Hey, it's Kia, and welcome to the first episode of A Little Bit Richer. If you're here, you probably know the score. For the next few months, I'm going to be bringing you bite- sized financial tips. You know, the stuff that we never got taught at school. What comes out of my salary? How can I get my own place, or a bigger one? What do I need a bank account for? Okay, the last one is a bad joke, but you get
the picture. We're all in this together. It's you, me, and a different guest each and every episode. Up first, I want to kick things off with Laura Ann Moore. Laura's a money and mindset coach. She's all about demystifying personal finance in a simple and judgment- free way. She also has our own podcast. My kind of woman. We're going to be chatting about why all this stuff is so important.
Okay, let's get into it. So, Laura, it's really tough out there at the moment. Everything's going up in price and salaries just aren't keeping up. Everyone's stretched and it is stressful. Do you have any suggestions on how people can cope with this pressure?
Yeah, I think first of all, I would say it's really important to identify where the stress is coming from. I think it's so easy to go into this panic of, " I feel overwhelmed, I feel anxious, I feel stressed," but sometimes we don't know where that feeling is coming from.
So, the first thing I would say is really try to understand and identify it first, because it might be a practical thing, but it might also be an emotional thing. So, on a practical basis, I would say make a plan, make a tangible plan where you can say, " What is my next step?" Because it's that classic thing, isn't it? Where you go, " Oh my God, I need
to kind of do everything in one go." And that's the overwhelming part.
Yes, it's true. I do that all the time. All the time.
Yeah, and it's so easy to do. So, actually going, " Where is my money at right now? What is one small step that I can take today with this week that I know that's going to alleviate a little bit of pressure?" It could literally be as simple as checking my bank account, making a better budget, paying someone that
I owe, something little like that. And then on an emotional level, I would say really to ask yourself what stories you're telling yourself.
It's a big one.
It's a big one, because that's what we do. Our brains will tell ourselves stories about a situation. So, we might read something in the news that makes us scared, makes us feel overwhelmed, and then we tell ourselves we need to be worried, we're in a bad place, but actually, it's more your relationship with money or your money
mindset that's causing you to feel that anxiety. So yeah, on an emotional level, really starting to just see how you're talking to yourself, see things that keep coming up, and identifying whether they're actually true or whether your brain is telling you a lie.
I think that's a good one, Laura. I think sometimes we spin these narratives, like you said, that just aren't true. You can sit there and say, " I'm bad with money," and you're going to start believing that because you've said it. And I think it is just being aware and conscious of what we're telling ourselves and maybe what impact that has on how we view things, like you said.
So, there's been some Legal &; General research done recently that calls your 20s the lost decade, and that's because it's a key time to build money for the longer term, yet it's often not made use of. So, what are your top recommendations, Laura, for someone trying to make the most out of their money?
I think when it comes to money, you want to think about the step before and really asking yourself, " Why do I want money? What role do I want money to play in my life?" So, first off, creating some goals. Financial goals, like, " I want to save X amount, I want to invest X amount," but also some life goals. What is the reason of you working and making
money? So that you're not just chasing the money for money's sake, you're going, " I'm going to get the money so that I can travel, so that I can build a business, so that I can buy a farm and raise some ducks." I don't know.
Whatever floats your boat.
Yeah, whatever floats your boat, and really starting to connect with what your why is. So, creating these goals. Also, understanding what your values are. For me, three of my values are travel, education, and health. So, that really helps me when it comes to spending, saving and investing, because I can ask myself is the way that I'm managing and growing my money right now in alignment with my
goals and with my values? And I think they're, on an emotional level, a really great way to start to make the most out of your money like the step before. Because I think people jump into trying to make the most of their money on a practical basis, and then you're like, " Why am I actually doing this?" and you don't have the motivation. So, I think understanding the motivation is key first.
That is, like you said, you hit the nail on the head, that is a key one to keep you going. I think quite often you'll hear people say that they want to save, and there's no real target or reason. But when you have that reason, like you said, it could be to have your duck farm, it could be to travel and see the world, whatever that reason
is, it helps you. So when things maybe aren't as fun or things just feel a little bit hard, you can always circle back to that and say, " Right, I know why I'm here. I know why I'm doing this for my finances, or I know why I'm working." Like you said, to keep you on track, because that was often the hard bit.
Yeah. Like I recently released an episode on my podcast about achieving my big happy goal, because I've been running my business and I've been keeping the business afloat, but I'm like, " What do I actually want this money for?" And then when I tapped in, connected with myself, I
was like, " I do really want to travel more." So, now that's kind of like my north star, and it might be for the next five years maybe, and it's given me the motivation to rejig the way that I'm spending and saving. And like you say, when times get hard and maybe you do have to cut back for a short period of time or whatever that looks like,
you actually know why you're doing it. So, it feels like it's coming from a place of your motivation is towards pleasure as opposed to away from pain.
Yes. I love that, I love that. Laura, we're coming onto a big topic now always on people's minds, property. So, it feels like that everyone is currently in a race to buy their first home, especially when you're on social media. That's all we're kind of seeing right now, and it is so easy to compare yourself to everyone else's
journey. So, do you have any advice for our listeners who are wondering whether or not they should be saving for a deposit right now?
