Latest / She's On The Money / Who you gonna call? (MONEY) MythBusters!

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Who you gonna call? (MONEY) MythBusters! · She's On The Money

• 0:00
  Speaker 1: She's on the Money. She's on the Money. Hello, and
• 0:13
  Speaker 1: welcome to MythBusters. Nah, just kidding, She's on the Money.
• 0:16
  Speaker 2: The podcast for millennials who want financial freedom. Today's show
• 0:20
  Speaker 2: is brought to you by Up, the Digital bank, designed
• 0:22
  Speaker 2: to help you organize your money and simplify your life.
• 0:25
  Speaker 2: My name is Georgia King, a twenty five year old
• 0:27
  Speaker 2: who is okay with money, but still has heaps to learn. Luckily,
• 0:31
  Speaker 2: I am joined as always by my friend and millennial
• 0:33
  Speaker 2: money expert Victoria to Fine.
• 0:35
  Speaker 1: Hello, Fie Hi.
• 0:36
  Speaker 2: Now, today's show is going to be a little bit of.
• 0:38
  Speaker 1: A fun one.
• 0:39
  Speaker 2: Victoria and I are going to be assuming the roles
• 0:42
  Speaker 2: of Mythbuster's own Adam and Jamie James.
• 0:46
  Speaker 1: I'm Adam, just spelling.
• 0:47
  Speaker 2: A myriad of myths in relation to the world of
• 0:49
  Speaker 2: financial investments. While believing in investing, myths may not physically
• 0:54
  Speaker 2: damage you, like dipping your hand into molten leadwood, just
• 0:57
  Speaker 2: like on MythBusters episode one hundred and thirty six in
• 1:00
  Speaker 2: two thousand and three, it will likely cause significant financial
• 1:03
  Speaker 2: damage to you. Before we get there, though, Let's rain
• 1:07
  Speaker 2: in the excitement and chat money, wins and confessions.
• 1:10
  Speaker 1: Victoria, define, how did you go this week like I.
• 1:12
  Speaker 2: Went it really Wow, she took me through.
• 1:15
  Speaker 3: So this is a pretty good money win, although it
• 1:18
  Speaker 3: could be considered a money loss. Okay, we the she's
• 1:22
  Speaker 3: on the money office has recently moved to a different location,
• 1:25
  Speaker 3: which is great fun times. Moving is always you know,
• 1:29
  Speaker 3: love moving, just getting your stuff, having to unpack, having
• 1:32
  Speaker 3: to repack.
• 1:33
  Speaker 1: It's not exhausting at all. A dream, no, no, no,
• 1:35
  Speaker 1: it's been really energy lessure.
• 1:38
  Speaker 3: We've recently moved and in my old office I had
• 1:41
  Speaker 3: a car park. In the new office, I do.
• 1:44
  Speaker 1: Not have a car park.
• 1:46
  Speaker 3: So my money win is that I now am catching
• 1:48
  Speaker 3: the train to work each day on you. Yes, because
• 1:52
  Speaker 3: parking in the CBD if you get early bird is
• 1:54
  Speaker 3: like twenty five dollars a day. But I drive around
• 1:58
  Speaker 3: the city a lot. I drive out to closence. I'm
• 2:00
  Speaker 3: a financial advisor, I'm.
• 2:01
  Speaker 1: On the road around.
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  Speaker 3: It ends up being eighty or ninety dollars a day
• 2:05
  Speaker 3: for parking if I do that. Because you don't get
• 2:08
  Speaker 3: early bird if you come and go from the last
• 2:11
  Speaker 3: so train it is here. We are money win because
• 2:14
  Speaker 3: I think cashing the train is.
• 2:15
  Speaker 1: Obviously cheaper way to get around.
• 2:17
  Speaker 3: Yeah, it's a cheaper way to get around, but maybe
• 2:19
  Speaker 3: money loss because I no longer have a car park
• 2:22
  Speaker 3: of my own.
• 2:23
  Speaker 1: Okay, sure, double whammy.
• 2:25
  Speaker 3: I'll give it to Will you accept it?
• 2:27
  Speaker 1: I'll accept it.
• 2:28
  Speaker 3: Do you have a money win, money loss or a
• 2:30
  Speaker 3: combo for us this week? Gking Okay, it's kind of
• 2:33
  Speaker 3: a combo. It's mainly a confession.
• 2:35
  Speaker 1: You guys.
• 2:35
  Speaker 2: May notice my voice is a little bit husky this
• 2:37
  Speaker 2: week because I did go to a music festival on
• 2:39
  Speaker 2: the weekend, Golden Plains in regional Victoria. Shout out, guys,
• 2:42
  Speaker 2: it was amazing, but shtag not sponsors with George with
• 2:45
  Speaker 2: the Fat. Yes, I really would. Yeah, it was amazing weekend.
• 2:48
  Speaker 2: But as festivals always do, it added up. You got
• 2:51
  Speaker 2: the cost of the ticket, your alcohol, your outfits, all
• 2:54
  Speaker 2: of the things. I don't regret it, but you know,
• 2:57
  Speaker 2: it's forty eight hours of fun.
• 2:59
  Speaker 3: Are you a wild fest will go with though, like,
• 3:00
  Speaker 3: are you going all out with your outfits or are
• 3:03
  Speaker 3: you just more low.
• 3:03
  Speaker 1: Key not extreme? I'm low key.
• 3:05
  Speaker 2: It's like head to the upshop, get some cool stuff,
• 3:07
  Speaker 2: but I'm not like Bindy's all over me and like
• 3:10
  Speaker 2: body paint and nipple tussles and stuff like that.
• 3:13
  Speaker 1: I just feel like my vibe no one needs to
• 3:15
  Speaker 1: see it.
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  Speaker 3: Yeah, as someone who cannot relate because I am wildly young.
• 3:19
  Speaker 2: You're not really the festival type, are you.
• 3:21
  Speaker 1: I wish I was. Hey, i'll take it next year.
• 3:24
  Speaker 1: We'll make it a date.
• 3:25
  Speaker 2: I just think I've ruined your time already. Enough of
• 3:28
  Speaker 2: the shenanigans they're Victoria. Let's move right along to the
• 3:31
  Speaker 2: Facebook community, which was impressive, as it always is week
• 3:34
  Speaker 2: on week. Which posts stood out to you this week?
• 3:37
  Speaker 1: Victoria?
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  Speaker 3: All Right, I have a favorite post and it is
• 3:39
  Speaker 3: from our friend Sarah, and she posted this this week.
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  Speaker 1: She said, first time poster.
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  Speaker 3: I have just made a raise account because I have
• 3:47
  Speaker 3: been so impressed and inspired by this group. Plus there's
• 3:50
  Speaker 3: a really great promo code from She's on the money.
• 3:52
  Speaker 1: Really excited to.
• 3:53
  Speaker 3: See how my investment goes. And now that's not sponsored.
• 3:56
  Speaker 3: I'm just really excited to see that during such a
• 3:58
  Speaker 3: tumultuous time in the world and in the investment market, Yes,
• 4:02
  Speaker 3: we have people in our community still seeing the value
• 4:05
  Speaker 3: in investing, in getting into the market and not running away.
• 4:08
  Speaker 4: Ye.
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  Speaker 3: So to me, I loved that. Did you have one
• 4:11
  Speaker 3: got stood out to you?
• 4:12
  Speaker 4: I do.
• 4:13
  Speaker 2: Mine is from Jesse, who wrote that she had a
• 4:16
  Speaker 2: small money win. She paid off her after pay and
• 4:19
  Speaker 2: shut her account down.
• 4:20
  Speaker 1: Yes boom.
• 4:20
  Speaker 2: She also bought her first festival ticket today, which I
• 4:23
  Speaker 2: am people on she's one of my people. She was
• 4:26
  Speaker 2: able to do it without denting her savings.
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  Speaker 3: Impressive it is.
• 4:30
  Speaker 2: She's also written in that she's sorted all of her
• 4:33
  Speaker 2: budget for the next few months to pay off all
• 4:35
  Speaker 2: of her debts.
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  Speaker 1: She's on the right path.
• 4:37
  Speaker 2: And she wouldn't have been heading down the right path
• 4:39
  Speaker 2: if she hadn't heard of our group, and it's made
• 4:41
  Speaker 2: such a difference to her. Thanks guys, she's written there, and.
• 4:44
  Speaker 3: Lots of her friends or our friends. We're all friends.
• 4:46
  Speaker 3: Everyone liked that post, so.
• 4:48
  Speaker 1: I love that.
• 4:49
  Speaker 2: Yes, well done Jesse. And now into the main part
• 4:55
  Speaker 2: of the show. There are so many myths out there
• 4:58
  Speaker 2: about money. It's something that pops up in our Facebook
• 5:00
  Speaker 2: group time and time again. And even in the age
• 5:02
  Speaker 2: of the Internet where we literally have all of the
• 5:04
  Speaker 2: answers at our fingertips, which some times can actually lead
• 5:07
  Speaker 2: to overwhelm, it seems there are still so many myths
• 5:10
  Speaker 2: out there, and frankly, we think it's time to put
• 5:13
  Speaker 2: them to rest for good. Last week, we reached out
• 5:15
  Speaker 2: to the shes on the money community to find the
• 5:17
  Speaker 2: most common investment and money myths, and then we collected
• 5:20
  Speaker 2: our favorites, which today, Victoria is going to help us
• 5:22
  Speaker 2: confirm or deny that I am now when it comes
• 5:25
  Speaker 2: to money, just like religion and politics, everyone has an opinion.
