1 00:00:00,200 --> 00:00:19,440 Speaker 1: She's on the Money. She's on the Money. 2 00:00:23,160 --> 00:00:26,320 Speaker 2: Hello, and welcome to She's on the Money, the podcast 3 00:00:26,360 --> 00:00:30,640 Speaker 2: for millennials who want financial freedom. My name is Tony Lodge, 4 00:00:30,640 --> 00:00:33,400 Speaker 2: and joining me for another Shot Back Money Diary is 5 00:00:33,520 --> 00:00:34,599 Speaker 2: Victoria Divine. 6 00:00:34,640 --> 00:00:38,279 Speaker 3: Hello, Hello, and welcome to Money Diaries. 7 00:00:38,440 --> 00:00:39,960 Speaker 4: Is that what you say Diaries? 8 00:00:40,200 --> 00:00:44,360 Speaker 3: Shot Back Money Diaries, which is really exciting. Before this 9 00:00:44,520 --> 00:00:46,920 Speaker 3: episode started, you were telling me it's going to be 10 00:00:46,960 --> 00:00:49,840 Speaker 3: a goodie, So why don't we as always just dive 11 00:00:49,920 --> 00:00:50,720 Speaker 3: straight on in? 12 00:00:50,800 --> 00:00:51,680 Speaker 4: All right, here we go. 13 00:00:51,960 --> 00:00:55,040 Speaker 2: I grew up pretty privileged, often coming home to random 14 00:00:55,080 --> 00:00:57,360 Speaker 2: gifts from my parents on my bed, and as a 15 00:00:57,400 --> 00:01:00,160 Speaker 2: teenager being sent to do groceries, being told we have 16 00:01:00,160 --> 00:01:02,880 Speaker 2: no budget. This did not set me up for success 17 00:01:02,920 --> 00:01:05,600 Speaker 2: in the real world. While I've achieved some big goals, 18 00:01:05,680 --> 00:01:08,000 Speaker 2: my husband and I have less than one thousand dollars 19 00:01:08,040 --> 00:01:09,839 Speaker 2: in the bank and we need to get into better 20 00:01:09,920 --> 00:01:12,920 Speaker 2: savings habits, and we have our Money Diarist on the 21 00:01:13,040 --> 00:01:14,760 Speaker 2: line of course at we ways. 22 00:01:15,480 --> 00:01:19,160 Speaker 3: Hello, Money Darist, Welcome, how are you Bie? 23 00:01:19,360 --> 00:01:20,240 Speaker 4: Good? Thank you? 24 00:01:20,800 --> 00:01:23,600 Speaker 2: And you were just telling us before we started recording 25 00:01:23,880 --> 00:01:25,800 Speaker 2: that you've actually had a little bit of a shift 26 00:01:25,880 --> 00:01:28,040 Speaker 2: in your Money Diary story. 27 00:01:28,120 --> 00:01:31,800 Speaker 5: Which we would love the update on. Yeah, so we. 28 00:01:31,800 --> 00:01:36,759 Speaker 4: Thankfully now have more than one thousand dollars in the bank. Yay, congratulations, 29 00:01:37,160 --> 00:01:39,880 Speaker 4: thank you. I'm very happy about it now, but it's 30 00:01:40,600 --> 00:01:44,040 Speaker 4: not because we saved or learned any new habits. It's 31 00:01:44,120 --> 00:01:47,200 Speaker 4: because I got a good tax return back and I 32 00:01:47,280 --> 00:01:50,280 Speaker 4: also got a yearly bonus from work. So we now 33 00:01:50,440 --> 00:01:55,120 Speaker 4: have just under thirteen thousand dollars in the bank. How nice? 34 00:01:55,400 --> 00:01:56,560 Speaker 3: Does that feel good? 35 00:01:56,920 --> 00:02:01,440 Speaker 4: Yes? Yes, I was very very stressed before, but I 36 00:02:01,440 --> 00:02:03,880 Speaker 4: think all the underlying issues are still there, and I'm 37 00:02:04,040 --> 00:02:08,800 Speaker 4: very stressed about losing that money now as well. While 38 00:02:08,880 --> 00:02:10,920 Speaker 4: there is a bit of ease when I'm swiping my 39 00:02:11,080 --> 00:02:14,480 Speaker 4: card out, I'm still having that little bit of stress 40 00:02:14,560 --> 00:02:16,519 Speaker 4: wanting to like hang on to every cent that we have. 41 00:02:16,960 --> 00:02:18,360 Speaker 4: M h. Yeah. 42 00:02:18,400 --> 00:02:21,480 Speaker 2: Well, because it's that easy come, easy go thing, isn't it, 43 00:02:21,520 --> 00:02:23,400 Speaker 2: Like you think, Oh my gosh, all of a sudden, 44 00:02:23,760 --> 00:02:25,480 Speaker 2: this feels so much simpler. 45 00:02:25,760 --> 00:02:27,679 Speaker 5: I really don't want it to be taken away from me. 46 00:02:28,880 --> 00:02:32,080 Speaker 4: Yeah. Yeah, I'm worried about getting too comfortable. 47 00:02:32,120 --> 00:02:37,160 Speaker 3: Which is completely understandable. So without further ado, let's jump 48 00:02:37,320 --> 00:02:40,160 Speaker 3: straight into the money diary questions. Because I feel like 49 00:02:40,200 --> 00:02:42,640 Speaker 3: I've got some chats I'd like to have about the 50 00:02:42,680 --> 00:02:45,040 Speaker 3: emergency fund and how you're feeling about that and maybe 51 00:02:45,080 --> 00:02:48,919 Speaker 3: what you structure yourself as now. But first, cab Off, 52 00:02:48,960 --> 00:02:51,919 Speaker 3: the rank is what is your attitude towards money? 53 00:02:52,280 --> 00:02:54,600 Speaker 4: I actually have stressed about this question. 54 00:02:54,760 --> 00:02:56,080 Speaker 3: Oh no, I'm sorry. 55 00:02:56,440 --> 00:02:59,320 Speaker 4: Oh it's fine. I just feel like it changes every day, 56 00:02:59,360 --> 00:03:03,040 Speaker 4: depending what mood I wake up in. Its different, So 57 00:03:03,400 --> 00:03:06,120 Speaker 4: that's probably why I'm also quite frazzled with our money 58 00:03:06,280 --> 00:03:09,760 Speaker 4: as well. When I was growing up, my mom, she's 59 00:03:10,000 --> 00:03:12,800 Speaker 4: I described her as missus Claws. As a person, she 60 00:03:13,360 --> 00:03:17,519 Speaker 4: is cute, she's the best. She's like five foot and blonde, 61 00:03:17,680 --> 00:03:20,400 Speaker 4: like the higher the hair, the closer to God type woman. 62 00:03:22,240 --> 00:03:24,840 Speaker 4: So she really spoiled us growing up. Like she just 63 00:03:24,960 --> 00:03:29,400 Speaker 4: loves to give people gifts and really, I don't know, 64 00:03:29,480 --> 00:03:32,359 Speaker 4: make them feel loved, and she has done that through 65 00:03:32,880 --> 00:03:37,000 Speaker 4: money and material possessions. So that's her attitude towards money. 66 00:03:37,040 --> 00:03:40,160 Speaker 4: Whereas my dad, he's worked really hard his whole life. 67 00:03:40,280 --> 00:03:44,520 Speaker 4: He was a GM for really big mining companies growing up, 68 00:03:44,560 --> 00:03:46,520 Speaker 4: so he earned a lot of money, but he was 69 00:03:46,560 --> 00:03:49,280 Speaker 4: working so much that he had no idea how much 70 00:03:49,320 --> 00:03:52,320 Speaker 4: milk cost at the grocery store. Like, I never saw 71 00:03:52,360 --> 00:03:54,520 Speaker 4: my dad growing up because he would come home and 72 00:03:54,520 --> 00:03:57,960 Speaker 4: full asleep on the couch and be exhausted. So he's 73 00:03:58,000 --> 00:04:00,560 Speaker 4: really frugal and would always get crankier my mom for 74 00:04:00,680 --> 00:04:03,320 Speaker 4: spending so much money, So I was hiding credit card 75 00:04:03,400 --> 00:04:07,800 Speaker 4: bills and things like that. So I'm always like on 76 00:04:07,880 --> 00:04:11,200 Speaker 4: two ends of the spectrum. Like my dad really influenced 77 00:04:11,240 --> 00:04:14,960 Speaker 4: me about being stressed about money and wanting to be frugal, 78 00:04:15,400 --> 00:04:18,160 Speaker 4: but then I treat myself mentality from my mum is 79 00:04:18,279 --> 00:04:19,560 Speaker 4: so strong. 80 00:04:19,880 --> 00:04:26,040 Speaker 3: So so they definitely had different money stories. I'm assuming 81 00:04:26,400 --> 00:04:29,559 Speaker 3: and that has shaped you into accommodation of both. 82 00:04:29,600 --> 00:04:31,680 Speaker 4: You could say, yeah, definitely. 83 00:04:31,480 --> 00:04:34,120 Speaker 3: Do you find that those two things are really conflicting 84 00:04:34,160 --> 00:04:36,320 Speaker 3: in your life? Like you're just like this is the 85 00:04:36,400 --> 00:04:38,880 Speaker 3: right way, No, this is the right way. Have you 86 00:04:39,000 --> 00:04:41,120 Speaker 3: found what works for you personally? 