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Speaker 1: She's on the Money.

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Speaker 2: She's on the Money. Hello, and welcome to She's on

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Speaker 2: the Money, the podcast for millennials who want financial freedom.

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Speaker 2: My name is Georgia King. I'm a copywriter and journalism student,

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Speaker 2: and every Wednesday I sit down to chat finance with

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Speaker 2: millennial money guru Victoria to Fine Hive.

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Speaker 1: What a surprise, it's children, Victoria to Day.

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Speaker 2: I wasn't here last week, so hey, maybe it is

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Speaker 2: a surprise, okay, or it's not whatever.

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Speaker 1: Books they had replaced her with Glenn James.

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Speaker 2: Sorry, guys, I'm back now. Today on the show, we'll

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Speaker 2: be talking about loyalty tax, exploring the dangers of staying

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Speaker 2: loyal to a brand instead of seeking the best deals

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Speaker 2: on the market. Then later on we'll be unpacking a

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Speaker 2: money diarist who has home buyers regret, and we'll be

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Speaker 2: addressing a money question from someone needing a little help

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Speaker 2: on where to start when it comes to refinancing. But

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Speaker 2: before we hop into that chat, though, Victoria Money wins

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Speaker 2: and confessions from the week that was talk to me.

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Speaker 1: I have a money win, all right. So this is

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Speaker 1: actually from a couple of weeks ago, and I've only

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Speaker 1: just thought about it and thought you know what. This

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Speaker 1: is something I'm going to share because I feel like

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Speaker 1: it's relevant to loyalty tax in a very roundabout way.

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Speaker 1: So during the Black Friday sales, I went shopping with

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Speaker 1: one of my girlfriends, Steph. If you're listening, which I

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Speaker 1: know you don't often, hello, And I really wanted to

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Speaker 1: pick up a new worktop. And every girl who works

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Speaker 1: in corporate knows that Portman's is clearly where we go

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Speaker 1: that's not sponsored because wait till the next bit of this.

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Speaker 1: If this money win. So I went into Portman's, found

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Speaker 1: acute top that I liked, perfectly worked with my outfit,

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Speaker 1: decided I wanted to purchase it, but also wanted to

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Speaker 1: look at the rest of the shops because it was

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Speaker 1: the first shop I'd been into. So put it back

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Speaker 1: on the rack, walked about all the other shops, completely

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Speaker 1: forgot about the top, went home, decided, all right, well

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Speaker 1: I tried it on, no my size, I'll just order

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Speaker 1: it online. And when I jumped online, the website had

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Speaker 1: forty percent off, but in store they only had twenty

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Speaker 1: five percent off. So money win. I got my discount upgraded.

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Speaker 1: But also I was slightly confused because I was like

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Speaker 1: Why am I being penalized for in store shopping? Isn't

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Speaker 1: that what we're trying to revive?

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Speaker 2: Yeah, I feel like you should be rewarded for install shopping.

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Speaker 2: It's so much more effort, you know.

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Speaker 1: That's what I thought, Like, you guys don't have to

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Speaker 1: go through the process of packing it up and posting

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Speaker 1: it like it's already right there. Like I usually don't

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Speaker 1: ask for a bag either, so I would. Yeah, made

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Speaker 1: you give me one of those who knows. But I

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Speaker 1: just found it very confusing.

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Speaker 2: I wonder if they would have honored it still if

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Speaker 2: you quoted the website price in store, surely they would have.

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Speaker 1: Well, I don't know, and to be honest, I obviously

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Speaker 1: didn't have the opportunity to try. I just was a

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Speaker 1: little bit confused about it and found it to be

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Speaker 1: slightly opportunistic of them, which I didn't love. But at

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Speaker 1: the same time, like forty percent off for the top

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Speaker 1: that I bought from my guys.

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Speaker 2: It's cutes, so it's a win. Yeah, Whi's a win?

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Speaker 1: Do you have a money win or confession this week?

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Speaker 1: For us?

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Speaker 2: I do harm mine is retail related. Also, I didn't

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Speaker 2: go too wild in the black Friday, Cyber Monday at sales.

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Speaker 2: I listened to your advice. Victoria's very disciplined. You don't

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Speaker 2: usually so that's mazy. So basically, very long story short,

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Speaker 2: I scored sunglasses that were originally three hundred and eighty

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Speaker 2: five dollars. Oh, I know, it just shows how much

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Speaker 2: retail is marked up, but also.

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Speaker 1: It's really exciting for someone who loves a good pair

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Speaker 1: of designer sunglasses.

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Speaker 2: I eat me.

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Speaker 1: I'm really sad to hear that they could be marked

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Speaker 1: down as as twenty dollars.

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Speaker 2: Yeah, I mean I was pretty pleased with it as well.

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Speaker 2: It's got a nice sunglasses chain, which is good, full

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Speaker 2: of pearls.

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Speaker 1: I love that you.

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Speaker 2: Parment around that one.

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Speaker 1: I do love Grandma che Grandma chic. But also they

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Speaker 1: are very beautiful sunglasses. They were actually the first thing

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Speaker 1: I commented on when you walked in the pod studio today.

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Speaker 1: I was like, oh, those are so beautiful.

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Speaker 2: You did, and we generally have quite different style. Like

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Speaker 2: I've never been into a portments.

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Speaker 1: I can't imagine you no, if I'm brutally sitting here

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Speaker 1: much so, I imagine we're in Gorman. So there's that.

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Speaker 2: Yeah, that's true. Retail chats. Shall we move along to

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Speaker 2: our Facebook group, Victoria, Yes, the wonderful Facebook group. Have

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Speaker 2: you got a favorite proces this week?

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Speaker 3: I do?

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Speaker 1: And this way it's a little money win. But it's

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Speaker 1: one of my favorite money wins because I think we

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Speaker 1: can all do this and you know, uncover a little

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Speaker 1: bit of a money win for ourselves. So this one's

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Speaker 1: from my friend Abby, and she said money win. I

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Speaker 1: bought a body Shop facial scrub and started quote running

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Speaker 1: out of it. She then went to came up, bought

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Speaker 1: some travel tubs and cut the container open and scooped

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Speaker 1: everything out into a pot. Now she has heaps of

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Speaker 1: leftover product and she doesn't have to go buy a

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Speaker 1: whole new scrub, which she says would have cost me

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Speaker 1: way more than the four dollars it cost me. It

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Speaker 1: came up for some containers. And I just feel like

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Speaker 1: that's an epic money win because so many of us

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Speaker 1: don't cut it open our containers and get the remnants

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Speaker 1: of our product down.

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Speaker 2: Now you squeeze, and your squeeze and you can just never.

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Speaker 1: Yeah, And I feel like I'm such a hacker when

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Speaker 1: it comes to that, Like I will cut everything open

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Speaker 1: and like break it or however you need to do

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Speaker 1: it because some foundations, like you guys know what I'm

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Speaker 1: talking about, and I know you do, you can't pull

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Speaker 1: the lid off, so you have to get like a

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Speaker 1: butter knife and like pop it off. And I am

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Speaker 1: definitely that.

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Speaker 2: Yes, I bet that's really satisfying as well.

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Speaker 1: It totally is. But I've also found these really awesome

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Speaker 1: little scoops, so you can buy them on eBay, and

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Speaker 1: they're called I think makeups batchelors, and they are literally

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Speaker 1: like mini versions as spatulors. They are made of stealer

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Speaker 1: can and you kind of put them into your makeup

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Speaker 1: container and it scoops out the bottom, so if it's

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Speaker 1: like a really thin makeup bottle, you can get to

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Speaker 1: the bottom of it.

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Speaker 2: Cool anyway, I'm imagining like a whiz Fizz little Spade.

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Speaker 1: It's kind of those like that, but like actually looks

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Speaker 1: like a spachelor and actually looks like you're doing tiny

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Speaker 1: baking for a mouse, but it's not. And I bought

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Speaker 1: them from probably a seller on eBay for ninety nine

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Speaker 1: cents and that's a money win from me again, stunning

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Speaker 1: from you to You're welcome. Have you got a Facebook

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Speaker 1: money win for us.

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Speaker 2: So mine is from Jade, who has a Again, it's

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Speaker 2: another small money win, but it's a money when we

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Speaker 2: love so she loves entertaining, but platters can be super expensive,

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Speaker 2: especially when you're buying nice crackers. So instead of buying

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Speaker 2: a small box of crackers for six dollars, she bought

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Speaker 2: some Lebonese bread and slapped a bit of oil and

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Speaker 2: Moroccan seasoning on there, popped in the oven for fifteen minutes,

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Speaker 2: and she has a big box of crackers five times

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Speaker 2: a size and even taste here. Have you done this before?

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Speaker 1: I haven't, But I actually really liked this money win,

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Speaker 1: and I think I might seek some inspiration because as

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Speaker 1: someone who buys gluten free crackers, often those are so

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Speaker 1: expensive and like rice cakes, get boring. So I'm gonna

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Speaker 1: give it a crack with some piter bread that I

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Speaker 1: got that is gluten free.

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Speaker 2: Dip it in some hummus. Love that they're also good

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Speaker 2: pizza bases.

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Speaker 1: They totally are. Piterbread actually makes the best type in

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Speaker 1: my opinion of pizza bass and I think that's it.

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Speaker 2: Yeah, I agree.

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Speaker 1: Also, I was about to call this bougie. Yeah, but

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Speaker 1: do you know what I learned this week from my

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Speaker 1: friend Amy. What do you know what bougie actually means?

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Speaker 2: Bourgeois?

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Speaker 1: No, it actually means middle class. Turns out I've been

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Speaker 1: calling everything middle class and don't know. I need to

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Speaker 1: take this word out of my voe vocabulary. I actually

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Speaker 1: thought it meant like luxurious lifestyle. But it turns out

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Speaker 1: bougie is a French word, or it comes from a

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Speaker 1: French word that means middle class.

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Speaker 2: I thought it was higher than that. I remember in

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Speaker 2: history class. This is going to be boring content for you, guys.

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Speaker 2: I feel like the proletariat was like the middle rung,

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Speaker 2: and then above that was the bourgeois, and then maybe

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Speaker 2: it was it got into your royal You know what,

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Speaker 2: I don't really know the answers I did well in history.

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Speaker 1: It's actually the same. But it literally comes and I've

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Speaker 1: just googled it right here, hot off the press comes

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Speaker 1: from a French word that simply means of middle class status.

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Speaker 2: Oh god, well, we've been saying it wrong this whole time.

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Speaker 1: How am I going to call things bougie? Now? You

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Speaker 1: have to cut it out of your vocap heart normal

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Speaker 1: shots for you guys.

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Speaker 2: Alrighty guys, let's head into the main chat of today's show.

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Speaker 2: Recent RBA and APRO data revealed that owner occupy a

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Speaker 2: home loan customers who have been with their bank for

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Speaker 2: more than four years are paying on average, a variable

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Speaker 2: rate of three point sixty four percent, while new customers

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Speaker 2: are paying only three point two three percent. Now, this

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Speaker 2: difference may not sound like much. I don't think it

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Speaker 2: sounds like that much, but as we will learn in

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Speaker 2: today's show, this gap is actually costing loyal ossies thousands

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Speaker 2: of dollars per year. Now, VI, I'm not going to

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Speaker 2: do my big preamble today, which I do. You're the expert,

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Speaker 2: you know I try to be, but frankly, this topic

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Speaker 2: does just confuses me a little bit. So to start

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Speaker 2: us off, what actually is loyalty tax? And why should

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Speaker 2: our listeners care?

