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Ahh, Afterpay · She's On The Money

• 0:00
  Speaker 1: She's on the Money.
• 0:02
  Speaker 2: She's on the Money.
• 0:20
  Speaker 3: Hello, and welcome to She's on the Money, the podcast
• 0:22
  Speaker 3: for millennials who want financial freedom.
• 0:25
  Speaker 4: My name is Annabel Lee.
• 0:26
  Speaker 3: I'm a law student who wants to get better at
• 0:28
  Speaker 3: all things money, and to do that, I've listened to
• 0:30
  Speaker 3: the help of my friend and money expert Victoria Divine.
• 0:33
  Speaker 1: Hello Victoria, Hi.
• 0:34
  Speaker 5: Hi.
• 0:35
  Speaker 4: First of all, we just want to say a huge
• 0:37
  Speaker 4: thank you to everyone who listened to our first episode.
• 0:40
  Speaker 4: That was so.
• 0:40
  Speaker 6: Unexpected, absolutely unexpected.
• 0:43
  Speaker 4: Very overwhelmed all the emotions.
• 0:45
  Speaker 5: Honestly, I did not expect the reception that we had,
• 0:48
  Speaker 5: but I think it really validates.
• 0:50
  Speaker 6: Why we're here.
• 0:51
  Speaker 3: We actually had a listener post something to her Instagram
• 0:54
  Speaker 3: story and tag us. Her name was Shylin shay Ln.
• 0:58
  Speaker 3: I'm sorry if I'm butchering your name. She gave herself
• 1:01
  Speaker 3: a wax burn on her upper lip by deciding to
• 1:04
  Speaker 3: do an at home wax I think she was.
• 1:08
  Speaker 6: I saw that. I felt so awful.
• 1:09
  Speaker 5: I replied to her Instagram story pretty quickly. I reposted
• 1:14
  Speaker 5: it because it was quite funny. But at the same time,
• 1:16
  Speaker 5: have I started something.
• 1:18
  Speaker 4: Am I a responsibility for all the burns?
• 1:20
  Speaker 5: I'll take responsibility for my financial advice, but I'm not
• 1:23
  Speaker 5: sure about my beauty advice.
• 1:24
  Speaker 3: She's an all round expert, guys, not just a no,
• 1:26
  Speaker 3: don't take it, okay Victoria. Today we're going to talk
• 1:31
  Speaker 3: about all things after pay. It's every millennial's weakness and
• 1:34
  Speaker 3: something that we all hate to love or love to hate.
• 1:37
  Speaker 3: But before we really dig in, let's kick things off
• 1:39
  Speaker 3: by sharing a money win or my confession from the week.
• 1:42
  Speaker 4: What do you have for me this week?
• 1:43
  Speaker 7: All right?
• 1:44
  Speaker 5: I feel like I have a very exciting money win
• 1:46
  Speaker 5: this week that I only get to have once a year.
• 1:49
  Speaker 5: So it was my birthday yesterday.
• 1:53
  Speaker 1: Thank you.
• 1:54
  Speaker 5: But it meant I didn't pay for anything for the
• 1:56
  Speaker 5: entire day. So I had a fantastic day of going
• 1:59
  Speaker 5: out for and then I went out for dinner with
• 2:02
  Speaker 5: my best friend and yeah, no complaint, no complaints. I
• 2:06
  Speaker 5: had a wonderful day and it cost me nothing. How
• 2:09
  Speaker 5: was your weekend?
• 2:10
  Speaker 6: Do you have a money win?
• 2:11
  Speaker 3: I on the weekend, I went out for dinner with
• 2:14
  Speaker 3: my friends and on my way there. This last week
• 2:17
  Speaker 3: mine was vehicle related, and this week it's also vehicle related.
• 2:20
  Speaker 6: Oh, I see a theme.
• 2:21
  Speaker 3: I was gonna catch a tram but the tram stopped
• 2:26
  Speaker 3: running for some reason, so I de started to catch
• 2:27
  Speaker 3: an Uber. I usually catch the Uber Pool it's a
• 2:30
  Speaker 3: lot cheaper than the other ones, but for some reason
• 2:33
  Speaker 3: I was running.
• 2:33
  Speaker 4: Late and I was in a rush, and my finger.
• 2:35
  Speaker 3: Slipped and I ended up taking the Uber Black.
• 2:39
  Speaker 6: All your fans you on.
• 2:41
  Speaker 3: And I didn't realize until the car pulled up into
• 2:43
  Speaker 3: my street and there was this really fancy driver as well.
• 2:46
  Speaker 4: And he was being really weirdly nice.
• 2:49
  Speaker 3: And then I wropped up to dinner and my friends
• 2:51
  Speaker 3: were waiting outside for me, and they were like, I thought,
• 2:53
  Speaker 3: you just started a money.
• 2:54
  Speaker 4: Podcast, shouldn't you shouldn't you be trying to save money?
• 2:57
  Speaker 4: And I was like, it was an accident. I hoping late,
• 3:00
  Speaker 4: so it was the only way.
• 3:02
  Speaker 6: Maybe you could have said that you just got the
• 3:03
  Speaker 6: free upgrade.
• 3:04
  Speaker 5: Because sometimes on Uber, when I'm ordering Uber x is,
• 3:06
  Speaker 5: I get upgraded like Uber select or Uber Black.
• 3:09
  Speaker 4: That is never that has never happened.
• 3:10
  Speaker 6: I feel like it's it's playing a game of bingo.
• 3:14
  Speaker 5: But sometimes I get upgraded and I feel a lot
• 3:17
  Speaker 5: fancier than I am. I'll be going to a work
• 3:19
  Speaker 5: meeting and I turn up in like a Chrysler three hundred,
• 3:23
  Speaker 5: and I feel like I find out a bit more
• 3:25
  Speaker 5: gangster than I actually am.
• 3:27
  Speaker 4: Hey you're gangster, Victoria. So now that that's out of
• 3:30
  Speaker 4: the way, let's jump into today's show.
• 3:32
  Speaker 3: Today it's all about after Pay, that pesky by now
• 3:35
  Speaker 3: pay later service that's been attacking the millennial bank balance
• 3:38
  Speaker 3: since it launched in twenty fifteen. Victoria, let's start simply,
• 3:42
  Speaker 3: what's the first thing that comes to mind when you
• 3:44
  Speaker 3: hear the word after pay?
• 3:46
  Speaker 5: I feel like I have a pretty emotive response to this.
• 3:50
  Speaker 4: Give it to me. What is it?
• 3:51
  Speaker 5: Oh, it's it's a really negative feeling. Maybe not a
• 3:54
  Speaker 5: series of words, but I just feel like when you
• 3:58
  Speaker 5: talk about after pay, I meet think bad credit, I
• 4:01
  Speaker 5: think bad debt. And I'm not sure if that's a
• 4:03
  Speaker 5: product of my experiences or my perception of the product.
• 4:08
  Speaker 5: I'm not saying it's right or wrong, but my immediate
• 4:11
  Speaker 5: thoughts are negative.
• 4:12
  Speaker 4: That's the really conflicting thing.
• 4:13
  Speaker 3: A lot of my friends love using up to pay,
• 4:15
  Speaker 3: they use it all the time, but then there are
• 4:17
  Speaker 3: these negative connotations that come with using it.
