July 9, 2025 • 19 mins
In this episode, Oscar from The Finance Bible & Asset Road breaks down the real reason so many young Aussies feel stuck financially — even when they’re earning more than ever before.
Whether you're just getting started or looking to sharpen your game, this 15-minute episode covers everything you need to know to start managing your money with purpose and building long-term wealth without sacrificing your lifestyle.
🎯 What You’ll Learn:
- Why lifestyle creep is quietly draining your finances
- The 3-Bucket Money System that makes budgeting effortless
- The biggest money traps to avoid in your 20s and 30s
- How $200/month can turn into $500K by retirement
- 3 simple actions to take this week to change your financial future
🎧 Enjoyed this episode?
Follow us on Instagram @zekeguenthrothofficial @oscardonproperty and @assetroad for daily insights, property breakdowns, and behind-the-scenes updates.
Explore more at www.assetroad.com.au
Disclaimer:
The information provided in this podcast is general in nature and does not constitute personal financial advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Asset Road Pty Ltd recommends you seek independent financial, legal, taxation or other advice as required. All investments carry risk. Past performance is not indicative of future results.
🎧 Enjoyed this episode?
Follow us on Instagram @zekeguenthrothofficial @oscardonproperty and @assetroad for daily insights, property breakdowns, and behind-the-scenes updates.
Explore more at www.assetroad.com.au
Disclaimer:
The information provided in this podcast is general in nature and does not constitute personal financial advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Asset Road Pty Ltd recommends you seek independent financial, legal, taxation or other advice as required. All investments carry risk. Past performance is not indicative of future results.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:11):
Welcome back to another episode of the Finance
Bible Podcast.
Zeke here and your co-host,oscar.
But before we get into it,please note that nothing in this
podcast should ever beconsidered personal financial
advice.
Of course, if that is what youare seeking, reach out.
We'll get you in touch with thecorrect professionals.
Get the job done properly, sitback, relax and enjoy the show.
(00:33):
Let's get into it.
Welcome back to another episodeof the Finance Bible Podcast.
If you're in your 20s and 30sand listening to this right now
and you feel like you're earningdecent money but have nothing
to show for it, well, thisepisode is for you.
Today, I'm going to give you astraight up breakdown of how to
(00:55):
manage your money, grow yourwealth and stop living paycheck
to paycheck and, the mostimportant thing, without feeling
broke in the actual process.
So let's get into it.
Firstly, let me hit you withthis stat 73% of millennials say
they're financially unpreparedfor the future, even though most
of them earn more than theirparents did at the same age.
(01:15):
Let that sink in.
It's not that we're not earning, it's that we're not managing
the money in the best waypossible.
So most people fall into what'scalled lifestyle inflation or
lifestyle creep, if you'veprobably heard that before,
basically, the more you earn,the more you spend.
So you get a raise at work andall of a sudden you upgrade your
(01:38):
car, you move into a moreexpensive apartment, you buy,
let's say, airpods Max insteadof actually fixing your own
budget, and just like thatyou've got no more money than
what you had when you were 21.
And for me it was eating tunaout of a can with some brown
rice.
So now add in comparisonculture on socials and suddenly
(01:59):
you're behind.
If you're not doing the Europetrip every summer or you're
wearing the best brands that yousee all over TikTok and
Instagram at brunch, or whateverit may be, you think you're
behind, but you're not.
The truth is, if you don't takecontrol of your money early, it
will control you and trying toreplicate all these influencers
(02:20):
and people you see online whoare trying to sell the dream of
traveling all the time andbuying the most expensive cars.
The funny thing is, behindclosed doors, they might be
struggling to pay off this carbecause they've just gone to buy
a car with a car loan expensivecar loan, high interest and
just to look like they'rewealthy.
But I guarantee behind closeddoors they're not as wealthy as
(02:42):
you think.
The three bucket money system isa system that I use myself and
for certain clients who come tous and want to talk just general
about money and savings, etcetera.
This is what we also teach themfrom time to time.
So, yeah, it's called the threebucket system and it's very
simple.
So you've got three buckets.
