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Speaker 1: She's on the Money.

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Speaker 2: She's on the Money.

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Speaker 3: Hello, and welcome to She's on the Money, the podcast

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Speaker 3: for millennials who want financial freedom. This episode of the

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Speaker 3: show is brought to you by Australia's first ever smart Bank,

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Speaker 3: eighty six four hundred. My name is Georgia King, a

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Speaker 3: copywriter and TV assistant whose money smarts could definitely see

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Speaker 3: some improving and would seem I am in luck as

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Speaker 3: I am as always, joined by millennial money sweetheart, Miss

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Speaker 3: Victoria Dubine.

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Speaker 2: Hello, Jaki.

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Speaker 3: Alrighty, So today on the show, we are going to

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Speaker 3: be delving into the topical world of credit cards. The

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Speaker 3: average Australian has three two hundred and fifty eight dollars

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Speaker 3: on their credit card and whilst everyone says they're paying

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Speaker 3: them off, the stats here are telling us that only

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Speaker 3: one third of the debt on these cards gets paid

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Speaker 3: off each month. That's a whopping nine hundred and eighty

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Speaker 3: six dollars each and every single month. That is getting

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Speaker 3: our average oussie in to more debt. This topic has

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Speaker 3: also been a very juicy one in our community. But

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Speaker 3: before we dive right on in Victoria, let's chut money

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Speaker 3: wins and confessions.

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Speaker 2: How did you go this week?

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Speaker 4: I actually have a money confession for you guys this week.

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Speaker 4: Over the last couple of weeks, we have moved offices,

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Speaker 4: which is very exciting. But in our previous office, we

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Speaker 4: had a coffee machine in the kitchen which was brilliant

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Speaker 4: and everyone in the yeah, everyone in the office knew

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Speaker 4: how to make really great coffee. And moving I just

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Speaker 4: didn't think of that as something that was a priority,

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Speaker 4: which is not at this point in time. But I

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Speaker 4: didn't realize how expensive everyday coffees were going to be.

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Speaker 4: And so every day I'm now paying for coffees, and

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Speaker 4: I'm often finding myself paying for coffees for.

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Speaker 2: Other people in the office because every time they leave to.

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Speaker 4: Get one, I just say, hey, does anyone else want

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Speaker 4: a coffee? Because I feel bad if I'm just going

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Speaker 4: and helping myself, you know. And so these coffee bills

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Speaker 4: are actually starting to add up, and I'm now looking

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Speaker 4: at how to get a coffee machine in the office.

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Speaker 2: So maybe in a couple of weeks I could have

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Speaker 2: a money win for you.

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Speaker 3: Yeah, fingers crossed. Actually just on that seven to eleven

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Speaker 3: not sponsored guys. They've started doing soy Milk have they

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Speaker 3: actually their.

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Speaker 2: One dollar coffee.

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Speaker 3: Yeah, don't have to pay the impress I was very

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Speaker 3: excited and it tastes pretty good.

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Speaker 4: At what point in time do you think they'll start

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Speaker 4: doing oatmeal cruse a little bit during give it a

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Speaker 4: few years. Sorry, that's also why my coffee orders are

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Speaker 4: really expensive.

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Speaker 2: Gee, have you got a money win or confession for

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Speaker 2: me this week?

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Speaker 5: Do you?

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Speaker 2: Guys?

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Speaker 1: Minds the money winess?

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Speaker 3: So a few episodes ago, I confessed that I had

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Speaker 3: a I got a Mikey fine, which in Victoria is

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Speaker 3: the public transport fine for not tapping on, which.

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Speaker 2: Was irresponsible, so irresponsible.

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Speaker 3: I was done the wrong thing. I got the letter

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Speaker 3: in the mail this week, opened up the letter and

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Speaker 3: wat should be in there?

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Speaker 2: Guys?

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Speaker 1: But a warning I got? Are you kidding? Got let off?

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Speaker 2: You got a warning?

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Speaker 3: I got a warning because I hadn't had an offense

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Speaker 3: in like three years or ever.

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Speaker 2: It's like very may three dollars. I'm very impressed with that.

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Speaker 2: That is amazing.

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Speaker 4: I feel like I've been taking the mickey out of

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Speaker 4: you for a little while about getting a Mikey fine.

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Speaker 2: And now who's now who's looking silly? It's me?

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Speaker 1: Yeah, No, you're right.

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Speaker 3: And now let's take a quick look at the Facebook community,

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Speaker 3: which was impressive as always, Victoria.

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Speaker 1: Did anyone stand out to you this week?

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Speaker 2: Yes?

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Speaker 4: I actually have a favorite post, mainly because I really

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Speaker 4: resonated with it.

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Speaker 2: Our friend Mary posted a little bit earlier.

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Speaker 4: This month and said, if Jane Fonder can outfit repeat

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Speaker 4: at the Oscars, then we can wear the same outfit

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Speaker 4: to two different events.

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Speaker 2: Ladies. She says she's a proud outfit repeater over there.

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Speaker 4: And I couldn't agree more. I think, really, I think

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Speaker 4: outfit repeating is one of my favorite things to do.

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Speaker 4: And I am quite known in my friend group for

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Speaker 4: buying a dress and wearing it multiple times to multiple events. Yeah,

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Speaker 4: not caring who's at the event, Like there are no

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Speaker 4: rules here. Oh sorry, sorry you guys. You've seen this

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Speaker 4: dress before. No, I love this dress. I'm gonna wear it.

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Speaker 2: Until it wears Now. I hate Jane Fonder, Oh yeah, exactly.

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Speaker 4: And if I could be eighty two and looking that

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Speaker 4: sassy like, I'm here for this.

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Speaker 1: She's the hottest dady two year older of cinema life.

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Speaker 2: Gee, have you got something as equally impressive? I do?

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Speaker 3: Mineus Sunday who has written in Basically, all I do

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Speaker 3: in my spare time is read this page. Same goal,

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Speaker 3: but on Sunday, I decided to set a goal of

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Speaker 3: fifty thousand dollars in fifty weeks. So saving fifty thousand dollars,

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Speaker 3: that's impressive, a massive goal. I had about nine hundred

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Speaker 3: dollars in my savings, so I wanted this week to

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Speaker 3: be my week two. So to try and stay accountable,

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Speaker 3: I felt I needed to post here because you're also supportive,

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Speaker 3: which you guys are. I've decided to reach my goal

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Speaker 3: for fifty weeks. I will only buy secondhand or borrow

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Speaker 3: if I can only eat at home as much as possible.

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Speaker 3: Give up my eyelash extensions and stick on some falsas.

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Speaker 2: Oh that's a big one.

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Speaker 3: Pay insurance up front, sell the things I've been meaning

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Speaker 3: to sell for ages, make my dog's food and cut

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Speaker 3: their portions because they're overweight.

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Speaker 1: Only drink water or cordial.

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Speaker 3: No buying makeup, do my own pedicures instead of paying

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Speaker 3: a swap beauty services that I offer instead of payment

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Speaker 3: where I can.

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Speaker 2: Impressive.

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Speaker 3: Okay, so now let's get into the main part of

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Speaker 3: the show today. One point nine million Australians are struggling

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Speaker 3: with credit card debt and ACI that we are paying

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Speaker 3: a one point five billion in credit card fees that

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Speaker 3: includes annual fees, interest repayments, late payment fees and other

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Speaker 3: fees associated with credit card use. Victoria, Why are we

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Speaker 3: getting ourselves in such a big credit card pickle?

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Speaker 4: Whilst I love pickles, I do not love credit card pickles.

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Speaker 2: Off the top.

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Speaker 4: Of my head, I think that there are three main

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Speaker 4: rings in cities that I can just identify it here

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Speaker 4: and now. The first is, and I talk about this

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Speaker 4: all the time, like Morgan and I talk to people

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Speaker 4: each and every single week about credit card debt. And

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Speaker 4: the first thing is that it's just really easy to do.

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Speaker 4: It is so easy to spend money on a credit

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Speaker 4: card when you don't have anything associated with it, Like

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Speaker 4: you haven't been given a set amount of cash to spend,

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Speaker 4: but in your head, you know you've got a three

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Speaker 4: thousand dollar limit that you can max out. And whilst

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Speaker 4: a lot of people are like, oh, I only put

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Speaker 4: necessary things on my credit card, you are going to,

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Speaker 4: according to statistics and research, spend anywhere between fourteen and

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Speaker 4: twenty two percent more because you're using a credit card,

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Speaker 4: You're often more likely to just go, oh, I'll just

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Speaker 4: pop it on my card instead of making that same

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Speaker 4: decision had you had cash. So, for example, if you

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Speaker 4: had one hundred and fifty dollars budgeted for your weekly

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Speaker 4: family grocery shop, and you only had that one hundred

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Speaker 4: and fifty dollars in cash or just on a visa

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Speaker 4: debit card, and you were really aware of how much

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Speaker 4: money you had allocated to that shopping experience, you could

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Speaker 4: say you are probably going to pay really careful attention

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Speaker 4: to making sure that as you walk around the supermarket

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Speaker 4: you're picking things that are in line with the budget

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Speaker 4: that you have set. Whereas if you walk into the

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Speaker 4: same grocery store with a credit card that has a

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Speaker 4: three thousand dollar limit, there's no immediate penalty, there's no

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Speaker 4: one keeping you accountable, so you're just doing your grocery shop,

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Speaker 4: popping whatever in and oh, look, the vegan magnums are

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Speaker 4: on sale again this week.

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Speaker 2: I'll just throw it in the trolley. There's only three

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Speaker 2: per box.

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Speaker 4: Probably should get two boxes, make sense, and you are

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Speaker 4: likely to overspend without giving it much thought at all.

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Speaker 4: And that's the problem. Credit cards actually promote unconscious spending

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Speaker 4: and as a result, we end up spending more furthering

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Speaker 4: that actually g our friends over at finder dot com

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Speaker 4: dot au, which this isn't sponsored. I just really like

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Speaker 4: the status on their website. They have a really cool

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Speaker 4: chart that says that the average credit card purchase is

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Speaker 4: one hundred and eight dollars and four cents, whereas if

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Speaker 4: you were purchasing on a debit card, you'd only spend

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Speaker 4: forty six dollars and seventy five cents. And I think

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Speaker 4: that that just plays out quite well in terms of

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Speaker 4: the conversation we're having right now that you do actually

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Speaker 4: spend more on a credit card than you do on

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Speaker 4: a debit card, and I just think it's really unconscious.

