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Speaker 1: Just before we get started, we'd like to acknowledge and

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Speaker 1: pay respect to Australia's Aboriginal and torrest Rate islander people's.

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Speaker 1: They're the traditional custodians of the lands, the waterways and

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Speaker 1: the skies all across Australia. We thank you for sharing

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Speaker 1: and for caring for the land on which we are

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Speaker 1: able to learn. We pay respects to elders past and present,

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Speaker 1: and we share our friendship and our kindness.

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Speaker 2: She's on the Money, She's on the Money.

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Speaker 1: Hello, and welcome to She's on the Money, the podcast

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Speaker 1: for Millennials who want financial freedom. Welcome back to another

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Speaker 1: one of our Friday Drinks episodes where I'm getting really

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Speaker 1: sick of doing this intro, so I'm going to make

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Speaker 1: Georgia organize another one for next week. But as you

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Speaker 1: guys know, this episode is all about celebrating you and

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Speaker 1: getting to reflect on the week that was, talking about

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Speaker 1: our community sharing their money wins and sometimes a few

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Speaker 1: of their confessions, and we adore it, honestly, Jess, George

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Speaker 1: and I. Even though George this week is remote because

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Speaker 1: she forgot or a recording and now is in a wardrobe.

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Speaker 1: We always talk about you, guys, and your successes and

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Speaker 1: sometimes your little confessions regardless of where we are. Let's

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Speaker 1: start with you, miss jessic Garci. How was your week?

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Speaker 3: It was good, spopping along living the dream.

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Speaker 1: She brought a cricket into the She's on the Money

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Speaker 1: office today.

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Speaker 3: Yeah, we're making stickers.

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Speaker 1: It's fine, Yeah, okay, loving it and a Lisa, our producer,

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Speaker 1: and I learned what a cricket was. We also learned

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Speaker 1: what a weeding tool was and what smart vinyl is.

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Speaker 1: It's very cool. We will boast a photo, but in more.

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Speaker 1: She's on the Money news, jess What happened this week

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Speaker 1: on our money diar? This week's diarist had three kids

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Speaker 1: and three jobs. Just for that nice little bit of symmetry.

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Speaker 1: And it's just working her little too, trying to such

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Speaker 1: a hustler, Yeah, trying to get towards the financial freedom

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Speaker 1: she wants, which I think is incredible. She really wants

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Speaker 1: to build up on her assets, which we love to

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Speaker 1: see it. And yeah, it was just really interesting to

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Speaker 1: talk to her about how she kind of balances, you know,

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Speaker 1: the financial desires that she has and the goals that

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Speaker 1: she has against the ies challenges of working in so

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Speaker 1: many different places and obviously the time that that takes

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Speaker 1: along with having three kids, who I believe were all

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Speaker 1: under the age of three. Yeah, it was insane. I

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Speaker 1: was like, excuse me, what are you a supermum?

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Speaker 3: Like?

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Speaker 1: How absolutely wild? Here. I am being like, oh my gosh,

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Speaker 1: there's no way I'm ever going to find time to

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Speaker 1: have a baby, and she's like, what do you mean,

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Speaker 1: YaST time, hips, time, hips, jobs, hips of everything. I

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Speaker 1: was honestly in awe, But I think that money Diary

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Speaker 1: was really nice because I feel like we haven't had

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Speaker 1: that many mums on the pod. I mean, we've had

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Speaker 1: lots of young women who are doing really cool things,

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Speaker 1: but hearing from a mum's perspective how she was balancing

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Speaker 1: all of that and still putting herself first, I was

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Speaker 1: very impressed. But you know what else impresses me? Jess investing,

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Speaker 1: which is what we spoke about on this week's Wednesday episode,

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Speaker 1: Georgia King break it down for us.

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Speaker 2: Hello, I thought you were going to segue that Vie

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Speaker 2: by saying, you know what else impresses me? George's set

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Speaker 2: up this week, I'm coming at you from Ed's wardrobe

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Speaker 2: down at Blake Gowery, so apologies for the audio quality.

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Speaker 2: It is what it is. I'm a potato.

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Speaker 3: Definitely check out our Instagram because we will put up

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Speaker 3: a photo so you can see exactly what we see.

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Speaker 3: The first option Georgia gave us was tuning in with

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Speaker 3: a karaoke microphone, so it's only going up from here.

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Speaker 2: It's still an option, ladies, still an option. So on

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Speaker 2: Wednesday's show, guys, we discussed varying types of investing platforms,

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Speaker 2: and we spoke about micro investing platforms versus robo advice

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Speaker 2: versus share training platforms, and it was a really interesting chat.

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Speaker 2: I mean it was between the two of you, but

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Speaker 2: I loved listening because it was really interesting for anyone

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Speaker 2: who's thinking about investing slash, for anyone who has maybe

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Speaker 2: started micro investing but they're thinking about taking that next step,

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Speaker 2: if you will. So yeah, it was a really good,

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Speaker 2: good listen, And if you are on the fence about investing,

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Speaker 2: or you are thinking about graduating to something a little

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Speaker 2: bit more serious, then I'd definitely give it a listen.

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Speaker 3: I thought it was really interesting as well because we

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Speaker 3: kind of phrased it v in terms of primary school,

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Speaker 3: high school, and university and the idea that you can

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Speaker 3: kind of graduate up if you want to. But also

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Speaker 3: we chatted a lot about the fact that different platforms

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Speaker 3: offer people different benefits, and you know, depending on what

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Speaker 3: you want, you might just stay with one platform forever.

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Speaker 3: You don't necessarily have to graduate all the way through

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Speaker 3: to the point we have a financial advisor managing a

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Speaker 3: multi billion dollar portfolio for some people, so love to

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Speaker 3: be in that position. Oh yeah, me too, manifesting that

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Speaker 3: for all of us. But you know, if something really

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Speaker 3: services your needs, it doesn't necessarily mean that just because

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Speaker 3: it's not the furthest along or the most advanced, that

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Speaker 3: it's a bad thing. So I think it was really

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Speaker 3: cool to chat about what these different platforms offer so

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Speaker 3: people can make an informed decision about what might work

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Speaker 3: for them and they're wance and their needs.

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Speaker 1: Yeah, and I find it really interesting as well, because

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Speaker 1: obviously we get asked a lot of questions about this,

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Speaker 1: and we're not able to answer what is the best

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Speaker 1: because that doesn't exist. There's no best one platform. There's

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Speaker 1: just the best for your personal situation, and we don't

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Speaker 1: know what your personal situation is, unfortunately, because that would

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Speaker 1: make our lives much easier. But we see all the

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Speaker 1: time on money Diaries money dorists using a whole plethora

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Speaker 1: of platforms like they might be using Raise and Spaceship.

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Speaker 1: And then recently, Jess, we interviewed a money dirist who

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Speaker 1: was like, Yeah, I've got Rais and I've got Spaceship,

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Speaker 1: and I'm currently on Shares's and i also have self

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Speaker 1: Wealth and I was like, great, get it. Like we

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Speaker 1: use them all in different ways. So I think understanding

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Speaker 1: the difference between each level, or you know, the difference

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Speaker 1: between micro investing and share trading and what robo advice

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Speaker 1: actually is, is really powerful and helps you pick the

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Speaker 1: right one for your situation because too often we just

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Speaker 1: don't know what we don't know, Like, how do you

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Speaker 1: know what these platforms actually do?

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Speaker 3: I'm going maga spreadsheet. We love a spreadsheet. Put it

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Speaker 3: in a spreadsheet. It's very common phrase now of us.

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Speaker 1: I feel like it is because that then what we do,

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Speaker 1: and then we fawn over the spreadsheet instead of actually

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Speaker 1: doing the work. We probably should work on that. But George,

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Speaker 1: take us through what you think are the hottest takes

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Speaker 1: from our Money Wins and Confessions thread.

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Speaker 3: This week we.

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Speaker 2: Had some really good ones, guys, I think in last

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Speaker 2: week's show, maybe we said we were going to do

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Speaker 2: all confessions.