(03:04):
Bucket one is your livingbucket, so 60%.
This is all your day-to-daystuff.
So your rent, your food, yourfuel, your gym membership, your
nights out, socializing, soobviously this is where you put
60% of your pay when you getpaid, and here's where most
(03:26):
people blob it up.
So they live at 90% or even110% of their income, hence
credit cards, et cetera.
So they're spending more thanthey actually make.
So go through your bankstatements, highlight every
subscription if you haven't donethis already and figure out
what's actually going out on amonthly basis.
How much money have you gottowards your binge, your Netflix
(03:50):
, your HeyYou, your KO, all thestreaming platforms?
How much you have to go intoyour gym membership, your
insurance, your rent, your Wi-Fi, electricity, literally
everything.
Figure it all out, becausewe've seen people paying 800 a
year.
Because we've seen peoplepaying 800 per year for apps
(04:10):
that they actually forgotexisted.
And then, when they look attheir bank statements and figure
out where all their money'sgoing to, they have the
realization of, oh, that's whereit's going and that's why I'm
feeling like I can't get ahead.
So definitely do that if youhaven't already.
We have spoken about that onmany other podcast episodes, but
that's a a no-brainer andsomething which is really
(04:32):
important to actually do.
Bucket number two is 20 to 30percent of your pay goes to your
wealth.
So this is the money thatbuilds your freedom and
financial freedom.
So we're talking, firstly,paying down debt.
If you have debt so credit carddebt, car loans, personal loans
(04:52):
, any debt that you have thatyou want to get rid of, like
consumer debt First thing, paythat down with this bucket.
Secondly, high interest savingsand then obviously, investing.
So that could be dollar costaveraging into shares, putting
(05:17):
more money into yoursuperannuation or building up
the savings deposit for aproperty to get into the
property market.
A good tip for this one is toactually automate this bucket.
So treat it like anon-negotiable bill.
So figure out depending on whatbank you're with.
You can actually do automatedtransactions to pop in every
second Friday after you get paidto put in a certain amount, so
you don't have to think about itand then all of a sudden you've
(05:37):
got the money going in and youactually forget about it over
time.
But we've got a real life storyof you know a situation with the
bucket two.
So a client of mine uh, youknow, roughly 29 years old at
the time, earning about 80 to 85grand came to us with zero
savings.
So after just chatting,chatting to them, um, and
(06:00):
figuring out what they wanted todo, he set up the three bucket
system and after 14 months hehad around 12 to 13 grand saved
and on his way to investing intohis first investment property
and purchasing that with thedeposit.
So obviously you can't say itstraight away, it takes time,
like everything, but at leastit's a big difference to where
(06:23):
they were when they came to us.
So that's why having a threebucket system is really
important for things like that.
It was yeah, it wasn't magic,it was system and consistency.
So automated transactions, getit going automated, don't think
about about it.
And then all of a sudden you'vegot 13 grand after a year.
(06:47):
The last bucket is bucket numberthree.
So this one is about your, thefuture.
So, depending on how you reallywant to do your splits, you
know roughly 10 to 20 percent,but this one's often forgotten
but it's very important.
This one's for like starting abusiness, you know, saving for a
holiday, doing a course whichcan increase your knowledge and
(07:07):
actually get you qualifications,perhaps as well as putting a
deposit down in your dream home,just like the wealth one.
You could even combine these ifyou're wanting to just solely
put a deposit down, but think ofit as investing in, think of it
as investing in future you.
So when you break it down likethis, living, wealth and future
(07:28):
money becomes less overwhelmingand it kind of becomes fun and
more strategic and you're goingtowards a goal as opposed to
just living day-to-day,paycheck-to-paycheck, wondering
where all your money's going.
Now you know exactly where yourmoney's going and you know
exactly what goal you're wantingto actually achieve.
So those three, that's threebucket system and if you have
(07:53):
any questions with that,obviously, obviously you can
reply to us on Instagram or theSpotify show notes.
You can actually comment onthat now, but that is a
simplified version of it stuck.
How I figured out these three.
