Speaker 1: Just before we get started, we'd like to acknowledge and
Speaker 1: pay respect to Australia's Aboriginal and torrest Rate islander peoples.
Speaker 1: They're the traditional custodians of the lands, the waterways and
Speaker 1: the skies all across Australia. We thank you for sharing
Speaker 1: and for caring for the land on which we are
Speaker 1: able to learn. We pay respects to elders past and present,
Speaker 1: and we share our friendship and our kindness. She's on
Speaker 1: the Money, She's on the Money. Hello, and welcome to
Speaker 1: She's on the Money, the podcast for millennials who want
Speaker 1: financial freedom. Welcome back to another one of our Friday
Speaker 1: Drinks episodes, arguably our favorite episode of the week, where
Speaker 1: we get to celebrate the money wins from the She's
Speaker 1: on the Money community. There are always so many great
Speaker 1: money wins and confessions that are shared in our Facebook
Speaker 1: group each and every single week. And we've told you
Speaker 1: a million times before, and I'll continue to tell you
Speaker 1: how much we talk about you in the office when
Speaker 1: you're not around. So given we do all of that,
Speaker 1: we only feel it is right to share that information
Speaker 1: with you and recap the week and have a chat
Speaker 1: about some finance topics and I cannot wait to get
Speaker 1: here because this week, Jess, you have some juicy afterpay information,
Speaker 1: so definitely stick on around for the end of the
Speaker 1: episode to get to that. But before we get there,
Speaker 1: Jesse Gridici Monday Saucy Monday is our money Diary episode.
Speaker 1: What happened it sure is we chatted to a lovely
Speaker 1: person who works as a diesel mechanic, which is obviously
Speaker 1: a super male dominated industry, and she talked us through
Speaker 1: her experience, like that she makes great money because it's
Speaker 1: obviously a skilled job, but that does mean that she
Speaker 1: has to compete with certain other things and that's why
Speaker 1: it's so high paid. So with no degree, she went
Speaker 1: out she got herself this is an incredible job that
Speaker 1: plays incredibly well and is working towards her financial goals,
Speaker 1: which is awesome but also really cool to you from
Speaker 1: someone who does something a little bit different. I felt
Speaker 1: like she was just so cool and every time we
Speaker 1: brought up a new question should just be like, yeah,
Speaker 1: wrapping it, I'm a diesel mechanic, and I'd be like,
Speaker 1: you're a sick oh, I love you in cred was like,
Speaker 1: that's definitely not the right way to cool. So I'm
Speaker 1: just outing myself as the not cool sibling growing up.
Speaker 1: Gee King, Hello, you were friends with my very cool
Speaker 1: sibling growing up. Cool lady, she's much cooler than me.
Speaker 1: Don't tell yourself. Shot, thank you, thank you. What happened
Speaker 1: on our Wednesday deep dive there?
Speaker 2: So this week on the show, we spoke about budgeting
Speaker 2: for charity and philanthropy. It's something that comes up in
Speaker 2: the Facebook group time and time again, and we haven't
Speaker 2: really touched on it. For some people, I guess it
Speaker 2: might be perceived as like a bit of a luxury.
Speaker 2: If you've got a bit of extra cash, you can
Speaker 2: put it towards something that means a lot to you.
Speaker 2: And obviously as well, like this year, there's been so
Speaker 2: much tragedy all around the world.
Speaker 1: We've had the floods, we've.
Speaker 2: Had everything going on in Ukraine, so it's interesting to
Speaker 2: hear the ways that we can help and the implications
Speaker 2: of that from like a tax perspective and so on
Speaker 2: and so forth. It was a really helpful episode. Oh,
Speaker 2: I'm glad you liked it.
Speaker 1: I felt like it could have been a bit of
Speaker 1: a dry one, because finance can sometimes be dry. But
Speaker 1: the big takeaway I felt I wanted everybody to get
Speaker 1: out of that episode. And if you didn't get it,
Speaker 1: I'm telling you now is that it is a privilege
Speaker 1: to be able to, you know, donate to charity and
Speaker 1: give money away. And I don't want anyone in a
Speaker 1: financial position where they're like, oh, I now feel so
Speaker 1: much pressure to give money away when I don't even
Speaker 1: have enough to put food on the table, Like, no,
Speaker 1: you do you You put your own oxygen mask on first,
Speaker 1: And if you have the ability to help others, you
Speaker 1: have the ability to help others. But it's not expected
Speaker 1: of you at all. And I think that what goes
Speaker 1: around comes around, and if you're not able to at
Speaker 1: this point in your life, that is totally okay, and
Speaker 1: you can do it at another point that might make
Speaker 1: more sense to you. And I also don't want people
Speaker 1: to forget that it's not always just financial, Jess. You
Speaker 1: do a lot of volunteer work where it's not financial.