87 00:04:41,200 --> 00:04:44,280 Speaker 4: Yet? I don't think we've found what works yet. I 88 00:04:44,279 --> 00:04:47,039 Speaker 4: say we because my husband and I share every cent 89 00:04:47,120 --> 00:04:52,440 Speaker 4: of our money. There's nothing that's separate, so we're trying 90 00:04:52,480 --> 00:04:55,440 Speaker 4: to juggle that as well. But I definitely haven't found 91 00:04:55,480 --> 00:04:59,640 Speaker 4: what works and what I feel good about. I'm all 92 00:04:59,760 --> 00:05:03,880 Speaker 4: or not person so when I'm treating myself. I'm whatever 93 00:05:03,960 --> 00:05:07,200 Speaker 4: makes me happy, let's spend it. The next hour wake 94 00:05:07,320 --> 00:05:09,800 Speaker 4: up and be like, I can't spend five dollars on 95 00:05:09,839 --> 00:05:13,080 Speaker 4: a coffee. That's insane. I have to not leave the 96 00:05:13,160 --> 00:05:18,080 Speaker 4: house getting petrol sometimes, I feel is an unnecessary purchase. 97 00:05:18,279 --> 00:05:21,800 Speaker 3: So yeah, okay, so there's not really that level of 98 00:05:21,920 --> 00:05:25,080 Speaker 3: balance there yet to have. All right, well, this money 99 00:05:25,160 --> 00:05:27,920 Speaker 3: is actually set aside for stuff like coffees to look 100 00:05:27,960 --> 00:05:31,360 Speaker 3: after myself and have balance in my life. And this 101 00:05:31,520 --> 00:05:34,000 Speaker 3: is really common, by the way. This is not something 102 00:05:34,080 --> 00:05:36,479 Speaker 3: money direst that you're alone on and I think a 103 00:05:36,520 --> 00:05:38,320 Speaker 3: lot of people listening are going to be like, oh 104 00:05:38,320 --> 00:05:41,599 Speaker 3: my gosh, that is me. And it's often because when 105 00:05:41,600 --> 00:05:45,320 Speaker 3: we approach budgeting, we make the assumption that budgeting is 106 00:05:45,320 --> 00:05:48,800 Speaker 3: about restriction and budgeting is about, you know, spending as 107 00:05:48,839 --> 00:05:51,880 Speaker 3: little as possible and being really frugal and really smart 108 00:05:51,920 --> 00:05:55,240 Speaker 3: with our money. We're in reality, budgeting is actually about 109 00:05:55,360 --> 00:05:58,640 Speaker 3: understanding where your money flows in line with your values, 110 00:05:58,720 --> 00:06:01,240 Speaker 3: like how many dollars are coming in, and then if 111 00:06:01,240 --> 00:06:03,599 Speaker 3: we divvied them up based on what we're spending, not 112 00:06:03,720 --> 00:06:06,279 Speaker 3: on what we hoped to we are spending, are we 113 00:06:06,400 --> 00:06:08,680 Speaker 3: comfortable with that, and then if we're not, there are 114 00:06:08,680 --> 00:06:12,280 Speaker 3: some tweaks that we can make. But if you're like, no, 115 00:06:12,800 --> 00:06:15,960 Speaker 3: I'm money Dost, like I can have a coffee. I 116 00:06:16,000 --> 00:06:18,760 Speaker 3: deserve a coffee, you know what, My limit's three a 117 00:06:18,800 --> 00:06:21,800 Speaker 3: week or something along those lines, If you build that 118 00:06:21,880 --> 00:06:24,760 Speaker 3: into your budget, there's no guilt because you know you're 119 00:06:24,800 --> 00:06:28,680 Speaker 3: still achieving those bigger financial goals, Whereas I often find 120 00:06:28,720 --> 00:06:31,279 Speaker 3: that when people say things like you've just said, it's 121 00:06:31,320 --> 00:06:35,599 Speaker 3: because they don't have a strategic and super clarified goal 122 00:06:35,760 --> 00:06:38,880 Speaker 3: outlined of what they're trying to achieve, so that then 123 00:06:38,880 --> 00:06:41,000 Speaker 3: when they do spend that five dollars on coffee, they're like, 124 00:06:41,080 --> 00:06:43,320 Speaker 3: oh my gosh, Like this is just reminding me that 125 00:06:43,440 --> 00:06:45,920 Speaker 3: I haven't got that bigger goal solidified and I don't 126 00:06:45,960 --> 00:06:47,960 Speaker 3: know what that really looks like. So this five dollars 127 00:06:48,000 --> 00:06:52,600 Speaker 3: probably could go towards that, when in reality, you're probably fine, 128 00:06:52,720 --> 00:06:55,039 Speaker 3: we just need to put a plan in place and 129 00:06:55,080 --> 00:06:57,560 Speaker 3: I'll do that for you later, I promise, money Dost. 130 00:07:00,000 --> 00:07:03,479 Speaker 3: So moving on to the next question, Money Diarist, what 131 00:07:03,560 --> 00:07:05,960 Speaker 3: do you do for work and how much money do 132 00:07:06,120 --> 00:07:06,719 Speaker 3: you earn. 133 00:07:07,240 --> 00:07:10,520 Speaker 4: I'm a content manager for an insurance company and I'm 134 00:07:10,560 --> 00:07:12,360 Speaker 4: on eighty nine thousand dollars. 135 00:07:12,640 --> 00:07:16,200 Speaker 3: Cool, very nice, and to be a little bit pervy. 136 00:07:16,320 --> 00:07:18,440 Speaker 3: You said you share all your money with your partner. 137 00:07:18,640 --> 00:07:21,000 Speaker 3: What does he do? How much money does he earn? 138 00:07:21,040 --> 00:07:24,240 Speaker 4: Interesting question? During COVID he started his own business, so 139 00:07:24,320 --> 00:07:29,200 Speaker 4: he's a painter, so I'm sure exactly how much he earns, 140 00:07:29,200 --> 00:07:32,040 Speaker 4: but he tries to pay himself about between one thousand 141 00:07:32,080 --> 00:07:35,240 Speaker 4: and fifteen hundred a week. Oh cool, his business has 142 00:07:35,280 --> 00:07:37,760 Speaker 4: done so well. I'm so proud. He's so busy and 143 00:07:37,800 --> 00:07:41,280 Speaker 4: booked up, so it's good. It's just we don't actually 144 00:07:41,760 --> 00:07:44,920 Speaker 4: know how much he's earning. So that's probably also why 145 00:07:44,960 --> 00:07:49,040 Speaker 4: we're a bit confused about goals and budgeting as well. 146 00:07:49,400 --> 00:07:52,400 Speaker 3: Yeah, totally. And that's really common in the first year 147 00:07:52,480 --> 00:07:56,160 Speaker 3: of a brand new business because money would be really sporadic, 148 00:07:56,480 --> 00:07:58,400 Speaker 3: like one month he might have a killer month, and 149 00:07:58,400 --> 00:08:00,680 Speaker 3: then the next month he might be, you know, a 150 00:08:00,720 --> 00:08:03,760 Speaker 3: little bit sparser than he was. So you kind of 151 00:08:03,760 --> 00:08:05,600 Speaker 3: live it up big in the first month and go, 152 00:08:05,680 --> 00:08:07,920 Speaker 3: oh my gosh, like we're doing so well, and then 153 00:08:07,920 --> 00:08:09,640 Speaker 3: the next month you're like, oh my gosh, we're not 154 00:08:09,760 --> 00:08:11,760 Speaker 3: doing well at all. What if this is the norm? 155 00:08:12,200 --> 00:08:14,840 Speaker 3: So I feel like their first twelve months in business, 156 00:08:14,920 --> 00:08:18,000 Speaker 3: you've really just got to embrace the bear minimum, like 157 00:08:18,320 --> 00:08:20,120 Speaker 3: what is your rent? What are your bills? 158 00:08:20,240 --> 00:08:20,800 Speaker 4: Full stop? 159 00:08:20,920 --> 00:08:23,000 Speaker 3: End of story. We're not trying to smash it out 160 00:08:23,000 --> 00:08:25,320 Speaker 3: of the park. We're just trying to make sure our 161 00:08:25,440 --> 00:08:27,679 Speaker 3: business exists in another twelve months. 162 00:08:28,040 --> 00:08:29,040 Speaker 5: Yeah, and if. 163 00:08:28,920 --> 00:08:33,480 Speaker 2: You're also in that situation, anybody listening, You and Georgia 164 00:08:34,040 --> 00:08:37,560 Speaker 2: recorded a great episode called budgeting for Variable Income. So 165 00:08:37,640 --> 00:08:40,280 Speaker 2: for anybody that's listening and maybe is a sole trader 166 00:08:40,400 --> 00:08:42,760 Speaker 2: or working for themselves and your income is a bit 167 00:08:42,800 --> 00:08:45,040 Speaker 2: hard to predict, it's a really good episode. 