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
Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing
Speaker 1: and the storytelling of you to make a difference for
Speaker 1: today 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 2: Hello, and welcome to She's on the the podcast. Are
Speaker 2: millennials who want financial freedom. Today is Friday, my friends,
Speaker 2: which means it is time to get our little team
Speaker 2: together and celebrate you our incredible She's on the Money community. Today,
Speaker 2: Jess is going to be sharing our favorite money wins.
Speaker 2: We're going to be helping to ads a juicy money
Speaker 2: dilemma which this week is all about hex and indexation,
Speaker 2: and we're going to be unpacking something that you slid
Speaker 2: into our DMS about this week. We're going to be
Speaker 2: talking about what to do when you have a friend
Speaker 2: who always claims to be in quotation marks poor but
Speaker 2: has a new bag or a new dress every single week.
Speaker 4: Bick.
Speaker 2: Is this something that you can relate to, like kinder
Speaker 2: to a degree. Oh, it's a hard one because I'm
Speaker 2: probably that friend. But I feel like whenever I do
Speaker 2: get a little bit of extra cash to splash, I
Speaker 2: will buy nice things for myself because I don't usually
Speaker 2: get to.
Speaker 5: So it's hard to say. But if someone like has
Speaker 5: something new every week, they're like, oh, maybe you've got.
Speaker 2: Well waiting till we hear the DM.
Speaker 5: Yeah, okay, good idea.
Speaker 2: Yeah, really dive into it. How have your weeks been
Speaker 2: my friends? Well, pretty good. It's the last week of
Speaker 2: the comedy festival and I've just been cramming, cramming. Yeah,
Speaker 2: you would have been so good at UNI. That's exactly
Speaker 2: how he got by.
Speaker 5: Yeah you got to cram. Yeah you gotta wait till
Speaker 5: last minute. Yeah, you gotta get it all done.
Speaker 2: Adhd is literally the only way I functioned us. Yes,
Speaker 2: anything we ever do, good luck getting it from me
Speaker 2: only not us.
Speaker 4: Booking our flights for a hotel internationally from the tarmac
Speaker 4: of the plane to the hotel. Oh my traumatic experience.
Speaker 5: Yes, that is so funny.
Speaker 2: Yes did you get there?
Speaker 5: Yes?
Speaker 4: I did, and I stay to Sea Land. So not
Speaker 4: a word of a complaint from me.
Speaker 2: I don't know what she complains about. Honest to god,
Speaker 2: that was a good experience. It was very funny. Actually,
Speaker 2: now you bring that up. We were literally on the time.
Speaker 2: I just like if you booked and I was like, no,
Speaker 2: let's do that.
Speaker 5: Then we went to do seal triggered. That is so
Speaker 5: stressful on the edge.
Speaker 2: Baby, It all worked out, That's what matters. No, Well,
Speaker 2: how's your week being, jes Not as stressful as the
Speaker 2: time I did that to you.
Speaker 4: Not as stressful as that. Thankfully it's been good. I've
Speaker 4: been tasked with renovating my boyfriend and his brother's childhood
Speaker 4: cubby house for my new baby nephew. Oh my god,
Speaker 4: very fun right on my alley. Can't afford to renovator house, Well, renovator.
Speaker 2: You know what there what you get and you don't
Speaker 2: get up yet.
Speaker 4: Yeah, but this week I scored a kids like play
Speaker 4: kitchen for free of Facebook market Place free. Yeah it's
Speaker 4: well loved, but I'm going to upcycle it and make
Speaker 4: it really cute, and it'll go in the cubby and
Speaker 4: it'll be a nice little addition that cost us basically nothing.
Speaker 2: So good it is that you've got to keep an
Speaker 2: eye out because I bought a kid's kitchen a little
Speaker 2: while ago. You guys have heard about this a million
Speaker 2: times if your she's on the money OG's. But they
Speaker 2: also give away all of the kid's kitchen new tensils
Speaker 2: on Facebook marketplace, So keep an eye out for that,
Speaker 2: because like they need their cuts and sauces to sell
Speaker 2: their eight dollar alertos.
Speaker 4: Of course they do. That's fair means.
Speaker 2: No, absolutely, it is not. Let's get into that though.
Speaker 2: That was a cute segue. You did, good, honey, Jess.
Speaker 2: What have you got when it comes to community money
Speaker 2: wins and confessions for us this week?
Speaker 4: Well, speaking of coffee, my first money win comes from Nicole,
Speaker 4: who said money win. My boss took everyone out for
Speaker 4: lunch today and paid, so I got free lunch and coffee.
Speaker 2: That's a good money in very good money.
Speaker 4: In In other news, I made my last payment on
Speaker 4: my after page day and I closed my account.
Speaker 2: That's actually queen behavior. That's better than free lunch.
Speaker 4: Yeah, I would say so as well. Well done, Nicole.
Speaker 4: My next money win comes from Sarah, who said she's
Speaker 4: started a new way of saving, call to the fun tacks.
Speaker 4: Every time I do something a little this like a
Speaker 4: cheeky Woolies run for dessert or a kmart trip, I
Speaker 4: get five to twenty dollars cash out and chuck it away.
Speaker 4: It's not about doing less but saving more, and it's
Speaker 4: what works for me.
Speaker 2: I had so much fun reading through the comments on
Speaker 2: that because the comments on that particular comment were people
Speaker 2: being like confused, because I was too like the.
Speaker 5: Child Wouldney every time you're at the the market.
Speaker 2: And then the comments were why would you chuck money
Speaker 2: in the bin. It turns out that's not it. She
Speaker 2: meant chuck it away into a savings account, stash it away. Yeah,
Speaker 2: like save it No, I see put the money in
Speaker 2: the bin.
Speaker 5: Okay, well when I read that, throwing out all my money?
Speaker 6: So you get what you get here, we get The
Speaker 6: next money wind comes from Gladys, who said I finally
Speaker 6: gave notice on what is now my previous rental, and
Speaker 6: after a bit of back and forth with the whole situation.