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Speaker 1: Yeah, I said I wanted to hear confessions.

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Speaker 2: So I threw that in the bin and I'm doing

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Speaker 2: wins because they were, honestly, so many good ones.

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Speaker 3: There weren't many.

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Speaker 1: Confessions, Okay. Well, I was like, I want to feel heard.

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Speaker 1: I want some relatable content. I've been a bit naughty

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Speaker 1: with money recently. I want to hear some confessions. And

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Speaker 1: You're like, straight in the bin with that.

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Speaker 3: So George, make a confessions thread separately.

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Speaker 1: Yeah, I don't need you. We're going to do it

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Speaker 1: on our own. Tell us though, what were some of

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Speaker 1: the wins this week?

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Speaker 2: All righty guys. So the first win it comes from Brian.

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Speaker 2: She said, I just moved to the Sunny Coast from Townsville.

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Speaker 2: I'm four months pregnant and I've just landed a contract

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Speaker 2: position which will take me right up to when I

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Speaker 2: need to stop working. The new workplace knows i'm pregnant,

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Speaker 2: so everything is out in the open and it will

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Speaker 2: qualify me for pay on your brand.

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Speaker 1: Very money, win.

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Speaker 2: Money win. The next one comes from Demirah. After reading

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Speaker 2: the first three chapters of She's on the money. I

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Speaker 2: realized I had no idea of the interest rates attached

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Speaker 2: to my savers accounts. I've called my bank to change

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Speaker 2: my emergency fund and short term savings from a flexi

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Speaker 2: saver zero point four or five percent perannum to a

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Speaker 2: goal saver account that's one point one five percent perannum,

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Speaker 2: and then I'm getting.

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Speaker 3: For free money.

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Speaker 1: I love this, Oh my gosh. And the fact that

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Speaker 1: she's already doing stuff after only reading three chapters of

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Speaker 1: my book Guys clearly the best book ever exactly.

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Speaker 2: I thought you'd like that one.

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Speaker 1: I've got a few tickets. The next one.

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Speaker 2: Comes from Chelsea. I became a single mum of three

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Speaker 2: last year. I'd set a savings goal to reach by

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Speaker 2: the end of the financial year to finally give me

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Speaker 2: peace of mind for emergencies, and I finally reached it

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Speaker 2: last week.

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Speaker 1: Oh my gosh. Yes, how good is that? Also, how

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Speaker 1: good is it that that's so quick after becoming angle

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Speaker 1: mum of three to be able to get to that goal. Like, Yes,

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Speaker 1: I love this.

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Speaker 2: It was very good and it was really cool to

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Speaker 2: see everyone in the community getting around that post as well.

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Speaker 2: It was one of the most popular in the threads

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Speaker 2: so well done to you, Chelsea, a massive achievement. The

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Speaker 2: next win comes from Campbell. I was offered a new

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Speaker 2: job with a forty thousand dollars salary increase, and if

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Speaker 2: I pass my probation, they will give me a company

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Speaker 2: car and a fuel card forty.

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Speaker 1: K I'm in the market for a new job now, Camber,

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Speaker 1: pass on the deets of your employer, because if your

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Speaker 1: probation doesn't work out, maybe I've got a hot shot

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Speaker 1: our jokes. No one would hire me.

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Speaker 3: I'd fire me.

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Speaker 1: Yess like, if I was an employee here, I would

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Speaker 1: have already been fired.

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Speaker 3: There's a reason she's the boss an employee.

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Speaker 1: See you buy.

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Speaker 2: The next win comes from Charlotte. I went to an

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Speaker 2: island mysterious with some friends for the weekend. I used

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Speaker 2: public transport and paid five dollars versus the fifty dollars

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Speaker 2: my friends spent the taxi. I only turned up maybe

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Speaker 2: ten minutes later than they did, and I'm so proud

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Speaker 2: of myself.

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Speaker 1: On your Charlotte, I'm impressed. I'm glad you had a money.

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Speaker 1: I don't understand any of that. How do you get

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Speaker 1: to an island using a taxi? I'm just there's a

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Speaker 1: lot of context missing here. Where's the way that I

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Speaker 1: read it?

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Speaker 2: You're fine, and Charlotte, don't let me get you down.

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Speaker 1: Where's this island? I don't know? Did you go to

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Speaker 1: Tazzy for the weekend?

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Speaker 3: Who knows?

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Speaker 2: Philip Island? Not sure? Okay, guys. The final win of

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Speaker 2: the day comes from Tammy money win. My partner and

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Speaker 2: I bought a house at the beginning of this year.

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Speaker 2: He earns about three times as much as what I do,

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Speaker 2: so we've just recently rediscussed the split of our mortgage

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Speaker 2: repayments and bills and expenses. My ex would have expected

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Speaker 2: me to pay half, no matter the difference in our incomes,

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Speaker 2: but my partner now is so open to discussing finances

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Speaker 2: and working as a team so that I'm not struggling

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Speaker 2: on my smaller wage equity.

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Speaker 1: Yay, Oh my gosh, that's a very good place to

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Speaker 1: leave it. I feel like those wins are very good.

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Speaker 1: Let's go to a quick break and when we get back,

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Speaker 1: we've got a listener question. We've got some content to

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Speaker 1: share with you, and George's going to tell you a

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Speaker 1: little bit more about her cupboard den.

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Speaker 3: All right, girls, last week it was announced that Australia's

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Speaker 3: inflation rate has risen to five point one percent over

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Speaker 3: the past twelve months, which is well above the target

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Speaker 3: and people have probably already seen that at the petrol pump,

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Speaker 3: at the grocery store. It basically just means it's more

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Speaker 3: expensive to be alive right now, which sucks. But a

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Speaker 3: lot of people are wondering what this means specifically for

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Speaker 3: their help debt, because help is obviously an indexed cost,

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Speaker 3: but with the inflation rate rising so rapidly, they're concerned

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Speaker 3: that HEX may not still be the cheapest debt you'll

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Speaker 3: ever have. So there's been a lot of questions in

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Speaker 3: the Facebook group saying, oh my gosh, I pay off

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Speaker 3: all of my help debt right now. Someone posted and

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Speaker 3: said it was going to be more expensive than their

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Speaker 3: mortgage interest rates. There seems to be a whole lot

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Speaker 3: of kerfuffle the So I thought I'd come straight to

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Speaker 3: the horse's mouth.

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Speaker 1: I love that you think I'm the horse's mouth one.

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Speaker 1: I'm not a horse too. I have absolutely nothing to

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Speaker 1: do with the RBA. I'm just a financial advisor who

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Speaker 1: interprets things on the internet in her own very unique way.

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Speaker 3: There are other parts of a horse that I could

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Speaker 3: arguably call you that a much less so rude.

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Speaker 1: Have I done something this week?

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Speaker 3: Is that not a saying? Would you like to go

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Speaker 3: to counseling like a horse's ass? That's a saying? Is

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Speaker 3: it not?

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Speaker 1: Okay? Well I didn't I didn't think that when you

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Speaker 1: called me that. I was just trying to be fun

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Speaker 1: and funny. We're trying to edit a show here and

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Speaker 1: you're just calling me name.

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Speaker 3: That's fine, Sorry, that's fine, that's fine, take it off, fine,

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Speaker 3: all right.

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Speaker 1: So it's definitely not straight from the horse's mouth. I

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Speaker 1: actually identify it as a unicorn. But if we want

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Speaker 1: to talk about it, HEX at the end of the

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Speaker 1: day doesn't have an interest rate on it, but it

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Speaker 1: is indexed by CPI each and every single year. So

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Speaker 1: CBI is a consumer price index, and that's how much

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Speaker 1: the cost of living increases each and every single year.

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Speaker 1: And we know if you've been listening to the news,

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Speaker 1: it has been everywhere because people are honestly scared, and

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Speaker 1: they should be because it is really overwhelming and it

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Speaker 1: can be really detrimental that we have had the highest

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Speaker 1: increase in indexation since two thousand and one.

