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How to save money 20s ft. The Broke Generation

Sally McMullen

Alexandra Hourigan

Posted: 12 April 2022 12:01 am

News

And no, we're not going to tell you stop buying iced lattes.

Do you always find yourself dipping into your savings account? Or maybe you rely on your weekly online shopping deliveries for that hit of serotonin? Same, chick. This week Sal & Al chat with the legend behind The Broke Generation Emma Edwards about setting up a budget that'll stick, emotional triggers that lead to impulse spending and how to actually save money in your 20s.

PSA: This episode isn't financial advice. Please seek the help of a professional financial advisor regarding your specific financial situation.

LISTEN TO EP #210 OF TWO BROKE CHICKS

Sally McMullen
Hey chicks, I'm Sal.
Alex Hourigan
And I'm Al.
Sally McMullen
And this is Two Broke Chicks, the show that teaches life lessons for the gals, from the gals. And in today's episode, we're going to be chatting to Emma Edwards, aka, The Broke Generation, and I promise you by the end of this episode, you'll know how to actually save money in your 20s.
Alex Hourigan
Yeah, and like, if we can do it, you can do it.
Sally McMullen
Literally, we're not called Two Broke Chicks for nothing.
Alex Hourigan
Straight up, straight up.
Sally McMullen
But before we get into the juicy stuff, what's your life lesson of the week, Al?
Alex Hourigan
I broke my toe! I broke my toe.
Sally McMullen
My poor baby.
Alex Hourigan
And I am so embarrassed. Because it's pathetic. I am walking around the shops, limping like a loser. And someone was like, "Oh, like have you hurt your knee?".
Sally McMullen
Of course.
Alex Hourigan
Pulled my ACL, could have gone pro. But-
Sally McMullen
I hate you.
Alex Hourigan
Sorry, I'm not a straight, white man. But
Sally McMullen
Uni games!
Alex Hourigan
Legit, benched for the season. And literally, there's not even a good story to go with it.
Sally McMullen
There never is.
Alex Hourigan
I was getting ready to go get my morning coffee and the corner of my bed got in the way of my fourth toe. Not even my pinky toe. And it got caught on the corner, I heard a funny, fun little crack, and I broke my toe. And the real horror story of this is that I can't wear cowboy boots for six weeks!
Sally McMullen
What are you gonna do? That's your entire personality!
Alex Hourigan
I don't know! I don't, like I'm genuinely stressed. I was putting my cowboy boots back into my wardrobe this morning and In The Arms Of The Angels by Sarah McLachlan came on. So basically, I would just like the sympathy for my toe and for everyone to just send good vibes and pity my way so that this manky little toe can sort itself out.
Send Al like an e-card, we'll put it in the Facebook group.
Yeah.
Sally McMullen
I was saying to Al that we have a bunch of, like, parties and events because, you know, social!
Alex Hourigan
It's my birthday in two weeks!
Sally McMullen
And it's Al's birthday soon, I was saying we're gonna have to do like a daddy-daughter dance, and you're gonna have to stand on my toes, and I'll carry you around the dance floor at Frankie's to get you through.
Alex Hourigan
Do you know what my mum said? My mum said, "Well, Alex, you should really, you know you have long toes". And I was like, she's not about to body shame me. And she goes, "You know you have long toes, do you have a pair of Birkenstocks? Maybe you should wear some Birkenstocks around the house. That's what I do to stop myself from stubbing my toe". And I was like, "Great tip, mum". There's your life lesson. Wear Birkenstocks around the house so you don't break your toe.
Sally McMullen
Mmhmm.
Alex Hourigan
I hate my life.
Sally McMullen
That's a solid life lesson. All right, my turn. So,
Alex Hourigan
You break your thumb.
Sally McMullen
I broke my toe, just so we can be twins. No, so I've seen this one making the rounds on TikTok, and you probably have too, that you can look back at the very first post you ever liked on Instagram, go to your profile. Select the little hamburger menu on the top right.
Alex Hourigan
The three lines?
Sally McMullen
Yes.
Alex Hourigan
Okay.
Sally McMullen
That's the one, click on your activity, then under your activity, choose the interactions option. And then you can select likes and that will show you a complete history of every post that you've liked. And then from there, you can filter it from newest to oldest and huzzah, you will find the first Instagram posts you've ever liked. So what is it?
Alex Hourigan
Oh my god, it's a Disney meme!
Sally McMullen
What is it? We'll post it in the Facebook group so you guys can see it.
Alex Hourigan
It's a picture of Aladdin and Jasmine on the magic carpet in A Whole New World. And the caption is "When you don't look at your phone for four hours and you start feeling spiritual as fuck".
Sally McMullen
That checks out.
Alex Hourigan
I'm like, "I'd like that today".
Sally McMullen
When was that from?
Alex Hourigan
That was from 2016.
Sally McMullen
Wow.
Alex Hourigan
I know, but I don't think that was my first Instagram account. I think I had a different Instagram account and then deleted it. So it could have been worse.
