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FRIDAY DRINKS: Kimmie Reaches For The SKKY · She's On The Money

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Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
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Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before
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Speaker 1: we get started on She's On the Money podcast, I
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Speaker 1: would like to acknowledge the traditional custodians of the land
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Speaker 1: of which this podcast is recorded on a wondery country,
0:18
Speaker 1: acknowledging the elders, the ancestors and the next generation coming through.
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Speaker 1: As this podcast is about connecting, empowering, knowledge sharing and
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Speaker 1: the storytelling of you to make a difference for today
0:31
Speaker 1: and lasting impact for tomorrow.
0:33
Speaker 2: Let's get into it.
0:34
Speaker 3: She's on the Money, She's on the Money.
0:57
Speaker 2: Hello and welcome to She's the Money, the podcast for
1:01
Speaker 2: millennials who want financial freedom. My loves Today is Friday,
1:05
Speaker 2: which means it is time to sit back with the
1:07
Speaker 2: girls with a bevy in hand, to unpack our favorite
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Speaker 2: moments of the week and as always, to celebrate you,
1:14
Speaker 2: our incredible She's on the Money community. As always, we're
1:17
Speaker 2: going to be sharing our favorite money wins. We're going
1:19
Speaker 2: to be discussing what's making news in the finance world,
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Speaker 2: and this week we're going to be answering a juicy
1:24
Speaker 2: money question from our friend Julie, all about how to
1:27
Speaker 2: best build up an emergency fund. But before we get there,
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Speaker 2: as always, it is time to recap the week that was.
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Speaker 2: Miss Jessica Rici. What happened on Money Diaries this week?
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Speaker 2: So Monday's diarist was a little spicy. She has an
1:41
Speaker 2: only fan and she has been killing game. She's a
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Speaker 2: single mum, she bought a house, an investment property, a
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Speaker 2: land rover, and she did it all within twelve She she.
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Speaker 4: Is pretty wild.
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Speaker 2: I feel like we've done a couple of OnlyFans diaries
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Speaker 2: before and people always find them super interesting. Yeah, because
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Speaker 2: we like being perfect, most of us are going to
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Speaker 2: be like, oh, we would never do that, Like we
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Speaker 2: don't judge people who do, but we'd never do that.
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Speaker 2: But I want to know how you make money. Like
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Speaker 2: even I get a little bit pervy. I'm like, how
2:08
Speaker 2: much money do you make? That's sick? I think so,
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Speaker 2: and I think it's worth noting we sometimes get people
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Speaker 2: sending us slightly terse messages when we do these kinds
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Speaker 2: of things, and it's not about glamorizing a certain lifestyle.
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Speaker 2: But in our office, we really view sex work as
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Speaker 2: just another form of work and just like we would
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Speaker 2: have any other diarist not to talk about their job.
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Speaker 2: That's what this one did exactly. And if someone writes
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Speaker 2: into our show and says, hey, I've got this great
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Speaker 2: money diary, great, come on the show. If you want
2:33
Speaker 2: more content from more diverse areas, put it on the show.
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Speaker 2: Come and write into us. Like we only share what
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Speaker 2: people are comfortable with. If people are comfortable sharing their
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Speaker 2: stories about only fans, I'm gonna give you that platform.
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Speaker 2: I love exactly right, And it was really cool to
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Speaker 2: see as a mum how she kind of navigated that world.
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Speaker 2: She was very candid, which we really appreciated, and it
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Speaker 2: was a coole listen. I really enjoyed it. I always
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Speaker 2: enjoy them, maybe because I'm pervy, but also because I
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Speaker 2: just I love money diaries in general. So I want
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Speaker 2: to know what you doing with money? Tell me?
3:01
Speaker 4: All right?
3:02
Speaker 2: Moving on, on Wednesday, we had a little bit of
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Speaker 2: a deep dive missed Georgia King. What happened on Wednesday?
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Speaker 4: Hello ladies.
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Speaker 3: This Wednesday we spoke all about employee riots, which was
3:13
Speaker 3: super interesting. We spoke about industry awards and agreements, superannuation,
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Speaker 3: oh and s unfair dismissal the Fair Work Tribunal and
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Speaker 3: plenty plenty more. It was really really empowering, was my
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Speaker 3: main takeaway from that map, because we just don't know
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Speaker 3: what we're entitled.
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Speaker 2: To a lot of the time, you don't know what
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Speaker 2: you don't know, you don't know my content like this exists,
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Speaker 2: so that then you know what you know, and then
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Speaker 2: your employees.
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Speaker 4: Exactly, we love that.
3:38
Speaker 2: Get what you deserve, queens, Yes sir? All right, moving
3:41
Speaker 2: on to my second favorite part of the week, because
3:44
Speaker 2: obviously Money Diaries is number one. Always, Miss Georgia King,
3:46
Speaker 2: it is time for you to share some of your
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Speaker 2: budget direct money wins and combassions of the week.