Speaker 1: Like I remember I called you the other day and
Speaker 1: I was like, I put you up to and you
Speaker 1: were like, ah, just volunteering on the flood relief collecting items,
Speaker 1: and I was like, oh, angel, she actually is an angel.
Speaker 1: Stuff but I was like, how did you even get
Speaker 1: into that? Like, I didn't know you were going to
Speaker 1: do that today. You were like, oh, I drove down
Speaker 1: because I was going to donate something and they needed
Speaker 1: a hand, so I stuck around. And I just think
Speaker 1: that that is really beautiful. One because Jess is a legend,
Speaker 1: but we already knew that. But Two, it's really not
Speaker 1: always about money. It can just be about sometimes we
Speaker 1: need hands on decks, sometimes we need to volunteer, and
Speaker 1: those opportunities exist, So if you've got time, please try
Speaker 1: and sort them out, because there are lots of them,
Speaker 1: especially at the moment.
Speaker 3: Donating time is just as good as donating money if
Speaker 3: you can't donate money. But it's also really interesting to
Speaker 3: think about the tax implications because I think, like as
Speaker 3: you guys discussed on the show, like there are certain
Speaker 3: financial benefits for certain charities or certain donations you know, very.
Speaker 1: Specific to what you're doing or whatever.
Speaker 3: But I feel like it's very much a rich person
Speaker 3: thing to be like, I am donating money for this
Speaker 3: particular like oh yeah, right, Like the everyday person really
Speaker 3: doesn't know about.
Speaker 1: That, no, And it totally doesn't benefit you if you're
Speaker 1: under one hundred and eighty thousand dollars in earnings, which
Speaker 1: most of us are, let's be honest, So it's not
Speaker 1: actually something that is known to us. But I think
Speaker 1: it's important to know that even if you make a
Speaker 1: donation of more than two dollars, if you have the
Speaker 1: re seat, you can claim it on tax exactly. So
Speaker 1: that's really nice. And obviously, if you're doing good bookkeeping,
Speaker 1: you'll be collecting that anyway and making sure that you
Speaker 1: give that to your accountant tax time, or putting it
Speaker 1: into your tax return when you do it yourself online.
Speaker 1: So I think it's important to keep track of it
Speaker 1: because you can claim it. But yes, we can't all
Speaker 1: just go make massive donations to museums to write it
Speaker 1: off on tax. Unfortunately, we'll get there. I'll get there.
Speaker 1: Ge King wants to buy a yacht, so we're going
Speaker 1: to get there, aren't we. Exactly.
Speaker 2: Please donate to my charity, Cheeking Yacht Foundation Foundation.
Speaker 1: All right, that sounds very a a delv. Let's move on.
Speaker 1: That's my inspiration. Should we talk about money wins? We
Speaker 1: absolutely are you putting on the table this week?
Speaker 2: Girl is our first one comes from it to Sena.
Speaker 2: I feel like you guys going to love this, so
Speaker 2: make sure you're listening. I am looking to Shina. I've
Speaker 2: been eyeing off a new vacuum cleaner for ages. Decided
Speaker 2: to buy it. Here's the breakdown. The cost originally was
Speaker 2: three hundred and ninety nine dollars. I had a code
Speaker 2: for eBay that took off thirty two dollars, and I
Speaker 2: cashed in my shop back dollars for an eBay card
Speaker 2: that took off three hundred and twenty five dollars. Total
Speaker 2: spend forty two dollars plus I've now got nine dollars
Speaker 2: in cash back from buying e Bay cards.
Speaker 1: How good.
Speaker 3: We met her at the Sydney event and she literally
Speaker 3: said I love shot back like, I'm such as she's
Speaker 3: on the money person, Like I listened to everything I do,
Speaker 3: all of these things, I have these tricks and hacks.
Speaker 1: And there you go. She clearly was not lying to
Speaker 1: She is putting down what she is speaking up. I
Speaker 1: love her. How good is that? I'm glad you made
Speaker 1: us listen, as though we never listened to the money
Speaker 1: with I know, I don't know why.
Speaker 2: I said that, all right.
Speaker 1: The next one comes from Tyler.
Speaker 2: I went to the car wash yesterday, and when I
Speaker 2: got out to wash my car, the car in front
Speaker 2: had left ten dollars on the machine or money. We'll
Speaker 2: have a clean vehicle.
Speaker 1: Next wind comes from Rachel. I'm actually laughing because it
Speaker 1: could have been a like pay forward gone like random
Speaker 1: back to your guy, and they've left it thinking that
Speaker 1: you please the next person. Nap'll catch up.
