1 00:00:00,240 --> 00:00:04,440 Speaker 1: She's on the Money. She's on the Money. 2 00:00:12,640 --> 00:00:15,720 Speaker 2: Hello, and welcome to a special episode of She's on 3 00:00:15,760 --> 00:00:19,479 Speaker 2: the Money, the podcast for millennials who want financial freedom. 4 00:00:19,960 --> 00:00:23,079 Speaker 2: Today's episode of the show is brought to you by Upbank, 5 00:00:23,520 --> 00:00:26,160 Speaker 2: the digital bank designed to help you organize your money 6 00:00:26,239 --> 00:00:29,640 Speaker 2: and simplify your life. My name is Victoria Devine. I'm 7 00:00:29,640 --> 00:00:33,040 Speaker 2: a millennial, a financial advisor, and I'm usually joined by 8 00:00:33,080 --> 00:00:37,360 Speaker 2: my sassy sidekick, Georgia king Alas Today's episode of She's 9 00:00:37,360 --> 00:00:39,519 Speaker 2: on the Money is going to take a different structure 10 00:00:39,560 --> 00:00:42,239 Speaker 2: to our usual episodes. As I thought it was important, 11 00:00:42,280 --> 00:00:44,680 Speaker 2: we had a chat about the only thing anyone is 12 00:00:44,720 --> 00:00:49,000 Speaker 2: talking about right now, COVID nineteen. Anxiety is peeked across 13 00:00:49,040 --> 00:00:52,080 Speaker 2: the globe right now, with COVID nineteen impacting our lives 14 00:00:52,120 --> 00:00:56,000 Speaker 2: in absolutely unprecedented ways. But how worried should you be 15 00:00:56,080 --> 00:00:57,560 Speaker 2: about your financial status? 16 00:00:57,920 --> 00:00:59,120 Speaker 1: What should you be doing if. 17 00:00:59,040 --> 00:01:01,440 Speaker 2: You've just found out you been stood down from your job? 18 00:01:01,840 --> 00:01:04,360 Speaker 2: How do you sustain yourself financially if you don't have 19 00:01:04,440 --> 00:01:08,000 Speaker 2: an emergency fund. There's no denying that the strain this 20 00:01:08,120 --> 00:01:10,800 Speaker 2: pandemic is placing and will continue to place on the 21 00:01:10,800 --> 00:01:14,480 Speaker 2: global economy is immense and while public health and safety 22 00:01:14,600 --> 00:01:17,160 Speaker 2: is our first priority and the reason I made the 23 00:01:17,200 --> 00:01:20,280 Speaker 2: decision not to invite our power Georgia on for this episode, 24 00:01:20,760 --> 00:01:24,600 Speaker 2: the financial impact of COVID nineteen is something we absolutely 25 00:01:24,680 --> 00:01:28,119 Speaker 2: need to be discussing. However, that doesn't mean we have 26 00:01:28,160 --> 00:01:30,080 Speaker 2: to be in a state of panic at a time 27 00:01:30,240 --> 00:01:34,680 Speaker 2: like this, when everything feels completely foreign. Feeling empowered financially 28 00:01:34,760 --> 00:01:37,240 Speaker 2: will help you feel a little bit less stressed and 29 00:01:37,319 --> 00:01:39,440 Speaker 2: a little bit more in control at a time when 30 00:01:39,560 --> 00:01:42,240 Speaker 2: not a lot is actually in our control. What we're 31 00:01:42,280 --> 00:01:46,200 Speaker 2: being faced with right now is indisputably daunting, but it's 32 00:01:46,280 --> 00:01:49,160 Speaker 2: not necessarily going to be impacting you as negatively as 33 00:01:49,160 --> 00:01:51,160 Speaker 2: the media may currently be reporting. 34 00:01:51,400 --> 00:01:52,680 Speaker 1: So let's just jump right in. 35 00:01:55,960 --> 00:01:59,320 Speaker 2: It's no secret that the Corona crisis has already delivered 36 00:01:59,360 --> 00:02:02,880 Speaker 2: a massive hit to the Australian economy, having already cost 37 00:02:03,000 --> 00:02:07,240 Speaker 2: so many of us our jobs as across the country, restaurants, cafes, 38 00:02:07,320 --> 00:02:12,000 Speaker 2: beauty salons, hairdressers, retail stors and so many other businesses 39 00:02:12,280 --> 00:02:16,079 Speaker 2: have suddenly been deprived of customers and cash flow due 40 00:02:16,080 --> 00:02:19,280 Speaker 2: to new travel bands, our new social distancing rules, and 41 00:02:19,320 --> 00:02:22,800 Speaker 2: people just holding back on non essential spending because they're uncertain, 42 00:02:22,960 --> 00:02:26,079 Speaker 2: they're scared. I won't harp on about this for too 43 00:02:26,160 --> 00:02:29,520 Speaker 2: much longer, I promise. However, the extent of the damage 44 00:02:29,560 --> 00:02:33,120 Speaker 2: this virus has already caused can be seen very evidently 45 00:02:33,120 --> 00:02:36,120 Speaker 2: in the share market, which the share market's gone crazy 46 00:02:36,160 --> 00:02:39,560 Speaker 2: this week. Despite some of the unexpected surges we saw 47 00:02:39,639 --> 00:02:42,760 Speaker 2: this week, the share market is still trending downward and 48 00:02:42,880 --> 00:02:46,560 Speaker 2: probably will continue to do so. Since people started selling 49 00:02:46,600 --> 00:02:49,840 Speaker 2: their shares and exiting the market a month ago, overall 50 00:02:50,080 --> 00:02:52,840 Speaker 2: shares have now lost about a third of their value. 