56. Prerna Khemlani Makes Her Money Add Up

This week I speak to Prerna Khemlani, chartered accountant and advocate for women building wealth through investing.

Growing up in India and Spain, Prerna saw the her mother juggle the family finances living off a single income after her father’s untimely death.

Driven by her desire to feel financially secure, Prerna taught herself to feel more confident with money in general and investing in particular. Now she is helping others to do the same.

An episode with plenty of inspiration for the younger generation looking to better their money attitude, skills and habits. You can check out Prerna and her work at https://www.thisgirlinvests.co.uk/ and on Instagram @thisgirlinvests.

Episode Transcript

Jason Butler 0:05
Hello, and welcome to the Real Money Stories podcast. I'm Jason Butler. And I invite you to join me as I have intimate money conversations with people from all walks of life. Whether you're just starting out and your money journey, or well down the track, there's bound to be something you can learn from these stories about taking more control of your money, so you worry less and enjoy life more. Real Money Stories is sponsored by Vanguard, bringing value to 30 million investors worldwide. Visit vanguardinvestor.co.uk for more details. And remember, the value of investments can go down, as well as up and you may get back less than you invested.

Hello, Jason, thanks for joining me again. I know it's a it's been a bit of a tough week for a lot of people with the new coronavirus lockdown announced in England, knowing Wales, Northern Ireland, Scotland, they've got similar restrictive rules. So I know it's going to be tough for people for the next month sort of really being constrained in what they can do. But I just want to give you a couple of thoughts on this. Um, resilience and growing as a human being generally only happen when times are a little bit tough or particularly uncertain, or where things are in a major change cycle. And, you know, we don't generally tend to grow as individuals or find new ways of doing things or improve when things are easy, because primarily, you know, the human brain is not designed to find problems where none exists, if your bellies full, and life is good, when Why bother trying new things. So not for one minute, am I sort of downplaying the potential issues that we face ahead, and this virus is not going to go away any time soon. But I do think we, we need to look at this differently, and a mindset of looking for the opportunity, that the next lockdown, and restrictions and what we can do, enables us to achieve. So looking at our life, what we value, what's important to us, where we're spending our money, what we might do as a career, talking about the Family Resources, could we share resources, you know, what can we do to help other people. So, you know, look at this next month or so, and it may be longer than a month as to how you can sort of recalibrate your life. And it's not all about, you know, what you haven't got, it's, it's what you have gotten, that's really the subject to my latest blog. It's called work with what you have. And the difference between people who kind of become victims versus those who become victims over their life is that you've got to work with what you've got, not what you haven't got or what's wrong with the world. So just check that blog out, work with what you have. So that might just help give you that little bit of encouragement and motivation and recalibration. Yeah, a couple of book recommendations here. We've got the Morgan housel book, which I've really thoroughly enjoyed called the psychology of money. Morgan Housel is an American money finance, right a brilliant, brilliant writer, and he's younger than me. I mean, he's just amazing. The guy is a powerhouse. We'll check that out really good book, and Tim Harford's new book, which I thoroughly enjoyed, called How to make the world add up. And if you've ever read Tim Harford is another fellow Financial Times economist. He's much more prolific than me, and he's super pretty much worth writes every week for them. Great, great guy very, into the whole concept of respecting statistics and understanding statistics and what they can and they can't do and how they're used properly and how they're not use. So well worth looking at to help you make sense, particularly in these tough times with Coronavirus and economic issues, where statistics are thrown around all over the place, Tim really kind of helps you just develop that, that awareness of what you are being told and what you aren't being told.

