Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before
Speaker 1: we get started on She's On the Money podcast, I
Speaker 1: would like to acknowledge the traditional custodians of the land
Speaker 1: of which this podcast is recorded on a wondery country,
Speaker 1: acknowledging the elders, the ancestors and the next generation coming through.
Speaker 1: As this podcast is about connecting, empowering, knowledge sharing and
Speaker 1: the storytelling of you to make a difference for today
Speaker 1: and lasting impact for tomorrow.
Speaker 2: Let's get into it.
Speaker 3: She's on the Money, She's on the Money.
Speaker 4: Hello and welcome to She's the Money, the podcast for
Speaker 4: millennials who want financial freedom.
Speaker 2: My loves Today is Friday.
Speaker 4: Which means it is time to sit back with the
Speaker 4: girls with a bevy in hand, to unpack our favorite
Speaker 4: moments of the week and as always, to celebrate you,
Speaker 4: our incredible She's on the Money community. As always, we're
Speaker 4: going to be sharing our favorite money wins. We're going
Speaker 4: to be discussing what's making news in the finance world,
Speaker 4: and this week we're going to be answering a juicy
Speaker 4: money question from our friend Julie, all about how to
Speaker 4: best build up an emergency fund. But before we get there,
Speaker 4: as always, it is time to recap the week that was.
Speaker 2: Miss Jessica Rici.
Speaker 4: What happened on Money Diaries this week? So Monday's diarist
Speaker 4: was a little spicy. She has an only fan and
Speaker 4: she has been killing game. She's a single mum, she
Speaker 4: bought a house, an investment property, a land rover, and
Speaker 4: she did it all within twelve She wich.
Speaker 2: Is pretty wild.
Speaker 4: I feel like we've done a couple of OnlyFans diaries
Speaker 4: before and people always find them super interesting. Yeah, because
Speaker 4: we like being perfect, most of us are going to
Speaker 4: be like, oh, we would never do that, Like we
Speaker 4: don't judge people who do, but we'd never do that.
Speaker 4: But I want to know how you make money. Like
Speaker 4: even I get a little bit pervy. I'm like, how
Speaker 4: much money do you make? That's sick? I think so,
Speaker 4: and I think it's worth noting we sometimes get people
Speaker 4: sending us slightly terse messages when we do these kinds
Speaker 4: of things, and it's not about glamorizing a certain lifestyle.
Speaker 4: But in our office, we really view sex work as
Speaker 4: just another form of work and just like we would
Speaker 4: have any other diarist not to talk about their job.
Speaker 4: That's what this one did exactly. And if someone writes
Speaker 4: into our show and says, hey, I've got this great
Speaker 4: money diary, great, come on the show. If you want
Speaker 4: more content from more diverse areas, put it on the show.
Speaker 4: Come and write into us. Like we only share what
Speaker 4: people are comfortable with. If people are comfortable sharing their
Speaker 4: stories about only fans, I'm.
Speaker 2: Gonna give you that platform.
Speaker 4: I love exactly right, And it was really cool to
Speaker 4: see as a mum and how she kind of navigated
Speaker 4: that world. She was very candid, which we really appreciated,
Speaker 4: and it was a coole listen.
Speaker 2: I really enjoyed it.
Speaker 4: I always enjoy them, maybe because I'm pervy, but also
Speaker 4: because I just I love money diaries in general, So
Speaker 4: I want to know what doing with money tell me.
Speaker 1: All right?
Speaker 4: Moving on, on Wednesday, we had a little bit of
Speaker 4: a deep dive. Missed Georgia King. What happened on Wednesday?
Speaker 2: Hello ladies.
Speaker 3: This Wednesday we spoke all about employee riots, which was
Speaker 3: super interesting. We spoke about industry awards and agreements, superannuation,
Speaker 3: oh and s unfair dismissal the Fair Work Tribunal and
Speaker 3: plenty plenty more. It was really really empowering, was my
Speaker 3: main takeaway from that map, because we just don't know
Speaker 3: what we're entitled.
Speaker 4: To a lot of the time, you don't know what
Speaker 4: you don't know, you don't know my content like this exists, so.
Speaker 2: That then you know what you know, and then your
Speaker 2: employees exactly, we love that.
Speaker 4: Get what you deserve, queens, Yes sir? All right, moving
Speaker 4: on to my second favorite part of the week, because
Speaker 4: obviously Money Diaries is number one. Always, Miss Georgia King,
Speaker 4: it is time for you to share some of your
Speaker 4: budget direct money wins and conveissions of the week.
