September 8, 2026 • 45 mins
Some of us want to buy a house. Some of us wanna retire early. Some of us want a little more coin on the other side of our retirement. No matter what your financial goals are, here are our very best tips for making $100k by the time you turn 35.
Join Victoria and Bec on the Deep Dive couch as they discuss how to tackle this goal in three parts: earning, spending and managing your money. Plus, some things you can do to ensure that there aren’t any leaks in your budget, or in your ongoing income.
And if you happen to be on the other side of 35 already, these solid money habits are still worth considering to amplify your wealth in the long run.
UNHINGED WAYS TO EARN: Take us back. Tune into Jess and Bec’s episodes on unhinged hacks for saving a little extra coin over here and here, or search Unhinged savings hacks wherever you get your podcasts.
BROOKE’S FIRE PLAN: Stream it and see if it might work for you over on our Youtube channel: youtube.com/watch?v=NsuXtMcFLM8
GET THAT BAG: Asking for a pay rise? Here are some tips to help you have the chat over on our blog, search payrise at shesonthemoney.com/blog
EXTRA SHIFTS COMIN’ RIGHT UP: Earn a little extra on the side with the Supp platform over at suppapp.com/
Acknowledgement of Country By Nartarsha Bamblett (nartarshabamblett.com.au)
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 - 4451289.
See omnystudio.com/listener for privacy information.
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Speaker 1 (00:00):
She's on the Money. She's on the Money. My name's
Snatasha Bamblet.
Speaker 2 (00:11):
I'm a proud First Nations woman and I'm here to
acknowledge country. Hello, beautiful friends, we gather on the lands
of the Aboriginal people. We thank, acknowledge and respect the
Aboriginal people's land that we're gathering on today. Take pleasure
in all the land and respect all that you see.
She's on the Money podcast acknowledges culture, country, community and connections,
bringing you the tools, knowledge and resources for you to thrive.
Speaker 3 (00:32):
Hello, our lovely listeners, and welcome to She's on the Money,
the podcast that helps you feel more in control of
your financial future. You've joined us for another deep dive
where we'll be taking on an ambitious but achievable money challenge.
Do you reckon you could save up one hundred K
by the time you get thirty five?
Speaker 1 (00:49):
Because I'm already thirty five and so I can't work
in the past, Rebecca.
Speaker 3 (00:55):
Well tell you what vd you could have folled me.
You don't have the day of a twenty five. Thank you,
thank you. That's all the bowtop, it's in my forehead.
It's really working.
Speaker 1 (01:03):
Thank you. Thank me, maybe you're only a.
Speaker 3 (01:07):
Few years away, or maybe, like a few of us
on the team, that Milestone has will and truly sailed.
No matter where you see, this episode is packed with
ways to reframe the way you earn, spend, and manage
your money with learnings for well beyond this bracket. I'm
back side and the brilliant Victoria Divine is here to
help me dive headfirst into this subject from start to finish.
Speaker 1 (01:27):
I come here and I am very excited about this
episode because I feel like one hundred thousand dollars in
savings before thirty five is a really ambitious goal. But
I really guess that depends on where you're at and
what you're saving for. And I don't know, I feel
like there are a few ways that we could get
you saving one hundred grand m How how could it be?
Speaker 3 (01:50):
How could we always do it? I'm th four and
so that's possible. Still, let's say it's possible.
Speaker 1 (01:57):
So you just wanted to remind me that I am
still there, oldest, I didn't want to tell you that.
Speaker 3 (02:02):
Hey, listen, you're welcome. You know, the springiest chicken in
this I'm not.
Speaker 1 (02:07):
I'm not And do you know what I was just
thinking as you were talking that my botox isn't working
as hard as it should. Like you were like, you
don't look a day over twenty five, and I'm like, babe,
I do, but I do still feel like I look
thirty five.
Speaker 3 (02:19):
That's wild. Yeah, definitely don't.
Speaker 1 (02:21):
No, no, no, like, that's not me fishing for compliments
like being thirty five is a privileged I'm not mad
about it, but like, at what point do I get
the opportunity to age backwards? I know you mean by hacking,
not for me.
Speaker 3 (02:34):
Yeah, no, it's not too late. But look at Chris Jenner.
Speaker 1 (02:37):
Oh no, that was a whole face lift, babe, that
was a whole face lift.
Speaker 3 (02:41):
Buy a new face it in.
Speaker 1 (02:41):
That's actually terrifying. No, let's talk about money, which is terrifying,
but not as terrifying as them peeling off your face
and resticking it somewhere else.
Speaker 3 (02:51):
Okay, let's do that, all right. So I guess vid,
if you'd approached me by early twenties and said here's
how to make one hundred K, I think you're firstly
a scammer and secondly delusional. So I'm definitely keen to
hear how to make this feel practical, you know.
Speaker 1 (03:04):
Absolutely, and I can promise you right now that I'm
not a scammer. But if you could just send me
your bank accounting no. No, And I feel like that's
the name of the game that we are playing today, Beck.
I want to tackle this in a way that feels approachable,
in a way that actually makes sense and means that
you could probably do it. But that means I have
to break down the goal. And I always talk about
(03:26):
breaking down the goal, but today we're going to break
it down into three parts. What you earn, what you
spend an ongoing money management. So hopefully by the end
of the episode, you're going to feel really empowered to
make money moves that essentially amplify your wealth or at
least leave you with the mindset that shifts you into
being able to reframe what your next financial goals are
going to be. But first coffee break, we are going
(03:49):
to take a quick break, and right after we will
dive straight in. All right, miss becksied Before we get
into the how, I wonder if people care about the why?
Speaker 3 (04:04):
Yeah, I mean the why is it seems like not
the most important bit, but honestly, like who wouldn't want
hundred K. It seems like a safe amount of money
to have saved up and ready to go ideally like
it's a crazy amount. But I feel like you might
aim for this goal even without having a clear reason
behind it. So does it matter if we have a reason.
Speaker 1 (04:22):
I mean, you don't need a reason, but a reason's
going to help you achieve your goal? Yes, quicker true,
because otherwise I'll be like beck, but you're saving, and
you'll be like for what it doesn't matter, like you
don't have any drive. But I feel like finding a
reason to reach this milestone is going to make it
more real. And it's kind of what takes it from
being an arbitrary number to one that has actual personal significance.
(04:46):
Some people in our community who have saved one hundred
thousand dollars, because there are lots of you, they say
that it was just a nice round number, or they
might say, oh, that's the number that makes me feel comfortable,
or there might be a really specific thing they want
to achieve with the hundred thousand dollars. But instantly I
can think of a few reasons, and I'm happy to
share why you might aim for this goal. Maybe you're
(05:09):
super eager to get into the property market and you're
saving up for a house deposit and that might be
on the cards for you, and based on the current
research that you're doing and property prices across Australia, a
standard ten percent deposit, which is what I'm seeing the
most in Zell of Money, So most of our first
home buyers are only buying with the ten percent deposit.
That puts you at about one hundred grand in savings
(05:31):
because the average property in Australia is sitting at about
a million dollars. Terrifying, It really is terrifying.
Speaker 3 (05:37):
So there are a few grands so that you can
access as a first home buyer.
Speaker 1 (05:41):
Oh totally, totally, And if you're a first home buyer,
you might be eligible for like a grant or a concession.
So this is a complete detail. But the first home
buyers five percent deposit scheme means that you only need
five percent for a deposit to purchase a property instead
of the standard ten percent, which brings your deposit closer
to that fifty thousand dollar mark based on average property prices,
(06:03):
which honestly is a really big deal because people often
forget that the building isn't the only expense involved in
buying a property, and you very likely will need funds
to cover a conveyancer or to complete a building inspection
prior to settlement.
Speaker 3 (06:18):
Okay, and like furnishing the place, fridges, things like that.
It all adds up.
Speaker 1 (06:23):
There's so expensive white goods is a conversation for another day.
Speaker 3 (06:26):
Oh my god, I know. So you might be saving
for a house. What are some of the other reasons
to save?
Speaker 1 (06:31):
So you might be thinking, VI, I just don't want
to work over the age of thirty five on a
retire early and maybe then saving up one hundred thousand
dollars might be part of that long term investment plan
where you want to create a portfolio that is so
strong that you could live off the dividends and never
have to work another day in your life.
Speaker 3 (06:48):
Gorgeous. That's someone on the team's doing that right.
Speaker 1 (06:50):
Yes, absolutely so, Brook who is on our team is
on the path to fire, which is very cool. That
stands for financial independence, retire early, and it's this idea
that you grind during your early years and your early
twenties so that you can set yourself up to retire
in your thirties. But let's be brutally honest. I don't
(07:12):
think it's for the faint hearted, Like that's a lot.
It involves saving really aggressively, and I'm talking between like
fifty to seventy five percent of your earnings for a
relatively long period of time. And last time I checked
in with Brooks, she's saving like seventy percent of hear income.
Speaker 3 (07:26):
That's wild, that sounds.
Speaker 1 (07:29):
I'm really proud of her, Like that is the coolest
thing ever. Yeah, but someone can be doing something cool
and I can recognize that that would not work for me.
Speaker 3 (07:38):
Absolutely, I really really admire that. That sounds so challenging
because when you think about your teens and your twenties,
for example, like, yeah, it's a time where you coincidentally
also might want to spend more more freely, or at
least your friends might, and you kind of feel like
you got to keep up, exactly, And.
Speaker 1 (07:55):
It does definitely involve a certain level of frugality and
being able to live below your means and being able
to think about the bigger picture and having a really
great sense of delayed gratification. Honestly, it's not for everybody.
Speaker 3 (08:08):
Yeah, and what if you already have some pretty big
financial coquitments or like kids or things like that.
Speaker 1 (08:13):
You know exactly. And I think that that's what makes
it so attractive to only a certain group of people.
Whereas if you said to me, Victoria, you're going to
do fire, like my lifestyle actually just doesn't allow for that. Like, honestly,
there is absolutely no way that my husband and I
could save seventy percent of their income. It's just not happening.
I now have two kids, I have a mortgage, I have,
(08:35):
you know, lifestyle costs that I don't really want to change.
It's just not good to work for me. And that's cool,
that's fine, but it's just not good to work for me.
I mean, it's not impossible, but those things do make
it significantly harder. And I mean, if that is something
that you're interested in, though, and you've decided, wow, v
I would really like to do fire. You can change
(08:58):
your whole life. You can structure everything, like technically, Steve
and I could sell our property, we could change the
way that we live our lives and we could maybe
make it work. Don't want to, though, And I mean,
if you really want to, I would strongly encourage you
go back and listen to our episode with Brooke and
her investing strategies, So make sure that's in the show notes.
But like that's fun, Yeah, okay, it's it's a good
(09:21):
like concept.
Speaker 3 (09:22):
I feel like it wouldn't work for me either, But
so property fire. What about some other goals? What if
you are planning to.
Speaker 1 (09:29):
Study later in life? Very cool, very cool. You might
have already done maybe like an undergrad, and you thought,
one day, I'm going to go back and like do
my masters or a PhD, and maybe after I've had
some more life experience, though I don't want to do
it immediately. But I also can't afford to study full time,
So you might want to be able to like afford
(09:50):
to study full time instead of having to work and study,
which can be a lot beck. You might also just
want to travel the entire world. You might want to,
you know, do that and have a reliable income to
support living overseas for an extended period of time. Or
maybe you've already entered the property market and you just
want to renovate or build like you go V I
really want new bathrooms and a new kitchen and two
(10:14):
new bathrooms and a kitchens one hundred grant, Yeah, and
unfortunately in this economy, very likely, Oh.