• 4:19
  Speaker 4: Are those connotations fair? Do you think?
• 4:20
  Speaker 5: I'm not sure if my negative connotations come from a
• 4:23
  Speaker 5: place of financial education, because I work as a financial advisor.
• 4:29
  Speaker 5: Because I also have friends who use it all the
• 4:31
  Speaker 5: time and absolutely love it. I've got one girlfriend who
• 4:34
  Speaker 5: is consistently using after pay on the Iconic and loves
• 4:37
  Speaker 5: the fact that she can get all these dresses, have
• 4:39
  Speaker 5: them delivered to her house, try on the ones that
• 4:41
  Speaker 5: she wants to keep, keep those, and send the rest back.
• 4:44
  Speaker 5: And she's never had to have the whole amount of
• 4:47
  Speaker 5: the cost of all of those dresses come out of
• 4:48
  Speaker 5: her account at any point in time. She's a really
• 4:51
  Speaker 5: good saver. She's someone who is really good with her money.
• 4:54
  Speaker 5: So for her, I don't think after pay is a negative.
• 4:57
  Speaker 5: I think it's something that she's using just because it's
• 5:01
  Speaker 5: convenient for her at that point in time.
• 5:03
  Speaker 4: On that note, let's start with the positives.
• 5:05
  Speaker 3: Then how can after pay be used in a positive
• 5:08
  Speaker 3: way for non essential items?
• 5:10
  Speaker 5: So I think my friend is a good example of
• 5:12
  Speaker 5: someone who's using it but is also in a positive
• 5:14
  Speaker 5: financial position. She's really self aware of when she's using
• 5:18
  Speaker 5: after pay what for why, what her payments are. I
• 5:21
  Speaker 5: could ask her in a split second, what's on your
• 5:24
  Speaker 5: after pay? How much do you owe? And she'd tell
• 5:27
  Speaker 5: me what she owes and why she owes it, Whereas
• 5:30
  Speaker 5: I think a lot of people are actually getting a
• 5:32
  Speaker 5: little bit out of control with after pay, so they
• 5:35
  Speaker 5: are using it as a tool to potentially not take
• 5:38
  Speaker 5: responsibility for their spending. So they're just not looking at
• 5:42
  Speaker 5: the bigger picture. They're not going, all right, well, I
• 5:44
  Speaker 5: still owe two hundred dollars. They're saying, oh, that's easy,
• 5:47
  Speaker 5: that's just fifty dollars. Now I've got fifty dollars in
• 5:49
  Speaker 5: my account. Where there are a lot of people who
• 5:52
  Speaker 5: are in positions where they're using after pay because they
• 5:54
  Speaker 5: don't have the money in their account and they're hoping
• 5:57
  Speaker 5: that by next pay they will have the money.
• 5:59
  Speaker 6: I think it's different. I think it's a different situation.
• 6:02
  Speaker 5: So my friend is really good with using after pay
• 6:05
  Speaker 5: and uses it in a way that benefits her financial
• 6:09
  Speaker 5: position because she wants to not dip into her savings
• 6:13
  Speaker 5: to afford something that she knows next month she's going
• 6:15
  Speaker 5: to have the money for. So I feel like some
• 6:17
  Speaker 5: people are using it as a tool to budget they're spending.
• 6:20
  Speaker 5: So instead of spending two hundred dollars right now out
• 6:22
  Speaker 5: of your pay cycle, you get to break it up
• 6:25
  Speaker 5: and if that's something that you're using as a way
• 6:27
  Speaker 5: of budgeting, then fantastic.
• 6:29
  Speaker 6: But I also think.
• 6:29
  Speaker 5: There are a lot of people who are getting into
• 6:31
  Speaker 5: a lot of trouble because they're not budgeting around that,
• 6:34
  Speaker 5: they're not taking responsibility for their financial position, and they're
• 6:38
  Speaker 5: for example, purchasing an item for two hundred dollars and
• 6:41
  Speaker 5: potentially only seeing it as fifty dollars. Now, I will
• 6:44
  Speaker 5: worry about the rest later, and when later comes, they've
• 6:47
  Speaker 5: already made a number of other after pay purchases.
• 6:49
  Speaker 6: And things kind of compound out of control.
• 6:52
  Speaker 3: Yeap, So it requires more effort I guess to use
• 6:54
  Speaker 3: it responsibly, which a lot of us. I think maybe
• 6:56
  Speaker 3: I'm too lazy to think so far ahead.
• 6:58
  Speaker 5: I think it's I don't know if it's lazy, or
• 7:01
  Speaker 5: if our generation have their heads in the sand, or
• 7:04
  Speaker 5: if it's just or if we're being enabled to make
• 7:07
  Speaker 5: financial decisions in the moment. So personally, I really like
• 7:11
  Speaker 5: after pay as a company. As a business, It's revolutionized
• 7:15
  Speaker 5: the way that purchasing online is happening. It's even revolutionized
• 7:18
  Speaker 5: the way purchasing in store is happening. However, I don't
• 7:23
  Speaker 5: think people are taking responsibility for their financial position at
• 7:27
  Speaker 5: all by using it.
• 7:28
  Speaker 6: So I think something.
• 7:29
  Speaker 5: Else that we probably should touch on really early on
• 7:31
  Speaker 5: in this conversation about after pay is that it's about
• 7:34
  Speaker 5: to be rolled out into GP clinics.
• 7:37
  Speaker 4: I didn't know that.
• 7:38
  Speaker 5: Yeah, it's about to be rolled out into situations where
• 7:41
  Speaker 5: people who potentially don't have access to, you know, two
• 7:45
  Speaker 5: or three hundred dollars they need for a medical procedure
• 7:47
  Speaker 5: or a scan or a specialist appointment that they need,
• 7:51
  Speaker 5: are going to be able to access after pay. And
• 7:53
  Speaker 5: I think it's pretty classest of us to think that
• 7:56
  Speaker 5: after pay is only for buying retail items.
• 8:00
  Speaker 3: So I'm actually reading now that after pay is expanding
• 8:03
  Speaker 3: its footprints into GP clinics and radiology and pharmacis and
• 8:06
  Speaker 3: all that. But it's already been rolled out into over
• 8:08
  Speaker 3: eleven hundred dentists and optometrists nationally.
• 8:11
  Speaker 4: So what does this mean exactly?
• 8:12
  Speaker 3: Does it leave people with more out of pocket expenses
• 8:15
  Speaker 3: or is it better for them in the long term.
• 8:17
  Speaker 5: I think it's a really interesting question because used appropriately,
• 8:20
  Speaker 5: after pay could be a tool that enables people to
• 8:23
  Speaker 5: get access to medical procedures that they need in the
• 8:26
  Speaker 5: here and now. Whereas I think it could potentially leave
• 8:30
  Speaker 5: more vulnerable patients in a position where they're paying for
• 8:33
  Speaker 5: services they might not need, or choose elective services that
• 8:38
  Speaker 5: are not within their budgets. So, you know, you mentioned
• 8:41
  Speaker 5: that after pay has rolled out in eleven hundred dentists.
• 8:44
  Speaker 5: I think that's fantastic because dental hygiene is so important.
• 8:48
  Speaker 6: You know, we had a big giraffe that used to
• 8:50
  Speaker 6: come around to.