Speaker 3: What have you brought out this week for us? Got
Speaker 3: some goodies, girlies. So the first win of the week
Speaker 3: comes from Leah. I resonate with this one. So much
Speaker 3: money win my football team loss. So I saved four
Speaker 3: hundred dollars on Grand Final tickets, trying to spin it
Speaker 3: the best way I can money win.
Speaker 2: Feel that pain. She for Melbourne, bloody losers.
Speaker 3: Sorry, I go for Melbourne too, just in case you
Speaker 3: do later. I'm not being mean, I'm just being mean
Speaker 3: to my.
Speaker 4: Real nasty crying to yourself. Yeah, was that the one
Speaker 4: pointer was that that game?
Speaker 2: No, that was that was who's in the Grand Final?
Speaker 2: Should I know that?
Speaker 3: You should Sydney and Geelong go, go Weside.
Speaker 4: Get Belongham Gal.
Speaker 2: You didn't even know that till right then.
Speaker 1: Yeah.
Speaker 4: But as a Westie, you gotta you gotta, you gotta
Speaker 4: put your boys killed us. So I don't follow the
Speaker 4: football because I just know I'll be disappointed.
Speaker 2: Fair enough.
Speaker 3: The next win of the day comes from Tijana money Win.
Speaker 3: I followed up with two of the places I booked
Speaker 3: my twenty twenty euro trip with before COVID they only
Speaker 3: offered credits as great laws changed following the pandemic. I
Speaker 3: had a total of three thousand dollars refunded back to
Speaker 3: me in less than a week.
Speaker 4: Oh my got money, and you didn't even know you're
Speaker 4: going to get that.
Speaker 3: She probably assumed it was gone. That's a real bonus.
Speaker 3: Enjoy that, Tiana. The next win comes from Teeley money Win.
Speaker 3: I rang and asked my bank to reduce my interest rate.
Speaker 3: They sat, moved, smart move, very smart move. They said
Speaker 3: a drop from four point one eight percent to three
Speaker 3: point six percent would be a go pretty good. But
Speaker 3: then she suggested that Athenis rates were three point.
Speaker 2: Two nine percent.
Speaker 3: They said they're going to match that rate. Oh fifteen minute,
Speaker 3: Cole saved me a whole lot of Muller.
Speaker 4: Yeah, and you're just a little bit of googling and
Speaker 4: you've got a comparison to throw their way. Often in
Speaker 4: banking world, they can't suggest the rate that it goes
Speaker 4: down to. You actually have to put it on the table.
Speaker 4: So they'll have like their little schedule And if Georgia
Speaker 4: King called up and said, don't want a better deal,
Speaker 4: they're like, oh, we could drop it to X. But
Speaker 4: if you bring up a comparison, then they actually have
Speaker 4: to consider it, or so I have heard. Because they're
Speaker 4: not going to bring up their competitors to a client.
Speaker 2: Yeah yeah, yeah, not a smart idea.
Speaker 4: But if you bring up their competitors and you're like,
Speaker 4: I might leave. Look how good this other company is,
Speaker 4: what are they going to do?
Speaker 2: Juicy?
Speaker 4: That's a hot tip from Vedi there, ladies can't give
Speaker 4: a way too many.
Speaker 3: We've got a whole The next wee and it comes
Speaker 3: from Monique. I needed to have two wisdom teeth removed
Speaker 3: at the public Community dentist and it didn't end up
Speaker 3: costing me a cent.
Speaker 1: What.
Speaker 3: I've had a very easy recovery with no swelling or bruising.
Speaker 3: Wish I could say to see for myself.
Speaker 4: Yeah, we've had this conversation very recently on the podcast.
Speaker 2: We were just excited about dental health. Jessica.
Speaker 3: Oh yeah, I feel like I remember asking you, guys,
Speaker 3: if you go to the dentist. Yeah, yes, the dentists,
Speaker 3: you know, somevery decade or so.
Speaker 2: That's just to do it moving the.
Speaker 3: Next week and it comes from Beck and money win.
Speaker 3: I got big w to price match with office works.
Speaker 3: I saved eleven dollars upfront plus fuel costs. I don't
Speaker 3: really get the fuel part of that, but that's okay.
Speaker 2: Let's fuel costs.
Speaker 3: I don't know, maybe driving fuel document, maybe the body.
Speaker 3: Maybe that's it just is way more switched on them.
Speaker 2: We'll ever be.
Speaker 3: She's on the money. Guys, How how do you actually
Speaker 3: price match? Though?
