1 00:00:00,520 --> 00:00:03,080 Speaker 1: Just before we get started, we'd like to acknowledge and 2 00:00:03,160 --> 00:00:06,880 Speaker 1: pay respect to Australia's Aboriginal and torrest Rate islander people's. 3 00:00:07,160 --> 00:00:10,440 Speaker 1: They're the traditional custodians of the lands, the waterways and 4 00:00:10,480 --> 00:00:13,840 Speaker 1: the skies all across Australia. We thank you for sharing 5 00:00:13,960 --> 00:00:15,960 Speaker 1: and for caring for the land on which we are 6 00:00:16,040 --> 00:00:19,520 Speaker 1: able to learn. We pay respects to elders past and present, 7 00:00:19,600 --> 00:00:21,799 Speaker 1: and we share our friendship and our kindness. 8 00:00:22,480 --> 00:00:41,760 Speaker 2: She's on the Money, She's on the Money. 9 00:00:45,520 --> 00:00:48,639 Speaker 1: Hello, and welcome to She's on the Money, the podcast 10 00:00:48,840 --> 00:00:53,120 Speaker 1: Millennials who Want Financial Freedom. Today is Friday, my Friends, 11 00:00:53,159 --> 00:00:55,240 Speaker 1: which means it is time to sit back with the girls, 12 00:00:55,320 --> 00:00:57,840 Speaker 1: namely my girls, Jess and George, and we're going to 13 00:00:57,880 --> 00:00:59,960 Speaker 1: sit back with a bev in hand, to unpack our 14 00:00:59,880 --> 00:01:02,960 Speaker 1: favorite moments of the week and of course to celebrate 15 00:01:03,160 --> 00:01:06,760 Speaker 1: you how incredible She's on the Money community. As always, 16 00:01:06,800 --> 00:01:08,959 Speaker 1: we're going to be sharing our favorite money wins. We're 17 00:01:09,000 --> 00:01:11,240 Speaker 1: going to be discussing what's making news in the finance 18 00:01:11,319 --> 00:01:15,760 Speaker 1: world cough scimo cough, and we'll be helping to answer 19 00:01:15,800 --> 00:01:18,400 Speaker 1: a very juicy money question, which this week is all 20 00:01:18,440 --> 00:01:22,680 Speaker 1: about salary sacrificing But first things first, guys, it is time, 21 00:01:22,800 --> 00:01:26,600 Speaker 1: as always to recap the week that was. Mistress Garrichi, 22 00:01:27,000 --> 00:01:29,160 Speaker 1: can you please tell us what happened on our money 23 00:01:29,160 --> 00:01:30,720 Speaker 1: Diary Monday? I sure can. 24 00:01:30,880 --> 00:01:34,000 Speaker 3: This week's diarist was living the dream. She was working 25 00:01:34,000 --> 00:01:37,399 Speaker 3: in an incredible role in a nonprofit making change, which 26 00:01:37,440 --> 00:01:41,040 Speaker 3: is so incredible. She was really really passionate about the space, 27 00:01:41,360 --> 00:01:44,039 Speaker 3: and particularly about getting women a seat at the table, 28 00:01:44,160 --> 00:01:48,800 Speaker 3: getting voices of diverse people heard, which we need to 29 00:01:48,800 --> 00:01:50,440 Speaker 3: see more of it. We talk about it all the time, 30 00:01:50,520 --> 00:01:52,240 Speaker 3: so it was really incredible to hear her say that. 31 00:01:52,720 --> 00:01:55,400 Speaker 3: But she actually realized that after a few years there, 32 00:01:55,440 --> 00:01:58,080 Speaker 3: she wasn't feeling fulfilled anymore, and she had a few 33 00:01:58,080 --> 00:01:59,680 Speaker 3: other things that she wanted to do, and she took 34 00:01:59,720 --> 00:02:02,400 Speaker 3: a lee of absence, which she's currently still actually on, 35 00:02:02,840 --> 00:02:04,880 Speaker 3: and we chatted a bit about what her plan looks 36 00:02:04,960 --> 00:02:07,400 Speaker 3: like and what she'll be doing going forward. So at 37 00:02:07,440 --> 00:02:09,280 Speaker 3: the moment she's just taking some time with her family, 38 00:02:09,320 --> 00:02:12,160 Speaker 3: which I think is really special. But we delved really 39 00:02:12,160 --> 00:02:16,320 Speaker 3: deeply into the nonprofit space and what it's like to 40 00:02:16,360 --> 00:02:18,080 Speaker 3: be on a board as a woman, and why you 41 00:02:18,080 --> 00:02:19,520 Speaker 3: should want to be on a board as a woman. 42 00:02:19,560 --> 00:02:21,840 Speaker 3: Because I think for a lot of us, a board 43 00:02:21,960 --> 00:02:22,440 Speaker 3: is a bit of. 44 00:02:22,400 --> 00:02:25,119 Speaker 1: A like bougie. It's like so out of reach. 45 00:02:25,400 --> 00:02:27,359 Speaker 3: Yeah, it's a concept that, to be honest, I've never 46 00:02:27,360 --> 00:02:29,840 Speaker 3: really thought about. Like it's like I know that they exist, 47 00:02:30,240 --> 00:02:31,400 Speaker 3: didn't know what they did. 48 00:02:31,240 --> 00:02:34,919 Speaker 1: Really though, So true. And it's it's funny because I'm 49 00:02:34,960 --> 00:02:36,560 Speaker 1: on a board and you work with me, but you 50 00:02:36,600 --> 00:02:38,440 Speaker 1: wouldn't see any of that work I do because I 51 00:02:38,440 --> 00:02:40,840 Speaker 1: don't do it during business hours, so you'd be like, oh, yeah, 52 00:02:40,840 --> 00:02:45,720 Speaker 1: she's at a board meeting, like you have any idea 53 00:02:45,800 --> 00:02:48,320 Speaker 1: what I do. And I find that quite funny because 54 00:02:48,360 --> 00:02:52,000 Speaker 1: I'd never, i guess, thought about the fact that nobody 55 00:02:52,080 --> 00:02:54,639 Speaker 1: really knows what I do in that space or how 56 00:02:54,680 --> 00:02:57,919 Speaker 1: that works. But I also found it really cool because 57 00:02:57,960 --> 00:03:00,320 Speaker 1: she is a friend of ours from across the ditch. 58 00:03:00,360 --> 00:03:03,560 Speaker 1: She lives in New Zealand, and in New Zealand they 59 00:03:03,600 --> 00:03:07,240 Speaker 1: have been far better at embracing diversity than we are 60 00:03:07,320 --> 00:03:11,000 Speaker 1: here in Australia. They have embraced so many beautiful malady 61 00:03:11,040 --> 00:03:15,079 Speaker 1: people to come into Parliament as well, which I absolutely adore, 62 00:03:15,360 --> 00:03:16,880 Speaker 1: and I think that, yeah, we've got a lot to 63 00:03:16,919 --> 00:03:19,320 Speaker 1: learn from them. And she was so special But the 64 00:03:19,440 --> 00:03:22,320 Speaker 1: other thing we touched on in that episode, which I 65 00:03:22,400 --> 00:03:24,720 Speaker 1: thought was really cool. Nothing to do with boards. I'm 66 00:03:24,720 --> 00:03:27,280 Speaker 1: sorry that could be a little bit dry, but it 67 00:03:27,320 --> 00:03:30,640 Speaker 1: was actually income guilt. So she felt really guilty about 68 00:03:30,680 --> 00:03:33,919 Speaker 1: how much money she was earning. Because she was quite senior, 69 00:03:34,240 --> 00:03:37,880 Speaker 1: she did have quite a significant income, but she was 70 00:03:37,920 --> 00:03:39,960 Speaker 1: still like, I'm an exec and I feel really guilty. 71 00:03:40,040 --> 00:03:42,680 Speaker 1: Obviously working in a non for profit sector. She felt 72 00:03:42,680 --> 00:03:44,720 Speaker 1: like that was you know, a lot of money that 73 00:03:44,760 --> 00:03:47,040 Speaker 1: could be allocated, and I was like, yes, but like, 74 00:03:47,200 --> 00:03:49,920 Speaker 1: you're working really hard and you're worth every cent, and 75 00:03:49,960 --> 00:03:52,400 Speaker 1: I just think that no one should have guilt over 76 00:03:52,440 --> 00:03:54,880 Speaker 1: what they're earning because you're literally earning. 77 00:03:54,920 --> 00:03:55,119 Speaker 4: It. 78 00:03:55,280 --> 00:03:58,760 Speaker 3: Correct very interesting, very interesting episode indeed, so highly recommend 79 00:03:58,760 --> 00:03:59,520 Speaker 3: giving that one to listen. 80 00:03:59,600 --> 00:04:04,640 Speaker 1: Skip on over to our Wednesday episode, Missus Georgia king a, hoy, hoy, 81 00:04:04,920 --> 00:04:08,240 Speaker 1: how are you? My Lafe's are we? And happy? Is 82 00:04:08,280 --> 00:04:09,560 Speaker 1: it because you saw Jess? 83 00:04:09,640 --> 00:04:09,880 Speaker 4: Yeah? 84 00:04:09,920 --> 00:04:11,680 Speaker 5: Well could have been that to be with my girls 85 00:04:11,680 --> 00:04:12,320 Speaker 5: in the studio. 86 00:04:12,800 --> 00:04:14,920 Speaker 1: What happened on our Wednesday episode my. 87 00:04:14,920 --> 00:04:19,360 Speaker 5: Last on Wednesday this week, girls, we discussed weddings sad 88 00:04:19,960 --> 00:04:21,760 Speaker 5: which it was. It was a good time because one 89 00:04:21,800 --> 00:04:23,800 Speaker 5: of the three of us sitting at this table, is 90 00:04:23,839 --> 00:04:25,839 Speaker 5: in fact planning her own weddings. 91 00:04:25,839 --> 00:04:29,920 Speaker 1: Why didn't you tell? Using on my hand? 92 00:04:30,560 --> 00:04:33,240 Speaker 5: But it was super interesting, of course, picking the brains 93 00:04:33,279 --> 00:04:37,720 Speaker 5: of Victoria divine, part bride to be part financial advisor. 94 00:04:37,880 --> 00:04:41,880 Speaker 1: It's the purpose, It's really not. It's really not. 95 00:04:42,320 --> 00:04:43,359 Speaker 5: You had lots of tips. 96 00:04:43,480 --> 00:04:46,080 Speaker 1: I tried to give lots of tips. It's interesting because 97 00:04:46,120 --> 00:04:48,520 Speaker 1: after that episode, I had a few chats. I have 98 00:04:48,560 --> 00:04:51,640 Speaker 1: a girlfriend who's also a financial advisor, and she planned 99 00:04:51,640 --> 00:04:54,720 Speaker 1: her wedding to a t like absolute budget queen. Like 100 00:04:54,760 --> 00:04:57,120 Speaker 1: you can learn a lot off this woman factuals. On 101 00:04:57,160 --> 00:04:59,960 Speaker 1: the podcast Rebecca Pritchard, we talked about baby stuff. Yeah, 102 00:05:00,200 --> 00:05:03,320 Speaker 1: she's gorgeous anyway, she planned it to an absolute teage 103 00:05:03,680 --> 00:05:05,840 Speaker 1: and I feel like I'm trying really hard to do that. 104 00:05:05,880 --> 00:05:08,280 Speaker 1: I promise I would like to call myself the Queen 105 00:05:08,279 --> 00:05:11,000 Speaker 1: of spreadsheets. But just because you have a spreadsheet and 106 00:05:11,040 --> 00:05:13,080 Speaker 1: just because you're tracking, it doesn't mean you're not naughty 107 00:05:13,160 --> 00:05:16,120 Speaker 1: and you're not overspendy. And I feel like recently I've 108 00:05:16,160 --> 00:05:18,080 Speaker 1: just been like, yeah, but I really I really want 109 00:05:18,080 --> 00:05:20,920 Speaker 1: the cute matching pajamas. And I didn't realize how expensive 110 00:05:20,960 --> 00:05:22,960 Speaker 1: they were, and I want like all these other things 111 00:05:22,960 --> 00:05:24,440 Speaker 1: that I'm like, all right, Actually I need to take 112 00:05:24,440 --> 00:05:27,680 Speaker 1: a step back and reevaluate my budget because I had 113 00:05:27,720 --> 00:05:31,000 Speaker 1: just assumed, like, this is so dumb because Peter Alexander pajamas. 