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Speaker 1: She's on the Money. She's on the Money.

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

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Speaker 2: for Millennials who want Financial Freedom. Today is Friday, which

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Speaker 2: means it is time to sit back with the girls

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Speaker 2: with a bevo in hand and unpack our favorite moments

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Speaker 2: of the week and of course, to celebrate the amazing

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Speaker 2: She's on the Money community. As always, we're going to

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Speaker 2: be sharing our favorite money wins, we're going to be

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Speaker 2: talking about what's making news in the finance world, and

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Speaker 2: we're going to be helping answer a juicy money question,

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Speaker 2: which this week is all about inflation. But first it is.

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Speaker 3: Time to recap the week that was.

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Speaker 2: Jess Grici talk us through Monday's Money Diary episode.

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Speaker 4: Monday's Money Diarist was an absolute delight, but it was

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Speaker 4: definitely a heavy episode, a little content warning for everyone.

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Speaker 4: We discussed mental illness, specifically eating disorders, and she was

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Speaker 4: very very open and honest and these so were you

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Speaker 4: as well about your past experiences and how that has

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Speaker 4: continued to impact in the way that mental illness so

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Speaker 4: often does. So it was really insightful and inspiring, and

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Speaker 4: we were so grateful that she was prepared to share

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Speaker 4: so much of herself with us, particularly because she said

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Speaker 4: that a lot of her friends and family didn't know

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Speaker 4: that she had gone through this process and these struggles,

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Speaker 4: So for her to be so open and comfortable was

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Speaker 4: incredible on a podcast yeah to so many people, which

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Speaker 4: was really really inspiring. And she's just kicking dreams, she

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Speaker 4: started her own business, she studied, she's done it all.

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Speaker 4: It was a really really fantastic episode, and if you're

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Speaker 4: in a place where you can hear that kind of content,

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Speaker 4: I would highly recommend a listen.

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Speaker 2: Honestly, it was incredible and Jess the thing. Obviously, all

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Speaker 2: of our money dirests are engaging and we're so excited

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Speaker 2: to talk to them, but I feel like this diarist

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Speaker 2: was on another level. She came with practically an essay.

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Speaker 2: She's like, I've written out my money story.

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Speaker 3: I'm ready.

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Speaker 2: I don't even need you guys to ask me the questions.

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Speaker 2: I've got them all written down and I have responded

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Speaker 2: to them. And I was like, oh no, like thinking

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Speaker 2: that maybe should sound superscripted, but oh my god, this

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Speaker 2: woman was a powerhouse. And to know that she had

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Speaker 2: gone through so much and that it was such a

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Speaker 2: significant part of her life to Jess, being a business

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Speaker 2: owner and having saved up enough money to buy a house.

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Speaker 2: She had one hundred grand in savings. She was only

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Speaker 2: twenty eight, and she felt like she was behind. I

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Speaker 2: was like, girl, you're gonna sling all the way forward.

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Speaker 2: You are on top of this. She was honestly such

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Speaker 2: an inspirational money diarist. Like I say this every week, though,

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Speaker 2: don I. I'm always like, oh, that was my favorite,

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Speaker 2: and then a new one comes.

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Speaker 3: I'm like, no, that's my favorite.

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Speaker 4: I suck so special and so great. But yeah, I

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Speaker 4: definitely felt like we could totally be best friends.

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Speaker 3: I'm pretty sure we are. So there's that.

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Speaker 2: Moving on though, Georgia King, what did we discuss on

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Speaker 2: our Wednesday deep dive.

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Speaker 3: Hello Ladies this week?

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Speaker 5: It was a super juicy topic actually, and it's one

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Speaker 5: that we spoke about a few weeks ago on the

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Speaker 5: podcast very briefly, and that is financial equity in relationships

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Speaker 5: versus financial equality. Yeah, if you're unfamiliar with what that

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Speaker 5: actually means, Basically, equity is what is fair, whereas equality

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Speaker 5: is what's even. So that's kind of like a neat

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Speaker 5: little way of thinking about it. Essentially, it means that

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Speaker 5: the higher income earner in the relationship will perhaps contribute

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Speaker 5: more to the bills, to the rent, to the mortgage,

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Speaker 5: whatever it may be, as compared to what the lower

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Speaker 5: income earner contributes. So it was super interesting. And gosh,

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Speaker 5: I popped a thread in the Facebook group and it's like,

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Speaker 5: it's quite a controversial topic.

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Speaker 3: Oh, it's so spicy.

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Speaker 2: This came off the back of me posting on Instagram,

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Speaker 2: and I feel like over the last few weeks I've

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Speaker 2: been posting, so what would you say obinionated Instagram stories. Yes,

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Speaker 2: and I made a reel on financial inequality and maybe

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Speaker 2: considering splitting bills differently and oof to the amount of

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Speaker 2: men in my dms, guys telling me, oh, women just

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Speaker 2: want to rebride, or she won't work as hard anymore,

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Speaker 2: or oh my gosh, you wouldn't want this if it

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Speaker 2: was flipped to the other.

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Speaker 4: Way, Like why I really present that because those comments

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Speaker 4: just inherently assume that the higher income earner is always men.

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Speaker 4: And if you've listened to can.

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Speaker 3: Tell you this.

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Speaker 4: Yeah, I mean, I know statistically that's the case, but

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Speaker 4: if you listen to the episode where we discussed it

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Speaker 4: Friday Drinks, I think we called it getting the band

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Speaker 4: back together. But I shared that in my relationship currently,

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Speaker 4: I'm the higher income earner.

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Speaker 3: And so a bougie lady.

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Speaker 4: Absolutely, but I think that that mentality as well, of like,

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Speaker 4: even if it is your partner that's earning less, even

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Speaker 4: if the male is the lower income earner, what we're

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Speaker 4: discussing is still absolutely applicable. We're just because you're a woman,

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Speaker 4: you should pay less. We're saying that consider the option

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Speaker 4: of ensuring that everyone's in the best position that they

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Speaker 4: can be.

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Speaker 3: One hundred percent.

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Speaker 2: And I think it's so aligned to the Sheese on

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Speaker 2: the money values as well for us to be talking

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Speaker 2: about this stuff. If we're telling you guys to be

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Speaker 2: open about your income and talk about this more, and

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Speaker 2: then jess and I are on the podcast being like,

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Speaker 2: oh yeah, but like, let's not talk about our personal situations.

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Speaker 2: Like Jess, I saw your TikTok the other day, which

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Speaker 2: you've been going ham.

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Speaker 3: On like become TikTok famous.

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Speaker 2: I know you are, because your content is absolutely pumping

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Speaker 2: out and oh my gosh, the amount of times I

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Speaker 2: snorty laugh at your content. If you guys don't follow

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Speaker 2: jess yet, obviously, Jessica Ricki on TikTok. But you sitting

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Speaker 2: there with your smug little face being like, ha ha ha.

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Speaker 2: My mum said that I wouldn't turn a good job

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Speaker 2: being creative that now I earn six figures making content.

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Speaker 3: I'm like, get a girl one.

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Speaker 4: Celebrate the wins, you know, just dot Ricky on TikTok.

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Speaker 4: If you want to give me a follow, wouldn't be

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Speaker 4: mad about it.

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Speaker 2: But you're like, I'm going viral through on the money.

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Speaker 4: Two thousand percent? What am I here for if I

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Speaker 4: can't write off your coattails?

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Speaker 3: That's that's literally it.

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Speaker 2: We just want to be talking about this, and I

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Speaker 2: think something else to preface, and we talk about this

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Speaker 2: on the episode. This might not be right for you,

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Speaker 2: and that's totally okay. It is just a suggestion, is

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Speaker 2: just a thought. It's not Georgia, you have to do

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Speaker 2: this because equity in your relationship might be completely different.

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Speaker 2: You might not want that, but I really wanted to

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Speaker 2: break down this stereotype. Is maybe the word I want

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Speaker 2: to use, that women have to be fifty to fifty

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Speaker 2: to be independent, and I just don't believe that to

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Speaker 2: be true, Like you aren't a not independent woman because

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Speaker 2: you and your partner have decided to split your bills

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Speaker 2: in a different way, and you're only paying thirty percent

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Speaker 2: of the bills and your partner pays seventy percent because

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Speaker 2: he earns significantly more than you. Like you are still

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Speaker 2: strong and independent and an epic human regardless of how

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Speaker 2: that splits. A strong independent woman stands up for a

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Speaker 2: self and wants equity, not equality. So I think that

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Speaker 2: it is just so important to know the difference because

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Speaker 2: I've been having this conversation for the last few weeks

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Speaker 2: of my DMS people being like, oh, I just thought

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Speaker 2: that if I asked that, I wouldn't be empowered, or

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Speaker 2: I'd be going against feminism, or I'd be you know,

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Speaker 2: maybe not putting my best foot forward. But that's not it,

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Speaker 2: is it.

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Speaker 3: I'm like, no, it's not.

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Speaker 2: We need to be asking for equity in relationships because

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Speaker 2: sometimes your partner is going to earn five times more

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Speaker 2: than you and that's totally okay, but that doesn't mean

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Speaker 2: that you can afford the same lifestyle that they can.