• 8:51
  Speaker 5: School, yes, Harold, So he used to come around to
• 8:55
  Speaker 5: schools and talk about how important it was. But the
• 8:58
  Speaker 5: one thing I think of when I think of dentists
• 9:00
  Speaker 5: how expensive it is, But how are people actually using
• 9:03
  Speaker 5: it in dentists. Are they going and getting their cavity
• 9:05
  Speaker 5: filled or they're going and getting some really nice veneers.
• 9:08
  Speaker 5: What does that look like in terms of how people
• 9:11
  Speaker 5: are using it? So I guess it really comes down
• 9:13
  Speaker 5: to whether it's being used for GP clinics, your pharmacy.
• 9:16
  Speaker 6: Or the dentist.
• 9:17
  Speaker 5: It really comes down to how people are using it,
• 9:19
  Speaker 5: whether they're using it responsibly or maybe they need some
• 9:22
  Speaker 5: more education around it.
• 9:23
  Speaker 3: So yeah, So what I'm gauging here is you can't
• 9:25
  Speaker 3: telp someone not to use it at all.
• 9:27
  Speaker 1: Absolutely not.
• 9:28
  Speaker 5: And it's not a bad service at the end of
• 9:30
  Speaker 5: the day. It's a bit like getting your car fixed.
• 9:32
  Speaker 6: Right.
• 9:32
  Speaker 5: Say I go into get my car serviced and I
• 9:35
  Speaker 5: was expecting it to be one hundred and fifty dollars
• 9:37
  Speaker 5: check up, but they tell me.
• 9:39
  Speaker 6: That my break discs are gone.
• 9:41
  Speaker 5: Is it a smart thing for me to leave the
• 9:43
  Speaker 5: car service place without having paid for that? Am I
• 9:47
  Speaker 5: putting myself at risk? Or am I better off if
• 9:49
  Speaker 5: I use a service like after pay where I can
• 9:52
  Speaker 5: pay a lower upfront fee for a service that I'm
• 9:55
  Speaker 5: going to need that puts my safety first, and then
• 9:59
  Speaker 5: pay it off over the long term by factoring it
• 10:01
  Speaker 5: into my budget. Is that where this should be at
• 10:04
  Speaker 5: Or Am I using it because I wanted new rims
• 10:06
  Speaker 5: on my car?
• 10:07
  Speaker 3: And that's maybe something that an individual has to assess themselves.
• 10:10
  Speaker 4: But it is so popular. We do know that. We
• 10:12
  Speaker 4: know that over two million Australians have used after pay.
• 10:15
  Speaker 3: Why do you think modern day lay by companies are
• 10:17
  Speaker 3: so popular, particularly amongst women. I know a lot of
• 10:20
  Speaker 3: my girlfriends use it, but I don't know if a
• 10:22
  Speaker 3: lot of my guy friends do.
• 10:23
  Speaker 5: I think it has a lot to do with impulse purchasing,
• 10:27
  Speaker 5: But also kind of that keeping up with the Kardashians style.
• 10:30
  Speaker 3: Well, how funny you mentioned that Kardashians Kim Kardashian's brand
• 10:34
  Speaker 3: KKW Beauty was one of the first adopters of after
• 10:36
  Speaker 3: pay in the US, which shows a lot about how
• 10:39
  Speaker 3: social media plays a role and celebrity plays a role
• 10:42
  Speaker 3: in this whole after pay thing. I think it's really interesting,
• 10:45
  Speaker 3: and I've been speaking a lot with clients recently about
• 10:47
  Speaker 3: Instagram culture and wanting to keep up with friends, and
• 10:50
  Speaker 3: you know, we see these memes floating around Instagram and
• 10:53
  Speaker 3: Facebook which are along the lines of how to millennials
• 10:57
  Speaker 3: afford their lifestyles and it being a game of guessing.
• 11:00
  Speaker 3: I think it's really interesting that we.
• 11:02
  Speaker 5: Have all of this pressure on top of us to,
• 11:05
  Speaker 5: you know, have that Gucci belt or have a pair
• 11:07
  Speaker 5: of Gucci sneakers and keep up with the trends that
• 11:10
  Speaker 5: Instagram influences are putting on the table for us, when
• 11:14
  Speaker 5: in reality, that's not normal. It is not normal to
• 11:16
  Speaker 5: walk around with a seven hundred dollar belt around your
• 11:19
  Speaker 5: waist when you're earning fifty thousand dollars, But a service
• 11:22
  Speaker 5: like after pay makes it a lot easier to justify
• 11:25
  Speaker 5: it to yourself. I think it's dangerous in that way
• 11:28
  Speaker 5: because it's enabling people to make purchases that are outside
• 11:31
  Speaker 5: of their means, and they are not not giving it
• 11:34
  Speaker 5: long term thought because instant gratification is such a stronger
• 11:38
  Speaker 5: feeling than long term savings, and I think people really
• 11:42
  Speaker 5: need to step back and have a think about is
• 11:44
  Speaker 5: this a purchase that I would make in six weeks?
• 11:47
  Speaker 5: You know, you see a really beautiful dress online and
• 11:50
  Speaker 5: after pay makes it really.
• 11:51
  Speaker 6: Easy to purchase.
• 11:52
  Speaker 5: Is it something that in six weeks you would still
• 11:55
  Speaker 5: purchase for yourself if not, have a think about it
• 11:58
  Speaker 5: and regardless of whether you can have to pay it now,
• 12:00
  Speaker 5: maybe sit on that decision for twenty four hours, have
• 12:03
  Speaker 5: a think about it.
• 12:04
  Speaker 6: Is it aligned to my goals? Is it aligned to
• 12:06
  Speaker 6: what I need to do? Do I really need a
• 12:08
  Speaker 6: new dress for the weekend?
• 12:09
  Speaker 3: A lot of the time when I leave it, I
• 12:10
  Speaker 3: just forget about the product, and I don't actually like
• 12:12
  Speaker 3: I don't actually need it, I don't want it in
• 12:14
  Speaker 3: a few days or weeks down the track.
• 12:16
  Speaker 5: Yeah. I posted something the other day on our Instagram
• 12:19
  Speaker 5: actually about putting twenty four hours between you and your spending.
• 12:22
  Speaker 4: I saw that.
• 12:22
  Speaker 5: Yeah, and making sure that you're asking yourself a couple
• 12:25
  Speaker 5: of questions before purchasing it. And I guess it's my
• 12:28
  Speaker 5: way of trying to talk people out of purchases they
• 12:30
  Speaker 5: don't need to make. But at the same time, these
• 12:32
  Speaker 5: are things that we all should be thinking about before
• 12:35
  Speaker 5: purchasing something that is non essential.
• 12:38
  Speaker 3: So do you think then that after Pay would be
• 12:40
  Speaker 3: thriving in a time where Instagram didn't exist or wasn't
• 12:43
  Speaker 3: as popular.