114 00:05:31,040 --> 00:05:34,080 Speaker 1: Obviously not everyone in my bridal party is getting Peter 115 00:05:34,200 --> 00:05:37,440 Speaker 1: Alexander pajamas. Sorry, not sorry, but I just assumed that 116 00:05:37,520 --> 00:05:39,719 Speaker 1: they were, like, you know, forty or fifty bucks just 117 00:05:39,720 --> 00:05:43,240 Speaker 1: to get like some Plaine matching. No, everything's just blowing 118 00:05:43,240 --> 00:05:45,960 Speaker 1: out of proportion. Guys. I am a wreck and I 119 00:05:46,000 --> 00:05:46,520 Speaker 1: need help. 120 00:05:47,040 --> 00:05:49,040 Speaker 3: Lots of people have been asking for the wedding contents, 121 00:05:49,080 --> 00:05:50,760 Speaker 3: so I hope they were some happy people. 122 00:05:51,200 --> 00:05:52,120 Speaker 5: Maybe a lot to come. 123 00:05:52,120 --> 00:05:54,720 Speaker 1: Amah, there's so much more to come because I feel 124 00:05:54,760 --> 00:05:57,320 Speaker 1: like I'm also learning a lot on this journey as 125 00:05:57,360 --> 00:06:00,240 Speaker 1: well about values and priorities. And it's one of those 126 00:06:00,240 --> 00:06:03,440 Speaker 1: things that you know, when you're buying a house, for example, 127 00:06:03,480 --> 00:06:05,640 Speaker 1: with a partner, it's do we buy this house yes 128 00:06:05,760 --> 00:06:08,360 Speaker 1: or no? Whereas with the wedding, there are so many 129 00:06:08,480 --> 00:06:12,400 Speaker 1: different moving parts that we have to allocate different budgets towards, 130 00:06:12,400 --> 00:06:15,320 Speaker 1: and Steve likes some things that I don't like. And 131 00:06:15,360 --> 00:06:18,560 Speaker 1: Steve's priorities are quite different to mine. Like I think 132 00:06:18,560 --> 00:06:20,120 Speaker 1: we've mentioned it before. He's a bit more of a 133 00:06:20,160 --> 00:06:22,239 Speaker 1: party boy, whereas I'm kind of like, oh, I really 134 00:06:22,240 --> 00:06:25,000 Speaker 1: want good wine and he's like, oh, I kind of 135 00:06:25,040 --> 00:06:27,360 Speaker 1: don't mind. I love a good wine, but like I'm 136 00:06:27,360 --> 00:06:30,320 Speaker 1: going to be drinking heaps of it, So well, oh 137 00:06:30,400 --> 00:06:33,599 Speaker 1: that's not me at all. So there's just this consistent 138 00:06:33,760 --> 00:06:37,920 Speaker 1: conversation of either compromise or not. And it's a lot 139 00:06:38,040 --> 00:06:40,479 Speaker 1: harder than I thought it would be. Because as much 140 00:06:40,480 --> 00:06:42,880 Speaker 1: as you know, we're very grateful to be going through 141 00:06:42,920 --> 00:06:46,320 Speaker 1: this process with you know, easier budget, I would say, 142 00:06:47,040 --> 00:06:48,960 Speaker 1: it doesn't mean that it's not hard to still pick 143 00:06:49,040 --> 00:06:51,600 Speaker 1: and choose and oh my god, Florist's let's not even 144 00:06:51,640 --> 00:06:53,760 Speaker 1: start on that too much to think about it too much, 145 00:06:53,800 --> 00:06:58,520 Speaker 1: too hard, way too hard. You know what's not hardeg 146 00:06:59,000 --> 00:07:02,240 Speaker 1: way of breaking the sheese on the money community. Who's 147 00:07:02,279 --> 00:07:03,520 Speaker 1: with me? Girlies? Oh we are? 148 00:07:03,640 --> 00:07:05,720 Speaker 3: I think you know what's not hard? Was going to 149 00:07:05,760 --> 00:07:08,719 Speaker 3: go into direction, but it didn't. 150 00:07:08,960 --> 00:07:13,000 Speaker 1: So let's get into out this week budget direct money 151 00:07:13,000 --> 00:07:13,720 Speaker 1: wins guys. 152 00:07:13,880 --> 00:07:17,360 Speaker 5: Let's do it very exciting. So the first win this week, Ladies, 153 00:07:17,400 --> 00:07:20,480 Speaker 5: comes from Erin it's quite exciting. I have been offered 154 00:07:20,520 --> 00:07:23,360 Speaker 5: a promotion after getting a new job just eight months ago. 155 00:07:23,640 --> 00:07:25,880 Speaker 5: Between my new job and this promotion, I will have 156 00:07:25,920 --> 00:07:30,200 Speaker 5: almost doubled my income in less than You're are amazing. 157 00:07:30,720 --> 00:07:33,480 Speaker 5: The next win comes from Indiana Money Win. I normally 158 00:07:33,520 --> 00:07:36,800 Speaker 5: spend seven dollars a day on coffee, five days a week. 159 00:07:37,000 --> 00:07:38,000 Speaker 1: That adds up. 160 00:07:38,560 --> 00:07:40,880 Speaker 5: So I trotted down to Coohl's and they had the 161 00:07:40,880 --> 00:07:44,560 Speaker 5: Nest Cafe packets of twenty six sachets for eleven dollars. 162 00:07:44,800 --> 00:07:47,320 Speaker 5: So now I make one every day before going to work. 163 00:07:47,520 --> 00:07:50,640 Speaker 1: That's a hot saving of eighteen hundred and twenty dollars 164 00:07:50,680 --> 00:07:56,280 Speaker 1: a year from scout. I also rate those Nest Cafe 165 00:07:56,640 --> 00:07:58,360 Speaker 1: you know what, They're not that bad and they're not 166 00:07:58,400 --> 00:08:01,160 Speaker 1: that bad. I feel like instant coffee gets a really 167 00:08:01,160 --> 00:08:04,240 Speaker 1: bad rap. But I have a secret addiction. It's not 168 00:08:04,240 --> 00:08:08,680 Speaker 1: so secret now to a million people, but a secret 169 00:08:08,680 --> 00:08:12,360 Speaker 1: addiction to the ConA caramel one. You probably had it 170 00:08:12,400 --> 00:08:14,240 Speaker 1: at my house, because if you come to my house, 171 00:08:14,280 --> 00:08:16,120 Speaker 1: I'll be like, you're on a coffee we do have 172 00:08:16,160 --> 00:08:18,040 Speaker 1: a coffee machine, or offer you that, but I'll also 173 00:08:18,080 --> 00:08:20,120 Speaker 1: be like, do you want to Macona? Though you want. 174 00:08:20,360 --> 00:08:22,600 Speaker 1: You want the good stuff. It's in the coverage. I 175 00:08:22,600 --> 00:08:22,960 Speaker 1: love that. 176 00:08:23,040 --> 00:08:25,520 Speaker 5: I'm gonna chop out and buy some later. The next 177 00:08:25,560 --> 00:08:27,560 Speaker 5: one here, ladies, comes from may Read. There is a 178 00:08:27,560 --> 00:08:31,280 Speaker 5: lot going on, so keep up. I'm apologies in advance. 179 00:08:31,320 --> 00:08:33,079 Speaker 1: We are strapped in. I paid off the. 180 00:08:33,040 --> 00:08:35,880 Speaker 5: Remainder of what I owed to my mum. I'm broke now, 181 00:08:36,000 --> 00:08:38,319 Speaker 5: but at least that's finally done. That's point one, done 182 00:08:38,320 --> 00:08:42,440 Speaker 5: and dusted. Nice so impulsively bought a Dyson air rap 183 00:08:42,480 --> 00:08:45,480 Speaker 5: on Zippay. I know, I know dot dot dot si, 184 00:08:46,040 --> 00:08:47,280 Speaker 5: but you guys can relate to that. 185 00:08:47,360 --> 00:08:50,040 Speaker 1: I know that the air rap is epic. I mean 186 00:08:50,120 --> 00:08:53,720 Speaker 1: the way you've acquired it, let's be honest, but you're 187 00:08:53,840 --> 00:08:55,520 Speaker 1: quite clearly very aware of it. 188 00:08:55,600 --> 00:08:58,520 Speaker 5: Yes, She then packed it up and posted it back 189 00:08:58,559 --> 00:08:59,880 Speaker 5: to Dyson for a refund. 190 00:09:00,600 --> 00:09:02,800 Speaker 1: I just said how good it was. I hope that 191 00:09:02,800 --> 00:09:04,320 Speaker 1: that doesn't trigger any regrets. 192 00:09:04,440 --> 00:09:06,079 Speaker 5: Maybe she can say for it and then by it 193 00:09:06,280 --> 00:09:07,800 Speaker 5: at a more sensible time in her life. 194 00:09:07,840 --> 00:09:10,360 Speaker 1: I agree. In fact, that's actually a really adult decision. 195 00:09:10,480 --> 00:09:13,160 Speaker 1: Exactly how many times have you I can't say I've 196 00:09:13,200 --> 00:09:15,199 Speaker 1: ever bought something and then returned it because I'm like, 197 00:09:15,240 --> 00:09:17,600 Speaker 1: do you know what. This wasn't in budget. I've done 198 00:09:17,640 --> 00:09:20,280 Speaker 1: it once. But that's really cool, isn't it. 199 00:09:20,360 --> 00:09:23,160 Speaker 3: Yeah? I think I genuinely think, you know what, And 200 00:09:23,240 --> 00:09:25,320 Speaker 3: in my situation, I feel like maybe in her situation 201 00:09:25,360 --> 00:09:26,920 Speaker 3: as well, it was just like and in the moment, 202 00:09:26,960 --> 00:09:29,680 Speaker 3: you're like, I deserve this, I'm going to get it, 203 00:09:29,800 --> 00:09:32,640 Speaker 3: treat yourself, and you know what, you do deserve it. However, 204 00:09:33,240 --> 00:09:35,840 Speaker 3: I think if it arrives and you're regretting it, you're 205 00:09:35,840 --> 00:09:37,400 Speaker 3: going to continue to feel that regrets. So I think 206 00:09:37,400 --> 00:09:40,720 Speaker 3: it's awesome that she's gone, actually, don't love this for me, 207 00:09:40,920 --> 00:09:41,719 Speaker 3: I'm going to send it back. 208 00:09:41,960 --> 00:09:44,520 Speaker 1: That takes real how that's a really good win? Yeah, 209 00:09:44,720 --> 00:09:48,320 Speaker 1: love that, but it goes on girls. Oh. 210 00:09:48,400 --> 00:09:50,880 Speaker 5: I then popped to my local library and picked up 211 00:09:50,880 --> 00:09:54,560 Speaker 5: a copy of Victoria's book. Hopefully that will lead to 212 00:09:54,600 --> 00:09:55,480 Speaker 5: more money wins. 213 00:09:56,600 --> 00:09:59,199 Speaker 1: Finally, So I thought she was going to say she 214 00:09:59,240 --> 00:10:01,400 Speaker 1: went into the lib and there was an air raft 215 00:10:01,440 --> 00:10:05,520 Speaker 1: and I was going to go this story to well 216 00:10:05,520 --> 00:10:08,520 Speaker 1: recently that my local library. I don't know, I'm not 217 00:10:08,559 --> 00:10:10,440 Speaker 1: telling you which one because that would be a bit 218 00:10:10,480 --> 00:10:14,880 Speaker 1: too much personal information, but they rent out cake baking trays, 219 00:10:15,240 --> 00:10:17,640 Speaker 1: so really yeah, So like if you want to make 220 00:10:17,640 --> 00:10:21,080 Speaker 1: a dinosaur cake? Oh, I have it? Yeah, Like there's 221 00:10:21,160 --> 00:10:21,560 Speaker 1: tubs of. 222 00:10:21,640 --> 00:10:24,400 Speaker 3: Like can they to go alongside that? They have a 223 00:10:24,440 --> 00:10:26,559 Speaker 3: copy of the Women's Weekly? 