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Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr

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Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before

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Speaker 1: we get started on She's on the Money podcast, I

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Speaker 1: would like to acknowledge the traditional custodians of the land

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Speaker 1: of which this podcast is recorded on a wondery country,

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Speaker 1: acknowledging the elders, the ancestors and the next generation coming

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Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing

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Speaker 1: and the storytelling of you to make a difference for

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Speaker 1: today and lasting impact for tomorrow.

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Speaker 2: Let's get into it.

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Speaker 3: She's on the Money. She's on the Money.

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Speaker 2: Hello, and welcome to She's on the the podcast. Are

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Speaker 2: millennials who want financial freedom. Today is Friday, my friends,

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Speaker 2: which means it is time to get our little team

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Speaker 2: together and celebrate you our incredible She's on the Money community. Today,

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Speaker 2: Jess is going to be sharing our favorite money wins.

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Speaker 2: We're going to be helping to ads a juicy money

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Speaker 2: dilemma which this week is all about hex and indexation,

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Speaker 2: and we're going to be unpacking something that you slid

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Speaker 2: into our DMS about this week. We're going to be

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Speaker 2: talking about what to do when you have a friend

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Speaker 2: who always claims to be in quotation marks poor but

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Speaker 2: has a new bag or a new dress every single week.

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Speaker 4: Bick.

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Speaker 2: Is this something that you can relate to like kinder

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Speaker 2: to a degree. Oh, it's a hard one because I'm

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Speaker 2: probably that friend. But I feel like whenever I do

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Speaker 2: get a little bit of extra cash to splash, I

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Speaker 2: will buy nice things for myself because I don't usually

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Speaker 2: get to.

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Speaker 4: So it's hard to say.

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Speaker 2: But if someone has something new every week, they're like, oh,

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Speaker 2: maybe you've got well waiting till we hear the DM. Yeah, okay,

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Speaker 2: good idea. Yeah, really dive into it. How have your

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Speaker 2: weeks been my friends? Well, pretty good. It's the last

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Speaker 2: week of the comedy festival and I've just been cramming, cramming. Yeah,

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Speaker 2: you would have been so good at UNI. That's exactly

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Speaker 2: how he got by.

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Speaker 4: Yeah you got to cram.

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Speaker 5: Yeah you gotta wait till last minute.

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Speaker 2: Yeah, you gotta get it all done. ADHD is literally

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Speaker 2: the only way I functioned us. Yes, anything we ever do,

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Speaker 2: good luck getting it from me only.

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Speaker 4: Not us booking our flights for a hotel internationally from

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Speaker 4: the tarmac of the plane to the hotel. Oh my

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Speaker 4: traumatic experience.

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Speaker 2: Yes, that is so funny. Yes did you get there?

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Speaker 4: Yes? I did, and I stay to Sea Land. So

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Speaker 4: not a word of a complaint from me.

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Speaker 2: I don't know what she complains about. Honest to god,

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Speaker 2: that was a good experience. It was very funny. Actually,

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Speaker 2: now you bring that up. We were literally on the time.

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Speaker 2: I just like if you booked, and I was like, no,

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Speaker 2: let's do that. Then we went to do seal triggered.

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Speaker 2: That is so stressful on the edge. Baby, It all

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Speaker 2: worked out, That's what matters. No, Well, how's your week being, Jess?

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Speaker 2: Not as stressful as the time I did that to you.

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Speaker 4: Not as stressful as that. Thankfully, it's been good. I've

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Speaker 4: been tasked with renovating my boyfriend and his brother's childhood

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Speaker 4: cubby house for my new baby nephew. Oh my god,

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Speaker 4: very fun right on my alley. Can't afford to renovator house, Well, renovator.

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Speaker 2: You know what there what you get and you don't

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Speaker 2: get up yet.

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Speaker 4: Yeah, but this week I scored a kids like play

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Speaker 4: kitchen for free of Facebook market Place three. Yeah. It's

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Speaker 4: well loved, but I'm going to upcycle it and make

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Speaker 4: it really cute and it'll go in the cubby and

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Speaker 4: it'll be a nice little addition that cost us basically nothing.

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Speaker 2: So good it is that you've got to keep an

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Speaker 2: eye out because I bought a kid's kitchen a little

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Speaker 2: while ago. You guys have heard about this a million

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Speaker 2: times if your she's on the money OG's. But they

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Speaker 2: also give away all of the kids kitchen new tensils

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Speaker 2: on Facebook marketplace, So keep an eye out for that,

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Speaker 2: because like they need their cuts and sauces to sell

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Speaker 2: their eight dollar alertos.

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Speaker 4: Of course they do. That's fair means.

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Speaker 2: No, absolutely, it is not. Let's get into that though.

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Speaker 2: That was a cute segue. You did, good, honey, Jess.

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Speaker 2: What have you got when it comes to community money

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Speaker 2: wins and confessions for us this week?

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Speaker 4: Well, speaking of coffee, my first money win comes from Nicole,

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Speaker 4: who said money win. My boss took everyone out for

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Speaker 4: lunch today and paid, so I got free lunch and coffee.

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Speaker 2: That's a good money in very good money.

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Speaker 4: In In other news, I made my last payment on

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Speaker 4: my after page day and I closed my account.

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Speaker 2: That's actually queen behavior. That's better than free lunch.

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Speaker 4: Yeah, I would say so, as well, well done, Nicole.

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Speaker 4: My next money win comes from Sarah, who said she's

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Speaker 4: started a new way of saving, call to the fun tacks.

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Speaker 4: Every time I do something a little this like a

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Speaker 4: cheeky Woolies run for dessert or a kmart trip, I

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Speaker 4: get five to twenty dollars cash out and chuck it away.

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Speaker 4: It's not about doing less but saving more, and it's

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Speaker 4: what works for me.

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Speaker 2: I had so much fun reading through the comments on that,

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Speaker 2: because the comments on that particular comment were people being

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Speaker 2: like confused because I was too.

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Speaker 5: Child wouldney every time you're at the the market?

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Speaker 2: And then the comments were why would you chuck money

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Speaker 2: in the bin. It turns out that's not it. She

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Speaker 2: meant chuck it away into a savings account, stash it away. Yeah,

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Speaker 2: like save it No, I see put the money in

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Speaker 2: the bin.

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Speaker 4: Okay, well when I read that, throwing out all my money?

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Speaker 2: So you get what you get here, we get.

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Speaker 4: The next money wind comes from Gladys, who said I

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Speaker 4: finally gave notice on what is now my previous rental,

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Speaker 4: and after a bit of back and forth with the

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Speaker 4: whole situation, I got my bond back fully refunded.

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Speaker 2: Yeah that's a win.

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Speaker 4: That's a hard one because they come for your money.

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Speaker 2: That is very hard. When we got our bond back

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Speaker 2: in full from our last rental, I was shook. Didn't

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Speaker 2: expect it was like that never comes back, you never

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Speaker 2: get it out. It doesn't matter. They always find some

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Speaker 2: reason why they can't give it back. Yeah.

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Speaker 4: No, definitely have been there not on. My next money

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Speaker 4: wind comes from Cassie who said huge money whin. I

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Speaker 4: saw the sheets on the money Instagram story just in

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Speaker 4: time to book all of my japan accommodation for my

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Speaker 4: holiday later on this year, which I've been putting off doing.

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Speaker 4: And I scored myself four hundred and seventy two dollars

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Speaker 4: and seventy three cents back in my shop back account

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Speaker 4: because they had the fifteen percent cash back.

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Speaker 2: Fifteen percent cash back on a holiday. Beck amazing in

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Speaker 2: I'm going to start using this thing. I only just

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Speaker 2: really learned about it. I mean, I know you guys

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Speaker 2: talk about it sometimes better. So do you know what

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Speaker 2: I did earlier today? This is so lame. This isn't

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Speaker 2: even sponsored sounds it it's not. I gave Beck and Maddie.

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Speaker 2: Maddie's new to the team. You guys will meet her

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Speaker 2: soon a tutorial on shot back and how to use it.

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Speaker 4: Very cool.

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Speaker 2: I was like, this is how it works, this is

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Speaker 2: where the money goes, this is how you cash it out.

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Speaker 2: This is like where you can see where the good

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Speaker 2: discounts are. How's it work? Like we did a full tutorial.

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Speaker 2: It's really fun. I love and I've been using shop

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Speaker 2: back back a new marketing manager.

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Speaker 4: I've been using them for years. They're so good And

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Speaker 4: if you're not following us on Instagram, I would highly

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Speaker 4: recommend it and join our Facebook group because we do

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Speaker 4: obviously work with shot back from time to time, and

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Speaker 4: we always cherry pick the best deals to share.

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Speaker 2: We're not going to share one that's not going to

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Speaker 2: excite you. I don't want to put up a deal

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Speaker 2: and be like you get half a percent back on

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Speaker 2: this good deal. No, that's embarrassing, Like I'm not going

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Speaker 2: to promote that.