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Speaker 2: And if you turn around and go, you know what,

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Speaker 2: I want to pay fifty percent of everything, well, that

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Speaker 2: means the other person has to make a bit of

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Speaker 2: a lifestyle compromise, and even though they could pay significantly

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Speaker 2: more rent, they don't because they're living within the means

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Speaker 2: of your income. And that's fine too. But yeah, there

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Speaker 2: was a lot of spicy content. If you want to

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Speaker 2: go to my Instagram read the comments.

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Speaker 3: This is a world ride.

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Speaker 4: Am I right in thinking as well? You guys did

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Speaker 4: a little role play action in this episode right to

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Speaker 4: kind of give people some examples of how they could

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Speaker 4: maybe have these conversations if they're not sure how to

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Speaker 4: bring it up.

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Speaker 3: It was interesting. That's a whole new kind of spice.

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Speaker 3: It was different, it was it was unusual.

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Speaker 2: I felt like that was something that was really necessary

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Speaker 2: for this conversation because too often I feel like I

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Speaker 2: say bring it up with your partner and you're like, yeah,

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Speaker 2: but how yeah, or yeah, but my partner says that

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Speaker 2: that's not fair and that he works the same amount

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Speaker 2: of hours as me. You go, okay, But sometimes you

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Speaker 2: just need to hear a little role play. And as

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Speaker 2: someone who has a couple of degrees in psychology, I'm

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Speaker 2: not sure I of a role play. I spent most

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Speaker 2: of our university degree role playing in class, so I

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Speaker 2: was ready.

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Speaker 3: I don't think George was though, Hey, I was in

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Speaker 3: the U twelve drama play You're right.

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Speaker 2: You both as far as thank you, thank you, thank you.

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Speaker 2: But speaking of deserving oscars, Georgia help, but she's on

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Speaker 2: the money community.

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Speaker 3: What are your money wins of the week?

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Speaker 5: Some rippers as usual? Gosh, that thread always pops off,

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Speaker 5: doesn't It's it's a joy, Okay. Our first win today

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Speaker 5: comes from Ashley money Win. I have a full time

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Speaker 5: job and have been thinking about getting a second casual job,

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Speaker 5: just for a couple of nights a week. A local

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Speaker 5: restaurant posted on their Instagram that they were hiring for

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Speaker 5: delivery drivers and front of house staff, so I DMed

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Speaker 5: them and.

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Speaker 3: Started the next day. Oh cool, all.

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Speaker 5: Of that extra money will be going straight into my

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Speaker 5: savings account, and I opened a space ship account. Great

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Speaker 5: time to do it and put a bit of money

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Speaker 5: in there too.

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Speaker 2: Actually, no, George, it is a really good time to

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Speaker 2: do it. It might not be a good time to

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Speaker 2: have previously invested in it because the market's sight off

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Speaker 2: at the moment, but sees the opportunity when the market

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Speaker 2: is low.

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Speaker 5: On you, ash Okay. Next win is from ed She

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Speaker 5: just did her first no spend month, and even with

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Speaker 5: an unplanned motorbike service, she saved nine hundred and fifty

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Speaker 5: dollars from the month before.

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Speaker 3: Impressively, Why oh, I had to really consider that.

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Speaker 2: I'm like, what's a motorbike service? Just that facial like

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Speaker 2: I had no idea. She got her motorbike service, Victoria,

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Speaker 2: I still have COVID brain. You've got to forgive me, honestly.

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Speaker 2: And speaking of no spend months, Jess, I believe you're

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Speaker 2: going to tell us what's going on with frugal feb

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Speaker 2: in a little bit.

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Speaker 4: Absolutely, we have something very fun coming up. I think

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Speaker 4: we're going to chat about that after the break.

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Speaker 3: So we are.

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Speaker 2: Yeah, So I'm just like dropping it so that they

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Speaker 2: nicey yes, yes, thanks George. Back to you.

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Speaker 5: So the next win Gals is from Emily. So she's

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Speaker 5: starting her last semester of UNI, and remember that she

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Speaker 5: needed to buy two textbooks for a subject. Textbooks are

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Speaker 5: so expensive.

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Speaker 2: They're so weik and they're always outdated in like five

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Speaker 2: minutes exact, and they tell you which volume you have

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Speaker 2: to get because like one page might be significantly different.

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Speaker 2: You're like, it's the theory not the same, and like

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Speaker 2: who does their Uni readings. Really, I don't know, don't

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Speaker 2: we all just like skim it or like looking over

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Speaker 2: to our partner that sits next to us and go,

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Speaker 2: did you do the readings?

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Speaker 3: And they say yes, and you're like, thank you. I

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Speaker 3: would do that.

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Speaker 5: So both of the text both the textbooks, we're between

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Speaker 5: one hundred and fifteen dollars and one hundred and forty

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Speaker 5: five dollars brand new, but she managed to score both

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Speaker 5: of them secondhand for one hundred and fifty five dollars,

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Speaker 5: which is just over the price of one so, you know,

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Speaker 5: still expensive but look still expensive.

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Speaker 2: But that's so much money for a textbook for a

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Speaker 2: pile of paper that you's for twelve weeks.

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Speaker 3: Really, I mean that people use them beyond.

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Speaker 2: But hypothetically, if I went to Universe City, I would

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Speaker 2: find ways to hypothetically download them for free and keep

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Speaker 2: them on an iPad. But that's you know, hypothetically, if

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Speaker 2: I went to university.

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Speaker 5: Yeah, not speaking from experience, No, I've got none. The

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Speaker 5: next win is from Ashling. So she picked up eight

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Speaker 5: hundred dollars worth of clothes at the opshop for sixty

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Speaker 5: five dollars.

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Speaker 3: Oh my god, money win?

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Speaker 2: How good's an Opshop money win though you just feel unnecessarily.

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Speaker 3: Entitled about it too.

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Speaker 5: You want to tell people for sure, and the shoes

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Speaker 5: in the money community is the place to do that.

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Speaker 2: I would say, I feel that you do this dress

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Speaker 2: as well. Like when you've had like a good little

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Speaker 2: Deep Pop win, I'll be like, oh, yes, that dress

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Speaker 2: looks so good on you. You're like, oh my god,

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Speaker 2: I got on Deep Hop for twenty bucks.

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Speaker 3: You have to share the prime.

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Speaker 4: You have to be like so cheap.

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Speaker 3: No, I'm all about it.

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Speaker 5: The next win is from Gemma, So money win in progress.

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Speaker 5: I booked myself a little European Kentiqui on a Boxing

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Speaker 5: Day sale and decided that I was going to do

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Speaker 5: all of the optional activities. She worked out that she

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Speaker 5: would need roughly eight hundred dollars to do all of

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Speaker 5: those activities, and as of today, she's sitting at eighty

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Speaker 5: percent of that goal. With my tour not starting until May,

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Speaker 5: I'm excited to see how far I can blow this

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Speaker 5: goal out.

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Speaker 3: Of the water.

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Speaker 2: Oh so, will we please check back in?

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Speaker 5: But is Kentiki euro trips a thing again? When did

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Speaker 5: this happen? Why? Somebody?

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Speaker 4: Oh my god, she's on the money in Europe.

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Speaker 3: She's got the money on tour.

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Speaker 4: I'm just throwing it out there, like, could we could

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Speaker 4: record the podcast seaside from Italy? Right?

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Speaker 2: It actually makes sense because less than one percent of

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Speaker 2: our audience are actually international bustiness. So I just feel

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Speaker 2: like it would be a no brainer to visit them.

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Speaker 3: It's toime to so global. Okay.

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Speaker 5: The next win is from Elie. She uploaded a ton

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Speaker 5: of stuff onto gum Tree during lockdown and genuinely forgot

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Speaker 5: that she had done that, as it's been a while

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Speaker 5: since she's been on there. And then yesterday she got

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Speaker 5: two hundred two dollars in one day from a bunch

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Speaker 5: of people behind stuff.

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Speaker 2: Oh, I was just like randomly like.

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Speaker 3: She justgot that.

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Speaker 2: People were messaging her being like is this still available?

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Speaker 2: Apply to me?

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Speaker 5: Is this like is it just similar eternal messaging place?

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Speaker 2: Yeah, it's like an internal message, but like it sends

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Speaker 2: it to either your phone or your email.

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Speaker 3: Yeah surely. So, like maybe checked one.

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Speaker 4: You just wanted to take the lot.

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Speaker 2: That's the dream, right, That's a good money win, low effort.

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Speaker 2: We like the low effort money wins.

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Speaker 5: Okay, I've got two more wins, gals. Second last one

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Speaker 5: is from Lisa. She hasn't used after pay or PayPal

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Speaker 5: for a fortnight legend. Yeah, we love it. The final

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Speaker 5: one here, ladies, is from Imagen. She is passing it

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Speaker 5: as a money win even though it sucked. She got COVID,

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Speaker 5: didn't we all literally shame. So she missed her friend's

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Speaker 5: hen's weekend, which should have done it on zoom.

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Speaker 2: Honestly, we're recording on zoom. She's right, apparently then very expensive.

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Speaker 5: Yeah, so she missed going to the wineries and she

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Speaker 5: thought that was a good thing because you know, she

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Speaker 5: would have drunker purchased a few too many ones as

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Speaker 5: I did last night, which is when my voice sounds

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Speaker 5: weird today. So apologies everyone, you're not sorry, not at all.