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Speaker 4: So many times do people come in to me and

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Speaker 4: we do these hours of power, and it's often with

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Speaker 4: people who say, all right, I want to get better

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Speaker 4: at money, I want to change my money story, which

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Speaker 4: is fantastic, but often that is prompted by being in

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Speaker 4: some form of debt or being in a situation that

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Speaker 4: they no longer want to be in. And we sit

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Speaker 4: down with these people and not one person ever gets

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Speaker 4: a credit card to get into debt, Like no one

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Speaker 4: chooses that life. No one says, all right, well I'm

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Speaker 4: going to get a credit card because I want to

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Speaker 4: spiral out of control and not be in control of

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Speaker 4: my financial life. No one does that. We all get

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Speaker 4: it for a really good reason and.

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Speaker 1: Also a solution to a problem.

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Speaker 4: Exactly, it's a solution to an immediate problem. It makes

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Speaker 4: our lives easier at that point in time. We often go, oh,

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Speaker 4: but I'm going on a holiday and I want to

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Speaker 4: feel secure, or I have a whole heap of unifees

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Speaker 4: coming up, and I know that a credit card will

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Speaker 4: mean that I feel secure. Like often, getting a credit

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Speaker 4: card comes from a really wholesome place, but it takes

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Speaker 4: us somewhere we don't want to be, so for me,

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Speaker 4: that's really important to point out. And the second point

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Speaker 4: there is that using a credit card in a very

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Speaker 4: similar way to our one hundred and fifty dollars grocery

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Speaker 4: shop example, using a credit card has not very much

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Speaker 4: pain associated with it. So if you think about how

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Speaker 4: you had to when you were little, hand over cash

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Speaker 4: at the corner shop because you were given like five

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Speaker 4: dollars to spend on lollies or like one dollar to

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Speaker 4: spend on lolli's In my case, you were really budgeting.

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Speaker 4: You were thinking about how much of a value exchange

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Speaker 4: you could get for the money that you were handing over,

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Speaker 4: like oh, I could probably get like ten ghost drops

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Speaker 4: for a dollar, or yeah, how good were they?

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Speaker 2: Or I could get like some fizzzs, but fizzies.

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Speaker 4: Were twenty cents, yeach, So like you as a child

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Speaker 4: with thinking about the value exchange of your dollar, whereas nowadays,

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Speaker 4: when we have credit card there's absolutely no pain associated

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Speaker 4: with that. Whereas when you are given cash, you are

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Speaker 4: put in a situation where you are thinking about how

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Speaker 4: much money you're going to get back because you hand

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Speaker 4: something over and someone hands you back something worthless, and

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Speaker 4: that's never something appealing. So I don't want to give

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Speaker 4: you a fifty dollar note and break it and only

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Speaker 4: be handed back five dollars in change, especially if it's

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Speaker 4: in coins like that hurts. But I think it's really

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Speaker 4: important to point out that when you use a credit

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Speaker 4: card there's absolutely no pain involved. And whilst we are

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Speaker 4: very tap happy, we talk about having debit cards and

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Speaker 4: we tap all the time. Often with a debit card,

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Speaker 4: there's also a different mindset. How much is on our

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Speaker 4: debit card, because when it runs out, our tapping.

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Speaker 2: Won't go through.

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Speaker 4: You know, we'll be in a position where we'll be declined,

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Speaker 4: and that's kind of embarrassing. So often a lot of

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Speaker 4: us know what's on our debit cards, but we only

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Speaker 4: ever think of our credit cards as a limit we

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Speaker 4: can spend up to, so we are far more likely

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Speaker 4: to tap on a credit card and think about it

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Speaker 4: as a future us problem. But as I've said six

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Speaker 4: hundred million times, that's absolutely not a wild over estimation.

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Speaker 4: If you live fake rich now, you'll be real poor later.

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Speaker 4: And if you put yourself in a situation where you're

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Speaker 4: making a future use problem, future you is still you

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Speaker 4: and you need to be looking after her. And if

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Speaker 4: you are not looking after her, you are going to

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Speaker 4: be far, far further back than you ever wanted to

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Speaker 4: be in the future. And that third point that I

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Speaker 4: wanted to touch on is actually my favorite point to

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Speaker 4: talk about, and that's instant gratification versus long term gratification,

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Speaker 4: and a credit card gives us instant access to be

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Speaker 4: able to buy whatever we like and live the life

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Speaker 4: we want. Back to that fake read real poor example,

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Speaker 4: it just enables us to make decisions that we haven't

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Speaker 4: sat on. I talk about this a lot in our

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Speaker 4: Facebook group, and I'm a very big believer in putting

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Speaker 4: twenty four hours between you and your spending. So it's

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Speaker 4: more about making conscious spending decisions.

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Speaker 3: Does that mean if you really want to buy the

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Speaker 3: new pair of shoes, you decide you want it and

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Speaker 3: then wait for that period and then you're.

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Speaker 2: Good to go.

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Speaker 4: Just making sure that you really do want that and

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Speaker 4: it's not something a bit frivolously exactly, because it's so

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Speaker 4: easy to go out with your girlfriends on the weekend

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Speaker 4: for breakfast and see a pair of shoes that you

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Speaker 4: really like and just go, oh, I've had a really

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Speaker 4: good weekend. I'm going to purchase them. Or as if

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Speaker 4: you say, look, I can purchase them if I think

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Speaker 4: about this purchase for a little.

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Speaker 2: Bit longer really want it, if I really.

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Speaker 4: Really want it, And if you can stretch out that

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Speaker 4: time delay as long as you can, it's even better. So,

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Speaker 4: like I say, put twenty four hours between you and

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Speaker 4: you're spending, because that's a really easy tangible thing for

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Speaker 4: people to do. Or as if you can put a

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Speaker 4: month between you when you're spending, you're going to be

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Speaker 4: in an even better position. And often when I'm talking

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Speaker 4: to clients, they will say, oh, I really want this

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Speaker 4: new dress, and I'll be like, that is so great.

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Speaker 4: Tell me in a month that you still want that

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Speaker 4: new dress. And more often than not, they're like, oh, yeah,

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Speaker 4: it's not new anymore. I've seen it on Instagram a

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Speaker 4: couple of times. It is not something that I need

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Speaker 4: to purchase. It's not worth the two hundred dollars it

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Speaker 4: might cost me. Yeah, your rational mind come exactly. So,

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Speaker 4: the longer time period that you can put in between

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Speaker 4: you and your spending, the more likely you are to

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Speaker 4: actually not make that purchasing decision. We're not talking about

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Speaker 4: necessities here. We are obviously talking about discretion respending and

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Speaker 4: on shopping and brunch and clothes and whatever else. We

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Speaker 4: are definitely not saying.

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Speaker 2: Oh, put twenty four hours in between you and buying

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Speaker 2: hand wash.

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Speaker 1: Iive hand washed.

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Speaker 2: No, not eggs, maybe not coffee.

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Speaker 4: Like, let's not stretch this out too much, but I

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Speaker 4: think it's really important to actually put some time between

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Speaker 4: you and your spending when you are talking about making

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Speaker 4: some purchasing decisions that maybe aren't aligned to your bigger

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Speaker 4: financial goals.

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Speaker 3: I think it's also more subs flying as well. When

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Speaker 3: you've delayed, you just feel better for not having just

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Speaker 3: done it.

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Speaker 4: Yes, yes, I actually more personally, I often use spending

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Speaker 4: to reward my behavior, and that is absolutely not a

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Speaker 4: good thing to do. But I know that if I've

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Speaker 4: worked really, really hard and there's something that I really

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Speaker 4: would like to purchase, I'll often say to myself, well,

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Speaker 4: I can have that if I achieve this, this and this,

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Speaker 4: and I'll often make it a really big hurdle for

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Speaker 4: me to get over. So when I do get something,

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Speaker 4: I'm like, oh, I got this because of exact XYZ,

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Speaker 4: And I think for me that makes me feel good,

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Speaker 4: but also puts the importance back on spending, because in

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Speaker 4: this day and age, I really feel like spending on

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Speaker 4: clothes and shoes and things that we don't need is

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Speaker 4: really normalized.

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Speaker 3: So well, Instagram, I have guess, is to blame for

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Speaker 3: that as well.

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Speaker 4: Exactly We've spoken about it on the podcast before, but

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Speaker 4: it is actually not normal to have a new outfit

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Speaker 4: every single weekend to go out. It is not normal

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Speaker 4: to actually need a new dress every single time you

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Speaker 4: go to a new event, and it's not reasonable to

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Speaker 4: expect of people. And whilst I absolutely appreciate that, sometimes

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Speaker 4: we are in positions where cool a new dress is

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Speaker 4: going to make me feel really great, Like, can't we

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Speaker 4: shop our own wardrobes or our friends' wardrobes before we

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Speaker 4: start making decisions like that.

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Speaker 3: So you said earlier, Victoria, that no one gets a

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Speaker 3: credit card with the intention of accruing bucket loads of debt.

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Speaker 2: Not that I'm aware of anyway.

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Speaker 3: Weird, Why why are we struggling to pay off our

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Speaker 3: credit cards?

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Speaker 2: There are so many reasons for this.

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Speaker 4: I think that people are often too optimistic about their

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Speaker 4: future behavior. We don't actually factor in life events and

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Speaker 4: unexpected expenses. Too many times have I heard people say, oh,

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Speaker 4: but when I'm older, I'm going to earn more money,

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Speaker 4: or I'm going to get a pay rise, or I'm

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Speaker 4: going to save later, And I just feel like that

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Speaker 4: is noney realistic.

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Speaker 2: It's it's actually quite unrealistic. You're right.

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Speaker 4: Often people actually spend what they earn more often than not.

