WEBVTT - Community Q&A Part Two! 0:00:00.200 --> 0:00:19.440 She's on the Money. She's on the Money. 0:00:23.200 --> 0:00:26.080 Hello, and welcome to She's on the Money, the podcast 0:00:26.079 --> 0:00:30.560 for millennials who want financial freedom, back by popular demand. 0:00:30.640 --> 0:00:33.440 Today we are jumping straight back into another Q and 0:00:33.520 --> 0:00:36.760 A episode, helping answer the questions we didn't have time 0:00:36.800 --> 0:00:40.120 for in our last Q and A show. Expect wedding chats, 0:00:40.240 --> 0:00:43.000 home loan tips, and ideas for where best to funnel 0:00:43.040 --> 0:00:45.839 your extra cash, plus plenty. 0:00:45.280 --> 0:00:49.000 More that is diverse, Georgia, I appreciate it. 0:00:49.240 --> 0:00:52.040 I know now. My name is Georgia King, and joining 0:00:52.080 --> 0:00:55.760 me as always is financial advisor Victoria Divine. We are 0:00:55.880 --> 0:00:59.320 back today to answer more of our communities burning questions. 0:00:59.400 --> 0:01:00.560 How ex are you? 0:01:01.200 --> 0:01:05.920 I am stoked, No, genuinely, I'm really excited because these 0:01:05.920 --> 0:01:08.280 are really fun. They're like shortsh up to the point 0:01:08.280 --> 0:01:10.000 things where I feel like you guys walk away with 0:01:10.040 --> 0:01:13.319 a whole understanding of like random topics Like is that 0:01:13.400 --> 0:01:14.720 not fun? I think that's fun. 0:01:14.920 --> 0:01:17.240 Yeah, it's like the taste of lots of different topics 0:01:17.240 --> 0:01:17.959 in one episode. 0:01:18.040 --> 0:01:20.480 Right, So, George, we probably should just jump into them, 0:01:20.520 --> 0:01:21.040 shouldn't we. 0:01:21.200 --> 0:01:23.680 Let's do it be okay, So our first question here 0:01:23.840 --> 0:01:27.720 is from Bonnie. She has asked, if I'm in my 0:01:28.000 --> 0:01:34.120 early twenties lucky and I have a decent chunk of savings, 0:01:34.520 --> 0:01:38.559 how should I be investing slash growing this She feels 0:01:38.560 --> 0:01:40.880 that it's being wasted in the bank where she's not 0:01:40.880 --> 0:01:43.600 getting much interest off her money at all. But she 0:01:43.680 --> 0:01:46.760 also doesn't want to invest a larger portion in shares 0:01:46.800 --> 0:01:48.880 as she might want it in a few years for 0:01:48.920 --> 0:01:51.680 a home loan. So what do you do in that case? 0:01:51.760 --> 0:01:54.279 Be oh, you got to go see a financial advice 0:01:54.360 --> 0:01:56.760 or my friend, because that is asking for financial advice, 0:01:56.760 --> 0:02:00.040 and it would be very irresponsible of me as the 0:02:00.160 --> 0:02:02.560 financial advisor, to provide you with direct advice. 0:02:02.920 --> 0:02:05.680 But here's gentially, that's generally. 0:02:05.360 --> 0:02:08.200 Where you should be looking. So first things first, there 0:02:08.240 --> 0:02:12.040 are different time frames for investment. So you could invest 0:02:12.120 --> 0:02:14.120 for five years, you could invest for ten years. The 0:02:14.240 --> 0:02:17.360 priority could be investing for the long term. And obviously 0:02:17.720 --> 0:02:20.400 I talk a lot on this podcast about investing for 0:02:20.520 --> 0:02:22.840 the long term because I want you guys to be 0:02:22.840 --> 0:02:26.400 creating financial freedom. But I know a lot of people 0:02:26.480 --> 0:02:28.760 who are saying, oh cool, probably want to buy a 0:02:28.760 --> 0:02:31.440 house in like seven to ten years. But I'm going 0:02:31.480 --> 0:02:33.400 to invest in the short term and sell down my 0:02:33.440 --> 0:02:36.920 asset once I'm there, because I want exposure to those returns. 