168 00:08:44,559 --> 00:08:47,000 Speaker 5: For anybody that is going through that as well. Just 169 00:08:47,040 --> 00:08:48,199 Speaker 5: a little shameless plug. 170 00:08:48,720 --> 00:08:51,960 Speaker 3: Shameless plug like on our own podcast makes just like 171 00:08:52,320 --> 00:08:55,400 Speaker 3: selling tickets on ourselves. I like it selling tickets to 172 00:08:55,440 --> 00:09:00,680 Speaker 3: the free content we produce. You're welcome. Next question, Diarist, 173 00:09:00,800 --> 00:09:03,439 Speaker 3: is what is currently your big money goal? 174 00:09:03,840 --> 00:09:08,400 Speaker 4: Again, I don't know. We built our house three years ago, 175 00:09:08,720 --> 00:09:12,960 Speaker 4: so we've done that, paying our mortgage very comfortably. It's 176 00:09:13,000 --> 00:09:16,760 Speaker 4: not something I stress over. There's nothing that we want 177 00:09:17,080 --> 00:09:20,160 Speaker 4: to be honest, which is a nice position to be in, 178 00:09:20,440 --> 00:09:22,480 Speaker 4: but I mean I don't feel like we have a 179 00:09:22,480 --> 00:09:25,360 Speaker 4: safety net either. Yeah, Okay, my husband does want to 180 00:09:25,400 --> 00:09:29,880 Speaker 4: get into investing in property in the future, and that's 181 00:09:29,880 --> 00:09:33,120 Speaker 4: his big goal because being a trade that's really focused 182 00:09:33,160 --> 00:09:35,920 Speaker 4: on manual labor, he can't do that forever. So he 183 00:09:36,040 --> 00:09:38,720 Speaker 4: really liked to build a property of portfolio. So I 184 00:09:38,760 --> 00:09:40,680 Speaker 4: know that needs a lot of money, but we just 185 00:09:40,800 --> 00:09:43,120 Speaker 4: haven't because it seems so far off in the future. 186 00:09:43,200 --> 00:09:46,880 Speaker 4: We haven't started putting anything aside for that at all. 187 00:09:47,480 --> 00:09:50,880 Speaker 4: So we've got big, lofty ideas and goals, but we 188 00:09:51,080 --> 00:09:54,080 Speaker 4: just haven't put any of that into action yet. 189 00:09:54,280 --> 00:09:56,280 Speaker 3: Yeah, and that can be really hard to plan for 190 00:09:56,480 --> 00:09:59,240 Speaker 3: because what does that actually mean? And you say property, 191 00:09:59,280 --> 00:10:01,280 Speaker 3: but are you talking apartments? Are you guys going to 192 00:10:01,320 --> 00:10:03,480 Speaker 3: go and subdivide a block, Are you guys going to 193 00:10:03,559 --> 00:10:05,520 Speaker 3: go buy a house and flip it, or are you 194 00:10:05,640 --> 00:10:07,079 Speaker 3: going to move into. 195 00:10:06,920 --> 00:10:08,280 Speaker 4: Another house and rent out this one? 196 00:10:08,320 --> 00:10:10,640 Speaker 3: Like, there are so many variables when it comes to 197 00:10:10,679 --> 00:10:14,240 Speaker 3: property investing that it can feel so far off at 198 00:10:14,240 --> 00:10:16,400 Speaker 3: the same time as going I just want a strategy. 199 00:10:16,440 --> 00:10:18,240 Speaker 3: I just want to know what we're doing and how 200 00:10:18,280 --> 00:10:22,040 Speaker 3: it works. But that's a very exciting strategy and I 201 00:10:22,080 --> 00:10:23,960 Speaker 3: want to know all about your home building process, but 202 00:10:24,000 --> 00:10:26,080 Speaker 3: not yet Tony our products will get to it in 203 00:10:26,080 --> 00:10:31,520 Speaker 3: a minute. Money Diarist, Do you currently have any investments? 204 00:10:32,360 --> 00:10:36,800 Speaker 4: No, none, so apart from super we have nothing awesome. 205 00:10:37,040 --> 00:10:40,199 Speaker 3: I mean we're learning, and you said before that your 206 00:10:40,320 --> 00:10:43,880 Speaker 3: property portfolio of the future is one of your big goals. 207 00:10:44,600 --> 00:10:47,760 Speaker 3: Next question is do you currently have any debts? 208 00:10:48,200 --> 00:10:50,760 Speaker 4: If you did this interview two weeks ago, I could 209 00:10:50,800 --> 00:10:54,959 Speaker 4: have happily said only our mortgage. But two weeks ago 210 00:10:55,920 --> 00:11:00,200 Speaker 4: we decided to buy a new car. So we have 211 00:11:00,280 --> 00:11:03,439 Speaker 4: a loan now of fifty six thousand for that car. 212 00:11:03,880 --> 00:11:07,199 Speaker 3: Oh fancy, what made you pick that particular car? 213 00:11:07,400 --> 00:11:10,840 Speaker 4: We got a Tesla, so I really like the environmental 214 00:11:11,520 --> 00:11:14,560 Speaker 4: side of that, not having to get petrol. I mean 215 00:11:14,559 --> 00:11:16,360 Speaker 4: there are a lot of savings as well. We have 216 00:11:16,520 --> 00:11:20,440 Speaker 4: solar on our house, so charging the car. We're currently 217 00:11:20,480 --> 00:11:24,320 Speaker 4: in credit all the time for our electricity bill. Anyway. Oh, 218 00:11:25,280 --> 00:11:28,640 Speaker 4: so we charged the car at home and it's we 219 00:11:28,679 --> 00:11:31,160 Speaker 4: haven't got our first electricity bill since having it, but 220 00:11:31,480 --> 00:11:35,959 Speaker 4: theoretically we will be paying maybe thirty dollars a quarter. 221 00:11:36,280 --> 00:11:39,880 Speaker 2: Now, wow, that's a really So when you said that, 222 00:11:39,960 --> 00:11:41,640 Speaker 2: I was like, Oh, that wouldn't work for me. And 223 00:11:41,640 --> 00:11:44,240 Speaker 2: then I'm like, you had a whole plan. That's like 224 00:11:44,280 --> 00:11:46,560 Speaker 2: an incredible plan that you guys sat down and went, 225 00:11:46,640 --> 00:11:49,280 Speaker 2: hang on, we're always in credit with our power anyway, 226 00:11:49,400 --> 00:11:51,480 Speaker 2: so this could be a huge money win. Like you 227 00:11:51,520 --> 00:11:54,160 Speaker 2: said earlier, having to get petrol feels like such a 228 00:11:54,160 --> 00:11:57,080 Speaker 2: burden because you're like, we're paying for something, and obviously 229 00:11:57,120 --> 00:11:58,600 Speaker 2: the environmental factors as well. 230 00:11:58,640 --> 00:12:01,200 Speaker 5: But I love this little When you started saying that, 231 00:12:01,240 --> 00:12:03,640 Speaker 5: I was like, okay, and now I'm like, oh my gosh. 232 00:12:04,960 --> 00:12:07,040 Speaker 4: I was so worried about it because I've actually never 233 00:12:07,080 --> 00:12:09,800 Speaker 4: had a car loan before. I was very lucky. My 234 00:12:09,880 --> 00:12:12,960 Speaker 4: parents brought my first car, and then at my second car, 235 00:12:13,440 --> 00:12:16,600 Speaker 4: they took the money out of their mortgage and I 236 00:12:16,679 --> 00:12:20,000 Speaker 4: was paying them back every fortnight. But once we decided 237 00:12:20,040 --> 00:12:22,520 Speaker 4: to buy a house, they said, don't We've paid us half, 238 00:12:22,559 --> 00:12:25,119 Speaker 4: don't worry about the rest, just focus on your savings. 239 00:12:25,720 --> 00:12:26,559 Speaker 3: How nice. 240 00:12:26,920 --> 00:12:30,480 Speaker 4: Yeah, it was. We're very lucky because we get a 241 00:12:30,480 --> 00:12:33,880 Speaker 4: lot of support from them, and it's really helped us, 242 00:12:33,960 --> 00:12:36,400 Speaker 4: I guess, get a leg up in other areas of 243 00:12:36,440 --> 00:12:39,719 Speaker 4: our life. So I was hesitant to get this car 244 00:12:39,800 --> 00:12:42,360 Speaker 4: because you had never had a car loan before. I 245 00:12:42,679 --> 00:12:44,960 Speaker 4: just finished paying off my hex dead I was really 246 00:12:45,000 --> 00:12:47,160 Speaker 4: liking not having debt at all. 247 00:12:47,440 --> 00:12:50,320 Speaker 3: Any kind of day. Yeah, and it's nice to say 248 00:12:50,360 --> 00:12:53,600 Speaker 3: you're debt free. But from my understanding, you've obviously thought 249 00:12:53,600 --> 00:12:55,920 Speaker 3: about this. It wasn't like, oh, so we're walking down 250 00:12:56,000 --> 00:12:58,679 Speaker 3: the street with the coffee and we saw this car. 251 00:12:59,000 --> 00:13:01,840 Speaker 3: Just couldn't resist. Now I have a really big car loan. 252 00:13:01,920 --> 00:13:04,640 Speaker 3: You were like, oh, actually, we've done the research. We 253 00:13:04,760 --> 00:13:06,280 Speaker 3: have worked out that we're actually going to save a 254 00:13:06,280 --> 00:13:08,760 Speaker 3: whole heap of money on petrol. Like, I don't think 255 00:13:08,760 --> 00:13:11,199 Speaker 3: it's the worst idea. I've got some questions about that. 256 00:13:11,320 --> 00:13:13,360 Speaker 3: I will leave it till we get to the second 257 00:13:13,440 --> 00:13:17,240 Speaker 3: part of the show though. So next question is do 258 00:13:17,440 --> 00:13:20,120 Speaker 3: you currently use shopback sporadically? 