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Speaker 4: When I talk to clients, I talk to people, they

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Speaker 4: are spending exactly what they are earning. So regardless of

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Speaker 4: what that is, whether it's fifty thousand dollars, a year

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Speaker 4: or five hundred thousand dollars a year. I guarantee you

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Speaker 4: people find a way to spend the money that they

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Speaker 4: have coming into their account. And I have seen this

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Speaker 4: so many times, and I think that so many of

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Speaker 4: you would be really surprised to go, Wow, how does

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Speaker 4: someone who has an income of five hundred thousand dollars

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Speaker 4: spend that? Believe me, they can. That is and we've

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Speaker 4: talked about this g on the pod before. That is

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Speaker 4: called lifestyle creep. Whereas your income increases, your lifestyle increases

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Speaker 4: as well. So I gave the example a couple of

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Speaker 4: months ago that as you're spending increases, you go from

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Speaker 4: purchasing supermarket makeup all the way to purchasing makeup at

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Speaker 4: Mecca and justifying more expensive products, more expensive experiences, and

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Speaker 4: actually just putting yourself in a position where your lifestyle

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Speaker 4: costs more doesn't mean that you're happier, It doesn't mean

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Speaker 4: that anything is actually better. It just means you're making different,

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Speaker 4: more expensive decisions. So you go from a cheap car

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Speaker 4: to buying a really expensive car. You're still getting from

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Speaker 4: A to B and you haven't actually realized the impact

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Speaker 4: that purchasing that car has taken away from your ability

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Speaker 4: to create a future life. So it's not me saying, hey,

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Speaker 4: you shouldn't be spending money, it's actually, hey, are your

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Speaker 4: spending behaviors actually in line with your values and the

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Speaker 4: things that you want to achieve over your life.

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Speaker 2: So the thing with credit cards.

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Speaker 4: Is that for each and every single credit card that

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Speaker 4: you have, you need to be able to pay that

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Speaker 4: entire credit card off each month so that you're not

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Speaker 4: accruing interests. So it might be thirty days, it might

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Speaker 4: be forty five. I'm not going to argue on semantics here,

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Speaker 4: but for you to be able to pay off your

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Speaker 4: credit card and have no interest accrued, you have to

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Speaker 4: be doing that from your surplus income every single month.

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Speaker 4: So that is after you've saved, after you've invested, after

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Speaker 4: you've put food on the table, just to pay your

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Speaker 4: credit card off.

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Speaker 2: You need to make sure that.

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Speaker 4: If you've maxed out, you actually have that two thousand

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Speaker 4: dollars one thousand dollars five thousand dollars free and available

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Speaker 4: to put on the credit card to get rid of it.

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Speaker 4: And I think that that is something that we don't

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Speaker 4: actually think about when we get credit cards, like at

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Speaker 4: no point has anyone turned around and said, hey, Victoria,

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Speaker 4: if you're going to get a credit card, just make

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Speaker 4: sure that the credit card limit you have is only

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Speaker 4: your surplus cash. Like what, oh, well, I can only

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Speaker 4: have four hundred dollars surplus cash. Okay, Well, if you're

396
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Speaker 4: going to get a credit card, that's probably what your

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Speaker 4: credit card should look like.

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Speaker 2: And then so what's the point exactly what's the point?

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Speaker 4: Well, you're just going to get into debt, and that

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Speaker 4: is exactly how people get into debt because they get

401
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Speaker 4: their two thousand dollars credit card, and your credit card

402
00:17:23,160 --> 00:17:24,560
Speaker 4: is incredibly shiny.

403
00:17:24,240 --> 00:17:26,240
Speaker 2: It is incredibly appealing.

404
00:17:25,960 --> 00:17:28,600
Speaker 4: And David Jones is just down the road and like,

405
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Speaker 4: I've just got this credit card. I've been working really hard.

406
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Speaker 4: I deserve a new pair of shoes. And I think

407
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Speaker 4: that people run really quickly to put money on their

408
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Speaker 4: credit card, especially in the first instance of getting them,

409
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Speaker 4: and they know a lot of people are listening to this,

410
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Speaker 4: relating to this because it is so common. But then

411
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Speaker 4: we actually don't have the surplus cash to paid off,

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Speaker 4: so we pay off the minimum, and then we go

413
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Speaker 4: into a position where we are paying off the minimum

414
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Speaker 4: each and every single month but we aren't actually getting

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Speaker 4: into the capital of it and paying down what we

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Speaker 4: actually owe. And that is how it compounds completely out

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Speaker 4: of control. Have you seen it go completely out of

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Speaker 4: control with any of your clients?

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Speaker 2: Absolutely, And they're not clients. Now.

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Speaker 4: I'm going to give an example here of someone who

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Speaker 4: didn't actually want to come on as a client because

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Speaker 4: they weren't ready to actually face that issue. But we

423
00:18:13,960 --> 00:18:17,159
Speaker 4: were talking to someone who had come in and we

424
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Speaker 4: had a couple of meetings with them, and we created

425
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Speaker 4: this complete debt reduction strategy. But as a couple, they

426
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Speaker 4: were in one hundred and sixty thousand dollars worth of

427
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Speaker 4: credit card and personal debt. So we're not talking like, oh,

428
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Speaker 4: I've got fifteen thousand dollars on my credit card. They

429
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Speaker 4: had one hundred and sixty thousand dollars spread between them.

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Speaker 4: And when they came in to me, they were like, oh,

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Speaker 4: we've got some credit card debt.

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Speaker 2: And I was like, yep, no problems, yep. We all

433
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Speaker 2: start somewhere. And they didn't actually know the sum of

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Speaker 2: what they were in debt to.

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Speaker 4: They couldn't articulate to me what was going on, and

436
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Speaker 4: so how much credit card debt have you got And

437
00:18:50,600 --> 00:18:52,919
Speaker 4: the wife said, look, I think it's about twenty thousand

438
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Speaker 4: dollars and the husband was like yeah, and I've got

439
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Speaker 4: a ten thousand dollar credit card. And I was like, okay,

440
00:18:57,280 --> 00:19:00,480
Speaker 4: no problems, Like, can you start sending me the statements then,

441
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Speaker 4: and I'll just make a spreadsheet. We'll just get on

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Speaker 4: top of this so we can start smashing it down.

443
00:19:05,200 --> 00:19:08,240
Speaker 4: And the statements kept coming in, and then there was

444
00:19:08,280 --> 00:19:10,680
Speaker 4: another card, and there was another card, and then there

445
00:19:10,720 --> 00:19:14,040
Speaker 4: was a personal loan, and then there was another personal loan.

446
00:19:14,200 --> 00:19:17,480
Speaker 4: And we looked at their situation and it was honestly

447
00:19:17,600 --> 00:19:21,480
Speaker 4: heartbreaking because they were living a lifestyle that they once had,

448
00:19:21,720 --> 00:19:24,600
Speaker 4: so they once had the capacity to spend that money.

449
00:19:25,040 --> 00:19:28,200
Speaker 4: But when they moved, they changed their jobs, they changed

450
00:19:28,240 --> 00:19:32,960
Speaker 4: their lifestyles into a lifestyle that wasn't actually aligned to

451
00:19:33,040 --> 00:19:35,600
Speaker 4: what they were earning. So I think in the end

452
00:19:35,640 --> 00:19:38,720
Speaker 4: they actually had a situation where they had an income

453
00:19:39,000 --> 00:19:41,800
Speaker 4: of one hundred thousand dollars between them. That was the

454
00:19:41,840 --> 00:19:44,240
Speaker 4: money that was going into their accounts each and every

455
00:19:44,280 --> 00:19:48,280
Speaker 4: single year, so total hundred thousand dollars, and then they

456
00:19:48,359 --> 00:19:52,440
Speaker 4: had ninety thousand dollars every year in credit card repayments

457
00:19:52,480 --> 00:19:54,800
Speaker 4: to pay. So they only had ten thousand dollars of

458
00:19:54,840 --> 00:19:57,960
Speaker 4: surplus cash for food, for their fuel, for their rent,

459
00:19:58,080 --> 00:20:01,120
Speaker 4: for their mortgage for two of them, and they had children,

460
00:20:01,640 --> 00:20:04,960
Speaker 4: and so every single time that they would spend money,

461
00:20:05,000 --> 00:20:06,320
Speaker 4: it had to be on a credit card because they

462
00:20:06,320 --> 00:20:09,119
Speaker 4: didn't actually have any access to any money to spend

463
00:20:09,320 --> 00:20:10,080
Speaker 4: in cash.

464
00:20:10,280 --> 00:20:11,840
Speaker 3: So what are you meant to do when you get

465
00:20:11,840 --> 00:20:12,720
Speaker 3: to that spot.

466
00:20:12,960 --> 00:20:15,040
Speaker 4: You actually need to see a financial advisor, You need

467
00:20:15,080 --> 00:20:17,080
Speaker 4: some debt counseling, like, you actually need to.

468
00:20:17,000 --> 00:20:17,719
Speaker 2: Get out of that.

469
00:20:19,119 --> 00:20:23,000
Speaker 4: It's not just a deep hole, it's a heartbreaking hole.

470
00:20:23,080 --> 00:20:24,359
Speaker 2: It is one that you were in.

471
00:20:24,400 --> 00:20:26,960
Speaker 4: That you can get out of, Like, it is absolutely

472
00:20:26,960 --> 00:20:29,239
Speaker 4: possible to get out of that situation. You just have

473
00:20:29,280 --> 00:20:31,719
Speaker 4: to be committed to getting out of that situation and

474
00:20:31,800 --> 00:20:34,440
Speaker 4: make some really tough calls. So the call for that

475
00:20:34,680 --> 00:20:38,760
Speaker 4: client or that couple was to actually sell their family home,

476
00:20:38,960 --> 00:20:41,919
Speaker 4: which they thankfully had enough equity in that if we

477
00:20:42,040 --> 00:20:45,199
Speaker 4: completely sold that home, they would be able to extinguish

478
00:20:45,280 --> 00:20:47,800
Speaker 4: most of their debt and then then have a few

479
00:20:47,800 --> 00:20:50,359
Speaker 4: extra payments that they needed to make which would be

480
00:20:50,440 --> 00:20:53,000
Speaker 4: manageable over the next five years. So they could be

481
00:20:53,040 --> 00:20:55,439
Speaker 4: one hundred percent debt free and not have to declare

482
00:20:55,480 --> 00:20:59,200
Speaker 4: bankruptcy because if they declare bankruptcy, you'd lose your assets anyway.