0:02:37.120 --> 0:02:40.400 So it's not to say you shouldn't invest. There's obviously 0:02:40.520 --> 0:02:43.680 just risk that comes along with that when you talk 0:02:43.720 --> 0:02:46.880 about it being wasted in the bank. Obviously, we are 0:02:46.919 --> 0:02:49.600 really lucky here in Australia to have a really safe 0:02:49.639 --> 0:02:53.360 banking system and we also have access to interest rates 0:02:53.360 --> 0:02:56.560 on some of our banking products, which means you can 0:02:56.600 --> 0:02:59.760 make a return. But if you're wanting more of a 0:02:59.760 --> 0:03:03.480 retur than that, I can't actually recommend a direct product 0:03:03.520 --> 0:03:05.960 because it would include more risk and what you've just 0:03:05.960 --> 0:03:08.240 said is you're not willing to take more risk than that. 0:03:08.600 --> 0:03:10.920 So sometimes we really need to think like what is 0:03:10.960 --> 0:03:13.200 the plan here? And it's actually really common question where 0:03:13.200 --> 0:03:14.680 they're like, oh, I feel like my money's been wasted 0:03:14.680 --> 0:03:16.400 in the bank, but I don't want to invest. I'm like, well, 0:03:16.400 --> 0:03:19.320 there's actually no unicorn middle product where it's like, oh 0:03:19.320 --> 0:03:22.280 my gosh, great returns, absolutely no risk, can pull it 0:03:22.320 --> 0:03:24.120 out whenever you want, So you can buy a house 0:03:24.200 --> 0:03:26.560 like it's not going to happen, and if it was, 0:03:26.600 --> 0:03:29.920 I'd be recommending it because it would be safer and 0:03:30.320 --> 0:03:33.840 less risky than investing in shares, and it would also 0:03:33.880 --> 0:03:35.600 be better than the bank. So you would have heard 0:03:35.640 --> 0:03:38.640 this from me already. I promise there are a couple 0:03:38.680 --> 0:03:40.720 of ways about going about it, though. You could be 0:03:40.720 --> 0:03:43.520 looking at maybe less risky shares and having a more 0:03:43.560 --> 0:03:47.400 conservative portfolio so that you are exposed to a bit 0:03:47.440 --> 0:03:49.800 more risk, but you're also not, you know, in a 0:03:49.840 --> 0:03:54.040 super high growth portfolio that's arguably going to see more fluctuation. 0:03:54.680 --> 0:03:57.000 But I think it's really important to understand what your 0:03:57.000 --> 0:04:00.320 timeframes on different goals are and if you're saying should 0:04:00.320 --> 0:04:04.480 I be investing, I believe, from my personal opinion, yes, 0:04:04.600 --> 0:04:07.200 at some point you need to start investing for our future. 0:04:07.240 --> 0:04:10.280 If you've got superannuation, you are pretty an investor, and 0:04:10.320 --> 0:04:13.320 we should be thinking about our financial future as a whole, 0:04:13.680 --> 0:04:16.240 not just prioritizing. I want a house, I don't want 0:04:16.240 --> 0:04:18.680 a car, and so every single dollar I earn goes 0:04:18.720 --> 0:04:22.720 into that again, bigger conversation. I can't give direct advice, 0:04:22.760 --> 0:04:26.400 but that's what I would say when we start thinking 0:04:26.440 --> 0:04:27.440 about that concept. 0:04:27.720 --> 0:04:31.200 Okay, so it's not then completely wasted in the bank, 0:04:31.279 --> 0:04:33.840 Like it's okay to leave it there, it's okay to just. 0:04:33.839 --> 0:04:36.880 Have savings, especially if you're saving for home deposit or 0:04:36.920 --> 0:04:39.840 you are saving for your first car. In fact, something 0:04:39.880 --> 0:04:42.320 that I think is really important to talk about is 0:04:42.720 --> 0:04:46.400 your first home deposit or your first one hundred thousand 0:04:46.400 --> 0:04:49.320 dollars worth of savings are going to be the hardest. 0:04:49.640 --> 0:04:51.640 They're going to be the hardest because you don't see 0:04:51.640 --> 0:04:54.799 any compounding. You don't see any return on the money 0:04:54.839 --> 0:04:57.720 that you have saved or invested in the short term. 0:04:57.760 --> 0:05:00.839 Whereas after that, I promise everything thing is so much 0:05:00.880 --> 0:05:04.080 easier because a five percent return on five grand not 0:05:04.200 --> 0:05:06.880 that much. But when we start looking at five percent 0:05:06.920 --> 0:05:09.800 return on one hundred thousand dollars, you're like, oh, that 0:05:09.920 --> 0:05:12.560 seems to be a fair bit, and it starts to 0:05:12.680 --> 0:05:15.919 compound over time. So what we want to do is, 0:05:16.040 --> 0:05:19.000 if you're in your early twenties, it can