Sally McMullen
Yeah. 100%
Alex Hourigan
But oh my god. That's like a really long time ago.
Sally McMullen
Right? Mine was from 2012. And surprise to no one, it was a beach photo that my sister had posted. So still obsessed with Meg. My 2022 activity is about the same.
Alex Hourigan
I'm about to go into a deep, deep scroll whole.
Sally McMullen
Yeah, it is amazing.
Alex Hourigan
I don't know who any of these people are! God, I cut some people off.
Sally McMullen
I love looking through because you say it, like, the insane Instagram filters that we used to use.
Alex Hourigan
The Whitagram?
Sally McMullen
The Whitagram, the frame, the collages, before carousels were a thing and you wanted to post more than one photo? How sad!
Alex Hourigan
There is a lot of Shani Grimmond and Sammy Robinson going through here right now. Ooh, there's some Richie, he was the Bachalor in, like, 2004? Who cares?
Sally McMullen
Yeah. So, go back and have a look. You'll either feel nostalgic or deeply ashamed. So I like those odds.
Alex Hourigan
I'm disgusted with, like, how many photos of, like, really skinny, like, people that are liked all through that and probably were saved with like, me being like, "Wow, she's". And they are beautiful, but like, just I know what I was thinking when I was liking those photos. And I'm like, Nah.
Sally McMullen
Yeah.
Alex Hourigan
Give me them girls with them tig ol bitties, dat body positivity.
Sally McMullen
Yeah, like we said in our episode with Riley, curate your feed so that you can see yourself in it. But yes, we will post that in the Facebook group and please chuck yours in the comments so that we can laugh together.
Alex Hourigan
Oh my god, yes!
Sally McMullen
Alright, fab. Well now that we've been scarred by your toe and first Instagram posts, let's get into the episode.
Alright, so let's jump into our chat with Emma Edwards. She is the mastermind behind the Broke Generation Instagram, podcast, website, the whole shebang. Basically, she's a former spend-a-holic, which I absolutely relate to, who has turned her life around. And now basically has created like a one stop shop for all of your financial needs. And if you need to unf*ck your finances, this is where you should go.
Alex Hourigan
Sally swore.
Sally McMullen
Naughty!
Alex Hourigan
Naughty girl!
Sally McMullen
But yeah, so today, we are so excited to get Emma on the horn. Because she is going to give us a bunch of super practical tips on how you can actually save money in your 20s
Alex Hourigan
Yeah.
Sally McMullen
And it's not 'stop buying iced lattes' because it's not going to happen.
Alex Hourigan
If I see one or hear one person that ever is like, "Just stop buying avocado on toast". I don't, I'm allergic to avocado and I'm still poor!
Sally McMullen
Literally, it doesn't add up.
Alex Hourigan
What's the reason?
Sally McMullen
What is the reason!
Alex Hourigan
What's the reason? Because I'm still broke and don't eat avocado. They're like, maybe the $8 iced lattes and I'm like, still broke.
Sally McMullen
Details, details.
Alex Hourigan
Whatever.
Sally McMullen
Of course, everybody's financial situation is different. And this isn't financial advice. I repeat, this isn't financial advice.
Alex Hourigan
Yeah, don't come for us. Don't sue us, please.
Sally McMullen
So, if you do have any really specific questions about your financial sitch, hit up a financial advisor and they'll sort you out, but you'll definitely get some good tips out of this one.
Alex Hourigan
Honestly, if you take financial advice from us, like, that's on you.
Sally McMullen
From Two Broke Chicks?
Alex Hourigan
Yeah.
Sally McMullen
You deserve what's coming to ya.
Alex Hourigan
Like, we're being straight up here.
Sally McMullen
Welcome to Two Broke Chicks, Emma.
Emma Edwards
Thanks so much for having me. I'm so excited to be the third broke chick for the day.
Alex Hourigan
Yeah!
Sally McMullen
Absolutely, for life baby!
Alex Hourigan
For a little bit of context for you, Emma, I don't like to save money. I have set multiple budgets in my life. Whether or not they've been stuck to is a story for another time. However, do you actually think setting up a budget is worth it? Does it work? And is it actually sustainable?
Emma Edwards
Spoiler alert, yes.
Alex Hourigan
No!
Emma Edwards
Unfortunately, unfortunately for me, I have made an entire career out of something that I used to be, like, violently against, which is a constant journey for me. But no, I used to be exactly the same as you. I would try the budgets, I would do what they said and just be like, just doesn't work or if it does work, I'm just, like, having this miserable existence. And like honestly, what is the point if I can't get my Velvet Matte Nars Pencil really? Like, why would I want to save if I can't do that? But having a budget doesn't really need to be, like, it's this huge restriction exercise and I think that that's what it is so often portrayed as. Like, travelling on a budget and doing blah blah blah on a budget that you can do actually, you can have a budget of a million dollars. If you have it, go you.