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Speaker 3: Should we go to a break.

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Speaker 2: Let's go to a break before we out Georgia and

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Speaker 2: her drinking habits. All right, we are straight back in,

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Speaker 2: And Jess, I alluded to it before, and by alluded,

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Speaker 2: I mean I flat out set we're going to talk

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Speaker 2: about frugal feb. But you said after the break, and

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Speaker 2: I was like, okay, So it's now after the break, Jess,

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Speaker 2: what are we doing this year for frugal FEB?

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Speaker 3: As a community.

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Speaker 4: Ah, So we did this last year and I absolutely

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Speaker 4: popped off. I think post Chrissy, post New Yark. We're

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Speaker 4: all feeling it in the hip pocket a little bit.

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Speaker 4: So frugal fab as a concept is essentially just kind

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Speaker 4: of pairing back your spending. We've all maybe got a

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Speaker 4: little loose with the cash holder and it's time to

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Speaker 4: kind of reset, get back on top of your budgets.

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Speaker 4: So you would have seen if you're in our Facebook group,

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Speaker 4: if you're not, seartch shees on the money. We did

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Speaker 4: it on Instagram as well, but on the first of

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Speaker 4: February we launched the Frugal feb Challenge. We had some

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Speaker 4: really fun little templates that people could fill out, and

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Speaker 4: the goal is essentially just spend less money. So if

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Speaker 4: you want to go hard, you can cut out discretionary

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Speaker 4: spending all together, none at all.

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Speaker 3: Track it.

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Speaker 4: We recommend tracking everything that you would have spent and

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Speaker 4: putting it in a separate account. So, oh, I'm going

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Speaker 4: to buy a coffee this morning, just kidding, No, I'm not.

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Speaker 4: Four dollars fifty into my savings account, and then at

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Speaker 4: the end of the month you can see all the

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Speaker 4: money that you saved, put it towards something, put it

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Speaker 4: in your savings, put it in your emergency fund, invest it,

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Speaker 4: whatever you want to do. You should have a tidy

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Speaker 4: little sum there. But if you're not wanting to go

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Speaker 4: that hard, totally get it. I'm probably not. Maybe pick

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Speaker 4: like one area to focus on. Maybe you don't want

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Speaker 4: to be spending on takeout, or maybe you don't want

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Speaker 4: to be buying any new clothes. So we've got a

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Speaker 4: few fun little resources that will drop throughout the month

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Speaker 4: on Facebook and Instagram, and we're going to be checking

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Speaker 4: in every Friday to see how you're doing, share your tips,

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Speaker 4: check the dollar amounts you're out, if you want to

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Speaker 4: share it, and just kind of get around each other.

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Speaker 4: I think it'll be a good time.

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Speaker 2: We're also going to be sharing it on the podcast

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Speaker 2: during February, which is going to be super fun. But

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Speaker 2: my favorite part about it is it's super flexible based

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Speaker 2: on your goals. Like Jess was saying, like, it's not, hey,

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Speaker 2: here's one goal that you all have to do. If

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Speaker 2: it's coffee, cool, it's coffee. If it's literally no spending,

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Speaker 2: I think great, But I know I wouldn't be able

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Speaker 2: to stick to it, So I think being really realistic,

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Speaker 2: knowing yourself and knowing your limits. Like, let's just set

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Speaker 2: realistic goals that we know we can achieve that we

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Speaker 2: can then celebrate and reset, because that way it becomes

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Speaker 2: sustainable practice in our lives instead of going, oh, I'm

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Speaker 2: going to go so hard for one month, like it's

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Speaker 2: like a crash diet in one, not going to enjoy

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Speaker 2: it in the slightest two You're going to probably fall

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Speaker 2: off the bandwagon after two weeks because you're not feeling

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Speaker 2: the results yet, and then you'll feel a little bit

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Speaker 2: let down at the end of the month. So let's

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Speaker 2: pick things that we know we can achieve and then

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Speaker 2: prove ourselves later. I just feel like it's such a

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Speaker 2: good idea, and Jess, I'm excited that you're going to

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Speaker 2: do it with the community and that you were like me,

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Speaker 2: this is what we're doing. And I made the cute templates.

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Speaker 2: Like guys, she's made a little bingo chart. I can't

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Speaker 2: it's so cute. I'm gonna cry.

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Speaker 4: I think that'll be coming the week next week because

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Speaker 4: he's going up Friday.

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Speaker 2: So yeah, I know I'm staying there for everybody, but

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Speaker 2: I get to do whatever I want.

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Speaker 3: It's the fun part of being the boss Lady, isn't it.

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Speaker 4: Lol?

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Speaker 5: It is Friday, which means it's time to answer your

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00:18:37,160 --> 00:18:41,040
Speaker 5: most burning finance, career and life questions. If you need

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00:18:41,080 --> 00:18:44,320
Speaker 5: help untangling a knotty dilemma, no matter how big or small,

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00:18:44,640 --> 00:18:47,200
Speaker 5: send us through a voice note to podcast at She's

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00:18:47,240 --> 00:18:49,399
Speaker 5: on the Money dot com dotau and we'll help you

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Speaker 5: find the answer you've been searching for. Now, let's take

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Speaker 5: a listen to today's listener question.

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Speaker 6: Hi, She's on the Money. My question is what is

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Speaker 6: all this talk regarding inflation at the moment? I've heard

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Speaker 6: that it's higher than expected, but what does this mean

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00:19:03,000 --> 00:19:05,320
Speaker 6: for me? Is someone wanting to purchase their first home

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00:19:05,359 --> 00:19:09,800
Speaker 6: this year? Is this something I should be concerned about? Thanks?

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Speaker 3: Victoria and Devine. Is your middle name Anne? No? It's

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Speaker 3: what is it? Mary? No? Is it Maurice?

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Speaker 1: Louise?

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Speaker 2: No?

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Speaker 3: Is it Louise? No?

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Speaker 2: That's my sister's middle name, so okay, it's a good guest.

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Speaker 2: And Anne's actually my mum's middle name, so also good

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Speaker 2: guess You're gonna ask me what street I grew up

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Speaker 2: on and what my first pets name was as well?

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Speaker 2: Is that where we're going with this piece of conversation.

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Speaker 3: Look, I didn't mean to take it to this tangent.

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Speaker 3: Just do you know my middle name? It's not like

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Speaker 3: it's a secret.

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00:19:39,600 --> 00:19:43,040
Speaker 2: It's lately on the financial advisor register, like it's sadly

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Speaker 2: not a secret.

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Speaker 3: It's Catherine. Yeah, exactly, please.

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Speaker 4: Because I am basically Victoria.

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Speaker 2: Jess is like, did you actually want her first pets name? Also,

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Speaker 2: do you know her pin?

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Speaker 3: Because you ready number what she's got it all? Yeah,

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Speaker 3: she's got Victoria.

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Speaker 5: Catherine. Talk us through the answer to this question, because

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Speaker 5: what's going on with inflation?

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Speaker 2: Oh my gosh, everybody is being so dramatic about inflation

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00:20:12,560 --> 00:20:15,000
Speaker 2: and I'm seeing it all over TikTok, people like it's.

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Speaker 3: Out of control?

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00:20:16,400 --> 00:20:19,440
Speaker 2: What this means for you? How this means you're never

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00:20:19,480 --> 00:20:21,640
Speaker 2: going to buy property as a millennial, as if it's

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00:20:21,640 --> 00:20:25,560
Speaker 2: some joke that millennials somehow can't afford property at the moment.

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Speaker 2: But I think it's a good conversation to have because

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Speaker 2: it seems after COVID and I don't know if you

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Speaker 2: guys are seeing this either, but we didn't used to

436
00:20:34,920 --> 00:20:38,159
Speaker 2: have conversations like this as a demographic. Wein't used to

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00:20:38,440 --> 00:20:42,840
Speaker 2: you know, when the inflation changed, have deep conversations about

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Speaker 2: what this means for us. But now it seems to

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Speaker 2: be the post pandemic. We're having these conversations that are like, oh,

440
00:20:48,800 --> 00:20:51,040
Speaker 2: inflation increase, what does this mean for us and our

441
00:20:51,119 --> 00:20:52,840
Speaker 2: you know, our goals and stuff. And I just think

442
00:20:52,880 --> 00:20:57,840
Speaker 2: it's it's a very cool shift in mindset and conversations

443
00:20:57,880 --> 00:21:00,760
Speaker 2: that we're having. And I know history, when like the

444
00:21:00,920 --> 00:21:03,960
Speaker 2: RBA changed interest rates, everyone was like, yeah, interest rates

445
00:21:03,960 --> 00:21:06,080
Speaker 2: have gone down, like that was pretty much it. We

446
00:21:06,080 --> 00:21:08,520
Speaker 2: didn't really understand the crux of it. We didn't ask

447
00:21:08,640 --> 00:21:11,080
Speaker 2: those questions. And now people are like, Bee, what's this mean?

448
00:21:11,160 --> 00:21:12,880
Speaker 3: Has this work? I don't know. I just get really

449
00:21:12,880 --> 00:21:13,760
Speaker 3: excited about it.

