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Community Q&A · She's On The Money

• 0:00
  Speaker 1: She's on the money. She's on the Money. Hello and welcome.
• 0:24
  Speaker 1: She's on the Money. The podcast for millennials who want
• 0:27
  Speaker 1: financial freedom. Now, today we've decided to shake things up
• 0:30
  Speaker 1: a little bit. It's Q and eight A and we'll
• 0:33
  Speaker 1: be answering our community's most burning finance career and life topics.
• 0:37
  Speaker 1: And boy oh boy are there talking about boy crack
• 0:41
  Speaker 1: is to get to Well, maybe that'll come up. There
• 0:44
  Speaker 1: actually is a question about partners at one point, So okay,
• 0:47
  Speaker 1: I like, She's on the Money, the podcast for millennials who.
• 0:51
  Speaker 2: Just want advice, like, not financial freedom. We're now just
• 0:55
  Speaker 2: working towards an advice style that.
• 0:57
  Speaker 1: Could be and do it well. That could be a
• 0:59
  Speaker 1: new pod girl we'll talk about in our lifestyle stunning. Now.
• 1:04
  Speaker 1: My name is Georgia King. I'm a what am I
• 1:07
  Speaker 1: a podcaster? General? No copyright? I don't even know who
• 1:10
  Speaker 1: you are?
• 1:10
  Speaker 2: Now?
• 1:10
  Speaker 3: Maybe to go into pop culture that could be fun.
• 1:14
  Speaker 3: Joining me as always is Victoria Divine V. Why are
• 1:18
  Speaker 3: you so excited about today's Q and A episode is
• 1:20
  Speaker 3: a bit different from us.
• 1:21
  Speaker 2: I just think it's really fun, how fun to do
• 1:24
  Speaker 2: a little Q and A. I feel like we should
• 1:26
  Speaker 2: do more of these, I mean, depending on how this
• 1:28
  Speaker 2: one goes, but being able to interact with the community
• 1:31
  Speaker 2: is literally my favorite thing ever. So knowing that we
• 1:34
  Speaker 2: just get to answer a whole bunch of community questions
• 1:37
  Speaker 2: on an entire episode hopefully is going to be really
• 1:40
  Speaker 2: relatable but also super fun for you guys to listen
• 1:42
  Speaker 2: to as well, because we've both tried Georgia really hard
• 1:45
  Speaker 2: to make sure that all the questions are kind of
• 1:47
  Speaker 2: ones you probably were already thinking about, not necessarily just
• 1:51
  Speaker 2: like left of field ones where people are giving their
• 1:53
  Speaker 2: entire life story and you're like, that has nothing to
• 1:56
  Speaker 2: do with me. So hopefully everyone can learn a little
• 1:58
  Speaker 2: bit and you know, take away few hot tips that
• 2:01
  Speaker 2: might help them financially.
• 2:04
  Speaker 1: The questions are quite varied as well, which we love.
• 2:07
  Speaker 1: And before we get into it, just a pig shout
• 2:09
  Speaker 1: out to everyone who responded to my Q and a
• 2:12
  Speaker 1: post in the group V you were impressed with the photoshop, Yeah,
• 2:17
  Speaker 1: if I recall correctly, but no, we had such a
• 2:21
  Speaker 1: great response and unfortunately not every question could be in here,
• 2:24
  Speaker 1: otherwise we would be here until twenty twenty two. All Right,
• 2:28
  Speaker 1: the enough chatter from us, Let's get into it. Our
• 2:31
  Speaker 1: first question for today is from Christina, who has asked,
• 2:36
  Speaker 1: how can you save for a house deposit and invest
• 2:38
  Speaker 1: in shares at the same time. Is it better to
• 2:41
  Speaker 1: take longer to save up and invest simultaneously or should
• 2:44
  Speaker 1: you focus all of your energy on saving first Georgia
• 2:48
  Speaker 1: poor Kenna lost us Ni.
• 2:51
  Speaker 2: No, that's probably not the answer, and that's actually still
• 2:55
  Speaker 2: my favorite ad like why not both? And the reason
• 2:58
  Speaker 2: is because it's slowing down your goal and being able
• 3:01
  Speaker 2: to achieve them. So, if you want to save for
• 3:03
  Speaker 2: a house deposit, we all know that is one of
• 3:05
  Speaker 2: the most overwhelming financial goals you can take on yourself,
• 3:09
  Speaker 2: and to save up probably one hundred thousand dollars is
• 3:12
  Speaker 2: going to take not only a significant sacrifice on your behalf,
• 3:16
  Speaker 2: but a significant chunk of your time. And so when
• 3:19
  Speaker 2: it comes to saving for a house deposit, when it
• 3:22
  Speaker 2: comes to my clients, and when it comes to my
• 3:24
  Speaker 2: friends and most people in our community, you often see
• 3:27
  Speaker 2: people say, you know what, I'm not going to invest
• 3:30
  Speaker 2: in shares while saving for a house deposit because that's
• 3:33
  Speaker 2: going to slow down my goal of getting into the
• 3:35
  Speaker 2: housing market, which I think is really reasonable and something
• 3:39
  Speaker 2: we all need to consider. But the answer is actually
• 3:42
  Speaker 2: based on your individual budget and your individual cash flow.
• 3:46
  Speaker 2: For example, Georgie, if you said to me the I've
• 3:48
  Speaker 2: got five hundred dollars a month that I can put
• 3:51
  Speaker 2: into a house deposit, and I go, great, Gee, that's
• 3:54
  Speaker 2: really exciting. You're going to be able to save and
• 3:56
  Speaker 2: you know what time frame does that look like? You
• 4:00
  Speaker 2: to achieve my goal, It's going to take ten years,
• 4:02
  Speaker 2: and I go, Okay, fantastic, let's start working towards that.
• 4:06
  Speaker 1: But investing in chairs, as.
• 4:07
  Speaker 2: Much as I'm obviously very excited about it, is another
• 4:11
  Speaker 2: asset that is going to take away your cash flow.
