She's On The Money - How To Create Your Investment Strategy

Episode Date: March 12, 2024

We’re still in the first quarter of 2024, and if this was your year to start investing and you haven’t gotten around to thinking about it yet, then that’s ok! Mindset truly is the cornerstone when it comes to creating an investment strategy, and it's often the biggest hurdle many of us face.  So today we give you the 6 steps you need to take to create your investment strategy! Check out these helpful investment basics episodes... Back To Basics of Investing Caution! Listen at Your Own (Risk) Profile What Is The Difference Between Investment Platforms? Investing On a Low Income 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 to She's on the Money, the podcast for people who want financial freedom. We're still in the first quarter of 2024 and if it was your year to start investing and you haven't gone around to thinking about it yet, then that's quite all right. Well, it has to be because that's the boat you're in right now. Reality, whatever. We're going to get through it. Relatable. That's why we're doing this. Today, we are going to give you a gentle nudge to help with the first steps because the first step is often the hardest. Isn't that right? I feel like it is the hardest. That's the hardest.

I mean, you downloaded an investing platform though. Yeah. And does that feel as scary now you've downloaded it? You're like, oh, this doesn't feel as intimidating. Yeah, totally. And we did do that episode recently where you kind of broke it down for me and for us. I'm going to do it again because that's exactly what we're talking about today. We're talking about how to create an investment strategy.

We've obviously done so many episodes on She's On The Money about investing. So as we go through this episode and if previous topics that I have already covered come up, I'll actually point you to those episodes we've gone through and basically timestamped it, Bec. The links are also going to be in our show notes for today, so don't worry, you don't have to write them all down. But I'm a bit biased. I think we've got a few good ones and I've highlighted four

that I think everyone needs to listen to for the first time if you haven't. And if you have listened to these episodes, given one of them's from 2021, probably time for you to go back and have a re-listen, right? So from the 10th of March, 2021, listen at your own risk profile. Good one. That's a good one. I do think I'm kind of funny though. That's pretty funny.

I think that's a good one to talk about because we're going to be talking about risk profiles a little bit later on. We've got the 4th of May, 2022, different kinds of investing platforms. So this episode, I really break down what types of platforms are out there, why you might use one over the other and what they look like, because I feel like so many times people get analysis paralysis over what type of investing platform they should choose and they might go oh beck what did you choose and you go sharesies and they go oh my gosh like my friend uses that but then my other friend uses this other platform like what's the best the best thing is

working it out for yourself from the first of march 2023 so this is like going back nearly 12 months we did an episode back to basics of investing which i think is a good one for everybody to listen to won't explain that one because it's actually pretty self-explanatory what we actually go through in that episode. And then from the 5th of April, 2023, we did an episode called investing on a low income. And that one I have slid in there because I think it's really important to, I guess, preface that you don't need to have a lot of money to start your investing journey. In fact, there are investing platforms now that let you invest with as little as one cent. Love it. And I don't think investing can get more accessible than that, especially,

So right now I'm talking about Sharesies as a platform, not a paid mention. Obviously I work with them. I just like talking about them. But if you use the code SOTMVEC, get free $10. That is so good. That's a money win. And then you can invest with as little as one cent. You could buy so many shares and have a double and it didn't even cost you a thing. Money win. I did notice you dropped the pun after your first investing episode, which I appreciate. I hope that this episode goes out with a pun. I just got really boring.

Yeah, that's okay. She got boring. do you want to know why why I need to also make these episodes findable for the people that are sure that like so many times I'd be like sitting down really trying to think about like how to paraphrase another one of Beyonce's songs to make it fit into my title and I was like yeah I guess it's like important but if you want to look at that punny one listen to your risk profile works because you might type in risk profile she's on the money because that's what you want to learn but if I've gone too rogue, you're not going to find the content. So I went a little bit more basic. I promise I didn't lose my spark. I actually just thought it might be more helpful for

listeners. Totally. Or if you're looking for a Beyonce song, you might stumble across this and it will change your life. But anyway. Exactly. After the break, we are going to give you six steps to take to create your investment strategy. But first let's talk mindset because that really is often the biggest hurdle. Yeah. And like you probably heard me talk about it before, before I was a financial advisor, I worked in psychology. I have two psychology degrees. When I got out of school, I didn't want to not go to university, started something that I obviously ended up not loving as much, but now adore because at the end of the day, to me, money is inherently emotional. It is inherently about your psychology and not actually that much about maths.