I've kind of gone through overthe last few years mainly what
(08:23):
I've seen day in, day out, withpeople commenting on our TikToks
or people messaging us andhaving meetings with us, and
this is generally what we findmost.
So number one trap that youhear a lot is I'll start later
or I'll invest down the track,or when things clear up or when
I become less busy.
The thing is, you're neverreally going to become less busy
and time is your biggest asset.
(08:46):
So if you invested $200 a monthfrom the age of 25 at a typical
8% return, by 55, you'd haveover half a million dollars, and
if you waited until 35 yearsold to start, you'll need to
double that monthly amount justto catch up.
That shows that time andgetting in earlier rather than
(09:08):
later has such a big effect onthe overall outcome down the
track at the other end of theline.
So, yes, you might be reallybusy and you might be putting
something off, but we've seenpeople I spoke to a couple of
clients five years ago who saidthey were going to do it in six
months back then and fastforward.
(09:30):
Now it's five years, so they'vemissed out on five years of
growth, and five years of growthcan be, you know, one to
$300,000 over time, depending onthe investment they did and
what they're wanting to do.
But that just shows how timecan just creep up on you and you
know you've really got tofigure out what's the most
(09:51):
important thing for you.
Is it investing for future you?
Or is it telling yourselfyou're too busy, that you don't
wanna set yourself up and yourkids and your family?
So start now.
Start small, but just start.
That's the main thing to do.
You just need to start.
Second most popular trap I hearis people living on borrowed
(10:16):
money.
So credit cards.
Let's say you've got a $15,000limit, you've got $1,000 in your
bank account.
You're just living on borrowedmoney.
You're eventually going to haveto pay it back and if you're
spending too much that you can'tafford, the interest on the
credit card is going to come tobite you down the track and
(10:37):
you're probably never going toreally get on top of it,
especially if you're not makingthose repayments and trying to
smash it down with snowballtechniques, avalanche techniques
which we have talked about inprevious episodes, but that's
the conversation for anothertime.
But as well as credit cards,you've got buy now, pay later,
schemes like zip and after pay,which at the time feel great and
(11:01):
harmless, but you kind offorget about it and it's a
slippery slope down.
The alarming thing that is,more than 50% of young
Australians using buy now, paylater have missed payments week
in, week out, which is you knowwhy.
Are you buying this if youcan't afford it?
Now you've probably heard thesaying if you can't pay for it
(11:23):
in cash, or if you can't pay forit right now and double the
amount, you can't afford it.
So that's something you shouldprobably listen to if you find
yourself living on the creditcard or after pay especially the
younger Australians, becausethat's kind of who it's targeted
at.
And the problem is now peoplecan actually purchase it with
(11:44):
flights and accommodation whichyou can after pay, which is, you
know, great if you're on abudget for a little bit and
you've got the money.
But if you don't have the moneyand you know people see divided
up in four payments and itseems cheap, but then four night
later, when you got to pay yoursecond, third and fourth
payment, all of a sudden youcan't afford it.
So you're paying tomorrow'smoney for today's dopamine hit
(12:09):
and the interest is brutal.
So, like I said, if you can'tafford it twice, don't buy it
once.
As simple as that trap number.
And probably one of the mostimportant factors and points is
having no emergency fund.
We've probably spoken aboutemergency funds on 20 to 30
different episodes.
(12:30):
Emergency funds are reallyimportant.
You need an emergency fund forthings that you don't think are
going to happen.
They're emergencies, so youmight get sick, your car might
break down, work goes through atermination process and cuts
down your hours or even, um, youknow, lets you go, and then
suddenly you're dipping intoyour rent money.
(12:50):
You've got no money to save, oryou've got no money to eat food
, and then you're stressed andyou can't really live the life
that you're wanting to live.
You don't need 20 grand saved.
You might might only need athousand bucks, two thousand,
three thousand.
But figure out what yourexpenses are like per month and
then you know rule of thumbwhich is generally spoken
(13:12):
throughout a lot of differentplatforms is you know, aim to
build around two to three monthsof expenses in that emergency
fund.
So if anything did happen toyour work or if you got sick of
your car, you know, generallyspeaking, you can actually get
back on your feet or figuresomething out within two to
three months.