feel like 0:05:19.040 --> 0:05:22.440 a long slog, it can feel like you want better returns, 0:05:22.760 --> 0:05:25.760 but it's about being consistent. And if the plan is 0:05:25.800 --> 0:05:29.039 to get into the property market, great, go with that. 0:05:29.360 --> 0:05:32.280 Save for your first home, get there. That property is 0:05:32.320 --> 0:05:35.400 then going to, hopefully if you've bought a good property, 0:05:35.760 --> 0:05:38.400 increase in value, or it might be an investment property 0:05:38.400 --> 0:05:41.440 that then generates you income, but if it increases in value, 0:05:41.480 --> 0:05:44.279 then we have what's called leverage, so we can start 0:05:44.360 --> 0:05:47.520 borrowing against an asset so you don't have to start 0:05:47.520 --> 0:05:50.280 from scratch again. And the same thing can be said 0:05:50.320 --> 0:05:52.840 to be true in the share market, where your first 0:05:52.839 --> 0:05:55.479 one hundred thousand dollars is the hardest to earn and 0:05:55.520 --> 0:05:58.719 the hardest to actually get into the market, and once 0:05:58.800 --> 0:06:02.080 you have surpassed that, everything becomes a little bit easier 0:06:02.200 --> 0:06:05.520 because your shares start to compound and your dividends start 0:06:05.560 --> 0:06:09.240 to reinvest and you start to actually seek growth. Whereas 0:06:09.360 --> 0:06:11.040 you know, when we are dealing with and I'm not 0:06:11.120 --> 0:06:14.280 calling them small by any stretch to the imagination, but 0:06:14.440 --> 0:06:16.520 in this day and age, I think it's really important 0:06:16.520 --> 0:06:18.680 for me to be quite direct about this. It's going 0:06:18.720 --> 0:06:21.000 to be hard, and there are going to be decisions 0:06:21.040 --> 0:06:23.280 that you need to make along this journey where you go, oh, 0:06:23.320 --> 0:06:26.480 I'd really like to invest and get some returns, but like, 0:06:26.560 --> 0:06:28.720 it's actually not worth it in the short term because 0:06:28.720 --> 0:06:31.719 it's car, or it's a house deposit, or it's actually 0:06:31.760 --> 0:06:33.120 allocated to something else. 0:06:33.440 --> 0:06:37.240 Yeah, so probably creating a three year strategy is not 0:06:37.760 --> 0:06:39.320 going to be that beneficial. 0:06:40.080 --> 0:06:42.760 No, I don't think so. Especially if you're saying I 0:06:42.800 --> 0:06:46.000 would like to expose an asset to the shed market 0:06:46.040 --> 0:06:48.839 for less than five years, I'd probably really shy away 0:06:48.880 --> 0:06:51.960 from that because I am really adverse to risk and 0:06:52.000 --> 0:06:55.960 I wouldn't want you taking unnecessary risk. But in saying that, 0:06:56.000 --> 0:06:58.960 if it was anything more than that, absolutely considers something 0:06:59.000 --> 0:07:01.320 that could help you a lot. That journey, that's in 0:07:01.400 --> 0:07:03.200 line with your risk profile. 0:07:03.440 --> 0:07:07.600 Beautiful. All right, good luck with the home ownership journey, Bonnie. 0:07:07.839 --> 0:07:11.520 We are rooting for you. Okay. Vanessa is our next 0:07:11.640 --> 0:07:15.560 question here, v Lord. She wants to know the pros 0:07:15.600 --> 0:07:19.400 and cons of renting, specifically in retirement. So we did 0:07:19.400 --> 0:07:22.679 a podcast on this on Renting Forever a few weeks 0:07:22.720 --> 0:07:25.720 ago now of a few months. Even she says she's 0:07:25.720 --> 0:07:27.800 always been taught that it's better to have a home 0:07:27.880 --> 0:07:29.720 of your own when you do retire, so you're not 0:07:29.720 --> 0:07:32.920 paying rent out of either your investments or your pensions 0:07:32.960 --> 0:07:35.600 and so on. So what are the pros and cons 0:07:35.680 --> 0:07:37.480 v of renting in retirement? 0:07:37.960 --> 0:07:40.840 So there are a number, and she's actually correct. We 0:07:40.960 --> 0:07:43.760 did not talk about the benefits of renting or the 0:07:43.880 --> 0:07:47.160 cons of renting when you are retired. Because obviously that 0:07:47.200 --> 0:07:49.640 would mean that you had to have capital to pay 0:07:49.680 --> 0:07:52.600 for the rent, right, But if we're working towards a 0:07:52.720 --> 0:07:56.440 safe and comfortable retirement, we will always have funds available. 