Speaker 3 (10:20):
Man, I mean you might have aging parents or relatives
as well, and like that's something to consider. Maybe you're
a carer and you know you'll need extra money to
help support the people you care about in the future.
Speaker 1 (10:30):
Exactly. There is so many reasons back, and so many
good reasons why you might want to save one hundred
thousand dollars by the time you reach thirty five. But
the real question is how the heck do we do it.
So let's look at the ways that we're spending and
earning money. So it would be remiss of us to
talk about increasing our savings if we are struggling, we're
(10:51):
spending or debt like so silly. Saving when you owe
money can feel like an uphill battle. Yeah, one that
I get because I've been in there. So if you're
listening to this and you're thinking, Victoria Devine, what are
you doing? I cannot possibly say one hundred grand, let
alone a thousand dollars. I get it. I've got you.
(11:11):
I've actually created a bunch of resources like playlists and
spreadsheets to help you consolidate debt and ultimately get rid
of it. And you can apply that across everything from
credit cards or loans or buy now, pay later situations.
Like any type of debt can be tackled. You can
change your life. While we have these strategies to help
eliminate debt, we also kind of have to dig a
(11:33):
little bit deeper to understand the mindset behind this spending
that you have. Because if you don't understand it, I
promise you'll do it again. True, Like, if you don't
understand why you got into that debt, you're going to
get into it again because you might go, hey, v
I've got let's do a little scenario. You've got twenty
thousand dollars in credit card debt. You feel overwhelmingly swamped.
(11:56):
You go, I've got to get rid of it. You
knuckle down, you listen to our podcast, You download my
free budget, you download the Savings Truckers. You have smashed
this twenty thousand dollars debt out over two years. You
are debt free. We haven't looked at why you got
into debt in the first place, so you just feel free. Yeah,
it's time to live a little. It won't matter. You
didn't close your credit card.
Speaker 3 (12:16):
Did you? Hopefully not?
Speaker 1 (12:18):
No go again exactly and do you know how many
times people relapse into debt? Ye astronomical amounts. So we
need to understand why are you chasing a dopamine hit?
Do you just really like doing a tappy tappy? I
get it is lifestyle creep, meaning that you're responsible for
regular splurges or you're spending beyond your means. Like one
(12:40):
of the things I've talked about so consistently on this
podcast is lifestyle creep and what it actually looks like.
So way back when, and you know, Beck, you don't
buy a makeup no, because you're a better person than me.
But I used to buy makeup at the supermarket and
like you know, if my Mabeline mascara was on sale,
money win eight bucks. But then my life got more
(13:02):
expensive and I discovered Mecca and everything got really expensive
and I justified that because I was older, I deserved it.
That was what lifestyle creep looked like for me, and
my spending got out of control. You need to deeply
look at where's your spending going because you might go, oh, Victoria,
I spend money on cosmetics, but I have to spend
that amount of money. No, you don't, you absolutely don't
(13:25):
and you are just deluding yourself when it comes to
the reality of your situation. Maybe you're falling prey to
like present bias, where we really overvalue the benefit of
having a shiny new thing today over the pain of
paying for it tomorrow. I'll just work it out later,
doesn't matter. I'll just get it today, I'll work it
(13:45):
out later. I won't do it again. But then what
do we do back?
Speaker 3 (13:49):
We do it again? We do it again, hopefully, Like
I feel like I'm a combination of some people out
there that might be listening being like, oh, I can
find a job for a long time.
Speaker 1 (13:58):
That's a different story.
Speaker 3 (14:00):
Had to And in that case, maybe there's no underlying
issue where you you will do it again and again
when your life just got hard exactly is very different.
So you just wanted to mention that in case you're
listening and.
Speaker 1 (14:12):
Like, hey, we get you though, but like, that's why
I'm saying things like lifestyle creep or getting a dopamine hit,
or you know, you really like shiny things and you
haven't really thought about having to pay them back tomorrow
because you think it's a tomorrow problem. And he's always
a tomorrow problem, right, Yes, I'm not saying, oh, life
got really expensive and you had school fees coming up
and you didn't want your kids to go to school
(14:33):
without shoes. That is not the circumstance I'm talking about here.
And if you're going into debt for those reasons, or
you're going into debt to put food on your table,
pop off, Queen. Absolutely I back you. I don't want
you to be there forever, which is also why we
have all these tools and resources, and you still need
to kind of like be on top of it. Yeah,
but like I will never crucify someone young. Got nothing
(14:53):
to worry about in that case exactly. But what we
do need to do, Beck, is get to know why
you spend the way that you do so that you
can kindly adjust your mindset to better support your money goals.
Speaker 3 (15:06):
So what if, say, like you've sorted out your mindset,
what are some practical tips to help you spend more responsibly.
Speaker 1 (15:12):
Automate your pay And you know what, Beck, you still
haven't done this. I know you haven't done this because
I just know that this would be something that really
helped you because you chase dopamine in the same way
that I do.
Speaker 3 (15:26):
And if the money is in my account. I'm a
duer spending that's true, I'm going to do it. So
I actually need a bigger system than myself to take
the money away from me and stop me from spending
it and transfer it automatically somewhere else. And this is
something that we mention in our episode on investing your twenties,
thirties and forties and beyond.
Speaker 1 (15:46):
And if you haven't already, please go back and listen
to this. But essentially, if all your money gets allocated
to things like rent and bills and petrol, it is
so much harder to commit to things that are outside
of your budget because like in your immediate debit card
that you actually do the spending on, it's not there
and you have to go, oh, I wonder, but I've
(16:07):
already separated off the money for your rent beck and
you know that's rent money. That becomes much harder to
spend because like, oh, yeah, actually that's rent money. Yeah, Like,
I'm making it harder for you on purpose, And this
behavior is going to prioritize saving as an automated behavior
because honestly, we're human beings. Sometimes we just can't be trusted,
(16:29):
like even with ourselves. But it's going to reduce the
strength of tempting purchases. So you can also bolster this
with a spending buffer for any like non essential purposes.
I'm not saying don't have fun, but if you want
to do some spending, maybe waiting twenty four or forty
eight hours before dropping the money on an online sale
(16:49):
is a really good idea, because you actually don't want
those leggings totally. Yeah, I thought I really, really really
wanted them, and then all of a sudden the spending
dopamine high wasn't there, and now it just because it
is a logistical thing, I have to go back and
I have to find it and have to put them
back in my cart, and I just can't be bothered totally.
Speaker 3 (17:05):
And actually, like a step further, if you imagine yourself
receiving the package and then having to throw away the packaging.
You're to find a spot for it.
Speaker 1 (17:15):
And what if it doesn't fit right, and what if
it doesn't look like on me what it looked like
on the model, and then.
Speaker 3 (17:20):
You gotta take it back to the post office.
Speaker 1 (17:22):
No oh no, And you all know I'm not going
to take it back to the post office. And it's
just going to be a giant money loss save yourself.
Speaker 3 (17:28):
So I guess buffer is really smart, especially if you
love an impulse by Yes, but back to automation, how
do you know how much to automate? Are there any
helpful rules or spreadsheets and things we can offer to
our listeners?
Speaker 1 (17:39):
Okay, so I hate this, but I'm going to mention
it because the community talks about it a lot, not
because I believe in it. Because I'm going to talk
about really quickly, like a percentage based rule, and I'm
going to do it because it might work for you.
And I'm not one to gate keep stuff just because
I don't think it works for me. Sure, I'm just
going to give you the information. Why don't I think
(18:00):
a percentage based budget works? Because Beck, if you earn
forty thousand dollars and I tell you to save twenty percent,
immediately you feel like trash. Yeah, because I've said, Beck,
you need to save twenty percent, you go Victoria, don't
have twenty percent, Say you're already I'm already behind. And
then because I said twenty percent, you go, well, anything
(18:21):
less there's a failure.
Speaker 3 (18:22):
Yeah, yeah, that's true.
Speaker 1 (18:24):
That banks my community feel like trash but some people
have been really liking applying what they call the fifty
to thirty twenty rule, and it means keeping fifty percent
of their earnings for things they need, thirty percent for
things that they want, and twenty percent of their income
for savings. Okay, now, do I think that in this
(18:45):
economy that works perfectly? No, because for some of us,
fifty percent that's actually just our rent exactly, that's just rent,
and it's already gone. But I think sharing these you
might go, oh, actually, I just cannot, Victoria, get my
head around doing a whole budget. I'd really like just
(19:07):
to be told transfer, you know, twenty percent of my
income and then we're just going to call it like,
I don't want to think about it. And if that
helps you pop off, Queen, I'd love that. But for
a lot of people, that's just not going to work.
But of course you might also choose to adjust this
like plan based on a monthly target or an investment plan.
And I'm going to explain what I mean by this
(19:28):
later in that episode, but it could also be about
like applying a ratio.
Speaker 3 (19:32):
Okay.
Speaker 1 (19:33):
Additionally, free on our website, we have so many resources
that you can just download print, you know, use as
a spreadsheet to help you establish yours on your way
to one hundred K. So you can work that out.
But the first step is really recognizing what you spend
each and every single month, which can be very confronting.
And I'm sure if I said, beck can I see
(19:54):
your bank statements right now? You'd be like, ah, no,
maybe later, do you know what I mean? Like, not
all of us are comfortable with that. I'm not even
comfortable with that. If you said, Victoria, can I see
bank statements? I'd be like, no, no, yes, And that's okay,
But I promise just doing it with yourself, like you
don't have to show anybody else. It's confronting, but it
(20:14):
is worth it because when you have a very clear
idea of what you've been spending in a normal month
and we can add it up, I can go back,
did you know that you spent X on X? You
go fire out? That does add up. It is going
to help you change your behaviors more significantly than me
just saying, Hey, that thing you do, I don't think
you should do it?
Speaker 3 (20:34):
Yeah?
Speaker 1 (20:34):
Cool?
Speaker 3 (20:35):
Why for sure?
Speaker 1 (20:36):
Like I need to give you a really solid reason
and then you'll be able to set like a really
clear runway of what you need to save and what
you need to earn in order to move forward and
keep managing your money.
Speaker 3 (20:47):
Okay, So say we've done the audit and there are
a bunch of things and buying every month that fall
under the one list. Yes, So what can we do
then to help produce outgoings without compromising on what we enjoy?
Speaker 1 (20:59):
Yeah? Because I love coffee, and I think you and
I are on the same page. We adore Brook. We
think she's absolutely fantastic, and I am so proud and
honestly in awe of the fact that she is saving
seventy percent of your income and plans to be in
a situation where she could retire by the age of
thirty five. Crazy, you and I. That's not our journey.
(21:20):
Couldn't be us, couldn't be us. And that's okay. But
I suppose you have to ask yourself, how much do
you want to achieve this goal of saving one hundred
thousand dollars by thirty five and what it might mean
to you? Is it more meaningful than a nice matcher
that cost you eight dollars? Is it worth swapping a
coffee date? For a walking one. Is it, you know,
a subscription? Is it necessary? Or could you find another
(21:43):
source of entertainment that's maybe more affordable in the meantime,
Because I'm not saying that you can't do these things,
but unfortunately in life we have to compromise, sure, and
you get to choose what you compromise.