• 4:13
  Speaker 2: And essentially, the more you're putting into the house opposite,
• 4:16
  Speaker 2: the quicker you're going to be able to achieve that goal.
• 4:18
  Speaker 2: So it's all about priorities. And I think that too
• 4:20
  Speaker 2: many times people listen to Shees on the Money and
• 4:23
  Speaker 2: listen to me and to you, George, and they go,
• 4:26
  Speaker 2: oh my gosh, like, oh, I feel like I'm missing
• 4:28
  Speaker 2: out because I'm not investing in chairs yet. You don't
• 4:31
  Speaker 2: have to start today, you can start in the future.
• 4:33
  Speaker 2: You can start at whatever time works for you. And
• 4:36
  Speaker 2: as we always say, George, get out of personal debt
• 4:38
  Speaker 2: before you start saving for a house deposit or start
• 4:41
  Speaker 2: investing in chares, because investing in debt reduction is an
• 4:44
  Speaker 2: investment in itself. But I don't genuinely believe that there
• 4:48
  Speaker 2: is a straight answer to is it better to take
• 4:50
  Speaker 2: longer to save up and invest simultaneously or focus all
• 4:54
  Speaker 2: your energy on your savings first, because the answer isn't
• 4:56
  Speaker 2: necessarily a financial one, but more a personal goals one.
• 5:01
  Speaker 2: So if I said to you, Georgia, all right, well
• 5:03
  Speaker 2: do you want to buy a house first or save
• 5:05
  Speaker 2: for shares, you might go be all I want is
• 5:07
  Speaker 2: a house. I want to get into the property market asap.
• 5:10
  Speaker 2: And in which case I'd say, okay, well, your goals
• 5:13
  Speaker 2: are more aligned to saving for a house to posit,
• 5:15
  Speaker 2: maybe put the shares on the shelf for a little while,
• 5:17
  Speaker 2: and once you've got your mortgage and you know what
• 5:19
  Speaker 2: your cash flow looks like, at that point where we
• 5:21
  Speaker 2: can start an investment portfolio. But if you go, oh,
• 5:24
  Speaker 2: I'm saving for a house, but like, I'm really passionate
• 5:27
  Speaker 2: about shares, and I don't mind if that goal of
• 5:29
  Speaker 2: saving for a house takes me a little bit longer,
• 5:31
  Speaker 2: then great, we can do both at once. But it's
• 5:34
  Speaker 2: definitely down to what is going to suit you, what
• 5:38
  Speaker 2: is going to suit your lifestyle, and why are we
• 5:40
  Speaker 2: making these decisions? Yeah?
• 5:42
  Speaker 1: Perfect, So, yeah, it just depends on your priorities, and
• 5:45
  Speaker 1: you're welcome to do both at once if you like,
• 5:48
  Speaker 1: but that may not serve you if you do have
• 5:51
  Speaker 1: the priority of getting straight into the housing market.
• 5:55
  Speaker 2: Yeah. Absolutely, Like, for example, Georgia, I put purchasing shares
• 5:59
  Speaker 2: on hold for a little while while Steve and I
• 6:02
  Speaker 2: aggressively saved the rest of our house deposit because I
• 6:05
  Speaker 2: was like, no, I just want every dollar that we
• 6:07
  Speaker 2: have going into this house deposit so that we can
• 6:10
  Speaker 2: get there sooner. And now that we have the mortgage,
• 6:12
  Speaker 2: I'm now investing again. But again, everybody's cash flow and
• 6:16
  Speaker 2: budget is going to be different.
• 6:18
  Speaker 1: Love that, Okay, hopefully that helps you out there, Christina.
• 6:21
  Speaker 1: Our next question V is from Julie. Now. She wants
• 6:25
  Speaker 1: to know where she should focus as a woman in
• 6:27
  Speaker 1: her forties who hasn't always made the best life choices,
• 6:31
  Speaker 1: mostly when it comes to men.
• 6:33
  Speaker 2: She says, I mean, i'd say relatable, but it's not
• 6:36
  Speaker 2: relatable to me yet yet.
• 6:39
  Speaker 1: So she's asking if she should focus on her super
• 6:43
  Speaker 1: or outside investments. Her real concern is that she might
• 6:47
  Speaker 1: be spreading her finances a little too thin and is
• 6:50
  Speaker 1: wondering if it is better to focus on one area
• 6:53
  Speaker 1: instead of multiple.
• 6:54
  Speaker 2: I'm gonna be a typical financial advisor and say, if
• 6:58
  Speaker 2: you're in your forties and that's the situation you are in,
• 7:01
  Speaker 2: speak to a financial advisor. I promise you it will
• 7:04
  Speaker 2: be one of the best investments you make, because not
• 7:07
  Speaker 2: only are they going to show you where to not
• 7:09
  Speaker 2: spread yourself thin, they're actually going to be able to
• 7:11
  Speaker 2: create a strategy that turbo charges your super or any
• 7:15
  Speaker 2: of your other investments to make sure that you're achieving
• 7:18
  Speaker 2: the financial freedom and the retirement that you want to.
• 7:21
  Speaker 2: If you're in your forties, it's very likely you have
• 7:23
  Speaker 2: maybe twenty twenty five years left of working, which is
• 7:27
  Speaker 2: so much time.
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  Speaker 1: Like you have not.
• 7:29
  Speaker 2: Left it too late. In fact, you have heaps of
• 7:31
  Speaker 2: time to create this wealth and actually get ahead. So
• 7:34
  Speaker 2: my advice would be go and see a financial advisor.
• 7:38
  Speaker 2: But obviously that isn't the most constructive answer, especially for
• 7:41
  Speaker 2: a podcast where we're trying to teach people financial freedom
• 7:44
  Speaker 2: on their own. So I would then say, definitely weigh
• 7:48
  Speaker 2: up what the difference is like with super it's an
• 7:51
  Speaker 2: incredibly tax effective environment, but there are also caps on
• 7:54
  Speaker 2: how much we can contribute each and every single year.
