How Do I Save Money (BOD005)

5:41Pete:Good mental arithmetic there. Just as I was crafting that sentence, I doubted my mental arithmetic.

5:47Kate:How much is 4 % of£10 ,000?

5:49Pete:It's£400. So why do we save money?

5:51Kate:Yes. Why do we save money?

5:53Pete:Well, it's a little bit like what I said earlier, right? We talked about spending less than you earned when we talked about budgeting. and if you don't do that you will never get any richer now rich is subjective anyway but if you don't save money you you'd never build anything you will always be paycheck to paycheck which is a very vulnerable position to be so the reason to save money is to give yourself financial freedom right or financial peace um yeah especially if you've got things like

6:29Kate:dependents, whether that be pets or children. Yeah, exactly.

6:33Pete:Well, how much did you pay the vet when Carly was poorly last week?

6:35Kate:I paid £62 when Carly was, which I was quite pleased with that, but I also pay a monthly fee for the pet club there.

6:45Pete:Yeah, which gives you a sort of subsidy. Yeah, and it gives the

6:49Kate:appointment like free. So if I didn't have the budget for that, it would have been that appointment and the medication that she had.

6:56Pete:And if you didn't have £62 in the bank because you're living for paycheck to paycheck and you know it's the third week of the month and you're like your money's run right down and you gotta eat yeah it's like well you don't go to the vet or you stick on a credit card or go into overdraft yeah or borrow savings prevents that it gives you some a buffer between you and the unexpected that's the main reason really so i'm only 22 i've seen the audience

7:23Kate:we're kind of presuming the audience is going to be roughly around my age but who knows we might I have 60-year-olds listening to this, and we welcome if you are in that age bracket. But I'm young. I don't need to save yet, right? That's an older person thing.

7:36Pete:Is it?

7:37Kate:No, not really. There's no question there. I'm just leading you in.

7:41Pete:Look, I don't think it's a nice thing at all. I think that sort of security is universal. We all benefit from that peace of mind. And actually, the earlier you start, the better. Why? Because it gets good habits in. Habits are really important. and if you can embed them early, then that'll serve you well for life. But, I mean, you've got costs. I mean, you still live at home currently. But you do still have costs. You run a car. You obviously have a phone. You have a dog.

8:06Kate:I do have a dog. So, you know, these things do add up.

8:09Pete:You're very seriously looking at moving out now. So you're thinking about mortgage. You're thinking about rent or whatever. And, you know, that buffer just means that if anything kicks off, if your car blows up and you have to replace it or, you know, I need to touch some water.

8:25Kate:I really don't want my car to blow up now.

8:27Pete:Or, you know, if you get a big repair job or you need four new tyres all at once, it's hundreds of pounds. Yeah, right? And so that's what I buffer for. So I really don't think it's an age thing.

8:37Kate:But your saving doesn't just have to be for emergencies either.

8:40Pete:No. It might be for Christmas. It might be for the hen or stag dude that you've been invited on that you're going to need a few hundred quid for. Birthdays. It might be a big birthday. it might be next year's holiday or whatever right so these are generally speaking saving we'll get into the difference between saving and investment in a minute but generally saving is for short-term expenditure by which i mean say less than a couple of years so anything that's coming up in the next couple of years you save for that you don't invest for it we'll get to that yeah we'll get to that

9:12Kate:all right so how is it really worth there's kind of two the next two kind of questions can kind of be amalgamated into one is it worth saving when my rent and bills kind of take everything and is it how do i save when my income barely covers the basics yeah no i get it it's not always easy

9:33Pete:right and it's especially hard if you are carrying debt so the episode we did on that if you haven't listened to that definitely do that um it's always worth saving if you can and we'll get to how in a little bit. But again, I can't imagine any scenario where it wouldn't be beneficial to have some money behind you if you are able. Priority is to get out of debt. But when we talked about getting out of debt, we talked about having a starter emergency fund first.

10:01Kate:Yes, so hopefully by this point you've got that.