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Speaker 3: I was going to say in ten years, but that's

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Speaker 3: in twenty years. Oh my lod it is.

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Speaker 1: A long time. But since two thousand and one, and

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Speaker 1: that is five point one percent since January this year

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Speaker 1: till March, so that is actually quite overwhelming. Hopefully it

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Speaker 1: doesn't continue to increase, but economics professionals are saying that

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Speaker 1: it is very set to increase because the cost of

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Speaker 1: living is increasing and they're expecting you to be paying

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Speaker 1: you a dollar more for your coffees in the morning,

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Speaker 1: which all makes sense, and it all comes back to

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Speaker 1: everything we've been through over the last few years and

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Speaker 1: distribution of product, and we could go on and on,

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Speaker 1: but at the end of the day, helpedebt or hextet

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Speaker 1: as somebody who's a little bit of an older millennial

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Speaker 1: refers to it as is indexed in that way. I'd

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Speaker 1: be interested to see how the government actually applies this though,

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Speaker 1: because so many people are going to be bucking at

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Speaker 1: the bit. Is that a good horse analogy? Thank you,

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Speaker 1: thank you, because I'd like to see how much they

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Speaker 1: pass on of that. So a lot of the time

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Speaker 1: they just apply it automatically and you accept it because

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Speaker 1: it might be like one point nine percent or two

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Speaker 1: percent and you just go whatever, like that's flying CPI,

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Speaker 1: no worries. But now it's five point one percent, people like, well,

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Speaker 1: it makes no sense. My strategy was to not pay

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Speaker 1: down HEX, and now I'm going to have to because

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Speaker 1: that five point one percent right now, if that gets

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Speaker 1: applied to my help debt, Jess, that's going to be

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Speaker 1: higher than my mortgage repayments in terms of like cost

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Speaker 1: of how much it's costing me. And I know that

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Speaker 1: we say it has no interest, but at the end

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Speaker 1: of the day, if that's how much my debt is

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Speaker 1: going to increase, even though it is in line with CPI,

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Speaker 1: that's still an increase I'm not willing to swallow. So

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Speaker 1: I don't know how other people are feeling about it,

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Speaker 1: but we will have to wait and see, because if

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Speaker 1: we look at historicals, they have always increase it by CPI. However,

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Speaker 1: I do feel as though the government, especially given its

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Speaker 1: in an election year and we're about to go into

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Speaker 1: an election, are going to announce something to say that

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Speaker 1: potentially there'll be a cap on what gets passed on

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Speaker 1: to HEX.

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Speaker 3: Does that make sense, Yeah, it sure does. And so

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Speaker 3: for a little bit of context, indexation for the twenty

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Speaker 3: twenty one year for HEX help loans annually with zero

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Speaker 3: point six percent, which was the lowest it had been

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Speaker 3: in a very long time. It looks like it's averaging,

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Speaker 3: you know, kind of two and a half to three

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Speaker 3: percent over the last couple of decades. Yep.

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Speaker 1: Literally, it is Australia's worst inflation spike since two thousand

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Speaker 1: and one jes which is when GST was introduced. That

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Speaker 1: makes sense because obviously the costs of goods and services increased.

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Speaker 1: Albeit from my perspective, GST is a goods and services

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Speaker 1: tax which you guys would see, and if anybody has

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Speaker 1: a business that earns over seventy five thousand dollars per annum,

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Speaker 1: that is applied to the product that they sell or

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Speaker 1: the service that they render. So it makes sense because

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Speaker 1: it's obviously costing more. But from B to B, so

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Speaker 1: business to business, if I'm charging HEX, I'm also receiving

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Speaker 1: HEX and you pay that and it's kind of like

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Speaker 1: a left pocket, right pocket. But if you're a general

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Speaker 1: consumer and you're now paying GST on a product, you're

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Speaker 1: not claiming GST each in every single year. You're not

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Speaker 1: a business owner. So in that year products basically cost

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Speaker 1: you ten percent more if the business didn't account for

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Speaker 1: that increase in price.

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Speaker 3: It's kind of like the same concept right where we say,

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Speaker 3: you know, if the cost of living is increasing and

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Speaker 3: your salary isn't, you're losing money effectively. Yeah, so it's

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Speaker 3: the same kind of concept. So it'll be announced on

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Speaker 3: the first of June. The indexation and the estimates or

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Speaker 3: the calculations or the projections or whatever you want to

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Speaker 3: call it, that someone who is a lots better than

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Speaker 3: me has put together are predicting that it will be

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Speaker 3: at around three point nine percent, which is obviously a

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Speaker 3: huge jump, and I can totally see why people are

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Speaker 3: freaking out if that's the case. And if it does

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Speaker 3: jump so significantly, obviously we cannot provide advice, but would

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Speaker 3: people need to be reconsidering their strategy jeez, when it

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Speaker 3: comes to help debt if it does go up so high.

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Speaker 1: I would be, Yeah, I absolutely would be. And the

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Speaker 1: reason I would be is because I just don't want

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Speaker 1: more money looming over my head. In saying that, it

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Speaker 1: would be individual to each and every single person, and obviously,

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Speaker 1: like your situation, Jess, is very different to mine, and

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Speaker 1: whether I pay more or you pay more. It's completely different.

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Speaker 1: But I think the interesting thing there is how banks

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Speaker 1: might account for it. So hex and help debt is

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Speaker 1: one of the only debts that banks look on and

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Speaker 1: just go okay, like, Jess, it's not consumer debt, it's

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Speaker 1: not bad debt. You're not going to be, you know,

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Speaker 1: negatively impacted for this, but it will decrease your serviceability

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Speaker 1: because what happens when you go to the bank is

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Speaker 1: they go, okay, Jess, like, let's sit you down, and

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Speaker 1: you've done this recently. We're obviously real creepy on your

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Speaker 1: property journey watching you.

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Speaker 3: From afar, but also lack not that far.

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Speaker 1: And what happens is you go to the bank and

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Speaker 1: you go, okay, hey, here's my income and here are

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Speaker 1: my expenses. And one of the expenses they take into

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Speaker 1: consideration is your help debt. And because you have to

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Speaker 1: repay that on your basis or you might be repaying

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Speaker 1: it monthly out of your annual salary, they just take

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Speaker 1: that into consideration as a cost. And obviously the more

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Speaker 1: costs you have, the less serviceable alone is. But they're

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Speaker 1: not penalizing you for having that, They're just taking it

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Speaker 1: into consideration into your cash flow. They're not going to go, oh, yes,

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Speaker 1: you have helped itb therefore you're less serviceable. They're actually

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Speaker 1: look at it and go, oh, yes, you have helped it.

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Speaker 1: That means that you know, maybe two hundred bucks a

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Speaker 1: month is going towards paying that off. That means we're

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Speaker 1: not going to consider that two hundred bucks as money

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Speaker 1: that could pay off your mortgage, which makes sense when

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Speaker 1: you allocate it that way. And I think that in

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Speaker 1: our community a lot of people have said, oh my gosh, no,

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Speaker 1: they penalize you and will lend you less, and it's like, well,

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Speaker 1: yes they will, but they're doing that because at the

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Speaker 1: end of the day, you have a debt to repay,

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Speaker 1: and that's a pre tax debt that has to be paid.

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Speaker 1: It's not like a choice. But from my perspective, I'd

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Speaker 1: be interested to see how that changes, because if it

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Speaker 1: increases in cost, I e. It's going to cost me

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Speaker 1: five percent or something ridiculous for having my help debt

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Speaker 1: there and the moment, if I'm not paying off more

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Speaker 1: of that help debt, maybe in the future will prioritize that.