0:07:56.520 --> 0:08:00.960 Like that's the purpose of financial security and creating financial freedom. 0:08:01.240 --> 0:08:03.200 So if we are talking about the pros of renting 0:08:03.240 --> 0:08:06.080 in retirement, obviously you're going to have the flexibility to 0:08:06.120 --> 0:08:08.440 move around and live a lifestyle you want when you 0:08:08.480 --> 0:08:10.400 are younger. You don't have to save up for a 0:08:10.400 --> 0:08:13.000 house deposit and then pay back a mortgage. A lot 0:08:13.040 --> 0:08:14.880 of people will say, oh, my gosh, but the I 0:08:14.920 --> 0:08:17.120 want to own a house outright, so that the pension 0:08:17.280 --> 0:08:19.560 is all mine or my super money is all mine 0:08:19.600 --> 0:08:22.680 and it's not being spent on accommodation. Like, Okay, each 0:08:22.800 --> 0:08:24.560 to their own. I think that there are a number 0:08:24.600 --> 0:08:27.720 of benefits to just owning your own things. But let's 0:08:27.760 --> 0:08:29.840 be honest, that is a privilege that is denied to 0:08:29.920 --> 0:08:32.360 so many of us. And it's actually kind of cool 0:08:32.559 --> 0:08:35.680 that through to retirement we can rent. Like, at the 0:08:35.840 --> 0:08:38.199 end of the day, being able to rent just means 0:08:38.200 --> 0:08:40.880 that we need to allocate our budget consistently so that 0:08:40.920 --> 0:08:43.680 we actually take into account that expense and you know, 0:08:44.000 --> 0:08:47.359 maybe once you become retired, if you are a homeowner, 0:08:47.480 --> 0:08:49.560 that expense drops off, but it doesn't mean you have 0:08:49.600 --> 0:08:53.120 no expenses. You're going to still need an income. Whereas 0:08:53.160 --> 0:08:56.240 if you are retiring and you haven't purchased a property 0:08:56.400 --> 0:08:59.640 that is your live in forever property, you're going to 0:08:59.679 --> 0:09:02.200 need to budget for a home, right, you're going to 0:09:02.240 --> 0:09:05.240 need budget for accommodation. But the idea that that can 0:09:05.280 --> 0:09:08.320 then be far more flexible is really appealing. So the 0:09:08.360 --> 0:09:10.320 idea that you could go, okay, cool, like rent's a 0:09:10.320 --> 0:09:12.520 bit expensive and I want to change my lifestyle, you 0:09:12.559 --> 0:09:15.120 can do that very easily. You could scale up as 0:09:15.120 --> 0:09:17.720 well if you had more disposable income than you thought, 0:09:18.120 --> 0:09:20.839 maybe rent a bougie apartment in comparison to the house 0:09:20.880 --> 0:09:24.720 that you'd been renting. And then obviously the maintenance costs 0:09:24.760 --> 0:09:26.880 that come along with a home you wouldn't have to 0:09:26.920 --> 0:09:30.120 take into consideration because that would be the landlord's responsibility. 0:09:30.480 --> 0:09:33.600 But when it comes to cons obviously a landlord could 0:09:33.640 --> 0:09:36.199 bump up the rent or sell your home, which could 0:09:36.240 --> 0:09:40.040 be a massive headache. Especially as you're getting older, you 0:09:40.120 --> 0:09:42.679 might need a greater amount of superannuation to live off 0:09:42.720 --> 0:09:45.760 because you will be paying rent as well as compared 0:09:45.760 --> 0:09:49.120 to having a mortgage paid off. But again, maybe if 0:09:49.160 --> 0:09:51.360 you're a bit younger and you're in this situation where 0:09:51.360 --> 0:09:54.560 we are planning for retirement, the plan of purchasing a 0:09:54.600 --> 0:09:58.680 home paying off a home might actually be far more 0:09:59.000 --> 0:10:03.000 financially than planning to rent in retirement. So that's where 0:10:03.000 --> 0:10:05.720 we need to and in financial advice Land, we actually 0:10:05.800 --> 0:10:09.880 project these things out and do analysis where we go, okay, cool, 0:10:09.920 --> 0:10:12.120 what would that look like in the future if we 0:10:12.160 --> 0:10:15.600 sat Georgia down now and she invested XYZ, What would 0:10:15.600 --> 0:10:18.400 it mean if we changed this particular part of her circumstance. 