My next FT article will be out by the time you're here. This part is all about values and principles and developing money values and principles to help you make better money decisions. So check that out on the ft.com website. Sometimes they'll let you read one free, but nevertheless, you can do a trial subscription to ft.com. And you can read all of the material from all the other things including my whole back catalogue, which has over 60 articles on there, plus tremendous depth and breadth of other writers. And you can have a trial for a month for a quid so that's well worth looking at. Just want to also give a shout out on my Instagram Live every Tuesday night at 7:30. Last week, I was talking all about when you shouldn't invest. So that was we had you know quite a few interactions there some interesting questions that was good this week, which on my YouTube channel, it's all about negotiating, understanding and knowing how to negotiate. And now I'm going to cover the basics of that, because I just think it's a subject that's not covered really in a lot of detail. And most people are frightened about negotiation, I think it's a sort of a battle. So check that out on my YouTube channel. And it's also going to be on my Instagram story. So you'll be able to see it after the event, and you can hear the events only half an hour, but it's well worth I think you've just checking that one out. And we've also started putting some of the filmed pod episodes on to my YouTube channel under the podcast, Real Money Stories playlist. So you can actually watch me and the guests discuss and talk about the pod if you've listened to it before. Couple on there, Catherine Morgan brilliant, all about the emotions of money well worth it. She's a fantastic woman, really recommend that one that I've really enjoyed doing that one. And Mr. Rob Moore, the multi millionaire who went from debt to being a multi millionaire in I think less than about 10 years, he's only about 42. Now well worth watching that one, again, as a full hour that's really worth watching. Now, just before we get into the show, I want to just share with you this one thing I want you to think about, one thing you can do is to tell someone or write to them, or text them what you like, value, or appreciate about them. Because I think we all need to be a bit kinder to each other. And most importantly, we need to be kind to ourselves, when you're nice to someone else, when you find an opportunity to help someone else. Just that cost nothing does it just to tell them in a very genuine open way what you appreciate them because that really money is about serving our needs as humans. And but even if you haven't got lots of money, or you're in difficult times, or you're not sure where the future lies, being kind and nice and gracious to other people, I think is just a simple thing that costs absolutely nothing. So let's get into the show. Let's, let's listen and talk and hear the story from Prerna Khemlani.

I am today joined by a real live wire. Let me see if I get the name right. It's Prerna Khemlani. Is that right?

Prerna Klemlani 7:13
Nailed that.

Jason Butler 7:14
Yeah, well, and you're known as this girl invests right? Is that right on Instagram?

Prerna Klemlani 7:19
Exactly.

Jason Butler 7:20
Right. Before we get into your backstory prenup? Do you want to just tell everyone kind of what you do for your day job and what you do for your non day job?

Prerna Klemlani 7:27
Absolutely Sure. So I'm a chartered accountant, I work in group furniture controlling. And I set up this gathering class as a passion project. And it's just sort of grown from there.

Jason Butler 7:41
And this is basically you trying to get people involved. It's not just women, but he's focused is aimed at women. Yeah. But he's able to invite young people involved in investing and building money.

Prerna Klemlani 7:51
Because I think the number one thing I read when I started to get into finance, and the forums was, Oh, I wish I would have started investing earlier and earlier, because, you know, time is a very big factor when it comes to investing. And I thought, you know, what, I just wish someone would have told me when I got my first job, like, Listen, save a little mess, little and that's how it will grow. And I guess that was sort of the mission. And but I noticed that a lot of people didn't really have the basics nailed in order to be able to understand investing. And so it can be really exciting. But it's also important to do it in a careful manner, and that you understand the risks that you're taking. And there's a lot out there at the moment where people are trying to say, especially in this regard, I'm mainly there, you know, FX trading crypto, and all these very exciting products. And but I just wanted to create a space that was safe, independent, and just putting out, you know, education around investing out there.

Jason Butler 8:51
Well, there's the old saying, you know, I've been around a long time, I'm 51. Right. So I've known no other life other than being in financial services. And I always say to people, if investing is exciting, you're doing it wrong, right? Yeah, it should be boring like watching paint dry. It's not sexy, doesn't sell our Instagram posts and sponsorship, but that's the way it should be. Okay, let's get back to your backstory now. Your name is interesting. So tell us about where you grew up. And what it was like growing up in your family when it comes to you know, your experiences of money and what kind of lifestyle you lead LED and what you learn.

Prerna Klemlani 9:26
Yeah, so so and my parents are Indian, and they moved to from India to Spain, and back in the in the 1980s. And for them, it was completely leaving everything they owned back in India and starting from scratch. And, and then when I was pretty young, my dad passed away. It was all down to my mom to take care of us. And so, in terms of relationship with money, I think there is There is something to say when there's a single parent having to handle everything, you know, be mom and dad. And I have to say, kudos to my mom, because she smashed that there was always, you know, Monday was really spoken about, let's put it that way, but it wasn't really spoken about. And therefore everything was slightly more quiet, but you pick up things, don't you and for being with your family, and it was there was stress, I think every single parent can can testify for that, that is not easy having to support a family with one main income. And, but there was never a lot of negativity around it. It was very peaceful, very, you know, this is what we have, so we can forward and live scared and when you live when you live in an island, you know, all you need is the beach and, and family and friends really,

Jason Butler 10:51
every day is a great day, right? Yeah,

Prerna Klemlani 10:52
yeah, basically.