10:03Pete:Even if it's 500 quid, right? If you're paying down the debt, because it saves you if something kicks off. There's not that many things that would happen which are going to cost you more than 500 quid. Certainly not more than 1 ,000 quid in a single goal. not that many things right so if you've got that behind you it just saves you getting further into debt and sort of getting discouraged just thinking well this is just my life right yeah super important to get out of what my buddy Andy Hart calls crappy debt bad debt we'd call it right crappy debt because it holds you back and uh you know you'll never move forward so even if it's difficult saving even just a tiny bit is beneficial I mean you're doing you say that yeah right

10:44Kate:So Monzo, it came up when I was just looking. I don't even remember why I was on the app, but I was on the app and it came up. There's a savings challenge you can join. Now, I'm pretty good at saving, but I thought, okay, I might as well have a look at it. It's 1p on day one you save, 2p on day two, 3p on day three, and then by the 365th day a year, you save£3.65.

11:08Pete:Outstanding math, well done. Yeah, right. But you've eased into that.

11:14Kate:Do you know how much you save in the year?

11:16Pete:Well, it's going to be several hundreds.

11:20Kate:£667 in a year. That's massive. Well, it is massive.

11:24Pete:And particularly if you're not in the savings habit, that's a brilliant way of getting into it.

11:28Kate:You literally just say, I would like to join the challenge.

11:30Pete:And it drops it into a pot, does it?

11:32Kate:It drops it into like a little, yeah, basically. And it's not quite a pot, but it's just a little subsection within the app. But£667.

11:40Pete:That's material. And that's a starter emergency fund. Kind of an example of a positive nudge that. It's just like you kind of slightly gamify it. Yeah. You know, it makes it fun. But also it's a very gentle lead in.

11:52Kate:Yeah, because by the time you hit that final month of doing it, whilst, yes, that last month you're saving the most, so you might notice it the month the most, you've had a year of building up to that.

12:04Pete:Yeah, and you're in the habit, you've seen it. And also there will be an element of like, I don't want to fail at the final hurdle. Yeah. I want to get to the end. And even let's say you did fail, you'd still have like, you know, 500 odd.

12:17Kate:That's still a lot of money you've saved.

12:19Pete:Well, anything's better than nothing. Yeah. But yes, I think so then the trick is to say, well, that's an amazing start. I've got 660 odd quid behind me. I'm now used to saving 100 quid a month because that's roughly what your month 12 would be. If you keep doing that, well, that's 1200 quid a year, right? Yeah. And then you're off to the races. Yeah. And you're in the habit and you think, well, actually, it was only a little bit difficult. In month 12, I was able to do it. There is real power and sort of delight in having cracked something like that. And you think, actually, this is an amazing place to be.

12:54Pete:And you'll talk to some of your mates and they're like, you know, they're skint all the time. You think, actually, I've got 660 quid behind me just from doing this challenge. Why don't I keep going? And then, yeah.

13:04Kate:I thought that was such a good idea. So, well done, Monzo. We like that. Okay, so let's go back to that saving versus investing. What is the difference between the two?

13:16Pete:So saving is for short term. So that's where you keep money in the bank. Generally, it's accessible. You can get at it any time, right? But it's for short term things, like stuff we talked about, Christmas, birthdays, big holiday, whatever.

13:33Kate:So no more than what? Maybe two years?

13:36Pete:I think any longer than that, maybe three years, that'll become clear in a minute. Any longer than that, you're losing out. Why? Because generally speaking, the interest you get, it's nice to see it come in. And interest rates have sort of... It almost feels safe a little bit in a savings account, doesn't it? Yeah. I mean, interest rates have sort of normalized a little bit in recent years. For a long time, you got naffle interest, hardly anything at all. So you can now get three and a half, 4%. And so I think, okay, you see a little bit coming in every month. It's a few quid or whatever. But generally speaking, over any normal time period, inflation, have we talked about inflation yet?

14:16Kate:No.

14:17Pete:Okay. But inflation is the reduction in the buying power of money over time. So basically, a pound buys you a lot less now than it did 10 years ago.

14:26Kate:Yeah.

14:27Pete:Right? Why? Inflation. Everything gets a little bit more expensive over time. I mean, actually, you want a little bit of inflation. You don't want a lot of it.

14:35Kate:Because of things like buying and selling a house. Yeah.