Right. Like at the end of the day, it's your thoughts, your feelings, your beliefs, and your behaviours around money, it's actually not got a lot to do with like how well you can add up the numbers or how hard you work. Because some of the hardest workers we know, Bec, fritter away all of their money. And then some people that we know on really low incomes are the best investors that I've ever met, right? So it's actually got not a lot to do with your finance literacy when it comes to the numbers, but more around your literacy when it comes to understanding you and why and when and where and how. So I would say mindset is truly the

cornerstone when it comes to creating an investment strategy. And it's often the biggest hurdle for us to face because it's hard. The challenge lies in the psychological barriers that we actually build around money, whether we know we're doing it or not. So fear of the unknown, the anxiety of potential losses and the overwhelming feeling that investing is reserved for the financially elite Bec. We've grown up in a culture that doesn't always encourage open conversations about money and as a result, many of us approach investing with a sense of trepidation. Additionally, the fear of making the wrong choice can be absolutely paralyzing. However, it's crucial to reframe our mindset and view investing as a tool for financial empowerment and long-term growth.

Bec, if we're addressing these mental roadblocks, we can actually open ourselves up to a world of investment possibilities, as lame as that sounds. And we can take really confident strides towards our financial goals. And at the end of the day, I think every single person in our community and even sitting at this table is going to be like, yeah, well, that's kind of what I want. Like, I do want to be confident with money. I do want to be like empowered for the future and have long-term growth and, you know, not be absolutely screwed when it comes to money in my older age, right? Like that's inherently what we want. But remember, it's not actually about where you start. It's about taking the first step with intention and purpose because we're all going to start

at different places. You are starting at a different place than I am. And if you start comparing yourself to me, where do we get? You're then comparing yourself to an ex-financial advisor. And obviously, I would love to think that I've got it pretty sorted out, Bec, whereas you've not done that. And that's okay. But we need to kind of put our blinkers on, as I say, all the time and just look at our

journey and our pathway and celebrate our successes. Whoa, that is powerful. You should be a motivational speaker. Oh, I try on this podcast. Very, very good at that. I'm feeling very empowered. I actually want to talk about financial literacy, not just motivating people. Well, you're doing very, very good at both.

I'm glad you're feeling motivated. Okay, so V, I'm going to make some statements and I'd love you to respond to them. Is that okay? Of course. It's a bit of a game. It's a game. Okay, so how about this one? I'm too broke to invest.

Lies. It's a very common misconception that you need a super substantial amount of money to start investing. As I said before, investing was often seen as reserved for the financially elite. And that's a joke. Absolutely, it is not. It's all fair in love and war nowadays. Anyone can get in on it. You don't need to be rolling in cash to start your investment journey. The beauty of investing is that it's adaptable to various financial situations. Even if you feel like your budget is really tight, there are actually ways to start small. With as little is literally one cent you can make your initial move in the investing game. Platforms like

micro-investing platforms make it also really easy to dip your toes into the market without breaking your bank, but also without doing too much analysis paralysis. Often micro-investing platforms, and the two that are most common in our community or most popular are Spaceship and Raise. Both of those are different platforms. Go and listen to that episode on different kinds of investing platforms from the 4th of May 2022. And I talk about those in detail, but it's honestly not about the size of your initial investment. I know that you might want to go, but V, like if I start, I really want to start strong. Totally. Like I totally get that. But the longer you put it off, the less strong your position is to start. Like I would say a stronger position is starting

today with $5 and going, I'm going to save my first 500 and then make a move. True. Because while you're saving, you could be growing that. Exactly, learning and growing and giving yourself a financial education on investing, right? Like you could be learning over this entire time. It's about cultivating a habit to me of consistently investing over time instead of going, I'll invest when I have more money. And it's so easy to put it off by saying that, right? So regardless of your current financial status, there's honestly always room to kickstart your investment journey and work towards your financial goals. I love that.