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Speaker 4: But a lot of the time the good ones are

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Speaker 4: like a small window only like this holiday one was

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Speaker 4: I think ten am to six pm. So make sure

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Speaker 4: you join the group, follow us on Instagram because when

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Speaker 4: there are really good ones, we do try our best

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Speaker 4: to share them, even if they're not sponsoring. Because it

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Speaker 4: is just four hundred dollars back for doing.

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Speaker 2: It's a lot of money.

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Speaker 4: It's free money, so much money. But anyway, enough about that,

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Speaker 4: let me continue on. My next money win is from

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Speaker 4: Sky who said money win, My partner went to buy

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Speaker 4: tickets for the AFL gather round off marketplace. I mean,

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Speaker 4: you mean the gather around is some kind.

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Speaker 2: Of someone somewhere is laughing very hard related inability to

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Speaker 2: understand what this is sports woho.

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Speaker 4: She said the man gave them to him for free

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Speaker 4: because he couldn't make it, which I thought was just

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Speaker 4: really nice.

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Speaker 2: So he's actually really cool.

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Speaker 4: And then my last money in this week is from

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Speaker 4: Carra who said I got married this weekend. Big life win. Congratulations, congratulations.

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Speaker 4: A few weeks ago, I realized I didn't have a

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Speaker 4: jacket option for Melbourne's unpredictable April weather, so way to

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Speaker 4: side to look into faux for options. The ones I

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Speaker 4: liked were all in the three to four hundred dollars range,

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Speaker 4: so I decided to put my sewing skills to use

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Speaker 4: and trot it off to spot see what the fabrics

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Speaker 4: they had found the perfect option and spent seventy dollars

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Speaker 4: to make everything I needed for a cape and there's

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Speaker 4: a really cute photo showing their wedding that they put

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Speaker 4: on the spread. So good, how nice, congratulations Caakara.

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Speaker 2: Cara and mister Kara and he's just Ken.

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Speaker 1: Yeah.

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Speaker 2: Alright, let's go to a really quick break and after

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Speaker 2: the break, we're going to talk about our juicy money dilemma,

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Speaker 2: but we're also going to be talking about hex and indexation.

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Speaker 2: So I mean, given that's basically the hottest topic in

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Speaker 2: our Facebook group, Oh my god, I know you guys

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Speaker 2: aren't going anywhere.

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Speaker 4: Welcome back, everybody. Let's jump in to the money Dilemma

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Speaker 4: for the week.

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Speaker 2: Hi. There, have you got a money dilemma you just

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Speaker 2: can't solve? The She's on the Money team is here

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Speaker 2: to help. Every week we tackle your dilemmas, both big

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Speaker 2: and small, to answer your most burning money, career and

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Speaker 2: life questions. To get involved, simply head to our website

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Speaker 2: and leave us a short voice recording and you might

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Speaker 2: just find yourself on the show. Now, let's take a

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Speaker 2: listen to this week's money Dilemma.

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Speaker 6: Hey, guys, really love the podcast. Just wanted to ask

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Speaker 6: a quick question about Hex and the indexation. There's been

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Speaker 6: rumors that the indexation is going to be at seven

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Speaker 6: point nine percent this year, and I have a hex

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Speaker 6: set of about forty five thousand. I'm just really wondering

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Speaker 6: whether it's worth paying off some of my hex stet

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Speaker 6: to reduce the indexation just because I don't want a

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Speaker 6: snowball effect. If you could just give some advice, that

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Speaker 6: would be really greatful. A lot of unique students who

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Speaker 6: are in the same situation as me, thank you.

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Speaker 4: When I say we have had so many dms on

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Speaker 4: this topic. We have had so many dms on this

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Speaker 4: topic I can't even tell you. And I'm kind of

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Speaker 4: curious because I don't have a HEC step, but my

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Speaker 4: partner does. He recently graduated and VD I'm very interested

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Speaker 4: to hear it to say on this.

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Speaker 2: So I really don't want to talk about this because

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Speaker 2: it makes me really mad. And I feel like as

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Speaker 2: much as there's you know, a beautiful education system here

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Speaker 2: in Australia, and that is, from my perspective, a really

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Speaker 2: great process, like indexing it by seven percent, like it

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Speaker 2: feels like a revenue raising tactic, like why would they

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Speaker 2: increase it? Anyway, We've got a lot to say about this,

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Speaker 2: So your hex slash helped it or like any vocational loan,

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Speaker 2: is expected to increase by this saying up to seven

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Speaker 2: percent on the first of June, which is in line

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Speaker 2: with the rising cost of living. There has been a

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Speaker 2: lot of talk about it, and the Green Senator last

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Speaker 2: year actually introduced a bill to pause indexation and increase

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Speaker 2: the repayment threshold, which is very, very good. But last

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Speaker 2: week that bill was rejected, so we know that now

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Speaker 2: that indexation is going to come into force, which is

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Speaker 2: a little bit disappointing. I don't know, I feel like

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Speaker 2: there should have been an outcome. The freezing would have

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Speaker 2: been really good. But to be honest, the freezing what

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Speaker 2: that would have actually done, is just like kind of

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Speaker 2: put off the inevitable. Wouldn't have happened now, it would

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Speaker 2: have happened later, and in this economy, to be honest,

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Speaker 2: let's just get it over and done with. At the

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Speaker 2: same time, I don't think families that are already struggling

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Speaker 2: to pay mortgages and put roofs over their heads and

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Speaker 2: pay the grocery bills needed this, like it just it's

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Speaker 2: obscene to think that the government's like, do you know what,

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Speaker 2: while you're down, we might just give you a little kick,

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Speaker 2: a little bit of another nudge like it just why why?

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Speaker 2: So the number of HECX and Help loans in Australia

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Speaker 2: has gone up sharply, from six hundred thousand loans in

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Speaker 2: twenty sixteen to nearly eight hundred and thirty thousand loans

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Speaker 2: in twenty nineteen. This is going to impact eight hundred

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Speaker 2: and thirty thousand Australians, which is a lot of people.

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Speaker 2: And when it comes to the proposed changes, it really

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Speaker 2: really depends on what your personal circumstances are, because I

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Speaker 2: think a lot of us, you know, we've always spoken

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Speaker 2: about the difference between good, bad, and okay debt, and

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Speaker 2: we've always said on the podcast, hex shouldn't be seen

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Speaker 2: as a bad debt because it's something that's constructive for

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Speaker 2: your financial future. It doesn't have quote an interest rate,

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Speaker 2: does have indexation, which at this point in time is

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Speaker 2: really important to talk about. But at the end of

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Speaker 2: the day, we really need to talk about what this

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Speaker 2: indexation rate actually means for you personally. So let's go

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Speaker 2: back in time. Last year twenty twenty two, the indexation

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Speaker 2: rate was three point nine percent that we weren't happy with.

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Speaker 4: I remember us being annoyed when that happened that we

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Speaker 4: won't spoke about it on the podcast.

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Speaker 2: We spoke about it on the pod because we were

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Speaker 2: really really salty about it because the year before it

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Speaker 2: was point six percent, and it was point six percent

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Speaker 2: because the year before it was one point eight and

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Speaker 2: they did a little bit of a freeze because of COVID,

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Speaker 2: So they're like, let's just not do this, like we

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Speaker 2: can't do this, and for the previous years, like if

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Speaker 2: we go back twenty twenty, twenty, nineteen, twenty eighteen, twenty seventeen,

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Speaker 2: it's like one point eight, one point nine, one point five,

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Speaker 2: I have one point five. So this seven or potentially

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Speaker 2: seven percent increase, that's wild. It is in line with

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Speaker 2: the rate of inflation here in Australia, and we've talked

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Speaker 2: about it on the podcast before. Cash rate increases in

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Speaker 2: Australia can sometimes be a good thing because the reason

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Speaker 2: the cash rate is increased each time by the RBA

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Speaker 2: is essentially to stop the rate of inflation. The RBA

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Speaker 2: is actively trying to make sure that we don't end

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Speaker 2: up having our hex stets inflated by seven percent. They

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Speaker 2: don't actually want that because it's not actually good for

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Speaker 2: the economy because at the end of the day, jess

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Speaker 2: if hypothetically you're paying seven percent more on your hex stet,

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Speaker 2: that's seven percent more income that you don't have to

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Speaker 2: spend on disposable things and disposable things that helps the

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Speaker 2: economy go round. The economy isn't just held up by

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Speaker 2: us buying toilet paper in mass amounts, right. So I

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Speaker 2: think it's one of those things where we need to

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Speaker 2: talk about the rise stinging because it is going to sting.

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Speaker 2: But at the end of the day, getting a good

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Speaker 2: education is still the best thing in the long term.

