1 00:00:00,200 --> 00:00:02,040 Speaker 1: She's on the Money. 2 00:00:02,160 --> 00:00:17,720 Speaker 2: She's on the Money. 3 00:00:20,280 --> 00:00:22,880 Speaker 3: Hello, and welcome to She's on the Money, the podcast 4 00:00:22,920 --> 00:00:24,800 Speaker 3: for millennials who want financial freedom. 5 00:00:25,160 --> 00:00:26,239 Speaker 4: My name is Annabel Lee. 6 00:00:26,480 --> 00:00:28,280 Speaker 3: I'm a law student who wants to get better at 7 00:00:28,280 --> 00:00:30,360 Speaker 3: all things money, and to do that, I've listened to 8 00:00:30,400 --> 00:00:33,159 Speaker 3: the help of my friend and money expert Victoria Divine. 9 00:00:33,440 --> 00:00:34,680 Speaker 1: Hello Victoria, Hi. 10 00:00:34,840 --> 00:00:35,000 Speaker 5: Hi. 11 00:00:35,680 --> 00:00:37,800 Speaker 4: First of all, we just want to say a huge 12 00:00:37,960 --> 00:00:40,120 Speaker 4: thank you to everyone who listened to our first episode. 13 00:00:40,200 --> 00:00:40,800 Speaker 4: That was so. 14 00:00:40,800 --> 00:00:44,040 Speaker 6: Unexpected, absolutely unexpected. 15 00:00:43,520 --> 00:00:45,320 Speaker 4: Very overwhelmed all the emotions. 16 00:00:45,560 --> 00:00:48,400 Speaker 5: Honestly, I did not expect the reception that we had, 17 00:00:48,640 --> 00:00:50,720 Speaker 5: but I think it really validates. 18 00:00:50,200 --> 00:00:50,800 Speaker 6: Why we're here. 19 00:00:51,280 --> 00:00:54,320 Speaker 3: We actually had a listener post something to her Instagram 20 00:00:54,360 --> 00:00:58,320 Speaker 3: story and tag us. Her name was Shylin shay Ln. 21 00:00:58,520 --> 00:01:01,560 Speaker 3: I'm sorry if I'm butchering your name. She gave herself 22 00:01:01,600 --> 00:01:04,280 Speaker 3: a wax burn on her upper lip by deciding to 23 00:01:04,280 --> 00:01:06,200 Speaker 3: do an at home wax I think she was. 24 00:01:08,240 --> 00:01:09,800 Speaker 6: I saw that. I felt so awful. 25 00:01:09,840 --> 00:01:14,280 Speaker 5: I replied to her Instagram story pretty quickly. I reposted 26 00:01:14,319 --> 00:01:16,440 Speaker 5: it because it was quite funny. But at the same time, 27 00:01:16,480 --> 00:01:17,679 Speaker 5: have I started something. 28 00:01:18,200 --> 00:01:20,240 Speaker 4: Am I a responsibility for all the burns? 29 00:01:20,480 --> 00:01:23,160 Speaker 5: I'll take responsibility for my financial advice, but I'm not 30 00:01:23,200 --> 00:01:24,560 Speaker 5: sure about my beauty advice. 31 00:01:24,640 --> 00:01:26,560 Speaker 3: She's an all round expert, guys, not just a no, 32 00:01:26,959 --> 00:01:30,959 Speaker 3: don't take it, okay Victoria. Today we're going to talk 33 00:01:31,000 --> 00:01:34,360 Speaker 3: about all things after pay. It's every millennial's weakness and 34 00:01:34,440 --> 00:01:36,960 Speaker 3: something that we all hate to love or love to hate. 35 00:01:37,120 --> 00:01:39,520 Speaker 3: But before we really dig in, let's kick things off 36 00:01:39,560 --> 00:01:42,040 Speaker 3: by sharing a money win or my confession from the week. 37 00:01:42,400 --> 00:01:43,520 Speaker 4: What do you have for me this week? 38 00:01:43,560 --> 00:01:43,880 Speaker 7: All right? 39 00:01:44,000 --> 00:01:46,800 Speaker 5: I feel like I have a very exciting money win 40 00:01:46,880 --> 00:01:49,600 Speaker 5: this week that I only get to have once a year. 41 00:01:49,960 --> 00:01:54,640 Speaker 5: So it was my birthday yesterday. 42 00:01:53,120 --> 00:01:53,800 Speaker 1: Thank you. 43 00:01:54,680 --> 00:01:56,680 Speaker 5: But it meant I didn't pay for anything for the 44 00:01:56,880 --> 00:01:59,400 Speaker 5: entire day. So I had a fantastic day of going 45 00:01:59,400 --> 00:02:02,040 Speaker 5: out for and then I went out for dinner with 46 00:02:02,080 --> 00:02:06,120 Speaker 5: my best friend and yeah, no complaint, no complaints. I 47 00:02:06,160 --> 00:02:09,519 Speaker 5: had a wonderful day and it cost me nothing. How 48 00:02:09,639 --> 00:02:10,440 Speaker 5: was your weekend? 49 00:02:10,800 --> 00:02:11,639 Speaker 6: Do you have a money win? 50 00:02:11,960 --> 00:02:14,240 Speaker 3: I on the weekend, I went out for dinner with 51 00:02:14,320 --> 00:02:17,399 Speaker 3: my friends and on my way there. This last week 52 00:02:17,400 --> 00:02:19,960 Speaker 3: mine was vehicle related, and this week it's also vehicle related. 53 00:02:20,040 --> 00:02:20,919 Speaker 6: Oh, I see a theme. 54 00:02:21,919 --> 00:02:26,280 Speaker 3: I was gonna catch a tram but the tram stopped 55 00:02:26,320 --> 00:02:27,720 Speaker 3: running for some reason, so I de started to catch 56 00:02:27,760 --> 00:02:30,120 Speaker 3: an Uber. I usually catch the Uber Pool it's a 57 00:02:30,160 --> 00:02:32,880 Speaker 3: lot cheaper than the other ones, but for some reason 58 00:02:33,080 --> 00:02:34,040 Speaker 3: I was running. 59 00:02:33,760 --> 00:02:36,040 Speaker 4: Late and I was in a rush, and my finger. 60 00:02:35,840 --> 00:02:39,560 Speaker 3: Slipped and I ended up taking the Uber Black. 61 00:02:39,880 --> 00:02:41,519 Speaker 6: All your fans you on. 62 00:02:41,639 --> 00:02:43,800 Speaker 3: And I didn't realize until the car pulled up into 63 00:02:43,840 --> 00:02:47,160 Speaker 3: my street and there was this really fancy driver as well. 64 00:02:46,960 --> 00:02:48,880 Speaker 4: And he was being really weirdly nice. 65 00:02:49,840 --> 00:02:51,760 Speaker 3: And then I wropped up to dinner and my friends 66 00:02:51,800 --> 00:02:53,799 Speaker 3: were waiting outside for me, and they were like, I thought, 67 00:02:53,840 --> 00:02:55,080 Speaker 3: you just started a money. 68 00:02:54,800 --> 00:02:57,480 Speaker 4: Podcast, shouldn't you shouldn't you be trying to save money? 69 00:02:57,520 --> 00:03:00,760 Speaker 4: And I was like, it was an accident. I hoping late, 70 00:03:00,840 --> 00:03:02,000 Speaker 4: so it was the only way. 71 00:03:02,120 --> 00:03:03,560 Speaker 6: Maybe you could have said that you just got the 72 00:03:03,560 --> 00:03:04,320 Speaker 6: free upgrade. 73 00:03:04,320 --> 00:03:06,679 Speaker 5: Because sometimes on Uber, when I'm ordering Uber x is, 74 00:03:06,760 --> 00:03:09,359 Speaker 5: I get upgraded like Uber select or Uber Black. 75 00:03:09,360 --> 00:03:10,960 Speaker 4: That is never that has never happened. 76 00:03:10,960 --> 00:03:14,359 Speaker 6: I feel like it's it's playing a game of bingo. 77 00:03:14,639 --> 00:03:17,400 Speaker 5: But sometimes I get upgraded and I feel a lot 78 00:03:17,480 --> 00:03:19,360 Speaker 5: fancier than I am. I'll be going to a work 79 00:03:19,400 --> 00:03:23,440 Speaker 5: meeting and I turn up in like a Chrysler three hundred, 80 00:03:23,520 --> 00:03:25,160 Speaker 5: and I feel like I find out a bit more 81 00:03:25,200 --> 00:03:26,839 Speaker 5: gangster than I actually am. 82 00:03:27,000 --> 00:03:30,239 Speaker 4: Hey you're gangster, Victoria. So now that that's out of 83 00:03:30,280 --> 00:03:32,200 Speaker 4: the way, let's jump into today's show. 84 00:03:32,720 --> 00:03:35,600 Speaker 3: Today it's all about after Pay, that pesky by now 85 00:03:35,720 --> 00:03:38,240 Speaker 3: pay later service that's been attacking the millennial bank balance 86 00:03:38,280 --> 00:03:42,040 Speaker 3: since it launched in twenty fifteen. Victoria, let's start simply, 87 00:03:42,280 --> 00:03:44,560 Speaker 3: what's the first thing that comes to mind when you 88 00:03:44,640 --> 00:03:45,960 Speaker 3: hear the word after pay? 89 00:03:46,320 --> 00:03:49,680 Speaker 5: I feel like I have a pretty emotive response to this. 90 00:03:50,480 --> 00:03:51,280 Speaker 4: Give it to me. What is it? 91 00:03:51,400 --> 00:03:54,920 Speaker 5: Oh, it's it's a really negative feeling. Maybe not a 92 00:03:54,960 --> 00:03:58,160 Speaker 5: series of words, but I just feel like when you 93 00:03:58,240 --> 00:04:01,680 Speaker 5: talk about after pay, I meet think bad credit, I 94 00:04:01,720 --> 00:04:03,760 Speaker 5: think bad debt. And I'm not sure if that's a 95 00:04:03,800 --> 00:04:07,600 Speaker 5: product of my experiences or my perception of the product. 96 00:04:08,160 --> 00:04:10,920 Speaker 5: I'm not saying it's right or wrong, but my immediate 97 00:04:11,040 --> 00:04:12,119 Speaker 5: thoughts are negative. 98 00:04:12,320 --> 00:04:13,600 Speaker 4: That's the really conflicting thing. 99 00:04:13,760 --> 00:04:15,520 Speaker 3: A lot of my friends love using up to pay, 100 00:04:15,560 --> 00:04:16,960 Speaker 3: they use it all the time, but then there are 101 00:04:17,000 --> 00:04:18,960 Speaker 3: these negative connotations that come with using it. 102 00:04:19,000 --> 00:04:20,760 Speaker 4: Are those connotations fair? Do you think? 103 00:04:20,960 --> 00:04:23,800 Speaker 5: I'm not sure if my negative connotations come from a 104 00:04:23,839 --> 00:04:28,800 Speaker 5: place of financial education, because I work as a financial advisor. 