That's so true. So, Deciphered, are you too broke to invest? No. Okay. Never. You didn't sound so confident. Maybe we need to keep this podcast going. Yeah, that's true.

Okay, how about this one? Yep. I don't have time to invest. All right. What are you so busy with? Well, I'm thinking, and this could be wrong, and this is something you have said in the past, but, you know, a lot of people think that you have to play the market

and react quickly if your investments aren't doing well, And so I feel like it's kind of time consuming to be watching and waiting and predicting and thinking and all that kind of stuff. I mean, I'm not making you become a day trader, Beth. Right. Successful investing does not demand a significant time commitment. And as I said before, you don't need to be playing the market like a day trader. In fact, research tells us that you're more likely to lose the most money doing that when it comes to investment strategies. That is the investment strategy that is going to shoot you in the foot the quickest. So developing a thoughtful and well-structured investment plan, I would say is key. And it does require some time. Like you're

going to have to invest upfront by setting clear goals and really choosing investments that are aligned to these goals and objectives you have. You can actually minimize the need for consistent oversight. A couple of weeks ago, Bec, you and I were talking about the difference between an ETF and a direct share. And I was like, well, how much involvement do you want? And you were like I would really like to buy an exchange traded fund. I want somebody else to kind of do the overseeing. Like I don't want to be in and out of the market all the time. Like I don't know how to make those decisions, but that's why different asset classes exist for different people. So long-term investing, it often involves a strategy called buy and hold. So that's where

you invest with the expectation that your investment assets are going to increase in value over time. You're not going to be a day trader. I feel like the movie, The Wolf of Wall Street and similar movies like The Big Short have made it look like you have to be consistently in it to win it. Yeah, they really glamorized it. Yeah, but also made it look so confusing. Yes, totally. That is exactly how mediocre middle-aged white investment bankers want you to see it. Sure. Like that's how they want it. It's so complicated. Yeah, it's so hard. Like, oh, you couldn't do this yourself. You're just a little girl. Yes. Just a little girl. What would you know? I'm seeing some patterns here. I'm seeing some patterns here. We're little girls

who know everything. Yeah. Slay, sit down, Barry. So while it is essential to periodically review your portfolio, don't get me wrong, knee-jerk reactions to short-term fluctuations, I would say are things that we need to discourage. Like if you see your portfolio go slightly down, we don't want to just sell out because it looks scary. We need to zoom out. And how many times have I said, when in doubt, zoom out. Look at the bigger picture. There will be a reason for that, Beck. So by adopting, I would say, a disciplined and patient approach, you're able to balance your investment strategy with the demands of your busy schedule, which is often drinking sparkling water at the pub. Yes. Which is honestly really important. It's very important. But that's

why we want to choose an investment strategy that works for your lifestyle, right? Doesn't want to be a day trader. Tick. Remember, it's actually about creating a plan that aligns to your life, Bec. Not tethering you to, I guess, the fast-paced world of day trading, which kind of looks sexy and it's actually a bit of a joke. Like, I'm not saying that day traders are jokes. I need to like back out of that a little bit because some people might come for me and that's fine. But it's not the normal way to invest for long-term gains. It carries so much risk that that's why I kind of go, well, if you're listening to this episode about how to create your investment strategy, I can almost guarantee that day trading is completely off the table because you don't

have the experience yet to even consider what day trading might look like. So, I guess you're investing for the long term. Again, if in doubt, what are you going to do? Zoom out. Hey! Okay, what about this one? I'm ready. I'm afraid to lose money. I get it. I don't want to lose my money either. Yeah. Do you really think that I want to lose all my money? I'm the most conservative girl you've ever met. Like everything's in cash, not cash. I'm an investor, but I think the fear of losing money is such a common concern, but it's super critical that you understand that investing is not a guaranteed pathway to losing all your money. It's not gambling. And I think that if you don't have a good level of financial literacy to understand that you assume it's gambling and