Alex Hourigan
Really happy for you. Claps for you! Why are you listening to this podcast if you have a million dollars? Go away!
Sally McMullen
Just laugh at our pain.
Emma Edwards
It's more just organising your money in a certain way. And I, the way I get myself to do almost everything in life is to make sure there's like a few little treats for me in there. So like you know, going to the gym, it's not just the gym, there might be a coffee after. And budgeting is the same, like, I will not be budgeting unless I am adding in my six monthly balayage and my eyelash extensions and all that. Like, you know, obviously there's different levels of what you can afford and at different points in my life and I've had different amounts of money available. That's been different things. Sometimes it's literally been, like, my $20 a week Good Life membership, when that mattered, I was into the gym for a couple of years, I'm not anymore. But that used to be something I enjoyed. And you know, like a coffee on the weekend or something like that, like that was kind of where I started having gone from, you know, just being like, "It won't make a difference. I'll buy whatever I want, whenever I want". And I just had debt and nothing else. Whereas we do it with food and fitness and things as well we kind of be like, "No cake ever, only yoga and the gym", and it's like, but there's, there's somewhere in between. There's somewhere in between using your money at the wall and spending nothing at all and living a miserable life. There is somewhere in between that, and finding what that is for you depending on what is coming in and what your responsibilities and your expenses are, is the key part. And then working out how you can have the things that you want and not the things that you don't want. It's literally just organising your money, and putting money towards the things that matter.
Because when you do that first, when you prioritise the lashes or balayage or the whatever it is for you, when you start with that, you're already getting more value out of your money. And that's really the goal, even if we are literally talking $50. How can you maximise that the most? Whereas if you don't even start, if you don't set any plan at all, you're just going to spend it on the first thing that you see, the first thing that comes up. If someone wants to go for coffee, "Oh okay, I'll do that". Someone wants to go for brunch, "Okay, it's gone". Whereas if you think 'how do I actually want to spend this this week or this month', then you can actually pick and you're going to, like, start at the top of your pyramid and work down to the bottom of your pyramid. You know.
Alex Hourigan
I like that mentality of, like, picking first where your money's gonna go, not on the first thing that pops up and that's where money goes. Because I definitely don't do that. But if I did, I would say that was a really good tip.
Sally McMullen
Yeah, absolutely. So if you want to set up a budget, I know that everybody's budget is going to look different depending on their situation and goals. But if you do want to set up a budget, where do you start? And like, what's the breakdown, for example of percentages that you should spend on say, essentials, fun money, emergencies, whatnot?
Emma Edwards
Yeah, so I mean, I find percentages a little bit difficult to work with just because everybody is so different. And you know, if I go it should be 30% towards needs. There was something floating around at one point that I think there was some sort of, like, expert years ago said you shouldn't spend more than 30% of your income on housing. And I was living in London on minimum wage, and I was like, hmm? That's a funny joke. Nope. So I find that kind of unhelpful, but I really think that it's, you know, my first thing with budgeting is, make sure that your needs are first of all streamlined. So look at what your needs are. And you know, for some people that literally might be phone bill and petrol to your part time job, if you're still living at home with mom and dad or whatever. But if you're living out of home, there might be a few more things. And if you've got kids, there's going to be even more things. But firstly, work out what the absolute, like 'need these to exist in this world' are and make sure they are cut down as much as you can. You know, are you getting the best price for that? Could that be less? Have you been meaning to switch phone plans? You know, are you still paying for Foxtel and you don't need it or whatever. All those kinds of things, like, streamline those first and then work out what that is as a percentage and just make sure that however you do it, as soon as your money comes in, however, you're paid weekly, fortnightly with your freelance, whatever, make sure that they are paid first. Because half the problem is that we don't do that. And I used to do this I used to have a job when I was about 25 and we got paid fortnightly. And it was like a joke in the office whether it was good fortnight or bad fortnight, because none of us were planning our money. And we were like one fortnight it will be rent, bills, car payment, petrol, all that stuff, and then the next fortnight there'll be none of those payments, and we literally just lived just like.
Alex Hourigan
Rich!
Emma Edwards
Lived at the ends of the spectrum because we weren't planning our money properly. So the main thing, I think the budgeting is pay the needs first, Streamline them and pay them first. And then with what's left, it's really working out what is viable to you, also how old you are and how much time you've got. If you are 18 and you've got $200 to work with per fortnight, or something like that, for wants and for spending. You know, you might be able to get away with with living a bit more now and putting slightly less away in savings because you've got more time. But really working out with what's left, as long as it is what's left, because that's when you know, really dangerous behaviours are happening. It's one thing to spend all your money after you've paid your bills, it's another thing to spend all your money before you've paid your bills. And that's, you know, that's what happened to me. That's how I got into debt. And I never want anybody to be in that position. And it's extra horrible to be in that position when it wasn't completely out of necessity. Like sometimes you have to and sometimes I use my credit card for my car insurance or whatever. But other times I used it on like polyester dresses I didn't need and that really sucks.