105 00:04:29,080 --> 00:04:31,440 Speaker 5: Because I also have friends who use it all the 106 00:04:31,480 --> 00:04:34,400 Speaker 5: time and absolutely love it. I've got one girlfriend who 107 00:04:34,480 --> 00:04:37,559 Speaker 5: is consistently using after pay on the Iconic and loves 108 00:04:37,600 --> 00:04:39,640 Speaker 5: the fact that she can get all these dresses, have 109 00:04:39,720 --> 00:04:41,839 Speaker 5: them delivered to her house, try on the ones that 110 00:04:41,880 --> 00:04:44,280 Speaker 5: she wants to keep, keep those, and send the rest back. 111 00:04:44,320 --> 00:04:47,200 Speaker 5: And she's never had to have the whole amount of 112 00:04:47,279 --> 00:04:48,919 Speaker 5: the cost of all of those dresses come out of 113 00:04:48,920 --> 00:04:51,400 Speaker 5: her account at any point in time. She's a really 114 00:04:51,440 --> 00:04:54,400 Speaker 5: good saver. She's someone who is really good with her money. 115 00:04:54,600 --> 00:04:56,920 Speaker 5: So for her, I don't think after pay is a negative. 116 00:04:57,040 --> 00:05:00,920 Speaker 5: I think it's something that she's using just because it's 117 00:05:01,000 --> 00:05:03,000 Speaker 5: convenient for her at that point in time. 118 00:05:03,960 --> 00:05:05,880 Speaker 4: On that note, let's start with the positives. 119 00:05:05,920 --> 00:05:08,159 Speaker 3: Then how can after pay be used in a positive 120 00:05:08,200 --> 00:05:09,800 Speaker 3: way for non essential items? 121 00:05:10,200 --> 00:05:12,400 Speaker 5: So I think my friend is a good example of 122 00:05:12,440 --> 00:05:14,880 Speaker 5: someone who's using it but is also in a positive 123 00:05:14,880 --> 00:05:18,000 Speaker 5: financial position. She's really self aware of when she's using 124 00:05:18,040 --> 00:05:21,359 Speaker 5: after pay what for why, what her payments are. I 125 00:05:21,400 --> 00:05:24,600 Speaker 5: could ask her in a split second, what's on your 126 00:05:24,640 --> 00:05:27,000 Speaker 5: after pay? How much do you owe? And she'd tell 127 00:05:27,080 --> 00:05:30,440 Speaker 5: me what she owes and why she owes it, Whereas 128 00:05:30,520 --> 00:05:32,760 Speaker 5: I think a lot of people are actually getting a 129 00:05:32,800 --> 00:05:35,120 Speaker 5: little bit out of control with after pay, so they 130 00:05:35,200 --> 00:05:38,280 Speaker 5: are using it as a tool to potentially not take 131 00:05:38,440 --> 00:05:42,160 Speaker 5: responsibility for their spending. So they're just not looking at 132 00:05:42,160 --> 00:05:44,440 Speaker 5: the bigger picture. They're not going, all right, well, I 133 00:05:44,560 --> 00:05:47,520 Speaker 5: still owe two hundred dollars. They're saying, oh, that's easy, 134 00:05:47,560 --> 00:05:49,640 Speaker 5: that's just fifty dollars. Now I've got fifty dollars in 135 00:05:49,680 --> 00:05:52,320 Speaker 5: my account. Where there are a lot of people who 136 00:05:52,360 --> 00:05:54,760 Speaker 5: are in positions where they're using after pay because they 137 00:05:54,760 --> 00:05:57,159 Speaker 5: don't have the money in their account and they're hoping 138 00:05:57,279 --> 00:05:59,280 Speaker 5: that by next pay they will have the money. 139 00:05:59,480 --> 00:06:02,359 Speaker 6: I think it's different. I think it's a different situation. 140 00:06:02,760 --> 00:06:05,679 Speaker 5: So my friend is really good with using after pay 141 00:06:05,720 --> 00:06:09,600 Speaker 5: and uses it in a way that benefits her financial 142 00:06:09,640 --> 00:06:12,920 Speaker 5: position because she wants to not dip into her savings 143 00:06:13,000 --> 00:06:15,360 Speaker 5: to afford something that she knows next month she's going 144 00:06:15,400 --> 00:06:17,520 Speaker 5: to have the money for. So I feel like some 145 00:06:17,560 --> 00:06:20,279 Speaker 5: people are using it as a tool to budget they're spending. 146 00:06:20,440 --> 00:06:22,760 Speaker 5: So instead of spending two hundred dollars right now out 147 00:06:22,800 --> 00:06:25,080 Speaker 5: of your pay cycle, you get to break it up 148 00:06:25,160 --> 00:06:27,400 Speaker 5: and if that's something that you're using as a way 149 00:06:27,440 --> 00:06:29,080 Speaker 5: of budgeting, then fantastic. 150 00:06:29,080 --> 00:06:29,880 Speaker 6: But I also think. 151 00:06:29,720 --> 00:06:31,760 Speaker 5: There are a lot of people who are getting into 152 00:06:31,800 --> 00:06:34,839 Speaker 5: a lot of trouble because they're not budgeting around that, 153 00:06:34,839 --> 00:06:38,440 Speaker 5: they're not taking responsibility for their financial position, and they're 154 00:06:38,480 --> 00:06:41,320 Speaker 5: for example, purchasing an item for two hundred dollars and 155 00:06:41,360 --> 00:06:44,279 Speaker 5: potentially only seeing it as fifty dollars. Now, I will 156 00:06:44,320 --> 00:06:47,080 Speaker 5: worry about the rest later, and when later comes, they've 157 00:06:47,080 --> 00:06:50,400 Speaker 5: already made a number of other after pay purchases. 158 00:06:49,839 --> 00:06:52,520 Speaker 6: And things kind of compound out of control. 159 00:06:52,240 --> 00:06:54,320 Speaker 3: Yeap, So it requires more effort I guess to use 160 00:06:54,320 --> 00:06:56,520 Speaker 3: it responsibly, which a lot of us. I think maybe 161 00:06:56,560 --> 00:06:58,560 Speaker 3: I'm too lazy to think so far ahead. 162 00:06:58,960 --> 00:07:01,560 Speaker 5: I think it's I don't know if it's lazy, or 163 00:07:01,600 --> 00:07:04,760 Speaker 5: if our generation have their heads in the sand, or 164 00:07:04,800 --> 00:07:07,560 Speaker 5: if it's just or if we're being enabled to make 165 00:07:07,640 --> 00:07:11,760 Speaker 5: financial decisions in the moment. So personally, I really like 166 00:07:11,840 --> 00:07:15,040 Speaker 5: after pay as a company. As a business, It's revolutionized 167 00:07:15,080 --> 00:07:18,840 Speaker 5: the way that purchasing online is happening. It's even revolutionized 168 00:07:18,880 --> 00:07:23,560 Speaker 5: the way purchasing in store is happening. However, I don't 169 00:07:23,600 --> 00:07:26,960 Speaker 5: think people are taking responsibility for their financial position at 170 00:07:27,000 --> 00:07:28,000 Speaker 5: all by using it. 171 00:07:28,280 --> 00:07:29,200 Speaker 6: So I think something. 172 00:07:29,040 --> 00:07:31,480 Speaker 5: Else that we probably should touch on really early on 173 00:07:31,560 --> 00:07:34,440 Speaker 5: in this conversation about after pay is that it's about 174 00:07:34,480 --> 00:07:37,360 Speaker 5: to be rolled out into GP clinics. 175 00:07:37,360 --> 00:07:38,160 Speaker 4: I didn't know that. 176 00:07:38,320 --> 00:07:41,559 Speaker 5: Yeah, it's about to be rolled out into situations where 177 00:07:41,600 --> 00:07:44,960 Speaker 5: people who potentially don't have access to, you know, two 178 00:07:45,080 --> 00:07:47,560 Speaker 5: or three hundred dollars they need for a medical procedure 179 00:07:47,680 --> 00:07:51,360 Speaker 5: or a scan or a specialist appointment that they need, 180 00:07:51,720 --> 00:07:53,680 Speaker 5: are going to be able to access after pay. And 181 00:07:53,720 --> 00:07:55,880 Speaker 5: I think it's pretty classest of us to think that 182 00:07:56,280 --> 00:07:59,400 Speaker 5: after pay is only for buying retail items. 183 00:08:00,080 --> 00:08:03,120 Speaker 3: So I'm actually reading now that after pay is expanding 184 00:08:03,160 --> 00:08:06,160 Speaker 3: its footprints into GP clinics and radiology and pharmacis and 185 00:08:06,200 --> 00:08:08,760 Speaker 3: all that. But it's already been rolled out into over 186 00:08:08,840 --> 00:08:11,520 Speaker 3: eleven hundred dentists and optometrists nationally. 187 00:08:11,800 --> 00:08:12,840 Speaker 4: So what does this mean exactly? 188 00:08:12,920 --> 00:08:15,080 Speaker 3: Does it leave people with more out of pocket expenses 189 00:08:15,200 --> 00:08:16,880 Speaker 3: or is it better for them in the long term. 190 00:08:17,200 --> 00:08:20,760 Speaker 5: I think it's a really interesting question because used appropriately, 191 00:08:20,880 --> 00:08:23,280 Speaker 5: after pay could be a tool that enables people to 192 00:08:23,320 --> 00:08:26,840 Speaker 5: get access to medical procedures that they need in the 193 00:08:26,880 --> 00:08:30,200 Speaker 5: here and now. Whereas I think it could potentially leave 194 00:08:30,280 --> 00:08:33,520 Speaker 5: more vulnerable patients in a position where they're paying for 195 00:08:33,600 --> 00:08:38,120 Speaker 5: services they might not need, or choose elective services that 196 00:08:38,200 --> 00:08:41,240 Speaker 5: are not within their budgets. So, you know, you mentioned 197 00:08:41,280 --> 00:08:44,160 Speaker 5: that after pay has rolled out in eleven hundred dentists. 198 00:08:44,200 --> 00:08:48,520 Speaker 5: I think that's fantastic because dental hygiene is so important. 199 00:08:48,559 --> 00:08:50,599 Speaker 6: You know, we had a big giraffe that used to 200 00:08:50,679 --> 00:08:51,360 Speaker 6: come around to. 201 00:08:51,360 --> 00:08:55,719 Speaker 5: School, yes, Harold, So he used to come around to 202 00:08:55,760 --> 00:08:58,120 Speaker 5: schools and talk about how important it was. But the 203 00:08:58,160 --> 00:09:00,000 Speaker 5: one thing I think of when I think of dentists 204 00:09:00,200 --> 00:09:03,200 Speaker 5: how expensive it is, But how are people actually using 205 00:09:03,240 --> 00:09:05,679 Speaker 5: it in dentists. Are they going and getting their cavity 206 00:09:05,840 --> 00:09:08,280 Speaker 5: filled or they're going and getting some really nice veneers. 207 00:09:08,640 --> 00:09:11,000 Speaker 5: What does that look like in terms of how people 208 00:09:11,040 --> 00:09:13,199 Speaker 5: are using it? So I guess it really comes down 209 00:09:13,280 --> 00:09:16,920 Speaker 5: to whether it's being used for GP clinics, your pharmacy. 