51 00:02:52,960 --> 00:02:55,040 Speaker 2: Whilst we're not yet at the same point as we 52 00:02:55,040 --> 00:02:57,640 Speaker 2: were when we're in the GFC, we're definitely on a 53 00:02:57,639 --> 00:03:01,079 Speaker 2: similar trajectory, so it's really important and we are prepared 54 00:03:01,560 --> 00:03:04,680 Speaker 2: whilst shares are losing value. If you're a shareholder and 55 00:03:04,720 --> 00:03:08,160 Speaker 2: you own shares, you need to remember that you only 56 00:03:08,320 --> 00:03:11,040 Speaker 2: lose money if you sell your shares whilst they are 57 00:03:11,040 --> 00:03:14,040 Speaker 2: currently valued at less. For example, if you had a 58 00:03:14,040 --> 00:03:16,200 Speaker 2: share that was worth one hundred dollars before the market 59 00:03:16,240 --> 00:03:18,960 Speaker 2: started to decline, and now it's only worth sixty six dollars, 60 00:03:19,040 --> 00:03:21,800 Speaker 2: assuming its value has now decreased by a third, you 61 00:03:22,040 --> 00:03:25,720 Speaker 2: still own that whole share. You don't own less shares. 62 00:03:26,120 --> 00:03:28,560 Speaker 2: You just have a share that's currently valued at less, 63 00:03:28,760 --> 00:03:31,880 Speaker 2: which is really really important to remember because if you're 64 00:03:31,880 --> 00:03:34,679 Speaker 2: a long term investor, which a lot of us are, 65 00:03:35,360 --> 00:03:38,640 Speaker 2: and whilst it feels really worrying, this is actually. 66 00:03:38,400 --> 00:03:40,640 Speaker 1: A part of the ride. It's a part of the journey. 67 00:03:40,840 --> 00:03:43,240 Speaker 2: If you decide to panic sell and get rid of 68 00:03:43,320 --> 00:03:46,480 Speaker 2: your share or your micro investing platform, this is when 69 00:03:46,480 --> 00:03:48,720 Speaker 2: you're probably going to lose the most money. This is 70 00:03:48,800 --> 00:03:52,040 Speaker 2: behavioral finance in action, and I talk about it all 71 00:03:52,120 --> 00:03:55,400 Speaker 2: the time. This is the stuff we've been talking about 72 00:03:55,400 --> 00:03:58,280 Speaker 2: for so long. This is when we need to remember 73 00:03:58,360 --> 00:04:01,880 Speaker 2: that people are not rational being, especially when it comes 74 00:04:01,920 --> 00:04:05,440 Speaker 2: to money. So it's really important to check ourselves, check 75 00:04:05,480 --> 00:04:08,560 Speaker 2: our facts, get some advice to make sure that we're 76 00:04:08,600 --> 00:04:11,080 Speaker 2: not making decisions just purely based out of fear. 77 00:04:11,080 --> 00:04:11,640 Speaker 1: At the moment. 78 00:04:11,960 --> 00:04:17,080 Speaker 2: Large listed businesses and behavioral finance aside. The ones arguably 79 00:04:17,120 --> 00:04:20,320 Speaker 2: feeling the most pain are small and medium sized businesses 80 00:04:20,360 --> 00:04:23,479 Speaker 2: who really rely heavily on face to face trade. These 81 00:04:23,480 --> 00:04:27,080 Speaker 2: are our restaurants. These are our hair salons, cafes and shops, 82 00:04:27,600 --> 00:04:30,440 Speaker 2: many of which who have been pushed into closing far 83 00:04:30,480 --> 00:04:33,400 Speaker 2: before the mandatory shutdowns will put in place because they 84 00:04:33,440 --> 00:04:35,719 Speaker 2: simply didn't have enough business coming in the door to 85 00:04:35,760 --> 00:04:40,520 Speaker 2: sustain themselves. This week has been brutal. I've seen friends 86 00:04:40,600 --> 00:04:43,240 Speaker 2: and so many people in our community have to make 87 00:04:43,279 --> 00:04:46,640 Speaker 2: the heartbreaking decision to lay off their teams and close 88 00:04:46,680 --> 00:04:50,120 Speaker 2: their businesses doors. This week has been full of teary 89 00:04:50,240 --> 00:04:51,720 Speaker 2: phone calls and two am. 90 00:04:51,600 --> 00:04:53,279 Speaker 1: Texts for so many of us. 91 00:04:53,800 --> 00:04:57,120 Speaker 2: All of a sudden, we've been thrown into financial hardship. 92 00:04:57,360 --> 00:05:00,480 Speaker 2: Financial hardship we didn't even see coming. Not a lot 93 00:05:00,480 --> 00:05:03,200 Speaker 2: of us have planned for this. So let's jump into 94 00:05:03,279 --> 00:05:05,840 Speaker 2: some of the questions that our community has had over 95 00:05:05,880 --> 00:05:08,719 Speaker 2: the last couple of weeks in relation to the world's 96 00:05:08,760 --> 00:05:15,719 Speaker 2: current financial situation. Brittany asked Victoria, should I switch my 97 00:05:15,760 --> 00:05:19,479 Speaker 2: super account from high growth to conservative? I'm really worried 98 00:05:19,520 --> 00:05:23,200 Speaker 2: about how much my super account's already lost. Okay, first 99 00:05:23,240 --> 00:05:26,039 Speaker 2: things first, I think we need to remember that superanuation 100 00:05:26,279 --> 00:05:29,359 Speaker 2: is a long term asset. When the share market is 101 00:05:29,400 --> 00:05:32,760 Speaker 2: so volatile, if you're in a growth portfolio, you're going 102 00:05:32,839 --> 00:05:35,560 Speaker 2: to see some of