224 00:10:26,840 --> 00:10:27,600 Speaker 1: Could borrow it? 225 00:10:28,400 --> 00:10:29,400 Speaker 3: Can we have a competition? 226 00:10:29,440 --> 00:10:29,880 Speaker 1: I don't remember. 227 00:10:29,920 --> 00:10:32,480 Speaker 3: I saw something on TikTok where everyone made a Women's 228 00:10:32,480 --> 00:10:33,080 Speaker 3: Weekly cake? 229 00:10:34,040 --> 00:10:35,839 Speaker 1: Can we have the cake off? Let us know? 230 00:10:36,000 --> 00:10:37,720 Speaker 3: Would you be interested in how she's on the money? 231 00:10:37,760 --> 00:10:40,360 Speaker 1: Cake off? I reckon that would be so fun. 232 00:10:40,480 --> 00:10:41,800 Speaker 3: It's not money related at all. 233 00:10:42,040 --> 00:10:45,559 Speaker 1: I don't even care. Let's call mastership ask if we 234 00:10:45,600 --> 00:10:48,760 Speaker 1: can borrow their kitchens. Our whole heap of novices who 235 00:10:48,800 --> 00:10:52,760 Speaker 1: can't bake in to make a duck with chippy lips. 236 00:10:52,800 --> 00:10:53,800 Speaker 1: I love that one? 237 00:10:54,360 --> 00:10:57,640 Speaker 5: How good? The next one comes from Sophie. It's diy vibes. 238 00:10:57,720 --> 00:11:00,720 Speaker 5: Yes you're listening. I was quoted eleven one thousand dollars 239 00:11:00,760 --> 00:11:03,959 Speaker 5: for new flooring in my recently purchased apartment. I managed 240 00:11:03,960 --> 00:11:06,320 Speaker 5: to knock off three thousand dollars by doing my own 241 00:11:06,400 --> 00:11:09,560 Speaker 5: removal of the old floor and skirting boards. It was 242 00:11:09,640 --> 00:11:12,199 Speaker 5: exhausting work, but at least it makes it more affordable. 243 00:11:12,320 --> 00:11:12,760 Speaker 1: Incredible. 244 00:11:12,840 --> 00:11:14,959 Speaker 3: I think a really good place to save if you're 245 00:11:15,000 --> 00:11:16,720 Speaker 3: running v. You're going through this right now, and you 246 00:11:16,720 --> 00:11:18,120 Speaker 3: guys did a bit of a dareut wide job as 247 00:11:18,120 --> 00:11:18,960 Speaker 3: well in your backyard. 248 00:11:19,320 --> 00:11:21,320 Speaker 1: We did, we did, I mean I did have some 249 00:11:21,360 --> 00:11:24,440 Speaker 1: professional help. But floorboards. When we got the quotes for 250 00:11:24,480 --> 00:11:29,320 Speaker 1: the floorboards, I was shook. So I love Pinterest right, 251 00:11:29,400 --> 00:11:33,200 Speaker 1: and Pinterest blows our expectations completely out. For water, you go, 252 00:11:33,360 --> 00:11:35,800 Speaker 1: I want that that doesn't look too hard, very clean, 253 00:11:35,840 --> 00:11:39,839 Speaker 1: easy kitchen. They're like three billion dollars. No, I don't 254 00:11:39,920 --> 00:11:40,240 Speaker 1: think so. 255 00:11:40,440 --> 00:11:41,760 Speaker 3: Yeah, but if you don't have the skills to put 256 00:11:41,760 --> 00:11:44,120 Speaker 3: something in yourself, maybe you can take it out because 257 00:11:44,280 --> 00:11:47,360 Speaker 3: argument takes less skill to remove it and you can 258 00:11:47,400 --> 00:11:49,400 Speaker 3: save yourself and get a big of aggression out. 259 00:11:49,600 --> 00:11:49,800 Speaker 4: Yeah. 260 00:11:50,520 --> 00:11:53,280 Speaker 1: Really expensive, and we got a quote that was very 261 00:11:53,320 --> 00:11:56,360 Speaker 1: similar in cost, and we've now decided to just polish 262 00:11:56,440 --> 00:11:59,600 Speaker 1: the pre existing floors and call it today because you 263 00:11:59,720 --> 00:12:01,920 Speaker 1: have to have some level of compromising your budget when 264 00:12:01,920 --> 00:12:05,040 Speaker 1: you're renovating, because otherwise it all just completely blows out. 265 00:12:05,120 --> 00:12:08,640 Speaker 1: And as much as I wanted the beautiful herringbone floorboards, 266 00:12:09,160 --> 00:12:11,920 Speaker 1: it just wasn't a money win day. Next time. 267 00:12:12,200 --> 00:12:14,560 Speaker 5: The next week comes from Lauren. I paid off my 268 00:12:14,640 --> 00:12:17,120 Speaker 5: after pay and closed the account after listening to the 269 00:12:17,120 --> 00:12:19,160 Speaker 5: podcast every morning for the last two weeks. 270 00:12:19,200 --> 00:12:23,240 Speaker 1: Oh my gosh, hi again, we've seen each other every day. 271 00:12:24,040 --> 00:12:25,719 Speaker 5: For the first time in a decade. I'm going to 272 00:12:25,800 --> 00:12:28,600 Speaker 5: have money leftover in my next fortnight's pay now onto 273 00:12:28,600 --> 00:12:29,400 Speaker 5: financial freedom. 274 00:12:29,440 --> 00:12:30,560 Speaker 1: That makes me so happy. 275 00:12:30,720 --> 00:12:31,439 Speaker 5: Well done, Lauren. 276 00:12:31,559 --> 00:12:33,320 Speaker 1: That must be such a good feeling to be like. 277 00:12:33,400 --> 00:12:35,600 Speaker 1: I've never had money left over in my pain now 278 00:12:35,679 --> 00:12:35,920 Speaker 1: I do. 279 00:12:36,440 --> 00:12:39,839 Speaker 5: Yeah, really special stuff. The next weeen is from Ali 280 00:12:40,120 --> 00:12:42,600 Speaker 5: Massive money Win. I went to Spotlight to buy some 281 00:12:42,720 --> 00:12:44,880 Speaker 5: jars that were on sale to deck out my pantry. 282 00:12:45,240 --> 00:12:47,200 Speaker 5: I walked to the car after paying, and I thought 283 00:12:47,559 --> 00:12:49,800 Speaker 5: that was a little bit more expensive than I thought 284 00:12:49,800 --> 00:12:52,240 Speaker 5: it would be. Looked at my receipt and lo and behold. 285 00:12:52,280 --> 00:12:54,920 Speaker 5: It turns out the discount wasn't applied. So I went 286 00:12:55,040 --> 00:12:57,400 Speaker 5: back in and the lady at the counter calculated my 287 00:12:57,440 --> 00:13:00,960 Speaker 5: refund incorrectly, so instead of getting fit fifteen dollars back, 288 00:13:01,040 --> 00:13:05,280 Speaker 5: I got seventy dollars back total. I walked away with 289 00:13:05,320 --> 00:13:08,040 Speaker 5: thirty glass jars with bamboo leads for twenty five dollars, 290 00:13:08,880 --> 00:13:10,880 Speaker 5: so like cool, no. 291 00:13:12,200 --> 00:13:13,880 Speaker 1: Corporation, they'll rat. 292 00:13:14,559 --> 00:13:16,000 Speaker 5: Finally, the last one here is. 293 00:13:15,960 --> 00:13:19,480 Speaker 1: From Don't company Swotlight. Sorry, we still want to get sponsored. 294 00:13:19,559 --> 00:13:22,160 Speaker 1: Jessica is really good at do I want to do now? 295 00:13:22,200 --> 00:13:24,240 Speaker 3: I would love to do a DIY series. If anyone 296 00:13:24,280 --> 00:13:27,000 Speaker 3: knows anyone's get lets sure. 297 00:13:27,200 --> 00:13:31,560 Speaker 1: I'll refund. That's seventy bucks you guys, so that there's 298 00:13:31,600 --> 00:13:33,920 Speaker 1: no qualm. Still please talk to us. 299 00:13:34,480 --> 00:13:36,640 Speaker 5: The last one, guys, comes from Rose. I started a 300 00:13:36,679 --> 00:13:39,240 Speaker 5: new job with a twenty thousand dollar pay rise working 301 00:13:39,280 --> 00:13:42,120 Speaker 5: from home part time, so no fuel costs. How cool 302 00:13:42,600 --> 00:13:46,560 Speaker 5: rat I successfully negotiated to work four days thirty hours 303 00:13:46,559 --> 00:13:50,720 Speaker 5: over three days to save money on crazy childcare costs. 304 00:13:51,000 --> 00:13:53,360 Speaker 5: I would have never had the balls to negotiate my 305 00:13:53,400 --> 00:13:56,440 Speaker 5: new working arrangement without the support of my feminist husband, 306 00:13:56,760 --> 00:14:00,200 Speaker 5: Victoria Divine. 307 00:14:00,960 --> 00:14:04,840 Speaker 1: Thank you. I do I do for best husband? 308 00:14:04,880 --> 00:14:05,400 Speaker 3: How iconic? 309 00:14:05,480 --> 00:14:08,280 Speaker 1: Oh my god. Well I'm taking that and running with it. 310 00:14:08,280 --> 00:14:11,160 Speaker 1: It's been great celebrating some of your budget direct money wins, 311 00:14:11,160 --> 00:14:14,000 Speaker 1: who were the winners of the Cancer Insurer of the 312 00:14:14,120 --> 00:14:18,440 Speaker 1: Year Award twenty twenty two. Budget Direct Insurance Solved. But 313 00:14:18,600 --> 00:14:20,640 Speaker 1: now we're going to go to a really quick break. 314 00:14:24,920 --> 00:14:27,240 Speaker 3: Alrighty guys, I've got a good one this week. It 315 00:14:27,320 --> 00:14:30,600 Speaker 3: was requested so many times and before before I get 316 00:14:30,600 --> 00:14:32,640 Speaker 3: anywhere out Victoria Divine, I know you're ready to go. 317 00:14:32,720 --> 00:14:34,120 Speaker 3: I can see it in your eyes. You're ready to 318 00:14:34,120 --> 00:14:37,440 Speaker 3: take someone down. I just want to say, because we 319 00:14:37,520 --> 00:14:39,600 Speaker 3: got torn a new one on our Instagram, and just. 320 00:14:39,520 --> 00:14:41,280 Speaker 1: Always get torn a new one on Instagram. 321 00:14:41,440 --> 00:14:45,480 Speaker 3: For just a little reminder, Guys, when you're cracking onto 322 00:14:45,880 --> 00:14:48,640 Speaker 3: you know a company's post, generally there's a very soft, 323 00:14:48,800 --> 00:14:51,360 Speaker 3: very sad social media manager on the other side of that, 324 00:14:51,400 --> 00:14:56,720 Speaker 3: and in our case that's me, So Jessica, it's been kinder. 325 00:14:56,560 --> 00:14:58,840 Speaker 1: Sometimes it's very easy to make her cry. 326 00:14:59,040 --> 00:15:00,360 Speaker 3: It really is, you know what, I need to grow 327 00:15:00,360 --> 00:15:02,800 Speaker 3: a bit of a thick skin. But just very very clear, 328 00:15:03,400 --> 00:15:05,640 Speaker 3: we as a podcast have not and will not be 329 00:15:05,680 --> 00:15:08,120 Speaker 3: taking a political stance. It is not our place, and 330 00:15:08,240 --> 00:15:10,960 Speaker 3: we so strongly encourage you. If you don't know who 331 00:15:10,960 --> 00:15:13,560 Speaker 3: to vote for, head to the vote Compass website. Find 332 00:15:13,760 --> 00:15:16,360 Speaker 3: a party that aligns with your personal values and your 333 00:15:16,360 --> 00:15:18,520 Speaker 3: personal beliefs. We can't tell you who what when we're 334 00:15:18,600 --> 00:15:21,200 Speaker 3: or how however, today we are going to talk about 335 00:15:21,200 --> 00:15:24,920 Speaker 3: a proposed policy. We're not talking about the political party 336 00:15:24,960 --> 00:15:28,280 Speaker 3: in question, just the policy. The policy in isolation, and 337 00:15:28,360 --> 00:15:32,000 Speaker 3: if you follow Victoria Devine or Scomo if that's the thing. 