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Speaker 1: Because I said so very good, But also I can

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Speaker 1: completely understand that this might be a confusing topic for

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Speaker 1: a lot of you. But don't stress, because I want

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Speaker 1: to make it really clear and I hope it's super

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Speaker 1: easy to follow. To start with, loyalty tax is not

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Speaker 1: real tax. I've just decided to call this episode loyalty tax,

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Speaker 1: but it refers to the tax or the extra money

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Speaker 1: that you pay when you stay with a company, whether

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Speaker 1: that is a home loan provider, a bank, your gym,

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Speaker 1: or even your energy company, instead of shopping around for

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Speaker 1: a better deal at competing companies who could save you

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Speaker 1: thousands of dollars over your life lifetime. Now usually banks

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Speaker 1: offer more substantial discounts to newer customers, which kind of

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Speaker 1: sucks to entice them to choose their business over any

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Speaker 1: other business. This system makes sense and is great for

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Speaker 1: newcomers at the very beginning of that relationship. However, for

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Speaker 1: customers who have been loyal for years and years, they're

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Speaker 1: missing out on the discount offered to newbies and are

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Speaker 1: essentially not being rewarded for remaining loyal to lenders or companies. Now,

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Speaker 1: because I like research, the Reserve Bank of Australia released

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Speaker 1: some data quite recently which completely backs up all of this.

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Speaker 1: Their data showed the home loans that commenced four or

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Speaker 1: more years ago had interest rates forty basis points higher

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Speaker 1: than new loans. FYI, basic point is like zero point four.

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Speaker 1: Oh so, like that's a basis point and if you

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Speaker 1: were to put that into a dollar figure for a

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Speaker 1: home loan balance of two hundred and fifty thousand dollars.

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Speaker 1: That would mean that people with those older loans would

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Speaker 1: be paying an extra thousand dollars of interest repayments every

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Speaker 1: single year. To be honest, I find that quite crazy.

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Speaker 1: So basically, the banks are looking after their new customers

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Speaker 1: while neglecting the old, and I would argue, quite loyal ones,

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Speaker 1: they're kind of bang on ha ha, good joke, Victoria,

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Speaker 1: older loyal customers not having the energy to switch or

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Speaker 1: hunt for a competing offering at a lower price, and

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Speaker 1: in most cases that call does pay off for them.

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Speaker 1: But I don't believe it should.

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Speaker 2: And why should our listeners care about this topic?

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Speaker 1: Because I said so, but also because obviously our listeners

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Speaker 1: who are looking at buying homes or changing their energy

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Speaker 1: or phone company, or who have had their home loan

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Speaker 1: for a really long time, you guys should care about

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Speaker 1: this topic because it directly impacts your finances, and so

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Speaker 1: many people are just ignorant to this and are losing

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Speaker 1: out without even really knowing it. By having an understanding

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Speaker 1: of how these things work, and how lenders work and

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Speaker 1: how loyalty tax works, we're able to make sure that

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Speaker 1: we are looking after ourselves and our finances and that

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Speaker 1: we're not being taken for a ride or punished just

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Speaker 1: for being loyal For those of you who aren't close

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Speaker 1: to buying your first home yet, I do think it's

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Speaker 1: also a really important conversation for us to have and

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Speaker 1: for our community to listen in two so that they

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Speaker 1: can be aware down the track should they choose to

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Speaker 1: go into the housing market. But also, loyalty tax extends

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Speaker 1: far out of just home loans into every other aspect

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Speaker 1: of our life, which we're going to get to very soon.

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Speaker 1: But I think it's great that we're doing this deep dive,

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Speaker 1: and I'm actually really excited about it because so many

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Speaker 1: of us could save so much money.

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Speaker 2: M exactly right. So when I was reading for today's show,

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Speaker 2: I found that, according to this ASSEIC report that has

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Speaker 2: been widely written on as well, that the average difference

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Speaker 2: in intrast rates paid by new and existing variable rate

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Speaker 2: customers was zero point twenty six as of September twenty nineteen.

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Speaker 2: So can you tell me what that actually looks like?

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Speaker 2: Because that doesn't really sound too substantial to my tiny

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Speaker 2: pea brain, But I'm assuming it is substantial, otherwise we

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Speaker 2: wouldn't be doing a podcast on it.

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Speaker 1: First thing, first, you don't have a pea brain, and

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Speaker 1: they don't like self deprecating any kind of humor. Wasn't money,

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Speaker 1: but I do get why it doesn't sound like much

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Speaker 1: deep But we aren't actually talking about a loan of

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Speaker 1: twenty bucks here. These loans are hundreds of thousands of dollars,

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Speaker 1: so the stakes are way way higher, and that seemingly

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Speaker 1: small percentage actually translates to a really massive difference in

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Speaker 1: what customers will pay, and it usually turns out to

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Speaker 1: be thousands of dollars a year that we're paying that

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Speaker 1: we could instead be saving or paying in down our

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Speaker 1: home loan. With the report you're talking about, their George

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Speaker 1: actually also found that customers with existing owner occupyer loans

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Speaker 1: with principal and interest repayments who had those loans for

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Speaker 1: more than five years were paying zero point four zero

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Speaker 1: percent more than new customers. So if you were to

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Speaker 1: refinance and move your four hundred thousand dollars home loan

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Speaker 1: across to a different lender, you could literally save more

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Speaker 1: than fifteen hundred dollars in the first year and almost

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Speaker 1: thirty one thousand dollars over the whole home loan period,

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Speaker 1: which I'm probably going to get you to agree with

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Speaker 1: me here just so I feel good. But I think

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Speaker 1: we can all agree that that's a huge amount of

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Speaker 1: money that we could be investing or putting towards another

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Speaker 1: home loan. Like that's literally a family car. Like, that's

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Speaker 1: a lot of money.

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Speaker 2: That's a nice family car. That's a couple of Master twos,

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Speaker 2: which is what I drive. Stunning stuff. Presumably, be it

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Speaker 2: would get worse the longer you're with the same bank,

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Speaker 2: for right, because you might be locked into those rates.

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Speaker 1: Yeah, talk to me, correct, amuando. So the difference does

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Speaker 1: widen the longer that you remain loyal to your lender,

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Speaker 1: which again seems odd to me, as there should be

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Speaker 1: some kind of reward for being loyal.

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Speaker 2: And you said it before, B. But just to be

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Speaker 2: really clear before we keep on unpacking this topic, loyalty

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Speaker 2: tax isn't an actual tax, right.

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Speaker 1: No, And as I said before, it's definitely not real tax.

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Speaker 1: It's like how I jumped up and down about the

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Speaker 1: pink tax a couple of episodes ago. It's not something

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Speaker 1: that the ATO is going to make us pay, thankfully,

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Speaker 1: but it is lenders and other brands and organizations placing

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Speaker 1: a greater priority on their newer customers. Now I know

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Speaker 1: that that's not what they are planning on doing, and

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Speaker 1: they're essentially just trying to get more customers on board.

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Speaker 1: But at the end of the day, that when we

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Speaker 1: really condense it down and put it really simply means

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Speaker 1: that you could be a new customer for someone else

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Speaker 1: and get a better deal.

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Speaker 2: Yeah, exactly right. So you did touch on this before,

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Speaker 2: but when I was doing reading for this very podcast

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Speaker 2: is very topic, it was mainly talking about home loans,

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Speaker 2: and that's not going to be relatable for everyone in

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Speaker 2: our community because not everyone has a home or even

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Speaker 2: wants to buy one. Talk to me about why this

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Speaker 2: is relevant for everyone, and how how it does kind

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Speaker 2: of spread across different industries and service providers, and why

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Speaker 2: we really need to be caring about this subject.

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Speaker 1: I mean, I could personally attack you here, Georgia and

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Speaker 1: ask you why I'm still paying eighty dollars for a

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Speaker 1: phone plan when you could be paying forty five dollars,

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Speaker 1: But I'm not going to do that because I'm a

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Speaker 1: really good person and as I always say, the worst

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Speaker 1: thing that anyone can say is no. So there is

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Speaker 1: never any harm in asking your service providers, whether that

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Speaker 1: is your bank or your gym, or your energy provider

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Speaker 1: or your utilities or internet connection, for a better deal,

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Speaker 1: as it will either go really well and you'll save

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Speaker 1: some money, or it won't and nothing's going to change.

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Speaker 1: But there's literally not thing to lose here. Loyalty is

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Speaker 1: honestly such a great trait and in every aspect of life,

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Speaker 1: I support it. But when it comes to your money

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Speaker 1: being involved, you need to do what is right for

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Speaker 1: you and your finances. And if these service providers or

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Speaker 1: lenders aren't servicing you properly, then we really need to

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Speaker 1: have our own backs and be willing to walk away

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Speaker 1: and find a better deal.

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Speaker 2: In terms of approaching your lender, your service provider, how

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Speaker 2: do you go about that? You just talk to the

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Speaker 2: customer service team and just stay cool, calm and collected.

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Speaker 2: What's your advice there. I think it's just about jumping

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Speaker 2: on the phone and asking for a good deal. At

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Speaker 2: the end of the day, there's no harm in asking,

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Speaker 2: and I think it's important here to do your own research,

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Speaker 2: so tell them what the interest rate you're looking for is. Now,

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Speaker 2: this is not good at all, but I do know

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Speaker 2: that a number of banks cannot if you call them,

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Speaker 2: refinance you unless you mention the better rate that actually exists,

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Speaker 2: So they will literally make you verbally say hey, so

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Speaker 2: I saw the deal on your website for two point

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Speaker 2: five nine can I get that? And if you don't

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Speaker 2: and you just say, hey, can I get a bitter deal,

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Speaker 2: they aren't able to offer you that, which is insane

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Speaker 2: to me. And I think that, you know, doing a

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Speaker 2: little bit of research is going to put you in

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Speaker 2: a better position. Also think it's really important to bring

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Speaker 2: up their competitors and say, well, actually, your competitors are

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Speaker 2: doing X, Y and z, because often they won't want

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Speaker 2: to lose a consumer, so asking if they could price

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Speaker 2: match is a really good idea. It's also really important

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Speaker 2: to be on top of these things and find a

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Speaker 2: way to keep track of them, because at the end

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Speaker 2: of the day, it's like car insurance.

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Speaker 1: Car insurance goes up every single year, and every single

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Speaker 1: year I've had to call my car insurer say hey,

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Speaker 1: I just re quoted myself on your website and I

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Speaker 1: found that it was one hundred and fifty dollars cheaper.

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Speaker 1: What's the go And they'll be like, oh, yeah, no,

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Speaker 1: problems will honor that, and it seems crazy to me

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Speaker 1: that I have to make that call. But at the

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Speaker 1: end of the day, so many people don't know that

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Speaker 1: they can make the call because when you get your

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Speaker 1: car insurance in the mail, they issue it as an invoice.

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Speaker 1: They don't issue it as a statement to let you

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Speaker 1: know that it's, you know, a reoccurring subscription. They literally

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Speaker 1: make it look like you have a call to action.

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Speaker 1: You've got to pay this, and you'll be in a

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Speaker 1: lot of trouble if you don't like. It's a mental

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Speaker 1: thing as well, and I think it's really important to

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Speaker 1: take that into consideration and always make sure you've got

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Speaker 1: a better deal. But it's also off topic again but

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Speaker 1: so relevant. It's also so easy to forget what you

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Speaker 1: paid last year because they're smart. They don't put what

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Speaker 1: you paid last year on and say, well, Georgia, you

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Speaker 1: paid one thousand dollars in insurances with us last year.

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Speaker 1: It's now twelve hundred dollars. They don't do that. They

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Speaker 1: just issue you with a statement that looks like an

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Speaker 1: invoice for twelve hundred dollars and you might go, ah,

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Speaker 1: that feels expensive, but oh, maybe it's what I paid

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Speaker 1: last year. You don't even think about it. So you

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Speaker 1: need to find a way to track these things and

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Speaker 1: make sure that you're on top of them.

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Speaker 2: That's really interesting. I've got a lot of our listeners

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Speaker 2: are having aha moments there because I just had one.

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Speaker 1: The same again, Victoria Rant, I'm so sorry, but the

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Speaker 1: same happens with energy providers. So often they'll give you

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Speaker 1: a discount for the first twelve months, but if you

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Speaker 1: don't call them and say, hey, I'm just wondering, can

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Speaker 1: you re honor that, they will not give you the

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Speaker 1: discount for the rest of your policy. They'll just give

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Speaker 1: it for the twelve months. They don't even mention it.

