I have maybe three or four things that I spend money on each month,
18:27
but they're, they align with my values.
18:29
And then, I mean, I invest 55% of my pay every month, so.
18:33
I had no idea it was that high.
18:35
Honestly, it really blows my mind how you manage to do that.
18:39
And not, I don't mean that in a condescending way,
18:41
I hope it sounds like a compliment.
18:43
I just, because you're not stingy,
18:45
you buy nice things,
18:47
whether it's for yourself or for other people.
18:49
You don't live in the middle of nowhere,
18:52
from a rent perspective.
18:53
Like that kind of, I'm like, how are you doing that?
18:55
Yeah, it's just, it's just consistency.
18:58
And to be honest, I don't treat myself that much.
19:00
You know, the things that you see are aligned with my values
19:03
because I like to treat people.
19:28
I don't understand how you manage to buy nice things,
19:34
keep your life nice and tired,
19:36
not feel restricted,
19:38
and be investing that much.
19:40
It might be a good time for us to turn to your bank statement
19:43
that you have asked me to review,
19:46
because there are some answers in there.
19:49
Are they really?
19:50
Yes.
19:51
Well, I've got some questions, right?
19:53
So basically, so percently,
19:55
who?
19:56
Sophie sent me her bank statement without...
19:58
I've got some questions.
20:00
Any hat?
20:01
Any hat?
20:02
And I had a quick review.
20:04
Emily, I editor was watching me make curious noises
20:08
across the office me going, how much?
20:11
First of all, I want to say very good use of your pots.
20:15
Sophie's put her nice to have, her essentials,
20:18
and her surplus all away very nicely.
20:21
They are getting hit quite a lot,
20:23
but the right things are in there.
20:26
Define hit.
20:27
Just dipped into quite a lot,
20:29
which means that you're the nice to have that you're using.
20:32
You're like, you're a dopamine every day kind of girl, you know?
20:35
Am I?
20:36
Well, your bank statement suggests that you are, yeah.
20:39
I'm going to need some specifics.
20:41
Well, to be fair, I don't know whether you've encrypted this,
20:44
it would be smart if you had,
20:46
but a lot of them are nondescript amounts,
20:49
sorry, nondescript sort of transactions,
20:51
so I can't really tell.
20:52
Oh, what?
20:53
A lot of all-worth visits in there,
20:55
so that you're not doing a shop that you're doing,
20:58
like, I'm going to go in and buy this peanut butter,
21:00
and then I'm going to go in and, by the way, I forgot bread.
21:04
Sorry, can we just clarify what month are we looking at?
21:07
We are looking at January.
21:08
For example, on the 16th January,
21:10
transferred from your pot,
21:11
one, two, three, four, five, six, seven, eight, nine, ten times.
21:17
So this is a problem I have,
21:18
and maybe this is what's going on here,
21:20
is that sometimes I can't pay directly from my pot,
21:24
so I have to transfer the amount
21:26
that I'm going to spend on something
21:28
into my main account to spend it.
21:30
Well, you can never really pay from your pot
21:32
unless you've got a direct setup.
21:34
So that makes sense,
21:35
but what I'm saying is that means you're using
21:37
your nice-to-have fund quite frequently each day,
21:40
like, ten times and one day means that you had ten things
21:42
that you considered nice-to-have.
21:44
Okay, okay, I see what's happening here.
21:46
So, transferred a pot is automatic payments,
21:49
that when I money comes out on the 16th,
21:52
yes, oh my god, I remember it, Danny, you'll be so proud.
21:54
Okay, so on the 16th of every month,
21:57
the day after payday,
21:58
all my money gets transferred into different pots.
22:01
So the 132O,
22:04
that's my rent, going straight into my rent pot.
22:06
My 122 is going into my like cosmetics here,
22:10
minus 200 is going into my travel pot.
22:13
And all of those things,
22:15
all of the travel and the cosmetics
22:17
and all the stuff that's not actually essentials
22:19
is coming out of my total non-essential amount.
22:22
Yeah, that makes sense.
22:23
Yes.
22:24
So that's what I did.
22:25
So I was like, okay, so my total non-essentials
22:28
is like, I can't even remember off the top of my head what it is,
22:31
but then rather than having it all in my pot that I can see,
22:34
I wanted to like stagger
22:37
how much I was spending on travel,
22:39
on makeup, on hair,
22:40
all that kind of shit throughout the year.
22:42
So I didn't get to a point where it was like June
22:44
and I needed three new things of makeup
22:46
and I was going and spending 400 pounds.
22:48
So that's kind of why it looks like it should be.
22:50
Which is exactly how it should be, as well.
22:53
It means you have future planning.