• 7:58
  Speaker 2: And in a situation where you are saying you maybe
• 8:00
  Speaker 2: haven't made the best financial choices historically, you're probably actually
• 8:05
  Speaker 2: going to want to do a mix of both because
• 8:07
  Speaker 2: if you are only focusing on, for example, superranuation and
• 8:11
  Speaker 2: there's a cap there, that's not going to actually get
• 8:14
  Speaker 2: you to your goal. So you're probably going to need
• 8:16
  Speaker 2: to do a mix of both, which is actually really
• 8:18
  Speaker 2: exciting because superanuation is something that is really easy to solve.
• 8:22
  Speaker 2: You can go to the government website and compare all
• 8:24
  Speaker 2: your different super funds and make a decision that is
• 8:26
  Speaker 2: right for you. But then when it comes to outside investment,
• 8:29
  Speaker 2: there are obviously plethoras of options that you could use.
• 8:33
  Speaker 2: Like you could go for a platform like shares is
• 8:35
  Speaker 2: where you get your individual shares. You could go and
• 8:38
  Speaker 2: chat to our friends at six Park and you know,
• 8:40
  Speaker 2: have it managed for you. You could go down the
• 8:42
  Speaker 2: route of picking literally any different type of brokerage platform
• 8:46
  Speaker 2: if shares are your type of investment. But again I
• 8:49
  Speaker 2: don't know what your asset portfolio looks like or your
• 8:52
  Speaker 2: goals look like all your time frame. So I think
• 8:55
  Speaker 2: the most important thing here is if you feel like
• 8:57
  Speaker 2: you haven't made the right financial choices thus far. There's
• 9:00
  Speaker 2: no such thing as too late. And it's definitely about
• 9:03
  Speaker 2: diversifying and getting some super stuff organized and also some
• 9:07
  Speaker 2: other investments. But in the long term, we're actually looking
• 9:10
  Speaker 2: at what we're trying to achieve for the future and
• 9:13
  Speaker 2: then maybe working back from it.
• 9:15
  Speaker 1: Perfect And if Julie does take you up on your
• 9:17
  Speaker 1: advice fee of seeing a financial advisor, where should she go?
• 9:22
  Speaker 1: Just quickly to find one?
• 9:23
  Speaker 2: So there's the acid website where you can look up
• 9:25
  Speaker 2: financial advisors. There is also a website where you can
• 9:28
  Speaker 2: look up financial advisors in your area. Or if you
• 9:32
  Speaker 2: have absolutely no idea, you can actually head to the
• 9:34
  Speaker 2: She's on the Money website, so uniform and we'll match
• 9:37
  Speaker 2: you with one of our friends who we know is
• 9:38
  Speaker 2: a good financial advisor.
• 9:40
  Speaker 1: Perfection, Hi bor, Right, So let's move on nowve to Rachelle. Hello, Rochelle,
• 9:46
  Speaker 1: she wants to know how to sensitively approach and discuss
• 9:50
  Speaker 1: your partner's bad financial habits.
• 9:53
  Speaker 2: Oh, having that chat is a struggle for some of us. Actually,
• 9:57
  Speaker 2: I would say it's a struggle for all of us,
• 9:59
  Speaker 2: because no one likes having a chat that's.
• 10:00
  Speaker 1: Awkward, Hey George, like, oh, no, thank you.
• 10:03
  Speaker 2: Whenever anything awkward is going on, I bury my head
• 10:06
  Speaker 2: in the sand and literally just ignore it, which is
• 10:08
  Speaker 2: absolutely not the best way to go about things, which
• 10:11
  Speaker 2: is probably why I shouldn't be giving the advice on
• 10:13
  Speaker 2: this one, Georgia. But if you're going to do it,
• 10:16
  Speaker 2: I would be organizing to have the chat and really
• 10:19
  Speaker 2: focus not necessarily on their bad quote financial habits, but
• 10:24
  Speaker 2: rather on what type of future you're building together, and
• 10:28
  Speaker 2: highlight how important it is for you guys to be
• 10:30
  Speaker 2: on the same team, not just mentally and you know,
• 10:32
  Speaker 2: when it comes to goal setting, but also financially. And
• 10:36
  Speaker 2: I also think to actually help you in this situation,
• 10:39
  Speaker 2: it's a really good thing to reflect on your personal
• 10:41
  Speaker 2: situation because as much as you might want to talk
• 10:44
  Speaker 2: about your partner's quote bad financial habits, we're not all perfect.
• 10:49
  Speaker 2: We all have things that maybe our partner gets a
• 10:52
  Speaker 2: little bit frustrated by. So I think reflecting on how
• 10:55
  Speaker 2: maybe we would want them to approach that conversation if
• 10:58
  Speaker 2: they wanted to approach it with us, is really helpful.
• 11:01
  Speaker 2: So not using accusatory language. I've talked about this before,
• 11:05
  Speaker 2: being really gentle, instead of saying things like, oh my gosh, Georgia,
• 11:09
  Speaker 2: you always spend all of the money. I can't believe
• 11:11
  Speaker 2: you do that to like, hey, I just really feel
• 11:14
  Speaker 2: like we don't have enough set goals that we're working
• 11:17
  Speaker 2: towards together, Like I just don't feel like we are
• 11:20
  Speaker 2: saving enough for X, Y and Z. And I think
• 11:23
  Speaker 2: changing the conversation from talking about your current behavior to
• 11:26
  Speaker 2: behavior we want to really start promoting is really important
• 11:30
  Speaker 2: because no one wants to be told they're bad at something,
• 11:33
  Speaker 2: but everyone can get on board with something when they
• 11:35
  Speaker 2: find the motivation. So he said, do you, George, I
• 11:38
  Speaker 2: really want to buy a house with you? I'm so
• 11:40
  Speaker 2: excited to do that. You're going to go v I
• 11:43
  Speaker 2: really want to do that too. I go, great, let's
• 11:46
  Speaker 2: make a plan. How do you think that we could
• 11:48
  Speaker 2: achieve that? Like, you know, how's your budget going? Do
• 11:50
  Speaker 2: you think you could set aside a certain amount each week?