• 12:44
  Speaker 5: I think that it would be silly of me to
• 12:45
  Speaker 5: say that this product wouldn't be something that people wanted
• 12:48
  Speaker 5: to use, regardless of the time that we're in. Like,
• 12:51
  Speaker 5: think back to when I was, you know, five or six,
• 12:54
  Speaker 5: and my mom used to put you toys on layby
• 12:57
  Speaker 5: at the Target toy sale so that she could lie
• 13:00
  Speaker 5: them up for Christmas. And I remember that being such
• 13:02
  Speaker 5: an exciting thing to do, where, you know, we'd get
• 13:04
  Speaker 5: to go pick toys for our cousins and I'd get
• 13:07
  Speaker 5: to pick a toy for my sister, and we'd put
• 13:09
  Speaker 5: it all on layby. Layby is when you get the
• 13:12
  Speaker 5: product after you pas. Yes, So after pay is essentially
• 13:16
  Speaker 5: a reverse layby, So it's by now pay later. I
• 13:20
  Speaker 5: think it does take the effort out of the transaction,
• 13:22
  Speaker 5: and it really goes back to that instant versus delayed gratification.
• 13:26
  Speaker 5: So layby, you would think about what you were going
• 13:29
  Speaker 5: to purchase. You would go, all right, I need this product.
• 13:32
  Speaker 5: I can have it in eight weeks. I can have
• 13:34
  Speaker 5: it in ten weeks with you know, ten payments or
• 13:36
  Speaker 5: four payments or however many payments it was going to take.
• 13:39
  Speaker 5: But your gratification on that product was delayed because you
• 13:43
  Speaker 5: didn't receive the product until you had fulfilled the goal
• 13:46
  Speaker 5: of paying off that purchase. Whereas after pay works in reverse,
• 13:50
  Speaker 5: you get the product up front, you get to satisfy
• 13:53
  Speaker 5: your instant gratification. However, you're still stuck with a bill
• 13:57
  Speaker 5: for something that maybe in three or four weeks you're
• 13:59
  Speaker 5: not you using or you didn't feel like you needed,
• 14:02
  Speaker 5: and because it's already used, you can't return it.
• 14:04
  Speaker 4: It's not worth the pain that you go through off exactly.
• 14:07
  Speaker 5: Whereas a layby is kind of building up to a
• 14:10
  Speaker 5: purchase and you're you know, chipping away at a larger goal,
• 14:13
  Speaker 5: and then that item is the reward for the goal
• 14:16
  Speaker 5: that you've put in place for yourself. So I feel
• 14:18
  Speaker 5: like it takes that away. But I think it would
• 14:21
  Speaker 5: be naive of me to say that after pay wouldn't
• 14:24
  Speaker 5: exist in a world where Instagram didn't because layby was
• 14:28
  Speaker 5: and used to be so popular.
• 14:30
  Speaker 3: So what do you think young people aren't aware of
• 14:32
  Speaker 3: then when it comes to using after pay, because so
• 14:34
  Speaker 3: many young people are using it, perhaps maybe irresponsibly at times.
• 14:38
  Speaker 5: So we've touched on why it satisfies instagratification and how
• 14:42
  Speaker 5: people aren't really considering the ongoing monthly payments. We've also
• 14:46
  Speaker 5: talked about how people are using it effectively, like my
• 14:49
  Speaker 5: friend how she's, you know, putting it into a budget
• 14:52
  Speaker 5: and making sure that one after pay debt is paid
• 14:55
  Speaker 5: off before she even considers a new one. I don't
• 14:58
  Speaker 5: think people understand how it impacts their credit rating. I
• 15:00
  Speaker 5: don't think people understand how afterpay affects their goals, how
• 15:05
  Speaker 5: it affects their future wealth, how it affects what they're
• 15:08
  Speaker 5: planning to do for the rest of their lives. And
• 15:10
  Speaker 5: that sounds quite dramatic, but at the same time, if
• 15:13
  Speaker 5: you're living in a world where you are getting things immediately,
• 15:17
  Speaker 5: you also adopt that feeling onto larger goals so I
• 15:21
  Speaker 5: can buy a dress right now. This is really great.
• 15:24
  Speaker 5: It's here if you've bought it off the iconics sometimes
• 15:27
  Speaker 5: within the day. I'm never going to afford a house
• 15:30
  Speaker 5: because we don't have the commitment to long term goals
• 15:32
  Speaker 5: and saving for five, six, seven years for your first home,
• 15:36
  Speaker 5: even ten years for your first home then seems like
• 15:38
  Speaker 5: a really ridiculous thing to do.
• 15:40
  Speaker 4: You mentioned credit rating. We're going to talk about that
• 15:42
  Speaker 4: right after we hear from you. Guys.
• 15:54
  Speaker 3: Hi, there, you've called the ses on the Money Hotline.
• 15:57
  Speaker 3: Do you have a money problem you want help solving.
• 15:59
  Speaker 3: Do you have a money dilemma you just.
• 16:00
  Speaker 4: Want to chat about. Victoria is here to help.
• 16:02
  Speaker 3: Every week we'll be playing your hotline questions to help
• 16:05
  Speaker 3: make sense of the money mess you may have found
• 16:07
  Speaker 3: yourself in. Give us a call on oh four three
• 16:09
  Speaker 3: five two nine three double eighty six.
• 16:11
  Speaker 4: And you might find yourself on the show.
• 16:13
  Speaker 3: But for now, here's a whole bunch of you with
• 16:15
  Speaker 3: the same issue.
• 16:23
  Speaker 1: Hi.
• 16:23
  Speaker 8: Girls, I'm twenty and I think I'm the master pay
• 16:27
  Speaker 8: I picked. I currently owe around seven hundred and eighty
• 16:30
  Speaker 8: dollars in upcoming payments, which is definitely more than I
• 16:33
  Speaker 8: have to my name to this date. I think it's
• 16:37
  Speaker 8: difficult because I think for me, it's a lot about
• 16:39
  Speaker 8: keeping up and it's become a bit of a coping
• 16:40
  Speaker 8: mechanism to view with the fact that I don't have
• 16:43
  Speaker 8: the means to remain as you know, relevant in terms
• 16:46
  Speaker 8: of clothes and fashion. I've also been buying flights from
• 16:48
  Speaker 8: a recently bit ad hoc. I'd love some advice on
• 16:52
  Speaker 8: how to college. I know it's you know, can't.
• 16:54
  Speaker 9: Really be as easy as just though it be apup
• 16:56
  Speaker 9: in practice.
• 16:56
  Speaker 8: And I think it would help me kind of get
• 16:58
  Speaker 8: out of debt, which would be great considering the students
• 17:00
  Speaker 8: not down in a lot of money thanks so much.
• 17:03
  Speaker 3: Like the first episode, so it sounds like this listener
• 17:06
  Speaker 3: is aware of the fact she's in a bit of strife.
• 17:08
  Speaker 4: Does this listener's story stuck up with the worst you've
• 17:11
  Speaker 4: ever heard? Like are the other horror stories you've come across?
• 17:14
  Speaker 5: I think it's actually quite common to be in that position.
• 17:17
  Speaker 5: Like I'm not going to say it's the worst, but
• 17:19
  Speaker 5: it's also not the best. So I've come across people
• 17:24
  Speaker 5: in the last year or so who have been paying
• 17:27
  Speaker 5: back thousands of dollars on after pay because it's all
• 17:30
  Speaker 5: added up. And I'm not saying that these people just
• 17:33
  Speaker 5: go out and get an after pay account and then
• 17:35
  Speaker 5: a week later they're able to access thousands of dollars
• 17:38
  Speaker 5: worth of credit. These things creep up on you over time.
• 17:41
  Speaker 5: So with after pay, I cannot say from experience because
• 17:44
  Speaker 5: I haven't actually used it. As far as I'm aware,
• 17:47
  Speaker 5: each time you transact with after pay, your credit level increases.
