She's On The Money - She's on the (my millennial) money Q&A

Episode Date: December 1, 2020

Are you ready? The mum and dad of finance have come together to answer all your burning finance questions. This week Glen James from my millennial money kicks Georgia out of her hot seat and our producer (and KIIS FM Summer Breakfast Radio Host) Ryan Jon stepped in to facilitate the chat. Buckle down friends, this one was a goodie.Love the podcast sick and want more SOTM? We had a feeling that was the case. Join our Facebook page to share your money wins and money confessions, follow us on Insta for daily inspo to keep you on track and absolutely subscribe to our newsletter, the written recap of the pod’s key takeaways, including some bonus bits you won’t want to miss. Finally, if you’re in a money mess and need help untangling the muddle - we’ve got you sorted – simply record your question and send it through to us at [e-mail] and you may just end up on the podcast! Your hosts are Georgia King and Victoria Devine. 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. Victoria Devine is an Authorised Representative of Australia Pacific Funds Management Proprietary Limited ABN 34 132 463 257 - AFSL 339151.See omnystudio.com/listener for privacy information.

She's on the money. She's on the money. Hello and welcome to She's on the money, the podcast for millennials who want financial freedom. As you guys know, I'm financial advisor, Victoria Devine, and this week we're mixing the episode up a little bit by inviting my friend and fellow money podcaster, Glenn James from My Millennial Money on the show. Hello, Glenn.

Ahoy, hoy. Hello, Victoria, and hello to all of your listeners. Hello, friends. Today on the show, we're going to be addressing some of your most asked questions, and to do that, we've actually got our producer and, on another note, Summer Breakfast Radio host on Kiss FM, Brian John, to ask Glenn and I the hardest-hitting ones. You like embarrassing me, don't you? I do.

It's actually my favorite thing in this entire world, but it seems quite reciprocal. Okay. Before we get there, though, in True She's on the Money Style, we are going to be talking through our money wins and confessions from this week. And Glenn, because you are our guest, you get to go first. What have you got for us? Well, when you said to come on the podcast and have a money win, I'm like, oh, geez, I don't know if I've got one this week.

Everybody has theirs. I know. It was last Friday night. I kid you not. I was going to a mate's house for a barbecue, went to Coles. They had a pack of pre-marinated meat, you know, wings and drums and all that stuff. and it had like discounted to sell because obviously it was going out of date in about 10 minutes.

But you were going to be using it that night, right? Exactly. So it was $13 down to $11, went up to the counter and they scanned it and they said, we can't sell it to you because it's best before today. And I said, mate, it's going on the barbecue in about 10 minutes. I'm happy to still buy it. And they got one guy, they couldn't work it out. The next person came and I said, hey, I'll just take it if you want.

And they said, yeah, no worries, take it. Oh my gosh, that's an epic money win. And this is like, it's so bizarre because most of us who have a job and have an income, $11, it's not changing our world too much. No, but it's exciting. I was so excited. I was bouncing out to my car and I'm like, I've got a money win to do this podcast.

I need to ask though, it's only really a money win if you ate it and didn't get sick because if it was in fact too old, then it's probably not a win. So how was it? Yeah, what can I say? I was in hospital for three days on a jet car, but I've still got my $11. because health care in Australia is free.

Ryan, do you have a money win or confession that might impress us just as much? Certainly won't impress you. I've actually bought a confession. Oh, okay. No, I like those just as much, if I'm being honest. Yeah, so I've just moved into a house in Richmond, down the road. You're fancy, yes.

Thank you. And I haven't moved all the utensils. I've got stuff for the kitchen and stuff yet. So one of the risks of moving to the city was me being scared about spending too much on Uber Eats. It is a real risk. Yeah, because I live out in the country, so there's no Uber Eats out there. And I promised Bridget I wouldn't spend much on Uber Eats,

but because I had no plates and cutlery of my own, I had it on Thursday night, Friday night, Saturday night and Sunday. Okay, so that's probably a little bit irresponsible. Do we feel a bit guilty ordering from Uber Eats? Because I do, knowing that the retail is getting probably slammed with their sliced Uber Eats. I do. And I have recently been using a company called DoorDash because I feel better because a higher percentage of their commission or whatever it is goes to the actual like hospitality

company providing the food. So I don't know. Yeah, I think that's a legitimate concern. I do feel a little bit guilty when that happens. Also a little bit lazy when I'm, you know, ordering something from the place down the road that is like 300 meters away. So maybe we should all use Uber Eats a little less and not worry about not eating takeaway. I drove around to my local pizza shop the other night and I couldn't get a car park out the front and I almost parked back at my house. I just want to add that it's also a bit rich from Victoria Divine