259 00:13:20,440 --> 00:13:23,000 Speaker 4: I guess it goes along with my attitude towards money. 260 00:13:23,040 --> 00:13:25,920 Speaker 4: When I want to treat myself, I'll use it. Otherwise 261 00:13:26,679 --> 00:13:28,079 Speaker 4: I'll ignore it for months. 262 00:13:28,160 --> 00:13:28,920 Speaker 5: So how do. 263 00:13:28,960 --> 00:13:29,520 Speaker 4: You use it? 264 00:13:29,559 --> 00:13:31,240 Speaker 3: Is it something that you're like, all right, well, it's 265 00:13:31,280 --> 00:13:33,320 Speaker 3: just on my browser and if I am shopping online, 266 00:13:33,360 --> 00:13:35,600 Speaker 3: I add it on. It's not something that you're you know, 267 00:13:35,880 --> 00:13:38,200 Speaker 3: we had a money diarist recently. He was like, oh, no, 268 00:13:38,320 --> 00:13:40,280 Speaker 3: I will buy absolutely. She probably would have tried to 269 00:13:40,280 --> 00:13:42,680 Speaker 3: buy the Tesla on shop back. If we've given her 270 00:13:42,720 --> 00:13:44,280 Speaker 3: the opportunity, I think. 271 00:13:44,440 --> 00:13:46,880 Speaker 4: Yeah, it's just connected to my browser. If I'm shopping 272 00:13:47,280 --> 00:13:50,360 Speaker 4: and it pops up, I'll use it. I've actually never 273 00:13:50,400 --> 00:13:53,360 Speaker 4: withdrawn anything from it, so it's just sitting there, just 274 00:13:53,400 --> 00:13:56,880 Speaker 4: bopping along. Yeah. Yeah, so there's no rhyme or reason, 275 00:13:56,920 --> 00:13:59,480 Speaker 4: and probably not using it to its full advantage, to 276 00:13:59,520 --> 00:14:02,080 Speaker 4: be honest, because yeah, very sporadic in what I do. 277 00:14:02,760 --> 00:14:07,400 Speaker 3: Fair enough money, diros. The next question is what is 278 00:14:07,480 --> 00:14:09,120 Speaker 3: your best money habit? 279 00:14:09,280 --> 00:14:12,360 Speaker 4: I think about purchases that I make a lot, the 280 00:14:12,400 --> 00:14:17,360 Speaker 4: big purchases, so like the car Loan, I really had 281 00:14:17,400 --> 00:14:20,840 Speaker 4: to think it over. We've been talking about it for 282 00:14:20,920 --> 00:14:25,080 Speaker 4: three plus months, maybe even longer than that. And I 283 00:14:25,200 --> 00:14:29,840 Speaker 4: don't buy really expensive items like with clothes. I'm not 284 00:14:30,000 --> 00:14:32,800 Speaker 4: out there buying designer things, even though a lot of 285 00:14:32,800 --> 00:14:36,440 Speaker 4: my friends have the nice Louis Vuitton handbags and stuff. 286 00:14:36,640 --> 00:14:39,800 Speaker 4: Happy to go to Collett or something like that, get 287 00:14:39,800 --> 00:14:40,720 Speaker 4: a fifty dollars. 288 00:14:40,480 --> 00:14:41,840 Speaker 3: Handbag, Yeah totally. 289 00:14:42,000 --> 00:14:46,120 Speaker 4: Yeah, I'm spending I guess within the brands that are 290 00:14:46,320 --> 00:14:47,680 Speaker 4: within our means. Yeah. 291 00:14:47,960 --> 00:14:51,600 Speaker 3: Fair And in comparison to that, what is your worst 292 00:14:51,800 --> 00:14:52,520 Speaker 3: money habit. 293 00:14:52,760 --> 00:14:55,560 Speaker 4: We don't keep track of what we're spending, and we 294 00:14:55,760 --> 00:14:58,720 Speaker 4: only have two well we have one bank account really, 295 00:14:59,120 --> 00:15:02,960 Speaker 4: so everything just gets pulled. It's really hard to keep 296 00:15:03,000 --> 00:15:06,520 Speaker 4: track of what you're saving, what you're spending. Yeah, what's 297 00:15:06,560 --> 00:15:09,360 Speaker 4: going in and out? Don't really have an idea? 298 00:15:09,640 --> 00:15:13,960 Speaker 3: Yeah yeah, and that's again so so common, Money Diarist. 299 00:15:14,280 --> 00:15:15,960 Speaker 3: I will sort that out for you. We're gonna get 300 00:15:15,960 --> 00:15:18,800 Speaker 3: you set up later on our Budgeting cash Flow Masterclass 301 00:15:18,960 --> 00:15:21,320 Speaker 3: because I think that that is going to revolutionize the 302 00:15:21,360 --> 00:15:24,480 Speaker 3: way that you do your budgeting. Obviously, I reckon it's 303 00:15:24,480 --> 00:15:27,760 Speaker 3: pretty impressive. I've built it so like obviously I've got 304 00:15:27,760 --> 00:15:30,760 Speaker 3: a few tickets on myself, but I've had literally thousands 305 00:15:30,800 --> 00:15:32,800 Speaker 3: of people do it and go oh my gosh, like 306 00:15:32,880 --> 00:15:35,320 Speaker 3: I only had one bank account and felt guilty about coffee, 307 00:15:35,320 --> 00:15:37,840 Speaker 3: and I'm like, oh, money diarist is going to love this. 308 00:15:39,040 --> 00:15:42,400 Speaker 3: And final question before we go to a quick break, 309 00:15:42,720 --> 00:15:45,160 Speaker 3: if we asked you to give yourself a money grade, 310 00:15:45,320 --> 00:15:47,200 Speaker 3: what would you give yourself? 311 00:15:47,720 --> 00:15:51,120 Speaker 4: I think a C plus just because we've been able 312 00:15:51,160 --> 00:15:54,600 Speaker 4: to do some really big things. But we're quite lucky 313 00:15:54,720 --> 00:15:57,040 Speaker 4: in the way that we've come about those big things. 314 00:15:57,080 --> 00:16:01,520 Speaker 4: It hasn't been rhyme or reason or determin nation on 315 00:16:01,640 --> 00:16:03,440 Speaker 4: our part to get those things done. 316 00:16:03,520 --> 00:16:06,160 Speaker 3: Yeah cool, All right, well let's have a chat about 317 00:16:06,160 --> 00:16:09,520 Speaker 3: that after this quick break. All right, money diarrist we 318 00:16:09,720 --> 00:16:14,200 Speaker 3: are straight back into it. And I've got questions, probably 319 00:16:14,280 --> 00:16:17,280 Speaker 3: not in the realm that you think I do. And 320 00:16:17,320 --> 00:16:20,000 Speaker 3: the reason is because I have had so many questions 321 00:16:20,040 --> 00:16:23,320 Speaker 3: about this recently, and that's on car loans and you've 322 00:16:23,320 --> 00:16:26,400 Speaker 3: said that you've recently taken one out. Can you tell 323 00:16:26,480 --> 00:16:29,680 Speaker 3: us that process how it worked, but also how much 324 00:16:29,720 --> 00:16:31,920 Speaker 3: are you paying each and every single month, because that 325 00:16:31,960 --> 00:16:33,920 Speaker 3: sounds like a really big car loan to me. 326 00:16:34,200 --> 00:16:37,680 Speaker 4: Yes, I found the process just as stressful as getting 327 00:16:37,680 --> 00:16:41,360 Speaker 4: our mortgage, to be honest, Oh my gosh, felt like 328 00:16:41,560 --> 00:16:43,920 Speaker 4: the same amount of paperwork and the same amount of 329 00:16:43,960 --> 00:16:46,960 Speaker 4: phone calls. It was intense. And I'm the only one 330 00:16:46,960 --> 00:16:49,720 Speaker 4: on the loon because my partner is a soul trader 331 00:16:49,760 --> 00:16:53,040 Speaker 4: with just twelve months under his belts, so it was 332 00:16:53,320 --> 00:16:57,480 Speaker 4: just on me a lot of paperwork asking about our expenses. 333 00:16:57,960 --> 00:17:01,480 Speaker 4: Our expenses came under the average, so I had a 334 00:17:01,520 --> 00:17:04,000 Speaker 4: lot of follow up phone calls as to why you 335 00:17:04,000 --> 00:17:07,600 Speaker 4: were like uncroogle, it's not that weird. I just said, oh, 336 00:17:07,680 --> 00:17:11,200 Speaker 4: we've got sol or we don't pay electricity bills. There 337 00:17:11,200 --> 00:17:14,600 Speaker 4: were just a few things that were confronting. I guess 338 00:17:14,920 --> 00:17:18,040 Speaker 4: because I asked what the average expense was and she 339 00:17:18,119 --> 00:17:20,200 Speaker 4: was like, oh, we can't tell you what the average 340 00:17:20,680 --> 00:17:21,360 Speaker 4: that we get. 341 00:17:21,520 --> 00:17:24,760 Speaker 3: Yeah, no, they won't disclose that. No, they won't let 342 00:17:24,840 --> 00:17:26,919 Speaker 3: you know what the average is because they want to 343 00:17:26,960 --> 00:17:29,679 Speaker 3: know what yours is, not what the average is. 344 00:17:30,320 --> 00:17:33,399 Speaker 4: So I actually thought we might have gone over because 345 00:17:33,440 --> 00:17:35,639 Speaker 4: when I was writing all of our expenses down it 346 00:17:35,720 --> 00:17:39,879 Speaker 4: seemed like a lot. But yeah, clearly not. So that 347 00:17:40,119 --> 00:17:43,760 Speaker 4: was good. And then Tesla has a partnership with Macquarie 348 00:17:43,800 --> 00:17:46,479 Speaker 4: and Peppers where the interest rate is two point nine 349 00:17:46,520 --> 00:17:48,360 Speaker 4: to nine percent for their loans. 