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Speaker 3: What have you brought out this week for us? Got
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Speaker 3: some goodies, girlies. So the first win of the week
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Speaker 3: comes from Leah. I resonate with this one. So much
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Speaker 3: money win my football team loss. So I saved four
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Speaker 3: hundred dollars on Grand Final tickets, trying to spin it
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Speaker 3: the best way I can money win.
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Speaker 4: Feel that pain. She for Melbourne, bloody losers.
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Speaker 3: Sorry, I go for Melbourne too, just in case you
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Speaker 3: do later. I'm not being mean, I'm just being mean
4:13
Speaker 3: to my.
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Speaker 2: Real nasty crying to yourself. Yeah, was that the one
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Speaker 2: pointer was that that game? No, that was that was
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Speaker 2: who's in the Grand Final? Should I know that?
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Speaker 3: You should Sydney and Geelong go go Westside.
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Speaker 2: Get Belongham Gal. You didn't even know that till right then. Yeah,
4:32
Speaker 2: but as a Westie, you gotta you gotta, you gotta
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Speaker 2: put your boys killed us. So I don't follow the
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Speaker 2: football because I just know I'll be disappointed.
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Speaker 4: Fair enough.
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Speaker 3: The next win of the day comes from Tijana money Win.
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Speaker 3: I followed up with two of the places I booked
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Speaker 3: my twenty twenty euro trip with before COVID they only
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Speaker 3: offered credits as great laws changed following the pandemic. I
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Speaker 3: had a total of three thousand dollars refunded back to
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Speaker 3: me in less than a week.
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Speaker 2: Oh my, got money, and you didn't even know you're
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Speaker 2: going to get that.
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Speaker 3: She probably assumed it was gone. That's a real bonus.
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Speaker 3: Enjoy that, Tiana. The next win comes from Teeley money Win.
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Speaker 3: I rang and asked my bank to reduce my interest rate.
5:10
Speaker 3: They sat, move, smart move, very smart move. They said
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Speaker 3: a drop from four point one eight percent to three
5:16
Speaker 3: point six percent would be a go pretty good. But
5:20
Speaker 3: then she suggested that Athenis rates were three point.
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Speaker 4: Two nine percent.
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Speaker 3: They said they're going to match that rate. Oh fifteen minute,
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Speaker 3: Cole saved me a whole lot of Muller.
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Speaker 2: Yeah, and you're just a little bit of googling and
5:31
Speaker 2: you've got a comparison to throw their way. Often in
5:34
Speaker 2: banking world, they can't suggest the rate that it goes
5:38
Speaker 2: down to. You actually have to put it on the table.
5:41
Speaker 2: So they'll have like their little schedule And if Georgia
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Speaker 2: King called up and said, don't want a better deal,
5:44
Speaker 2: they're like, oh, we could drop it to X. But
5:47
Speaker 2: if you bring up a comparison, then they actually have
5:50
Speaker 2: to consider it, or so I have heard. Because they're
5:53
Speaker 2: not going to bring up their competitors to a client.
5:55
Speaker 2: Yeah yeah, yeah, not a smart idea. But if you
5:57
Speaker 2: bring up their competitors and you're like, I might leave.
6:00
Speaker 2: Look how good this other company is, what are they
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Speaker 2: going to do?
6:03
Speaker 4: Juicy? That's a hot tip from Vedi.
6:05
Speaker 2: There, ladies can't give a way too many.
6:06
Speaker 3: We've got a whole The next wee and it comes
6:09
Speaker 3: from Monique. I needed to have two wisdom teeth removed
6:13
Speaker 3: at the public Community dentist and it didn't end up
6:16
Speaker 3: costing me a cent.
6:17
Speaker 4: What.
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Speaker 3: I've had a very easy recovery with no swelling or bruising.
6:21
Speaker 3: Wish I could say to see for myself.
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Speaker 2: Yeah, we've had this conversation very recently on the podcast.
6:29
Speaker 2: We were just excited about dental health. Jessica.
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Speaker 3: Oh yeah, I feel like I remember asking you, guys,
6:35
Speaker 3: if you go to the dentist. Yeah, yes, the dentists,
6:37
Speaker 3: you know, somevery decade or so. That's just to do
6:42
Speaker 3: it moving the next week and it comes from Beck
6:45
Speaker 3: and money win. I got big w to price match
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Speaker 3: with office works. I saved eleven dollars upfront plus fuel costs.
6:51
Speaker 3: I don't really get the fuel part of that, but
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Speaker 3: that's okay.
6:53
Speaker 2: Let's fuel costs.
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Speaker 3: I don't know, maybe driving fuel document maybe on the body.
7:00
Speaker 3: Maybe that's it just is way more switched on them.
7:02
Speaker 3: We'll ever be She's on the money. Guys, How how
7:05
Speaker 3: do you actually price match? Though?
7:07
Speaker 2: You just go up to a customer, like you're right,
7:13
Speaker 2: you as the customer. We do it all the time
7:16
Speaker 2: and yeah, yeah, do you just say do you price match?
7:19
Speaker 2: Or like generally I will have googled ahead of time
7:22
Speaker 2: and I know that you price match and if they go,
7:24
Speaker 2: oh no, we don't go oh really because it sounds
7:25
Speaker 2: like your website, you do. I'm still so awkward about it.