Speaker 4: I got my bond back fully refunded.
Speaker 2: Yeah, that's a win.
Speaker 4: That's a hard one because they come for your money.
Speaker 2: That is very hard. When we got our bond back
Speaker 2: in full from our last rental, I was shook. Didn't
Speaker 2: expect it was like that never comes back, you never
Speaker 2: get it out. It doesn't matter. They always find some
Speaker 2: reason why they can't give it back.
Speaker 7: Yeah.
Speaker 4: No, definitely have been there not on. My next money
Speaker 4: wind comes from Cassie who said huge money whin. I
Speaker 4: saw the sheets on the money Instagram story just in
Speaker 4: time to book all of my japan accommodation for my
Speaker 4: holiday later on this year, which I've been putting off doing.
Speaker 4: And I scored myself four hundred and seventy two dollars
Speaker 4: and seventy three cents back in my shop back account
Speaker 4: because they had the fifteen percent cash back.
Speaker 2: Fifteen percent cash back on a holiday. Beck amazing in
Speaker 2: I'm going to start using this thing. I only just
Speaker 2: really learned about it. I mean, I know you guys
Speaker 2: talk about it sometimes better. So do you know what
Speaker 2: I did earlier today? This is so lame. This isn't
Speaker 2: even sponsored sounds it it's not. I gave Beck and Maddie.
Speaker 2: Maddie's new to the team. You guys will meet her soon.
Speaker 2: A tutorial on shot back and how to.
Speaker 4: Use it very cool.
Speaker 2: I was like, this is how it works, this is
Speaker 2: where the money goes, this is how you cash it out.
Speaker 2: This is like where you can see where the good
Speaker 2: discounts are. How's it work? Like we did a full tutorial.
Speaker 2: It's really fun. I love and I've been using shop
Speaker 2: back back a new marketing manager.
Speaker 4: I've been using them for years. They're so good And
Speaker 4: if you're not following us on Instagram, I would highly
Speaker 4: recommend it and join our Facebook group because we do
Speaker 4: obviously work with shot back from time to time, and
Speaker 4: we always cherry pick the best deals to share.
Speaker 2: We're not going to share one that's not going to
Speaker 2: excite you. I don't want to put up a deal
Speaker 2: and be like you get half a percent back on
Speaker 2: this good deal. No, that's embarrassing, Like I'm not going
Speaker 2: to promote that.
Speaker 4: But a lot of the time the good ones are
Speaker 4: like a small window only like this holiday one was
Speaker 4: I think ten am to six pm. So make sure
Speaker 4: you join the group, follow us on Instagram because when
Speaker 4: there are really good ones, we do try our best
Speaker 4: to share them, even if they're not sponsoring. Because it
Speaker 4: is just four hundred dollars back for doing.
Speaker 2: It's a lot of money.
Speaker 4: It's free money, so much money. But anyway, enough about that,
Speaker 4: let me continue on. My next money win is from
Speaker 4: Sky who said, money win, My partner went to buy
Speaker 4: tickets for the AFL gather round off marketplace. I mean
Speaker 4: you mean the gather around is some kind.
Speaker 2: Of someone somewhere is laughing very hard related inability to
Speaker 2: understand what this is sports woho.
Speaker 4: She said the man gave them to him for free
Speaker 4: because he couldn't make it, which I thought was just
Speaker 4: really nice.
Speaker 2: So he's actually really cool.
Speaker 4: And then my last money in this week is from
Speaker 4: Carra who said I got married this weekend. Big life win. Congratulations, congratulations.
Speaker 4: A few weeks ago, I realized I didn't have a
Speaker 4: jacket option for Melbourne's unpredictable April weather, so way to
Speaker 4: side to look into faux for options. The ones I
Speaker 4: liked were all in the three to four hundred dollars range,
Speaker 4: so I decided to put my sewing skills to use
Speaker 4: and trot it off to spot see what the fabrics.
Speaker 4: They had found the perfect option and spent seventy dollars
Speaker 4: to make everything I needed for a cape And there's
Speaker 4: a really cute photo showing their wedding that they put
Speaker 4: on the spread. So good, how nice? Congratulations Caakara, Cara
Speaker 4: and mister Kara.
Speaker 2: And he's just Ken.
Speaker 1: Yeah.
Speaker 2: Alright, let's go to a really quick break and after
Speaker 2: the break, we're going to talk about our juicy money dilemma.
Speaker 2: But we're also going to be talking about hex and indexation.
Speaker 2: So I mean, given that's basically the hottest topic in
Speaker 2: our Facebook group, Oh my god, I know you guys
Speaker 2: aren't going anywhere. Welcome back, everybody. Let's jump in to
Speaker 2: the Money Dilemma for the week.
Speaker 5: Hi.
Speaker 2: There, have you got a money dilemma you just can't solve?
Speaker 2: The She's on the Money team is here to help.
Speaker 2: Every week, we tackle your dilemmas, both big and small,
Speaker 2: to answer your most burning money, career and life questions.
Speaker 2: To get involved, simply head to our website and leave
Speaker 2: us a short voice recording and you might just find
Speaker 2: yourself on the show. Now, let's take a listen to
Speaker 2: this week's money Dilemma.
Speaker 7: Hey, guys, really love the podcast. Just wanted to ask
Speaker 7: a quick question about hex and the indexation. There's been
Speaker 7: rumors that the indexation is going to be at seven
Speaker 7: point nine percent this year, and I have a hex
Speaker 7: set of about forty five thousand. I'm just really wondering
Speaker 7: whether it's worth paying off some of my hex stet
Speaker 7: to reduce the indexation just because I don't want a
Speaker 7: snowball effect. If you could just give some advice, that
Speaker 7: would be really greatful. A lot of unique students who
Speaker 7: are in the same situation as me.