Speaker 3 (21:58):
It's a great hall. I do hear a bunch of
people are going back to DVDs, chic. I know, if
there's something that you enjoy, like you maybe you have
a streaming service, You're like, hey, go back to DVDs
all buying secondhand or learning how to mend clothes or
repair things, or heaps of new social groups popping up
where people are skill sharing saved money while building community.
Speaker 1 (22:18):
Yeah. Like Jess and how she goes to sewing class. Yes,
isn't that cute? It's actually the most wholesome thing ever. Like,
I love it so much. I was telling my sister
the other day because she was like, oh, because for
some reason, I was the one paying attention when my
mom taught us to sew, and my sister was always like, no,
go away, I'm going to my room, and like she
never learnt sew properly, and she's like, maybe I'll go
to sewing class, and I'm like, do it.
Speaker 3 (22:40):
That's cute.
Speaker 1 (22:41):
Anyway you can live below your means or find thrifty
ways to enjoy things that you love. I promise again,
you might have to step out of your comfort zone
to work out what that looks like. That's okay, and
maybe you start going out less or you just say,
you know what, when I go out, I'm not going
to order a wine because that will cost me fourteen dollars.
(23:01):
I'm just gonna swap it for like a non alcoholic one.
And yes, I'll still order myself and I drink, but
I'll just have a coke or something. And we can
start saving in really small ways because all of those
things add up in the long term. Beck, let's pivot, yeah,
because you can only save so much, Like you can
only save on things and scrimp and you know, rejustify
(23:26):
you're spending. Yeah, Like, and I think if you've gotten
this far in the episode, to think of Victoria not
having the eight dollar iced matcher and not having a
fourteen dollar wine when I go about is not going
to get me to one hundred thousand dollars, Like Queen,
you would be correct, because we need to talk about earning.
Speaker 3 (23:45):
Yes, at the end of the day, if you don't
have money coming in the door, how do you think
you're gonna save it? Very true?
Speaker 1 (23:50):
Now, Beck, you might be thinking saving one hundred thousand
dollars by the age of thirty five would be easier
if I just earned more. And I mean that's definitely
one of the level that you could pull, but it
is not the be all, end all, And if you
haven't already thought about it, I want you to see
whether you can negotiate your worth in your current job.
It might be hard, it might be overwhelming. But if
(24:11):
you haven't asked for a pay rise in a while,
and you've worked for that company for a few years,
my queen, what are you doing?
Speaker 3 (24:16):
Sure?
Speaker 1 (24:17):
Yeah, can you maybe make a case for a pay
rise or a salary review? If you're not sure how
to do this, Beck, and I have your back, don't worry.
Or maybe it's your first rodeo and you're like, I
just don't know what to do. I know that you've
got my back. I would start with our blog that
I'm going to link in the show notes, which is
completely dedicated to asking for a pay rise, including scripts
(24:39):
and things like that that you can use in an
email to start the conversation, because sometimes just starting the
conversation is the hardest part, which to be like, I
don't know what to say, I don't know what to do.
And also I'll tell you what you don't deserve a
pay rise for, because I'm not going to be like, oh, Beck,
just ask for more money. Yeah, like that's not realistic.
And of course another way to get a pay rise,
and employers are not going to like this is to
(25:01):
consider switching workplaces, which can often result in a bigger
leap in income. I have and I'm I don't know
if you've noticed that, but I'm born to yap crazy.
I had noticed I having yap into some girls in
my Instagram dms recently and they were like, V I
want to earn more money, I want this, I want that.
And I told one of the girls in my DMS,
(25:25):
I said, look, being really blunt, you are like, because
she actually worked in the financial services industry in a
broking role, being quite blunt, you are being very underpaid.
And you know she showed me the email. Because I'm pervy,
I was like, show me the email that your employer
like sent back about you not getting a pay rise,
and I was like, they are disrespecting the hell out
of you. I'm so sorry, but like for them to
(25:46):
send you that and have the audacity to do what
they were doing, Oh my god, why don't you go shopping?
And she I was like, go shopping, Like you know
how sometimes you go shopping back and you don't buy anything. Yeah,
and that's okay because you still went shopping and then
you went home and you were like maybe like, oh,
well the jeans I have already are really good because
like the ones that I went shopping for they didn't
fit quite right and so I didn't get them. Yeah,
(26:08):
is it? Goes shopping? Go see what other jobs are
on the market, Like you're not accepting a new job,
and I think sometimes people get a little bit angsty.
You're like, oh, I don't know, v if I want
to like leave my current role, will go shopping. Just
have a look, Just have a look, see what's out there,
see what other jobs are playing at. Yeah, and she did,
and she got a twenty thousand old pay rice.
Speaker 3 (26:28):
Oh my god, that's so good.
Speaker 1 (26:30):
And I'm just so happy that I got to be
part of that like live journey. Yes, because I was like, no,
do it.
Speaker 3 (26:35):
She's like I'm really anxious, and I'm like knuckuen get it,
Like go to this interview, and if you don't get it,
Like if they say no, who cares?
Speaker 1 (26:43):
Because you already have a solid job for sure. Like
the best time to interview is when you don't desperately
need the job exactly right, because you're not anxious about
getting it, you'll probably show up as your more authentic
self anyway, which is exactly why she probably got the
job exactly But that's why I said, employees aren't going
to like what I have to say, because I want
you to take a look around. I want you to
(27:03):
see what other employers are paying and you can go
from there. Can you get like an extra ten percent
per year? Could you get more? Have you listened to
any of our other episodes about what that ten percent
could mean for your future wealth? Like we did a
whole episode on supernuation salary sacrificing and that was based
on five percent, Yeah, and that got most people to
having a million dollars in there? Super what's ten percent
(27:23):
going to do for you? Exactly? Right?
Speaker 3 (27:25):
Oh my god, s, guy's a limit. What if you're
a nurse or something, or someone who works in a
rural town or in an industry where it's harder to
just demand a pay right.
Speaker 1 (27:32):
Oh yeah, that advice does not work for everybody, because
some people, like our nursing friends, who like you guys,
need to be paid so much more. But that's again
a conversation for another day. You're on a salary band,
You're like, I actually can't be legally paid more than this,
Like I'm never going to get a pay rise. Of course,
things like location and your industry and even your gender
(27:53):
are going to be affecting how much you are getting
paid before you've even had a say in it is
not I'm not saying that this advice works for everybody.
And if you're wondering what gender has to do with this,
please check out one of our episodes about the gender
pay gap to learn much more about that and what
I'm talking about. Because again, conversation for another day. But
(28:14):
let's say you're in an industry where unpaid placements are
completely unavoidable as a part of your career progression, paid them.
Oh it makes me.
Speaker 3 (28:23):
So mad, you know, and it's full time too, like
one day, sure, full time, unpaid, and how to study.
Speaker 1 (28:30):
Five in this economy, even any other economy, How is
that reasonable?
Speaker 3 (28:34):
I know, I cannot believe. That's a thing.
Speaker 1 (28:36):
I got so unnecessarily mad when I was building Sheese
on the Money because somebody suggested to me to get
unpaid interns to help with the work. And I was like,
I can't even justify that, and they were like, well,
you know, the nursing industry does.
Speaker 3 (28:48):
And I was like, sickening gross, I.
Speaker 1 (28:50):
Know, so gross. But let's just say that you're in
that space. How do you think you could earn more
when your position and your seniority and your industry died,
your financial situation Beck exactly exactly.
Speaker 3 (29:03):
So well, guess we're gonna get creative.
Speaker 1 (29:05):
We get creative, exactly.
Speaker 2 (29:08):
Now.
Speaker 1 (29:08):
There is a whole episode that you and Jess actually recorded.
I remember this one because I'm having nothing to do
with this one U two Psychos. It's dedicated to unhinged
ways to earn extra income, which our listeners might want
to return to or at least use to inspire their
future earnings. But some of the suggestions included things like
(29:28):
selling second hand items or flipping thrifted clothes online or
taking up a side hustle or value creation. So there
are a lot of them, and there are literal episodes
that we have dedicated to this totally.
Speaker 3 (29:40):
And I think I mentioned like how I got extra
HOSPO shifts by using the platform or the app called
sup supp which we can include in the show notes.
But you can apply for full time jobs or just
single one off shifts that that is.
Speaker 1 (29:54):
So close to you. I didn't know it had changed
into an app because years ago, and I'm talking like, oh,
this would be like twenty ten, twenty eleven when I
was in early UNI and I had two jobs because
again I was crazy, but also I had to fund
my life, and it turns out life is expensive. I
also worked with this group and I don't know if
(30:15):
it's still around. It was called Octopus.
Speaker 3 (30:17):
Oh that sounds familiar.
Speaker 1 (30:18):
And I worked for a group called Peter Rowland as well,
and so they were like Hospo kind of like contract jobs,
and we didn't have an app, and app would make
it much better. But they used to send around emails
and it was basically a first investorss as to who replied,
and they'd be like, hey, we have a random shift,
and this is how we ended up working at the
most random locations. Hey we have a random shift at
(30:40):
the Melbourne Aquarium for a wedding, Right, great, I'll do it.
Hey we have shifts for the Melbourne Cup. How we
have shifts for like these events that would come up
and I'd go and be a waitress or I'd go
and work behind the bar. And if you've got those skills,
maybe like something like that could work. Because if they
came up and they didn't sue me at it, take them.
(31:00):
But if they came up and I'd be like, oh
my goodness, like, yes, I would like a Sunday shift
because I was getting double time and a half to
do some hosp bow stuff. Yes, of course I'll take
a four hour shift. Why the hell not exactly. So
that is a very cool way of going about it
because you don't need to commit to an ongoing like
every single Saturday shift or in every single weeknight shift.
(31:21):
You can be like, all right, I'm gonna knuckle down.
This could even be for a holiday. I'm gonna knuckle down.
I'm gonna pick up some random shifts of stuff. Just
get it done. Get some extra cash in my dad
can be ahead, so cool.
Speaker 3 (31:33):
And if you have a mode of transport, so if
you've got a car, or you've got a bike, or
you've got a little scooter, beck, you could be like
a door dusher and earn. Like you could join uber
and you could earn a little on the side by
making deliveries. And maybe you're also like a multidisciplinarian queen
and you do some sewing, or maybe you do some
(31:54):
babysitting or dog walking on the side. All of those
things can help add to your earnings and eventually savings.
Speaker 1 (32:01):
Potential for sure. And recently I've joined a few and
it's just because I'm really stepping into my millennial era.
I've joined some local Facebook groups for my community, and
I'm seeing lots of people post, hey, like I would
love to walk some people's dogs, like for some extra
cash on the side. Those posts pop off.
Speaker 3 (32:22):
Yeah, So like, maybe like local Facebook groups and stuff.
If you're like Victoria, I don't know where to get
babysitting shifts, put an ad up in your local Facebook group.
Speaker 1 (32:31):
Absolutely, how cool.
Speaker 3 (32:32):
That's such a great idea. And I know just mentioned
creating things that can be sold on Pinterest or I
know you could sell on Pinterest, but you.
Speaker 1 (32:39):
Can sell on Pinterest, you can sell on its, sell
on Facebook market places exactly.
Speaker 3 (32:44):
There was maybe another one, but yeah, that's well, I
can remember right now. I actually did take the Etsy
advice and put some random PDFs up there?
Speaker 1 (32:51):
Did you actually? How good?
Speaker 3 (32:52):
I know? And so I'm like, you know, why not?