• 11:53
  Speaker 2: I'm doing X, Y, Z and really showing that you're
• 11:56
  Speaker 2: walking the walk, not just expecting one thing from them
• 11:59
  Speaker 2: and doing another yourself. So always making sure that you're
• 12:02
  Speaker 2: on the same page. Is not just about saying Georgia,
• 12:06
  Speaker 2: you need to get on my page, but rather talking
• 12:09
  Speaker 2: about maybe creating a new page together and both be
• 12:12
  Speaker 2: excited about moving towards that.
• 12:14
  Speaker 1: Okay, so have those joint goals. And the other thing
• 12:18
  Speaker 1: I wanted to say Ve, as we do always say
• 12:20
  Speaker 1: on the pod, is that if you're if you're just
• 12:22
  Speaker 1: like I can't have this conversation, like it's too awkward,
• 12:26
  Speaker 1: it's too embarrassing. Just blame it on Vickid. Yeah a podcast. Yeah, yep,
• 12:33
  Speaker 1: she told me to do it. Sorry, Chol, I love you, Okay,
• 12:36
  Speaker 1: So hopefully that helps you. Rachelle Now Rachel is the
• 12:40
  Speaker 1: next one, which is fun similar. So Rachel wants to
• 12:43
  Speaker 1: know about salary sacrificing v when you have a hex stet,
• 12:48
  Speaker 1: So how does that work?
• 12:49
  Speaker 2: And is there a risk that you'll be worse off
• 12:51
  Speaker 2: for choosing to salary sacrifice if you do have a
• 12:53
  Speaker 2: hex stet? Okay, So for anyone who maybe doesn't know
• 12:57
  Speaker 2: what that means, we need to remember that our heck
• 13:00
  Speaker 2: stets are repaid according to what we earn. So, for example,
• 13:04
  Speaker 2: if you earn less than forty six thousand, six hundred
• 13:06
  Speaker 2: and twenty dollars Georgia King, you don't have to start
• 13:09
  Speaker 2: paying it off kind of money in but if you
• 13:12
  Speaker 2: earn over that and under fifty three eight hundred and
• 13:15
  Speaker 2: twenty six dollars George, then you'll need to pay one
• 13:18
  Speaker 2: percent of your salary towards your debts. So, roughly speaking,
• 13:23
  Speaker 2: the amount of HEX that you need to repay increases
• 13:26
  Speaker 2: yzo point five percent with every increase of five grand
• 13:29
  Speaker 2: or so to your salary. So you can find more
• 13:31
  Speaker 2: information about that if you literally just google Hex calculator
• 13:35
  Speaker 2: and you pop your salary in and it will tell
• 13:37
  Speaker 2: you exactly how much you pay. But when it comes
• 13:40
  Speaker 2: to salary sacrificing as well, for those of you who
• 13:43
  Speaker 2: don't know, it's an option that is available in many
• 13:45
  Speaker 2: workplaces where employees can actually opt for like a reduced
• 13:49
  Speaker 2: taxable income that then gives you additional benefits. So it
• 13:53
  Speaker 2: gives you benefits of like a phone or a car,
• 13:56
  Speaker 2: or maybe you'll have a food and entertainment card, which
• 13:58
  Speaker 2: I know a lot of people in health care have.
• 14:01
  Speaker 2: And things can get quite confusing when you don't have
• 14:03
  Speaker 2: a quote regular salary and you're taking some of your
• 14:05
  Speaker 2: salary and other benefits, and a salary sacrifice allows you
• 14:09
  Speaker 2: to do that. So basically, after defining both of those,
• 14:13
  Speaker 2: if you have a hex stet and your salary sacrificing,
• 14:16
  Speaker 2: it is very likely that you'll need to adjust your
• 14:19
  Speaker 2: repayments and ensure that they actually line up with your
• 14:21
  Speaker 2: annual taxable income and your total reportable fringe benefits amount,
• 14:27
  Speaker 2: which you're actually able to just find on your pay
• 14:29
  Speaker 2: slip very easily. And it's also really important to remember
• 14:32
  Speaker 2: that you're going to need to inform payroll of your hextet,
• 14:35
  Speaker 2: as they don't automatically just adjust repayments because they assume
• 14:39
  Speaker 2: you've got it because some people have it, some people don't,
• 14:41
  Speaker 2: some people are still paying it off, et cetera. And
• 14:44
  Speaker 2: you don't make adjustments and your ends up meaning that
• 14:46
  Speaker 2: you're only paying hex on your reduced income, because that
• 14:49
  Speaker 2: could land you with a very nice tax bill come June,
• 14:53
  Speaker 2: Thirsty or my birthday. Guys, So is there a risk
• 14:56
  Speaker 2: of you being worse off? Yes, when it comes to
• 14:59
  Speaker 2: getting a t ax bil. Nobody likes an unforeseen cost.
• 15:03
  Speaker 2: But at the same time, it all will equal out.
• 15:06
  Speaker 2: It's just going to be some good planning and making
• 15:09
  Speaker 2: sure that is in place, But nine times out of ten,
• 15:13
  Speaker 2: if your business offers salary sacrificing, they're going to have
• 15:16
  Speaker 2: someone in payroll who's going to be able to organize
• 15:19
  Speaker 2: that for you and make sure you are better off.
• 15:21
  Speaker 2: So in this situation, George, we're not actually talking about like,
• 15:24
  Speaker 2: oh my gosh, if you've got salary sacrifice, you need
• 15:27
  Speaker 2: to contribute more to your hex. It's not about paying
• 15:30
  Speaker 2: that debt off Quicker. It's actually about having the debt
• 15:34
  Speaker 2: paid off in relation to your whole taxable income, because
• 15:38
  Speaker 2: the tax man actually takes into account your salary sacrifices
• 15:42
  Speaker 2: a part of your salary package, and otherwise you might
• 15:45
  Speaker 2: find yourself in a pickle because it'll be calculated wrong,
• 15:47
  Speaker 2: which we do not want to occur, Dorge, We don't
• 15:50
  Speaker 2: want that. What if we say, you've got your your
• 15:54
  Speaker 2: reduced income and then you've got all of your benefits
• 15:58
  Speaker 2: which are they called free benefits, say from memory.