• 5:29
  Speaker 2: So instead of listening to what Janine's sisters, unqualified, untrained,
• 5:33
  Speaker 2: unfinancially literate, Uncle Greg thinks, let's make the most of
• 5:36
  Speaker 2: our very own financial expert to get.
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  Speaker 1: To the bottom of it. Victoria.
• 5:41
  Speaker 2: Our first question of the day comes from Fern, who
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  Speaker 2: wants us to bust the myth that investing is the
• 5:45
  Speaker 2: same as gambling myth or myth busted.
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  Speaker 3: I love that question because I get it so often.
• 5:52
  Speaker 3: And I also hate that question because I get it
• 5:54
  Speaker 3: so often I'm hearing and it's something that we hear
• 5:57
  Speaker 3: time and time again from a generation that have experienced
• 6:01
  Speaker 3: significant loss in the share market. And the first thing
• 6:06
  Speaker 3: to preface here is if someone lost money in the
• 6:09
  Speaker 3: share market, it is because they pulled money out of
• 6:12
  Speaker 3: shares when they were not performing well. If we look
• 6:16
  Speaker 3: back to the GFC in two thousand and nine. We
• 6:19
  Speaker 3: see the people who lost the most money were those
• 6:22
  Speaker 3: people who pulled their money out of their investments because
• 6:26
  Speaker 3: often they were panic selling, or they were in a
• 6:28
  Speaker 3: situation where they actually couldn't afford to keep their investments.
• 6:31
  Speaker 3: And whilst they were panic selling, there were a lot
• 6:34
  Speaker 3: of people who were in positions where they were over
• 6:36
  Speaker 3: committed to an investment, so therefore they actually didn't have
• 6:39
  Speaker 3: the capital to back up what they needed to do
• 6:41
  Speaker 3: when the market was falling, so they had to pull
• 6:44
  Speaker 3: their money out. So people lost money there. If you
• 6:47
  Speaker 3: had invested before the GFC and remained invested, your money
• 6:50
  Speaker 3: came back, whilst not quickly, it did take a while
• 6:54
  Speaker 3: for the market to recover. When it did recover, your
• 6:57
  Speaker 3: shares outperformed anyone else's shit because you experienced this lull.
• 7:02
  Speaker 3: A lot of people purchased while the market was off
• 7:05
  Speaker 3: and then made a lot of money because those shares
• 7:07
  Speaker 3: were essentially discounted. And whilst I'm not going to get
• 7:10
  Speaker 3: into the semantics of what happened in the GFC, I mean,
• 7:12
  Speaker 3: if people are interested, we can do a.
• 7:14
  Speaker 1: Whole podcast on it.
• 7:15
  Speaker 3: I would love that, but I don't think that that's
• 7:16
  Speaker 3: what shees on the money is about. I think we
• 7:19
  Speaker 3: need to understand that people who have negative experiences are
• 7:22
  Speaker 3: more likely to talk about it predominantly than people who
• 7:25
  Speaker 3: have positive experiences exactly. But good investment is so boring
• 7:30
  Speaker 3: it's not worth talking about. So to actually answer that
• 7:34
  Speaker 3: question about investing and gambling, we actually need to understand
• 7:38
  Speaker 3: the difference. So investing is committing money or capital to
• 7:42
  Speaker 3: something with the expectation of obtaining income or profit or both.
• 7:46
  Speaker 3: And as you guys know, I love it when I
• 7:48
  Speaker 3: get both of those things. But what this definition actually
• 7:52
  Speaker 3: lacks is the real difference between investing and gambling, and
• 7:55
  Speaker 3: that is research. Gambling has no basis, it has no backing.
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  Speaker 3: It is you taking a punt ye making a pure chance,
• 8:03
  Speaker 3: pure chance that this will happen. And whilst a lot
• 8:06
  Speaker 3: of people will jump in and say, oh, well, but
• 8:08
  Speaker 3: I've done all my stats on football, I've done all
• 8:11
  Speaker 3: of this and I completely understand it. That's why I'm
• 8:13
  Speaker 3: betting on this. I'm not saying that you didn't do
• 8:15
  Speaker 3: your research. But when it comes to investment, we are
• 8:19
  Speaker 3: far more comprehensive and have research to back us and
• 8:23
  Speaker 3: past performance to guide us. Albeit past performance is not
• 8:26
  Speaker 3: a reliable predicta a future performance financial advisor. But many
• 8:30
  Speaker 3: investors think that if you're investing in the stock market,
• 8:33
  Speaker 3: it's like going and blowing all your money in a casino.
• 8:36
  Speaker 3: They throw it money at a stock or into a
• 8:38
  Speaker 3: basket of stocks based on rumors or tips or something
• 8:41
  Speaker 3: that they believe that they heard at a barbecue one time,
• 8:44
  Speaker 3: and they don't do a lot of research. And that
• 8:46
  Speaker 3: is where you lose money at your casino or in
• 8:49
  Speaker 3: your share market. But for the amount of people that
• 8:51
  Speaker 3: are doing their investment legitimately and putting themselves in a
• 8:55
  Speaker 3: position where they have done their research and understand it,
• 8:57
  Speaker 3: or spoken to a financial advisor, chosen a product that
• 9:01
  Speaker 3: actually has a really good research house behind it or
• 9:05
  Speaker 3: investment team behind it. You are investing. You are not
• 9:08
  Speaker 3: actually gambling. You are not here to take a chance.
• 9:11
  Speaker 3: We are here to put money in a place where
• 9:13
  Speaker 3: we know it will grow over the long term. Like
• 9:15
  Speaker 3: we can say with certainty that if we look back
• 9:18
  Speaker 3: on the Australian share market over the last thirty years,
• 9:21
  Speaker 3: any thirty year block in the history of the Australian
• 9:24
  Speaker 3: share market has never had a negative return. And I
• 9:27
  Speaker 3: think that that is something that is really impressive, but
• 9:30
  Speaker 3: also worthy of consideration when we start talking about investment. Like,
• 9:34
  Speaker 3: with investment, you never lose if you're invested for the
• 9:37
  Speaker 3: long term, exactly.
• 9:38
  Speaker 2: That's what you always say. The longer you're in there,
• 9:39
  Speaker 2: the more beneficial it's going to be. You're not just
• 9:41
  Speaker 2: in it for two years or whatever. That's exactly exactly.
• 9:45
  Speaker 3: And I think that it is one of those things
• 9:46
  Speaker 3: where it is so easy and so flippant to say, ah,
• 9:50
  Speaker 3: investing and gambling are the same. That's fine, and to that, well,
• 9:54
  Speaker 3: actually they're not the same thing. Understand the definition of
• 9:56
  Speaker 3: both of those things before you wildly go scaring other people,
• 10:00
  Speaker 3: because it's really easy to say that it's gambling. And
• 10:03
  Speaker 3: the reason I hear so many people saying it's gambling,
• 10:06
  Speaker 3: especially when I'm talking to them face to face, is
• 10:08
  Speaker 3: a lack of education and they are scared of things
• 10:12
  Speaker 3: that they don't understand. And if you don't understand it,
• 10:14
  Speaker 3: you are more likely to deny something than accept it
• 10:17
  Speaker 3: as Oh, you know what, Victoria, I hear you're talking
• 10:19
  Speaker 3: about investment.
• 10:20
  Speaker 1: I'm interested to learn more.
• 10:22
  Speaker 3: A lot of people have too much pride to say, hey,
• 10:25
  Speaker 3: I don't really know what you're talking about, could I
• 10:27
  Speaker 3: understand more? Could you tell me a little bit more?
• 10:29
  Speaker 3: They just go No. Investing is like gambling. It's throwing money.
• 10:32
  Speaker 3: It's something that you can't guarantee or return for another thing.
• 10:35
  Speaker 3: G to note on the investment versus gambling is that
• 10:38
  Speaker 3: often with gambling, you're gambling on one specific thing. You
• 10:42
  Speaker 3: are going and you are betting on that AFL match.
• 10:44
  Speaker 3: You are going and you are betting on a horse race.
• 10:47
  Speaker 3: You are going down, and you know putting however much
• 10:50
  Speaker 3: money you're putting into sports bet We talk about investment
• 10:53
  Speaker 3: all the time, and one of the most important things
• 10:56
  Speaker 3: for me about investment is being well diversified, not putting
• 10:59
  Speaker 3: all your eggs in one bait. And what is happening
• 11:02
  Speaker 3: with gambling is you are putting all of your eggs
• 11:04
  Speaker 3: in one really risky bucket instead of creating a portfolio
• 11:09
  Speaker 3: as shares that diversifies your risk to make sure that
• 11:12
  Speaker 3: if one thing isn't performing well, something else is. There's
• 11:16
  Speaker 3: also a lot of loss associated with gambling because it's
• 11:19
  Speaker 3: win or not. Whereas a share, once you purchase a share,
• 11:24
  Speaker 3: it might decrease in value, but you do not lose
• 11:27
  Speaker 3: money unless you sell your share whilst it's valued at less.