• 17:52
  Speaker 5: Your credit can essentially increase over time. So this person
• 17:56
  Speaker 5: would have, you know, started with a three hundred dollars
• 17:58
  Speaker 5: and then it would have gone to four or five,
• 18:00
  Speaker 5: and now she's up to a point where she is
• 18:02
  Speaker 5: paying back one thousand dollars a month.
• 18:04
  Speaker 6: So this person's situation.
• 18:06
  Speaker 5: Isn't completely out of out of line with what I've
• 18:09
  Speaker 5: heard previously, but I do think it is time for
• 18:12
  Speaker 5: her to potentially just close down her after pay account.
• 18:14
  Speaker 5: If you can't use it responsibly, if it is not
• 18:17
  Speaker 5: contributing to you bettering your life in a non possessional way,
• 18:22
  Speaker 5: I think it needs to go.
• 18:24
  Speaker 3: Okay, So there are rumors floating around that after pay
• 18:27
  Speaker 3: debt can I hurt your chances of getting a mortgage?
• 18:29
  Speaker 1: Is that true?
• 18:29
  Speaker 4: What does it do to your credit rating?
• 18:31
  Speaker 5: I think it's really interesting because so many people are
• 18:35
  Speaker 5: going to have an opinion on this because they are
• 18:37
  Speaker 5: using after pay and they had no problem getting their
• 18:40
  Speaker 5: mortgage through or they had no problem refinancing.
• 18:43
  Speaker 6: And you hear a lot.
• 18:44
  Speaker 5: Of anecdotal stories, especially on threads in our Facebook group,
• 18:48
  Speaker 5: about people saying, oh, well, I had no problem with it,
• 18:51
  Speaker 5: just tell your mortgage broker, and then other people saying, oh,
• 18:54
  Speaker 5: my mortgage broker told me to close down the account.
• 18:57
  Speaker 5: So when you're talking about credit and it potentially impacting
• 19:00
  Speaker 5: you being able to get a mortgage, they are saying
• 19:03
  Speaker 5: that for a couple of reasons. So after Pay is
• 19:05
  Speaker 5: a line of credit, regardless of what you would like
• 19:08
  Speaker 5: to classify it as, regardless of what their website says,
• 19:11
  Speaker 5: after Pay is a line of credit, and it will
• 19:14
  Speaker 5: impact whether you're able to finance something bigger. So that
• 19:18
  Speaker 5: means that if you're committed to a monthly repayment, it's
• 19:21
  Speaker 5: going to need to be taken into consideration when working
• 19:24
  Speaker 5: out how much you can afford on a mortgage each
• 19:26
  Speaker 5: month and whether a bank is willing to lend to you.
• 19:29
  Speaker 5: So when we talk about credit and what mortgage brokers
• 19:32
  Speaker 5: look at and what the banks look at.
• 19:33
  Speaker 6: They actually look.
• 19:34
  Speaker 5: At the three seas of credit, which is potentially something
• 19:37
  Speaker 5: that people haven't heard of before. So these include four factors, character, capacity, capital,
• 19:43
  Speaker 5: and conditions. And I think after pay also plays a
• 19:46
  Speaker 5: lot to character. So character meaning what type of person
• 19:51
  Speaker 5: are you? Are you the type of person that does
• 19:52
  Speaker 5: take up fast loans, You're the type of person that
• 19:55
  Speaker 5: is relying on after pay to service debts and immediate needs.
• 19:59
  Speaker 5: Are you after inst gratification? If so, banks are judging
• 20:03
  Speaker 5: on that. They are looking especially in this time after
• 20:07
  Speaker 5: a Royal commission, after things have been cracked down on,
• 20:09
  Speaker 5: people are looking at your character and whether you're someone
• 20:12
  Speaker 5: that they do want to lend money to. So it's
• 20:15
  Speaker 5: not just about whether you are good with your money
• 20:17
  Speaker 5: and budgeting it. After pay is seen as a tool
• 20:20
  Speaker 5: that is used by people who can't budget them finances effectively.
• 20:24
  Speaker 5: And if you're looking for a home loan, do you
• 20:26
  Speaker 5: want to be put in that bucket?
• 20:27
  Speaker 3: No, that was a hypothetical question, but no I don't.
• 20:30
  Speaker 3: So you've actually mentioned this to me before. Off Mike
• 20:33
  Speaker 3: and I found it really interesting what happens when you
• 20:35
  Speaker 3: don't disclose your after pay debt to the bank.
• 20:38
  Speaker 5: It's essentially undisclosed personal debt. If you don't tell a
• 20:42
  Speaker 5: bank about a debt that you have, they're not going
• 20:45
  Speaker 5: to be very happy about it. I think you know,
• 20:47
  Speaker 5: there are so many different factors that come into this,
• 20:49
  Speaker 5: but not disclosing debt is a massive red flag to
• 20:52
  Speaker 5: a bank. If you're not disclosing your after pay, why
• 20:55
  Speaker 5: didn't you disclose it? I think it's one thing to go, Okay,
• 20:58
  Speaker 5: I have after pay, and your mortgage broker might go
• 21:00
  Speaker 5: all right, Annabelle, if you're applying for this mortgage, you've
• 21:04
  Speaker 5: got after pay, let's put together a letter that says
• 21:06
  Speaker 5: why you use after pay and that you've closed the
• 21:08
  Speaker 5: account and that account has been closed because you no
• 21:10
  Speaker 5: longer use it and you just used it to purchase
• 21:12
  Speaker 5: a couple of things. But you're good otherwise financially. That's
• 21:16
  Speaker 5: very different to you hiding something again that place to character.
• 21:20
  Speaker 6: Have you told it?
• 21:20
  Speaker 5: No?
• 21:21
  Speaker 2: Right?
• 21:21
  Speaker 4: Yeah?
• 21:21
  Speaker 3: No?
• 21:21
  Speaker 6: Have you told them everything you needed to tell them?
• 21:24
  Speaker 5: So? I have people in the she'es on the mining
• 21:26
  Speaker 5: community that I've had conversations with who have had their
• 21:29
  Speaker 5: mortgages declined because they've forgotten to disclose that they have
• 21:32
  Speaker 5: after pay debt because they didn't see it as debt.
• 21:35
  Speaker 5: They went through the application process, they filled in how
• 21:39
  Speaker 5: many credit cards they had, they filled in whether they
• 21:41
  Speaker 5: had a personal loan or not. But these people genuinely
• 21:44
  Speaker 5: did not consider after pay as a line of credit,
• 21:47
  Speaker 5: therefore didn't disclose it and unfortunately had their mortgages declined
• 21:52
  Speaker 5: or their applications for loans declined because they didn't tell
• 21:56
  Speaker 5: the bank about it.
• 21:56
  Speaker 3: Of course, that wasn't the only call we got on
• 21:58
  Speaker 3: today's topic. One informed millennials are using after pay in
• 22:01
  Speaker 3: twenty nineteen, meaning a whole lot of you are struggling
• 22:04
  Speaker 3: in the same way.
• 22:12
  Speaker 8: Ki there, my name is Sarah.
• 22:14
  Speaker 9: I'm just interested in, like, if you could discuss some
• 22:17
  Speaker 9: strategies to use services like after pay in a productive way,
• 22:21
  Speaker 9: because the way I've seen it before is kind of
• 22:24
  Speaker 9: just an excuse to kind of be and spend and
• 22:26
  Speaker 9: buy things on a whim.