0:10:18.600 --> 0:10:21.280 What do it mean if she rented forever instead of 0:10:21.320 --> 0:10:23.559 making a family home purchase. What do I mean if 0:10:23.559 --> 0:10:25.800 she made a family home purchase? What would her cash 0:10:25.800 --> 0:10:28.320 flow look like? What would her budgeting look like? I 0:10:28.360 --> 0:10:30.920 think it is very important to take into consideration all 0:10:31.200 --> 0:10:34.360 the options if that's in line with your values, and 0:10:34.520 --> 0:10:38.320 also remembering that if we own a family home and 0:10:38.440 --> 0:10:41.160 we do need to claim sent link or a pension, 0:10:42.120 --> 0:10:49.040 that family home's value is not taken into consideration. So hypothetically, Georgia, 0:10:49.120 --> 0:10:51.400 if you have a lot of super and you're not 0:10:51.559 --> 0:10:53.959 able to claim the pension, but you actually need to 0:10:54.040 --> 0:10:56.000 because it's like a lot of super but not enough 0:10:56.000 --> 0:10:58.480 super for you to pay for your retirement. If you 0:10:58.559 --> 0:11:01.720 then purchased a house with that superranuation money, you could 0:11:01.720 --> 0:11:05.080 potentially then claim the pension as well, because that asset 0:11:05.240 --> 0:11:08.400 is not taken into consideration when working out whether you 0:11:08.440 --> 0:11:11.200 get the pension or not. It's other assets outside of that, 0:11:11.280 --> 0:11:14.559 So talking about that as obviously a benefit of owning 0:11:14.800 --> 0:11:20.560 instead of renting, and then also AFSA, So the Australian 0:11:20.600 --> 0:11:24.000 Financial Services Authorities calculations say that if you're renting in 0:11:24.040 --> 0:11:26.800 Sydney as a couple, you would need a total of 0:11:27.120 --> 0:11:30.520 one million, one hundred and sixty six thousand dollars to retire, 0:11:30.920 --> 0:11:33.880 and singles would need one million and forty five thousand 0:11:33.880 --> 0:11:37.040 dollars to retire, which would then cover their rent to 0:11:37.120 --> 0:11:41.679 live a quote comfortable lifestyle. And obviously Sydney is our 0:11:41.679 --> 0:11:44.960 most expensive city in the country, but it's worth thinking 0:11:44.960 --> 0:11:47.760 about and maybe if you are renting and those figures 0:11:47.880 --> 0:11:50.480 are out of reach, then living rigidly might be a 0:11:50.640 --> 0:11:54.439 smarter idea financially. So I think when we start to 0:11:54.480 --> 0:11:57.400 break it down and talk about it, like how much 0:11:57.440 --> 0:11:59.560 would it cost you to buy a house in the 0:11:59.559 --> 0:12:03.040 location that you live? So example, if you live regionally 0:12:03.040 --> 0:12:06.920 and houses cost three hundred grand, that's very different Georgia 0:12:07.080 --> 0:12:09.760 than saying, Okay, the average house price in my area 0:12:09.800 --> 0:12:12.120 is a million dollars, so I need to save a 0:12:12.160 --> 0:12:14.400 million dollars purchase property, and then I'm also going to 0:12:14.440 --> 0:12:18.160 need a million dollars in super to live comfortably, Like 0:12:18.320 --> 0:12:20.719 which one is it? What are we prioritizing? How is 0:12:20.760 --> 0:12:23.160 that going to work? Because it's not one or the other, 0:12:23.280 --> 0:12:27.839 it's which situation is going to work best for us? Gotcha? 0:12:27.880 --> 0:12:31.760 Our next question here V is from Claire. So she 0:12:32.080 --> 0:12:34.400 is at a stage in life where she can start 0:12:34.480 --> 0:12:38.040 investing in shares, and she is wondering if it's better 0:12:38.040 --> 0:12:40.920 to concentrate on building her super as it's pretty low 0:12:40.960 --> 0:12:43.520 at the moment, or if she should buy shares outside 0:12:43.520 --> 0:12:43.960 of Super. 