• 11:32
  Speaker 3: So if you look at your investment portfolio and you've
• 11:34
  Speaker 3: got ten shares worth ten dollars, and your investment portfolio
• 11:38
  Speaker 3: is worth one hundred dollars in total, and then the
• 11:40
  Speaker 3: next day each of your shares has dropped by ten
• 11:42
  Speaker 3: percent and your portfolio is now worth ninety dollars, you
• 11:46
  Speaker 3: actually still.
• 11:47
  Speaker 1: Have ten shares.
• 11:49
  Speaker 3: You haven't lost anything technically except the.
• 11:52
  Speaker 1: Value of your portfolio.
• 11:54
  Speaker 3: And I get quite passionate about this because, especially right now,
• 11:58
  Speaker 3: we are seeing crazy things happen in our share market,
• 12:02
  Speaker 3: crazy things happening with our health.
• 12:04
  Speaker 2: All of that, a lot of people are wondering if
• 12:06
  Speaker 2: they should pull out exactly.
• 12:07
  Speaker 3: There are so many questions around, oh my gosh, I've
• 12:10
  Speaker 3: lost so much in the share market. You haven't actually
• 12:14
  Speaker 3: lost anything unless you sell your investment and you exit
• 12:17
  Speaker 3: the investment market.
• 12:19
  Speaker 2: Yeah, so gambling is not the same as investing.
• 12:23
  Speaker 1: That is a myths.
• 12:25
  Speaker 2: Cassina wants us to bust the myth that you will
• 12:27
  Speaker 2: lose all of your money when the market drops, and
• 12:29
  Speaker 2: Tory wants us to bust the myth that coronavirus will
• 12:32
  Speaker 2: leave her with no superannuation.
• 12:34
  Speaker 3: That's a great question, gee, And because I am Randy
• 12:37
  Speaker 3: and love Durant, I've already answered that. And the answer
• 12:41
  Speaker 3: there is that when the market drops, you aren't actually
• 12:44
  Speaker 3: losing money at that point in time. Please don't get
• 12:47
  Speaker 3: me wrong. There are a lot of semantics that need
• 12:50
  Speaker 3: to be taken into consideration here, but you lose money
• 12:53
  Speaker 3: when you take your money out of the share market
• 12:56
  Speaker 3: and you sell your shares. You are not going to
• 12:58
  Speaker 3: lose your money just because the market dropped, but you
• 13:02
  Speaker 3: will if it drops. You panic, you try and get
• 13:05
  Speaker 3: out or change your investment strategy, or you go into
• 13:08
  Speaker 3: your super fund and you go, oh my gosh, my
• 13:10
  Speaker 3: aggressive share portfolio within my superannuation has dropped in value.
• 13:15
  Speaker 3: I'm going to switch it to conservative because I want
• 13:17
  Speaker 3: to quote preserve what I've got left.
• 13:20
  Speaker 4: Yeah.
• 13:20
  Speaker 3: That is actually you selling shares from your aggressive portfolio
• 13:23
  Speaker 3: to convert it to cash, to hold a cash investment
• 13:26
  Speaker 3: instead of holding shares, And that means that you are
• 13:31
  Speaker 3: choosing an investment. And we know that at this point
• 13:33
  Speaker 3: in time, cash is returning that one and a half percent,
• 13:37
  Speaker 3: which is not much at all, and you'd be lucky
• 13:39
  Speaker 3: in any high interest savings account nowadays to even cap
• 13:43
  Speaker 3: it too, Like you're not getting two percent nowadays in
• 13:47
  Speaker 3: savings accounts. That's what cash is performing at You are
• 13:50
  Speaker 3: swapping the opportunity to get your average of seven and
• 13:53
  Speaker 3: a half percent over your ten year period for your
• 13:56
  Speaker 3: one percent in cash. And if that's what you want
• 13:59
  Speaker 3: to do, you are more welcome to go ahead and
• 14:02
  Speaker 3: sell up and go into cash. But what we want
• 14:05
  Speaker 3: here is people to understand what it actually means to
• 14:08
  Speaker 3: sell in a falling market.
• 14:10
  Speaker 2: All right, So in summary, myth busted. Emma and Acacia
• 14:14
  Speaker 2: want us to bust the myth that buying property is
• 14:17
  Speaker 2: safer than purchasing shares, which I've heard a lot as
• 14:20
  Speaker 2: well talk.
• 14:21
  Speaker 1: Us through at Victoria. Is it a myth? Is it
• 14:22
  Speaker 1: a myth? Bustard, It is a myth?
• 14:24
  Speaker 3: Because this is a myth bust They're all going to beth.
• 14:27
  Speaker 3: I've got a feeling.
• 14:28
  Speaker 1: Yeah.
• 14:28
  Speaker 3: However, I think that this is a really impressive one
• 14:31
  Speaker 3: because it is such a common thing for people to say.
• 14:34
  Speaker 3: We see our parents having purchased property, and a lot
• 14:38
  Speaker 3: of our parents have made money by purchasing property because
• 14:41
  Speaker 3: when they were growing up, they were able to purchase
• 14:44
  Speaker 3: their first home for seventeen thousand dollars if they held
• 14:47
  Speaker 3: onto it until twenty twenty, they're selling it from one
• 14:49
  Speaker 3: point two to two point five million dollars and that
• 14:53
  Speaker 3: it's sweet, it's happy days. Maybe along that period of
• 14:56
  Speaker 3: time they also picked up a couple of investment properties,
• 14:59
  Speaker 3: which to them would have been no brainers because the
• 15:01
  Speaker 3: entry point for those properties was a lot easier than
• 15:05
  Speaker 3: it is for you r Eye today Georgia, because their
• 15:08
  Speaker 3: pre existing properties had a lot of equity in them,
• 15:10
  Speaker 3: which meant they were valued a lot more and they
• 15:13
  Speaker 3: could use those properties as leverage to get into other properties.
• 15:16
  Speaker 3: And when you have an asset that is increasing in
• 15:19
  Speaker 3: value like property did over the thirty years that we
• 15:23
  Speaker 3: have had that property booming, it was a no brainer.
• 15:26
  Speaker 3: That is now no longer how the property market is performing.
• 15:30
  Speaker 3: And it's important to go back to potentially listening to
• 15:32
  Speaker 3: our investment episodes where I go through the four different
• 15:36
  Speaker 3: investment assets that we can hold in Australia. But no
• 15:40
  Speaker 3: property is technically not a safer purchase than shares. Shares
• 15:44
  Speaker 3: actually have a higher rate of return on average than property.
• 15:48
  Speaker 3: But property is the Australian dream right like we can
• 15:51
  Speaker 3: see it. We can touch it, we can taste it.
• 15:53
  Speaker 3: We can go and eat a pizza on the front
• 15:54
  Speaker 3: lawn of that property should we wish to. But having
• 15:57
  Speaker 3: an investment portfolio is a really private hidden You don't
• 16:00
  Speaker 3: see it. You can't see it, you can't touch taste it.
• 16:04
  Speaker 1: It's not that.
• 16:05
  Speaker 3: No, you can't have your friends over on your patio
• 16:08
  Speaker 3: to celebrate with a bottle of champagne, because I'd be
• 16:10
  Speaker 3: pretty annoyed if I showed my friends my share portfolio
• 16:13
  Speaker 3: on my laptop and they got champagne on my keyboard.
• 16:15
  Speaker 3: I just feel like it is just not as tangible
• 16:19
  Speaker 3: as property, and we as humans are going to gravitate
• 16:23
  Speaker 3: to things that we can tangibly see.
• 16:25
  Speaker 1: Absolutely, because it's also.
• 16:27
  Speaker 3: Very hard for us mentally to comprehend how shares perform
• 16:31
  Speaker 3: and what that means. And there's more of an emotional
• 16:34
  Speaker 3: rollercoaster associated with shares because their value is calculated on
• 16:38
  Speaker 3: a daily basis. So instead of having a property where
• 16:42
  Speaker 3: you know you purchased that property for four hundred thousand
• 16:45
  Speaker 3: dollars and there's hearsay around what it's now worth, like
• 16:48
  Speaker 3: maybe it's worth five hundred thousand dollars if we're lucky
• 16:51
  Speaker 3: but we're not sure. But Barry down the road recently
• 16:54
  Speaker 3: sold his property and he also has three bedrooms and
• 16:56
  Speaker 3: it's sold for the you know, four seventy, so yours
• 17:00
  Speaker 3: be worth the same. There is actually no valuation methodology
• 17:04
  Speaker 3: on property until you.
• 17:06
  Speaker 1: Actually sell that property.
• 17:07
  Speaker 3: Yeah, and even when you sell that property, your property
• 17:10
  Speaker 3: is only ever worth what someone is going to purchase
• 17:13
  Speaker 3: it for if you have a buyer. So I think
• 17:16
  Speaker 3: it's very scary when you look at what shares do
• 17:19
  Speaker 3: because the volatility of them is really visible. It's not
• 17:22
  Speaker 3: to say that volatility doesn't exist in the property market,
• 17:25
  Speaker 3: we just can't see it as easily as logging into
• 17:28
  Speaker 3: our share trading platform.