Jason Butler 10:54
Was your mom a bit like, I'm thinking wish a bit like a sort of a, like the swan, gracefully going across the water, but actually paddling furiously, furiously underneath it? To keep it all going

Prerna Klemlani 11:06
accurate? absolutely accurate. Yeah. And it's like, and I guess I have that myself. And everything can get done in a day, you know, like, somehow or the other, you'll figure it out. But everything can get done. And that was definitely the definition of my mom's way of living.

Jason Butler 11:21
So what's your mom working when she was on the island? Or did she have life insurance that you could fall back on from when your father passed away? And did you have brothers and sisters or

Unknown Speaker 11:29
one?

Prerna Klemlani 11:31
Good question. So I think that's partly what drove me to enter this financial journey. And my dad actually did not have any insurance. They didn't really, I guess, didn't really understand finances that much never met didn't have it all in order. And and it was quite common in my parents generation where the mother wouldn't work. So the mums expected to be at home and dad is the breadwinner. And therefore, having a situation where mom was out the house and working was different compared in comparison to what some of my friends that live in Spain would have been exposed to. And so yeah, I think there wasn't that I think it was that additional lack of security, because there was nothing to really fall back on. And it was month by month, and I'm sure that people can, you know, can relate to that living.

Jason Butler 12:24
So your mom was living sort of paycheck to paycheck. Yeah, yeah. And did you did you did? Were you aware of that, that it was a bit tight financially. You said there was no negative messages, but were there subliminal things you were picking up?

Prerna Klemlani 12:39
Yeah, good question. Um, little things, I think, when when, for example, so that unexpected happens, you know, now now, I think emergency fund, you know, that's what I use. But when, when you're not that financially literate, you just try to scramble and find, wherever, whatever way in order to pay for some of those big, big fences that come through? And yeah, definitely, I do remember, you know, little things happening when maybe the car broke down or, and something happened that, you know, there was always stress a little bit around that those sort of situations, but it was never

active or in my face, if that makes sense.

Jason Butler 13:21
So did you say you have brothers and sisters?

Prerna Klemlani 13:26
Yes, yeah. I have one older brother.

Jason Butler 13:28
Okay. Right. So, as you were growing up, then you went to the local school? How did the situation at home, you know, develop? Did your Does your mom situation improve? Did you start earning more money to to sort of get you out of the house? I mean, what happened then, as you became late teens, late teens?

Unknown Speaker 13:47
Yeah. So

Unknown Speaker 13:48
it's

Prerna Klemlani 13:49
just I don't really remember it getting any better. There was always a very big focus on education, the power of education, and it will help create pretty normal, pretty stable, and throughout and then I think it was around, right after the global financial crisis, things started to get really bad in Spain, and people didn't really have money. And even then, I don't remember that, being that as bad. And but it was around the time that I had moved out of Spain and came to England, and having my mom alone there. And she didn't stop working. And that's when things started to get a little more tight. But then, I think as the kids started to work, and my brother started working my so working, everything's just got better and better. I think it's quite common actually, in Asian families where and parents retirement plans are their children. And I think it's about I guess, it's partly about changing that narrative. In our generation, I think where and

Jason Butler 14:53
as you say, not that reliable. Yeah.

Prerna Klemlani 14:55
Yeah. Yeah, exactly. It's not sustainable.

Jason Butler 14:57
So can I just ask, did you go university? And if so, where did you? Where did you go to uni? And how did you navigate that financially? Because that's a baptism of fire for a lot of people, isn't it?

Prerna Klemlani 15:08
Really, it really is. And it's not easy, I think in the US is probably worse in the UK, you know, the student loans, which is really handy. And, and plenty of opportunity in in London or the unions to to work. And so, I did have like a few things going on. But at that point, my brother was already working. So things were slightly easier. I think it probably was worse when my brother was going for the first time, you know, older son and everything is just slightly harder. And but for me, it wasn't that bad. And yeah, it was it was just not working. And I think when you're assuming everyone's sort of in the same place, or at least if it wasn't, I wasn't that aware of it. And but it is when you know, some some of those money differences do come into play, whether the ones I don't need to work, and then you you tend to stick to your friends that didn't work as well. And, and so yeah, it was I actually really enjoyed it. I mean, I had a fantastic job in the new union that I stuck with for three years on some such as the gym. So it was fun.