22:55
Yeah, that's really good.
22:56
Okay, that makes it eyes honestly,
22:58
so gutted when you see that,
22:59
so I'll say,
23:00
I need to know where I've done that.
23:02
So yes, so all the transfer from pots is either,
23:05
me going to spend up that particular day
23:07
the reason there's so many is because it's all automatic.
23:10
Perfect, I'm afraid to tell you anything
23:12
that I do have to critique now at this point though.
23:14
No, no, no, you need to critique me, sorry.
23:16
I just wanted to be able to know that I was like,
23:18
actually understanding what you're talking about.
23:20
So hit me.
23:21
What are the things?
23:22
So do you know what the only other thing I have?
23:24
Because it was, it looked really good.
23:26
Honestly, no lie.
23:27
Question though.
23:29
We've got a rumble membership,
23:31
which is 179 pounds.
23:34
Really?
23:35
Yes, that's 179 that's coming out of your account every month.
23:38
We have a class pass membership,
23:40
45 pounds and we have a Soho House,
23:43
which I know you use the gymma,
23:45
which is 239 pounds.
23:48
So 464 pounds has been spent in the last sort of,
23:52
like, 30 days on exercise options in the UK
23:57
and you're in New Zealand.
23:59
Oh my God, I'm just like,
24:02
I don't believe you.
24:04
Are you sure that there's definitely a rumble
24:06
that's currently coming out?
24:08
Yes.
24:09
I canceled that month ago.
24:11
I was thinking I need to cancel my Soho House membership.
24:15
Yeah, definitely.
24:16
I'm going to keep class pass.
24:18
Yeah, but rumble is a total mistake
24:20
and I thought that I'd canceled that.
24:21
And I actually, do you know what?
24:22
That's a win because I have an email chain
24:24
of me confirming I wanted it canceled.
24:26
So they'll have to reimburse me.
24:28
Because I've not been once.
24:29
Like, it was definitely an actual,
24:31
I've had the conversation to cancel it.
24:33
So that's probably, that's probably like 600 pounds.
24:36
I'll get back, which is a win.
24:38
That's absolutely stunning news.
24:39
Thank you for taking that out.
24:40
No problem.
24:41
And that, I suppose,
24:42
is a tip for people.
24:43
Because it is so easy.
24:45
They all add up to even £5,
24:47
£5 payments on subscriptions
24:49
that you amass over the years.
24:51
So apps like the Emma app,
24:54
are really good.
24:55
They just sort of plug in to your phone
24:58
and it's, you know,
24:59
you can put your bank details and link everything
25:01
to your bank account,
25:03
and you can scan it all,
25:05
and find all of the duplicate payments that you make.
25:07
And some of those are, you know,
25:09
some people have got like an office Spotify,
25:11
where they've got a Spotify for themselves
25:13
and their partner,
25:14
whereas they could move to sort of Spotify duo
25:16
and save themselves a couple of,
25:18
like, maybe eight or nine dollars a month,
25:20
which obviously adds up to,
25:21
probably enough to have like a lunch in a year's time,
25:25
or something like that.
25:26
But you want to just kind of comb through
25:28
what you're spending and make sure that over time
25:30
things that do the same things, you know.
25:32
Were there any other overarching thoughts you had on,
25:34
like, you're spending too much
25:36
and you're nice to have part,
25:38
or, you know, like,
25:39
was there anything else that you saw
25:41
and you were like,
25:42
okay, she's being extreme?
25:43
No, I'm honestly not.
25:44
I can't see what you're putting towards investments
25:46
and such like that,
25:47
because I couldn't see the names of the pots,
25:49
but everything looks pretty good.
25:51
And the fact that you've got it set up
25:53
and automated feels like it's the first,
25:55
not the first step,
25:57
that you're well on your way
25:58
to the process and it being a regular thing.
26:01
I think I'm putting about 15%
26:03
of my salary into my emergency fund at the moment.
26:07
Great.
26:08
So if you wanted to put 20% in as the goal,
26:11
then it's just about making tweaks
26:13
in the next couple of months.
26:14
It doesn't have to be immediate.
26:15
Just make small changes, you know, over time.
26:17
And then it will even
26:19
canceling Rumble and making sure
26:21
that that's cancelled,
26:22
canceling your Soho House membership.
26:24
That is enough there to be put in.
26:26
That's heaps to be put into your investment accounts
26:29
and your short-term goals.
26:30
And then you might quickly find
26:32
that a couple of things,
26:33
maybe a subscription here
26:34
and a membership here.
26:36
And you've gone up to 22%.
26:38
Yeah. My Soho House membership
26:40
absolutely got to go.
26:41
Got to go.
