She's On The Money - Didn't Save in Your 20s? Here's Why it's OK!

Episode Date: September 13, 2024

Did your 20s look more like cocktails and concerts than savings accounts and spreadsheets? You’re not alone, and guess what- it’s totally okay! In this episode, Victoria Devine breaks down why blowing your budget in your 20s doesn’t mean you’re off track. She flips the script on those financial regrets and shows you how to make the most of where you are now. It’s time to own your past, love your present, and build a future that’s all yours. SIGN UP FOR THE INVESTING MASTER CLASS! Use the code PODCAST for a cheeky discount. Acknowledgement of Country By Natarsha Bamblett aka Queen Acknowledgements. The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs.  Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708,  AFSL - 451289.See omnystudio.com/listener for privacy information.

Hello, my name is Natasha Nabanunga-Bamblett. I'm a proud Yorta Yorta, Kernai, Wolperi and Awadjeri woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on Awadjeri country, acknowledging the elders, the ancestors and the next generation coming through. As this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impact for tomorrow. Let's get into it. She's on the money. She's on the money.

hello and welcome back to she's on the money the podcast that makes personal finance feel a little less daunting and a lot more doable. I want to know, do you ever find yourself looking around to what others are doing and feel left behind? Like everyone else was ticking off life goals while you were busy just enjoying the ride? Or do you go back and look at your young years and think seriously, where did all that money go? Well, today I'm right here with you, Victoria Devine, your personal finance hype girl. This episode is all about flipping the script on how you can see your past and realizing that your youth, it wasn't wasted, even if your savings account doesn't necessarily agree. I saw a post on socials recently that said, sorry, I didn't

save money in my 20s. I was learning to love myself. And for me, that really hit home because I feel like I spent a majority of my 20s just trying to keep up with, I don't know, the Joneses or the Kardashians. We can all feel a little lost when we start measuring our lives against everyone else's highlight reel. It's tempting to look back and think, oh my gosh, I should have done things so differently. But it's important to remember that every choice, every misstep and every adventure has played a role in getting us here. So let's cut ourselves a little bit of slack and embrace the lessons we've learned along the way. A great place to start is by acknowledging that your 20s are a time of exploration, of life, love and yes, sometimes spending money like

there's absolutely no tomorrow. Whether it's traveling, dining out, or buying those must-have festival tickets, the money we spent in our 20s often goes towards experiences that help us understand ourselves better. This is all completely normal, and in fact, there was some research done by Eventbrite that found that 78% of Gen Z prefer spending their money on experience over material things. It's all about living in the moment, and honestly, I totally get it. When I was in my 20s, my viewer money was, I'll just pay it back when I get more of it. I'll just organize it when I earn more. I'll just spend less when life gets serious. And that's pretty normal. According to ASIC, one in four Gen Zs have less than $1,000 in personal savings, including 8% who have none. And

on average, Gen Z estimate having personal debt of $8,188 each. That's a lot of money. In fact, studies have shown that the average person doesn't start saving seriously until they're well into their 30s. According to the ABS or the Australian Bureau of Statistics, the median age for buying a first home in Australia is now 34. A really clear sign that financial milestones are happening a little bit later for many of us. So if you're feeling behind, my friend, you are definitely not alone. I'm going to take a break, but stick around because when we come back, we're going to dive into why your brain might just be the culprit. Welcome back, my friend, and here's where it gets a little bit interesting, a little bit spicy per

se. Your brain, specifically the prefrontal cortex or the part that's responsible for decision making and your impulse control, doesn't fully develop until you're about 25 years old. So when you look back and think, why did I spend so much money on that? Well, your brain was still figuring things out as well. Another powerful force in our 20s is instant gratification, something I'm incredibly guilty of, which leads to higher spending and less in savings. When you see something that you want, like the latest iPhone or a weekend getaway, the urge to have it immediately can overshadow the long-term benefits of saving that money instead. This tendency to prioritize immediate rewards is a really common struggle among young adults. Research from the American Psychological