483
00:21:00,440 --> 00:21:03,080
Speaker 4: So they were in this position, but at that point

484
00:21:03,119 --> 00:21:05,520
Speaker 4: in time, they just were not ready to commit to

485
00:21:05,560 --> 00:21:09,840
Speaker 4: the change. And sometimes you just can't help people who

486
00:21:09,840 --> 00:21:12,520
Speaker 4: aren't willing to help themselves. I refer them to a

487
00:21:12,600 --> 00:21:15,760
Speaker 4: number of financial counselors, and I definitely check in occasionally

488
00:21:15,800 --> 00:21:19,199
Speaker 4: to make sure that they're okay, But sometimes there's just

489
00:21:19,240 --> 00:21:21,399
Speaker 4: not much I can do if that person is not

490
00:21:21,480 --> 00:21:22,679
Speaker 4: willing to help themselves.

491
00:21:22,920 --> 00:21:24,600
Speaker 3: So, is the only way you can get out of

492
00:21:24,640 --> 00:21:26,960
Speaker 3: a debt that large to sell your family home?

493
00:21:27,000 --> 00:21:27,880
Speaker 1: Is that our only option.

494
00:21:28,480 --> 00:21:32,000
Speaker 4: These guys were actually really lucky to have an asset

495
00:21:32,040 --> 00:21:35,119
Speaker 4: that had enough equity that would allow them to get out.

496
00:21:35,000 --> 00:21:35,520
Speaker 2: Of that debt.

497
00:21:35,560 --> 00:21:37,440
Speaker 4: So now I'm not saying, hey, if you're in debt,

498
00:21:37,480 --> 00:21:39,760
Speaker 4: go sell your home and get out of it that way.

499
00:21:40,040 --> 00:21:42,399
Speaker 4: You do actually need to seek advice. And this is

500
00:21:42,480 --> 00:21:45,600
Speaker 4: only coming out of me doing some pretty serious analysis

501
00:21:45,640 --> 00:21:48,720
Speaker 4: and sitting down with a mortgage broker and actually working

502
00:21:48,760 --> 00:21:51,159
Speaker 4: out what their ability to get out of debt is.

503
00:21:51,560 --> 00:21:54,960
Speaker 4: Because we looked into debt consolidation, we looked into every

504
00:21:55,000 --> 00:21:57,840
Speaker 4: single option available to them, but because of the level

505
00:21:57,880 --> 00:22:00,879
Speaker 4: of debt, no bank was willing to touch them. They

506
00:22:00,920 --> 00:22:03,679
Speaker 4: were not willing to refinance them, so we had to

507
00:22:03,680 --> 00:22:06,240
Speaker 4: do something more drastic. So if you're in a situation

508
00:22:06,320 --> 00:22:09,439
Speaker 4: and you actually don't have access to capital in an

509
00:22:09,440 --> 00:22:12,800
Speaker 4: asset like a home, then you do need to seek alternatives.

510
00:22:13,040 --> 00:22:15,000
Speaker 4: And if you have debt and you have a home,

511
00:22:15,040 --> 00:22:17,240
Speaker 4: that does not necessarily mean that you need to get

512
00:22:17,320 --> 00:22:18,960
Speaker 4: rid of your home to get rid of debt. That

513
00:22:19,119 --> 00:22:22,320
Speaker 4: is a really drastic example that I really wanted to

514
00:22:22,359 --> 00:22:25,400
Speaker 4: bring to light here because I think that people go, oh, look,

515
00:22:25,440 --> 00:22:27,640
Speaker 4: I'm in thirty thousand dollars worth of credit card debt.

516
00:22:27,680 --> 00:22:30,720
Speaker 2: It's not that bad. But over time, credit card.

517
00:22:30,640 --> 00:22:33,640
Speaker 4: Debt spirals out of control, and we start to fill

518
00:22:33,680 --> 00:22:35,760
Speaker 4: out of control, and we bury our heads in the

519
00:22:35,760 --> 00:22:38,080
Speaker 4: sand and we don't do anything about it while our

520
00:22:38,080 --> 00:22:40,879
Speaker 4: debt gets worse. I always jump up and down about

521
00:22:40,880 --> 00:22:44,359
Speaker 4: how great investing is, and I talk about how on

522
00:22:44,560 --> 00:22:48,200
Speaker 4: average money doubles every seven to ten years, and that's

523
00:22:48,240 --> 00:22:51,480
Speaker 4: really exciting, and people get so excited about that. But

524
00:22:51,720 --> 00:22:55,160
Speaker 4: the same happens for debt, just in reverse. So your

525
00:22:55,160 --> 00:22:58,159
Speaker 4: debt will compound every seven to ten years. So if

526
00:22:58,160 --> 00:23:00,880
Speaker 4: today you're in ten thousand dollars worth credit card debt

527
00:23:01,040 --> 00:23:03,800
Speaker 4: and there's interest accruing on it in ten years, I

528
00:23:03,840 --> 00:23:06,600
Speaker 4: can pretty much guarantee that that debt is going to

529
00:23:06,640 --> 00:23:08,760
Speaker 4: be sitting at twenty thousand dollars if you're not doing

530
00:23:08,760 --> 00:23:12,200
Speaker 4: anything about it. And that's absolutely not taking into consideration

531
00:23:12,280 --> 00:23:14,320
Speaker 4: that a lot of credit cards have twenty two percent

532
00:23:14,400 --> 00:23:17,320
Speaker 4: interest rates, like your debt could double in a couple

533
00:23:17,320 --> 00:23:20,440
Speaker 4: of years, not ten years. I sound very desperate when

534
00:23:20,440 --> 00:23:22,800
Speaker 4: I'm talking about this, and that this is a massive issue,

535
00:23:22,800 --> 00:23:25,520
Speaker 4: but it is like, too often do I see young

536
00:23:25,560 --> 00:23:28,760
Speaker 4: women who have turned eighteen and got their first credit

537
00:23:28,800 --> 00:23:31,520
Speaker 4: card and it is a means of freedom to them,

538
00:23:31,920 --> 00:23:34,520
Speaker 4: that this freedom card ends up getting them in a

539
00:23:34,560 --> 00:23:36,840
Speaker 4: lot more trouble and doesn't give them freedom at a.

540
00:23:40,080 --> 00:23:42,520
Speaker 3: Hi. There, you've reached the shoes on the money mailbox.

541
00:23:42,680 --> 00:23:44,479
Speaker 3: Do you have a money problem you want help solving.

542
00:23:44,640 --> 00:23:46,240
Speaker 3: Do you have a money dilemma you just want to

543
00:23:46,280 --> 00:23:49,520
Speaker 3: chat about. Victoria is here to help. Every week, We'll

544
00:23:49,520 --> 00:23:51,560
Speaker 3: be playing your questions to help make sense of a

545
00:23:51,560 --> 00:23:53,639
Speaker 3: money mess you may have found yourself in. Make a

546
00:23:53,720 --> 00:23:55,720
Speaker 3: quick recording on your phone and send it through to

547
00:23:55,800 --> 00:23:58,560
Speaker 3: podcast at shoes Ondthmoney dot com dot ahu and you

548
00:23:58,640 --> 00:24:01,040
Speaker 3: might find yourself on the show. But for now, here's

549
00:24:01,040 --> 00:24:02,040
Speaker 3: today's listener question.

550
00:24:02,920 --> 00:24:05,439
Speaker 5: Hey, Victoria, I have a credit card that I'm really

551
00:24:05,480 --> 00:24:08,080
Speaker 5: struggling to pay off. Keeping up with the interest payments

552
00:24:08,080 --> 00:24:10,840
Speaker 5: is hard enough, let alone paying it off completely? What

553
00:24:10,880 --> 00:24:13,560
Speaker 5: if I just don't pay? What can happen? Can I

554
00:24:13,600 --> 00:24:14,040
Speaker 5: be sued?

555
00:24:14,440 --> 00:24:14,720
Speaker 2: Thanks?

556
00:24:14,760 --> 00:24:18,760
Speaker 3: Ladies, Victoria, I'm handling this one straight over to you

557
00:24:18,760 --> 00:24:20,680
Speaker 3: because I don't know can you be sued? I don't

558
00:24:20,680 --> 00:24:22,960
Speaker 3: have a credit card, and I'm thankful that I don't

559
00:24:22,960 --> 00:24:25,680
Speaker 3: because the scares You're a smart, smart lady. Gee, I'm

560
00:24:25,680 --> 00:24:28,320
Speaker 3: just scared of them, and I think rightfully so after

561
00:24:28,320 --> 00:24:29,480
Speaker 3: this episode.

562
00:24:29,080 --> 00:24:31,199
Speaker 4: Yeah, look, I feel like this episode has been a

563
00:24:31,200 --> 00:24:34,639
Speaker 4: little bit of a scared tactic. You could say, yeah,

564
00:24:34,680 --> 00:24:37,119
Speaker 4: but no, what happens if you can't pay them? A

565
00:24:37,160 --> 00:24:39,760
Speaker 4: lot actually happens, and there are a number of consequences

566
00:24:39,800 --> 00:24:43,560
Speaker 4: associated with that. Also, if you miss subsequent payments, you

567
00:24:43,600 --> 00:24:46,200
Speaker 4: could actually be paid late fees each and every single

568
00:24:46,200 --> 00:24:49,480
Speaker 4: month that you miss them, and those actually compound, those

569
00:24:49,520 --> 00:24:52,840
Speaker 4: fees are added to your balance, they end up accumulating

570
00:24:52,920 --> 00:24:56,040
Speaker 4: interest as well. So it's just one thing after another,

571
00:24:56,119 --> 00:24:58,840
Speaker 4: you know how saying that credit card debt compounds, Yeah,

572
00:24:58,920 --> 00:25:01,920
Speaker 4: it compounds fuck than you thought it would. Some credit

573
00:25:02,000 --> 00:25:05,600
Speaker 4: card issuers will actually let you waive those payment fees

574
00:25:05,640 --> 00:25:07,840
Speaker 4: after your first violation, or if you contact them and

575
00:25:07,840 --> 00:25:10,159
Speaker 4: say hey, I'm really sorry, I didn't mean that and

576
00:25:10,280 --> 00:25:13,920
Speaker 4: pay quite promptly. Often there is a level of flexibility there.