402
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Speaker 1: They just bump you back up to the original rate,

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Speaker 1: and you might forget that you need to do it

404
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Speaker 1: because twelve months is actually a really long period of

405
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Speaker 1: time and you won't remember what it is. So if

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00:18:28,400 --> 00:18:30,840
Speaker 1: you're on a direct debit, your direct debit just might increase.

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Speaker 1: You might not even notice it. So we actually need

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Speaker 1: to be really vigilant when it comes to these things

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Speaker 1: and actually look into them. Same thing happens with phone plans, Georgia,

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Speaker 1: I have read too much in not attacking you. Sorry,

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Speaker 1: but I've read too much into phone plans and there

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Speaker 1: are a couple of phone plan providers that when you

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Speaker 1: finished paying off your handset, you actually have to call

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Speaker 1: them to stop paying for the handset, and if you don't,

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Speaker 1: you continuously are charged for the hand set repayments.

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Speaker 2: They would make so much money from that, wouldn't they Exactly?

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Speaker 1: So many people would have changed it. Oh wow. I

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Speaker 1: think it's really important to be on top of your

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Speaker 1: finances in this way, and I know lots of you

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Speaker 1: maybe haven't thought about it because you just see these

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Speaker 1: things as set costs. But these aren't set costs. You

422
00:19:17,119 --> 00:19:19,560
Speaker 1: can always shop around for a better deal. You can always,

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Speaker 1: you know, jump into the Facebook group and go, hey,

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Speaker 1: who are you with? Are they good? At the end

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Speaker 1: of the day. I think there's this massive misconception around

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Speaker 1: mobile phones as well, because ten to fifteen years ago,

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Speaker 1: I'm from Tasmania, humble brag, but whenever i went home,

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Speaker 1: my phone wouldn't work because it was only Telstra. But

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Speaker 1: now it doesn't matter at all for me, And I'm

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Speaker 1: sure this isn't true for everybody, because you know, regional

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Speaker 1: areas are you know, functioning differently. But at the end

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Speaker 1: of the day. My Vota phone plan works just as

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Speaker 1: well in Tasmania, and so I think there's this misconception

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Speaker 1: that not all phone providers are equal. And you know,

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Speaker 1: if you travel home for the weekend, or you know

436
00:19:56,600 --> 00:20:00,280
Speaker 1: you are from Regional Victoria or Regional Australia up in

437
00:20:00,320 --> 00:20:02,680
Speaker 1: a position where you have to be with the best provider,

438
00:20:03,480 --> 00:20:06,359
Speaker 1: maybe it's worthy of re reviewing that because I was

439
00:20:06,359 --> 00:20:08,680
Speaker 1: so fifteen years ago. Friends, Yeah, that's true.

440
00:20:08,680 --> 00:20:10,720
Speaker 2: That is still in my head that Telstra is the best.

441
00:20:10,760 --> 00:20:13,160
Speaker 2: And I'm always scared that I'm really bad with directions,

442
00:20:13,160 --> 00:20:15,800
Speaker 2: so I'm scared that my maps won't work. Wait, is

443
00:20:15,800 --> 00:20:17,440
Speaker 2: that even Telstra? Is that like fact?

444
00:20:17,560 --> 00:20:19,520
Speaker 1: Oh yeah, that would be your internet connection. But at

445
00:20:19,560 --> 00:20:21,520
Speaker 1: the end of the day, I feel like, let's maybe

446
00:20:21,560 --> 00:20:23,879
Speaker 1: have a thread in the Facebook group about what we

447
00:20:23,920 --> 00:20:26,760
Speaker 1: could switch to. How good they are. Yeah, but also,

448
00:20:27,040 --> 00:20:29,400
Speaker 1: if your phone plan doesn't work, you can actually ask

449
00:20:29,440 --> 00:20:31,800
Speaker 1: for a refund because it's not a usable service.

450
00:20:31,920 --> 00:20:35,760
Speaker 2: Yeah, every way, I friends, she's so smart. There probably

451
00:20:35,800 --> 00:20:38,320
Speaker 2: is also a perception that the big businesses you just

452
00:20:38,400 --> 00:20:40,640
Speaker 2: kind of and the big banks you can't question them.

453
00:20:40,720 --> 00:20:43,160
Speaker 2: What they say goes. But that's not the case at all.

454
00:20:43,280 --> 00:20:45,480
Speaker 2: And they're also never They're never going to call you

455
00:20:45,520 --> 00:20:48,200
Speaker 2: and be like, George, how are you going? Haunh, We've

456
00:20:48,200 --> 00:20:50,240
Speaker 2: actually got this sweet deal and we're going to save

457
00:20:50,280 --> 00:20:55,359
Speaker 2: you hundreds of dollars on your bill. Never guess yeah,

458
00:20:55,560 --> 00:20:58,879
Speaker 2: So we do really need to look look after ourselves.

459
00:20:58,880 --> 00:21:00,600
Speaker 1: I'm stun for ourselves. And you know what I'm going

460
00:21:00,640 --> 00:21:03,040
Speaker 1: to do for you guys, because this stuff is hard,

461
00:21:03,240 --> 00:21:06,040
Speaker 1: like having our own backs. Like we listen to a podcast,

462
00:21:06,200 --> 00:21:09,080
Speaker 1: we get really motivated, we turn off the podcast. Georgia

463
00:21:09,160 --> 00:21:11,800
Speaker 1: isn't being motivating in your ears anymore, and you sit

464
00:21:11,840 --> 00:21:14,520
Speaker 1: down and go, I really should call them? What do

465
00:21:14,560 --> 00:21:16,800
Speaker 1: I say? So? I'm going to make you, guys a

466
00:21:16,880 --> 00:21:20,359
Speaker 1: script of how to ask for a discount politely, because

467
00:21:20,359 --> 00:21:22,479
Speaker 1: we don't need to be rude about these things. If

468
00:21:22,520 --> 00:21:24,560
Speaker 1: you find yourself in a position we're like, my gosh,

469
00:21:24,600 --> 00:21:27,200
Speaker 1: I didn't even think of that. I've been overcharged for years.

470
00:21:27,600 --> 00:21:29,320
Speaker 1: Like that is not the girl who works in the

471
00:21:29,359 --> 00:21:31,719
Speaker 1: call center's fault. You do not need to take it

472
00:21:31,760 --> 00:21:34,480
Speaker 1: out on her. She is probably a lovely lady, a

473
00:21:34,520 --> 00:21:38,399
Speaker 1: lovely person. I just think that we should just be polite,

474
00:21:38,480 --> 00:21:41,000
Speaker 1: and you are more likely to get further with you know,

475
00:21:41,200 --> 00:21:43,600
Speaker 1: being kind and being polite and just asking for a

476
00:21:43,600 --> 00:21:45,600
Speaker 1: better deal. And I don't think it's a bad thing

477
00:21:45,600 --> 00:21:48,120
Speaker 1: if someone says, oh, look, I can't do that for you.

478
00:21:48,720 --> 00:21:51,760
Speaker 2: On loyalty tax how can we steer clear of it?

479
00:21:51,800 --> 00:21:53,440
Speaker 2: How can we avoid paying these taxes?

480
00:21:53,560 --> 00:21:55,639
Speaker 1: So we do as I said before, we do need

481
00:21:55,680 --> 00:21:57,840
Speaker 1: to be vigilant. The more vigilant you are, the more

482
00:21:57,840 --> 00:22:00,720
Speaker 1: across your finances you are, then naturally, the more in

483
00:22:00,760 --> 00:22:03,040
Speaker 1: control you are going to be. A lot of us are,

484
00:22:03,119 --> 00:22:06,280
Speaker 1: let's be brutally honest here, too lazy to want to

485
00:22:06,320 --> 00:22:09,800
Speaker 1: think about shopping around or negotiating with our lender because

486
00:22:09,840 --> 00:22:11,520
Speaker 1: it can seem like a lot of effort. But we

487
00:22:11,600 --> 00:22:15,160
Speaker 1: need to remember that those lenders literally want our business,

488
00:22:15,440 --> 00:22:17,719
Speaker 1: that they have a vested interest in keeping us on

489
00:22:17,800 --> 00:22:20,440
Speaker 1: their side. So talking with them about how you can

490
00:22:20,480 --> 00:22:22,720
Speaker 1: make a loan that works for both of you yourself

491
00:22:22,760 --> 00:22:25,400
Speaker 1: and the lender isn't actually as scary or as tedious

492
00:22:25,440 --> 00:22:27,879
Speaker 1: as it sounds. You also really need to remember that

493
00:22:27,920 --> 00:22:30,600
Speaker 1: you're probably not the first person that they've spoken to

494
00:22:30,680 --> 00:22:33,520
Speaker 1: that day about literally the same thing, So why not

495
00:22:33,720 --> 00:22:36,280
Speaker 1: just give them a buzz have an interaction that they'll

496
00:22:36,320 --> 00:22:39,200
Speaker 1: walk away from and be like, Wow, Georgia was so positive.

497
00:22:39,240 --> 00:22:40,920
Speaker 1: That was a really nice call. I'm glad I could

498
00:22:40,920 --> 00:22:43,560
Speaker 1: get her a better deal. So if you are listening

499
00:22:43,600 --> 00:22:46,680
Speaker 1: to this episode and you're thinking, hmmm, I probably should

500
00:22:46,760 --> 00:22:50,320
Speaker 1: be listening to this, my suggestions would be as follows

501
00:22:50,359 --> 00:22:54,280
Speaker 1: my friend. First things first, request a lower rate. Negotiate

502
00:22:54,320 --> 00:22:56,639
Speaker 1: with your lender and see what they're able to offer you,

503
00:22:57,080 --> 00:22:59,440
Speaker 1: see what they are offering new customers and what those

504
00:22:59,480 --> 00:23:03,040
Speaker 1: interests are, throwing a few competitive comparison rates, and just

505
00:23:03,080 --> 00:23:05,840
Speaker 1: bluntly tell them that you're thinking of going elsewhere unless

506
00:23:05,840 --> 00:23:08,520
Speaker 1: they can help you out. If they can't, then I

507
00:23:08,520 --> 00:23:10,400
Speaker 1: think it's time to just see you later, boy.

508
00:23:10,480 --> 00:23:10,960
Speaker 2: Bye.

509
00:23:11,600 --> 00:23:15,480
Speaker 1: Next refinance. If your lender isn't on board, or your

510
00:23:15,800 --> 00:23:18,200
Speaker 1: product provider isn't on board, and they don't really want

511
00:23:18,240 --> 00:23:20,840
Speaker 1: to help you out, then refinance or for another lender

512
00:23:20,960 --> 00:23:23,520
Speaker 1: or another company that you can work with who wants

513
00:23:23,560 --> 00:23:26,119
Speaker 1: to help you out and who you value. It's also

514
00:23:26,160 --> 00:23:28,520
Speaker 1: a really great time to do a little bit of research.

515
00:23:28,600 --> 00:23:30,879
Speaker 1: If you're looking into a bank, why not have a

516
00:23:30,880 --> 00:23:32,800
Speaker 1: look for a bank that actually works for you.

517
00:23:33,359 --> 00:23:33,600
Speaker 2: Yep.

518
00:23:33,760 --> 00:23:35,560
Speaker 1: So, for me, ethics are a really big part of

519
00:23:35,600 --> 00:23:40,960
Speaker 1: my banking and my investment journey. So I'd be looking into, well, Okay,

520
00:23:41,119 --> 00:23:43,080
Speaker 1: what bank can I change to that not only is

521
00:23:43,119 --> 00:23:44,640
Speaker 1: going to give me a bang and rate, but it's

522
00:23:44,680 --> 00:23:47,880
Speaker 1: also going to be even more aligned to my values, So.

523
00:23:47,840 --> 00:23:51,520
Speaker 2: You would save a Categorically, if they're like, nah, girl,

524
00:23:51,720 --> 00:23:52,480
Speaker 2: no discount for.