Because someone had in the thing, someone had sold like
five thousand dollars worth of just just a little times
table or something like that they had up there. That
was one hundred percent Like this is such a great idea,
So yeah, definitely go.
Speaker 1 (33:05):
Have listen exactly, and good suggestion because have a think,
is there a way that you could create some value
and also generate some passive income like selling a PDF,
Like even if it's a couple of dollars here and there,
that's a couple of dollars you didn't have before there
exactly right, And I mean passive in that it's something
that you set up and create once that continues to
earn you money over and over again. So like things
(33:27):
like your PDFs or printables or like an online course
or a workshop, that sort of thing really really smart.
Speaker 3 (33:33):
For sure, and all of these are good ideas, but
I feel like earning an extra hundred dollars here and
there won't help me reach one hundred thousand dollars.
Speaker 1 (33:41):
I agree, and I don't want you being like Victoria
is so out of touch. That's not going to get
me to one hundred K. There are lots of people
in our community and it has got them to one
hundred K. So like, is it that out of touch
if someone has done it before, Well, true, we can
learn from them. But that's also where investing comes in.
So if you're in your early to mid twenties, my friend,
you are in an excellent position to be able to
(34:03):
save one hundred thousand dollars by the time you turn
thirty five. Why you might ask, because you've got time
on your side, and unlike Beck and I who we're
not going to be able to achieve that, but we
might also still be able to achieve that by forty.
That's very cool. Yeah, because you've got time on your side.
Things like compounding interest can really help your money earn money.
And it's not a secret, but that is my favorite.
(34:25):
And according to the Australian Financial Review, the share market
returns an average of seven percent per annum, which is
a relatively conservative reflection of how well Australian shares or
ETFs are performing adjusted for inflation. So, if you invested
five hundred and fifty dollars per month from the age
of twenty five, the market continues to perform at seven percent, Well, yep,
(34:49):
you're going to reach one hundred grand by the age
of thirty five. Wow, okay, isn't that cool? Yeah, so
just for a little bit more context, that's roughly one
hundred and thirty eight dollars a week. Do you reckon
that over the next ten years? We could find one
hundred and thirty eight dollars a week.
Speaker 3 (35:04):
I it's going to be hard, but maybe like when
you say like that, it kind of seems.
Speaker 1 (35:09):
But if you really want something, yeah, yeah, yeah, you
would go, well, what one hundred and thirty eight bucks
after tax? Like that could be a four hour hospital shift,
that's true. Actually, that could be a few things that
you do in your free time. Yeah, so that could
be you know, you know, doing some hustling online, like
with your PDFs. It could be you know, maybe not
one hundred and thirty eight dollars a week, but combine
that with some dog walking, or combine that with the
(35:32):
fact that you know, babysitters cost on average nowadays like
forty bucks an hour. If you do babysitting and you
get a little reputation in the area, I can almost
guarantee you'll be booked out.
Speaker 3 (35:43):
So true, it does sound that seems.
Speaker 1 (35:46):
But slow and steady wins the race. And it's just
like these small things that could add up. And we're
not even talking about you saving any of your like
income that you earned from your job. Yeah, those were
just additional things. Additional but if you could find one
hundred and thirty eight dollars from your current income back,
that could become one hundred grand in ten years.
Speaker 3 (36:03):
Yeah.
Speaker 1 (36:04):
True, that's very cool.
Speaker 3 (36:05):
Okay, it does sound more achievable actually when you say
it like that.
Speaker 1 (36:08):
And do you want to do some maths?
Speaker 3 (36:10):
Yes, please, will want to do it.
Speaker 1 (36:12):
Oh do you want me to do the math You
could do the maths? Yeah, okay, Well I'm happy to
do the maths. And so if we go back to
that formula ratio, yeah, that a lot of people in
our community are using that fifty to thirty twenty ratio,
and we applied here one hundred and thirty eight dollars
a week is roughly five hundred and fifty two dollars
a month, which is twenty percent of two thousand, seven
(36:35):
hundred and sixty dollars. So if you had earned twenty
seven hundred and sixty dollars a month, which a lot
of people in our community are earning more, and you
put away fifty percent for your needs, thirty percent for
your wants, and twenty percent away for savings by investing it,
you might expect to reach the one hundred k mark
within ten years. And that's if you're earning under the
(36:57):
mean gross annual income for someone aged twenty in Australia
according to Cansta, which is roughly at the minimum amount
is sixty four thousand dollars a year for full time income.
Speaker 3 (37:10):
Okay, okay, that's pretty doable, it sounds like, but that's
like renting that cheap.
Speaker 1 (37:18):
So no, And that's why I'm like, look, let's use
this model because it might click for somebody, sure, but
for me that might work, like it kind of like
extrapolated out right, So like, if you earn forty thousand dollars,
me telling you to save twenty percent wild, Like, that's
so rude if you earn four hundred thousand dollars, I'm
(37:38):
so sorry. If you're not saving more or saving and
investing more than twenty percent of your income, you're doing
something wrong. Like imagine earning four hundred grand a year
and not being able to save or invest twenty percent
of it. Yeah true, yes, Like so it doesn't actually
like extrapolate out. Well sure, but some people in the
community have been asking me for different strategies and like, oh,
(38:00):
can you give me a percentage base? My friends, this
is why I haven't given you a percentage base. But
I want you to go back and have a look at, well,
how much is rent, how much are my bills? How
much is left after that? And what can I do
with that? And that's where I would be heading. So beck,
while we let that sink in and simmer, we're going
to go for a really quick break, and when we return,
we're going to be talking about some of the ongoing
(38:21):
things that you can do to manage your funds along
the way.
Speaker 3 (38:28):
Welcome back, everyone. So we left you in a bit
of a cliffhanger, and vd you let us know how
we're going to maintain or even get to our savings goal.
Of one hundred k.
Speaker 1 (38:37):
We're trying. We're trying, and I feel like there have
been some glaring oversights in the first half of the episode. Sure,
and we've just mentioned some things like how do we
build ongoing skills to maintain good savings habits so that
we don't self sabotage? So would you like to get
into that? Yes, all right, So there are some things
that you can do to ensure that there aren't any
(38:58):
leaks in your budget or in your ongoing earnings. And
the first one it's super easy. Okay, you're gonna get
rid of by now, pay later.
Speaker 3 (39:06):
Okay, that's really sad, is it?
Speaker 1 (39:09):
Okay, we can do what's sad about it?
Speaker 3 (39:11):
But I just love to have things now.
Speaker 1 (39:14):
Okay, and at what cost?
Speaker 3 (39:16):
God, that's a great question. VD. And see, there's a
little bit of work to do on me here. But
I will listen to you. I will listen to you.
Speaker 1 (39:24):
That's okay. But like work in progress, still progress.
Speaker 3 (39:28):
Exactly, still progress.
Speaker 1 (39:30):
I'm not mad. Like literally, I think people think, oh
my god, Victoria would be so disappointed. No, Queen, like,
you're here, you're listening, you're trying, and like that's the
best thing that we can ask for right, so it
is easier said than done, I suppose, But like that
is putting you in such a bad position, like they
(39:51):
represent too much of our country's debt people, particularly across
US millennials and also gen zs. There's another one, super
boring but really important. Okay, do you have an emergency fund?
If not, I need you to set one up. And
we are slowly working our way towards having three months
of our living expenses in there. And I say this
(40:12):
because you might be well on your way to reaching
your goal, but then like life happens, pets get sick,
cars need repairing, and maybe you need a surprise wisdom
tooth out, and that's when your budget is going to
least expect it. For some reason in my life and
I don't know about your life back, but the big costs,
they're like wait in the background until you have already
(40:35):
just made a big purchase or you've already done something,
and then they're like, ah, what about me? And you're like,
oh my goodness, why why did you do that? Why
didn't you tell me about you the week before so
it could feel more in control.
Speaker 3 (40:46):
Exactly exactly, that's what.
Speaker 1 (40:48):
Our emergency fund is for right. An emergency fund can
help you remain on track so that you don't have
to dip into your investments to free up some cash,
so that you don't have to rely on a buy now,
pay later, so you don't have to rely on a
credit card, because if you keep going back to those
same habits that got you in trouble in the first place,
you're on a path to self sabotage, like you are
(41:10):
not helping future you. Yeah, I care a lot about future.
Speaker 3 (41:13):
You, for sure. That's a really great call. We could
also think about like insurances. What about insurance, Like what
if you need to take some unexpected time off.
Speaker 1 (41:22):
Exactly, and please make sure you check on your insurances
inside super, actually scratch that, just check on your super
as a whole. Let's have a look at everything. Check
to make sure that money is actually going in every
single payday and your employer is paying your super. Because
if you right now just trust that they're doing it
and they haven't, it's going to be a really big
(41:44):
problem down the line. And now we have payday super
that just means that every single time you get paid back,
money should be being deposited into your superannuation. If that
is not happening, bring it up with your employer asap. Also,
let's just make sure that we don't have more than
one account where we're paying exorbitant fees, and that you
aren't paying unnecessary fees on multiple accounts and for multiple insurances.
(42:07):
And you can do this through the ATO portal. And finally,
just make sure you're not bleeding fees. Compare your super
to other supers on the market. There's a website that
you can go to that is government run that just
compares your superannuation and make sure that the link is
in the show notes. But you could be getting the
same coverage. You could be getting the same performance for
less fees. Money win. Or you could go talk to
(42:29):
your friends at sky Wealth who'll sort all your insurances
for you. Easy money win, money win.
Speaker 3 (42:35):
I hate surprise fees.
Speaker 1 (42:36):
Everybody does. Don't worry, I know.
Speaker 3 (42:38):
And so are there anyways to safeguard your savings?
Speaker 1 (42:41):
Well, if you need a holding account for your savings
before any of it is invested, that sort of thing,
you might want to look at opening a high interest
savings account so that way your money is earning money
each and every single month based on the latest interest
rate which I just checked was excellent for savers. It's
more than five percent money win. You're recive for those
who have a mortgage, I see because like, if your
(43:03):
savings are doing well, your mortgage is usually a little
bit high and vice versa. But before you do, please
make sure that you've read the frime print to ensure
that you understand how your rate is affected and if
and when you need to withdraw it and what that
looks like. Our team read a really good blog recently
which was identifying the top five savings accounts in Australia
that don't have any hoops that you need to jump
(43:25):
through to get your interest. Go have a look at that,
so beg. I feel like we're running out of time,
But what do you think? Have I made the runway
to one hundred K a little bit more manageable? Actually
it was.
Speaker 3 (43:36):
Pretty intimidating at the start, but it does seem more achievable.
Like I think it was the one hundred and thirty
eight dollars a week part that kind of did it
for me, especially when I think that oh yeah, you
can just like well not everyone, you can kind of
pick up a little side hustle here or there, just like, yeah,
I reckon, it's doable. I reckon it's doable, exactly.
Speaker 1 (43:52):
And what a privilege is to have that opportunity. Yeah,
And these strategies can be applied whether you're in your
twenties or you're in your thirties, or you're even in
your forties, because they're actually not about age. They're just
about organizing a money habit. And to be honest, it
was a really good hook to be like one hundred
grand before thirty five. I knew I'd get you guys
with that one, because see listen, you're still here. Yeah,
(44:13):
hell so you still want to save money, So let's
just do that. And what if your goal isn't to
reach that one hundred k, maybe it's to reach a
million dollars in your superannuation, my friend, you can also
apply that to make your supernuation have a healthy balance
or hi cold goal on forever honestly lovely listeners. Unfortunately,
I'm so sorry this is all we have time for today.