Speaker 4: You just go up to a customer like you're right,
Speaker 4: you as the customer. We do it all the time
Speaker 4: and yeah, yeah, do you just say do you price match?
Speaker 4: Or like generally I will have googled ahead of time
Speaker 4: and I know that you price match and if they go,
Speaker 4: oh no, we don't go oh really because it sounds
Speaker 4: like your website, you do.
Speaker 2: I'm still so awkward about it.
Speaker 4: We did this the other day because I needed We
Speaker 4: got a new staff member and I had to go
Speaker 4: buy another laptop at JB Hi Fi. Right, so I
Speaker 4: googled the laptop and on my phone I had screenshot
Speaker 4: the price of another competitor. I knew what I was
Speaker 4: going to do. Anyway, walking and ask for the laptop.
Speaker 4: They're like, yep, no worries. And then he said to
Speaker 4: the guy, Oh, I don't mean to be awkward, but like,
Speaker 4: I know you price match, so I just wanted to
Speaker 4: show you this and he's like, oh, he's like, actually
Speaker 4: know who you are. So I fully expected this. I
Speaker 4: expected this. He's like, you're living up to your name.
Speaker 4: And I was like, oh, it's so embarrassing. But anyway, yeah,
Speaker 4: I do as I say, don't worry.
Speaker 2: Exactly right.
Speaker 3: We'd love to see it. The last one for the day, ladies.
Speaker 3: It's a win loss win, and it comes from risk
Speaker 3: win lost. Yeah, exactly right, as the feedback win. The
Speaker 3: first win is I got a refund check for a
Speaker 3: surgery I had last year.
Speaker 2: In the mail.
Speaker 3: Great win win, I guess the loss. I got a
Speaker 3: speeding fine in the mail on the same day. It
Speaker 3: was her first in about ten years while running errands
Speaker 3: for her friend who had COVID, so she's a good woman.
Speaker 3: And then finally, the last win was that the fine
Speaker 3: wasn't as much as the refund, so she's still ahead
Speaker 3: and she wasn't expecting the money.
Speaker 2: So that's it for the week, lady. That's all we've got.
Speaker 4: George King, as always, it has been an absolute delight
Speaker 4: celebrating some of your budget Direct money wins. Budget Direct
Speaker 4: a winner of can Stars Insurer of the Year Award
Speaker 4: twenty twenty two. Budget Direct Insurance Solved. How about we
Speaker 4: go to a really quick break and straight after this,
Speaker 4: I want to talk about emergency funds. We have some
Speaker 4: news from Georgia King, and I'm going to bring up
Speaker 4: Ki Kardashian. Don't go anywhere, all right, two pieces of
Speaker 4: news for you guys this week, one from me and
Speaker 4: one from the lovely Georgia King. You're making a sad
Speaker 4: face with me across the table. I know, George, share
Speaker 4: with the family. What have you got to say?
Speaker 2: I'm going to cry? I am moving on from She's
Speaker 2: on the money. Oh my god, I'm actually going to
Speaker 2: be I've just set it out. Yeah my god, i am.
Speaker 4: Stop. You're gonna make me cry for ages, obviously, and
Speaker 4: it's really sad. It is really sad, but very exciting
Speaker 4: as well.
Speaker 3: I feel like I've also kind of made it sound
Speaker 3: like the girlies have fired me.
Speaker 2: A little bit, pushing me off. The opposite is true.
Speaker 2: This was a choice that you made.
Speaker 4: I have been desperado in the background, trying to get
Speaker 4: her to stay.
Speaker 2: No.
Speaker 3: No, turns out she's a hot woman in a hot demand,
Speaker 3: but no. So it's just it's come time for me.
Speaker 3: I'm not going anywhere soon. I'm going to be hanging
Speaker 3: around and sharing the job with Jess for a little
Speaker 3: while longer, so you're stuck with me for a while
Speaker 3: to come. The decision was basically made because I want
Speaker 3: to start concentrating on my journalism a little bit more seriously,
Speaker 3: and I've just been burning the candle at both ends.
Speaker 3: I don't know if I've sounded tired on the podcast,
Speaker 3: but haven't you always sound like a delight Thanks guys.
Speaker 3: But yeah, it's just it's time time felt right? How
Speaker 3: fun that when you started, Like when I was listening
Speaker 3: as a listener to the podcast, you were introducing yourself
Speaker 3: as I'm Georgia King, I'm a journalism student, and you're.
Speaker 2: Like, I'm Master of Journalists.
Speaker 4: I'm Georgia King, a journalist.
