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Health Insurance 101 · She's On The Money

0:00
Speaker 1: She's on the Money.
0:02
Speaker 2: She's on the Money. Hello, and welcome to She's on
0:14
Speaker 2: the Money, the podcast to millennials to on financial freedom.
0:17
Speaker 2: My name is Georgia King. I'm a copywriter and journalism student,
0:21
Speaker 2: and every Wednesday I sit down to chat cash with
0:23
Speaker 2: millennial money expert Victoria Divine. Hello, Georgia King, my friend,
0:28
Speaker 2: Hi Victoria Divine. Now today on the show, we are
0:31
Speaker 2: going to be diving into health insurance. Do we really
0:34
Speaker 2: need it or is it a little overrated? We'll also
0:37
Speaker 2: be getting into the bottom of a money question from
0:40
Speaker 2: someone deciding if they should choose income protection or health insurance,
0:44
Speaker 2: and we have a money diarist who suffers from serious
0:47
Speaker 2: comparison idis. Before that though, and before we head into
0:51
Speaker 2: our money wins and confessions from the week, Victoria, there's
0:55
Speaker 2: been a little bit going on for you this week,
0:57
Speaker 2: my friend. Oh yes, there has been really exactly, namely
1:02
Speaker 2: that you were announced as being in Financial Standards top
1:04
Speaker 2: fifty financial Advisors of the year across the country.
1:09
Speaker 1: That's pretty cool, right, Like that sounds cool, that sounds important.
1:13
Speaker 1: I like it. I'll take it. Thank you Financial Standard,
1:16
Speaker 1: my friends.
1:17
Speaker 2: Very exciting. But the other thing, which everyone will also well,
1:21
Speaker 2: we saw it in the Facebook group. People are going
1:23
Speaker 2: off about this. You've announced your new venture, the Property Playbook,
1:28
Speaker 2: tell us everything.
1:29
Speaker 1: Oh my gosh, Yes, I'm so excited about this and
1:32
Speaker 1: I'm the worst, Like my team will know this, Georgia.
1:35
Speaker 1: You've known about this for a very long time. It
1:37
Speaker 1: is absolutely no secret internally and it has It has
1:41
Speaker 1: taken everything in my will to not share this publicly,
1:44
Speaker 1: just because I'm so excited about working on it. But
1:46
Speaker 1: the Property Playbook is essentially going to be the end
1:49
Speaker 1: to end journey of finance when it comes to property,
1:53
Speaker 1: and I'm so excited. I've partnered with Amy Lenardi, who
1:57
Speaker 1: is a property whiz. She has had more than eight
2:00
Speaker 1: years experience in the real estate industry. She's a buyer's advocate,
2:05
Speaker 1: and essentially her job is to help people buy houses
2:08
Speaker 1: like you have her. And this isn't a plug for Amy,
2:11
Speaker 1: but like she's a genius. So her job is literally
2:14
Speaker 1: buying houses for other people. And through that eight years
2:18
Speaker 1: that she's worked in there, she has learned so much
2:20
Speaker 1: and I'm so excited to kind of welcome her to
2:22
Speaker 1: our team and welcome her to the She's on the
2:24
Speaker 1: Money squad in the Property Playbook. We launched our Facebook
2:28
Speaker 1: group over the weekend, and Georgia, oh my gosh, I
2:31
Speaker 1: thought maybe we'd get a couple of hundred people, because
2:34
Speaker 1: like she's on the Money community. Guys, it's nearly at
2:36
Speaker 1: one hundred thousand people, so I was like, oh, you know,
2:39
Speaker 1: some will transfer her over same day, six thousand of
2:42
Speaker 1: you have joined. I could not be more grateful for
2:45
Speaker 1: the support that you guys have for us, And like
2:48
Speaker 1: here I am being like, oh, the Property Playbook is launched.
2:51
Speaker 1: You guys are supporting us and you don't even know
2:53
Speaker 1: what we're doing with it yet. I just I cannot
2:56
Speaker 1: tell you how grateful I am that you guys are
2:58
Speaker 1: in our court and on our team. Team, like, we
3:01
Speaker 1: have so much to share with you and you know,
3:03
Speaker 1: actually help you within twenty twenty one with the Property Playbook.
3:06
Speaker 1: So keep your eyes peeled for everything that we do
3:09
Speaker 1: have to announce about that. But yes, Georgia, you are right.
3:12
Speaker 1: We have had some very exciting things happening.
3:14
Speaker 2: This massive week. Is there are there any spoilers you
3:17
Speaker 2: can give us? Be like, is it going to be
3:18
Speaker 2: a podcast? Is it going to be a course? Is
3:20
Speaker 2: it just going to be a Facebook group, like, no,
3:22
Speaker 2: not any little tibbits so many.
3:24
Speaker 1: Maybe it's some of those, maybe it's all of those.
3:27
Speaker 1: Maybe you just have to keep in the loop and
3:29
Speaker 1: sign up to the Property Playbook website and just see
3:32
Speaker 1: where we're going with this because it will have everything,
3:36
Speaker 1: I promise, everything you need when it comes to property.
3:39
Speaker 2: Fabulous love it. Keep the people guessing. Okay, well let's
3:41
Speaker 2: move on now the money wins confessions from the week.
3:45
Speaker 2: What have you got for me?
3:46
Speaker 1: Okay? So another thing that was very exciting from this week,
3:49
Speaker 1: albeit not nearly as public. I had a money win
3:53
Speaker 1: and I've already told you about this Georgia because I
3:56
Speaker 1: was genuinely excited about it. But last season there was
3:59
Speaker 1: address online I think it was from the brand steal YEP,
4:02
Speaker 1: and I adored it and it was like four hundred
4:04
Speaker 1: and fifty dollars. I was like, Nap'm not going to
4:06
Speaker 1: get it expensive, gorgeous dress. But like, if you know
4:09
Speaker 1: me personally or have me on socials, you will know
4:12
Speaker 1: I'm a very big fan of a white dress, usually
4:15
Speaker 1: a white cotton based dress. It's my go to casual outfit.
4:19
Speaker 1: So I was like, I don't need another one of those.
4:21
Speaker 1: But I found one online last one in my size
4:25
Speaker 1: from the style from last season that I really want.
4:28
Speaker 1: So if you guys were thinking, do you Victoria put
4:30
Speaker 1: twenty four hours between you and your spending. No, my friends,
4:32
Speaker 1: I put at least six months. So this dress was
4:36
Speaker 1: actually marked down to seventy seven dollars, and then I
4:38
Speaker 1: got an email from the website which had a twenty
4:41
Speaker 1: dollars discount code because I'd never ordered from that website before,
4:45
Speaker 1: So I ended up paying like fifty bucks for this
4:47
Speaker 1: dress that I know I'm going to get epic wear
4:50
Speaker 1: out of this summer, and I'm just really excited. And
4:53
Speaker 1: I just feel like that's a massive money win because
4:54
Speaker 1: it is something I wanted and to quote myself, shots guys,
4:58
Speaker 1: for those of you who read out years later, that
5:01
Speaker 1: was in line with my golden values. But Georgia King,
5:04
Speaker 1: moving on from my white dresses, have you got a
5:06
Speaker 1: money win or a confession for us?
5:08
Speaker 2: Loved that dull and I'm excited to see that dress
5:11
Speaker 2: on you, Like, not sure where you're gonna wear it
5:13
Speaker 2: this summer, maybe you know.
5:14
Speaker 1: To them it's very casual, so I think that I
5:17
Speaker 1: could wear it to like the park or even just
5:19
Speaker 1: like supermarket shop. Yeah, Like I feel like I've been
5:21
Speaker 1: this tangent, but I keep buying dresses that are for
5:24
Speaker 1: going out and I didn't have enough everyday casual wear dresses.
5:28
Speaker 1: So I'm very excited about this.
5:29
Speaker 2: Love it, love it.
5:30
Speaker 1: You're welcome to she's on the fashion.
5:32
Speaker 2: She's on the fashion. Okay, So mine is a confession
5:37
Speaker 2: and it's quick, it's fun, it's painful. On Friday, so.
5:42
Speaker 1: Drag it out.
5:43
Speaker 3: What is it?
5:44
Speaker 1: My friends?
5:45
Speaker 2: On Friday, it was a public holiday here in Melbourne, guys,
5:48
Speaker 2: twas indeed Grand Final weekend. You know all of that.
5:51
Speaker 2: Go Tigers. Anyway, I bought a coffee for myself and
5:57
Speaker 2: for my boyfriend to Lat's to Oat Lattes, and the
6:01
Speaker 2: lady was.
6:01
Speaker 1: Have you got your boyfriend on the oatmealkose, Well, he
6:04
Speaker 1: loves it, he loves it.
6:04
Speaker 2: He was a soy boy and now not.
6:06
Speaker 1: A she's on the money episode unless you mentioned.