that volatility. And that's just the 103 00:05:35,600 --> 00:05:39,280 Speaker 2: way it is. When we look at risk profiles and 104 00:05:39,320 --> 00:05:42,159 Speaker 2: we pick a superannuation fund that is in line with 105 00:05:42,200 --> 00:05:45,039 Speaker 2: our risk profile. We are not picking that for the 106 00:05:45,080 --> 00:05:48,599 Speaker 2: short term. We're not picking that for two years, four years, five, 107 00:05:48,760 --> 00:05:52,440 Speaker 2: or even ten. We are picking that portfolio to carry 108 00:05:52,520 --> 00:05:55,880 Speaker 2: us through, hopefully all the way till retirement. So if 109 00:05:55,880 --> 00:05:58,359 Speaker 2: you've picked a growth portfolio because you feel like it 110 00:05:58,440 --> 00:06:02,400 Speaker 2: aligns best to your person risk profile and your personal situation, 111 00:06:02,920 --> 00:06:05,880 Speaker 2: and you've found that it has decreased in value, I 112 00:06:05,880 --> 00:06:08,440 Speaker 2: think you need to have a really long, hard think 113 00:06:08,520 --> 00:06:11,640 Speaker 2: about why you've got superannuation in the first place. If 114 00:06:11,640 --> 00:06:13,920 Speaker 2: you're in a growth portfolio and let's say you had 115 00:06:14,000 --> 00:06:18,520 Speaker 2: ten thousand dollars invested and that growth portfolio has dropped 116 00:06:18,520 --> 00:06:21,560 Speaker 2: by twenty percent over the last few weeks, that's going 117 00:06:21,640 --> 00:06:24,240 Speaker 2: to take you down to a total of eight thousand dollars. 118 00:06:24,480 --> 00:06:27,960 Speaker 2: If you switch your growth portfolio down to a conservative 119 00:06:28,000 --> 00:06:31,479 Speaker 2: portfolio that's usually made up of things like cash, bonds 120 00:06:31,520 --> 00:06:35,040 Speaker 2: and fixed interests, all of which on average, return a 121 00:06:35,080 --> 00:06:38,320 Speaker 2: lot lower than the average share market does. So what 122 00:06:38,360 --> 00:06:42,279 Speaker 2: you're doing is actually crystallizing those losses, which means that 123 00:06:42,320 --> 00:06:45,839 Speaker 2: you're accepting the losses in your super fund. You're saying, Okay, 124 00:06:45,960 --> 00:06:48,960 Speaker 2: I had ten thousand dollars. Now I have eight. I'm 125 00:06:49,000 --> 00:06:51,560 Speaker 2: going to pull that eight thousand dollars out and invest 126 00:06:51,560 --> 00:06:55,160 Speaker 2: it in another asset. That means you're essentially locking in 127 00:06:55,240 --> 00:06:58,200 Speaker 2: that two thousand dollars loss, and you're putting yourself in 128 00:06:58,240 --> 00:07:01,320 Speaker 2: a position where the shares can never make back what 129 00:07:01,400 --> 00:07:04,919 Speaker 2: they've lost because now they've bought into a different asset. 130 00:07:05,240 --> 00:07:08,760 Speaker 2: So you're not giving your shares the opportunity to grow 131 00:07:08,800 --> 00:07:12,560 Speaker 2: again over the long term. If you choose to change 132 00:07:12,560 --> 00:07:16,280 Speaker 2: your investment profile within a superannuation fund, it means that 133 00:07:16,360 --> 00:07:20,440 Speaker 2: you sell down one asset to purchase another. So, for example, 134 00:07:20,480 --> 00:07:24,000 Speaker 2: if you are in a growth portfolio, a majority of 135 00:07:24,040 --> 00:07:28,320 Speaker 2: your portfolio will be made up of international and Australian shares, 136 00:07:28,840 --> 00:07:31,880 Speaker 2: it means that you will sell down those shares to 137 00:07:31,920 --> 00:07:36,040 Speaker 2: buy more conservative assets like bonds, cash and fixed interest 138 00:07:36,200 --> 00:07:39,280 Speaker 2: like I mentioned before. So essentially what you're doing is 139 00:07:39,320 --> 00:07:42,800 Speaker 2: switching one asset for another. And if you do this 140 00:07:43,240 --> 00:07:46,760 Speaker 2: and then the share market returns and you think, oh, okay, fantastic, 141 00:07:46,800 --> 00:07:49,640 Speaker 2: that's better, I'll change from my conservative portfolio now back 142 00:07:49,640 --> 00:07:53,400 Speaker 2: into a growth portfolio, you've actually already missed out on 143 00:07:53,440 --> 00:07:56,960 Speaker 2: the potential recovery that your shares could have had. You're 144 00:07:56,960 --> 00:08:00,920 Speaker 2: not actually saving anything in the longer term because you've 145 00:08:00,960 --> 00:08:03,920 Speaker 2: crystallized your loss. When it was down at eight thousand dollars, 146 00:08:04,000 --> 00:08:06,600 Speaker 2: you've put it into cash it didn't have the chance 147 00:08:06,760 --> 00:08:09,560 Speaker 2: to recover, and then when you put that eight thousand 148 00:08:09,600 --> 00:08:13,520 Speaker 2: dollars back into a growth portfolio, you're buying less shares 149 00:08:13,600 --> 00:08:16,880 Speaker 2: than what you started with. It's also really important at 150 00:08:16,880 --> 00:08:19,720 Speaker 2: this point to remember that if you are still contributing 151 00:08:19,720 --> 00:08:23,960 Speaker 2: to your superannuation and you're buying shares, this usually means 152 00:08:24,000 --> 00:08:27,320 Speaker 2: you are actually buying more shares than what you were before, 153 00:08:27,760 --> 00:08:30,160 Speaker 2: So instead of just buying ten shares, you might have 154 00:08:30,240 --> 00:08:33,680 Speaker 2: the opportunity to buy twelve or fourteen shares on average. 