• 16:02
  Speaker 1: So if that compiled actually equates to more than what
• 16:06
  Speaker 1: you would be earning if you weren't salary sacrificing, does
• 16:10
  Speaker 1: that impact your hexort a like would you have to
• 16:12
  Speaker 1: pay more?
• 16:13
  Speaker 2: Yeah, Look, at the end of the day, example here
• 16:16
  Speaker 2: is say I have a sixty thousand dollar income and
• 16:19
  Speaker 2: my work are like, okay, cool, you can salary sacrifice
• 16:22
  Speaker 2: a cart to the amount of ten thousand dollars a year,
• 16:25
  Speaker 2: and I go, great, no problems, I'll take that entire
• 16:27
  Speaker 2: ten thousand dollars because round numbers and examples are shee.
• 16:31
  Speaker 2: So then your income has technically dropped to fifty thousand
• 16:35
  Speaker 2: dollars and your taxable income actually sits below that fifty three,
• 16:40
  Speaker 2: eight hundred and twenty six. So you're going to end
• 16:43
  Speaker 2: up in a situation where your take home money is
• 16:46
  Speaker 2: taxed at a different rate than the money that you
• 16:49
  Speaker 2: are salary sacrificing. But if I looked at your contract
• 16:53
  Speaker 2: or the taxman looked at your contract about how much
• 16:55
  Speaker 2: you're being remunerated, the total amount of remuneration you're receiving
• 17:00
  Speaker 2: is to the value of sixty thousand dollars. So yes,
• 17:03
  Speaker 2: tax would completely change because the ten thousand dollars. The
• 17:06
  Speaker 2: reason we salary sacrifice is to get some more benefit
• 17:09
  Speaker 2: out of our tax, which is really good. But HEX
• 17:13
  Speaker 2: doesn't work in exactly the same way. So we need
• 17:15
  Speaker 2: to make sure we don't shoot ourselves in the foot
• 17:17
  Speaker 2: and end up with a nasty hex bill at tax time,
• 17:20
  Speaker 2: which nobody wants, right.
• 17:22
  Speaker 1: Okay, gosh, finance can be complex. Kind I love it.
• 17:26
  Speaker 1: I know you do. My head's just spinning over here,
• 17:29
  Speaker 1: but hopefully that helps you as well. Rachel. We are
• 17:32
  Speaker 1: going to head to a very short break now, guys,
• 17:35
  Speaker 1: but on the other side we will be answering plenty
• 17:37
  Speaker 1: more of your questions, so please don't go anywhere. Alrighty b.
• 17:45
  Speaker 1: We have returned, and our first question up is from Talula.
• 17:50
  Speaker 1: She wants to know your thoughts on investing from overseas.
• 17:54
  Speaker 1: So she is moving to New Zealand for the next
• 17:57
  Speaker 1: five years or so.
• 17:58
  Speaker 2: Cute country.
• 18:00
  Speaker 1: I know, just cinder and the mountains. I don't know everything, honestly, jealous,
• 18:05
  Speaker 1: never been one day, one day Okay, So yeah, she's
• 18:08
  Speaker 1: moving there for the next five years. She's new to
• 18:11
  Speaker 1: the investing game and she's wondering if it's smarter to
• 18:14
  Speaker 1: start investing over there or to do it over here.
• 18:18
  Speaker 2: Okay, So this is a complex question. She's given me
• 18:21
  Speaker 2: enough information to give I would say a very viable answer,
• 18:24
  Speaker 2: which is very exciting. But if you're moving overseas indefinitely,
• 18:29
  Speaker 2: the answer would be very different. So if you're like,
• 18:31
  Speaker 2: oh my gosh, I'm in Australia for a while and
• 18:34
  Speaker 2: I'm going to move back to Bangkok where I'm from,
• 18:37
  Speaker 2: you know, long term, that's where I'm going to live,
• 18:40
  Speaker 2: that's where I'm going to have kids, that's where I'm
• 18:41
  Speaker 2: going to retire, Investing here might not make sense. And
• 18:45
  Speaker 2: the reason it might not make sense is purely because
• 18:49
  Speaker 2: of tax and the fact that you know, long term,
• 18:52
  Speaker 2: I am an investor that has a buy and hold strategy.
• 18:55
  Speaker 2: So I'm the type of investor who wants to invest
• 18:57
  Speaker 2: for the long term to create financial freedom, and I
• 19:01
  Speaker 2: don't want to create financial freedom in a currency that
• 19:04
  Speaker 2: is going to have fluctuating currency exchange rates applied to
• 19:08
  Speaker 2: it and be harder to access. So if you're moving
• 19:12
  Speaker 2: over to New Zealand for five years and then you're
• 19:14
  Speaker 2: going to come back to Australia, you absolutely can continue
• 19:18
  Speaker 2: to invest in Australia using AUD. I mean you're more
• 19:22
  Speaker 2: than welcome to start using a platform like chase EA's
• 19:25
  Speaker 2: because Chaseea's was born in New Zealand, so I don't know,
• 19:27
  Speaker 2: maybe you want to use it over there and feel
• 19:29
  Speaker 2: all la legit New Zealand. But for me, if I
• 19:33
  Speaker 2: was doing that, I think is the best way to
• 19:35
  Speaker 2: answer this Georgia, I would continue to invest in Australia
• 19:38
  Speaker 2: knowing that long term, I'm going to come home to
• 19:41
  Speaker 2: my portfolio and there's no real mess going back and forward.
• 19:45
  Speaker 2: So if you're actually in Australian and you're already using
• 19:47
  Speaker 2: Australian based trading platforms, you're still allowed to use them
• 19:51
  Speaker 2: while you're living overseas as long as you have a
• 19:53
  Speaker 2: bank account here and you're still a resident of the country,
• 19:56
  Speaker 2: which is kind of handy. You're going to pay capital
• 19:59
  Speaker 2: gains tax as you usually would in Australia, so the
• 20:02
  Speaker 2: tax doesn't change. You're just going to need to fill
• 20:04
  Speaker 2: out a tax return form each year to make sure
• 20:07
  Speaker 2: that you're meeting the compliance of that.