525
00:23:52,560 --> 00:23:55,600
Speaker 1: You, say no, definitely don't do that. That would be

526
00:23:55,640 --> 00:23:58,440
Speaker 1: incredibly rude. I think first things first, you need to

527
00:23:58,480 --> 00:24:00,800
Speaker 1: put everything on the table for them. I don't think

528
00:24:00,840 --> 00:24:03,440
Speaker 1: it's a bad thing to quote show your cards and say, hey,

529
00:24:03,960 --> 00:24:05,679
Speaker 1: you know, I've been doing a little bit of research.

530
00:24:05,840 --> 00:24:07,639
Speaker 1: I'm sure a lot of lenders are actually going to

531
00:24:07,680 --> 00:24:10,040
Speaker 1: want to hurt me because a lot of you might

532
00:24:10,080 --> 00:24:12,680
Speaker 1: be like, hey, I listened to a podcast like maybe

533
00:24:12,680 --> 00:24:15,200
Speaker 1: don't throw me under a bus. But also at the

534
00:24:15,240 --> 00:24:18,280
Speaker 1: same time, I wouldn't be sad if everybody knew more

535
00:24:18,280 --> 00:24:21,920
Speaker 1: about Cheese on the Money and arguably the incredible refinancing

536
00:24:21,960 --> 00:24:25,480
Speaker 1: work we're doing. But I would essentially just be getting

537
00:24:25,520 --> 00:24:28,560
Speaker 1: on the phone and saying, hey, got this rate, just

538
00:24:28,560 --> 00:24:31,440
Speaker 1: wondering if we could have a chat about negotiating it down.

539
00:24:31,760 --> 00:24:33,800
Speaker 1: And if they say yeah, no problems, like what were

540
00:24:33,840 --> 00:24:36,160
Speaker 1: you thinking? Have a couple of options that you can

541
00:24:36,200 --> 00:24:38,000
Speaker 1: go to them and say, hey, well I was thinking

542
00:24:38,240 --> 00:24:40,720
Speaker 1: X or I was thinking why now. I have seen

543
00:24:40,760 --> 00:24:45,000
Speaker 1: people be successful doing this with bank lenders, with personal

544
00:24:45,119 --> 00:24:47,920
Speaker 1: loans friends. I have seen people do this with their

545
00:24:47,960 --> 00:24:50,800
Speaker 1: gym membership, where they go, hey, I noticed you had

546
00:24:50,880 --> 00:24:53,479
Speaker 1: a new onboarding process, and I don't know why I

547
00:24:53,520 --> 00:24:57,160
Speaker 1: can't just have that and actually being successful. Send people

548
00:24:57,240 --> 00:24:59,199
Speaker 1: do it with their phone plans. I've seen people do

549
00:24:59,240 --> 00:25:02,280
Speaker 1: it with their energy. There is not one thing that

550
00:25:02,440 --> 00:25:05,080
Speaker 1: is not negotiable, and if they decide it is not,

551
00:25:05,400 --> 00:25:07,520
Speaker 1: then that's okay and you can go on your merry way.

552
00:25:07,760 --> 00:25:09,720
Speaker 1: Maybe it was worth a crack, or maybe you are

553
00:25:09,800 --> 00:25:12,280
Speaker 1: going to change lenders. But I do think it is

554
00:25:12,440 --> 00:25:16,560
Speaker 1: really important that you know that when you tell a

555
00:25:16,640 --> 00:25:20,880
Speaker 1: lender on the phone, often for them in policy, they

556
00:25:20,920 --> 00:25:24,000
Speaker 1: have to go into retention mode. So don't just say

557
00:25:24,000 --> 00:25:27,119
Speaker 1: can I have a better deal? I would actually and

558
00:25:27,200 --> 00:25:29,359
Speaker 1: I don't like the word threaten, but I would actually

559
00:25:29,400 --> 00:25:32,280
Speaker 1: threaten that you are going to leave. So in that conversation,

560
00:25:32,520 --> 00:25:35,359
Speaker 1: not just saying hey, I'd love a discount, It's like, hey,

561
00:25:35,520 --> 00:25:38,200
Speaker 1: I've seen this other company that is going to give

562
00:25:38,200 --> 00:25:40,160
Speaker 1: a better rage, and if you can't match it, I'm

563
00:25:40,160 --> 00:25:43,240
Speaker 1: planning on leaving because they won't just go into let's

564
00:25:43,280 --> 00:25:45,439
Speaker 1: give Geordie a better rate mode, They're going to go

565
00:25:45,480 --> 00:25:48,240
Speaker 1: into client retention mode and sometimes you end up being

566
00:25:48,280 --> 00:25:51,200
Speaker 1: transferred to a completely different segment of the business who

567
00:25:51,200 --> 00:25:52,879
Speaker 1: can match that to make sure that you, as a

568
00:25:52,920 --> 00:25:55,760
Speaker 1: client stay on board. Right, probably telling everybody too much.

569
00:25:55,840 --> 00:25:59,920
Speaker 2: Hey, interesting, why do you think be that this isn't

570
00:26:00,080 --> 00:26:04,119
Speaker 2: a conversation that we're having very commonly. We've never really

571
00:26:04,160 --> 00:26:07,879
Speaker 2: had this conversation. I've had a lot of harm moments today.

572
00:26:08,119 --> 00:26:09,960
Speaker 2: Why do you think that we're not talking about this?

573
00:26:10,119 --> 00:26:12,520
Speaker 2: And why are people just choosing to stay with these

574
00:26:12,560 --> 00:26:13,879
Speaker 2: businesses blindly.

575
00:26:13,880 --> 00:26:16,080
Speaker 1: Because they don't know any better. At the end of

576
00:26:16,119 --> 00:26:18,840
Speaker 1: the day, lots of you would have had no idea

577
00:26:19,000 --> 00:26:22,199
Speaker 1: that loyalty tax was a thing, arguably because it's not.

578
00:26:22,359 --> 00:26:24,920
Speaker 1: It's actually just a really nice name. I don't know

579
00:26:24,960 --> 00:26:27,240
Speaker 1: if it's nice, but it's just a name that we've

580
00:26:27,280 --> 00:26:30,760
Speaker 1: given to this concept of staying with someone and having

581
00:26:30,800 --> 00:26:33,880
Speaker 1: to pay more increasingly over time. The end of the day,

582
00:26:34,040 --> 00:26:35,960
Speaker 1: this kind of stuff does take effort. It does take

583
00:26:36,000 --> 00:26:38,040
Speaker 1: a little bit of work to seek out comparisons, and

584
00:26:38,080 --> 00:26:40,520
Speaker 1: for lots of us, we just don't have the energy

585
00:26:40,600 --> 00:26:43,159
Speaker 1: or the passion for finance quote unlike me. So I

586
00:26:43,240 --> 00:26:45,399
Speaker 1: get why lots of people just let it slide and

587
00:26:45,400 --> 00:26:47,639
Speaker 1: they settle for paying more instead of going down there

588
00:26:47,720 --> 00:26:52,120
Speaker 1: seemingly harder route of challenging their lender and of course refinancing.

589
00:26:52,480 --> 00:26:53,840
Speaker 1: I do get it, but I do think it's a

590
00:26:53,880 --> 00:26:55,760
Speaker 1: little bit of a cop out. So sorry, friends, as

591
00:26:55,840 --> 00:26:58,240
Speaker 1: this is not just spare change we're talking about. It's

592
00:26:58,240 --> 00:27:01,280
Speaker 1: potentially tens of thousands of dollars, maybe even more. And

593
00:27:01,320 --> 00:27:04,240
Speaker 1: I want our community to be as educated and inspired

594
00:27:04,320 --> 00:27:07,399
Speaker 1: enough to want to be proactively seeking out these things

595
00:27:07,440 --> 00:27:09,720
Speaker 1: and making sure that they're getting the best deals possible

596
00:27:09,880 --> 00:27:12,399
Speaker 1: so that they can use that saved money efficiently towards

597
00:27:12,440 --> 00:27:14,000
Speaker 1: their path to financial freedom.

598
00:27:14,359 --> 00:27:17,160
Speaker 2: Alrighty, well, you guys heard it here. First, take charge

599
00:27:17,160 --> 00:27:19,040
Speaker 2: of your finances. See if you can get a better

600
00:27:19,119 --> 00:27:21,520
Speaker 2: rate on your Homeland gym membership service provider, and if

601
00:27:21,520 --> 00:27:23,919
Speaker 2: they're not cutting it, take your business elsewhere. What are

602
00:27:23,920 --> 00:27:27,439
Speaker 2: we saying for you? Bye bye bye boy bye byeme.

603
00:27:31,359 --> 00:27:34,880
Speaker 4: Hey, ladies, So I've had a mortgage for seven years now,

604
00:27:35,160 --> 00:27:37,040
Speaker 4: but I feel like I'm seeing a lot of great

605
00:27:37,040 --> 00:27:38,800
Speaker 4: deals around at the moment and feel like it could

606
00:27:38,800 --> 00:27:42,040
Speaker 4: be time to refinance. My question is, though, how do

607
00:27:42,119 --> 00:27:44,600
Speaker 4: I actually do this and how expensive is it?

608
00:27:44,720 --> 00:27:45,080
Speaker 1: Usually?

609
00:27:45,640 --> 00:27:47,800
Speaker 4: I really want this decision to be a money win

610
00:27:47,960 --> 00:27:49,159
Speaker 4: and not a confession.

611
00:27:49,440 --> 00:27:52,760
Speaker 2: Thanks all right, Vicki D. This is actually a question

612
00:27:52,800 --> 00:27:54,560
Speaker 2: that I was going to ask you in the show,

613
00:27:54,600 --> 00:27:57,399
Speaker 2: so lucky I didn't. Who's Vicky D? Who are you with?

614
00:27:57,480 --> 00:28:00,600
Speaker 1: Directory? I'm really okay with it, but that it's okay

615
00:28:00,720 --> 00:28:02,879
Speaker 1: because do you know what I do like helping people

616
00:28:02,880 --> 00:28:05,359
Speaker 1: with their mortgages. I think this is really important And

617
00:28:05,400 --> 00:28:08,639
Speaker 1: the best suggestion I've actually got is go and see

618
00:28:08,680 --> 00:28:11,400
Speaker 1: a mortgage broker. At the end of the day, they

619
00:28:11,400 --> 00:28:13,200
Speaker 1: are going to be able to compare all of these

620
00:28:13,280 --> 00:28:16,320
Speaker 1: deals for you and refinance for you so you're in

621
00:28:16,359 --> 00:28:18,720
Speaker 1: a better position, or tell you that you're not able

622
00:28:18,720 --> 00:28:21,560
Speaker 1: to refinance. If you're in a financial situation, you've just

623
00:28:21,600 --> 00:28:23,400
Speaker 1: started a new job, even if you're earning a little

624
00:28:23,440 --> 00:28:26,040
Speaker 1: bit more money, sometimes they won't refinance you because you're

625
00:28:26,040 --> 00:28:28,160
Speaker 1: still in improbation. So there's lots of things to take

626
00:28:28,200 --> 00:28:32,080
Speaker 1: into consideration when planning a refinance, but I think it's

627
00:28:32,119 --> 00:28:35,280
Speaker 1: really important to understand that a broker gets paid by

628
00:28:35,320 --> 00:28:38,240
Speaker 1: the bank, they don't get paid by you. So the

629
00:28:38,280 --> 00:28:40,440
Speaker 1: way it works is the new bank will pay your

630
00:28:40,480 --> 00:28:43,360
Speaker 1: broker a commission for bringing them new business. It is

631
00:28:43,480 --> 00:28:47,400
Speaker 1: not additional money that you pay as a consumer. Using

632
00:28:47,400 --> 00:28:50,800
Speaker 1: a broker doesn't increase the expense of your mortgage. It

633
00:28:50,880 --> 00:28:53,960
Speaker 1: actually just means that your broker will get a percentage

634
00:28:53,960 --> 00:28:56,240
Speaker 1: of the mortgage that's written because it is not a

635
00:28:56,440 --> 00:28:59,240
Speaker 1: lead that that bank needed to go out and get themselves.