to say we shouldn't get Uber Eats as much because we've hung out all day today, V, and this is the first time we've hung out and not had Uber Eats in probably the last six or seven times we've hung out together. Yeah, I'm also just going to call it out. You could have had an epic money win. that every time we order Uber Eats it's usually me ordering it and I ordered you pizza on the weekend and yeah that was a pretty good money win. Thanks for having me over on the weekend. Yeah you're

welcome. I also made some really really good margaritas guys. Recipes on my Instagram for those of you who are interested but moving on I will let you know what my money win or confession is. This week I actually have a money win for you guys. I've bought a coffee machine which is incredibly exciting. As you know, I love a good coffee and usually go to the cafe literally every single day. And I finally have my own coffee machine and it is delightful. It has those Lavazza pods. So it literally- Yeah, what did you get? I got the Smeg coffee machine with the pods and it's like the Lavazza pods and they are premium. I will let you know they also make an epic espresso martini.

Is this a paid ad? No, it's not. Like I wish they were paying me, but I would say 10 out of 10 would get again because it's so easy. And I felt like I was really worried about getting a coffee machine because the cleanup would be something I didn't want to deal with. But I'm probably going to get slammed for the fact I use pods. I was going to say, is that what they're calling it?

Coffee, is it? Yeah. Yeah. Like Glenn's a bit of a coffee connoisseur. So I kind of strategically put this on this episode because I knew I'd get slammed by him and I welcome that. Yeah, I'm launching My Millennial Coffee and I've just done all the testing. It's my own blend because categorically, you can save so much money making it at home.

Whether it's through a filter and drip and all that stuff or French press or even through the pods, categorically over the long term, if you actually want to save money and you do love your coffee, you just have a bit of an outlay and it's a bit of a cost recovery exercise. But yeah, I support anyone making coffee at home. I love that. But moving on, let's take a look at our Facebook communities. Usually we only look at the She's On The Money community, but this week we are going to look

at our community as well as your Facebook group, My Millennial Money, Glenn. So I'd love you to again start. Did you have any posts that really stood out to you this week? I totally did. And it actually made me a bit emotional in terms of the impact that Glenn, who's a bogan on the central coast that likes fords had on somebody from starting my millennial money but that's really sweet what is it emily and she might even be in your community but whatever all good emily rodman flashback to september 18 living paycheck to paycheck and 30 grand in personal

car loan debt and stressed discovering this podcast listening to the bat catalog and getting motivated plus all the amazing people in the m3 community flash forward to yesterday officially bad debt free paid off 30 grand in debt in just over two years five years early and have three months emergency funds set in place so excited for what the future holds and knowing that i've achieved this without sacrificing fortnightly pizza that's very important thank you so much glenn and the team for helping me get my foundations and mindset sorted it feels amazing how epic is that i love that and i couldn't love it anymore like how exciting is it when your community they don't just have like one money win they've literally changed their money story like

that stuff hits hard. It's so amazing. Like you can guarantee her income would probably not be, and I'm being presumptuous, but her income probably wouldn't be over a hundred grand. She's just been intentional. She's been dialed in and she's gone and got it. I actually love that. And I think that it's so nice to share money wins like that, because it's also motivational for the communities at large, because it's so possible if you just put your nose down and get it done. Like these people are doing it. If you're in this situation, you absolutely can too and also thank you for trusting us enough to share that story like money is not the easiest thing to talk about but then to go on a public platform i mean semi-private

let's be honest public platform and talk to us about exactly what you've done and what you've achieved that's epic and i love it yeah it's so good so thank you emily thank you emily ryan john have you got something from our community i really doubt it'll be as self-promotional as glenn's was but that's okay. Oh, piss off. I actually feel a bit weird now because that was so motivational, inspiring. Mine is quite the opposite. It's from, she's on the money Instagram and her name is Chaisley, I believe. Chaisley, awesome. She says, little win, but exciting nonetheless. I won the McDonald's monopoly voucher and it covered my whole meal. Nothing like some free food for a pick me up. Now, the reason I love this is because I've actually

never heard of anyone ever actually winning the mcdonald's monopoly i would have to agree i always hear you see the ads it comes out every year you collect the little things you oh if i just get the other one in it but i've never actually known anyone to actually win it so chasely well done on your free maccas meal in a monopoly contest i love that and if anybody in our community has actually won anything more than that on a mcdonald's monopoly game please post it in our community i want to see it who gets those jet skis yeah who got the jet ski all right v what's your favorite one this week so my community shout out again not as good as glenn's i believe that my millennial money's community has won out here but mine's really wholesome and it's from our