7:29
Speaker 2: We did this the other day because I needed We
7:30
Speaker 2: got a new staff member and I had to go
7:32
Speaker 2: buy another laptop at JB Hi Fi. Right, so I
7:35
Speaker 2: googled the laptop and on my phone I had screenshot
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Speaker 2: the price of another competitor. I knew what I was
7:40
Speaker 2: going to do. Anyway, walking and ask for the laptop.
7:43
Speaker 2: They're like, yep, no worries. And then he said to
7:44
Speaker 2: the guy, Oh, I don't mean to be awkward, but like,
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Speaker 2: I know you price match, so I just wanted to
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Speaker 2: show you this and he's like, oh, He's like, actually
7:51
Speaker 2: know who you are. So I fully expected this. I've
7:55
Speaker 2: on expected this. He's like, you're living up to your name.
7:57
Speaker 2: And I was like, oh, it's so embarrassing, but anyway, yeah,
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Speaker 2: I do as I say, don't worry.
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Speaker 4: Exactly right.
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Speaker 3: We'd love to see it. The last one for the day, ladies.
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Speaker 3: It's a win loss win, and it comes from risk
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Speaker 3: win lost. Yeah, exactly right, as the feedback win. The
8:13
Speaker 3: first win is I got a refund check for a surgery.
8:16
Speaker 3: I had last year in the mail, great win win,
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Speaker 3: I guess the loss. I got a speeding fine in
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Speaker 3: the mail on the same day.
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Speaker 4: It was her first in about ten.
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Speaker 3: Years while running errands for her friend who had COVID,
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Speaker 3: so she's a good woman. And then finally, the last
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Speaker 3: win was that the fine wasn't as much as the refund,
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Speaker 3: so she's still ahead and she wasn't expecting the money.
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Speaker 4: So that's it for the week, lady.
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Speaker 2: That's all we've got. George King, as always, it has
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Speaker 2: been an absolute delight celebrating some of your budget Direct
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Speaker 2: money wins. Budget Direct a winner of can Stars Insurer
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Speaker 2: of the Year Award twenty twenty two. Budget Direct Insurance Solved.
8:52
Speaker 2: How about we go to a really quick break and
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Speaker 2: straight after this, I want to talk about emergency funds.
8:57
Speaker 2: We have some news from Georgia King, and I'm going
9:00
Speaker 2: to bring up Ki Kardashian don't go anywhere, all right,
9:08
Speaker 2: two pieces of news for you guys this week, one
9:10
Speaker 2: from me and one from the lovely Georgia King. You're
9:13
Speaker 2: making a sad face with me across the table. I know, George,
9:18
Speaker 2: share with the family. What have you got to say?
9:19
Speaker 4: I'm going to cry.
9:21
Speaker 3: I am moving on from She's on the money.
9:23
Speaker 4: Oh my god, I'm actually going to be I've just
9:27
Speaker 4: set it out. Yeah, i am stop.
9:31
Speaker 2: You're gonna make me cry for ages, obviously, and it's
9:35
Speaker 2: really sad. It is really sad, but very exciting as well.
9:39
Speaker 3: I feel like I've also kind of made it sound
9:41
Speaker 3: like the girlies have fired me a little bit, pushing
9:45
Speaker 3: me off.
9:46
Speaker 2: The opposite is true. This was a choice that you made.
9:49
Speaker 2: I have been desperado in the background, trying to get
9:52
Speaker 2: her to stay. No.
9:53
Speaker 3: No, turns out she's a hot woman in a hot demand,
9:56
Speaker 3: but no. So it's just it's come time for me.
10:00
Speaker 3: I'm not going anywhere soon. I'm going to be hanging
10:02
Speaker 3: around and sharing the job with Jess for a little
10:05
Speaker 3: while longer, so you're stuck with me for a while
10:08
Speaker 3: to come. The decision was basically made because I want
10:12
Speaker 3: to start concentrating on my journalism a little bit more seriously,
10:16
Speaker 3: and I've just been burning the candle at both ends.
10:19
Speaker 3: I don't know if I've sounded tired on the podcast.
10:21
Speaker 2: But haven't you always sound like a delight?
10:23
Speaker 4: Thanks guys.
10:24
Speaker 3: But yeah, it's just it's time time felt right? How
10:28
Speaker 3: fun that when you started, Like when I was listening
10:30
Speaker 3: as a listener to the podcast, you were introducing yourself
10:32
Speaker 3: as I'm Georgia King, I'm a journalism student, and you're.
10:36
Speaker 2: Like, I'm Master of Journalists. I'm Georgia King, a journalist.
10:40
Speaker 4: Yeah, I guess, I guess that's true.
10:42
Speaker 2: It's so cool. It is so cool. And I mean, George,
10:45
Speaker 2: you're not going far like hop skip and a jump away.
10:48
Speaker 2: You're still one of my little sister's best friends. So
10:51
Speaker 2: good luck being rid of me, and hopefully we can
10:54
Speaker 2: like drag her on the show for like little cameos.