636
00:28:59,400 --> 00:29:01,400
Speaker 1: It was a lead brought to them by that broker,

637
00:29:01,520 --> 00:29:04,440
Speaker 1: So that broker should be remunerated for bringing the bank

638
00:29:04,560 --> 00:29:07,480
Speaker 1: new clients without them having to advertise. So they see

639
00:29:07,480 --> 00:29:10,400
Speaker 1: it as kind of like they're advertising, right. So for me,

640
00:29:10,560 --> 00:29:12,600
Speaker 1: I think the best thing you could do is actually

641
00:29:12,640 --> 00:29:15,240
Speaker 1: go and have a chat with a mortgage broker. Say look,

642
00:29:15,320 --> 00:29:17,440
Speaker 1: I've got a five hundred thousand dollars home loan at

643
00:29:17,480 --> 00:29:20,040
Speaker 1: four percent, and the broker will say, cool, fill in

644
00:29:20,080 --> 00:29:22,480
Speaker 1: this fact fined, give me all your personal details and

645
00:29:22,480 --> 00:29:25,200
Speaker 1: I'll let you know what your options are. The important

646
00:29:25,240 --> 00:29:28,160
Speaker 1: thing here is to go to an independent broker. Though

647
00:29:28,440 --> 00:29:30,719
Speaker 1: you don't want to go and see a bank's broker

648
00:29:30,960 --> 00:29:33,480
Speaker 1: because at the end of the day doesn't mean they're

649
00:29:33,520 --> 00:29:35,959
Speaker 1: not intelligent. It just means they will only put in

650
00:29:35,960 --> 00:29:38,600
Speaker 1: front of you that bank's product. So say you went

651
00:29:38,640 --> 00:29:40,960
Speaker 1: to Bank A, they're only going to give you mortgage

652
00:29:41,000 --> 00:29:44,160
Speaker 1: options that are available at Bank A, whereas for example,

653
00:29:44,200 --> 00:29:46,600
Speaker 1: without being self promotional. But it makes sense because if

654
00:29:46,640 --> 00:29:49,600
Speaker 1: you want a recommendation for a mortgage broker, hit me up. Friends.

655
00:29:50,360 --> 00:29:53,040
Speaker 1: At the end of the day, we have access to

656
00:29:53,160 --> 00:29:56,520
Speaker 1: pretty much everybody under the sun, including credit unions and

657
00:29:56,680 --> 00:29:59,760
Speaker 1: you know, non bank lenders. So you end up in

658
00:29:59,760 --> 00:30:03,840
Speaker 1: a b position where literally every option is evaluated for you,

659
00:30:04,080 --> 00:30:06,440
Speaker 1: heaps are wiped off the table, and then you'll get

660
00:30:06,760 --> 00:30:09,479
Speaker 1: presented with the top three. So someone else is literally

661
00:30:09,480 --> 00:30:12,120
Speaker 1: going to do all the hard work for you without

662
00:30:12,160 --> 00:30:13,920
Speaker 1: you having to pay a cent. And I think that's

663
00:30:13,960 --> 00:30:14,960
Speaker 1: an epic money.

664
00:30:14,680 --> 00:30:16,560
Speaker 2: Within and there's no bias in there because they're not

665
00:30:16,600 --> 00:30:18,000
Speaker 2: acting on behalf of a bank.

666
00:30:17,880 --> 00:30:20,360
Speaker 1: Right, absolutely not, And I think that that's something that

667
00:30:20,480 --> 00:30:23,480
Speaker 1: people think is true. But every single home loan that

668
00:30:23,520 --> 00:30:25,600
Speaker 1: a broker would refer you to would pay them the

669
00:30:25,640 --> 00:30:28,440
Speaker 1: same amount because it's the same amount of loan. So

670
00:30:28,520 --> 00:30:31,560
Speaker 1: there's no value for bank to be chosen over bank

671
00:30:31,600 --> 00:30:33,640
Speaker 1: b by a broker. They just want the best deal

672
00:30:33,720 --> 00:30:35,560
Speaker 1: for you, because at the end of the day, if

673
00:30:35,560 --> 00:30:38,720
Speaker 1: you refinance away from that broker's deal and go and

674
00:30:38,720 --> 00:30:41,520
Speaker 1: get another one, they will lose money. So it's in

675
00:30:41,560 --> 00:30:44,120
Speaker 1: the broker's best interest to make sure that they are

676
00:30:44,120 --> 00:30:46,320
Speaker 1: putting you in the right deal the first time and

677
00:30:46,320 --> 00:30:50,040
Speaker 1: then essentially nurturing your relationship. And I would fully expect

678
00:30:50,040 --> 00:30:52,000
Speaker 1: that if you had a broker that wrote your deal

679
00:30:52,080 --> 00:30:53,600
Speaker 1: and then a couple of years later there was a

680
00:30:53,680 --> 00:30:55,440
Speaker 1: better one, I would expect them to come to you

681
00:30:55,520 --> 00:30:57,840
Speaker 1: and say, hey, Georgia, I know that there's a better

682
00:30:57,880 --> 00:31:00,200
Speaker 1: deal for you. Do you want to go through this?

683
00:31:00,280 --> 00:31:02,360
Speaker 1: And you go, yeah, sure mate, I'll just give you

684
00:31:02,440 --> 00:31:06,000
Speaker 1: updated information. You're going to save me thousands of dollars, fantastic.

685
00:31:06,680 --> 00:31:10,280
Speaker 1: The important thing to make sure that a refinance remains

686
00:31:10,280 --> 00:31:13,280
Speaker 1: a money win for you, though, is to make sure

687
00:31:13,480 --> 00:31:17,160
Speaker 1: that your loan terms remain the same. So say you

688
00:31:17,160 --> 00:31:20,200
Speaker 1: put yourself in a position where ten years ago you

689
00:31:20,280 --> 00:31:23,280
Speaker 1: got a mortgage and that mortgage was thirty years that's

690
00:31:23,280 --> 00:31:26,360
Speaker 1: pretty standard. You go to a new brocaut and they say, George,

691
00:31:26,360 --> 00:31:29,160
Speaker 1: I can refinance you to a new deal, and you

692
00:31:29,240 --> 00:31:32,840
Speaker 1: go fantastic broker. Thank you. You might be saving two percent,

693
00:31:33,120 --> 00:31:34,680
Speaker 1: but at the end of the day, you're starting your

694
00:31:34,720 --> 00:31:36,760
Speaker 1: thirty year period again and therefore you're going to be

695
00:31:36,800 --> 00:31:39,240
Speaker 1: paying interest for longer. That's actually not a better deal.

696
00:31:39,480 --> 00:31:41,320
Speaker 1: It might sound like a better deal because your monthly

697
00:31:41,400 --> 00:31:43,840
Speaker 1: your payments are less, but you're paying more for that

698
00:31:43,960 --> 00:31:46,920
Speaker 1: property over the long term. Terrible plan. So what you

699
00:31:46,960 --> 00:31:48,760
Speaker 1: want to do is go to that broker and say,

700
00:31:48,760 --> 00:31:51,000
Speaker 1: I actually want a twenty year plan, so you will

701
00:31:51,040 --> 00:31:53,120
Speaker 1: pay that home off in the same amount of time

702
00:31:53,440 --> 00:31:54,840
Speaker 1: that you were going to pay it off in the

703
00:31:54,880 --> 00:31:57,760
Speaker 1: first place, but you get a better interest rate for it.

704
00:31:57,920 --> 00:32:01,080
Speaker 1: So for me, that's a really really important point to

705
00:32:01,200 --> 00:32:02,880
Speaker 1: make sure that it is a money win and not

706
00:32:02,920 --> 00:32:03,560
Speaker 1: a confession.

707
00:32:03,800 --> 00:32:07,280
Speaker 2: And can you refinance more than once in your lifetime.

708
00:32:07,760 --> 00:32:09,800
Speaker 1: You can refinance as many times as you want, but

709
00:32:09,840 --> 00:32:12,160
Speaker 1: at the end of the day, it is paperwork and

710
00:32:12,160 --> 00:32:14,160
Speaker 1: stuff that you want to go through. So I'd probably

711
00:32:14,440 --> 00:32:17,560
Speaker 1: not recommend it any any more than every two years

712
00:32:17,640 --> 00:32:20,760
Speaker 1: or so. But at the moment, obviously the market has

713
00:32:20,840 --> 00:32:24,040
Speaker 1: dropped significantly, so noils in time. If you haven't refinanced

714
00:32:24,040 --> 00:32:24,320
Speaker 1: in a.

715
00:32:24,280 --> 00:32:27,720
Speaker 2: While, to probably hit up your local broker, Yeah, brilliant.

716
00:32:28,280 --> 00:32:31,720
Speaker 2: So how long does it actually take them? Like months?

717
00:32:32,560 --> 00:32:35,080
Speaker 1: It could take a week to refinance. At the end

718
00:32:35,160 --> 00:32:38,280
Speaker 1: of the day, it's really dependent on how quickly your

719
00:32:38,280 --> 00:32:41,040
Speaker 1: broker can find a deal get the submissions in. At

720
00:32:41,040 --> 00:32:43,520
Speaker 1: the moment, I know that these things are taking a while.

721
00:32:43,920 --> 00:32:46,280
Speaker 1: I talk to brokers literally every single day because I

722
00:32:46,320 --> 00:32:49,480
Speaker 1: obviously work with them, and at the moment, because COVID

723
00:32:49,520 --> 00:32:52,160
Speaker 1: happened and now heaps of people are wanting to refinance,

724
00:32:52,280 --> 00:32:54,600
Speaker 1: there's really long wait times and it can take up

725
00:32:54,640 --> 00:32:56,640
Speaker 1: to two weeks for your deal to be looked at.

726
00:32:56,760 --> 00:32:58,280
Speaker 1: But at the end of the day, I've had people

727
00:32:58,320 --> 00:33:01,080
Speaker 1: refinance in a week, and I've also seeing clients that

728
00:33:01,120 --> 00:33:04,040
Speaker 1: have taken three months to refinance because they're sole traders

729
00:33:04,080 --> 00:33:06,880
Speaker 1: or small businesses and the amount of information that their

730
00:33:06,920 --> 00:33:10,160
Speaker 1: bank just takes forever to get through. So that's why

731
00:33:10,160 --> 00:33:11,959
Speaker 1: we want a broker on our team because they do

732
00:33:12,000 --> 00:33:14,200
Speaker 1: all the hard work and they'll just ask you, hey, Georgia,

733
00:33:14,200 --> 00:33:16,200
Speaker 1: can you shoot through another copy of your ID or

734
00:33:16,200 --> 00:33:18,280
Speaker 1: whatever it is, and you don't have to follow up

735
00:33:18,280 --> 00:33:20,120
Speaker 1: with the bank all the time because they'll do it for.

736
00:33:20,040 --> 00:33:22,520
Speaker 2: You perfect all right, Well, that sounds like the perfect solution.

737
00:33:22,840 --> 00:33:26,000
Speaker 2: Definitely refinance, and definitely chat to a mortgage broker to.

738
00:33:25,920 --> 00:33:28,200
Speaker 1: Do so if it's right for your situation. And make

739
00:33:28,200 --> 00:33:29,920
Speaker 1: sure that you talk to a broker that you trust

740
00:33:29,960 --> 00:33:32,560
Speaker 1: as well, because not all brokers have been created equally.

741
00:33:32,760 --> 00:33:35,480
Speaker 2: And you'll have you got recommendations. You said that before

742
00:33:35,520 --> 00:33:36,640
Speaker 2: that you've got some I do.

743
00:33:37,080 --> 00:33:37,320
Speaker 3: I do.

744
00:33:37,440 --> 00:33:39,280
Speaker 1: If that's something that you would like, to hit up

745
00:33:39,280 --> 00:33:41,360
Speaker 1: our website for a weekend mat shoot with a broke

746
00:33:41,400 --> 00:33:44,040
Speaker 1: out that will make sense for you in your life.