• 20:09
  Speaker 1: Just on that vee. As someone who does plan on
• 20:13
  Speaker 1: living in London at some stage of my life when
• 20:15
  Speaker 1: y is this spicy cough eases up, what does tax
• 20:22
  Speaker 1: look like like? Do I have to pay tax on
• 20:24
  Speaker 1: a job if I'm working over there and on my
• 20:28
  Speaker 1: shoes on the money where no? So how does that work?
• 20:31
  Speaker 2: So you're going to pay tax on the income that
• 20:34
  Speaker 2: is derived in that country. So if you're still deriving
• 20:38
  Speaker 2: income from being an international podcaster, which I'm assuming is
• 20:42
  Speaker 2: the plan, we can talk about this later, babe. But
• 20:45
  Speaker 2: you'll pay tax in Australia because we'll pay you into
• 20:48
  Speaker 2: an Australian bank account. But when you move to London,
• 20:50
  Speaker 2: you're going to have to stand up a London bank
• 20:52
  Speaker 2: account and you will have to adhere to their tax
• 20:55
  Speaker 2: law and their tax rules based on the income you
• 20:57
  Speaker 2: derive over there. Australia is not going to double your price.
• 21:00
  Speaker 1: So okay, oh, it's nice of them.
• 21:02
  Speaker 2: They're very kind to those tax people.
• 21:04
  Speaker 1: Georgia, bless them. One more question, just selfishly superannuation? Then
• 21:10
  Speaker 1: do you just I assume you don't get paid.
• 21:13
  Speaker 2: No, they won't pupation, So Georgia. Moving overseas does complicate things,
• 21:18
  Speaker 2: and this is something that if you are planning or
• 21:20
  Speaker 2: moving overseas at any point, I do want you to consider.
• 21:23
  Speaker 2: And that is because if you are not earning income
• 21:26
  Speaker 2: like George, because you're a freelancer, you're going to move
• 21:29
  Speaker 2: overseas and not have anybody paying you superannuation, which means
• 21:33
  Speaker 2: you're going to have to consider whether you make your
• 21:35
  Speaker 2: own repayments during that time so that in the future
• 21:39
  Speaker 2: you're not behind. When you're in the UK, they have
• 21:42
  Speaker 2: what's called a pension that is essentially their version of superannuation.
• 21:46
  Speaker 2: If you move to the US they have something called
• 21:48
  Speaker 2: a four H one K.
• 21:50
  Speaker 1: If you move to New.
• 21:50
  Speaker 2: Zealand, they've got key. We say that everybody is different
• 21:53
  Speaker 2: based on their retirement planning, I guess for their populations,
• 21:57
  Speaker 2: but it's really important to work out what that actually
• 22:00
  Speaker 2: means for you and what your long term plan is,
• 22:02
  Speaker 2: because again, if you're just going to move to London
• 22:04
  Speaker 2: for a couple of years and not pay super, is
• 22:08
  Speaker 2: that a smart idea or should you maybe even start
• 22:12
  Speaker 2: now Georgia and bump up your superranuation before you make
• 22:15
  Speaker 2: that decision so you're not paying for additional things while
• 22:19
  Speaker 2: you're living in a really expensive city. So it depends
• 22:22
  Speaker 2: on your situation and what's going on, but it's definitely
• 22:25
  Speaker 2: something to consider because a lot of people that I
• 22:28
  Speaker 2: actually work with have spent significant periods of time living overseas,
• 22:33
  Speaker 2: and I mean it's very easy when you move to
• 22:35
  Speaker 2: London to say I'm here for a year and then
• 22:37
  Speaker 2: return ten years later and realize you've missed out on
• 22:40
  Speaker 2: ten years of superranuation contributions, which means you have to
• 22:44
  Speaker 2: do something pretty significant to make sure that you make
• 22:46
  Speaker 2: that up so that you have a safe and comfortable retirement.
• 22:50
  Speaker 2: So I think it's important to remember now so that
• 22:53
  Speaker 2: you can either plan to pay it while you're over there,
• 22:55
  Speaker 2: or maybe bump it up now so that you're paying
• 22:57
  Speaker 2: superannuation in addition, so that when you do have a
• 23:00
  Speaker 2: little bit of a break. This also works for maternity leave.
• 23:03
  Speaker 2: You do have a little break, you can actually go no,
• 23:05
  Speaker 2: I'm actually ahead of my peers anyway, or work out
• 23:08
  Speaker 2: something different that works for you. But I don't want
• 23:11
  Speaker 2: anyone to forget about their super while they are in
• 23:13
  Speaker 2: a different country. Yeah, that is a good tip from me,
• 23:16
  Speaker 2: because that's definitely not something that would come to mind
• 23:19
  Speaker 2: first up, like I would have already. How did you
• 23:22
  Speaker 2: for it? True said, I'm moving overseas. I'll be like, right,
• 23:25
  Speaker 2: sit down, We've.
• 23:26
  Speaker 1: Got a lot to go through.
• 23:27
  Speaker 2: It's got a lot to go through. Take your mic.
• 23:29
  Speaker 1: We are ready, all right, let's move on. V Sylvia
• 23:34
  Speaker 1: wants to know your thoughts on peer to peer lending,
• 23:37
  Speaker 1: which I don't think we've spoken about that on the
• 23:39
  Speaker 1: podcast and if we have, I wasn't listening. So is
• 23:43
  Speaker 1: it safe or is it just too risky? Is investing
• 23:46
  Speaker 1: this way subject to any government guarantees? That's what she's asked. So, yeah,
• 23:51
  Speaker 1: I have no idea what this is, so talk to me.
• 23:52
  Speaker 1: So it's not guaranteed.