450
00:21:14,080 --> 00:21:18,640
Speaker 2: So let's talk about inflation. George and Jess Are you excited?

451
00:21:19,040 --> 00:21:19,800
Speaker 4: I'm so excited.

452
00:21:19,840 --> 00:21:20,680
Speaker 3: Tell me what does it mean?

453
00:21:20,720 --> 00:21:21,040
Speaker 4: All right?

454
00:21:21,080 --> 00:21:23,000
Speaker 2: So let's backtrack a little bit because I think this

455
00:21:23,040 --> 00:21:24,720
Speaker 2: is a really good conversation, but I want to make

456
00:21:24,720 --> 00:21:28,040
Speaker 2: sure everybody else is on the same page. So inflation,

457
00:21:28,359 --> 00:21:31,560
Speaker 2: to begin with, is actually the definition of it is

458
00:21:31,600 --> 00:21:33,840
Speaker 2: an increase in the price of goods and services that

459
00:21:33,880 --> 00:21:36,960
Speaker 2: are typically purchased by households. So we're talking bread and

460
00:21:37,000 --> 00:21:40,359
Speaker 2: milk and cheese and all of those exciting things, and

461
00:21:40,400 --> 00:21:43,480
Speaker 2: inflation is actually measured as the rate of change of

462
00:21:43,520 --> 00:21:46,359
Speaker 2: those prices over a period of time. So if we

463
00:21:46,440 --> 00:21:48,200
Speaker 2: go back a little bit, you've probably heard me silk

464
00:21:48,240 --> 00:21:51,640
Speaker 2: about it that fifty cent cones aren't fifty cents anymore,

465
00:21:52,040 --> 00:21:54,240
Speaker 2: And whenever I talk to my parents about that, they're

466
00:21:54,280 --> 00:21:54,800
Speaker 2: like Victoria.

467
00:21:54,880 --> 00:21:55,640
Speaker 3: They used to be like.

468
00:21:55,720 --> 00:22:00,480
Speaker 2: Twenty cents something. I don't remember that. But essentially, inflation

469
00:22:00,600 --> 00:22:03,320
Speaker 2: is just how much the cost of things on average

470
00:22:03,359 --> 00:22:06,840
Speaker 2: grows over time. And it goes back to the theory

471
00:22:06,880 --> 00:22:10,359
Speaker 2: as well. And this interlinks really well of the concept

472
00:22:10,520 --> 00:22:13,879
Speaker 2: that a dollar to day is worth more than a

473
00:22:13,960 --> 00:22:17,520
Speaker 2: dollar tomorrow, and the reason for that is if you

474
00:22:17,640 --> 00:22:20,800
Speaker 2: purchased it today, it's going to cost you less than

475
00:22:20,800 --> 00:22:23,520
Speaker 2: what it would in the future. So if we looked

476
00:22:23,560 --> 00:22:27,399
Speaker 2: at what goods and services cost even in nineteen ninety,

477
00:22:27,520 --> 00:22:31,200
Speaker 2: so the year before I was born, so like ages ago,

478
00:22:31,480 --> 00:22:35,320
Speaker 2: thirty one years ago, in fact, goods and services that

479
00:22:35,359 --> 00:22:40,080
Speaker 2: cost ten bucks then actually in today's dollars would cost

480
00:22:40,119 --> 00:22:43,199
Speaker 2: two hundred and eight dollars and seventeen cents. And if

481
00:22:43,240 --> 00:22:46,879
Speaker 2: we went back to twenty ten goods and services that

482
00:22:47,000 --> 00:22:50,439
Speaker 2: originally cost ten dollars in twenty ten now cost one

483
00:22:50,520 --> 00:22:51,440
Speaker 2: hundred and twenty.

484
00:22:51,240 --> 00:22:52,720
Speaker 3: Four dollars fifty six.

485
00:22:53,240 --> 00:22:56,600
Speaker 2: So I think it's important to understand that before we go.

486
00:22:56,680 --> 00:22:58,800
Speaker 2: What does that mean for your home buying journey and

487
00:22:58,880 --> 00:23:02,520
Speaker 2: how that's going to impact you. Summary, goods and services

488
00:23:02,560 --> 00:23:05,360
Speaker 2: are going to increase in price, and that's why hopefully

489
00:23:05,400 --> 00:23:08,320
Speaker 2: each and every single year your employers give you pay

490
00:23:08,400 --> 00:23:12,120
Speaker 2: rises in line with CPI or inflation, which they should be.

491
00:23:12,280 --> 00:23:15,480
Speaker 2: It's a bare minimum from my perspective, although some employers

492
00:23:15,520 --> 00:23:17,959
Speaker 2: don't do that, which I just think is borderline bruge.

493
00:23:18,320 --> 00:23:22,199
Speaker 2: But inflation seems to be making news throughout our community

494
00:23:22,240 --> 00:23:25,040
Speaker 2: throughout TikTok. Jess, you and I were talking about videos

495
00:23:25,040 --> 00:23:29,080
Speaker 2: we'd sen on TikTok and Instagram recently about energy inflation

496
00:23:29,240 --> 00:23:33,240
Speaker 2: and food inflation, and fuel has been inflating recently, Like, guys,

497
00:23:33,240 --> 00:23:35,760
Speaker 2: do you put petrol in your cars? Is it more

498
00:23:35,800 --> 00:23:41,320
Speaker 2: expensive at the moment? Yes, it's cooked from my perspective,

499
00:23:41,560 --> 00:23:45,280
Speaker 2: but essentially the cost of things is increasing and rising

500
00:23:45,400 --> 00:23:48,080
Speaker 2: and it's very likely that it is going to stay there.

501
00:23:48,400 --> 00:23:50,600
Speaker 2: So when it comes to what's going on in Australia,

502
00:23:50,600 --> 00:23:52,959
Speaker 2: because I feel like lots of these videos are very American.

503
00:23:53,440 --> 00:23:57,200
Speaker 2: According to the most commonly used measure of inflation in Australia,

504
00:23:57,200 --> 00:23:59,920
Speaker 2: because there's a few, the Consumer Price Index, which over

505
00:24:00,240 --> 00:24:05,160
Speaker 2: two before is CPI. Inflation increased by zero point eight

506
00:24:05,240 --> 00:24:08,200
Speaker 2: percent in the July to September quarter, so the third

507
00:24:08,280 --> 00:24:12,000
Speaker 2: quarter of last year, and it increased three percent over

508
00:24:12,080 --> 00:24:14,720
Speaker 2: the twelve months all the way up until September twenty

509
00:24:14,760 --> 00:24:20,720
Speaker 2: twenty one. So interestingly, that has obviously increased relatively significantly.

510
00:24:21,400 --> 00:24:24,040
Speaker 2: That was actually not what people were predicting. We were

511
00:24:24,080 --> 00:24:26,040
Speaker 2: expecting it to be much lower than that. So I

512
00:24:26,080 --> 00:24:28,399
Speaker 2: think that because it was three percent, people like, what

513
00:24:28,440 --> 00:24:30,480
Speaker 2: does that mean for interest rates? What does that mean

514
00:24:30,560 --> 00:24:34,000
Speaker 2: for me? And there are actually two main reasons inflation happens.

515
00:24:34,280 --> 00:24:37,280
Speaker 2: The first is cost push inflation, and this is where

516
00:24:37,320 --> 00:24:39,920
Speaker 2: the costs of producing the goods and services go up

517
00:24:40,119 --> 00:24:43,679
Speaker 2: so that price rises are then passed on to customers. Jess,

518
00:24:44,000 --> 00:24:46,919
Speaker 2: you are currently talking about building a house, so you

519
00:24:46,960 --> 00:24:50,320
Speaker 2: would know the conversation around, oh my gosh, house things

520
00:24:50,359 --> 00:24:53,320
Speaker 2: are so much more expensive, like wood and labor is

521
00:24:53,480 --> 00:24:56,000
Speaker 2: just so much more expensive at the moment because of

522
00:24:56,040 --> 00:24:57,400
Speaker 2: the demand and.

523
00:24:57,280 --> 00:24:58,320
Speaker 4: That lad shortages.

524
00:24:58,480 --> 00:25:02,040
Speaker 2: Yeah, it's actually really frustrating as somebody who's planning a

525
00:25:02,080 --> 00:25:06,000
Speaker 2: renovation literally talking to our builders and what we're doing

526
00:25:06,040 --> 00:25:08,200
Speaker 2: at the moment. He's like, we need to add thirty

527
00:25:08,240 --> 00:25:12,080
Speaker 2: percent to a budget. So we haven't just added thirty percent.

528
00:25:12,119 --> 00:25:14,560
Speaker 2: We've actually had to rejig the budget and change what

529
00:25:14,600 --> 00:25:16,879
Speaker 2: we're doing and change quality of a few things so

530
00:25:16,920 --> 00:25:19,720
Speaker 2: that the increased costs of goods and like wood and

531
00:25:19,760 --> 00:25:22,600
Speaker 2: stuff that we are having brought in is going to

532
00:25:22,600 --> 00:25:25,119
Speaker 2: be accounted for. Because I'm like, well, that was our budget, Like,

533
00:25:25,160 --> 00:25:27,879
Speaker 2: I can't just add thirty percent to a renovation, Like

534
00:25:27,920 --> 00:25:29,240
Speaker 2: I just don't have that when it's.

