For those of us who feel like we are constantly on the go without five minutes to ourselves, it may seem like we’re ‘too busy’ to research how to set ourselves up financially. To combat this, our Managing Director, Nick Reilly; Head of Sales and Business Development, Martin Vidakovic; and Jason Robinson, CPA and Director of Future Advisory; have created The Numbers Game, a podcast to educate you on all things finance.
As the Australian marketplace begins to regain control, people – especially millennials – are becoming more interested in their finances than ever before, with research showing that 68 per cent of millennials have a budget, compared to 58 per cent of Gen X’ers and 55 per cent of Gen Z’ers. Buying a home is one of the most common reasons behind this as travel restrictions prevent Australians from travel, and interest rates are at an all-time low.
While The Numbers Game discusses all things related to purchasing a new home, the guys also cover a variety of other topics including budgeting, rates, setting business goals, mortgage insurance, business partners and so much more.
We’ve put together a recap below of the first four episodes to give you a taste of what the podcast is all about.
Episode One – Budgets, Fixed Rates and Coffee
The very first episode of the podcast series jumps straight in to discuss all things stocks, fixed rates, a new accounting app called Thrive, saving money with coffee and easy ways to budget your week.
One of the most mind-blowing facts to take out of this episode is that if you are purchasing two coffees a day during the working week, it will add up to roughly $80,000 over 10 years! The guys talk about matters like this where something so small (such as paying a few bucks each day for a coffee) often has a huge compounding effect which we do not often consider. They also talk about ways in which you can have your cake – or in this case, coffee – and eat it, too, so to speak, by purchasing a coffee machine and making your own coffee each day.
Other important topics discussed in this episode are:
- Knowing when to take a win in regard to the stock market.
- Getting your facts from the right place, doing your research and speaking to a professional.
- Not making impulsive money decisions.
- Knowing exactly where your money goes and the long-term effects.
- Knowing who the CFO in your household is (who’s managing the money?).
- Discretionary spending (splurging) vs non-discretionary spending (bills).
- The dangers of tap and go payment and how people don’t know what they’re spending until it’s too late.
Episode Two – Setting Goals, Putting Away Tax and Exiting Your Business
In episode two of The Numbers Game podcast, a number of new topics were discussed such as JobKeeper, business owner statistics, putting away your tax, lead & lag indicators and when to exit a business.
One of the fascinating takeaways to come from this episode is that 1 in 3 new businesses fall over in the first year as they haven’t prepared a business plan along with a buffer of savings to get by. Business owners often don’t count on making little to no profit in their set up phase.
Other discussion points in this episode include:
- If something sounds too good to be true regarding government grants (or anything in life really) it probably is.
- Starting a business requires a lot of hustle for the first 2 years in particular, with you (and a business partner if you have one) having to do everything – the marketing, bookkeeping, lead generation and things you wouldn’t often do as a ‘regular’ employee.
- How to spend on the things that really matter over aesthetically pleasing things that aren’t of much value while you’re still starting up, such as business cards or flashy offices.
- The importance of putting aside money for tax so your business doesn’t get stuck with a big tax bill. The team will go into more detail on a rough percentage you should be setting aside in a separate bank account specifically for tax, while stressing that it’s better to have too much than not enough.
- Knowing when or if you are planning to exit the business – do you want to exit it at some stage or have you built it for life?
Episode Three – Buying Property, Mortgage Insurance and Sand
The third episode of The Numbers Game talks about one of the hottest financial topics going around at the moment – the housing market. In this episode, the discussion is focused on the rise in property prices, when to buy, understanding your position to buy and why we are running out of sand (listen to find out!).
First home buyers are struggling more than ever to get into the housing market due to house prices going up at the fastest rate the country has seen in two decades! With low investment rates, Aussies not being able to travel overseas, a mountain of weddings (along with all that wedding money!) that had to be rescheduled or postponed and FOMO, it’s no wonder housing prices didn’t drop as low as once thought during COVID. The buy to sell ratio has also been imbalanced, meaning there is a higher demand for less properties and people are hesitant to sell in case they can’t find anywhere to go.
Another startling fact to come out of this episode is that 80 per cent of people don’t know who mortgage insurance protects – they think it protects them rather than the lender (aka the bank) who it actually does protect!
Other key takeaways from this episode include:
- You can save money on mortgage insurance if you put together a higher deposit – a higher deposit could save you more than $10k in mortgage insurance.
- Don’t disregard the bank of mum and dad – parents are often happy to help out as a guarantor – especially with the struggle to get into the market now.
- Don’t always go the emotional route when it comes to purchasing, as not every investment will work. It is important to know when to take a loss.
- Buyer’s advocates can help with information around the property market along with real estate agents.
- The art of ‘rentvesting’ – renting where you want to live and investing elsewhere to create wealth.
Episode Four – Business Partners, Business Plans and Scams
In episode four, the guys discuss high-yield bond schemes, saving money with subscriptions, focusing on what you’re good at, business plans and business partners.
Although you may think there’s no way you are going to fall for that scam that involves sending money to a Nigerian prince, scams aren’t always that easy to spot and with today’s technology, scammers are getting smarter. Things like phone calls claiming to be from the ATO or emails requesting your latest utility bill can all turn out to be dodgy, despite how ‘real’ they may sound and feel. The team discusses just how easy it is to lose money from these kinds of scams.
Points also covered in episode four include:
- When starting your own business, stay in your ‘lane’ of what you’re good at. If you’re an accountant for example, it would be silly to start up a marketing business, as you wouldn’t be seen as an ‘expert’ in your field. The grass isn’t always greener on the other side as the boys talk about in more detail!
- In saying that, it is ok to diversify, but it must complement what you do best.
- Your business plan should centre around a gap in the market that your company will aim to fill.
- Having a business partner is good in the sense that you can cover gaps you can’t fill and complement each other/balance each other out.
- Every business needs a business plan and goals of some sort, along with knowing your numbers. If not, you are setting yourself up to fail.
- Even when you take time off as a business owner you never really have time off – you need to work out what’s the right move for you – as your business is 24/7.
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Sound like a lot? The Numbers Game isn’t about overwhelming you with financial jargon. Rather, they’re like a friend advising you on how best to manage yourself, your money, your business and your current situation, while discussing a wide range of other topics to further educate you, the listener.
If you love the podcast and want to know more about any of the topics discussed, reach out to a member of our team today.