friend lauren and she's posted and she said so i wanted to share a little story with you i was talking to my 83 year old grandfather about starting a little side hustle and he mentioned maybe he should make an instagram for his art paintings and maybe he could sell them she said I know right 83 years old and now up on Instagram I was thrilled I think he is so talented but he always doubts himself so the confidence I got from She's On The Money transferred over to my 83 year old grandfather here's a sample of his work and she's posted one of his absolutely stunning paintings and she said she's very happy if you guys would follow his Instagram which is pop art 1937 she said have a wonderful day and honestly it's the most wholesome thing I've seen

in our community in a really long time. So I know we say don't promote yourselves in the Facebook group, but I just felt like I'd let that one through because it was too cute not to share. That's so cute. That's so cool. All right. Now, moving into the main chat of today's show, a question and answer with arguably your favorite finance people, Glenn and I. Ryan, you're going to run the show from here on in. What is our first question? All right. Question one is from Brianna. She said, how do you balance the risk of investing and in brackets losing it all or not investing and therefore not building wealth so how do you

get that balance right of wanting to invest to build wealth but also not wanting to lose it all as well let's start with you glenn there's some misconceptions in that statement and that's okay because we've just got to learn people often say i'll lose it all if i invest now we just have to firstly unpack and work out what investing actually is and at its purest form if you believe company like Woolworths is a business that has a long track record that has growth potential in the way that people will always need groceries and we buy a share in that business well that's not that risky for the long term however if you think well I'm not going to invest money for growth and leave it in cash you know the economist listening will probably say well that's not a

good thing either because inflation will actually erode the buying power of your money so at two ends of the spectrum here we've got the risk of doing nothing over the long term and also the risk of potential downside at the extremities now sure if you purchased a new type of cryptocurrency that no one ever heard of yeah you're pretty much kissing your money away but if you bring it back to an everyday basket of companies that are well run and they've got a long track record that's not as risky as a new cryptocurrency so it's just understanding the risk spectrum and with investing and Victoria, you'd probably agree that the short term in the investing world is probably under five to seven years. Longer term is over five to seven years, whatever that is in your

situation. So you might go, oh, I don't need the money for six years. Well, there's a risk that I leave it in cash and it gets 1.5% in my savings account for the next six years. Well, to me, that's a risk that I don't want to take. So there's a risk of opportunity cost of the money not being invested in a diversified portfolio. So I think if I don't need the money within the next six years or seven years, I'm going to invest that because the risk is too great not to invest it. Do you think it's a lack of education or maybe just what makes headlines is those big, juicy, spectacular fails? But I was actually saying to V earlier, there is this misconception of if I put some money in investments, it could all be gone. Why is that that people think that

way yeah because there is just i honestly think we just get told by our family members uh you hear their horror stories like your uncle's friend had this horror story and he lost it all in shares no no he bought into a company that had no track record and they were crap at running it uh and that that transfers over to buying shares is risky so i think if you understand what you're investing is you can actually start to quantify some of that risk. But I think the first thing, anyone listening who actually works a job and gets paid superannuation, you're an investor because you've got a super account that has money invested in the market. And I would call your super fund, you know, on your lunch break one day, take 20 minutes, call your super fund and get them

to explain to you how your money is invested in their super fund. Number one, you pay them a bloody fee so they can work for it but number two it's a it's an easy way for you to start to understand investing because you already have money that's invested that's a really good point and furthering that i think it's really important to understand investing as a whole because once you start to understand the concept of investment and the fact that a good investment portfolio is really well diversified you end up with a lot of companies that look like woolworths like what you were talking about before, Glenn, that, you know, if Woolworths for some reason isn't doing so well, maybe Coles is, and maybe something else is going really well. So it's all about managing

risk by not putting all of your eggs in one basket. So for me, these kinds of questions, and this is not to stereotype, but these kinds of questions often come from people who haven't spent enough time yet understanding what the share market is made up of. Because as you were saying before you're right uncle uncle Glenn put money into a stock and lost everything and it's like well actually if uncle Glenn had put his money in a well-diversified share portfolio you know 50 years ago he'd be in a banging position today and I think that that's what people forget to you know forget to take into consideration and something else I hear a lot is oh my parents were investors and they lost everything during the GFC and you kind of go okay but have you actually taken the

time to ask them what they were invested in and how they lost money. And more often than not, when you start digging, you find they lost money because they pulled all of their shares out when they tanked, or they lost money because they were invested in something that actually wasn't going to perform well over the long term, or they were taking on more risk than they should have for their risk profile. So I think if you as an individual start to learn what a risk profile actually means and know what that means for you individually, as you were saying before, Glenn, how long are you investing for? How tenacious are you? Are you willing to take on that risk or are you in a position where you just want really conservative investments, in which case