Speaker 4: Thank you when I say we have had so many
Speaker 4: dms on this topic. We have had so many dms
Speaker 4: on this topic I can't even tell you. And I'm
Speaker 4: kind of curious because I don't have a HEC step,
Speaker 4: but my partner does. He recently graduated and VD I'm
Speaker 4: very interested to hear it.
Speaker 2: To say on this. So I really don't want to
Speaker 2: talk about this because it makes me really mad. And
Speaker 2: I feel like, as much as there's you know, a
Speaker 2: beautiful education system here in Australia, and that is, from
Speaker 2: my perspective, a really great process, like indexing it by
Speaker 2: seven percent, like it feels like a revenue raising tactic,
Speaker 2: like why would they increase it? Anyway, We've got a
Speaker 2: lot to say about this, So your hex slash helped
Speaker 2: it or like any vocational loan, is expected to increase
Speaker 2: by this saying up to seven percent on the first
Speaker 2: of June, which is in line with the rising cost
Speaker 2: of living. There has been a lot of talk about it,
Speaker 2: and the Green Senator last year actually introduced a bill
Speaker 2: to pause indexation and increase the repayment threshold, which is
Speaker 2: very very good. But last week that bill was rejected,
Speaker 2: so we know that now that indexation is going to
Speaker 2: come into force, which is a little bit disappointing. I
Speaker 2: don't know, I feel like there should have been an outcome.
Speaker 2: The freezing would have been really good, But to be honest,
Speaker 2: the freezing, what that would have actually done, is just
Speaker 2: like kind of put off the inevitable. Wouldn't have happened now,
Speaker 2: it would have happened later, and in this economy, to
Speaker 2: be honest, let's just get it over and done with.
Speaker 2: At the same time, I don't think families that are
Speaker 2: already struggling to pay mortgages and put roofs over their
Speaker 2: heads and pay the grocery bills needed this. Like it
Speaker 2: just it's obscene to think that the government's like, do
Speaker 2: you know what, while you're down we might just give
Speaker 2: you a little kick, a little bit of another nudge
Speaker 2: like it just why why? So, the number of HECX
Speaker 2: and Help loans in Australia has gone up sharply from
Speaker 2: six hundred thousand loans in twenty sixteen to nearly eight
Speaker 2: hundred and thirty thousand loans in twenty nineteen. This is
Speaker 2: going to impact eight hundred and thirty thousand Australians, which
Speaker 2: is a lot of people. And when it comes to
Speaker 2: the proposed changes, it really really depends on what your
Speaker 2: personal circumstances are, because I think a lot of us,
Speaker 2: you know, we've always spoken about the difference between good, bad,
Speaker 2: and okay debt, and we've always said on the podcast,
Speaker 2: hex shouldn't be seen as a bad debt because it's
Speaker 2: something that's constructive for your financial future. It doesn't have
Speaker 2: quote an interest rate, does have indexation, which at this
Speaker 2: point in time is really important to talk about. But
Speaker 2: at the end of the day, we really need to
Speaker 2: talk about what this indexation rate actually means for you personally.
Speaker 2: So let's go back in time. Last year twenty twenty two,
Speaker 2: the indexation rate was three point nine percent that we
Speaker 2: weren't happy with.
Speaker 4: I remember us being annoyed when that happened that we
Speaker 4: won't spoke about it on the podcast.
Speaker 2: We spoke about it on the pod because we were
Speaker 2: really really salty about it because the year before it
Speaker 2: was point six percent, and it was point six percent
Speaker 2: because the year before it was one point eight and
Speaker 2: they did a little bit of a freeze because of COVID,
Speaker 2: So they're like, let's just not do this, Like we
Speaker 2: can't do this, and for the previous years, like if
Speaker 2: we go back twenty twenty, twenty, nineteen, twenty eighteen, twenty seventeen,
Speaker 2: it's like one point eight, one point nine, one point five.
Speaker 2: I have one point five. So this seven or potentially
Speaker 2: seven percent increase, that's wild. It is in line with
Speaker 2: the rate of inflation here in Australia, and we've talked
Speaker 2: about it on the podcast before. Cash rate increases in
Speaker 2: Australia can sometimes be a good thing because the reason
Speaker 2: the cash rate is increased each time by the RBA
Speaker 2: is essentially to stop the rate of inflation. The RBA
Speaker 2: is actively trying to make sure that we don't end
Speaker 2: up having our hex stets inflated by seven percent. They
Speaker 2: don't actually want that because it's not actually good for
Speaker 2: the economy because at the end of the day, jess
Speaker 2: if hypothetically you're paying seven percent more on your hex stet,
Speaker 2: that's seven percent more income that you don't have to
Speaker 2: spend on disposable things, and disposable things that helps the
Speaker 2: economy go round. The economy isn't just held up by
Speaker 2: us buying toilet paper in mass amounts, right. So I
Speaker 2: think it's one of those things where we need to
Speaker 2: talk about the rise stinging because it is going to sting.
Speaker 2: But at the end of the day, getting a good
Speaker 2: education is still the best thing in the long term.
Speaker 2: I'm not here saying you have to go to university
Speaker 2: to get a good job. I didn't exactly I didn't,
Speaker 2: But I am the biggest advocate of you doing you
Speaker 2: and what works for you. And as somebody who is
Speaker 2: arguably over educated and has a team of people who
Speaker 2: I would say, yess what, most of our team didn't
Speaker 2: go to UNI, and if they did go to UNI,
Speaker 2: they're not working in their field. Like I just don't
Speaker 2: think in twenty twenty three it is as important to
Speaker 2: have an education to be successful. If you are tenacious
Speaker 2: and driven and have the grit to get there genuinely.
Speaker 2: But if you want to work as a doctor, got
Speaker 2: to go to UNI. Can't just decide, oh, well, I
Speaker 2: don't want to go to UNI, but I do want
Speaker 2: to do that job. You want to be a nurse, Great,
Speaker 2: you've got to go get that degree, and that is
Speaker 2: totally okay. I mean, you might not even know what
Speaker 2: you want to do, but you do know that you
Speaker 2: want to study. Great, go do an arts degree. I
Speaker 2: started there, I transferred over to psychology because at the start,
Speaker 2: I was like, do I don't know? I don't know.