26:42
I thought of canceling it last month
26:43
because I was going to be using it
26:44
because I'm away.
26:45
But they get you with the wait less time.
26:47
They're like, well,
26:48
there's 15,000 people on the wait less,
26:49
so good luck getting back in.
26:51
I'm like,
26:52
okay, so one more thing I wanted to talk about,
26:54
Danny, is my interest that I'm getting
26:57
and my high interest savings accounts.
26:59
Yes.
27:00
In my high interest savings accounts,
27:02
I have money for any kind of cosmetarchy stuff
27:05
that doesn't happen regularly.
27:06
It's like once or twice a year I get my hair done.
27:08
So things like that,
27:09
I didn't want to just sit in my transaction accounts
27:12
or my nice to have non-essential account
27:15
because I knew I just spend it.
27:16
So I've put them in separate
27:18
high interest savings accounts.
27:19
So I've got one for that.
27:21
I've got one for travel,
27:23
which again, I don't dip into very often,
27:25
and then I've got my main saving and investing.
27:27
Pa?
27:28
Mm-hmm.
27:29
They're not getting that much interest.
27:32
I was feeling a bit disheartened by the amount in them
27:35
if I'm being totally honest.
27:36
Can we just talk about the difference between
27:39
because some people might be thinking,
27:41
well, where are your investments?
27:43
Right now, I'm not investing.
27:44
Actually, that's not true.
27:46
I put a little bit in the video,
27:48
like last week or the week before,
27:49
but it was an amount that I'd airmarked
27:51
for my emergency fund,
27:53
and I just decided I'd rather put it there.
27:55
I know it's not like, whatever.
27:57
Anyway, point is, I plan to,
27:59
as soon as I hit my goal for my emergency fund,
28:01
but at the moment,
28:03
I'm really focusing on those short-term wins
28:06
and where that money should be
28:08
and how I should be making sure
28:10
that I'm getting the most from it.
28:12
And I can't help but think,
28:14
should I just be putting that in the stock market
28:16
or in like some lower returning
28:18
other things that aren't just savings?
28:20
It feels kind of a bit blurred
28:22
have less than 4% on that as a return.
28:25
Yeah, I mean, the thing is though,
28:27
if you put it anywhere else,
28:28
the risk is too high,
28:29
because if you're investing money
28:31
to redo your kitchen in two years,
28:33
then we really need to exercise caution, right?
28:36
Because the stock market is amazing,
28:38
but if it has a bad year,
28:40
which is very possible,
28:42
then you won't have enough to recover from that loss
28:44
as quickly as you need it,
28:45
which if you need it soon
28:47
because you need to go on holiday
28:49
with that,
28:50
and then you can't go on holiday,
28:51
you won't be able to afford that holiday
28:53
for whatever reason.
28:54
Then, you know,
28:55
you need to mitigate that risk by saying,
28:57
okay, well,
28:58
I need this money in the short-term.
28:59
Therefore, I cannot afford
29:01
the risk that we all know exists in the stock market,
29:04
even though statistically over time,
29:06
we know that history tells us
29:08
we'll be much better off having in the stock market.
29:10
There's something I need in 12 months' time.
29:12
It shouldn't be anywhere near the stock market.
29:14
And we want to put it in an account
29:16
that's working hard for us,
29:17
which is a very, very low-risk,
29:19
high interest savings account.
29:20
So, I know it feels as though
29:22
I know that there are nine,
29:24
10% gains to be had in the investment market,
29:26
but the security that you need
29:29
from that immediate fund needs to be prioritised more,
29:32
then just sort of chasing that potential high,
29:34
because then you're going really into
29:36
sort of day trading territory.
29:38
I'm looking.
29:39
I'm not one that has a particularly regulated
29:41
dopamine addiction.
29:42
So, should we perhaps talk more about
29:45
short-term goals where we put them,
29:47
how we write them down, how we approach them,
29:49
because I think that there'll be a lot of people
29:51
that are like, cool, I am going to go
29:53
and join the Investing Club.
29:54
I'm going to get access to the Curve Investing course.
29:57
I'm going to learn about splitting my pay,
29:59
putting my money in buckets,
30:00
because that is exactly what we've been talking about right now.
30:02
If you want that in more detail,
30:03
it's in the Investing Club.
30:04
You get the cost for free when you join.
30:06
The other thing that we do talk about in that course
30:09
is short-term goals,
30:10
but I would just love to touch on it now,
30:12
because there'll be people
30:13
who already have that stuff sorted,
30:15
and we'll find this really, really helpful.
30:17
So, let's just quickly define
30:19
a short-term money goal as what?
30:22
A short-term goal is money that you need back
30:26
within a one to five-year period.