Association highlights how this drive for instant gratification can completely derail financial stability. It's not just about impulse purchases. It's a psychological challenge that makes it harder to delay gratification in favor of long-term financial success. This is a critical factor in understanding the financial habits of young adults and why saving often takes a back seat to spending. And let's not forget about that tendency to focus on short-term goals. When you're in your 20s, retirement feels like an entire lifetime away, so it's really easy to prioritize short-term spending over long-term saving. Another massive thing you're dealing with is social comparison. In your 20s, and in my 20s, you were constantly bombarded with what everyone

else was doing. They're traveling the world, they're partying, and they're having fun, and it's hard not to feel like you need to keep up. This pressure can drive spending beyond your means just to match what you see around you and that's exactly how I ended up in more than $40,000 worth of personal debt in my 20s. Finally, there's that risk-taking behaviour we need to chat about. Your 20s are often when you're most willing to take financial risks or jump out of a helicopter like I did, whether it's through investments or big purchases. The belief that there's plenty of time to recover from potential losses can lead to decisions that might not be the wisest in the long run. Understanding these psychological factors is going to help you make sense of your financial

decisions in your 20s and not crucify yourself so much. We often hear this narrative that if you didn't start saving in your 20s, you're somehow completely behind for life, like there's some imaginary deadline for getting your financial act together. I can tell you, my friend, that is not true at all. Let's flip that script. Your 20s are a time for exploration and growth, and it's completely normal if saving wasn't at the top of your list. You know what the good news is though? You are not doomed. You're not even close to it. The truth is it is never too late to start working towards the financial future that you want and that you deserve. The key is to focus on where you are now and how you're going to be able to move forward from there. Maybe you didn't

have a solid savings plan in your 20s, but that doesn't mean you can't start one right now, today. every single step you take from this point on is progress it is a small step in the right direction and my friend we need to focus on the fact that it is still the right direction and with the right strategies you can make significant strides towards your goals so let's not get caught up in the should have could have like i did i literally spent so much time in my late 20s getting out of debt but when i was doing that i was lying to the people around me i didn't want to admit that I was in debt. I felt like I had absolutely screwed my life up, that there was absolutely no going back, and I was never going to be able to financially recover from that.

I took back control. Not only did I take back control, but I created this entire community so that we can all feel like we're in control. So how do you personally want to take that control? Let's dive into what you can do right now to start building the financial life that you deserve. Don't scoff at that. You do deserve it. It all begins with really simple, actionable steps that are tailored to your current stage in life, and you can do it yourself. We're not talking about massive overhauls or drastic lifestyle changes, just small adjustments that make a really big impact over time. Maybe it's as easy as setting up an automatic transfer that sends a really small amount of money from every paycheck that you get straight into your savings account.

think of it as paying yourself first even if it's just like 20 bucks a week or even a month or maybe for you it's about bumping up your super contributions by an extra five percent my friend that's future you she's thanking you already the key is to start with steps that feel doable and that actually align with where you're at so that you're not overwhelmed by the pressure to do it all at once and if you're thinking about this and you're going v i don't even have twenty a week or month and I could not do 5% extra on my super? No worries. That doesn't matter. You're here. You're listening to this podcast. This is the smallest step in the right direction to getting your life on track and just knowing more and just being educated is putting future you first.

Maybe you're someone who racked up a lot of super accounts in your 20s. So consolidating your account to save on fees would be a really great step. Or maybe you could start tackling one high interest debt at a time. And hey, it's okay if your steps don't look like everyone else's. Your financial journey is yours alone. So focus on what feels right for you. What feels manageable? What is doable? The most important part though, it's to start. Even the smallest steps, like skipping a takeaway coffee once a week and putting that cash into your savings. It can add up over time. It's about creating habits that build momentum, so every step feels less like an effort and more like a routine. And remember, my friend, this isn't a sprint. It's a marathon.

Your progress, no matter how small, is worth celebrating. And today, I'm celebrating you. The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's on the Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's on the Money are authorized representatives of Money Sherpa PTY LTD ABN 321 649 27708 AFSL 451 289.