Jenny Brown

Welcome to the Financial Secrets Revealed podcast episode where Amanda Cassar introduces multi award winning Financial Adviser, Jenny Brown; whom I originally met via Twitter.

Jenny lives with her partner and three dogs on the Mornington Peninsular in southern Victoria.  She is the CEO & Founder of JBS Financial Strategists, a public speaker and currently acts at the MDRT (Million Dollar Round Table) Oceania Chair.

Jenny grew up to older parents on apple orchards and had to give away a promising marketing career when Australia had ‘the recession we had to have.’

Jenny talks about the importance of mentors in her life and the top tip she likes to share with her financial planning clients.

“Just start.  There’s never going to be a perfect time, but get started.” – Jenny Brown.

Links
JBS Financial Strategists | Create | Protect | Enjoy (Company Website)

 Jenny Brown | LinkedIn (LinkedIn profile)

Join with Jen | JBS Financial Strategists  ‘Join with Jen’ Videos

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Financial Secrets Revealed, Collective Wisdom from Business Gurus, Financial Geniuses and Everyday Heroes by Amanda Cassar | 9781925648546 | Booktopia

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Websites: 

• https://amandacassar.com.au/ 
• https://www.wealthplanningpartners.com.au/ (company website)
• https://trustedagedcare.com.au/ (company website)

Or you can find Jenny Brown on Twitter at @ JBSFinancialJB

Transcript

Intro: 0:06

Hi, I am Amanda Cassar and welcome to the Financial Secrets Revealed Podcast where I have collected the wisdom from some amazing people around the world to understand better their money story. I have financial advisors, multimillion dollar corporate executives and those surviving on Centrelink. Even running global charities. I hope you enjoy listening to the episodes as I speak with these incredible people about their stories.

Amanda: 0:44

Hi, it's Amanda Cassar from Wealth Planning and I am with the fabulous Jenny brown from JBS Strategists, based in lockdown Melbourne at the moment. And we're here to talk a little bit about Financial Secrets Revealed because Jenny did reveal some fabulous secrets to me in the book when I was lucky enough to write that and interview her. So how are you going in lockdown? Jenny?

Jenny: 1:08

Oh, look, it's just uh.

Amanda: 1:12

Tough? You can't even find the word.

Jenny: 1:16

It's sort of like Groundhog Day, it's just like every day is the same. It's just slightly different. But I think

Amanda: 1:23

So you're out and walking the dogs. And that's we're getting there. about it? Yeah, look very, very fortunate to live in glorious Mount Martha. So since I was interviewed, and in the book, we've actually moved down to the Mornington Peninsula permanently. So I was, if I'd had the foresight, timing couldn't have been better. So three and a half years ago, moved down here. We've got magnificent views and yeah, at least I'm not looking at four walls. Yeah and two new puppies to add to the collection of keeping you very busy getting them walked

Jenny: 1:55

Two new puppies who are now, yeah, one year old would you believe? Yep, I would, because I was there when you got them a year ago. So when I was still allowed to visit back in the day. So hopefully, by the time this goes live, you will be out of lockdown and able to at least get coffee and go to a restaurant and live life again, which would be fabulous. So, That would be good.

Amanda: 2:17

It was on Boxing Day last year that I went to Melbourne so and haven't been seen. So I need my fix.

Jenny: 2:24

We'd love to have you back down again but you probably won't be able to get back up.

Amanda: 2:30

Can I quarantine in my own house. That's the question. Now I loved one of the quotes that happened right at the start of the book, you said just start, there's never going to be a perfect time but get started. So to get started between us. You've been an advisor for many years, can you tell me please how you ended up falling into financial planning?

Jenny: 2:52

And that's probably about it. I do fall into financial planning. So back in the recession, we had to have a poor painting. So would you believe it? Now we're in the middle of another recession. I was made redundant from advertising. And so I couldn't get a job because No, none of the advertising agencies were putting anyone on. And everyone was saying, Well, what are we actually going to cut back. So I answered an ad. And the ad was, think and grow rich, if you want to want to want to earn in excess of X, call this person. And I read Napoleon Hill's book Think & Grow Rich. And I thought, yeah, I can do that. So I answered an ad. And it was to work in the insurance industry. So looking after clients for life insurance, income protection, and trauma insurance. So I basically fell into it through that. And then from there, then started, I guess, you know, joining a study and networking and found out more about financial planning, and then moved to them be licensed through a fabulous group of people who taught me really the fundamentals and foundations around financial planning, and tax and structures and all that

Amanda: 4:06

I think I remember about 25 years ago, I was working as a sort of stuff. secretary for a life insurance one day and it seemed almost overnight, we became personal assistance to financial planners, and I'm not quite sure how it happened. But we started that progression that we're still on the pathway now from industry to profession. And we're so much closer now with what's the changes in Australia. So it's certainly been a long journey.