Alex Hourigan
Why are you attacking me right now, Emma?
Emma Edwards
My Ghost self is attacking. That's really the crux of it. Pay your needs first and then with what you've got left, work out what is reasonable to you and tweak it as you go. If you feel really restricted, you're probably putting a bit too much into savings or not giving yourself enough what's reasonable. If you're sort of spending for the sake of it, because this can happen with non natural spenders. I can't relate to these people at all. But some people are kind of like, "Oh I gave myself $100 a week and if I haven't spent it by the end of the week, I just, like, waste it". And I'm like, mm can't relate. But you know, then don't give it to yourself, put it away, then. You know, like, actually work with the way your brain works.
Sally McMullen
Yeah, that's what I do. As soon as we get paid, I put, like, a specific chunk of money into my savings account every month, because otherwise I'll spend it.
Alex Hourigan
Yeah. I started doing that and I hate it.
Sally McMullen
Lock it away!
Alex Hourigan
So annoying! And then it gets to the end of the month, and I'm like, it's just there. I'm like, it could just move back over.
Sally McMullen
Naughty, naughty!
Alex Hourigan
We've all done it, though. We've all been there where we've moved stuff back, like the girls are on the horn. And they're like, come on, it's bottomless brunch. It's, you know, bottomless tacos and margaritas. And I'm like, "Yeah, okay". And like, there is that social pressure as well of, like, wanting to go out with your friends and having that moment of people being on different pay cycles as well. Which adds more of a stress as well of being like, some people get paid fortnightly, some people get paid monthly, like we get paid monthly. And then sometimes at the end of the month, we're like.
Sally McMullen
Literally, we're crawling to that finish line.
Alex Hourigan
We're like, "We would really like to get paid". And it is, as well also, I think there's also that thing that if your friends like, "Oh, like I don't know if I can make it work". Don't be a dick and don't be like, "Just come!".
Sally McMullen
Yeah.
Alex Hourigan
Which I've definitely done to people before.
Sally McMullen
Same.
Alex Hourigan
And definitely had done to me. And it's like, if someone's being like, "No, I really kind of need to save", don't give them that social pressure. Because it is really hard to have that internal paddle to not move from your savings to your spending. But also if you did it, don't crucify yourself. You're okay.
Sally McMullen
We've all been there.
Emma Edwards
Yeah, I mean, that's the thing, we all do it. And it's it's really the frequency of how much you're doing it. I personally have, like, what I call a 'whoops fund', which is just like one of my savings accounts, it's just a little bit there's like, it's sort of $100 to $200, it goes up and down to payment, how much I use it. And I have my roundups going into there because the bank I bank with has roundups.
Alex Hourigan
Oh, that's cool.
Emma Edwards
So if I take $50 out for that problem, this branch or whatever, as long as I'm, you know, with the frequency with which I'm doing that is such that I can do that once or twice a month, and then the roundups on every other transaction, just replenish it. And even though it's not different to taking that same $50 out of another account, it's really important for your relationship with money. Because if you are taking that money out of your house deposit savings, for example, or your travel savings, or your student, if you're saving up to study or whatever, some other savings, that really matter to you, you're gonna have that weird relationship with that branch in terms of at first you're like, oh, yeah, whatever you're allowed to take the money out, and then you're going to be like, "Oh f*ck, I feel really guilty, I shouldn't have done that". Whereas if you're taking it from a place where you actually have the permission to go over if you really, really want to, and you have this extra little pot of money to draw from, even if it's 50 bucks in cash in your wallet or something. Having a little pot that actually does allow you to, even though it feels pointless, and it feels like it's no different. On the mindset on your relationship with money, it actually compounds over time to be a lot better.
Alex Hourigan
I really liked that tip of having like a 'whoops account' that comes from your round up. So assuming it's kind of that banking system that when you spend money and it's like $19.20, it puts 80 cents and rounds up to the dollar or however, whatever the system is, and then rounds up in a certain way and then puts that in an account for you to like, dip your fingers into later. I really need to get in on that.
Emma Edwards
Yeah, so depending on the provider, it can be different. Like mine adds on $2 extra, I choose how much, but yeah, it's it rounds up to the nearest dollar and then two extra, you can do it with different ones. But I personally find that that helps because you don't really notice it. It's like everything. If everything you bought was $1 more expensive. You'd probably still buy it.
Alex Hourigan
Oh, without a doubt. But if I'm spending $200 and there's $5 shipping, absolutely not.
Emma Edwards
Oh yeah, so different.
Alex Hourigan
There is no universe that I'm spending, like where's the free shipping, doll? Absolutely not.
Sally McMullen
Not good enough.
Alex Hourigan
We just spoke about round ups. That's like a really good kind of life hack and change to make in a way that you can literally start saving money now and instantly. So what other kind of life hacks or things would you set up right now that would save you money instantly in everyday life?