747
00:33:46,600 --> 00:33:50,320
Speaker 5: Hi, I'm the twenty six year old regretful home buyer

748
00:33:50,480 --> 00:33:51,760
Speaker 5: and this is my money diary.

749
00:33:52,040 --> 00:33:54,920
Speaker 2: What good would a money podcast be without the perfect bits.

750
00:33:55,200 --> 00:33:57,680
Speaker 2: It's time for money diary. Let's get into it.

751
00:33:57,960 --> 00:34:01,360
Speaker 5: So I bought my first house when I was twenty one.

752
00:34:01,400 --> 00:34:03,840
Speaker 5: It was a unit and it was in an area

753
00:34:04,000 --> 00:34:06,720
Speaker 5: that it was kind of a bad area, so no

754
00:34:06,720 --> 00:34:08,560
Speaker 5: one was really looking there, but they tried to build

755
00:34:08,560 --> 00:34:10,040
Speaker 5: a new subdivision.

756
00:34:09,480 --> 00:34:10,040
Speaker 3: On the border.

757
00:34:10,200 --> 00:34:13,239
Speaker 5: So I bought there was extremely cheap for what it was,

758
00:34:14,040 --> 00:34:15,480
Speaker 5: and yeah, I was really lucky.

759
00:34:15,840 --> 00:34:18,480
Speaker 3: A few years later, I decided I.

760
00:34:18,440 --> 00:34:24,160
Speaker 5: Wanted something me more, newer, closer to the city, and

761
00:34:24,520 --> 00:34:27,560
Speaker 5: I sold my unit and I got a really good profit,

762
00:34:28,080 --> 00:34:30,400
Speaker 5: and instead of probably doing the smart thing and buying

763
00:34:30,440 --> 00:34:35,200
Speaker 5: something probably more within my means, I bought something which

764
00:34:35,560 --> 00:34:37,600
Speaker 5: was extremely expensive.

765
00:34:37,160 --> 00:34:40,200
Speaker 3: And pretty much max me out in my borrowing capacity.

766
00:34:40,320 --> 00:34:44,520
Speaker 5: So my repayments are around forty percent of my income

767
00:34:44,520 --> 00:34:47,880
Speaker 5: of fortnite. I have to budget really hard with everything

768
00:34:47,920 --> 00:34:50,920
Speaker 5: I do. I can't just go out for dinner spontaneously.

769
00:34:50,960 --> 00:34:54,240
Speaker 5: I can't just buy top spontaneously. I have to really

770
00:34:54,280 --> 00:34:57,439
Speaker 5: think about everything. And most people I know that get

771
00:34:57,440 --> 00:35:01,279
Speaker 5: a mortgage, it's with a partner so everything, and that's

772
00:35:01,320 --> 00:35:03,560
Speaker 5: not the case with me. Everything I have to foot

773
00:35:03,840 --> 00:35:08,440
Speaker 5: So I'm just really regretting buying something even though I

774
00:35:08,480 --> 00:35:08,879
Speaker 5: love it.

775
00:35:09,600 --> 00:35:11,719
Speaker 3: But that is really pushing me.

776
00:35:12,160 --> 00:35:14,160
Speaker 2: What does she do to earn money? How much does

777
00:35:14,160 --> 00:35:16,480
Speaker 2: she earn and how much is sitting in her bank

778
00:35:16,520 --> 00:35:17,560
Speaker 2: account right now?

779
00:35:17,840 --> 00:35:21,920
Speaker 5: I work in human resources in the government. I am

780
00:35:21,960 --> 00:35:26,200
Speaker 5: between that sixty five thousand and seventy thousand a year

781
00:35:26,960 --> 00:35:29,880
Speaker 5: and at the moment, I have a few different accounts,

782
00:35:29,880 --> 00:35:33,720
Speaker 5: So I have around six five hundred in an emergency account,

783
00:35:34,280 --> 00:35:37,640
Speaker 5: about twelve hundred in a bill's account, and around six

784
00:35:37,760 --> 00:35:40,239
Speaker 5: hundred dollars in a spending account, which is like you know,

785
00:35:40,360 --> 00:35:42,839
Speaker 5: my food and petrol and fun stuff that I'm trying

786
00:35:42,880 --> 00:35:43,120
Speaker 5: to do.

787
00:35:43,320 --> 00:35:46,360
Speaker 2: And what exactly happens to that money after it's deposited

788
00:35:46,440 --> 00:35:47,360
Speaker 2: into her account.

789
00:35:47,520 --> 00:35:49,839
Speaker 5: Instead of going into one bank account, it goes into

790
00:35:49,840 --> 00:35:53,960
Speaker 5: three different bank accounts straight away. So twelve hundred goes

791
00:35:54,000 --> 00:35:57,720
Speaker 5: into my bill's account around sort of like six hundred

792
00:35:57,719 --> 00:36:01,120
Speaker 5: dollars goes into my spending account, and I think like

793
00:36:01,120 --> 00:36:03,920
Speaker 5: two hundred dollars goes into a savings account which I

794
00:36:04,000 --> 00:36:08,160
Speaker 5: use my investments, and one hundred and thirty go into

795
00:36:08,440 --> 00:36:10,640
Speaker 5: like my emergency fund because I want that to go

796
00:36:10,719 --> 00:36:13,080
Speaker 5: up to ten thousand dollars. So yeah, I'm trying to

797
00:36:13,280 --> 00:36:14,759
Speaker 5: keep plotting away and putting money in that.

798
00:36:15,000 --> 00:36:17,879
Speaker 2: Okay, then, so how does twenty eight and getting better

799
00:36:18,000 --> 00:36:19,040
Speaker 2: feel about investing?

800
00:36:19,320 --> 00:36:20,080
Speaker 1: Does she invest?

801
00:36:20,200 --> 00:36:21,720
Speaker 2: And if so, how well.

802
00:36:21,560 --> 00:36:24,560
Speaker 5: I've only really started investing in the last month, just

803
00:36:24,560 --> 00:36:27,279
Speaker 5: from listening to this podcast and a really nice guy

804
00:36:27,320 --> 00:36:30,280
Speaker 5: at my work who's kind of tried directing me in

805
00:36:30,360 --> 00:36:33,520
Speaker 5: the right direction. So I opened up an account with

806
00:36:33,560 --> 00:36:34,839
Speaker 5: an online brokerage.

807
00:36:34,920 --> 00:36:38,520
Speaker 3: So I've got around fourteen hundred in that at the moment.

808
00:36:38,840 --> 00:36:41,520
Speaker 5: So I'm trying to contribute to that every fortnight and

809
00:36:41,560 --> 00:36:43,960
Speaker 5: then I also set up a raise account, which I've

810
00:36:43,960 --> 00:36:47,719
Speaker 5: got the roundups organized through my bank accounts to go

811
00:36:47,800 --> 00:36:49,600
Speaker 5: into there, and I'm hoping to have a thousand in

812
00:36:49,640 --> 00:36:53,320
Speaker 5: there in a year's time. So yeah, I'm really trying

813
00:36:53,360 --> 00:36:55,640
Speaker 5: to learn what I'm supposed to be doing. I don't

814
00:36:55,640 --> 00:36:58,839
Speaker 5: want to go too fast, too soon and get overwhelmed,

815
00:36:58,880 --> 00:37:00,360
Speaker 5: so yeah, slow and steady.

816
00:37:00,640 --> 00:37:03,520
Speaker 2: What about debts like credit cards or personal loans.

817
00:37:03,800 --> 00:37:06,279
Speaker 5: My only debt that I have is my mortgage, and

818
00:37:06,520 --> 00:37:10,919
Speaker 5: it's really big for one person, well for where I live,

819
00:37:10,960 --> 00:37:16,400
Speaker 5: it's big, so that's three hundred and seventy thousand, so yeah,

820
00:37:16,440 --> 00:37:18,880
Speaker 5: that's kind of a big chunk of my money. I

821
00:37:18,960 --> 00:37:21,719
Speaker 5: did finish praying off a car loans, so two years ago,

822
00:37:21,760 --> 00:37:24,920
Speaker 5: I bought a brand new car. Probably shouldn't have because

823
00:37:25,120 --> 00:37:27,840
Speaker 5: from listening to this podcast, so I mean I probably

824
00:37:27,880 --> 00:37:30,480
Speaker 5: should have looked at something secondhand and not so expensive,

825
00:37:30,600 --> 00:37:32,719
Speaker 5: but when you're young, you just want the.

826
00:37:32,680 --> 00:37:33,600
Speaker 3: Flashy new car.

827
00:37:34,080 --> 00:37:35,920
Speaker 5: So I paid off that in two years and I

828
00:37:35,920 --> 00:37:38,719
Speaker 5: was really happy with that. So yeah, really, just my

829
00:37:38,760 --> 00:37:39,920
Speaker 5: mortgage at the moment.

830
00:37:39,840 --> 00:37:41,600
Speaker 2: What is her best money habit?

831
00:37:42,400 --> 00:37:44,960
Speaker 5: I've been shopping a lot, so I had like in

832
00:37:45,040 --> 00:37:48,080
Speaker 5: my mind why do I want to be spending money

833
00:37:48,239 --> 00:37:50,439
Speaker 5: on work clothes when I'm going to work to make

834
00:37:50,480 --> 00:37:52,200
Speaker 5: the money, Like, it just didn't.

835
00:37:51,920 --> 00:37:52,759
Speaker 3: Seem right to me.

836
00:37:52,880 --> 00:37:56,920
Speaker 5: So about a third of my wardrobe is now thrifted stuff.

837
00:37:57,080 --> 00:37:59,520
Speaker 5: So for example, I went down today and I got

838
00:37:59,520 --> 00:38:02,439
Speaker 5: a new drest tags on it and a you work

839
00:38:02,520 --> 00:38:05,960
Speaker 5: top for fifteen dollars, and whereas the tag on that

840
00:38:06,040 --> 00:38:08,600
Speaker 5: dress was seventy dollars, and if I'd bought the top,

841
00:38:08,600 --> 00:38:10,560
Speaker 5: which was a portman's top, it might have been about

842
00:38:10,560 --> 00:38:13,640
Speaker 5: thirty forty dollars. So I'm trying to really do that,

843
00:38:14,360 --> 00:38:16,399
Speaker 5: and I mean it's good for the environment as well.

844
00:38:16,400 --> 00:38:17,520
Speaker 3: I'm trying not to give into.

845
00:38:17,400 --> 00:38:20,279
Speaker 5: Fast fashion and all the different trends that keep coming out.

846
00:38:20,320 --> 00:38:22,920
Speaker 5: I'm just trying to go in there and buy basic

847
00:38:23,000 --> 00:38:24,920
Speaker 5: sort of things that I know I'll love, and if

848
00:38:24,920 --> 00:38:27,000
Speaker 5: I get ten straight down the middle of it, it's

849
00:38:27,040 --> 00:38:27,880
Speaker 5: not the end of the world.

850
00:38:28,040 --> 00:38:30,000
Speaker 2: And what about her worst money habit?

851
00:38:30,480 --> 00:38:32,760
Speaker 5: This is probably something I actually enjoy though. I like food,

852
00:38:32,920 --> 00:38:35,200
Speaker 5: So like today I went and bought a seven dollar

853
00:38:35,320 --> 00:38:37,080
Speaker 5: loaf of rye bread when I could have just gotten

854
00:38:37,160 --> 00:38:38,920
Speaker 5: a two of three dollar loaf of rye bread. But

855
00:38:38,960 --> 00:38:41,240
Speaker 5: when you see the fancy stuff, even though it's double

856
00:38:41,280 --> 00:38:45,080
Speaker 5: the price, it just looks so nice, like the fancy honey,

857
00:38:45,360 --> 00:38:48,440
Speaker 5: the fancy jam, the fancy cheeses. So I like to

858
00:38:48,440 --> 00:38:51,080
Speaker 5: buy that sort of stuff, like the gourmet sort of things.