• 22:28
  Speaker 4: So I was just.
• 22:28
  Speaker 9: Wondering how you can use something like that in a
• 22:30
  Speaker 9: productive way.
• 22:32
  Speaker 7: Thank you. I can't seem to get it into my
• 22:37
  Speaker 7: head that just because I'm buying it on after pay
• 22:39
  Speaker 7: doesn't mean it doesn't cost the same amount that it
• 22:42
  Speaker 7: says on the screen, I seem to think that because
• 22:44
  Speaker 7: I'm after paying something for thirteen ninety five or fortnight
• 22:49
  Speaker 7: or a week, it somehow isn't one hundred dollars or
• 22:53
  Speaker 7: like fifty dollars, And I don't know how to train
• 22:56
  Speaker 7: myself to know this will still cost the same two
• 22:59
  Speaker 7: hundred dollars, just basically swindling myself and making myself paid
• 23:03
  Speaker 7: in the long term. I don't know if that made
• 23:06
  Speaker 7: much sense. I love the podcast, Thanks guys.
• 23:10
  Speaker 10: Hi ladies, Well, my biggest issue is after pay. So
• 23:16
  Speaker 10: after pay is my weakness. It turns into like my
• 23:20
  Speaker 10: little treats. I kind of justify making not ridiculous purchases,
• 23:27
  Speaker 10: but treating myself per se, and I use after pay,
• 23:30
  Speaker 10: and it ends up building up bigger and bigger and bigger,
• 23:34
  Speaker 10: and then it's almost not treating myself and I'm not
• 23:37
  Speaker 10: realizing exactly how much I'm spending. So I'm wanting to
• 23:41
  Speaker 10: advise and try to stop that whole treat yourself situation,
• 23:46
  Speaker 10: but saving money at the same time and not getting
• 23:48
  Speaker 10: into that after pay. Thanks ladies.
• 23:51
  Speaker 5: Ye.
• 23:53
  Speaker 3: Based on how she's on the Money Hotline, it really
• 23:55
  Speaker 3: does seem like many women are struggling with a kind
• 23:58
  Speaker 3: of after pay addiction.
• 24:00
  Speaker 4: Do you think that's an accurate assessment?
• 24:01
  Speaker 1: Victoria?
• 24:02
  Speaker 5: I think it would be an accurate assessment because if
• 24:05
  Speaker 5: people are saying they feel addicted to something, they're saying
• 24:07
  Speaker 5: that they're feeling a rush when they purchase things.
• 24:10
  Speaker 6: So that plays then into the.
• 24:11
  Speaker 5: Psychology of after pay and whether there is a psychology
• 24:15
  Speaker 5: of after pay or whether there's a psychology of instant gratification.
• 24:19
  Speaker 5: So after pay enables us to buy things on a whim,
• 24:23
  Speaker 5: it enables us to not have to part with cash,
• 24:25
  Speaker 5: and parting with cash is really hard. If someone took
• 24:28
  Speaker 5: out of your bank account and gave you, you know,
• 24:31
  Speaker 5: two hundred dollars for the way, and said this is
• 24:32
  Speaker 5: all you can spend on your groceries and your discretionary items,
• 24:36
  Speaker 5: how would you feel having to break a fifty dollar
• 24:38
  Speaker 5: note every time you wanted to purchase something. Most people
• 24:42
  Speaker 5: would be a little bit more reserved in their spending
• 24:44
  Speaker 5: when they genuinely have to hand over cash when they
• 24:47
  Speaker 5: feel as though they are losing something, whereas after pay
• 24:50
  Speaker 5: makes you feel like you're gaining something and not losing
• 24:53
  Speaker 5: a lot.
• 24:53
  Speaker 3: So then let's talk about retraining our activity and habits
• 24:56
  Speaker 3: when it comes to after pay. If women are listening
• 24:58
  Speaker 3: to this and are really struggling under a heap of
• 25:00
  Speaker 3: after paid debt, what would you recommend?
• 25:03
  Speaker 5: I think if they're really struggling, the first thing to
• 25:05
  Speaker 5: do is actually go go back to episode one, do
• 25:09
  Speaker 5: your earn, spend own and O and have a really
• 25:12
  Speaker 5: good think about the goals that you want to put
• 25:14
  Speaker 5: in place for yourself. So let's forget for five minutes
• 25:18
  Speaker 5: that you've got the after paid debt. Have a think
• 25:20
  Speaker 5: about what you want to be achieving. What are you
• 25:22
  Speaker 5: saving for? Are these materialistic things a part of your
• 25:25
  Speaker 5: spending plan? Are they a part of the goals that
• 25:28
  Speaker 5: you're setting yourself for the next twelve months. Once you've
• 25:31
  Speaker 5: worked that out, then have a good think about all right,
• 25:34
  Speaker 5: is this debt in line with what I want to
• 25:36
  Speaker 5: be achieving?
• 25:37
  Speaker 6: Yes it is, No it's not. How does that work?
• 25:40
  Speaker 5: And then work towards your goals as opposed to just
• 25:44
  Speaker 5: seeing after pain isolation. I think this comes back to
• 25:48
  Speaker 5: what we're saying before about women having their heads in
• 25:50
  Speaker 5: the sand and how we've gotten to this space financially
• 25:53
  Speaker 5: as a collective, we're in a position where we want
• 25:56
  Speaker 5: to empower ourselves financially, However, we are doing things that
• 25:59
  Speaker 5: are working completely against our goals. If anyone could sit
• 26:04
  Speaker 5: in front of me and say, Victoria, after pay has
• 26:06
  Speaker 5: helped me achieve my goals by ABC and D, I
• 26:09
  Speaker 5: would be shocked. After pay is such a frivolous thing
• 26:14
  Speaker 5: to use. It enables us to purchase things that we
• 26:17
  Speaker 5: don't necessarily need. I haven't seen anybody in our Facebook
• 26:21
  Speaker 5: group that tells me they're using after pay for things
• 26:23
  Speaker 5: that are essential.
• 26:25
  Speaker 6: I've literally not seen it.
• 26:27
  Speaker 5: People aren't saying, look, Victoria, I'm struggling with my grocery
• 26:31
  Speaker 5: bill and I after paid it. Some of their biggest
• 26:33
  Speaker 5: clients include The Iconic and Kylie Jenner. Are we really
• 26:37
  Speaker 5: spending money on the things that we need or are
• 26:39
  Speaker 5: we spending money on things we just want?
• 26:41
  Speaker 3: I actually read somewhere that True Brand Steve Madden said
• 26:45
  Speaker 3: that not only have their sales increased, so too of
• 26:48
  Speaker 3: the average items and spend per transaction when shopping with
• 26:51
  Speaker 3: after pay. So beforehand purchases were spending a certain amount,
• 26:54
  Speaker 3: and now that after pay has come in, it's noticeable
• 26:56
  Speaker 3: that they've been spending more.