So that's why that buffer isactually quite important.
So you can, if you'restruggling and you need to find
(13:36):
a new job, you know, smash outsome interviews and then within
two to three months you'll havea job and you'll just be living
off your emergency fund.
So, very important the bufferthat you have is mainly peace of
mind, because if you're behind,if you got, let's say, $200 in
an emergency fund or nothing,and then you're digging into all
(13:56):
your savings that you've beenputting towards for your
investment property or your homethat you want to buy and live
in, well, that will just makethe whole process stressful.
But if you do have an emergencyfund, you feel a bit more
freedom and, like I said,massive with peace of mind.
Now, last episode I finished offwith a bit of an activity and
(14:16):
some actions to actually take,and I'm gonna do it again on
this episode and this one.
I'm just gonna talk about threeactions you can take this week
or the next two weeks and justto get you thinking about where
your money's going and puttingyou in the right place and the
right trajectory and mindset.
So here are three simple thingsyou can do this week.
(14:39):
Number one I want you to trackevery dollar for 30 days.
So go back for the last 30 days, write out all your money,
especially money that's goingout.
So how much have you beenspending on your coffees and
your socializing and going out?
How much have you been spendingon your subscriptions, your
phone bill, all your bills,everything like that?
(15:01):
Make a google sheet, pop it alldown and and just be aware,
like just figure out the moneyand the actual figures and then,
once you've figured out howmuch is going out, figure out
how much is coming in and figureout the difference.
Secondly, automate your savings.
So we spoke about this in inthe buckets.
Even $100 a week adds up to5.2k a year.
(15:23):
So set up an automatic,automated transfer.
It can be, you know, literally$20 a week, $30 a week, but set
it up so as soon as your payhits, it gets transferred into
your savings account.
You don't have to think aboutit.
It's one less thing for you todo and it's one more thing for
your bank account to actuallybenefit from.
So I want you to automate yoursavings and, like I said, could
(15:46):
only be 20 to 30 dollars a week,which is fine.
Just do it.
Lastly, we've got around sixmonths left of the year.
So set one clear financial goalfrom now till december 31st.
That might be save $3,000.
If it is, save $3,000 or $4,000or $5,000.
Reverse engineer it.
Figure out how much money youneed to put aside a week and
(16:07):
then, once you figure that out,automate that amount to your
savings.
You might have a credit card.
Maybe you want to wipe yourcredit card debt out before the
end of the year, start the newyear fresh and feel good about
yourself and not have the debthanging over your head.
You might as well, before theend of the year, you might be
(16:27):
wanting to get serious aboutinvesting in property.
So book a session with someonewho can help you build a
property portfolio and just giveyou a bit of guidance of where
you'd be looking and what yourpurchase prices or purchase
prices, or speak to a broker,but that might be something
important to you.
Figure out one to two cleargoals and write them down and
make them happen, because sixmonths can go in a blink.
(16:50):
But if you slowly work towardsthese goals, you will start well
.
You'll end the year on a highand you'll start the new year on
a high.
So clarity creates action andaction builds momentum.
So they are the three actions Iwant you to start this week to
do.
Write them all down, get it allsorted and actually, you know,
(17:14):
be proactive and get on top ofthis.
Before I close the episode, Ijust want to say that you don't
need to be rich to get started.
That's such a big misconception, which, especially what I'm
seeing on TikTok.
When I'm posting some videos, alot of people are commenting
basically, why would you investif you're not rich?
(17:35):
Well, that's how people getrich.
A lot of people start when theycan just afford a deposit and
that's why rent investing isbecoming so popular, because
it's such a lower deposit levelto get you into the property
market, and this is how peoplebuild wealth over time.
So you don't need to be rich toget started in investing in
anything or just putting moneyaside and putting into shares or
(17:59):
just saving for a rainy day.
But you need to start to getrich if that is what you wanna
do down the track and to havethe freedom and the financial
clarity.
So that's what I wanna leaveyou on.
If this episode helped you,share it with one friend who
needs to hear it, and if youlisten to it on Spotify, apple
Podcast, feel free to drop areview.