338 00:15:32,280 --> 00:15:34,800 Speaker 3: On Instagram, you may have seen her kicking up a 339 00:15:34,840 --> 00:15:36,880 Speaker 3: bit of a fuss in the comments over this proposed 340 00:15:37,520 --> 00:15:38,400 Speaker 3: new legislation. 341 00:15:38,680 --> 00:15:40,720 Speaker 1: Ah, yes, sir, I regret nothing. 342 00:15:41,000 --> 00:15:42,400 Speaker 3: Yeah, look, it was very funny. 343 00:15:42,400 --> 00:15:43,960 Speaker 1: I will not lie to you. But there is a 344 00:15:44,040 --> 00:15:46,480 Speaker 1: very big difference though, between She's on the Money, which 345 00:15:46,520 --> 00:15:49,560 Speaker 1: is a platform that exists to educate you and provide 346 00:15:49,640 --> 00:15:53,080 Speaker 1: as much information as possible, and sometimes our personal opinions 347 00:15:53,120 --> 00:15:55,200 Speaker 1: do trickle into that because obviously we'll be like, oh, 348 00:15:55,280 --> 00:15:57,440 Speaker 1: we love that or we don't love that. But this 349 00:15:57,640 --> 00:15:59,720 Speaker 1: is a line that I think, you know, I've discussed 350 00:15:59,760 --> 00:16:01,160 Speaker 1: with them, and I'm like, I don't care who you 351 00:16:01,280 --> 00:16:03,720 Speaker 1: vote for. I care who I vote for, and I 352 00:16:03,800 --> 00:16:06,760 Speaker 1: will share my opinion on my personal Instagram. But you 353 00:16:06,880 --> 00:16:09,280 Speaker 1: don't come to Sheese on the Money to be told 354 00:16:09,320 --> 00:16:11,160 Speaker 1: who to vote for. Like that isn't it. We are 355 00:16:11,320 --> 00:16:14,720 Speaker 1: so deeply grounded in you guys having your own values 356 00:16:14,760 --> 00:16:18,720 Speaker 1: and your own opinions, so it just seems really counterintuitive 357 00:16:18,800 --> 00:16:20,680 Speaker 1: for us to then turn around and be like, okay, cool, 358 00:16:20,720 --> 00:16:23,960 Speaker 1: so this is who we'd vote for. But over the weekend, yes, Jess, 359 00:16:24,120 --> 00:16:25,680 Speaker 1: I did kick up a bit of a stink in 360 00:16:26,040 --> 00:16:29,720 Speaker 1: Scott Morrison's comments section on his recent post, and it 361 00:16:29,880 --> 00:16:32,240 Speaker 1: wasn't because of who posted it. It was actually the 362 00:16:32,360 --> 00:16:35,520 Speaker 1: policy they were posting about, I felt like was a 363 00:16:35,640 --> 00:16:40,080 Speaker 1: relatively cheap grab for vote that does not put any 364 00:16:40,200 --> 00:16:42,720 Speaker 1: of our community in the best possible position. 365 00:16:43,000 --> 00:16:45,160 Speaker 3: Yes, And just to be really clear, because I think 366 00:16:45,200 --> 00:16:47,640 Speaker 3: some people were a little bit confused. When you see 367 00:16:47,640 --> 00:16:49,280 Speaker 3: something scary online you kind of go, oh my god, 368 00:16:49,320 --> 00:16:52,120 Speaker 3: how's that going to impact me? It is just proposed legislation. 369 00:16:52,240 --> 00:16:55,960 Speaker 3: It's in effect, and even if his party were to 370 00:16:56,080 --> 00:16:58,160 Speaker 3: be elected, there are no guarantees. 371 00:16:58,400 --> 00:17:01,040 Speaker 1: But they actually do what they said that It originally pretty. 372 00:17:00,800 --> 00:17:03,160 Speaker 3: Common that in you know, right now election run up, 373 00:17:03,200 --> 00:17:04,920 Speaker 3: they just want your votes, so they're telling you what 374 00:17:04,960 --> 00:17:07,879 Speaker 3: they know the experience. Whether or not that does come 375 00:17:07,920 --> 00:17:12,360 Speaker 3: into effect remains to be seen, but regardless the policy 376 00:17:12,640 --> 00:17:13,119 Speaker 3: Victoria to. 377 00:17:13,160 --> 00:17:15,840 Speaker 1: Talk about it. So the Liberal government have come out 378 00:17:16,000 --> 00:17:20,240 Speaker 1: and said that they are proposing that people will be 379 00:17:20,320 --> 00:17:23,119 Speaker 1: allowed to take up to fifty thousand dollars worth of 380 00:17:23,119 --> 00:17:26,639 Speaker 1: their superannuation out to purchase property. And I find this 381 00:17:27,080 --> 00:17:31,680 Speaker 1: incredibly detrimental for a couple of reasons. So Firstly, they're 382 00:17:31,720 --> 00:17:34,280 Speaker 1: saying that it will push property prices down. No, it 383 00:17:34,359 --> 00:17:37,480 Speaker 1: absolutely will not. It will push property prices up, and 384 00:17:37,720 --> 00:17:39,680 Speaker 1: it will make you more reliant on welfare if you're 385 00:17:39,720 --> 00:17:42,679 Speaker 1: not properly structured in the future. So they've said it's 386 00:17:42,800 --> 00:17:45,159 Speaker 1: up to fifty grand, which is forty percent of your 387 00:17:45,240 --> 00:17:48,040 Speaker 1: super which is massive, and I find that to be 388 00:17:48,760 --> 00:17:50,840 Speaker 1: It's very different to the first time super savor scheme, 389 00:17:50,840 --> 00:17:53,200 Speaker 1: which is where you can put money into superannuation and 390 00:17:53,359 --> 00:17:56,560 Speaker 1: you're able to then access it later for property. 391 00:17:56,600 --> 00:17:59,960 Speaker 3: Because that's an additional contribution, not your mandated ten percent, 392 00:18:00,000 --> 00:18:00,880 Speaker 3: and from your employees. 393 00:18:00,880 --> 00:18:05,120 Speaker 1: So this would be digging into your pre existing superannuation balance, 394 00:18:05,560 --> 00:18:09,200 Speaker 1: and from my perspective, that is so bad. We as females, 395 00:18:09,520 --> 00:18:13,520 Speaker 1: especially as females, are already so behind when it comes 396 00:18:13,560 --> 00:18:18,280 Speaker 1: to super that to then take that and put that 397 00:18:18,400 --> 00:18:22,480 Speaker 1: on steroids is terrible and I don't want a stereotype. 398 00:18:22,880 --> 00:18:26,399 Speaker 1: But the people that would be most reliant on this 399 00:18:26,760 --> 00:18:30,480 Speaker 1: potential legislation are the people who are most at risk. 400 00:18:30,720 --> 00:18:33,679 Speaker 1: They're the people who don't have enough financial literacy. They 401 00:18:33,760 --> 00:18:35,800 Speaker 1: see it as a really easy ticket to get into 402 00:18:35,840 --> 00:18:38,840 Speaker 1: the property market. Because I had so many conversations over 403 00:18:38,880 --> 00:18:41,520 Speaker 1: the weekend in my DMS of me posting, Okay, this 404 00:18:41,680 --> 00:18:44,320 Speaker 1: is what that means. So fifty thousand dollars of your 405 00:18:44,359 --> 00:18:46,760 Speaker 1: super Jess, let's say you go and do this scheme. 406 00:18:47,280 --> 00:18:49,680 Speaker 1: You are young, so you'll go. It doesn't matter. I'll 407 00:18:49,720 --> 00:18:52,040 Speaker 1: make it back later. But that fifty grand and an 408 00:18:52,040 --> 00:18:54,119 Speaker 1: average return of seven and a half percent, which is 409 00:18:54,160 --> 00:18:58,480 Speaker 1: our market average when it comes to predicting potential increases 410 00:18:58,520 --> 00:19:02,639 Speaker 1: in income, that becomes five hundred and seventy five thousand dollars. 411 00:19:03,040 --> 00:19:06,800 Speaker 1: That is more than what the average female retires with. 412 00:19:07,720 --> 00:19:10,639 Speaker 1: That's pretty crazy. What that's far more than what the 413 00:19:10,720 --> 00:19:14,080 Speaker 1: average female retires within super. How is that normal? 414 00:19:14,520 --> 00:19:14,560 Speaker 2: Like? 415 00:19:14,680 --> 00:19:16,840 Speaker 1: How is that not putting you in the worst possible 416 00:19:16,880 --> 00:19:18,600 Speaker 1: position ever? Yeah, that's wild. 417 00:19:18,680 --> 00:19:21,760 Speaker 3: And like to put it in perspective, I'm gonna generalize 418 00:19:21,760 --> 00:19:24,960 Speaker 3: a bit and say first home owners between you know, 419 00:19:25,080 --> 00:19:28,000 Speaker 3: let's say twenty and maybe thirty five. That's kind of 420 00:19:28,080 --> 00:19:30,800 Speaker 3: our approximate age in the podcast. I fall squarely within 421 00:19:30,880 --> 00:19:32,720 Speaker 3: that bracket. As you guys know, I'm a first home 422 00:19:32,880 --> 00:19:35,840 Speaker 3: or hope for a first home buyer. The average person 423 00:19:36,480 --> 00:19:40,879 Speaker 3: aged between thirty and thirty four in Australia has fifty one, 424 00:19:41,240 --> 00:19:43,240 Speaker 3: one hundred and seventy five dollars in their super. So 425 00:19:43,280 --> 00:19:45,920 Speaker 3: that is like almost every dollar that you have in 426 00:19:46,080 --> 00:19:48,760 Speaker 3: your super at the age of thirty four. And obviously 427 00:19:48,840 --> 00:19:50,280 Speaker 3: you can be older or younger, or you might have 428 00:19:50,359 --> 00:19:52,960 Speaker 3: more or less whatever, But I don't know that many 429 00:19:53,080 --> 00:19:56,560 Speaker 3: people who would enough to take the full fifty Yeah, 430 00:19:57,520 --> 00:19:59,560 Speaker 3: the fact that they're like fifty seems like a good number. 431 00:19:59,600 --> 00:20:01,560 Speaker 3: How many people have that at our age? 432 00:20:01,640 --> 00:20:04,679 Speaker 1: But not many unless they've really prioritized it or are 433 00:20:05,040 --> 00:20:08,600 Speaker 1: super high income earners, which would really make me wonder 434 00:20:08,640 --> 00:20:11,640 Speaker 1: why they're relying on superranuation to buy a first property, 435 00:20:11,640 --> 00:20:14,920 Speaker 1: because they probably have enough disposable income, again generalizing to 436 00:20:14,960 --> 00:20:18,440 Speaker 1: purchase a property. But I did the maths because obviously 437 00:20:18,560 --> 00:20:21,320 Speaker 1: not all of us can rely on that fifty grand right, 438 00:20:21,560 --> 00:20:24,280 Speaker 1: they said forty percent of your super up to fifty 439 00:20:24,359 --> 00:20:28,000 Speaker 1: thousand dollars at a cap. So let's say that you 440 00:20:28,080 --> 00:20:31,600 Speaker 1: know that twenty five to forty four year old bracket 441 00:20:31,760 --> 00:20:34,320 Speaker 1: is what we're talking about. If you're twenty five to 442 00:20:34,440 --> 00:20:36,480 Speaker 1: thirty four years old, which is about what our she's 443 00:20:36,560 --> 00:20:40,400 Speaker 1: on the money demographic is, you only have thirty one thousand, 444 00:20:40,520 --> 00:20:43,880 Speaker 1: eight hundred dollars in your superranuation. And then if we said, 445 00:20:44,040 --> 00:20:46,960 Speaker 1: all right, well what's forty percent of that? That's twelve 446 00:20:47,000 --> 00:20:49,560 Speaker 1: and a half thousand dollars. What house are you buying 447 00:20:49,600 --> 00:20:52,000 Speaker 1: with a twelve and a half thousand dollars deposit to 448 00:20:52,080 --> 00:20:54,600 Speaker 1: make taking that amount of money off you in retirement 449 00:20:54,680 --> 00:20:57,560 Speaker 1: actually worth it? Like, twelve and a half grand is 450 00:20:57,680 --> 00:21:00,960 Speaker 1: not a deposit on any property that I'm allf. 451 00:21:00,560 --> 00:21:03,280 Speaker 5: So are we thinking that this is maybe then just 452 00:21:03,359 --> 00:21:05,640 Speaker 5: a bit of a ploy for votes more than anything, 453 00:21:05,760 --> 00:21:08,320 Speaker 5: and that people are going to read the headline only. 454 00:21:08,280 --> 00:21:10,439 Speaker 1: It's insane because then if we look across the country, 455 00:21:10,520 --> 00:21:13,440 Speaker 1: we know property prices in Melbourne and in Sydney are 456 00:21:13,640 --> 00:21:17,320 Speaker 1: well on average, well above a million dollars, But across 457 00:21:17,359 --> 00:21:20,240 Speaker 1: Australia the median house price is eight hundred and fifty 458 00:21:20,320 --> 00:21:25,479 Speaker 1: one thousand dollars. But that means an average twenty percent deposit. 