• 17:30
  Speaker 2: Yeah, and I guess there's that feeling that you still
• 17:32
  Speaker 2: have your house when you know when the property market's
• 17:34
  Speaker 2: going down, you still got it exactly, Yeah.
• 17:37
  Speaker 3: Exactly, And that can be twofold. So sometimes it's really
• 17:40
  Speaker 3: nice to know that you still have an asset yep
• 17:42
  Speaker 3: in saying that if you have a share that's worthless money,
• 17:45
  Speaker 3: you don't not have that share anymore. But then on
• 17:47
  Speaker 3: the flip side, you also have people where what if
• 17:50
  Speaker 3: the property market goes off, what if interest rates increase
• 17:54
  Speaker 3: a property is a very big commitment. With shares, you're
• 17:57
  Speaker 3: going into an asset where you are purchased seeing a
• 18:00
  Speaker 3: direct share, and you usually whilst you can, you usually
• 18:03
  Speaker 3: just go straight in and purchase this asset with cash
• 18:06
  Speaker 3: you already have. You do not do that with property
• 18:09
  Speaker 3: unless you've saved your four hundred thousand dollars. So if
• 18:12
  Speaker 3: you are purchasing a property, you're putting yourself at a
• 18:15
  Speaker 3: lot of risk and in a lot of debt that
• 18:16
  Speaker 3: if the market performs differently and the interest rates rise,
• 18:19
  Speaker 3: can you still afford that or are you going to
• 18:21
  Speaker 3: be forced to sell and potentially make a loss. So
• 18:23
  Speaker 3: I think that we really need to consider all of
• 18:25
  Speaker 3: the ramifications that exist around property, and that's something I'm
• 18:29
  Speaker 3: really passionate about. I'm not saying it's a bad asset.
• 18:31
  Speaker 3: It is a really great asset, and property does make
• 18:34
  Speaker 3: up a very important part of a well diversified investment portfolio,
• 18:38
  Speaker 3: but it does not mean that it is the be all,
• 18:41
  Speaker 3: end all, and only being in property means you're not
• 18:44
  Speaker 3: very well diversified.
• 18:46
  Speaker 2: So it's definitely not safer than purchasing shares.
• 18:49
  Speaker 3: No, it's not, but I can absolutely see the merits
• 18:51
  Speaker 3: of wanting a physical.
• 18:53
  Speaker 2: Asset, So I guess would say that that is a
• 18:56
  Speaker 2: myth Bustin moving along to the next one, Jessica wants
• 19:00
  Speaker 2: us to bust the myth that Fred's uncle's cousins sister
• 19:03
  Speaker 2: lost all their money in the Great Crash of nineteen
• 19:05
  Speaker 2: seventy four, and therefore investing means you too will eventually
• 19:09
  Speaker 2: lose all of your money.
• 19:10
  Speaker 1: We have kind of touched on this.
• 19:12
  Speaker 3: Oh, look, friend's uncles, cousin, sister lost all their money,
• 19:15
  Speaker 3: so it must be true. I don't even know if
• 19:17
  Speaker 3: the semantics of that family tree actually add up ge
• 19:20
  Speaker 3: but if they do and that is true, I'm interested
• 19:24
  Speaker 3: to know where that came from. So people's opinions are
• 19:27
  Speaker 3: always based on their experience, we need to make sure
• 19:29
  Speaker 3: we're taking those things into consideration when taking on the
• 19:33
  Speaker 3: person's When taking a person's opinion, one of my favorite
• 19:38
  Speaker 3: books is called The Richest Man in Babylon, and it
• 19:41
  Speaker 3: is the most boring investment book that you will ever read,
• 19:44
  Speaker 3: but it is my favorite. And a quote from that
• 19:46
  Speaker 3: book is, would you take advice on buying diamonds from
• 19:50
  Speaker 3: a bricklayer?
• 19:51
  Speaker 1: You wouldn't?
• 19:52
  Speaker 3: You wouldn't. I so why are you taking Fred's uncle's, cousin,
• 19:56
  Speaker 3: sister's advice on shares or on investments if aren't an
• 20:00
  Speaker 3: investment advisor. So I'm not saying don't talk to people
• 20:04
  Speaker 3: who have knowledge and insight in this area, but always
• 20:08
  Speaker 3: take people's advice with a grain of salt, because whilst
• 20:12
  Speaker 3: their experience is really valid for you to learn, it
• 20:15
  Speaker 3: doesn't necessarily mean that they are right or correct. It
• 20:18
  Speaker 3: could just mean that they are wildly opinionated and you
• 20:21
  Speaker 3: need to make sure that you are making the right
• 20:23
  Speaker 3: decision for you. In saying that people who quote eventually
• 20:27
  Speaker 3: lose all their money in investment, it's not really a thing.
• 20:30
  Speaker 3: You lose all your money if you sell out of
• 20:33
  Speaker 3: the shares that you own. It's not to say gee
• 20:36
  Speaker 3: that there are not bad investments. So sometimes organizations do
• 20:40
  Speaker 3: go bust, Sometimes they go into liquidation and they have
• 20:43
  Speaker 3: to shut down. We as investment advisors have a job
• 20:48
  Speaker 3: to make sure that that risk is mitigated, and that
• 20:51
  Speaker 3: is why we want really well diversified investment portfolios, so
• 20:55
  Speaker 3: that if something bad does happen to one of your shares,
• 20:57
  Speaker 3: that's okay because you've got another ten different eggs in
• 21:00
  Speaker 3: your different buckets. So I think it's really important to
• 21:03
  Speaker 3: take into consideration what that actually means. And if Fred's uncles, cousin,
• 21:07
  Speaker 3: sister lost all of their money, ask them how, ask
• 21:10
  Speaker 3: them why? Why do you say that? What is your
• 21:13
  Speaker 3: experience here? How does that impact me? What could I
• 21:16
  Speaker 3: do to avoid that? And if they just go, oh,
• 21:18
  Speaker 3: just don't invest, maybe look for another opinion.
• 21:21
  Speaker 2: So that's Smith busted. Next question, Diane wants to bust
• 21:26
  Speaker 2: the myth that you need a stockbroker to buy shit.
• 21:29
  Speaker 3: Diane is correct, You do not need a stockbroker to
• 21:32
  Speaker 3: buy shares, or do you need a financial advisor?
• 21:35
  Speaker 1: You do it.
• 21:36
  Speaker 3: Albeit, g we do recommend getting financial advice, yep, because
• 21:39
  Speaker 3: it takes into consideration your holistic financial life. So they're
• 21:43
  Speaker 3: not just looking at how to invest, they're looking at
• 21:46
  Speaker 3: whether investment is actually a good option for you at
• 21:48
  Speaker 3: this point in time. Like maybe you've got a mortgage
• 21:50
  Speaker 3: and it's better for you to pay that off depending
• 21:52
  Speaker 3: on what the interest rate on that mortgage is. Or
• 21:54
  Speaker 3: maybe you've got children that you need to be saving
• 21:56
  Speaker 3: school fees for, or maybe you've got something.
• 21:58
  Speaker 1: Going across your whole situation.
• 22:00
  Speaker 3: Exactly, they're across your whole situation, and investment isn't just
• 22:03
  Speaker 3: about going and buying some shares. Investment is about making
• 22:06
  Speaker 3: sure that that is the right thing for you to
• 22:08
  Speaker 3: do at that point in time. So, no, you do
• 22:11
  Speaker 3: not need a stockbroker to buy shares. You can start
• 22:14
  Speaker 3: investing on your own quite easily. You are going to
• 22:17
  Speaker 3: need to do some research on making sure that you
• 22:20
  Speaker 3: are investing through a platform that you know and trust
• 22:22
  Speaker 3: and gives you access to the investments that you want
• 22:25
  Speaker 3: to access, that gives you access to something that is
• 22:28
  Speaker 3: able to be well diversified and doesn't have a ridiculous
• 22:32
  Speaker 3: share brokerage. And I think that that's something that's really
• 22:35
  Speaker 3: important to take into consideration because if you take our advice,
• 22:38
  Speaker 3: which we have said, you know, go into the market,
• 22:40
  Speaker 3: invest five hundred dollars each and every single month, or
• 22:43
  Speaker 3: whatever amount that we want you to invest, it's very
• 22:47
  Speaker 3: important to take into consideration brokerage fees because if you're
• 22:50
  Speaker 3: paying thirty three dollars per transaction to purchase shares, that
• 22:54
  Speaker 3: actually needs to be taken into consideration. With your share
• 22:58
  Speaker 3: purchase price, that's thirty three dollars, you're now five hundred
• 23:02
  Speaker 3: dollars worth of shares needs to make before it's breaking even,
• 23:06
  Speaker 3: and then it needs to perform above and beyond that
• 23:08
  Speaker 3: to actually get you a return. So I think we
• 23:11
  Speaker 3: need to take that into consideration. So if you're going
• 23:13
  Speaker 3: to look at share trading platforms and going to go
• 23:15
  Speaker 3: down a DIY route, make sure you understand brokerage and
• 23:19
  Speaker 3: any other fees that exist, and also exit fees. So
• 23:22
  Speaker 3: if you want to take your money off their platform,
• 23:25
  Speaker 3: how much is that going to cost you? But then
• 23:27
  Speaker 3: on top of that, there are a heap of really
• 23:29
  Speaker 3: good just micro investing platforms out there, and I don't
• 23:33
  Speaker 3: have any that I specifically recommend because it's going to
• 23:36
  Speaker 3: be really based on your personal situation and I can't
• 23:39
  Speaker 3: give you guys personal financial advice via a podcast. However,
• 23:43
  Speaker 3: just do a quick Google search and a heave of
• 23:45
  Speaker 3: them come up. Understand why you would invest in them,
• 23:48
  Speaker 3: Understand what their underlying investment strategy is, their fees, their
• 23:52
  Speaker 3: terms and conditions, and always always always read a PDS
• 23:56
  Speaker 3: or a product disclosure statement before making any decision.