it might be written into your money story that you think it's gambling because your parents or your guardians or people around you growing up had that mentality and go, oh, that's too risky, Bec, don't do that. And you go, yeah, no worries, noted. Never going to talk about it again. But like, you just assume that's actually true. When in fact, historically, the share market has shown a tendency to trend upwards over the long term. And if we look at the Australian share market, if you take any period that the ASX has existed, and you go, all right, I'm going to take this 30 year chunk or that 30 year chunk. Nobody, if they've been invested for more than 30 years on the ASX has ever lost money, Bec. That's pretty, pretty powerful. So if you're particularly risk

averse, I get it. You can obviously opt for a more conservative portfolio that includes assets that have lower volatility. So then diversification, we've talked about spreading your investments across different asset classes. So as you said before, are you all in cash? Would Bec 12 months ago have said something like that. I really don't think you would have. That's so true. Like, oh, have you got it all in cash? I would never have known that that was a thing. Who is she? Who is she? She's a glowed up woman. Oh my goodness. But I think it's really important to go, all right, well, I've diversified. I do have some cash. I do have some shares. You know, you might have a bond. It's all going to depend on what your portfolio tolerance is. And so I

think it's really important to, you know, remember that. And obviously the more diversified you are, the more you can increase the likelihood of achieving positive returns over time. I also want you to remember before I move on from this part of the conversation that avoiding investing altogether, it doesn't stop you from, I guess, being exposed to financial risks. So you do actually need to take an informed approach that can lead to wealth accumulation and financial growth. Because if you leave your money in cash right now, Bec, I wrote about this in The Age the other week, the average savings account is returning anywhere between three and a half and 6%. But our rate of inflation right now is still sitting above 7%. So if you look at

those two numbers, inflation is eating away at your cash. And even if you are making some money in your savings account, over the long term, you're going backwards. Right. Terrifying. Yeah, that is actually very, very scary. It's not good. Yeah, not good. How about this one? Oh, you've got more. I do have a couple more. How many more? Well, look, I'm going to do two more. You've got two. Okay. Is that okay with you? That's so fine. Because I feel like this is just an ongoing argument. You're like, here's a statement. And I'm like, sit down. What about this? I don't know why I'm trying to prove you wrong so badly, but here we go. I like that that's the strategy you've taken this week. Okay. So what if I say it's too late? I've already missed the

boat on investing. I'll get the jet ski. It's all good. At the end of the day, the best time to invest was 30 years ago. The second best time to invest is today. It is never, ever, ever too late to start your investing journey. You can feel behind. Like I totally get that. And we probably should acknowledge that because if I'm talking about my portfolio, you'd be like, well, you've had such good gains. I'm not going to get those ones. No, you're not. Get the next ones that I'm going to be in on then. It's kind of like going surfing and you arrive at the beach and your friends are talking about these sick waves that they've caught and you're like, oh, okay, well, maybe I'll go home because I'm not going to catch those waves. There's more waves, aren't there,

back. Totally. Exactly. I don't surf, but that was, I feel like a good analogy. That's a really good analogy for a non-surfer. Thank you. Is it that obvious? I feel like the notion that you've missed the boat is just one of the biggest misconceptions in investing. In reality, the investment landscape, it's really dynamic. It's always changing and the opportunities ahead still exist regardless of where on that journey you have personally started. So time in the market is very much more important than timing the market. How many times have I said verbatim, I'd be a really rich woman if I could time the market back? At least a thousand times.

A billion, a billion times. A billion times even. Yeah, I'd make so much money if people gave me a dollar every time I said that. That would be a good investment if anyone wants to DM me some kish. If anyone wants to. But historically, trends have shown that consistent long-term investing can yield very good results. Whether you're in your 20s or your 30s or you're listening to this podcast and you're like, I've never invested and I'm in my 60s. Great. Let's start. Let's go. I'm ready.