maybe you do just want to keep things in cash. Like there's nothing wrong with that. It's all about understanding your opportunities. Let's go to Nicole because it's sort of on the same topic. She said, obviously with COVID and everything happening this year, the stock market has been all over the place. So when would be the best time to buy shares, keeping in mind how volatile it's been? Do we wait until COVID's over? What are we getting now? Is there even an answer to this question? V, we'll get you to go first on this one. I think that there's a very good quote about this and it is, be greedy when other people are fearful and fearful when other people are greedy. And that was by the OG Warren Buffett. But I think it's really important to understand

that the market being off isn't a negative thing for new investors. I'm not saying go and buy dodgy stocks and hope they recover. But right now, there are potentially a number of really great assets that are currently being undervalued. So if you're going to purchase shares, now might be a really good time to get on it while it is off. In saying that, there are also a number of shares that are really performing well through this period. Like if you look at the performance of, I wouldn't say these are conservative investments by any stretch of the imagination, but over the last 12 months, how Tesla and Afterpay have, you know, performed. And then we look at like DocuSign and even Zoom, which we're using at the moment, their share prices have gone through the roof. So I wouldn't

say as a whole, every single share price is off, but I would say, yeah, you're right. Some parts of the share market are suffering. And the reason that they are suffering is because we've just gone through a global pandemic but that doesn't mean that that business is a bad business it just means that their share price has dipped because of the way the market is performing glenn what do you reckon about this yeah i i can only speak to what i do in my own personal life and that is i'm kind of i i invest in like a diversified pool of stocks so i use index funds i use you know managed funds and all that stuff. My whole focus with investing is focusing on spending less than what I earn and investing the rest. And then by me investing the rest, that is I've got a monthly

amount set up that goes into my portfolio every month. I've got a monthly amount set up that goes into my super every month. So I focus my energy on how much money I can shovel into good investments over the long term now the best time to buy shares uh with this coronavirus stuff uh was to go back in time yeah to to the 22nd of march that would have been 2020 which is the bottom of the correction so the market has basically recovered and don't at me to say no it hasn't it's not there but i'm gonna ask you yeah basically they're um basically it's back to where it was and that's been a result of uh the economy starting to recover off the back of the news that there will be a vaccine probably in market globally by march so to answer your question uh don't worry

too much about the what ifs and if onlys worry more about the future and how much you can put in each month or each week or week each whatever your frequency is uh because then at the end of this year, with my 12 monthly installments, I would have got the average buy price anyway. Absolutely. And this is something I talk about a lot on the podcast. So apologies to my friends listening that think I sound like a broken record, but I would be an incredibly rich woman if I could time the market. It's just not possible. So for me, it's actually about consistency and your ability to start investing. So if you are able to start investing, great. If that happened in March, fantastic you got off on a really great foot starting today starting tomorrow starting in

six months it doesn't matter when just as long as you can personally afford to be investing it's built into your budget and your cash flow and it makes sense for you to be able to do that consistently I think it's more about what's going on with you not what's going on with the markets so I think people get so caught up in oh is it a good time to invest or not whereas if you're investing regularly and consistently it shouldn't actually be about what's going on in the market but rather what you can personally commit to during that period of time only becomes a massive issue in my personal opinion if you were planning on retiring in march yeah well you just work a little bit longer now aren't you yeah sucks to be you bye all right we got one sentence to answer

these questions each okay all right got all right this question is from mckenna she said how many bank accounts do you have uh i've got my blow account which is one i've got my savings account attached to my blow account on up bank so that's like my very very short i'm sorry what did you call that account he calls it a blow account like he blows the money like it's not it's not it's not for the type of blow that you might be used to in radio so as part of the glenn james spending plan i just teach have one account and for me it's up bank and i know up bank yeah i think they're like my best friends i'm currently trying to convince them to let me do videos for them oh so i transfer 500 bucks a week to my blow account and that's the only account that's on my phone the only card

that's in my wallet and that i just blow it without my using my brain food fuel entertainment going out blow account so i've got my blow account and up bank savings account i've got my cash hub on my mortgage offset i've got my tax because i'm self-employed on my mortgage offset i've got my gifts, clothes, holidays, Christmas account on my mortgage offset. I've got my emergency fund on my offset. So, what's that? Six. I've got in my business for the podcast, I've got a business transactional account. I've got a business savings account for GST and retained earnings. And my family trust has got a bank account. That's what? Nine. I'm running out of fingers. And the 10th one, I've still got a 9G account that I have here at the studio. If I need to

send Nathan around to the shop to buy some coffee, I think that's it. We'll call it 10. You failed at the one sentence and I'm going to as well. It was one long sentence. Back off. Can I just say quickly that unfortunately no one can see this being a podcast, but seeing Glenn James hold a microphone and then count to 10 on his fingers at the same time and try and talk is hilarious. I'm basic.