155 00:08:34,040 --> 00:08:38,120 Speaker 2: Thus you're purchasing more shares. So when the market does recover, 156 00:08:38,480 --> 00:08:41,360 Speaker 2: it'll probably bounce back a whole heap quicker than it 157 00:08:41,400 --> 00:08:44,000 Speaker 2: would have if you weren't contributing during this time at all. 158 00:08:44,440 --> 00:08:47,680 Speaker 2: So should she switch her super from growth to conservative. 159 00:08:48,080 --> 00:08:50,600 Speaker 2: That's not a decision I can make. But what I 160 00:08:50,640 --> 00:08:52,920 Speaker 2: want you to do is be educated on this, And 161 00:08:52,960 --> 00:08:55,880 Speaker 2: if you are going to make that decision, the best 162 00:08:55,880 --> 00:08:58,079 Speaker 2: thing you can do is get some advice on it. 163 00:08:58,200 --> 00:08:58,520 Speaker 1: First. 164 00:09:02,040 --> 00:09:04,920 Speaker 2: Our next question is from Evie and she asked, should 165 00:09:04,960 --> 00:09:07,400 Speaker 2: I take all of my money out of my bank account? 166 00:09:07,440 --> 00:09:10,360 Speaker 2: I'm worried the banks are going under. I have heard 167 00:09:10,440 --> 00:09:13,600 Speaker 2: this so many times this week, from messages that have 168 00:09:13,720 --> 00:09:16,840 Speaker 2: been sent to me on Facebook, to being at my 169 00:09:16,960 --> 00:09:21,160 Speaker 2: local cafe lining up socially distancing of course, and tearing 170 00:09:21,160 --> 00:09:23,000 Speaker 2: the guy on the phone in front of me saying, 171 00:09:23,040 --> 00:09:25,040 Speaker 2: oh no, no, I'm going to the bank later this afternoon. 172 00:09:25,120 --> 00:09:27,080 Speaker 2: I'm going to be starting to bring out all of 173 00:09:27,120 --> 00:09:30,600 Speaker 2: my cash. It drives me insane. I have heard it 174 00:09:30,640 --> 00:09:33,920 Speaker 2: too many times, and yes, these are really scary times, 175 00:09:34,200 --> 00:09:36,319 Speaker 2: but that does not mean that you should be heading 176 00:09:36,360 --> 00:09:38,520 Speaker 2: down to your bank and draining your account to put 177 00:09:38,559 --> 00:09:41,600 Speaker 2: all of your cash under your mattress. A few people 178 00:09:41,679 --> 00:09:45,520 Speaker 2: have actually asked this as well. Maybe it's because Bianker's friends, 179 00:09:45,559 --> 00:09:48,520 Speaker 2: mum's cousin's dog told her that if banks crash, you'll 180 00:09:48,559 --> 00:09:51,839 Speaker 2: lose all your money, and the answer is, actually you won't. 181 00:09:52,559 --> 00:09:55,160 Speaker 2: Just like our really good friends at up Banking, all 182 00:09:55,200 --> 00:09:59,679 Speaker 2: good banks in Australia are authorized to deposit taking institutions, 183 00:10:00,040 --> 00:10:03,560 Speaker 2: so that's ads in banking lingo and these fall under 184 00:10:03,600 --> 00:10:07,800 Speaker 2: the financial claims scheme the FCSA lingo and because of 185 00:10:07,840 --> 00:10:10,000 Speaker 2: this it means that we can be sure that our 186 00:10:10,040 --> 00:10:13,559 Speaker 2: money is safe in our banks here in Australia. In fact, 187 00:10:13,880 --> 00:10:17,440 Speaker 2: the government actually guarantees up to two hundred and fifty 188 00:10:17,520 --> 00:10:20,600 Speaker 2: thousand dollars for each account that you have with each 189 00:10:20,679 --> 00:10:23,600 Speaker 2: different bank, so in short, they've actually got our backs 190 00:10:23,640 --> 00:10:24,559 Speaker 2: during this period. 191 00:10:27,600 --> 00:10:28,800 Speaker 1: Next question is from. 192 00:10:28,640 --> 00:10:31,800 Speaker 2: Emily and she asked, should I make use of the 193 00:10:31,920 --> 00:10:35,520 Speaker 2: super access policy and take money out of my superannuation? 194 00:10:36,200 --> 00:10:40,040 Speaker 2: Whilst AI can absolutely understand that so many people are 195 00:10:40,040 --> 00:10:43,320 Speaker 2: going to be experiencing financial hardship over the next few months, 196 00:10:43,960 --> 00:10:47,240 Speaker 2: my advice as a financial advisor is to please, please 197 00:10:47,360 --> 00:10:51,120 Speaker 2: please try and avoid accessing your superannuation unless it is 198 00:10:51,280 --> 00:10:52,959 Speaker 2: absolutely necessary. 