You're ready. There are strategies to actually tailor your investments to your unique goals and the time horizon that you have. And the key is to actually just start as soon as possible. No such thing as missing out. We're getting on the train today. There's always another one coming. So stay committed to your plan and then let the power of compounding work in your favor. So I guess we need to just throw out the idea that you've missed out because your financial journey, Bec, it can still set surf. I don't know if that works. It can still catch a wave.

I was trying to think about something that would make it ocean inspired. But there are plenty of ports along the way. Ah, you did manage to get a sea. I did, right? It's a bit of a sea reference. Great job. You're welcome. I think that also applies to literally everything.

If you feel like it's too late to start doing something, it's like best time to start was 20 years ago. Second best time is literally right now. Yeah, get it, Queen. So, last one. What if I say I don't know where to start? That's a good question after I say that the best time to start is now. Yeah, so I was not actually born with an understanding of the share market. Crazy, right?

You didn't come out of the womb. No, my dad's an accountant and I was born on the 30th of June, so you might assume that I did just walk out of the womb with a calculator in my hand. The old rules are up. But I didn't. Said that wrong. So I think it's completely normal to feel unsure because when I started studying this, this was all consuming and overwhelming for me. And now I'm like, oh, this is like a second

language. I have learnt the language you have not, Bec. So how do I expect you to speak it if you haven't started at the basics and at the fundamentals? If you don't know where to start, that is actually more normal than knowing where to start. Because if you do know where to start, what the hell? Why are you listening to this podcast? Like you might have already started and you just really like our podcast, in which case, thank you. Please stay. We love you. but you're not alone in that sentiment the investment world as i said can be really overwhelming with its array of options and jargon and mediocre middle-aged white men trying to make you think that this is more complicated than it is to justify their jobs cute from them but the

good news is that there are resources and support available to guide you through this process have you heard of this podcast right it's called she's on the money i think i've heard of it yeah So I would begin with their content, but begin by educating yourself. You don't need to jump into a platform. You don't need to jump into putting your money where your mouth is, but understand what platforms exist. Understand that there are heaps of podcasts and articles, including obviously our episode, Back to Basics, which we mentioned before, that break down the essentials. Take small steps and consider using micro-investing platforms as like a little way to dip your toes into the water and get a hands-on understanding and education

that isn't going to cost you much in what investment actually looks like. I would also recommend if you really want to, to see a financial professional. So whether that's a financial advisor or a mortgage broker, or even if you're just joining an online community like our She's On The Money community, it can provide really valuable insights. But the important thing is what I've been harping on about all this episode, Bec. And that is everyone starts somewhere. And the most important thing is to actually initiate that learning process. So don't let uncertainty hold you back because the path towards investing clarity actually begins with you taking a step and going, what does this look like? Like if you're always staring at the

gate and it's shut, like it's not going to make sense. You're not all of a sudden going to be like, finally, I can open the gate and see what's beyond. But you actually just have to open the damn gate, Bec. Totally. We need to fight through that analysis paralysis. Exactly. I think this is a great time to go to a really quick break. Need a nap. Great. Let's do it. And we'll see you guys on the flip side. I'm ready. Welcome back, everyone. So we are talking about how to create your investment strategy. I feel like it's high time we get to the... You're like, give me an investment strategy. I mean, I'm ready. I don't know if you're ready. Do you feel emotionally physically ready I mean physically no I have a very short breath but I feel like

investment strategy is one of my favorite things to build and obviously I can't sit down with each and every single one of you to build you your own I wish I could maybe one day there's an app maybe although I did look into it apps are very expensive oh yeah okay so till then you get that podcast. So I would like to teach you how to create an investment strategy. So creating an investment strategy, it involves a lot of thoughtful steps, right? So you've got to know what you want before you come to writing down an investment strategy. It involves a whole heap of process to align your financial goals with your risk tolerance and your time horizon. So if I say risk tolerance and you go, V, no idea what that is, you're going to go back to the 10th of March