30:28
You don't need to access it every day,
30:31
but it does need to be slowly growing
30:34
with lower risk,
30:36
because you might need to pull that out
30:38
in six months' time or a year's time
30:40
or it might be for something
30:41
that you're building up
30:42
for something you need in sort of two years' time.
30:44
That is a short-term financial goal.
30:47
So, my short-term financial goals right now
30:49
are I've got a wedding in August.
30:51
I'm going to put school for that.
30:52
I need to save enough for my accommodation,
30:54
my flights,
30:56
a wedding present.
30:57
That's a short-term goal for me.
30:59
Another short-term goal for me is a trip
31:01
with my mum and my sister,
31:02
hopefully, to Europe.
31:04
I need to be able to pay for a third of that trip.
31:07
That's a short-term goal.
31:08
That's a short-term goal,
31:09
but also people who are saving for a house deposit
31:12
if they want to buy in the next year
31:15
that has now become a short-term goal.
31:18
So, for example, if you were putting your house deposit
31:20
and you were thinking,
31:21
I'm actually going to start looking in the next six months,
31:24
then your house deposit theoretically
31:25
shouldn't be in the stock market anymore,
31:27
because all it would take is a downturn
31:30
and you have much less deposit than you currently have.
31:32
So, when you're looking for something
31:34
that is in your immediate future of purchasing,
31:37
you would take that investment and say,
31:39
great, that has gone from a long-term investment
31:41
now to a short-term,
31:42
and I need to put it somewhere safer,
31:44
so I can measure that risk
31:46
while I'm looking at houses to purchase.
31:48
And what about riding them down,
31:51
sledge figuring out how much we need?
31:54
So, I mean, like, a house deposit,
31:57
most people who are looking for a house
31:59
are aware of how much they need blah, blah, blah.
32:01
Let's just use the August Portugal wedding,
32:05
which, wow, that makes me sound so privileged, doesn't it?
32:08
So, I'm going to Portugal for one of my best friends' weddings
32:11
in August.
32:12
I'm a bridesmaid, I have to pay for quite a bit.
32:15
Not only do I have the wedding,
32:16
but I also have the hens do that I need to be saving for,
32:20
so I need to figure out really how much I need,
32:22
and I've just been putting,
32:24
I've been lumping this in my travel amount.
32:27
When really, I probably need to separate it out
32:30
as an actual goal and figure out exactly how much I need,
32:33
rather than just going,
32:34
I'm going to put 200 of my pay every month towards that.
32:37
It's like, so how would I go about doing that?
32:39
Well, so you would have your goal in August,
32:42
you'd have your final amount,
32:44
so say it's 3,000 pounds that you need to save before August,
32:48
and then you get the number of months,
32:50
so you've got March, April, May, June, July,
32:53
you've got five months,
32:54
and then you would take that 3,000 and divide that by five,
32:57
and that's how much you need to save every month
32:58
to get to your short-term goal in time.
33:00
And so that would then mean if I look at there,
33:02
and I'm like, oh, good Lord,
33:04
which I am currently thinking,
33:06
what I would be needing to do is probably
33:08
pull money out of my long-term money goals,
33:11
i.e. my surplus,
33:13
to redistribute to a short-term goal in the interim,
33:17
to hit that goal,
33:18
and then I could readjust back towards putting
33:20
all of that towards my long-term investments.
33:23
Yes, or you could shave off a bit either side,
33:26
so you could shave off a little bit of your nice-to-haves,
33:28
and then shave off a little bit of your long-term surplus,
33:32
as well, so if you've got investments
33:34
that are automatically going out every single month,
33:36
and there are 1,000 pounds,
33:37
maybe that becomes 800,
33:39
but similarly, if you've got 1,000 pounds
33:42
going to your nice-to-haves,
33:43
maybe that becomes 700,
33:45
and then all of a sudden you've got
33:47
probably the amount you need
33:48
without having to take all of it from one pot.
33:51
It's so annoying that I don't have all the money
33:55
in the world that I need.
33:56
It's so annoying because you have to constantly prioritise,
33:58
you have to think,
33:59
what do I really, really want?
34:01
And I know it's a good thing
34:02
because it makes you sit and be conscious
34:04
about where your money is going,
34:06
but I do think it's so frustrating sometimes
34:09
because you're like,
34:10
okay, well, if I do this,
34:11
I can't have that.
34:12
You do have to actually spend time with yourself
34:14
to really know what you want.
34:16
Otherwise, you just get to the end of the year
34:18
and you've spent money on things
34:19
that you don't maybe want the most.
34:21
And there is only so much to go around.