6:08
Speaker 2: Exactly take another shot everyone. Anyway, the lady was like,
6:11
Speaker 2: that'll be thirteen fifty please love and I was like no, no, no,
6:14
Speaker 2: I didn't get a croissant as well, just the two coffees,
6:17
Speaker 2: and she was like no, no, that that is what
6:19
Speaker 2: you're paying for thirteen dollars fifty two coffees. Just have
6:24
Speaker 2: to tap and get out of there, and like they
6:26
Speaker 2: were good coffees, but good lord, I.
6:29
Speaker 1: Feel like no coffee is worth that much money.
6:31
Speaker 2: Georgia. It did sting, But like cafes are doing it tough,
6:35
Speaker 2: are they? I don't know. I guess everyone's getting cofee Georgia.
6:37
Speaker 1: King, Like, I know where you live, and I'd just
6:40
Speaker 1: like to ask which suburb you purchase those coffees.
6:43
Speaker 2: Well, I don't live there, but we did.
6:46
Speaker 1: No, you don't live there, but I know that you're
6:47
Speaker 1: it's within your five kilometer radius and it's probably now
6:50
Speaker 1: in your twenty five kilomida RadioU Yeah, So where'd you
6:52
Speaker 1: purchase those overpriced coffees too?
6:55
Speaker 2: From Kings?
6:55
Speaker 1: You guys?
6:56
Speaker 2: Yeah, of course you yeah, but it's not my usual stomping.
6:59
Speaker 1: You called me rude word last podcast. I believe you
7:02
Speaker 1: called me an entitled beewee Here we are coffees in Portsy. Anyway,
7:08
Speaker 1: Moving on friends.
7:10
Speaker 2: Facebook group, there are more down to earth kind of people.
7:13
Speaker 2: I don't know if I can say that the Facebook
7:15
Speaker 2: group be What was your favorite from this week? All right?
7:18
Speaker 1: All right, I've got one from Laura and I pulled
7:21
Speaker 1: this out because I am so excited about it. I
7:23
Speaker 1: started a side hustle during COVID and it's a nocky
7:26
Speaker 1: home delivery service and Georgia. She's called it knocking NOCKI
7:31
Speaker 1: I thought, and she said, first week we had a
7:34
Speaker 1: couple of orders, but now it's really taken off with
7:36
Speaker 1: weekly orders and now we are back at work. She's
7:39
Speaker 1: just trying to work it around her whole life. But
7:41
Speaker 1: she said last night, and this was like a couple
7:44
Speaker 1: of hours ago, so like last night being this weekend friends,
7:47
Speaker 1: she had a pop up restaurant which apparently went great
7:51
Speaker 1: and it was booked out in a ticketed event. So
7:54
Speaker 1: she said, thanks to the side hustle episode, I made
7:56
Speaker 1: my partner listen to it and it gave us the
7:58
Speaker 1: best motivation. We really need to figuring out tax and
8:01
Speaker 1: accounts in everything like that. So, oh my gosh, our
8:04
Speaker 1: community has a company in it called Knockin' Noki. I
8:07
Speaker 1: am so excited.
8:08
Speaker 2: I wonder if they're in Melbourne because noki is my
8:11
Speaker 2: second favorite food after cheese. For cheese, noki is my
8:14
Speaker 2: favorite food.
8:15
Speaker 1: Flora and your partner, congratulations, that is so exciting and
8:19
Speaker 1: the photos look it up in the group, guys look incredible,
8:22
Speaker 1: mouth watering. All right, Georgia, have you got a money
8:24
Speaker 1: win from the group that you would like to share
8:25
Speaker 1: with us? I do.
8:27
Speaker 2: Mine's from Rebecca and hers is a money win about Ikea, guys.
8:30
Speaker 2: So I know a lot of people saw this in
8:31
Speaker 2: the group. It wrapped up almost two thousand likes, I think.
8:34
Speaker 2: But she's just moved into her own apartment and decided
8:37
Speaker 2: it was time to change some of her furniture up.
8:39
Speaker 2: And she noticed while reading a news article recently that
8:42
Speaker 2: Ikia have a buyback program for their products as part
8:45
Speaker 2: of their sustainability initiative, so that gives items a second
8:49
Speaker 2: chance at life and avoiding landfill, which I didn't know
8:52
Speaker 2: was a thing. But I love it.
8:53
Speaker 1: I didn't know that this was a thing at all, actually,
8:56
Speaker 1: until you are now telling me about it. How awesome
8:58
Speaker 1: is that?
8:59
Speaker 2: It's really cool? So she had a desk and a
9:01
Speaker 2: bedside table in pretty close to perfect condition. She took
9:04
Speaker 2: them back to be assessed and received one hundred and
9:07
Speaker 2: twenty nine dollars for a store credit. Also, she bought
9:11
Speaker 2: that furniture over ten years ago and still got that much,
9:13
Speaker 2: which is ant gosh.
9:15
Speaker 1: I don't think you could have sold it for that
9:17
Speaker 1: much on Facebook market place.
9:19
Speaker 2: I honestly don't think you could. Like that seems pretty impressive.
9:22
Speaker 2: I mean, we don't know what she sold, but seems amazing.
9:25
Speaker 2: Even better, Ikea has an azuth section filled with secondhand
9:28
Speaker 2: goods returned through the buyback program, as well as other
9:31
Speaker 2: discontinued items, which are all heavily reduced. So how cool
9:35
Speaker 2: I keep not doing amazing money savvy things which I
9:38
Speaker 2: was not across but now I am. So that's a
9:40
Speaker 2: bit of a PSA for everyone.
9:41
Speaker 1: Yeah, massive Ikea PSA like I love Ikea, still one
9:45
Speaker 1: of my faves.
9:46
Speaker 2: Anyway, I to go back when we can, Oh my gosh,
9:49
Speaker 2: one day. Yeah, everybody gets down to Ikea. I remember
9:52
Speaker 2: years ago I used to head there, you know, I
9:55
Speaker 2: was at Uni and the meat balls I don't know,
9:57
Speaker 2: I don't need them anymore, but like, I just remember
9:59
Speaker 2: the meat balls being bomb.
10:01
Speaker 1: Yeah.
10:01
Speaker 2: They also have one dollar hot dogs, which I mean,
10:04
Speaker 2: gee whiz, that's the money.
10:05
Speaker 1: I don't know how that sustainable or look process meat
10:09
Speaker 1: terrifies me. Please move forward a little.
10:10
Speaker 2: Bit, okay, okay, onto the main topic. Of today's show, Guys,
10:14
Speaker 2: is health insurance all hype or is it something we
10:16
Speaker 2: truly need? Now? Before we drill down into this topic,
10:19
Speaker 2: we want to flag early that our advice today is
10:22
Speaker 2: very general in nature and is broadly catered towards millennials
10:26
Speaker 2: without existing health conditions. So, as always, please do do
10:29
Speaker 2: your own research beyond this podcast to find what is
10:32
Speaker 2: right for your circumstance. The public healthcare system in Australia
10:37
Speaker 2: is quite an enviable one on a global scale. We
10:39
Speaker 2: have access to a free in quotation marks system that
10:43
Speaker 2: covers us for most things like access to GPS and
10:46
Speaker 2: hospitals when we need them, and we can also claim
10:48
Speaker 2: cash back via many Care when visiting a private doctor's clinic.
10:52
Speaker 2: Most tax paying Australians will pay a two percent Medicare
10:55
Speaker 2: levy which helps fund that system. But in Australia, we
10:58
Speaker 2: of course also have private health insurance now. Interestingly, figures
11:03
Speaker 2: released in twenty eighteen revealed almost thirty four thousand Australians
11:07
Speaker 2: age between twenty and twenty nine can to their private
11:10
Speaker 2: health insurance, which we can kind of assume had something
11:14
Speaker 2: to do with the rising premiums and young healthy people
11:17
Speaker 2: questioning whether this is actually something like they need to
11:20
Speaker 2: be spending money.
11:21
Speaker 1: Off valid questions.
11:22
Speaker 2: So Victoria, let's get straight into it. What is private
11:25
Speaker 2: health insurance and do we need it or do we
11:27
Speaker 2: not need it? Look great place to start, I think
11:31
Speaker 2: harder question to answer.
11:33
Speaker 1: Though, let's start here. So private health insurance in Australia.
11:37
Speaker 1: I know we have now some international listeners which I'd
11:40
Speaker 1: be so excited about. So this episode might not actually
11:42
Speaker 1: be all that helpful for you, but for our Australian friends,
11:45
Speaker 1: absolutely valid. But here in Australia it allows you to
11:48
Speaker 1: be treated in a hospital as a private patient, and
11:51
Speaker 1: it can help pay for health care costs that Medicare
11:54
Speaker 1: doesn't cover, because Medicare isn't like an end to end system.
11:57
Speaker 1: So these are things like optical and dental and physio.