14:40Pete:As an example. I'm kind of just guarding myself from going down a rabbit hole. But I think for the purposes of this, generally speaking, you keep too much money in the bank, its buying power will be eroded by inflation.

14:53Kate:So it's like having it under your mattress. If you have£100 under your mattress.

14:57Pete:Well, if you had£100 in banknotes in 1980 and you kept it, you know, that would have bought you quite a lot in 1980. You kept it on your mattress and you pull it out. Well, firstly, the notes wouldn't be legal tender anymore because they've changed them all. But even if they were, 100 quid, you know, barely buys you a decent meal for two or three people.

15:14Kate:Yeah.

15:15Pete:Do you know what I mean?

15:15Kate:And it's easy to get up to that sort of numbers with a food shop these days.

15:18Pete:Food shop, night out, whatever.

15:19Kate:Yeah.

15:20Pete:So whereas 100 quid probably would have been your food bills for a month in 1980.

15:24Kate:That's just...

15:25Pete:Well, that's inflation. And over longer terms, it's very powerful. So because generally inflation is higher than the rate of interest you get in the bank, any money you hold in the bank will lose buying power over a long period of time.

15:39Kate:So for a short amount of time, it's good.

15:40Pete:It's fine because you don't see the effect of it really. But for a long amount of time, you would. Yeah, you would invest. And investing we will get into, but investing isn't putting money in the bank. It's buying stuff that makes you money.

15:53Kate:Let's get into the how.

15:55Pete:Yeah, okay.

15:55Kate:We've talked a bit about the why. Let's get into the how. so should I save just a little bit every month or should I wait until I've got that little bit of extra money and then I'll you know okay I've got I'll save that little bit that I haven't spent yet

16:07Pete:no nobody has ever has anything left at the end of the month I don't right and I never did because it's just this like human nature or some sort of immutable law of the universe it just disappears money just it's incredible it's like money just disappears unless you track it yeah so we talk about being intentional um so you'll never spend what's you'll never save what's left at the end

16:31Kate:of the month it just gets used yes so you need to be intentional oh favorite word yes intentional about you know deliberate i'm going to save this much now yeah exactly even if it's only a tenner

16:45Pete:yeah they don't really anything is better than nothing so you said should i save a bit every month the answer is yes yeah as opposed to waiting until you've got something to save you need to force savings. And we talk about paying yourself first. We use that phrase a couple of times in the sort of budgeting bit and also in the debt elimination episode. So paying yourself first is essentially prioritizing yourself above everything else. So that's either by paying down debt if you've got it, or you save first. And it's the first thing you do before you pay your rent or your mortgage or whatever, because otherwise it won't happen, right?

17:22Pete:It's not to say you save and then can't pay your mortgage. That's ridiculous, right? Or your rent or whatever. But thinking, all right, I'm going to, when I set my budget for the month, I'm going to save X amount. I'm going to save 10 quid, 50 quid, 100 quid or whatever. Then I haven't got that money anymore. That's gone to savings and I will budget the rest, right? And that's how you do it. You have to choose where your money goes. That's what budgeting is, remember? Forward looking. You have to decide where the money's going and give it a job. It's either being spent or it's being saved, essentially.

17:52Kate:Okay, so you're paying yourself first, you're making a point of saving a certain amount. Where's the safest place to put that bit that you're saving?

18:01Pete:Safest is an interesting word, right? Generally speaking, on the amounts we're talking, money held in the bank is safe, right? There is what's called the depositors compensation scheme. So what that means is that if the bank was to go bust, right, your savings are protected up to£120 ,000 by the UK government. So as long as the government's good for it, you're fine, right? I think it will be all right. So safe is okay. So any bank or building society, but if it's money you want to get at, you don't want to lock it up. So there are savings accounts where you say, right, okay, the bank says we will give you a higher rate of interest, but you can't access your money for a year.

18:37Kate:Well, you don't want that

18:39Pete:if you might need access to that money.

18:41Kate:So things like Monzo Pots or... Monzo Pots is a great idea.

18:44Pete:or the equivalent of the other banks?

18:45Kate:There's Nationwide has like an instant access savings account.