34:23
I mean, yes,
34:24
but I also think that mindfulness
34:26
and financial literacy is a privilege,
34:28
and I think that us having that ability
34:30
to sit there and really think about what we want
34:33
and make plans towards our future
34:35
is a really great thing.
34:36
So it is annoying,
34:37
but it's really empowering.
34:39
I know, I'm being a Brit.
34:40
I think it's just,
34:41
I think it's just I want so many things I want
34:43
to be able to do so many things
34:44
and I actually just have to be an adult about it
34:46
and be like, well,
34:47
you can't.
34:48
So choose what you want the most.
34:50
And I just think, yeah, yeah.
34:51
It is really empowering in a lot of ways
34:53
and I think for me,
34:54
with having the pot and having my like,
34:56
nice to have money,
34:57
it has been so amazing to see myself make decisions
35:00
on things.
35:02
And really have to ask myself, okay,
35:04
well, like, do you want this top
35:06
or do you want to go away with your forensics weekend?
35:08
You know, and it's,
35:09
but it's such a,
35:10
it's just a foreign concept
35:11
when you've never had to have those conversations
35:13
with yourself before
35:14
because you've just always either been
35:15
in financial stress or splurging or whatever.
35:18
It's just a totally different mindset shift
35:20
that you have to get used to.
35:22
And I do,
35:23
I'm proud of how far I've come,
35:25
but sometimes when I'm like,
35:27
you know, I sort of feel like,
35:28
cool, I've got it sorted
35:29
and then I have a short term money girl come along
35:31
and it throws everything out of whack.
35:33
I find it just stresses me out a bit.
35:35
Yeah, I mean,
35:36
it's just a birth,
35:37
keeping track of it, isn't it?
35:38
I think holidays stress a lot of people out,
35:40
particularly when they're saving for weddings
35:43
and hen's days,
35:44
hen's days will bankrupt the best of us.
35:46
Seriously, guys, can we please redo this?
35:49
I mean,
35:50
if I ever get married again,
35:52
can I just have...
35:54
Can I just have a picnic somewhere
35:58
and everyone just brings a plate?
36:00
Like, honestly, that's my journey with it.
36:02
But I love that. Me too.
36:03
So this is actually a really good example
36:05
of like short term money goals
36:06
and something I was super proud of.
36:08
I had a friend that I was catching up with last weekend.
36:11
And originally,
36:12
the plan was we were going to go out for lunch.
36:14
There was three of us.
36:15
We were going to go to a venue on Wihiki,
36:16
which is a theory,
36:17
plus the lunch,
36:19
plus that, you know,
36:21
like it was going to be an expensive day
36:22
and she's pregnant with a second baby.
36:24
She's just bought a house,
36:25
and they're on a really tight budget.
36:27
And she said to me,
36:28
she was like,
36:29
she sent a voice note to the group
36:30
and she said,
36:31
I think you'll appreciate this.
36:32
Like, I'm on, you know, like a...
36:34
Because I'd suggested going
36:35
to a different restaurant
36:36
than we had originally planned.
36:38
And she was like,
36:39
oh, the reason I chose that
36:40
is because there's a set menu
36:41
and I know exactly how much it's going to be.
36:43
And I'm like, having to be quick.
36:44
And I just thought,
36:45
let's just get a picnic at the beach.
36:48
Like, I don't...
36:49
We don't need to make this a stress.
36:50
I love having a picnic at the beach.
36:52
In fact, I enjoy it more
36:54
than I do go into a nice place.
36:55
Let's do that.
36:56
And everyone was relieved by it.
36:57
And I just think, you know,
36:58
it's like,
36:59
but if she hadn't known,
37:00
she knew her numbers.
37:01
She had her budget.
37:02
She knew what she was spending.
37:04
It's just that constant sliding.
37:06
You can't communicate with the people
37:07
you love properly.
37:08
Because you're...
37:09
Do you know what I mean?
37:10
Like, I just think it was such a good example
37:11
of knowing your goals
37:12
and knowing your budgets.
37:13
Yeah, I mean weddings are a whole,
37:15
like, pretty problematic in that way anyway.
37:17
But I think that's...
37:18
That's where, as humans,
37:20
we confuse, like,
37:21
spending money with treating ourselves
37:23
and having a good time.
37:25
It's like, it's not the same thing.
37:27
Like, you know what I mean?
37:28
Like, that feeling of,
37:29
I'm...
37:30
This is a special occasion,
37:31
therefore it needs to cost me money, you know?
37:33
Because, yeah, arguably,
37:34
having friends over for, like, a dinner party
37:36
at your house,
37:37
particularly in your 30s,
37:38
becomes a real vibe.
37:39
Love it.