Speaker 2: The next wind, guys, comes from Rachel. I finally got
Speaker 2: COVID and pretty sure it's a money win because I'm
Speaker 2: saving ten dollars a day on my coffee habit by
Speaker 2: not being at work. That's way to look at it. Yes, exactly,
Speaker 2: feeling better soon, exactly right, We've all been there.
Speaker 1: I spent so much on cough lollies and cough drops
Speaker 1: in Panandole. I don't know what if it makes up
Speaker 1: for it. Did spend a lot on cottee.
Speaker 2: The next wind comes from Trista. I flew to Perth
Speaker 2: and back for Easter for twenty dollars each way due
Speaker 2: to some cheap flights I nabbed a while ago. She
Speaker 2: must have got like deep in twenty twenty or something
Speaker 2: when it was just never.
Speaker 1: Like I really should have made use of that pariod
Speaker 1: more than twenty dollar.
Speaker 4: Going.
Speaker 3: Truly, I'd be like, put me on a plane, I
Speaker 3: don't care, send me anyway twenty dollars?
Speaker 1: Do you really not care? Oh? Here we go? Where
Speaker 1: would you send me? I'm not telling I think I
Speaker 1: just can you imagine putting just on a surprise flight?
Speaker 1: See you, leater, have fun twenty dollars?
Speaker 2: Thanks coming where it would be funny to go?
Speaker 1: I don't know, but I can't imagine being able to
Speaker 1: get someone on a flight without them knowing by virtue
Speaker 1: where they're going, without making them look like a hostage. Literally,
Speaker 1: you'd have to like blindfold her and put ear pods
Speaker 1: or something on her so she couldn't couldn't hear the announcement. Yeah,
Speaker 1: it looked like I was kidnapping her or trafficking her
Speaker 1: or something. It would be cost stressful to know from
Speaker 1: me what's the next money When the.
Speaker 2: Next one is a money win slash loss, it comes
Speaker 2: from Libby. My emergency fund is coming to use as
Speaker 2: someone hit the back of my car and didn't leave
Speaker 2: their contact details so I don't have to pay for
Speaker 2: repairs slash e access to get it fixed. I'm very
Speaker 2: grateful that I don't have to stress about where the
Speaker 2: money is going to come from. Little clap of how.
Speaker 1: Good is that? It's really good, But also it's a
Speaker 1: bit of.
Speaker 2: A dodgy move from the other driver.
Speaker 3: Don't be a dick, because what goes around comes around.
Speaker 3: I'm going to get that person had bad coma.
Speaker 2: The next thing comes from Anna. It was easter long
Speaker 2: weekend and lots of people were ordering fish on Friday.
Speaker 2: I do Uber and dow Dash and made six hundred
Speaker 2: dollars just on Friday alone.
Speaker 1: Yes, do fish and chip shop down on the peninsula
Speaker 1: where I'm from closed all easter. YEH missed opportunity. From
Speaker 1: my understanding, I'd been super interested to know how much
Speaker 1: people can make on Uber.
Speaker 2: That surprised me.
Speaker 1: I didn't know that was a thing. She must have
Speaker 1: done it per order. Perhaps I don't know how it
Speaker 1: works either, And that send us a message we want
Speaker 1: to know more about your pervy financial situation justin know
Speaker 1: what we need to get. We need to get somebody
Speaker 1: who's done Uber and get them to do money dough.
Speaker 1: I reckon that would be that would be pervy, Like
Speaker 1: I don't just want to know, Oh, how much do
Speaker 1: you earn in general, like how much per trip? Like
Speaker 1: obviously the longer you stay out, the more money you make,
Speaker 1: but like is it more do you get surges if
Speaker 1: you do uber eats? I don't know. There's a lot
Speaker 1: of questions I have that are currently unanswered. We'll find
Speaker 1: a person.
Speaker 2: Let's move on, though, Je it's our final win for
Speaker 2: the day, guys, it comes from Ram money win.
Speaker 1: I've been waiting for my turn to be able to
Speaker 1: post this. I paid fifty.
Speaker 2: Thousand dollars a debt off in fourteen months. Last week
Speaker 2: we had the bank backflip on our pre approval for
Speaker 2: our home loan after our offer was accepted, so I
Speaker 2: had to get a loan on my own and borrow
Speaker 2: fifty thousand dollars from my parents. It took lots of
Speaker 2: hard work and sacrifice to be able to pay them
Speaker 2: back so quickly. Now we are so used to saving
Speaker 2: that we will have our house paid off in six years.
Speaker 1: Wow, Air pic along that she'd been waiting to post it.