859
00:38:51,239 --> 00:38:54,200
Speaker 2: So what's today's money diarist actually saving for? What's her

860
00:38:54,200 --> 00:38:54,879
Speaker 2: big money goal?

861
00:38:55,040 --> 00:38:57,160
Speaker 5: Well, my big goal is in a few years where

862
00:38:57,160 --> 00:38:59,680
Speaker 5: I'm in few I'm in like five to ten, I

863
00:38:59,719 --> 00:39:02,160
Speaker 5: want to have a family, so I'd like to be

864
00:39:02,200 --> 00:39:04,239
Speaker 5: around for my family. So that's why I'm starting to

865
00:39:04,320 --> 00:39:07,040
Speaker 5: invest now and trying to get up like my emergency

866
00:39:07,080 --> 00:39:10,080
Speaker 5: fund and my savings because when that happens, I don't

867
00:39:10,120 --> 00:39:12,120
Speaker 5: want to have to go back to work in three

868
00:39:12,160 --> 00:39:13,880
Speaker 5: to six months. I want to actually be able to

869
00:39:14,239 --> 00:39:17,040
Speaker 5: have that time because I've generated a passive income, and

870
00:39:17,320 --> 00:39:18,080
Speaker 5: maybe even go.

871
00:39:18,120 --> 00:39:20,600
Speaker 3: Part time after that for a while and.

872
00:39:20,520 --> 00:39:22,960
Speaker 5: Actually just enjoyed that part of my life not have

873
00:39:23,120 --> 00:39:25,000
Speaker 5: to just go straight back into the workforce.

874
00:39:25,280 --> 00:39:27,360
Speaker 2: And what grade would you give her money habits.

875
00:39:27,640 --> 00:39:31,080
Speaker 5: I've achieved a lot in a short amount of time.

876
00:39:31,480 --> 00:39:33,160
Speaker 5: Like I said, I bought my first house that I

877
00:39:33,200 --> 00:39:35,640
Speaker 5: was twenty one, I sold it and bought my second

878
00:39:35,640 --> 00:39:37,520
Speaker 5: house when I was twenty five, and that was with

879
00:39:37,680 --> 00:39:42,240
Speaker 5: a twenty percent deposit. But given that I haven't found

880
00:39:42,239 --> 00:39:45,280
Speaker 5: my happy medium, and I still check my bank account

881
00:39:45,320 --> 00:39:48,440
Speaker 5: every day and stress over my spending and my saving,

882
00:39:49,280 --> 00:39:51,840
Speaker 5: maybe a B plus just because I'd like to feel

883
00:39:52,280 --> 00:39:55,520
Speaker 5: comfortable and not have to check my bank account all

884
00:39:55,520 --> 00:39:58,480
Speaker 5: the time. And yeah, just be happy with what I'm

885
00:39:58,520 --> 00:40:00,720
Speaker 5: spending and not have to overthink so much.

886
00:40:01,200 --> 00:40:04,960
Speaker 1: Alrighty, Victoria Divine, thank you for using my crevect and

887
00:40:05,040 --> 00:40:05,680
Speaker 1: full name.

888
00:40:07,040 --> 00:40:11,160
Speaker 2: Ah now our twenty six year old regretful home buyer.

889
00:40:11,560 --> 00:40:14,120
Speaker 2: I have lots of notes here. Once again, what did

890
00:40:14,200 --> 00:40:16,240
Speaker 2: you What did you take away from her story?

891
00:40:16,400 --> 00:40:18,960
Speaker 1: I took away from her story that not all the

892
00:40:19,000 --> 00:40:22,320
Speaker 1: glitters is goal and I think it's a really great

893
00:40:22,400 --> 00:40:24,719
Speaker 1: story to be sharing. I mean, not great for her.

894
00:40:24,920 --> 00:40:26,920
Speaker 1: We'll sort her out. But at the end of the day,

895
00:40:27,160 --> 00:40:29,680
Speaker 1: so many of us have this Australian dream in our

896
00:40:29,719 --> 00:40:32,160
Speaker 1: heads that we want to purchase property, and we have

897
00:40:32,320 --> 00:40:33,880
Speaker 1: our eyes set on the prize, and we've got our

898
00:40:33,920 --> 00:40:36,879
Speaker 1: blinkers on, and we don't think about anything other than

899
00:40:36,920 --> 00:40:39,600
Speaker 1: securing a mortgage. Like, we stick our heads down, we

900
00:40:39,680 --> 00:40:42,440
Speaker 1: get our savings on, we've saved our you know, whatever

901
00:40:42,480 --> 00:40:44,799
Speaker 1: it is for our home deposit could be fifty thousand dollars,

902
00:40:44,840 --> 00:40:47,319
Speaker 1: could be one hundred thousand dollars. We're so excited to

903
00:40:47,320 --> 00:40:50,080
Speaker 1: get that mortgage, and then we remember that it's a

904
00:40:50,080 --> 00:40:53,600
Speaker 1: thirty year commitment, yes, and we've got to save that

905
00:40:53,680 --> 00:40:56,239
Speaker 1: amount every month to pay off our mortgage, and we

906
00:40:56,320 --> 00:40:59,680
Speaker 1: realize that maybe that wasn't actually the type of lifestyle

907
00:40:59,840 --> 00:41:03,400
Speaker 1: wanted to live. So I know that it sounds silly,

908
00:41:03,719 --> 00:41:06,960
Speaker 1: but the thing I would do before you even start

909
00:41:07,000 --> 00:41:08,719
Speaker 1: saving for a home loan, I think it would be

910
00:41:08,760 --> 00:41:12,239
Speaker 1: really important to research on average what a home loan

911
00:41:12,280 --> 00:41:14,799
Speaker 1: would cost you every month and make sure you can

912
00:41:14,840 --> 00:41:18,040
Speaker 1: meet that commitment before you even plan to buy. Because

913
00:41:18,080 --> 00:41:20,920
Speaker 1: at the end of the day, if I said to you, Georgia, Okay, well,

914
00:41:21,000 --> 00:41:22,920
Speaker 1: I know you've got this lump sum of money you

915
00:41:22,960 --> 00:41:25,160
Speaker 1: could buy a house, but that's going to cost you

916
00:41:25,200 --> 00:41:28,239
Speaker 1: five thousand dollars a month, you might go, oh, but

917
00:41:28,640 --> 00:41:31,360
Speaker 1: I don't want that. But if you don't have that knowledge,

918
00:41:31,400 --> 00:41:32,920
Speaker 1: you go, great, I'm going to buy a home. I

919
00:41:32,920 --> 00:41:35,520
Speaker 1: don't want to rent anymore. So I think it's really

920
00:41:35,560 --> 00:41:39,440
Speaker 1: important to take into consideration the implications of actually purchasing

921
00:41:39,440 --> 00:41:42,080
Speaker 1: a home and the fact that it's not just mortgage repayments.

922
00:41:42,239 --> 00:41:44,279
Speaker 1: You have to pay rates, you have to pay water,

923
00:41:44,360 --> 00:41:46,600
Speaker 1: you have to pay stamp duty, and they've recently changed

924
00:41:46,600 --> 00:41:48,480
Speaker 1: all of the rules around stamp duty. So we might

925
00:41:48,520 --> 00:41:50,759
Speaker 1: do a cute little bonus episode soon around what that

926
00:41:50,800 --> 00:41:53,400
Speaker 1: actually means for us when they release more information. But

927
00:41:53,480 --> 00:41:55,120
Speaker 1: at the end of the day, there are so many

928
00:41:55,160 --> 00:41:58,160
Speaker 1: additional costs that come with owning a property that we

929
00:41:58,239 --> 00:42:02,120
Speaker 1: need to take into consideration. Not many people do, so

930
00:42:02,200 --> 00:42:04,960
Speaker 1: that's again one of my rants on property ownership and

931
00:42:05,000 --> 00:42:07,520
Speaker 1: just making sure you know what you're taking on. But

932
00:42:07,600 --> 00:42:10,640
Speaker 1: it genuinely sounded like she was getting on track and

933
00:42:10,760 --> 00:42:13,759
Speaker 1: knew what she was talking about, that this guy is

934
00:42:13,800 --> 00:42:16,520
Speaker 1: helping her out with her finances. But at the end

935
00:42:16,520 --> 00:42:18,680
Speaker 1: of the day, it sounded like she was tracking along.

936
00:42:18,719 --> 00:42:21,440
Speaker 2: Well, yeah, I one hundred percent agree. It sounds like

937
00:42:21,480 --> 00:42:23,960
Speaker 2: she was doing everything amazingly. And I mean, she bought

938
00:42:23,960 --> 00:42:27,000
Speaker 2: her first home at twenty one, like she's clearly incredible savvy.

939
00:42:27,000 --> 00:42:30,520
Speaker 1: Little save also something to say here around her other options.

940
00:42:30,560 --> 00:42:32,839
Speaker 1: So she was saying that she regrets buying it, but

941
00:42:32,880 --> 00:42:35,239
Speaker 1: I didn't have a lot of clarity around whether she

942
00:42:35,360 --> 00:42:37,920
Speaker 1: lived in it or not. So maybe for her, the

943
00:42:37,960 --> 00:42:40,320
Speaker 1: outcome could be that she rents out the house until

944
00:42:40,320 --> 00:42:42,480
Speaker 1: she can afford to pay it off, because then she'll

945
00:42:42,520 --> 00:42:45,520
Speaker 1: have somebody else paying her mortgage repayments or a portion

946
00:42:45,640 --> 00:42:48,239
Speaker 1: of and she can put herself in a position where

947
00:42:48,239 --> 00:42:50,200
Speaker 1: she just goes and lives in a sharehouse for a while.

948
00:42:50,280 --> 00:42:52,319
Speaker 1: And I have lots of people and friends that are

949
00:42:52,360 --> 00:42:55,279
Speaker 1: doing that because they genuinely couldn't afford the mortgage if

950
00:42:55,280 --> 00:42:57,440
Speaker 1: they lived in the property. And I think that's a

951
00:42:57,480 --> 00:43:00,120
Speaker 1: savvy way of maybe having your cake and eat it

952
00:43:00,120 --> 00:43:00,439
Speaker 1: it too.

953
00:43:00,600 --> 00:43:04,399
Speaker 2: Yeah. Smart, And we did that whole episode on rent

954
00:43:04,440 --> 00:43:05,640
Speaker 2: Vesting season two.

955
00:43:06,040 --> 00:43:10,400
Speaker 1: It was Yeah, so that go back investing episode. And also,

956
00:43:10,600 --> 00:43:13,000
Speaker 1: just make sure you're across your budgeting cash flow. At

957
00:43:13,040 --> 00:43:14,960
Speaker 1: the end of the day, if you're not across your

958
00:43:14,960 --> 00:43:17,920
Speaker 1: budgeting and cash flow, you're not actually able to probably

959
00:43:17,960 --> 00:43:20,439
Speaker 1: budget and you will always feel like you're treading water

960
00:43:20,480 --> 00:43:20,719
Speaker 1: and not.

961
00:43:20,960 --> 00:43:24,359
Speaker 2: Yeah. Two more things be what's your take? I don't

962
00:43:24,360 --> 00:43:27,880
Speaker 2: think I've asked you this before your take on new cars?

963
00:43:27,880 --> 00:43:29,040
Speaker 2: Have I asked you this question?

964
00:43:29,560 --> 00:43:33,040
Speaker 1: I'm of two minds, right as somebody who currently drives

965
00:43:33,040 --> 00:43:35,279
Speaker 1: a two thousand and six car that I bought in

966
00:43:35,320 --> 00:43:40,440
Speaker 1: my graduate year with personal debt. Like, honestly, I can't talk.