37:40
Okay.
37:41
Let's move on to
37:42
where should we be keeping our money
37:44
for any short-term goals?
37:46
Whether it is the hints do,
37:48
or whatever your thing is.
37:50
So, term deposits
37:53
are a really good way
37:56
of keeping your money growing
37:58
in a slightly higher interest rate
38:00
than a high interest savings account.
38:03
But it means that you've usually locked there
38:05
for a period of time.
38:06
Now, you can choose term deposits
38:08
that are 30 days, 60 days, 90 days,
38:10
12 months, 18 months.
38:12
When we put our money in term deposits,
38:15
they're locked away
38:16
and the bank holds them.
38:18
They give us money back for saying,
38:20
great, well, thanks for giving us your money.
38:22
We're going to give you 3% return on your investment
38:24
whilst we hold this.
38:26
And what they do with that money
38:28
is they then loan it out
38:29
to other customers at that bank.
38:31
And that could be for any amount of loan
38:33
or any type of loan.
38:34
So, somebody could be using that money
38:36
for a personal loan,
38:37
which is a car loan,
38:39
or they're doing house renovations,
38:41
and that might cost 12% interest,
38:44
which means that the bank has already immediately made
38:48
a big chunk of return
38:50
just by taking your money,
38:52
giving it to someone else
38:53
and saying, cool, we'll give you this money,
38:55
but it's going to cost you.
38:56
Whereas you're getting the benefit of it
38:58
by giving the bank your money.
39:00
Yeah, I think term deposits are an interesting one
39:02
because you just use the example of say 4%
39:05
for 180 days, like six months.
39:08
You get the same amount in generally
39:10
at the moment,
39:11
and like a high interest,
39:12
I do, I get 3.9% in my high interest savings account.
39:15
So, for the excess of being able to pull something out
39:18
within two days,
39:19
versus six months,
39:21
0.2% makes no difference to me.
39:24
So, in what situation would a term deposit
39:27
make more sense
39:28
than a high interest savings account?
39:30
Well, it's about the amount
39:31
that you're putting away as well, right?
39:32
So, if you've got two grand in a high interest savings,
39:34
then you're right,
39:35
you're not going to be seeing much of a difference
39:38
with 0.02%.
39:41
But if you're putting 15 grand away or 10 grand away,
39:44
then it starts to really impact.
39:46
And also, if you're referring to Monzo,
39:48
then they're about to drop their rate again to 3.3%.
39:51
So, I need to be swapping.
39:53
Okay, good to know.
39:54
I like the idea of term deposit.
39:56
I just don't understand
39:57
where I would ever not have it in a longer,
40:00
like, investments in the stock market.
40:03
First, generally, I probably need it
40:05
in the next six months or whatever.
40:07
So, I'll be spending it.
40:09
I can't think of an example for myself
40:11
when a term deposit would make sense,
40:13
because let's use buying a house as an example.
40:15
That's quite a large amount of money
40:17
that I'll need to pull out of the stock market.
40:18
And I have my account just been
40:20
for when I find the right house.
40:21
This is assuming that I'm able to buy a house.
40:23
Then, if I think about that,
40:25
I might not know when the house is going to become available.
40:28
So, the perfect one might be two months away,
40:30
not six.
40:31
And I need that money sooner.
40:32
So, I don't know.
40:34
Have you ever used it long,
40:35
like, a term deposit and it's actually made sense?
40:37
I've got money in a term deposit at the moment.
40:39
Why is it there?
40:40
It's simply because I didn't want to put more
40:42
into the stock market yet.
40:44
But I wanted it to be making money for me.
40:47
So, it's sitting there gaining interest
40:51
until the matures.
40:53
I only put it in for sort of like, I think it was 180 days,
40:56
because I wasn't ready to contribute more
40:59
to my investments at that time,
41:01
because I had already done quite a lot that year.
41:03
And it felt good to have that there in case I needed it
41:06
for anything else after that time.
41:08
Because once I put it in the stock market,
41:10
I don't plan on pulling it out.
41:11
Right?
41:12
So, to me, that's sort of when I put it in there,
41:14
goodbye, for 15 years,
41:17
whereas when it's in a term deposit for me,
41:19
it feels like, great, I will be able to access this money again
41:22
in six months if I need it.
41:23
I'm planning on buying a house later on this year.
41:25
So, the majority of my house deposit
41:27
is in a term deposit at the moment.
41:29
So, that if anything does massively change in the stock market,
41:32
it's not going to impact my borrowing ability,
41:34
because it won't go up and down sort of maybe eight or nine percent.
41:38
Okay, genius, that makes a lot of sense.