18:50Pete:Instant access is your keyword there.

18:52Kate:And that's your, you can get it whenever you want.

18:53Pete:It's a separate account, but you can log onto your app and just move it back into your current account to spend anytime. So that's kind of what you want. You want to get a decent rate of interest if you can. But given that we're not talking about holding massive amounts in there, ideally, right?

19:09Kate:Yeah.

19:10Pete:And I think a lot of people make a really big deal about getting as much interest as you can, and they're forever moving money around. I just think, if that's your bag, then fill your boots, right? But life's too short for me to do that. I couldn't be arsed. I just couldn't be bothered doing that for an extra 0.1%. So, ooh, I can get a bit more over here. It's like, fine.

19:29Kate:If that's your bag, go for it. If it's not...

19:31Pete:Yeah, but I would always put it in pounds terms, right? People like me think in percentage terms, ordinary humans think in pounds.

19:38Kate:I was going to say, yeah.

19:38Pete:It's like, if you can get£31 interest a year and£33 interest over here, is it worth half a day of your time opening another bank again to get next to£2? No, that's my view on rate shopping. So get the best rate you can. Generally speaking, your emergency fund should be with the same bank that you have your current account with, just so it's super easy.

19:59Kate:Yeah.

20:00Pete:And likewise, any short-term savings.

20:02Kate:Is there a rule for how much of my income should go into savings? Like, is there a really handy X amount of your income?

20:08Pete:No. I mean, if you can get to... Shut down! 10 % that's a hell of a rate

20:13Kate:yeah

20:13Pete:if you can save 10 % then amazing that would be a stretch for a lot of people to start so you need to kind of start as something which

20:22Kate:you can maintain

20:23Pete:well yeah at least initially so anything is better than nothing so maybe start you know if you think I can save 10 quid a month then start 10 quid a month but don't do that for a year what you need to do is set a reminder after two months and put it up to 15 or 20 yeah right and just because you won't miss 10 quid a month if you pay yourself first and have it going to savings as soon as

20:43Kate:possible after you get paid you won't really notice it it's like you never had it right

20:48Pete:and so if and if you're then good at budgeting and intentionally spending the what's left next month or in two or three months time you can say well actually i can make that 10 quid 20 quid yeah and then maybe 50 quid and before you know it actually you're putting material amounts away yeah so there's no kind of rule of thumb i think a great target is 10 percent of your income but i mean i reckon 90 % of people listening to this will go like yeah right and

21:15Kate:that's and that's fine it's not to make you feel bad because you can't do that what you don't want

21:19Pete:to do is put people off whereas if you say oh you need to spend 10 % of your income which is sort of crap you get on your average financial influencer sort of thing so yeah it's a brilliant target but

21:28Kate:you need to start with what you can do yeah because if you try it for the first month and then just go oh crap i need to de you know go back into it you've it feels like a failure doesn't it But if you say, actually, no, I did manage to save£10 this month.

21:41Pete:So start with what realistic, but you've got to then do the other half of it, which is manage what's left and budget what's left so that you don't have to dip back in. Because then you haven't really saved.

21:50Kate:No, you did for a bit and then you pulled out again.

21:52Pete:Yeah, you saved for two weeks out of the four in a month. Then you had to dip back into it and that's not ideal.

21:57Kate:No.

21:57Pete:So you want it to be gone, you want it to not touch it. So you've got to manage the spending of what's left.

22:02Kate:Yeah. so again is there a realistic goal of what or if I can't save much now what is a realistic goal or is it just too dependent on who you are everybody's situation is unique

22:14Pete:you could be a high earner but you've got massive costs you could be a low earner and your costs are taking almost everything that goes out honestly anything is better than nothing if you've never saved before you just need to think okay one interesting exercise might be to look at what you spent last month stick out your bank statement or go onto your app because most apps will categorise for you and you think jeez I spent 200 quid on takeaways well spend 180 next month and save 20 quid one less

22:43Kate:one dish less in your takeaway

22:46Pete:yeah exactly and save that

22:47Kate:because no everybody overall is on their takeaway that's true Keema Nam what is it Keema Gavin and Stacey yeah

22:55Pete:lamb boon prawn boon chicken boon chicken boon chicken boon chicken boon

22:59Kate:lamb boon prawn boon mushroom rice bag of chips Keeman and nine popper noms.