12:00
Speaker 1: So how much and what exactly it covers really depends
12:03
Speaker 1: on the policy that you select. So some of them
12:05
Speaker 1: have a really high level of cover and some of
12:07
Speaker 1: them just have a lower level, you know, base level.
12:10
Speaker 1: But we get into that. In June twenty nineteen, which
12:13
Speaker 1: is the most recent data recorded by APRA, eleven point
12:16
Speaker 1: two million Australians so Georgia that is forty four percent
12:20
Speaker 1: of our population had some form of private patient hospital cover,
12:24
Speaker 1: and thirteen point six million, which is fifty three percent
12:27
Speaker 1: of the population, had some form of general treatment cover. Interestingly,
12:30
Speaker 1: though the segment of the population covered by health insurance
12:33
Speaker 1: was the lowest for the age bracket, a lot of
12:35
Speaker 1: our listeners between the ages of twenty nine and twenty
12:38
Speaker 1: five are which kind of makes sense when we talk
12:41
Speaker 1: about the tax implications further along in this show. So
12:44
Speaker 1: it's interesting as well because there are two different types
12:47
Speaker 1: of cover here in Australia. We have hospital cover and
12:49
Speaker 1: extress cover. You can also have both and choose to
12:52
Speaker 1: combine cover, or you can choose to have separate policies
12:55
Speaker 1: that fit you and your wants and your needs slash
12:57
Speaker 1: take a shot your goals and value And depending on
13:01
Speaker 1: what state you live in, there is also ambulance cover,
13:04
Speaker 1: but that is often additional because this isn't free for
13:07
Speaker 1: a lot of states, like it is in Queensland and
13:10
Speaker 1: in Tasmania. So the main benefit of private health insurance
13:14
Speaker 1: is that it gives you greater cover and greater choice,
13:16
Speaker 1: and you can choose your hospital and your doctor and
13:18
Speaker 1: stuff like that, and you won't have to pay as
13:20
Speaker 1: much should you require the services of one of those
13:22
Speaker 1: extra services that are on your policy. It is different
13:26
Speaker 1: for everybody though, in terms of needing it or not
13:28
Speaker 1: needing it. It really just depends on who you are,
13:30
Speaker 1: how old you are, how healthy you are, and if
13:32
Speaker 1: you're pregnant or not, or if you're not, if you're
13:34
Speaker 1: planning on having a baby in the future. And there's
13:37
Speaker 1: actually no right or wrong here. However, I really hope
13:41
Speaker 1: that today's show is going to make it really clear
13:43
Speaker 1: for our listeners to help figure out if it's right
13:45
Speaker 1: or wrong for them. Because Georgia, we see this question
13:48
Speaker 1: pop up all the time in our Facebook group, so
13:51
Speaker 1: it was definitely time that we addressed it.
13:53
Speaker 2: Yeah, exactly, it's a pretty big topic. My next question
13:57
Speaker 2: for you here, Vee is how expensive is health insurance?
14:01
Speaker 1: Okay, so again it really depends on how you choose
14:04
Speaker 1: your cover and how you're assessed by the company in
14:07
Speaker 1: terms of risk, but it is widely regarded as quite
14:09
Speaker 1: an expensive thing. It's definitely not cheap. It's not like
14:12
Speaker 1: five bucks a month. I wish. The average in Australia
14:15
Speaker 1: does differ state by state, but for basic hospital and
14:18
Speaker 1: extras cover it averages out to be about one hundred
14:20
Speaker 1: and twenty bucks a month, which is definitely a very
14:23
Speaker 1: significant fee for most of us, especially over the course
14:26
Speaker 1: of twelve months. This does vary though, depending on you know,
14:30
Speaker 1: the type of cover that you have, if it's just extra,
14:32
Speaker 1: if it's combined, or if it's just basic hospital cover.
14:35
Speaker 1: And as you said, George, lots of young people are
14:37
Speaker 1: turning away from having private health insurance because essentially it's
14:41
Speaker 1: really expensive and our incomes aren't increasing at the same
14:43
Speaker 1: rate that the insurance premiums are. Let's be honest.
14:46
Speaker 2: Off the back of that fee, I've read that insurance
14:48
Speaker 2: premiums have risen thirty percent over the last decade, which
14:52
Speaker 2: is crazy given the quality of the cover hasn't necessarily
14:56
Speaker 2: enhanced in any way, Like it's still what it was
14:58
Speaker 2: ten years ago.
14:59
Speaker 1: And that's crazy because our incomes haven't increased at that
15:02
Speaker 1: same rate, like I understand when insurance premiums increase. So essentially,
15:07
Speaker 1: insurance premiums are going to increase because the level of
15:10
Speaker 1: risk needs to be you know, controlled for, and it
15:13
Speaker 1: means that you know, they just need more money to
15:15
Speaker 1: cover the costs and the treatments that are happening, So
15:17
Speaker 1: I kind of get that, But does that then raise
15:20
Speaker 1: another question about whether it actually is something that becomes
15:23
Speaker 1: an essential or like a super luxury to have, whereas
15:27
Speaker 1: you know, ten years ago it wasn't as luxurious as
15:30
Speaker 1: it is today.
15:31
Speaker 2: Yeah, exactly right. So moving on, if we were to
15:35
Speaker 2: opt for private health insurance, what would you say we
15:38
Speaker 2: need and what don't we need?
15:40
Speaker 1: Oh my gosh, this whole episode is me being like, ah,
15:42
Speaker 1: it's a large to your goals and value friends, take
15:45
Speaker 1: a shot. But again, it is so dependent on your circumstances.
15:48
Speaker 1: A really good way of figuring out what you do
15:50
Speaker 1: need and what might be worthwhile for you is to
15:52
Speaker 1: have a really good think about how much money you
15:54
Speaker 1: need to fork out to pay for services that aren't
15:56
Speaker 1: covered by Medicare during the year. So for me, it
15:59
Speaker 1: might be a few physio sessions a year, which maybe
16:02
Speaker 1: is around like two hundred and fifty bucks, and then
16:03
Speaker 1: maybe dentist which cost me around four hundred dollars a
16:06
Speaker 1: year because I like going a couple of times. And
16:08
Speaker 1: then you'd add that amount to the lifetime healthcare loading
16:11
Speaker 1: and the Medicare levy surcharge that you have to pay
16:13
Speaker 1: if you don't have private health insurance, and then if
16:16
Speaker 1: that total is less than what you pay for health insurance,
16:19
Speaker 1: then probably it's not worthwhile to have private health insurance
16:23
Speaker 1: for you. But obviously that's just a roundabout way of
16:26
Speaker 1: kind of working it out, and it's going to be
16:28
Speaker 1: really personal. Here in Australia, we are so so lucky
16:32
Speaker 1: to have the healthcare system that we do have and
16:34
Speaker 1: a lot of what we do really need access to
16:37
Speaker 1: is covered. But for lots of people who can afford
16:40
Speaker 1: to do you know, private health insurance, it's a luxury
16:42
Speaker 1: that affords us a number of different benefits.
16:45
Speaker 2: Also, love that you go to the dentist a couple
16:47
Speaker 2: of times a year. That's very I feel like it's
16:50
Speaker 2: very adult and like you're very on top of it.
16:52
Speaker 1: Thank you. I'm definitely someone who likes to look after
16:55
Speaker 1: my teeth. Your teeth are beautiful. Thank you for showing
16:57
Speaker 1: me that by a zoom And I think I told
16:59
Speaker 1: you you guys recently. Four hundred dollars a year is
17:02
Speaker 1: probably average. Like what is it like? Maybe I go
17:05
Speaker 1: once a quarter. Maybe I go to the dentist once
17:07
Speaker 1: a quarter to get like a d scale and a
17:09
Speaker 1: clean because I really like clean fresh teeth, but more
17:12
Speaker 1: recently money loss. I did start in visial line, which
17:15
Speaker 1: is probably costing me around six thousand dollars guys, which
17:18
Speaker 1: is insane, but again aligned to my goals and values.
17:21
Speaker 1: Take a shot.
17:22
Speaker 2: Yeah, yeap, love it. So you mentioned their lifetime healthcare
17:27
Speaker 2: loading as a Medicare levy Searcharge, So can you talk
17:32
Speaker 2: us through what these are and what the tax implications
17:35
Speaker 2: are when it comes to having or not having health insurance?
17:37
Speaker 1: Sure can, my friend, I think that these two things
17:40
Speaker 1: make us feel really overwhelmed when it comes to private
17:42
Speaker 1: health insurance and actually looking at it and pondering it.