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Speaker 1: But at the same time I might not because it's

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Speaker 1: not consumer debt, and it doesn't have a timeline on

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Speaker 1: how fast you have to pay it back. And I

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Speaker 1: have a whole heap of assets that are performing above

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Speaker 1: and beyond that three to five percent, because we don't

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Speaker 1: know in stone what they might increase it by, but

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Speaker 1: we know that the last quarter has basically been five

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Speaker 1: point one percent. So let's be super dramatic for a

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Speaker 1: hot second. If it increases by that, a lot of

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Speaker 1: other things are going to follow suit. So it won't

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Speaker 1: just be your hextebt. It will be your home loans,

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Speaker 1: it will be your consumer debt loans, it will be borrowing,

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Speaker 1: it will be so many other things. And I think

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Speaker 1: that we would need to look at that in the

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Speaker 1: grand scheme of things as opposed to just looking at

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Speaker 1: it once, right, Because if it's going to cost you more,

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Speaker 1: but like you now have a higher mortgage, it doesn't

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Speaker 1: change your financial goals at all. You might go, well,

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Speaker 1: I am paying more for HEX, but if I pay

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Speaker 1: that off now, I'm not paying off my mortgage, or

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Speaker 1: I'm not putting money aside for that home too I

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Speaker 1: want to save for and therefore I'm pushing that goal

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Speaker 1: off into the future. And a lot of us just

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Speaker 1: want to achieve things now, so I'd be interested to

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Speaker 1: see how it falls. But the most important thing is

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Speaker 1: that you understand how that might impact you, and what

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Speaker 1: that might mean for you, and how that's going to

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Speaker 1: basically impact your cash flow, because at the end of

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Speaker 1: the day, that's what it's going to do, regardless of

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Speaker 1: what your financial goal is.

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Speaker 2: So off the back of that V, we know that

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Speaker 2: the higher your salary, the more HEX you have to

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Speaker 2: be paying back, right yeah, So then from their V,

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Speaker 2: if you do have that larger salary and your boss

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Speaker 2: is like, here's here's some extra for that cost of

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Speaker 2: living increase, then your HEX repayments will go up further,

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Speaker 2: right yes, But then if you're not receiving that and

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Speaker 2: you are on that lower income, then that's a complete

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Speaker 2: headache as well. So how do you manage this no

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Speaker 2: matter your situation? Like it's crazy?

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Speaker 1: So first, let's talk about the compulsory repayment threshold. So

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Speaker 1: you only have to start paying back your HEX step

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Speaker 1: this year in twenty twenty two if your income is

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Speaker 1: more than forty seven thousand and fourteen dollars, and next

435
00:20:05,000 --> 00:20:07,400
Speaker 1: year between the twenty twenty two to twenty twenty three

436
00:20:07,440 --> 00:20:10,480
Speaker 1: financial year that's going to increase to forty eight thousand,

437
00:20:10,560 --> 00:20:13,720
Speaker 1: three hundred and sixty one dollars. So if you're below

438
00:20:13,760 --> 00:20:16,040
Speaker 1: that threshold, you don't have to worry about hex just

439
00:20:16,119 --> 00:20:18,200
Speaker 1: yet because you won't be paying it back unless you're

440
00:20:18,240 --> 00:20:22,840
Speaker 1: doing voluntary contributions. But at the moment, the repayment rates

441
00:20:22,880 --> 00:20:26,320
Speaker 1: are banded, So for example, if you're earning between seventy

442
00:20:26,359 --> 00:20:29,720
Speaker 1: seven thousand and eighty one thousand ish, you're paying back

443
00:20:29,840 --> 00:20:32,840
Speaker 1: five percent, and if you're getting more income, you're going

444
00:20:32,880 --> 00:20:35,760
Speaker 1: to pay back more. But if the inflation rates end

445
00:20:35,880 --> 00:20:39,600
Speaker 1: up being applied directly to your help debt but you

446
00:20:39,680 --> 00:20:43,160
Speaker 1: don't get a salary increase, you won't be paying back more.

447
00:20:43,240 --> 00:20:45,760
Speaker 1: It'll just mean that the money you do pay back

448
00:20:45,800 --> 00:20:48,600
Speaker 1: is going less far. Does that make sense? So you'll

449
00:20:48,600 --> 00:20:51,960
Speaker 1: be paying back quote less percentage of what you owe,

450
00:20:52,240 --> 00:20:54,359
Speaker 1: but the same amount of money will be leaving your

451
00:20:54,359 --> 00:20:57,080
Speaker 1: account each and every single month. Does that make sense?

452
00:20:57,520 --> 00:20:59,919
Speaker 1: So it's going to mess a few people up as

453
00:21:00,040 --> 00:21:03,000
Speaker 1: especially if they get increases, but it won't be as

454
00:21:03,000 --> 00:21:05,200
Speaker 1: significant as I think a lot of people are making

455
00:21:05,200 --> 00:21:07,320
Speaker 1: it out to be. I think we get really stressed

456
00:21:07,359 --> 00:21:10,040
Speaker 1: about it because a lot of us go oh my gosh,

457
00:21:10,040 --> 00:21:12,480
Speaker 1: there's a help debt lauding over me. But at the

458
00:21:12,600 --> 00:21:14,880
Speaker 1: end of the day, it is quite manageable. And there

459
00:21:14,920 --> 00:21:19,000
Speaker 1: are actually percentage repayment rates that exist for bands, and

460
00:21:19,040 --> 00:21:21,320
Speaker 1: you can look them up on the Australian Government Study

461
00:21:21,359 --> 00:21:24,879
Speaker 1: Assist website and they outline it also that there's complete clarity.

462
00:21:25,359 --> 00:21:28,520
Speaker 1: But I think it's more about understanding what your compulsory

463
00:21:28,560 --> 00:21:31,160
Speaker 1: repayments are for your salary band and what that might

464
00:21:31,200 --> 00:21:34,520
Speaker 1: mean if you increase, because the problem I foresee is

465
00:21:34,560 --> 00:21:37,800
Speaker 1: if you increase sages you were on eighty one thousand

466
00:21:37,880 --> 00:21:39,760
Speaker 1: dollars and you were like, great, well I'm only paying

467
00:21:39,800 --> 00:21:43,919
Speaker 1: five percent, but you now are earning eighty two thousand dollars,

468
00:21:43,960 --> 00:21:46,800
Speaker 1: You're now paying five point five percent. I think understanding

469
00:21:46,840 --> 00:21:49,600
Speaker 1: those bands is going to be much more powerful than

470
00:21:49,880 --> 00:21:53,199
Speaker 1: worrying about how much percentage these CPI is going to

471
00:21:53,280 --> 00:21:56,480
Speaker 1: impact your actual HEXTEP. Does that make sense? It's actually

472
00:21:56,520 --> 00:21:58,920
Speaker 1: about what's going to leave your bank account and.

473
00:21:58,920 --> 00:22:00,679
Speaker 3: So to people maybe need to be looking at their

474
00:22:00,680 --> 00:22:03,439
Speaker 3: budgets now and going okay, potentially I'm going to be

475
00:22:03,440 --> 00:22:05,680
Speaker 3: taking home less because more is going to be allocated

476
00:22:05,720 --> 00:22:08,400
Speaker 3: to my hex repayment, So just being aware of maybe

477
00:22:08,400 --> 00:22:10,080
Speaker 3: where that wig or room is and if there are

478
00:22:10,160 --> 00:22:12,280
Speaker 3: things that should you need to cut back, you can

479
00:22:12,800 --> 00:22:15,480
Speaker 3: don't panic. We obviously can't really do too much until

480
00:22:15,520 --> 00:22:18,200
Speaker 3: those rates are officially announced, but I think it's really

481
00:22:18,240 --> 00:22:20,000
Speaker 3: great to see that so many people in our community

482
00:22:20,040 --> 00:22:22,159
Speaker 3: are aware of this change and how it's going to

483
00:22:22,200 --> 00:22:24,680
Speaker 3: impact them and impact their hex or their help. Sorry

484
00:22:24,680 --> 00:22:27,119
Speaker 3: I'm showing my age and knowing that that might have

485
00:22:27,200 --> 00:22:29,440
Speaker 3: a flow and effect to other parts of their cash

486
00:22:29,480 --> 00:22:30,800
Speaker 3: flow and their budget as well.