41:40
But the thing is with term deposits,
41:43
obviously, those rates are dropping, you know, two years ago,
41:46
you could get a term deposit for sort of six percent,
41:48
whereas now it's a lot lower.
41:51
In the UK, I was doing some research on this,
41:53
and 37% of people who are 55 and older
41:57
haven't switched their high interest savings account,
42:01
or a term deposit account for at least five years.
42:05
And that means that the majority of them
42:07
are on about 2.2% of high interest savings accounts,
42:11
rather than the 5% that is available in the UK
42:16
and also in New Zealand as well.
42:18
I mean, basically, I want to talk about now
42:21
the not necessarily the banks,
42:24
but the rates that are available versus what they were,
42:27
because say, I think it plays older people more,
42:33
because like we said in the last episode of Budgeting 101,
42:36
if you get complacent and you sit and forget
42:38
and you stay with the same bank,
42:40
you just kind of think that's the rate that everyone's getting,
42:42
whereas for older people who have got loads more money
42:45
in their account than an average 25-year-old,
42:47
keeping your money in an account that's only 2.5% interest
42:51
instead of the 5% that you can get at really competitive rates.
42:54
Well, they might have hundreds of thousands of dollars in their account.
42:57
They've been saving money for their whole life.
42:59
That could be the difference between 7 or 8,000 pounds a year
43:03
just by switching banks for them, which is a car.
43:06
That is a car a year that they're not able to access.
43:09
It's a European holiday for two months.
43:11
It's three months of rent for a two-bedroom family home
43:15
just because they're not swapping their interest
43:18
from the bank they've always been with to a competitor
43:21
that is just as safe, but hasn't got their custom yet.
43:25
Like, it's just wild.
43:26
It's wild what you can get when you do the research.
43:28
There's a business idea here, like some kind of product
43:31
because I have no interest in doing that research,
43:33
but you, however, very bloody good at it.
43:35
But imagine if you, you know, as a part of your club membership
43:38
in the curve, you could get notified
43:41
where the best deals are for those things, like how amazing.
43:44
We'll work on that offline.
43:45
Exactly. Well, I mean, in Kiwi Bank, for example,
43:49
they have a 4.1 notice saver at the moment, right?
43:52
So that's like an in-between, like, in-between
43:54
that term deposit and that high interest savings account.
43:56
You have to give them 90 days notice.
43:58
That's really common as well. 90 days notice to pull anything out.
44:01
So that might be a really good place for you to put a has deposit.
44:04
You know, where you were thinking, okay, great.
44:06
Well, I can access that, and it's not locked away for 180 days,
44:10
and it gives you a little bit more flexibility, but a pretty good rate.
44:13
And then there's places like ASB that have got 5% total interest rate at the moment.
44:18
And they do this thing where the base rate is 2.5% interest.
44:22
But if you don't touch it throughout that month,
44:25
it goes up to 5% interest.
44:27
So they're basically-
44:28
That's cool.
44:29
Yeah, they're rewarding you for keeping in and not touching it.
44:31
They're saying, okay, it was 2.5, but if you don't touch it,
44:33
it's like the marshmallow experiment.
44:35
So if you can do that.
44:36
One marshmallow, but if you wait all month,
44:38
we'll give you an extra 2.5%.
44:40
And that makes a massive difference
44:42
when you're saving things over time.
44:44
Okay, cool.
44:45
I feel like I'm going to-
44:46
I've got some money that I need to move,
44:48
and that those are two very hot tips.
44:50
Thank you.
44:51
I think my immediate to-do list from this conversation
44:54
is to cancel my Soho house,
44:58
get in touch with Rumble and get a reimbursement,
45:00
and I'm going to move my house deposit money.
45:03
And two, I think the-
45:05
I like the idea of the ASB one, the 5%.
45:08
And-
45:09
But, you know, have to leave it for a month before I get 5%.
45:12
But those are such good, easy things that I can do.
45:16
Mm-hmm.
45:17
Yeah, and they make a real big difference as well.
45:19
And-
45:20
And then the next thing that you need to do is
45:22
find the amount that you need for that European wedding
45:25
that you're going to,
45:27
and then take the months,
45:28
and then divide the amount by the months
45:30
so that you know what you need to be putting away each-
45:32
each month to get to that goal.
45:34
And then just shift the surplus
45:36
and the nice to have the little bit
45:38
to make sure that you have room to do that.
45:39
There is no way you can budget,
45:41
well, or be good with your money,
45:43
if you do not spend time doing it.