10:56
Speaker 2: Maybe if our engagement goes down, Jess, bring George. But
11:01
Speaker 2: you're leaving the show, but you're not leaving the communities.
11:03
Speaker 2: I'm absolutely not mad about it. She'd still be floating around.
11:05
Speaker 2: You might see her in the audience at a few
11:07
Speaker 2: she's on the money events because lord no, she always
11:09
Speaker 2: get a ticket. But I'm really sad. I hate this.
11:13
Speaker 4: Oh I know, I know.
11:14
Speaker 3: But yeah, as you've said, you're not getting rid of me.
11:16
Speaker 3: L still be loitering in the background events and stuff.
11:20
Speaker 3: But also I just wanted to say a big thank
11:22
Speaker 3: you to both Victoria and jo I can't. But also
11:28
Speaker 3: to the amazing community.
11:30
Speaker 4: Oh my god, the voice. This is way harder than
11:32
Speaker 4: I expected it to.
11:34
Speaker 3: But yeah, also to the community who have been so
11:36
Speaker 3: welcoming of me since the start, and I think we
11:40
Speaker 3: should talk about something else before I cry.
11:44
Speaker 2: This is really wholesome. We're really grateful for you being here,
11:47
Speaker 2: been here. Literally I've recorded podcasts with me on the
11:50
Speaker 2: floor after a bottle of wine. We won't tell you
11:52
Speaker 2: which episode that was.
11:55
Speaker 3: With you.
11:56
Speaker 2: Remember the time we recorded with beanies over our microphones
11:58
Speaker 2: because we couldn't find the pops. We've come so far together,
12:03
Speaker 2: Dueta King. But I think it's come, as you know,
12:06
Speaker 2: probably a surprise to the community. But at the same time,
12:08
Speaker 2: I don't think the community is going to be surprised
12:10
Speaker 2: all because you are destined for very great things, and
12:13
Speaker 2: you started as a journalism student. Now you're a master
12:16
Speaker 2: of journalism. You've got to get the work done. George,
12:19
Speaker 2: We totally get it. So very grateful for you. Thank
12:22
Speaker 2: you for being part of our journey.
12:24
Speaker 4: Sorry for getting so emotional.
12:26
Speaker 2: We also for those of you wondering, we don't actually
12:29
Speaker 2: have a plan for what happens to quote George's role
12:32
Speaker 2: on the show. Yet we've decided. Given how busy the
12:35
Speaker 2: rest of this year is, because obviously we've got a
12:38
Speaker 2: million things on, we're just going to see the year out.
12:41
Speaker 2: G will be here for most of it, and then
12:42
Speaker 2: if G's not around, Jess and I are going to
12:45
Speaker 2: roll solo together and then we will make a decision
12:48
Speaker 2: in the new year as to what happens. Maybe we
12:51
Speaker 2: can get some new voices on the pod. Maybe we don't.
12:53
Speaker 2: Who knows. Time will tell you, Time will tell, but
12:55
Speaker 2: it'll be hard to replace you Big choose to feel massive,
12:59
Speaker 2: tiny studies? Oh same?
13:01
Speaker 3: Shall we talk about Kim Kardashian.
13:03
Speaker 2: I feel like an emotional roles this story. I feel
13:09
Speaker 2: like combines two of all of our favorite things finance
13:12
Speaker 2: and trashy reality TV we all love. I don't know
13:16
Speaker 2: if you saw the news, gals, but Kim Kardashian and
13:18
Speaker 2: a former partner of hers have recently launched a private
13:22
Speaker 2: equity firm focusing on investing in consumer and media businesses,
13:26
Speaker 2: which I am obsessed, Like, she's living my dream. One
13:29
Speaker 2: day I want to have a private equity firm, Like
13:31
Speaker 2: how cool would it be to be able to invest
13:33
Speaker 2: in other people's businesses? Well, Yeah, the devil works hard.
13:36
Speaker 2: Christiana really does work harder. And to be honest, I
13:39
Speaker 2: don't know a whole lot about what a private equity
13:41
Speaker 2: firm is, So VD, can you start by explaining to
13:43
Speaker 2: us what that is and then we can maybe dissect
13:45
Speaker 2: the news a little bit more. Can I like jump
13:47
Speaker 2: back to what it's called first though, because it did
13:49
Speaker 2: make me laugh, Like you would think that any Kardashian
13:51
Speaker 2: business was typ with a K. Right doesn't. But it's
13:54
Speaker 2: called Sky Partners, but it's got two k's in it,
13:57
Speaker 2: so it's SKK Live.
13:59
Speaker 4: She's good.