2021 and listen to the episode, Listen at Your Own Risk Profile, because that is going to tell you exactly what a risk profile is. It takes you through all the steps of understanding what your risk profile can be. And there are so many online that you can download and do. So you're going to go do that. I have listed out a step-by-step guide below. Keep listening to hopefully help you kickstart your investment journey, which I already low-key know is helpful. So let's go in. So first things first, I want you to conduct a really thorough review of your budget. We're going to look at your debts, your asset, your income, and your expenses. That's not very sexy, I know, but this is going to provide you a clear understanding

of your financial position and where you're currently sitting. And we need to know that if you're going to start investing. Because how on earth, Bec, are we creating a plan to get to somewhere else if you don't know where you're starting from? Very good call. It's daunting. Yes, it's overwhelming. Yes, nobody really wants to do it.

but we're approaching this with no judgment. We're just going to look at it as what's going in and what's coming out of your bank account. It's going to tell you where your start line is and ultimately help you get as far ahead as possible. So you need to do it, even if you think it's the most boring thing in the world. I know I back that. It's boring. I get it. But sometimes we have to do these things called hygiene factors. And that's those things that you just have to do to tick a box and go, you know what? I did it. If it makes it easier, go get a nice cup of tea, a soda water, a little cheeky wine. I don't actually care. Yeah, Cornetto. You've leveled this up. Yeah, I don't know what made me think Cornetto and tax or sorry, Cornetto and budget goes hand in hand.

That if I got you a Cornetto, you'd do your budget. I think so. Off to Coles after this, sit down. Just wait here. The next thing we're going to do is set concrete financial goals. So I want you to divide them into short, medium and long term objectives. I rant about this all the time because this is actually how I've broken up my money masterclass because to me it is the best way to manage financial goals because we need to understand what needs to happen ASAP like in the next two years but also what does like 10 years 15 years look like because we can't have one without the other because more often than not if we set a 10-year goal but we also have a big two-year goal that big two-year goal if it's prioritized over the 10-year goal compromises

the 10-year goal and then things just get blown out and things don't happen. And then you look back and go, oh my God, what happened? Like I didn't actually get to achieve any of the goals I set. And that's obviously disheartening. And that's not what we want. We want to make sure that we go, oh, we're taking everything into consideration. You might actually have a long-term goal that you completely shelved. You're like, I have no money for that right now. It's still a goal, but you know why you've put it to the side, right? Like we know what it is. And this really helps in choosing the right investment for each goal. Because if you're planning on investing, and let's go back to you loving to go to Meredith. I know Meredith is this year, right? Like it's

less than 12 months away. So I'm not going to let you invest that money in the short term, but you might have a really long term goal of buying your own house. And you go, V, that's not going to happen in the next, you know, 10 plus years. I might go, well, maybe we could invest that money. So we really need to understand our timeframes on our goals. So we know what we can do with that money. Does that make sense? Great point. All right. So the third thing we are going to do is look into the world of asset classes. And you showed me before that you knew exactly what you were talking about. Yes. So we're going to talk about shares and property and bonds and cash. And we have spoken about the different types of asset classes before on their podcast.

But what I want you to do is also conduct detailed research. So what you're going to do is literally use Google and you're going to look up, you know, factors like expected returns and timeframes and how quickly you can get rid of that and what tax implications exist for those asset classes. We've done so many episodes on what different asset classes exist. And, you know, Beck, a couple of weeks ago, you and I were talking about the differences between ETFs and shares and managed funds and what that looks like. But back to the understanding your risk profile, that's going to be critical when it comes to actually investing and getting yourself off the ground. Because your risk profile is going to guide what you are comfortable taking on. So if