(44:35):
But if you found a juicy, a little tipbit in
this episode, please tell a friend or leave us a
review wherever you get your podcasts. We'll be back on
Friday with another I would say, very entertaining edition of
Friday Drinks and until then, thank you for being here,
thank you for being part of our community, and have
a lovely week by guys. The advice shared on Cheese
(44:59):
on the Money is rural 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 Divine
(45:19):
and She's on the Money are authorized representatives of money.
Sheirper pty Ltd ABN three two one six four nine
two seven seven zero eight AFSL four five one two
eight nine
She's on the Money. She's on the Money. My name's
Snatasha Bamblet.
Speaker 2 (00:11):
I'm a proud First Nations woman and I'm here to
acknowledge country. Hello, beautiful friends, we gather on the lands
of the Aboriginal people. We thank, acknowledge and respect the
Aboriginal people's land that we're gathering on today. Take pleasure
in all the land and respect all that you see.
She's on the Money podcast acknowledges culture, country, community and connections,
bringing you the tools, knowledge and resources for you to thrive.
Speaker 3 (00:32):
Hello, our lovely listeners, and welcome to She's on the Money,
the podcast that helps you feel more in control of
your financial future. You've joined us for another deep dive
where we'll be taking on an ambitious but achievable money challenge.
Do you reckon you could save up one hundred K
by the time you get thirty five?
Speaker 1 (00:49):
Because I'm already thirty five and so I can't work
in the past, Rebecca.
Speaker 3 (00:55):
Well tell you what vd you could have folled me.
You don't have the day of a twenty five. Thank you,
thank you. That's all the bowtop, it's in my forehead.
It's really working.
Speaker 1 (01:03):
Thank you. Thank me, maybe you're only a.
Speaker 3 (01:07):
Few years away, or maybe, like a few of us
on the team, that Milestone has will and truly sailed.
No matter where you see, this episode is packed with
ways to reframe the way you earn, spend, and manage
your money with learnings for well beyond this bracket. I'm
back side and the brilliant Victoria Divine is here to
help me dive headfirst into this subject from start to finish.
Speaker 1 (01:27):
I come here and I am very excited about this
episode because I feel like one hundred thousand dollars in
savings before thirty five is a really ambitious goal. But
I really guess that depends on where you're at and
what you're saving for. And I don't know, I feel
like there are a few ways that we could get
you saving one hundred grand m How how could it be?
Speaker 3 (01:50):
How could we always do it? I'm th four and
so that's possible. Still, let's say it's possible.
Speaker 1 (01:57):
So you just wanted to remind me that I am
still there, oldest, I didn't want to tell you that.
Speaker 3 (02:02):
Hey, listen, you're welcome. You know, the springiest chicken in
this I'm not.
Speaker 1 (02:07):
I'm not And do you know what I was just
thinking as you were talking that my botox isn't working
as hard as it should. Like you were like, you
don't look a day over twenty five, and I'm like, babe,
I do, but I do still feel like I look
thirty five.
Speaker 3 (02:19):
That's wild. Yeah, definitely don't.
Speaker 1 (02:21):
No, no, no, like, that's not me fishing for compliments
like being thirty five is a privileged I'm not mad
about it, but like, at what point do I get
the opportunity to age backwards? I know you mean by hacking,
not for me.
Speaker 3 (02:34):
Yeah, no, it's not too late. But look at Chris Jenner.
Speaker 1 (02:37):
Oh no, that was a whole face lift, babe, that
was a whole face lift.
Speaker 3 (02:41):
Buy a new face it in.
Speaker 1 (02:41):
That's actually terrifying. No, let's talk about money, which is terrifying,
but not as terrifying as them peeling off your face
and resticking it somewhere else.
Speaker 3 (02:51):
Okay, let's do that, all right. So I guess vid,
if you'd approached me by early twenties and said here's
how to make one hundred K, I think you're firstly
a scammer and secondly delusional. So I'm definitely keen to
hear how to make this feel practical, you know.
Speaker 1 (03:04):
Absolutely, and I can promise you right now that I'm
not a scammer. But if you could just send me
your bank accounting no. No, And I feel like that's
the name of the game that we are playing today, Beck.
I want to tackle this in a way that feels approachable,
in a way that actually makes sense and means that
you could probably do it. But that means I have
to break down the goal. And I always talk about
(03:26):
breaking down the goal, but today we're going to break
it down into three parts. What you earn, what you
spend an ongoing money management. So hopefully by the end
of the episode, you're going to feel really empowered to
make money moves that essentially amplify your wealth or at
least leave you with the mindset that shifts you into
being able to reframe what your next financial goals are
going to be. But first coffee break, we are going
(03:49):
to take a quick break, and right after we will
dive straight in. All right, miss becksied Before we get
into the how, I wonder if people care about the why?
Speaker 3 (04:04):
Yeah, I mean the why is it seems like not
the most important bit, but honestly, like who wouldn't want
hundred K. It seems like a safe amount of money
to have saved up and ready to go ideally like
it's a crazy amount. But I feel like you might
aim for this goal even without having a clear reason
behind it. So does it matter if we have a reason.
Speaker 1 (04:22):
I mean, you don't need a reason, but a reason's
going to help you achieve your goal? Yes, quicker true,
because otherwise I'll be like beck, but you're saving, and
you'll be like for what it doesn't matter, like you
don't have any drive. But I feel like finding a
reason to reach this milestone is going to make it
more real. And it's kind of what takes it from
being an arbitrary number to one that has actual personal significance.
(04:46):
Some people in our community who have saved one hundred
thousand dollars, because there are lots of you, they say
that it was just a nice round number, or they
might say, oh, that's the number that makes me feel comfortable,
or there might be a really specific thing they want
to achieve with the hundred thousand dollars. But instantly I
can think of a few reasons, and I'm happy to
share why you might aim for this goal. Maybe you're
(05:09):
super eager to get into the property market and you're
saving up for a house deposit and that might be
on the cards for you, and based on the current
research that you're doing and property prices across Australia, a
standard ten percent deposit, which is what I'm seeing the
most in Zell of Money, So most of our first
home buyers are only buying with the ten percent deposit.
That puts you at about one hundred grand in savings
(05:31):
because the average property in Australia is sitting at about
a million dollars. Terrifying, It really is terrifying.
Speaker 3 (05:37):
So there are a few grands so that you can
access as a first home buyer.
Speaker 1 (05:41):
Oh totally, totally, And if you're a first home buyer,
you might be eligible for like a grant or a concession.
So this is a complete detail. But the first home
buyers five percent deposit scheme means that you only need
five percent for a deposit to purchase a property instead
of the standard ten percent, which brings your deposit closer
to that fifty thousand dollar mark based on average property prices,
(06:03):
which honestly is a really big deal because people often
forget that the building isn't the only expense involved in
buying a property, and you very likely will need funds
to cover a conveyancer or to complete a building inspection
prior to settlement.
Speaker 3 (06:18):
Okay, and like furnishing the place, fridges, things like that.
It all adds up.
Speaker 1 (06:23):
There's so expensive white goods is a conversation for another day.
Speaker 3 (06:26):
Oh my god, I know. So you might be saving
for a house. What are some of the other reasons
to save?
Speaker 1 (06:31):
So you might be thinking, VI, I just don't want
to work over the age of thirty five on a
retire early and maybe then saving up one hundred thousand
dollars might be part of that long term investment plan
where you want to create a portfolio that is so
strong that you could live off the dividends and never
have to work another day in your life.
Speaker 3 (06:48):
Gorgeous. That's someone on the team's doing that right.
Speaker 1 (06:50):
Yes, absolutely so, Brook who is on our team is
on the path to fire, which is very cool. That
stands for financial independence, retire early, and it's this idea
that you grind during your early years and your early
twenties so that you can set yourself up to retire
in your thirties. But let's be brutally honest. I don't
(07:12):
think it's for the faint hearted, Like that's a lot.
It involves saving really aggressively, and I'm talking between like
fifty to seventy five percent of your earnings for a
relatively long period of time. And last time I checked
in with Brooks, she's saving like seventy percent of hear income.
Speaker 3 (07:26):
That's wild, that sounds.
Speaker 1 (07:29):
I'm really proud of her, Like that is the coolest
thing ever. Yeah, but someone can be doing something cool
and I can recognize that that would not work for me.
Speaker 3 (07:38):
Absolutely, I really really admire that. That sounds so challenging
because when you think about your teens and your twenties,
for example, like, yeah, it's a time where you coincidentally
also might want to spend more more freely, or at
least your friends might, and you kind of feel like
you got to keep up, exactly, And.
Speaker 1 (07:55):
It does definitely involve a certain level of frugality and
being able to live below your means and being able
to think about the bigger picture and having a really
great sense of delayed gratification. Honestly, it's not for everybody.
Speaker 3 (08:08):
Yeah, and what if you already have some pretty big
financial coquitments or like kids or things like that.
Speaker 1 (08:13):
You know exactly. And I think that that's what makes
it so attractive to only a certain group of people.
Whereas if you said to me, Victoria, you're going to
do fire, like my lifestyle actually just doesn't allow for that. Like, honestly,
there is absolutely no way that my husband and I
could save seventy percent of their income. It's just not happening.
I now have two kids, I have a mortgage, I have,
(08:35):
you know, lifestyle costs that I don't really want to change.
It's just not good to work for me. And that's cool,
that's fine, but it's just not good to work for me.
I mean, it's not impossible, but those things do make
it significantly harder. And I mean, if that is something
that you're interested in, though, and you've decided, wow, v
I would really like to do fire. You can change
(08:58):
your whole life. You can structure everything, like technically, Steve
and I could sell our property, we could change the
way that we live our lives and we could maybe
make it work. Don't want to, though, And I mean,
if you really want to, I would strongly encourage you
go back and listen to our episode with Brooke and
her investing strategies, So make sure that's in the show notes.
But like that's fun, Yeah, okay, it's it's a good
(09:21):
like concept.
Speaker 3 (09:22):
I feel like it wouldn't work for me either, But
so property fire. What about some other goals? What if
you are planning to.
Speaker 1 (09:29):
Study later in life? Very cool, very cool. You might
have already done maybe like an undergrad, and you thought,
one day, I'm going to go back and like do
my masters or a PhD, and maybe after I've had
some more life experience, though I don't want to do
it immediately. But I also can't afford to study full time,
So you might want to be able to like afford
(09:50):
to study full time instead of having to work and study,
which can be a lot beck. You might also just
want to travel the entire world. You might want to,
you know, do that and have a reliable income to
support living overseas for an extended period of time. Or
maybe you've already entered the property market and you just
want to renovate or build like you go V I
really want new bathrooms and a new kitchen and two
(10:14):
new bathrooms and a kitchens one hundred grant, Yeah, and
unfortunately in this economy, very likely, Oh.
Speaker 3 (10:20):
Man, I mean you might have aging parents or relatives
as well, and like that's something to consider. Maybe you're
a carer and you know you'll need extra money to
help support the people you care about in the future.
Speaker 1 (10:30):
Exactly. There is so many reasons back, and so many
good reasons why you might want to save one hundred
thousand dollars by the time you reach thirty five. But
the real question is how the heck do we do it.