577
00:25:14,040 --> 00:25:17,400
Speaker 4: If it is your quote first offense, it will negatively

578
00:25:17,440 --> 00:25:19,600
Speaker 4: impact your credit score if you don't pay off your

579
00:25:19,600 --> 00:25:21,880
Speaker 4: credit card. So if you're really good at paying off

580
00:25:21,880 --> 00:25:24,200
Speaker 4: your credit card, it's not going to impact it here

581
00:25:24,320 --> 00:25:27,360
Speaker 4: nor there. But in saying that, there is an absolute

582
00:25:27,440 --> 00:25:30,760
Speaker 4: myth in the industry or in Australia that you need

583
00:25:30,840 --> 00:25:33,679
Speaker 4: to have a credit card to create a credit score,

584
00:25:33,880 --> 00:25:37,399
Speaker 4: and that is entirely incorrect. So here in Australia, you

585
00:25:37,480 --> 00:25:40,119
Speaker 4: do not need a credit card to create a credit score.

586
00:25:40,160 --> 00:25:41,880
Speaker 4: You actually just need to be really good at paying

587
00:25:41,880 --> 00:25:43,879
Speaker 4: your bills on time and making sure that you're not

588
00:25:43,920 --> 00:25:46,840
Speaker 4: getting into debt and having no credit card actually looks

589
00:25:46,880 --> 00:25:50,680
Speaker 4: better in Australia than having one does. And I think

590
00:25:50,720 --> 00:25:53,600
Speaker 4: that this negative perception or this myth has actually come

591
00:25:53,640 --> 00:25:56,199
Speaker 4: from America where how you actually need to build a

592
00:25:56,200 --> 00:25:59,399
Speaker 4: credit score and going into debt and having personal loans

593
00:25:59,400 --> 00:26:02,000
Speaker 4: and having credit cards actually helps you create a credit

594
00:26:02,000 --> 00:26:04,760
Speaker 4: score in America, whereas that is not the system in

595
00:26:04,800 --> 00:26:07,440
Speaker 4: Australia at all. And I think it's actually really important

596
00:26:07,440 --> 00:26:09,520
Speaker 4: to bring that up here, g because you just said

597
00:26:09,600 --> 00:26:12,120
Speaker 4: something about credit scores and I was like, no, actually

598
00:26:12,480 --> 00:26:13,400
Speaker 4: not the case at all.

599
00:26:13,720 --> 00:26:15,399
Speaker 1: What do we need credit scores for? Is that to

600
00:26:15,480 --> 00:26:15,840
Speaker 1: my house?

601
00:26:16,400 --> 00:26:18,359
Speaker 4: Yeah, so they look at it when you purchase home.

602
00:26:18,680 --> 00:26:21,480
Speaker 4: Things like zipay actually show up on your credit score,

603
00:26:21,760 --> 00:26:23,920
Speaker 4: so that is a form of debt. Credit cards show

604
00:26:23,960 --> 00:26:26,840
Speaker 4: off on your credit score. The amount of times that

605
00:26:27,640 --> 00:26:29,840
Speaker 4: the amount of times that your credit score has been

606
00:26:29,920 --> 00:26:32,280
Speaker 4: checked shows up on your credit score, so it can

607
00:26:32,320 --> 00:26:34,720
Speaker 4: be a negative if it's been checked too many times.

608
00:26:34,880 --> 00:26:37,720
Speaker 4: And things like getting a new phone plan will check

609
00:26:37,760 --> 00:26:40,000
Speaker 4: your credit score. So each and every single time you

610
00:26:40,040 --> 00:26:41,880
Speaker 4: sign up to something or sign up to a new

611
00:26:41,920 --> 00:26:45,160
Speaker 4: debt or a reoccurring direct debit, often your credit score

612
00:26:45,200 --> 00:26:47,760
Speaker 4: will be checked. So just be wary of those things.

613
00:26:47,800 --> 00:26:49,720
Speaker 4: We can talk about it on a later podcast. It

614
00:26:49,840 --> 00:26:52,840
Speaker 4: is literally a whole new ballgame and probably a podcast

615
00:26:52,880 --> 00:26:56,679
Speaker 4: worthy of consideration. But definitely don't need to have a

616
00:26:56,680 --> 00:26:59,520
Speaker 4: credit card to increase your credit score, and it can

617
00:26:59,560 --> 00:27:02,440
Speaker 4: actually negatively impact it when we actually get them, because

618
00:27:02,440 --> 00:27:03,960
Speaker 4: we think it'll be a positive thing and.

619
00:27:03,920 --> 00:27:04,800
Speaker 2: It's just not the case.

620
00:27:07,800 --> 00:27:10,359
Speaker 3: Okay, now for the fun stuff. What good would a

621
00:27:10,400 --> 00:27:13,080
Speaker 3: money podcast be without the perby bits. It's time for

622
00:27:13,160 --> 00:27:14,760
Speaker 3: money diaries. Let's get into it.

623
00:27:14,800 --> 00:27:19,840
Speaker 6: I'm twenty six in evolving and I work as an

624
00:27:19,880 --> 00:27:25,400
Speaker 6: associate within the financial technology services industry, and I have

625
00:27:25,800 --> 00:27:29,160
Speaker 6: a on and off relationship with money, something that I'm

626
00:27:29,200 --> 00:27:30,600
Speaker 6: working on bettering.

627
00:27:30,760 --> 00:27:32,840
Speaker 3: Today's money diary is from a twenty six year old

628
00:27:32,840 --> 00:27:34,879
Speaker 3: who's got myself into a little bit of a pickle

629
00:27:34,920 --> 00:27:36,800
Speaker 3: with a credit card and a few personal loans.

630
00:27:37,040 --> 00:27:41,320
Speaker 6: My current money situation is fairly scattered. I've managed to

631
00:27:41,600 --> 00:27:44,639
Speaker 6: create a fair bit of debt, some of which comes

632
00:27:44,680 --> 00:27:47,080
Speaker 6: from a business that I created about two and a

633
00:27:47,119 --> 00:27:50,960
Speaker 6: half years ago. In addition to that, I have also

634
00:27:51,400 --> 00:27:54,520
Speaker 6: got a credit card, I have a personal loan, a

635
00:27:54,960 --> 00:27:59,120
Speaker 6: loan which is shared with my ex business partner, and

636
00:27:59,640 --> 00:28:04,440
Speaker 6: all of that sort of creates a debt of about

637
00:28:05,359 --> 00:28:07,000
Speaker 6: forty eight thousand dollars.

638
00:28:07,280 --> 00:28:09,399
Speaker 3: Okay, so now we know what she does. Let's get

639
00:28:09,440 --> 00:28:11,800
Speaker 3: into the juicy stuff. How much does she earn and

640
00:28:11,880 --> 00:28:13,760
Speaker 3: how much is sitting in her bank account right now?

641
00:28:13,880 --> 00:28:16,400
Speaker 6: Currently got about twelve hundred dollars sitting in my bank account.

642
00:28:16,480 --> 00:28:18,480
Speaker 6: In terms of how much I earn, I'm earning about

643
00:28:18,480 --> 00:28:21,680
Speaker 6: seventy thousand dollars and superannuation is on top.

644
00:28:21,800 --> 00:28:24,480
Speaker 3: And what exactly happens to that money after it's deposited

645
00:28:24,600 --> 00:28:25,440
Speaker 3: into her account.

646
00:28:25,520 --> 00:28:27,680
Speaker 6: Once the money hits my account, A lot of it

647
00:28:27,800 --> 00:28:31,760
Speaker 6: is contributed towards a lot of the repayments, so credit

648
00:28:31,840 --> 00:28:34,200
Speaker 6: card repayments, which are at a minimum at the moment,

649
00:28:34,960 --> 00:28:38,360
Speaker 6: all of my loans, so a three hundred and eighty

650
00:28:38,360 --> 00:28:42,680
Speaker 6: dollars a fortnight into one of my personal loans. I

651
00:28:42,680 --> 00:28:46,240
Speaker 6: have another one which is two hundred dollars a month,

652
00:28:46,720 --> 00:28:48,800
Speaker 6: and then in addition to that, I also have another

653
00:28:48,840 --> 00:28:52,800
Speaker 6: personal loan which has a repayment of one hundred dollars

654
00:28:53,280 --> 00:28:56,000
Speaker 6: and four hundred and seventy five in that shared loan

655
00:28:56,040 --> 00:28:58,640
Speaker 6: that I spoke about earlier. In terms of what I

656
00:28:58,680 --> 00:29:01,800
Speaker 6: have left for spending, I do currently live in a

657
00:29:01,880 --> 00:29:04,880
Speaker 6: minimal way. So because of the amount of debt that

658
00:29:04,880 --> 00:29:07,240
Speaker 6: I've got, I think my goals over the next two

659
00:29:07,280 --> 00:29:11,560
Speaker 6: years are focusing on completing the debt, and I do

660
00:29:11,680 --> 00:29:14,959
Speaker 6: spend a bit of money on petrol going out. I

661
00:29:15,000 --> 00:29:17,760
Speaker 6: also have a terrible habit I'm a smoker. So between

662
00:29:17,840 --> 00:29:22,200
Speaker 6: all of those, I do have a little bit left over, which, unfortunately,

663
00:29:22,240 --> 00:29:24,520
Speaker 6: as a part of one of my current money habits,

664
00:29:24,920 --> 00:29:29,120
Speaker 6: I tend to spend on good things like so for uh,

665
00:29:29,160 --> 00:29:32,080
Speaker 6: skincare and makeup and perfumes. I have a bit of

666
00:29:32,120 --> 00:29:35,040
Speaker 6: a perfume session as well, so I do tend to

667
00:29:35,680 --> 00:29:37,360
Speaker 6: have a lot of my money go that way as well.

668
00:29:37,440 --> 00:29:39,800
Speaker 3: Okay, then, so how does she feel about investing?

669
00:29:39,960 --> 00:29:40,720
Speaker 1: Does she invest?

670
00:29:40,800 --> 00:29:42,960
Speaker 2: And if so, how it's something that I've really wanted

671
00:29:43,000 --> 00:29:43,280
Speaker 2: to do.

672
00:29:43,360 --> 00:29:45,920
Speaker 6: So prior to my business, I did have a fairly

673
00:29:46,280 --> 00:29:50,320
Speaker 6: good relationship with money. I found myself saving a fair

674
00:29:50,320 --> 00:29:53,440
Speaker 6: amount and investing was something that I'd always look forward to.