459 00:21:25,560 --> 00:21:28,000 Speaker 1: We're not getting into the semantics of what a guarantry 460 00:21:28,119 --> 00:21:30,000 Speaker 1: is or if you have less or more but a 461 00:21:30,080 --> 00:21:34,080 Speaker 1: twenty percent deposit on that median house that's one hundred 462 00:21:34,080 --> 00:21:38,680 Speaker 1: and seventy thousand dollars. So how is this strategy that's 463 00:21:38,720 --> 00:21:42,320 Speaker 1: going to put us so far behind when retirement comes 464 00:21:42,720 --> 00:21:45,879 Speaker 1: actually putting us in a better possible position to purchase property. 465 00:21:46,680 --> 00:21:47,240 Speaker 5: It's not at all. 466 00:21:47,280 --> 00:21:50,360 Speaker 3: And I kind of want to unpack this in two places, 467 00:21:50,520 --> 00:21:52,240 Speaker 3: going back to what you kind of said at the start, 468 00:21:52,320 --> 00:21:55,160 Speaker 3: where the most common responses we're seeing are people saying, 469 00:21:55,160 --> 00:21:57,160 Speaker 3: oh my god, it's going to push the property prices down, 470 00:21:57,440 --> 00:21:58,680 Speaker 3: and then oh my god, what is that going to 471 00:21:58,720 --> 00:22:00,240 Speaker 3: mean for a tirem So let's talk about property first, 472 00:22:00,280 --> 00:22:01,840 Speaker 3: because I feel like that's what people care about. 473 00:22:01,960 --> 00:22:04,159 Speaker 1: I would just like to carry on about super for 474 00:22:04,240 --> 00:22:06,240 Speaker 1: a really long time, but this is a very good time. 475 00:22:07,080 --> 00:22:10,280 Speaker 3: We could talk about it all day. But obviously there's 476 00:22:10,280 --> 00:22:11,679 Speaker 3: a bit of back and forth. The people who are 477 00:22:11,680 --> 00:22:13,240 Speaker 3: in support are very much saying this is going to 478 00:22:13,280 --> 00:22:16,320 Speaker 3: be great, like you can afford a house sooner, better, wonderful. 479 00:22:16,960 --> 00:22:19,040 Speaker 3: Why is that not the case? What impact is this 480 00:22:19,359 --> 00:22:21,280 Speaker 3: potentially going to have on property prices? 481 00:22:21,600 --> 00:22:24,920 Speaker 1: So let's pretend for a hot second that everybody was 482 00:22:24,960 --> 00:22:27,119 Speaker 1: able to get out fifty grand and then magically have 483 00:22:27,280 --> 00:22:30,040 Speaker 1: their house deposit. They might already have some savings, or 484 00:22:30,080 --> 00:22:31,919 Speaker 1: it might actually take them to the point where they 485 00:22:32,000 --> 00:22:34,680 Speaker 1: have enough for the house of their dreams. Right, there's 486 00:22:34,720 --> 00:22:37,280 Speaker 1: more people in the market, and the property market is 487 00:22:37,359 --> 00:22:40,920 Speaker 1: driven by supply and demand. Are we building a whole 488 00:22:40,920 --> 00:22:42,879 Speaker 1: heap of other houses to now keep up with the 489 00:22:42,960 --> 00:22:46,320 Speaker 1: increased demand that is going to exist because there's going 490 00:22:46,400 --> 00:22:48,879 Speaker 1: to be more people like Jess who have money to 491 00:22:49,040 --> 00:22:51,320 Speaker 1: spend on property now because they've pulled it out of 492 00:22:51,320 --> 00:22:55,399 Speaker 1: their subernuation. So Jess, you who has saved fort literally 493 00:22:55,560 --> 00:22:57,520 Speaker 1: years to afford your first property, and you're now in 494 00:22:57,600 --> 00:22:59,520 Speaker 1: this position where we're looking for one, and it's very 495 00:22:59,560 --> 00:23:02,560 Speaker 1: exciting if this goes through and it happened, and let's 496 00:23:02,600 --> 00:23:05,240 Speaker 1: be honest, none of that ever happens quickly. That will 497 00:23:05,280 --> 00:23:07,359 Speaker 1: take a very long time. But if this happened, you 498 00:23:07,480 --> 00:23:10,440 Speaker 1: now have more competition. There's no more houses, so that 499 00:23:10,560 --> 00:23:14,520 Speaker 1: would increase property prices, not decrease them, just because people 500 00:23:14,640 --> 00:23:15,840 Speaker 1: have a lower deposit amount. 501 00:23:15,920 --> 00:23:19,200 Speaker 5: And it's also for that more affordable demographic. Right, it's 502 00:23:19,240 --> 00:23:21,399 Speaker 5: all the same first home buyer is going for the 503 00:23:21,440 --> 00:23:24,760 Speaker 5: same property, so that they're those practically driven up exactly. 504 00:23:24,840 --> 00:23:27,320 Speaker 1: And we're not just talking about the property market across 505 00:23:27,359 --> 00:23:30,399 Speaker 1: the board, like we need to talk about accessibility and 506 00:23:30,800 --> 00:23:33,879 Speaker 1: what types of properties are actually being bought by millennials, 507 00:23:33,960 --> 00:23:36,680 Speaker 1: because I think everyone goes, wow, the averages million dollars. 508 00:23:36,680 --> 00:23:39,040 Speaker 1: I'm like, well, not every millennial is buying a million 509 00:23:39,080 --> 00:23:41,800 Speaker 1: dollar property like that is a ridiculous amount of money 510 00:23:41,920 --> 00:23:45,000 Speaker 1: to be spending. And lots of you are looking at 511 00:23:45,119 --> 00:23:48,480 Speaker 1: like four hundred or five hundred thousand dollar property purchases, 512 00:23:48,520 --> 00:23:51,920 Speaker 1: and that seems quite normal in our community. They're the 513 00:23:52,000 --> 00:23:54,800 Speaker 1: ones that are going to increase significantly in value because 514 00:23:54,800 --> 00:23:57,520 Speaker 1: they're the ones that are in demand. What another four 515 00:23:57,600 --> 00:24:00,359 Speaker 1: hundred thousand dollar property is going to be popping up anywhere. No, 516 00:24:00,680 --> 00:24:03,720 Speaker 1: because we don't have the capacity to do that. So 517 00:24:03,920 --> 00:24:06,440 Speaker 1: I just think that it's a bit flawed in that 518 00:24:06,640 --> 00:24:10,000 Speaker 1: if they're saying, oh, it'll make property more aft. How yeah, 519 00:24:10,440 --> 00:24:11,520 Speaker 1: let's say it works. 520 00:24:11,800 --> 00:24:14,480 Speaker 3: You get your property, you have your house, stoked on life, 521 00:24:15,240 --> 00:24:17,960 Speaker 3: forty years goes by, when now sixty five and ready 522 00:24:18,000 --> 00:24:21,200 Speaker 3: to retire, what does that potentially now look like with 523 00:24:21,320 --> 00:24:23,200 Speaker 3: the impact of what we've withdrawn. 524 00:24:23,400 --> 00:24:25,920 Speaker 1: So they're talking about how this is actually a good 525 00:24:26,040 --> 00:24:29,560 Speaker 1: system because you'll put the money back in your super 526 00:24:29,800 --> 00:24:33,480 Speaker 1: real apparently apparently. So let's pretend for a hot second 527 00:24:33,480 --> 00:24:35,280 Speaker 1: that was mandated and you had to put your money 528 00:24:35,359 --> 00:24:38,880 Speaker 1: back into super if you sold, Why are you selling 529 00:24:38,960 --> 00:24:41,359 Speaker 1: your family home when you're retiring? Where are you planning 530 00:24:41,400 --> 00:24:45,040 Speaker 1: on living? I guarantee the type of person, and this 531 00:24:45,200 --> 00:24:48,520 Speaker 1: is not me stereotyping or being rude about it, I promise, 532 00:24:48,600 --> 00:24:50,680 Speaker 1: but the type of person that needs to rely on 533 00:24:50,720 --> 00:24:53,840 Speaker 1: their superannuation to pull money out buy their first property 534 00:24:53,960 --> 00:24:56,360 Speaker 1: is not buying a house you can downsize from. You're 535 00:24:56,400 --> 00:24:59,879 Speaker 1: not buying a five bedroom mega mansion that you can 536 00:25:00,000 --> 00:25:02,320 Speaker 1: and then go down to a cute little two bedroom 537 00:25:02,359 --> 00:25:05,840 Speaker 1: apartment like. No, you're actually buying the two bedroom apartment 538 00:25:05,920 --> 00:25:08,360 Speaker 1: as your home you're going to get all the way 539 00:25:08,440 --> 00:25:11,560 Speaker 1: through to retirement. You're going to retire. And most people 540 00:25:11,600 --> 00:25:15,160 Speaker 1: who invest in their first home as their actual investment, 541 00:25:15,240 --> 00:25:16,960 Speaker 1: which I don't believe it is. And I've said this 542 00:25:17,040 --> 00:25:19,960 Speaker 1: a million times, your family home is not an investment. 543 00:25:20,240 --> 00:25:22,200 Speaker 1: And I say that because I don't want you to 544 00:25:22,280 --> 00:25:25,000 Speaker 1: be reliant on what your family home is worth when 545 00:25:25,040 --> 00:25:27,600 Speaker 1: you retire to have to survive. We want to rely 546 00:25:27,760 --> 00:25:30,560 Speaker 1: on investments and subernuation and things that actually put us 547 00:25:30,600 --> 00:25:33,600 Speaker 1: in a position where how good is this. We've bought 548 00:25:33,600 --> 00:25:35,760 Speaker 1: our two bedroom apartment and let's pretend we never buy 549 00:25:35,800 --> 00:25:39,119 Speaker 1: another property again, we never sell it. We've lived there forever. 