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Speaker 2: I'm not here saying you have to go to university

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Speaker 2: to get a good job. I didn't exactly I didn't,

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Speaker 2: But I am the biggest advocate of you doing you

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Speaker 2: and what works for you. And as somebody who is

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Speaker 2: arguably over educated and has a team of people who

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Speaker 2: I would say, yess what, most of our team didn't

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Speaker 2: go to UNI, and if they did go to UNI,

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Speaker 2: they're not working in their field. Like I just don't

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Speaker 2: think in twenty twenty three it is as important to

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Speaker 2: have an education to be successful. If you are tenacious

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Speaker 2: and driven and have the grit to get there genuinely.

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Speaker 2: But if you want to work as a doctor, got

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Speaker 2: to go to UNI. Can't just decide, oh, well, I

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Speaker 2: don't want to go to UNI, but I do want

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Speaker 2: to do that job. You want to be a nurse, Great,

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Speaker 2: you've got to go get that degree, and that is

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Speaker 2: totally okay. I mean, you might not even know what

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Speaker 2: you want to do, but you do know that you

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Speaker 2: want to study. Great, go do an arts degree. I

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Speaker 2: started there, I transferred over to psychology because at the start,

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Speaker 2: I was like, do I don't know? I don't know.

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Speaker 2: I think it's really important to just choose your own path.

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Speaker 2: But at the end of the day, I want you

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Speaker 2: to be in the best possible pause And the best

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Speaker 2: way to create financial freedom for yourself is to create

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Speaker 2: a career and to create a cash flow system that works.

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Speaker 2: And a part of a good cash flow system, from

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Speaker 2: my perspective, is having an income stream, and usually that

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Speaker 2: is a job. It's not usually upfront an investment. Because

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Speaker 2: I don't know about you guys. Not a trust fun

325
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Speaker 2: baby can't relate to that. I wish I would love

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Speaker 2: to be a trust fund baby. My dog acts like

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Speaker 2: a trust fund baby, and I say every second day

328
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Speaker 2: I'm like, I want her life like that looks lid

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Speaker 2: Bluesy's my favorite NEPO baby. Yeah. Honestly, when I have

330
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Speaker 2: real babies, they will not be nearly as entitled as Lucy.

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Speaker 2: She can have whatever she wants. My kids, they're gonna

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Speaker 2: have to work for it. Yeah, like Nepo baby doggo.

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Speaker 4: Yeah. So what about the people like this listener who

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Speaker 4: have completed their course, They've got their forty five thousand

335
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Speaker 4: dollars of debt or whatever and are going, oh, my gosh,

336
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Speaker 4: seven percent? Do I pay it off? Do I not

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Speaker 4: pay it off? What were your thoughts kind of around

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Speaker 4: what they could maybe consider.

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Speaker 2: Yeah, look, at the end of the day, it's going

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Speaker 2: to be different based on your personal circumstances. So, if

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Speaker 2: you're earning more than forty eight thousand, three hundred and

342
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Speaker 2: sixty one dollars, your employer should be deducting a percentage

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Speaker 2: of your income from your pay slip to actually go

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Speaker 2: towards that HEX step.

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Speaker 4: You have to tell them to do that. They don't

346
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Speaker 4: just know that you have HECTA. You've got to check

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Speaker 4: the box.

348
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Speaker 2: Oh, you've got to tix, You've got to chick the box.

349
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Speaker 2: If you have hextet you need to tick the box.

350
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Speaker 2: If you're not sure, email your HR manager or whoever

351
00:16:23,600 --> 00:16:25,960
Speaker 2: is in charge of payroll and go, hey, am I

352
00:16:26,000 --> 00:16:29,360
Speaker 2: paying Hex? You can sign into your ATO portal and

353
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Speaker 2: see if you have or haven't paid HEX for the

354
00:16:32,040 --> 00:16:36,120
Speaker 2: last financial year. Keep in mind, though, that these figures

355
00:16:36,280 --> 00:16:38,800
Speaker 2: often are only updated maybe once a year by the

356
00:16:38,880 --> 00:16:42,360
Speaker 2: ATO because they only consolidate all that data when you

357
00:16:42,400 --> 00:16:44,440
Speaker 2: do your tax return. So if you haven't done your

358
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Speaker 2: tax return and you're trying to see how much hext

359
00:16:46,360 --> 00:16:48,200
Speaker 2: you've paid, the ATO is like, well, I don't know,

360
00:16:48,240 --> 00:16:50,640
Speaker 2: because did you have any additional deductions? Did you have

361
00:16:50,680 --> 00:16:53,360
Speaker 2: any additional contributions? Like we haven't you know, done the

362
00:16:53,400 --> 00:16:56,000
Speaker 2: maths on that yet, So it's not going to be there.

363
00:16:56,440 --> 00:16:59,360
Speaker 2: Complete sidebar. If for some reason they're not paying it

364
00:16:59,400 --> 00:17:01,880
Speaker 2: and they should have been paying it, talk to fair Work,

365
00:17:02,320 --> 00:17:05,240
Speaker 2: have a chat to them. Fair Work are brilliant. So

366
00:17:05,359 --> 00:17:08,119
Speaker 2: this is called a pay as you go with holding,

367
00:17:08,280 --> 00:17:10,679
Speaker 2: and that would be on your pay slip and that

368
00:17:10,800 --> 00:17:14,240
Speaker 2: amount is kind of like applied to your compulsory payment.

369
00:17:14,400 --> 00:17:16,520
Speaker 2: So it's just at a base you'll have to pay

370
00:17:16,520 --> 00:17:18,960
Speaker 2: a certain amount of money each and every single week

371
00:17:19,400 --> 00:17:22,360
Speaker 2: based on what you earn right. Anything above and beyond

372
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Speaker 2: that is called a voluntary payment, and that's where I

373
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Speaker 2: guess this conversation opens up. Should we be making voluntary

374
00:17:28,680 --> 00:17:32,160
Speaker 2: contributions to paying down our hex stet if inflation has

375
00:17:32,200 --> 00:17:37,080
Speaker 2: gone up by seven percent? Obviously this is a very

376
00:17:37,160 --> 00:17:41,240
Speaker 2: stressful question to answer because it is you know, one,

377
00:17:41,280 --> 00:17:43,360
Speaker 2: I can't give you personal financial advice because that would

378
00:17:43,359 --> 00:17:45,760
Speaker 2: be wildly irresponsible. But it's also going to depend on

379
00:17:45,800 --> 00:17:47,800
Speaker 2: your circumstances. I think we need to look at, well,

380
00:17:47,840 --> 00:17:51,080
Speaker 2: what is seven percent of your hex step, how much

381
00:17:51,160 --> 00:17:53,520
Speaker 2: is it going to increase by? How much do you

382
00:17:53,600 --> 00:17:57,399
Speaker 2: now need to contribute to keep up? And could that

383
00:17:57,560 --> 00:18:01,120
Speaker 2: money have been used somewhere else. I am a very

384
00:18:01,119 --> 00:18:03,040
Speaker 2: big advocate of, you know, paying it down if you've

385
00:18:03,080 --> 00:18:04,680
Speaker 2: got the free cash flow. And I mean, I've got

386
00:18:04,680 --> 00:18:06,800
Speaker 2: some people in our community I've been talking to and

387
00:18:06,840 --> 00:18:09,320
Speaker 2: they are paying down their hextet at the moment with

388
00:18:09,440 --> 00:18:13,239
Speaker 2: additional voluntary contributions. And the reason that they're doing that

389
00:18:13,440 --> 00:18:15,840
Speaker 2: is because they know that their hextet at the level

390
00:18:15,880 --> 00:18:19,480
Speaker 2: it's at impacts their borrowing capacity for purchasing a house

391
00:18:19,520 --> 00:18:22,840
Speaker 2: by one hundred thousand dollars. I get that, Jess. You're

392
00:18:22,880 --> 00:18:25,440
Speaker 2: in the process of potentially buying a house. If I said, hey,

393
00:18:25,480 --> 00:18:27,560
Speaker 2: do this, you'll get an extra one hundred grand.

394
00:18:27,480 --> 00:18:28,000
Speaker 3: Oh done?

395
00:18:28,480 --> 00:18:31,320
Speaker 2: Yeah to borrow. Yeah, you would smash that out because

396
00:18:31,400 --> 00:18:33,520
Speaker 2: that's a value to you. There are going to be

397
00:18:33,600 --> 00:18:36,840
Speaker 2: other people, Like, let's look at my personal financial situation.

398
00:18:36,960 --> 00:18:39,360
Speaker 2: I still have a very large hex step. My hextet

399
00:18:39,400 --> 00:18:41,960
Speaker 2: I think today is sitting at about eighty thousand dollars.