Speaker 2: Yeah, I guess, I guess that's true. It's so cool.
Speaker 2: It is so cool.
Speaker 4: And I mean, George, you're not going far like hop
Speaker 4: skip and a jump away. You're still one of my
Speaker 4: little sister's best friends. So good luck being rid of me,
Speaker 4: and hopefully we can drag her on the show for
Speaker 4: like little cameos. Maybe if our engagement goes down, Jess,
Speaker 4: bring George. But you're leaving the show, but you're not
Speaker 4: leaving the communities. Absolutely not mad about it. She'd still
Speaker 4: be floating around. You might see her in the audience
Speaker 4: at a few she's on the money events because lord no,
Speaker 4: she always get a ticket.
Speaker 2: But I'm really sad. I hate this. Oh, I know,
Speaker 2: I know.
Speaker 3: But yeah, as you've said, you're not getting rid of me.
Speaker 3: I still be loitering in the background events and stuff.
Speaker 3: But also I just wanted to say a big thank
Speaker 3: you to both Victoria and jord I can't but also
Speaker 3: to the amazing community.
Speaker 2: Oh my god, the voice. This is way harder than
Speaker 2: I expected it to hot.
Speaker 3: But yeah, also to the community who have been so
Speaker 3: welcoming of me since the start, and I think we
Speaker 3: should talk about something else before I cry.
Speaker 4: This is really wholesome. We're really grateful for you being here,
Speaker 4: been here. Literally you've recorded podcasts with me on the
Speaker 4: floor after a bottle of wine. We won't tell you
Speaker 4: which episode that was.
Speaker 3: With you.
Speaker 4: Remember the time we recorded with beanies over our microphones
Speaker 4: because we couldn't find the pops. We've come so far together,
Speaker 4: Jueta King. But I think it's come, as you know,
Speaker 4: probably a surprise to the community. But at the same time,
Speaker 4: I don't think the community is going to be surprised
Speaker 4: at all, because you are destined for very great things,
Speaker 4: and you started as a journalism student. Now you're a
Speaker 4: master of journalism. You've got to get the work done. George,
Speaker 4: We totally get it. So very grateful for you, Thank
Speaker 4: you for being part of our journey.
Speaker 2: Sorry for getting so emotional.
Speaker 4: We also for those of you wondering, we don't actually
Speaker 4: have a plan for what happens to quote George's role
Speaker 4: on the show yet We've decided. Given how busy the
Speaker 4: rest of this year is, because obviously we've got a
Speaker 4: million things on, we're just going to see the year out.
Speaker 4: G will be here for most of it, and then
Speaker 4: if G's not around, Jess and I are going to
Speaker 4: roll solo together and then we will make a decision
Speaker 4: in the new year as to what happens. Maybe we
Speaker 4: can get some new voices on the pod.
Speaker 2: Maybe we don't. Who knows.
Speaker 3: Time will tell you, time will tell, but it'll be
Speaker 3: hard to replace you. Big choose to feel massive, tiny studies?
Speaker 3: Oh same?
Speaker 2: Shall we talk about Kim Kardashian.
Speaker 4: I feel like.
Speaker 2: An emotional roles this story.
Speaker 4: I feel like combines two of all of our favorite
Speaker 4: things finance and trashy reality TV we all love. I
Speaker 4: don't know if you saw the news, gals, but Kim
Speaker 4: Kardashian and a former partner of hers have recently launched
Speaker 4: a private equity firm focusing on investing in consumer and
Speaker 4: media businesses, which I.
Speaker 2: Am obsessed, Like, she is living my dream.
Speaker 4: One day I want to have a private equity firm, Like,
Speaker 4: how cool would it be to be able to invest
Speaker 4: in other people's businesses? Well? Yeah, the devil works hard,
Speaker 4: Christiana really does work harder. And to be honest, I
Speaker 4: don't know a whole lot about what a private equity
Speaker 4: firm is, So VD, can you start by explaining to
Speaker 4: us what that is and then we can maybe dissect
Speaker 4: the news a little bit more. Can I like jump
Speaker 4: back to what it's called first though, because it did
Speaker 4: make me laugh, Like you would think that any Kardashian
Speaker 4: business was typ with a K.
Speaker 2: Right doesn't.
Speaker 4: But it's called Sky Partners, but it's got two k's
Speaker 4: in it, so it's SKK Live. She's good.
Speaker 2: She's good.
Speaker 4: As Jess said, the devil works hard, Chris Jenna works harder.