(18:21):
That does go a long way interms of the podcasting game.
And lastly, if you do want helpbuilding your game plan, reach
out to myself on Instagram orTikTok, oscar Don Property or
our business Asset Road, and wecan sit down, have a chat, see
what you're wanting to achieveand ultimately see if we can
(18:42):
actually assist you in the firstplace, because the truth is we
can't assist everyone, but if wecan assist you, happy days.
But until then, thanks forlistening.
Stay consistent, really take onwhat we've spoken about today
and I'll catch you next time.
We hope you enjoyed the episode.
As always, you know exactlywhat to do.
Hit that follow button,subscribe whatever platform you
(19:03):
listen to this podcast on.
Also share it to friends,family, co-workers, whoever you
think may benefit from it.
But unfortunately it's the endand we'll see you next week.
Welcome back to another episode of the Finance
Bible Podcast.
Zeke here and your co-host,oscar.
But before we get into it,please note that nothing in this
podcast should ever beconsidered personal financial
advice.
Of course, if that is what youare seeking, reach out.
We'll get you in touch with thecorrect professionals.
Get the job done properly, sitback, relax and enjoy the show.
(00:33):
Let's get into it.
Welcome back to another episodeof the Finance Bible Podcast.
If you're in your 20s and 30sand listening to this right now
and you feel like you're earningdecent money but have nothing
to show for it, well, thisepisode is for you.
Today, I'm going to give you astraight up breakdown of how to
(00:55):
manage your money, grow yourwealth and stop living paycheck
to paycheck and, the mostimportant thing, without feeling
broke in the actual process.
So let's get into it.
Firstly, let me hit you withthis stat 73% of millennials say
they're financially unpreparedfor the future, even though most
of them earn more than theirparents did at the same age.
(01:15):
Let that sink in.
It's not that we're not earning, it's that we're not managing
the money in the best waypossible.
So most people fall into what'scalled lifestyle inflation or
lifestyle creep, if you'veprobably heard that before,
basically, the more you earn,the more you spend.
So you get a raise at work andall of a sudden you upgrade your
(01:38):
car, you move into a moreexpensive apartment, you buy,
let's say, airpods Max insteadof actually fixing your own
budget, and just like thatyou've got no more money than
what you had when you were 21.
And for me it was eating tunaout of a can with some brown
rice.
So now add in comparisonculture on socials and suddenly
(01:59):
you're behind.
If you're not doing the Europetrip every summer or you're
wearing the best brands that yousee all over TikTok and
Instagram at brunch, or whateverit may be, you think you're
behind, but you're not.
The truth is, if you don't takecontrol of your money early, it
will control you and trying toreplicate all these influencers
(02:20):
and people you see online whoare trying to sell the dream of
traveling all the time andbuying the most expensive cars.
The funny thing is, behindclosed doors, they might be
struggling to pay off this carbecause they've just gone to buy
a car with a car loan expensivecar loan, high interest and
just to look like they'rewealthy.
But I guarantee behind closeddoors they're not as wealthy as
(02:42):
you think.
The three bucket money system isa system that I use myself and
for certain clients who come tous and want to talk just general
about money and savings, etcetera.
This is what we also teach themfrom time to time.
So, yeah, it's called the threebucket system and it's very
simple.
So you've got three buckets.
(03:04):
Bucket one is your livingbucket, so 60%.
This is all your day-to-daystuff.
So your rent, your food, yourfuel, your gym membership, your
nights out, socializing, soobviously this is where you put
60% of your pay when you getpaid, and here's where most
(03:26):
people blob it up.
So they live at 90% or even110% of their income, hence
credit cards, et cetera.
So they're spending more thanthey actually make.
So go through your bankstatements, highlight every
subscription if you haven't donethis already and figure out
what's actually going out on amonthly basis.
How much money have you gottowards your binge, your Netflix
(03:50):
, your HeyYou, your KO, all thestreaming platforms?
How much you have to go intoyour gym membership, your
insurance, your rent, your Wi-Fi, electricity, literally
everything.
Figure it all out, becausewe've seen people paying 800 a
year.