• 26:58
  Speaker 5: I feel like I sound like a broken record, but
• 27:00
  Speaker 5: instant gratification. Why would you want one pair of shoes
• 27:03
  Speaker 5: when you could have two? I want to I do too,
• 27:07
  Speaker 5: because people spending is increasing. I think the average transaction
• 27:11
  Speaker 5: size on after pay at the moment is one hundred
• 27:13
  Speaker 5: and fifty dollars, and that is actually quite high, or
• 27:16
  Speaker 5: I think that's quite high. We don't just walk into
• 27:19
  Speaker 5: a shop and accidentally purchase one hundred and fifty dollar
• 27:22
  Speaker 5: dress or one hundred and fifty dollars a pair of shoes.
• 27:24
  Speaker 5: For me, that purchase is considered and I do go,
• 27:27
  Speaker 5: all right, how many times am I going to wear this?
• 27:28
  Speaker 5: But maybe my take on things and maybe the way
• 27:31
  Speaker 5: I approach finance is different to the norm. Maybe people
• 27:34
  Speaker 5: are spending one hundred and fifty dollars on things, But
• 27:36
  Speaker 5: I think it's time to have a really good think
• 27:38
  Speaker 5: about that and potentially start a culture of change.
• 27:44
  Speaker 3: Okay, now for the fun stuff. Each week, we're bringing
• 27:47
  Speaker 3: you a money dairy.
• 27:48
  Speaker 4: Let's do this.
• 27:52
  Speaker 3: Today's money dary is from a healthcare professional whose relationship
• 27:55
  Speaker 3: with money might make you a little envious. So if
• 27:58
  Speaker 3: I was to introduce myself at a money massquade party,
• 28:01
  Speaker 3: I would say that I'm twenty eight and careful that
• 28:04
  Speaker 3: way because I've always been very conscious of money. Growing
• 28:08
  Speaker 3: up in a household which was very savings focused and
• 28:13
  Speaker 3: there wasn't really a lot of money to go around.
• 28:15
  Speaker 3: It was always something that, yeah, I grew up with
• 28:18
  Speaker 3: a consciousness of and therefore when I started making my
• 28:22
  Speaker 3: own money, I've just always been really careful with it. Okay,
• 28:25
  Speaker 3: So down to the nitty gritty stuff. How much does
• 28:27
  Speaker 3: twenty eight and careful earn? And how much has she saved?
• 28:30
  Speaker 3: I take home approximately ninety thousand dollars a year my
• 28:34
  Speaker 3: savings account. I've got an offset account for my mortgage,
• 28:37
  Speaker 3: so I count that as part of my savings account.
• 28:40
  Speaker 3: So I've got twenty thousand dollars in that, and then
• 28:42
  Speaker 3: I've got around about fifteen hundred save for an emergency,
• 28:46
  Speaker 3: and then maybe another two grand saved. Who feels So
• 28:50
  Speaker 3: we know how twenty eight and Careful gets paid, but
• 28:52
  Speaker 3: what exactly happens to that money after its deposited intero
• 28:55
  Speaker 3: account every fortnight.
• 28:56
  Speaker 1: So the day after I get paid.
• 28:58
  Speaker 3: The money comes directly out of my bank account without me.
• 29:02
  Speaker 3: I've just set up direct EBITs, so I have a
• 29:05
  Speaker 3: sad amount that comes into each of those different accounts
• 29:08
  Speaker 3: every fortnight, So it's not really something that unless I
• 29:12
  Speaker 3: check each fortnight, I don't really keep a track of
• 29:15
  Speaker 3: it necessarily. It's just whatever I have leftover from my
• 29:18
  Speaker 3: pay I use for every day use. I save six
• 29:22
  Speaker 3: hundred and fifty dollars every paycheck and I take home
• 29:27
  Speaker 3: approximately twenty four hundred, so it's around about, yeah, twenty
• 29:32
  Speaker 3: five percent that I'm saving. Now, let's talk about investing.
• 29:36
  Speaker 3: Does twenty eight and Careful invest and if not? Why so?
• 29:39
  Speaker 3: I don't invest as much as I wish I did.
• 29:43
  Speaker 3: I have had stocks in the past, but I don't
• 29:45
  Speaker 3: currently own any. But I do have a raise account
• 29:48
  Speaker 3: which has that's got around about fifteen hundred in it.
• 29:51
  Speaker 1: And other than.
• 29:53
  Speaker 3: That, I do really rely on my savings accounts. In
• 29:58
  Speaker 3: saying that, though, I do have a mortgage. So my
• 30:00
  Speaker 3: biggest asset is the house that I own.
• 30:03
  Speaker 1: What about twenty eight and Careful's debts.
• 30:05
  Speaker 3: Yeah, so my mortgage is sitting around about five hundred thousand,
• 30:09
  Speaker 3: which I share a drying responsibility with my partner. For
• 30:13
  Speaker 3: I don't have any credit card debt. My hex debt
• 30:16
  Speaker 3: is sitting around about fifteen thousand. I think it'll come down,
• 30:19
  Speaker 3: it'll be more like ten actually after this financial year.
• 30:23
  Speaker 3: But yeah, so I do have a credit card, but
• 30:26
  Speaker 3: I don't have any outstanding balance on that.
• 30:29
  Speaker 1: And personal loans.
• 30:30
  Speaker 3: I have a bit of a philosophy not to have
• 30:32
  Speaker 3: a personal loan because I think to myself, well, if
• 30:36
  Speaker 3: I can't afford it now, then I just shouldn't have
• 30:39
  Speaker 3: it unless it's absolutely necessary, and it's never been. There's
• 30:41
  Speaker 3: never been anything that's been dire or necessary. When we
• 30:44
  Speaker 3: ask twenty eight and careful what her best money habit is,
• 30:47
  Speaker 3: she didn't hesitate.
• 30:48
  Speaker 1: I would say my best.
• 30:49
  Speaker 3: Money habit was setting up the direct debit every fortnight.
• 30:53
  Speaker 3: It's something which requires a little bit of effort. Took
• 30:57
  Speaker 3: maybe ten minutes to set up for all my accounts.
• 31:00
  Speaker 3: I also have my main savings account is not linked
• 31:04
  Speaker 3: with my everyday banking, so I can't see it every day.
• 31:08
  Speaker 3: So I find that that really works very well because
• 31:11
  Speaker 3: it's not a visible thing unless I go out and
• 31:13
  Speaker 3: try and get into that account. It's not something where
• 31:17
  Speaker 3: I go, oh, I've got x amount of money where
• 31:19
  Speaker 3: I can use it for whatever, like, it's just kind
• 31:22
  Speaker 3: of absent. My big savings goal has changed a little
• 31:27
  Speaker 3: bit since having the house. It's a really funny thing
• 31:30
  Speaker 3: when you've worked really hard to save towards the house
• 31:33
  Speaker 3: for such a long time, like that was my main
• 31:35
  Speaker 3: goal for between five to ten years. So I would
• 31:39
  Speaker 3: say that I'd be saving for a car now. I
• 31:42
  Speaker 3: wouldn't get alone because unless it was something that was
• 31:46
  Speaker 3: absolutely needs to happen right now necessary, where I aiming
• 31:50
  Speaker 3: to spend somewhere around about twenty to twenty five thousand,
• 31:54
  Speaker 3: and that will be like shared between my partner and
• 31:56
  Speaker 3: I and her worst money habit. My worst money habit
• 32:00
  Speaker 3: would have to be the money that I spend on food.