Speaker 4: But essentially, private equity firm is just private money, and
Speaker 4: it's private money that is usually managed by an investment
Speaker 4: management company. So Kim Kardashian isn't doing this all on
Speaker 4: her own. She actually has someone who has experiencing this,
Speaker 4: and it's a company that then provides financial backing and
Speaker 4: makes investments in private companies or startups or you know,
Speaker 4: businesses that exist that need a little bit more funding
Speaker 4: to go to the next level. And there's lots of
Speaker 4: ways of going about it, but essentially it's a company
Speaker 4: then there's seen other businesses and the purpose of doing
Speaker 4: that is to obviously see a return on their money.
Speaker 4: So Jess might start a business and be like, oh,
Speaker 4: I need ten million dollars to go to the next level,
Speaker 4: and Kim Kardashian is now going to sit down and
Speaker 4: be like, oh, that's a good idea, Jess. The interesting
Speaker 4: thing here though, from my perspective, is obviously, like the
Speaker 4: Kardashian family or the Kardashian Jenna family carries so much weight,
Speaker 4: and their Instagram and social feeds obviously have Instagram posts
Speaker 4: that you know, cost upwards of a million dollars to
Speaker 4: talk about.
Speaker 2: Like, imagine the.
Speaker 4: Backing and the like clout that you're going to get
Speaker 4: if the world or the media finds out that Kim
Speaker 4: Kardashian's decided to invest in your business, like that media
Speaker 4: in PR coverage would be insane. So I'm really interested
Speaker 4: to see how this goes because private equity, from my perspective,
Speaker 4: is something that oh, like, I get so envious of
Speaker 4: people who get to work in this space because they
Speaker 4: get to work with other founders or you know, founders
Speaker 4: that align to their goals and their values and partner
Speaker 4: with them to take them, you know, as I said,
Speaker 4: to that next level or run that business or you know,
Speaker 4: I've got a passion which I haven't spoken about very
Speaker 4: publicly before, for helping really small, female, independently owned businesses
Speaker 4: in mentoring and coaching and even sometimes financials to get
Speaker 4: to the next level. But like, this is on an
Speaker 4: entirely different level. Often the companies that private equity funds
Speaker 4: invest in are usually pretty large, and they want to
Speaker 4: take a stake of that business. So they're not just going, oh, Jessica,
Speaker 4: Ricky has like some money and you know, give me
Speaker 4: a return. They might go have some money. I want
Speaker 4: to see a return, but I also want a twenty
Speaker 4: five percent stake in your business. So think Shark Tank, right,
Speaker 4: I think Shark Tank, And that's kind of like what's
Speaker 4: going on.
Speaker 2: But it's an actual business.
Speaker 3: So is the premise of this VD that it's a
Speaker 3: money making machine for the Cudashians because they need more money.
Speaker 3: Let's be real, it's not like an altruistic thing. They're
Speaker 3: not just helping out young female founders for example. It's
Speaker 3: more more money spinner.
Speaker 2: To be honest, it could be both.
Speaker 4: Yeah, it's a very time and energy intensive way to
Speaker 4: make money because obviously, you know, let's use just this
Speaker 4: business that doesn't exist right now as an example, right, Like,
Speaker 4: I don't guarantee that it's going to be a return,
Speaker 4: So the time, energy and effort it might take to
Speaker 4: do the research and the backing and all of that,
Speaker 4: it might not be worth it because you know, for
Speaker 4: every five companies you invest in, maybe only one of
Speaker 4: them might be successful.
Speaker 2: So it's really risky in that aspect. So I would
Speaker 2: love to think that.
Speaker 4: It's a little bit more altruistic than just being a
Speaker 4: money making machine, especially because on a private equity investing journey,
Speaker 4: like you know, there's obviously a lot of risk, but
Speaker 4: there's also a lot of return. But you know, you
Speaker 4: get to back certain businesses that are aligned to your
Speaker 4: values and like your goals and what you know, what
Speaker 4: really resonates with you. So I'm hoping that the reason
Speaker 4: is because she's just like really passionate about female founded
Speaker 4: businesses and like really wants to push women forward. And
Speaker 4: one of the articles that I read was really just
Speaker 4: talking about how women comprise of only twelve point seven
Speaker 4: percent of all senior employees at private equity firms, and
Speaker 4: like I guess this is a really good step in
Speaker 4: the right direction.
Speaker 2: I mean, if Kim Kardashian can do it, we can
Speaker 2: do it. We can do it.