210 00:09:16,520 --> 00:09:17,199 Speaker 6: Or the dentist. 211 00:09:17,320 --> 00:09:19,360 Speaker 5: It really comes down to how people are using it, 212 00:09:19,480 --> 00:09:22,240 Speaker 5: whether they're using it responsibly or maybe they need some 213 00:09:22,280 --> 00:09:23,560 Speaker 5: more education around it. 214 00:09:23,880 --> 00:09:25,600 Speaker 3: So yeah, So what I'm gauging here is you can't 215 00:09:25,679 --> 00:09:27,400 Speaker 3: telp someone not to use it at all. 216 00:09:27,360 --> 00:09:28,000 Speaker 1: Absolutely not. 217 00:09:28,080 --> 00:09:30,120 Speaker 5: And it's not a bad service at the end of 218 00:09:30,120 --> 00:09:32,120 Speaker 5: the day. It's a bit like getting your car fixed. 219 00:09:32,240 --> 00:09:32,400 Speaker 6: Right. 220 00:09:32,720 --> 00:09:35,440 Speaker 5: Say I go into get my car serviced and I 221 00:09:35,480 --> 00:09:37,640 Speaker 5: was expecting it to be one hundred and fifty dollars 222 00:09:37,880 --> 00:09:39,280 Speaker 5: check up, but they tell me. 223 00:09:39,240 --> 00:09:40,959 Speaker 6: That my break discs are gone. 224 00:09:41,480 --> 00:09:43,880 Speaker 5: Is it a smart thing for me to leave the 225 00:09:43,920 --> 00:09:47,080 Speaker 5: car service place without having paid for that? Am I 226 00:09:47,160 --> 00:09:49,760 Speaker 5: putting myself at risk? Or am I better off if 227 00:09:49,800 --> 00:09:52,360 Speaker 5: I use a service like after pay where I can 228 00:09:52,720 --> 00:09:55,880 Speaker 5: pay a lower upfront fee for a service that I'm 229 00:09:55,920 --> 00:09:59,120 Speaker 5: going to need that puts my safety first, and then 230 00:09:59,160 --> 00:10:01,480 Speaker 5: pay it off over the long term by factoring it 231 00:10:01,520 --> 00:10:03,840 Speaker 5: into my budget. Is that where this should be at 232 00:10:04,000 --> 00:10:06,760 Speaker 5: Or Am I using it because I wanted new rims 233 00:10:06,800 --> 00:10:07,320 Speaker 5: on my car? 234 00:10:07,400 --> 00:10:10,360 Speaker 3: And that's maybe something that an individual has to assess themselves. 235 00:10:10,640 --> 00:10:12,640 Speaker 4: But it is so popular. We do know that. We 236 00:10:12,679 --> 00:10:15,079 Speaker 4: know that over two million Australians have used after pay. 237 00:10:15,440 --> 00:10:17,760 Speaker 3: Why do you think modern day lay by companies are 238 00:10:17,800 --> 00:10:20,320 Speaker 3: so popular, particularly amongst women. I know a lot of 239 00:10:20,360 --> 00:10:22,040 Speaker 3: my girlfriends use it, but I don't know if a 240 00:10:22,040 --> 00:10:23,080 Speaker 3: lot of my guy friends do. 241 00:10:23,559 --> 00:10:26,800 Speaker 5: I think it has a lot to do with impulse purchasing, 242 00:10:27,040 --> 00:10:30,760 Speaker 5: But also kind of that keeping up with the Kardashians style. 243 00:10:30,840 --> 00:10:33,760 Speaker 3: Well, how funny you mentioned that Kardashians Kim Kardashian's brand 244 00:10:34,160 --> 00:10:36,640 Speaker 3: KKW Beauty was one of the first adopters of after 245 00:10:36,679 --> 00:10:39,400 Speaker 3: pay in the US, which shows a lot about how 246 00:10:39,440 --> 00:10:42,200 Speaker 3: social media plays a role and celebrity plays a role 247 00:10:42,240 --> 00:10:44,920 Speaker 3: in this whole after pay thing. I think it's really interesting, 248 00:10:45,080 --> 00:10:47,920 Speaker 3: and I've been speaking a lot with clients recently about 249 00:10:47,920 --> 00:10:50,680 Speaker 3: Instagram culture and wanting to keep up with friends, and 250 00:10:50,720 --> 00:10:53,600 Speaker 3: you know, we see these memes floating around Instagram and 251 00:10:53,640 --> 00:10:57,160 Speaker 3: Facebook which are along the lines of how to millennials 252 00:10:57,240 --> 00:10:59,760 Speaker 3: afford their lifestyles and it being a game of guessing. 253 00:11:00,559 --> 00:11:02,720 Speaker 3: I think it's really interesting that we. 254 00:11:02,600 --> 00:11:05,040 Speaker 5: Have all of this pressure on top of us to, 255 00:11:05,280 --> 00:11:07,480 Speaker 5: you know, have that Gucci belt or have a pair 256 00:11:07,520 --> 00:11:10,760 Speaker 5: of Gucci sneakers and keep up with the trends that 257 00:11:10,800 --> 00:11:14,000 Speaker 5: Instagram influences are putting on the table for us, when 258 00:11:14,000 --> 00:11:16,840 Speaker 5: in reality, that's not normal. It is not normal to 259 00:11:16,880 --> 00:11:19,160 Speaker 5: walk around with a seven hundred dollar belt around your 260 00:11:19,160 --> 00:11:22,480 Speaker 5: waist when you're earning fifty thousand dollars, But a service 261 00:11:22,600 --> 00:11:25,200 Speaker 5: like after pay makes it a lot easier to justify 262 00:11:25,240 --> 00:11:28,160 Speaker 5: it to yourself. I think it's dangerous in that way 263 00:11:28,240 --> 00:11:31,760 Speaker 5: because it's enabling people to make purchases that are outside 264 00:11:31,800 --> 00:11:34,880 Speaker 5: of their means, and they are not not giving it 265 00:11:34,960 --> 00:11:38,440 Speaker 5: long term thought because instant gratification is such a stronger 266 00:11:38,480 --> 00:11:42,400 Speaker 5: feeling than long term savings, and I think people really 267 00:11:42,440 --> 00:11:44,560 Speaker 5: need to step back and have a think about is 268 00:11:44,600 --> 00:11:47,360 Speaker 5: this a purchase that I would make in six weeks? 269 00:11:47,720 --> 00:11:50,160 Speaker 5: You know, you see a really beautiful dress online and 270 00:11:50,200 --> 00:11:51,400 Speaker 5: after pay makes it really. 271 00:11:51,280 --> 00:11:52,120 Speaker 6: Easy to purchase. 272 00:11:52,440 --> 00:11:55,160 Speaker 5: Is it something that in six weeks you would still 273 00:11:55,200 --> 00:11:58,160 Speaker 5: purchase for yourself if not, have a think about it 274 00:11:58,200 --> 00:12:00,200 Speaker 5: and regardless of whether you can have to pay it now, 275 00:12:00,440 --> 00:12:03,280 Speaker 5: maybe sit on that decision for twenty four hours, have 276 00:12:03,400 --> 00:12:04,200 Speaker 5: a think about it. 277 00:12:04,240 --> 00:12:06,480 Speaker 6: Is it aligned to my goals? Is it aligned to 278 00:12:06,520 --> 00:12:08,160 Speaker 6: what I need to do? Do I really need a 279 00:12:08,200 --> 00:12:09,240 Speaker 6: new dress for the weekend? 280 00:12:09,360 --> 00:12:10,760 Speaker 3: A lot of the time when I leave it, I 281 00:12:10,840 --> 00:12:12,920 Speaker 3: just forget about the product, and I don't actually like 282 00:12:12,960 --> 00:12:14,760 Speaker 3: I don't actually need it, I don't want it in 283 00:12:14,880 --> 00:12:16,640 Speaker 3: a few days or weeks down the track. 284 00:12:16,720 --> 00:12:19,240 Speaker 5: Yeah. I posted something the other day on our Instagram 285 00:12:19,280 --> 00:12:22,120 Speaker 5: actually about putting twenty four hours between you and your spending. 286 00:12:22,200 --> 00:12:23,040 Speaker 4: I saw that. 287 00:12:22,920 --> 00:12:25,360 Speaker 5: Yeah, and making sure that you're asking yourself a couple 288 00:12:25,400 --> 00:12:27,960 Speaker 5: of questions before purchasing it. And I guess it's my 289 00:12:28,040 --> 00:12:30,400 Speaker 5: way of trying to talk people out of purchases they 290 00:12:30,440 --> 00:12:32,559 Speaker 5: don't need to make. But at the same time, these 291 00:12:32,559 --> 00:12:35,480 Speaker 5: are things that we all should be thinking about before 292 00:12:35,520 --> 00:12:37,760 Speaker 5: purchasing something that is non essential. 293 00:12:38,120 --> 00:12:40,240 Speaker 3: So do you think then that after Pay would be 294 00:12:40,240 --> 00:12:43,360 Speaker 3: thriving in a time where Instagram didn't exist or wasn't 295 00:12:43,400 --> 00:12:43,880 Speaker 3: as popular. 296 00:12:44,040 --> 00:12:45,520 Speaker 5: I think that it would be silly of me to 297 00:12:45,559 --> 00:12:48,600 Speaker 5: say that this product wouldn't be something that people wanted 298 00:12:48,600 --> 00:12:51,240 Speaker 5: to use, regardless of the time that we're in. Like, 299 00:12:51,360 --> 00:12:54,240 Speaker 5: think back to when I was, you know, five or six, 300 00:12:54,600 --> 00:12:57,040 Speaker 5: and my mom used to put you toys on layby 301 00:12:57,200 --> 00:12:59,920 Speaker 5: at the Target toy sale so that she could lie 302 00:13:00,080 --> 00:13:02,360 Speaker 5: them up for Christmas. And I remember that being such 303 00:13:02,400 --> 00:13:04,760 Speaker 5: an exciting thing to do, where, you know, we'd get 304 00:13:04,840 --> 00:13:07,280 Speaker 5: to go pick toys for our cousins and I'd get 305 00:13:07,280 --> 00:13:09,320 Speaker 5: to pick a toy for my sister, and we'd put 306 00:13:09,320 --> 00:13:12,080 Speaker 5: it all on layby. Layby is when you get the 307 00:13:12,120 --> 00:13:15,720 Speaker 5: product after you pas. Yes, So after pay is essentially 308 00:13:16,120 --> 00:13:19,960 Speaker 5: a reverse layby, So it's by now pay later. I 309 00:13:20,000 --> 00:13:22,199 Speaker 5: think it does take the effort out of the transaction, 310 00:13:22,360 --> 00:13:26,559 Speaker 5: and it really goes back to that instant versus delayed gratification. 