535
00:25:29,119 --> 00:25:32,920
Speaker 4: Already really like expensive exactly, like an extra things.

536
00:25:32,760 --> 00:25:34,399
Speaker 3: Oh, just an extra thirty percent, babe.

537
00:25:34,440 --> 00:25:37,479
Speaker 2: This isn't a McDonald's one dollar cone, Like this is

538
00:25:38,080 --> 00:25:40,800
Speaker 2: like that's a lot of money for us, especially because one,

539
00:25:40,800 --> 00:25:43,399
Speaker 2: we've been saving for it for so long and I

540
00:25:43,440 --> 00:25:46,200
Speaker 2: don't want to take out a loan for this renovation anyway.

541
00:25:46,280 --> 00:25:50,240
Speaker 2: Side thing, the second main reason for inflation is demand

542
00:25:50,320 --> 00:25:53,680
Speaker 2: pull inflation, and that is when something is so popular

543
00:25:53,760 --> 00:25:56,200
Speaker 2: that the supplier can't actually meet the demand of it,

544
00:25:56,359 --> 00:26:00,800
Speaker 2: and then prices go up to reflect that. So yes,

545
00:26:01,160 --> 00:26:04,600
Speaker 2: a good example is rats recently, and then you remember

546
00:26:04,600 --> 00:26:08,399
Speaker 2: when face masks were really expensive and hand sanitizer, Like

547
00:26:08,720 --> 00:26:11,560
Speaker 2: I'm not saying that hand sanitizer is the reason for inflation,

548
00:26:11,720 --> 00:26:14,480
Speaker 2: but it's really good to understand the basic theories as

549
00:26:14,480 --> 00:26:17,320
Speaker 2: to why these things happen. So I won't go through

550
00:26:17,520 --> 00:26:20,159
Speaker 2: like hell it's measured and what that means, because it

551
00:26:20,200 --> 00:26:23,040
Speaker 2: doesn't actually help you. But when it comes to inflation,

552
00:26:23,119 --> 00:26:24,880
Speaker 2: to make sure that we're okay, there is a way

553
00:26:24,920 --> 00:26:28,200
Speaker 2: that it is controlled. So the Reserve Bank of Australia

554
00:26:28,280 --> 00:26:32,080
Speaker 2: actually has a specific responsibility for low and stable inflation.

555
00:26:32,440 --> 00:26:34,840
Speaker 2: That's literally their job. They have to make sure that

556
00:26:34,920 --> 00:26:37,720
Speaker 2: we have full employment and they need to be promoting

557
00:26:37,720 --> 00:26:39,920
Speaker 2: the general welfare of the Australian people.

558
00:26:40,000 --> 00:26:41,240
Speaker 3: So like that's their job.

559
00:26:41,359 --> 00:26:43,760
Speaker 2: If you guys didn't know, because I think a lot

560
00:26:43,800 --> 00:26:47,159
Speaker 2: of people just assume the RBA's bank, like they just

561
00:26:47,400 --> 00:26:50,520
Speaker 2: make bank things happen. But they're there to look after

562
00:26:50,680 --> 00:26:53,720
Speaker 2: us and the government has a set target of two

563
00:26:53,800 --> 00:26:57,280
Speaker 2: to three percent for inflation on average over time, so

564
00:26:57,520 --> 00:27:01,800
Speaker 2: it's clearly at the top end of the inflation scale,

565
00:27:01,800 --> 00:27:03,680
Speaker 2: which is why I think a lot of people like, eh,

566
00:27:03,760 --> 00:27:07,080
Speaker 2: what does this mean? But what does this mean for

567
00:27:07,160 --> 00:27:09,199
Speaker 2: your spending? What does this mean for you? As I

568
00:27:09,240 --> 00:27:12,359
Speaker 2: said before, it will mean an increase in the cost

569
00:27:12,440 --> 00:27:15,320
Speaker 2: of goods and services that you purchase. The rising prices

570
00:27:15,320 --> 00:27:18,080
Speaker 2: of goods and services means that unless your income is

571
00:27:18,200 --> 00:27:20,280
Speaker 2: rising as well, you're just going to find it more

572
00:27:20,320 --> 00:27:22,879
Speaker 2: difficult to afford things that you would normally buy. So

573
00:27:22,960 --> 00:27:25,760
Speaker 2: it's not something that you should be super shocked about.

574
00:27:25,800 --> 00:27:28,640
Speaker 2: But this is why I'm such an advocate of speaking

575
00:27:28,720 --> 00:27:31,080
Speaker 2: up and talking to your employer and if you didn't

576
00:27:31,080 --> 00:27:33,679
Speaker 2: get a pay rise in the last twelve months, talking

577
00:27:33,720 --> 00:27:35,720
Speaker 2: to them about you know what you can do and

578
00:27:35,760 --> 00:27:38,000
Speaker 2: how that might work. Because at the end of the day,

579
00:27:38,760 --> 00:27:41,679
Speaker 2: from a personal perspective, this absolutely isn't you know, the

580
00:27:41,760 --> 00:27:44,919
Speaker 2: legal mandate, it's not enforceable all of that, Like, your

581
00:27:44,960 --> 00:27:48,040
Speaker 2: employer doesn't legally have to give you a pay rise.

582
00:27:48,560 --> 00:27:51,560
Speaker 2: But from my perspective, it would only be fair that

583
00:27:51,720 --> 00:27:55,120
Speaker 2: your salary would increase in line with CPI each year

584
00:27:55,480 --> 00:27:58,160
Speaker 2: so that you are still able to afford the same

585
00:27:58,240 --> 00:28:01,639
Speaker 2: lifestyle that you were a foe the years before. So

586
00:28:01,640 --> 00:28:04,040
Speaker 2: we're not saying, oh, Jess, you need a fifty thousand

587
00:28:04,040 --> 00:28:07,280
Speaker 2: dollar pay rise because like you need a different lifestyle,

588
00:28:07,680 --> 00:28:10,000
Speaker 2: Like I want you to be able to purchase bread

589
00:28:10,440 --> 00:28:13,439
Speaker 2: on your grocery budget because we have made sure that

590
00:28:13,560 --> 00:28:16,399
Speaker 2: CPI has been taken into consideration with the income you have,

591
00:28:16,840 --> 00:28:19,480
Speaker 2: so that you're not stripping money from another part of

592
00:28:19,520 --> 00:28:23,280
Speaker 2: your budget because you have to buy groceries, and over time,

593
00:28:23,359 --> 00:28:25,800
Speaker 2: those groceries are going to be more expensive. Does that

594
00:28:25,880 --> 00:28:26,359
Speaker 2: make sense?

595
00:28:26,760 --> 00:28:27,320
Speaker 3: Is it just one of.

596
00:28:27,320 --> 00:28:29,679
Speaker 4: Those little sneaky kind of things where I know that

597
00:28:29,680 --> 00:28:32,720
Speaker 4: we're talking a lot about inflation. It's obviously quite front

598
00:28:32,760 --> 00:28:35,400
Speaker 4: of mind in the public eye right now, but it's

599
00:28:35,440 --> 00:28:38,160
Speaker 4: not as if the supermarket's going to turn around on

600
00:28:38,320 --> 00:28:42,880
Speaker 4: like Tuesday, the first of February and say hey, everybody,

601
00:28:43,560 --> 00:28:46,400
Speaker 4: everything's going to cost three percent? No, right, is it

602
00:28:46,520 --> 00:28:49,360
Speaker 4: just those prices will kind of be put up, maybe

603
00:28:49,400 --> 00:28:52,080
Speaker 4: not everything at once, just here and there. Yeah, and

604
00:28:52,120 --> 00:28:54,520
Speaker 4: you might not necessarily notice it.

605
00:28:54,480 --> 00:28:55,440
Speaker 3: Yeah, here and there.

606
00:28:55,520 --> 00:28:57,840
Speaker 2: I think that we are feeling it a little bit

607
00:28:57,960 --> 00:29:02,080
Speaker 2: more in small business and things that we're importing from

608
00:29:02,120 --> 00:29:07,239
Speaker 2: overseas because at the moment, importation is so expensive, so

609
00:29:07,560 --> 00:29:10,600
Speaker 2: you might have gone and bought you know, I'm looking

610
00:29:10,600 --> 00:29:12,800
Speaker 2: at leggings at the moment. As you guys know, you

611
00:29:12,880 --> 00:29:14,480
Speaker 2: might have gone and bought leggings for one hundred and

612
00:29:14,480 --> 00:29:16,840
Speaker 2: twenty bucks and now they're one hundred and twenty five

613
00:29:16,920 --> 00:29:20,360
Speaker 2: dollars because the company's just making sure that the cost

614
00:29:20,520 --> 00:29:23,800
Speaker 2: of their services and you know, getting that product into

615
00:29:23,800 --> 00:29:25,719
Speaker 2: your hands has been taken into account with how much

616
00:29:25,760 --> 00:29:28,240
Speaker 2: you're paying for it, So costs over time are going up.

617
00:29:28,320 --> 00:29:30,640
Speaker 2: I'm saying, lots of small businesses go, hey, cool, like

618
00:29:30,680 --> 00:29:33,400
Speaker 2: it's more expensive for me to do the use makes sense.