• 32:03
  Speaker 3: This sounds so bad. Between five and ten dollars a day,
• 32:08
  Speaker 3: so across a five day work week, that's twenty five
• 32:12
  Speaker 3: to fifty dollars. That feels like it feels like a lot.
• 32:15
  Speaker 3: To me, it feels like a lot. I'm getting better
• 32:18
  Speaker 3: at it, but I don't do enough preparing or pre
• 32:22
  Speaker 3: preparing of food before work, and therefore it's just too
• 32:27
  Speaker 3: it's too easy.
• 32:28
  Speaker 1: To go downstairs, even coffees like.
• 32:30
  Speaker 4: That sort of thing.
• 32:30
  Speaker 3: It's just it's too easy to spend money unnecessarily. So
• 32:35
  Speaker 3: how would today's Money diarist rate her own relationship with
• 32:38
  Speaker 3: money if we force her to give herself a grade,
• 32:40
  Speaker 3: probably an eight, because I think that the fact that
• 32:44
  Speaker 3: I don't invest is something which I am conscious of
• 32:47
  Speaker 3: and I do want to change. I just feel like
• 32:50
  Speaker 3: tying my money up in an investment at the moment
• 32:52
  Speaker 3: would be stressful as well, just in case something happened.
• 32:57
  Speaker 3: And I've got a lot of things like a car
• 32:59
  Speaker 3: and a few st bits and pieces that I need
• 33:01
  Speaker 3: to pay for in the next in the foreseable future,
• 33:04
  Speaker 3: so I think that there's room for improvement.
• 33:06
  Speaker 1: I also pay the minimum amount.
• 33:08
  Speaker 3: On our mortgage at the moment as well, so I
• 33:12
  Speaker 3: wish that that was I think that there's a few
• 33:14
  Speaker 3: areas where I need to get a bit better, But
• 33:16
  Speaker 3: I feel like I'm pretty comfortable. Victoria, what's struck you
• 33:20
  Speaker 3: most about twenty eight and Careful's money diary?
• 33:23
  Speaker 5: I think she's amazing, So to her, I think she's incredible.
• 33:26
  Speaker 5: Look at what she's doing and what she's already achieved
• 33:28
  Speaker 5: at only twenty eight to have a mortgage and also
• 33:32
  Speaker 5: be so educated on how it works, like she was
• 33:34
  Speaker 5: saying she was using her offset and she's gonna save
• 33:37
  Speaker 5: for a car, and how she's not using any personal
• 33:40
  Speaker 5: debt and doesn't think it aligns to her goals. She
• 33:42
  Speaker 5: is actually the person I want everybody listening to she's
• 33:46
  Speaker 5: on the money to be, And I hope that she's like,
• 33:48
  Speaker 5: got this stupidly good grin while listening to this, because
• 33:52
  Speaker 5: honestly she's Honestly, she's goals.
• 33:55
  Speaker 6: I think she's a ten out of ten.
• 33:57
  Speaker 5: But much like last week's money Diary, if she thinks
• 34:00
  Speaker 5: she's an age, I'm not gonna argue with her if
• 34:03
  Speaker 5: she feels like she's got a lot more to achieve.
• 34:05
  Speaker 3: She mentioned she had twenty thousand dollars in an offset
• 34:08
  Speaker 3: account for her mortgage, and I had no idea what
• 34:10
  Speaker 3: that was.
• 34:10
  Speaker 1: What is it?
• 34:11
  Speaker 5: So, essentially, an offset account is a bank account attached
• 34:15
  Speaker 5: to your mortgage where you can put additional funds that
• 34:19
  Speaker 5: offsets the amount of interest you're paying on your mortgage. So,
• 34:22
  Speaker 5: say you've got a three hundred thousand dollars mortgage and
• 34:25
  Speaker 5: twenty thousand dollars worth of savings. By putting that twenty
• 34:28
  Speaker 5: thousand dollars into your offset account, you're essentially not having
• 34:32
  Speaker 5: to pay interest on that twenty thousand dollars in your mortgage.
• 34:36
  Speaker 4: Smart.
• 34:37
  Speaker 6: Yeah, it's quite intelligent.
• 34:38
  Speaker 5: And I think that people who do have mortgages, if
• 34:41
  Speaker 5: you've also got savings, put them in your offset account.
• 34:44
  Speaker 5: And if you don't have an offset account attached to
• 34:47
  Speaker 5: your mortgage, potentially go and talk to your banker or
• 34:49
  Speaker 5: your mortgage broker about getting one right.
• 34:51
  Speaker 3: So, what's one thing she could improve on them because
• 34:54
  Speaker 3: she's doing a lot.
• 34:55
  Speaker 5: Well, I don't know if I have a lot of
• 34:57
  Speaker 5: advice for this girl. I think that invests. She said
• 35:01
  Speaker 5: that she wasn't investing because she didn't want to tie
• 35:03
  Speaker 5: up a whole heap of money, but she's already using rais,
• 35:06
  Speaker 5: she is already investing. Potentially, once her raise gets to
• 35:09
  Speaker 5: maybe five or six thousand dollars, transferring that into a
• 35:13
  Speaker 5: different type of share portfolio might be an intelligent decision
• 35:17
  Speaker 5: to make. Investing isn't something you have to have a
• 35:20
  Speaker 5: lot of money to do. You don't need to tie
• 35:22
  Speaker 5: all your capital up. You don't need to be investing
• 35:25
  Speaker 5: tens of thousands of dollars. It can be small, but
• 35:28
  Speaker 5: over the long term it will have a really big
• 35:30
  Speaker 5: impact on your wealth. So I think that that's the
• 35:32
  Speaker 5: one thing that you know, if I was sitting across
• 35:34
  Speaker 5: from her. I'd want to have a proper conversation about
• 35:36
  Speaker 5: and say, well, what do you think investing is versus
• 35:39
  Speaker 5: what it actually is and how that actually looks for her?
• 35:43
  Speaker 4: Can we also just talk about she's spending five dollars
• 35:46
  Speaker 4: to day.
• 35:47
  Speaker 6: I don't want to talk about that. That is I'm sorry.
• 35:50
  Speaker 5: Five dollars is what I spend on my Uber It's
• 35:52
  Speaker 5: delivery charge.
• 35:54
  Speaker 4: Yeah, on extra fees.
• 35:55
  Speaker 1: That is incredible.
• 35:57
  Speaker 5: I'm very impressed, but also slightly cancerned that she thinks
• 36:00
  Speaker 5: that's a lot. I know I would hate for her
• 36:04
  Speaker 5: to go through my finances and I'm probably not going
• 36:07
  Speaker 5: to allow that.
• 36:09
  Speaker 1: That's all we have time for today.
• 36:10
  Speaker 3: Unfortunately, just before we head off, let's quickly wrap the
• 36:13
  Speaker 3: boring but important stuff. The advice shared on Shees on
• 36:16
  Speaker 3: the Money is general in nature and does not consider
• 36:18
  Speaker 3: your individual circumstances.
• 36:20
  Speaker 4: She's on the Money exists.
• 36:21
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• 36:24
  Speaker 3: upon to make an investment or financial decision.
• 36:27
  Speaker 1: And yes, don't worry, we promise.
• 36:29
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• 36:33
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• 36:37
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• 36:41
  Speaker 4: Poh, we did it, Victoria.
• 36:43
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• 36:45
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• 36:48
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• 36:49
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• 36:52
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• 37:01
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• 37:11
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