311 00:13:26,960 --> 00:13:29,800 Speaker 5: So layby, you would think about what you were going 312 00:13:29,880 --> 00:13:32,320 Speaker 5: to purchase. You would go, all right, I need this product. 313 00:13:32,440 --> 00:13:34,120 Speaker 5: I can have it in eight weeks. I can have 314 00:13:34,200 --> 00:13:36,640 Speaker 5: it in ten weeks with you know, ten payments or 315 00:13:36,640 --> 00:13:39,240 Speaker 5: four payments or however many payments it was going to take. 316 00:13:39,480 --> 00:13:43,040 Speaker 5: But your gratification on that product was delayed because you 317 00:13:43,040 --> 00:13:46,040 Speaker 5: didn't receive the product until you had fulfilled the goal 318 00:13:46,080 --> 00:13:50,320 Speaker 5: of paying off that purchase. Whereas after pay works in reverse, 319 00:13:50,679 --> 00:13:53,079 Speaker 5: you get the product up front, you get to satisfy 320 00:13:53,120 --> 00:13:56,920 Speaker 5: your instant gratification. However, you're still stuck with a bill 321 00:13:57,040 --> 00:13:59,600 Speaker 5: for something that maybe in three or four weeks you're 322 00:13:59,640 --> 00:14:02,480 Speaker 5: not you using or you didn't feel like you needed, 323 00:14:02,600 --> 00:14:04,720 Speaker 5: and because it's already used, you can't return it. 324 00:14:04,720 --> 00:14:07,199 Speaker 4: It's not worth the pain that you go through off exactly. 325 00:14:07,320 --> 00:14:10,680 Speaker 5: Whereas a layby is kind of building up to a 326 00:14:10,760 --> 00:14:13,720 Speaker 5: purchase and you're you know, chipping away at a larger goal, 327 00:14:13,840 --> 00:14:16,280 Speaker 5: and then that item is the reward for the goal 328 00:14:16,320 --> 00:14:18,600 Speaker 5: that you've put in place for yourself. So I feel 329 00:14:18,600 --> 00:14:21,440 Speaker 5: like it takes that away. But I think it would 330 00:14:21,440 --> 00:14:24,120 Speaker 5: be naive of me to say that after pay wouldn't 331 00:14:24,160 --> 00:14:28,560 Speaker 5: exist in a world where Instagram didn't because layby was 332 00:14:28,680 --> 00:14:30,200 Speaker 5: and used to be so popular. 333 00:14:30,520 --> 00:14:32,680 Speaker 3: So what do you think young people aren't aware of 334 00:14:32,720 --> 00:14:34,800 Speaker 3: then when it comes to using after pay, because so 335 00:14:34,840 --> 00:14:38,440 Speaker 3: many young people are using it, perhaps maybe irresponsibly at times. 336 00:14:38,720 --> 00:14:42,640 Speaker 5: So we've touched on why it satisfies instagratification and how 337 00:14:42,680 --> 00:14:46,280 Speaker 5: people aren't really considering the ongoing monthly payments. We've also 338 00:14:46,360 --> 00:14:49,520 Speaker 5: talked about how people are using it effectively, like my 339 00:14:49,640 --> 00:14:52,320 Speaker 5: friend how she's, you know, putting it into a budget 340 00:14:52,360 --> 00:14:55,120 Speaker 5: and making sure that one after pay debt is paid 341 00:14:55,120 --> 00:14:58,080 Speaker 5: off before she even considers a new one. I don't 342 00:14:58,080 --> 00:15:00,800 Speaker 5: think people understand how it impacts their credit rating. I 343 00:15:00,840 --> 00:15:05,080 Speaker 5: don't think people understand how afterpay affects their goals, how 344 00:15:05,120 --> 00:15:08,880 Speaker 5: it affects their future wealth, how it affects what they're 345 00:15:08,920 --> 00:15:10,720 Speaker 5: planning to do for the rest of their lives. And 346 00:15:10,760 --> 00:15:13,640 Speaker 5: that sounds quite dramatic, but at the same time, if 347 00:15:13,640 --> 00:15:17,040 Speaker 5: you're living in a world where you are getting things immediately, 348 00:15:17,440 --> 00:15:21,360 Speaker 5: you also adopt that feeling onto larger goals so I 349 00:15:21,400 --> 00:15:24,080 Speaker 5: can buy a dress right now. This is really great. 350 00:15:24,560 --> 00:15:27,120 Speaker 5: It's here if you've bought it off the iconics sometimes 351 00:15:27,160 --> 00:15:29,800 Speaker 5: within the day. I'm never going to afford a house 352 00:15:30,080 --> 00:15:32,760 Speaker 5: because we don't have the commitment to long term goals 353 00:15:32,800 --> 00:15:36,000 Speaker 5: and saving for five, six, seven years for your first home, 354 00:15:36,280 --> 00:15:38,880 Speaker 5: even ten years for your first home then seems like 355 00:15:38,920 --> 00:15:40,400 Speaker 5: a really ridiculous thing to do. 356 00:15:40,560 --> 00:15:42,680 Speaker 4: You mentioned credit rating. We're going to talk about that 357 00:15:42,800 --> 00:15:50,360 Speaker 4: right after we hear from you. Guys. 358 00:15:54,480 --> 00:15:56,880 Speaker 3: Hi, there, you've called the ses on the Money Hotline. 359 00:15:57,120 --> 00:15:59,160 Speaker 3: Do you have a money problem you want help solving. 360 00:15:59,360 --> 00:16:00,680 Speaker 3: Do you have a money dilemma you just. 361 00:16:00,680 --> 00:16:02,760 Speaker 4: Want to chat about. Victoria is here to help. 362 00:16:02,880 --> 00:16:05,160 Speaker 3: Every week we'll be playing your hotline questions to help 363 00:16:05,200 --> 00:16:07,000 Speaker 3: make sense of the money mess you may have found 364 00:16:07,000 --> 00:16:09,320 Speaker 3: yourself in. Give us a call on oh four three 365 00:16:09,440 --> 00:16:11,800 Speaker 3: five two nine three double eighty six. 366 00:16:11,600 --> 00:16:13,400 Speaker 4: And you might find yourself on the show. 367 00:16:13,880 --> 00:16:15,600 Speaker 3: But for now, here's a whole bunch of you with 368 00:16:15,640 --> 00:16:17,600 Speaker 3: the same issue. 369 00:16:23,280 --> 00:16:23,440 Speaker 1: Hi. 370 00:16:23,520 --> 00:16:27,160 Speaker 8: Girls, I'm twenty and I think I'm the master pay 371 00:16:27,240 --> 00:16:30,600 Speaker 8: I picked. I currently owe around seven hundred and eighty 372 00:16:30,640 --> 00:16:33,720 Speaker 8: dollars in upcoming payments, which is definitely more than I 373 00:16:33,760 --> 00:16:37,040 Speaker 8: have to my name to this date. I think it's 374 00:16:37,080 --> 00:16:38,920 Speaker 8: difficult because I think for me, it's a lot about 375 00:16:39,040 --> 00:16:40,840 Speaker 8: keeping up and it's become a bit of a coping 376 00:16:40,920 --> 00:16:43,800 Speaker 8: mechanism to view with the fact that I don't have 377 00:16:43,960 --> 00:16:46,440 Speaker 8: the means to remain as you know, relevant in terms 378 00:16:46,440 --> 00:16:48,960 Speaker 8: of clothes and fashion. I've also been buying flights from 379 00:16:48,960 --> 00:16:52,240 Speaker 8: a recently bit ad hoc. I'd love some advice on 380 00:16:52,360 --> 00:16:54,880 Speaker 8: how to college. I know it's you know, can't. 381 00:16:54,640 --> 00:16:56,160 Speaker 9: Really be as easy as just though it be apup 382 00:16:56,200 --> 00:16:57,200 Speaker 9: in practice. 383 00:16:56,800 --> 00:16:58,280 Speaker 8: And I think it would help me kind of get 384 00:16:58,280 --> 00:17:00,960 Speaker 8: out of debt, which would be great considering the students 385 00:17:00,960 --> 00:17:03,200 Speaker 8: not down in a lot of money thanks so much. 386 00:17:03,280 --> 00:17:06,520 Speaker 3: Like the first episode, so it sounds like this listener 387 00:17:06,680 --> 00:17:08,600 Speaker 3: is aware of the fact she's in a bit of strife. 388 00:17:08,760 --> 00:17:11,159 Speaker 4: Does this listener's story stuck up with the worst you've 389 00:17:11,200 --> 00:17:14,120 Speaker 4: ever heard? Like are the other horror stories you've come across? 390 00:17:14,200 --> 00:17:17,280 Speaker 5: I think it's actually quite common to be in that position. 391 00:17:17,520 --> 00:17:19,879 Speaker 5: Like I'm not going to say it's the worst, but 392 00:17:19,920 --> 00:17:24,080 Speaker 5: it's also not the best. So I've come across people 393 00:17:24,240 --> 00:17:27,040 Speaker 5: in the last year or so who have been paying 394 00:17:27,080 --> 00:17:30,280 Speaker 5: back thousands of dollars on after pay because it's all 395 00:17:30,280 --> 00:17:33,119 Speaker 5: added up. And I'm not saying that these people just 396 00:17:33,119 --> 00:17:34,920 Speaker 5: go out and get an after pay account and then 397 00:17:35,440 --> 00:17:37,920 Speaker 5: a week later they're able to access thousands of dollars 398 00:17:38,000 --> 00:17:41,160 Speaker 5: worth of credit. These things creep up on you over time. 399 00:17:41,520 --> 00:17:44,880 Speaker 5: So with after pay, I cannot say from experience because 400 00:17:44,880 --> 00:17:47,640 Speaker 5: I haven't actually used it. As far as I'm aware, 401 00:17:47,720 --> 00:17:52,200 Speaker 5: each time you transact with after pay, your credit level increases. 402 00:17:52,359 --> 00:17:56,399 Speaker 5: Your credit can essentially increase over time. So this person 403 00:17:56,440 --> 00:17:58,400 Speaker 5: would have, you know, started with a three hundred dollars 404 00:17:58,600 --> 00:17:59,840 Speaker 5: and then it would have gone to four or five, 405 00:18:00,359 --> 00:18:02,280 Speaker 5: and now she's up to a point where she is 406 00:18:02,320 --> 00:18:04,440 Speaker 5: paying back one thousand dollars a month. 407 00:18:04,880 --> 00:18:06,760 Speaker 6: So this person's situation. 408 00:18:06,520 --> 00:18:09,400 Speaker 5: Isn't completely out of out of line with what I've 409 00:18:09,400 --> 00:18:12,119 Speaker 5: heard previously, but I do think it is time for 410 00:18:12,119 --> 00:18:14,679 Speaker 5: her to potentially just close down her after pay account. 