Speaker 4: I think Kim Kardashian is a lot more intelligent then
Speaker 4: she gets a rep for in the media. I don't
Speaker 4: think they could have been a successful hour she's studying
Speaker 4: law or she has her degree. Now I'm not one
Speaker 4: hundred percent sure, but it's worth noting that her partner,
Speaker 4: I think I said, was her former partner my mistake.
Speaker 4: He was a former partner at Carlisle Group, Inc. Which
Speaker 4: is a private equity firm. They had three hundred and
Speaker 4: seventy six billion dollars in assets under management in their firm.
Speaker 4: His name is Jay Simmons. I would argue that Kim's
Speaker 4: probably not going to be sitting down with the female
Speaker 4: founders or whoever and talking them through it. I think
Speaker 4: it's pretty safe to bet that it's going to be
Speaker 4: a pretty significant firm from the get go. He's got
Speaker 4: experience handling assets of that size. Kim obviously has a
Speaker 4: lot of experience in running a media business, and they
Speaker 4: are intending on focusing on consumer products, hospitality, luxury, digital commerce,
Speaker 4: and media. So I think it's a nice melding of
Speaker 4: both of their experiences. How hands on Kim's going to
Speaker 4: be remains to be seen. It could just be that,
Speaker 4: you know what I mean, she's the founder, She's definitely
Speaker 4: got the cash to start something up, and it sounds
Speaker 4: like Jay has the experience to back it in. So
Speaker 4: excited to see how it goes. Ultimately, I love seeing
Speaker 4: a woman doing something that isn't typically done by women,
Speaker 4: So I'm all about it. Yeah, And I mean to
Speaker 4: get into the little nitty gritty on them, because, like
Speaker 4: we are a money podcast, so I want to know
Speaker 4: more about the money. Kim Kardashian has come out and
Speaker 4: said that they're actually seeking to raise for Sky Partners,
Speaker 4: which is the equity firm, more than a billion dollars
Speaker 4: to completely debut the fund, which is wild, but let's
Speaker 4: do some numbers here. If they typically operate in a
Speaker 4: model which is called a two and twenty model, which
Speaker 4: assumes that the company should be making about twenty percent profit,
Speaker 4: which you know in the investment world, like if you're
Speaker 4: going to go all the way into private equity, like
Speaker 4: you want to be making a lot more money than
Speaker 4: what it would be if you just put your money
Speaker 4: into shares, right, Like, if you just want to put
Speaker 4: your money in the share market. We know that the
Speaker 4: Australian share market on average has returned about l eleven
Speaker 4: percent over the last twelve to fourteen years. Obviously different
Speaker 4: percentages in other areas, but you're going to be chasing
Speaker 4: higher returns because it's higher risk, right. But if SKY
Speaker 4: is making a twenty percent profit on the one billion dollars,
Speaker 4: they're making twenty million dollars a year just operating this fund,
Speaker 4: that's worth it to me. That's some big dollars. So
Speaker 4: I think it's really interesting as well to see what
Speaker 4: they would do with that profit, like are they reinvesting
Speaker 4: that into the fund or are they taking that as
Speaker 4: hash for themselves. Like I just want to see what
Speaker 4: the plan with the business model is because often when
Speaker 4: you start a private equity firm, you don't have names
Speaker 4: like Kim kardashy in floating around. So raising a billion
Speaker 4: dollars is really hard, and you usually reinvest every single
Speaker 4: dollar that that fund makes to grow the fund over time,
Speaker 4: and there might be an agreeance between the directors of
Speaker 4: the fund to go all right, well, Jess for the
Speaker 4: next ten years, we're going to reinvest every single dollar
Speaker 4: and then from then on in we might then look
Speaker 4: at taking profit. But I just want to know the
Speaker 4: business model. Guys, I'm so pervy. I'll report back if
Speaker 4: there's any more news. As you know, we love a
Speaker 4: bit of reality TV.
Speaker 2: Maybe very interested to know.
Speaker 4: But the interesting thing there, as I said before, they're
Speaker 4: looking to raise a billion dollars. That's not Kim's money, like,
Speaker 4: that's not Kim putting a billion dollars in. That's her
Speaker 4: looking for investors that believe in her fund Sky Partners
Speaker 4: and want to put money into it and therefore want
Speaker 4: to see a return.
Speaker 2: So interesting world, but juicy, good luck with it.
Speaker 3: Let's move on before I go on and on and on,
Speaker 3: because I could both money dilemma.
Speaker 2: All right, I'm ready, I'm ready. What have we got?
Speaker 4: Hi?
Speaker 2: There? Have you got up money dilemma? You just can't
Speaker 2: solve that.