350 00:17:48,920 --> 00:17:52,719 Speaker 3: Oh that's much lower than normal. I'm pretty sure a 351 00:17:52,760 --> 00:17:57,000 Speaker 3: fixed rate average car loan starts at about six point 352 00:17:57,040 --> 00:17:59,879 Speaker 3: four nine percent, so that's significantly below that. 353 00:18:00,320 --> 00:18:03,000 Speaker 4: Yeah, we did a lot of research with our bank 354 00:18:03,080 --> 00:18:06,280 Speaker 4: and called our bank manager and discussed our options with them, 355 00:18:06,320 --> 00:18:09,360 Speaker 4: and then our mortgage as well, and we decided that 356 00:18:09,440 --> 00:18:14,480 Speaker 4: option was better because of that interest rate. So our 357 00:18:14,960 --> 00:18:17,439 Speaker 4: fortnightly repayments had three hundred and fifty dollars. 358 00:18:17,760 --> 00:18:18,879 Speaker 5: Oh that's not as. 359 00:18:18,720 --> 00:18:21,119 Speaker 3: Bad as I thought. I mean, I'm not here saying 360 00:18:21,160 --> 00:18:24,199 Speaker 3: everybody it's not as bad, go get one. It's just 361 00:18:24,440 --> 00:18:27,760 Speaker 3: I assumed for a car at that price that you'd 362 00:18:27,760 --> 00:18:30,840 Speaker 3: have a higher fortnightly repayment. Does that loan have any 363 00:18:30,920 --> 00:18:32,119 Speaker 3: kind of balloon on it? 364 00:18:32,359 --> 00:18:36,320 Speaker 4: Yes, I forgot to mention that it has seventeen thousand 365 00:18:36,400 --> 00:18:37,720 Speaker 4: dollars I think is the balloon. 366 00:18:38,080 --> 00:18:38,280 Speaker 3: Yeah. 367 00:18:38,320 --> 00:18:41,240 Speaker 4: And we did a bit of research about resell on 368 00:18:41,320 --> 00:18:44,000 Speaker 4: Tesla's and what they're going for now and looked up 369 00:18:44,040 --> 00:18:47,119 Speaker 4: a few old ones. So we're pretty confident if in 370 00:18:47,240 --> 00:18:49,240 Speaker 4: five years when the loan ends it we would like 371 00:18:49,320 --> 00:18:52,040 Speaker 4: to sell that we will get that much or more 372 00:18:52,240 --> 00:18:54,200 Speaker 4: back for the car, as long as we take care 373 00:18:54,240 --> 00:18:55,359 Speaker 4: of it. Of course. 374 00:18:55,400 --> 00:18:57,640 Speaker 3: And if you're listening along and you're like, wait, what 375 00:18:57,680 --> 00:19:00,480 Speaker 3: I thought we were talking about car loans, not balloon animals. 376 00:19:00,840 --> 00:19:04,440 Speaker 3: A balloon is a payment that is held out till 377 00:19:04,480 --> 00:19:07,639 Speaker 3: the end of the loan period so that you have 378 00:19:07,920 --> 00:19:12,080 Speaker 3: lower fortnightly repayments fortnightly monthly, however you're paying it. So 379 00:19:12,280 --> 00:19:15,480 Speaker 3: instead of say, you know, our money dires paying five 380 00:19:15,600 --> 00:19:18,359 Speaker 3: or six hundred dollars a fortnight on her car loan, 381 00:19:18,720 --> 00:19:21,080 Speaker 3: she would be paying the three fifty, But when that 382 00:19:21,200 --> 00:19:24,199 Speaker 3: car loan term comes to the end, you've got to 383 00:19:24,280 --> 00:19:28,320 Speaker 3: pay out a full seventeen thousand dollars. And it's really 384 00:19:28,359 --> 00:19:31,320 Speaker 3: important to take that into consideration because the amount of 385 00:19:31,400 --> 00:19:34,080 Speaker 3: people I have spoken to were like, oh, yeah, there 386 00:19:34,119 --> 00:19:35,960 Speaker 3: was a balloon, like that's okay, And I'm like, do 387 00:19:36,000 --> 00:19:37,960 Speaker 3: you know that to a lump some payment at the 388 00:19:38,160 --> 00:19:40,639 Speaker 3: end of your loan term And They're like what, No, 389 00:19:41,680 --> 00:19:43,440 Speaker 3: I just thought that a balloon was just like some 390 00:19:43,480 --> 00:19:46,199 Speaker 3: technical term, and I'm like, no, it is a payment 391 00:19:46,240 --> 00:19:48,119 Speaker 3: that you're going to have to come up with a 392 00:19:48,200 --> 00:19:50,320 Speaker 3: money dires as you said, like, you're either going to 393 00:19:50,400 --> 00:19:52,920 Speaker 3: have to sell the car. You might have to refinance. 394 00:19:52,960 --> 00:19:56,199 Speaker 3: But in an ideal world, you'd have those savings to 395 00:19:56,320 --> 00:20:00,000 Speaker 3: extinguish that loan completely. But if you've got a car loan, 396 00:20:00,280 --> 00:20:02,560 Speaker 3: you probably don't have a seventeen and a half thousand 397 00:20:02,600 --> 00:20:05,320 Speaker 3: dollars savings account that you want to drain to pay 398 00:20:05,359 --> 00:20:08,360 Speaker 3: off the car in five years, right, Yeah, no way. 399 00:20:09,520 --> 00:20:12,280 Speaker 3: So it's important when it comes to stuff like carloans 400 00:20:12,320 --> 00:20:15,639 Speaker 3: that we do have a strategy in place. Now money 401 00:20:15,680 --> 00:20:19,600 Speaker 3: dirist to completely pivot. You said that you share finances 402 00:20:19,640 --> 00:20:22,680 Speaker 3: with your partner, which a lot of people do. And 403 00:20:22,720 --> 00:20:24,919 Speaker 3: you said as well that you are married, which is 404 00:20:25,080 --> 00:20:29,399 Speaker 3: very exciting. But how did you get to that point 405 00:20:29,440 --> 00:20:32,000 Speaker 3: with your partner and at what point in your relationship 406 00:20:32,000 --> 00:20:35,280 Speaker 3: were you like, you know what, let's share every single cent. 407 00:20:36,240 --> 00:20:38,399 Speaker 4: It was when we decided to build a house together, 408 00:20:38,600 --> 00:20:42,560 Speaker 4: so we had a joint bill's account before because we 409 00:20:42,680 --> 00:20:46,760 Speaker 4: had lived together for three years prior to deciding to 410 00:20:47,400 --> 00:20:51,119 Speaker 4: build a house. But yeah, it was only at the 411 00:20:51,160 --> 00:20:53,960 Speaker 4: point of getting a mortgage that we thought, hey, let's 412 00:20:54,040 --> 00:20:58,119 Speaker 4: join everything together. It was actually because we spoke it 413 00:20:58,119 --> 00:21:01,920 Speaker 4: to my parents about how they've managed their mortgage before 414 00:21:02,160 --> 00:21:07,000 Speaker 4: and learned about offset accounts and how they manage their spending. 415 00:21:07,080 --> 00:21:09,919 Speaker 4: And that made sense for me because I'm actually the 416 00:21:09,920 --> 00:21:13,680 Speaker 4: one that manages our money and bills, so that concept 417 00:21:14,000 --> 00:21:17,359 Speaker 4: was the easiest for me to understand. So I thought, hey, 418 00:21:17,560 --> 00:21:20,800 Speaker 4: let's just do the offset model and we'll join it 419 00:21:20,840 --> 00:21:21,320 Speaker 4: all together. 420 00:21:21,480 --> 00:21:24,399 Speaker 3: Yeah, awesome. And how have you found that? Like? Setting 421 00:21:24,480 --> 00:21:27,199 Speaker 3: it up for some people can be really daunting, being like, 422 00:21:27,240 --> 00:21:29,080 Speaker 3: oh my gosh, they're going to be able to see 423 00:21:29,240 --> 00:21:32,560 Speaker 3: every single thing that I spend. Have there been any 424 00:21:32,600 --> 00:21:36,320 Speaker 3: friction points or questions or queries about how each of 425 00:21:36,359 --> 00:21:38,480 Speaker 3: you are spending money, not from my. 426 00:21:38,760 --> 00:21:42,879 Speaker 4: Side, but it's probably because my partner doesn't. He doesn't 427 00:21:42,920 --> 00:21:43,800 Speaker 4: look at our accounts. 428 00:21:43,840 --> 00:21:47,879 Speaker 3: Really, it's not an issue because like when he can 429 00:21:47,920 --> 00:21:49,000 Speaker 3: see it, he doesn't. 430 00:21:49,359 --> 00:21:51,479 Speaker 4: Yeah, he just spends until it declines, and then I 431 00:21:51,520 --> 00:21:53,640 Speaker 4: get a phone call even though he has full access, 432 00:21:53,640 --> 00:21:55,760 Speaker 4: and he's like, hey, can you transfer some money? 