411 00:18:14,760 --> 00:18:17,119 Speaker 5: If you can't use it responsibly, if it is not 412 00:18:17,240 --> 00:18:22,200 Speaker 5: contributing to you bettering your life in a non possessional way, 413 00:18:22,760 --> 00:18:24,000 Speaker 5: I think it needs to go. 414 00:18:24,280 --> 00:18:26,920 Speaker 3: Okay, So there are rumors floating around that after pay 415 00:18:27,000 --> 00:18:29,080 Speaker 3: debt can I hurt your chances of getting a mortgage? 416 00:18:29,320 --> 00:18:29,920 Speaker 1: Is that true? 417 00:18:29,960 --> 00:18:31,399 Speaker 4: What does it do to your credit rating? 418 00:18:31,960 --> 00:18:34,959 Speaker 5: I think it's really interesting because so many people are 419 00:18:35,000 --> 00:18:37,280 Speaker 5: going to have an opinion on this because they are 420 00:18:37,400 --> 00:18:40,040 Speaker 5: using after pay and they had no problem getting their 421 00:18:40,080 --> 00:18:43,160 Speaker 5: mortgage through or they had no problem refinancing. 422 00:18:43,320 --> 00:18:44,400 Speaker 6: And you hear a lot. 423 00:18:44,200 --> 00:18:48,879 Speaker 5: Of anecdotal stories, especially on threads in our Facebook group, 424 00:18:48,920 --> 00:18:51,639 Speaker 5: about people saying, oh, well, I had no problem with it, 425 00:18:51,720 --> 00:18:54,480 Speaker 5: just tell your mortgage broker, and then other people saying, oh, 426 00:18:54,560 --> 00:18:57,400 Speaker 5: my mortgage broker told me to close down the account. 427 00:18:57,720 --> 00:19:00,920 Speaker 5: So when you're talking about credit and it potentially impacting 428 00:19:00,960 --> 00:19:03,080 Speaker 5: you being able to get a mortgage, they are saying 429 00:19:03,119 --> 00:19:05,679 Speaker 5: that for a couple of reasons. So after Pay is 430 00:19:05,760 --> 00:19:08,600 Speaker 5: a line of credit, regardless of what you would like 431 00:19:08,640 --> 00:19:11,440 Speaker 5: to classify it as, regardless of what their website says, 432 00:19:11,680 --> 00:19:14,520 Speaker 5: after Pay is a line of credit, and it will 433 00:19:14,560 --> 00:19:17,840 Speaker 5: impact whether you're able to finance something bigger. So that 434 00:19:18,000 --> 00:19:21,240 Speaker 5: means that if you're committed to a monthly repayment, it's 435 00:19:21,280 --> 00:19:24,159 Speaker 5: going to need to be taken into consideration when working 436 00:19:24,200 --> 00:19:26,600 Speaker 5: out how much you can afford on a mortgage each 437 00:19:26,720 --> 00:19:29,000 Speaker 5: month and whether a bank is willing to lend to you. 438 00:19:29,359 --> 00:19:32,400 Speaker 5: So when we talk about credit and what mortgage brokers 439 00:19:32,400 --> 00:19:33,760 Speaker 5: look at and what the banks look at. 440 00:19:33,800 --> 00:19:34,840 Speaker 6: They actually look. 441 00:19:34,720 --> 00:19:37,479 Speaker 5: At the three seas of credit, which is potentially something 442 00:19:37,560 --> 00:19:43,600 Speaker 5: that people haven't heard of before. So these include four factors, character, capacity, capital, 443 00:19:43,680 --> 00:19:46,919 Speaker 5: and conditions. And I think after pay also plays a 444 00:19:46,960 --> 00:19:50,960 Speaker 5: lot to character. So character meaning what type of person 445 00:19:51,000 --> 00:19:52,800 Speaker 5: are you? Are you the type of person that does 446 00:19:52,880 --> 00:19:55,080 Speaker 5: take up fast loans, You're the type of person that 447 00:19:55,200 --> 00:19:59,000 Speaker 5: is relying on after pay to service debts and immediate needs. 448 00:19:59,080 --> 00:20:03,520 Speaker 5: Are you after inst gratification? If so, banks are judging 449 00:20:03,560 --> 00:20:06,960 Speaker 5: on that. They are looking especially in this time after 450 00:20:07,000 --> 00:20:09,479 Speaker 5: a Royal commission, after things have been cracked down on, 451 00:20:09,640 --> 00:20:12,480 Speaker 5: people are looking at your character and whether you're someone 452 00:20:12,520 --> 00:20:15,040 Speaker 5: that they do want to lend money to. So it's 453 00:20:15,080 --> 00:20:17,359 Speaker 5: not just about whether you are good with your money 454 00:20:17,640 --> 00:20:20,160 Speaker 5: and budgeting it. After pay is seen as a tool 455 00:20:20,240 --> 00:20:23,879 Speaker 5: that is used by people who can't budget them finances effectively. 456 00:20:24,160 --> 00:20:25,960 Speaker 5: And if you're looking for a home loan, do you 457 00:20:26,000 --> 00:20:27,360 Speaker 5: want to be put in that bucket? 458 00:20:27,560 --> 00:20:29,880 Speaker 3: No, that was a hypothetical question, but no I don't. 459 00:20:30,400 --> 00:20:33,160 Speaker 3: So you've actually mentioned this to me before. Off Mike 460 00:20:33,320 --> 00:20:35,840 Speaker 3: and I found it really interesting what happens when you 461 00:20:35,880 --> 00:20:38,280 Speaker 3: don't disclose your after pay debt to the bank. 462 00:20:38,520 --> 00:20:42,000 Speaker 5: It's essentially undisclosed personal debt. If you don't tell a 463 00:20:42,040 --> 00:20:45,240 Speaker 5: bank about a debt that you have, they're not going 464 00:20:45,320 --> 00:20:47,520 Speaker 5: to be very happy about it. I think you know, 465 00:20:47,560 --> 00:20:49,679 Speaker 5: there are so many different factors that come into this, 466 00:20:49,800 --> 00:20:52,480 Speaker 5: but not disclosing debt is a massive red flag to 467 00:20:52,520 --> 00:20:55,359 Speaker 5: a bank. If you're not disclosing your after pay, why 468 00:20:55,400 --> 00:20:58,359 Speaker 5: didn't you disclose it? I think it's one thing to go, Okay, 469 00:20:58,440 --> 00:21:00,840 Speaker 5: I have after pay, and your mortgage broker might go 470 00:21:00,920 --> 00:21:04,080 Speaker 5: all right, Annabelle, if you're applying for this mortgage, you've 471 00:21:04,080 --> 00:21:06,240 Speaker 5: got after pay, let's put together a letter that says 472 00:21:06,240 --> 00:21:08,439 Speaker 5: why you use after pay and that you've closed the 473 00:21:08,480 --> 00:21:10,879 Speaker 5: account and that account has been closed because you no 474 00:21:10,960 --> 00:21:12,800 Speaker 5: longer use it and you just used it to purchase 475 00:21:12,840 --> 00:21:16,320 Speaker 5: a couple of things. But you're good otherwise financially. That's 476 00:21:16,440 --> 00:21:19,880 Speaker 5: very different to you hiding something again that place to character. 477 00:21:20,080 --> 00:21:20,840 Speaker 6: Have you told it? 478 00:21:20,920 --> 00:21:21,080 Speaker 5: No? 479 00:21:21,160 --> 00:21:21,320 Speaker 2: Right? 480 00:21:21,400 --> 00:21:21,640 Speaker 4: Yeah? 481 00:21:21,640 --> 00:21:21,760 Speaker 3: No? 482 00:21:21,880 --> 00:21:24,240 Speaker 6: Have you told them everything you needed to tell them? 483 00:21:24,359 --> 00:21:25,960 Speaker 5: So? I have people in the she'es on the mining 484 00:21:26,000 --> 00:21:29,240 Speaker 5: community that I've had conversations with who have had their 485 00:21:29,280 --> 00:21:32,399 Speaker 5: mortgages declined because they've forgotten to disclose that they have 486 00:21:32,560 --> 00:21:35,840 Speaker 5: after pay debt because they didn't see it as debt. 487 00:21:35,960 --> 00:21:39,040 Speaker 5: They went through the application process, they filled in how 488 00:21:39,040 --> 00:21:41,479 Speaker 5: many credit cards they had, they filled in whether they 489 00:21:41,520 --> 00:21:44,440 Speaker 5: had a personal loan or not. But these people genuinely 490 00:21:44,480 --> 00:21:47,520 Speaker 5: did not consider after pay as a line of credit, 491 00:21:47,720 --> 00:21:52,280 Speaker 5: therefore didn't disclose it and unfortunately had their mortgages declined 492 00:21:52,400 --> 00:21:56,000 Speaker 5: or their applications for loans declined because they didn't tell 493 00:21:56,000 --> 00:21:56,760 Speaker 5: the bank about it. 494 00:21:56,920 --> 00:21:58,800 Speaker 3: Of course, that wasn't the only call we got on 495 00:21:58,800 --> 00:22:01,840 Speaker 3: today's topic. One informed millennials are using after pay in 496 00:22:01,840 --> 00:22:04,560 Speaker 3: twenty nineteen, meaning a whole lot of you are struggling 497 00:22:04,600 --> 00:22:05,440 Speaker 3: in the same way. 498 00:22:12,200 --> 00:22:14,159 Speaker 8: Ki there, my name is Sarah. 