Episode 6.: Financial Nesting

It might be two weeks late, but the boys pulled through to bring some chat around financial nesting. They talk about why they both took on cleaning up their personal finances, how they got control, reduced stress and began accumulating weatlh with every paycheck. What are the bonuses? Having the freedom to change jobs whenever, stop worrying about bills, and ultimately buy back time to spend with their kids

Disclaimer: This is not financial advice, there are no guarantees. If you're looking for personalised advice, seek help from the professionals near you

'Rich Dad Poor Dad' - Robert Kiyosaki: https://www.audible.com.au/pd/Rich-Dad-Poor-Dad-Audiobook/B00FGA7BUG?action_code=ASSGB149080119000H&share_location=pdp

'The Barefoot Investor' - Scott Pape: https://www.audible.com.au/pd/The-Barefoot-Investor-Revised-and-Updated-Edition-Audiobook/B072JX1MH6?action_code=ASSGB149080119000H&share_location=pdp

Show Runsheet:

'Know thy self, know thy enemy, a thousand battles, a thousand victories' - Sun Tzu

KNOW THY SELF:

• Why accumulate wealth?
  • Provide safety for our family
  • Reduce stress over bills that contribute to tension in our relationships
  • Buy back time from ‘the man’ to spend with family and friends (coaching sport teams)
  • Provide maximum opportunity for our children to be creative and provide the best impact they can on society.
• Why did it take us so long to get into it?
  • I believed that a high income was how you got rich
  • I hate math, and I assumed finance was really boring
  • I did not realise that wealth accumulation was behavioural, not a strict budget and constant excel spreadsheeting
• Discuss how our personalities impact our money management
  • Johns creative chaos vs Dave’s considered calculation

• Money Management:
  • Track expenses (atleast 3 months worth)
    • Gives you an idea of where you are over spending
    • You become more conscious of your spending
  • Use the excel cashflow budget - it has graphs!
    • Budgets need to be forward facing, but you need to review at the end of each month
• Work out the best money system for you
  • Dave: Savings, weekly expenses and splurge account. All incoming money into savings account, all bills come out of savings. I pay myself each Thursday from my savings (amount is based on my budget) into weekly expenses and splurge account. This must last all week.
  • Other people like to have heaps of accounts for all their different expenses ie. fuel, groceries, shopping, holiday accounts. If it works for you great, however it takes more work.

KNOW THY ENEMY

• Finding the enemy from the allies
  • Shop around on your “fixed” bills
    • Speak to a mortgage broker about your interest rate.
    • Review all insurances (car, home/contents, life, TPD, income protection) yearly.
  • Budget your discretionary spending ie. eating out, subscriptions, shopping, gym, in app spending, haircuts haha
• The enemy is consumerism and unchecked spending
• The Hedonic Treadmill