17:45
Speaker 1: So let's break it down. The lifetime healthcare loading is
17:48
Speaker 1: a government initiative that encourages you to choose private healthcare
17:51
Speaker 1: insurance earlier on in life, just like how we promote
17:54
Speaker 1: getting insurance earlier. It's because you haven't experienced a number
17:58
Speaker 1: of different health issues and just makes sense to get
18:01
Speaker 1: it then so that you don't have it excluded from
18:04
Speaker 1: your policy in the future. So if you haven't got
18:06
Speaker 1: private health care cover from the year that you turn
18:09
Speaker 1: thirty one, you will be made to pay a two
18:12
Speaker 1: percent lifetime health care loading on top of your premium
18:15
Speaker 1: for every year you are aged over thirty if you
18:18
Speaker 1: do decide to invest in health insurance down the line,
18:20
Speaker 1: so you can kind of see that it makes sense
18:23
Speaker 1: to get it beforehand, because that can really compound. An
18:26
Speaker 1: example would be if you took out private health care
18:28
Speaker 1: cover when you were forty, you'd be having to pay
18:30
Speaker 1: an extra twenty percent on the cost of this cover
18:33
Speaker 1: per year for ten years. The maximum does cap out
18:36
Speaker 1: as seventy percent, though for those of you playing long
18:39
Speaker 1: at home, and once you have paid the loading for
18:41
Speaker 1: ten years of consistent cover, the loading wraps up, so
18:44
Speaker 1: it's not forever, but ten years is a long period
18:46
Speaker 1: of time, and you don't have to pay the loading
18:49
Speaker 1: if you're under thirty one, or if you're new to
18:51
Speaker 1: Australia and are thirty one or over and purchase hospital
18:53
Speaker 1: cover within the first twelve months of you being registered
18:56
Speaker 1: for Medicare benefits here, so the loading only applies to
18:59
Speaker 1: hospital insurance. It's rather than like all the general extras
19:02
Speaker 1: as well. Just for the record, comparing that to the
19:05
Speaker 1: Medicare levee searcharge, you might see this written down as
19:07
Speaker 1: the MLS. This exists to encourage Australians to invest in
19:11
Speaker 1: private health cover and to use the private hospital system
19:14
Speaker 1: to take like the load and the pressure off the
19:17
Speaker 1: public system because obviously for all using it, we'd have
19:20
Speaker 1: to have more comprehensive facilities than we do. So there's
19:23
Speaker 1: a lot of benefit for the government to kind of
19:26
Speaker 1: push us into private health care purely because financially it
19:30
Speaker 1: makes the most sense for them. Those who can afford
19:32
Speaker 1: it should pay for it and you know, kind of
19:34
Speaker 1: take the load off so those who can't afford it
19:36
Speaker 1: can actually get access to better health care systems and
19:39
Speaker 1: also get access to like shorter waiting periods, et cetera.
19:43
Speaker 1: So if you earn over ninety thousand dollars and you
19:45
Speaker 1: don't have private health care cover, you're going to have
19:48
Speaker 1: to pay the Medicare levee searcharge. Don't worry about it.
19:51
Speaker 1: If you earn less than ninety thousand dollars, though it
19:53
Speaker 1: doesn't apply to you. Depending on what you earn, you
19:55
Speaker 1: may actually have to pay up to an extra one
19:58
Speaker 1: point five percent of your annual earnings to the ATO
20:01
Speaker 1: for every year that you're not covered by private health insurance.
20:05
Speaker 1: So that's something that you guys should look into too.
20:07
Speaker 1: Because I know a couple of people have been like, oh,
20:09
Speaker 1: I just pay it, and it's kind of like, well,
20:11
Speaker 1: if you're just paying it, wouldn't it be more economical
20:14
Speaker 1: to get the cover and at least you know you
20:16
Speaker 1: are losing the money here or there, at least you've
20:18
Speaker 1: got the cover and at least you have some level
20:21
Speaker 1: of benefit, whereas there's literally no benefit. You don't get
20:24
Speaker 1: anything out of paying this surcharge. It's literally a surcharge
20:27
Speaker 1: because you don't have it. But this also comes into
20:29
Speaker 1: effect if you and your partner have a combined income
20:32
Speaker 1: of more than one hundred and eighty thousand dollars a year,
20:35
Speaker 1: but you don't have to pay it if within your
20:37
Speaker 1: family unit you earn less than twenty two thousand, eight
20:39
Speaker 1: hundred and one dollars. So like the combined thing only
20:42
Speaker 1: happens if you earn more than that. But very important
20:45
Speaker 1: to take into consideration. So some people do take it
20:48
Speaker 1: out because it saves the money and then they don't
20:49
Speaker 1: even use their private health insurance, but you know, at
20:52
Speaker 1: least they're covered for something. It just kind of makes sense.
20:54
Speaker 1: It's the way our world works. So if you don't
20:57
Speaker 1: need to worry about this and you're earning less than
20:58
Speaker 1: ninety thousand dollars. It's just something to keep in mind
21:01
Speaker 1: if and when you do go over that bracket, and
21:03
Speaker 1: something that a lot of people just don't think about
21:06
Speaker 1: when their boss calls them in and says, congrats, you've
21:08
Speaker 1: got these pay rise or you take on a new job,
21:10
Speaker 1: like health care is not the first thing we think
21:11
Speaker 1: about because this is not America. We don't think about
21:14
Speaker 1: health care when taking on a new role. But it's
21:17
Speaker 1: something that we really should think about if you're going
21:19
Speaker 1: to go over that bracket, so protect yourself.
21:21
Speaker 2: You've said there that these certain things happen when you
21:25
Speaker 2: approach the age of thirty, is that the age we
21:28
Speaker 2: should be really seriously considering getting private health insurance.
21:33
Speaker 1: Definitely, if you are close to turning thirty, like yours
21:35
Speaker 1: truly ing, or if you are earning the larger amount
21:39
Speaker 1: of money, it's definitely something to consider. But from a
21:42
Speaker 1: health perspective, there are some other instances that I would
21:45
Speaker 1: probably want you guys to be considering it. So the
21:47
Speaker 1: first point here is if you're planning on starting a family, like,
21:51
Speaker 1: of course you can have a baby through the public
21:52
Speaker 1: healthcare system. It is a very well regarded system, but
21:55
Speaker 1: private means that you are going to be able to
21:58
Speaker 1: have your own room and have your own obstacle attrition,
22:00
Speaker 1: and you know, just have a bit of a different experience.
22:02
Speaker 1: You'll be more in control of it. And also, I
22:05
Speaker 1: think it's really important to point out that if you
22:07
Speaker 1: are planning on starting a family and want private health insurance,
22:10
Speaker 1: you cannot leave it till you are pregnant because often
22:14
Speaker 1: you need to have that cover for twelve months before
22:17
Speaker 1: the baby is born, so it's you know, it would
22:21
Speaker 1: be nine months if you got private health insurance when
22:23
Speaker 1: you found out you were pregnant. Therefore you're not actually
22:25
Speaker 1: covered for the maternity stuff associated with your policy. So
22:29
Speaker 1: really important to know that if you are planning on
22:31
Speaker 1: starting a family, maybe review policy and make sure it's there.
22:34
Speaker 1: Because something that I've done personally because I do have
22:37
Speaker 1: private health insurance is I'm not covered for anything to
22:40
Speaker 1: do with maternity because i had no intention of having
22:42
Speaker 1: a baby. But when I do decide to go down
22:45
Speaker 1: that route, it's definitely something I will go in and
22:48
Speaker 1: change before actually making the decision to get pregnant. So
22:52
Speaker 1: you know, if you're in the fortunate position where you're
22:54
Speaker 1: planning a pregnancy, then it's one of those things to
22:57
Speaker 1: just take into consideration. Also, if you're someone who's very
23:00
Speaker 1: athletic or like an athlete of some description who really
23:03
Speaker 1: utilizes the extras like physio and cairo and all of
23:07
Speaker 1: those fun things, then it could be actually more financially
23:10
Speaker 1: savvy to go down the avenue of having private health insurance.
23:13
Speaker 1: You just need to make sure that you weigh up
23:15
Speaker 1: the cost against the savings before doing it, because sometimes
23:17
Speaker 1: it doesn't actually end up being more beneficial. For example,
23:20
Speaker 1: if you just went and got cover because you're like, oh,
23:22
Speaker 1: I do go to the physio, but you're paying one
23:24
Speaker 1: hundred and fifty bucks a month, but you only see
23:26
Speaker 1: the physio once every quarter, and you're spending like maybe
23:28
Speaker 1: four hundred dollars on it a year and you earn
23:31
Speaker 1: less than ninety thousand dollars, maybe it's not something that
23:33
Speaker 1: is of value to you, and you're actually just better
23:35
Speaker 1: off paying in full for those physio sessions because it
23:39
Speaker 1: actually just is more economical. Whereas often you and I
23:42
Speaker 1: Georgia might look at it and be like, oh, of
23:43
Speaker 1: course I want money back, and it's like, well, actually
23:46
Speaker 1: money back is only good if in the grand scheme
23:48
Speaker 1: of things, you are saving. Also, if you're in a
23:52
Speaker 1: situation where you do not want to wait for elective surgery,
23:55
Speaker 1: waiting times in the public system are significantly longer, so
23:59
Speaker 1: you know, if you need your consoles out, for example,
24:01
Speaker 1: you might go onto a waiting list in the public
24:04
Speaker 1: system and that might be you know, nine, ten, twelve
24:06
Speaker 1: months plus. Like, there are some pretty scary stories out
24:10
Speaker 1: there of people having to wait for surgeries that you
24:13
Speaker 1: know you would want to take into consideration, Whereas in
24:15
Speaker 1: the private system, if you want your tonsils out, you
24:17
Speaker 1: kind of just find a surgeon and book it in
24:20
Speaker 1: and get it done at a time that suits you.