487
00:22:30,960 --> 00:22:33,320
Speaker 1: Absolutely agreed, And I think the other thing to take

488
00:22:33,359 --> 00:22:37,239
Speaker 1: into consideration is if you are struggling financially, you can

489
00:22:37,280 --> 00:22:41,240
Speaker 1: actually contact the ATO and have your compulsory repayments deferred

490
00:22:41,400 --> 00:22:44,199
Speaker 1: if you need that. So I don't want anyone to

491
00:22:44,240 --> 00:22:47,560
Speaker 1: feel like they are, you know, up up the proverbial

492
00:22:47,640 --> 00:22:51,040
Speaker 1: creek without a paddle. But from my perspective, it's really

493
00:22:51,040 --> 00:22:53,119
Speaker 1: important to just be super aware of your budget and

494
00:22:53,119 --> 00:22:55,919
Speaker 1: what that means and how that works, because talking to

495
00:22:56,000 --> 00:22:58,520
Speaker 1: the ATO is going to be arguably a bit more

496
00:22:58,560 --> 00:23:02,960
Speaker 1: powerful and pretend deferring a payment might actually take a

497
00:23:02,960 --> 00:23:05,480
Speaker 1: little bit of pressure off. So I think it's important

498
00:23:05,520 --> 00:23:07,879
Speaker 1: that you guys actually understand your rights and what you

499
00:23:07,920 --> 00:23:11,000
Speaker 1: can do, and if you're really stressed and overwhelmed, you

500
00:23:11,040 --> 00:23:12,280
Speaker 1: can always reach out for help.

501
00:23:12,720 --> 00:23:15,959
Speaker 2: Super convenient. Here, ladies, that this whole chat has been

502
00:23:15,960 --> 00:23:19,840
Speaker 2: about inflation, because that ties perfectly to this week's listener question.

503
00:23:20,119 --> 00:23:22,280
Speaker 1: Don't spoil it. I'm going to intro it this week

504
00:23:22,320 --> 00:23:25,080
Speaker 1: because gee, you're in a cupboard and your audio equality

505
00:23:25,200 --> 00:23:28,159
Speaker 1: is absolutely terrible. It's literally like she's in a cupboard

506
00:23:28,240 --> 00:23:31,600
Speaker 1: or something, Jess. But it is Friday, guys, which means

507
00:23:31,640 --> 00:23:34,480
Speaker 1: that it is time to answer your most burning finance,

508
00:23:34,560 --> 00:23:37,399
Speaker 1: career and life questions. If you need help untangling a

509
00:23:37,480 --> 00:23:39,919
Speaker 1: knotty dilemma, no matter how big or small, you can

510
00:23:39,960 --> 00:23:42,280
Speaker 1: send us a voice note directly through our website. We

511
00:23:42,359 --> 00:23:45,240
Speaker 1: have a built in voicemail on our website now, so

512
00:23:45,359 --> 00:23:47,919
Speaker 1: you can literally leave voice messages. You don't have to

513
00:23:48,040 --> 00:23:50,280
Speaker 1: just leave, you know, money questions and dilemmas. You can

514
00:23:50,280 --> 00:23:52,560
Speaker 1: always leave messages of encouragement if you think we're having

515
00:23:52,600 --> 00:23:54,600
Speaker 1: a bad week. You can also tell us how pretty

516
00:23:54,640 --> 00:23:57,760
Speaker 1: Jessus hair is. Honestly, you can tell us whatever you want,

517
00:23:58,160 --> 00:23:59,959
Speaker 1: so send us a voice note. Jump on the sh

518
00:24:00,080 --> 00:24:02,240
Speaker 1: She's on the money website and click the button that says,

519
00:24:02,359 --> 00:24:04,480
Speaker 1: ask us a question and we will help you find

520
00:24:04,480 --> 00:24:07,000
Speaker 1: the answer that you have been searching for. Now, let's

521
00:24:07,000 --> 00:24:10,960
Speaker 1: pressplay on today's money dilemma. Hi, girls, I was just wondering,

522
00:24:11,080 --> 00:24:14,360
Speaker 1: if the RBA increases the interest rate, does that mean

523
00:24:14,440 --> 00:24:17,359
Speaker 1: that my bank account will automatically have a higher interest

524
00:24:17,440 --> 00:24:20,600
Speaker 1: rate or is that not how it works? Thanks, long

525
00:24:20,680 --> 00:24:23,480
Speaker 1: story short to this, the answer is yes and no.

526
00:24:23,760 --> 00:24:28,560
Speaker 1: So no, because when the RBA increases its interest rate,

527
00:24:28,640 --> 00:24:32,320
Speaker 1: the banks are actually under no obligation to immediately increase

528
00:24:32,400 --> 00:24:35,400
Speaker 1: that and that's what we saw quite recently when they

529
00:24:35,440 --> 00:24:38,760
Speaker 1: didn't pass on the recent RBA increase to mortgages and

530
00:24:38,800 --> 00:24:41,320
Speaker 1: stuff like that. They just left it at the status quo.

531
00:24:41,720 --> 00:24:45,120
Speaker 1: So it's actually at the bank's discretion to make that decision,

532
00:24:45,119 --> 00:24:47,199
Speaker 1: and whether they increase it by the full amount or

533
00:24:47,200 --> 00:24:49,840
Speaker 1: a percentage is completely up to them, and I'm sure

534
00:24:49,880 --> 00:24:52,560
Speaker 1: they have all of these analysts working in the background

535
00:24:52,600 --> 00:24:55,520
Speaker 1: working out the impact of increasing the mortgage rates, and

536
00:24:55,720 --> 00:24:59,280
Speaker 1: it's important for them to take that into consideration regardless

537
00:24:59,280 --> 00:25:01,159
Speaker 1: of what the cost of money is. So when the

538
00:25:01,280 --> 00:25:04,879
Speaker 1: RBA increases the interest rate, it means they're increasing the

539
00:25:04,880 --> 00:25:07,119
Speaker 1: amount it's going to cost the bank to borrow the

540
00:25:07,160 --> 00:25:10,119
Speaker 1: money to lend to you, So they usually would pass

541
00:25:10,200 --> 00:25:13,440
Speaker 1: that on. But have a think about how many mortgages

542
00:25:13,520 --> 00:25:16,200
Speaker 1: exist and how many people have been through hardship over

543
00:25:16,200 --> 00:25:19,160
Speaker 1: the last two to three years given COVID, and how

544
00:25:19,160 --> 00:25:21,760
Speaker 1: many people might be, you know, still scraping through and

545
00:25:21,840 --> 00:25:24,560
Speaker 1: only able to just make the bare minimum repayments on

546
00:25:24,560 --> 00:25:28,040
Speaker 1: their mortgage. If their interest rate increases, they might end

547
00:25:28,119 --> 00:25:30,560
Speaker 1: up in a bit of a pickle and have to sell. Therefore,

548
00:25:30,600 --> 00:25:33,239
Speaker 1: the bank then loses the mortgage that they had, So

549
00:25:33,280 --> 00:25:35,160
Speaker 1: they need to weigh up the pros and cons of

550
00:25:35,400 --> 00:25:38,399
Speaker 1: whether they actually pass that percentage rate onto you or

551
00:25:38,440 --> 00:25:41,400
Speaker 1: pass a little bit of it, not the whole amount,

552
00:25:41,680 --> 00:25:44,320
Speaker 1: But they need to work it out at the same time.

553
00:25:44,520 --> 00:25:47,359
Speaker 1: As a business, if something is costing you more, you

554
00:25:47,520 --> 00:25:50,200
Speaker 1: need to be able to pass that cost onto a consumer.

555
00:25:50,480 --> 00:25:53,119
Speaker 1: And I don't want to disteal it down. It's quite complex,

556
00:25:53,200 --> 00:25:55,240
Speaker 1: but say there's a cost of a cup of coffee.