So let's look at the ways that we're spending and
earning money. So it would be remiss of us to
talk about increasing our savings if we are struggling, we're
(10:51):
spending or debt like so silly. Saving when you owe
money can feel like an uphill battle. Yeah, one that
I get because I've been in there. So if you're
listening to this and you're thinking, Victoria Devine, what are
you doing? I cannot possibly say one hundred grand, let
alone a thousand dollars. I get it. I've got you.
(11:11):
I've actually created a bunch of resources like playlists and
spreadsheets to help you consolidate debt and ultimately get rid
of it. And you can apply that across everything from
credit cards or loans or buy now, pay later situations.
Like any type of debt can be tackled. You can
change your life. While we have these strategies to help
eliminate debt, we also kind of have to dig a
(11:33):
little bit deeper to understand the mindset behind this spending
that you have. Because if you don't understand it, I
promise you'll do it again. True, Like, if you don't
understand why you got into that debt, you're going to
get into it again because you might go, hey, v
I've got let's do a little scenario. You've got twenty
thousand dollars in credit card debt. You feel overwhelmingly swamped.
(11:56):
You go, I've got to get rid of it. You
knuckle down, you listen to our podcast, You download my
free budget, you download the Savings Truckers. You have smashed
this twenty thousand dollars debt out over two years. You
are debt free. We haven't looked at why you got
into debt in the first place, so you just feel free. Yeah,
it's time to live a little. It won't matter. You
didn't close your credit card.
Speaker 3 (12:16):
Did you? Hopefully not?
Speaker 1 (12:18):
No go again exactly and do you know how many
times people relapse into debt? Ye astronomical amounts. So we
need to understand why are you chasing a dopamine hit?
Do you just really like doing a tappy tappy? I
get it is lifestyle creep, meaning that you're responsible for
regular splurges or you're spending beyond your means. Like one
(12:40):
of the things I've talked about so consistently on this
podcast is lifestyle creep and what it actually looks like.
So way back when, and you know, Beck, you don't
buy a makeup no, because you're a better person than me.
But I used to buy makeup at the supermarket and
like you know, if my Mabeline mascara was on sale,
money win eight bucks. But then my life got more
(13:02):
expensive and I discovered Mecca and everything got really expensive
and I justified that because I was older, I deserved it.
That was what lifestyle creep looked like for me, and
my spending got out of control. You need to deeply
look at where's your spending going because you might go, oh, Victoria,
I spend money on cosmetics, but I have to spend
that amount of money. No, you don't, you absolutely don't
(13:25):
and you are just deluding yourself when it comes to
the reality of your situation. Maybe you're falling prey to
like present bias, where we really overvalue the benefit of
having a shiny new thing today over the pain of
paying for it tomorrow. I'll just work it out later,
doesn't matter. I'll just get it today, I'll work it
(13:45):
out later. I won't do it again. But then what
do we do back?
Speaker 3 (13:49):
We do it again? We do it again, hopefully, Like
I feel like I'm a combination of some people out
there that might be listening being like, oh, I can
find a job for a long time.
Speaker 1 (13:58):
That's a different story.
Speaker 3 (14:00):
Had to And in that case, maybe there's no underlying
issue where you you will do it again and again
when your life just got hard exactly is very different.
So you just wanted to mention that in case you're
listening and.
Speaker 1 (14:12):
Like, hey, we get you though, but like, that's why
I'm saying things like lifestyle creep or getting a dopamine hit,
or you know, you really like shiny things and you
haven't really thought about having to pay them back tomorrow
because you think it's a tomorrow problem. And he's always
a tomorrow problem, right, Yes, I'm not saying, oh, life
got really expensive and you had school fees coming up
and you didn't want your kids to go to school
(14:33):
without shoes. That is not the circumstance I'm talking about here.
And if you're going into debt for those reasons, or
you're going into debt to put food on your table,
pop off, Queen. Absolutely I back you. I don't want
you to be there forever, which is also why we
have all these tools and resources, and you still need
to kind of like be on top of it. Yeah,
but like I will never crucify someone young. Got nothing
(14:53):
to worry about in that case exactly. But what we
do need to do, Beck, is get to know why
you spend the way that you do so that you
can kindly adjust your mindset to better support your money goals.
Speaker 3 (15:06):
So what if, say, like you've sorted out your mindset,
what are some practical tips to help you spend more responsibly.
Speaker 1 (15:12):
Automate your pay And you know what, Beck, you still
haven't done this. I know you haven't done this because
I just know that this would be something that really
helped you because you chase dopamine in the same way
that I do.
Speaker 3 (15:26):
And if the money is in my account. I'm a
duer spending that's true, I'm going to do it. So
I actually need a bigger system than myself to take
the money away from me and stop me from spending
it and transfer it automatically somewhere else. And this is
something that we mention in our episode on investing your twenties,
thirties and forties and beyond.
Speaker 1 (15:46):
And if you haven't already, please go back and listen
to this. But essentially, if all your money gets allocated
to things like rent and bills and petrol, it is
so much harder to commit to things that are outside
of your budget because like in your immediate debit card
that you actually do the spending on, it's not there
and you have to go, oh, I wonder, but I've
(16:07):
already separated off the money for your rent beck and
you know that's rent money. That becomes much harder to
spend because like, oh, yeah, actually that's rent money. Yeah, Like,
I'm making it harder for you on purpose, And this
behavior is going to prioritize saving as an automated behavior
because honestly, we're human beings. Sometimes we just can't be trusted,
(16:29):
like even with ourselves. But it's going to reduce the
strength of tempting purchases. So you can also bolster this
with a spending buffer for any like non essential purposes.
I'm not saying don't have fun, but if you want
to do some spending, maybe waiting twenty four or forty
eight hours before dropping the money on an online sale
(16:49):
is a really good idea, because you actually don't want
those leggings totally. Yeah, I thought I really, really really
wanted them, and then all of a sudden the spending
dopamine high wasn't there, and now it just because it
is a logistical thing, I have to go back and
I have to find it and have to put them
back in my cart, and I just can't be bothered totally.
Speaker 3 (17:05):
And actually, like a step further, if you imagine yourself
receiving the package and then having to throw away the packaging.
You're to find a spot for it.
Speaker 1 (17:15):
And what if it doesn't fit right, and what if
it doesn't look like on me what it looked like
on the model, and then.
Speaker 3 (17:20):
You gotta take it back to the post office.
Speaker 1 (17:22):
No oh no, And you all know I'm not going
to take it back to the post office. And it's
just going to be a giant money loss save yourself.
Speaker 3 (17:28):
So I guess buffer is really smart, especially if you
love an impulse by Yes, but back to automation, how
do you know how much to automate? Are there any
helpful rules or spreadsheets and things we can offer to
our listeners?
Speaker 1 (17:39):
Okay, so I hate this, but I'm going to mention
it because the community talks about it a lot, not
because I believe in it. Because I'm going to talk
about really quickly, like a percentage based rule, and I'm
going to do it because it might work for you.
And I'm not one to gate keep stuff just because
I don't think it works for me. Sure, I'm just
going to give you the information. Why don't I think
(18:00):
a percentage based budget works? Because Beck, if you earn
forty thousand dollars and I tell you to save twenty percent,
immediately you feel like trash. Yeah, because I've said, Beck,
you need to save twenty percent, you go Victoria, don't
have twenty percent, Say you're already I'm already behind. And
then because I said twenty percent, you go, well, anything
(18:21):
less there's a failure.
Speaker 3 (18:22):
Yeah, yeah, that's true.
Speaker 1 (18:24):
That banks my community feel like trash but some people
have been really liking applying what they call the fifty
to thirty twenty rule, and it means keeping fifty percent
of their earnings for things they need, thirty percent for
things that they want, and twenty percent of their income
for savings. Okay, now, do I think that in this
(18:45):
economy that works perfectly? No, because for some of us,
fifty percent that's actually just our rent exactly, that's just rent,
and it's already gone. But I think sharing these you
might go, oh, actually, I just cannot, Victoria, get my
head around doing a whole budget. I'd really like just
(19:07):
to be told transfer, you know, twenty percent of my
income and then we're just going to call it like,
I don't want to think about it. And if that
helps you pop off, Queen, I'd love that. But for
a lot of people, that's just not going to work.
But of course you might also choose to adjust this
like plan based on a monthly target or an investment plan.
And I'm going to explain what I mean by this
(19:28):
later in that episode, but it could also be about
like applying a ratio.
Speaker 3 (19:32):
Okay.
Speaker 1 (19:33):
Additionally, free on our website, we have so many resources
that you can just download print, you know, use as
a spreadsheet to help you establish yours on your way
to one hundred K. So you can work that out.
But the first step is really recognizing what you spend
each and every single month, which can be very confronting.
And I'm sure if I said, beck can I see
(19:54):
your bank statements right now? You'd be like, ah, no,
maybe later, do you know what I mean? Like, not
all of us are comfortable with that. I'm not even
comfortable with that. If you said, Victoria, can I see
bank statements? I'd be like, no, no, yes, And that's okay,
But I promise just doing it with yourself, like you
don't have to show anybody else. It's confronting, but it
(20:14):
is worth it because when you have a very clear
idea of what you've been spending in a normal month
and we can add it up, I can go back,
did you know that you spent X on X? You
go fire out? That does add up. It is going
to help you change your behaviors more significantly than me
just saying, Hey, that thing you do, I don't think
you should do it?
Speaker 3 (20:34):
Yeah?
Speaker 1 (20:34):
Cool?
Speaker 3 (20:35):
Why for sure?
Speaker 1 (20:36):
Like I need to give you a really solid reason
and then you'll be able to set like a really
clear runway of what you need to save and what
you need to earn in order to move forward and
keep managing your money.
Speaker 3 (20:47):
Okay, So say we've done the audit and there are
a bunch of things and buying every month that fall
under the one list. Yes, So what can we do
then to help produce outgoings without compromising on what we enjoy?
Speaker 1 (20:59):
Yeah? Because I love coffee, and I think you and
I are on the same page. We adore Brook. We
think she's absolutely fantastic, and I am so proud and
honestly in awe of the fact that she is saving
seventy percent of your income and plans to be in
a situation where she could retire by the age of
thirty five. Crazy, you and I. That's not our journey.
(21:20):
Couldn't be us, couldn't be us. And that's okay. But
I suppose you have to ask yourself, how much do
you want to achieve this goal of saving one hundred
thousand dollars by thirty five and what it might mean
to you? Is it more meaningful than a nice matcher
that cost you eight dollars? Is it worth swapping a
coffee date? For a walking one. Is it, you know,
a subscription? Is it necessary? Or could you find another
(21:43):
source of entertainment that's maybe more affordable in the meantime,
Because I'm not saying that you can't do these things,
but unfortunately in life we have to compromise, sure, and
you get to choose what you compromise.
Speaker 3 (21:58):
It's a great hall. I do hear a bunch of
people are going back to DVDs, chic. I know, if
there's something that you enjoy, like you maybe you have
a streaming service, You're like, hey, go back to DVDs
all buying secondhand or learning how to mend clothes or
repair things, or heaps of new social groups popping up
where people are skill sharing saved money while building community.
Speaker 1 (22:18):
Yeah. Like Jess and how she goes to sewing class. Yes,
isn't that cute? It's actually the most wholesome thing ever. Like,
I love it so much. I was telling my sister
the other day because she was like, oh, because for
some reason, I was the one paying attention when my
mom taught us to sew, and my sister was always like, no,
go away, I'm going to my room, and like she
never learnt sew properly, and she's like, maybe I'll go
to sewing class, and I'm like, do it.