I told you I'm a basic bogan. All right, Victoria, how many accounts for you? Okay, so same as Glenn, I actually follow my own budget and cash flow plan. So I have six accounts personally. I have my Cash Hub account, which when I have a mortgage one day, will be my offset. And that's where all my bills and fixed costs come out of. Then same as Glenn, biggest fan of UpBank, my weekly spending account is my UpBank card. And that's for my food, my fuel and my fun. It's also my blow money. I then transfer every single week at the end of

the week, whatever's left in that account to my emergency account. That is not the emergency account. So I literally have it labeled as the not an emergency, but it feels like an emergency account. And then I have three different savings accounts. Personally, I've got my medium to long term savings account. I've got a short term savings account for smaller goals, got an emergency fund, which I'm not currently contributing to because it's just like sitting there. And I do have about three months worth of expenses in that. I don't have three months worth of like income or savings or whatever. It is just literally three months worth of my bills and fixed costs and food money in case I ever need it.

I then have a cash account for my investment plan. I then have my business account and I have like a number of different business accounts. I won't get too detailed into that just because for each entity that I own, I've got a business account. Then I have a GST account. I have a tax account.

And then I have a general work savings account, which is for stuff like team Christmas parties and like things that I want to spend on, i.e. new microphones, stuff for the office. So how many is that? What are we up to? that was six plus like six personal and then probably five different business accounts and then on top of that my friends i have a joint account with my partner boom that's cute thank

you we try who would have guessed with the two of you guys asking that question that could have been the whole episode today we talk about glenn and victoria's bank account the most important thing that you can get right though ryan is literally your cash flow and budget if you can get on top of that you can create the life that you deserve like if you can understand where your money's coming in and where it's going like it makes a lot of sense but then also ryan you said something really important to me this morning which i don't know if you remember this but you said any good business person will be able to understand their income and their expenses like on their phone if you ask them to produce them instantly instantly and i thought that that was

really interesting because i can definitely do that and i think i i literally got it up and was like oh they're just here and i think that if you can't do that with your own personal accounts and you can't do that with your cash flow and you don't immediately know oh well actually glenn i spend 250 a week on my like blow account like i want to know that you need to know that if you're not in a position where you're empowered to you know reach for that and you're like oh maybe i spend 100 or maybe 300 or last week it was 500 because i bought a dress for a friend's thing like to me that's not good enough you're not on top of your money well enough Kerry says, how old were you when you first invested and what was it?

Oh. Let's start with you, Glenn. Can you remember? Yeah, I think I was 18 and it was a company out of Melbourne and it was something to do with the poultry pig industry and they were waiting on a government grant because they were waiting on a regulation thing and it was going to be a banger, but I think I lost my money

and now I don't really invest in single stocks. Because you had a negative experience with a chicken shop? You're the person we were talking about before. yeah basically yeah victoria divine first investment how are we okay so my first investment would have been when i was about 23 i'd wanted to invest for a really long time didn't understand it got to a point where i was like i'm gonna buy something i did my research and i bought a vanguard atf with a hundred dollars and that was my first investment that i can remember unless i invested in something earlier. I don't think I did. I think that was my first like trade and having to like

sign up to something. Tips. This is from Shelly. Tips for rental application. How do I make myself look great on paper? And is there any hidden costs or fees associated with renting? Yeah. So for me, how to look good on paper. Don't lie because if they want to call you bluff, you might be screwed when looking for rental. And I know this can be different whether you're in a capital city or you're somewhere where the rental vacancy rates are really low and you can Google that for fun in your spare time, everybody. But when it's a tight market, you might not be able to do this. However, where I grew up and where I rented my first couple of places,

I would, number one, try and organize an inspection where it was just me and the agent. And then two, if there was other people, just try and speak to the rental property manager and just ask them like, hey, it's my first property or my second property. What does the tenant want? Like, is it worth my time filling out this application if they want a family of three

with a dog where it's just me and my mate? Like, so I would just kind of take the off the record type approach if you can with the rental manager. Just be like, look, what are we looking at here? Is it worth me applying? And then build a story that way and definitely try and get an inspection with no one else so you can have that agent and really suss out the property at your own pace and all that.

Victoria, your tips for getting a rental. I like Glenn's approach, but I also think that it is really hard to have that approach. I live in the Melbourne, I would say I live within 10 kilometers of the Melbourne CBD. When I was going for my last rental property with my partner, I would turn up to rental inspections and there'd be 40 or 50 people viewing the property. And that was my preface, like it's not always possible. Yeah, absolutely. So it's not always possible.