433 00:21:56,400 --> 00:21:59,600 Speaker 3: So gosh, what a naughty boy. I feel like that's 434 00:21:59,640 --> 00:22:01,760 Speaker 3: such a man thing to do as well, like, oh, 435 00:22:01,760 --> 00:22:03,720 Speaker 3: I don't work out, I'll just call my wife and 436 00:22:03,760 --> 00:22:04,600 Speaker 3: she'll fix it up. 437 00:22:04,960 --> 00:22:10,000 Speaker 4: Yeah, yeah, he's he's naughty, but he just doesn't. I 438 00:22:10,000 --> 00:22:12,119 Speaker 4: guess he puts it on me because he knows that 439 00:22:12,240 --> 00:22:15,720 Speaker 4: I get worried about how much we're spending and I'm 440 00:22:15,760 --> 00:22:21,000 Speaker 4: really keeping track of bigger expenses. So yeah, to explain it, 441 00:22:21,200 --> 00:22:23,240 Speaker 4: how we manage our money, I guess is we have 442 00:22:23,320 --> 00:22:25,439 Speaker 4: the offset account. Then we have a credit card that 443 00:22:25,440 --> 00:22:27,639 Speaker 4: we pay off in full every month straight from the 444 00:22:27,640 --> 00:22:30,720 Speaker 4: offset account. Because all of our money pulls into the offset. 445 00:22:31,200 --> 00:22:33,320 Speaker 4: He just knows that I pay off the credit card 446 00:22:33,320 --> 00:22:35,800 Speaker 4: bill on the due date every month, so he knows 447 00:22:35,840 --> 00:22:38,480 Speaker 4: that money is there for him to spend, and I 448 00:22:38,560 --> 00:22:41,720 Speaker 4: will let him know if we're spending it looks like 449 00:22:41,800 --> 00:22:44,320 Speaker 4: it's going to go down faster than the next bill 450 00:22:44,359 --> 00:22:45,280 Speaker 4: payment comes around. 451 00:22:45,720 --> 00:22:49,920 Speaker 3: Yeah, okay, And has that system been working for you guys? 452 00:22:49,920 --> 00:22:52,240 Speaker 3: I know before you said that you feel a little 453 00:22:52,280 --> 00:22:54,800 Speaker 3: bit anxious about money, but that seems like a pretty 454 00:22:54,840 --> 00:22:58,000 Speaker 3: clear system. Like why do you think that you're still 455 00:22:58,040 --> 00:23:01,200 Speaker 3: feeling anxious around money and you're not tracking what you're spending. 456 00:23:01,280 --> 00:23:04,280 Speaker 3: If from my perspective in what you've just explained, you're 457 00:23:04,280 --> 00:23:05,320 Speaker 3: pretty on top of it. 458 00:23:05,320 --> 00:23:08,760 Speaker 4: It's because I can't see how much we're saving because 459 00:23:08,840 --> 00:23:11,800 Speaker 4: when he does need money sometimes with friends, he'll go 460 00:23:11,920 --> 00:23:14,960 Speaker 4: out and need some cash. He'll transfer it to an 461 00:23:15,000 --> 00:23:17,760 Speaker 4: empty account to take it out of an ATM, or 462 00:23:18,520 --> 00:23:21,480 Speaker 4: we will run down the credit card faster than the 463 00:23:21,520 --> 00:23:24,960 Speaker 4: next bill payments due. So we'll just put a one 464 00:23:24,960 --> 00:23:27,760 Speaker 4: thousand dollars on it and keep doing that out of 465 00:23:27,760 --> 00:23:30,479 Speaker 4: this big sum of money. So I think that it 466 00:23:30,560 --> 00:23:35,200 Speaker 4: doesn't give us any controls or it doesn't hold us accountable. 467 00:23:35,560 --> 00:23:38,680 Speaker 4: You just see that big sum of money and you're like, cool, 468 00:23:38,880 --> 00:23:42,800 Speaker 4: I'm fine, I know what bills are coming up. I've 469 00:23:42,800 --> 00:23:44,560 Speaker 4: got the money for the bills. So the rest of. 470 00:23:44,520 --> 00:23:45,880 Speaker 5: It is fair game game. 471 00:23:46,080 --> 00:23:48,240 Speaker 3: Yeah, yeah, And that seems to be the problem that 472 00:23:48,280 --> 00:23:50,400 Speaker 3: a lot of people run into because they're like Victoria, 473 00:23:50,520 --> 00:23:53,080 Speaker 3: I don't need a budget and cash flow plan because 474 00:23:53,240 --> 00:23:55,520 Speaker 3: I have one, Like I have cash in my account, 475 00:23:55,560 --> 00:23:58,040 Speaker 3: Why would I make all these other accounts that you 476 00:23:58,160 --> 00:24:01,440 Speaker 3: keep recommending because it just doesn't make sense, like I've 477 00:24:01,440 --> 00:24:03,879 Speaker 3: got the money, And it's like, yeah, but you just 478 00:24:03,920 --> 00:24:05,760 Speaker 3: told me that you don't feel comfortable with it. You 479 00:24:05,880 --> 00:24:08,679 Speaker 3: just told me that you're not feeling empowered by that 480 00:24:08,800 --> 00:24:11,440 Speaker 3: and that you don't know what you're saving. So something's 481 00:24:11,440 --> 00:24:14,719 Speaker 3: got to give. And clearly regardless of how efficient that 482 00:24:14,800 --> 00:24:17,720 Speaker 3: system sounds, because it is. And you know, we've spoken 483 00:24:17,760 --> 00:24:20,960 Speaker 3: on the show before about credit cards, and I obviously 484 00:24:21,080 --> 00:24:24,000 Speaker 3: don't love credit cards, and it's not because what you're 485 00:24:24,000 --> 00:24:26,880 Speaker 3: doing money direst is a bad thing. If you're actually 486 00:24:26,880 --> 00:24:29,639 Speaker 3: paying off your credit card each and every single month, great, 487 00:24:29,760 --> 00:24:31,919 Speaker 3: there are so many people that they do do that, 488 00:24:32,000 --> 00:24:34,400 Speaker 3: and they're building up, you know, nice amount of points 489 00:24:34,440 --> 00:24:37,040 Speaker 3: and they're able to, you know, go on extra flights 490 00:24:37,080 --> 00:24:39,879 Speaker 3: each year or like get some additional flybys, like our 491 00:24:39,920 --> 00:24:42,639 Speaker 3: friend Jess, who is going to get a kitchen aid mixer. 492 00:24:42,760 --> 00:24:45,720 Speaker 3: Very soon because she's just so good at scanning her flybys. 493 00:24:46,119 --> 00:24:49,440 Speaker 3: But it's a really slippery slope for a lot of people, 494 00:24:49,520 --> 00:24:51,639 Speaker 3: and I know personally, if I had a credit card, 495 00:24:52,400 --> 00:24:56,040 Speaker 3: it would not be a very good idea. It doesn't 496 00:24:56,080 --> 00:24:58,240 Speaker 3: mean that we don't have one, like my partner and 497 00:24:58,280 --> 00:25:00,840 Speaker 3: I have one for a really big expense, but I 498 00:25:00,920 --> 00:25:03,040 Speaker 3: choose not to keep a copy of it in my 499 00:25:03,520 --> 00:25:05,959 Speaker 3: wallet because I know that I'll just be a bit 500 00:25:06,040 --> 00:25:08,280 Speaker 3: cheeky and be like, oh, but I really like that skirt. 501 00:25:08,359 --> 00:25:10,160 Speaker 3: I'll just pop it on there and we can work 502 00:25:10,200 --> 00:25:12,960 Speaker 3: it out later and it'll be fine. And in reality, 503 00:25:13,080 --> 00:25:15,520 Speaker 3: that's not how I want to manage my money. I 504 00:25:15,560 --> 00:25:17,320 Speaker 3: want to be really in control of it, and if 505 00:25:17,359 --> 00:25:19,480 Speaker 3: I want to purchase a skirt, I want to have 506 00:25:19,520 --> 00:25:21,680 Speaker 3: a quick look at my spending account, like I go, oh, 507 00:25:21,800 --> 00:25:24,560 Speaker 3: I can afford that, And then there's no repercussions of 508 00:25:24,640 --> 00:25:28,119 Speaker 3: the decisions that I'm making because it was my spending money, 509 00:25:28,280 --> 00:25:31,280 Speaker 3: Like that's okay. It didn't impact Steve, it didn't impact 510 00:25:31,280 --> 00:25:33,880 Speaker 3: our saving or investment goals. It didn't impact us being 511 00:25:33,960 --> 00:25:36,800 Speaker 3: able to pay our mortgage, and it meant that I 512 00:25:36,840 --> 00:25:38,840 Speaker 3: feel pretty good because I got a new skirt. But 513 00:25:38,880 --> 00:25:41,200 Speaker 3: it was all in the budget and that's very exciting. 