0:12:44.360 --> 0:12:48.319 Claire, Claire, Claire. What is with you guys asking specific 0:12:48.440 --> 0:12:52.720 financial advice questions which I'm legally not allowed to answer, 0:12:53.120 --> 0:12:56.480 Like if it is about you, my friends, I cannot 0:12:56.559 --> 0:12:58.400 give you a direct answer. And that's not a bad thing. 0:12:58.440 --> 0:13:00.480 I'm not lying coming at Claire or any But I 0:13:00.559 --> 0:13:03.320 do want to point out I'm not trying to skirt 0:13:03.360 --> 0:13:05.160 around the issue, guys. I'm not trying to be like, 0:13:05.160 --> 0:13:09.360 oh my gosh, I'm not going to answer Claire's question directly. Legally, 0:13:09.400 --> 0:13:12.160 I can't because I haven't looked at Claire's personal situation, 0:13:12.480 --> 0:13:14.480 haven't done a fact find. I don't know what other 0:13:14.559 --> 0:13:17.800 assets Claire owns. I don't know what her income looks like. 0:13:17.880 --> 0:13:21.000 I don't know even what superanuation fund she's in. So 0:13:21.040 --> 0:13:24.200 it would be incredibly irresponsible of me to be like, 0:13:24.320 --> 0:13:27.400 Claire put more in super like. I don't know that, 0:13:27.559 --> 0:13:30.280 And the answer to that question, if I answer it directly, 0:13:30.960 --> 0:13:34.440 could be not in her best interests, which is really 0:13:34.520 --> 0:13:36.520 upsetting because I would love to be like, Okay, George, 0:13:36.559 --> 0:13:38.679 this is what you do. This is how you create 0:13:38.760 --> 0:13:41.760 financial freedoms. Follow step A, B, C, and D, and 0:13:41.880 --> 0:13:44.079 you are going to be golden like. I wish I 0:13:44.120 --> 0:13:46.280 could answer it that way, Unfortunately I can't. So this 0:13:46.360 --> 0:13:49.079 is the way we're going to do it today. So Claire, 0:13:49.200 --> 0:13:51.720 my friend, you are going to have a think about 0:13:51.720 --> 0:13:55.240 your future and what you want to achieve. Supernuation is 0:13:55.280 --> 0:13:58.440 a brilliant tax vehicle. Did you hear that Georgia I 0:13:58.480 --> 0:14:02.200 did not call superannuation investment. I said it was a 0:14:02.240 --> 0:14:06.080 tax vehicle, which is essentially what it is. To me. 0:14:06.440 --> 0:14:10.600 Superranuation is not an investment. It is a tax structure 0:14:10.880 --> 0:14:14.959 which enables you to pay fifteen cents on every dollar 0:14:15.080 --> 0:14:18.600 instead of your marginal tax rate on the money that 0:14:18.640 --> 0:14:22.040 you put into superranuation, which is then invested on your 0:14:22.080 --> 0:14:26.160 behalf by a superanuation fund that manages that money. So 0:14:26.280 --> 0:14:28.320 we need to look at super and go, okay, cool, 0:14:28.920 --> 0:14:31.280 this is a great tax structure the moment. If you're 0:14:31.320 --> 0:14:35.280 not paying any tax, then it doesn't really matter too 0:14:35.400 --> 0:14:38.360 much where you're investing because you're already not paying much tax. 0:14:38.800 --> 0:14:41.800 But it might be beneficial for you tax wise to 0:14:41.800 --> 0:14:44.360 put some more money into super because the tax difference 0:14:44.440 --> 0:14:47.240 is obviously quite significant because you could be earning more 0:14:47.280 --> 0:14:49.640 than one hundred and eighty grand and paying the top 0:14:49.760 --> 0:14:52.640 marginal tax rate. So it kind of makes sense to 0:14:52.720 --> 0:14:55.520 start considering that as an option. But the other thing 0:14:55.560 --> 0:14:58.360 with supranuation is we need to remember that you cannot 0:14:58.400 --> 0:15:02.160 access that until you're sixty and properly at sixty five, 0:15:02.720 --> 0:15:05.320 So are you willing to wait that long for your 0:15:05.400 --> 0:15:09.480 future financial freedom. If the answer is no, that's okay. 0:15:09.640 --> 0:15:11.920 It's still a priority. It is still something that we 0:15:11.960 --> 0:15:15.440 are contributing to constantly. I mean it's now ten percent 0:15:15.480 --> 0:15:19.760 of our incomes that get put into superannuation, which is significant. 