675
00:29:53,880 --> 00:29:56,480
Speaker 6: I did spend a lot of my earlier years traveling,

676
00:29:56,680 --> 00:29:59,760
Speaker 6: so prior to the business, although I saved a lot

677
00:29:59,800 --> 00:30:02,440
Speaker 6: of mone, I also spent it on traveling. I've been

678
00:30:02,440 --> 00:30:04,880
Speaker 6: to Europe, I've been to America. I've been to Europe

679
00:30:04,880 --> 00:30:07,880
Speaker 6: twice actually, so that was something that was always at

680
00:30:07,880 --> 00:30:09,280
Speaker 6: the back of my mind. But I felt that I

681
00:30:09,360 --> 00:30:12,120
Speaker 6: was so young that I could sort of start investing later,

682
00:30:12,160 --> 00:30:15,320
Speaker 6: and unfortunately it hasn't been the case so far. However,

683
00:30:15,760 --> 00:30:18,520
Speaker 6: it is in my near future goals to start investing

684
00:30:18,560 --> 00:30:21,520
Speaker 6: in building wealth that is further lasting than just the

685
00:30:21,560 --> 00:30:24,920
Speaker 6: next couple of years, so really focusing on long term goals.

686
00:30:25,080 --> 00:30:27,720
Speaker 3: What about debt, Let's learn a little bit more about

687
00:30:27,720 --> 00:30:29,240
Speaker 3: her credit card and personal loans.

688
00:30:29,520 --> 00:30:32,360
Speaker 6: I have a personal loan which is sitting at about

689
00:30:32,400 --> 00:30:35,440
Speaker 6: twenty four thousand. In addition to that, I have a

690
00:30:35,480 --> 00:30:38,760
Speaker 6: credit card which is totally seven thousand dollars. I also

691
00:30:38,880 --> 00:30:41,880
Speaker 6: have another personal loan which is sitting at.

692
00:30:42,040 --> 00:30:43,680
Speaker 1: Four and a half thousand dollars.

693
00:30:43,800 --> 00:30:47,000
Speaker 6: And then in addition to that, I also have a

694
00:30:47,040 --> 00:30:50,720
Speaker 6: personal loan with my business partner, which at half is

695
00:30:50,760 --> 00:30:54,040
Speaker 6: sitting at about fifteen thousand. I also have a store

696
00:30:54,080 --> 00:30:56,960
Speaker 6: credit card, which I quite foolishly brought to get an

697
00:30:57,000 --> 00:30:59,600
Speaker 6: Apple MacBook Pro, which I probably didn't need at the time,

698
00:30:59,640 --> 00:31:03,040
Speaker 6: but I've wanted one anyway, and that has about two

699
00:31:03,040 --> 00:31:05,560
Speaker 6: thousand dollars remaining on that as well. So my total

700
00:31:05,560 --> 00:31:08,000
Speaker 6: amount of debt is sitting at forty eight thousand dollars.

701
00:31:08,240 --> 00:31:11,000
Speaker 6: When I applied for my first loan. It was a

702
00:31:11,040 --> 00:31:14,560
Speaker 6: travelers credit card from American Express, and I remember they

703
00:31:14,600 --> 00:31:17,080
Speaker 6: offered me I think it was like seven thousand dollars

704
00:31:17,080 --> 00:31:18,640
Speaker 6: and I was like, you know what, I can get

705
00:31:18,680 --> 00:31:21,360
Speaker 6: seven thousand dollars. What am I going to spend this

706
00:31:21,440 --> 00:31:23,160
Speaker 6: money on? And I thought, you know what, I'll get

707
00:31:23,160 --> 00:31:26,480
Speaker 6: a four hundred and fifty dollars credit towards flights and

708
00:31:26,480 --> 00:31:28,400
Speaker 6: that kind of thing because it's a traveler's card. And

709
00:31:28,440 --> 00:31:30,480
Speaker 6: I thought, this is great, I can go to Europe.

710
00:31:30,560 --> 00:31:34,480
Speaker 6: I'm twenty one and I'm about to travel. And there

711
00:31:34,560 --> 00:31:36,440
Speaker 6: was like a level of excitement, but then there was

712
00:31:36,480 --> 00:31:39,520
Speaker 6: always also that worry that, Okay, I'm gonna have to

713
00:31:39,560 --> 00:31:42,160
Speaker 6: pay this seven thousand dollars back. But I think we

714
00:31:42,280 --> 00:31:45,240
Speaker 6: often say this to ourselves, it's a future me problem,

715
00:31:45,600 --> 00:31:48,000
Speaker 6: which is exactly what I did. The tipping point for

716
00:31:48,080 --> 00:31:51,200
Speaker 6: me was the recent changes that I've gone through having

717
00:31:51,400 --> 00:31:53,960
Speaker 6: moved away from the business. I think it really forced

718
00:31:53,960 --> 00:31:57,840
Speaker 6: me to look at my current situation and find ways

719
00:31:57,880 --> 00:32:00,520
Speaker 6: to better myself. I think I found time, which was

720
00:32:01,200 --> 00:32:04,400
Speaker 6: incredible because it meant that I could sit down and

721
00:32:04,560 --> 00:32:07,920
Speaker 6: really reassess where my life was going. As someone who's

722
00:32:08,080 --> 00:32:11,600
Speaker 6: twenty five or above. I think we start questioning where

723
00:32:11,600 --> 00:32:13,840
Speaker 6: we see ourselves in five years, where we see ourselves

724
00:32:13,880 --> 00:32:16,360
Speaker 6: in ten years, And I think I realized that I

725
00:32:16,480 --> 00:32:19,360
Speaker 6: just didn't have any clarity on it. I wasn't totally

726
00:32:19,400 --> 00:32:22,080
Speaker 6: happy with my career in the past because of the

727
00:32:22,120 --> 00:32:25,240
Speaker 6: business and the commitments. In terms of time, I've let

728
00:32:25,240 --> 00:32:27,680
Speaker 6: go of a lot of opportunities within the past two

729
00:32:27,800 --> 00:32:31,400
Speaker 6: years as well. So not being happy with my career

730
00:32:31,600 --> 00:32:33,760
Speaker 6: knowing that I've got all this money that I have

731
00:32:33,840 --> 00:32:35,880
Speaker 6: to pay off, I found myself in a situation where

732
00:32:35,920 --> 00:32:38,480
Speaker 6: I started questioning what I was really doing and what

733
00:32:38,520 --> 00:32:41,840
Speaker 6: the purpose was of me working nine to five, coming home,

734
00:32:42,120 --> 00:32:43,960
Speaker 6: not having a lot of money to enjoy life, but

735
00:32:44,000 --> 00:32:47,200
Speaker 6: then also watching all that money leave my account. I

736
00:32:47,200 --> 00:32:50,920
Speaker 6: think it really made me reassess where my financial situation

737
00:32:51,000 --> 00:32:53,280
Speaker 6: will be in the future and just how much i'd

738
00:32:53,320 --> 00:32:56,200
Speaker 6: straight away from what my goals were as a twenty

739
00:32:56,200 --> 00:32:58,040
Speaker 6: one year old me. So that was sort of the

740
00:32:58,040 --> 00:33:02,360
Speaker 6: tipping point in terms of moving forward and really evolving.

741
00:33:02,760 --> 00:33:05,760
Speaker 6: So currently I am in a situation where debt consolidation

742
00:33:06,480 --> 00:33:09,640
Speaker 6: is not an option. I know that the only way

743
00:33:09,640 --> 00:33:12,320
Speaker 6: that I can really get out of debt is starting

744
00:33:12,360 --> 00:33:15,920
Speaker 6: to essentially save as much money as possible and starting

745
00:33:15,960 --> 00:33:19,520
Speaker 6: from the smallest to the largest in terms of loans.

746
00:33:19,560 --> 00:33:22,320
Speaker 6: So say, for example, the store credit card that we

747
00:33:22,320 --> 00:33:24,280
Speaker 6: spoke about was sitting at about two and a half thousand

748
00:33:24,320 --> 00:33:27,200
Speaker 6: dollars there, I know that I could probably over time

749
00:33:27,400 --> 00:33:31,120
Speaker 6: continue putting more money in there and hoping to get

750
00:33:31,120 --> 00:33:32,840
Speaker 6: that two and a half paid off so I could

751
00:33:32,880 --> 00:33:35,160
Speaker 6: move on to the next one, and then eventually getting

752
00:33:35,200 --> 00:33:37,720
Speaker 6: myself in a position where debt is no longer a thing.

753
00:33:37,840 --> 00:33:39,960
Speaker 3: Does she have any good money habits that she's especially

754
00:33:39,960 --> 00:33:40,240
Speaker 3: proud of?

755
00:33:40,400 --> 00:33:43,800
Speaker 6: About six months ago, I created a terrible habit of

756
00:33:43,880 --> 00:33:46,680
Speaker 6: driving into the city. So I was spending twenty five

757
00:33:46,840 --> 00:33:49,520
Speaker 6: dollars a day, which is one hundred and twenty five

758
00:33:49,560 --> 00:33:52,480
Speaker 6: over five days, just because I didn't want to catch

759
00:33:52,520 --> 00:33:55,480
Speaker 6: public transport. A Mikey costs about one hundred and forty

760
00:33:55,520 --> 00:33:58,600
Speaker 6: eight dollars a month, and I was spending one hundred

761
00:33:58,640 --> 00:34:01,520
Speaker 6: and twenty five a week. So things like that I

762
00:34:01,560 --> 00:34:03,320
Speaker 6: didn't realize just how much they added up.

763
00:34:03,400 --> 00:34:05,200
Speaker 3: And what about her worst money habit?

764
00:34:05,320 --> 00:34:08,399
Speaker 6: One of my biggest habits is buying fragrances. I've got

765
00:34:08,400 --> 00:34:12,560
Speaker 6: over forty fragrances, None of which are under one hundred

766
00:34:12,600 --> 00:34:13,480
Speaker 6: and fifty dollars.

767
00:34:13,640 --> 00:34:16,239
Speaker 3: How would today's money diarist rate her own relationship with

768
00:34:16,280 --> 00:34:18,239
Speaker 3: money if you had to give herself a grade.

769
00:34:18,040 --> 00:34:21,520
Speaker 6: I'm sitting at a C and aiming for a B plus.