• 23:54
  Speaker 2: Again, it's another type of investing, and I think it's
• 23:56
  Speaker 2: an important one to tackle. It's not something I adore
• 24:00
  Speaker 2: or but at the same time, I know a lot
• 24:01
  Speaker 2: of our community do. And everybody picks different investment choices
• 24:05
  Speaker 2: that are aligned to their values. So let's quickly talk
• 24:08
  Speaker 2: about what P to P lending is. It's essentially lending
• 24:11
  Speaker 2: that allows a person who needs a personal or a
• 24:14
  Speaker 2: business loan to borrow money from an investor instead of
• 24:17
  Speaker 2: going to some lender lack a bank. George. So maybe
• 24:19
  Speaker 2: you go, hey, the I need to start.
• 24:22
  Speaker 1: Up a business.
• 24:23
  Speaker 2: I need five grand. I'm like, oh, I've got five
• 24:25
  Speaker 2: grand in my savings. Hey, if you give me that
• 24:28
  Speaker 2: five grand back in a certain period of time with
• 24:31
  Speaker 2: an additional five percent, can we call that even? You go, yeah,
• 24:34
  Speaker 2: that's much better. I much prefer that. And essentially the
• 24:38
  Speaker 2: borrower takes out a loan and then repays it with
• 24:40
  Speaker 2: interest over time, similar to any other investment, but you
• 24:44
  Speaker 2: don't own anything. You essentially are not buying something. You're
• 24:47
  Speaker 2: just lending money out like a bank would, getting some interest.
• 24:50
  Speaker 2: Then you'll get your money back and maybe you'll set
• 24:52
  Speaker 2: up another.
• 24:53
  Speaker 1: Loan in the future.
• 24:54
  Speaker 2: It's not actually like Victoria and Georgia lending five grand
• 24:58
  Speaker 2: to each other setting up a deal. It's usually run
• 25:01
  Speaker 2: through online platforms that exist to do this, and it's
• 25:04
  Speaker 2: really important to ensure that the online platform that you
• 25:07
  Speaker 2: choose is legitimate, which you can do by checking whether
• 25:10
  Speaker 2: they're registered with ACIC or not at the Asset Connects
• 25:13
  Speaker 2: Professional Register website, which will obviously link in the show notes.
• 25:17
  Speaker 2: So there are benefits as investors because it just sounds
• 25:21
  Speaker 2: fun and I know that a lot of people want
• 25:23
  Speaker 2: to invest in things that they're genuinely interested in. Interest
• 25:26
  Speaker 2: rates can actually be higher than other types of investing,
• 25:29
  Speaker 2: which people see is quite sexy, and it's run through
• 25:32
  Speaker 2: an online platform which makes it relatively easy to access
• 25:36
  Speaker 2: and to actually manage. But the cons as an investor is, yes,
• 25:40
  Speaker 2: it can be quite risky because if the loans are unsecured,
• 25:43
  Speaker 2: that means there's a higher chance that you could lose
• 25:46
  Speaker 2: your money, and you also may get a lower return
• 25:49
  Speaker 2: than expected if your borrower can't actually repay that loan,
• 25:53
  Speaker 2: So you're actually basing your investment choices on whether the
• 25:57
  Speaker 2: borrow is actually going to repay it or not. And
• 25:59
  Speaker 2: I think we need to remember that, you know, as
• 26:01
  Speaker 2: much as everybody borrows money with good intentions, if you're
• 26:06
  Speaker 2: lending to help small business I don't mean to sound negative,
• 26:10
  Speaker 2: but lots of small businesses don't actually succeed, and people
• 26:13
  Speaker 2: do borrow money for that, and it can actually be
• 26:15
  Speaker 2: fickle to recover, and there aren't actually any types of
• 26:18
  Speaker 2: government protections available either, So if you lose your money
• 26:22
  Speaker 2: because of fraud or an error made by their platform,
• 26:24
  Speaker 2: then it's very likely that you're not going to be compensated,
• 26:27
  Speaker 2: which is not a good thing. I'm not the biggest
• 26:30
  Speaker 2: fan of peer to P lending when it comes to
• 26:32
  Speaker 2: talking about it on a podcast and advocating for it
• 26:35
  Speaker 2: as a really great option to invest in to create
• 26:38
  Speaker 2: future financial freedom, But it would be silly of me
• 26:41
  Speaker 2: to say I'm not interested in it as a person
• 26:44
  Speaker 2: who's interested in investing, So there are lots of platforms
• 26:47
  Speaker 2: that I follow quite closely because I'm like, oh, that's
• 26:49
  Speaker 2: so interesting, and like there's lots of like micropeer to
• 26:52
  Speaker 2: peer investing platforms and lending going on, and there's bigger
• 26:56
  Speaker 2: platforms that do exactly the same thing. But at the
• 26:59
  Speaker 2: end of the day, I just don't think it's for me.
• 27:02
  Speaker 2: As I've said a million times on the podcast, I'm
• 27:04
  Speaker 2: a buy and hold, long term strategy kind of goal
• 27:08
  Speaker 2: and this is not leaning towards that. But again, it's
• 27:12
  Speaker 2: not the worst thing. If you're going to engage with this,
• 27:14
  Speaker 2: just make sure it's legitimate and it's aligned to your goals.
• 27:18
  Speaker 2: And it's also really important. Again, all I talk about
• 27:20
  Speaker 2: is investing in risk. But it's interesting because a lot
• 27:24
  Speaker 2: of people go, oh, I'm not risk averse, but it
• 27:26
  Speaker 2: just feels safer because they like the idea of lending
• 27:29
  Speaker 2: to small business. We really need to go back to
• 27:32
  Speaker 2: our risk profiles and go yes, But is it actually
• 27:35
  Speaker 2: more risky or not? Because more often than not, just
• 27:38
  Speaker 2: because it's being talked about a lot, or it's really trendy,
• 27:41
  Speaker 2: it might make you feel a little bit more secure,
• 27:44
  Speaker 2: but in the grand scheme of things, it's actually worse
• 27:46
  Speaker 2: when it comes to risk that you're taking on is
• 27:49
  Speaker 2: it common. I have never heard of it. It's pretty common.
• 27:53
  Speaker 2: It is relatively common. There are a lot of big
• 27:56
  Speaker 2: brands that do it. I'm not going to name drop
• 27:57
  Speaker 2: them now because I don't want to be advocating them,
• 27:59
  Speaker 2: but yeah, it is a relatively common way to invest.