Speaker 1: I was like, oh my god, it's my time to shine.
Speaker 1: And we get so excited seeing posts like that, so
Speaker 1: keep them coming. But George, Jess, do you know how
Speaker 1: much that is per month? This woman was saving thirty
Speaker 1: five hundred dollars per month to give that fifty grand back.
Speaker 3: Losh, imagine the streamers. Congratulations, so excited that.
Speaker 1: That is airpit huge.
Speaker 2: That's it for the week, ladies.
Speaker 1: Well let's go to a quick break, and then when
Speaker 1: we come back, we are talking once again about after pay.
Speaker 3: Oh rady, guys, I have an article for you that
Speaker 3: I know we're going to have some fun with.
Speaker 1: We're talking though, well what are we talking? We're gonna
Speaker 1: have fun, don't know I anybody else will. I'll have fun.
Speaker 1: We're talking about after pay. You guys know we're their
Speaker 1: biggest fans. Oh cough cough.
Speaker 3: No, but it's a really interesting article came out last
Speaker 3: week because they did drop a financial report recently and
Speaker 3: it said that they have been operating at a massive loss.
Speaker 1: I'm just shook that a company that is so in
Speaker 1: debt is still just like plodding along getting it done,
Speaker 1: getting more of you in debt. It's wild.
Speaker 3: So they reported that in the first half of FYI
Speaker 3: twenty twenty two, so June to December last year, last
Speaker 3: year correct, they had one hundred seventy six million dollars
Speaker 3: of bad debt.
Speaker 1: Bad debt, not just debt for like you know, growing
Speaker 1: the business or whatever. Debt, debt, debt, debt, And that
Speaker 1: was up the year previous they only had seventy two millions.
Speaker 1: They were up over one hundred million dollars in bad
Speaker 1: debt in twelve months, which, oh, easy to do it,
Speaker 1: that's real easy to Yeah, we've all been in there.
Speaker 3: Everyone in the community is like, I'm in debt. You're
Speaker 3: not in debt that bad.
Speaker 1: That makes you. You're not enough to pay any better.
Speaker 1: It's how much you will cost you after pay a yacht.
Speaker 1: Surely not, you wouldn't be able to do that. Yeah,
Speaker 1: So it's.
Speaker 3: Pretty crazy when you look at the numbers. Their late
Speaker 3: fee revenue increased exponentially. Once again, just got me. I
Speaker 3: was shook for a company that tells us no, no, no,
Speaker 3: we're not putting people in a worse off position. We're
Speaker 3: making sure that they're doing the right thing. If we
Speaker 3: do credit checks, though, that would be compromising their privacy.
Speaker 3: Don't really want to do that, Jess.
Speaker 1: What is it this year?
Speaker 3: So this year it was for that same time period
Speaker 3: seventy eight point five million, which is, if my math
Speaker 3: is right, over double the year previous which was six
Speaker 3: point quick math, great.
Speaker 1: For me, good work.
Speaker 3: Bear so many millions of dollars and again that is
Speaker 3: just from late fees that they have changed fees.
Speaker 1: That's disgusting for a company that ah makes me so angry.
Speaker 1: Can you imagine how much money that is, like just
Speaker 1: in a room, and how many people could be out
Speaker 1: of debt if we had that money.
Speaker 3: It just it makes me really annoyed because they're big
Speaker 3: thing that they push in all of their marketing. They're like, spend, spend, spend,
Speaker 3: get what you want, worry about paying it off later.
Speaker 3: And then they try and flip the narrative in their
Speaker 3: advertising and say, were you for you to help you
Speaker 3: cash flow yourself, to help you make sure that you
Speaker 3: can break things down and keep them manageable. But if
Speaker 3: you're making back almost eighty million dollars in late fees,
Speaker 3: I would argue that you're probably not making things manageable
Speaker 3: for people. In fact, you're doing quite the opposite.
Speaker 1: Because you can sign up to after pay and only
Speaker 1: have the amount of money in your account for the
Speaker 1: first installment. You don't have to have that full amount
Speaker 1: because it's not taken out on that day. And even
Speaker 1: if you did have that full amount in your account
Speaker 1: on that day, there's nothing to say that you wouldn't
Speaker 1: go and spend it in another transaction five minutes after
Speaker 1: signing up to after pay, meaning you can no longer
Speaker 1: afford it, which is insane.
Speaker 2: So there's still no credit checks at all happening.