Because we've seen peoplepaying 800 per year for apps
(04:10):
that they actually forgotexisted.
And then, when they look attheir bank statements and figure
out where all their money'sgoing to, they have the
realization of, oh, that's whereit's going and that's why I'm
feeling like I can't get ahead.
So definitely do that if youhaven't already.
We have spoken about that onmany other podcast episodes, but
that's a a no-brainer andsomething which is really
(04:32):
important to actually do.
Bucket number two is 20 to 30percent of your pay goes to your
wealth.
So this is the money thatbuilds your freedom and
financial freedom.
So we're talking, firstly,paying down debt.
If you have debt so credit carddebt, car loans, personal loans
(04:52):
, any debt that you have thatyou want to get rid of, like
consumer debt First thing, paythat down with this bucket.
Secondly, high interest savingsand then obviously, investing.
So that could be dollar costaveraging into shares, putting
(05:17):
more money into yoursuperannuation or building up
the savings deposit for aproperty to get into the
property market.
A good tip for this one is toactually automate this bucket.
So treat it like anon-negotiable bill.
So figure out depending on whatbank you're with.
You can actually do automatedtransactions to pop in every
second Friday after you get paidto put in a certain amount, so
you don't have to think about itand then all of a sudden you've
(05:37):
got the money going in and youactually forget about it over
time.
But we've got a real life storyof you know a situation with the
bucket two.
So a client of mine uh, youknow, roughly 29 years old at
the time, earning about 80 to 85grand came to us with zero
savings.
So after just chatting,chatting to them, um, and
(06:00):
figuring out what they wanted todo, he set up the three bucket
system and after 14 months hehad around 12 to 13 grand saved
and on his way to investing intohis first investment property
and purchasing that with thedeposit.
So obviously you can't say itstraight away, it takes time,
like everything, but at leastit's a big difference to where
(06:23):
they were when they came to us.
So that's why having a threebucket system is really
important for things like that.
It was yeah, it wasn't magic,it was system and consistency.
So automated transactions, getit going automated, don't think
about about it.
And then all of a sudden you'vegot 13 grand after a year.
(06:47):
The last bucket is bucket numberthree.
So this one is about your, thefuture.
So, depending on how you reallywant to do your splits, you
know roughly 10 to 20 percent,but this one's often forgotten
but it's very important.
This one's for like starting abusiness, you know, saving for a
holiday, doing a course whichcan increase your knowledge and
(07:07):
actually get you qualifications,perhaps as well as putting a
deposit down in your dream home,just like the wealth one.
You could even combine these ifyou're wanting to just solely
put a deposit down, but think ofit as investing in, think of it
as investing in future you.
So when you break it down likethis, living, wealth and future
(07:28):
money becomes less overwhelmingand it kind of becomes fun and
more strategic and you're goingtowards a goal as opposed to
just living day-to-day,paycheck-to-paycheck, wondering
where all your money's going.
Now you know exactly where yourmoney's going and you know
exactly what goal you're wantingto actually achieve.
So those three, that's threebucket system and if you have
(07:53):
any questions with that,obviously, obviously you can
reply to us on Instagram or theSpotify show notes.
You can actually comment onthat now, but that is a
simplified version of it stuck.
How I figured out these three.
I've kind of gone through overthe last few years mainly what
(08:23):
I've seen day in, day out, withpeople commenting on our TikToks
or people messaging us andhaving meetings with us, and
this is generally what we findmost.
So number one trap that youhear a lot is I'll start later
or I'll invest down the track,or when things clear up or when
I become less busy.
The thing is, you're neverreally going to become less busy
and time is your biggest asset.
(08:46):
So if you invested $200 a monthfrom the age of 25 at a typical
8% return, by 55, you'd haveover half a million dollars, and
if you waited until 35 yearsold to start, you'll need to
double that monthly amount justto catch up.
That shows that time andgetting in earlier rather than
(09:08):
later has such a big effect onthe overall outcome down the
track at the other end of theline.
So, yes, you might be reallybusy and you might be putting
something off, but we've seenpeople I spoke to a couple of
clients five years ago who saidthey were going to do it in six
months back then and fastforward.