23:03Pete:Yeah, a classic.

23:06Kate:But yeah, so it's everybody over all just on a takeaway, so maybe try not.

23:10Pete:Yeah, that's just, you know, you can always look back and see what could you have saved last month and still, you know, done everything you want to do. It might be a small number, it might be a big number, but start somewhere.

23:19Kate:Yeah, okay. How do I decide what I need to save for first?

23:22Pete:What do you need to save for first?

23:23Kate:So I'm assuming we've got the emergency fund that's tucked away. What do I save for first?

23:27Pete:Okay, that's the first thing, right?

23:28Kate:Right, okay. Get the emergency fund squared away.

23:30Pete:And then start to think about what we call sinking funds. And I've no idea why they're called that. I keep meaning to look this up. So a sinking fund is a saving for something that's coming in the short term.

23:40Kate:We talked about this.

23:42Pete:Did we? Did you look it up?

23:43Kate:No, but I said the reason I called it, in my head, I was like, this is why I would call it a sinking fund. And I was like, the Titanic? You know how it gradually is getting lower? Like you're building up to the inevitable spend?

23:54Pete:I'm thinking that's probably not the reason it's called a sinking fund.

23:57Kate:No, I know. But like the ship is going to sink. to got the inevitable spend, i.e. the sinking, coming up.

24:03Pete:I'm pretty sure that's not what it is. We need to look it up.

24:06Kate:There's therapists watching this going, right, she's got this, she's got this.

24:09Pete:Exactly.

24:09Kate:What's wrong with her?

24:10Pete:A sinking fund is simply, you know that something is coming up, some expenditure down the line. A holiday. Service an MOT on a car, a holiday, a big birthday. And so you think, right, that's coming in six months' time. That's going to cost me 600 quid. Easy math says I need to save 100 quid a month.

24:30Kate:Yeah.

24:31Pete:In order not to have to fund all of that from income in the month that it happens, or stick it on a credit card and pay it off later.

24:38Kate:And pay off more because of interest.

24:39Pete:Pay off more because of interest. So far better to look ahead, be intentional. What's coming down the line, right, okay, I've got this 600 quid bill for a holiday. I know I've got to pay it then because I've booked. I've paid my 30 quid deposit with TUI or whatever. I've got 600 quid to pay in six months' time. rather than freak out about it or bury my head in the sand until the month before, why don't I do that now? Because 100 quid every month for the next six months is a lot more palatable, a lot easier to manage than 600 quid in one month.

25:08Kate:Yeah, okay, cool.

25:09Pete:So a sinking fund is what's coming, what do I need to save between now and then? Monzo pots are brilliant for this.

25:14Kate:Monzo pots are brilliant for it. So is it okay to spend my savings if my goal changes?

25:20Pete:I'm just asking chat with GPT a minute. What does sinking fund?

25:23Kate:So like, let's say I'm saving for a holiday and then three, you know, I've got 300 quid of my 600 quid saved already. Like it's three months into the six month saving. But then for some reason, the holiday gets cancelled. We don't go. And now I'm like, oh, I've got 300 quid. Can I go and treat myself to a spa day? Can I do this? Is it okay to spend it?

25:45Pete:Yeah, if you want to, it's your money. You don't be beating yourself up. But you may want another holiday.

25:52Kate:and you're already 300 quid into saving for it

25:54Pete:so that's kind of what I would encourage you to do even if you just think you know spend 50 quid of it and keep 250 aside or whatever

26:02Kate:and decorate the bedroom or whatever it is

26:05Pete:you know what we've got to be slightly realistic about this but I think if you've partitioned it off already for a singular purpose you've already given those pounds a job why don't we just kind of keep them in that job and just delay a bit because if you can't go on that holiday you probably want one in a few months time

26:21Kate:Yeah, cool. That makes sense.

26:22Pete:You're not going to believe this.

26:24Kate:Is it about sinking ships?