24:22
Speaker 1: So it's really important to understand that. And also if
24:25
Speaker 1: you have a chronic illness and you kind of like
24:27
Speaker 1: are in hospital often, or you are potentially going to
24:30
Speaker 1: be in hospital because of your chronic illness, then health
24:33
Speaker 1: insurance is probably a very good idea for someone.
24:36
Speaker 2: Like you because you rack up those fees absolutely.
24:38
Speaker 1: And it's also Georgia a bit about risk management as well,
24:41
Speaker 1: Like if you're chronically ill and you haven't been in
24:45
Speaker 1: hospital before, but you know that that illness is just
24:47
Speaker 1: going to you know, compound over time, and you will
24:50
Speaker 1: have that. Maybe it's an important thing for you to
24:52
Speaker 1: have in the beginning so that when that starts happening,
24:54
Speaker 1: those costs aren't as crippling for you as what they
24:57
Speaker 1: could have been if you didn't have the cover. So
24:59
Speaker 1: I think it's just about forward planning and really understanding
25:01
Speaker 1: your personal situation. If I'm honest, for sure, in terms
25:04
Speaker 1: of elective surgery, say I did need my tonsils out,
25:08
Speaker 1: would I need to have private health insurance a year
25:11
Speaker 1: before making that decision, like the same as having a
25:14
Speaker 1: baby or is it a different kettle of fish. No,
25:17
Speaker 1: So it's it's a different kettle of fish, not necessarily
25:20
Speaker 1: for all policies, and I obviously can't speak to all
25:23
Speaker 1: policies because every single policy is different, but often the
25:27
Speaker 1: weight times are different. So for example, I changed my
25:30
Speaker 1: private health insurance at the start of this year, and
25:33
Speaker 1: because I already had private health insurance but was kind
25:36
Speaker 1: of like upgrading it and like sides stepping to a
25:39
Speaker 1: different insurer, they actually waived my weight periods. So that's
25:43
Speaker 1: something to ask about on the phone and just go hey, cool,
25:46
Speaker 1: like I'm getting this for this reason. It's not that
25:49
Speaker 1: they won't let you have it. They'll just say, oh, well,
25:51
Speaker 1: there's a three month weight period on tonsil surgery or something.
25:54
Speaker 1: Obviously that's a really generalized example, but I think it's
25:57
Speaker 1: important to understand that for most things like general dental
26:01
Speaker 1: and optical and physio, you can't just call up and
26:04
Speaker 1: be like, hey, I want private health insurance and the
26:07
Speaker 1: next day go to the dentist. Often to get the rebates,
26:10
Speaker 1: you actually have to have been a member for a
26:12
Speaker 1: certain period of time before that.
26:14
Speaker 2: Cool, if that makes sense. Okay, So it sounds like
26:17
Speaker 2: for the most part, for people like me, health insurance
26:21
Speaker 2: isn't really something we are needing, like our younger listeners especially,
26:26
Speaker 2: But for those who have listened today, and I'm thinking,
26:29
Speaker 2: maybe it is the right move for them. Maybe they're
26:31
Speaker 2: planning one of those things you just mentioned. What words
26:34
Speaker 2: of wisdom? Would you leave them with?
26:36
Speaker 1: Wise words of wisdom or another unnecessary ranch? Do you
26:40
Speaker 1: have to have a shot for that or is after
26:41
Speaker 1: I go on the ranch?
26:43
Speaker 2: I think it's after you go on the rund.
26:45
Speaker 1: For those of you playing along at home, Georgia King
26:47
Speaker 1: made a drinking game about us and put it in
26:50
Speaker 1: last week's newsletter. Unbeknownst to me, I just started seeing
26:54
Speaker 1: people post on Instagram about it. Kind of just slipped
26:57
Speaker 1: that one in there. Georgia king back on my ranch
27:00
Speaker 1: and so important. Just pay for what you need. If
27:02
Speaker 1: you're young, you probably don't need to be covered for
27:05
Speaker 1: a potential hip replacement. I'm not gonna lie. Maybe you do,
27:07
Speaker 1: but I think it's really important to understand your situation
27:10
Speaker 1: and the cover that you are getting when it comes
27:12
Speaker 1: to extras. Just don't pay for things that you might
27:15
Speaker 1: not need, but like, reflect on what you have needed
27:17
Speaker 1: over the last twelve months and consider whether you would
27:20
Speaker 1: benefit from having those covered. I know, when I was
27:23
Speaker 1: changing my health care, like, I looked at it and
27:25
Speaker 1: I was like, oh, shiny, I'd love to have access
27:27
Speaker 1: to a naturopath. Don't get me wrong, I've seen a
27:30
Speaker 1: natural path historically, but the additional cover was like forty
27:33
Speaker 1: additional dollars a month. Like, I'll just pay for my
27:36
Speaker 1: eighty dollar naturopath session once a year outright, because it
27:39
Speaker 1: just made more sense to not have that on board. Also,
27:43
Speaker 1: ignore glossy sign up perks, like there are so many
27:46
Speaker 1: of them going around At the moment, you're going to
27:48
Speaker 1: end up paying more for things you don't need. And
27:51
Speaker 1: this is probably topical because people have this, but personally,
27:55
Speaker 1: I would say steer away from combined couples cover. The
27:59
Speaker 1: reason for this is health insurance is surprisingly not cheaper.
28:03
Speaker 1: If you do choose this route, you're both going to
28:05
Speaker 1: be covered and paying for things that you might not need.
28:07
Speaker 1: So if you're in a relationship with a male and
28:09
Speaker 1: female like that male does not need to be covered
28:11
Speaker 1: for maternity or gynecological issues, but it might be on
28:14
Speaker 1: their policy. If you're a same sex couple, maybe you
28:17
Speaker 1: do need gynecological cover, but you probably don't need prostate
28:21
Speaker 1: cover on your couple's cover. So I think it's just
28:24
Speaker 1: really important to have a look into the policies and
28:26
Speaker 1: get something that works for you. I think it's important
28:29
Speaker 1: here to also just share a bit about my experience
28:31
Speaker 1: because that's a really good way to learn. My partner
28:33
Speaker 1: and I have our own cover because he plays a
28:35
Speaker 1: lot of sport I do not. We both just have
28:38
Speaker 1: really different health concerns and things that we see as
28:41
Speaker 1: attractive in a healthcare policy. So for us, we just
28:44
Speaker 1: have things that are different. So I'm with one provider,
28:47
Speaker 1: he's with another. It's a non issue. We just make
28:49
Speaker 1: sure that it includes the things that are valuable to us.
28:53
Speaker 1: Another thing while I'm mid Ranch, Georgia, is compare your
28:56
Speaker 1: options and policies and don't just settle for the first
28:58
Speaker 1: one that you find on Google. Like, do make use
29:01
Speaker 1: of comparison websites to speed the process up for you,
29:04
Speaker 1: but please be aware that most comparison websites are actually
29:09
Speaker 1: an advertising platform and they are paid to rank things
29:12
Speaker 1: in a certain order. Literally, private health insurance companies will
29:17
Speaker 1: paid to come up at the top of that list
29:19
Speaker 1: when you know you go on one of these websites.
29:22
Speaker 1: So I think that's really important to take into consideration
29:25
Speaker 1: and do your own research. Georgia. We're going to have
29:28
Speaker 1: a thread in the Facebook group this week of policies
29:31
Speaker 1: that other people in our community have and what they
29:33
Speaker 1: like and dislike about it, which I think will be
29:35
Speaker 1: really powerful and a really good tool for you guys
29:37
Speaker 1: to help choose something that actually fits with your goals
29:40
Speaker 1: and values, because what a better way to learn them
29:42
Speaker 1: from people who have a non bias opinion, Like I
29:45
Speaker 1: don't want to go straight to the comparison website where
29:47
Speaker 1: someone's paying for it. I want to go to the
29:49
Speaker 1: Facebook thread where people like, oh my gosh, I tried
29:51
Speaker 1: to claim this and it didn't work, and you know
29:53
Speaker 1: you read this and go but I need my tonsils out. Okay,
29:56
Speaker 1: well that's not the policy for me, Like I think
29:58
Speaker 1: that'll be really powerful. But also be sure to check
30:02
Speaker 1: on your rates every single year because rates fluctuate, so
30:05
Speaker 1: like they increase their policies often every year, just like
30:08
Speaker 1: curR insurance, Call them up, have a chat with them,
30:10
Speaker 1: see what you can negotiate. The worst thing they can
30:13
Speaker 1: say is no. And then last on that, I mentioned
30:16
Speaker 1: it before, but do not be afraid to use different providers.