(09:30):
Now it's five years, so they'vemissed out on five years of
growth, and five years of growthcan be, you know, one to
$300,000 over time, depending onthe investment they did and
what they're wanting to do.
But that just shows how timecan just creep up on you and you
know you've really got tofigure out what's the most
(09:51):
important thing for you.
Is it investing for future you?
Or is it telling yourselfyou're too busy, that you don't
wanna set yourself up and yourkids and your family?
So start now.
Start small, but just start.
That's the main thing to do.
You just need to start.
Second most popular trap I hearis people living on borrowed
(10:16):
money.
So credit cards.
Let's say you've got a $15,000limit, you've got $1,000 in your
bank account.
You're just living on borrowedmoney.
You're eventually going to haveto pay it back and if you're
spending too much that you can'tafford, the interest on the
credit card is going to come tobite you down the track and
(10:37):
you're probably never going toreally get on top of it,
especially if you're not makingthose repayments and trying to
smash it down with snowballtechniques, avalanche techniques
which we have talked about inprevious episodes, but that's
the conversation for anothertime.
But as well as credit cards,you've got buy now, pay later,
schemes like zip and after pay,which at the time feel great and
(11:01):
harmless, but you kind offorget about it and it's a
slippery slope down.
The alarming thing that is,more than 50% of young
Australians using buy now, paylater have missed payments week
in, week out, which is you knowwhy.
Are you buying this if youcan't afford it?
Now you've probably heard thesaying if you can't pay for it
(11:23):
in cash, or if you can't pay forit right now and double the
amount, you can't afford it.
So that's something you shouldprobably listen to if you find
yourself living on the creditcard or after pay especially the
younger Australians, becausethat's kind of who it's targeted
at.
And the problem is now peoplecan actually purchase it with
(11:44):
flights and accommodation whichyou can after pay, which is, you
know, great if you're on abudget for a little bit and
you've got the money.
But if you don't have the moneyand you know people see divided
up in four payments and itseems cheap, but then four night
later, when you got to pay yoursecond, third and fourth
payment, all of a sudden youcan't afford it.
So you're paying tomorrow'smoney for today's dopamine hit
(12:09):
and the interest is brutal.
So, like I said, if you can'tafford it twice, don't buy it
once.
As simple as that trap number.
And probably one of the mostimportant factors and points is
having no emergency fund.
We've probably spoken aboutemergency funds on 20 to 30
different episodes.
(12:30):
Emergency funds are reallyimportant.
You need an emergency fund forthings that you don't think are
going to happen.
They're emergencies, so youmight get sick, your car might
break down, work goes through atermination process and cuts
down your hours or even, um, youknow, lets you go, and then
suddenly you're dipping intoyour rent money.
(12:50):
You've got no money to save, oryou've got no money to eat food
, and then you're stressed andyou can't really live the life
that you're wanting to live.
You don't need 20 grand saved.
You might might only need athousand bucks, two thousand,
three thousand.
But figure out what yourexpenses are like per month and
then you know rule of thumbwhich is generally spoken
(13:12):
throughout a lot of differentplatforms is you know, aim to
build around two to three monthsof expenses in that emergency
fund.
So if anything did happen toyour work or if you got sick of
your car, you know, generallyspeaking, you can actually get
back on your feet or figuresomething out within two to
three months.
So that's why that buffer isactually quite important.
So you can, if you'restruggling and you need to find
(13:36):
a new job, you know, smash outsome interviews and then within
two to three months you'll havea job and you'll just be living
off your emergency fund.
So, very important the bufferthat you have is mainly peace of
mind, because if you're behind,if you got, let's say, $200 in
an emergency fund or nothing,and then you're digging into all
(13:56):
your savings that you've beenputting towards for your
investment property or your homethat you want to buy and live
in, well, that will just makethe whole process stressful.
But if you do have an emergencyfund, you feel a bit more
freedom and, like I said,massive with peace of mind.
Now, last episode I finished offwith a bit of an activity and
(14:16):
some actions to actually take,and I'm gonna do it again on
this episode and this one.