Emma Edwards
Yeah, so I mean, this sounds like a silly one, and it is only relevant if you live on your own at home. If you're still at home it might not be as much of an issue but somewhere I waste so much money is popping into the grocery store for one thing that I haven't planned for properly. Or my partner and I had this toxic trait that we, every so often we slip into doing it again. We plan for the week and we do the food shot but we just stop at Thursday. And then it gets to the weekend cuz we're like well, we're gonna have plans, we're gonna do this, we might get takeaway. But that's all very well if we actually have plans or we actually are having a night in and and getting takeaway, but sometimes those plans don't come to fruition. But then we'd be getting take away or going out to eat for the sake of it. And again, it's that same thing. Is it any different on paper? No, but in terms of mileage you're getting for your money or value you're getting out of your money actually makes a really huge difference long term. Because there is such a difference between thinking, "Oh shit, we haven't got anything planned. Oh, let's get UberEats. Oh, it's gonna be an hour. Oh, it's cold. It's raining". And thinking night in, date night, we're watching this, we're ordering what we want like, they're two completely different transactions even though on paper, they're the same amount and they're the exact same money. So firstly that, like actually plan your groceries. Actually plan every meal like often I'll just do dinners and then I'll be thinking what am I even eating for lunch and then I'm up the road getting a reuben sandwich.
Alex Hourigan
Oh, love a reuben.
Emma Edwards
Aside from that, it's really for me about again, maximising what you're spending and maximising every opportunity. So things like getting cash back when you are shopping online. If I see something in store, I will go home, get it online, even if I go back to the store, collect it next time I'm there, to get the cashback. And you can be getting sometimes with some of the providers you can get like 10 to 15% cashback. Particularly if you ever shop at Net-A-Porter? Is it Net-A-Porter or Net-A-Portay?
Alex Hourigan
And The Iconic as well?
Emma Edwards
Yeah. Like, you can be getting 15 to 20% cashback and it's like, just wait until. Not only does it make you wait till you can get a good deal, but just wait for it to come around. And it's, like, substantially cheaper and it gives you time to think about if you've actually, if you've actually wanted it. For food and drink and stuff. There's an app called Eat Club that's really good. And loads of really good restaurants are on there. I don't know if it's Australia-wide but I think that it is.
Sally McMullen
Yeah, we have that in Sydney, I love it.
Alex Hourigan
Yeah.
Emma Edwards
Like 30% off, like, really good restaurants that you would go to anyway. Like, particularly if you dine out on weekdays, it can be really good. So just like, I think it's just maybe adding, like, a layer of filtering, particularly if you are really looking for those ways to save, like tangible money and see immediate benefit and get like money off of things rather than, like, actually activate having money in your account or whatever. Look around for apps. Like there's that really wacky site called Oz Bargain that's, like, chaotic.
Alex Hourigan
It is stressful.
Sally McMullen
Yeah, it is like Reddit slash Chemists Warehouse. All of my senses are like, when I'm on there, but you can save some bucks.
Emma Edwards
People are dedicated to posting good stuff. Like, they'll just be like, you can get free burgers at this place today. And I'm just like, oh.
Alex Hourigan
Done. Say less.
Emma Edwards
Honestly. So yeah, I mean, little things like that. There's that Honey on the browser, the Google Chrome extension that checks for discounts and things. Like, I don't think I ever shop online now without thinking right, where is the best cashback? And have I checked Honey? And yes, I will put in an extra five to 10 minutes of labour, checking Honey, checking cashback, emptying my cart and starting again. And there's multiple benefits of that. Not only are you making sure you're getting the best price, but you're also giving yourself a little bit of time to think about whether you're buying impulse. And sometimes I'll actually be like, you know what? I really don't need this, what am I doing? And so adding in those steps, even though it can feel a bit like I want it now, if you are feeling that it's probably good to actually put those steps in because sometimes you can catch yourself making an impulse purchase that you don't really need.
Alex Hourigan
I saw this TikTok the other day, that was to help stop with impulse buying, which is not an issue that I experience ever. Basically what it was, is she was saying, okay, like, if you see, for example, an iPhone case that you really want, and this iPhone case is $25. And I turned to you and I say okay, you can either have the phone case, or I'll give you $25 cash. If in your head, you're going to take the $25 cash, because you're like, "Ooh $25, that would be a bit snazzy", or if you're like actually, I do really need a new phone case mine is looking tired, and you take the phone case, then you know to buy that. You know, you need that, you know you really want that. Whereas if you're like, "You know what? $25, that's maybe, like, two Happy Hour cocktails this weekend, I'm going to go with that", then you know which way you need to go, which I've definitely started kind of doing in my shopping now because I can also get very wrapped up in a sale. When there's like a site wide sale, I will scroll through not thinking, "Okay, you know what, I do need a new pair of white sneakers, I do need, you know, maybe a new like, knit wear top for winter". I just go, "Okay, let's start at tops, then we're gonna go to bottoms, then we're gonna go through dresses", and I then have, like, $500 of stuff in my cart and it's like, girl, get it together. So that's a little that's a little tip for everyone else.