14:00
Speaker 2: She's good. As Jess said, the devil works hard, Chris
14:02
Speaker 2: Jenna works harder. But essentially, private equity firm is just
14:06
Speaker 2: private money, and it's private money that is usually managed
14:10
Speaker 2: by an investment management company. So Kim Kardashian isn't doing
14:13
Speaker 2: this all on her own. She actually has someone who
14:15
Speaker 2: has experiencing this, and it's a company that then provides
14:18
Speaker 2: financial backing and makes investments in private companies or startups
14:22
Speaker 2: or you know, businesses that exist that need a little
14:25
Speaker 2: bit more funding to go to the next level. And
14:28
Speaker 2: there's lots of ways of going about it, but essentially
14:30
Speaker 2: it's a company, then there's seen other businesses, and the
14:32
Speaker 2: purpose of doing that is to obviously see a return
14:35
Speaker 2: on their money. So Jess might start a business and
14:37
Speaker 2: be like, oh, I need ten million dollars to go
14:39
Speaker 2: to the next level, and Kim Kardashian is now going
14:42
Speaker 2: to sit down and be like, oh, that's a good idea, Jess.
14:44
Speaker 2: The interesting thing here, though, from my perspective, is obviously,
14:48
Speaker 2: like the Kardashian family or the Kardashian Jenna family carries
14:52
Speaker 2: so much weight, and their Instagram and social feeds obviously
14:56
Speaker 2: have Instagram posts that you know, cost upwards of a
14:59
Speaker 2: million dollars to talk about. Like imagine the backing and
15:02
Speaker 2: the like clout that you're going to get if the
15:05
Speaker 2: world or the media finds out that Kim Kardashian's decided
15:08
Speaker 2: to invest in your business, like that media in PR
15:10
Speaker 2: coverage would be insane. So I'm really interested to see
15:14
Speaker 2: how this goes because private equity, from my perspective, is
15:18
Speaker 2: something that oh, like, I get so envious of people
15:22
Speaker 2: who get to work in this space because they get
15:24
Speaker 2: to work with other founders or you know, founders that
15:27
Speaker 2: align to their goals and their values and partner with
15:30
Speaker 2: them to take them, you know, as I said, to
15:32
Speaker 2: that next level or run that business or you know,
15:35
Speaker 2: I've got a passion which I haven't spoken about very
15:38
Speaker 2: publicly before, for helping really small, female independently owned businesses
15:44
Speaker 2: in mentoring and coaching and even sometimes financials to get
15:48
Speaker 2: to the next level. But like, this is on an
15:50
Speaker 2: entirely different level. Often the companies that private equity funds
15:53
Speaker 2: invest in are usually pretty large, and they want to
15:56
Speaker 2: take a stake of that business. So they're not just going, oh, Jessica,
15:59
Speaker 2: Ricky has like some money and you know, give me
16:01
Speaker 2: a return. They might go have some money. I want
16:03
Speaker 2: to see a return, but I also want a twenty
16:05
Speaker 2: five percent stake in your business. So think Shark Tank, right,
16:08
Speaker 2: I think Shark Tank, And that's kind of like what's
16:10
Speaker 2: going on. But it's an actual business.
16:12
Speaker 3: So is the premise of this VD that it's a
16:15
Speaker 3: money making machine for the Cudashians because they need more money.
16:18
Speaker 3: Let's be real, it's not like an altruistic thing. They're
16:21
Speaker 3: not just helping out young female founders for example.
16:25
Speaker 4: It's more more money spinner.
16:27
Speaker 2: To be honest, it could be both. Yeah, it's a
16:31
Speaker 2: very time and energy intensive way to make money because obviously,
16:36
Speaker 2: you know, let's use just this business that doesn't exist
16:39
Speaker 2: right now as an example, right, Like, I don't guarantee
16:42
Speaker 2: that it's going to be a return, So the time,
16:44
Speaker 2: energy and effort it might take to do the research
16:46
Speaker 2: and the backing and all of that, it might not
16:49
Speaker 2: be worth it because you know, for every five companies
16:52
Speaker 2: you invest in, maybe only one of them might be successful.
16:55
Speaker 2: So it's really risky in that aspect. So I would
16:59
Speaker 2: love to think that it's a little bit more altruistic
17:02
Speaker 2: than just being a money making machine, especially because on
17:05
Speaker 2: a private equity investing journey, like, you know, there's obviously
17:08
Speaker 2: a lot of risk, but there's also a lot of return.
17:10
Speaker 2: But you know, you get to back certain businesses that
17:13
Speaker 2: are aligned to your values and like your goals and
17:16
Speaker 2: what you know, what really resonates with you. So I'm
17:19
Speaker 2: hoping that the reason is because she's just like really
17:22
Speaker 2: passionate about female founded businesses and like really wants to
17:26
Speaker 2: push women forward. And one of the articles that I
17:28
Speaker 2: read was really just talking about how women comprise of
17:31
Speaker 2: only twelve point seven percent of all senior employees at
17:34
Speaker 2: private equity firms, and like I guess this is a
17:36
Speaker 2: really good step in the right direction. I mean, if
17:38
Speaker 2: Kim Kardashian can do it, we can do it.
17:41
Speaker 4: We can do it.
17:41
Speaker 2: I think Kim Kardashian is a lot more intelligent then
17:44
Speaker 2: she gets a rep for in the media. I don't
17:46
Speaker 2: think they could have been a successful hour she's studying
17:48
Speaker 2: law or she has her degree. Now, I'm not one
17:49
Speaker 2: hundred percent sure, but it's worth noting that her partner,
17:54
Speaker 2: I think, I said, was her former partner my mistake.