619
00:29:33,480 --> 00:29:35,480
Speaker 2: It's all very fair in the world of love and war.

620
00:29:35,520 --> 00:29:36,920
Speaker 2: But at the end of the day, that's why I'm

621
00:29:36,920 --> 00:29:39,600
Speaker 2: such a positive advocate of talking about your salary and

622
00:29:39,640 --> 00:29:42,480
Speaker 2: making sure that you're talking to your employer about consistently

623
00:29:42,520 --> 00:29:45,080
Speaker 2: having pay rises every year. We're not saying that you

624
00:29:45,160 --> 00:29:48,440
Speaker 2: need massive bumps, but it should be in line from

625
00:29:48,440 --> 00:29:51,560
Speaker 2: my perspective with CPI. But to get to the goods,

626
00:29:51,600 --> 00:29:53,720
Speaker 2: to get to the question that you know, this question

627
00:29:53,840 --> 00:29:56,920
Speaker 2: is actually asking. This obviously is about a few things, right.

628
00:29:57,000 --> 00:30:00,840
Speaker 2: So loans, the reserve bank, this is actually their realm,

629
00:30:01,040 --> 00:30:04,520
Speaker 2: and the reserve bank they set the interest rate, right,

630
00:30:04,760 --> 00:30:06,880
Speaker 2: So they set the interest rate that the banks then

631
00:30:06,920 --> 00:30:10,000
Speaker 2: adopt and then you can get loans for and that

632
00:30:10,160 --> 00:30:13,480
Speaker 2: is the primary tool that they use to control inflation.

633
00:30:14,040 --> 00:30:16,880
Speaker 2: As inflation goes up, the Reserve Bank tend to be

634
00:30:16,960 --> 00:30:21,480
Speaker 2: a little bit more willing to raise interest rates. Meaning mortgages,

635
00:30:21,680 --> 00:30:25,640
Speaker 2: personal loans, credit cards, they're all going to become more expensive.

636
00:30:26,120 --> 00:30:29,400
Speaker 2: But given we have just come out of COVID, I'd

637
00:30:29,400 --> 00:30:32,320
Speaker 2: be very apprehensive to think that the government would actually

638
00:30:32,360 --> 00:30:38,080
Speaker 2: allow the RBA to increase interest rates dramatically quickly, given

639
00:30:38,120 --> 00:30:41,960
Speaker 2: how much financial disadvantage the entire country has been through recently,

640
00:30:42,280 --> 00:30:44,280
Speaker 2: Like that would just put us into a bigger hole.

641
00:30:44,440 --> 00:30:47,520
Speaker 2: More people couldn't afford their mortgages, more people couldn't afford

642
00:30:47,560 --> 00:30:49,760
Speaker 2: their personal loans, they'd be in far more debt. Like

643
00:30:49,800 --> 00:30:52,160
Speaker 2: it's not a positive thing from my perspective to put

644
00:30:52,200 --> 00:30:55,520
Speaker 2: the interest rates up. But in saying that, that's why, Guys,

645
00:30:55,560 --> 00:30:58,520
Speaker 2: when you go to see a mortgage broker, and Jess

646
00:30:58,760 --> 00:31:01,080
Speaker 2: I keep referring to you, you're going through this process

647
00:31:01,080 --> 00:31:03,960
Speaker 2: at the moment, it's very exciting. They don't just assess

648
00:31:04,000 --> 00:31:06,280
Speaker 2: you for that two percent that that mortgage is going

649
00:31:06,320 --> 00:31:08,840
Speaker 2: to cost you each year at this current rate, right,

650
00:31:09,160 --> 00:31:12,560
Speaker 2: They actually assess you for double or even triple to

651
00:31:12,640 --> 00:31:15,120
Speaker 2: make sure that if interest rates go up, you're still

652
00:31:15,120 --> 00:31:17,360
Speaker 2: going to be able to afford it, because bank doesn't

653
00:31:17,360 --> 00:31:19,600
Speaker 2: want to take the risk of being like, all right, Jess,

654
00:31:19,640 --> 00:31:22,120
Speaker 2: no problems, come in, sit down, We're going to give

655
00:31:22,120 --> 00:31:24,600
Speaker 2: you a mortgage. It's right at the top end of

656
00:31:24,640 --> 00:31:27,240
Speaker 2: what you can afford. But if interest rates go up,

657
00:31:27,400 --> 00:31:29,360
Speaker 2: you're kind of screwed. You won't be able to afford it.

658
00:31:29,520 --> 00:31:33,120
Speaker 2: So banks actually cover their own butts by assessing Jess

659
00:31:33,160 --> 00:31:36,360
Speaker 2: as paying a higher interest rate. So it's not something

660
00:31:36,400 --> 00:31:39,400
Speaker 2: that hasn't been not taken into consideration. But at the

661
00:31:39,480 --> 00:31:41,200
Speaker 2: end of the day, if you've been calculating mortgage or

662
00:31:41,200 --> 00:31:43,560
Speaker 2: payments and doing your budget like, it's a it's pretty

663
00:31:43,560 --> 00:31:46,800
Speaker 2: shitstick to be dealt, right, Like you don't want someone

664
00:31:46,840 --> 00:31:48,720
Speaker 2: to turn around and be like, oh my gosh, now

665
00:31:48,720 --> 00:31:51,320
Speaker 2: it's so much more expensive. We don't want to be surprised.

666
00:31:51,560 --> 00:31:54,920
Speaker 2: But that is what a rising inflation rate means for

667
00:31:54,960 --> 00:31:55,440
Speaker 2: your loan.

668
00:31:55,680 --> 00:31:58,760
Speaker 4: Yeah, I think for again, like speaking from current recent

669
00:31:58,800 --> 00:32:02,200
Speaker 4: personal experiences, I was assessed at around six percent.

670
00:32:02,520 --> 00:32:04,280
Speaker 3: I think is my pretty standard.

671
00:32:05,000 --> 00:32:06,880
Speaker 4: Yeah, I guess I would just say to this listener

672
00:32:06,920 --> 00:32:09,120
Speaker 4: and anyone else who's in the same boat as me,

673
00:32:09,320 --> 00:32:12,040
Speaker 4: who is looking at buying or building and is probably

674
00:32:12,120 --> 00:32:15,160
Speaker 4: on the Money Smart website every day looking at that calculator,

675
00:32:15,200 --> 00:32:18,080
Speaker 4: figuring out what you can afford, how much, how that

676
00:32:18,120 --> 00:32:20,640
Speaker 4: works into your budget. I would say to plug those

677
00:32:20,720 --> 00:32:23,960
Speaker 4: numbers in at a significantly higher interest rate than what's

678
00:32:24,000 --> 00:32:25,960
Speaker 4: going around now, and then what you would qualify for

679
00:32:26,120 --> 00:32:28,280
Speaker 4: six or seven percent was kind of the benchmark we

680
00:32:28,280 --> 00:32:31,040
Speaker 4: were looking at, And to be honest, I would say

681
00:32:31,120 --> 00:32:34,400
Speaker 4: kind of overinflate it rather than underinflated, because you'd rather

682
00:32:34,440 --> 00:32:36,400
Speaker 4: be overprepared than taken by.

683
00:32:36,320 --> 00:32:37,520
Speaker 3: Surprise, exactly.

684
00:32:37,760 --> 00:32:40,360
Speaker 2: And that's why Jess apologies for throwing you under the

685
00:32:40,360 --> 00:32:43,600
Speaker 2: bus there, but it's really relevant and you're going through

686
00:32:43,640 --> 00:32:46,480
Speaker 2: that at the moment, and it's not something that I

687
00:32:46,520 --> 00:32:48,440
Speaker 2: think a lot of people think of when they're like,

688
00:32:48,440 --> 00:32:51,200
Speaker 2: but I have the deposit, Like, okay, but we're actually

689
00:32:51,240 --> 00:32:53,600
Speaker 2: going to assess you at a higher interest rate than

690
00:32:53,720 --> 00:32:56,560
Speaker 2: what you're going to expect to pay. And the reason

691
00:32:56,560 --> 00:32:58,840
Speaker 2: for that is to protect you and to protect the bank,

692
00:32:58,920 --> 00:33:02,000
Speaker 2: to make sure that if this happens and inflation does

693
00:33:02,080 --> 00:33:05,240
Speaker 2: go up, you're protected and everybody is safe and okay,

694
00:33:05,720 --> 00:33:08,880
Speaker 2: because in the US, you know, during the global financial crisis,

695
00:33:08,920 --> 00:33:11,160
Speaker 2: things change, people can't afford it. We don't want to

696
00:33:11,160 --> 00:33:13,960
Speaker 2: see something similar to that happen in saying that not

697
00:33:14,040 --> 00:33:16,080
Speaker 2: everyone's looking for a loan. So what does that mean

698
00:33:16,080 --> 00:33:18,920
Speaker 2: for your savings? What does it mean for your investments?