199 00:10:53,320 --> 00:10:54,400 Speaker 1: Whilst I understand that. 200 00:10:54,360 --> 00:10:56,240 Speaker 2: For a lot of people, being able to pull money 201 00:10:56,240 --> 00:10:58,160 Speaker 2: out of super is going to be the thing that 202 00:10:58,240 --> 00:11:01,080 Speaker 2: pays their children's school fees and keeps a roof over 203 00:11:01,120 --> 00:11:05,040 Speaker 2: their head, with drawing your superannuation now is going to 204 00:11:05,160 --> 00:11:08,199 Speaker 2: have a significant impact on the balance of your superannuation 205 00:11:08,280 --> 00:11:11,240 Speaker 2: when you get to retirement. For example, if you're thirty 206 00:11:11,280 --> 00:11:14,079 Speaker 2: five and you choose to take ten thousand dollars out 207 00:11:14,120 --> 00:11:17,439 Speaker 2: of your super this year, you're essentially taking one hundred 208 00:11:17,440 --> 00:11:20,920 Speaker 2: thousand dollars from future you. If you're twenty five and 209 00:11:20,960 --> 00:11:23,680 Speaker 2: you're thinking about doing the same and taking ten thousand 210 00:11:23,720 --> 00:11:26,480 Speaker 2: dollars out of your super, that's looking like a whopping 211 00:11:26,520 --> 00:11:30,040 Speaker 2: two hundred and thirty three thousand dollars that future you 212 00:11:30,280 --> 00:11:33,679 Speaker 2: isn't going to have access to. This stuff matters. It 213 00:11:33,760 --> 00:11:37,679 Speaker 2: is massive, and we're not even talking about the limit 214 00:11:37,760 --> 00:11:40,839 Speaker 2: of the scheme. So the scheme stipulates that you are 215 00:11:40,920 --> 00:11:43,800 Speaker 2: able to take ten thousand dollars out of your superannuation 216 00:11:44,200 --> 00:11:47,360 Speaker 2: for the twenty nineteen to twenty twenty financial year, and 217 00:11:47,400 --> 00:11:50,520 Speaker 2: then another ten thousand dollars out for the twenty twenty 218 00:11:50,600 --> 00:11:54,800 Speaker 2: twenty twenty one financial year. So that's twenty thousand dollars 219 00:11:54,800 --> 00:11:58,200 Speaker 2: in total. So double the numbers I'm talking about, and 220 00:11:58,240 --> 00:12:02,240 Speaker 2: you'll see why I'm so passion about educating people around 221 00:12:02,280 --> 00:12:05,880 Speaker 2: the decisions that they're making. If you don't have a choice, 222 00:12:05,960 --> 00:12:09,040 Speaker 2: which some of us aren't going to, please don't beat 223 00:12:09,040 --> 00:12:12,280 Speaker 2: yourself up about it. Just make a plan to replace 224 00:12:12,320 --> 00:12:15,280 Speaker 2: it once you're back working and earning an income. We're 225 00:12:15,320 --> 00:12:17,120 Speaker 2: all doing the best that we can with the tools 226 00:12:17,160 --> 00:12:20,640 Speaker 2: and resources we have, and I'm so, so so grateful 227 00:12:20,760 --> 00:12:22,880 Speaker 2: to be in a country where this is an option 228 00:12:22,920 --> 00:12:25,480 Speaker 2: that we're able to take if we need it. But 229 00:12:25,920 --> 00:12:28,560 Speaker 2: I will say here, and I ranted about this in 230 00:12:28,600 --> 00:12:32,360 Speaker 2: our Facebook group earlier this week, that I'm really disappointed 231 00:12:32,400 --> 00:12:35,440 Speaker 2: how the government has managed this. So it's not that 232 00:12:35,480 --> 00:12:38,040 Speaker 2: they're giving us access to super. I think that that's 233 00:12:38,120 --> 00:12:41,080 Speaker 2: really important and it's a resource that can save a 234 00:12:41,120 --> 00:12:44,120 Speaker 2: lot of people. However, I am really upset around the 235 00:12:44,200 --> 00:12:47,720 Speaker 2: lack of education that has been provided when this option 236 00:12:47,880 --> 00:12:50,720 Speaker 2: was a made available to us. It's not just a 237 00:12:50,800 --> 00:12:54,280 Speaker 2: twenty thousand dollars decision we're making here. It is more 238 00:12:54,320 --> 00:12:57,320 Speaker 2: than two hundred thousand dollars in the long term. This 239 00:12:57,480 --> 00:13:00,800 Speaker 2: is serious. We need to take it seriously. Your superannuation 240 00:13:01,040 --> 00:13:03,160 Speaker 2: isn't just a bank account full of cash that you 241 00:13:03,200 --> 00:13:06,160 Speaker 2: can go and spend. It's an asset that is invested 242 00:13:06,200 --> 00:13:08,560 Speaker 2: for our future, and we need to try and keep 243 00:13:08,600 --> 00:13:14,400 Speaker 2: it there as much as we can. Our next question 244 00:13:14,520 --> 00:13:17,439 Speaker 2: came from Beck. She sent me a really long winded 245 00:13:17,440 --> 00:13:20,440 Speaker 2: message which I have gotten back to her about on Facebook, 246 00:13:20,600 --> 00:13:23,200 Speaker 2: but essentially she said, I've been stood down. 247 00:13:23,480 --> 00:13:24,160 Speaker 1: What do I do? 248 00:13:24,840 --> 00:13:28,000 Speaker 2: I would like to before answering this actually do a 249 00:13:28,120 --> 00:13:29,119 Speaker 2: massive shout. 