• 24:00
  Speaker 2: Alrighty be So I guess once again that was myth busting.
• 24:04
  Speaker 2: Now Amanda wants us to bust the myth that all
• 24:07
  Speaker 2: it will take for gen y to purchase a home
• 24:09
  Speaker 2: is to stop traveling and eating smashed avo on toast.
• 24:12
  Speaker 3: Oh that's not a myth, that's reality. In fact, all
• 24:15
  Speaker 3: of our problems come from smashed avocado.
• 24:18
  Speaker 1: They do you.
• 24:19
  Speaker 3: Yeah, absolutely, I love that because it is such a
• 24:22
  Speaker 3: flippant way of calling us underprepared, and a really flippant
• 24:27
  Speaker 3: way of telling us that we are irresponsible with our money.
• 24:30
  Speaker 1: That so patronizing. It is so patronizing, and it is
• 24:32
  Speaker 1: just so rude.
• 24:33
  Speaker 2: Yeah.
• 24:34
  Speaker 3: And whilst I think it is quite funny in theory,
• 24:37
  Speaker 3: because don't get me wrong, our generation quite clearly loves
• 24:39
  Speaker 3: a good smash davot and a note last eh. However,
• 24:42
  Speaker 3: we are in a world where purchasing a home is
• 24:46
  Speaker 3: not nearly as accessible as it was thirty years ago,
• 24:49
  Speaker 3: and it harped on about this before. Getting into property
• 24:52
  Speaker 3: is not easy nowadays. It takes a twenty percent deposit,
• 24:57
  Speaker 3: which looks a lot like to most millennials, more than
• 25:00
  Speaker 3: one hundred thousand dollars in savings. And by the time
• 25:03
  Speaker 3: a lot of millennials save up one hundred thousand dollars,
• 25:06
  Speaker 3: the bar has changed. Now you need one hundred and
• 25:07
  Speaker 3: twenty thousand dollars, and then people aren't taking into consideration
• 25:11
  Speaker 3: the fees and charges that getting a mortgage includes. So
• 25:15
  Speaker 3: I think that it is a very easy and flippant
• 25:18
  Speaker 3: way for past generations to essentially throw shade at us
• 25:21
  Speaker 3: and say, well, oh, you guys don't care about your
• 25:23
  Speaker 3: financial futures. But if you look at the statistics, Gen
• 25:27
  Speaker 3: hy are the most financial literate generation to exist. Exactly
• 25:32
  Speaker 3: it is, It is very true, and we are the
• 25:34
  Speaker 3: most money conscious generation to exist. We're also in a
• 25:38
  Speaker 3: whole heap of debt, but that is not their point.
• 25:41
  Speaker 3: Where we are aware of it, and we are making
• 25:43
  Speaker 3: decisions based on our personal situations. We are often setting
• 25:47
  Speaker 3: goals that aren't based on property, and I think that
• 25:49
  Speaker 3: that blows the minds of a lot of people who
• 25:52
  Speaker 3: created their wealthy property. So we are now talking about
• 25:55
  Speaker 3: purchasing chares or saving or traveling, or we have other goals.
• 25:59
  Speaker 3: And whilst we have a yolow mentality, it is actually
• 26:04
  Speaker 3: not an entitled thing to have. It's I would like
• 26:07
  Speaker 3: to enjoy my life, ye, instead of commit to a
• 26:09
  Speaker 3: mortgage here in now, because you can buy a home
• 26:12
  Speaker 3: five years from now and pay it off and we
• 26:14
  Speaker 3: can do that. There doesn't actually need to be this
• 26:17
  Speaker 3: sense of urgency to get into property asap. However, I
• 26:21
  Speaker 3: think it is really unfair that we are being lumped
• 26:24
  Speaker 3: into a situation where previous generations are saying, look, it's
• 26:28
  Speaker 3: because you're traveling too much and you don't care about anything,
• 26:31
  Speaker 3: and you guys are eating too much smutched avocado. It's
• 26:33
  Speaker 3: a terrible mentality to have about us. Yeah, because we
• 26:37
  Speaker 3: are one of the smartest generations to ever exist.
• 26:39
  Speaker 2: Okay, so that was another myth busted. Okay, next question.
• 26:44
  Speaker 2: Victoria Erica wants us to bust the myth that you
• 26:47
  Speaker 2: don't need to stress when you're thirty years from retirement.
• 26:50
  Speaker 3: Oh yes, you do, you really really do. Tell us
• 26:53
  Speaker 3: what Whilst you don't need to stress now, we do
• 26:55
  Speaker 3: need to be making retirement a priority. And this is
• 26:58
  Speaker 3: something that I have had had a lot of conversations
• 27:01
  Speaker 3: today actually about, and that is that thirty years from now,
• 27:06
  Speaker 3: you are going to have so many financial commitments and
• 27:09
  Speaker 3: you are going to be in a position where saving
• 27:12
  Speaker 3: the amount that is necessary to save to reach retirement
• 27:15
  Speaker 3: comfortably is going to be significantly higher than what it
• 27:19
  Speaker 3: is if you started planning for it today, and I
• 27:22
  Speaker 3: use this example all the time, but I want to
• 27:25
  Speaker 3: keep using it because I give you consistency and hopefully
• 27:28
  Speaker 3: one day at a barbe you can whip it out
• 27:30
  Speaker 3: and tell people that you know this.
• 27:31
  Speaker 1: Wise lady told me.
• 27:33
  Speaker 3: A wise lady once told me that if I was
• 27:35
  Speaker 3: twenty one and I invested five hundred dollars on a
• 27:38
  Speaker 3: monthly basis at retirement, I would have an investment portfolio
• 27:43
  Speaker 3: worth one point two million dollars.
• 27:46
  Speaker 1: And that is a lot of money.
• 27:48
  Speaker 3: And we start talking about okay, well, that's five hundred
• 27:51
  Speaker 3: dollars a month when you're twenty one. Once you are
• 27:53
  Speaker 3: in your forties, that looks more like eight, nine, ten
• 27:56
  Speaker 3: thousand dollars a month, depending on your retirement time frame.
• 28:00
  Speaker 1: Yep, that's a lot of money.
• 28:01
  Speaker 3: And the important thing to take into consideration here is
• 28:04
  Speaker 3: we as young people, are very easy at saying, oh,
• 28:07
  Speaker 3: I'll do it when I earn more money. I'll do
• 28:10
  Speaker 3: it when I have finished at that festival. I'll do
• 28:13
  Speaker 3: it after my Europe trip next year. I'll really knuckle
• 28:15
  Speaker 3: down after we purchase a home. We are very good
• 28:19
  Speaker 3: at thinking that future US is going to look after
• 28:21
  Speaker 3: us when it's actually current us that needs to be
• 28:24
  Speaker 3: looking after us, because when we get to that point
• 28:28
  Speaker 3: in our lives where maybe we haven't taken into consideration
• 28:31
  Speaker 3: how much we really need to be investing to achieve
• 28:33
  Speaker 3: our goals, the financial commitments, and the lifestyle we lead
• 28:37
  Speaker 3: right then and there is going to need to dramatically
• 28:40
  Speaker 3: change for us to actually be in a position where
• 28:44
  Speaker 3: we can achieve that bigger financial goal. To ask someone
• 28:47
  Speaker 3: in their fifties to change their lifestyle so significantly that
• 28:51
  Speaker 3: they go from having their really nice car, paying off
• 28:54
  Speaker 3: a mortgage, probably still paying some private school fees to saying, okay,
• 28:58
  Speaker 3: but I need you to be investing eight thousand dollars
• 29:01
  Speaker 3: a month. Requires significant sacrifice, and you don't work your
• 29:05
  Speaker 3: entire life to get to a point where you actually
• 29:07
  Speaker 3: need to sell your car, sell your home, start investing
• 29:10
  Speaker 3: really aggressively when we could give you this gift of
• 29:13
  Speaker 3: knowledge right here and now, and you just start putting
• 29:16
  Speaker 3: five hundred dollars away from the age of twenty one
• 29:18
  Speaker 3: to achieve this goal that you pretend you never had,
• 29:21
  Speaker 3: so I never, as a financial advisor have to sit
• 29:24
  Speaker 3: across a table from you and say I need to
• 29:26
  Speaker 3: drastically change your lifestyle for you to achieve this goal.