Speaker 1: No, they keep saying things like, oh, maybe in the
Speaker 1: future will do soft credit checks, which I don't think
Speaker 1: is enough because for every other credit product in Australia
Speaker 1: and every other debt product in Australia, you have to
Speaker 1: do a credit check. And that credit check. As much
Speaker 1: as people always like, oh my credit score, you know
Speaker 1: it's bad or I don't want them impacting my credit
Speaker 1: score by checking, it's putting you in the best possible
Speaker 1: position by having it checked, because they might check it
Speaker 1: and be like, gee, you can't afford it because you
Speaker 1: just bought a yacht, Like it's not going to work.
Speaker 1: You don't have the cash flow or the proven record
Speaker 1: of paying your yacht back, so we aren't going to
Speaker 1: give you access to more debt. Or we can see
Speaker 1: that you already have three or four credit cards. This
Speaker 1: isn't in your best interest like it is for the
Speaker 1: greater good that credit checks had done on the flip
Speaker 1: side of that, though, credit checks are also done to
Speaker 1: protect the borrower, to protect after pay. If they did that,
Speaker 1: they'd say, ugh, g has a yacht. Probably shouldn't be
Speaker 1: lending to that person. And they look at Jess, who's
Speaker 1: been saving for a first home very diligently, I might add,
Speaker 1: and doing you know, everything right, and has really great
Speaker 1: cash flow, and that would be reflected on her credit report,
Speaker 1: meaning she's a better contender to lend to. So at
Speaker 1: the moment, they're just like spraying it out everywhere and
Speaker 1: not really minding who goes where or what. And the
Speaker 1: people like George who have yachts are the ones that
Speaker 1: are paying late fees because they're not good at managing
Speaker 1: their money and they're not good at the cash flow
Speaker 1: side of things. But then this company is, you know,
Speaker 1: showcasing people like Jess, and they're like, oh my gosh,
Speaker 1: it's just a tool that she uses to be in
Speaker 1: charge of her cash. It's like, no, people are turning
Speaker 1: to this because they can't afford things, not because they
Speaker 1: want good cash flow. Because if you want good cash flow,
Speaker 1: I can give you a system that's like after pay
Speaker 1: with your own bank account.
Speaker 2: In terms of this debt that is making news, it's
Speaker 2: clearly massive, it's substantial. But who is it substantial for.
Speaker 2: Is it for the investors who are looking at after
Speaker 2: pays a good option or is it for after paid.
Speaker 1: Users or ken or lost dogs? Okay, talk me through that. Why.
Speaker 1: So the debt that they carry is obviously their own
Speaker 1: debt from spending money on growing their company, but also
Speaker 1: the debt that individuals have with after pay, because at
Speaker 1: the end of the day, the brunt it stops with
Speaker 1: them and they're the ones that are in debt technically.
Speaker 1: So when you use after pay, you're going, all right, well,
Speaker 1: I'll put this one hundred dollar item on after pay,
Speaker 1: and that's a debt that you owe to after pay.
Speaker 1: So therefore, on the balance sheet of after pay it
Speaker 1: sits in their liabilities column and it would say Georgia
Speaker 1: King one hundred dollars. So that's a debt that they
Speaker 1: haven't recovered yet. And every single user, and Jess, I
Speaker 1: think you said before there were eleven million of them.
Speaker 3: Yeah, it was eleven million in I believe twenty twenty,
Speaker 3: so okay, so arguably quite a few more ways definitely
Speaker 3: more than that, But there would be a line item
Speaker 3: technically for every single person that uses after pay with
Speaker 3: what they owe, and then if you add all of
Speaker 3: that up, that would be some of their debt. So
Speaker 3: I think it's interesting because jess that would be a
Speaker 3: real big spreadsheet. That would be spreadsheet that would intimidate that. Yeah,
Speaker 3: they probably don't use spreadsheets anymore.
Speaker 1: They've probably got some very fancy back end stuffware. I
Speaker 1: would imagine. I'm just taking a stab in the dark.
Speaker 1: I just assume. But if we boil it down, that's
Speaker 1: how it works. They have this line item that's Georgia
Speaker 1: King or jessic Ricci, and that's how much you own.
Speaker 1: It gets added up. So if George Ow's one hundred
Speaker 1: dollars and Jesso's fifty dollars, their debt collectively that they
Speaker 1: haven't recovered yet its one hundred and fifty dollars. Does
Speaker 1: that make sense?
Speaker 3: Yeah, I wonder if that's the reason why, So after Pay,
Speaker 3: if you didn't know if anyone listening at home was
Speaker 3: purchased by Block, which is like a tech company. There
Speaker 3: are a number of companies that they own that's all
Speaker 3: very stock standard. But when they purchased after pay, the
Speaker 3: projected growth was at seventy percent, So, which.