499 00:22:14,560 --> 00:22:17,720 Speaker 9: I'm just interested in, like, if you could discuss some 500 00:22:17,760 --> 00:22:21,439 Speaker 9: strategies to use services like after pay in a productive way, 501 00:22:21,480 --> 00:22:24,320 Speaker 9: because the way I've seen it before is kind of 502 00:22:24,359 --> 00:22:26,439 Speaker 9: just an excuse to kind of be and spend and 503 00:22:26,560 --> 00:22:27,920 Speaker 9: buy things on a whim. 504 00:22:28,160 --> 00:22:28,680 Speaker 4: So I was just. 505 00:22:28,640 --> 00:22:30,760 Speaker 9: Wondering how you can use something like that in a 506 00:22:30,800 --> 00:22:31,720 Speaker 9: productive way. 507 00:22:32,359 --> 00:22:37,040 Speaker 7: Thank you. I can't seem to get it into my 508 00:22:37,119 --> 00:22:39,560 Speaker 7: head that just because I'm buying it on after pay 509 00:22:39,720 --> 00:22:41,960 Speaker 7: doesn't mean it doesn't cost the same amount that it 510 00:22:42,000 --> 00:22:44,760 Speaker 7: says on the screen, I seem to think that because 511 00:22:44,760 --> 00:22:48,879 Speaker 7: I'm after paying something for thirteen ninety five or fortnight 512 00:22:49,440 --> 00:22:53,439 Speaker 7: or a week, it somehow isn't one hundred dollars or 513 00:22:53,480 --> 00:22:56,560 Speaker 7: like fifty dollars, And I don't know how to train 514 00:22:56,640 --> 00:22:59,120 Speaker 7: myself to know this will still cost the same two 515 00:22:59,240 --> 00:23:03,720 Speaker 7: hundred dollars, just basically swindling myself and making myself paid 516 00:23:03,760 --> 00:23:05,960 Speaker 7: in the long term. I don't know if that made 517 00:23:06,040 --> 00:23:08,359 Speaker 7: much sense. I love the podcast, Thanks guys. 518 00:23:10,359 --> 00:23:15,560 Speaker 10: Hi ladies, Well, my biggest issue is after pay. So 519 00:23:16,280 --> 00:23:20,840 Speaker 10: after pay is my weakness. It turns into like my 520 00:23:20,960 --> 00:23:26,440 Speaker 10: little treats. I kind of justify making not ridiculous purchases, 521 00:23:27,000 --> 00:23:30,960 Speaker 10: but treating myself per se, and I use after pay, 522 00:23:30,960 --> 00:23:34,160 Speaker 10: and it ends up building up bigger and bigger and bigger, 523 00:23:34,760 --> 00:23:37,240 Speaker 10: and then it's almost not treating myself and I'm not 524 00:23:37,359 --> 00:23:41,199 Speaker 10: realizing exactly how much I'm spending. So I'm wanting to 525 00:23:41,320 --> 00:23:45,439 Speaker 10: advise and try to stop that whole treat yourself situation, 526 00:23:46,320 --> 00:23:48,760 Speaker 10: but saving money at the same time and not getting 527 00:23:48,760 --> 00:23:51,320 Speaker 10: into that after pay. Thanks ladies. 528 00:23:51,520 --> 00:23:51,680 Speaker 5: Ye. 529 00:23:53,560 --> 00:23:55,560 Speaker 3: Based on how she's on the Money Hotline, it really 530 00:23:55,600 --> 00:23:58,119 Speaker 3: does seem like many women are struggling with a kind 531 00:23:58,119 --> 00:23:59,480 Speaker 3: of after pay addiction. 532 00:24:00,040 --> 00:24:01,440 Speaker 4: Do you think that's an accurate assessment? 533 00:24:01,560 --> 00:24:01,960 Speaker 1: Victoria? 534 00:24:02,560 --> 00:24:05,000 Speaker 5: I think it would be an accurate assessment because if 535 00:24:05,000 --> 00:24:07,880 Speaker 5: people are saying they feel addicted to something, they're saying 536 00:24:07,880 --> 00:24:09,879 Speaker 5: that they're feeling a rush when they purchase things. 537 00:24:10,200 --> 00:24:11,800 Speaker 6: So that plays then into the. 538 00:24:11,800 --> 00:24:15,800 Speaker 5: Psychology of after pay and whether there is a psychology 539 00:24:15,840 --> 00:24:18,840 Speaker 5: of after pay or whether there's a psychology of instant gratification. 540 00:24:19,480 --> 00:24:22,920 Speaker 5: So after pay enables us to buy things on a whim, 541 00:24:23,119 --> 00:24:25,679 Speaker 5: it enables us to not have to part with cash, 542 00:24:25,920 --> 00:24:28,840 Speaker 5: and parting with cash is really hard. If someone took 543 00:24:28,960 --> 00:24:31,080 Speaker 5: out of your bank account and gave you, you know, 544 00:24:31,119 --> 00:24:32,879 Speaker 5: two hundred dollars for the way, and said this is 545 00:24:32,920 --> 00:24:35,919 Speaker 5: all you can spend on your groceries and your discretionary items, 546 00:24:36,359 --> 00:24:38,720 Speaker 5: how would you feel having to break a fifty dollar 547 00:24:38,840 --> 00:24:42,119 Speaker 5: note every time you wanted to purchase something. Most people 548 00:24:42,240 --> 00:24:44,480 Speaker 5: would be a little bit more reserved in their spending 549 00:24:44,520 --> 00:24:47,520 Speaker 5: when they genuinely have to hand over cash when they 550 00:24:47,560 --> 00:24:50,600 Speaker 5: feel as though they are losing something, whereas after pay 551 00:24:50,640 --> 00:24:53,000 Speaker 5: makes you feel like you're gaining something and not losing 552 00:24:53,040 --> 00:24:53,359 Speaker 5: a lot. 553 00:24:53,720 --> 00:24:56,480 Speaker 3: So then let's talk about retraining our activity and habits 554 00:24:56,520 --> 00:24:58,840 Speaker 3: when it comes to after pay. If women are listening 555 00:24:58,840 --> 00:25:00,720 Speaker 3: to this and are really struggling under a heap of 556 00:25:00,760 --> 00:25:02,760 Speaker 3: after paid debt, what would you recommend? 557 00:25:03,119 --> 00:25:05,679 Speaker 5: I think if they're really struggling, the first thing to 558 00:25:05,760 --> 00:25:09,520 Speaker 5: do is actually go go back to episode one, do 559 00:25:09,640 --> 00:25:12,639 Speaker 5: your earn, spend own and O and have a really 560 00:25:12,640 --> 00:25:14,800 Speaker 5: good think about the goals that you want to put 561 00:25:14,800 --> 00:25:18,040 Speaker 5: in place for yourself. So let's forget for five minutes 562 00:25:18,080 --> 00:25:20,440 Speaker 5: that you've got the after paid debt. Have a think 563 00:25:20,480 --> 00:25:22,520 Speaker 5: about what you want to be achieving. What are you 564 00:25:22,640 --> 00:25:25,800 Speaker 5: saving for? Are these materialistic things a part of your 565 00:25:25,840 --> 00:25:28,320 Speaker 5: spending plan? Are they a part of the goals that 566 00:25:28,359 --> 00:25:31,400 Speaker 5: you're setting yourself for the next twelve months. Once you've 567 00:25:31,400 --> 00:25:34,080 Speaker 5: worked that out, then have a good think about all right, 568 00:25:34,200 --> 00:25:36,600 Speaker 5: is this debt in line with what I want to 569 00:25:36,600 --> 00:25:37,200 Speaker 5: be achieving? 570 00:25:37,680 --> 00:25:40,080 Speaker 6: Yes it is, No it's not. How does that work? 571 00:25:40,520 --> 00:25:44,679 Speaker 5: And then work towards your goals as opposed to just 572 00:25:44,720 --> 00:25:48,119 Speaker 5: seeing after pain isolation. I think this comes back to 573 00:25:48,160 --> 00:25:50,520 Speaker 5: what we're saying before about women having their heads in 574 00:25:50,560 --> 00:25:53,600 Speaker 5: the sand and how we've gotten to this space financially 575 00:25:53,760 --> 00:25:56,160 Speaker 5: as a collective, we're in a position where we want 576 00:25:56,200 --> 00:25:59,720 Speaker 5: to empower ourselves financially, However, we are doing things that 577 00:25:59,720 --> 00:26:04,160 Speaker 5: are working completely against our goals. If anyone could sit 578 00:26:04,160 --> 00:26:06,400 Speaker 5: in front of me and say, Victoria, after pay has 579 00:26:06,440 --> 00:26:09,760 Speaker 5: helped me achieve my goals by ABC and D, I 580 00:26:09,840 --> 00:26:14,000 Speaker 5: would be shocked. After pay is such a frivolous thing 581 00:26:14,080 --> 00:26:17,280 Speaker 5: to use. It enables us to purchase things that we 582 00:26:17,359 --> 00:26:21,000 Speaker 5: don't necessarily need. I haven't seen anybody in our Facebook 583 00:26:21,040 --> 00:26:23,680 Speaker 5: group that tells me they're using after pay for things 584 00:26:23,720 --> 00:26:25,160 Speaker 5: that are essential. 585 00:26:25,840 --> 00:26:27,320 Speaker 6: I've literally not seen it. 586 00:26:27,320 --> 00:26:31,040 Speaker 5: People aren't saying, look, Victoria, I'm struggling with my grocery 587 00:26:31,119 --> 00:26:33,560 Speaker 5: bill and I after paid it. Some of their biggest 588 00:26:33,560 --> 00:26:37,160 Speaker 5: clients include The Iconic and Kylie Jenner. Are we really 589 00:26:37,160 --> 00:26:39,159 Speaker 5: spending money on the things that we need or are 590 00:26:39,200 --> 00:26:40,960 Speaker 5: we spending money on things we just want? 591 00:26:41,800 --> 00:26:45,000 Speaker 3: I actually read somewhere that True Brand Steve Madden said 592 00:26:45,040 --> 00:26:48,240 Speaker 3: that not only have their sales increased, so too of 593 00:26:48,240 --> 00:26:50,960 Speaker 3: the average items and spend per transaction when shopping with 594 00:26:51,040 --> 00:26:54,040 Speaker 3: after pay. So beforehand purchases were spending a certain amount, 595 00:26:54,280 --> 00:26:56,520 Speaker 3: and now that after pay has come in, it's noticeable 596 00:26:56,520 --> 00:26:57,720 Speaker 3: that they've been spending more. 597 00:26:58,200 --> 00:27:00,760 Speaker 5: I feel like I sound like a broken record, but 598 00:27:00,880 --> 00:27:03,879 Speaker 5: instant gratification. Why would you want one pair of shoes 599 00:27:03,920 --> 00:27:07,320 Speaker 5: when you could have two? I want to I do too, 600 00:27:07,400 --> 00:27:10,840 Speaker 5: because people spending is increasing. I think the average transaction 601 00:27:11,000 --> 00:27:13,119 Speaker 5: size on after pay at the moment is one hundred 602 00:27:13,119 --> 00:27:16,000 Speaker 5: and fifty dollars, and that is actually quite high, or 603 00:27:16,080 --> 00:27:19,639 Speaker 5: I think that's quite high. We don't just walk into 604 00:27:19,720 --> 00:27:22,080 Speaker 5: a shop and accidentally purchase one hundred and fifty dollar 605 00:27:22,200 --> 00:27:24,240 Speaker 5: dress or one hundred and fifty dollars a pair of shoes. 606 00:27:24,440 --> 00:27:26,960 Speaker 5: For me, that purchase is considered and I do go, 607 00:27:27,000 --> 00:27:28,720 Speaker 5: all right, how many times am I going to wear this? 608 00:27:28,960 --> 00:27:31,680 Speaker 5: But maybe my take on things and maybe the way 609 00:27:31,720 --> 00:27:34,639 Speaker 5: I approach finance is different to the norm. Maybe people 610 00:27:34,680 --> 00:27:36,919 Speaker 5: are spending one hundred and fifty dollars on things, But 611 00:27:36,960 --> 00:27:38,640 Speaker 5: I think it's time to have a really good think 612 00:27:38,680 --> 00:27:41,520 Speaker 5: about that and potentially start a culture of change. 