514 00:25:41,640 --> 00:25:43,640 Speaker 3: So I think that a lot of people really do 515 00:25:44,080 --> 00:25:47,960 Speaker 3: underestimate the power of what a budget is. And earlier 516 00:25:48,040 --> 00:25:51,040 Speaker 3: I said, the important thing when it comes to having 517 00:25:51,080 --> 00:25:55,240 Speaker 3: a budget is actually not that you restrict yourself money dio. 518 00:25:55,280 --> 00:25:57,360 Speaker 3: So I wouldn't want you to go, all right, Teresa, 519 00:25:57,440 --> 00:25:59,359 Speaker 3: we need a budget. Let's write down what we're going 520 00:25:59,400 --> 00:26:02,000 Speaker 3: to spend on groceries. We're going to spend fifty dollars 521 00:26:02,040 --> 00:26:05,200 Speaker 3: this week on groceries when in reality you usually spend 522 00:26:05,240 --> 00:26:08,080 Speaker 3: like one hundred and fifty dollars. It's not going to last, 523 00:26:08,119 --> 00:26:09,960 Speaker 3: it's not going to be sustainable. You're going to be like, 524 00:26:10,000 --> 00:26:13,600 Speaker 3: this is a terrible system because I really like buying 525 00:26:13,600 --> 00:26:16,240 Speaker 3: those things at the supermarket and my lifestyle is not 526 00:26:16,320 --> 00:26:17,199 Speaker 3: being maintained. 527 00:26:17,560 --> 00:26:18,480 Speaker 4: So it was. 528 00:26:18,480 --> 00:26:21,000 Speaker 3: Never going to work out that way. So I think 529 00:26:21,000 --> 00:26:24,200 Speaker 3: it's really important to put ourselves back in the driver's 530 00:26:24,200 --> 00:26:27,320 Speaker 3: seat and go what does that actually mean. Let's budget 531 00:26:27,320 --> 00:26:29,600 Speaker 3: for the things that we actually want to spend on. 532 00:26:30,440 --> 00:26:32,639 Speaker 3: So what money, diarist? What are you going to do 533 00:26:32,680 --> 00:26:36,080 Speaker 3: about that? You've written in as a diarist, you've said, Hey, 534 00:26:36,240 --> 00:26:39,320 Speaker 3: I'm not feeling very in control of this process. Have 535 00:26:39,440 --> 00:26:42,960 Speaker 3: you tried other budgeting methods? Have you thought about what 536 00:26:43,000 --> 00:26:44,800 Speaker 3: the next steps will do? Or are you just like, 537 00:26:44,960 --> 00:26:46,640 Speaker 3: do you know what? Don't even want to think about it. 538 00:26:46,720 --> 00:26:48,439 Speaker 3: I just know what underlyingly stresses me. 539 00:26:48,680 --> 00:26:52,640 Speaker 4: I have tried in the past to set up spending 540 00:26:52,680 --> 00:26:56,840 Speaker 4: accounts for just weekly stuff that I know my partner 541 00:26:56,840 --> 00:27:00,680 Speaker 4: and I spend on ourselves. So I did pitch that idea, Hey, 542 00:27:00,760 --> 00:27:02,919 Speaker 4: let's give ourselves one hundred and fifty dollars for the 543 00:27:02,920 --> 00:27:04,720 Speaker 4: week so I can grab coffee and if I want 544 00:27:04,720 --> 00:27:06,960 Speaker 4: an arm and croissant, I can get an arm and croissant, 545 00:27:07,359 --> 00:27:10,240 Speaker 4: and he can stop it like the servo and get 546 00:27:10,320 --> 00:27:14,560 Speaker 4: whatever gross energy drink that he wants in the morning. 547 00:27:15,880 --> 00:27:18,760 Speaker 4: And none of us feel like that we shouldn't be 548 00:27:18,800 --> 00:27:22,080 Speaker 4: doing that, but he was at the time. And I 549 00:27:22,119 --> 00:27:24,280 Speaker 4: haven't spoken to him about it in about a year 550 00:27:24,280 --> 00:27:27,080 Speaker 4: and a half, but at the time he was very 551 00:27:27,320 --> 00:27:30,119 Speaker 4: much why would we take money out of the offset? 552 00:27:30,640 --> 00:27:33,840 Speaker 4: It needs to be there to be pulling for that interest. 553 00:27:34,600 --> 00:27:38,840 Speaker 4: And I disagree, but I kind of left it because 554 00:27:38,840 --> 00:27:42,679 Speaker 4: I thought, let's leave it for now. I've broached the conversation. 555 00:27:43,040 --> 00:27:45,720 Speaker 3: It's an argument I'm not willing to have right now. 556 00:27:45,920 --> 00:27:49,600 Speaker 4: Yeah, so I guess me running in is probably because 557 00:27:49,600 --> 00:27:53,800 Speaker 4: I want to do something similar again, and I'll probably 558 00:27:53,800 --> 00:27:55,840 Speaker 4: get him to listen to this as well. 559 00:27:57,320 --> 00:27:58,040 Speaker 3: I'm sorry. 560 00:27:58,680 --> 00:28:01,440 Speaker 4: I think it's just with him, he's very much out 561 00:28:01,440 --> 00:28:04,440 Speaker 4: of sight, out of mind. Since you've been together, he's 562 00:28:04,440 --> 00:28:07,280 Speaker 4: gotten really good habits. But when we first got together, 563 00:28:07,320 --> 00:28:09,840 Speaker 4: he hadn't done his tax in like six years. So 564 00:28:11,119 --> 00:28:14,320 Speaker 4: it's just if it doesn't hurt him ignoring it, then 565 00:28:14,359 --> 00:28:17,280 Speaker 4: he'll probably ignore it. Like he's fine at the moment, 566 00:28:17,320 --> 00:28:19,560 Speaker 4: so he doesn't see a reason to change. But it's 567 00:28:19,560 --> 00:28:22,000 Speaker 4: stressing me so that I'll probably need to bring it 568 00:28:22,119 --> 00:28:22,440 Speaker 4: up again. 569 00:28:22,600 --> 00:28:26,520 Speaker 3: Yeah, and that's absolutely fair. Did you know money, dirist, 570 00:28:26,560 --> 00:28:27,840 Speaker 3: you can have more than one offset. 571 00:28:28,040 --> 00:28:30,439 Speaker 4: I did not know that you can have as. 572 00:28:30,320 --> 00:28:33,080 Speaker 3: Many offsets as you would like to have. And did 573 00:28:33,119 --> 00:28:36,320 Speaker 3: you also know that you can attach debit cards to offsets? 574 00:28:36,800 --> 00:28:38,440 Speaker 4: No, I had no idea about that. 575 00:28:38,520 --> 00:28:39,200 Speaker 5: Boom. 576 00:28:39,640 --> 00:28:42,480 Speaker 3: Imagine if that structure could be set up completely so 577 00:28:42,560 --> 00:28:45,440 Speaker 3: your partner gets everything he wants. You're right, the money's 578 00:28:45,480 --> 00:28:48,640 Speaker 3: always against the offset, but if you're going to spend it, 579 00:28:48,720 --> 00:28:50,959 Speaker 3: you actually have a debit card with that amount. Of 580 00:28:50,960 --> 00:28:53,320 Speaker 3: money on it. So that's not to say that every 581 00:28:53,360 --> 00:28:56,560 Speaker 3: single mortgage product is going to enable you to do that, 582 00:28:57,120 --> 00:29:00,120 Speaker 3: but there are heaps of mortgage products that if they 583 00:29:00,160 --> 00:29:03,520 Speaker 3: allow an offset, it's very very likely that they're going 584 00:29:03,520 --> 00:29:06,400 Speaker 3: to allow you to open multiple and have different debit 585 00:29:06,440 --> 00:29:09,719 Speaker 3: cards associated with them so that you can use offset 586 00:29:09,800 --> 00:29:13,320 Speaker 3: accounts as you would any other normal bank account. Because 587 00:29:13,360 --> 00:29:16,080 Speaker 3: I think that when we first get our first mortgage, 588 00:29:16,120 --> 00:29:18,959 Speaker 3: a lot of us just assume that the offset is 589 00:29:18,960 --> 00:29:21,880 Speaker 3: this like holy Grail account that sits in the sky 590 00:29:22,480 --> 00:29:24,840 Speaker 3: and you know you can't touch it, like you've got 591 00:29:24,840 --> 00:29:26,800 Speaker 3: to actually go online to move money from that to 592 00:29:26,840 --> 00:29:29,840 Speaker 3: your normal accounts, when in reality, you can actually have 593 00:29:29,920 --> 00:29:34,040 Speaker 3: debit cards associated with that, spend directly from that, or 594 00:29:34,320 --> 00:29:36,800 Speaker 3: create a number of them, so that all of your 595 00:29:36,800 --> 00:29:40,160 Speaker 3: goals and all of your separate saving goals are still 596 00:29:40,200 --> 00:29:43,040 Speaker 3: offsetting the mortgage. Because that makes sense, right, Like why 597 00:29:43,080 --> 00:29:45,240 Speaker 3: would we take it out to save it when those 598 00:29:45,280 --> 00:29:49,040 Speaker 3: savings are actually helping us create a better lifestyle outcome 599 00:29:49,160 --> 00:29:50,480 Speaker 3: in the long term. 600 00:29:50,480 --> 00:29:52,680 Speaker 4: It's so funny you say that because we have a 601 00:29:52,720 --> 00:29:55,240 Speaker 4: meeting with our bank manager tomorrow and we might actually 602 00:29:55,240 --> 00:29:58,280 Speaker 4: be getting rid of the offset because of the fixed 603 00:29:58,400 --> 00:30:02,360 Speaker 4: interest rates so real, I might ask him about the 604 00:30:02,640 --> 00:30:06,560 Speaker 4: numerous offset accounts, because yeah, it's something that my husband 605 00:30:06,640 --> 00:30:08,120 Speaker 4: was like, oh, I don't know about this. I know 606 00:30:08,200 --> 00:30:11,160 Speaker 4: we'll save money of our interest if we just fix 607 00:30:11,240 --> 00:30:13,560 Speaker 4: the whole loan, but I really like the offset account. 