550 00:25:39,560 --> 00:25:42,320 Speaker 1: We've now retired, we don't have a mortgage, were completely 551 00:25:42,400 --> 00:25:45,199 Speaker 1: rent free, and we now rely on our super How 552 00:25:45,240 --> 00:25:45,720 Speaker 1: good is that? 553 00:25:46,440 --> 00:25:48,000 Speaker 3: But that't the fact that you got rid of half 554 00:25:48,040 --> 00:25:49,640 Speaker 3: your stupid to get the house in the first place. 555 00:25:49,560 --> 00:25:54,000 Speaker 1: For not half, not half. Don't be so dramatic, Jessica. Sorry, sorry, 556 00:25:54,600 --> 00:25:57,520 Speaker 1: Let's say that you did that. You're putting yourself nearly 557 00:25:57,560 --> 00:25:59,760 Speaker 1: half a million dollars more than half a million dollars 558 00:25:59,760 --> 00:26:02,960 Speaker 1: beyrend in retirement by making that decision. And if we 559 00:26:03,119 --> 00:26:05,680 Speaker 1: look at the property market as a bit more of 560 00:26:05,760 --> 00:26:08,240 Speaker 1: a whole, I think that there still seems to be 561 00:26:08,400 --> 00:26:11,159 Speaker 1: this bubble of people who are like property is the 562 00:26:11,560 --> 00:26:15,520 Speaker 1: only option when it comes to investment because it's so powerful. 563 00:26:15,760 --> 00:26:18,920 Speaker 1: Look how much, jess it's increased in last thirty years. 564 00:26:19,280 --> 00:26:24,080 Speaker 1: You go, okay, but that's actually completely unsustainable. Yes, property 565 00:26:24,200 --> 00:26:27,320 Speaker 1: is increasing, but it's definitely not increasing in the way 566 00:26:27,440 --> 00:26:30,960 Speaker 1: that it has historically. There was obviously that bubble during 567 00:26:31,040 --> 00:26:35,040 Speaker 1: COVID where regional properties increased significantly because we could work 568 00:26:35,160 --> 00:26:37,160 Speaker 1: more remotely, and that made a lot of sense because 569 00:26:37,200 --> 00:26:40,480 Speaker 1: that was related to demand. But our incomes have not 570 00:26:40,760 --> 00:26:44,480 Speaker 1: increased in line with property growth, So how on earth 571 00:26:44,760 --> 00:26:48,000 Speaker 1: is the average Australian going to actually afford a property. 572 00:26:48,400 --> 00:26:50,440 Speaker 1: I think there's going to be a cap point. And 573 00:26:50,520 --> 00:26:52,200 Speaker 1: when I say that, I don't mean, oh my gosh, 574 00:26:52,280 --> 00:26:53,760 Speaker 1: property is going to cap out, it's going to be 575 00:26:53,960 --> 00:26:54,840 Speaker 1: so reasonable. 576 00:26:55,280 --> 00:26:55,320 Speaker 5: No. 577 00:26:55,560 --> 00:26:57,280 Speaker 1: I think what's going to happen is there will be 578 00:26:57,680 --> 00:27:00,320 Speaker 1: a point at which property won't increase that much. So 579 00:27:00,359 --> 00:27:02,240 Speaker 1: if you buy a seven hundred thousand dollars house in 580 00:27:02,320 --> 00:27:04,760 Speaker 1: ten years, it's probably going to be worth seven hundred grand. Again, 581 00:27:04,960 --> 00:27:06,879 Speaker 1: it doesn't mean it's going to be more affordable, but 582 00:27:07,119 --> 00:27:09,840 Speaker 1: will mean that there's not an increase in demand and 583 00:27:10,040 --> 00:27:13,040 Speaker 1: therefore an increase in what your purchaser is willing to 584 00:27:13,119 --> 00:27:15,520 Speaker 1: pay for that because they don't have the income to 585 00:27:15,600 --> 00:27:16,119 Speaker 1: support that. 586 00:27:16,440 --> 00:27:18,720 Speaker 3: Yes, that mean it's growing at the pace that it's growing. 587 00:27:18,920 --> 00:27:21,200 Speaker 3: At some point, surely it's just going to get to 588 00:27:21,240 --> 00:27:23,680 Speaker 3: a place where it's like no one can afford it. 589 00:27:24,080 --> 00:27:26,880 Speaker 3: And I mean it's obviously approaching that point now where 590 00:27:26,920 --> 00:27:29,200 Speaker 3: first home buyers like myself are finding it harder and 591 00:27:29,240 --> 00:27:32,000 Speaker 3: harder and harder and stract further and further to get there. 592 00:27:32,520 --> 00:27:34,359 Speaker 3: If it kept growing at the rate that it's growing out. 593 00:27:34,480 --> 00:27:36,880 Speaker 3: Literally just no one would buy houses because they literally 594 00:27:36,920 --> 00:27:38,080 Speaker 3: couldn't afford that exactly. 595 00:27:38,240 --> 00:27:40,640 Speaker 1: And I mean there's so many dimensions that come into 596 00:27:40,680 --> 00:27:42,560 Speaker 1: play here. People will be like, oh, well, interest rates 597 00:27:42,640 --> 00:27:44,280 Speaker 1: have never been lower in this and that and the other. 598 00:27:44,600 --> 00:27:47,399 Speaker 1: Let's take a step back. When my dad bought his 599 00:27:47,640 --> 00:27:50,639 Speaker 1: first property, real cool guy bought it at like twenty 600 00:27:50,680 --> 00:27:53,520 Speaker 1: one water bawler my dream, it was three and a 601 00:27:53,560 --> 00:27:58,360 Speaker 1: half times his annual salary. Today, for the average Australian 602 00:27:58,720 --> 00:28:02,240 Speaker 1: to purchase a prop it's a minimum of thirteen times 603 00:28:02,280 --> 00:28:06,360 Speaker 1: their annual salary. Yeah, tell me how property prices are 604 00:28:06,440 --> 00:28:09,800 Speaker 1: staying in line with rage growth? It's not so How 605 00:28:09,960 --> 00:28:13,040 Speaker 1: is that sustainable? We are now bending over backwards to 606 00:28:13,080 --> 00:28:16,920 Speaker 1: get into properties that we arguably can't afford anymore. For 607 00:28:17,160 --> 00:28:20,880 Speaker 1: what for the you know, ability to say, oh my gosh, Yess, 608 00:28:20,960 --> 00:28:23,119 Speaker 1: I own a house and like, please guys, I'm not 609 00:28:23,160 --> 00:28:25,280 Speaker 1: throwing Jess under a bus. We've done some pretty significant 610 00:28:25,320 --> 00:28:27,920 Speaker 1: financial planning for that woman, like we know that's the 611 00:28:28,000 --> 00:28:31,560 Speaker 1: right decision for her. But looking at a lot of people, 612 00:28:31,680 --> 00:28:35,119 Speaker 1: and it's a very hard reality to swallow because it 613 00:28:35,320 --> 00:28:39,120 Speaker 1: is really sad. For a lot of people in our community, 614 00:28:39,200 --> 00:28:42,320 Speaker 1: buying a property is not the best decision for them financially, 615 00:28:42,680 --> 00:28:45,719 Speaker 1: because it's actually going to put them further behind because 616 00:28:46,000 --> 00:28:48,360 Speaker 1: what they would pay in mortgage or payments impacts their 617 00:28:48,440 --> 00:28:51,880 Speaker 1: lifestyle so significantly, and it impacts their ability to generate 618 00:28:52,000 --> 00:28:55,280 Speaker 1: wealth so significantly that even if they got to retirement 619 00:28:55,360 --> 00:28:57,600 Speaker 1: and they paid their entire home off in that thirty 620 00:28:57,680 --> 00:28:59,920 Speaker 1: year mortgage period, they have nothing else to show for 621 00:29:00,120 --> 00:29:02,640 Speaker 1: their wealth. They might own that apartment, or they might 622 00:29:02,720 --> 00:29:05,000 Speaker 1: own that home, But what do you have in SUPER 623 00:29:05,760 --> 00:29:08,080 Speaker 1: that can support you in retirement? Do you have any 624 00:29:08,120 --> 00:29:10,880 Speaker 1: other assets, do you have savings? Do you have any 625 00:29:11,000 --> 00:29:14,600 Speaker 1: type of investment outside of super? If you are stretching 626 00:29:14,680 --> 00:29:17,880 Speaker 1: yourself so thin when it comes to mortgage or payments, 627 00:29:18,240 --> 00:29:21,000 Speaker 1: you're probably going to find yourself in that position. And 628 00:29:21,120 --> 00:29:24,880 Speaker 1: that's why I'm so pro education and so pro talking 629 00:29:24,920 --> 00:29:28,880 Speaker 1: about other investment types, because you know, we could invest 630 00:29:28,960 --> 00:29:32,760 Speaker 1: in shares thirty forty years ago, but the world has 631 00:29:32,920 --> 00:29:36,280 Speaker 1: completely changed since then, and we need to look into 632 00:29:36,360 --> 00:29:39,480 Speaker 1: other avenues of wealth generation and wealth creation so that 633 00:29:39,600 --> 00:29:41,720 Speaker 1: we end up in the position we hope we end 634 00:29:41,800 --> 00:29:43,520 Speaker 1: up in. Because it's not as easy as it used 635 00:29:43,520 --> 00:29:44,120 Speaker 1: to be, and. 636 00:29:44,160 --> 00:29:46,880 Speaker 3: There's no guarantee either that the education that needs to 637 00:29:46,920 --> 00:29:50,120 Speaker 3: be there will be because a lot of people are saying, oh, well, 638 00:29:50,200 --> 00:29:52,360 Speaker 3: you know we pulled money out during COVID. You could 639 00:29:52,400 --> 00:29:54,880 Speaker 3: pull money out for super then yep. And I mean 640 00:29:54,920 --> 00:29:57,400 Speaker 3: I would argue that it's a very different place when 641 00:29:57,600 --> 00:30:00,200 Speaker 3: you know, pulling money out to survive. That's it's a 642 00:30:00,320 --> 00:30:04,400 Speaker 3: very different circumstance versus purchasing a property, which arguably is 643 00:30:04,480 --> 00:30:07,120 Speaker 3: a one. But we actually spoke about this at the 644 00:30:07,240 --> 00:30:09,720 Speaker 3: time because we felt there was an anywhere near the 645 00:30:09,800 --> 00:30:12,400 Speaker 3: level of education or awareness generated that needed to be. 646 00:30:12,600 --> 00:30:15,760 Speaker 3: There was none people recognizing the impact of pulling out 647 00:30:15,800 --> 00:30:18,680 Speaker 3: money out if you needed it one hundred percent, if 648 00:30:18,720 --> 00:30:20,240 Speaker 3: that was the difference between you putting food on the 649 00:30:20,280 --> 00:30:23,120 Speaker 3: table or losing your house or being homeless or whatever, 650 00:30:23,960 --> 00:30:26,560 Speaker 3: of course that was a good decision, But there was 651 00:30:26,680 --> 00:30:29,440 Speaker 3: no education about the long term impacts of that. And 652 00:30:29,600 --> 00:30:32,360 Speaker 3: we spoke about it, and v You personally campaigned about 653 00:30:32,400 --> 00:30:34,040 Speaker 3: it really strongly to make sure that people knew. 654 00:30:34,240 --> 00:30:37,400 Speaker 1: It angered me because too many people thought, wow, or 655 00:30:37,520 --> 00:30:39,360 Speaker 1: just take that out, then if I can access it, 656 00:30:39,400 --> 00:30:41,600 Speaker 1: it's my money. I know someone who used it to 657 00:30:41,640 --> 00:30:44,320 Speaker 1: buy a car, and I'm sure even start any person 658 00:30:44,400 --> 00:30:47,400 Speaker 1: that why I was having a rant obviously on Instagram 659 00:30:47,480 --> 00:30:49,360 Speaker 1: over the weekend, but I ended up in a very 660 00:30:49,400 --> 00:30:51,640 Speaker 1: good DM conversation with one of my friends who's a 661 00:30:51,720 --> 00:30:54,320 Speaker 1: sex worker, and she says she knows a guy who 662 00:30:54,400 --> 00:30:57,120 Speaker 1: took out of Super twice twenty grand and blew it 663 00:30:57,240 --> 00:31:00,520 Speaker 1: all on sex workers. Wow. Like, if if you can 664 00:31:00,640 --> 00:31:03,800 Speaker 1: do that, yeah, anyone can lose money. And we're not 665 00:31:04,000 --> 00:31:06,560 Speaker 1: talking about what he spent the money on, but the 666 00:31:06,640 --> 00:31:09,320 Speaker 1: fact he could access it to then have no accountability 667 00:31:09,360 --> 00:31:11,920 Speaker 1: of where that money went like that, I promise you 668 00:31:12,120 --> 00:31:14,760 Speaker 1: what he spent his money on wasn't a need that 669 00:31:14,960 --> 00:31:17,520 Speaker 1: was an absolute want, and it didn't put him in 670 00:31:17,560 --> 00:31:19,920 Speaker 1: a better financial position, and it didn't keep food on 671 00:31:20,000 --> 00:31:22,080 Speaker 1: his table and a roof over his head, which is 672 00:31:22,200 --> 00:31:23,800 Speaker 1: what claiming that should have been for. 673 00:31:24,160 --> 00:31:26,360 Speaker 3: Yeah, and I mean obviously, because this is just a 674 00:31:26,480 --> 00:31:30,680 Speaker 3: theoretical campaign run proposal, there's no real information on. 675 00:31:31,040 --> 00:31:33,080 Speaker 1: You know what, the situation we're making all of that. 676 00:31:33,240 --> 00:31:37,160 Speaker 1: But I just Jess George, I find it so irresponsible 677 00:31:37,280 --> 00:31:39,880 Speaker 1: of them to say things like this, which they know 678 00:31:40,080 --> 00:31:43,640 Speaker 1: are going to be relatively inflammatory. And when I say inflammatory, 679 00:31:43,680 --> 00:31:45,840 Speaker 1: I don't mean they're trying to start an Instagram fight, 680 00:31:45,960 --> 00:31:48,720 Speaker 1: which is what they got from me. But what I 681 00:31:48,840 --> 00:31:50,320 Speaker 1: mean is people are going to pick it up and 682 00:31:50,440 --> 00:31:53,400 Speaker 1: be like, Wow, that's so helpful. Yeah, I'll vote for 683 00:31:53,520 --> 00:31:56,640 Speaker 1: him like that. It is a shameless grab of votes. 684 00:31:57,040 --> 00:31:59,560 Speaker 1: And it makes me feel really icky because I'm like, 685 00:31:59,640 --> 00:32:02,600 Speaker 1: we're not talking about the education around here, Like imagine 686 00:32:02,640 --> 00:32:06,600 Speaker 1: if instead they were talking about a school financial literacy program. 687 00:32:07,160 --> 00:32:10,880 Speaker 1: Or let's be a little bit brutal, let's talk about 688 00:32:11,000 --> 00:32:14,440 Speaker 1: stamp judy, why are we still spending that? If you 689 00:32:14,640 --> 00:32:16,960 Speaker 1: guys flipped that and said, do you know what first 690 00:32:17,040 --> 00:32:19,200 Speaker 1: home buyers don't have to pay stamp duty? Do you 691 00:32:19,280 --> 00:32:21,320 Speaker 1: know how many more people would be able to afford houses? 692 00:32:21,480 --> 00:32:23,600 Speaker 1: Do you know how many more people wouldn't be compromised 693 00:32:23,760 --> 00:32:28,480 Speaker 1: in retirement? Millions? So I just think that there's a 694 00:32:28,560 --> 00:32:30,560 Speaker 1: lot they could do, a lot they're choosing not to do, 695 00:32:30,760 --> 00:32:33,840 Speaker 1: and they're trying to market themselves so well, so they 696 00:32:33,920 --> 00:32:36,600 Speaker 1: look like little angels. I could go on and on. 697 00:32:36,760 --> 00:32:37,680 Speaker 1: I got a lot to say. 698 00:32:37,880 --> 00:32:39,800 Speaker 5: Oh, there's so much to say, and Souper is just 699 00:32:39,920 --> 00:32:43,160 Speaker 5: such an interesting conversation to have. And I think before 700 00:32:43,200 --> 00:32:45,160 Speaker 5: I worked here, I didn't know anything about it. And 701 00:32:45,240 --> 00:32:46,640 Speaker 5: now to all of my friends, I'm like, make sure 702 00:32:46,680 --> 00:32:49,080 Speaker 5: you were paying yourself super if you're self employed. 703 00:32:50,080 --> 00:32:53,920 Speaker 3: Exactly every time one of my friends gets they're paying 704 00:32:53,960 --> 00:32:55,520 Speaker 3: into your super while you're not working. 705 00:32:56,080 --> 00:33:01,920 Speaker 1: You guys must be nightmares like I do you want 706 00:33:01,960 --> 00:33:03,800 Speaker 1: to come to my house and talk about super Laba? 707 00:33:04,560 --> 00:33:10,080 Speaker 1: I was holding the one you bring the goodbbe Hi bear. 708 00:33:10,480 --> 00:33:12,640 Speaker 5: Have you got a money dilemma you just can't solve? 709 00:33:12,960 --> 00:33:14,920 Speaker 5: The Sheese on the Money Team is here to help. 710 00:33:15,320 --> 00:33:17,960 Speaker 5: Every week, we tackle your dilemmas, both big and small, 711 00:33:18,080 --> 00:33:21,400 Speaker 5: to answer your most burning money, career and life questions. 712 00:33:21,840 --> 00:33:24,240 Speaker 5: To get involved, simply head to our website and leave 713 00:33:24,280 --> 00:33:26,240 Speaker 5: us a quick voice recording and you may just find 714 00:33:26,240 --> 00:33:28,680 Speaker 5: yourself on the show. Now, let's take a listen to 715 00:33:28,760 --> 00:33:29,840 Speaker 5: today's money dilemma. 716 00:33:31,360 --> 00:33:34,480 Speaker 4: Hi guys, just wondering what your thoughts were on the 717 00:33:34,560 --> 00:33:39,360 Speaker 4: salary sacrificing. To sum up, I've been salary sacrificing since 718 00:33:39,400 --> 00:33:41,880 Speaker 4: I started working three years ago. It was pretty much 719 00:33:42,240 --> 00:33:46,440 Speaker 4: sold to us at orientation, and it seems like it's good. 720 00:33:46,880 --> 00:33:49,320 Speaker 4: Like I salary sacrifice three hundred and forty dollars a 721 00:33:49,400 --> 00:33:52,200 Speaker 4: fortnite to my rent, which covers my rent for the 722 00:33:52,240 --> 00:33:54,840 Speaker 4: fortnite I live in a sharehouse, and one hundred and 723 00:33:54,840 --> 00:33:57,800 Speaker 4: eight dollars to a meal entertainment car, which I find 724 00:33:57,880 --> 00:34:00,440 Speaker 4: worthwhile because it's money that never comes into my account 725 00:34:00,480 --> 00:34:03,160 Speaker 4: that I can use for like a night out or 726 00:34:03,800 --> 00:34:08,000 Speaker 4: a brunch. But in saying that, it's like so much 727 00:34:08,080 --> 00:34:10,240 Speaker 4: conflicting information, and I just don't know if it's actually 728 00:34:10,239 --> 00:34:12,040 Speaker 4: the right thing to do financially. 729 00:34:11,920 --> 00:34:15,640 Speaker 1: All right, Salary sacrificing has been a relatively spicy topic 730 00:34:15,719 --> 00:34:17,600 Speaker 1: in the She's on the Money community, and I'm glad 731 00:34:17,760 --> 00:34:21,640 Speaker 1: someone's asked the question because it's good and bad, right, Like, 732 00:34:21,760 --> 00:34:24,600 Speaker 1: I obviously don't know your personal circumstances, so I can't 733 00:34:24,640 --> 00:34:26,920 Speaker 1: be like, oh my gosh, you should be salary sacrificing X, 734 00:34:27,000 --> 00:34:29,440 Speaker 1: Y and Z, because that makes the most sense. But 735 00:34:29,560 --> 00:34:32,319 Speaker 1: I found the point in your question really interesting because 736 00:34:32,360 --> 00:34:34,480 Speaker 1: you said it was basically sold to us at orientation, 737 00:34:34,520 --> 00:34:37,319 Speaker 1: because that's how it works, right, and it sounds so good. Right, 738 00:34:37,400 --> 00:34:41,239 Speaker 1: you can salary sacrifice stuff and it's pre tax money. 739 00:34:41,640 --> 00:34:44,120 Speaker 1: So for those of you who don't know what salary 740 00:34:44,200 --> 00:34:47,040 Speaker 1: sacrificing is, or it can be called like salary baggaging. 741 00:34:47,400 --> 00:34:51,000 Speaker 1: It's basically to enable an employee, usually someone who works 742 00:34:51,080 --> 00:34:55,080 Speaker 1: for like the government or in healthcare, to receive a 743 00:34:55,160 --> 00:34:58,920 Speaker 1: combination of income and benefits in a super tax effective manner. 744 00:34:59,200 --> 00:35:02,400 Speaker 1: The reason they do this is because they can't usually 745 00:35:02,520 --> 00:35:05,799 Speaker 1: afford to pay even more salary to people, but they 746 00:35:05,880 --> 00:35:08,960 Speaker 1: can use their tax structure to make sure you can 747 00:35:09,040 --> 00:35:10,880 Speaker 1: access some pre tax benefits. 748 00:35:10,960 --> 00:35:11,080 Speaker 4: Right. 749 00:35:11,440 --> 00:35:14,200 Speaker 1: So it's usually in areas, as I said, like government 750 00:35:14,239 --> 00:35:16,600 Speaker 1: and healthcare, where they don't have the ability to be like, oh, Jesse, 751 00:35:16,600 --> 00:35:19,359 Speaker 1: you've been performing so well, like here's a massive pay rise, 752 00:35:19,760 --> 00:35:22,640 Speaker 1: because it's usually government mandated or there's some reason why. 753 00:35:23,120 --> 00:35:25,000 Speaker 1: There are also a lot of other employers who are like, 754 00:35:25,080 --> 00:35:27,279 Speaker 1: this is a great benefit to our employees, like we're 755 00:35:27,320 --> 00:35:29,279 Speaker 1: just going to add it on. But the background is 756 00:35:29,320 --> 00:35:32,160 Speaker 1: that's why it basically exists. But essentially what happens is 757 00:35:32,239 --> 00:35:34,520 Speaker 1: you take some of your remuneration in the form of 758 00:35:34,640 --> 00:35:38,720 Speaker 1: concessionally taxed benefits instead of taking it as fully assessed income. 759 00:35:39,200 --> 00:35:42,759 Speaker 1: This process is called salary sacrificing, which our listener she 760 00:35:42,920 --> 00:35:46,040 Speaker 1: mentioned before, she's been sacrificing three hundred and forty dollars 761 00:35:46,200 --> 00:35:48,960 Speaker 1: in rent every single fortnight and one hundred and eight 762 00:35:49,000 --> 00:35:52,240 Speaker 1: dollars in meals and entertainment. So that's about eleven thousand 763 00:35:52,320 --> 00:35:55,400 Speaker 1: dollars a year, or about eighty eight hundred dollars just 764 00:35:55,480 --> 00:35:57,600 Speaker 1: for rent, which you go, all right, well, rent is 765 00:35:57,680 --> 00:36:00,920 Speaker 1: a cost that you're going to have to pay regardless. 