Unknown Speaker 16:10
So yeah, so

Jason Butler 16:11
you came through in relatively intact or did you have an overdrive when you finished? Or did you did you just have the tuition financed from the government?

Prerna Klemlani 16:19
Just the tuition plan has been definitely bad money habits, bad money habits in that. And when you first got your first job, you're like, Oh, my God, I have all this money, like I have all this money, I can now spend it on all these nice things i've you know, not being able to spend on when I was student, I'm gonna buy this, I'm gonna buy it that other thing?

Jason Butler 16:40
Where did that come from? I come from a modest upbringing.

Prerna Klemlani 16:43
Yeah. And I think it was being in the city, there's a lot more marketing by its consumers. Yeah, I think, for me, the switch was when I realized that that was even a thing. I think when you're not, when you live in a small island, maybe you're not exposed to, to that much targeted marketing. I think it's probably getting worse with the internet now. But it was when I started working and work from the city and that you sort of pick up these little things that are fighting drinks, or Oh, look, I like that handbag, or whatever it may be. And, and when you mentioned,

Jason Butler 17:20
you mentioned just something there. Oh, went to drinks after work. So there was pier there was the peers around you, the people who you knew, not just the marketing and the advertising.

Prerna Klemlani 17:30
Yeah, I think many things influence you, I'd say Yeah. But sometimes aren't that obvious to you? But and you're probably more easily to meet more easy influence when you're young, then when you start to realize, Wait, hang on, you know, what is and isn't important to me? And am I you know, I go to work eight hours a day or longer? And am I then using that money for something that brings me joy or value in my life. And I think it's been a journey since since that I'll buy everything like, and to where I am today. And and I think everyone sort of goes through that phase, when they first get

Jason Butler 18:09
started. And when you when you uni you were working? When you started sort of realize you could buy things was that when you were still working as a student? And you were buying things? Or was that when you left and you finish your degree and started at work? when when when you were in that initial? Let's have it, you know, because I'm worth it.

Prerna Klemlani 18:27
Exactly. Exactly that exactly that I think it when you're in university, you're not that exposed to it as much maybe because you're all just quite happy to sit in, you know, in a room and have some drinks or have a house party, everything's very relaxed. And, and you know, everyone's like, but yeah, I'm broke, you know, I can't do that, or whatever. It's like the narrative. But as we then move and get your first job, the system, you're like, exposed to a completely different narrative, how it's very easy. It's very easy to be open. And

Jason Butler 19:01
by that. And of course, when you're young, the other is not just in marketing and your peers and being in a big city. That's very templates for the temptations. When you're young, you're also looking to do the most important thing which we all do as humans and that's form social connections, isn't it? Yeah. And and friendships and have fun, right? Because that's about how you find out about that. So it's not that this is a bad thing. This happens to everyone. The question is whether it completely derails you and puts you in a hole like you did me when I was in my 20s. Right. There we go. They're still paying for it. I'm 51 I still feel embarrassed. But yeah, so when was it a gradual process of realizing that you weren't using money in a way that was really conducive to happiness? Really, or? Or was it a big epiphany, a wake up call? Did you suddenly work out? You know, in your life, you know, it was a big, you know, a big a big moment.

Prerna Klemlani 19:53
Yeah, great question. I think it was slow and fast. To save time. I'll explain what I mean by So in that year and you I got, you know, a promotion and my salary increase, but still, you're in your, I wasn't feeling that at the end of the month and I was like, God, you know, the stuff he wore, but it can be good. So there must be something wrong with the way of approaching that I don't feel that more money is coming. And, but then also, it was situational. So I'm almost dying to get to an age where, and I was more financially literate. So I was like, hang on, you know, my own, not really thought about retirement or planning or any of that. And, and I sat down one day, and I was like, I really need to start to do some of this. And I think my brother was thinking about this sort of things as well. And, and that's sad to think about it. That's what I thought about many as more of a resource and lots of image comes in, you know, to go, and then you wait for the next month until you get paid again. And so you're having to help my mum plan through that journey has definitely made me more aware about the way I want to handle my money and the way I want to be financially.

Jason Butler 21:07
So if I can just be clear on seeing your mother's predicament if I can use that, and I know it wasn't terrible, but it wasn't great. That was a wake up call of how you could end up if you carried on the same path. Right?