Speaker 2: I think it's really important to just choose your own path.
Speaker 2: But at the end of the day, I want you
Speaker 2: to be in the best possible pause And the best
Speaker 2: way to create financial freedom for yourself is to create
Speaker 2: a career and to create a cash flow system that works.
Speaker 2: And a part of a good cash flow system from
Speaker 2: my perspective, is having an income stream. And usually that
Speaker 2: is a job. It's not usually upfront an investment. Because
Speaker 2: I don't know about you guys, not a trust fun
Speaker 2: baby can't relate to that. I wish I would love
Speaker 2: to be a trust fund baby. My dog acts like
Speaker 2: a trust fund baby, and I say every second day,
Speaker 2: I'm like, I want her life like that looks lid
Speaker 2: Bluesy's my favorite NEPO baby. Yeah. Honestly, when I have
Speaker 2: real babies, they will not be nearly as entitled as Lucy.
Speaker 2: She can have whatever she wants. My kids say, I
Speaker 2: don't have to work for it. Yeah, like NEPO baby
Speaker 2: dogg Oh yeah.
Speaker 4: So what about the people like this listener who have
Speaker 4: completed their course, They've got their forty five thousand dollars
Speaker 4: of debt or whatever and are going, oh, my gosh,
Speaker 4: seven percent? Do I pay it off? Do I not
Speaker 4: pay it off? What were your thoughts kind of around
Speaker 4: what they could maybe consider.
Speaker 2: Yeah, look, at the end of the day, it's going
Speaker 2: to be different based on your personal circumstances. So, if
Speaker 2: you're earning more than forty eight thousand, three hundred and
Speaker 2: sixty one dollars, your employer should be deducting a percentage
Speaker 2: of your income from your pay slip to actually go
Speaker 2: towards that HEX step.
Speaker 4: You have to tell them to do that. They don't
Speaker 4: just know that you have HECTA. You've got to check
Speaker 4: the box.
Speaker 2: Oh, you've got to tip, you've got to chick the box.
Speaker 2: If you have hextet, you need to tick the box.
Speaker 2: If you're not sure, email your HR manager or whoever
Speaker 2: is in charge of payroll and go, hey, am I
Speaker 2: paying Hex? You can sign into your ATO portal and
Speaker 2: see if you have or haven't paid HEX for the
Speaker 2: last financial year. Keep in mind, though, that these figures
Speaker 2: often are only updated maybe once a year by the
Speaker 2: ATO because they only consolidate all that data when you
Speaker 2: do your tax return. So if you haven't done your
Speaker 2: tax return and you're trying to see how much hext
Speaker 2: you've paid, the ATO is like, well, I don't know,
Speaker 2: because did you have any additional deductions? Did you have
Speaker 2: any additional contributions? Like we haven't you know, done the
Speaker 2: maths on that yet, So it's not going to be there.
Speaker 2: Complete sidebar. If for some reason they're not paying it
Speaker 2: and they should have been paying it, talk to fair Work,
Speaker 2: have a chat to them. Fair Work are brilliant. So
Speaker 2: this is called a pay as you go with holding,
Speaker 2: and that would be on your pay slip and that
Speaker 2: amount is kind of like applied to your compulsory payment.
Speaker 2: So it's just at a base you'll have to pay
Speaker 2: a certain amount of money each and every single week
Speaker 2: based on what you earn right. Anything above and beyond
Speaker 2: that is called a voluntary payment, and that's where I
Speaker 2: guess this conversation opens up. Should we be making voluntary
Speaker 2: contributions to paying down our hex stet if inflation has
Speaker 2: gone up by seven percent? Obviously this is a very
Speaker 2: stressful question to answer because it is you know, one,
Speaker 2: I can't give you personal financial advice because that would
Speaker 2: be wildly irresponsible. But it's also going to depend on
Speaker 2: your circumstances. I think we need to look at, well,
Speaker 2: what is seven percent of your hex step, how much
Speaker 2: is it going to increase by? How much do you
Speaker 2: now need to contribute to keep up? And could that
Speaker 2: money have been used somewhere else. I am a very
Speaker 2: big advocate of, you know, paying it down if you've
Speaker 2: got the free cash flow. And I mean, I've got
Speaker 2: some people in our community I've been talking to and
Speaker 2: they are paying down their hextet at the moment with
Speaker 2: additional voluntary contributions. And the reason that they're doing that
Speaker 2: is because they know that their hextet at the level
Speaker 2: it's at impacts their borrowing capacity for purchasing a house
Speaker 2: by one hundred thousand dollars. I get that, Jess. You're
Speaker 2: in the process of potentially buying a house. If I said, hey,
Speaker 2: do this, you'll get an extra one hundred grand, oh done?
Speaker 2: Yeah to borrow. Yeah, you would smash that out because
Speaker 2: that's a value to you. There are going to be
Speaker 2: other people, Like, let's look at my personal financial situation.
Speaker 2: I still have a very large hex step. My hextet
Speaker 2: I think today is sitting at about eighty thousand dollars.
Speaker 2: It was one hundred thousand dollars, like more than one
Speaker 2: hundred thousand dollars a little while ago, and then I
Speaker 2: like partied when I logged in and saw that it
Speaker 2: was like not six figures anymore. That was hot, nice,
Speaker 2: really hot. I haven't made additional financial contributions to that
Speaker 2: because I don't need the borrowing capacity. But also I'm
Speaker 2: just looking at it going my money at the moment,
Speaker 2: with the rising cost of living, with the fact that
Speaker 2: I have a mortgage, And please do not think for
Speaker 2: even two seconds I'm complaining. This is just an example.