45:46
Like, there is no two ways about it,
45:48
I think, like when I hear you say that,
45:50
my brain goes,
45:51
so much works, so much admin,
45:53
oh my god, but actually,
45:54
it's like, get over yourself, Sophie,
45:56
if that's what you want,
45:57
and you want to be good with your money,
45:59
it just has to be a normal thing
46:01
that every month you spend time with yourself,
46:03
looking at your budgets, reassessing,
46:05
like, wait up.
46:06
Is it worth it to you to reach your goals?
46:09
Or not?
46:10
Well, also over your admin.
46:12
Future Sophie is going to be sat in Italy
46:14
with an apparel spritz in her hand.
46:16
Pretty smug.
46:18
That she's done the calculations.
46:20
Yeah.
46:21
Yeah.
46:22
I mean, even now I feel so much better about it.
46:25
And I'm like, actually,
46:26
I think I sent Vic something,
46:27
a screenshot of something,
46:29
and it had my pots as well.
46:31
And no joke, she said,
46:33
I think you're better with your money already
46:35
than I am on budget.
46:36
Like, I look, she was like, I'm so impressed.
46:38
Oh, really?
46:39
So impressed, yeah.
46:40
And I was like, that's my major win.
46:42
So that's my major win.
46:43
I know.
46:44
And when you started getting at me
46:46
for the sixth, sixth of January,
46:47
that's why I was quite defensive.
46:49
So I'm sorry about that.
46:50
But I think it's quite difficult.
46:51
I'm putting...
46:52
You got closer to the camera, I could take it.
46:54
I know, sorry.
46:56
I was just like, well, because I think,
46:58
and the thing is, I'm fine with learning
47:00
and doing it wrong.
47:01
And I actually do want to be told,
47:03
because that's amazing,
47:04
then it means I can like iterate and iterate.
47:06
But also, I think what this second kind of,
47:10
like, budgeting 101 conversation
47:12
has made me realize is like,
47:14
whilst yes, you can have your set and forget
47:16
and you can totally do that.
47:18
And really, for a lot of it, it should be
47:20
lightning the load, making you feel really like automators.
47:24
It's just a fact,
47:26
and a part of life,
47:27
if you want to be good with your finances,
47:28
that you have to be constantly checking up with them.
47:30
And maybe it's just a date night
47:32
with yourself once a month.
47:33
But that's just part of it.
47:35
Because when I keep hearing you say,
47:36
do this, do this.
47:37
I'm like,
47:38
No, I know about it.
47:39
But remember, it's not coming from a place of high and mighty.
47:41
I bought a £7 sandwich today.
47:43
Like, let's just be aware that I also make massive financial mistakes
47:50
when I have lunch in my bag.
47:53
Yeah.
47:54
I mean, the tuna malt is quite good.
47:56
But we don't need to be paying for it.
47:58
We don't.
47:59
Maybe we, what we do, Danny,
48:00
is we join forces on our short-term goals.
48:02
And we share a sandwich maker
48:05
and buy it for the office, you know?
48:07
We make a joint investment in an appliance
48:09
that makes our lunch cheaper.
48:11
Commitment.
48:12
I'm ready for it.
48:13
Yeah, let's do it.
48:14
Same. Same.
48:15
Okay, great.
48:16
Thank you for coming through my accounts.
48:18
Thank you for today.
48:19
And if anyone wants to learn more
48:21
about what we've just spoken about
48:22
or really like,
48:23
sort this out for yourself,
48:24
then best in club,
48:25
join it,
48:26
you get the investing course for free.
48:27
It has all of this stuff involved
48:29
and then obviously you just get access
48:31
to all of our amazing investment ideas
48:33
and stockpicks
48:34
and all the other insights
48:35
that Vic puts into the club.
48:37
And other than that,
48:39
I feel like we've nailed it.
48:41
I love that episode.
48:42
Thank you, Danny.
48:43
You are so welcome.
48:44
I'm going to go and buy another
48:46
seven pounds sandwich to eat for dinner tonight.
48:48
Send me links to presses.
48:49
We'll buy one ASAP.
48:51
Okay, it needs to happen tonight.
48:53
Thank you so much for listening to Raising the Curve.
48:56
These conversations are designed to teach you
48:58
everything you need to know
48:59
to be better with your money,
49:00
from saving, to investing,
49:01
to talking with your friends
49:02
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49:03
or that stuff.
49:04
And if you like what you've heard,
49:05
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49:07
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49:08
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49:09
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49:10
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49:11
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49:13
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49:15
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49:16
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49:17
So please do it.
49:18
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49:19
Bye.
49:20
Okay, quickly,
49:21
the curve was created to empower
49:22
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49:23
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49:25
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49:26
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49:28
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49:29
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49:31
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49:33
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49:35
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49:37
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49:40
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49:41
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49:42
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49:44
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49:45
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49:46
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