613 00:27:44,440 --> 00:27:47,040 Speaker 3: Okay, now for the fun stuff. Each week, we're bringing 614 00:27:47,080 --> 00:27:47,960 Speaker 3: you a money dairy. 615 00:27:48,280 --> 00:27:48,960 Speaker 4: Let's do this. 616 00:27:52,600 --> 00:27:55,639 Speaker 3: Today's money dary is from a healthcare professional whose relationship 617 00:27:55,640 --> 00:27:58,360 Speaker 3: with money might make you a little envious. So if 618 00:27:58,359 --> 00:28:01,200 Speaker 3: I was to introduce myself at a money massquade party, 619 00:28:01,280 --> 00:28:04,280 Speaker 3: I would say that I'm twenty eight and careful that 620 00:28:04,359 --> 00:28:08,879 Speaker 3: way because I've always been very conscious of money. Growing 621 00:28:08,960 --> 00:28:13,439 Speaker 3: up in a household which was very savings focused and 622 00:28:13,880 --> 00:28:15,840 Speaker 3: there wasn't really a lot of money to go around. 623 00:28:15,920 --> 00:28:18,040 Speaker 3: It was always something that, yeah, I grew up with 624 00:28:18,040 --> 00:28:22,159 Speaker 3: a consciousness of and therefore when I started making my 625 00:28:22,200 --> 00:28:25,160 Speaker 3: own money, I've just always been really careful with it. Okay, 626 00:28:25,240 --> 00:28:27,439 Speaker 3: So down to the nitty gritty stuff. How much does 627 00:28:27,480 --> 00:28:30,119 Speaker 3: twenty eight and careful earn? And how much has she saved? 628 00:28:30,520 --> 00:28:33,919 Speaker 3: I take home approximately ninety thousand dollars a year my 629 00:28:34,480 --> 00:28:37,520 Speaker 3: savings account. I've got an offset account for my mortgage, 630 00:28:37,600 --> 00:28:40,000 Speaker 3: so I count that as part of my savings account. 631 00:28:40,240 --> 00:28:42,800 Speaker 3: So I've got twenty thousand dollars in that, and then 632 00:28:42,840 --> 00:28:46,560 Speaker 3: I've got around about fifteen hundred save for an emergency, 633 00:28:46,920 --> 00:28:50,200 Speaker 3: and then maybe another two grand saved. Who feels So 634 00:28:50,240 --> 00:28:52,280 Speaker 3: we know how twenty eight and Careful gets paid, but 635 00:28:52,360 --> 00:28:55,080 Speaker 3: what exactly happens to that money after its deposited intero 636 00:28:55,160 --> 00:28:56,400 Speaker 3: account every fortnight. 637 00:28:56,640 --> 00:28:58,520 Speaker 1: So the day after I get paid. 638 00:28:58,560 --> 00:29:02,200 Speaker 3: The money comes directly out of my bank account without me. 639 00:29:02,360 --> 00:29:05,400 Speaker 3: I've just set up direct EBITs, so I have a 640 00:29:05,400 --> 00:29:08,760 Speaker 3: sad amount that comes into each of those different accounts 641 00:29:08,800 --> 00:29:12,080 Speaker 3: every fortnight, So it's not really something that unless I 642 00:29:12,200 --> 00:29:15,440 Speaker 3: check each fortnight, I don't really keep a track of 643 00:29:15,480 --> 00:29:18,560 Speaker 3: it necessarily. It's just whatever I have leftover from my 644 00:29:18,640 --> 00:29:22,040 Speaker 3: pay I use for every day use. I save six 645 00:29:22,120 --> 00:29:27,440 Speaker 3: hundred and fifty dollars every paycheck and I take home 646 00:29:27,560 --> 00:29:32,480 Speaker 3: approximately twenty four hundred, so it's around about, yeah, twenty 647 00:29:32,480 --> 00:29:35,840 Speaker 3: five percent that I'm saving. Now, let's talk about investing. 648 00:29:36,120 --> 00:29:39,239 Speaker 3: Does twenty eight and Careful invest and if not? Why so? 649 00:29:39,320 --> 00:29:42,040 Speaker 3: I don't invest as much as I wish I did. 650 00:29:43,240 --> 00:29:45,120 Speaker 3: I have had stocks in the past, but I don't 651 00:29:45,160 --> 00:29:48,480 Speaker 3: currently own any. But I do have a raise account 652 00:29:48,640 --> 00:29:51,280 Speaker 3: which has that's got around about fifteen hundred in it. 653 00:29:51,840 --> 00:29:53,840 Speaker 1: And other than. 654 00:29:53,720 --> 00:29:57,959 Speaker 3: That, I do really rely on my savings accounts. In 655 00:29:58,000 --> 00:30:00,800 Speaker 3: saying that, though, I do have a mortgage. So my 656 00:30:00,840 --> 00:30:02,800 Speaker 3: biggest asset is the house that I own. 657 00:30:03,200 --> 00:30:05,120 Speaker 1: What about twenty eight and Careful's debts. 658 00:30:05,600 --> 00:30:09,760 Speaker 3: Yeah, so my mortgage is sitting around about five hundred thousand, 659 00:30:09,800 --> 00:30:12,200 Speaker 3: which I share a drying responsibility with my partner. For 660 00:30:13,200 --> 00:30:16,000 Speaker 3: I don't have any credit card debt. My hex debt 661 00:30:16,080 --> 00:30:19,680 Speaker 3: is sitting around about fifteen thousand. I think it'll come down, 662 00:30:19,840 --> 00:30:22,960 Speaker 3: it'll be more like ten actually after this financial year. 663 00:30:23,040 --> 00:30:25,840 Speaker 3: But yeah, so I do have a credit card, but 664 00:30:26,640 --> 00:30:28,960 Speaker 3: I don't have any outstanding balance on that. 665 00:30:29,520 --> 00:30:30,720 Speaker 1: And personal loans. 666 00:30:30,800 --> 00:30:32,640 Speaker 3: I have a bit of a philosophy not to have 667 00:30:32,680 --> 00:30:36,080 Speaker 3: a personal loan because I think to myself, well, if 668 00:30:36,080 --> 00:30:39,040 Speaker 3: I can't afford it now, then I just shouldn't have 669 00:30:39,080 --> 00:30:41,920 Speaker 3: it unless it's absolutely necessary, and it's never been. There's 670 00:30:41,920 --> 00:30:44,920 Speaker 3: never been anything that's been dire or necessary. When we 671 00:30:44,960 --> 00:30:47,320 Speaker 3: ask twenty eight and careful what her best money habit is, 672 00:30:47,360 --> 00:30:48,240 Speaker 3: she didn't hesitate. 673 00:30:48,600 --> 00:30:49,800 Speaker 1: I would say my best. 674 00:30:49,560 --> 00:30:53,400 Speaker 3: Money habit was setting up the direct debit every fortnight. 675 00:30:53,800 --> 00:30:57,600 Speaker 3: It's something which requires a little bit of effort. Took 676 00:30:57,640 --> 00:31:00,160 Speaker 3: maybe ten minutes to set up for all my accounts. 677 00:31:00,760 --> 00:31:04,400 Speaker 3: I also have my main savings account is not linked 678 00:31:04,400 --> 00:31:07,440 Speaker 3: with my everyday banking, so I can't see it every day. 679 00:31:08,080 --> 00:31:11,200 Speaker 3: So I find that that really works very well because 680 00:31:11,240 --> 00:31:13,640 Speaker 3: it's not a visible thing unless I go out and 681 00:31:13,720 --> 00:31:17,040 Speaker 3: try and get into that account. It's not something where 682 00:31:17,040 --> 00:31:19,040 Speaker 3: I go, oh, I've got x amount of money where 683 00:31:19,080 --> 00:31:22,640 Speaker 3: I can use it for whatever, like, it's just kind 684 00:31:22,680 --> 00:31:27,200 Speaker 3: of absent. My big savings goal has changed a little 685 00:31:27,240 --> 00:31:30,400 Speaker 3: bit since having the house. It's a really funny thing 686 00:31:30,480 --> 00:31:32,960 Speaker 3: when you've worked really hard to save towards the house 687 00:31:33,000 --> 00:31:35,120 Speaker 3: for such a long time, like that was my main 688 00:31:35,160 --> 00:31:39,480 Speaker 3: goal for between five to ten years. So I would 689 00:31:39,560 --> 00:31:42,560 Speaker 3: say that I'd be saving for a car now. I 690 00:31:42,600 --> 00:31:46,239 Speaker 3: wouldn't get alone because unless it was something that was 691 00:31:46,320 --> 00:31:50,160 Speaker 3: absolutely needs to happen right now necessary, where I aiming 692 00:31:50,200 --> 00:31:53,760 Speaker 3: to spend somewhere around about twenty to twenty five thousand, 693 00:31:54,640 --> 00:31:56,719 Speaker 3: and that will be like shared between my partner and 694 00:31:56,760 --> 00:32:00,360 Speaker 3: I and her worst money habit. My worst money habit 695 00:32:00,360 --> 00:32:02,480 Speaker 3: would have to be the money that I spend on food. 696 00:32:03,080 --> 00:32:07,720 Speaker 3: This sounds so bad. Between five and ten dollars a day, 697 00:32:08,160 --> 00:32:11,960 Speaker 3: so across a five day work week, that's twenty five 698 00:32:12,000 --> 00:32:15,640 Speaker 3: to fifty dollars. That feels like it feels like a lot. 699 00:32:15,680 --> 00:32:18,280 Speaker 3: To me, it feels like a lot. I'm getting better 700 00:32:18,320 --> 00:32:21,960 Speaker 3: at it, but I don't do enough preparing or pre 701 00:32:22,040 --> 00:32:27,160 Speaker 3: preparing of food before work, and therefore it's just too 702 00:32:27,280 --> 00:32:28,320 Speaker 3: it's too easy. 703 00:32:28,040 --> 00:32:30,320 Speaker 1: To go downstairs, even coffees like. 704 00:32:30,320 --> 00:32:30,920 Speaker 4: That sort of thing. 705 00:32:30,960 --> 00:32:35,520 Speaker 3: It's just it's too easy to spend money unnecessarily. So 706 00:32:35,560 --> 00:32:38,280 Speaker 3: how would today's Money diarist rate her own relationship with 707 00:32:38,320 --> 00:32:40,280 Speaker 3: money if we force her to give herself a grade, 708 00:32:40,960 --> 00:32:44,320 Speaker 3: probably an eight, because I think that the fact that 709 00:32:44,360 --> 00:32:47,080 Speaker 3: I don't invest is something which I am conscious of 710 00:32:47,320 --> 00:32:50,600 Speaker 3: and I do want to change. I just feel like 711 00:32:50,920 --> 00:32:52,880 Speaker 3: tying my money up in an investment at the moment 712 00:32:52,920 --> 00:32:56,960 Speaker 3: would be stressful as well, just in case something happened. 