26:26Pete:Well, according to ChatGBT, which may or may not be right, okay, the term sinking fund is historical. The sinking part refers to the debt sinking down. So this is if you're paying off a debt, right? An outstanding balance is being reduced. The liability is steadily being brought under the waterline and eliminated. I'm a freaking genius. or that judgment that you had behind the camera take it back well i was judging you hard over here

26:56Kate:for the titanic thing anyway basically the amount that you're aiming for is sinking below the waves

27:04Pete:because you're achieving it so you're actually not far wrong which pains me a great deal i'm feeling

27:10Kate:fantastic okay right so how can i save for the future an important thing whilst being able to live a little now because we have talked about before and I know you have a meaningful money a lot about you need to still live and enjoy life now because you don't the future is never promised

27:27Pete:but how do we how do we do both you set a budget right and so of course you do I wish there was a like an easier answer right you just sort of it just happens you think it and it happens the whole point of being intentional is you've got to tell your money where to go so yeah look most of us will live for decades right um and so what you don't want to do is get to the point where you're in your 50s and you don't have anything saved and you're no further forward than you were in your 20s yeah so you get there by balancing the now versus the one day and you've got to just decide for you because it's your money and it's your life you say right okay, if I can, out of my monthly salary that comes in, I can identify, let's say, 200 quid that doesn't need to go for mortgage, it doesn't need to go for car repairs or whatever.

28:24Pete:So this is money I can decide. We talked about discretionary income, didn't we? Or disposable. Disposable. Disposable or discretionary income, right?

28:30Kate:Oh, yeah, disposable. And then you said, I prefer to call it discretionary. Yeah, right. That's right.

28:34Pete:So this is money that doesn't necessarily have any job. Yeah. So I can say, right, I've got 200 quid here that I can choose. You know, I'm going to have a really lovely spa day for 100 quid and I'm going to save 100 quid.

28:44Kate:And that's your good balance of living for now and saving for the future.

28:48Pete:Exactly. Or actually, you know what, I'm doing fine. I'm going to spend like 20 quid and get a couple of books and I'm going to save 180 quid. Whatever. There is no right amount, but don't do one or the other. A child says, I want everything now.

29:03Kate:Yeah.

29:04Pete:An adult, I think, says we need to balance the two. It's nuance, right? Most things in life and in finance are not black and white. So actually, you've got to kind of find a balance that works for you. And by being intentional, you're kind of questioning it. And you say, okay, well, actually, maybe next month I do it slightly different. That was okay. But actually, I could have saved a bit more. You know, I enjoyed my spa day, but I don't need to do that every month. So maybe next month I'll just save all 200 quid or whatever. Be intentional, decide, and live with the decisions. So that now brings us to the part where Kate turns the iPad off.

29:38Kate:And you ask me if I've got it. Who knows?

29:43Pete:Okay, why is the sinking fund called a sinking fund?

29:45Kate:Well, let me tell you. Okay.

29:49Pete:Now, why do we not keep too much money in the bank for too long?

29:54Kate:Because the inflation means its spending power will reduce the longer it's in there.

30:02Pete:Great answer. Very succinct. Well done. What is the difference between saving and investing? I feel like we covered this really very short period so you might not pick this up

30:11Kate:what's the difference between saving and investing well saving is usually short term so we said sort of two three years yeah and investing is for the longer term because it's where you saving is like you put money in a safe space in the bank investing is where you buy things that are going to make you money

30:29Pete:nice exactly right

30:30Kate:mic drop

30:32Pete:Kate has got it woohoo this is good excellent

30:35Kate:this is the most confident I've felt Normally I'm like sweating.

30:39Pete:Well, you are good at saving. And we have talked about investing, you and I, quite a bit before you have investments as well. So we'll talk about that in due course.

30:46Kate:Yeah, I'm looking forward to the topic on ISIS. Sorry, is there any other questions you want to ask me? No, no, I feel like you've got it. It's just, you know, not too deep this week. No, which is quite nice after debt. I really enjoy saving because credit where credit's due, you've let me live at home without rent. Now, I know most people don't have that, But the condition of me doing that was that I saved.

31:10Pete:Yeah.