400
00:18:42,359 --> 00:18:44,199
Speaker 2: It was one hundred thousand dollars, like more than one

401
00:18:44,280 --> 00:18:46,600
Speaker 2: hundred thousand dollars a little while ago, and then I

402
00:18:46,920 --> 00:18:48,840
Speaker 2: like partied when I logged in and saw that it

403
00:18:48,920 --> 00:18:51,639
Speaker 2: was like not six figures anymore. That was hot, nice,

404
00:18:52,040 --> 00:18:56,280
Speaker 2: really hot. I haven't made additional financial contributions to that

405
00:18:56,320 --> 00:19:00,240
Speaker 2: because I don't need the borrowing capacity. But also I'm

406
00:19:00,240 --> 00:19:02,399
Speaker 2: just looking at it going my money at the moment,

407
00:19:02,680 --> 00:19:05,280
Speaker 2: with the rising cost of living, with the fact that

408
00:19:05,320 --> 00:19:08,119
Speaker 2: I have a mortgage. And please do not think for

409
00:19:08,200 --> 00:19:10,960
Speaker 2: even two seconds I'm complaining. This is just an example.

410
00:19:11,480 --> 00:19:15,439
Speaker 2: My mortgage has more than doubled in its interest repayments

411
00:19:15,520 --> 00:19:18,679
Speaker 2: in the last eight months. I just go, you know what,

412
00:19:18,760 --> 00:19:21,040
Speaker 2: I'd much prefer to start paying off my house, and

413
00:19:21,119 --> 00:19:23,840
Speaker 2: I would happily just watch my hex stets sit over

414
00:19:23,880 --> 00:19:26,560
Speaker 2: there and tick off at the minimum amount over the

415
00:19:26,600 --> 00:19:29,920
Speaker 2: period of time that it's going to be paid off in. Right. Yeah,

416
00:19:30,040 --> 00:19:33,199
Speaker 2: So for me, it's not a driving force. I know

417
00:19:33,800 --> 00:19:37,159
Speaker 2: that by making that decision, though, the indexation of my

418
00:19:37,240 --> 00:19:40,640
Speaker 2: hextet is going to increase by a fair few thousand dollars. Yeah,

419
00:19:40,640 --> 00:19:43,320
Speaker 2: it's not like a little amount of money. We're not

420
00:19:43,400 --> 00:19:46,800
Speaker 2: talking about, okay, Victoria's just a couple of one hundred bucks,

421
00:19:46,840 --> 00:19:48,720
Speaker 2: so it's ten bucks. It's going to be a fair

422
00:19:48,760 --> 00:19:52,840
Speaker 2: few thousand dollars. Is that okay in my eyes at

423
00:19:52,920 --> 00:19:56,280
Speaker 2: this point? Yes, Because even though on my approximately eighty

424
00:19:56,359 --> 00:19:59,160
Speaker 2: thousand debt at seven percent of an inflation rate, it's

425
00:19:59,160 --> 00:20:01,680
Speaker 2: probably like six and a halve seven thousand dollars ish

426
00:20:02,320 --> 00:20:06,000
Speaker 2: to me paying additional I'd actually prefer seven grand on

427
00:20:06,040 --> 00:20:08,719
Speaker 2: my mortgage at the moment. I'd actually prefer seven grand

428
00:20:08,880 --> 00:20:12,760
Speaker 2: to go towards a big financial goal that I'm working towards,

429
00:20:13,040 --> 00:20:15,639
Speaker 2: because in the grand scheme of things, I know how

430
00:20:16,119 --> 00:20:19,280
Speaker 2: the indexation on a hex step is going to work

431
00:20:19,280 --> 00:20:20,960
Speaker 2: in the future, and in the future it's going to

432
00:20:21,000 --> 00:20:23,920
Speaker 2: drop back down. This is like a once off kind

433
00:20:23,920 --> 00:20:26,040
Speaker 2: of thing. It might go up, it might go down.

434
00:20:26,080 --> 00:20:28,040
Speaker 2: But at the end of the day, from my perspective

435
00:20:28,080 --> 00:20:31,240
Speaker 2: for my own personal circumstance, I know, okay, cool, I'll

436
00:20:31,280 --> 00:20:34,040
Speaker 2: cop that so that I can actually just continue on

437
00:20:34,400 --> 00:20:36,960
Speaker 2: with the financial goals. I've got right to pay off

438
00:20:37,000 --> 00:20:40,720
Speaker 2: an eighty thousand dollars debt. What's the plan there? Do

439
00:20:40,800 --> 00:20:43,119
Speaker 2: I pay off another seven grand this year? Do I

440
00:20:43,160 --> 00:20:46,120
Speaker 2: pay half? What does that actually look like? And what

441
00:20:46,160 --> 00:20:50,320
Speaker 2: could that money have actually been used for? In let's

442
00:20:50,320 --> 00:20:53,399
Speaker 2: call it the real world. Right now, the ATO aren't

443
00:20:53,440 --> 00:20:56,919
Speaker 2: coming for you to make additional voluntary repayments. If for

444
00:20:57,040 --> 00:21:02,480
Speaker 2: some ungodly reason, I become completely unemployed and have absolutely

445
00:21:02,520 --> 00:21:04,919
Speaker 2: no income. I know that my hex stet is not

446
00:21:04,960 --> 00:21:06,800
Speaker 2: something that someone is going to chase me for.

447
00:21:06,960 --> 00:21:09,080
Speaker 5: Yeah, I was gonna ask, actually because I this might

448
00:21:09,160 --> 00:21:11,240
Speaker 5: seem really ignorant, But when I did say I didn't

449
00:21:11,240 --> 00:21:12,800
Speaker 5: go to union. I mean, I don't have any degrees

450
00:21:12,840 --> 00:21:14,800
Speaker 5: or any qualifications, but I did when I was younger,

451
00:21:14,920 --> 00:21:17,920
Speaker 5: go to like start things and then never finish them.

452
00:21:18,040 --> 00:21:21,280
Speaker 2: Very common in our community, and I never stressed about

453
00:21:21,280 --> 00:21:23,000
Speaker 2: hexts will happen if you don't pay for it. I

454
00:21:23,520 --> 00:21:25,800
Speaker 2: heard you say that something about borrowing power, like it

455
00:21:25,960 --> 00:21:28,760
Speaker 2: maybe influences that, But what really is the worst that

456
00:21:28,800 --> 00:21:31,439
Speaker 2: will happen if you don't pay your hex debt at

457
00:21:31,480 --> 00:21:34,240
Speaker 2: a reasonable time. I mean, if you don't make the

458
00:21:34,240 --> 00:21:38,280
Speaker 2: compulsory repayments right like which are taken out of your paycheck,

459
00:21:38,480 --> 00:21:41,800
Speaker 2: and for some reason you told your employer that you

460
00:21:41,840 --> 00:21:43,600
Speaker 2: didn't have a hex stet and they gave that money

461
00:21:43,600 --> 00:21:46,040
Speaker 2: to you and they weren't making those payments. At tax time,

462
00:21:46,080 --> 00:21:47,800
Speaker 2: they'll give you a debt, so you have to pay that.

463
00:21:48,400 --> 00:21:50,680
Speaker 4: That happened to my friend he over It wasn't even

464
00:21:50,720 --> 00:21:53,520
Speaker 4: he missed his payments. He earned more than he thought it.

465
00:21:53,520 --> 00:21:55,720
Speaker 4: He's a tradee earned more than he was predicted to

466
00:21:55,800 --> 00:21:58,679
Speaker 4: earn because he was doing hips overtime and the end

467
00:21:58,680 --> 00:22:00,040
Speaker 4: of the financial year, they were like, you have to

468
00:22:00,040 --> 00:22:03,400
Speaker 4: pay off your entire outstanding hext step, which is pretty scary.

469
00:22:03,680 --> 00:22:07,479
Speaker 4: That's obviously a very extreme circumstance. Like he worked crazy

470
00:22:07,480 --> 00:22:08,320
Speaker 4: amounts of overtime.

471
00:22:08,359 --> 00:22:11,160
Speaker 2: Because yeah, it can be scary. That's why we're saying

472
00:22:11,240 --> 00:22:12,920
Speaker 2: check like make sure that if you have a hex

473
00:22:12,960 --> 00:22:16,359
Speaker 2: step you are making contributions. They actually won't chase you

474
00:22:16,400 --> 00:22:19,240
Speaker 2: for more than the minimum contributions each year, and you

475
00:22:19,320 --> 00:22:21,720
Speaker 2: only have to make those contributions if you make over

476
00:22:21,760 --> 00:22:25,800
Speaker 2: the minimum threshold. And it is the only debt in Australia. Morbid.

477
00:22:25,880 --> 00:22:28,040
Speaker 2: But it's the only debt in Australia that dies with you.

478
00:22:28,400 --> 00:22:30,600
Speaker 2: If you have a personal loan that will pass on

479
00:22:30,680 --> 00:22:33,600
Speaker 2: to your estate, and you know, any profit that comes

480
00:22:33,600 --> 00:22:35,359
Speaker 2: out of your state will have to pay off your debt.

481
00:22:35,600 --> 00:22:38,760
Speaker 2: But your hex stet is just wiped if you die.