713 00:32:57,320 --> 00:32:59,040 Speaker 3: And I've got a lot of things like a car 714 00:32:59,080 --> 00:33:01,239 Speaker 3: and a few st bits and pieces that I need 715 00:33:01,280 --> 00:33:03,880 Speaker 3: to pay for in the next in the foreseable future, 716 00:33:04,160 --> 00:33:06,800 Speaker 3: so I think that there's room for improvement. 717 00:33:06,960 --> 00:33:09,200 Speaker 1: I also pay the minimum amount. 718 00:33:08,840 --> 00:33:11,960 Speaker 3: On our mortgage at the moment as well, so I 719 00:33:12,000 --> 00:33:14,160 Speaker 3: wish that that was I think that there's a few 720 00:33:14,200 --> 00:33:16,200 Speaker 3: areas where I need to get a bit better, But 721 00:33:16,640 --> 00:33:20,480 Speaker 3: I feel like I'm pretty comfortable. Victoria, what's struck you 722 00:33:20,520 --> 00:33:22,800 Speaker 3: most about twenty eight and Careful's money diary? 723 00:33:23,160 --> 00:33:26,440 Speaker 5: I think she's amazing, So to her, I think she's incredible. 724 00:33:26,480 --> 00:33:28,880 Speaker 5: Look at what she's doing and what she's already achieved 725 00:33:28,960 --> 00:33:32,080 Speaker 5: at only twenty eight to have a mortgage and also 726 00:33:32,200 --> 00:33:34,880 Speaker 5: be so educated on how it works, like she was 727 00:33:34,880 --> 00:33:37,440 Speaker 5: saying she was using her offset and she's gonna save 728 00:33:37,560 --> 00:33:40,360 Speaker 5: for a car, and how she's not using any personal 729 00:33:40,440 --> 00:33:42,720 Speaker 5: debt and doesn't think it aligns to her goals. She 730 00:33:42,880 --> 00:33:46,120 Speaker 5: is actually the person I want everybody listening to she's 731 00:33:46,120 --> 00:33:48,800 Speaker 5: on the money to be, And I hope that she's like, 732 00:33:48,880 --> 00:33:52,440 Speaker 5: got this stupidly good grin while listening to this, because 733 00:33:52,560 --> 00:33:55,320 Speaker 5: honestly she's Honestly, she's goals. 734 00:33:55,760 --> 00:33:57,240 Speaker 6: I think she's a ten out of ten. 735 00:33:57,600 --> 00:34:00,720 Speaker 5: But much like last week's money Diary, if she thinks 736 00:34:00,800 --> 00:34:03,080 Speaker 5: she's an age, I'm not gonna argue with her if 737 00:34:03,120 --> 00:34:05,160 Speaker 5: she feels like she's got a lot more to achieve. 738 00:34:05,640 --> 00:34:08,120 Speaker 3: She mentioned she had twenty thousand dollars in an offset 739 00:34:08,160 --> 00:34:10,160 Speaker 3: account for her mortgage, and I had no idea what 740 00:34:10,239 --> 00:34:10,600 Speaker 3: that was. 741 00:34:10,719 --> 00:34:11,359 Speaker 1: What is it? 742 00:34:11,719 --> 00:34:15,719 Speaker 5: So, essentially, an offset account is a bank account attached 743 00:34:15,760 --> 00:34:19,160 Speaker 5: to your mortgage where you can put additional funds that 744 00:34:19,280 --> 00:34:22,560 Speaker 5: offsets the amount of interest you're paying on your mortgage. So, 745 00:34:22,600 --> 00:34:25,160 Speaker 5: say you've got a three hundred thousand dollars mortgage and 746 00:34:25,239 --> 00:34:28,800 Speaker 5: twenty thousand dollars worth of savings. By putting that twenty 747 00:34:28,840 --> 00:34:32,879 Speaker 5: thousand dollars into your offset account, you're essentially not having 748 00:34:32,960 --> 00:34:36,320 Speaker 5: to pay interest on that twenty thousand dollars in your mortgage. 749 00:34:36,680 --> 00:34:37,080 Speaker 4: Smart. 750 00:34:37,200 --> 00:34:38,839 Speaker 6: Yeah, it's quite intelligent. 751 00:34:38,920 --> 00:34:41,600 Speaker 5: And I think that people who do have mortgages, if 752 00:34:41,640 --> 00:34:44,480 Speaker 5: you've also got savings, put them in your offset account. 753 00:34:44,560 --> 00:34:47,040 Speaker 5: And if you don't have an offset account attached to 754 00:34:47,120 --> 00:34:49,719 Speaker 5: your mortgage, potentially go and talk to your banker or 755 00:34:49,719 --> 00:34:51,879 Speaker 5: your mortgage broker about getting one right. 756 00:34:51,960 --> 00:34:54,399 Speaker 3: So, what's one thing she could improve on them because 757 00:34:54,400 --> 00:34:55,560 Speaker 3: she's doing a lot. 758 00:34:55,280 --> 00:34:57,440 Speaker 5: Well, I don't know if I have a lot of 759 00:34:57,480 --> 00:35:01,080 Speaker 5: advice for this girl. I think that invests. She said 760 00:35:01,080 --> 00:35:03,480 Speaker 5: that she wasn't investing because she didn't want to tie 761 00:35:03,560 --> 00:35:06,400 Speaker 5: up a whole heap of money, but she's already using rais, 762 00:35:06,560 --> 00:35:09,920 Speaker 5: she is already investing. Potentially, once her raise gets to 763 00:35:09,960 --> 00:35:13,680 Speaker 5: maybe five or six thousand dollars, transferring that into a 764 00:35:13,760 --> 00:35:17,480 Speaker 5: different type of share portfolio might be an intelligent decision 765 00:35:17,520 --> 00:35:20,160 Speaker 5: to make. Investing isn't something you have to have a 766 00:35:20,200 --> 00:35:22,120 Speaker 5: lot of money to do. You don't need to tie 767 00:35:22,200 --> 00:35:25,160 Speaker 5: all your capital up. You don't need to be investing 768 00:35:25,320 --> 00:35:28,040 Speaker 5: tens of thousands of dollars. It can be small, but 769 00:35:28,200 --> 00:35:30,359 Speaker 5: over the long term it will have a really big 770 00:35:30,400 --> 00:35:32,239 Speaker 5: impact on your wealth. So I think that that's the 771 00:35:32,239 --> 00:35:34,320 Speaker 5: one thing that you know, if I was sitting across 772 00:35:34,360 --> 00:35:36,719 Speaker 5: from her. I'd want to have a proper conversation about 773 00:35:36,760 --> 00:35:39,920 Speaker 5: and say, well, what do you think investing is versus 774 00:35:39,920 --> 00:35:43,040 Speaker 5: what it actually is and how that actually looks for her? 775 00:35:43,560 --> 00:35:46,760 Speaker 4: Can we also just talk about she's spending five dollars 776 00:35:46,800 --> 00:35:47,120 Speaker 4: to day. 777 00:35:47,200 --> 00:35:50,520 Speaker 6: I don't want to talk about that. That is I'm sorry. 778 00:35:50,719 --> 00:35:52,839 Speaker 5: Five dollars is what I spend on my Uber It's 779 00:35:52,960 --> 00:35:54,160 Speaker 5: delivery charge. 780 00:35:54,280 --> 00:35:55,480 Speaker 4: Yeah, on extra fees. 781 00:35:55,640 --> 00:35:57,040 Speaker 1: That is incredible. 782 00:35:57,360 --> 00:36:00,880 Speaker 5: I'm very impressed, but also slightly cancerned that she thinks 783 00:36:00,960 --> 00:36:04,120 Speaker 5: that's a lot. I know I would hate for her 784 00:36:04,120 --> 00:36:07,719 Speaker 5: to go through my finances and I'm probably not going 785 00:36:07,760 --> 00:36:09,120 Speaker 5: to allow that. 786 00:36:09,120 --> 00:36:10,560 Speaker 1: That's all we have time for today. 787 00:36:10,640 --> 00:36:13,719 Speaker 3: Unfortunately, just before we head off, let's quickly wrap the 788 00:36:13,760 --> 00:36:16,560 Speaker 3: boring but important stuff. The advice shared on Shees on 789 00:36:16,600 --> 00:36:18,760 Speaker 3: the Money is general in nature and does not consider 790 00:36:18,800 --> 00:36:20,280 Speaker 3: your individual circumstances. 791 00:36:20,719 --> 00:36:22,160 Speaker 4: She's on the Money exists. 792 00:36:21,800 --> 00:36:24,680 Speaker 3: Purely for educational purposes only and should not be relied 793 00:36:24,719 --> 00:36:27,040 Speaker 3: upon to make an investment or financial decision. 794 00:36:27,560 --> 00:36:29,120 Speaker 1: And yes, don't worry, we promise. 795 00:36:29,280 --> 00:36:33,160 Speaker 3: Victoria Divine is an authorized representative of consultant. Financial Advice 796 00:36:33,239 --> 00:36:37,040 Speaker 3: is Proprietory Limited ABN six five Double six three seven 797 00:36:37,080 --> 00:36:40,000 Speaker 3: three double nine to five AFSL two three. 798 00:36:39,920 --> 00:36:41,160 Speaker 1: O three two three. 799 00:36:41,440 --> 00:36:42,960 Speaker 4: Poh, we did it, Victoria. 800 00:36:43,000 --> 00:36:45,279 Speaker 3: Also, we need to tell them we're launching a newsletter. 801 00:36:45,400 --> 00:36:48,040 Speaker 3: The first one will be landing in inboxes this week. 802 00:36:48,200 --> 00:36:49,080 Speaker 4: How exploiting. 803 00:36:49,640 --> 00:36:52,439 Speaker 5: It will be dropping on Friday mornings, So either sign 804 00:36:52,560 --> 00:36:54,239 Speaker 5: up for that or keep your eyes peeled. If you've 805 00:36:54,280 --> 00:36:57,120 Speaker 5: already provided your email address to She's on the Money, 806 00:36:57,440 --> 00:37:00,840 Speaker 5: and we will have that in your inbox asap, excellent. 807 00:37:01,200 --> 00:37:03,840 Speaker 3: This podcast is a production of Shameless Media on behalf 808 00:37:03,840 --> 00:37:05,919 Speaker 3: of She's on the Money. Follow She's on the Money 809 00:37:05,920 --> 00:37:08,120 Speaker 3: on Instagram at She's on the Money a US, or 810 00:37:08,200 --> 00:37:10,040 Speaker 3: join the Facebook group at She's on the Money. 811 00:37:10,400 --> 00:37:11,640 Speaker 1: See you guys next week. 812 00:37:11,760 --> 00:37:12,279 Speaker 4: We love you.