Speaker 2: My mortgage has more than doubled in its interest repayments
Speaker 2: in the last eight months. I just go, you know what,
Speaker 2: I'd much prefer to start paying off my house, and
Speaker 2: I would happily just watch my hex stets sit over
Speaker 2: there and tick off at the minimum amount over the
Speaker 2: period of time that it's going to be paid off in. Right. Yeah,
Speaker 2: So for me, it's not a driving force. I know
Speaker 2: that by making that decision, though, the indexation of my
Speaker 2: hextet is going to increase by a fair few thousand dollars. Yeah,
Speaker 2: it's not like a little amount of money. We're not
Speaker 2: talking about, okay, Victoria's just a couple of one hundred bucks,
Speaker 2: so it's ten bucks. It's going to be a fair
Speaker 2: few thousand dollars. Is that okay in my eyes at
Speaker 2: this point? Yes, Because even though on my approximately eighty
Speaker 2: thousand debt at seven percent of an inflation rate, it's
Speaker 2: probably like six and a halve seven thousand dollars ish
Speaker 2: to me paying additional I'd actually prefer seven grand on
Speaker 2: my mortgage at the moment. I'd actually prefer seven grand
Speaker 2: to go towards a big financial goal that I'm working towards,
Speaker 2: because in the grand scheme of things, I know how
Speaker 2: the indexation on a hex step is going to work
Speaker 2: in the future, and in the future it's going to
Speaker 2: drop back down. This is like a once off kind
Speaker 2: of thing. It might go up, it might go down.
Speaker 2: But at the end of the day, from my perspective,
Speaker 2: for my own personal circumstance, I know, okay, cool, I'll
Speaker 2: cop that so that I can actually just continue on
Speaker 2: with the financial goals. I've got right to pay off
Speaker 2: an eighty thousand dollars debt. What's the plan there? Do
Speaker 2: I pay off another seven grand this year? Do I
Speaker 2: pay half? What does that actually look like? And what
Speaker 2: could that money have actually been used for? In let's
Speaker 2: call it the real world. Right now, the ATO aren't
Speaker 2: coming for you to make additional voluntary repayments. If for
Speaker 2: some ungodly reason, I become completely unemployed and have absolutely
Speaker 2: no income, I know that my hex stet is not
Speaker 2: something that someone is going to chase me for.
Speaker 5: Yeah, I was gonna ask, actually because I this might
Speaker 5: seem really ignorant, But when I did say I didn't
Speaker 5: go to union. I mean, I don't have any degrees
Speaker 5: or any qualifications, but I did when I was younger,
Speaker 5: go to like start things and then never finish them.
Speaker 2: Very common in our community, and I never stressed about
Speaker 2: hexts will happen if you don't pay for it. I
Speaker 2: heard you say that something about borrowing power, like it
Speaker 2: maybe influences that, But what really is the.
Speaker 5: Worst that will happen if you don't pay your hex
Speaker 5: debt at a reasonable time.
Speaker 2: I mean, if you don't make the compulsory repayments right
Speaker 2: like which are taken out of your paycheck, and for
Speaker 2: some reason you told your employer that you didn't have
Speaker 2: a hex stet and they gave that money to you
Speaker 2: and they weren't making those payments. At tax time, they'll
Speaker 2: give you a debt, so you have to pay that.
Speaker 4: That happened to my friend he over It wasn't even
Speaker 4: he missed his payments. He earned more than he thought it.
Speaker 4: He's a tradee earned more than he was predicted to
Speaker 4: earn because he was doing hips overtime and the end
Speaker 4: of the financial year, they were like, you have to
Speaker 4: pay off your entire outstanding hext step, which is pretty scary.
Speaker 4: That's obviously a very extreme circumstance. Like he worked crazy
Speaker 4: amounts of overtime.
Speaker 2: Because yeah, it can be scary. That's why we're saying
Speaker 2: check like, make sure that if you have a hex step,
Speaker 2: you are making contributions. They actually won't chase you for
Speaker 2: more than the minimum contributions each year, and you only
Speaker 2: have to make those contributions if you make over the
Speaker 2: minimum threshold. And it is the only debt in Australia. Morbid,
Speaker 2: But it's the only debt in Australia that dies with you.
Speaker 2: If you have a personal loan that will pass on
Speaker 2: to your estate, and you know, any profit that comes
Speaker 2: out of your state will have to pay off your debt.
Speaker 2: But your hex stet is just wiped if you die.
Speaker 2: I think that's relatively amazing. I mean, we could also
Speaker 2: use the example of should I make additional superannuation contributions
Speaker 2: or pay off my hex stet or should I same
Speaker 2: situation slightly different because of the tax ramifications, but should
Speaker 2: I be investing in the share market or should I
Speaker 2: be paying off my hex stet?
Speaker 4: Too much to cover right now? Episode don't know.
Speaker 2: Yeah, let's do an entire episode. But I guess the
Speaker 2: grand scheme of things. Let's just put two examples on
Speaker 2: the table and you guys can tell me what makes sense.
Speaker 2: Your HEXTEBT is sitting at X amount and you're going
Speaker 2: to get indexed seven percent on that you have an
Speaker 2: additional thousand dollars that you could either contribute to your
Speaker 2: hextet or put in the share market. The Australian share
Speaker 2: market over the last twenty years has returned an average
Speaker 2: of eleven percent. You will get an average return of
Speaker 2: seven percent. By putting your thousand dollars into your hextet
Speaker 2: and paying that off early, you will get an eleven
Speaker 2: percent return. If you put it into a share portfolio,
Speaker 2: you would probably also get a higher return because if
Speaker 2: you put it into the suberannuation environment, there would be
Speaker 2: a whole heap of other tax benefits associated with that,
Speaker 2: and at a minimum, you're probably making an additional what
Speaker 2: twenty one percent if you are at the lower marginal
Speaker 2: tax bracket or the average marginal tax bracket and you
Speaker 2: are contributing to Super, so your money is immediately worth
Speaker 2: twenty one percent more inside Super than not because the
Speaker 2: superannuation environment is fifteen percent instead of your marginal tax
Speaker 2: bracket eleven percent plus that twenty one percent or seven
Speaker 2: percent on your hex about There's a lot to think about,
Speaker 2: but I think it's all about where is the power
Speaker 2: Because right now that example of that thousand dollars for
Speaker 2: Jess might mean a lot more because her next big
Speaker 2: financial goal is buying a house. Might mean nothing to you, Beck,
Speaker 2: because you're like, I'm not paying off my hex stet
Speaker 2: also not buying a house, So like, why would I
Speaker 2: want a seven percent return when I can get an
Speaker 2: eleven percent return for the money that I want to,
Speaker 2: you know, quote invest Except so, I think it's different
Speaker 2: horses for different courses. There is not one answer to this.