Jenny: 4:31

Absolutely.

Amanda: 4:33

Now, can you tell us a little bit about your history? My purpose when I first wrote the book was to find out what influence, I suppose, that people's families, especially their parents had on them when it came to money. If there were actual stories that you were told by your parents or were they just those lessons that you picked up around the track. So what's a little bit about your history and how money, what meant to you from very little?

Jenny: 4:59

Yeah, it's interest, I mean, we were growing up, I've got a brother and we grew up on on an orchard, which has now developed and house, one house on house. But back then it was three and a half acres. Dad had the view that he wanted to live in sort of a rural-ish sort of area. And one of his favorite sayings was money doesn't grow on apple trees. And we happen to be living on an apple and pear orchard so it was very apt. And I think that history from there really came about, he grew up in Newport in the depression. He fought in, in World War Two, he basically joined up as soon as he could. And when he came out of the war, he looked after his mother. His father unfortunately passed away, he looked after his mother and his sisters. And so it was very hard work for him at the time. And really, you had to look up, you had to count every penny. And so that was really instilled in us as kids in, you know, you just can't expect to to just be given money, you had to really earn it. And delayed gratification was was a big teaching of his.

Amanda: 6:12

So if you wanted a new bike, you couldn't just race it and get one I'm guessing.

Jenny: 6:16

Correct? No. So the idea was, we did chores around the house, because we lived a fair distance away from anywhere else. So whether it was washing the windows, emptying the dishwasher, preparing meals, washing the car, whatever it happened to be, and we had points and such. And those points, then converted to dollars. And if we wanted a new bike, then we had to save for at least 50% of that and the other 50% was negotiated generally speaking, as a birthday or Christmas present, depending on what time of the year.

Amanda: 6:48

Wow.

Jenny: 6:48

So we had we had to work for it and earn it. And as a result, I think I'm one of these hoarder people that doesn't throw away anything because I really value what we've got.

Amanda: 7:00

That's a really interesting point you make between delayed gratification and valuing things. Do you think the society we're in today still, fundamentally has that or in a massive change and living in a world of instant gratification now.

Jenny: 7:14

I think we're in an instant world of gratification. Having said that, I think that COVID has reset a lot of people and not being able to spend time with our family and our friends and get out and in you know, I guess enjoy life in Victoria, we can't go or Melbourne, we can't go more than 5k's from where you live. I think as a result, then we value the simpler things in life when we've learned to value because they'd be taken away. So I think it's interesting, a lot of people are getting back to that. The way that I was when I grew up, you know, the the gardening and the seeking the pleasures out of those sort of simple things that we have taken for granted for so many years.

Amanda: 8:01

It seems a very generational thing that our

Jenny: 8:01

Yeah, I think that there's probably two. One is, parents or grandparents who were either war babies or post war babies that, they lived in this world of massive scarcity, where things absolutely had to last, you know, they'd mend their you know, I was told through very early on in my financial nylons, or the shoes or whatever they had had to be repaired. It wasn't just i'll duck down to Kmart and get my 10 pack of sockies or undies or t shirts or whatever it may be, that wasn't an option. And I was even talking to my mother recently about how they used to have, I think you'd call it a lard jar in the fridge where you'd recycle all the oil. And you'd walk into a supermarket now there's 15, 20 different types of oils on sale. Do you want your coconut do your olive oil to, we just didn't have the variety or the means back then. So it's very slowly, I think changed. But like you said, it's almost lovely to see that return to the simple things mentality that that is shaping up now. So one of the things I like to ask in the book was what was the best financial tip that you were ever given growing up? Or the one that stood out the most to you over the years? planning career is you need to live where your clients live. And what was meant by that was, if you want to attract a certain type of clients, then you need to be able to understand how they live and where they live and what their lifestyle or things like that was and to show that you were on the same sort of level as them. And I'm not talking about keeping up with Joneses and stuff like that, but just, you know, understanding what they...

Amanda: 9:38

Is that, like attracts like almost or working with people who you're like and interested in?

Jenny: 9:44

Yes, yeah. And that was really where it came from. So I think that was the first rule that was very early on in financial planning. And the other thing was, is to value money and that came from my father, is to, to make sure tha you do value what you're ea ning from from that side of hings.

Amanda: 10:00

Actually when we put this together, you just made the decision and you'd sold Glen Iris and I think Sorento and you were looking to move to mount Martha. So, you'd made that lifestyle decision then so it's all come true in the interview from a couple years.