• 29:30
  Speaker 3: So for me, no, you do have to make retirement
• 29:33
  Speaker 3: a priority now, and the sooner that we can do that,
• 29:36
  Speaker 3: the better.
• 29:37
  Speaker 1: Yep.
• 29:37
  Speaker 3: Retirement doesn't mean you have to stop work. Retirement doesn't
• 29:40
  Speaker 3: mean anything other than when we are planning for it.
• 29:43
  Speaker 1: It's the age at which you.
• 29:45
  Speaker 3: Are financially free to make any decision you would like
• 29:48
  Speaker 3: to make. So it's a point in time when you
• 29:51
  Speaker 3: can say, no, I'd prefer not to go to work.
• 29:54
  Speaker 3: I have enough investments and savings and a financial backing.
• 29:58
  Speaker 3: I don't actually need an income. And when we go
• 30:01
  Speaker 3: back to that five hundred dollars example, that is important
• 30:04
  Speaker 3: because of investment returns. If we look at and I
• 30:08
  Speaker 3: always say seven and a half percent, but let's drop
• 30:10
  Speaker 3: it back to five percent. Yep. If the share market
• 30:12
  Speaker 3: was returning on average five percent, that's sixty thousand dollars
• 30:16
  Speaker 3: you have coming in each and every single year in
• 30:19
  Speaker 3: investment returns that you then live on instead of the
• 30:23
  Speaker 3: money that you are earning from your job. The idea
• 30:26
  Speaker 3: is to create an investment portfolio that returns you enough
• 30:30
  Speaker 3: money in dividends so that you can live off that
• 30:33
  Speaker 3: without ever having to spend the money that you've invested.
• 30:36
  Speaker 2: So basically, do consider it now, don't stress about it.
• 30:39
  Speaker 2: But the earlier you get in the better.
• 30:41
  Speaker 3: The earlier you get in, the less of a monthly
• 30:44
  Speaker 3: contribution you are going to need to make to achieve
• 30:46
  Speaker 3: exactly the same goal.
• 30:48
  Speaker 2: So that's another myth busted. Hi, there you've reached that
• 30:55
  Speaker 2: shes on the money mail bux. Do you have a
• 30:57
  Speaker 2: money problem you want help solving. Do you have a
• 30:59
  Speaker 2: money dilemma you just want to chat about. Victoria is
• 31:02
  Speaker 2: here to help. Every week we'll be planning your questions
• 31:05
  Speaker 2: to help make sense of a money mess you may
• 31:06
  Speaker 2: have found yourself in. Make a quick recording on your
• 31:09
  Speaker 2: phone and send it through to podcast at Shoes Onthemoney
• 31:11
  Speaker 2: dot com dot au and you might find yourself on
• 31:13
  Speaker 2: the show. But for now, here's today's listener question.
• 31:17
  Speaker 4: Heyve, I've got a sticky one for you. I've been
• 31:19
  Speaker 4: part of the community for a while and realize that
• 31:22
  Speaker 4: I have a lot of financial changes to make. I
• 31:25
  Speaker 4: actually have a really high income, which I know I'm
• 31:27
  Speaker 4: lucky to have insisted about two hundred thousand dollars a year. However,
• 31:31
  Speaker 4: I have no savings or assets to show for it.
• 31:35
  Speaker 4: I'm thirty five now, and whilst I know I need
• 31:37
  Speaker 4: to change my ways, where do I even start? And
• 31:40
  Speaker 4: how do I manage to get back on track? All
• 31:42
  Speaker 4: my friends think of me as the rich friend because
• 31:44
  Speaker 4: I've got a nice car and live in a really
• 31:46
  Speaker 4: nice apartment. So how do I change my ways without
• 31:48
  Speaker 4: turning into an absolute stine and ruining the lifestyle? I love?
• 31:52
  Speaker 4: Thanks girls? Bye?
• 31:54
  Speaker 1: Where does she begin? Victoria?
• 31:56
  Speaker 3: I think that this is fun more common than a
• 31:58
  Speaker 3: lot of people would like to with me. Whilst a
• 32:01
  Speaker 3: lot of people would love to, I guess see it
• 32:03
  Speaker 3: as more common that we all have two hundred thousand
• 32:05
  Speaker 3: dollars incomes, and whilst that's not necessarily the norm, what
• 32:09
  Speaker 3: we do see is people who do have really high
• 32:12
  Speaker 3: income spending beyond their means, or spending everything that they
• 32:16
  Speaker 3: have earned, and lifestyle creep is real. Guys like you
• 32:20
  Speaker 3: speaking of that last week, Yeah, and when we talk
• 32:22
  Speaker 3: about it a lot, And I think it's really good
• 32:24
  Speaker 3: to reiterate because as your income increases, so do your expectations,
• 32:28
  Speaker 3: and so do your standards and the way that you spend.
• 32:31
  Speaker 3: Like I think I gave the example, and I'm not
• 32:33
  Speaker 3: sure if I did this in a workshopper on the podcast,
• 32:35
  Speaker 3: and I'm really confused right now, but I gave the
• 32:38
  Speaker 3: example of when I was in UNI first year, UNI
• 32:41
  Speaker 3: didn't have heaps of money. I was just saying to
• 32:44
  Speaker 3: you before that. I remember one time where I didn't
• 32:46
  Speaker 3: have money to put under my key, so I had
• 32:47
  Speaker 3: to walk to UNI and that was a bit painful.
• 32:50
  Speaker 3: But I was purchasing makeup from the supermarket and I'd
• 32:55
  Speaker 3: always look for it on sale, and that's just where
• 32:56
  Speaker 3: I purchased makeup. And then I got my first really
• 32:59
  Speaker 3: good part time job, started having a good income.
• 33:02
  Speaker 4: You know.
• 33:02
  Speaker 3: I ended up in a position where I was earning
• 33:05
  Speaker 3: a full time salary while still at UNI, which was great,
• 33:08
  Speaker 3: and I started shopping at price Line and that was
• 33:10
  Speaker 3: kind of like a little bit more luck for a
• 33:12
  Speaker 3: little step up.
• 33:13
  Speaker 1: Little step up, good step up.
• 33:15
  Speaker 3: But also we are starting to spend more money on
• 33:17
  Speaker 3: products that I was already spending a little bit less on.
• 33:21
  Speaker 3: Now I'm a business owner and I am in a
• 33:23
  Speaker 3: position where I do have more income than I.
• 33:25
  Speaker 1: Had it out of first year UNI.
• 33:27
  Speaker 3: I'm obsessed with Mega Mecca and it's not a bad thing.
• 33:31
  Speaker 3: And I think that we need to just understand our
• 33:34
  Speaker 3: financial decisions that we are making.
• 33:36
  Speaker 1: But it's not bad, it just is what it is.
• 33:38
  Speaker 3: But it's so easy to creep up and our expectations
• 33:41
  Speaker 3: creep up, and once we've been to Mecca, then we
• 33:43
  Speaker 3: start going to Mecca and it just becomes more ready
• 33:46
  Speaker 3: by makeup. Okay, well that's where I go, instead of remembering,
• 33:50
  Speaker 3: I guess quote where we came from and actually going
• 33:53
  Speaker 3: all right, well I was able to live within my means,
• 33:55
  Speaker 3: Then how come I can't do that now I'm the
• 33:57
  Speaker 3: same person exactly, I'm the same person. Why was I
• 34:00
  Speaker 3: totally happy with that and now I'm not? So I
• 34:03
  Speaker 3: think it's a really good reflection point. But this is
• 34:05
  Speaker 3: really common. It's very keeping up with the Joneses. It's
• 34:09
  Speaker 3: very spending in line with what you are earning and
• 34:12
  Speaker 3: proving that you are earning a lot of money, and
• 34:15
  Speaker 3: it's just detrimental for your future. Like I say it
• 34:17
  Speaker 3: all the time, if you live fake rich now, you
• 34:20
  Speaker 3: will be real poor later. And this is the perfect
• 34:23
  Speaker 3: example of that. I have clients who have been on
• 34:27
  Speaker 3: really normal salaries like sixty seventy eighty thousand dollars for
• 34:30
  Speaker 3: their entire lives, but they have prioritized saving and investing,
• 34:34
  Speaker 3: and now they are retiring millionaires. Really yeah, yeah, absolutely.
• 34:39
  Speaker 3: I mean I'm too young to have had them for
• 34:41
  Speaker 3: their entire financial lives, but that's what.
• 34:44
  Speaker 1: They have done.
• 34:44
  Speaker 3: And now I'm working with them, and they will retire
• 34:47
  Speaker 3: as millionaires, and some of them already are, just because
• 34:50
  Speaker 3: that was a priority to them. I also have clients
• 34:53
  Speaker 3: in their fifties and nearly sixties who have had really
• 34:57
  Speaker 3: high incomes, think half a million dollars, and they don't
• 35:02
  Speaker 3: have anything to show for it because they've lived in
• 35:04
  Speaker 3: line with their incomes and so easily. It's kind of
• 35:08
  Speaker 3: like the rabbit and the hair, like slow and steady
• 35:10
  Speaker 3: wins the race. I think it's really important to remember
• 35:13
  Speaker 3: it's actually not about how much you earn. It's about
• 35:16
  Speaker 3: what you do with the money that you have coming
• 35:19
  Speaker 3: in and making Hey, while the sun is shining, like,
• 35:22
  Speaker 3: make the most of a good situation that you are in.