250 00:13:28,880 --> 00:13:30,360 Speaker 1: Out to our friend Kat. 251 00:13:30,600 --> 00:13:32,680 Speaker 2: For those of you who are in our Facebook group, 252 00:13:32,760 --> 00:13:35,920 Speaker 2: you will know that Kat has been working absolutely relentlessly 253 00:13:36,280 --> 00:13:39,240 Speaker 2: on a thread that we created earlier this month on 254 00:13:39,320 --> 00:13:42,880 Speaker 2: employment law. Kat is an employment lawyer who messaged me 255 00:13:42,960 --> 00:13:45,440 Speaker 2: earlier this week. She is also a friend of mine, 256 00:13:45,720 --> 00:13:47,680 Speaker 2: and she said, Victoria, what can I do? I want 257 00:13:47,679 --> 00:13:49,600 Speaker 2: to help? There are so many people that have so 258 00:13:49,679 --> 00:13:52,480 Speaker 2: many questions that are going unanswered, and we had a 259 00:13:52,480 --> 00:13:55,680 Speaker 2: really great conversation about how I didn't feel empowered to 260 00:13:55,720 --> 00:13:58,480 Speaker 2: answer a lot of the employment related questions. 261 00:13:58,040 --> 00:13:59,440 Speaker 1: Because it's not my specialty. 262 00:13:59,800 --> 00:14:02,079 Speaker 2: So Cat put her hand up and said, all right, 263 00:14:02,120 --> 00:14:04,320 Speaker 2: if you create a thread, I will answer all of 264 00:14:04,360 --> 00:14:07,800 Speaker 2: the questions. And that post now has more than a 265 00:14:07,920 --> 00:14:11,120 Speaker 2: thousand comments on it. I am so proud to say 266 00:14:11,160 --> 00:14:12,880 Speaker 2: that she is a part of our community, and I 267 00:14:12,920 --> 00:14:15,080 Speaker 2: want to thank her from the bottom of my heart 268 00:14:15,280 --> 00:14:18,000 Speaker 2: for actually helping our community out in a time that 269 00:14:18,040 --> 00:14:20,920 Speaker 2: they need it so desperately. Back to the question, though, 270 00:14:21,200 --> 00:14:23,120 Speaker 2: if you've been stood down, what do you do? 271 00:14:23,520 --> 00:14:24,240 Speaker 1: First? Things? 272 00:14:24,280 --> 00:14:28,080 Speaker 2: First, you are not alone. Do not panic, As much 273 00:14:28,120 --> 00:14:31,240 Speaker 2: as it can feel really really daunting to be left 274 00:14:31,280 --> 00:14:34,320 Speaker 2: without a job in such a tumultuous period of time. 275 00:14:34,880 --> 00:14:36,840 Speaker 2: We need to make a plan. We need to keep 276 00:14:36,880 --> 00:14:39,360 Speaker 2: our heads on quite straight so that we can plan 277 00:14:39,480 --> 00:14:42,320 Speaker 2: for the future. The first things first is set up 278 00:14:42,360 --> 00:14:45,960 Speaker 2: a plan. Work out what your budget. Is. As confronting 279 00:14:46,040 --> 00:14:47,680 Speaker 2: as it is to do a budget when you're in 280 00:14:47,720 --> 00:14:51,440 Speaker 2: a situation where you don't necessarily have any income coming in, 281 00:14:51,760 --> 00:14:54,680 Speaker 2: it is so important to know where we stand and 282 00:14:54,720 --> 00:14:58,000 Speaker 2: where we can go from here. Be ruthless with your budget. 283 00:14:58,200 --> 00:15:00,640 Speaker 2: What things can we put on pause so that we 284 00:15:00,720 --> 00:15:04,000 Speaker 2: can save as much money now and not deprive ourselves 285 00:15:04,000 --> 00:15:06,840 Speaker 2: for the long term. Other things that you can negotiate 286 00:15:06,960 --> 00:15:10,600 Speaker 2: down first things First, I would be talking to your bank. 287 00:15:10,720 --> 00:15:12,920 Speaker 2: If you've lost your job, have a chat to your 288 00:15:13,000 --> 00:15:16,840 Speaker 2: bank about any available assistance. You might spend a little 289 00:15:16,840 --> 00:15:19,040 Speaker 2: bit of time on hold, but they'll be able to 290 00:15:19,080 --> 00:15:22,840 Speaker 2: send you in the right direction. Second is look into 291 00:15:23,080 --> 00:15:25,600 Speaker 2: whether you are eligible for centilink or not. 292 00:15:26,520 --> 00:15:28,320 Speaker 1: I never thought that as. 293 00:15:28,160 --> 00:15:31,400 Speaker 2: A financial advisor one of the biggest pieces of advice 294 00:15:31,520 --> 00:15:34,280 Speaker 2: I would have for my community would be to look 295 00:15:34,280 --> 00:15:35,200 Speaker 2: into centilink. 296 00:15:35,280 --> 00:15:36,040 Speaker 1: Yet here we are. 297 00:15:36,480 --> 00:15:39,760 Speaker 2: Centilink is such an incredible tool and we are so 298 00:15:40,000 --> 00:15:42,600 Speaker 2: lucky to live in a country that provides us with 299 00:15:42,640 --> 00:15:46,320 Speaker 2: such support. In our Facebook group, there is a thread 300 00:15:46,440 --> 00:15:50,120 Speaker 2: of people answering centillin co related questions. There is so 301 00:15:50,240 --> 00:15:54,240 Speaker 2: much there, but essentially, if you have suddenly lost your income, 302 00:15:54,640 --> 00:15:56,600 Speaker 2: what you need to know is that you do not 303 00:15:56,760 --> 00:16:00,080 Speaker 2: need to go to the centilling office. You actually just 304 00:16:00,120 --> 00:16:03,680 Speaker 2: need to jump online. Because of how many people are 305 00:16:03,760 --> 00:16:06,800 Speaker 2: applying for sentlink at this point, giving them a call 306 00:16:06,960 --> 00:16:09,200 Speaker 2: is going to be fruitless. It is going to be 307 00:16:09,280 --> 00:16:13,000 Speaker 2: really really hard because they are experiencing such an influx 308 00:16:13,120 --> 