And it is incredibly competitive where I live because there is a, I would say, shortage of really good quality properties. So the good quality properties that I wanted, so did every other mid-twenties couple and we were all competing against each other. So the way that I got an edge there was to turn up to the inspection with my rental application completely filled out, printed copies of my ID, copies of literally everything that they would ask so I could hand it to the person then and there and say here's my application it's complete on top of that I went above and beyond and some people in my Facebook community have already laughed at me for this I did a small like cover letter of who I was and who my partner was and what we did and what we were looking for

because at the end of the day the rental application might say oh Victoria's a financial advisor and this is what Victoria's partner does but that doesn't really tell you anything about you know you as a couple so it was nice to just have a cover letter and said we're looking for our first home together this is what we want to do this is how it is and then to further that we had a pet so i have a cat well i now have two cats friends i've got henry and bailey and i actually made a tiny resume for bailey so that they knew that they weren't agreeing to a nightmare cat and that he was well groomed and really nice and did the cat have its own resume he does it's in my facebook group i'm happy to repost it he has his own little resume

LinkedIn profile? Yeah literally it's like hi my name's Bailey and I'm a Tonkinese and these are the things I like and he actually had a reference from his vet and from my last rental property manager who could verify that he was a good cat and 10 hours later we had the property and my real estate agent said that's why. Well it's obviously worked but let me just put it on the record that I'll never accept any time you say to me oh sorry Ryan I'm too busy at the moment because now I know what you do with your spare time. That was like five years ago. I'm done with you.

Thank you. Question, on this whole rental application thing, I think it's about, like you said, Victoria, making the life easy for the land rental. Absolutely. And it shows that you're a good tenant. Like if you're going to put together a really beautiful application, they're probably going to assume that you're going to keep that property tidy.

But also, if you are in a different position, how can you stand out? like if it's like hey this is a rental property put on the application at the top hey we would love to apply happy to discuss a 12-month lease at the get-go or hey we really love the property it's advertised at 450 a week or whatever it is in your area happy to pay 460 yeah like just go above and beyond because me as a landlord if i had a an applicant come in and they stood out and wanted a genuine win-win i would certainly entertain that okay second part of that question was about the unexpected costs of renting. I think if we just peel back the onion a little bit

and say, look, in our budgets, we generally don't budget for things that are unexpected. We have an emergency fund. So you would budget for property insurance, not like contents insurance. You would budget for, I don't know, a removal list if you had to move out. you would budget for i don't know i don't know if there is any unexpected costs of renting and

it's fair to say that's one of the benefits of renting literally what i was about to say i think it's actually one of the benefits of renting is you know if something breaks if the hot water system in your house breaks well actually my friends that's on your landlord rosanne says do you have any tips for helping an impulse buyer in brackets my husband also how do i approach the subject with him well glenn as an impulse buyer how would you address this speaking to someone who is your partner's message through glenn so basically what i think this is kind of the premise of um how i encourage people to set up their budgets and that is back to the spending plan and having a blow account the blow account is to give the savers permission to spend so we've

allocated an amount each week, each month, or whatever it is into a separate account, you have permission to spend that if you're a saver because your life has to be in balance. You have to be, I believe, giving, saving, and spending in that kind of order and have some balance there. Now, for the impulse purchases, what I would say is having that blow account,

it can actually bring it to a front and give you that shock value of, I've only got X amount a week here that i can blow so i have to look at the impulses i have to actually consider it another thing i do in my own life i've got what we call a one percent rule and that is i don't buy anything at more than one percent of my take-home pay without sleeping on it so if you earned 80 grand a year and you had 60 grand net income your one percent is six hundred dollars you might even do half a percent make some type of rule in your life that you do not spend money without sleeping on it so that

would just kind of quarantine and cap that and i think it's just my last part of this sermon on the mount about being an impulse spender a lot of the times we spend money and we blow money and we don't make good financial progress is when we're not organized and we don't have a goal or we don't have something we're aiming for so if you're aiming to save up i'm saving five thousand dollars because I really want this new mountain bike or I'm saving $3,000 because I really want this new lounge that's going to be on sale over Christmas.

When I see something online for $80 that I don't need, and I'm speaking to me here, I will go, no, hang on. I would rather put that $80 towards my goal. So you've got an instant front of mind trade-off. So it's kind of not just one thing. It's about developing money systems and intentionality in your life

so you can wake up and spend and give and save and live intentionally. I love that. Yeah. V, do you have anything to add to that? Because that was a great answer. Yeah, like maybe you should run She's On The Money. I'll get you a wig and a pair of high heels and you can be me. Love it.