• 35:24
  Speaker 3: If you have a really good income, that is really lucky.
• 35:27
  Speaker 3: I'm not doubting that you worked hard for it. I'm
• 35:29
  Speaker 3: sure you absolutely did. But let's make sure that you
• 35:32
  Speaker 3: are setting future you up to not have to work
• 35:35
  Speaker 3: as hard in the future.
• 35:36
  Speaker 2: So where does this listener actually start and how does
• 35:39
  Speaker 2: she get her money on track.
• 35:41
  Speaker 3: I think she needs to actually have a good long
• 35:43
  Speaker 3: chat to herself. Do her budget, do her cash flow,
• 35:47
  Speaker 3: understand where her budget is blowing out, put everything on paper.
• 35:51
  Speaker 3: Look at your budget and work out what your surplus
• 35:53
  Speaker 3: each and every.
• 35:54
  Speaker 1: Single month should be.
• 35:56
  Speaker 3: And if you are not actually saving that, maybe you
• 35:58
  Speaker 3: haven't done your budget correctly and we need to go
• 36:00
  Speaker 3: back and review. A budget is actually something that takes
• 36:03
  Speaker 3: a while to do. Sometimes it requires a couple of
• 36:05
  Speaker 3: reviews over a number of weeks, as you remember the
• 36:07
  Speaker 3: things that you spend money on. For example, I remember
• 36:10
  Speaker 3: when I first did my budget, I was like, all right,
• 36:12
  Speaker 3: I spend this my on gifts. I know what I'm
• 36:14
  Speaker 3: spending at Christmas, I know what I'm spending at birthdays.
• 36:17
  Speaker 3: And then over the next couple of weeks, I was like, oh, yeah,
• 36:20
  Speaker 3: actually I always buy my dad something for Fatness Day.
• 36:23
  Speaker 3: Oh yeah, I buy this gift for my friend when
• 36:26
  Speaker 3: she graduated university. And just making sure that you are
• 36:29
  Speaker 3: capturing all the small things in your budget that add up,
• 36:32
  Speaker 3: because from little things, big things really do grow. And
• 36:36
  Speaker 3: I think that we just need to have a good
• 36:38
  Speaker 3: hard look at ourselves and go am I actually spending
• 36:41
  Speaker 3: in line with my values? Do I actually need this
• 36:44
  Speaker 3: really fancy one bedroom apartment in the middle of the
• 36:47
  Speaker 3: CVD so that I can enjoy my lifestyle now? Or
• 36:50
  Speaker 3: could I maybe move into a similar apartment that has
• 36:53
  Speaker 3: a housemate?
• 36:53
  Speaker 2: Yeah?
• 36:53
  Speaker 3: What can I do to put myself in the best
• 36:56
  Speaker 3: financial position? Doesn't mean that everyone is going to have
• 36:59
  Speaker 3: the same goals or value use or budget, but it
• 37:01
  Speaker 3: does mean taking a little bit of a look at
• 37:03
  Speaker 3: yourself and prioritizing to you what is important. As I've
• 37:07
  Speaker 3: said a million times, to me, financial freedom is the
• 37:10
  Speaker 3: most important thing, and it is creating an asset that
• 37:12
  Speaker 3: one day will completely support you.
• 37:14
  Speaker 2: Would you recommend as well, Victoria, seeing a financial advisor
• 37:17
  Speaker 2: or starting off on your own seeing how you go.
• 37:20
  Speaker 3: I always recommend starting off on your own and seeing
• 37:23
  Speaker 3: how you go, because budgeting and cash flow are something
• 37:26
  Speaker 3: that you can get a really good grasp on on
• 37:29
  Speaker 3: your own. Sometimes it's just about having some hard conversations
• 37:32
  Speaker 3: with yourself and printing out those like three months worth
• 37:36
  Speaker 3: of bank statements and you're looking at that, what.
• 37:38
  Speaker 1: Am I spending?
• 37:39
  Speaker 3: I need to draw a line in the sand here,
• 37:40
  Speaker 3: be really honest with myself, not judge myself.
• 37:43
  Speaker 1: Actually just go all.
• 37:44
  Speaker 3: Right, well what am I spending? Do I want to
• 37:46
  Speaker 3: keep doing this? No? Okay, let's move on. So I
• 37:50
  Speaker 3: think getting a really good grasp of your own financial
• 37:54
  Speaker 3: life before you see a financial advisor enables you to
• 37:57
  Speaker 3: get better value out of a financial advisor once you
• 38:00
  Speaker 3: know what you're working with. Because as someone who is
• 38:02
  Speaker 3: a financial advisor, I love talking to people, but it
• 38:06
  Speaker 3: makes my job a whole hey easier if you come
• 38:08
  Speaker 3: empowered with Okay, well I know that I can save
• 38:11
  Speaker 3: X per month.
• 38:12
  Speaker 1: Yeah, and you know a watch if it is.
• 38:14
  Speaker 3: All too hard for you, there are always ways that
• 38:16
  Speaker 3: you can work with a financial advisor to actually work
• 38:19
  Speaker 3: that out. So not saying don't, but often it is
• 38:22
  Speaker 3: a very reflective piece, something that does take a little
• 38:25
  Speaker 3: bit of time, a little bit of consideration, and it's more,
• 38:28
  Speaker 3: You're going to get more value out of an advisor
• 38:30
  Speaker 3: if you know your goals and you know what you
• 38:32
  Speaker 3: want to achieve.
• 38:36
  Speaker 2: Okay, now for the fun stuff. What good would a
• 38:39
  Speaker 2: money podcast be without the perby bits. It's time for
• 38:42
  Speaker 2: money diaries.
• 38:42
  Speaker 5: Hi, I'm thirty and earning less, And the reason for
• 38:45
  Speaker 5: this is because I've had a big pay cut thirty
• 38:49
  Speaker 5: thousand dollars less this year. So I'm just having to
• 38:52
  Speaker 5: readjust my lifestyle and work out how I can live
• 38:55
  Speaker 5: the way I'd like to live on a lot less money.
• 38:59
  Speaker 2: Thirty in earning less explain to us what happened to
• 39:01
  Speaker 2: her and her finances in twenty nineteen.
• 39:03
  Speaker 5: So last year I was in an acting position, which
• 39:06
  Speaker 5: was incredible. I jumped up thirty grand, was able to
• 39:10
  Speaker 5: pay a lot off on my mortgage. I also purchased
• 39:13
  Speaker 5: some nice boobs for myself. Yeah, I'm quite happy with
• 39:18
  Speaker 5: myself there. But now, unfortunately I was unsuccessful and I
• 39:23
  Speaker 5: was kind of assuming that I was going to get
• 39:26
  Speaker 5: the position as an ongoing. So now I'm in a
• 39:29
  Speaker 5: situation where I'm earning now seven hundred dollars less a fortnight.
• 39:35
  Speaker 5: So now I really have to look at my money
• 39:37
  Speaker 5: situation and now my relationship is. I mean, it's definitely
• 39:41
  Speaker 5: not dire. I'm living comfortably, but I do need to
• 39:45
  Speaker 5: really evaluate where my spendings are going.
• 39:48
  Speaker 2: So how much does she earn and where does some
• 39:50
  Speaker 2: money go after it hits her account?
• 39:51
  Speaker 5: I get paid a fortnite two one hundred dollars. Fourteen
• 39:56
  Speaker 5: hundred of that grow straight into my mortgage, therefore off
• 40:00
  Speaker 5: seven hundred dollars a fortnight and then from there that's
• 40:04
  Speaker 5: inclusive of bill's my other spendings, which you know, my
• 40:08
  Speaker 5: values are going to the gym. So i have my
• 40:11
  Speaker 5: one hundred and twenty dollars a fortnight bill for the gym,
• 40:13
  Speaker 5: which is a lot, I know. And I've listened to
• 40:16
  Speaker 5: the other podcasts on She's on the Money and how
• 40:18
  Speaker 5: you can save money going to other gyms that aren't
• 40:20
  Speaker 5: is expensive, but this is my value and I really
• 40:22
  Speaker 5: like going to the gym, and I'm not willing to change.
• 40:25
  Speaker 1: It, all right.
• 40:26
  Speaker 5: So in my bank accounts, I have one hundred and
• 40:29
  Speaker 5: twenty dollars in one, one hundred and six dollars in another,
• 40:32
  Speaker 5: and I've just recently opened an eighty six four hundred
• 40:35
  Speaker 5: account thanks to She's on the Money podcast for that,
• 40:38
  Speaker 5: and I've got some money in there as well.
• 40:39
  Speaker 1: I've got around four hundred dollars.
• 40:41
  Speaker 2: Okay, then, so how does she feel about investing? Does
• 40:44
  Speaker 2: she invest? And if so, how so?