30:20
Speaker 1: It's often really easy to have everything clean in all
30:22
Speaker 1: in one place, but you often might get some better
30:25
Speaker 1: value by splitting your policy up between different providers. So
30:29
Speaker 1: that's the wrap on my little rant. Georgia, take your shot.
30:32
Speaker 2: Friends, Absolutely stunning. I feel like everyone would be pretty
30:36
Speaker 2: tipsy after today's show.
30:38
Speaker 1: Basically, if you're not, I'm disappointed, listen harder.
30:42
Speaker 2: But I guess the moral of the story today, guys
30:45
Speaker 2: is to really do your research, figure out if it's
30:48
Speaker 2: worth it for you, depending on your circumstance, and then
30:50
Speaker 2: just make the call from there.
30:52
Speaker 1: Absolutely Georgia King, and also make use of the phone numbers.
30:56
Speaker 1: I know, as a millennial, lots of us don't love
30:59
Speaker 1: picking up the phone having a conversation, but the people
31:02
Speaker 1: in the call centers are often incredibly well versed in
31:05
Speaker 1: what's included and what's not included. Call them, ask them,
31:08
Speaker 1: girl them, find out what is actually a value to
31:11
Speaker 1: you and what's included and what's not included, because sometimes
31:14
Speaker 1: these policy documents can be really overwhelming, So don't hesitate
31:18
Speaker 1: to Just give them a buzz and be like, hey,
31:19
Speaker 1: I've got some questions. Is this covered? Isn't it?
31:21
Speaker 2: Like?
31:21
Speaker 1: What's the best option here? What do you guys recommend
31:24
Speaker 1: what do you think like? They're never going to be
31:26
Speaker 1: able to give you a straight recommendation, so keep that
31:28
Speaker 1: in mind. But you know what you can do, use
31:30
Speaker 1: them to understand it. And you know, if you're paying
31:33
Speaker 1: for a service, you better get good service.
31:35
Speaker 2: Body Earth, I reckon, It's on to the listener question now.
31:38
Speaker 1: VI. Hey, Eyles, I'm twenty five, we're working the beauty industry,
31:42
Speaker 1: and I know Victoria's huge on income insurance, but.
31:44
Speaker 3: I'm wondering am I better off to get health insurance?
31:46
Speaker 2: Thank you? Victoria, what do you make of this one?
31:50
Speaker 2: You are huge on income insurance.
31:52
Speaker 1: This is a question that comes up all the time, Georgia,
31:55
Speaker 1: and I'm so glad they have asked. These true things
31:58
Speaker 1: are not the same. They are not con parable at all.
32:01
Speaker 1: I can understand how there is confusion around health insurance
32:05
Speaker 1: and income protection insurance, but they have very very different
32:08
Speaker 1: reasons for existing. Health insurance exists so that you are
32:13
Speaker 1: able to get access to healthcare when you need it.
32:16
Speaker 1: It's actually not in existence to help you save money. Yes,
32:20
Speaker 1: you can save money by doing it because you know
32:22
Speaker 1: some of it will be covered, and like you know,
32:24
Speaker 1: it is of a massive benefit. You know, if you're
32:26
Speaker 1: going through a very significant health crisis and you need
32:29
Speaker 1: help in that aspect and you know treatment is covered,
32:32
Speaker 1: so absolutely financial in that aspect. But income protection insurance
32:36
Speaker 1: exists to replace the income that you would lose because
32:40
Speaker 1: you are going through that health crisis. So if you know,
32:43
Speaker 1: let's say something awful happens and you end up with cancer,
32:47
Speaker 1: you're going to go through this really traumatic period of
32:50
Speaker 1: chemo maybe radiation, and be off work and not be
32:54
Speaker 1: able to provide income for your family. Because if you
32:57
Speaker 1: work in the beauty industry. I'm assuming that you go
32:59
Speaker 1: to work most day, You're not going to have that
33:01
Speaker 1: income Income protection is going to replace that. It's the
33:04
Speaker 1: same as trauma insurance. So trauma insurance is a lump
33:07
Speaker 1: sum payout when something bad happens to you to pay
33:10
Speaker 1: for things like changes to lifestyle because you need to
33:15
Speaker 1: change your life to this serious health condition, like maybe
33:18
Speaker 1: you need to move into the city for a little
33:20
Speaker 1: while because you live regionally and you need to lease
33:23
Speaker 1: an apartment because it's closer to the hospital that you're
33:25
Speaker 1: getting treatment at. A trauma policy is going to allow
33:28
Speaker 1: you to do that without adding to financial stress at
33:31
Speaker 1: the same time as you're going through a serious health crisis,
33:34
Speaker 1: compounds it and makes it awful. So for me, income
33:37
Speaker 1: insurance and health insurance like health insurance is negotiable and
33:41
Speaker 1: you know, optional, whereas to me, income protection, every single
33:44
Speaker 1: person in Australia should have this. I could get on
33:47
Speaker 1: my high horse and I do on this podcast. That's
33:50
Speaker 1: my thing. I don't mean to, but I just do.
33:53
Speaker 1: But income protection is arguably more important than any other
33:57
Speaker 1: insurance that you will ever hold. Like if you said
34:00
Speaker 1: to me Georgia Victoria get Rid of every single insurance
34:03
Speaker 1: policy that you hold, and Georgia, there's a fair bit
34:06
Speaker 1: of insurance in my life at the moment, and keep one.
34:09
Speaker 1: Income protection would be the thing that I keep because
34:12
Speaker 1: let's compare it to car insurance. You've got car insurance
34:14
Speaker 1: and you're paying twelve hundred bucks a year on that
34:16
Speaker 1: and you lose your job, you know, he's your car
34:19
Speaker 1: going to start supporting you. No, But if you have
34:21
Speaker 1: income protection and you lose your car and you need
34:24
Speaker 1: to pay for a new one, your income is going
34:26
Speaker 1: to help you create a new one. So income and
34:29
Speaker 1: cash flow is king because it's the one thing that
34:32
Speaker 1: will be that consistent that can actually help you create
34:35
Speaker 1: the life that you deserve. So for me, income protection,
34:38
Speaker 1: income insurance, whatever we want to call it, is the
34:41
Speaker 1: most important thing to me. So that's my high horse. No,
34:44
Speaker 1: they're not the same. It's not better to get health
34:46
Speaker 1: insurance instead of income protection. They are completely separate entities.
34:50
Speaker 1: And I'll wrap my rap there or whatever we're going
34:52
Speaker 1: to call it. Well, take a shot, friends.
34:55
Speaker 2: I think that's really interesting. V And I know I
34:58
Speaker 2: and probably a lot of our listeners would have thought
35:00
Speaker 2: the same as this listener question that they kind of
35:04
Speaker 2: are in the same bucket, but they are completely different things.
35:06
Speaker 2: And once again, income insurance is number one, which is
35:09
Speaker 2: what we learned in our insurance episode back in ses Queen.
35:12
Speaker 2: I think it was, so, you know, I'm not surprised
35:15
Speaker 2: by your answer, but yeah, I think it really drives
35:17
Speaker 2: that message home.
35:18
Speaker 1: So thanks for no problems. Tune in next week for
35:21
Speaker 1: another rant by V.
35:27
Speaker 2: Now let's take a sneak peek into the financial lives
35:30
Speaker 2: of perfect strangers. It's time for money diaries.
35:34
Speaker 3: I I'm twenty three and I'm learning the game, and
35:36
Speaker 3: this is my money diary.
35:37
Speaker 2: What does she do for work? How much does she
35:39
Speaker 2: earn and how much does she have in her bank account?
35:42
Speaker 3: So I'm a casual receptionist working about three days a week.
35:47
Speaker 3: I make around sixty thousand dollars post tax a year.
35:51
Speaker 3: I'm just about to finish university and I just got
35:54
Speaker 3: a graduate role out of a canning firm in Melbourne.
35:57
Speaker 3: And currently there's sixteen thousand dollars cross several bank accounts
36:02
Speaker 3: and a fifteen thousand dollars share portfolio.
36:04
Speaker 2: What happens to her money? You wants it to arrive
36:06
Speaker 2: in her accounts.
36:06
Speaker 3: So when the money first comes in, I put the
36:10
Speaker 3: first portion to rent for the half of the month,
36:13
Speaker 3: and then I put forty percent of what's left into
36:16
Speaker 3: savings that's between my shares account ready to buy more
36:23
Speaker 3: or my savings account in my bank account, and then
36:26
Speaker 3: I put about ten percent into bills, and then the
36:29
Speaker 3: rest is sort of just whatever I have leftover to
36:32
Speaker 3: use for the week.