482
00:22:38,880 --> 00:22:41,920
Speaker 2: I think that's relatively amazing. I mean, we could also

483
00:22:42,080 --> 00:22:46,160
Speaker 2: use the example of should I make additional superannuation contributions

484
00:22:46,200 --> 00:22:49,200
Speaker 2: or pay off my hex stet or should I same

485
00:22:49,240 --> 00:22:53,280
Speaker 2: situation slightly different because of the tax ramifications, but should

486
00:22:53,320 --> 00:22:55,600
Speaker 2: I be investing in the share market or should I

487
00:22:55,680 --> 00:22:57,920
Speaker 2: be paying off my hex stet?

488
00:22:58,160 --> 00:22:59,280
Speaker 4: Too much to cover right now?

489
00:23:00,040 --> 00:23:03,000
Speaker 2: Episode do? Yeah, let's do an entire episode. But I

490
00:23:03,040 --> 00:23:06,040
Speaker 2: guess the grand scheme of things. Let's just put two

491
00:23:06,240 --> 00:23:08,320
Speaker 2: examples on the table and you guys can tell me

492
00:23:08,359 --> 00:23:12,320
Speaker 2: what makes sense. Your HEXTEBT is sitting at X amount

493
00:23:12,560 --> 00:23:15,879
Speaker 2: and you're going to get indexed seven percent on that

494
00:23:16,520 --> 00:23:19,000
Speaker 2: you have an additional thousand dollars that you could either

495
00:23:19,040 --> 00:23:21,280
Speaker 2: contribute to your hextet or put in the share market.

496
00:23:21,400 --> 00:23:23,960
Speaker 2: The Australian share market over the last twenty years has

497
00:23:24,000 --> 00:23:28,200
Speaker 2: returned an average of eleven percent. You will get an

498
00:23:28,800 --> 00:23:31,720
Speaker 2: average return of seven percent. By putting your thousand dollars

499
00:23:31,720 --> 00:23:34,520
Speaker 2: into your hextet and paying that off early, you will

500
00:23:34,560 --> 00:23:37,600
Speaker 2: get an eleven percent return. If you put it into

501
00:23:37,640 --> 00:23:40,800
Speaker 2: a share portfolio, you would probably also get a higher

502
00:23:40,840 --> 00:23:43,800
Speaker 2: return because if you put it into the suberannuation environment,

503
00:23:43,800 --> 00:23:46,000
Speaker 2: there would be a whole heap of other tax benefits

504
00:23:46,040 --> 00:23:49,040
Speaker 2: associated with that, and at a minimum, you're probably making

505
00:23:49,080 --> 00:23:52,760
Speaker 2: an additional what twenty one percent if you are at

506
00:23:52,800 --> 00:23:56,200
Speaker 2: the lower marginal tax bracket or the average marginal tax

507
00:23:56,240 --> 00:23:59,879
Speaker 2: bracket and you are contributing to Super, so your money

508
00:23:59,880 --> 00:24:02,480
Speaker 2: is immediately worth twenty one percent more inside Super than

509
00:24:02,480 --> 00:24:06,080
Speaker 2: not because the superannuation environment is fifteen percent instead of

510
00:24:06,119 --> 00:24:09,320
Speaker 2: your marginal tax bracket eleven percent plus that twenty one

511
00:24:09,359 --> 00:24:14,560
Speaker 2: percent or seven percent on your hex about there's a

512
00:24:14,600 --> 00:24:16,919
Speaker 2: lot to think about, but I think it's all about

513
00:24:17,280 --> 00:24:20,919
Speaker 2: where is the power Because right now that example of

514
00:24:20,920 --> 00:24:23,480
Speaker 2: that thousand dollars for Jess might mean a lot more

515
00:24:23,520 --> 00:24:26,480
Speaker 2: because her next big financial goal is buying a house

516
00:24:27,640 --> 00:24:29,920
Speaker 2: might mean nothing to you, Beck because you're like, I'm

517
00:24:29,960 --> 00:24:32,639
Speaker 2: not paying off my HEX stet also not buying a house,

518
00:24:32,880 --> 00:24:35,000
Speaker 2: So like, why would I want a seven percent return

519
00:24:35,000 --> 00:24:37,199
Speaker 2: when I can get an eleven percent return for the

520
00:24:37,200 --> 00:24:40,280
Speaker 2: money that I want to, you know, quote invest excess.

521
00:24:40,320 --> 00:24:42,760
Speaker 2: So I think it's different horses for different courses. There

522
00:24:42,880 --> 00:24:46,199
Speaker 2: is not one answer to this. It's going to be

523
00:24:46,400 --> 00:24:50,480
Speaker 2: very different. Does it suck? Absolutely? Can you make voluntary

524
00:24:50,480 --> 00:24:53,800
Speaker 2: repayments at any time you want? Absolutely? You can? Does

525
00:24:53,840 --> 00:24:54,720
Speaker 2: it mean you should know?

526
00:24:55,720 --> 00:24:55,800
Speaker 1: So?

527
00:24:55,920 --> 00:24:59,120
Speaker 2: I think it's all about what you want to do.

528
00:24:59,560 --> 00:25:02,800
Speaker 2: And at the end of the day, everyone's personal financial

529
00:25:02,880 --> 00:25:05,960
Speaker 2: circumstances are different, and it's all about even whether you

530
00:25:06,000 --> 00:25:09,640
Speaker 2: have that. Please do not feel guilty or upset if

531
00:25:09,680 --> 00:25:13,679
Speaker 2: this indexation happens and on the first of June you

532
00:25:13,840 --> 00:25:17,600
Speaker 2: are so upset because your hex was indexed by seven

533
00:25:17,640 --> 00:25:19,640
Speaker 2: percent you don't have the free cash flow to pay

534
00:25:19,640 --> 00:25:22,800
Speaker 2: more off. Baby. It's fine, It's fine, is what it is.

535
00:25:22,960 --> 00:25:23,640
Speaker 4: It is what it is.

536
00:25:24,040 --> 00:25:27,399
Speaker 2: We're just going to keep on keeping on that you

537
00:25:27,400 --> 00:25:29,440
Speaker 2: can exactly. We're all doing the best that we can.

538
00:25:29,880 --> 00:25:33,200
Speaker 2: This is only if you had additional funds. Yeah, yeah,

539
00:25:33,240 --> 00:25:35,520
Speaker 2: which if you and far between at this point in time,

540
00:25:35,960 --> 00:25:38,359
Speaker 2: tell me about it, and it's exactly and this's economy.

541
00:25:38,400 --> 00:25:41,720
Speaker 4: Indeed, speaking of having additional funds, though someone slid into

542
00:25:41,720 --> 00:25:43,760
Speaker 4: our DMS this week, didn't they about a friend who

543
00:25:43,800 --> 00:25:45,680
Speaker 4: may or may not have some of those funds available.

544
00:25:47,080 --> 00:25:48,800
Speaker 2: I feel like this is a really judge you one.

545
00:25:48,840 --> 00:25:50,879
Speaker 2: Are you ready? Are you ready? I don't know if

546
00:25:50,920 --> 00:25:53,680
Speaker 2: I'm ready. I feel like the judgment is coming out

547
00:25:53,960 --> 00:25:56,040
Speaker 2: so our DM this week. Jess, You're right, I feel

548
00:25:56,080 --> 00:25:59,680
Speaker 2: like it's going to get a little bit spicy. Alright, Hi, ladies.

549
00:25:59,760 --> 00:26:02,080
Speaker 2: I have a close friend who spends heaps of money

550
00:26:02,119 --> 00:26:05,320
Speaker 2: on what I would view as unnecessary items. Say it

551
00:26:05,440 --> 00:26:08,320
Speaker 2: be a nice bag or nice jewelry. I suppose a

552
00:26:08,440 --> 00:26:13,000
Speaker 2: lot of materialistic things. But then she always complains about

553
00:26:13,040 --> 00:26:15,719
Speaker 2: being poor and having no money. When it asked her

554
00:26:15,720 --> 00:26:17,760
Speaker 2: to catch up for bunch or for dinner, she tells

555
00:26:17,800 --> 00:26:19,239
Speaker 2: me she can't afford to do this with me as

556
00:26:19,359 --> 00:26:21,960
Speaker 2: she has no money. I also know she hasn't been

557
00:26:22,000 --> 00:26:24,440
Speaker 2: able to make her rent payments some months and has

558
00:26:24,480 --> 00:26:27,359
Speaker 2: to do it sos to her parents. I get super

559
00:26:27,400 --> 00:26:30,320
Speaker 2: frustrated with this and feel like she's prioritizing money to

560
00:26:30,359 --> 00:26:33,719
Speaker 2: the wrong things in life and neglecting our friendship. I

561
00:26:33,760 --> 00:26:36,040
Speaker 2: know I shouldn't judge her on what she chooses to

562
00:26:36,040 --> 00:26:38,040
Speaker 2: spend her money on, and I need to deal with

563
00:26:38,080 --> 00:26:40,560
Speaker 2: my feelings, but this is so hard for me to

564
00:26:40,600 --> 00:26:44,560
Speaker 2: watch and to watch her do this. Any advice is appreciated.

565
00:26:44,960 --> 00:26:46,600
Speaker 4: It's a complicated one, isn't it.