I think the house deposit one is a really interesting topic, because there's so many stats out there that shows people or house prices versus wages now, there's such a bigger gap between it or a disparity between it versus 20, 30, 40 years ago. Our parents and our grandparents, it was so easy for them to say, " I need financial security for the future. I'll buy a house." And it was
so much more accessible. Whereas now, for young people, I think in general it's like the go- to, especially in the UK, is, " I should buy a house." So, what's happening is we have this generation of young people wanting to buy a house but not really knowing why or if that's something that they want. So, my first thing is always really understand what your why is. Do you
really want to buy a house? What is your motivation there? Is it because all you've ever dreamed of is having a beautiful home that you can make your own, you can raise a family in, or are you just doing it because society tells you to do it, your parents are telling you to do, it's what your friends are doing? So, asking yourself if it's actually what you want first.
Yes.
Do you know what I mean?
That's a big one, that's a big one.
Yeah.
I think it's a massive financial undertaking, and I don't think that should be minimized. I'm going to touch on property more in this podcast, but it's such a big thing to purchase. It's probably likely to be the biggest thing you'll purchase in your life, that you need to understand, like you said, why are you doing it? Are you doing it because you want a property or because everyone
else is doing it? And I think once you understand that, then you can decide, is it for me, should I do it? Like you said.
Yeah, exactly. And I think, so when you ask yourself, " Why is it I'm asking myself should I be saving for a house deposit?" I always think when the word should is in there, you've got to question what's going
on. So, if that is how you feel, if you say, " The reason why I want to buy a house is financial security," maybe just ask yourself are there other more accessible ways that I can look to build wealth for the future that allow me to create that financial security and that wealth for the future that don't require me to save 30, 40, 50 grand for a house that maybe is going to take me however long to save, giving this
anxiety around doing that? So, when you understand your why, that's definitely kind of key. Then I would also say it's okay to save for a house deposit and then you change your mind. Right?
Yes, that's a big one as well. Yes.
Because goals can change. When I was 19, I saved 15 grand to go to drama school, and then at the very last minute, two weeks before I was due to start, I ended up going traveling, so that I had that money there saved, but the purpose of it completely changed. So, if you right now can't decide, you could go, " Okay, well, maybe I'll put a bit away.
I'll start building that pot up." We're always going to need money for something, whatever that thing is, and if your life changes, your goals change, at least you have a nest egg that could be then maybe put into a lump sum for investing, or maybe you do something that's investing in yourself like travel, or whatever that looks like. So, it's like don't be afraid of putting money away for a goal that might change.
Yes.
And then the final one I think is speak to your friends or family that are homeowners, or people that have gone through the house buying process within the last few years.
Yes. They will definitely give you the truths and the realities of that journey, and I think sometimes you need to hear that and say, "Is this something I want to undertake myself, or can I give it a pass for the minute?"
Yeah. A lot of people that I've spoken to always say there are a lot of hidden costs. I haven't gone through the process myself. It's just from people that I've chatted with. And that's not to say, not everybody regrets it. Some people will say, " There's loads of hidden costs, but I wouldn't change it for the world," or, " There's loads of hidden costs, I wish I didn't do it."
So, I think just chatting with people in your community, and if you don't have any friends or if you're the first one in your group that are maybe planning to buy a house, get online and have a look, socials, different pages, different forums, and try and find people in that community that can share that knowledge.
I love that. Get informed, get informed. That can definitely help you. Right. So, I've got another Legal &; General factoid for you. They're doing a lot of research into this thing called the Bank of Family, and it's the idea that if you don't have relatives helping you to get on a property ladder, it's very hard to achieve. Laura, does that reflect what you're currently seeing at the moment?
A hundred percent. I think in my community of people who I chat with in the DMs, different clients and stuff like that, or people that I meet at events, there is definitely a large portion of people that I know have got on the property ladder because their parents have been able to pass down money in whatever form. But there's also a lot of people really aware that
that is a privilege. Like people being like, " Oh, my mom and dad have helped me out here, but I'm really grateful for it." And I always say to them, don't feel guilty for it. If you are in that lucky position, absolutely grab it with both hands and go for
it. But if you are someone who isn't in that position, that's like me, my parents couldn't pass down any money for a house, that's also okay, and that's where it's worth looking at other ways that you can start to build wealth. But yeah, I've definitely had a lot of conversations with people who say, " Yeah, probably a large portion of this money has come from not me."
Yes, yes, it's true. And I think it is, like you said, it's acknowledging that, that if you have that help, it does make the journey a lot easier, and if you don't, it is going to be a lot harder. But I think once you understand that and you decide on that,
that's a good process for you. Laura, we're getting into an exciting bit because I'm going to ask this question every single time, and you have the honor of being the first person to give your answer.
Woo- hoo.
So, Laura, what are your top three tips to help our listeners get a little bit richer?
So, to get a little bit richer, tip number one is to improve your money mindset, your relationship with money. And the great thing about that is it's free, because you can just start by acknowledging, " How do I feel about money? How would I like to feel about money?" and start to change your language around it. So, that's tip number one. Tip number two is around money management
and really getting to know your numbers. Really having a non- judgmental, unbiased approach towards your money and saying, " What's coming in, what's going out?" Because that's just data that can help you then make decisions. And then the third one is about, whilst it's important to enjoy your money in the now, starting now to invest and prepare for the future is going to make you a little bit richer.
So, they're my top three tips.
Laura, thank you so much for being the first guest on A Little Bit Richer. You've shared so many gems that are going to be so impactful to our audience. So, thank you so much.
Thank you for having me.
Laura was a great first guest, but there's lots more to come, so be sure to follow this podcast, tell all of your mates. I don't want to leave anyone behind here. Next episode, I'm going to be taking your payslip apart and making it all make sense. See you then.