Jenny: 10:15

Yeah, it has come true.

Amanda: 10:17

Yeah, wonderful. Now, as an advisor, an award winning financial advisor with your own business, obviously people come to you professionally and pay for your advice. So, do you have a top tip that you like to share with your clients?

Jenny: 10:31

Well, I guess one of the things that we always talk to clients about is, clients need a money coach or financial advisor, just like elite athletes need, you know, their own coaches. So to make sure that you've got somebody there, in your corner to help you with various strategies and keep you accountable, I think is really, really important. And the other thing is to make sure that you're invested wisely, and diversification is key. So one of our top tips is good quality property. And blue chip shares are really good winners. So yes, you can pick a mid cap stock that flies one day, but it can crush the next. So it's really important to make sure that you've got a good round, well rounded, diversified portfolio,

Amanda: 11:18

I suppose it's especially so in times at the moment where we have such volatility and uncertainty, I mean, we've got local elections coming up. The American elections coming up. So it's very, very good advice, especially for the long term investor. So now, something that a lot of advisors or many coaches recommend is having a budget. And I know look, most people's eyes glaze over or roll back in their head when you say the dreaded budget word. So do you run one? First, personally, I suppose for you and your partner. And do you have one for your business as well. And if you do, what's the value in it?

Jenny: 11:54

Yes, and yes, so for business, we use Xero, it's really easy software, where everything feeds in. So i'm so I used to use Xero, I've been using it now for well over 20 years, I didn't realise Xero is that old now, gosh. Yes, yes. So almost when GST came in, that's when we went to Xero. And because I understand it knew that every day, then I set one up for me personally, for us personally. And, again, bank feeds feed in and I categorize so I know exactly how much we spend on groceries, o the dogs, on the househo d maintenance, on, can tell y u what the rates are, the wa er, the electricity, all of that sort of stuff. We know what we pend on clothes, health. And by doing that, and knowing tha, you can see where your mone's going. And you can see how m ch you're saving and how much hings are costing. So it be omes really easy to then do a r view. To say, well, why re we spending this amou t on? I don't know, pick, el ctricity or going out or whate er it happens to be And do we ne d to review it. So from a personal point of view, absolut

Amanda: 13:00

Excellent , which I suppose leads into business ly. And so when clients say to m, you know, I hate that word bu get, like yeah I know, but if yo set it up, it really does make lot of sense longer term. And t en for a business, yes, we us Xero. But I also run cash flow orecasts on a spreadsheet. I prefer to do a spreadshe t because I then group t e expenses. So every, we do fore asts for the next 12 months on w at we anticipate is going to com in every month, and what exp nses are going to go out. And hat's based on historica 12 months ago what those exp nses are, and then what's chang d. So we review that as a bu iness every month, I make sur that we're on track that our E e it's tracking the right wa that our debt levels are going own, and that our cash in the b nks going up. planning and a formal business plan. Again, you know, they can go from one page to hundreds of pages, and either be a living, breathing document or something that sits on a shelf and might get pulled out now and then. Do you do business planning? And do you revisit it? How does that work for you?

Jenny: 14:08

Yes, so yes, we do business planning. So we generally do an offsite, I've got a business partner, we generally do an offsite on least an annual basis. So we spend a day just going through everything looking at the values, the principles of the business. So what we stand for and what our trademark behaviors are. From there, we then look at what we need to get, as I said, I do cash flow forecasts and planning from thenumbers point of view on a monthly basis. But we also model that out over the next sort of 12 months, three years. So from from that side of things we do that we also, we have a business coach because I'm very I'm a big believer in coaches, just like you know, we're coaches for our clients. We as a business need a business coach, so we've got one. We catch up at least on a monthly basis. During COVID it's been a little more frequently because we've done training with the team. And in that, we make sure that we, we work on the various areas within the business that we need to work on. And we have quarterly board meetings. So those quarterly board meetings are reviewing the income, whether from clients, where new clients have come from, the sources, or we're looking at profitability, we're looking at any clients that may have left us during that period and why that would be. So yeah, so it's, it's really we do drill down into

Amanda: 15:32

Quited detailed. So for people who've never, I suppose, looked at using an advisor before and I know the stats for both Australia and the UK are under 20% of the population who can actually, do seek advice. Why would you encourage people to actually chat with an advisor? I know you have touched on on this with the elite coaches, but is there any othe,I suppose, standout reasons why people would want to see an advisor? Because I mean, the, I suppose conception is that it costs money to do it. So, people need to invest probably an amount to do it. So why would they do that? What benefits would they get from seeing a professional advisor?