699
00:33:19,120 --> 00:33:22,080
Speaker 2: So first things first, if your savings do not grow,

700
00:33:22,160 --> 00:33:23,680
Speaker 2: and this is going to be a little bit of

701
00:33:23,680 --> 00:33:27,040
Speaker 2: a rude shock, if your savings aren't growing at the

702
00:33:27,120 --> 00:33:30,720
Speaker 2: rate that is at least equal to inflation, your wealth

703
00:33:30,800 --> 00:33:36,720
Speaker 2: is shrinking, which is not nice to hear because just George,

704
00:33:37,200 --> 00:33:39,880
Speaker 2: are your savings returning three percent in the moment?

705
00:33:40,360 --> 00:33:40,880
Speaker 3: I wish?

706
00:33:40,960 --> 00:33:44,800
Speaker 2: Yeah, I know, right, So for example, inflation is now

707
00:33:44,920 --> 00:33:47,720
Speaker 2: literally running at three percent, but cash in I guess

708
00:33:47,720 --> 00:33:50,880
Speaker 2: a current bank account, in a high interest savings account

709
00:33:50,920 --> 00:33:55,680
Speaker 2: is on average earning zero point one percent. Like, we

710
00:33:55,800 --> 00:33:58,680
Speaker 2: are not getting ahead and its value is being really

711
00:33:58,680 --> 00:34:00,760
Speaker 2: eroded with every day that is passing. And I don't

712
00:34:00,800 --> 00:34:02,960
Speaker 2: need to be super dramatic, but that's what is happening.

713
00:34:03,120 --> 00:34:04,400
Speaker 2: And a lot of people are like, yeah, but I'm

714
00:34:04,400 --> 00:34:07,400
Speaker 2: sitting on cash and I'm fine. But you know how

715
00:34:07,440 --> 00:34:10,200
Speaker 2: we're talking before about the inflation of goods and services

716
00:34:10,239 --> 00:34:13,239
Speaker 2: that cost ten dollars in twenty ten. Ten dollars in

717
00:34:13,280 --> 00:34:16,000
Speaker 2: twenty ten today is going to cost you one hundred

718
00:34:16,040 --> 00:34:18,640
Speaker 2: and twenty four dollars. So this is really important to

719
00:34:18,680 --> 00:34:23,560
Speaker 2: take into consideration when we're doing things like projecting for retirement,

720
00:34:23,719 --> 00:34:27,759
Speaker 2: projecting for future investments. We need to take into consideration

721
00:34:28,080 --> 00:34:30,680
Speaker 2: the present value of a dollar because what we can

722
00:34:30,719 --> 00:34:33,040
Speaker 2: buy today, like if we go down to the shops

723
00:34:33,040 --> 00:34:35,840
Speaker 2: and a loaf of bread is four dollars, in the future,

724
00:34:36,760 --> 00:34:38,920
Speaker 2: that loaf of bread is not going to be four dollars.

725
00:34:39,080 --> 00:34:42,120
Speaker 2: It might be eight dollars. And if I say, heys,

726
00:34:42,360 --> 00:34:43,880
Speaker 2: how much do you think you'll need in retirement?

727
00:34:43,920 --> 00:34:44,839
Speaker 3: You go, oh, gin know what?

728
00:34:45,000 --> 00:34:46,799
Speaker 2: Like if I own my house out right and I

729
00:34:46,800 --> 00:34:49,360
Speaker 2: don't need too much, do you know what? Sixty grand

730
00:34:49,400 --> 00:34:52,760
Speaker 2: a year would be more than sufficient because my groceries

731
00:34:52,800 --> 00:34:55,200
Speaker 2: cost one hundred dollars a week, and this costs this

732
00:34:55,239 --> 00:34:58,040
Speaker 2: a week, and you go through your budget, Well, groceries

733
00:34:58,120 --> 00:35:00,120
Speaker 2: might today cost you one hundred dollars a week, but

734
00:35:00,160 --> 00:35:02,120
Speaker 2: with inflation in the future, that's going to be a

735
00:35:02,120 --> 00:35:05,160
Speaker 2: lot more. So we need to take inflation into consideration

736
00:35:05,280 --> 00:35:08,320
Speaker 2: when we are talking about investments, because if we don't

737
00:35:08,360 --> 00:35:10,200
Speaker 2: and we project it out and go, wow, I could

738
00:35:10,200 --> 00:35:12,960
Speaker 2: have a million dollars in thirty years, what is that

739
00:35:13,000 --> 00:35:15,239
Speaker 2: million dollars actually going to buy you? And is that

740
00:35:15,360 --> 00:35:18,239
Speaker 2: sufficient to provide the lifestyle that you want to have

741
00:35:18,800 --> 00:35:22,600
Speaker 2: or want to maintain. So important to talk about because hypothetically,

742
00:35:22,640 --> 00:35:25,160
Speaker 2: if you had ten dollars ten years ago, if you

743
00:35:25,239 --> 00:35:29,040
Speaker 2: had invested that, it should have doubled, so that money

744
00:35:29,320 --> 00:35:32,040
Speaker 2: over a ten year period of time instead of costing

745
00:35:32,080 --> 00:35:34,960
Speaker 2: you money. If it was invested, instead of just sitting

746
00:35:35,040 --> 00:35:37,839
Speaker 2: in cash, it means that you would have more than

747
00:35:37,840 --> 00:35:40,320
Speaker 2: you had to begin with. So I think it's important

748
00:35:40,360 --> 00:35:42,759
Speaker 2: to think about that and what that actually means because

749
00:35:42,800 --> 00:35:44,600
Speaker 2: a lot of people think that they're doing the best

750
00:35:44,600 --> 00:35:47,359
Speaker 2: possible thing for themselves when they just hold a whole

751
00:35:47,360 --> 00:35:50,520
Speaker 2: heave of cash in their savings account. But one hundred

752
00:35:50,560 --> 00:35:53,239
Speaker 2: dollars today is actually worth less than one hundred dollars

753
00:35:53,320 --> 00:35:57,560
Speaker 2: tomorrow based on current CPI and current inflation rates. What

754
00:35:57,600 --> 00:35:59,000
Speaker 2: does that mean for your investments?

755
00:35:59,040 --> 00:35:59,279
Speaker 3: Though?

756
00:35:59,280 --> 00:36:01,080
Speaker 2: Because a lot of at the moment, guys and you

757
00:36:01,080 --> 00:36:02,760
Speaker 2: would see this in the Shoes on the Money community

758
00:36:03,040 --> 00:36:05,919
Speaker 2: messaging us going what's going on with spaceship, what's going

759
00:36:05,960 --> 00:36:06,640
Speaker 2: on with race?

760
00:36:06,960 --> 00:36:08,440
Speaker 3: What's happening with my investment?

761
00:36:08,520 --> 00:36:11,400
Speaker 2: And we literally spoke about this on a Friday drinks

762
00:36:11,400 --> 00:36:14,240
Speaker 2: a couple of weeks ago. But when inflation is rising

763
00:36:14,320 --> 00:36:18,080
Speaker 2: or it's already high, holding assets like shares or property

764
00:36:18,280 --> 00:36:22,040
Speaker 2: or even bonds can actually be more attractive than keeping

765
00:36:22,040 --> 00:36:24,799
Speaker 2: your money in cash, which I alluded to before. But

766
00:36:25,120 --> 00:36:29,040
Speaker 2: shifts in inflation and in interest rate expectations can also

767
00:36:29,440 --> 00:36:31,600
Speaker 2: spook us. It can make us a little bit worried

768
00:36:31,640 --> 00:36:35,120
Speaker 2: as investors, especially as first time investors getting into the market.

769
00:36:35,120 --> 00:36:36,960
Speaker 2: You're like, oh my gosh, this is so expensive. I

770
00:36:36,960 --> 00:36:39,239
Speaker 2: don't know if it's the right time, because it does

771
00:36:39,320 --> 00:36:42,520
Speaker 2: create a little bit of market volatility. And volatility is

772
00:36:42,560 --> 00:36:45,640
Speaker 2: when the share prices or the price of anything goes

773
00:36:45,760 --> 00:36:48,600
Speaker 2: up and down over time. And the more volatile and

774
00:36:48,680 --> 00:36:50,719
Speaker 2: asset is, the more likely it is to kind of

775
00:36:50,719 --> 00:36:52,680
Speaker 2: look like a wave. It will go up and down

776
00:36:52,800 --> 00:36:57,760
Speaker 2: over time, and it can just result in unpredictable asset prices.