557
00:25:55,320 --> 00:25:56,760
Speaker 1: Jess and I go out and I buy my oat

558
00:25:56,840 --> 00:25:59,280
Speaker 1: latte and at my local cafe, I think it's like

559
00:25:59,320 --> 00:26:02,640
Speaker 1: four dollars eighty for my local oat laste, which is great,

560
00:26:02,760 --> 00:26:05,360
Speaker 1: but imagine if oat milk increased in price and it's

561
00:26:05,400 --> 00:26:08,439
Speaker 1: now costing the cafe far more money to give me that,

562
00:26:08,720 --> 00:26:11,640
Speaker 1: and they're no longer breaking even when I pay four

563
00:26:11,680 --> 00:26:15,040
Speaker 1: dollars eighty for my coffee, they genuinely need to pass

564
00:26:15,119 --> 00:26:18,560
Speaker 1: that on to remain a stable and good and profitable business.

565
00:26:18,760 --> 00:26:21,080
Speaker 1: So therefore my coffee is now going to cost five

566
00:26:21,119 --> 00:26:23,680
Speaker 1: dollars fifty instead of four dollars eighty, and it costs

567
00:26:23,720 --> 00:26:27,159
Speaker 1: me more, but it means that the cafe or in

568
00:26:27,200 --> 00:26:30,280
Speaker 1: this instance, the bank, can keep moving and grinding and

569
00:26:30,400 --> 00:26:33,280
Speaker 1: keeping up with everybody else, So it makes sense that

570
00:26:33,320 --> 00:26:33,840
Speaker 1: they would.

571
00:26:33,680 --> 00:26:34,159
Speaker 3: Pass it on.

572
00:26:34,520 --> 00:26:37,760
Speaker 1: From my predictions, I would assume that they would actually

573
00:26:37,760 --> 00:26:41,280
Speaker 1: have a bit more now surround passing on the full increase,

574
00:26:41,640 --> 00:26:43,720
Speaker 1: because it just doesn't make a lot of sense to

575
00:26:43,880 --> 00:26:47,119
Speaker 1: throw a whole heap of people into financial hardship. In

576
00:26:47,240 --> 00:26:52,119
Speaker 1: saying that inflation has always increased around wars because of

577
00:26:52,240 --> 00:26:54,560
Speaker 1: you know, animosity and people not being sure of what's

578
00:26:54,600 --> 00:26:59,240
Speaker 1: going on, and the cost of general transport and everything increasing.

579
00:27:00,000 --> 00:27:02,879
Speaker 1: Wouldn't be surprised if it does increase, But I'm waiting

580
00:27:02,920 --> 00:27:05,080
Speaker 1: to see what type of support the government's going to

581
00:27:05,119 --> 00:27:08,800
Speaker 1: come out with I genuinely cannot see how that much

582
00:27:08,840 --> 00:27:11,679
Speaker 1: of an increase will be passed directly onto consumers.

583
00:27:12,080 --> 00:27:14,879
Speaker 3: So if they're trying to keep mortgages low for people

584
00:27:14,920 --> 00:27:16,359
Speaker 3: so that they can afford them, does that mean that

585
00:27:16,359 --> 00:27:19,520
Speaker 3: they're also likely to keep interest rates on savings account

586
00:27:19,520 --> 00:27:22,080
Speaker 3: slow because, as you were saying, they've got a break

587
00:27:22,119 --> 00:27:22,720
Speaker 3: even somehow.

588
00:27:22,800 --> 00:27:27,240
Speaker 1: Yeah. Absolutely, In fact, this increase means that savings is

589
00:27:27,359 --> 00:27:30,359
Speaker 1: going to go even further backwards. So I wouldn't expect

590
00:27:30,400 --> 00:27:32,520
Speaker 1: an increase in what you're going to be paid to

591
00:27:32,600 --> 00:27:36,400
Speaker 1: have a savings account open to increase at all. I'm

592
00:27:36,560 --> 00:27:39,080
Speaker 1: concerned about mortgages, but at the same time, I think

593
00:27:39,119 --> 00:27:41,960
Speaker 1: we just have to wait and see what that actually means,

594
00:27:42,000 --> 00:27:44,800
Speaker 1: because this is the biggest annual inflation rate that we've

595
00:27:44,840 --> 00:27:48,199
Speaker 1: had for twenty years since UST was introduced, and it

596
00:27:48,240 --> 00:27:51,320
Speaker 1: can be overwhelming and it can be really scary. But

597
00:27:52,160 --> 00:27:54,120
Speaker 1: if you went through a mortgage broke out, or even

598
00:27:54,160 --> 00:27:56,360
Speaker 1: if you just went to the bank directly to get

599
00:27:56,400 --> 00:28:00,199
Speaker 1: a mortgage, they wouldn't have assessed your mortgage at two

600
00:28:00,280 --> 00:28:02,480
Speaker 1: percent or whatever you're paying right now. They would have

601
00:28:02,480 --> 00:28:05,600
Speaker 1: actually assessed your cash flow at five or seven percent.

602
00:28:05,680 --> 00:28:09,160
Speaker 1: If you recently had your mortgage refinance, depending on how

603
00:28:09,200 --> 00:28:12,919
Speaker 1: long ago that happened, and that means that you technically

604
00:28:13,000 --> 00:28:16,480
Speaker 1: should be okay and not in any financial hardship to

605
00:28:16,600 --> 00:28:19,560
Speaker 1: service that mortgage because we did the cash flows we

606
00:28:19,720 --> 00:28:21,760
Speaker 1: organized it. The bank was like, do you know what

607
00:28:21,760 --> 00:28:24,640
Speaker 1: what happens if the interest rate increases? Will just still

608
00:28:24,720 --> 00:28:27,320
Speaker 1: be able to pay her mortgage? Because they don't actually

609
00:28:27,359 --> 00:28:29,600
Speaker 1: want to put themselves at risk that if the interest

610
00:28:29,680 --> 00:28:32,520
Speaker 1: rate increases then they lose you as a customer. They

611
00:28:32,560 --> 00:28:35,159
Speaker 1: need to assess you as being able to pay the

612
00:28:35,240 --> 00:28:38,000
Speaker 1: highest possible amount that they predict is going to happen,

613
00:28:38,360 --> 00:28:40,800
Speaker 1: and then they take you back down to two percent

614
00:28:40,880 --> 00:28:42,960
Speaker 1: and actually give you a mortgage that you're able to

615
00:28:43,080 --> 00:28:46,240
Speaker 1: comfortably service. So I'm hoping that that's the case for

616
00:28:46,320 --> 00:28:49,440
Speaker 1: most people, But I would be really interested to see

617
00:28:49,440 --> 00:28:52,200
Speaker 1: how this pans out, because there's a lot going on

618
00:28:52,240 --> 00:28:54,440
Speaker 1: in the world at the moment post COVID, We've got

619
00:28:54,440 --> 00:28:56,719
Speaker 1: a war going on. We don't know what the future

620
00:28:56,760 --> 00:28:59,960
Speaker 1: looks like, but this is all played into the increasing

621
00:29:00,040 --> 00:29:00,680
Speaker 1: interest rate.

622
00:29:01,120 --> 00:29:04,400
Speaker 2: So this is maybe a strange question, but from what

623
00:29:04,520 --> 00:29:06,920
Speaker 2: I can garner, it seems like at the moment it

624
00:29:07,000 --> 00:29:10,400
Speaker 2: is a really tough time to be I mean, obviously

625
00:29:10,400 --> 00:29:13,040
Speaker 2: we're extremely privileged, but it's a very expensive time to

626
00:29:13,040 --> 00:29:16,440
Speaker 2: be living in Australia. What does it look like overseas

627
00:29:16,440 --> 00:29:18,080
Speaker 2: at the moment in terms of costs of living? Have

628
00:29:18,120 --> 00:29:20,200
Speaker 2: you guys got any numbers for me?

629
00:29:20,560 --> 00:29:23,080
Speaker 3: So I've got inflation rates in a couple of other countries.

630
00:29:23,120 --> 00:29:25,000
Speaker 3: General consensus is we're kind of sitting in the middle.