Sally McMullen
You're a shopping expert, girl!
Alex Hourigan
Yeah! I also love ClassPass, which you know, fit. But you can get like a free trial for 30 days? It is either 30 days or two weeks, and you get 15 points. And what it is, is you can trial all these different gyms with the points and certain classes are worth different points. So you can try a Pilates class which is worth, you know, seven points. Or you can try a boxing class which is worth five points. And then if you keep putting in a different email every time, you'll get! I'm kidding, don't do that.
Sally McMullen
Hack the system!
Alex Hourigan
ClassPass is probably like, bitch. I'm kidding, I've never done that. But it's also a really good way and they have, after your free trial, really affordable kind of ways that you can purchase a certain amount of points for the month and then allocate that. And they go over to the next month, so if you don't spend all your points in one month, they go over to the next month. Because as well, for example, if you break your toe, like I've broken my toe yesterday, and you, I know it's really upsetting, Emma and I'm trying to work through, it's been really hard. Like, I'm not going to be able to go to the gym for, you know, a little bit, then I don't want to waste my gym membership. And a lot of gyms these days as well, they're like, "Okay, if you can't come, we're gonna charge you $8 to freeze your membership still", and I'm like what's going on.
Sally McMullen
Literally. We will take your firstborn, and your entire savings.
Alex Hourigan
Yeah, that's another little app that I like, and Milk Run, which I've spoken about before.
Sally McMullen
Yeah, we love Milk Run.
Emma Edwards
That's interesting to know, I've used ClassPass, I felt like ClassPass has had more personalities than I have in the last 10 years. Like, there's been so many different things. And that's just like a whole other new, I just I'm here for the rebrand. I think the business model had some issues from what I've heard. But I'm glad that it has found its feet, that's actually really good idea. And that's actually different to a lot of other things. I like the credit rollover, that's really good. If I ever choose to return to the gym sphere, I will consider it.
Alex Hourigan
Or, just call your gym and quit. I think I've called my gym and quit, maybe three times, and I've knocked off about $17 off my weekly rate. Because when you call up and you're like, "Yeah, I'm gonna quit". They're like, "Why do you want to quit?". You're like, "Oh, you know, like, it's a bit expensive. And you know, I don't get there as much". And they're like, "Okay, we'll offer you this amount". And you're like, done. And then maybe like three months later, you call again. And you're like, "I'm quitting". It's a very toxic relationship I have with the customer service.
Sally McMullen
That's the same with so many of those ongoing payments, though. Like, do that with your utility provider, your bank, like if you call them up, and if you've done your research, and you can say, well, I can switch to old mate over here and save blah, blah, they'll probably cut down the cost and send you a free pair of headphones as well to bury it. So don't get charged the lazy tax just for like, leaving it to roll over. But Emma, one of my favourite things about you, and there are many, is that you weren't always a money savvy queen. You were a little bit of a spend-a-holic in your past life, sorry to bring it up. But if you had a time machine, what money habits would have you started earlier in your 20s, with hindsight?
Emma Edwards
It comes back to that honestly, nobody ever really said, "Are you saving some of that money?". And I don't really know quite, you know, whose responsibility is that? I don't know. But it would be just to keep just a little bit like, even if it was just 5%. Because that is one thing. The one thing that is running out is time, particularly, you know, with retirement age, you know, at the moment, it's in our 60s. But for us, it would probably be like, 92. But even talking to people now some people that follow me are like 18, and they're like, oh, you know, I really start saving. And I'm like, yeah, that would be like, you have such an opportunity to start saving. Whereas the older you get, the closer you get to retirement, the closer you get to possibly wanting to have children or change careers or whatever. The earlier that you can use some of your financial capacity, that well the earlier you start, the less of it you need to use to make an impact. Compound Interest, did not know that that was a thing. Obviously, interest rates are very low at the moment, but throughout certainly my lifetime, they have fluctuated and they will again and so you can sometimes get more. But, you know, to be careful what I say in terms of this is obviously not advice, but learning about other ways to grow your money. Like in the stock market or with your retirement savings. Just thinking more big picture. Like I honestly, I had this false belief and I think a lot of people do, that my life and my income would be an upward trajectory. And I don't know why I ever thought that because I didn't even know what I wanted to do with my life. And when I did have a job it was in, like, marketing, which is notoriously not well paid. I knew I was never going to be a manager. I don't quite know why I thought the things that, I just wasn't thinking about it. I just thought that when I was older, it would be okay and that when I got a salary, it will be okay. And then I was like, oh wait, my salary is less than I was earning on minimum wage at my part time job, okay. Those are the things that people don't tell you. And so if you do have the opportunity to live at home for, you know, a period of time while you're working, whether that is before you're 18 or after. I know in Australia it is a little bit more common than it was for me back in the UK, a lot of us moved out of home or 18. Whereas in Australia, a lot of people are able to stay at home just because the uni culture is a bit different and that kind of thing.