777
00:36:57,960 --> 00:36:59,560
Speaker 2: So at the moment, I'm seeing a lot because I

778
00:36:59,600 --> 00:37:02,160
Speaker 2: followed lots of finance people on Instagram, Guys like I

779
00:37:02,280 --> 00:37:05,200
Speaker 2: am a hoot at parties, but lots of people like,

780
00:37:05,239 --> 00:37:07,440
Speaker 2: oh my gosh, the shell market's so volatile at the

781
00:37:07,480 --> 00:37:10,759
Speaker 2: moment it's going up, it's really unpredictable. Yes, there's a

782
00:37:10,800 --> 00:37:13,120
Speaker 2: lot going on in the market, and that's why as

783
00:37:13,120 --> 00:37:17,040
Speaker 2: a financial advisor, I really back a theory of investment

784
00:37:17,200 --> 00:37:20,279
Speaker 2: that is around dollar cost averaging and making sure we're

785
00:37:20,320 --> 00:37:22,160
Speaker 2: not trying to time the market, that we are just

786
00:37:22,239 --> 00:37:24,120
Speaker 2: investing at the times that are right for us and

787
00:37:24,200 --> 00:37:27,120
Speaker 2: investing consistently over the long term to make sure that

788
00:37:27,160 --> 00:37:29,120
Speaker 2: we're making the most of the high days and we're

789
00:37:29,120 --> 00:37:31,440
Speaker 2: making the most of the low days, so on average

790
00:37:31,480 --> 00:37:34,359
Speaker 2: we have an average return instead of trying to time

791
00:37:34,400 --> 00:37:36,759
Speaker 2: the market because we cannot time the market because we

792
00:37:36,800 --> 00:37:38,759
Speaker 2: don't know what's going to happen tomorrow. Like, no one

793
00:37:38,800 --> 00:37:41,680
Speaker 2: saw this coming. Even the people at the RBA who

794
00:37:41,760 --> 00:37:46,200
Speaker 2: were predicting interest rates didn't see inflation coming in at

795
00:37:46,200 --> 00:37:48,239
Speaker 2: the top end of three percent. So I think it's

796
00:37:48,280 --> 00:37:51,560
Speaker 2: important to remember that this stuff is going to happen,

797
00:37:51,920 --> 00:37:53,799
Speaker 2: and the best thing you can do for you is

798
00:37:53,800 --> 00:37:56,120
Speaker 2: to actually just be educated on it and not freak

799
00:37:56,200 --> 00:37:59,200
Speaker 2: out when things like this happen or not be scared away,

800
00:37:59,520 --> 00:38:02,600
Speaker 2: because from my perspective, when it comes to purchasing property.

801
00:38:02,800 --> 00:38:05,960
Speaker 2: There's no such thing as timing the market or when's

802
00:38:06,000 --> 00:38:08,719
Speaker 2: the right time to buy, because the right time to

803
00:38:08,719 --> 00:38:10,960
Speaker 2: buy is actually when it is the right time for

804
00:38:11,000 --> 00:38:15,239
Speaker 2: you to buy based on your financial circumstances. Like Jes,

805
00:38:15,400 --> 00:38:17,360
Speaker 2: the right time for you to buy isn't when there's

806
00:38:17,480 --> 00:38:20,840
Speaker 2: low interest rate or you know, when property prices are dropping.

807
00:38:21,120 --> 00:38:24,239
Speaker 2: It's actually when you've got the funds available to you've

808
00:38:24,239 --> 00:38:26,520
Speaker 2: got the financial security behind you to get you know,

809
00:38:26,640 --> 00:38:29,360
Speaker 2: qualified for a good loan. It's when you are mentally ready.

810
00:38:29,360 --> 00:38:31,600
Speaker 2: It's when you have the time and energy and effort

811
00:38:31,840 --> 00:38:34,560
Speaker 2: to put into the home buying process and that search.

812
00:38:34,920 --> 00:38:38,719
Speaker 2: And so I think from my perspective, it's really important

813
00:38:38,960 --> 00:38:41,560
Speaker 2: to kind of take ourselves out of this and go,

814
00:38:41,880 --> 00:38:43,879
Speaker 2: is this actually going to affect me in the way

815
00:38:43,920 --> 00:38:46,319
Speaker 2: that the media seems to be making up that it will.

816
00:38:46,920 --> 00:38:49,360
Speaker 2: Does that help? Does that answer it? I don't know, George,

817
00:38:49,640 --> 00:38:51,000
Speaker 2: summarize what I said, because I.

818
00:38:51,160 --> 00:38:53,800
Speaker 5: Rant I will give you my take on what you

819
00:38:53,920 --> 00:38:58,080
Speaker 5: just said. So I've been voraciously making notes because there

820
00:38:58,120 --> 00:39:01,440
Speaker 5: was a lot there. So basically, the impact of inflation

821
00:39:01,960 --> 00:39:04,920
Speaker 5: on millennials, all of us right now is that the

822
00:39:04,960 --> 00:39:07,560
Speaker 5: costs of everyday goods and services will increase.

823
00:39:08,000 --> 00:39:09,160
Speaker 3: That just is what it is.

824
00:39:09,200 --> 00:39:11,560
Speaker 5: Your oat late is now going to cost five dollars instead.

825
00:39:11,320 --> 00:39:13,320
Speaker 3: Of four dollars fifty I have noticed that actually in

826
00:39:13,360 --> 00:39:17,560
Speaker 3: my local cafe. Kind of rude. It's inflation. I get it.

827
00:39:17,560 --> 00:39:19,319
Speaker 3: If there is more business, though, I'm happy to pay

828
00:39:19,400 --> 00:39:19,719
Speaker 3: them more.

829
00:39:19,840 --> 00:39:22,920
Speaker 5: We'll also be able to save less because of the

830
00:39:22,960 --> 00:39:27,239
Speaker 5: costs of those goods and services. But hopefully our incomes

831
00:39:27,880 --> 00:39:33,520
Speaker 5: will go up if our bosses help us out. And

832
00:39:33,560 --> 00:39:37,400
Speaker 5: then from a home buying point of view, the costs

833
00:39:37,400 --> 00:39:41,840
Speaker 5: of our mortgage will increase because interest rates are increasing.

834
00:39:42,000 --> 00:39:45,440
Speaker 2: Very likely, but as I said, given the current state

835
00:39:45,520 --> 00:39:49,440
Speaker 2: of the world, inflation isn't going to just sting us overnight.

836
00:39:49,600 --> 00:39:52,759
Speaker 2: Like over a period of time, it might increase. And

837
00:39:52,960 --> 00:39:55,560
Speaker 2: this is where we could have a conversation about fixed

838
00:39:55,640 --> 00:39:58,600
Speaker 2: versus variable loans. And you know, people often want fixed

839
00:39:58,600 --> 00:40:01,279
Speaker 2: because they get that certainty of Okay, well, I know,

840
00:40:01,360 --> 00:40:04,440
Speaker 2: even if inflation impacts and the interest rates go up,

841
00:40:04,520 --> 00:40:07,320
Speaker 2: I'll still only pay that lower amount for that period

842
00:40:07,320 --> 00:40:10,440
Speaker 2: of time versus variable, where people like no, if the

843
00:40:10,520 --> 00:40:12,439
Speaker 2: interest rate goes down, like I want to be able

844
00:40:12,480 --> 00:40:14,640
Speaker 2: to make use of that. So I think it's interesting

845
00:40:14,680 --> 00:40:16,520
Speaker 2: to have a look at your loan structure at this

846
00:40:16,560 --> 00:40:19,160
Speaker 2: point in time too and go, hey, if you can't

847
00:40:19,280 --> 00:40:22,200
Speaker 2: actually afford to, you know, have any change in your

848
00:40:22,239 --> 00:40:26,279
Speaker 2: mortgage repayment amount obviously increasing because we all want to

849
00:40:26,320 --> 00:40:29,000
Speaker 2: pay less, but now would be a really good time

850
00:40:29,040 --> 00:40:31,080
Speaker 2: to talk to a mortgage broker. Like, if you don't

851
00:40:31,120 --> 00:40:32,560
Speaker 2: have one and you want to have a chat, hit

852
00:40:32,600 --> 00:40:34,120
Speaker 2: us up on the Shee's on the Money website and

853
00:40:34,120 --> 00:40:36,120
Speaker 2: we can match you with a broker that'll work for you.

854
00:40:36,640 --> 00:40:38,520
Speaker 2: But it's one of those things where you should be

855
00:40:38,560 --> 00:40:40,799
Speaker 2: having that conversation to make sure you're in the best

856
00:40:40,800 --> 00:40:44,080
Speaker 2: possible financial position. And even if you talk to a

857
00:40:44,080 --> 00:40:46,560
Speaker 2: broker and they're like, nah, Jess, you're fine, that just

858
00:40:46,560 --> 00:40:47,960
Speaker 2: gives you the peace of mind that you're like, no,

859
00:40:48,040 --> 00:40:49,040
Speaker 2: I checked, I'm okay.

860
00:40:49,239 --> 00:40:49,640
Speaker 4: Yeah.

861
00:40:50,480 --> 00:40:52,279
Speaker 2: But I do think that is all we have time

862
00:40:52,320 --> 00:40:54,759
Speaker 2: for today. So just before we head off, we'd like

863
00:40:54,800 --> 00:40:58,440
Speaker 2: to acknowledge and pay respect to Australia's Aboriginal and Torres

864
00:40:58,440 --> 00:41:02,240
Speaker 2: Straight islander people's. They're the traditional custodians of the lands,

865
00:41:02,280 --> 00:41:05,319
Speaker 2: the waterways and the skies all across Australia.

866
00:41:05,680 --> 00:41:07,680
Speaker 3: We thank you for sharing at the caring for the

867
00:41:07,760 --> 00:41:09,919
Speaker 3: land on which we are able to learn.

868
00:41:10,280 --> 00:41:12,960
Speaker 2: We pay our respects to elders past and present, and

869
00:41:13,000 --> 00:41:15,040
Speaker 2: we share our friendship and our kindness.

870
00:41:15,360 --> 00:41:17,520
Speaker 3: See you next week, guys. Bye bye, guys,