631
00:29:25,000 --> 00:29:26,880
Speaker 3: We're not the best, We're not the worst, you know,

632
00:29:27,000 --> 00:29:29,719
Speaker 3: happy medium, maybe like fifth or sixth place if you're

633
00:29:29,760 --> 00:29:31,880
Speaker 3: running a relay with ten people. So a couple of

634
00:29:31,920 --> 00:29:33,640
Speaker 3: other countries that you might want to compare us to,

635
00:29:34,160 --> 00:29:36,240
Speaker 3: And if you are interested in seeing this in text form,

636
00:29:36,280 --> 00:29:38,600
Speaker 3: check at our Instagram because we popped this up this week.

637
00:29:38,960 --> 00:29:42,280
Speaker 3: Spain's current inflation rate is nine point eight percent wild

638
00:29:42,360 --> 00:29:46,120
Speaker 3: the US is eight point five, the UK is seven.

639
00:29:47,040 --> 00:29:49,160
Speaker 3: Our friends across the ditch in New Zealand are at

640
00:29:49,240 --> 00:29:52,560
Speaker 3: six point nine. Sweden, where everyone seems to want to

641
00:29:52,600 --> 00:29:54,720
Speaker 3: be living, is six, and then obviously we come in

642
00:29:54,760 --> 00:29:55,600
Speaker 3: at five point one.

643
00:29:55,760 --> 00:29:58,680
Speaker 1: So we're not that badly off, especially when we compare

644
00:29:58,680 --> 00:30:01,920
Speaker 1: ourselves to the U and to New Zealand. I feel

645
00:30:01,960 --> 00:30:04,760
Speaker 1: like those are the two locations that I would go,

646
00:30:05,040 --> 00:30:08,200
Speaker 1: you know, pragmatically, oh wow, it's worse off there. But

647
00:30:08,280 --> 00:30:11,000
Speaker 1: it's interesting as well because we're coming into an election

648
00:30:11,160 --> 00:30:14,400
Speaker 1: year and the RBA is kind of laying low because

649
00:30:14,400 --> 00:30:16,680
Speaker 1: they don't want to scare us, but they have officially

650
00:30:16,720 --> 00:30:18,920
Speaker 1: come out recently, and I think that that's why the

651
00:30:19,000 --> 00:30:21,000
Speaker 1: media is picking up on it. So they've said that

652
00:30:21,040 --> 00:30:24,000
Speaker 1: the COVID stimulus will be dialed back. So I think

653
00:30:24,000 --> 00:30:26,200
Speaker 1: that that sent a few people into a spin because

654
00:30:26,240 --> 00:30:29,200
Speaker 1: obviously we've had, you know, some smooth coasting when it

655
00:30:29,200 --> 00:30:31,920
Speaker 1: comes to interest rates, but at the same time, we

656
00:30:32,040 --> 00:30:34,480
Speaker 1: need to keep up with what's going on in the world,

657
00:30:34,480 --> 00:30:36,560
Speaker 1: and we can only live in a bubble of having

658
00:30:36,720 --> 00:30:39,360
Speaker 1: very low inflation for a very long period of time

659
00:30:39,600 --> 00:30:41,640
Speaker 1: because look at what's going on around the world, it's

660
00:30:41,760 --> 00:30:45,120
Speaker 1: so much higher. And that's just the outcome of the

661
00:30:45,160 --> 00:30:47,280
Speaker 1: world that we live in. And I know that that's

662
00:30:47,320 --> 00:30:48,800
Speaker 1: not what people want to hear, and they want to

663
00:30:48,800 --> 00:30:51,400
Speaker 1: hear some hack to avoid it and what that means.

664
00:30:51,400 --> 00:30:54,200
Speaker 1: But I think it's just about really understanding that. I

665
00:30:54,240 --> 00:30:55,680
Speaker 1: think that a lot of us are going to have

666
00:30:55,720 --> 00:30:58,720
Speaker 1: to have some hard conversations because you know, as a

667
00:30:58,720 --> 00:31:01,280
Speaker 1: small business, I'm going to have to review that and

668
00:31:01,320 --> 00:31:04,200
Speaker 1: make sure that my employees are looked after in line

669
00:31:04,600 --> 00:31:07,240
Speaker 1: with what the increased cost of living is, because I

670
00:31:07,240 --> 00:31:09,520
Speaker 1: don't think it's fair on new jests that I pay

671
00:31:09,560 --> 00:31:11,959
Speaker 1: you the same I did last year, but stuff's costing

672
00:31:12,000 --> 00:31:14,640
Speaker 1: you more. Therefore your lifestyle is suffering. It doesn't make

673
00:31:14,640 --> 00:31:16,920
Speaker 1: any sense to me. But I mean, you work for

674
00:31:16,960 --> 00:31:18,959
Speaker 1: shees on the money, so you would expect me to

675
00:31:18,960 --> 00:31:20,920
Speaker 1: be on top of that. But if you work for

676
00:31:20,960 --> 00:31:24,000
Speaker 1: a small to medium sized business, it's very likely that

677
00:31:24,040 --> 00:31:27,880
Speaker 1: they're not having these conversations because they're not increasing their

678
00:31:27,880 --> 00:31:31,080
Speaker 1: revenue and they're going to have to increase salaries. So

679
00:31:31,160 --> 00:31:32,520
Speaker 1: I think that a lot of us are going to

680
00:31:32,560 --> 00:31:34,720
Speaker 1: have to say, all right, well I need to talk

681
00:31:34,720 --> 00:31:37,400
Speaker 1: to my boss because I do need a raise. I

682
00:31:37,440 --> 00:31:39,640
Speaker 1: do need to have this conversation, and I am worthy

683
00:31:39,680 --> 00:31:42,920
Speaker 1: and I definitely deserve this. It's not a I'm doing

684
00:31:42,920 --> 00:31:45,560
Speaker 1: more work and I need to be remunerated. It's like, well, actually,

685
00:31:45,760 --> 00:31:49,280
Speaker 1: can you at least do it in line with CPI cheers, mate, Like, yes,

686
00:31:49,520 --> 00:31:52,600
Speaker 1: things are more expensive, Yes it sucks, but what can

687
00:31:52,640 --> 00:31:56,320
Speaker 1: we do personally to put ourselves in the driver's seat

688
00:31:56,480 --> 00:31:58,320
Speaker 1: as opposed to sitting at the back of the bus.

689
00:31:58,480 --> 00:32:00,840
Speaker 3: I love that. I know it's a tough conversation to have,

690
00:32:01,000 --> 00:32:03,520
Speaker 3: but you don't want to keep suffering at the hands

691
00:32:03,520 --> 00:32:06,080
Speaker 3: of something that's really got nothing to do with you, right, yeah, Like,

692
00:32:06,120 --> 00:32:06,680
Speaker 3: how do we.

693
00:32:06,960 --> 00:32:09,680
Speaker 1: Shift this mentality of like, oh my gosh, I can't

694
00:32:09,680 --> 00:32:12,040
Speaker 1: believe this is happening to us to how do we

695
00:32:12,120 --> 00:32:14,720
Speaker 1: make the most of this situation? And if that means

696
00:32:14,720 --> 00:32:17,280
Speaker 1: that you sit down with your boss and negotiate a

697
00:32:17,360 --> 00:32:21,000
Speaker 1: higher salary to make sure that you are accounting for this, Like,

698
00:32:21,040 --> 00:32:23,360
Speaker 1: we're not just negotiating a higher salary so that you've

699
00:32:23,360 --> 00:32:26,000
Speaker 1: got more money to save. Yes, we're negotiating a higher

700
00:32:26,040 --> 00:32:27,920
Speaker 1: salary so that you can keep up with the increase

701
00:32:27,920 --> 00:32:30,680
Speaker 1: in lifestyle costs that you're going to experience without having

702
00:32:30,720 --> 00:32:34,640
Speaker 1: any choice. Like, this isn't asking for you know, something

703
00:32:34,640 --> 00:32:36,920
Speaker 1: above and beyond. You're asking for the bare minimum from

704
00:32:37,000 --> 00:32:39,600
Speaker 1: your employer. I would like to be able to maintain

705
00:32:39,680 --> 00:32:41,920
Speaker 1: my lifestyle in the same way I have last year.