36:33
Speaker 2: What are her investment plans? What are her attitudes towards investing?
36:37
Speaker 3: My interest in it started with my uncles. They've all
36:41
Speaker 3: been very into the stock market for as long as
36:44
Speaker 3: I can remember, and I think sometimes I saw the
36:50
Speaker 3: struggles that my parents had that their brothers and sisters
36:53
Speaker 3: didn't have. So that was probably from where I went that.
36:57
Speaker 3: That's where my independence with money sort of. I just
37:00
Speaker 3: wanted to live comfortably, I guess. So, yeah, my take
37:03
Speaker 3: on investing is that, yeah, definitely for the long term,
37:06
Speaker 3: and I'm hoping to contribute about five thousand dollars. Yeah,
37:09
Speaker 3: I'm only twenty three now, so by the time I retire,
37:14
Speaker 3: it should be hopefully a nice portfolio sitting there, and
37:17
Speaker 3: I hope, yeah, you use I guess that income as
37:20
Speaker 3: passive income to fund holidays or just life.
37:24
Speaker 2: Later on in life.
37:25
Speaker 3: And currently I have three shares and two ETFs, which
37:33
Speaker 3: the ets probably make up about seventy percent of my portfolio.
37:37
Speaker 3: One of high growth ETF here in Australia and then
37:40
Speaker 3: one actually tracks the nasdak over in the US.
37:42
Speaker 2: Does she have any debts?
37:44
Speaker 3: Just my hex debt at the moment, sitting at about
37:46
Speaker 3: thirty one thousand dollars, But I've already made the choice
37:51
Speaker 3: that I'll just pay that off as it comes around. Yeah,
37:54
Speaker 3: I'm not really too fussed in paying that down too quickly.
37:56
Speaker 2: What is her best money habit?
37:58
Speaker 3: My best money habit? I want what I enjoy spending
38:01
Speaker 3: money on, and I no longer feel guilty about it,
38:04
Speaker 3: even if other people would tell me that that's probably
38:06
Speaker 3: a waste. I like nice foods, so yeah, if I
38:09
Speaker 3: want to go out for a night at Chin Chin,
38:12
Speaker 3: I will and I won't feel bad about it.
38:14
Speaker 2: And what is her worst money habit?
38:16
Speaker 3: I'm very very bad at comparing myself to other people.
38:19
Speaker 3: I think having left regional Victoria to move to Melbourne
38:23
Speaker 3: to study, you always see people that yeare either younger
38:26
Speaker 3: than you you're or the same age as you are.
38:28
Speaker 3: Definitely ticking off a few life events a bit earlier,
38:31
Speaker 3: So I think one is a bad money habit is
38:35
Speaker 3: comparing myself.
38:36
Speaker 2: What's her big money goal.
38:37
Speaker 3: I think I would definitely like to own my own
38:39
Speaker 3: home eventually. I think I have also made the choice
38:44
Speaker 3: that I probably put more value into my share portfolio
38:48
Speaker 3: at the current time being, just because if anything was
38:51
Speaker 3: to ever happen in near future, Like, you can't sell
38:53
Speaker 3: off a bathroom, but you can sell down shares if
38:56
Speaker 3: it comes to that. So yeah, I think the long
38:59
Speaker 3: term goal is just, yeah, to have enough passive income
39:02
Speaker 3: to create a lifestyle or sustain a lifestyle.
39:05
Speaker 2: What grade would twenty four and Learning the Game give herself?
39:09
Speaker 2: Probably a B plus.
39:11
Speaker 3: I think I have the right foundations in place, but
39:15
Speaker 3: I really need to stop comparing myself to other people
39:17
Speaker 3: because if I keep doing that, I'll probably never be
39:20
Speaker 3: happy with my own situation.
39:22
Speaker 1: So that's got to stop.
39:23
Speaker 2: Vickid twenty three and learning the game more like twenty
39:28
Speaker 2: three and nailing the game, but has too much self
39:32
Speaker 2: doubt and wrote her self B plus. Talk me through
39:35
Speaker 2: your thoughts on this money, Doris, because I have some
39:37
Speaker 2: of my own, but I want to hear what you think.
39:39
Speaker 1: I'll talk you through my thoughts if you promised to
39:41
Speaker 1: never call me VICKI d again Georgie King. But I
39:45
Speaker 1: loved her. It sounded like, you know, she's doing an
39:49
Speaker 1: incredible job. She's a casual receptionist. What casual receptionist can
39:52
Speaker 1: say that they make sixty grand after tax, Like that's
39:55
Speaker 1: incredible to begin with. She's got a grad roll at
39:58
Speaker 1: an accounting firm. Amazing, congratulations, scale pal, She's got sixteen
40:02
Speaker 1: grand in savings and fifteen thousand dollars in a share portfolio. Like,
40:07
Speaker 1: if that's not the definition of killing it at twenty three,
40:09
Speaker 1: I don't know what is. I actually loved it, like
40:13
Speaker 1: I love love loved it. I loved that she was
40:15
Speaker 1: talking about passive income as well, because that seemed really
40:17
Speaker 1: important to her, and that's something that I want all
40:20
Speaker 1: of our listeners to start aspiring to. And I just
40:23
Speaker 1: really liked that she kind of already had a plan.
40:25
Speaker 1: She was like, oh, from memory, she said, I want
40:28
Speaker 1: to contribute five thousand dollars a year and you know,
40:30
Speaker 1: create that passive income. Like it wasn't just aspirational, it
40:33
Speaker 1: was a plan that she'd kind of created. And I'm
40:35
Speaker 1: sure that'll change and grow over time as her income does.
40:38
Speaker 1: But like, I loved that that plan was there and
40:40
Speaker 1: the reason she had that plan, but I don't know,
40:43
Speaker 1: it sounded also a bit like she was feeling guilty
40:46
Speaker 1: for her money habits, Like she said her worst money
40:49
Speaker 1: habit was comparing herself. But then she also says she
40:52
Speaker 1: doesn't feel guilty spending money, and I just think that
40:54
Speaker 1: maybe she still feels a little bit guilty spending money,
40:56
Speaker 1: but she shouldn't, And like, stop comparing yourself to the
41:00
Speaker 1: journey of others, like Georgia King. How many times do
41:02
Speaker 1: we say this on.
41:03
Speaker 2: The pot comparison is the thief of joy? Is that
41:06
Speaker 2: what you're gonna say.
41:07
Speaker 1: Thank you, Roosevelt. That is very inspirational, but it's true.
41:10
Speaker 1: And I just think that too many of us compare
41:13
Speaker 1: ourselves to a journey that somebody else is going on
41:15
Speaker 1: or have these really false aspirations of you know, you
41:19
Speaker 1: look at an epic money win, and please don't get
41:21
Speaker 1: me wrong, the money wins in our community are incredible
41:23
Speaker 1: and I'm so grateful for them. You guys are an
41:25
Speaker 1: absolute inspiration, like not just to other community, but like
41:29
Speaker 1: to me, Like I read these and I'm like, oh,
41:31
Speaker 1: my God, killing it, Like, I'm so grateful and so
41:35
Speaker 1: lucky that I'm on this journey with you guys. I
41:38
Speaker 1: think it's really important to just preface this with She's
41:41
Speaker 1: on the Money listeners and that She's on the Money community.
41:44
Speaker 1: Last year we did a general census, so I asked
41:47
Speaker 1: you guys some perfect questions about your savings habits and
41:50
Speaker 1: you know what you want to see from She's on
41:51
Speaker 1: the Money, and we are about to launch that again
41:54
Speaker 1: so you can give us some really great feedback. So
41:56
Speaker 1: we'll put the link to that census. We'll put that
41:58
Speaker 1: in the show bio below if you would love to
42:00
Speaker 1: contribute to that, which we would adore. But to give
42:03
Speaker 1: you guys a little bit of you know, insight, the
42:06
Speaker 1: average She's on the Money community member has doubled the
42:09
Speaker 1: amount of savings of the average Australian. So to break
42:13
Speaker 1: that down a little bit more, because I think it's
42:14
Speaker 1: so important to understand this stuff, like if you're listening
42:17
Speaker 1: to a finance podcast, you are miles ahead of anybody
42:20
Speaker 1: else that still has their head in the sand. Our
42:22
Speaker 1: Money Diarist this week, Georgia was twenty three years old,
42:25
Speaker 1: which makes her a gen Z and the average savings
42:29
Speaker 1: for a twenty four year old Australian is only ten
42:32
Speaker 1: one hundred and sixteen dollars. She's killing it. She's more
42:36
Speaker 1: than double that with sixteen thousand dollars in savings and
42:39
Speaker 1: fifteen grand in a share portfolio and plans to save
42:42
Speaker 1: an invest five grand a year. Like she's doing amazingly,
42:45
Speaker 1: And I think she needs to give herself more credit
42:47
Speaker 1: to give that a little bit more context for listeners
42:49
Speaker 1: who aren't twenty four years old, Jen, why Georgia King
42:53
Speaker 1: like yourself and I people born between nineteen eighty and
42:56
Speaker 1: nineteen ninety four, so twenty five years old to thirty
42:59
Speaker 1: nine years old friends, they have an average amount of
43:02
Speaker 1: savings of nineteen thousand, seven hundred and fifty two dollars.