Speaker 1: Is wild, Like, that's a good purchase, right you go, ooh,
Speaker 1: seventy percent return voyners sounds incredible on paper and would
Speaker 1: probably have played a very big part in the amount
Speaker 1: of money the Block chose to spend and all of
Speaker 1: those kinds of things. However, now with their current financial position,
Speaker 1: it's actually only running at about twenty five to thirty percent,
Speaker 1: and that is a massive decrease, especially considering the premium
Speaker 1: that Block had to pay for after pay, Like they
Speaker 1: didn't just pay what after pay was valued at. They
Speaker 1: paid a massive premium because they're like, you are the
Speaker 1: biggest buy now, pay later in the world. We want
Speaker 1: to own you. They already own Zippay. The people who
Speaker 1: own Block are the people who own Twitter. Like they
Speaker 1: are big. They're going for collecting data. It was worth
Speaker 1: it to them, but like, you'd be pretty peeved if
Speaker 1: you had made such a big investment to then have it, yeah,
Speaker 1: not work out the way you wanted it to. Hey,
Speaker 1: wild When I was looking into some articles on this
Speaker 1: particular topic, because they have been a whole bunch of
Speaker 1: them popping up all across the finance space. Over the
Speaker 1: past week, I saw a few different outlets reports that
Speaker 1: there is now concern that because by now pay later
Speaker 1: platforms and you know after Pay obviously being the leader
Speaker 1: in that space, are operating at such significant losses, there's
Speaker 1: concern now that that will actually trigger us some kind
Speaker 1: of massive financial crisis, which is very but it's very possible.
Speaker 1: So in two thousand and eight, we saw the start
Speaker 1: of the Global Financial Crisis or the GFC. I refer
Speaker 1: to this a lot in the podcast because it's where
Speaker 1: a lot of people lost a lot of money because
Speaker 1: they sold down, right, Yes and no. So firstly, yes,
Speaker 1: because the emotional investment journey means that when things are crashing,
Speaker 1: we want to hold everything close, and we go, oh
Speaker 1: my gosh, my shares are crashing in value, and I
Speaker 1: want to turn them all into cash so that I
Speaker 1: can hold them close and not feel that loss anymore,
Speaker 1: because I will just crystallize it and it'll stop it.
Speaker 1: So yes, yes, a lot of people lost a lot
Speaker 1: of money because it was going down and they just
Speaker 1: got really anxious and sold out. Understandable. But a lot
Speaker 1: of people also lost a lot of money because companies
Speaker 1: were carrying a shitload of really bad debt. And that
Speaker 1: is what we see again in the buy now, pay
Speaker 1: later space, like how are they going to pay that back?
Speaker 1: Think about how much debt they have and how they've
Speaker 1: never actually, ever, ever, ever turned a profit. This company
Speaker 1: has never produced a dividend for any of the investors.
Speaker 1: Yet when we look at the share market, afterpays pretty glamory, right,
Speaker 1: it's pretty glitzy. People go, oh, do you buy after pay?
Speaker 2: Oh?
Speaker 1: Yeah, I bought it when it was XYZ. It's like,
Speaker 1: as an advisor, I obviously can't be like, oh, buy
Speaker 1: this or buy that, but we're not really talking about
Speaker 1: it being a good share or a bad share to purchase.
Speaker 1: It just confuses me around people's portrayal of what that
Speaker 1: looks like, because if you look at the financials, you're like,
Speaker 1: that's cool. That's not good at all. I see the potential.
Speaker 1: I see the blocks now bought it. But block buying
Speaker 1: it to me, should have meant that the company would
Speaker 1: then be successful. Is it no big picture question?
Speaker 3: If they're in these huge amounts of debt that they're like,
Speaker 3: you're looking at out going, how could you possibly repay that?
Speaker 3: Is that why they're spending so much money on marketing
Speaker 3: because they're trying to generate users that they're hoping will
Speaker 3: pay late fees so that they can then afford to
Speaker 3: pay off some of their debt. I don't think it's
Speaker 3: late fees because they are a lending company. At the
Speaker 3: end of the day, it might not cost you, as
Speaker 3: the consumer anything, but they are borrowing out money and
Speaker 3: making money on that money. So you don't see that,
Speaker 3: you don't feel that because essentially we're very small fish
Speaker 3: in the grand scheme of lending out money. But at
Speaker 3: the end of the day, I also don't think that
Speaker 3: their late fees are ever going to be enough to
Speaker 3: pay off their debt. It's just a very big portion
Speaker 3: of the income they derive. And I just feel like
Speaker 3: they say one thing and then you know, the numbers
Speaker 3: are speaking a little bit louder as to what their
Speaker 3: true values are. Because if it was so important to
Speaker 3: them to be putting their consumers in the best possible position,
Speaker 3: and it was important for them for you not to
Speaker 3: incur late fees, and oh, they don't care about that income,
Speaker 3: it's just a part of it. Don't have the late fees,
Speaker 3: then yeah, exactly, especially coming out of COVID, then why
Speaker 3: are they there. I completely understand your account being crystallized
Speaker 3: so you couldn't make any more purchases. I can play
Speaker 3: understand it impacting your credit report. I completely understand you
Speaker 3: being in a position where a debt collector comes and
Speaker 3: asks for that money back. I'm not saying they should
Speaker 3: just write off the money because oh, Jeff spent it
Speaker 3: and shouldn't have a yolo like.