I'm just gonna talk about threeactions you can take this week
or the next two weeks and justto get you thinking about where
your money's going and puttingyou in the right place and the
right trajectory and mindset.
So here are three simple thingsyou can do this week.
(14:39):
Number one I want you to trackevery dollar for 30 days.
So go back for the last 30 days, write out all your money,
especially money that's goingout.
So how much have you beenspending on your coffees and
your socializing and going out?
How much have you been spendingon your subscriptions, your
phone bill, all your bills,everything like that?
(15:01):
Make a google sheet, pop it alldown and and just be aware,
like just figure out the moneyand the actual figures and then,
once you've figured out howmuch is going out, figure out
how much is coming in and figureout the difference.
Secondly, automate your savings.
So we spoke about this in inthe buckets.
Even $100 a week adds up to5.2k a year.
(15:23):
So set up an automatic,automated transfer.
It can be, you know, literally$20 a week, $30 a week, but set
it up so as soon as your payhits, it gets transferred into
your savings account.
You don't have to think aboutit.
It's one less thing for you todo and it's one more thing for
your bank account to actuallybenefit from.
So I want you to automate yoursavings and, like I said, could
(15:46):
only be 20 to 30 dollars a week,which is fine.
Just do it.
Lastly, we've got around sixmonths left of the year.
So set one clear financial goalfrom now till december 31st.
That might be save $3,000.
If it is, save $3,000 or $4,000or $5,000.
Reverse engineer it.
Figure out how much money youneed to put aside a week and
(16:07):
then, once you figure that out,automate that amount to your
savings.
You might have a credit card.
Maybe you want to wipe yourcredit card debt out before the
end of the year, start the newyear fresh and feel good about
yourself and not have the debthanging over your head.
You might as well, before theend of the year, you might be
(16:27):
wanting to get serious aboutinvesting in property.
So book a session with someonewho can help you build a
property portfolio and just giveyou a bit of guidance of where
you'd be looking and what yourpurchase prices or purchase
prices, or speak to a broker,but that might be something
important to you.
Figure out one to two cleargoals and write them down and
make them happen, because sixmonths can go in a blink.
(16:50):
But if you slowly work towardsthese goals, you will start well
.
You'll end the year on a highand you'll start the new year on
a high.
So clarity creates action andaction builds momentum.
So they are the three actions Iwant you to start this week to
do.
Write them all down, get it allsorted and actually, you know,
(17:14):
be proactive and get on top ofthis.
Before I close the episode, Ijust want to say that you don't
need to be rich to get started.
That's such a big misconception, which, especially what I'm
seeing on TikTok.
When I'm posting some videos, alot of people are commenting
basically, why would you investif you're not rich?
(17:35):
Well, that's how people getrich.
A lot of people start when theycan just afford a deposit and
that's why rent investing isbecoming so popular, because
it's such a lower deposit levelto get you into the property
market, and this is how peoplebuild wealth over time.
So you don't need to be rich toget started in investing in
anything or just putting moneyaside and putting into shares or
(17:59):
just saving for a rainy day.
But you need to start to getrich if that is what you wanna
do down the track and to havethe freedom and the financial
clarity.
So that's what I wanna leaveyou on.
If this episode helped you,share it with one friend who
needs to hear it, and if youlisten to it on Spotify, apple
Podcast, feel free to drop areview.
(18:21):
That does go a long way interms of the podcasting game.
And lastly, if you do want helpbuilding your game plan, reach
out to myself on Instagram orTikTok, oscar Don Property or
our business Asset Road, and wecan sit down, have a chat, see
what you're wanting to achieveand ultimately see if we can
(18:42):
actually assist you in the firstplace, because the truth is we
can't assist everyone, but if wecan assist you, happy days.
But until then, thanks forlistening.
Stay consistent, really take onwhat we've spoken about today
and I'll catch you next time.
We hope you enjoyed the episode.
As always, you know exactlywhat to do.
Hit that follow button,subscribe whatever platform you
(19:03):
listen to this podcast on.
Also share it to friends,family, co-workers, whoever you
think may benefit from it.
But unfortunately it's the endand we'll see you next week.
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