0:15:19.920 --> 0:15:22.000 I don't know anyone Georgia who can turn around and 0:15:22.040 --> 0:15:24.520 be like, oh my gosh, since I started working, I 0:15:24.560 --> 0:15:28.000 have been investing ten percent of my income. That's what 0:15:28.040 --> 0:15:30.800 we're doing with SUPER Like. We need to care about 0:15:30.840 --> 0:15:33.480 it more so from my perspective, we need to work 0:15:33.520 --> 0:15:37.000 out what that looks like and pick an investment strategy 0:15:37.360 --> 0:15:40.000 or pick a way of investing, whether that's more into 0:15:40.040 --> 0:15:42.760 super or going and getting a platform with shares these 0:15:42.800 --> 0:15:45.600 or going and setting up six Park or going on Superhero. 0:15:45.760 --> 0:15:48.600 It doesn't matter which one it is. You need to 0:15:48.680 --> 0:15:51.520 work out what is going to work best for you. So, Claire, 0:15:51.520 --> 0:15:54.520 my friend, if you want to start investing in shares, 0:15:54.880 --> 0:15:58.960 that's super exciting, but have a think about where you 0:15:59.160 --> 0:16:01.760 want to see those returns. If you want to access 0:16:01.800 --> 0:16:05.120 that before retirement, then go and do that. There isn't 0:16:05.120 --> 0:16:07.120 a right or wrong. It is down to your values. 0:16:07.120 --> 0:16:09.200 I'm sorry, George, you need to pick questions where I 0:16:09.200 --> 0:16:12.320 don't have to be elusive. No, that was good. 0:16:12.360 --> 0:16:13.920 I feel like Claire would have gotten a little bit 0:16:13.920 --> 0:16:14.920 out of that, So thank you. 0:16:15.400 --> 0:16:15.720 VD. 0:16:16.760 --> 0:16:19.840 Let's move on here to quite an interesting question that's 0:16:19.880 --> 0:16:23.840 come from sim. She is after some finance tips for 0:16:24.040 --> 0:16:28.160 neurodivergent people. So she said, for example, people with ASD 0:16:28.480 --> 0:16:31.920 or ADHD. So what are your tips here, V, because 0:16:31.920 --> 0:16:33.400 we haven't spoken about this before. 0:16:33.720 --> 0:16:36.680 Yeah, okay, So I think that this one is an 0:16:36.720 --> 0:16:40.240 interesting topic to cover because there are so many neurodivergent 0:16:40.320 --> 0:16:43.160 people in our community, and often you don't know who 0:16:43.160 --> 0:16:47.120 they are. Neurodivergence could be lots of different things. So 0:16:47.160 --> 0:16:50.600 there are several types of recognized neurodivergence. So there are 0:16:50.600 --> 0:16:56.600 things from autism and aspergers to dyslexia, epilepsy, you've got hyperlexia, 0:16:56.640 --> 0:16:59.640 You've got things like Tourette's and obsessive compulsive disorder, and 0:16:59.640 --> 0:17:03.400 then AD and ADHD, which are two very different things 0:17:03.400 --> 0:17:06.280 that do different things if you look it up. Even 0:17:06.400 --> 0:17:12.399 left handedness is considered being neurodivergent, which is interesting that 0:17:12.480 --> 0:17:16.199 I'm taking from that is me, as a left hander neurodivergent. 0:17:16.840 --> 0:17:19.840 Obviously I am perfect person to talk about this, but 0:17:19.880 --> 0:17:22.959 more specifically, I do actually have two degrees in psychology 0:17:23.000 --> 0:17:26.280 Georgia and I've actually studied neurodivergence, which is really interesting. 0:17:26.400 --> 0:17:31.000 So from what I understand, when we talk about neurodivergence, 0:17:31.080 --> 0:17:33.040 it would be very hard for me to go, Okay, cool, 0:17:33.080 --> 0:17:36.000 if you're a neurodivergent, here's the answer, Because someone who 0:17:36.080 --> 0:17:39.840 has autism versus someone who has ADD or even ADHD 0:17:40.240 --> 0:17:44.000 or dyslexia, it's all very different. The advice is going 0:17:44.040 --> 0:17:46.280 to be very different. But I think what we are 0:17:46.280 --> 0:17:49.600 going to discuss here is ADHD because I feel like 0:17:49.640 --> 0:17:55.120 there's been a very big surge of diagnoses of ADHD recently, 0:17:55.200 --> 0:17:59.040 particularly for women, because we are learning more about what 0:17:59.119 --> 0:18:03.040 those markers are, those indicators look like for them. So, 0:18:03.560 --> 0:18:07.480 from what I understand about ADHD, people with this, they 0:18:07.520 --> 0:18:10.919 struggle