Speaker 1: That's not in at all. I'm saying Jeff should pay
Speaker 1: back her money. But does that mean she has to
Speaker 1: incur a fee? I mean, credit cards have interest rates,
Speaker 1: so that makes sense, and they rack up over time.
Speaker 1: Arguably that's very detrimental as well. But the thing credit
Speaker 1: cards have that after pay doesn't is the credit check
Speaker 1: to make sure that you're a responsible person to lend to.
Speaker 2: So B If they don't make their money from late fees,
Speaker 2: despite that being quite a significant sum, how are they
Speaker 2: making their money now? This is a spicy topic, and
Speaker 2: my partner Steven shout out to the guy who's never
Speaker 2: listened to our podcast because it makes him feel awkward.
Speaker 2: But he works in data science, right, so he's smart guy,
Speaker 2: smart cookie. This is why we're going to get married
Speaker 2: to him, guys, So I'm trying to get you guys
Speaker 2: to buy in as well, so you've got more interest
Speaker 2: in my wedding. But on the afterpay website it says
Speaker 2: that they absolutely would never sell your data, Jess, So
Speaker 2: that makes you feel pretty good. But they do share
Speaker 2: it with their commercial partners. How do they get around
Speaker 2: that because they're a commercial partner and it's for research.
Speaker 2: Does it say that after pays retailers and commercial partners
Speaker 2: are independent of after pay and may have privacy policies
Speaker 2: that differ from us. But they do share it with
Speaker 2: third parties who are commercial partners, So that could be
Speaker 2: retailers or if they're working with a bank at the time,
Speaker 2: they could share that information because in a way, it's
Speaker 2: for the greater good of the relationship, and right, it
Speaker 2: benefits the customer if we're doing all of this research
Speaker 2: and it's not selling the data. If this bank is
Speaker 2: paying us to do this separate research and therefore we're
Speaker 2: partnering together and they happen to get access to the data,
Speaker 2: right and a lot a lot a lot of companies
Speaker 2: do this where they say, oh no, we would never
Speaker 2: sell your data, and you go Oh that's nice. They
Speaker 2: don't call it selling data when they're sharing it, right.
Speaker 1: So interesting.
Speaker 3: So it's like, we're not going to sell it to
Speaker 3: a shady telecommunity, we never do that, No, but we
Speaker 3: absolutely might sell it to a big bank who's prepared
Speaker 3: to pay a lot of money for that.
Speaker 1: Yeah, for research carried out. Definitely, not for your data.
Speaker 1: They would never pay for your data because jess, they
Speaker 1: don't sell data, remember wow. But they might share it. Yeah,
Speaker 1: but they might share it along the way, and that's
Speaker 1: clearly disclosed on their website in a way. But everybody
Speaker 1: would ever freaking absolutely no. Stop getting so upset about this.
Speaker 1: They would never share your data with anybody after pay.
Speaker 1: They do though, they do, though, get us every time.
Speaker 1: It piss me off because the lack of transparency is
Speaker 1: just wild, like it just it's really upsetting. And I'm
Speaker 1: not saying that after pay the only people to do this,
Speaker 1: So don't get me confused when I say that after
Speaker 1: pay doing this, and they're being sneaky, like lots of
Speaker 1: businesses do this, and they do this because data is king.
Speaker 1: That is the one thing that makes your business valuable
Speaker 1: at the end of the day. If you're a Digital
Speaker 1: twenty twenty two. Company data is the thing that you
Speaker 1: should be prioritizing. This is just like a top tip
Speaker 1: small business advice, but like, that's why you should be
Speaker 1: prioritizing owning your own data. And that's why if you've
Speaker 1: ever spoken to a small business owner, like over on
Speaker 1: the Business Bible podcast, they really prioritize their eedm so
Speaker 1: their email lists. And the reason they do that is
Speaker 1: because they actually own those, as opposed to I have
Speaker 1: this many followers on Instagram or TikTok or Facebook. As
Speaker 1: we know, those accounts can disappear whenever, and your business
Speaker 1: absolutely goes capute. But when you own the data, that's
Speaker 1: what is the actual value. That's what people are paying for.