566
00:26:46,720 --> 00:26:49,159
Speaker 2: Yeah, it's a while time at a housemate that was

567
00:26:49,200 --> 00:26:52,399
Speaker 2: like this, how frustrating because then it actually kind of

568
00:26:52,440 --> 00:26:53,200
Speaker 2: like impacts you.

569
00:26:53,320 --> 00:26:54,399
Speaker 4: Yeah, yeah, yeah, And it was.

570
00:26:54,400 --> 00:26:56,639
Speaker 5: Kind of weak because I don't think she like I

571
00:26:56,640 --> 00:27:00,359
Speaker 5: would feel really awkward asking someone for anything, even to

572
00:27:00,480 --> 00:27:03,080
Speaker 5: like pass the salt on a dinner table or something,

573
00:27:03,119 --> 00:27:06,919
Speaker 5: but she would very comfortably and casually ask to borrow

574
00:27:06,960 --> 00:27:08,920
Speaker 5: money every now and then. And I'm like, it took

575
00:27:08,960 --> 00:27:11,000
Speaker 5: a while because it's very awkward and someone asks you,

576
00:27:11,119 --> 00:27:13,240
Speaker 5: it's awkward to say no. But I could see that

577
00:27:13,280 --> 00:27:16,080
Speaker 5: she was like anyway, and buying this new car, buying

578
00:27:16,080 --> 00:27:19,000
Speaker 5: this EA scooter, and also can I borrow money for rent?

579
00:27:19,160 --> 00:27:26,240
Speaker 2: And scooter is so specific. I hope she evencause she's great.

580
00:27:26,280 --> 00:27:29,400
Speaker 2: She's a great person, but very very funny with money. Yeah,

581
00:27:29,440 --> 00:27:32,160
Speaker 2: So I can definitely relate to this, and I think

582
00:27:32,160 --> 00:27:34,520
Speaker 2: we've all had a friend, yes, at some point.

583
00:27:35,240 --> 00:27:38,040
Speaker 4: Yes, I feel like until you said the rent thing,

584
00:27:38,160 --> 00:27:39,720
Speaker 4: I was kind of like, oh, like, let her do

585
00:27:39,760 --> 00:27:41,560
Speaker 4: what she went with her money. You know, it's not

586
00:27:41,600 --> 00:27:43,360
Speaker 4: our place. As soon as you said the rent thing, though,

587
00:27:43,400 --> 00:27:46,040
Speaker 4: I was like, it's not our place to judge other

588
00:27:46,080 --> 00:27:49,119
Speaker 4: people's spending habits. But it sounds like at the same time,

589
00:27:49,400 --> 00:27:52,160
Speaker 4: she's being enabled by the people around her, like her

590
00:27:52,200 --> 00:27:58,000
Speaker 4: parents and things like that, to make probably questionable financial choices.

591
00:27:58,400 --> 00:28:01,040
Speaker 4: I can understand how the person who's into us, the friend,

592
00:28:01,080 --> 00:28:04,320
Speaker 4: is feeling neglected. And you know, it's hard to say, oh,

593
00:28:04,440 --> 00:28:06,359
Speaker 4: I can't afford to go out for dinner with you,

594
00:28:06,400 --> 00:28:08,320
Speaker 4: which would be maybe fifty dollars, but I can buy

595
00:28:08,320 --> 00:28:10,399
Speaker 4: this expensive pair of shoes and you go okay. So

596
00:28:10,600 --> 00:28:14,160
Speaker 4: I'm not feeling like the priority here, and that's maybe

597
00:28:14,640 --> 00:28:17,520
Speaker 4: what she's feeling extra gross about rather than the actual

598
00:28:17,880 --> 00:28:19,280
Speaker 4: semantics of the spending habit.

599
00:28:19,680 --> 00:28:23,480
Speaker 2: Yeah, I would argue. I guess from my perspective that

600
00:28:24,000 --> 00:28:26,159
Speaker 2: you know, we all have different values, Jess. You and

601
00:28:26,200 --> 00:28:28,679
Speaker 2: I love a brunch, so to you and I not

602
00:28:28,680 --> 00:28:30,919
Speaker 2: going out for much. Sorry, not an option will be

603
00:28:31,000 --> 00:28:31,440
Speaker 2: doing that.

604
00:28:31,560 --> 00:28:33,800
Speaker 4: It's probably why Jess hasn't bought a house yet, let's

605
00:28:33,840 --> 00:28:35,720
Speaker 4: be honest.

606
00:28:35,000 --> 00:28:40,040
Speaker 2: Exactly, But if her values are on something that's not that,

607
00:28:40,240 --> 00:28:42,480
Speaker 2: Like some people don't care for going out for brunch.

608
00:28:42,560 --> 00:28:45,480
Speaker 2: Some people don't care about spending lots of money out

609
00:28:45,560 --> 00:28:48,200
Speaker 2: socializing because it's just not their vibe. And then they go,

610
00:28:48,280 --> 00:28:50,600
Speaker 2: you know what, I really want to invest in these

611
00:28:50,600 --> 00:28:54,040
Speaker 2: clothes or this bag or some jewelry, Like I mad

612
00:28:54,080 --> 00:28:56,440
Speaker 2: respect for that. I think that if that's the case,

613
00:28:56,480 --> 00:28:58,880
Speaker 2: you need to just have a chat with your friend about, well,

614
00:28:58,880 --> 00:29:00,960
Speaker 2: how can we catch up? What's the best way to

615
00:29:01,000 --> 00:29:03,080
Speaker 2: catch up, Like we've talked about it on the pod before.

616
00:29:03,120 --> 00:29:04,720
Speaker 2: Maybe you could go for a walk with your friend,

617
00:29:05,000 --> 00:29:07,400
Speaker 2: make coffees at home, and take them to the park

618
00:29:07,440 --> 00:29:09,800
Speaker 2: and have a mini breakfast picnic. Like there are so

619
00:29:09,880 --> 00:29:12,800
Speaker 2: many things that you could do with a friend that

620
00:29:12,880 --> 00:29:15,360
Speaker 2: does not involve money. I don't know. I think that

621
00:29:15,440 --> 00:29:17,600
Speaker 2: if you think that you have to spend money to

622
00:29:17,640 --> 00:29:20,920
Speaker 2: catch up with someone, you don't have a good relationship.

623
00:29:21,360 --> 00:29:24,160
Speaker 2: Like I just think that good relationships. I don't care.

624
00:29:24,360 --> 00:29:25,960
Speaker 2: I'll go wherever you want to go, back John to

625
00:29:26,000 --> 00:29:28,200
Speaker 2: sit in your car and talk for two hours like that,

626
00:29:28,480 --> 00:29:30,280
Speaker 2: I would do that, Like, do you know what I mean?

627
00:29:30,360 --> 00:29:32,680
Speaker 2: It's I just want to see you as an individual.

628
00:29:32,760 --> 00:29:35,760
Speaker 2: I don't care about the experience. If it's the experience

629
00:29:35,840 --> 00:29:38,320
Speaker 2: you're craving, maybe you need to find a friendship that

630
00:29:38,600 --> 00:29:41,880
Speaker 2: also has the exact same values so that you know.

631
00:29:42,200 --> 00:29:45,640
Speaker 2: When Beck you say I don't really like brunch, I go, oh, well,

632
00:29:45,720 --> 00:29:47,840
Speaker 2: maybe I'll just do that activity that I want to

633
00:29:47,840 --> 00:29:50,840
Speaker 2: do with Jess. So I think it's about that, But

634
00:29:51,080 --> 00:29:54,560
Speaker 2: just that overlay you mentioned about the rent, so you're

635
00:29:54,600 --> 00:29:57,560
Speaker 2: saying it's a bit irresponsible at a layer of complexity

636
00:29:57,560 --> 00:29:59,800
Speaker 2: because then you go, well, is it my job as

637
00:29:59,840 --> 00:30:03,680
Speaker 2: a friend to kind of point out that perhaps the

638
00:30:03,800 --> 00:30:06,960
Speaker 2: choices that she's making are you know, if you continue

639
00:30:06,960 --> 00:30:08,719
Speaker 2: that habit, your parents aren't always going to be there

640
00:30:08,720 --> 00:30:11,240
Speaker 2: to value out right, and so at some point she's

641
00:30:11,240 --> 00:30:14,240
Speaker 2: going to have to learn to prioritize the more important

642
00:30:14,240 --> 00:30:16,240
Speaker 2: things from the less important things. But then it's hard

643
00:30:16,240 --> 00:30:17,800
Speaker 2: because you're like, well, I'm her friend, not her mum,

644
00:30:17,840 --> 00:30:19,600
Speaker 2: and so you know, where do you how do you

645
00:30:19,640 --> 00:30:22,680
Speaker 2: make the choice? And we obviously know nothing about this

646
00:30:22,840 --> 00:30:26,600
Speaker 2: girl's financial circumstances in exactly the same way as this

647
00:30:26,680 --> 00:30:30,440
Speaker 2: friend who's written in has no idea about her financial circumstances.