But I think everybody who listens to both of our podcasts would know that you and I are very on the same page. And so I have a similar rule and that is put 24 hours between you and your spending. so you said sleep on it and one percent I haven't done that I like that but I think any purchase that is discretionary that wasn't paying a bill that wasn't food or fuel or you know things that you actually had to spend money on just sleep on it put as much time between you and your purchase as possible 24 hours as a minimum you know if you can do a week if you can do a month that's

fantastic especially when it comes to things that are quite impulsive so we're not saying you cannot have that item which makes you want it more we're just saying you can have that item next week if you still want it yeah and i think that that plays into the difference between instant gratification and delayed gratification which puts you in a position of control so it's not saying no you can't have the item it's just saying no you can have it later and i think that that's the most important thing here is we're not saying compromise your lifestyle we're not saying you can't have these things that's bad we're just saying be really thoughtful about your purchases and create goals, you'll be in a situation where if you have shared goals as a couple,

you are more likely to commit to it. And I can probably guarantee you're not in a position where you have really clean, clear financial goals that you're working together for. Because if you did, you'd be in a position where you weren't worrying about your partner's blow money. Yeah. Can I add to that? Because that's so good. It's just the whole sleeping on it, the whole being planned the reason this came home to roost to me a few years ago before i developed kind of the spending plan that i'm doing is because i got home one night from shopping in the city and i had a 1200 apple watch that i woke up that morning not planning and that's a big problem for a couple of reasons number one it was an impulse purchase number two it was freaking

over a thousand dollars and that's epic yeah and number three why did i have as a spender that much money on me in my accounts anyway. And that's why I've got my little iPhone here and my little tap of pay thing. I don't have credit cards or any of that stuff. I don't have access to just mindlessly blow $1,000. Yeah, and that's really important, limiting your access if you're in a position

where you know that's something that you're very likely to do. All right, Chloe Young has a question about side hustles and small businesses. And it's sort of two questions. So- Is Chloe Young that graphics designer that we both are in love with the work of, Glenn?

I'm not sure. I feel like it might be. When I hired our graphic designer here, she was too good for what I needed. Yeah, I know. I think that's who we're talking about. Chloe, the graphic designer who has a side hustle who's literally too good for us. Yeah, well, and Chloe, if you are listening, thank you. I needed a bit more of an all-rounder that could do some other marketing stuff.

Glenn's recruitment feedback. Glenn, you should have been providing that feedback during the recruitment process. but what was her question Ryan John? She asks what tips do you give someone who's starting a side hustle or a small business so maybe just from each of you one really important thing to keep in mind or to check off or to you know have front of mind before you're starting and also I'm going to add one what's the opposite what is something that people should definitely not do so we'll start with you Vy. Okay so the first thing for me would be create a budget for your business and do as much stuff before you actually launch your side hustle as possible. So build your

website for free, you know, organize how you're going to register it, make a plan, make a business plan, put everything together, do your budgets. You can essentially create an entire business model and make a plan and, you know, get quotes for the product to be shipped in or whatever that is before you actually start dabbling and putting your feet in the water and putting a dollar into that business, what I want you to do is create a very clean and clear plan about how much that's going to cost you and where you need to put that money. So if you're starting a side hustle, no doubt you probably have a little bit of a budget to spend, whether that's $500 or $5,000. I think working out what your business plan is and how you're going to allocate that budget so

that you get the best bang for buck upfront is really important because too often do I see small business owners prioritizing the wrong things. If you're just starting, social media is fantastic and a really great free way of starting to promote your product and seeing small business investing $10,000 in a website from the get-go when they don't even have their first sale through the door, I would argue is a really terrible idea. When you can go online, create a free website so that your clients can find you and do as much stuff for free and then upgrade once you've got cash flow. So for me, budgeting, hands down. What's yours, Glenn? Yeah, I'll go a different angle because I can't add anything more perfect than that. I would say

as soon as you step out into that world of I'm self-employed, I'm a side hustler, I use the example of a baker. So you're a baker, you're employed as a baker, you then go and start your own bakery so that minute you start your own bakery my friend you are no longer a baker the baking the day-to-day has to take care of itself you can't be learning your craft practicing on your own clients that has to take care of itself you are now a business owner first and foremost all your energy and this is what i did when i started my business the first year like yeah you're going to help people in your network and and this is what happens like those people that um and i love thermomix parties because you go to the thermomix party and you get the uh

mushroom risotto made and all that stuff and that's awesome do you go to a lot of thermomix parties just to get free dinner but basically what happens is some of these money win yeah that's right some of these small businesses small businesses fail uh 75 within the first kind of five years and because basically people uh they use their personal networks and they run out of people to serve and sell stuff to so in my first year of small business i focused on my whole energy was focusing on who can send me clients so i met with 32 local businesses so i had a financial planning business i met with 32 mortgage brokers accountants lawyers hey i'm glenn hey i do this can can i help any of your clients because then if you get that supply nailed all the other stuff

will take over itself you don't have clients you don't have people to work on you don't have a small business and then that will build the sustainability that you've got a constant inflow of new business so first and foremost you are a business owner you're not a graphic designer now chloe you're a business owner chloe pay attention pay attention chloe and just on that is that as well as time management is it also just a mindset of you're a business owner not a baker i'd yeah it's a mindset because you need so what the trap can be is uh as the baker working in your own bakery now so you could be the best baker in the world but you can't run a business like and you won't make any money and when you run a business yourself you actually need to make good money