00:16:16,440 Speaker 2: of calls and messages. So what I can recommend is 309 00:16:16,480 --> 00:16:19,840 Speaker 2: their website. If you go to my dot gov dot au, 310 00:16:20,000 --> 00:16:22,520 Speaker 2: it will take you to a sign in page. If 311 00:16:22,560 --> 00:16:26,640 Speaker 2: you haven't signed into MyGov before create an account. From there, 312 00:16:26,840 --> 00:16:30,240 Speaker 2: you need to register your intent to claim, So if 313 00:16:30,240 --> 00:16:32,760 Speaker 2: you haven't already, you need to link your sent link 314 00:16:32,840 --> 00:16:35,360 Speaker 2: to your MyGov account. It can be a little bit vidly, 315 00:16:35,440 --> 00:16:38,080 Speaker 2: but it's quite simple to work out from the MyGov 316 00:16:38,120 --> 00:16:42,240 Speaker 2: instructions and you can register your intent to claim the 317 00:16:42,280 --> 00:16:47,080 Speaker 2: coronavirus supplement as well as the job seeker payment. If 318 00:16:47,120 --> 00:16:49,720 Speaker 2: you have been made redundant, you have lost your job, 319 00:16:49,840 --> 00:16:52,400 Speaker 2: or you have been stood down for the foreseeable future. 320 00:16:52,640 --> 00:16:56,440 Speaker 2: The coronavirus supplement is five hundred and fifty dollars a fortnight, 321 00:16:56,520 --> 00:16:58,680 Speaker 2: which is two hundred and seventy five dollars a week, 322 00:16:59,000 --> 00:17:01,560 Speaker 2: and it is the job Seeker payment which used to 323 00:17:01,600 --> 00:17:04,600 Speaker 2: be known as Newstart, but it is effectively double what 324 00:17:04,680 --> 00:17:08,160 Speaker 2: it was before. The payment for the job Seeker allowance 325 00:17:08,520 --> 00:17:11,000 Speaker 2: is five hundred and sixty five dollars seventy plus the 326 00:17:11,040 --> 00:17:14,600 Speaker 2: five hundred and fifty dollars supplement per fortnite, so this 327 00:17:14,760 --> 00:17:17,520 Speaker 2: is massive for people who have lost their jobs. Payments 328 00:17:17,560 --> 00:17:21,240 Speaker 2: will begin on April twenty seventh and it'll be available 329 00:17:21,240 --> 00:17:24,280 Speaker 2: for at least six months. So if you're eligible for 330 00:17:24,359 --> 00:17:26,439 Speaker 2: this and you have lost your job, this is the 331 00:17:26,480 --> 00:17:28,760 Speaker 2: one thing that I would recommend you jump on and 332 00:17:28,800 --> 00:17:32,800 Speaker 2: do and register as soon as possible, because you will 333 00:17:32,840 --> 00:17:35,640 Speaker 2: be back paid from the date you in state your 334 00:17:35,680 --> 00:17:39,320 Speaker 2: intent to claim, not the date that you actually finally 335 00:17:39,359 --> 00:17:42,159 Speaker 2: register for it. So this needs to become a priority 336 00:17:42,400 --> 00:17:44,840 Speaker 2: because at the end of the day, cash flow is king, 337 00:17:45,000 --> 00:17:47,800 Speaker 2: and if you have lost your cash flow, replacing it 338 00:17:47,840 --> 00:17:50,960 Speaker 2: as soon as possible is really really important. The next 339 00:17:51,040 --> 00:17:53,120 Speaker 2: thing to do is look at your expenses and look 340 00:17:53,160 --> 00:17:56,080 Speaker 2: at your budget and make sure that you are prioritizing 341 00:17:56,119 --> 00:17:57,000 Speaker 2: the essentials. 342 00:17:57,440 --> 00:17:58,200 Speaker 1: So there are going to. 343 00:17:58,119 --> 00:18:00,600 Speaker 2: Be things that you can't change, there are going to 344 00:18:00,600 --> 00:18:03,600 Speaker 2: be things that you can change. Can you go without 345 00:18:03,680 --> 00:18:06,520 Speaker 2: some of those non essential items for a short period 346 00:18:06,560 --> 00:18:07,360 Speaker 2: of time while you. 347 00:18:07,359 --> 00:18:09,640 Speaker 1: Get back on your feet. The next thing is. 348 00:18:09,760 --> 00:18:13,080 Speaker 2: Just don't be too harsh on yourself. No one ever 349 00:18:13,160 --> 00:18:16,000 Speaker 2: wants to be under financial stress, and no one puts 350 00:18:16,040 --> 00:18:19,879 Speaker 2: themselves in these positions on purpose. I've heard from so 351 00:18:20,000 --> 00:18:22,199 Speaker 2: many people this week saying, Oh, I wish I had 352 00:18:22,200 --> 00:18:25,760 Speaker 2: an emergency fund. I didn't have an emergency fund. Conversely, 353 00:18:25,840 --> 00:18:28,080 Speaker 2: I've heard in the media from a lot of quote 354 00:18:28,160 --> 00:18:32,040 Speaker 2: financial experts over the last couple of weeks saying that 355 00:18:32,119 --> 00:18:36,119 Speaker 2: this is the time that we rely on our emergency funds. Unfortunately, 356 00:18:36,160 --> 00:18:38,679 Speaker 2: for a lot of us, we don't have emergency funds 357 00:18:38,680 --> 00:18:41,160 Speaker 2: that are going to be able to sustain the next three, 358 00:18:41,520 --> 00:18:44,800 Speaker 2: maybe even six months worth of income. So for us, 359 00:18:44,840 --> 00:18:48,600 Speaker 2: it's more about empowering ourselves with the tools and resources 360 00:18:48,640 --> 00:18:52,440 Speaker 2: we have access to so that we aren't experiencing financial 361 00:18:52,560 --> 00:18:56,280 Speaker 2: hardship without knowing what we can do. For any of 362 00:18:56,320 --> 00:18:59,560 Speaker 2: you who need a helping hand during these super trying times, 363 00:19:00,000 --> 00:19:02,160 Speaker 2: there are a number of other resources that you can 364 00:19:02,200 --> 00:19:05,040 Speaker 2: and recommend you do reach out to because. 