Speaker 3 (22:40):
That's cute.
Speaker 1 (22:41):
Anyway you can live below your means or find thrifty
ways to enjoy things that you love. I promise again,
you might have to step out of your comfort zone
to work out what that looks like. That's okay, and
maybe you start going out less or you just say,
you know what, when I go out, I'm not going
to order a wine because that will cost me fourteen dollars.
(23:01):
I'm just gonna swap it for like a non alcoholic one.
And yes, I'll still order myself and I drink, but
I'll just have a coke or something. And we can
start saving in really small ways because all of those
things add up in the long term. Beck, let's pivot, yeah,
because you can only save so much, Like you can
only save on things and scrimp and you know, rejustify
(23:26):
you're spending. Yeah, Like, and I think if you've gotten
this far in the episode, to think of Victoria not
having the eight dollar iced matcher and not having a
fourteen dollar wine when I go about is not going
to get me to one hundred thousand dollars, Like Queen,
you would be correct, because we need to talk about earning.
Speaker 3 (23:45):
Yes, at the end of the day, if you don't
have money coming in the door, how do you think
you're gonna save it? Very true?
Speaker 1 (23:50):
Now, Beck, you might be thinking saving one hundred thousand
dollars by the age of thirty five would be easier
if I just earned more. And I mean that's definitely
one of the level that you could pull, but it
is not the be all, end all, And if you
haven't already thought about it, I want you to see
whether you can negotiate your worth in your current job.
It might be hard, it might be overwhelming. But if
(24:11):
you haven't asked for a pay rise in a while,
and you've worked for that company for a few years,
my queen, what are you doing?
Speaker 3 (24:16):
Sure?
Speaker 1 (24:17):
Yeah, can you maybe make a case for a pay
rise or a salary review? If you're not sure how
to do this, Beck, and I have your back, don't worry.
Or maybe it's your first rodeo and you're like, I
just don't know what to do. I know that you've
got my back. I would start with our blog that
I'm going to link in the show notes, which is
completely dedicated to asking for a pay rise, including scripts
(24:39):
and things like that that you can use in an
email to start the conversation, because sometimes just starting the
conversation is the hardest part, which to be like, I
don't know what to say, I don't know what to do.
And also I'll tell you what you don't deserve a
pay rise for, because I'm not going to be like, oh, Beck,
just ask for more money. Yeah, like that's not realistic.
And of course another way to get a pay rise,
and employers are not going to like this is to
(25:01):
consider switching workplaces, which can often result in a bigger
leap in income. I have and I'm I don't know
if you've noticed that, but I'm born to yap crazy.
I had noticed I having yap into some girls in
my Instagram dms recently and they were like, V I
want to earn more money, I want this, I want that.
And I told one of the girls in my DMS,
(25:25):
I said, look, being really blunt, you are like, because
she actually worked in the financial services industry in a
broking role, being quite blunt, you are being very underpaid.
And you know she showed me the email. Because I'm pervy,
I was like, show me the email that your employer
like sent back about you not getting a pay rise,
and I was like, they are disrespecting the hell out
of you. I'm so sorry, but like for them to
(25:46):
send you that and have the audacity to do what
they were doing, Oh my god, why don't you go shopping?
And she I was like, go shopping, Like you know
how sometimes you go shopping back and you don't buy anything. Yeah,
and that's okay because you still went shopping and then
you went home and you were like maybe like, oh,
well the jeans I have already are really good because
like the ones that I went shopping for they didn't
fit quite right and so I didn't get them. Yeah,
(26:08):
is it? Goes shopping? Go see what other jobs are
on the market, Like you're not accepting a new job,
and I think sometimes people get a little bit angsty.
You're like, oh, I don't know, v if I want
to like leave my current role, will go shopping. Just
have a look, Just have a look, see what's out there,
see what other jobs are playing at. Yeah, and she did,
and she got a twenty thousand old pay rice.
Speaker 3 (26:28):
Oh my god, that's so good.
Speaker 1 (26:30):
And I'm just so happy that I got to be
part of that like live journey. Yes, because I was like, no,
do it.
Speaker 3 (26:35):
She's like I'm really anxious, and I'm like knuckuen get it,
Like go to this interview, and if you don't get it,
Like if they say no, who cares?
Speaker 1 (26:43):
Because you already have a solid job for sure. Like
the best time to interview is when you don't desperately
need the job exactly right, because you're not anxious about
getting it, you'll probably show up as your more authentic
self anyway, which is exactly why she probably got the
job exactly But that's why I said, employees aren't going
to like what I have to say, because I want
you to take a look around. I want you to
(27:03):
see what other employers are paying and you can go
from there. Can you get like an extra ten percent
per year? Could you get more? Have you listened to
any of our other episodes about what that ten percent
could mean for your future wealth? Like we did a
whole episode on supernuation salary sacrificing and that was based
on five percent, Yeah, and that got most people to
having a million dollars in there? Super what's ten percent
(27:23):
going to do for you? Exactly? Right?
Speaker 3 (27:25):
Oh my god, s, guy's a limit. What if you're
a nurse or something, or someone who works in a
rural town or in an industry where it's harder to
just demand a pay right.
Speaker 1 (27:32):
Oh yeah, that advice does not work for everybody, because
some people, like our nursing friends, who like you guys,
need to be paid so much more. But that's again
a conversation for another day. You're on a salary band,
You're like, I actually can't be legally paid more than this,
Like I'm never going to get a pay rise. Of course,
things like location and your industry and even your gender
(27:53):
are going to be affecting how much you are getting
paid before you've even had a say in it is
not I'm not saying that this advice works for everybody.
And if you're wondering what gender has to do with this,
please check out one of our episodes about the gender
pay gap to learn much more about that and what
I'm talking about. Because again, conversation for another day. But
(28:14):
let's say you're in an industry where unpaid placements are
completely unavoidable as a part of your career progression, paid them.
Oh it makes me.
Speaker 3 (28:23):
So mad, you know, and it's full time too, like
one day, sure, full time, unpaid, and how to study.
Speaker 1 (28:30):
Five in this economy, even any other economy, How is
that reasonable?
Speaker 3 (28:34):
I know, I cannot believe. That's a thing.
Speaker 1 (28:36):
I got so unnecessarily mad when I was building Sheese
on the Money because somebody suggested to me to get
unpaid interns to help with the work. And I was like,
I can't even justify that, and they were like, well,
you know, the nursing industry does.
Speaker 3 (28:48):
And I was like, sickening gross, I.
Speaker 1 (28:50):
Know, so gross. But let's just say that you're in
that space. How do you think you could earn more
when your position and your seniority and your industry died,
your financial situation Beck exactly exactly.
Speaker 3 (29:03):
So well, guess we're gonna get creative.
Speaker 1 (29:05):
We get creative, exactly.
Speaker 2 (29:08):
Now.
Speaker 1 (29:08):
There is a whole episode that you and Jess actually recorded.
I remember this one because I'm having nothing to do
with this one U two Psychos. It's dedicated to unhinged
ways to earn extra income, which our listeners might want
to return to or at least use to inspire their
future earnings. But some of the suggestions included things like
(29:28):
selling second hand items or flipping thrifted clothes online or
taking up a side hustle or value creation. So there
are a lot of them, and there are literal episodes
that we have dedicated to this totally.
Speaker 3 (29:40):
And I think I mentioned like how I got extra
HOSPO shifts by using the platform or the app called
sup supp which we can include in the show notes.
But you can apply for full time jobs or just
single one off shifts that that is.
Speaker 1 (29:54):
So close to you. I didn't know it had changed
into an app because years ago, and I'm talking like, oh,
this would be like twenty ten, twenty eleven when I
was in early UNI and I had two jobs because
again I was crazy, but also I had to fund
my life, and it turns out life is expensive. I
also worked with this group and I don't know if
(30:15):
it's still around. It was called Octopus.
Speaker 3 (30:17):
Oh that sounds familiar.
Speaker 1 (30:18):
And I worked for a group called Peter Rowland as well,
and so they were like Hospo kind of like contract jobs,
and we didn't have an app, and app would make
it much better. But they used to send around emails
and it was basically a first investorss as to who replied,
and they'd be like, hey, we have a random shift,
and this is how we ended up working at the
most random locations. Hey we have a random shift at
(30:40):
the Melbourne Aquarium for a wedding, Right, great, I'll do it.
Hey we have shifts for the Melbourne Cup. How we
have shifts for like these events that would come up
and I'd go and be a waitress or I'd go
and work behind the bar. And if you've got those skills,
maybe like something like that could work. Because if they
came up and they didn't sue me at it, take them.
(31:00):
But if they came up and I'd be like, oh
my goodness, like, yes, I would like a Sunday shift
because I was getting double time and a half to
do some hosp bow stuff. Yes, of course I'll take
a four hour shift. Why the hell not exactly. So
that is a very cool way of going about it
because you don't need to commit to an ongoing like
every single Saturday shift or in every single weeknight shift.
(31:21):
You can be like, all right, I'm gonna knuckle down.
This could even be for a holiday. I'm gonna knuckle down.
I'm gonna pick up some random shifts of stuff. Just
get it done. Get some extra cash in my dad
can be ahead, so cool.
Speaker 3 (31:33):
And if you have a mode of transport, so if
you've got a car, or you've got a bike, or
you've got a little scooter, beck, you could be like
a door dusher and earn. Like you could join uber
and you could earn a little on the side by
making deliveries. And maybe you're also like a multidisciplinarian queen
and you do some sewing, or maybe you do some
(31:54):
babysitting or dog walking on the side. All of those
things can help add to your earnings and eventually savings.
Speaker 1 (32:01):
Potential for sure. And recently I've joined a few and
it's just because I'm really stepping into my millennial era.
I've joined some local Facebook groups for my community, and
I'm seeing lots of people post, hey, like I would
love to walk some people's dogs, like for some extra
cash on the side. Those posts pop off.
Speaker 3 (32:22):
Yeah, So like, maybe like local Facebook groups and stuff.
If you're like Victoria, I don't know where to get
babysitting shifts, put an ad up in your local Facebook group.
Speaker 1 (32:31):
Absolutely, how cool.
Speaker 3 (32:32):
That's such a great idea. And I know just mentioned
creating things that can be sold on Pinterest or I
know you could sell on Pinterest, but you.
Speaker 1 (32:39):
Can sell on Pinterest, you can sell on its, sell
on Facebook market places exactly.
Speaker 3 (32:44):
There was maybe another one, but yeah, that's well, I
can remember right now. I actually did take the Etsy
advice and put some random PDFs up there?
Speaker 1 (32:51):
Did you actually? How good?
Speaker 3 (32:52):
I know? And so I'm like, you know, why not?
Because someone had in the thing, someone had sold like
five thousand dollars worth of just just a little times
table or something like that they had up there. That
was one hundred percent Like this is such a great idea,
So yeah, definitely go.
Speaker 1 (33:05):
Have listen exactly, and good suggestion because have a think,
is there a way that you could create some value
and also generate some passive income like selling a PDF,
Like even if it's a couple of dollars here and there,
that's a couple of dollars you didn't have before there
exactly right, And I mean passive in that it's something
that you set up and create once that continues to
earn you money over and over again. So like things
(33:27):
like your PDFs or printables or like an online course
or a workshop, that sort of thing really really smart.