Alex Hourigan
Yeah, half the guys on Hinge are still bloody at home too!
Sally McMullen
Al's like, can confirm.
Alex Hourigan
Can confirm that.
Sally McMullen
I've done some field research and.
Alex Hourigan
Only for the podcast, only for this episode have I done that research.
Emma Edwards
It sounds so simple, but just think a little bit big picture. Think about, you know, if you're earning 200 bucks a week at your part time job or something just just 20, just put $20 away. Because in 10 years when you're still not even my age, it will be worth so much more and just having a little bit there. I mean, I had a friend once and we both worked together at this hotel, and we both had another job as well. So we both did the hotel job part of the time and then the rest of the time, we both worked in separate cafes. And she like revealed to me two years later that she had been saving all the money from the hotel job and just living off the other wage. And I was just like,
Alex Hourigan
Bitch.
Emma Edwards
Exactly that. I wish I had done that, because we didn't live particularly different lives, I probably just had like two extra Rimmel lipsticks than she did. You know, like there's, when you are young, and you have less responsibilities, you can have a pretty fun life. And you can still do the bottomless brunch and this and that. But just put a little bit away as well. That is the one thing that I wish I had done and just engage with your finances and stop thinking that you will fix it later. Because you probably won't.
Alex Hourigan
You're not going to, yeah.
Sally McMullen
Yeah. And also, I think that that was the biggest thing for me is that I was very passive about my money, initially as well. And was like, out of sight, out of mind, ignorance is bliss. And if anything, the money mindset, and switching that and getting myself into the habit was harder than actually saving the money. Like because the money was always there, but switching that behaviour was the hard part. So the earlier that you do that, the easier it will be in the long run, because you can't teach an old dog new tricks.
Alex Hourigan
Yeah, I think it's also just like understanding your own toxic trait, like I know if it's in that account, I'm going to spend the money. I, like, actually unfollowed, on my personal account, I unfollowed all the brands that I follow, because it would make me spend money. I'd be like, that's a nice top, that's nice, I don't even necessarily need it, I have so many clothes, it's stupid. And I went and unfollowed all of them because, out of sight, out of mind, I know if it's there, I'm going to spend it or if I have the temptation. And then having a completely separate savings account, that wasn't with the bank that I have my spending account with. So I can't even see how much is in my savings. I can't even see if like, you know, I've done a really good job and I've saved a certain amount I'm like, do you know what? I can move a little bit back over if I want to. I'm just like, it's gone, it's done. And I forget that it's there. So I don't have that little temptation to get my sticky little fingers and being like, "Ooh, The Iconic 40% off exclusive, don't mind if I do".
Emma Edwards
I personally see it and I say to people, when they are trying to start saving money or change their money behaviours, there's those things that you described those, like, external things, those barriers, those things that take away the triggers, and that kind of thing. The other side of it, I think is working out what those behaviours are, like you say you know your toxic traits. What are those toxic traits actually a symptom of? Because sometimes it is just being triggered externally by an offer. Sometimes, it's as well as, other things, you know, is it emotional spending? Are you doing that when your mental health is some kind of way? Like for me, it was so tied to negative body image, like buying stuff to feel better. And it's like, I couldn't treat the spending until I treated what it was a symptom of. And you know, that, you know, is different on a spectrum for various different people. But often what's going on in our bank accounts can actually tell us a lot about what is going on outside of with everything that isn't money. And when you treat the external and the internal, you can kind of find this new balance. And I mean, there's that old saying, If you can't manage $100, you can't manage $100,000. And so if you do change your money habits and fix that money mindset and make it more positive, when you are earning minimum wage at McDonald's, you will be in such a better place when you do get a salary job that pays you quite well. And then when you do get a pay rise and a promotion, and if you do start crushing it and you do want to climb the ladder, you will be in such a better place. Because if you cannot manage your money on minimum wage, you can't manage a better salary either. And like, I learned all my money habits paying off debt. I'm grateful I got in debt because if I wasn't in debt, I don't know when I would have learned to manage my money. Paying off my debt was the only way I learned to keep any money. It took me a while to get there. But eventually, it worked. And after that I was, I was on a roll because it was going from like, oh, okay, I'm paying $150 off debt and $150 into savings. And then it was like, when the debt was gone. All of it was into savings! I was on a roll. And I was like, this is it!
Alex Hourigan
How do you stick to it? I know it's really easy to kind of talk about this, and listen to it, and get that motivation. You do kind of get that little bit of a high of being like, Okay, I'm going to do it now. Like, I'm going to set a budget, I'm going to put it away. But how can you make sure that you stick to it? Because the amount of times that I've set a budget and you know, maybe do it for one month and then it just goes out the window? What are some things people can put in place to ensure that they stick to the finance goals that they put in place?