17:56
Speaker 2: He was a former partner at Carlisle Group, Inc. Which
18:00
Speaker 2: is a private equity firm. They had three hundred and
18:04
Speaker 2: seventy six billion dollars in assets under management in their firm.
18:08
Speaker 2: His name is Jay Simmons. I would argue that Kim's
18:11
Speaker 2: probably not going to be sitting down with the female
18:13
Speaker 2: founders or whoever and talking them through it. I think
18:16
Speaker 2: it's pretty safe to bet that it's going to be
18:19
Speaker 2: a pretty significant firm from the get go. He's got
18:21
Speaker 2: experience handling assets of that size. Kim obviously has a
18:24
Speaker 2: lot of experience in running a media business, and they
18:27
Speaker 2: are intending on focusing on consumer products, hospitality, luxury, digital commerce,
18:31
Speaker 2: and media so I think it's a nice melding of
18:34
Speaker 2: both of their experiences. How hands on Kim's going to
18:37
Speaker 2: be remains to be seen. It could just be that,
18:39
Speaker 2: you know what I mean, she's the founder, She's definitely
18:41
Speaker 2: got the cash to start something up, and it sounds
18:43
Speaker 2: like Jay has the experience to back it in. So
18:46
Speaker 2: excited to see how it goes. Ultimately, I love seeing
18:49
Speaker 2: a woman doing something that isn't typically done by women,
18:51
Speaker 2: So I'm all about it. Yeah, And I mean to
18:53
Speaker 2: get into the little nitty gritty on them, because, like
18:56
Speaker 2: we are a money podcast, so I want to know
18:57
Speaker 2: more about the money. Kim Kardashian has come out and
19:00
Speaker 2: said that they're actually seeking to raise for Sky Partners,
19:03
Speaker 2: which is the equity firm, more than a billion dollars
19:06
Speaker 2: to completely debut the fund, which is wild, but let's
19:10
Speaker 2: do some numbers here. If they typically operate in a
19:13
Speaker 2: model which is called a two and twenty model, which
19:16
Speaker 2: assumes that the company should be making about twenty percent profit,
19:19
Speaker 2: which you know in the investment world, like if you're
19:22
Speaker 2: going to go all the way into private equity, like
19:24
Speaker 2: you want to be making a lot more money than
19:27
Speaker 2: what it would be if you just put your money
19:28
Speaker 2: into shares, right, Like, if you just want to put
19:30
Speaker 2: your money in the share market. We know that the
19:32
Speaker 2: Australian share market on average has returned about l eleven
19:34
Speaker 2: percent over the last twelve to fourteen years. Obviously different
19:38
Speaker 2: percentages in other areas, but you're going to be chasing
19:40
Speaker 2: higher returns because it's higher risk, right. But if SKY
19:43
Speaker 2: is making a twenty percent profit on the one billion dollars,
19:46
Speaker 2: they're making twenty million dollars a year just operating this fund,
19:50
Speaker 2: that's worth it to me. That's some big dollars. So
19:53
Speaker 2: I think it's really interesting as well to see what
19:55
Speaker 2: they would do with that profit, like are they reinvesting
19:58
Speaker 2: that into the fund or are they taking that as
20:00
Speaker 2: hash for themselves. Like I just want to see what
20:02
Speaker 2: the plan with the business model is because often when
20:05
Speaker 2: you start a private equity firm, you don't have names
20:08
Speaker 2: like Kim Kardashy and floating around. So raising a billion
20:11
Speaker 2: dollars is really hard, and you usually reinvest every single
20:14
Speaker 2: dollar that that fund makes to grow the fund over time,
20:17
Speaker 2: and there might be an agreeance between the directors of
20:20
Speaker 2: the fund to go all right, well, Jess for the
20:22
Speaker 2: next ten years, we're going to reinvest every single dollar
20:24
Speaker 2: and then from then on in we might then look
20:27
Speaker 2: at taking profit. But I just want to know the
20:28
Speaker 2: business model. Guys, I'm so pervy. I'll report back if
20:31
Speaker 2: there's any more news. As you know, we love a
20:33
Speaker 2: bit of reality TV. Maybe very interested to know. But
20:38
Speaker 2: the interesting thing there, as I said before, they're looking
20:40
Speaker 2: to raise a billion dollars. That's not Kim's money, like,
20:44
Speaker 2: that's not Kim putting a billion dollars in. That's her
20:46
Speaker 2: looking for investors that believe in her fund Sky Partners
20:50
Speaker 2: and want to put money into it and therefore want
20:52
Speaker 2: to see a return. So interesting world, but.
20:55
Speaker 4: Re juicy, Good luck with it.
20:56
Speaker 3: Let's move on before I go on and on and on,
20:58
Speaker 3: because I could both money dilemma.
21:00
Speaker 2: All right, I'm ready, I'm ready. What have we got? Hi?
21:04
Speaker 4: There have you got up money dilemma? You just can't
21:06
Speaker 4: solve that.