766 00:36:01,360 --> 00:36:03,200 Speaker 1: Kind of cool that she can, you know, not pay 767 00:36:03,320 --> 00:36:06,000 Speaker 1: tax on that amount, because think about it, marginal tax 768 00:36:06,080 --> 00:36:08,359 Speaker 1: rates are pretty high. That means she's saving at least 769 00:36:08,400 --> 00:36:11,600 Speaker 1: twenty five percent at a minimum on her rent. A 770 00:36:11,680 --> 00:36:14,480 Speaker 1: bit of a money win. But essentially what you do 771 00:36:14,719 --> 00:36:17,759 Speaker 1: is you salary sacrifice money and it gets paid back 772 00:36:17,800 --> 00:36:19,920 Speaker 1: to you in a different way. So it could be 773 00:36:20,040 --> 00:36:22,280 Speaker 1: paid back to you in the form of an entertainment 774 00:36:22,360 --> 00:36:25,040 Speaker 1: and a meals card, or it might be paid directly 775 00:36:25,160 --> 00:36:28,320 Speaker 1: to your rent, so you don't personally see that money usually, 776 00:36:28,680 --> 00:36:30,360 Speaker 1: which is kind of cool because it can be like 777 00:36:30,400 --> 00:36:32,439 Speaker 1: a little bit of making sure that your rent's paid 778 00:36:32,520 --> 00:36:35,120 Speaker 1: in a forced saving sort of way. There are a 779 00:36:35,160 --> 00:36:39,080 Speaker 1: fair few things you can salary sacrifice, so rent obviously, 780 00:36:39,480 --> 00:36:43,040 Speaker 1: meals and entertainment obviously because our listener mentioned it, but 781 00:36:43,160 --> 00:36:46,560 Speaker 1: you can also salary sacrifice car costs. You can salary 782 00:36:46,640 --> 00:36:50,080 Speaker 1: sacrifice car parking, which is kind of cool because Jess 783 00:36:50,120 --> 00:36:53,279 Speaker 1: and I look about how much costs to park at 784 00:36:53,280 --> 00:36:57,800 Speaker 1: a time. You can obviously salary sacrifice superannuation, which is 785 00:36:57,880 --> 00:37:01,239 Speaker 1: my favorite kind. But there are number of advantages which 786 00:37:01,280 --> 00:37:03,480 Speaker 1: you guys probably have already alluded to. But I'll give 787 00:37:03,520 --> 00:37:06,080 Speaker 1: you a very good example. So say our listener, she 788 00:37:06,120 --> 00:37:08,239 Speaker 1: didn't tell us how much she earned. I always love 789 00:37:08,360 --> 00:37:10,759 Speaker 1: knowing what people earn if they call up. So you 790 00:37:10,920 --> 00:37:12,840 Speaker 1: just call up, be like, Vie, I earn this amount, 791 00:37:12,840 --> 00:37:15,279 Speaker 1: and I'll be like, heck can Yeah. But let's just 792 00:37:15,360 --> 00:37:18,120 Speaker 1: say someone earns one hundred grand a year and they 793 00:37:18,160 --> 00:37:19,960 Speaker 1: want to buy a new car for work, and that 794 00:37:20,160 --> 00:37:23,640 Speaker 1: car's worth twenty two thousand dollars. Had they entered into 795 00:37:23,719 --> 00:37:27,479 Speaker 1: an employee salary sacrifice scheme, the twenty two thousand dollars 796 00:37:27,520 --> 00:37:29,840 Speaker 1: would have been taken out of their pre tax income. 797 00:37:30,239 --> 00:37:32,080 Speaker 1: So instead of being paid and then buying a car 798 00:37:32,239 --> 00:37:34,120 Speaker 1: with the money that you've saved, it comes out of 799 00:37:34,200 --> 00:37:38,080 Speaker 1: that before, which means actually decreases your marginal tax rate 800 00:37:38,200 --> 00:37:41,640 Speaker 1: because you go into potentially not for everybody, because you 801 00:37:41,760 --> 00:37:44,719 Speaker 1: might stay in the same salary bracket, but they would 802 00:37:44,760 --> 00:37:46,840 Speaker 1: have ended up in a lower tax bracket because it 803 00:37:47,120 --> 00:37:51,160 Speaker 1: decreases their taxable income to seventy eight thousand dollars a year. 804 00:37:51,560 --> 00:37:55,120 Speaker 1: So there's a number of benefits there obviously, But what 805 00:37:55,320 --> 00:37:58,440 Speaker 1: that means is you can make the most of your 806 00:37:58,600 --> 00:38:02,200 Speaker 1: pre tax dollars. But the trippy thing here is that 807 00:38:02,480 --> 00:38:04,200 Speaker 1: people get really caught up in it. They'll go, oh, 808 00:38:04,200 --> 00:38:06,680 Speaker 1: I should buy a new car, Like my friend, did 809 00:38:06,719 --> 00:38:08,320 Speaker 1: you need the new car or was it just a 810 00:38:08,360 --> 00:38:10,920 Speaker 1: good idea? Like just because you're saving money, and this 811 00:38:11,080 --> 00:38:13,800 Speaker 1: goes for anything, right, just because you're saving money doesn't 812 00:38:13,880 --> 00:38:16,560 Speaker 1: mean that you need to spend it. Like you're spending 813 00:38:16,600 --> 00:38:19,520 Speaker 1: money to save money, Like that's taking you backwards if 814 00:38:19,560 --> 00:38:23,640 Speaker 1: it's actually something you didn't need or didn't actually plan 815 00:38:23,800 --> 00:38:26,600 Speaker 1: on purchasing. And the same happens. And I do see 816 00:38:26,640 --> 00:38:29,840 Speaker 1: this happen a lot. Is the food and beverage cards 817 00:38:29,920 --> 00:38:32,360 Speaker 1: or the food and entertainment card that was mentioned that 818 00:38:32,480 --> 00:38:35,680 Speaker 1: seems to get out of hand. Now I have absolutely 819 00:38:35,760 --> 00:38:38,360 Speaker 1: no judgment how much you spend on food and entertainment, 820 00:38:38,719 --> 00:38:40,879 Speaker 1: but a lot of people will be like, oh, I've 821 00:38:40,920 --> 00:38:44,719 Speaker 1: got this like food and entertainment card through work, so 822 00:38:44,880 --> 00:38:46,960 Speaker 1: let's just go out for dinner. Yeah, Okay, you need 823 00:38:47,000 --> 00:38:48,640 Speaker 1: to use it, IP, yeah, I need to use it up. 824 00:38:48,760 --> 00:38:52,000 Speaker 1: It's like not this mentality of well, actually that's my money, Like, 825 00:38:52,200 --> 00:38:54,239 Speaker 1: it's a very different mentality. And I think we have 826 00:38:54,360 --> 00:38:57,640 Speaker 1: to be really careful of that because our listener just said, 827 00:38:57,719 --> 00:39:00,400 Speaker 1: I salary sacrifice one hundred and eight dollars per fight, 828 00:39:00,600 --> 00:39:04,520 Speaker 1: which doesn't seem that much, but over a year, that 829 00:39:04,600 --> 00:39:07,000 Speaker 1: adds up to be a couple of grand Like, that's 830 00:39:07,120 --> 00:39:10,400 Speaker 1: not a small expense. And if she's going, yeah, just 831 00:39:10,480 --> 00:39:12,719 Speaker 1: doing it on groceries and that's actually what my budget is, 832 00:39:12,760 --> 00:39:16,040 Speaker 1: I'll be like great. But if you're just going out 833 00:39:16,280 --> 00:39:17,880 Speaker 1: but you're trying to stay for a home or you're 834 00:39:17,920 --> 00:39:20,799 Speaker 1: trying to be more budget conscious, like, it's still your 835 00:39:20,840 --> 00:39:23,680 Speaker 1: money regardless of whether you're you know, making a good 836 00:39:23,800 --> 00:39:24,680 Speaker 1: tax saving. 837 00:39:24,480 --> 00:39:24,960 Speaker 4: On it or not. 838 00:39:25,400 --> 00:39:28,799 Speaker 1: So I think the main thing with salary sacrificing is yeah, great, 839 00:39:29,040 --> 00:39:30,640 Speaker 1: it makes a lot of sense. And if you need 840 00:39:30,680 --> 00:39:32,400 Speaker 1: to buy a brand new family car because you're having 841 00:39:32,400 --> 00:39:34,279 Speaker 1: a baby and there's all these other things, like, it 842 00:39:34,440 --> 00:39:37,279 Speaker 1: might be a strategy that you make use of. But 843 00:39:37,640 --> 00:39:40,160 Speaker 1: I do think that it can be a little bit 844 00:39:40,200 --> 00:39:42,640 Speaker 1: of a slippery slope for people because they justify their 845 00:39:42,680 --> 00:39:45,399 Speaker 1: spending because they're like, ah, but I've got this card, 846 00:39:45,480 --> 00:39:48,560 Speaker 1: and I'm it's basically free money. It's actually not. 847 00:39:49,160 --> 00:39:52,560 Speaker 5: So it's a very personal thing. Yeah, absolutely, But for 848 00:39:52,680 --> 00:39:55,320 Speaker 5: anyone who is interested and wants to know more. We 849 00:39:55,440 --> 00:39:58,319 Speaker 5: did do an episode all about salary sacrifice. He did 850 00:39:58,520 --> 00:40:01,960 Speaker 5: That was April last year. Thank got your so scroll 851 00:40:02,040 --> 00:40:04,239 Speaker 5: buck in your feed and we go really deep into 852 00:40:04,320 --> 00:40:04,600 Speaker 5: that one. 853 00:40:04,680 --> 00:40:06,960 Speaker 3: It's called Nice Salary Package. I'm pretty sure I came 854 00:40:07,040 --> 00:40:07,480 Speaker 3: up with that name. 855 00:40:11,239 --> 00:40:13,839 Speaker 1: That's an episode a year ago. You've just been sitting 856 00:40:13,880 --> 00:40:15,879 Speaker 1: on that as like the best episode you've ever NATed. 857 00:40:15,880 --> 00:40:17,319 Speaker 3: I think it's one of the best names I've ever done. 858 00:40:18,400 --> 00:40:21,640 Speaker 1: Well, we've covered a lot in today's episode, but unfortunately, guys, 859 00:40:21,719 --> 00:40:23,840 Speaker 1: I think that is all we have time for today. 860 00:40:24,239 --> 00:40:27,279 Speaker 1: But just before we head off, Miss Georgia King, could 861 00:40:27,320 --> 00:40:29,840 Speaker 1: you please wrap the boring but very important stuff. 862 00:40:30,000 --> 00:40:32,959 Speaker 5: It would be an honor. Alrighty, guys. The advice shed 863 00:40:33,040 --> 00:40:35,279 Speaker 5: on She's on the Money is general in nature and 864 00:40:35,360 --> 00:40:38,959 Speaker 5: does not consider your individual circumstances. She's on the Money 865 00:40:39,080 --> 00:40:42,200 Speaker 5: exists purely for educational purposes and should not be relied 866 00:40:42,239 --> 00:40:44,960 Speaker 5: upon to make an investment or a financial decision and 867 00:40:45,120 --> 00:40:47,759 Speaker 5: we promise Victoria divine and she's on the money. Are 868 00:40:47,840 --> 00:40:53,200 Speaker 5: authorized representatives in Focus Securities Australia Propriety Limited ABN four 869 00:40:53,320 --> 00:40:56,279 Speaker 5: seven zero ninety seven seven nine seven zero four nine 870 00:40:56,560 --> 00:40:59,960 Speaker 5: AFOSAL two three six five two three See you next week. 871 00:41:00,040 --> 00:41:01,360 Speaker 2: You got I fear 872 00:41:12,320 --> 00:41:12,360 Speaker 5: H