Speaker 3: She's on the Money Team is here to help. Every week,
Speaker 3: we tackle your dilemmas, both big and small, to answer
Speaker 3: your most burning money, career and life questions. To get involved,
Speaker 3: simply head to our website and leave us a quick
Speaker 3: voice recording, and you may just find yourself on the show. Now,
Speaker 3: let's take a listen to today's money dilemma.
Speaker 5: Hi, Victoria, I'm wanting to build an emergency fund. I
Speaker 5: was wondering would it be better to have it in
Speaker 5: cash or have it as an ETF or an index fund?
Speaker 5: Love the show, Thank you?
Speaker 4: Oh love you too. That's so nice. Thank you.
Speaker 2: I love people when they tell me that they love me,
Speaker 2: me too. It's always nice to hear. Really needy.
Speaker 4: Please keep telling me about my ego needs. This is
Speaker 4: a really interesting one, and I feel like we've answered
Speaker 4: it before on the podcast, but obviously not everyone listens
Speaker 4: to every single podcast.
Speaker 2: Who would do that, Jessica, Ricky, not.
Speaker 4: Me like a crazy person. But I think it's an
Speaker 4: interesting question because from a pragmatic point of view, like
Speaker 4: taking off my finance hat and looking at it, you go,
Speaker 4: oh my gosh, I hate the idea that my money
Speaker 4: would just be sitting there not making a return.
Speaker 2: But what we actually.
Speaker 4: Want to do is look at it properly, like what
Speaker 4: is the job of your emergency fund? Like your emergency
Speaker 4: fund purely exists to be accessible.
Speaker 2: In any emergency.
Speaker 4: It needs to be easily accessible, it needs to be
Speaker 4: always there, It needs to be that strong dependenceteed that
Speaker 4: you know might not be doing a whole heap of work,
Speaker 4: but when they work, they work really hard. It's kind
Speaker 4: of like the security guard, Like sometimes you see them
Speaker 4: wandering around not doing all that much, like, yo.
Speaker 2: What are they up to? But if the proverbial hits
Speaker 2: the fan, they're there. They got you. You say, it's
Speaker 2: not good.
Speaker 4: That's exactly what your emergency fund is doing, right, Like
Speaker 4: It's one of those things that I totally get that
Speaker 4: you want it to be working hard, but I think
Speaker 4: we need to acknowledge that your emergency fund is working
Speaker 4: hard by being in cash.
Speaker 2: It is doing exactly what it needs to do.
Speaker 4: And it's actually really risky investing it because let's say
Speaker 4: we use Julie's example and she said, should it be
Speaker 4: in an ETF? Okay, well, no problems. Let's say you
Speaker 4: have a ten thousand dollar emergency fund. What if the
Speaker 4: share market goes down, that ten thousand dollar emergency fund
Speaker 4: is now no longer worth ten thousand dollars. We have
Speaker 4: seen the market become a bear market, which means a
Speaker 4: drop of twenty percent on average across the market, which
Speaker 4: means your ten thousand dollars is now worth eight thousand
Speaker 4: dollars if the proverbial hit the fan during that period
Speaker 4: of time, which let's be honest and look at the
Speaker 4: statistics of it.
Speaker 2: If your job is going to.
Speaker 4: Be at risk or anything is going to happen, unfortunately,
Speaker 4: it's probably when the share market's not doing that well,
Speaker 4: you are going to be in a position where you
Speaker 4: need to access that money. You are now crystallizing a loss,
Speaker 4: so you've instantly lost twenty percent, which means you've lost
Speaker 4: two grand my friends. If you decide to take that
Speaker 4: money out of the account, but you can't get it today,
Speaker 4: you have to go onto your share trading platform or
Speaker 4: call your financial advisor, or transact in the way that
Speaker 4: you purchased it, go online, submit a claim to sell
Speaker 4: down your portfolio. So that's day one. Day two, the
Speaker 4: company that you're with or your share portfolio manager sells
Speaker 4: down your shares, and then on day three it will
Speaker 4: be transferred back to your account. Very likely that it's
Speaker 4: not within the same banking system, so it's going to
Speaker 4: take another day. So that's three or four days before
Speaker 4: that money hits your account. If things go to plan,
Speaker 4: if you're not loitering around and you know, wondering which
Speaker 4: shares to sell or making decisions like it could stretch
Speaker 4: out to more than a week. And if there's any
Speaker 4: bumps along the road, like your financial advisor needs you
Speaker 4: to sign a form or ask a question or do
Speaker 4: something like that, is time between you and having access
Speaker 4: to an emergency fund, and the emergency has already happened.