770
00:34:22,280 --> 00:34:24,359
Speaker 6: Being a C at the moment, I think it would

771
00:34:24,360 --> 00:34:28,359
Speaker 6: be really important to cutting those habits such as after pace,

772
00:34:28,400 --> 00:34:31,160
Speaker 6: such as relying on my credit cards, such as spending

773
00:34:31,200 --> 00:34:34,200
Speaker 6: the money that I could probably spend towards repaying alone

774
00:34:34,640 --> 00:34:37,400
Speaker 6: on little things that I'm going to use today or

775
00:34:37,920 --> 00:34:40,279
Speaker 6: rack up at the back of my closet and not

776
00:34:40,440 --> 00:34:42,239
Speaker 6: use in the future. And I think that's what's going

777
00:34:42,280 --> 00:34:44,280
Speaker 6: to get me to a B plus, just really working

778
00:34:44,320 --> 00:34:47,520
Speaker 6: towards walking away from all of this and creating a

779
00:34:47,560 --> 00:34:49,000
Speaker 6: sustainable future for myself.

780
00:34:49,239 --> 00:34:52,120
Speaker 3: My god, Victoria, I do not envy this person's situation.

781
00:34:52,600 --> 00:34:54,879
Speaker 4: No, but you know what, I really like that she's

782
00:34:54,920 --> 00:34:56,920
Speaker 4: actually taking steps to get out of it. And I

783
00:34:56,920 --> 00:34:59,360
Speaker 4: think that's really positive. Yeah, because as much as it

784
00:34:59,520 --> 00:35:02,960
Speaker 4: is so overwhelming, like forty eight thousand dollars worth of

785
00:35:02,960 --> 00:35:05,399
Speaker 4: debt is a lot of debt to be in, and

786
00:35:05,680 --> 00:35:08,680
Speaker 4: she's lovely, she's absolutely delightful, and I think that it

787
00:35:08,800 --> 00:35:11,600
Speaker 4: is such a story here to be like the nicest

788
00:35:11,640 --> 00:35:13,960
Speaker 4: people get in a lot of debt as well. It

789
00:35:14,000 --> 00:35:16,600
Speaker 4: has nothing to do with you being silly or not educated.

790
00:35:16,880 --> 00:35:19,360
Speaker 4: It just happens to the best of us. And I

791
00:35:19,360 --> 00:35:21,560
Speaker 4: think that we just need to be educated in not

792
00:35:21,640 --> 00:35:24,439
Speaker 4: getting there. And she needs to work on making sure

793
00:35:24,480 --> 00:35:26,960
Speaker 4: that she is debt snowballing her way out of there,

794
00:35:27,200 --> 00:35:29,759
Speaker 4: because she's not in a position where after getting in

795
00:35:29,800 --> 00:35:32,600
Speaker 4: all this debt, she can actually be debt consolidated. She's

796
00:35:32,640 --> 00:35:35,000
Speaker 4: spoken to a broker and she's not actually able to

797
00:35:35,120 --> 00:35:38,279
Speaker 4: consolidate that debt into something else. So she needs to

798
00:35:38,320 --> 00:35:40,840
Speaker 4: be debt snowballing her way out of their asap.

799
00:35:41,120 --> 00:35:42,600
Speaker 1: And what is debt snowballing?

800
00:35:42,840 --> 00:35:44,799
Speaker 4: So it's one of my favorite things to talk about

801
00:35:44,800 --> 00:35:47,279
Speaker 4: when talking about debt. Surprised that hasn't come up. Yes,

802
00:35:47,840 --> 00:35:50,360
Speaker 4: it's a strategy of debt reduction. So it's where you

803
00:35:50,560 --> 00:35:53,120
Speaker 4: pay your debts off in order of the smallest to

804
00:35:53,200 --> 00:35:55,719
Speaker 4: the largest, and you kind of gain momentum as you

805
00:35:55,760 --> 00:35:58,480
Speaker 4: knock out each balance. And I think this is really

806
00:35:58,520 --> 00:36:01,560
Speaker 4: important because if we cant all of our debts and

807
00:36:01,600 --> 00:36:04,760
Speaker 4: we start at the smallest, regardless of what the interest

808
00:36:04,800 --> 00:36:07,200
Speaker 4: rate is, mind you, it actually gives us.

809
00:36:07,120 --> 00:36:09,760
Speaker 2: Short term motivation. Yes, we're more likely to reach.

810
00:36:09,600 --> 00:36:12,640
Speaker 4: A goal sooner to knock something off the table than

811
00:36:12,680 --> 00:36:14,880
Speaker 4: we are if we just are smashing down the biggest

812
00:36:14,920 --> 00:36:17,680
Speaker 4: deep with the biggest interest rate. And whilst that sounds

813
00:36:17,719 --> 00:36:20,759
Speaker 4: a little bit backwards in terms of actually, you know,

814
00:36:20,920 --> 00:36:24,319
Speaker 4: good quality financial advice, you could say because obviously, if

815
00:36:24,320 --> 00:36:26,920
Speaker 4: we put our debts in order of the greatest interest

816
00:36:27,040 --> 00:36:30,920
Speaker 4: rate down to the lowest interest rate, that's called debt avalanching.

817
00:36:31,480 --> 00:36:33,600
Speaker 2: Actually, that's got it. That's got a name as well.

818
00:36:33,600 --> 00:36:36,600
Speaker 4: That's actually I think I prefer debt snowballing because it

819
00:36:36,600 --> 00:36:39,320
Speaker 4: gives us the motivation to keep going, and more often

820
00:36:39,400 --> 00:36:42,560
Speaker 4: than not, people who debt snowball get out of debt

821
00:36:42,640 --> 00:36:43,880
Speaker 4: quicker Victoria.

822
00:36:44,000 --> 00:36:47,400
Speaker 3: This whole chat has been quite enlightening and terrifying, if

823
00:36:47,440 --> 00:36:48,439
Speaker 3: I'm being honest.

824
00:36:48,239 --> 00:36:50,160
Speaker 4: Maybe because I don't love credit cards, I don't know

825
00:36:50,160 --> 00:36:52,160
Speaker 4: if you're getting that vibe though, we would.

826
00:36:52,040 --> 00:36:54,960
Speaker 3: You say then that there are any redeemable qualities to

827
00:36:55,120 --> 00:36:57,360
Speaker 3: having a credit card or should be pretty shiny.

828
00:36:57,719 --> 00:36:59,960
Speaker 2: No, No, that's absolutely not it.

829
00:37:00,080 --> 00:37:02,319
Speaker 4: I think there are a number of good things associated

830
00:37:02,320 --> 00:37:05,400
Speaker 4: with credit cards, and if I'm being completely honest, I

831
00:37:05,480 --> 00:37:08,320
Speaker 4: do know a number of people who are using credit

832
00:37:08,360 --> 00:37:11,960
Speaker 4: cards in a really practical way. However, that is not

833
00:37:12,040 --> 00:37:14,840
Speaker 4: the majority. Right now, we are talking to the majority

834
00:37:14,880 --> 00:37:18,320
Speaker 4: of people. I know people exist who are using credit

835
00:37:18,320 --> 00:37:21,080
Speaker 4: cards for every single one of their purchases each and

836
00:37:21,120 --> 00:37:23,719
Speaker 4: every single month, and they are They're getting points, and

837
00:37:23,719 --> 00:37:25,920
Speaker 4: they are getting a whole heap of really great returns

838
00:37:26,000 --> 00:37:29,000
Speaker 4: for that. But it actually doesn't work for the normal

839
00:37:29,040 --> 00:37:31,960
Speaker 4: average Australian because we are more likely to get in debt.

840
00:37:32,000 --> 00:37:35,279
Speaker 4: And it's all about mindset. It actually comes down to psychology,

841
00:37:35,600 --> 00:37:37,680
Speaker 4: and it is not a good idea for ninety nine

842
00:37:37,719 --> 00:37:40,040
Speaker 4: point ninety five percent of our population to have a

843
00:37:40,040 --> 00:37:42,960
Speaker 4: credit card. I'm not dismissing the fact that there are

844
00:37:43,000 --> 00:37:46,239
Speaker 4: people who use them constructively though, so please don't get

845
00:37:46,239 --> 00:37:48,600
Speaker 4: me wrong. I know people who do, and I would

846
00:37:48,640 --> 00:37:50,800
Speaker 4: be naive to say that I don't have one, because

847
00:37:50,800 --> 00:37:53,160
Speaker 4: I run a business and I use a credit card

848
00:37:53,160 --> 00:37:55,719
Speaker 4: to cash flow my business to make sure that I

849
00:37:55,760 --> 00:37:58,400
Speaker 4: am paying the invoices that are coming in and making

850
00:37:58,400 --> 00:38:00,680
Speaker 4: sure that I am on top of the business income.

851
00:38:00,920 --> 00:38:03,880
Speaker 4: Because when you run a business, not everyone pays invoices

852
00:38:03,880 --> 00:38:05,920
Speaker 4: when they are meant to, so I need to make

853
00:38:05,960 --> 00:38:07,799
Speaker 4: sure that I'm actually doing what I said I was

854
00:38:07,840 --> 00:38:08,200
Speaker 4: going to do.

855
00:38:08,600 --> 00:38:10,120
Speaker 2: So don't get me wrong, I'm not.

856
00:38:10,040 --> 00:38:12,680
Speaker 4: Saying that they are one hundred percent negative, but I

857
00:38:12,719 --> 00:38:15,000
Speaker 4: am saying they are worse for you than they are.

858
00:38:15,040 --> 00:38:15,719
Speaker 2: Good for you.

859
00:38:15,880 --> 00:38:17,239
Speaker 1: The negatives outweigh.

860
00:38:16,920 --> 00:38:19,040
Speaker 2: The negatives far outweigh the positives.

861
00:38:19,280 --> 00:38:21,759
Speaker 3: So you mentioned the points in rewards, Victoria. Are they

862
00:38:21,840 --> 00:38:23,320
Speaker 3: actually worth it in any measure?

863
00:38:23,560 --> 00:38:26,239
Speaker 4: Well, it depends on how you're using them. Obviously, the

864
00:38:26,280 --> 00:38:29,000
Speaker 4: more you spend on credit cards, the more points you make.

