This week I interview Financial Adviser Lisa Dudson.
Lisa is a no-nonsense adviser who talks so much sense about a topic that challenges so many of us.
1:45 – Lisa talks about her entry into the financial advisory sector and how she was turning a hobby into a career. Having purchased her first shares at 16 and her first rental property at 24.
2:45 – Developing the freedom to choose in your life and using building wealth as a way to gain that flexibility
3:00 – Lisa talks about her dad buying her a book about the share market at 16 which lead the the purchasing of her first shares.
3:45 – Lisa shares how she used to buy the local paper as a 16 year old and keep a note of all the share prices. Which also contributed to her buying $5000 worth of shares in 1986 to then learn a lot with the 1987 crash.
4:45 – Niki talks about how she was raised with such different beliefs around money and how she heard the poverty stories around never having enough, money doesn’t grow on trees and you kids cost a lot of money.She goes on to say that it has taken to mid-life to unpack that and change the belief structure around money.
6:30 – There is a difference between understanding money and understanding investments. It is not difficult to understand the everyday management of money = money in/money out, It is something quite different to understand investments.
7:00 – so much of getting ahead financially is finding a gap between what you earn and what you spend.
7:30 – is being told that we can have everything we want leading to us spending like we have even when we don’t have the money to do it.
8:10 – managing money is not complex however it can be hard because it requires discipline.
9:04 – the trap of ‘I deserve’. So earning a lot is one thing however if we spend it then we are not further ahead.
9:15 – often we spend because we want to make ourselves feel better. Lisa talks about how she encourages people to ask themselves what 5 things that do not require money, will make me feel better right now.’
10:00 – 45% of Kiwis cannot access $1000 in the case of an emergency. Lisa discusses having behaviour that allows you to have choice throughout your life – not just now. Robbing future us to feed today us.
11:15 – a discussion around what happens in a lot of midlife marriages where the women has taken care of the everyday money stuff and the man has taken care of the investment side. The important thing is to be involved together and learn together. Money is one of the biggest reasons relationships split so ignorance is not bliss.
12:50 – the uncomfortable topic of pre-nups and the importance of them in a midlife relationships from a financial prudence perspective as well as a potential alarm bell if 1) the conversation cannot be had and 2) someone does not want to sign it.
15:00 – the difficulty we have around talking about money, income and everything else around it.
16:00 – the judgement that comes with all thing financial. Dealing with the anti-wealth mentality we have in New Zealand and the jealousy we often have around our perceptions about other people’s worth.
18:00 – the concept of high sacrifice/low sacrifice. Spending less on things that are not important to be able to put money towards things that are. Being aware of where you money goes.
19:15 – the money we spend on trying to make our lives easier. Dealing with life’s fast pace.
20:21 -the most common mistakes Lisa sees’s that puts people on the back foot in midlife
-Not paying attention to our money, what we spend it on and how we use it.
– wasting money on buying things that have no value
– not getting any advice
– making it complicated
22:00 – avoiding the distractions that exist today. Buying your first home and not feeling like you need to furnish it with all things new. Buying things that you can afford including second hand.
24:25 – most of us do not consciously spend our money. It is our unconscious habits that spend our money for us.
25:12 – Niki talks about her 24 hour rule – stalling 24 hours before she purchases something and how it has increased her conscious spending.
25:45 – People not taking notice of what they eat, what they spend and things in general and the impact that is having on us.
26:25 – the importance of having goals to save towards. How it increases conscious spending.