Unknown Speaker 21:19
Exactly. Forward. Yeah.

Prerna Klemlani 21:22
Yeah. Any anything that you look at your parents, and when you're young, you think they're superhuman, and they're, you know, they can do no wrong. And then you start to realize, wait, hold on the death human. And then you start to think about, okay, what can I do? What lessons can I take away from, from my parents that I can then, you know, improve my own life. And not she never, she never said anything? Plus, like, she's, she's not like, you should do this or that. And it's very much coming from, from my perspective, and almost like, owning my journey and saying, well, this is where I am right now, how would I like the future to be bigger, better than where I am today.

Jason Butler 22:01
So working with your mom, and her situation, realizing that you weren't actually getting ahead, even though your income was going up. So that's lifestyle creep, you are being affected by so lifestyle creep is the money going out tends to always rise in line with the income coming in. And one little tip there for anyone listening is when you stop being a student, and you start going into your first job, continue living like a student for a little bit of time. Right? For as long as you can, because it will get you to get money ahead. So okay, so, so you were working with your mom, you realize that this wasn't the way forward? What did you then do?

Prerna Klemlani 22:41
I went on a journey of reading everything listening to everything to do with money. And I think it was because I want to talk to a contract this way. And I was like, hang on, you know, I understand how Corporation like, I understand how, and, you know, finance should work. But personal finance, the two very different things. So as much as you may be, you know, a banker working in, you know, a very big bank, it doesn't mean that you easily have a handle on your personal finances, because the financial products are available to individuals are very different to the ones available to to corporations. And it was, it was a learning curve. It was okay, well, how I learned because it didn't make it easy that I was a chartered accountant, to in order for me to then start that journey and make it smoother. But thinking about all the, you know, my girlfriend's, for example, who don't do finance related jobs, who maybe do something more creative, or who are doctors, how are they going to start this journey and and pick up the jargon and that is out there. And so you were numerous? You knew you weren't frightened by numbers.

Jason Butler 23:46
Yeah, you had what we all have, right? You're driven by you're driven by emotion, not logic, right? When it comes to money. And yeah, did you realize that?

Prerna Klemlani 23:55
Yeah, I did, I did. And it was when I am really educating myself on it and sort of started to really reflect as I said earlier around, you know, am I spending my money where where I want to? And is it adding value to my life? Is it going to make my future bigger and better as I want it to be? That I really stopped and paused and said, Okay, I got it. I gotta clear this. Somehow this mess and, and everyone says, you know, sandbar Oh, that's the answer. But it's just so much more complicated than that. Because setting the budget is not just you know, it, it leads to, you know, perfectionist thinking of like, wouldn't it be ideal if I saved 50% of my income? Yes, it worked. But is it you know, possible does it fit in, in line, it's a gradual process. I think it was constantly tweaking month by month, my budget in order so I could change some of those habits, but it wasn't like restricting myself, because I think it's a bit like when you go on a diet, or financial diet, right, it won't last if you try to go to an extreme and try and save all your income. Be really frugal or not meet your friends. It has to be something that that works for you. And so yeah, it was it was a journey of trying to set that up in a way that worked for me, and initially was very manual. I was very like involved. But then I realized that also, it wasn't sustainable. At least that was my preference. And then I sort of figured out a way to automate my budget where my goals are still being met. I'm not having to be so on top of it, and I've sort of set you know, some sort of compass internally as to when I can feel like, Hey, I'm slightly going overboard this month, so that I need to

Jason Butler 25:32
rein it in or whatever is needed. And would you say that trying to sort of decide where you were going to spend your money where it was going where you wanted to go? Whatever you want to call it a budget, whatever? Would you say that that was the the first key step? Or was it one of a number of steps you did at the same time? What was the first thing you did?