• 40:45
  Speaker 5: I think investing is really important. I think that's been
• 40:48
  Speaker 5: handed to through my parents as well. They've really shown
• 40:51
  Speaker 5: me that, you know, having a property is a really
• 40:54
  Speaker 5: good investment. And look, i can tick that off the
• 40:56
  Speaker 5: bucket list because I'm very proud to say I owned
• 40:59
  Speaker 5: my first proper I do have shares, but I don't
• 41:03
  Speaker 5: know where they are. I don't know how much money
• 41:05
  Speaker 5: is in them. I'm very naive, and I want to
• 41:09
  Speaker 5: learn more about shares. I want to know if it's
• 41:12
  Speaker 5: worth me pulling out my money, putting it into my mortgage,
• 41:16
  Speaker 5: or just reevaluating where my shares are going. But I
• 41:18
  Speaker 5: don't know a lot about shares, and I want to
• 41:21
  Speaker 5: That's a bit of a goal for me for this year,
• 41:23
  Speaker 5: learning more about shares.
• 41:25
  Speaker 2: What about debts like credit cards or personal lodes?
• 41:28
  Speaker 5: Zero debt no credit card debt just to my hexit
• 41:32
  Speaker 5: that I mentioned earlier. And my mortgage, but I'm definitely
• 41:36
  Speaker 5: paying off a lot more than what I need to,
• 41:38
  Speaker 5: So I'm really smashing that out and trying to pay
• 41:40
  Speaker 5: off as much as I can to not have a
• 41:43
  Speaker 5: mortgage anymore.
• 41:45
  Speaker 2: Dirty and Earning List has a habit that she says
• 41:47
  Speaker 2: is both good and bad.
• 41:48
  Speaker 5: Yeah, So my good and bad habit is that I
• 41:51
  Speaker 5: do have a taste for expensive clothes, but I also
• 41:55
  Speaker 5: do like to sell my clothes, so I try every
• 41:58
  Speaker 5: six months to twelve months sell my clothes at a market. Therefore,
• 42:02
  Speaker 5: I'm getting money coming in and I can actually purchase
• 42:05
  Speaker 5: other new, nice, expensive clothes.
• 42:07
  Speaker 1: And what are the good money habits does she have recently?
• 42:09
  Speaker 5: So I've deleted Uber Eats and Uber which I actually
• 42:13
  Speaker 5: got stuck out at a bar last night because I
• 42:16
  Speaker 5: had to download the app because I didn't have Uber
• 42:19
  Speaker 5: on my phone anymore, which was quite hard to download
• 42:22
  Speaker 5: an app after a few drinks. But I got there
• 42:26
  Speaker 5: in the wedd and I got home safe, so that
• 42:28
  Speaker 5: was good. Another good habit is that I looked at
• 42:31
  Speaker 5: where my money has been going and I've cut down.
• 42:34
  Speaker 5: I'm not buying lashes anymore, which I worked out to
• 42:37
  Speaker 5: save me fourteen hundred for the year, so that's a
• 42:40
  Speaker 5: big bonus.
• 42:41
  Speaker 2: How would Today's money diarist rate her own relationship with
• 42:44
  Speaker 2: money if she had to give herself.
• 42:45
  Speaker 5: A greade, I'd give myself a B. But I really
• 42:48
  Speaker 5: want to be in a sorry to get there, I
• 42:50
  Speaker 5: need to learn more about how I can budget better
• 42:53
  Speaker 5: with my new income and how it's changed. Trying to
• 42:56
  Speaker 5: maintain the last style that I liked to live. I
• 42:59
  Speaker 5: really want to get to an but I think I
• 43:01
  Speaker 5: need to give myself a bee because there's always room
• 43:03
  Speaker 5: for growth, and I think bees are pretty good grade anyway,
• 43:07
  Speaker 5: because I can see that I'm already starting to change,
• 43:10
  Speaker 5: but I've got a lot of other areas that i
• 43:12
  Speaker 5: can improve on.
• 43:12
  Speaker 1: What did you think of that one, Victoria?
• 43:14
  Speaker 3: I really liked it.
• 43:15
  Speaker 1: I feel like she was really compidy. Yeah, she was lovely.
• 43:19
  Speaker 3: What did you like about her energy?
• 43:20
  Speaker 1: I just feel like she was very positive.
• 43:22
  Speaker 2: Given that she's now earning thirty grands less, which is
• 43:25
  Speaker 2: a huge.
• 43:26
  Speaker 3: Number, it sounds like she knows what she's talking about.
• 43:28
  Speaker 3: It feels like she knew how to allocate it to
• 43:31
  Speaker 3: begin with. I love that she said she've paid down
• 43:34
  Speaker 3: some of her mortgage. I'm all for boobs if you're
• 43:37
  Speaker 3: into boobs hard, yes, But then also I think it's
• 43:40
  Speaker 3: really important that now she's on less, she sounds like
• 43:44
  Speaker 3: she knows what she's budgeting for while she said she
• 43:46
  Speaker 3: didn't really know what happens when it comes to shares,
• 43:50
  Speaker 3: and definitely like we can educate her on that. They
• 43:52
  Speaker 3: have a couple of podcasts on that I heard, But
• 43:54
  Speaker 3: I think that she was doing pretty well given she knew,
• 43:57
  Speaker 3: you know, exactly what was coming into her bank account
• 43:59
  Speaker 3: every four and where it was going and what it
• 44:02
  Speaker 3: was allocated to.
• 44:03
  Speaker 2: What did you think about the grade? I think she
• 44:05
  Speaker 2: gave herself a B.
• 44:07
  Speaker 1: I think that's fair.
• 44:08
  Speaker 3: I never like, as you guys know, I never like
• 44:10
  Speaker 3: arguing with people on their grades, because I think that
• 44:13
  Speaker 3: if you feel like you're a B, then you're a B.
• 44:16
  Speaker 3: And she did say that she wants to become an
• 44:18
  Speaker 3: A plus or she wants to become an A A courage.
• 44:20
  Speaker 1: I can't remember which one it was. I think it's
• 44:22
  Speaker 1: an A.
• 44:23
  Speaker 3: But she also said how she's going to get to
• 44:26
  Speaker 3: an A, and I love that she has a plan there.
• 44:28
  Speaker 3: The one thing I would say, though, is it sounded
• 44:31
  Speaker 3: like she didn't have much of an emergency fund.
• 44:33
  Speaker 1: Yeah, she only had what was it, two hundred. She
• 44:36
  Speaker 1: didn't have a lot.
• 44:37
  Speaker 3: No, she didn't have heaps sitting in her various bank accounts.
• 44:40
  Speaker 3: And I'm probably making some grand assumptions here. I don't
• 44:43
  Speaker 3: actually know her full financial history or position, but I'm
• 44:47
  Speaker 3: assuming that she put a lot of her surplus cash
• 44:50
  Speaker 3: into her mortgage, which would make sense given her conversation
• 44:54
  Speaker 3: that she was having earlier. However, I really like the
• 44:57
  Speaker 3: idea of people having access to emergency any funds, Like, gee,
• 45:01
  Speaker 3: we're seeing it. At the moment, there is so much
• 45:03
  Speaker 3: uncertainty floating around, and we're just not sure what's going
• 45:07
  Speaker 3: to happen with our pays, and sometimes we can't guarantee
• 45:10
  Speaker 3: our employment is going to exist in a couple of weeks.
• 45:13
  Speaker 3: So I think it's really important to have something to
• 45:15
  Speaker 3: fall back on so that if we're out of employment
• 45:18
  Speaker 3: or our financial situation changes, we're not stuck in the lurch.
• 45:23
  Speaker 2: So love the energy overall, happy with the grade. Anything
• 45:26
  Speaker 2: else to add, I.
• 45:27
  Speaker 3: Don't think I have a lot to add. I think
• 45:29
  Speaker 3: she had a lot of conviction in what she was
• 45:31
  Speaker 3: saying and knew what she wanted to get better at.
• 45:33
  Speaker 3: And I have no doubt that over the next couple
• 45:35
  Speaker 3: of months she's going to teach herself that because she
• 45:37
  Speaker 3: sounds like a smart lady.
• 45:41
  Speaker 1: That is all we have time for today.
• 45:43
  Speaker 2: But before we head off, let's quickly wrap the boring
• 45:45
  Speaker 2: but important stuff. The advice shed on MythBusters just hidding,
• 45:49
  Speaker 2: she's on the money is general in nature and does
• 45:51
  Speaker 2: not consider your individual circumstances. She's on the Money exists
• 45:54
  Speaker 2: purely for educational purposes and should not be relied upon
• 45:57
  Speaker 2: to make an investment or financial decision.
• 46:00
  Speaker 1: And fear not, We promise.
• 46:01
  Speaker 2: Victoria Divine is an authorized representative of Consultant Financial Advisors
• 46:06
  Speaker 2: propriet You Limited ABN six five double six three seven
• 46:09
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• 46:13
  Speaker 2: And thank you, of course to Brian John, our audio man,
• 46:15
  Speaker 2: for whipping our wild chat into the podcast you Love.
• 46:18
  Speaker 3: We would absolutely love it if you joined our Facebook group,
• 46:21
  Speaker 3: where our community shares money tips and tricks every single day,
• 46:25
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• 46:34
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• 46:37
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• 46:40
  Speaker 3: a US.
• 46:40
  Speaker 2: See you next week, guy, Next week, guys,