you've not heard it, please just go back and listen to that episode. Your risk profile is going to really hone down what's accessible to you as well. So if you've got that feeling of analysis paralysis, your risk profile is going to be like, Bec, you're real conservative. We're looking at cash or an ETF basically. Right. And you go, oh, that's helpful because I've just wiped everything else off the table. Gotcha. Your risk profile can do that for you. V, I'm not going to lie. This all sounds kind of boring. Just call it out, Isbep. You know, I wonder if we get to a fun part eventually. Oh, you want to know how to build your portfolio? Yeah, yeah, yeah. Can I buy some stuff yet? Or like, am I still just writing down my goals? Yeah. Okay. So now we're at the

fun bit, right? Which is where we actually get to build our portfolio because we have looked at tailoring our goals. We've looked at our timeframe. We understand our risk tolerance and what asset classes we could potentially buy. We now know because we've listened to all these other episodes that diversifying across lots of different asset classes helps us to protect against potential losses. So it's actually time to do the fun thing and roll up your sleeve, assess your financial landscape and let's set sail. She loves the sea related puns. Ocean related. Ocean related. But we're going to set sail on the path to creating your own investment strategy. So for short-term goals, as I dropped before, maybe consider investments like savings accounts that are a

little bit more conservative. Maybe you're looking at a term deposit or a government bond. These investments are lower risk because they're less likely to fall in value and you can access your money still. For the longer term goals, like I gave the example of you buying a house in 10 plus years, investments that have higher returns, like maybe shares or property, can actually be a little bit more suitable for these goals and for that timeframe. So these investments are higher risk, but you're investing long term, which rides out any short term falls in value, which is really sexy. So it's important to make sure that you diversify your portfolio across lots of different asset classes and within each asset class. But obviously, Bec, you've said before, I just want

an ETF. You don't have to worry too much because there's automatic diversification. But this is going to protect you against losing too much. But once you're at this point, Bec, we're going shopping. You know exactly what you want. You know the timeframe of your investment. You know how much you can afford because we did our budget. We did our cash flow. We looked at the different asset classes, you picked one. Now we just have to go to the supermarket and pick which one we're buying. Fun. It's like the share market is kind of like Kohl's and you go down to Kohl's, but there's lots and lots of different products in Kohl's, but you've just created a recipe. So you're going to go in and go, all right, well, you know, I'm making dumplings at home. I need

some flour. You're going to go to the flour section and look at the different flours. Flour is your ETF. So you're going to look at the different ETFs and pick one that aligns to your budget, aligns to your goals and your values. Like if you're gluten free, you're going to pick a gluten free flour, right? Sure. But that could be true of if you're going to the shop and going, well, I want an ETF, but it needs to be ethical. Sure. It doesn't have to be complicated. That makes so much sense. And that, that sounds like my kind of fun. Yeah. Cause you like shopping. I do. I do too much. And you also really like dumplings. So I felt like that would work.

That's true. Okay. For me anyway, that's probably a good place to leave it. Do you have any final thoughts? We are absolutely done. Great. I mean, the last thing I do want to say, though, is please, friends, remember to start small. Micro-investment platforms and platforms that enable you to invest with small, small amounts of money to begin with can be fantastic for learning. I also want you to be really kind to yourself because this is a journey and mistakes are just stepping stones to successes, right? Like, I have failed so many times, but the thing that has meant that I can be successful is I get up, I dust myself off and go, wow, I learned from that. I'm not going to do that again. It's like touching an electric fence. You're not going to do it twice, are you?

I have done, but yes, I agree. That was a choice though, wasn't it, Bec? A weird one, but we'll talk about that later. We'll talk about that off air. But most importantly, when it comes to investing, when in doubt, my friends zoom out. The road to financial empowerment, honestly, it's filled with twists and turns. It's never, ever linear, but each and every single one is really important for growth. So let's just embrace the journey for what it is. It's not about the destination. We're learning along the way. Stay curious, my friends, and know that you're taking an epic step towards securing your

financial future, which I'm so excited about. So until then, we love you. Have fun. Please let me know if you've just started investing. Absolutely. And just a reminder that the episodes that we mentioned today are in the show notes. Yeah, because we know that you didn't have a pen you're listening to a podcast in the car bye bye 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

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