Speaker 2: It's going to be very different. Does it suck? Absolutely?
Speaker 2: Can you make voluntary repayments at any time you want? Absolutely?
Speaker 2: You can? Does it mean you should know?
Speaker 1: So?
Speaker 2: I think it's all about what you want to do.
Speaker 2: And at the end of the day, everyone's personal financial
Speaker 2: circumstances are different, and it's all about even whether you
Speaker 2: have that. Please do not feel guilty or upset if
Speaker 2: this indexation happens and on the first of June you
Speaker 2: are so upset because your hex was indexed by seven
Speaker 2: percent you don't have the free cash flow to pay
Speaker 2: more off. Baby. It's fine, It's fine, is what it is.
Speaker 5: It is what it is.
Speaker 2: We're just going to keep on keeping on that you
Speaker 2: can exactly, We're all doing the best that we can.
Speaker 2: This is only if you had additional funds. Yeah, yeah,
Speaker 2: which if you and far between at this point in time, tell.
Speaker 5: Me about it. And it's exactly and.
Speaker 4: This economy indeed, speaking of having additional funds, though someone
Speaker 4: slid into our DMS this week, didn't they about a
Speaker 4: friend who may or may not have some of those
Speaker 4: funds available.
Speaker 2: I feel like this is a really judge you one.
Speaker 2: Are you ready? Are you ready? I don't know if
Speaker 2: I'm ready. I feel like the judgment is coming out
Speaker 2: so our DM this week. Jess, You're right, I feel
Speaker 2: like it's going to get a little bit spicy. Alright, Hi, ladies.
Speaker 2: I have a close friend who spends heaps of money
Speaker 2: on what I would view as unnecessary items. Say it
Speaker 2: be a nice bag or nice jewelry. I suppose a
Speaker 2: lot of materialistic things. But then she always complains about
Speaker 2: being poor and having no money. When it asked her
Speaker 2: to catch up for bunch or for dinner, she tells
Speaker 2: me she can't afford to do this with me as
Speaker 2: she has no money. I also know she hasn't been
Speaker 2: able to make her rent payments some months and has
Speaker 2: to do it sos to her parents. I get super
Speaker 2: frustrated with this and feel like she's prioritizing money to
Speaker 2: the wrong things in life and neglecting our friendship. I
Speaker 2: know I shouldn't judge her on what she chooses to
Speaker 2: spend her money on, and I need to deal with
Speaker 2: my feelings, but this is so hard for me to
Speaker 2: watch and to watch her do this. Any advice is appreciated.
Speaker 4: It's a complicated one, isn't it.
Speaker 2: Yeah, it's a while time at a housemate that was
Speaker 2: like this, how frustrating because then it actually kind of
Speaker 2: like impacts you.
Speaker 5: Yeah, yeah, yeah, And.
Speaker 2: It was kind of weak because I don't think she
Speaker 2: like I would feel really awkward asking someone for anything,
Speaker 2: even to like pass the salt on a dinner table
Speaker 2: or something, but she would very comfortably and casually ask
Speaker 2: to borrow money every now and then. And I'm like,
Speaker 2: it took a while because it's very awkward and someone
Speaker 2: asks you, it's awkward to say no. But I could
Speaker 2: see that she was like anyway, and buying this new car,
Speaker 2: buying this e scooter and also can I borrow money
Speaker 2: for rent?
Speaker 5: And scooter?
Speaker 2: Is so specific. I hope she'll evencause she's great. She's
Speaker 2: a great person, but very very funny with money. Yeah,
Speaker 2: so I can definitely relate to this, and I think
Speaker 2: we've all had a friend, yes, at some point.
Speaker 4: Yes, I feel like until you said the rent thing,
Speaker 4: I was kind of like, oh, like, let her do
Speaker 4: what she went with her money. You know, it's not
Speaker 4: our place. As soon as you said the rent thing, though,
Speaker 4: I was like, it's not our place to judge other
Speaker 4: people's spending habits. But it sounds like at the same time,
Speaker 4: she's being enabled by the people around her, like her
Speaker 4: parents and things like that, to make probably questionable financial choices.
Speaker 4: I can understand how the person who's into us, the friend,
Speaker 4: is feeling neglected. And you know, it's hard to say, oh,
Speaker 4: I can't afford to go out for dinner with you,
Speaker 4: which would be maybe fifty dollars, but I can buy
Speaker 4: this expensive pair of shoes and you go okay. So
Speaker 4: I'm not feeling like the priority here, and that's maybe
Speaker 4: what she's feeling extra gross about rather than the actual
Speaker 4: semantics of the spending habit.
Speaker 2: Yeah, I would argue. I guess from my perspective that
Speaker 2: you know, we all have different values, Jess. You and
Speaker 2: I love a brunch, so to you and I not
Speaker 2: going out for much sorry, not an option will be
Speaker 2: doing that.
Speaker 4: It's probably why Jess hasn't bought a house yet, let's
Speaker 4: be honest.
Speaker 2: Exactly, But if her values are on something that's not that,
Speaker 2: Like some people don't care for going out for brunch.