Prerna Klemlani 25:50
It was, as, as I started to think about creating a budget, I started to think about, where, where's my money going? If it's not going to have what I want it to go, where is it going? Is it you know, drinks? Is it restaurants? Is it you know, clothes? Like, where is it going? And I think sitting down with myself and and looking at that it's not always fun, but it's the less glamorous side. But literally sitting down with your bank statements and saying, right, where has my money gone last couple of months? And, you know, where do I want it to go and sort of trying to find a way where I could bridge that gap? And it's never perfect? I don't think anyone has the perfect budget. But every month that's closer to two that

Jason Butler 26:32
I've got, okay, fine. Move on. I try to unpack that a little bit. Because Because now I've got you on the hook. I'm very mindful that you're the nearest I've got to someone who's is not that far away that you had this epiphany, right? What was harder, facing up to where you were spending all this money? and feeling a little bit uncomfortable, a bit embarrassed, perhaps a little bit of guilt, I suppose even possibly a little bit of shame or whatever, you know, all these negative emotions, the reality of the truth, or deciding where to direct in the future? What was the hardest bit?

Prerna Klemlani 27:06
Good question, I think I'd say, Yeah, I think that's a realizing why I was spending some money, right, because it's fun to to allocate your capital and saying, Oh, we will try that. We will try that, that I think that's fun. And it's probably the more exciting side of the journey. And but yeah, having having to face some of those temptations and realizing that, you know, having thousands of handbags wasn't gonna make, you know, it was gonna remember that 1020 years from now, and or having, you know, brunch every weekend or every day or whatever you do, having meals outside all the time even that's not going to sustain that happened is, I think it was Yeah, it was sitting down and really thinking, why was I doing certain things and, and, and as I said earlier, is it peer pressure is it because in a generation where we are faced with, you know, constant connection with our peers, and what they are doing and how amazing their lives are through Instagram, which is my main forum? And are we forgetting that life is not always that glamorous? And everyone's just putting out their best side and everyone's just, you know, skin?

Jason Butler 28:12
When it's not, you know, what looks at the top and the bottom is constantly this, you know, and they're always going on a call to holiday. They've got a bit of friends. I've got a tan, they've got this they've got that but actually this skin that's you can't see that, can you you can't see the credit card, the overdraft, the monthly payments. The card, we swallow, no cash coming out. contactless not being accepted. They don't no one sees that. Exactly. Yeah. It's interesting. You know, I'm passionately anti debt, you know, I mean, with a vengeance. I don't even own a credit card now. Okay. Not because I can't be trusted with one. But just because I have to practice what I preach. So I have no debt at all. And my, my daughter, my oldest daughter says, Ted, why would I want that? Why would I want that in my life? And it's an interesting way, because obviously, it's been around me a long time. And because why would anyone Why would anyone willingly invite the devil in? But we don't realize because he's been normalized, right? So there's no shame there. But you realize that so take us forward on the journey then as you move forward. So as you started getting pay rises, you decided you paced up to reality, you started to sort of set some parameters. What was your journey moving forward to graduate? Was it small steps or was there real big sort of, you know, accelerations and then plateau and then how did it work? How did you develop? Yeah.

Prerna Klemlani 29:29
You're making me think I actually haven't stopped and reflected actually since then. But certainly, I think the hardest and probably the most time consuming bit was reining in those expenses and really, you know, created you know, living within my means and not I never got into, you know, bad bad debt, but at least now, there's like, you know, there's something left over like, I go to work and I'm like, you know, I know I'm working for because this little bit left over is going to, you know, my future house, whatever it may be, whatever goal you have, once that was Probably the hardest piece of the puzzle, you know, it's almost like the first step, anything is always the hardest. And

Jason Butler 30:06
when you're learning a new skill burner, you're learning a new skill and a new skill takes time to learn. And just because you don't get it right, first of all, doesn't mean you're a failure. It means you've perhaps found ways not work. It doesn't work for you.

Prerna Klemlani 30:17
Exactly, exactly. And it's about being patient and realize it that there is money is emotional. I think. Not a lot of people say this. But yes, money is very emotionally by our lives, our goals, our dreams, it's not just a piece of

Jason Butler 30:29
tissue. Yeah,

Prerna Klemlani 30:32
yeah. So it is going to be a process to get it under control. And one once you do have that control, if the feeling is priceless, like versus not being in control,

Unknown Speaker 30:44
so Tony about

Jason Butler 30:46
Okay, so tell me, tell us now share with the listeners, what the feeling is now versus what it was then? And what's that benefit to you? I know, it sounds a bit obvious. But I really want to express you know, bodies that feeling, you know, what's the value of that feeling versus not having

Prerna Klemlani 31:03
it, it goes, basically living your life in a way that lives to your values is, is amazing, because you know that what you were doing when it on an hourly daily basis, it is bringing you what you want out of your life, versus letting the world dictate what you do with your time and your energy and your money is just not emotionally sustainable. Because at certain point, you're going to reach a moment where you realize that no amount of showing the world what you have is going to bring any headlines whatsoever. And I think you sit you'll save by taking the first step and starting this journey, you will save yourself a lot of emotional and financial stress. And I think it's going from a position of stress. And am I going to make ends meet, you know, to add to just peace, frankly, if peace and happiness and knowing that, you know, there is more than just by all the things and experiences in the world.