43:05
Speaker 1: Gen X, our friends who were born between nineteen sixty
43:09
Speaker 1: and nineteen seventy nine, they have an average savings of
43:12
Speaker 1: thirty four thousand, two hundred and fifty seven dollars and
43:16
Speaker 1: their age between forty and fifty nine. And for our
43:19
Speaker 1: baby boomer friends who were born in anything earlier than
43:22
Speaker 1: nineteen fifty nine, so they're sixty years old and plus,
43:26
Speaker 1: they on average have savings of forty two thousand and
43:30
Speaker 1: forty three dollars, which, let's be honest, is not nearly
43:33
Speaker 1: enough to save for investment and retirement. And I just
43:36
Speaker 1: think that we really need to keep those things in
43:38
Speaker 1: mind when we are comparing ourselves. Honestly, stop comparing yourselves
43:41
Speaker 1: to the success that other people in our community have had.
43:45
Speaker 1: Like they are inspirational, they are incredible. I don't want
43:48
Speaker 1: to see those stories stop coming in. But I also
43:50
Speaker 1: think it's really unreasonable to see somebody else's success and
43:54
Speaker 1: assume that you're not successful because they're succeeding. Like we
43:58
Speaker 1: don't look at flowers and go, oh my gosh, that
44:01
Speaker 1: flowers not as good as that one. That one's a
44:02
Speaker 1: daisy and that one's a rose, like they're completely different,
44:05
Speaker 1: but they are so beautiful in their own right. And
44:07
Speaker 1: I think that we just need to stay in our
44:09
Speaker 1: own lanes, Like, just stay in your own lane, be
44:12
Speaker 1: happy that other people are successful, but remember that other
44:15
Speaker 1: people's success does not hinder yours. In fact, the more
44:18
Speaker 1: inspired you are by other people's journeys, usually the more
44:21
Speaker 1: successful you're able to be. And I think this tall
44:24
Speaker 1: poppy syndrome thing that we've got in Australia just needs
44:26
Speaker 1: to shut down. Like we are a community. We are
44:29
Speaker 1: here for each other, and if one of us is succeeding,
44:31
Speaker 1: we are all succeeding. Like the greater the we are,
44:34
Speaker 1: the greater the community is. And I'm going to stop
44:35
Speaker 1: the rout there because honestly, it's something that I'm so
44:38
Speaker 1: passionate about. Like we are a community. We are not individuals.
44:41
Speaker 1: Like you know, if you're saving or you're in debt,
44:44
Speaker 1: or you know something's going on like that she's on
44:47
Speaker 1: the money. Community is thousands of women who have your back.
44:50
Speaker 1: How cool is that? Like it's not just you on
44:52
Speaker 1: your own journey. Post in the group say you're having
44:55
Speaker 1: a hard week, Like we're here for you. We'd like
44:57
Speaker 1: the ultimate hype girls, We've got you, Like I love it,
45:01
Speaker 1: like it's it's literally my favorite thing in the entire world. Also,
45:04
Speaker 1: let's acknowledge that, you know, when I was doing a
45:06
Speaker 1: little bit of research to answer this question and give
45:08
Speaker 1: you those stats, the average savings for someone in metro
45:13
Speaker 1: areas in Australia is thirty one, four hundred and eighty
45:16
Speaker 1: nine dollars, whereas regional friends they are obviously a bit
45:20
Speaker 1: more disadvantaged. So our regional friends have an average savings
45:24
Speaker 1: of nineteen thousand, four hundred and seventy dollars, which is
45:26
Speaker 1: obviously pretty significant. And I just want to point that
45:29
Speaker 1: out because we're all working towards equality and everyone being
45:32
Speaker 1: able to be on equal footing, but equal footing means
45:35
Speaker 1: equal access to opportunities as well, and I think that,
45:39
Speaker 1: you know, our community is all about facilidating that kind
45:42
Speaker 1: of stuff, So maybe let's wrap it there. That money
45:45
Speaker 1: diarist was incredible. Georgia King, do you have anything that
45:48
Speaker 1: you want to add or are you just sick of
45:50
Speaker 1: hearing me talk? No?
45:52
Speaker 2: I just had a couple of things pretty much. Second,
45:54
Speaker 2: everything you've said there, thank parison is the thief of
45:57
Speaker 2: joy past that of your life asolutely, and just yeah,
46:01
Speaker 2: keep in mind that with comparison we really only see
46:04
Speaker 2: the end result for a lot of people's success. We're
46:06
Speaker 2: not seeing all the struggles they've gone through on the way,
46:08
Speaker 2: So keep that in mind. George's hot tip also amazing
46:12
Speaker 2: that she doesn't have any debt, only her hex stat.
46:15
Speaker 2: She's using all of your buzzwords, be passive income, ETF S, NASDAK.
46:19
Speaker 1: You know, yes, Queen, I love that.
46:22
Speaker 2: The other thing was that she loves Chin chin and
46:24
Speaker 2: little known fact, VICKI.
46:26
Speaker 1: D used to what we said about that, Georgia King.
46:30
Speaker 2: Don't hit me. She wouldn't because we're on a zoom
46:33
Speaker 2: call and you wouldn't do it anyway. Workplace violence? What
46:37
Speaker 2: Chin chin You used to work there? That's my story.
46:41
Speaker 1: I did used to work there back when I used
46:43
Speaker 1: to hustle my butt off in hospitality. I'm not gonna
46:46
Speaker 1: lie I loved hospitality. Oh I was the best waitress.
46:50
Speaker 1: I'm not gonna lie. Oh such waitress. No, I'd be
46:53
Speaker 1: terrible now. I feel like everybody who's worked in hospitality
46:56
Speaker 1: and has left hospitality wouldn't be good at going back.
47:00
Speaker 1: But I'm really impressed it past me's patience that she
47:04
Speaker 1: had when she worked in that industry. I just don't
47:07
Speaker 1: think I'd be able to put up with much now.
47:09
Speaker 1: Absolutely so. Shout out to all my hospitality friends. One,
47:12
Speaker 1: I've been there, but two you guys are doing it
47:14
Speaker 1: pretty rough in Australia right now, and I just want
47:17
Speaker 1: to send you all my love.
47:18
Speaker 2: Love it B. Should we wrap the show?
47:21
Speaker 1: Yes, g let's wrap our show. How about that? All right?
47:25
Speaker 1: But before we wrap our show, one of the most
47:27
Speaker 1: important things on this podcast is this. We'd like to
47:30
Speaker 1: acknowledge and per respects to Australia's Aboriginal and terrest Rate
47:33
Speaker 1: Islander people's, the traditional custodians of the lands, the waterways
47:36
Speaker 1: and the skies all across Australia. We thank you for
47:39
Speaker 1: sharing and for caring for the land on which we
47:41
Speaker 1: are able to learn. We pay our respects to elders
47:43
Speaker 1: past and present, and we share our friendship and our kindness.
47:46
Speaker 2: And now onto the boring stuff. The advice shed on
47:50
Speaker 2: sheers on the money is general in nature and does
47:52
Speaker 2: not consider your individual circumstances. She's on the money exists
47:56
Speaker 2: purely for educational purposes and should not be relied upon
47:59
Speaker 2: to make it in or a financial decision. And we
48:02
Speaker 2: promise Victoria Devine is legit. She is an authorized representative
48:06
Speaker 2: of Australia Pacific Guns Management Propriors You Limited ABM three
48:10
Speaker 2: four one three two four six three two five seven
48:12
Speaker 2: AFSL three three nine one five one and a big
48:16
Speaker 2: thank you to Ryan John, our editor, for putting it
48:19
Speaker 2: together today's show.
48:20
Speaker 1: And guys, we would so love it if you joined
48:23
Speaker 1: our Facebook group where our community shares money, tips and
48:26
Speaker 1: tricks every single day, free of judgment. So she's on
48:29
Speaker 1: the money on Facebook and join us. If Facebook's not
48:32
Speaker 1: your thing, you can also find us on Instagram, where
48:34
Speaker 1: it She's on the money, AUS and friends. Just to
48:37
Speaker 1: link sudedly brag. We have a new Facebook group and
48:40
Speaker 1: it's all about property and if you're interested in that,
48:43
Speaker 1: search the Property Playbook and join us. There's forty six
48:46
Speaker 1: thousand of you and the conversations in there are wild
48:49
Speaker 1: and I'm so here for it. See you next week, though, friends,
48:53
Speaker 1: see it guy, see your friends.