Speaker 2: Some people don't care about spending lots of money out
Speaker 2: socializing because it's just not their vibe. And then they go,
Speaker 2: you know what, I really want to invest in these
Speaker 2: clothes or this bag or some jewelry, Like I mad
Speaker 2: respect for that. I think that if that's the case,
Speaker 2: you need to just have a chat with your friend
Speaker 2: about well, how can we catch up? What's the best
Speaker 2: way to catch up, Like we've talked about it on
Speaker 2: the pod before. Maybe you could go for a walk
Speaker 2: with your friend, make coffees at home, and take them
Speaker 2: to the park and have a mini breakfast picnic. Like
Speaker 2: there are so many things that you could do with
Speaker 2: a friend that does not involve money. I don't know.
Speaker 2: I think that if you think that you have to
Speaker 2: spend money to catch up with someone, you don't have
Speaker 2: a good relationship. Like I just think that good relationships.
Speaker 2: I don't care. I'll go wherever you want to go,
Speaker 2: back John to sit in your car and talk for
Speaker 2: two hours like that, I would do that, Like do
Speaker 2: you know what I mean? It's I just want to
Speaker 2: see you as an individual. I don't care about the experience.
Speaker 2: If it's the experience you're craving, maybe you need to
Speaker 2: find a friendship that also has the exact same values
Speaker 2: so that you know. When Beck you say I don't
Speaker 2: really like brunch, I go, oh, well, maybe I'll just
Speaker 2: do that activity that I want to do with Jess.
Speaker 2: So I think it's about that, But just that overlay
Speaker 2: you mentioned about the rent, so you're saying it's a
Speaker 2: bit irresponsible at a layer of complexity because then you go, well,
Speaker 2: is it my job as a friend to kind of
Speaker 2: point out that perhaps the choices that she's making are
Speaker 2: you know, if you continue that habit, your parents aren't
Speaker 2: always going to be there to value out right, and
Speaker 2: so at some point she's going to have to learn
Speaker 2: to prioritize the more important things from the less important things.
Speaker 2: But then it's hard because you're like, well, I'm her friend,
Speaker 2: not her mum, and so you know, where do you
Speaker 2: how do you make the choice? And we obviously know
Speaker 2: nothing about this girl's financial circumstances, in exactly the same
Speaker 2: way as this friend who's written in has no idea
Speaker 2: about her financial circumstances. We have not been told what
Speaker 2: she earns. We don't know what on average she spends.
Speaker 2: You could look at me and go, oh, he's really irresponsible.
Speaker 2: I love a nice pair of shoes, adore. You might
Speaker 2: have heard me say something, and actually you never would
Speaker 2: have heard me say, oh, I'm so poor, Like that's
Speaker 2: just not something that would come out of my mouth
Speaker 2: because it's just not true. Let's be honest. And I
Speaker 2: also hate when people say things like I'm so poor
Speaker 2: and you want to shake them and be like, you
Speaker 2: have an emergency fund, you have access to money, you
Speaker 2: have a job. Sit down like, no, no, you're not poor.
Speaker 2: You have made some poor decisions, which means the one
Speaker 2: thing that you want to do right now is not
Speaker 2: in reach. Like it does frustrate me. And obviously, in
Speaker 2: this circumstance, if she's not able to make rent, I'm
Speaker 2: assuming she also doesn't have an emergency fund, which then
Speaker 2: tells me she probably needs to learn a bit more
Speaker 2: about budgeting cash flow. Personally, I don't know how you
Speaker 2: guys are going to approach this, but personally, I would
Speaker 2: not be bringing it up with my friend because I
Speaker 2: don't think it's my position, Jess, to tell you how
Speaker 2: to live your life. If you said, oh, I really
Speaker 2: wish I knew more about it, I will help you.
Speaker 2: If you showed any interest in that, I'll be all
Speaker 2: over it. Maybe i'd even share as she's on the
Speaker 2: Money episode and be like, oh my gosh, Jess, I
Speaker 2: really enjoyed this episode. It was one of my faves.
Speaker 3: Yep.
Speaker 2: But I don't think it's your position because who knows.
Speaker 2: Maybe her parents have a relationship. When we talked about
Speaker 2: this on the Bank of Mum and Dad, what if
Speaker 2: her parents are the type of parents that actually really
Speaker 2: really really want to give their child that and feel
Speaker 2: as though that's their obligation. I don't know, what are
Speaker 2: cultures like. Maybe that's a part of it. Yeah, I
Speaker 2: don't know, but it's not my place to judge, and
Speaker 2: I think that, Yeah, I just don't think i'd be
Speaker 2: bringing it up. What would you guys be doing.
Speaker 4: I feel like I would probably be touching on the
Speaker 4: how I'm feeling in the relationship thing, saying that I'm
Speaker 4: feeling neglected and feeling like I'm not a priority. Because
Speaker 4: you're happy to spend on other things and not things
Speaker 4: that I want to do. Where do we meet in
Speaker 4: the middle have that kind of conversation. Yeah, it is
Speaker 4: hard to jump in and give someone advice on something
Speaker 4: if I haven't asked for it, particularly on finance, because
Speaker 4: some people are not as comfy talking about it as
Speaker 4: our team is because we do it every day. So
Speaker 4: for some people it can be a really tough conversation
Speaker 4: to broach as well.
Speaker 5: Yeah, that's true. I think that I kind of do this.
Speaker 5: I don't think i'd be able to mention or bring
Speaker 5: it up to them either.