21:07
Speaker 3: She's on the Money Team is here to help. Every week,
21:10
Speaker 3: we tackle your dilemmas, both big and small, to answer
21:12
Speaker 3: your most burning money, career and life questions. To get involved,
21:17
Speaker 3: simply head to our website and leave us a quick
21:19
Speaker 3: voice recording, and you may just find yourself on the show. Now,
21:22
Speaker 3: let's take a listen to today's money dilemma.
21:25
Speaker 5: Hi, Victoria, I'm wanting to build an emergency fund. I
21:30
Speaker 5: was wondering would it be better to have it in
21:34
Speaker 5: cash or have it as an ETF or an index fund?
21:39
Speaker 4: Love the show. Thank you?
21:41
Speaker 2: Oh, I love you too. That's so nice. Thank you.
21:44
Speaker 2: I love people when they tell me that they love me,
21:46
Speaker 2: me too. It's always nice to hear. Really needy. Please
21:50
Speaker 2: keep telling me that my ego needs This is a
21:54
Speaker 2: really interesting one and I feel like we've answered it
21:56
Speaker 2: before on the podcast, but obviously not everyone listens to
21:58
Speaker 2: every single podcast. Who would do that, Jessica Ricky, not
22:02
Speaker 2: me like a crazy person. But I think it's an
22:05
Speaker 2: interesting question because from a pragmatic point of view, like
22:09
Speaker 2: taking off my finance hat and looking at it, you go,
22:12
Speaker 2: oh my gosh, I hate the idea that my money
22:14
Speaker 2: would just be sitting there not making a return. But
22:17
Speaker 2: what we actually want to do is look at it properly,
22:20
Speaker 2: like what is the job of your emergency fund? Like
22:23
Speaker 2: your emergency fund purely exists to be accessible in any emergency.
22:28
Speaker 2: It needs to be easily accessible, it needs to be
22:31
Speaker 2: always there. It needs to be that strong dependenceteed that
22:34
Speaker 2: you know might not be doing a whole heap of work,
22:37
Speaker 2: but when they work, they work really hard. It's kind
22:39
Speaker 2: of like the security guard, Like sometimes you see them
22:41
Speaker 2: wandering around not doing all that much, like, yo, what
22:43
Speaker 2: are they up to? But if the proverbial hits the fan,
22:47
Speaker 2: they're there. They got you. You say, it's not good.
22:49
Speaker 2: That's exactly what your emergency fund is doing, right, Like
22:52
Speaker 2: It's one of those things that I totally get that
22:54
Speaker 2: you want it to be working hard, but I think
22:57
Speaker 2: we need to acknowledge that your emergency fund is working
23:00
Speaker 2: hard by being in cash. It is doing exactly what
23:03
Speaker 2: it needs to do. And it's actually really risky investing
23:06
Speaker 2: it because let's say we use Julie's example and she said,
23:09
Speaker 2: should it be in an ETF? Okay, well, no problems.
23:12
Speaker 2: Let's say you have a ten thousand dollar emergency fund.
23:14
Speaker 2: What if the share market goes down, that ten thousand
23:17
Speaker 2: dollar emergency fund is now no longer worth ten thousand dollars.
23:20
Speaker 2: We have seen the market become a bear market, which
23:23
Speaker 2: means a drop of twenty percent on average across the market,
23:26
Speaker 2: which means your ten thousand dollars is now worth eight
23:28
Speaker 2: thousand dollars if the proverbial hit the fan during that
23:32
Speaker 2: period of time, which let's be honest and look at
23:35
Speaker 2: the statistics of it. If your job is going to
23:37
Speaker 2: be at risk or anything is going to happen, unfortunately,
23:40
Speaker 2: it's probably when the share market's not doing that well,
23:43
Speaker 2: you are going to be in a position where you
23:44
Speaker 2: need to access that money. You are now crystallizing a loss,
23:47
Speaker 2: so you've instantly lost twenty percent, which means you've lost
23:50
Speaker 2: two grand my friends. If you decide to take that
23:53
Speaker 2: money out of the account, but you can't get it today,
23:56
Speaker 2: you have to go onto your share trading platform or
23:59
Speaker 2: call your financial advisor, or transact in the way that
24:02
Speaker 2: you purchased it, go online, submit a claim to sell
24:04
Speaker 2: down your portfolio. So that's day one. Day two, the
24:08
Speaker 2: company that you're with or your share portfolio manager sells
24:11
Speaker 2: down your shares, and then on day three it will
24:13
Speaker 2: be transferred back to your account. Very likely that it's
24:16
Speaker 2: not within the same banking system, so it's going to
24:18
Speaker 2: take another day. So that's three or four days before
24:21
Speaker 2: that money hits your account. If things go to plan,
24:24
Speaker 2: if you're not loitering around and you know, wondering which
24:27
Speaker 2: shares to sell or making decisions like it could stretch
24:30
Speaker 2: out to more than a week. And if there's any
24:32
Speaker 2: bumps along the road, like your financial advisor needs you
24:34
Speaker 2: to sign a form or ask a question or do
24:36
Speaker 2: something like that, is time between you and having access
24:39
Speaker 2: to an emergency fund, and the emergency has already happened.