967
00:43:40,520 --> 00:43:42,520
Speaker 1: It was a secondhand car, but like, I went into

968
00:43:42,520 --> 00:43:44,880
Speaker 1: personal debt for it, and we shouldn't do that. Friends,

969
00:43:44,920 --> 00:43:48,400
Speaker 1: That was a dumb move, But that is okay. I

970
00:43:48,480 --> 00:43:51,479
Speaker 1: genuinely don't believe in buying brand new cars purely because

971
00:43:51,480 --> 00:43:54,839
Speaker 1: of how much value they lose the second they walk

972
00:43:54,880 --> 00:43:56,799
Speaker 1: out the door, drive out the door, whatever you want

973
00:43:56,840 --> 00:43:59,120
Speaker 1: to call it. But I think it's really important to

974
00:43:59,120 --> 00:44:02,440
Speaker 1: take those things into consideration. Some people adore that. Some

975
00:44:02,480 --> 00:44:05,120
Speaker 1: people that's their life goal and they just really want

976
00:44:05,120 --> 00:44:06,640
Speaker 1: to buy a brand new car, and I can't talk

977
00:44:06,680 --> 00:44:08,880
Speaker 1: them out of it. That's fine, But at the end

978
00:44:08,920 --> 00:44:11,280
Speaker 1: of the day, so many people get really great deals

979
00:44:11,400 --> 00:44:14,520
Speaker 1: either on demo vehicles, or they don't get a car

980
00:44:14,560 --> 00:44:16,800
Speaker 1: that's maybe one year old and was a corporate vehicle,

981
00:44:17,080 --> 00:44:20,399
Speaker 1: and then it's already depreciated the end of the day.

982
00:44:20,560 --> 00:44:23,239
Speaker 1: I just I don't love the idea that our community

983
00:44:23,320 --> 00:44:26,640
Speaker 1: would be investing their money in a depreciating asset. Yeah,

984
00:44:26,680 --> 00:44:30,440
Speaker 1: if I said to you, Georgia, hey, great idea, why

985
00:44:30,520 --> 00:44:33,680
Speaker 1: don't you buy this asset for thirty thousand dollars and

986
00:44:34,280 --> 00:44:36,439
Speaker 1: great you're going to lose fifteen percent of that thirty

987
00:44:36,520 --> 00:44:38,600
Speaker 1: thousand dollars every year. You'd be like, pit, sure, that's

988
00:44:38,600 --> 00:44:40,239
Speaker 1: a terrible I think I would never do that, And

989
00:44:40,280 --> 00:44:42,239
Speaker 1: he'll be like, but you did when you bought that car.

990
00:44:42,560 --> 00:44:42,759
Speaker 5: Yeah.

991
00:44:42,800 --> 00:44:45,080
Speaker 1: So I think it's really important to understand what that

992
00:44:45,120 --> 00:44:48,000
Speaker 1: actually means and the power of our dollar and where

993
00:44:48,040 --> 00:44:49,600
Speaker 1: else it could be used. But at the end of

994
00:44:49,640 --> 00:44:52,440
Speaker 1: the day, if you dream of car, my friend, please

995
00:44:52,840 --> 00:44:55,719
Speaker 1: share with me what you're buying. Like, I'm not judgmental

996
00:44:55,760 --> 00:44:57,920
Speaker 1: about it. I just want you to be educated in

997
00:44:57,960 --> 00:44:59,440
Speaker 1: the decisions that you are making.

998
00:45:01,320 --> 00:45:03,279
Speaker 2: She also had a couple of good quotes in there.

999
00:45:03,440 --> 00:45:06,640
Speaker 2: She said, why am I spending money on clothes to

1000
00:45:06,680 --> 00:45:09,080
Speaker 2: go to work when I go to work to make money.

1001
00:45:09,200 --> 00:45:11,200
Speaker 2: I thought that was quite I love that and it

1002
00:45:11,440 --> 00:45:11,920
Speaker 2: points me.

1003
00:45:12,040 --> 00:45:14,640
Speaker 1: Right in my soul as somebody who loves to buy

1004
00:45:15,200 --> 00:45:18,480
Speaker 1: corporate outfits. But it's so true. I think that, you know,

1005
00:45:18,840 --> 00:45:21,880
Speaker 1: something that's really important is a capsule wardrobe for me

1006
00:45:22,239 --> 00:45:24,680
Speaker 1: to make sure that they limit my workout fits, but

1007
00:45:24,719 --> 00:45:27,440
Speaker 1: then also just buying really good basics so they last.

1008
00:45:27,480 --> 00:45:29,880
Speaker 2: Yeah, and remind people what to capsule wardrobe is if

1009
00:45:29,880 --> 00:45:30,320
Speaker 2: they don't.

1010
00:45:30,200 --> 00:45:33,080
Speaker 1: Know way you keep a minimal wardrobe where everything in

1011
00:45:33,120 --> 00:45:35,719
Speaker 1: that wardrobe matches each other, so you don't just have

1012
00:45:35,840 --> 00:45:38,720
Speaker 1: one random skirt that doesn't go with any of your tops.

1013
00:45:38,719 --> 00:45:41,160
Speaker 1: You have one skirt that really would match all of

1014
00:45:41,200 --> 00:45:43,160
Speaker 1: your tops, so you can kind of mix and match.

1015
00:45:43,560 --> 00:45:46,800
Speaker 1: And often people will choose maybe like thirty items or

1016
00:45:46,840 --> 00:45:50,560
Speaker 1: fifty items or even one hundred items, which very quickly

1017
00:45:50,600 --> 00:45:52,920
Speaker 1: adds up, like by the time you add in you know,

1018
00:45:53,120 --> 00:45:56,239
Speaker 1: tops and bottoms and pants, like it actually adds up

1019
00:45:56,280 --> 00:45:59,200
Speaker 1: really quickly, which is crazy. But they have a really

1020
00:45:59,200 --> 00:46:01,920
Speaker 1: minimalist amount of clothes that just match everything, and to

1021
00:46:01,960 --> 00:46:03,960
Speaker 1: be honest, it kind of becomes like a work uniform.

1022
00:46:04,000 --> 00:46:04,960
Speaker 1: And that's what I do.

1023
00:46:05,120 --> 00:46:07,560
Speaker 2: Brilliant. She also loves food. She's a girl after my

1024
00:46:07,640 --> 00:46:09,840
Speaker 2: own heart. Seven dollars on rye bread. I support her

1025
00:46:09,960 --> 00:46:12,319
Speaker 2: and she loves fancy cheese. So you know what more.

1026
00:46:12,200 --> 00:46:14,560
Speaker 1: Could she If that's her downfall, I think that she

1027
00:46:14,680 --> 00:46:15,400
Speaker 1: can come over.

1028
00:46:15,280 --> 00:46:18,640
Speaker 2: When exactly right, I think that is all we have

1029
00:46:18,719 --> 00:46:20,360
Speaker 2: time for on today's show, Vicki.

1030
00:46:20,120 --> 00:46:22,880
Speaker 1: D just before we head off, we'd like to acknowledge

1031
00:46:22,880 --> 00:46:26,560
Speaker 1: and pay respects to Australia's Aboriginal and torrest rate islander peoples,

1032
00:46:26,719 --> 00:46:29,680
Speaker 1: the traditional custodians of the lands, the waterways and the

1033
00:46:29,719 --> 00:46:32,880
Speaker 1: skies all across Australia. We thank you for sharing and

1034
00:46:32,920 --> 00:46:35,200
Speaker 1: for caring on the land which we are able to learn.

1035
00:46:35,440 --> 00:46:37,759
Speaker 1: We pay our respects to elders past and present, and

1036
00:46:37,800 --> 00:46:39,839
Speaker 1: we share our friendship and our kindness.

1037
00:46:40,000 --> 00:46:43,040
Speaker 2: Now for the boring stuff. The advice shared on shoes

1038
00:46:43,040 --> 00:46:45,000
Speaker 2: on the money is general in nature and does not

1039
00:46:45,080 --> 00:46:49,000
Speaker 2: consider your individual circumstances. She's on the money exists purely

1040
00:46:49,040 --> 00:46:51,880
Speaker 2: for educational purposes and should not be relied upon to

1041
00:46:51,880 --> 00:46:55,719
Speaker 2: make an investment or financial decision. And we promise Victoria

1042
00:46:55,760 --> 00:46:59,000
Speaker 2: to find is legit. She's an authorized representative of Australia

1043
00:46:59,000 --> 00:47:02,000
Speaker 2: Pacific Funds Management propriet To Limited ABN three four one

1044
00:47:02,080 --> 00:47:05,040
Speaker 2: three two four six three two five seven AFSL three

1045
00:47:05,120 --> 00:47:07,640
Speaker 2: three nine one five one and a big thank you

1046
00:47:07,680 --> 00:47:10,320
Speaker 2: to Ryan John, our producer dal for putting it all together.

1047
00:47:10,480 --> 00:47:12,600
Speaker 1: We would love it if you joined our Facebook group

1048
00:47:12,680 --> 00:47:15,560
Speaker 1: where our community shares money, tips and tricks every single day,

1049
00:47:15,680 --> 00:47:18,320
Speaker 1: free of judgment. So She's on the money on Facebook

1050
00:47:18,360 --> 00:47:20,399
Speaker 1: and join us. If Facebook's not you think we would

1051
00:47:20,480 --> 00:47:23,040
Speaker 1: adore it if you joined our newsletter. Just head to

1052
00:47:23,080 --> 00:47:25,960
Speaker 1: our website, pop your name and details in, and we

1053
00:47:26,080 --> 00:47:29,520
Speaker 1: will add you as quick as possible. It's actually automated,

1054
00:47:29,600 --> 00:47:32,200
Speaker 1: so it will happen literally at that point in time.

1055
00:47:32,680 --> 00:47:35,879
Speaker 1: But every single week we get an unsolicited recommendation from

1056
00:47:35,920 --> 00:47:38,600
Speaker 1: Georgia King and a couple of weeks ago, I'm still

1057
00:47:39,360 --> 00:47:40,359
Speaker 1: traumatized by this.

1058
00:47:40,680 --> 00:47:41,719
Speaker 2: She used my.

1059
00:47:42,400 --> 00:47:43,359
Speaker 1: Sixteen year old driver.

1060
00:47:43,680 --> 00:47:45,239
Speaker 2: Yes, did you like that?

1061
00:47:45,440 --> 00:47:48,120
Speaker 1: I didn't, But I don't think I have any say

1062
00:47:48,160 --> 00:47:49,240
Speaker 1: in the newsletter anymore.

1063
00:47:49,440 --> 00:47:50,200
Speaker 2: Yeah, that you don't.

1064
00:47:50,320 --> 00:47:52,680
Speaker 1: But the newsletter is actually really fun place to go

1065
00:47:52,760 --> 00:47:55,359
Speaker 1: for a recap of the podcast episodes. It is also

1066
00:47:55,400 --> 00:47:57,440
Speaker 1: a fun place to get tips and tricks and chili

1067
00:47:57,480 --> 00:47:58,280
Speaker 1: jam recipes.

1068
00:47:58,320 --> 00:48:00,759
Speaker 2: Often, Yeah, it's quirky. There's a lot in you never

1069
00:48:00,760 --> 00:48:01,640
Speaker 2: know what you're gonna get.

1070
00:48:01,680 --> 00:48:04,759
Speaker 1: We also make really good recommendations of Christmas songs. So

1071
00:48:04,960 --> 00:48:06,400
Speaker 1: if you thought it was going to be a boring

1072
00:48:06,400 --> 00:48:09,640
Speaker 1: finance newsletter, you couldn't have get more wrong. Thought wrong?

1073
00:48:09,920 --> 00:48:11,200
Speaker 2: Is there anywhere else they can find us?

1074
00:48:11,600 --> 00:48:13,279
Speaker 1: They can find us on Instagram, they can find us

1075
00:48:13,320 --> 00:48:16,120
Speaker 1: on TikTok, yourbly, find us that the tram stop. Like

1076
00:48:16,280 --> 00:48:19,040
Speaker 1: wherever you want to be, we can be too. Because

1077
00:48:19,040 --> 00:48:21,360
Speaker 1: we are literally on your phone and in your ears

1078
00:48:21,360 --> 00:48:22,400
Speaker 1: every single Wednesday.

1079
00:48:22,960 --> 00:48:24,160
Speaker 2: My friends, well, my guys,