31:11Kate:And I know some families say like, oh, we'll charge you£200 of rent. But actually what they do is put it in a savings pot or whatever.

31:16Pete:Which is an entirely legitimate way of doing it.

31:18Kate:Brilliant way of doing it. You knew I was going to do that myself. But if you're learning how to do it, that is a good way. Everybody's situation is unique. And I'm very grateful for the way you've done it. And the fact that we were in a position where you could do that.

31:31Pete:Yeah, exactly. Exactly. I think what we've done is we've kind of forced you to do it. I mean, obviously, if we'd have made you set up a direct debit into my bank account to pay for rent, it would have had the same thing.

31:44Kate:But it's giving me the autonomy. It's made me excited about it.

31:47Pete:Exactly. I think it's good for you to see your balances growing.

31:51Kate:Yeah, I love it. You know, I'm 22 and we are looking at me buying places.

32:00Pete:because I've saved since you started work you've saved very well and yes you've been in a position to do it I don't want that to be like

32:10Kate:you can't do that because you haven't done that doesn't mean you're a failure that's your unique circumstance a really good example is my boyfriend he moved out at 16 so he's been paying rent all that time that I haven't

32:23Pete:he's going to be in a different financial situation

32:24Kate:but there's no right way to do it because in his experience he's had loads more independence in his life than I've had. So, you know, there's no right way to do it. I feel very lucky in the situation I've had. And I think the main thing is by having the autonomy of doing it myself, I see the numbers go up and I'm like, yeah, that's really cool.

32:46Pete:It is cool. There's no doubt about that. It's good for the mind and the soul. So I guess to summarize, we've talked about, you know, we're kind of sort of building here. We've talked about budgeting, we've talked about getting out of debt. the point of saving is to increase your financial control. It's to give you a buffer between you and the unexpected. That's what your emergency fund is for. But then saving on top of that is about getting ahead of the game, not living paycheck to paycheck, but getting ahead, thinking ahead, what am I going to need to spend in six months, a year's time and planning for that and saving for that now so that you don't have to use credit cards or an overdraft and hence pay interest.

33:27Pete:yeah right it's about making yourself rich not other people which is all that is you're making other people rich and yourself poorer so that's the power of saving and the magic such as it is is to do it intentionally and do it when you get paid pay yourself first it's just the only way i don't know of any other way to do it unless your income vastly increases uh exceeds your spending

33:50Kate:which for most people it doesn't know amazing so thank you so much for watching i really enjoyed this one i mean i enjoyed them all but i really enjoyed i feel like we're settling into a bit of yeah we are i mean we have managed to film for 45 minutes so i'm looking forward to editing that down to about 30 35 minutes but here we are um thank you so so much for watching um please like and subscribe it really really helps us out um if you've got any feedback or anything you'd like to um let us know please leave a review or write any comments in the youtube channel you know in the youtube comments i'll be keeping an eye on it um also if you have any questions feel free to email us our email address is hello at bank of dad dot show and just pop you know question in the subject line because hopefully we'll have been having some emails from you by now interesting so it'll be nice it just makes it easiest for us probably what i'd like a segment at the end where we answer a question or something yeah i think that'll be nice or if it's a really great question we might do a whole episode at the time of filming tomorrow is launch day so we haven't had any no questions questions yet because you don't know this exists yet um but yeah so hello at bank of bankofdad.show with a subject line question.

34:56Kate:I don't think we've said anything that would require show notes today.

35:01Pete:No, no, but by the time we go live, hopefully the website will be up. Yeah. And each episode will have essentially an entry on there. So if we, I don't think we've done any links, maybe to the Monzo Challenge or whatever, I don't know if there's a page for that. But yeah, each episode will have its own page and there'll be any sort of pertinent links will be on that page.

35:19Kate:Yeah, and that'll be for this episode, bankofdad.show forward slash episode five.

35:24Pete:Good effort.

35:25Kate:I think I've done a really good job of those things today.

35:27Pete:Well done, Kate.

35:28Kate:Thanks. I'm basically just an influencer. All right. Okay. So yeah, I think that's everything. That's it.

35:33Pete:Thank you so much for watching. We will see you next time. Next time.