865
00:38:29,200 --> 00:38:32,319
Speaker 4: But I think you'd actually be quite surprised at how

866
00:38:32,440 --> 00:38:35,400
Speaker 4: much you have to spend to actually earn enough points

867
00:38:35,480 --> 00:38:39,080
Speaker 4: to make it worth it. At slightly above average spend

868
00:38:39,360 --> 00:38:41,960
Speaker 4: of twenty four thousand dollars a year on a credit

869
00:38:42,000 --> 00:38:45,120
Speaker 4: card means that you aren't really breaking even on a

870
00:38:45,160 --> 00:38:49,040
Speaker 4: points system. So, like, I've done my research and I

871
00:38:49,120 --> 00:38:51,680
Speaker 4: understand this to the nth degree. There's a really great

872
00:38:51,760 --> 00:38:54,560
Speaker 4: article on the can Style website about this, and I

873
00:38:54,560 --> 00:38:57,160
Speaker 4: think if you just google can start, are the rewards

874
00:38:57,160 --> 00:38:59,879
Speaker 4: on credit cards actually worth it? It will come up.

875
00:39:00,480 --> 00:39:04,920
Speaker 4: But if you spend twenty four thousand dollars on your

876
00:39:04,960 --> 00:39:08,120
Speaker 4: credit card, each and every single year, the returns after

877
00:39:08,160 --> 00:39:09,880
Speaker 4: fees for cash is about.

878
00:39:09,640 --> 00:39:10,920
Speaker 2: One hundred and eleven dollars.

879
00:39:11,120 --> 00:39:11,480
Speaker 1: That's it.

880
00:39:11,640 --> 00:39:15,000
Speaker 4: Your general returns are one hundred and thirteen dollars, and

881
00:39:15,080 --> 00:39:17,160
Speaker 4: you will get a total of one hundred and fifty

882
00:39:17,239 --> 00:39:19,280
Speaker 4: nine dollars worth of frequent flypoint.

883
00:39:19,360 --> 00:39:20,399
Speaker 1: It's not really worth it, is it?

884
00:39:20,560 --> 00:39:20,759
Speaker 3: No?

885
00:39:20,840 --> 00:39:24,040
Speaker 4: Because I feel like people aren't taking into consideration the

886
00:39:24,120 --> 00:39:27,080
Speaker 4: credit card fees and how much it actually costs you

887
00:39:27,160 --> 00:39:30,560
Speaker 4: personally to have a credit card because you are spending

888
00:39:30,600 --> 00:39:32,440
Speaker 4: more and it makes it more accessible.

889
00:39:32,680 --> 00:39:33,719
Speaker 2: And I'm not talking.

890
00:39:33,520 --> 00:39:36,839
Speaker 4: About, oh, I accidentally slipped into a store and bought

891
00:39:36,840 --> 00:39:39,160
Speaker 4: a new dress. I'm saying you're more likely to say

892
00:39:39,239 --> 00:39:41,400
Speaker 4: yes to that extra coffee, you are more likely to

893
00:39:41,440 --> 00:39:43,600
Speaker 4: get that side of avocado with your brunch. You are

894
00:39:43,680 --> 00:39:47,280
Speaker 4: more likely to spend money just incidentally along the way.

895
00:39:47,640 --> 00:39:50,560
Speaker 4: We're not talking about going on spending vendors. We are

896
00:39:50,719 --> 00:39:53,600
Speaker 4: talking about going out and just accidentally spending a few

897
00:39:53,640 --> 00:39:56,320
Speaker 4: dollars here and there that over the long term, really

898
00:39:56,360 --> 00:40:00,000
Speaker 4: really adds up. So yes, it's actually crazy how much

899
00:40:00,080 --> 00:40:03,319
Speaker 4: much it doesn't actually add up. But in saying that

900
00:40:03,480 --> 00:40:06,000
Speaker 4: a number of people have hacked the system, and there's

901
00:40:06,000 --> 00:40:08,120
Speaker 4: a website called points hack that I've been on a

902
00:40:08,200 --> 00:40:10,960
Speaker 4: number of times, and it's really interesting to see the

903
00:40:11,000 --> 00:40:13,640
Speaker 4: different offers and how people are actually you know, getting

904
00:40:13,640 --> 00:40:16,160
Speaker 4: free flights or doing this or doing that. But to me,

905
00:40:16,360 --> 00:40:18,719
Speaker 4: that's a lot of effort and a lot of work. Yeah,

906
00:40:19,080 --> 00:40:22,320
Speaker 4: that I could see you concentrating that energy into something

907
00:40:22,360 --> 00:40:24,839
Speaker 4: else to generate money, Like can you not go and

908
00:40:24,920 --> 00:40:28,600
Speaker 4: sell some stuff on Facebook marketplace and you know, get

909
00:40:28,600 --> 00:40:30,799
Speaker 4: that income from there without having to go through this

910
00:40:30,880 --> 00:40:35,719
Speaker 4: convoluted credit card hack point trial thing where you end

911
00:40:35,760 --> 00:40:38,239
Speaker 4: up forgetting to cancel the credit card and you end

912
00:40:38,320 --> 00:40:40,720
Speaker 4: up with an annual fee. I think it's really important

913
00:40:40,760 --> 00:40:43,160
Speaker 4: to actually see it as Okay, well that's the value

914
00:40:43,200 --> 00:40:46,200
Speaker 4: exchange there. Could I get a better value exchange somewhere else?

915
00:40:46,280 --> 00:40:48,959
Speaker 4: Could I go and do a few hours of freelance work.

916
00:40:49,200 --> 00:40:51,239
Speaker 4: Could I go and pick up a side job? Could

917
00:40:51,280 --> 00:40:53,359
Speaker 4: I do this? Could I do that? And actually think

918
00:40:53,360 --> 00:40:56,440
Speaker 4: of ways to generate income because points aren't the thing

919
00:40:56,480 --> 00:40:58,279
Speaker 4: that are going to make you wealthy. I have never

920
00:40:58,400 --> 00:41:00,920
Speaker 4: seen one person come to me and so I, hey, Victoria,

921
00:41:00,960 --> 00:41:02,920
Speaker 4: I'm actually really wealthy and they go, wow, have you

922
00:41:02,960 --> 00:41:05,240
Speaker 4: done it? And they say I did it through credit

923
00:41:05,239 --> 00:41:08,040
Speaker 4: card point, it's not a thing, and you know what,

924
00:41:08,080 --> 00:41:10,000
Speaker 4: if it is, I'll do a whole podcast on it.

925
00:41:10,080 --> 00:41:11,080
Speaker 2: Please step forward.

926
00:41:11,320 --> 00:41:11,960
Speaker 1: What would you say?

927
00:41:11,960 --> 00:41:14,200
Speaker 3: The main takeaway for today's episode is victoria.

928
00:41:14,400 --> 00:41:16,759
Speaker 4: If you have a credit card, you are always a

929
00:41:16,800 --> 00:41:18,879
Speaker 4: month behind. If you are spending a lot of money

930
00:41:18,920 --> 00:41:20,799
Speaker 4: on it and you need to be paying off your

931
00:41:20,800 --> 00:41:23,400
Speaker 4: credit card, you are living in the past instead of

932
00:41:23,440 --> 00:41:26,640
Speaker 4: creating a future. You are spending money on paying back

933
00:41:26,640 --> 00:41:29,200
Speaker 4: a debt instead of spending money and putting it somewhere

934
00:41:29,200 --> 00:41:31,680
Speaker 4: where you can create wealth. And I think that that's

935
00:41:31,719 --> 00:41:34,880
Speaker 4: my main takeaway because you are actually living in the

936
00:41:34,880 --> 00:41:37,359
Speaker 4: past and you are not pushing yourself forward. You are

937
00:41:37,440 --> 00:41:41,160
Speaker 4: taking away future usability to create wealth. And as you

938
00:41:41,280 --> 00:41:44,520
Speaker 4: all know, I am wowly passionate about creating wealth and

939
00:41:44,600 --> 00:41:47,080
Speaker 4: what that actually means. So for every time you are

940
00:41:47,120 --> 00:41:50,080
Speaker 4: paying five hundred dollars back on a credit card, it's

941
00:41:50,120 --> 00:41:52,279
Speaker 4: five hundred dollars that you are not putting into an

942
00:41:52,280 --> 00:41:54,680
Speaker 4: investment that can help create the future that you want.

943
00:41:58,000 --> 00:41:59,880
Speaker 1: And that is all we have time for today.

944
00:42:00,200 --> 00:42:02,320
Speaker 3: But before we head off, let's quickly wrap the boring

945
00:42:02,360 --> 00:42:04,960
Speaker 3: but important stuff the advice shared on She's on the

946
00:42:04,960 --> 00:42:07,160
Speaker 3: Money is general in nature and does not consider your

947
00:42:07,160 --> 00:42:10,880
Speaker 3: individual circumstances. She's on the Money exists purely for educational

948
00:42:10,880 --> 00:42:13,120
Speaker 3: purposes and should not be relied upon to make an

949
00:42:13,120 --> 00:42:14,680
Speaker 3: investment or financial decision.

950
00:42:15,080 --> 00:42:16,440
Speaker 1: And bear not. We promise.

951
00:42:16,600 --> 00:42:20,680
Speaker 3: Victoria Devine is an authorized representative of Consultant Financial Advisors

952
00:42:20,800 --> 00:42:24,359
Speaker 3: Proprietary Limited ABM sixty five double six three seven three

953
00:42:24,440 --> 00:42:27,320
Speaker 3: double nine to five AFSL two three OHO.

954
00:42:26,960 --> 00:42:27,600
Speaker 2: Three two three.

955
00:42:28,200 --> 00:42:31,160
Speaker 3: And thank you to the lovely Ryan John, our audio king,

956
00:42:31,239 --> 00:42:32,560
Speaker 3: for whipping our wild chat.

957
00:42:32,440 --> 00:42:33,439
Speaker 2: Into the podcast you love.

958
00:42:33,600 --> 00:42:35,400
Speaker 4: We would love it if you joined us in our

959
00:42:35,440 --> 00:42:40,920
Speaker 4: Facebook group, where g almost fifty five thousand women I

960
00:42:41,000 --> 00:42:44,080
Speaker 4: know share money tips and tricks every single day, free

961
00:42:44,120 --> 00:42:44,640
Speaker 4: of judgment.

962
00:42:44,920 --> 00:42:47,040
Speaker 2: Search She's on the Money on Facebook and join.

963
00:42:47,360 --> 00:42:49,560
Speaker 4: If Facebook's not your thing, you can also find us

964
00:42:49,600 --> 00:42:50,240
Speaker 4: on Instagram.

965
00:42:50,239 --> 00:42:52,799
Speaker 2: We're it. She's on the Money a US. See you guys,

966
00:42:52,840 --> 00:42:54,240
Speaker 2: next sake, See you bye,