Jason Butler 32:09
There's I don't know if you heard the story of Rianna the singer, right? she sued her accountant of the time, because she ended up with the house. That was she bought $9 million. And it was all needed work. And she had no she was in a rotten pickle. And the court case, he said, Did Rianna really need me to tell her that? That which I did. He said that when you have money and you use the money to buy stuff, you no longer have the money, you only have the stuff. He said Why couldn't she realize that? That was his defense? Right? Basically, she was in denial. So that's really, really saying is that you've got the peace, you've got the joy and the happiness that comes from knowing you can do anything. You've got money behind you. And and to what extent Have you decluttered your life or reduced the consumerism and the materialism and felt better about it or not? Or Or perhaps, you know, no, we're not saying that's a bad thing. I just wondering whether you've gone on a journey about what the role of stuff is in your life?

Prerna Klemlani 33:05
Yeah. Yeah, great question. I think it's all interlinked. And I definitely love the idea of minimalism, cuz I do believe, you know, having so many things around, you just clutters your your brain and, you know, spaces necessary on great things. And if you have to let something go for something greater to come in. And that's

Jason Butler 33:26
abundance thinking, right? Okay, you've got to be free for it. Money wants to hang around you if you're not seeking it.

Prerna Klemlani 33:31
Yeah, exactly. And so yeah, I think multiple things happen and maybe started with, you know, really the money. But instead, you know, it's played out in so many different areas of my life and my relationships. And my, you know, my room, my space, my family, I just think we forget how interlinked our relationship with money is with the other aspects of our life. And so once you nail down, and you really sit down, reflect and nail, the financial side of things, I think everything else sort of falls into place. When is that experience?

Jason Butler 34:06
And obviously, everyone's got a different perspective. Everyone's got different values, and what matters to someone else will be different from what they hear. And then we'll have different experiences. But just thought moving forward now and thinking about the whole idea of investing, building wealth, you know, to what extent do you also focus on improving your human capital? In other words, your earning capability? To what extent is that part of your investment horizon?

Prerna Klemlani 34:32
Yeah, great question. So I think once you've nailed, you know, your budget and and everything, I think the next step is obviously to think, well, it's going to be easier to earn 20 pounds than to save 20 pounds, right? So I'm at that phase now where I've sort of nailed with my budget, you know, I'm happy where his knee is meeting my you know, next five to 1020 years goals. And I'm starting to think well hang on. There's a lot of room I'm relying a lot on my job being there tomorrow. And, and so I've started to get a lot, a lot more into the idea of multiple streams of income. And I'm starting to think, you know, the money is there in the world. And so what do I have? What skill sets do I have? In which I can do something and help someone but at the same time, and make that a source of income for myself?

Jason Butler 35:23
value creating value? Yeah,

Prerna Klemlani 35:26
exactly. Exactly. And, and, you know, whether, and everyone chooses their own thing, you know, whether you're very artistic, and therefore, you're able to create something and sell it on Etsy. That is not my strong point. But say, I speak Spanish fluently. So I sometimes do to Spanish. And I really enjoy it because it keeps me connected to, to Spain a little bit. And so yeah, I think that's definitely the next step. Once you've nailed, you know, the emotional side of where the money's going the budget, thinking about what other skills do you have? And what else can you do to bring more more income into your life?

Jason Butler 36:02
That's good point. So now the but now the spending is serving you and you're spending less than you earn and the difference you're saving, investing whatever, increase your ability to earn income, either by increasing your skills or leveraging something you already do, or thinking laterally or learning something else, or being the best you can in what you you're doing. I mean, there's always gonna be a job for a Chartered Accountants just depends on, you know, the value of it. Yeah. So another thing is, I've never seen you in anything where you are always smiling. Alright. So would you say that being in control of your finances, when I know you're not the finished article, we know is a long way to go. But would you say that that has brought a lightness to you, because you're seeing very light of disposition? If I can say that. And I'm not saying it's just because you're a guest today, but you always appear to be very like, like, you can't, can't believe you're there. And you're really excited. And I've you put in a good friend zone? Are you genuinely are a piece of yourself and new kind of sunny disposition? I mean, is that is that always been the case was that as that come out more as you become more confident and capable, with your money, your role your your direction of your life?