24:42
Speaker 2: Like that, to me is not a good use of it.
24:44
Speaker 2: And I think what we need to do is really
24:46
Speaker 2: see money working in the way that it needs to work.
24:50
Speaker 2: It doesn't always have to be returning the most, but
24:53
Speaker 2: what it has to be doing is doing a job.
24:55
Speaker 2: And I say this all the time, And when I've
24:57
Speaker 2: talked about like my budget and Cashlow Master Class, I
25:00
Speaker 2: always talk about having a cash hub and then delegating
25:03
Speaker 2: money from that cash hub so that every single dollar
25:06
Speaker 2: you have works as hard for you as you do
25:08
Speaker 2: for it. That does not mean that it is returning
25:11
Speaker 2: the most amount of money. That might mean it is
25:14
Speaker 2: sitting in its emergency fund doing its job of protecting
25:17
Speaker 2: you and making you feel safe. So from my perspective,
25:21
Speaker 2: we wouldn't ever invest our emergency fund. And that's where
25:24
Speaker 2: I will always you know, be very steadfast. I don't
25:27
Speaker 2: believe in it. My emergency fund is definitely sitting in cash. Interestingly, though,
25:32
Speaker 2: my emergency fund is in a offset account for my mom.
25:35
Speaker 2: I was gonna say, is an offset a good alternative
25:38
Speaker 2: if you have a mortgage, which is a big if.
25:40
Speaker 2: But if you have a mortgage alternative, Yeah, it's not
25:43
Speaker 2: a bad idea. It's offsetting my mortgage, which is good.
25:46
Speaker 2: But the reason I'm happy with that is the bank
25:48
Speaker 2: doesn't have any say over what that money does or
25:52
Speaker 2: how it works. I can access that because it's basically
25:55
Speaker 2: a savings account. It's just as easy. It just means
25:57
Speaker 2: that that savings account is linked to your moretgage and
26:00
Speaker 2: offsets the interest money win. The same is not true
26:04
Speaker 2: for a redraw account on a mortgage. So I've had
26:07
Speaker 2: the question before, like, oh, V well, I only have redraws.
26:09
Speaker 2: Should I put my emergency fund in that? And the
26:12
Speaker 2: answer from my perspective would be no, because when you
26:15
Speaker 2: put money onto your mortgage, you're paying off your mortgage,
26:17
Speaker 2: and then you essentially can redraw or loan. Redraw just
26:21
Speaker 2: sounds sexier and it doesn't sound like a loan, but
26:23
Speaker 2: you can loan the money back from your mortgage. However,
26:27
Speaker 2: when financial times become a little bit tumultuous, banks sometimes go, oh, Jess,
26:32
Speaker 2: you might have paid an extra one hundred grand off
26:33
Speaker 2: your mortgage. We're actually going to cap that. You can't
26:35
Speaker 2: take that money back out and redraw it. We're actually
26:38
Speaker 2: going to cap it at ten grand. And that has
26:40
Speaker 2: happened a heap of times where people's redraws have been
26:44
Speaker 2: decreased because banks are like, oh, we need to keep
26:46
Speaker 2: as much cash as possible in the bank. We don't
26:48
Speaker 2: want people taking it out, whereas they don't have that
26:51
Speaker 2: same conviction or authority over an offset account. So an
26:54
Speaker 2: offset account is literally a savings account that is linked
26:57
Speaker 2: to your mortgage in a positive way, whereas it redraw
27:00
Speaker 2: offer rates in a very different way. People often see
27:03
Speaker 2: them as likea like flack or same same and I mean,
27:06
Speaker 2: you do you, but what I want you to do
27:08
Speaker 2: is be educated. So from my perspective, no, I wouldn't
27:11
Speaker 2: invest in emergency account in an ETF because I want
27:14
Speaker 2: you to have immediate access to that cash in the
27:16
Speaker 2: event of an emergency NOFET. Sorry I didn't let anybody.
27:19
Speaker 4: Else be Ah, that was good.
27:20
Speaker 2: I have nothing else to clear. Yeah, because you guys
27:23
Speaker 2: have heard that round from me.
27:24
Speaker 3: I'm sorry, I'm sorry.
27:27
Speaker 2: All right, let's go, let's go grab a drink because
27:29
Speaker 2: we've got to celebrate gking absolutely.
27:31
Speaker 4: Alrighty guys.
27:32
Speaker 3: Before we do the boring but important stuff, please remember
27:35
Speaker 3: that the advice shared on She's on the Money is
27:37
Speaker 3: general in nature and does not consider out your individual circumstances.
27:41
Speaker 4: She's on the Money.
27:41
Speaker 3: Exists purely for educational purposes and should not be relied
27:45
Speaker 3: upon to make an investment or a financial decision. And
27:48
Speaker 3: we promise Victoria Devine and She's on the Money are
27:51
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27:56
Speaker 3: seven zero nine seven seven nine seven zero four nine
27:59
Speaker 3: AFOSL two three six five two three. See you next week, guys,
28:02
Speaker 3: See you next week, guys,