Speaker 2: But I mean lived with someone and you didn't bring
Speaker 2: it up. You just cowardly were like no exactly. But
Speaker 2: I'm wondering if they were a little bit closer to
Speaker 2: me than maybe I would. But I guess, like it
Speaker 2: really it really just depends, because like I can't tell
Speaker 2: if this person coming from a place of like like
Speaker 2: you're saying, Jess, like they're feeling a bit neglected and
Speaker 2: they're feeling like they're not a priority, or if they're
Speaker 2: coming from a place where they're genuinely concerned for this
Speaker 2: person's financial wellbeing. And I think it's probably a combination
Speaker 2: of both. I could be wrong, though, but I would
Speaker 2: say it seems like this person is lucky enough to
Speaker 2: have the bank of mom and dad and be able to,
Speaker 2: you know, still make rent, you know, with like kind
Speaker 2: of filling in the gaps with their parents' money, and
Speaker 2: they seem to be doing okay. But I would say,
Speaker 2: if it is more so you're feeling neglected, I would
Speaker 2: kind of say the same thing. Just kind of broach it,
Speaker 2: or try and find a way where you don't have
Speaker 2: to spend money hanging out with this person and.
Speaker 5: Then for everything else. It's far too complicated, Like they
Speaker 5: don't seem to have much financial literacy. It feels like
Speaker 5: maybe they were they didn't grow up with that, and
Speaker 5: that's okay. I'm certainly there and I can certainly relate
Speaker 5: to that. So maybe they have a shopping addiction as well.
Speaker 5: Who knows.
Speaker 4: It's all going on?
Speaker 2: Really unpacking this one, Yeah, Jesus, let's talk about what
Speaker 2: the community had to say before we let you, you guys,
Speaker 2: give us your two cents. We asked do you have
Speaker 2: a friend like this? Sixty percent of you said yes,
Speaker 2: pretty common. But the second question we asked was do
Speaker 2: you find yourself sometimes judging your friend on what they
Speaker 2: spend their money on. Yeah, ninety percent of you said, yes,
Speaker 2: we've been there. We've all been there. Thank you for
Speaker 2: being honest, like we're not mad. Then our next question
Speaker 2: was do you at times prioritize spending money on your
Speaker 2: wants rather than your needs? Sixty eight percent of you
Speaker 2: said yeah.
Speaker 5: We do.
Speaker 4: Again, we've all been there, We'll be there.
Speaker 2: Then we asked you for your two cents, and so
Speaker 2: we have a heap of responses which happen inside stories.
Speaker 2: But then we also actually had fair few dms, so
Speaker 2: we'll get through a lot of those. Very popular opinion
Speaker 2: is it's not your job to save your friend or
Speaker 2: bail them out. She'll change her ways when she wants
Speaker 2: to and feels like she needs to. Other comments said
Speaker 2: things like it's her money, so it's her business unless
Speaker 2: she starts to ask you for money, which is a
Speaker 2: good I guess segue. I mean, jessef I then was
Speaker 2: talking to you about, Hey, Jess, can I borrow money?
Speaker 2: Then it's like, hey, I feel like this happens a
Speaker 2: fair bit. So's a soft launch. Yeah, because you've been
Speaker 2: invited into the conversation about money with them. A lot
Speaker 2: of people just said, not your problem. Other people's habits
Speaker 2: and priorities are not your business. Someone said, isn't she
Speaker 2: just prioritizing her money on things she wants to spend
Speaker 2: her money on. So the good point my friend. Then
Speaker 2: in some of the DMS we had, someone said, if
Speaker 2: she's truly her friend, she should keep her opinions to herself.
Speaker 2: Her friend's choices as to how she spends her money
Speaker 2: are hers to make, and the consequences she'll bear is
Speaker 2: slash when the well eventually drives up from her parents.
Speaker 2: Just live your own life according to your own values
Speaker 2: and let others live their lives too. If it means
Speaker 2: her friend isn't able to afford to come to brunch
Speaker 2: because rent is due were then that's her problem. Maybe
Speaker 2: one day she'll wake up and get real about her finances,
Speaker 2: or maybe she won't. If it bothers this girl that much,
Speaker 2: probably best to move on from that friendship. Another person said, comment,
Speaker 2: you didn't ask for ve I worry my friend's like
Speaker 2: this with me. I have a weekly spend for anything recreational,
Speaker 2: and I usually spend it each week. So planning to
Speaker 2: spend one hundred and fifty dollars on cocktails and an
Speaker 2: art class next week, for example, is so hard because
Speaker 2: I'm already in this week and have used what I
Speaker 2: could and have put a side for that. And on
Speaker 2: the flip side, my friends see me do things that
Speaker 2: they don't realize I had the budget for, so I
Speaker 2: stress that they think I don't want to do things
Speaker 2: with them. I do, but it has to be the
Speaker 2: week in advance, so I can manage myself and my
Speaker 2: money and take into consideration my previously made plans.
Speaker 5: It's a good point, a very good point, for sure.
Speaker 2: It's a good point. And I think that that's where
Speaker 2: I wanted to like end it with the like community comments,
Speaker 2: because it was from the flip side. It was from
Speaker 2: the side of well, actually, maybe my friends think like
Speaker 2: this type of stuff about me, because sometimes they ask me, oh,
Speaker 2: jess can you out to brunch? Well, maybe you in
Speaker 2: your food, fuel and fun account have nothing left. Yeah,
Speaker 2: and that's so fun because you've been budgeting properly. But
Speaker 2: if you know Jessica Ricci well Beck, you know she
Speaker 2: has her food you'll in fun account. You also know
Speaker 2: she keeps a very strict budget for fashion and other items.
Speaker 2: That she's saving to buy because that is in line
Speaker 2: with her values, so genuinely, in the same week that
Speaker 2: Jess might say no to me to go into brunch,
Speaker 2: she might go, I'm gonna go buy address because she's
Speaker 2: been saving for it.
Speaker 5: Yeah, always another side to the story.
Speaker 4: Yeah, I feel like that's the perfect takeaway from it.
Speaker 5: Perfect takeaway.
Speaker 4: I don't know what's going on with someone else, You
Speaker 4: don't know how they've structured their.
Speaker 2: Life, and it's none of your damn business.
Speaker 4: And on that note, let's go.
Speaker 2: I hope you guys have the most beautiful weekend and
Speaker 2: we'll see you for Money Diaries on Monday.
Speaker 5: Bye guys, Bye,