Speaker 3 (33:33):
For sure, and all of these are good ideas, but
I feel like earning an extra hundred dollars here and
there won't help me reach one hundred thousand dollars.
Speaker 1 (33:41):
I agree, and I don't want you being like Victoria
is so out of touch. That's not going to get
me to one hundred K. There are lots of people
in our community and it has got them to one
hundred K. So like, is it that out of touch
if someone has done it before, Well, true, we can
learn from them. But that's also where investing comes in.
So if you're in your early to mid twenties, my friend,
you are in an excellent position to be able to
(34:03):
save one hundred thousand dollars by the time you turn
thirty five. Why you might ask, because you've got time
on your side, and unlike Beck and I who we're
not going to be able to achieve that, but we
might also still be able to achieve that by forty.
That's very cool. Yeah, because you've got time on your side.
Things like compounding interest can really help your money earn money.
And it's not a secret, but that is my favorite.
(34:25):
And according to the Australian Financial Review, the share market
returns an average of seven percent per annum, which is
a relatively conservative reflection of how well Australian shares or
ETFs are performing adjusted for inflation. So, if you invested
five hundred and fifty dollars per month from the age
of twenty five, the market continues to perform at seven percent, Well, yep,
(34:49):
you're going to reach one hundred grand by the age
of thirty five. Wow, okay, isn't that cool? Yeah, so
just for a little bit more context, that's roughly one
hundred and thirty eight dollars a week. Do you reckon
that over the next ten years? We could find one
hundred and thirty eight dollars a week.
Speaker 3 (35:04):
I it's going to be hard, but maybe like when
you say like that, it kind of seems.
Speaker 1 (35:09):
But if you really want something, yeah, yeah, yeah, you
would go, well, what one hundred and thirty eight bucks
after tax? Like that could be a four hour hospital shift,
that's true. Actually, that could be a few things that
you do in your free time. Yeah, so that could
be you know, you know, doing some hustling online, like
with your PDFs. It could be you know, maybe not
one hundred and thirty eight dollars a week, but combine
that with some dog walking, or combine that with the
(35:32):
fact that you know, babysitters cost on average nowadays like
forty bucks an hour. If you do babysitting and you
get a little reputation in the area, I can almost
guarantee you'll be booked out.
Speaker 3 (35:43):
So true, it does sound that seems.
Speaker 1 (35:46):
But slow and steady wins the race. And it's just
like these small things that could add up. And we're
not even talking about you saving any of your like
income that you earned from your job. Yeah, those were
just additional things. Additional but if you could find one
hundred and thirty eight dollars from your current income back,
that could become one hundred grand in ten years.
Speaker 3 (36:03):
Yeah.
Speaker 1 (36:04):
True, that's very cool.
Speaker 3 (36:05):
Okay, it does sound more achievable actually when you say
it like that.
Speaker 1 (36:08):
And do you want to do some maths?
Speaker 3 (36:10):
Yes, please, will want to do it.
Speaker 1 (36:12):
Oh do you want me to do the math You
could do the maths? Yeah, okay, Well I'm happy to
do the maths. And so if we go back to
that formula ratio, yeah, that a lot of people in
our community are using that fifty to thirty twenty ratio,
and we applied here one hundred and thirty eight dollars
a week is roughly five hundred and fifty two dollars
a month, which is twenty percent of two thousand, seven
(36:35):
hundred and sixty dollars. So if you had earned twenty
seven hundred and sixty dollars a month, which a lot
of people in our community are earning more, and you
put away fifty percent for your needs, thirty percent for
your wants, and twenty percent away for savings by investing it,
you might expect to reach the one hundred k mark
within ten years. And that's if you're earning under the
(36:57):
mean gross annual income for someone aged twenty in Australia
according to Cansta, which is roughly at the minimum amount
is sixty four thousand dollars a year for full time income.
Speaker 3 (37:10):
Okay, okay, that's pretty doable, it sounds like, but that's
like renting that cheap.
Speaker 1 (37:18):
So no, And that's why I'm like, look, let's use
this model because it might click for somebody, sure, but
for me that might work, like it kind of like
extrapolated out right, So like, if you earn forty thousand dollars,
me telling you to save twenty percent wild, Like, that's
so rude if you earn four hundred thousand dollars, I'm
(37:38):
so sorry. If you're not saving more or saving and
investing more than twenty percent of your income, you're doing
something wrong. Like imagine earning four hundred grand a year
and not being able to save or invest twenty percent
of it. Yeah true, yes, Like so it doesn't actually
like extrapolate out. Well sure, but some people in the
community have been asking me for different strategies and like, oh,
(38:00):
can you give me a percentage base? My friends, this
is why I haven't given you a percentage base. But
I want you to go back and have a look at, well,
how much is rent, how much are my bills? How
much is left after that? And what can I do
with that? And that's where I would be heading. So beck,
while we let that sink in and simmer, we're going
to go for a really quick break, and when we return,
we're going to be talking about some of the ongoing
(38:21):
things that you can do to manage your funds along
the way.
Speaker 3 (38:28):
Welcome back, everyone. So we left you in a bit
of a cliffhanger, and vd you let us know how
we're going to maintain or even get to our savings goal.
Of one hundred k.
Speaker 1 (38:37):
We're trying. We're trying, and I feel like there have
been some glaring oversights in the first half of the episode. Sure,
and we've just mentioned some things like how do we
build ongoing skills to maintain good savings habits so that
we don't self sabotage? So would you like to get
into that? Yes, all right, So there are some things
that you can do to ensure that there aren't any
(38:58):
leaks in your budget or in your ongoing earnings. And
the first one it's super easy. Okay, you're gonna get
rid of by now, pay later.
Speaker 3 (39:06):
Okay, that's really sad, is it?
Speaker 1 (39:09):
Okay, we can do what's sad about it?
Speaker 3 (39:11):
But I just love to have things now.
Speaker 1 (39:14):
Okay, and at what cost?
Speaker 3 (39:16):
God, that's a great question. VD. And see, there's a
little bit of work to do on me here. But
I will listen to you. I will listen to you.
Speaker 1 (39:24):
That's okay. But like work in progress, still progress.
Speaker 3 (39:28):
Exactly, still progress.
Speaker 1 (39:30):
I'm not mad. Like literally, I think people think, oh
my god, Victoria would be so disappointed. No, Queen, like,
you're here, you're listening, you're trying, and like that's the
best thing that we can ask for right, so it
is easier said than done, I suppose, But like that
is putting you in such a bad position, like they
(39:51):
represent too much of our country's debt people, particularly across
US millennials and also gen zs. There's another one, super
boring but really important. Okay, do you have an emergency fund?
If not, I need you to set one up. And
we are slowly working our way towards having three months
of our living expenses in there. And I say this
(40:12):
because you might be well on your way to reaching
your goal, but then like life happens, pets get sick,
cars need repairing, and maybe you need a surprise wisdom
tooth out, and that's when your budget is going to
least expect it. For some reason in my life and
I don't know about your life back, but the big costs,
they're like wait in the background until you have already
(40:35):
just made a big purchase or you've already done something,
and then they're like, ah, what about me? And you're like,
oh my goodness, why why did you do that? Why
didn't you tell me about you the week before so
it could feel more in control.
Speaker 3 (40:46):
Exactly exactly, that's what.
Speaker 1 (40:48):
Our emergency fund is for right. An emergency fund can
help you remain on track so that you don't have
to dip into your investments to free up some cash,
so that you don't have to rely on a buy now,
pay later, so you don't have to rely on a
credit card, because if you keep going back to those
same habits that got you in trouble in the first place,
you're on a path to self sabotage, like you are
(41:10):
not helping future you. Yeah, I care a lot about future.
Speaker 3 (41:13):
You, for sure. That's a really great call. We could
also think about like insurances. What about insurance, Like what
if you need to take some unexpected time off.
Speaker 1 (41:22):
Exactly, and please make sure you check on your insurances
inside super, actually scratch that, just check on your super
as a whole. Let's have a look at everything. Check
to make sure that money is actually going in every
single payday and your employer is paying your super. Because
if you right now just trust that they're doing it
and they haven't, it's going to be a really big
(41:44):
problem down the line. And now we have payday super
that just means that every single time you get paid back,
money should be being deposited into your superannuation. If that
is not happening, bring it up with your employer asap. Also,
let's just make sure that we don't have more than
one account where we're paying exorbitant fees, and that you
aren't paying unnecessary fees on multiple accounts and for multiple insurances.
(42:07):
And you can do this through the ATO portal. And finally,
just make sure you're not bleeding fees. Compare your super
to other supers on the market. There's a website that
you can go to that is government run that just
compares your superannuation and make sure that the link is
in the show notes. But you could be getting the
same coverage. You could be getting the same performance for
less fees. Money win. Or you could go talk to
(42:29):
your friends at sky Wealth who'll sort all your insurances
for you. Easy money win, money win.
Speaker 3 (42:35):
I hate surprise fees.
Speaker 1 (42:36):
Everybody does. Don't worry, I know.
Speaker 3 (42:38):
And so are there anyways to safeguard your savings?
Speaker 1 (42:41):
Well, if you need a holding account for your savings
before any of it is invested, that sort of thing,
you might want to look at opening a high interest
savings account so that way your money is earning money
each and every single month based on the latest interest
rate which I just checked was excellent for savers. It's
more than five percent money win. You're recive for those
who have a mortgage, I see because like, if your
(43:03):
savings are doing well, your mortgage is usually a little
bit high and vice versa. But before you do, please
make sure that you've read the frime print to ensure
that you understand how your rate is affected and if
and when you need to withdraw it and what that
looks like. Our team read a really good blog recently
which was identifying the top five savings accounts in Australia
that don't have any hoops that you need to jump
(43:25):
through to get your interest. Go have a look at that,
so beg. I feel like we're running out of time,
But what do you think? Have I made the runway
to one hundred K a little bit more manageable? Actually
it was.
Speaker 3 (43:36):
Pretty intimidating at the start, but it does seem more achievable.
Like I think it was the one hundred and thirty
eight dollars a week part that kind of did it
for me, especially when I think that oh yeah, you
can just like well not everyone, you can kind of
pick up a little side hustle here or there, just like, yeah,
I reckon, it's doable. I reckon it's doable, exactly.
Speaker 1 (43:52):
And what a privilege is to have that opportunity. Yeah,
And these strategies can be applied whether you're in your
twenties or you're in your thirties, or you're even in
your forties, because they're actually not about age. They're just
about organizing a money habit. And to be honest, it
was a really good hook to be like one hundred
grand before thirty five. I knew I'd get you guys
with that one, because see listen, you're still here. Yeah,
(44:13):
hell so you still want to save money, So let's
just do that. And what if your goal isn't to
reach that one hundred k, maybe it's to reach a
million dollars in your superannuation, my friend, you can also
apply that to make your supernuation have a healthy balance
or hi cold goal on forever honestly lovely listeners. Unfortunately,
I'm so sorry this is all we have time for today.
(44:35):
But if you found a juicy, a little tipbit in
this episode, please tell a friend or leave us a
review wherever you get your podcasts. We'll be back on
Friday with another I would say, very entertaining edition of
Friday Drinks and until then, thank you for being here,
thank you for being part of our community, and have
a lovely week by guys. The advice shared on Cheese
(44:59):
on the Money is rural 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 Divine
(45:19):
and She's on the Money are authorized representatives of money.
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