Speaker 1: That's what people see, and that's why they would be
Speaker 1: prioritizing having that and potentially sharing it, but definitely not
Speaker 1: selling it.
Speaker 2: Definitely not head to our website to sign up for
Speaker 2: our news go for it.
Speaker 1: I wouldn't even know how to sell data. Anybody in
Speaker 1: for it.
Speaker 2: No.
Speaker 1: Our privacy policy says we wouldn't sell data, might share it.
Speaker 2: No.
Speaker 1: I see if I would do that, that would be
Speaker 1: so contradictory to everything I believe in ladies.
Speaker 2: It's been a while, a week in fact, since we've
Speaker 2: had a listener question. Should we have You don't want
Speaker 2: to talk about chatter anymore, Let's move on, Okay, no problems,
Speaker 2: Straight to some data. One of our listeners sent into.
Speaker 1: US high Team Shoes on the Money.
Speaker 4: I'm a British expat living in Sydney and I'd like
Speaker 4: to start investing here in Australia as i'd like to
Speaker 4: stay long term, so just for financial security in the future. However,
Speaker 4: when I'm looking into all the apps like rays and
Speaker 4: chair z'se, it says you need to be an Australian
Speaker 4: resident in order to invest. So I was just wondering
Speaker 4: if you knew if it's possible for people on temporary
Speaker 4: work visas to invest in app like these, or what
Speaker 4: would be the best way to start investing.
Speaker 1: Thank you take it away, VDA.
Speaker 2: What's the answer to this one?
Speaker 1: Why do you always come back to me with the
Speaker 1: advice you guys are giving. It's almost like you're the expert.
Speaker 1: This is a hard one because I'm so excited that
Speaker 1: you want to invest and that you are so on
Speaker 1: top of it and you're looking into it. But unfortunately,
Speaker 1: because you are a temporary resident. You can't invest directly
Speaker 1: in Australia without permission. And when I say without permission,
Speaker 1: it's not me going yeah, ge King, you can do it.
Speaker 1: I'm more mean legally, you need to get permission as
Speaker 1: a foreign person who is on a temporary residence visa
Speaker 1: to get actual permission from a place called the Foreign
Speaker 1: Investment Review Board or the FIRB, known to the locals
Speaker 1: ERB the FERB, but you need to get permission from
Speaker 1: them to invest in Australia, whether that is shares or property.
Speaker 1: I would also argue that if you're only on a
Speaker 1: temporary visa, I obviously don't know what your long term
Speaker 1: intentions are, whether that is to go back to the
Speaker 1: UK or settle here permanently, and that would change the
Speaker 1: direction of the conversation because if you're planning on going
Speaker 1: home in the next couple of years, I would really
Speaker 1: consider whether investing in Australia is right for you, and
Speaker 1: if it's something you really want to pursue, I'd be
Speaker 1: getting advice on it. So talk to either an accountant
Speaker 1: that you have or a lawyer that you have that
Speaker 1: could help you out in that particular circumstance, because it's
Speaker 1: a really gray area and it completely depends on what
Speaker 1: your future plans are and what the plans are in
Speaker 1: the immediate future, and whether it's even worth it for
Speaker 1: you at this point, because you could be up for
Speaker 1: some pretty hefty tax implications if you do the wrong thing.
Speaker 1: So get advice, I think is the main thing. But
Speaker 1: really understanding that it is quite limited for people who
Speaker 1: are on temporary visas, and that sucks, but hopefully we
Speaker 1: get to keep you and those temporary visas turn into
Speaker 1: permanent once and then you're allowed to invest in whatever
Speaker 1: the hell you want in this country. And with that
Speaker 1: g I think we are actually done with savage d
Speaker 1: after pay again. We've talked about data again. We've talked
Speaker 1: about listener questions again. We've never tackled that topic. So
Speaker 1: that's new and fresh and bright and bubbly. But you
Speaker 1: know what is not new, fresh, bright and bubbly our disclaimer,
Speaker 1: So take it away my life to do it.
Speaker 2: The advice shared on she is on the Money is
Speaker 2: general in nature and does not consider your individual circumstances.
Speaker 2: She's on the Money exists purely for educational purposes and
Speaker 2: should not be relied upon to make an investment or
Speaker 2: financial decision. Wow and remember Victoria Divine is an authorized
Speaker 2: representative of in Focused Securities Australia Propriety Limited a b
Speaker 2: N four seven zero nine seven seven nine seven zero
Speaker 2: four nine a fos L two three six five two three.
Speaker 2: See you next week, guys, See next week