when it comes to things like concentrating, impulsivity, and 0:18:11.080 --> 0:18:14.359 over activity, and that means that money management can be 0:18:14.560 --> 0:18:17.320 super tough. It can mean that the concentration that is 0:18:17.440 --> 0:18:20.919 required to manage money is just not going to be 0:18:20.960 --> 0:18:24.480 able to be given. And impulsive spending for people with 0:18:24.600 --> 0:18:28.240 ADHD is a massive issue. I have spoken to so 0:18:28.359 --> 0:18:31.880 many people in our community who have ADHD and they're 0:18:31.880 --> 0:18:35.880 like Victoria, I cannot get my impulsive spending under control. 0:18:36.119 --> 0:18:39.320 So it makes sense that neurodivergent people do really struggle 0:18:39.400 --> 0:18:41.560 with money management, and I hope that she's on the 0:18:41.560 --> 0:18:43.399 money can actually be a really safe space for you 0:18:43.520 --> 0:18:45.560 to learn about it. But I also think that when 0:18:45.640 --> 0:18:48.399 it comes to money management, one of the best ways 0:18:48.440 --> 0:18:50.800 to deal with this is automation. We need to put 0:18:50.840 --> 0:18:53.360 a plan in place that actually works for us when 0:18:53.400 --> 0:18:56.600 we aren't able to work with it. So that means 0:18:56.640 --> 0:18:59.639 setting up a banking structure that makes sense. This is 0:18:59.680 --> 0:19:02.000 something that I have worked with for a number of 0:19:02.119 --> 0:19:04.960 years now. It's actually one of the reasons I started 0:19:04.960 --> 0:19:07.560 building my budget and cash Flow master class to actually 0:19:07.640 --> 0:19:09.520 get on top of these things because I have a 0:19:09.600 --> 0:19:13.879 number of clients that are neurodivergent and it's about automating things. 0:19:14.160 --> 0:19:16.760 So when it comes to bills, putting them on direct 0:19:16.760 --> 0:19:19.960 debit for people who have ADHDS really helpful because even 0:19:19.960 --> 0:19:21.600 if they get the bill and it's front of mind, 0:19:21.600 --> 0:19:23.760 they'll just put off paying it and they just won't 0:19:23.760 --> 0:19:26.720 do it because it is not in their capacity to 0:19:26.760 --> 0:19:29.720 do so. Sometimes and sometimes they get really motivated and 0:19:29.760 --> 0:19:32.920 do six million things all at one time. So one 0:19:33.119 --> 0:19:36.800 really quick win can be to automate your banking structure 0:19:36.840 --> 0:19:38.840 and set it up so that it works for you, 0:19:39.359 --> 0:19:41.879 and then setting aside a certain amount of money that 0:19:41.920 --> 0:19:44.480 you are allowed to spend, which is where my idea 0:19:44.520 --> 0:19:47.600 of the food, fuel and fun budget comes from, so 0:19:47.640 --> 0:19:50.880 that we don't end up sacrificing our longer term goals 0:19:50.960 --> 0:19:53.199 like maybe saving for a house or a holiday or 0:19:53.240 --> 0:19:57.679 a car. We don't sacrifice those because we are impulsive spenders. 0:19:57.920 --> 0:19:59.840 So we need to put a structure in place that 0:20:00.080 --> 0:20:03.160 works really well for us. Another thing that I would 0:20:03.160 --> 0:20:05.840 say is really helpful when it comes to money management 0:20:05.960 --> 0:20:08.920 is starting out with as many money apps as possible. 0:20:08.960 --> 0:20:11.640 We talk about them in our community and they can 0:20:11.720 --> 0:20:15.840 be really helpful. We've obviously spoken about Pocketbook and our 0:20:15.880 --> 0:20:21.040 friends get reminded they would be so helpful in this situation. Also, 0:20:21.200 --> 0:20:23.480 if you live in a sharehouse and struggle remembering what 0:20:23.520 --> 0:20:26.000 you owe and who to set up the app split 0:20:26.040 --> 0:20:28.240 wise with your housemates or even just your partner to 0:20:28.320 --> 0:20:30.679 keep track of your budget and what people are spending 0:20:30.720 --> 0:20:33.119 on what. And when it comes to budgeting, there are 0:20:33.160 --> 0:20:36.720 a whole heap of apps out there that are really good. Obviously, 0:20:36.760 --> 0:20:40.399