Emma Edwards
Totally. I mean when it is goal based there is one, like, huge thing I think to actually to connect to what it is that you're actually setting a goal for. And if you don't know what that is because loads of us don't know what we want. You know, what do you mean finance goal? I'm not saving for a house, I'm not going travelling, you know, what? If you don't know what you want to save for, just save to have options. If you've got money in the bank, you have options, whether that is to leave a relationship, to leave a job, to go travelling, to if say your friend breaks up with their partner and she goes, "Let's go to Bali", you can be like,
Alex Hourigan
Down.
Emma Edwards
Alright, sure. Or actually, one time I had a friend of mine years and years ago, her friend won a holiday to Cancun. And she was like, "Come with me". And she couldn't go because her boss wouldn't give her the time off. But she was like, "Oh, my God, I wish I had savings because then I could quit". Like, it was only a, like, a restaurant job but she was like, "I don't have any money". The holiday was free, but she was like, "If I had just, like, a grand in savings, I could quit and get another cafe job when I got back". She was like, "I can't go". And so, just save to have options. Think about what options means to you, in your lifestyle, focus on that. But in terms of sticking to the everyday habits, aside from using that, like, connection to what it is you're saving for, there's a couple of things. Firstly, keep regularly engaged with your finances. I do, almost weekly, spending reviews on my Instagram Live. And it's, not only is it fun to have a mosey at what I buy, but I kind of go through this, like, feel good review system to actually, not just look at what I'm spending, and make sure I know where it's going, but actually think about, you know, when is it a symptom of something else? What happened that week, that meant I spent all my money that week, and then that week was fine? How can I replicate the circumstances of that week more often, because that's when I do best? Thinking about, you know, if you are falling off the wagon, or whatever, a bit like when you're trying to do a fitness thing or whatever, if you're falling off the wagon, it's probably not the right system for you. If you're falling off with the budgeting, it's probably not quite right, you probably need to tweak it in some way. Or see if you can free up some money somewhere else, or give yourself more to spend, or be a bit more intentional about, you know, if you're giving yourself $100 of free spending money, maybe you need to categorise that a bit. Because what you actually, the lifestyle you want to live doesn't really fit in that. So maybe you need to be a bit more compartmentalised with that. There's another thing as well, that is sort of the antithesis to that visualisation of options, lean into your own internal defiance, and think about what your life would look like, if you don't make this change. You might be going, "Oh, this budget is not working, I can't be bothered, like, I'm just not going to do it". Imagine someone being like, "You know what? No, you can't, you're never gonna save any money. All your mates are gonna buy properties, and you're not. All you're mates are going to go on holiday and you're not. That wedding? You're not going to go, because you're not going to save the money". You'll be like, "I can!". Because imagine someone telling you, you can't. And suddenly you'll find the motivation to prove that you can. But aside from the defiance piece, just think about what, a bit like that $25 on a broader thing. Do you want to give up on this budget? And never have any savings and watch all your friends buy houses or not do X, Y and Z? Do you want to live that life if you don't change? Or do you want to actually find the strength to make a tweak to it? And if you feel like you want to fall off the wagon, just take a week off of the budget, spend what you would normally save and just, like, wipe the slate clean and then start again. It's better to do that than just to ditch the whole thing forever.
Sally McMullen
I love that. Well, thank you so much, Emma. I have learnt so much and I'm sure all of our chicks have as well. We'll make sure to pop a bunch of links to all of your socials, so everybody can jump on those lives and see what you've been spending this week.
Alex Hourigan
Like, seven Love Honey orders. I'm like, "Okay, Emma. Pop off".
Sally McMullen
At it again!
Alex Hourigan
Yeah, girl!
Emma Edwards
Thanks so much for having me. It was very fun.
Alex Hourigan
Loved it, learnt so much. I'm about to be rich!
Sally McMullen
That's a wrap for another gorgeous, fabulous episode of Two Broke Chicks. Thank you so much again to Emma Edwards for coming on the show today. If you want to check out The Broke Generation, we'll make sure to pop a bunch of links to all of our socials and site and everything in the show notes. As usual, if you want a transcript of today's episode and some other juicy links, head to finder.com.au/twobrokechicks. And you know what? We haven't plugged ourselves for a while.
Alex Hourigan
Yeah!
Sally McMullen
If you've enjoyed this episode, come give us a follow us on Spotify, Apple Podcasts. Give us a five star rating.
Alex Hourigan
Write us a review! We love to read them. It makes me feel good.
Sally McMullen
Yeah, it gives me a nice little serotonin hit and hit us up on Instagram or TikTok. If you have any ideas or guests you want us to chat to, or you just want to chat. As always, thank you to our executive producer Pariya Taherzadeh for guiding us through and also to Bamby Media for editing today's episode.
Alex Hourigan
Couldn't do it without ya, doll.
Sally McMullen
Love ya.
Alex Hourigan
Love ya.
Sally McMullen
Thank you for having us in your earholes we love to be here.
Alex Hourigan
Bye!
Sally McMullen
Bye bye now!
Transcribed by https://otter.ai

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Hosts: Sally McMullen and Alex Hourigan

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Editor: Bamby Media

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