706
00:32:42,400 --> 00:32:45,120
Speaker 1: Like that makes sense, right, just seems fair. It just

707
00:32:45,160 --> 00:32:47,760
Speaker 1: seems fair. So I think that we really need to

708
00:32:47,880 --> 00:32:49,760
Speaker 1: take back the power in that way and go you

709
00:32:49,760 --> 00:32:51,400
Speaker 1: know what what am I going to do to make

710
00:32:51,440 --> 00:32:53,880
Speaker 1: sure this works? And we also need to have some

711
00:32:54,040 --> 00:32:55,960
Speaker 1: level of sympathy if you are working through a really

712
00:32:56,000 --> 00:32:59,280
Speaker 1: small business whose margins aren't increasing. I think having those

713
00:32:59,320 --> 00:33:01,880
Speaker 1: conversations around what you can do and how that might

714
00:33:02,000 --> 00:33:05,240
Speaker 1: work for you is definitely worthy of having because I

715
00:33:05,320 --> 00:33:07,320
Speaker 1: know that small business owners are going to be listening

716
00:33:07,320 --> 00:33:09,360
Speaker 1: to this and they're like, Victoria, don't promote my staff

717
00:33:09,400 --> 00:33:11,840
Speaker 1: to ask this, Like I can't afford it. Everything is

718
00:33:11,840 --> 00:33:13,320
Speaker 1: the bare mi in a moment the moment like I

719
00:33:13,360 --> 00:33:15,480
Speaker 1: have no profit, I have no this or that. Like

720
00:33:15,600 --> 00:33:17,680
Speaker 1: I get it. But at the same time, what can

721
00:33:17,720 --> 00:33:21,160
Speaker 1: you negotiate with your employees to make sure that they're

722
00:33:21,160 --> 00:33:24,080
Speaker 1: in the best possible position, Because if it's not cash,

723
00:33:24,080 --> 00:33:26,840
Speaker 1: it could be time, it could be more holiday time,

724
00:33:26,920 --> 00:33:29,440
Speaker 1: it could be you know, other benefits and other things

725
00:33:29,480 --> 00:33:32,400
Speaker 1: that come into play that mean that they feel value.

726
00:33:32,440 --> 00:33:34,640
Speaker 1: Don't you think that that's the most important thing here?

727
00:33:34,960 --> 00:33:37,040
Speaker 3: So can you work from home to save money on

728
00:33:37,120 --> 00:33:39,560
Speaker 3: petrol because petrol so expensive and paying for parking?

729
00:33:39,680 --> 00:33:42,080
Speaker 1: Can your employer pay for some of your parking? Can

730
00:33:42,120 --> 00:33:45,120
Speaker 1: your employer do something that takes the pressure off, like

731
00:33:45,480 --> 00:33:48,400
Speaker 1: if they have corporate spots. Can you be allocated one

732
00:33:48,400 --> 00:33:51,560
Speaker 1: of them? If you know, again you said it before,

733
00:33:51,640 --> 00:33:54,080
Speaker 1: can you work from home or regularly? That's basically what

734
00:33:54,160 --> 00:33:56,560
Speaker 1: everybody wants coming out of the pandemic. But like, I mean,

735
00:33:56,640 --> 00:33:58,800
Speaker 1: let's blame the interest rates for wanting to work from

736
00:33:58,800 --> 00:34:02,160
Speaker 1: home as well. Think it's about flexibility and what does

737
00:34:02,200 --> 00:34:05,200
Speaker 1: that actually mean? Maybe, And I've got a girlfriend who

738
00:34:05,240 --> 00:34:07,880
Speaker 1: did this recently where her employer said no to a

739
00:34:08,000 --> 00:34:10,160
Speaker 1: raise and she clapped back and was like, no problems.

740
00:34:10,200 --> 00:34:11,960
Speaker 1: I was just wondering, can I only work four days

741
00:34:12,000 --> 00:34:12,279
Speaker 1: a week?

742
00:34:12,680 --> 00:34:13,120
Speaker 3: Genius?

743
00:34:13,200 --> 00:34:15,680
Speaker 1: And she did and they approved it because they were like, well,

744
00:34:15,680 --> 00:34:17,480
Speaker 1: we didn't have budget, but like, yeah, if you want

745
00:34:17,480 --> 00:34:19,719
Speaker 1: to work four days a week, like she's just gotten

746
00:34:19,760 --> 00:34:22,360
Speaker 1: a whole day a week back. Yeah, that means that

747
00:34:22,400 --> 00:34:24,600
Speaker 1: she can allocate it towards something else that's going to

748
00:34:24,680 --> 00:34:26,640
Speaker 1: make her happy. And she's not going and doing a

749
00:34:26,680 --> 00:34:29,240
Speaker 1: side hustle or another job or anything in that time.

750
00:34:29,680 --> 00:34:32,200
Speaker 1: She's literally just using it to have the lifestyle she

751
00:34:32,280 --> 00:34:34,120
Speaker 1: wanted to achieve. So I think it's about being a

752
00:34:34,120 --> 00:34:37,160
Speaker 1: bit creative, like do you talk to your employer about that?

753
00:34:37,680 --> 00:34:39,440
Speaker 1: Or even if you don't want a whole day. Do

754
00:34:39,440 --> 00:34:41,759
Speaker 1: you just go, hey, you don't have to pay me more,

755
00:34:41,800 --> 00:34:43,759
Speaker 1: but can I just not come in till ten every day?

756
00:34:44,000 --> 00:34:46,640
Speaker 3: Yeah? Like there's a whole range. I feel like there are.

757
00:34:46,640 --> 00:34:49,319
Speaker 1: So many things that you can do and you can

758
00:34:49,480 --> 00:34:52,480
Speaker 1: you know, have as a part of your contract that

759
00:34:52,640 --> 00:34:54,160
Speaker 1: so many people aren't pretty too.

760
00:34:54,400 --> 00:34:57,480
Speaker 3: Yeah, and that will hopefully ease that financial burden the

761
00:34:57,520 --> 00:34:59,239
Speaker 3: world kind of feeling a little bit right now.

762
00:34:59,440 --> 00:35:02,080
Speaker 1: Exactly all right, Well, I think that that is it

763
00:35:02,200 --> 00:35:05,000
Speaker 1: from Victoria's rants, and I just want to pick people

764
00:35:05,080 --> 00:35:06,600
Speaker 1: up and be like, no, you can do it too.

765
00:35:06,800 --> 00:35:09,160
Speaker 1: It's okay. But I think that is all we have

766
00:35:09,280 --> 00:35:12,080
Speaker 1: time for today. So all right, George, back over to

767
00:35:12,120 --> 00:35:14,280
Speaker 1: you in your small Harry Potter cupboard.

768
00:35:14,480 --> 00:35:16,719
Speaker 2: Okay, guys, have the advice shared on She's on the

769
00:35:16,719 --> 00:35:19,759
Speaker 2: Money is general in nature and does not consider your

770
00:35:19,800 --> 00:35:24,000
Speaker 2: individual circumstances. She's on the Money exists purely for educational

771
00:35:24,040 --> 00:35:26,440
Speaker 2: purposes and should not be relied upon to make an

772
00:35:26,440 --> 00:35:30,880
Speaker 2: investment or a financial decision. And we promise Victoria divine

773
00:35:30,920 --> 00:35:33,719
Speaker 2: and She's on the Money is an authorized representative of

774
00:35:33,800 --> 00:35:38,319
Speaker 2: in Focused Securities Australia Propriety Limited ABN four seven zero

775
00:35:38,440 --> 00:35:42,120
Speaker 2: nine seven seven nine seven zero four nine afocl two

776
00:35:42,120 --> 00:35:43,520
Speaker 2: three six five two three.

777
00:35:43,640 --> 00:35:48,120
Speaker 1: See you next week, guys, ye hye guys,