648
00:30:31,000 --> 00:30:33,280
Speaker 2: We have not been told what she earns. We don't

649
00:30:33,320 --> 00:30:36,160
Speaker 2: know what on average she spends. You could look at

650
00:30:36,200 --> 00:30:40,360
Speaker 2: me and go, oh, he's really irresponsible. I love a

651
00:30:40,440 --> 00:30:43,840
Speaker 2: nice pair of shoes, adore. You might have heard me

652
00:30:43,920 --> 00:30:46,600
Speaker 2: say something, and actually you never would have heard me say, oh,

653
00:30:46,640 --> 00:30:48,800
Speaker 2: I'm so poor, Like that's just not something that would

654
00:30:48,800 --> 00:30:51,520
Speaker 2: come out of my mouth because it's just not true.

655
00:30:51,600 --> 00:30:54,200
Speaker 2: Let's be honest. And I also hate when people say

656
00:30:54,240 --> 00:30:56,840
Speaker 2: things like I'm so poor and you want to shake

657
00:30:56,880 --> 00:30:59,000
Speaker 2: them and be like, you have an emergency fund, you

658
00:30:59,080 --> 00:31:03,520
Speaker 2: have access to money, you have a job, sit down like, no, no,

659
00:31:03,640 --> 00:31:06,720
Speaker 2: you're not poor. You have made some poor decisions, which

660
00:31:06,760 --> 00:31:08,960
Speaker 2: means the one thing that you want to do right

661
00:31:09,000 --> 00:31:12,360
Speaker 2: now is not in reach. Like it does frustrate me.

662
00:31:12,520 --> 00:31:15,160
Speaker 2: And obviously, in this circumstance, if she's not able to

663
00:31:15,200 --> 00:31:18,440
Speaker 2: make rent, I'm assuming she also doesn't have an emergency fund,

664
00:31:18,560 --> 00:31:21,040
Speaker 2: which then tells me she probably needs to learn a

665
00:31:21,080 --> 00:31:24,680
Speaker 2: bit more about budgeting cash flow. Personally, I don't know

666
00:31:24,680 --> 00:31:26,680
Speaker 2: how you guys are going to approach this, but personally

667
00:31:26,720 --> 00:31:28,560
Speaker 2: I would not be bringing it up with my friend

668
00:31:29,160 --> 00:31:31,920
Speaker 2: because I don't think it's my position, Jess, to tell

669
00:31:31,960 --> 00:31:34,520
Speaker 2: you how to live your life. If you said, oh,

670
00:31:34,560 --> 00:31:36,680
Speaker 2: I really wish I knew more about it, I will

671
00:31:36,760 --> 00:31:40,040
Speaker 2: help you. If you showed any interest in that, I'll

672
00:31:40,080 --> 00:31:42,360
Speaker 2: be all over it. Maybe I'd even share as she's

673
00:31:42,360 --> 00:31:44,200
Speaker 2: on the Money episode and be like, oh my gosh, Jess,

674
00:31:44,240 --> 00:31:46,560
Speaker 2: I really enjoyed this episode. It was one of my faves.

675
00:31:46,760 --> 00:31:47,000
Speaker 3: Yep.

676
00:31:47,560 --> 00:31:50,320
Speaker 2: But I don't think it's your position because who knows.

677
00:31:50,560 --> 00:31:53,360
Speaker 2: Maybe her parents have a relationship. When we talked about

678
00:31:53,360 --> 00:31:55,400
Speaker 2: this on the Bank of Mum and Dad. What if

679
00:31:55,440 --> 00:31:57,800
Speaker 2: her parents are the type of parents that actually really

680
00:31:57,840 --> 00:32:01,520
Speaker 2: really really want to give their child that and feel

681
00:32:01,640 --> 00:32:04,080
Speaker 2: as though that's their obligation. I don't know, what are

682
00:32:04,080 --> 00:32:06,920
Speaker 2: cultures like. Maybe that's a part of it. Yeah, I

683
00:32:07,000 --> 00:32:09,680
Speaker 2: don't know, but it's not my place to judge. And

684
00:32:09,720 --> 00:32:12,280
Speaker 2: I think that, Yeah, I just don't think i'd be

685
00:32:12,280 --> 00:32:14,040
Speaker 2: bringing it up. What would you guys be doing.

686
00:32:14,200 --> 00:32:16,200
Speaker 4: I feel like I would probably be touching on the

687
00:32:16,240 --> 00:32:19,480
Speaker 4: how I'm feeling in the relationship thing, saying that I'm

688
00:32:19,480 --> 00:32:22,080
Speaker 4: feeling neglected and feeling like I'm not a priority because

689
00:32:22,080 --> 00:32:24,040
Speaker 4: you're happy to spend on other things and not things

690
00:32:24,040 --> 00:32:25,960
Speaker 4: that I want to do. Where do we meet in

691
00:32:26,000 --> 00:32:28,600
Speaker 4: the middle have that kind of conversation. Yeah, it is

692
00:32:28,640 --> 00:32:30,760
Speaker 4: hard to jump in and give someone advice on something

693
00:32:30,760 --> 00:32:32,760
Speaker 4: if I haven't asked for it, particularly on finance, because

694
00:32:32,800 --> 00:32:35,840
Speaker 4: some people are not as comfy talking about it as

695
00:32:35,880 --> 00:32:37,800
Speaker 4: our team is because we do it every day. So

696
00:32:38,080 --> 00:32:40,520
Speaker 4: for some people it can be a really tough conversation

697
00:32:40,560 --> 00:32:41,480
Speaker 4: to broach as well.

698
00:32:41,600 --> 00:32:44,080
Speaker 5: Yeah, that's true. I think that I kind of do this.

699
00:32:44,120 --> 00:32:45,960
Speaker 5: I don't think i'd be able to mention or bring

700
00:32:46,000 --> 00:32:46,960
Speaker 5: it up to them either.

701
00:32:47,000 --> 00:32:49,000
Speaker 2: But I mean, lived with someone and you didn't bring

702
00:32:49,040 --> 00:32:51,800
Speaker 2: it up. You just cowardly were like no exactly.

703
00:32:51,880 --> 00:32:53,720
Speaker 5: But I'm wondering if they were a little bit closer

704
00:32:53,800 --> 00:32:56,000
Speaker 5: to me than maybe I would. But I guess, like

705
00:32:56,080 --> 00:32:59,200
Speaker 5: it really it really just depends, because like I can't

706
00:32:59,240 --> 00:33:01,320
Speaker 5: tell if this person coming from a place of like

707
00:33:01,320 --> 00:33:03,600
Speaker 5: like you're saying, Jess, like they're feeling a bit neglected

708
00:33:03,600 --> 00:33:05,520
Speaker 5: and they're feeling like they're not a priority, or if

709
00:33:05,520 --> 00:33:08,480
Speaker 5: they're coming from a place where they're genuinely concerned for

710
00:33:08,520 --> 00:33:12,000
Speaker 5: this person's financial wellbeing. And I think it's probably a

711
00:33:12,000 --> 00:33:14,640
Speaker 5: combination of both. I could be wrong, though, but I

712
00:33:14,640 --> 00:33:18,720
Speaker 5: would say it seems like this person is lucky enough

713
00:33:18,720 --> 00:33:20,680
Speaker 5: to have the bank of mom and dad and be

714
00:33:20,800 --> 00:33:23,760
Speaker 5: able to, you know, still make rent, you know, with

715
00:33:24,360 --> 00:33:26,600
Speaker 5: like kind of filling in the gaps with their parents' money,

716
00:33:26,640 --> 00:33:29,280
Speaker 5: and they seem to be doing okay. But I would say,

717
00:33:29,360 --> 00:33:31,440
Speaker 5: if it is more so you're feeling neglected, I would

718
00:33:31,840 --> 00:33:33,520
Speaker 5: kind of say the same thing, just kind of broach it,

719
00:33:33,640 --> 00:33:35,000
Speaker 5: or try and find a way where you don't have

720
00:33:35,040 --> 00:33:37,600
Speaker 5: to spend money hanging out with this person and then

721
00:33:37,640 --> 00:33:41,040
Speaker 5: for everything else it's far too complicated, Like they don't

722
00:33:41,040 --> 00:33:42,800
Speaker 5: seem to have much financial literacy.

723
00:33:42,840 --> 00:33:44,000
Speaker 2: It feels like maybe they were.

724
00:33:44,480 --> 00:33:47,320
Speaker 5: They didn't grow up with that, and that's okay. I'm

725
00:33:47,320 --> 00:33:49,680
Speaker 5: certainly there and I can certainly relate to that. So

726
00:33:50,320 --> 00:33:52,480
Speaker 5: maybe they have a shopping addiction as well. Who knows.

727
00:33:53,000 --> 00:33:53,720
Speaker 4: It's all going on?