Prerna Klemlani 37:03
Yeah, I think it's, I think there's two answers to that. So first, I think it's definitely come from my mom, my mom's like, helpless, optimist. So there is always a bright side. And I think that's definitely stuck, stuck with me. And, and then again, there's definitely an element of having, you know, having had that time to think about where my money is going. And I do feel very at peace, I think there is an element of Financial Peace, once you have, you know, at least started the journey, or as you said, I'm going through the journey, but I'm enjoying the journey of not just only focusing on the end goal, and it's, you know, it's about getting to the goal, but also enjoy the journey as you go through it.

Jason Butler 37:48
And what, what would you be your sort of top tips that you would give young people starting out now say people are just about to leave uni just starting in the workplace or, or relatively early in their career? What's your sort of, you know, your, your standout tips or insights that you would share with them?

Prerna Klemlani 38:06
No, what I say is, no one has a clue. So don't just sit there thinking, Oh, my God, I am so stupid. How do I not know what our credit card is? Or how to use one? Or how do I not know what a credit score is? Or what's the best savings account? Like no one, no one really, like knows when they start out? So, you know, unless your parents have told you something, or was just as lost as each other. So, you know, don't feel ashamed to ask the question, if you have a question about money. Yes, some people may feel that money is taboo, but the information is out there, you know, thank God for the internet, everything is easily accessible. So first thing is acknowledge that, you know, you want to learn more, if that's where you're at. And if you do take initiative, as tons of resources online for you to start that journey. And, and it is a journey, it's not that one day, you know, you're gonna have your first paycheck, and all of a sudden, you're going to be a trading and a master investor. It is a journey. So to take that into account, be patient, and be Yeah, I think we've we've covered it already. But definitely start to think about where your money is going, and why it's going there. And whether that is where you want it to go. And maybe that's requires you sitting down and thinking about where you are, what you're where you want to go in your direction. And,

Unknown Speaker 39:36
and then

Prerna Klemlani 39:39
just start to think about educating yourself and investing. I know you know, savings is very important, and we haven't really touched it yet. But that's really something I feel very passionately about. Because there is power in starting early and investing is not something that you need to do. When you have you know, more money, you're always gonna think when I have more money I will dot dot dot where you fill it in. right but with investing but the sooner you start the better so these days you can start from as little as a pound as 25 pounds. So just I think in conclusion, just start just start the journey to start learning never

Jason Butler 40:18
the right time. Yeah.

Unknown Speaker 40:20
You're never gonna feel 100% so

Jason Butler 40:22
now I know you've got lots of resources and stuff you share so with people want to find out more about you and the resources and your insights that you're on this mission to help well you know, be better with money. What where can they find out more about you and what you're doing?

Prerna Klemlani 40:36
Absolutely, they can either find me on Instagram this guy invest or alternatively go to www.thisgirlinvests.co.uk.

Jason Butler 40:45
couldn't be any easier. But Prerna, thank you very much indeed, for your time. You've been really thank you. By the way, I know you're busy girl, you juggle lots of things. It's been great having you on the show. And I'd love your perspective. And I'm hoping that we'll have you back on perhaps sometime next year. And we'll share some more perspectives. Because I know you work with a lot of different people and you you do Instagram lives regularly. And I know they're great fun. And you I've watched a couple of things you've done and it just seems like a great hope really, I mean, you sort of seem to make the whole investing journey sight sound like fun. So, which is great fun, but without the speculation, which is good. So thank you for your time, and very best of luck with the rest of your journey. Thank you for your time.

Prerna Klemlani 41:22
Thank you. Thank you for having me.

Jason Butler 41:28
Thanks for listening to Real Money Stories with me, Jason Butler. If you like what you hear, please do tell your friends. And more importantly, please rate us on your preferred podcast app, because it really does help us get the message out there. So until next time, good luck with your money journey. Real Money Stories is sponsored by Vanguard bringing value to 30 million investors worldwide. Visit vanguardinvestor.co.uk for more details. The value of investments can go down as well as up and you may get back less than you invested.

Transcribed by https://otter.ai