365 00:19:04,760 --> 00:19:05,760 Speaker 1: You are not alone. 366 00:19:06,520 --> 00:19:10,359 Speaker 2: Whilst understanding our finances is really important, it's also really 367 00:19:10,400 --> 00:19:13,760 Speaker 2: important to understand that this is going to impact a 368 00:19:13,760 --> 00:19:16,720 Speaker 2: lot of our mental healths. If you have any questions 369 00:19:16,760 --> 00:19:19,840 Speaker 2: about debt or you're struggling with money, the National Debt 370 00:19:19,920 --> 00:19:22,520 Speaker 2: Helpline on one eight hundred, double O seven, double O 371 00:19:22,640 --> 00:19:25,160 Speaker 2: seven is a great place to start. And if you're 372 00:19:25,200 --> 00:19:28,000 Speaker 2: struggling with anything else, I've put a number of different 373 00:19:28,080 --> 00:19:34,840 Speaker 2: resources in the pod description for today. That's all we 374 00:19:34,920 --> 00:19:38,280 Speaker 2: have time for today, but before we end, I just 375 00:19:38,359 --> 00:19:41,360 Speaker 2: want to remind you all to be kind. This world 376 00:19:41,480 --> 00:19:44,639 Speaker 2: is becoming a challenging place to be and the importance 377 00:19:44,680 --> 00:19:47,560 Speaker 2: of community and being kind to one another is going 378 00:19:47,600 --> 00:19:50,360 Speaker 2: to be more important than it ever has been before. 379 00:19:50,400 --> 00:19:51,960 Speaker 1: And I don't say that lightly. 380 00:19:52,400 --> 00:19:54,879 Speaker 2: This period to come is going to be full of heartbreak, 381 00:19:55,000 --> 00:19:59,000 Speaker 2: disappointment and financial stress for so many of us. Not 382 00:19:59,240 --> 00:20:01,960 Speaker 2: one person in our community is not going to be 383 00:20:02,040 --> 00:20:05,480 Speaker 2: impacted in some way by this. Yes, some of us 384 00:20:05,520 --> 00:20:08,840 Speaker 2: more than others. So keep contributing to the community and 385 00:20:08,960 --> 00:20:13,280 Speaker 2: ask your money questions and stop spending unnecessarily focus on 386 00:20:13,359 --> 00:20:16,400 Speaker 2: bumping up that emergency fund if you can, and we'll 387 00:20:16,480 --> 00:20:19,399 Speaker 2: keep creating content. We here for you, and we're so 388 00:20:19,640 --> 00:20:22,679 Speaker 2: eternally grateful that you guys have always been here for 389 00:20:22,840 --> 00:20:25,760 Speaker 2: us too. We want Shees on the Money to continue 390 00:20:25,800 --> 00:20:28,239 Speaker 2: to be the space that you guys reach out to 391 00:20:28,320 --> 00:20:31,000 Speaker 2: when you've got a money problem or dilemma, so let's 392 00:20:31,080 --> 00:20:34,800 Speaker 2: keep that coming. Just before I head off, let's quickly 393 00:20:34,840 --> 00:20:38,399 Speaker 2: wrap the boring but really important stuff. The advice shared 394 00:20:38,440 --> 00:20:40,600 Speaker 2: on She's on the Money is general in nature and 395 00:20:40,720 --> 00:20:44,600 Speaker 2: does not consider your individual circumstances. She's on the Money 396 00:20:44,720 --> 00:20:48,479 Speaker 2: exists purely for educational purposes and should not be relied 397 00:20:48,560 --> 00:20:51,919 Speaker 2: upon to make an investment or financial decision. And I 398 00:20:52,240 --> 00:20:56,800 Speaker 2: Victoria Devine am an authorized representative of Australia Pacific Funds 399 00:20:56,840 --> 00:21:02,280 Speaker 2: Management Proprietary Limited ABN three four one three two four 400 00:21:02,320 --> 00:21:07,040 Speaker 2: six three two five seven AFSL double three nine one 401 00:21:07,240 --> 00:21:10,760 Speaker 2: five one And as always a massive shout out to 402 00:21:10,840 --> 00:21:13,560 Speaker 2: our pale and audio legend Ryan John for putting this 403 00:21:13,600 --> 00:21:16,000 Speaker 2: pod together. If you'd like to hear more from the 404 00:21:16,040 --> 00:21:18,880 Speaker 2: She's on the Money team, please join us on Facebook, 405 00:21:19,040 --> 00:21:22,600 Speaker 2: where our community shares money tips and tricks every single day, 406 00:21:22,680 --> 00:21:25,600 Speaker 2: free of judgment. Search She's on the Money on Facebook 407 00:21:25,640 --> 00:21:28,200 Speaker 2: and join us if Facebook's not your thing, or you 408 00:21:28,240 --> 00:21:29,320 Speaker 2: want to find us on both. 409 00:21:29,400 --> 00:21:30,840 Speaker 1: We're also on Instagram. 410 00:21:31,040 --> 00:21:31,320 Speaker 2: We're it. 411 00:21:31,440 --> 00:21:34,280 Speaker 1: She's on the money a US. Catch you next time.