728
00:33:54,120 --> 00:33:56,920
Speaker 2: Really unpacking this one, Yeah, Jesus, let's talk about what

729
00:33:56,920 --> 00:34:00,480
Speaker 2: the community had to say before we let you, you guys,

730
00:34:00,560 --> 00:34:03,160
Speaker 2: give us your two cents. We asked, do you have

731
00:34:03,200 --> 00:34:05,960
Speaker 2: a friend like this? Sixty percent of you said yes,

732
00:34:06,080 --> 00:34:10,160
Speaker 2: pretty common. But the second question we asked was do

733
00:34:10,200 --> 00:34:12,840
Speaker 2: you find yourself sometimes judging your friend on what they

734
00:34:12,920 --> 00:34:15,839
Speaker 2: spend their money on. Yeah, ninety percent of you said, yes,

735
00:34:15,880 --> 00:34:17,719
Speaker 2: we've been there. We've all been there. Thank you for

736
00:34:17,760 --> 00:34:21,960
Speaker 2: being honest, like we're not mad. Then our next question

737
00:34:22,160 --> 00:34:24,959
Speaker 2: was do you at times prioritize spending money on your

738
00:34:25,080 --> 00:34:28,400
Speaker 2: wants rather than your needs? Sixty eight percent of you

739
00:34:28,440 --> 00:34:29,600
Speaker 2: said yeah, we do.

740
00:34:29,880 --> 00:34:31,759
Speaker 4: Again, we've all been there, We'll be there.

741
00:34:31,880 --> 00:34:33,799
Speaker 2: Then we asked you for your two cents, and so

742
00:34:34,000 --> 00:34:37,080
Speaker 2: we have a heap of responses which happen inside stories.

743
00:34:37,080 --> 00:34:39,640
Speaker 2: But then we also actually had fair few dms, so

744
00:34:39,680 --> 00:34:42,440
Speaker 2: we'll get through a lot of those. Very popular opinion

745
00:34:42,560 --> 00:34:44,759
Speaker 2: is it's not your job to save your friend or

746
00:34:44,760 --> 00:34:47,040
Speaker 2: bail them out. She'll change her ways when she wants

747
00:34:47,040 --> 00:34:50,160
Speaker 2: to and feels like she needs to. Other comments said

748
00:34:50,200 --> 00:34:52,680
Speaker 2: things like it's her money, so it's her business unless

749
00:34:52,680 --> 00:34:55,360
Speaker 2: she starts to ask you for money, which is a

750
00:34:55,360 --> 00:34:58,040
Speaker 2: good I guess segue. I mean, jessef I then was

751
00:34:58,080 --> 00:35:00,640
Speaker 2: talking to you about, Hey, Jess, can I borrow money?

752
00:35:00,719 --> 00:35:02,319
Speaker 2: Then it's like, hey, I feel like this happens a

753
00:35:02,360 --> 00:35:05,080
Speaker 2: fair bit. So's a soft launch. Yeah, because you've been

754
00:35:05,080 --> 00:35:08,160
Speaker 2: invited into the conversation about money with them. A lot

755
00:35:08,239 --> 00:35:11,000
Speaker 2: of people just said, not your problem. Other people's habits

756
00:35:11,040 --> 00:35:14,880
Speaker 2: and priorities are not your business. Someone said, isn't she

757
00:35:15,000 --> 00:35:17,840
Speaker 2: just prioritizing her money on things she wants to spend

758
00:35:17,840 --> 00:35:20,399
Speaker 2: her money on. So the good point my friend. Then

759
00:35:20,480 --> 00:35:23,359
Speaker 2: in some of the DMS we had, someone said, if

760
00:35:23,360 --> 00:35:26,160
Speaker 2: she's truly her friend, she should keep her opinions to herself.

761
00:35:26,480 --> 00:35:28,920
Speaker 2: Her friend's choices as to how she spends her money

762
00:35:28,960 --> 00:35:32,080
Speaker 2: are hers to make, and the consequences she'll bear is

763
00:35:32,160 --> 00:35:35,320
Speaker 2: slash when the well eventually drives up from her parents.

764
00:35:35,880 --> 00:35:38,040
Speaker 2: Just live your own life according to your own values

765
00:35:38,080 --> 00:35:41,080
Speaker 2: and let others live their lives too. If it means

766
00:35:41,120 --> 00:35:43,480
Speaker 2: her friend isn't able to afford to come to brunch

767
00:35:43,520 --> 00:35:46,600
Speaker 2: because rent is due were then that's her problem. Maybe

768
00:35:46,600 --> 00:35:49,520
Speaker 2: one day she'll wake up and get real about her finances,

769
00:35:49,680 --> 00:35:52,359
Speaker 2: or maybe she won't. If it bothers this girl that much,

770
00:35:52,600 --> 00:35:57,280
Speaker 2: probably best to move on from that friendship. Another person said, comment,

771
00:35:57,320 --> 00:36:00,319
Speaker 2: you didn't ask for ve I worry my friend's like

772
00:36:00,360 --> 00:36:04,000
Speaker 2: this with me. I have a weekly spend for anything recreational,

773
00:36:04,080 --> 00:36:06,520
Speaker 2: and I usually spend it each week. So planning to

774
00:36:06,520 --> 00:36:09,279
Speaker 2: spend one hundred and fifty dollars on cocktails and an

775
00:36:09,400 --> 00:36:12,640
Speaker 2: art class next week, for example, is so hard because

776
00:36:12,680 --> 00:36:14,759
Speaker 2: I'm already in this week and have used what I

777
00:36:14,800 --> 00:36:17,319
Speaker 2: could and have put a side for that. And on

778
00:36:17,360 --> 00:36:20,040
Speaker 2: the flip side, my friends see me do things that

779
00:36:20,080 --> 00:36:22,880
Speaker 2: they don't realize I had the budget for, so I

780
00:36:22,920 --> 00:36:24,879
Speaker 2: stress that they think I don't want to do things

781
00:36:24,880 --> 00:36:27,200
Speaker 2: with them. I do, but it has to be the

782
00:36:27,239 --> 00:36:29,759
Speaker 2: week in advance, so I can manage myself and my

783
00:36:29,880 --> 00:36:33,720
Speaker 2: money and take into consideration my previously made plans.

784
00:36:34,560 --> 00:36:37,200
Speaker 4: It's a good point, a very good point, for sure.

785
00:36:37,400 --> 00:36:39,640
Speaker 2: It's a good point. And I think that that's where

786
00:36:40,320 --> 00:36:43,160
Speaker 2: I wanted to like end it with the like community comments,

787
00:36:43,200 --> 00:36:45,680
Speaker 2: because it was from the flip side. It was from

788
00:36:45,840 --> 00:36:48,319
Speaker 2: the side of well, actually, maybe my friends think like

789
00:36:48,400 --> 00:36:51,120
Speaker 2: this type of stuff about me, because sometimes they ask me, oh,

790
00:36:51,200 --> 00:36:53,440
Speaker 2: jess can you out to brunch? Well, maybe you in

791
00:36:53,480 --> 00:36:56,120
Speaker 2: your food, fuel and fun account have nothing left. Yeah,

792
00:36:56,440 --> 00:36:59,120
Speaker 2: and that's so fun because you've been budgeting properly. But

793
00:36:59,640 --> 00:37:02,880
Speaker 2: if you know Jessica Ricci well Beck, you know she

794
00:37:02,920 --> 00:37:05,799
Speaker 2: has her food you'll in fun account. You also know

795
00:37:05,960 --> 00:37:09,000
Speaker 2: she keeps a very strict budget for fashion and other

796
00:37:09,080 --> 00:37:12,080
Speaker 2: items that she's saving to buy because that is in

797
00:37:12,080 --> 00:37:15,680
Speaker 2: line with her values, so genuinely, in the same week

798
00:37:15,719 --> 00:37:18,160
Speaker 2: that Jess might say no to me to go into brunch,

799
00:37:18,880 --> 00:37:21,680
Speaker 2: she might go, I'm gonna go buy address because she's

800
00:37:21,719 --> 00:37:22,560
Speaker 2: been saving for it.

801
00:37:22,680 --> 00:37:25,320
Speaker 5: Yeah, always another side to the story.

802
00:37:25,600 --> 00:37:27,880
Speaker 4: Yeah, I feel like that's the perfect takeaway from it.

803
00:37:27,960 --> 00:37:28,520
Speaker 2: Perfect takeaway.

804
00:37:28,560 --> 00:37:29,719
Speaker 4: I don't know what's going on with someone else, You

805
00:37:29,760 --> 00:37:30,879
Speaker 4: don't know how they've structured their.

806
00:37:30,800 --> 00:37:32,720
Speaker 2: Life, and it's none of your damn business.

807
00:37:33,360 --> 00:37:35,200
Speaker 4: And on that note, let's go.

808
00:37:35,360 --> 00:37:37,759
Speaker 2: I hope you guys have the most beautiful weekend and

809
00:37:37,800 --> 00:37:51,760
Speaker 2: we'll see you for Money Diaries on Monday. Bye guys, Bye,