608 00:30:14,120 --> 00:30:18,040 Speaker 3: So yeah, and that's just it, Like, it's really important 609 00:30:18,360 --> 00:30:21,080 Speaker 3: to work out what works for you. And I'm not 610 00:30:21,120 --> 00:30:23,000 Speaker 3: going to be too pervy and ask which bank and 611 00:30:23,040 --> 00:30:25,400 Speaker 3: when and where and how, but it's one of those 612 00:30:25,440 --> 00:30:28,360 Speaker 3: things where that would just be that bank's rules. You 613 00:30:28,480 --> 00:30:32,120 Speaker 3: need to Actually, my advice here would be have a 614 00:30:32,120 --> 00:30:35,560 Speaker 3: conversation with a mortgage broker, not a mortgage broker who 615 00:30:35,640 --> 00:30:39,040 Speaker 3: works for the bank, one that's completely independent and has 616 00:30:39,120 --> 00:30:41,760 Speaker 3: access to a full suite of mortgage products. So they 617 00:30:41,840 --> 00:30:44,400 Speaker 3: can sit down and say, money diarist, what are your goals? 618 00:30:44,520 --> 00:30:44,959 Speaker 4: What do you want? 619 00:30:45,000 --> 00:30:47,520 Speaker 3: And you'll go, okay, cool, I want a variable interest rate. 620 00:30:47,560 --> 00:30:49,680 Speaker 3: Obviously interest rates right now are really low, so I 621 00:30:49,720 --> 00:30:51,720 Speaker 3: want to make use of that. Also, I want a 622 00:30:51,720 --> 00:30:53,760 Speaker 3: fair few offset accounts, so that would be a non 623 00:30:53,760 --> 00:30:56,760 Speaker 3: negotiable and they will go and find the right mortgage 624 00:30:56,760 --> 00:31:00,680 Speaker 3: product for you, because often when it comes to big 625 00:31:00,720 --> 00:31:04,400 Speaker 3: four banks, they don't have as much flexibility as you 626 00:31:04,440 --> 00:31:07,480 Speaker 3: would like them to have. And that's why I don't 627 00:31:07,480 --> 00:31:09,520 Speaker 3: have my mortgage with one of the big four banks, 628 00:31:09,600 --> 00:31:12,440 Speaker 3: because it just didn't work for me. I tried. I 629 00:31:12,600 --> 00:31:15,040 Speaker 3: bank normally with one of the big four banks just 630 00:31:15,040 --> 00:31:18,200 Speaker 3: because I'm lazy, and that's the bank that I've always 631 00:31:18,240 --> 00:31:20,479 Speaker 3: banked with and I just haven't moved away from it. 632 00:31:20,680 --> 00:31:23,080 Speaker 3: Don't have any fees on my account, so why fix 633 00:31:23,160 --> 00:31:26,560 Speaker 3: something that's not broken. But I remember going through that 634 00:31:26,800 --> 00:31:30,480 Speaker 3: entire process, and obviously I have deep relationships with mortgage brokers, 635 00:31:30,480 --> 00:31:33,040 Speaker 3: so I fully comprehend all of this. But I remember 636 00:31:33,080 --> 00:31:35,760 Speaker 3: going through that process and assuming that, do you know what, 637 00:31:36,480 --> 00:31:38,719 Speaker 3: just out of ease, it would be best to have 638 00:31:38,800 --> 00:31:41,160 Speaker 3: our mortgage with the bank that all our accounts are with. 639 00:31:41,520 --> 00:31:44,360 Speaker 3: And that's not the case now, purely because it wasn't 640 00:31:44,400 --> 00:31:46,080 Speaker 3: going to work for the things I wanted to get 641 00:31:46,080 --> 00:31:48,760 Speaker 3: out of it. So Money Diarist, in addition to talking 642 00:31:48,800 --> 00:31:51,520 Speaker 3: to your bank manager, have a chat with a good broker. 643 00:31:51,840 --> 00:31:54,320 Speaker 4: That's I never even thought of doing that, So definitely 644 00:31:54,320 --> 00:31:55,320 Speaker 4: we'll put that on the list. 645 00:31:55,480 --> 00:31:58,440 Speaker 3: I will set you up, my friend. I will absolutely 646 00:31:58,520 --> 00:31:59,080 Speaker 3: set you up. 647 00:31:59,120 --> 00:32:02,120 Speaker 2: Awesome, Well, it feels like this has come with the 648 00:32:02,160 --> 00:32:03,960 Speaker 2: perfect time for your Money Diarist. 649 00:32:04,480 --> 00:32:06,640 Speaker 5: And again, I know that we've said this a. 650 00:32:06,560 --> 00:32:09,080 Speaker 2: Few times recently, but this feels like one that we 651 00:32:09,120 --> 00:32:11,320 Speaker 2: would love to check in with again in a couple 652 00:32:11,320 --> 00:32:13,720 Speaker 2: of years, because it feels like you're right on the 653 00:32:13,840 --> 00:32:16,840 Speaker 2: edge of change and that's so much exciting stuff's going 654 00:32:16,920 --> 00:32:19,720 Speaker 2: to come for you guys that I feel like we 655 00:32:19,760 --> 00:32:23,080 Speaker 2: should check in with our Money Diarist again. 656 00:32:23,040 --> 00:32:26,880 Speaker 3: Keep in touch. I think we're best friends now. I'm convinced, of. 657 00:32:26,880 --> 00:32:28,040 Speaker 5: Course, of course we are. 658 00:32:28,280 --> 00:32:30,080 Speaker 2: But yeah, we should check in with you again because 659 00:32:30,080 --> 00:32:32,120 Speaker 2: it sounds like only good things are going to happen 660 00:32:32,120 --> 00:32:34,240 Speaker 2: and that you guys are like fully on the right track. 661 00:32:34,360 --> 00:32:37,200 Speaker 5: Especially I can't believe you've got that meeting tomorrow. How exciting. 662 00:32:37,880 --> 00:32:40,600 Speaker 3: I know, what a coincidence. The world works in very 663 00:32:40,600 --> 00:32:41,320 Speaker 3: funny ways. 664 00:32:41,840 --> 00:32:43,440 Speaker 4: I know it all came at the right time. 665 00:32:43,880 --> 00:32:46,280 Speaker 3: Oh, I'm really excited for you, and I'm going to 666 00:32:46,320 --> 00:32:48,200 Speaker 3: hook you up with one of my broker friends so 667 00:32:48,240 --> 00:32:50,000 Speaker 3: that you can have a chat with them and make 668 00:32:50,040 --> 00:32:53,240 Speaker 3: the right decision and get your structure done. But that's 669 00:32:53,280 --> 00:32:55,720 Speaker 3: always That is all we have time for today. 670 00:32:55,760 --> 00:32:56,680 Speaker 5: So just before we. 671 00:32:56,680 --> 00:32:59,880 Speaker 3: Head off, we'd like to acknowledge and pay respect towards 672 00:33:00,080 --> 00:33:04,760 Speaker 3: Ralia's aboriginal and tourist right islander peoples, the traditional custodians 673 00:33:04,760 --> 00:33:08,600 Speaker 3: of the lands, the waterways and the skies all across Australia. 674 00:33:08,920 --> 00:33:10,920 Speaker 3: We thank you for sharing and for caring for the 675 00:33:11,040 --> 00:33:13,640 Speaker 3: land on which we are able to learn. We pay 676 00:33:13,760 --> 00:33:16,360 Speaker 3: respect to orders passed and present, and we share our 677 00:33:16,400 --> 00:33:18,160 Speaker 3: friendship and our kindness. 678 00:33:18,560 --> 00:33:21,080 Speaker 2: The advice shared on She's on the Money is generally 679 00:33:21,200 --> 00:33:24,960 Speaker 2: nature and does not consider your individual circumstances. She's on 680 00:33:25,000 --> 00:33:28,240 Speaker 2: the Money exists purely for educational purposes and should not 681 00:33:28,280 --> 00:33:31,840 Speaker 2: be relied upon to make an investment or any financial decision. 682 00:33:32,160 --> 00:33:35,080 Speaker 2: And we promise as of ways that Victoria Divine is 683 00:33:35,080 --> 00:33:39,920 Speaker 2: an authorized representative of Australia Pacific Funds Management Proprietary Limited 684 00:33:39,960 --> 00:33:42,680 Speaker 2: ABN three four one three two four six three two 685 00:33:42,800 --> 00:33:46,280 Speaker 2: five seven AFSL three throw nine one five one See 686 00:33:46,280 --> 00:33:47,640 Speaker 2: you next week, guys. 687 00:33:47,920 --> 00:33:48,240 Speaker 3: Bye,