because you're risking uh your time your effort your money you're risking someone slipping over in your shop and suing you so you're taking all this inherent risk on and risk needs reward that's the basic concept so you need a premium for that risk that you're taking so you must must must know that you are first and foremost a business owner and not worry about making the best hot cross bun which all that's hygiene you've got to be good at what you do you've got to do it but don't stand around trying to perfect the best hot cross bun if you've got no customers to sell it to i think that's really important as well i love that yeah can i ask a follow-up question for both of you just sort of on that topic yeah is it fair to say and i could be way off here that if you're a baker

let's stick with our example and you just love baking bread yep that doesn't have to mean you have to own a bakery because you might not be interested in running a business you just want to bake the best bread 100 and then conversely would it be true that maybe you're not the best baker but you would love to run a bakery and so it doesn't mean because you weren't the best baker in the world you can't run a really successful bakery ever to like mutually exclusive i think if i can jump in victoria i think it's a little bit fraught with danger a couple of years ago a friend of a friend of mine in sydney we looked at buying a you know we were like oh let's buy a domino's peach a franchise you know you've got to know you've got to know how the business works

you've got to know the processes you've got to know the lingo so i think if you did want to run a bakery and not be a baker. I think you need to be in that world, work there, just be at the counter serving bread. You've got to learn that world because that will make you a better business owner if you understand the business. I would a thousand percent agree with that, Glenn, as a business owner and you are as well. Me understanding every single aspect of my business means that if my team, and I really don't think they ever will, but should someone on my team fail me I can step straight in and take over that role yeah so I think it's incredibly audio for this podcast when there is a will there is a way right John but I think knowing where to be able

to step in and do everything in your business is arguably essential especially when you're a small business you can't rely on other people and I know inherently how to I would argue how to run a financial services business because I am a financial advisor and I still see clients albeit it. I don't see heaps of clients. For me, that's really important so that I'm always staying in touch with how that business is running and what compliance look like and what regulation is so that I can be the best team member I can be. But on the flip side, I don't see anything wrong with you saying, I just want to be a baker. Go get a great job, like get a great job in a bakery. Like not everyone has to be a business owner. I feel like there's genuinely too much pressure on people

to you know be the best at it but then go out on their own like you don't have to if that's not aligned to your goals and values yeah and if you if you're hating life where you're working it doesn't mean i have to do my own thing that's it go get a new job like just don't put up with crap the older i get the lesser put up with crap okay on that note ryan is there any final parting questions you want to ask us no but i was just going to add even though the the venn diagram if she's on the money and what glenn james does i feel like a lot of people are in both communities but just in case glenn can you give us a final spiel on where we can find your stuff and all the things you're up to because you seem to be a very busy man with new stuff happening all the

time yeah so um obviously instagram podcast so you know we run my millennial career which is the careers podcast i run my millennial business which you're about to start a business one next year i think you've announced that it's on yep sweet uh we run my millennial property and you're going to do a property one i just want to be glenn james guys yeah we're launching my millennial health in january cool we're actually launching she's on the health kick in december so oh sweet we're not we're not actually but now we will right yeah do it um lots going on facebook is our best port of instagram or the facebook group yeah we're just having a lot of fun out here and i love when people listen to both podcasts because you know am i going to get it right

every time. Nope. Is Victoria going to get it right every time? Yep. But you can get some balance and perspective because my way isn't the way, it's a way. Exactly. And I think that that's important and probably a very good note to leave it on. No one's ever 100% correct. I mean, we're not giving away false information, but at the end of the day, just because my opinion is on a podcast doesn't make it the be all end all. And I'm sure you feel the same way, Glenn. Like it's so good especially when talking about money to get heaps of opinions so you can formulate one that is perfect for you totally but just before we head off i would actually like to acknowledge and pay respects to australians aboriginal and torres strait islander peoples the traditional

custodians of the lands the waterways and the skies all across australia we thank you for sharing and for caring on the land which we are able to learn we pay our respects to elders past and present and we share our friendship and our kindness. Now I get to wrap the boring but important stuff all on my own. Excellent because I was going to say I don't have all this information so you just keep reading. That's fine the advice shared on She's On The Money is general in nature and does not consider your personal circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or personal decision and please stress less I am an authorised representative of Australia Pacific Funds Management Proprietary

limited abn 34132463257afsl339151 and as always albeit he's not usually here for this part thank you so much thanks to me who's going to edit this later thank you so much to ryan john for one putting up with me and two for putting today's podcast together you're welcome thanks thank you and miss you georgia bye i love you bye see you later guys Thank you for watching!