Jenny: 16:11

Well I think that, you know, we don't know what we don't know. And an advisor will keep you on track, generally speaking, will keep you on track, and will help make sure that you draw out what your goals are, what you want to get out of life and what's important to you in life, and then help you put a plan in place. Now, you might only need to engage that advisor for a short period of time, or you might want to work with them longer term. Depends on on how hands on you want to be. So a lot of our clients, they want to know what's going on. But they're quite happy then to outsource the rest of the investment decisions and that sort of stuff to us as specialists, whereas, you know, some clients, they want to do all their own trading and things like that. And longer term, they're generally not the right clients, for us to work with longer term, but we can always sit down and touch on their plan to make sure that they are on track to achieve their goals. And I think that's the key is that, you know, often these things change and strategies change. And so if, you want to make sure that you're maximizing that, to get ahead and achieve those goals.

Amanda: 17:21

I think what you're saying is so true across so many different areas, you know, if people want to lose weight, they know they need to eat less and exercise more, it's not rocket science, yet they'll join a gym or get a personal trainer or get a workout buddy, it's that accountability, I think that motivates us to get there and keep going. I mean, we know what to do. And there's so much information available now, that may or may not be true. But having that person, that professional, who can push you that little bit harder or take you to places you probably wouldn't have gone before with the education and the knowledge that you're gaining that that beautiful relationship where you are holding them accountable. Now you did touch on something that's a little bit newer, I suppose in financial advice, where people would come and have these long term relationships. I'm personally finding in my own business, there's more arise of what I'd call ad hoc, sort of advice where people do come in, just want a one off thing, do you think that will continue?And that's, I suppose, since the rise of COVID, there's more going right, I just need this one off checkup. Do you think that's going to continue?

Jenny: 18:24

I think it will, a challenge for us as advisors is to make sure that we price out our services appropriately so that we make money, and it's the right price for the clients. I think that is a challenge. But I think more and more, more and more people, and I think probably not necessarily pre and post retirees, your younger, you know, 30s and 40s, they want to get that plan, they want to understand what they need to do. And then they'll they'll track it themselves. So they're quite happy to, to work with an advisor as a one off or, you know, maybe a series of meetings, and then run their own plan for the next however many years until something else changes.

Amanda: 19:08

Yeah, yeah I found that to where then, you know, the next big thing is oh we want to save for house and we want the baby or whatever. And you know, there'll be a four or five year where there'll be going right I want to check in at this stage, rather than see you every year. So,definitely finding that like rise of ad hoc advice to be new and different. And yeah, something is like you said we need to price right and, and get right for the client to who need that. So I think it's a great new area that you know, we're all sort of expanding into. Any other top tips or anything that comes to mind for financially, I suppose, betterment of people who are listening in and want to know what are the secrets to advice and finances that they haven't learned yet or can pick other people's brains to take home.

Jenny: 19:51

Look, I think we've covered most of them. I guess one of the you know, get the right advice. Partner with the right people. Make sure that you're, your account, either hold yourself accountable or get the right coach to hold you and keep you accountable. And you know, no plan is ever put in concrete things change, but making sure that you can see what's going on down the track, and that you are adaptable enough to be able to change and move with the times.

Amanda: 20:21

Yeah, perfect. And, you know, every year, we're not going to be able to sit there and go, look, you made 10% in your portfolio this year, you know, look, if we're in control of the markets, we wouldn't be sitting here chatting. So yeah, I think having that coach to go look, there will be good years, bad years, but we're on track. This is the long term goal and we're still doing that. Because it can be tough times when you go, what's happened in the last 12 months is the wheels fall off. And to just go, look, we're staying the course we know it'll get better. If anything, I suppose when the wheels do come off, it's that great time for the advisor to say throw in more while markets are down and not be so frightened and switching where you know, we've have seen clients in the past go oh i'm so frightenedI', m changing it all the cash. Which is the worst thing, and they find out in hindsight. So yeah, I think having that coach to keep you accountable is a really brilliant idea. So.

Jenny: 21:09

Absolutely. And make sure that you save.

Amanda: 21:12

Yes

Jenny: 21:12

Keep the spending down.

Amanda: 21:14

Yeah, live within your means. Best advice ever given by anybody that one isn't.

Unknown: 21:20

Exactly

Amanda: 21:21

Perfect. Well, thank you so much for sharing that with us Jenny today. Really appreciate it. Thanks for the opportunity. Great to chat.

Outro: 21:29

And that was another episode of Financial Secrets Revealed. Thank you so much for joining me. I hope you got some nuggets of wisdom out of that guest and enjoyed listening to their story. If you'd like to know more, please reach out to me my contact details are in the show notes, or hunt down your favorite bookstore to find Financial Secrets Revealed and learn more for yourself. I look forward to hearing from you.