Speaker 4: Like that, to me is not a good use of it.
Speaker 4: And I think what we need to do is really
Speaker 4: see money working in the way that it needs to work.
Speaker 4: It doesn't always have to be returning the most, but
Speaker 4: what it has to be doing is doing a job.
Speaker 4: And I say this all the time, And when I've
Speaker 4: talked about like my budget and Cashlow Master Class, I
Speaker 4: always talk about having a cash hub and then delegating
Speaker 4: money from that cash hub so that every single dollar
Speaker 4: you have works as hard for you as you do
Speaker 4: for it. That does not mean that it is returning
Speaker 4: the most amount of money. That might mean it is
Speaker 4: sitting in its emergency fund doing its job of protecting
Speaker 4: you and making you feel safe. So from my perspective,
Speaker 4: we wouldn't ever invest our emergency fund. And that's where
Speaker 4: I will always you know, be very steadfast. I don't
Speaker 4: believe in it. My emergency fund is definitely sitting in cash. Interestingly, though,
Speaker 4: my emergency fund is in a offset account for my mom.
Speaker 4: I was gonna say, is an offset a good alternative
Speaker 4: if you have a mortgage, which is a big if.
Speaker 4: But if you have a mortgage alternative, Yeah, it's not
Speaker 4: a bad idea. It's offsetting my mortgage, which is good.
Speaker 4: But the reason I'm happy with that is the bank
Speaker 4: doesn't have any say over what that money does or
Speaker 4: how it works. I can access that because it's basically
Speaker 4: a savings account. It's just as easy. It just means
Speaker 4: that that savings account is linked to your moretgage and
Speaker 4: offsets the interest money win. The same is not true
Speaker 4: for a redraw account on a mortgage. So I've had
Speaker 4: the question before, like, oh, V well, I only have redraws.
Speaker 4: Should I put my emergency fund in that? And the
Speaker 4: answer from my perspective would be no, because when you
Speaker 4: put money onto your mortgage, you're paying off your mortgage,
Speaker 4: and then you essentially can redraw or loan. Redraw just
Speaker 4: sounds sexier and it doesn't sound like a loan, but
Speaker 4: you can loan the money back from your mortgage. However,
Speaker 4: when financial times become a little bit tumultuous, banks sometimes go, oh, Jess,
Speaker 4: you might have paid an extra one hundred grand off
Speaker 4: your mortgage. We're actually going to cap that. You can't
Speaker 4: take that money back out and redraw it. We're actually
Speaker 4: going to cap it at ten grand. And that has
Speaker 4: happened a heap of times where people's redraws have been
Speaker 4: decreased because banks are like, oh, we need to keep
Speaker 4: as much cash as possible in the bank. We don't
Speaker 4: want people taking it out, whereas they don't have that
Speaker 4: same conviction or authority over an offset account. So an
Speaker 4: offset account is literally a savings account that is linked
Speaker 4: to your mortgage in a positive way, whereas it redraw
Speaker 4: offer rates in a very different way. People often see
Speaker 4: them as like la, like flack or same same and
Speaker 4: I mean, you do you, but what I want you
Speaker 4: to do is be educated. So from my perspective, no,
Speaker 4: I wouldn't invest in emergency account in an ETF because
Speaker 4: I want you to have immediate access to that cash
Speaker 4: in the event of an emergency NOFET.
Speaker 2: Sorry I didn't let anybody else be Ah, that was good.
Speaker 4: I have nothing else to clear.
Speaker 2: Yeah, because you guys have heard that round from me.
Speaker 2: I'm sorry, I'm sorry.
Speaker 4: All right, let's go, let's go grab a drink because
Speaker 4: we've got to celebrate gking absolutely.
Speaker 2: Alrighty guys.
Speaker 3: Before we do the boring but important stuff, please remember
Speaker 3: that the advice shared on She's on the Money is
Speaker 3: general in nature and does not consider out your individual circumstances.
Speaker 2: She's on the Money.
Speaker 3: Exists purely for educational purposes and should not be relied
Speaker 3: upon to make an investment or a financial decision. And
Speaker 3: we promise Victoria Devine and She's on the Money are
Speaker 3: authorized representatives in Focused Securities. Australia Proprietary Limited ABM four
Speaker 3: seven zero nine seven seven nine seven zero four nine
Speaker 3: AFOSAL two three six five two three. See you next week, guys,
Speaker 3: See you next week, guys,