• 28:03
  Speaker 2: I wouldn't say it's a way to invest. You know,
• 28:06
  Speaker 2: it's not as easy to find out about as the
• 28:09
  Speaker 2: ASEX would be or property, but it is increasing in
• 28:13
  Speaker 2: awareness and it is increasing in popularity.
• 28:17
  Speaker 1: There you go, I'm learning along with the listeners. Okay,
• 28:22
  Speaker 1: next question is from Kylie. She wants to know how
• 28:26
  Speaker 1: you can start to save when every cent from your
• 28:29
  Speaker 1: pay is taken up, so she wants to know how
• 28:31
  Speaker 1: to break the cycle. And she's also mentioned that she
• 28:34
  Speaker 1: has no credit cards, just a mortgage, a car loan,
• 28:37
  Speaker 1: and some bills.
• 28:38
  Speaker 2: Okay, so first things first, Kylie, my friend, do not
• 28:41
  Speaker 2: be hard on yourself. If you are just living paycheck
• 28:44
  Speaker 2: to paycheck and you can't save, that is not the
• 28:46
  Speaker 2: worst thing in the world. I am so grateful that
• 28:49
  Speaker 2: you're in a position where you have a mortgage, you
• 28:51
  Speaker 2: have a car loan, you have food on the table,
• 28:53
  Speaker 2: and we I think underestimate how special that is.
• 28:56
  Speaker 1: So often I think.
• 28:58
  Speaker 2: We really do need to remember that saving is such
• 29:01
  Speaker 2: a privilege, Like how lucky are we Georgia to live
• 29:03
  Speaker 2: in a country where we have enough money to not
• 29:05
  Speaker 2: only put food on the table, but to put some away,
• 29:09
  Speaker 2: like we get to save it, like we don't need
• 29:11
  Speaker 2: every single dollar that comes in. So I think it's
• 29:14
  Speaker 2: a really good question. But I also want to normalize
• 29:16
  Speaker 2: being in a situation where every single cent from every
• 29:19
  Speaker 2: single pay is taken up. Like it's okay if that
• 29:22
  Speaker 2: is you. It's okay if you've gotten yourself to that situation.
• 29:26
  Speaker 2: But if you're in a situation where you're like, no,
• 29:28
  Speaker 2: be like, I know that's the case, but I'd really
• 29:31
  Speaker 2: like to start saving. I want to break this cycle.
• 29:34
  Speaker 2: There are a few things that you can do. So
• 29:36
  Speaker 2: first things first is budget and cash flow. Can you
• 29:40
  Speaker 2: create a solid budget to make sure that absolutely everything
• 29:44
  Speaker 2: in your budget and cash flow is of value to you.
• 29:47
  Speaker 2: You're getting the best deals on your energy, You're getting
• 29:50
  Speaker 2: the best deals on food and water and everything else
• 29:53
  Speaker 2: that you are paying for. When you said you had
• 29:55
  Speaker 2: a mortgage, have you got the best interest rate when
• 29:58
  Speaker 2: it comes to the car loan that you have are
• 30:00
  Speaker 2: you actually paying it off over time? Is there a
• 30:02
  Speaker 2: balloon associated with it? What kind of rate have you got?
• 30:05
  Speaker 2: Should you be considering refinancing that car? But once we've
• 30:10
  Speaker 2: worked out ways we can save money from our budget
• 30:12
  Speaker 2: and cash flow, the next is actually supplementing our income,
• 30:16
  Speaker 2: so we can do one of two things to make
• 30:18
  Speaker 2: more money. We can find ways to save, which is
• 30:21
  Speaker 2: really helpful and usually the easiest, quickest win. The second
• 30:24
  Speaker 2: is to find a secondary source of income. So you
• 30:27
  Speaker 2: could either ask for a raise at work, take on
• 30:30
  Speaker 2: more hours, or you can find a little side hustle.
• 30:33
  Speaker 2: And we did a side hustle episode recently Georgia that
• 30:36
  Speaker 2: was like not a side hustle episode. It was literally
• 30:39
  Speaker 2: like how to make money without having a side hustle,
• 30:41
  Speaker 2: which I thought was really helpful.
• 30:43
  Speaker 1: Via the apps. Yeah, yeah, via.
• 30:45
  Speaker 2: Apps, literally from your couch or as we said on
• 30:48
  Speaker 2: the pod, George, other people's couches.
• 30:51
  Speaker 1: Love that catchy.
• 30:52
  Speaker 2: But you could absolutely check out getting a side hustle
• 30:56
  Speaker 2: and getting a supplementary income, because if you're saying that
• 30:59
  Speaker 2: every single from your current income is being taken up,
• 31:03
  Speaker 2: a side hustle is going to mean that every single
• 31:05
  Speaker 2: cent you earned there can be savings, which is really
• 31:07
  Speaker 2: really exciting. So I don't mean to be that guy
• 31:11
  Speaker 2: that's like set up a budget and understand your cash flow,
• 31:13
  Speaker 2: but at the end of the day, that is going
• 31:15
  Speaker 2: to be the tool that actually helps you achieve your
• 31:18
  Speaker 2: goals and make sure that when you do have an
• 31:21
  Speaker 2: increase in income, you're making the most of it.
• 31:25
  Speaker 1: Thoughts be on like setting up a little micro investing
• 31:30
  Speaker 1: account or something like that and having say thirty dollars
• 31:34
  Speaker 1: or something that's not too significant pulled out of your
• 31:38
  Speaker 1: income each week and just having that set aside to
• 31:42
  Speaker 1: like build up and become this little, this little savings
• 31:46
  Speaker 1: account without you really realizing it's genius.
• 31:48
  Speaker 2: I think it's really great, And our friends at up
• 31:51
  Speaker 2: bank actually have a round up feature which means you
• 31:53
  Speaker 2: could do that in a savings account without having to
• 31:55
  Speaker 2: have it micro invested, depending on your goals, depending on
• 31:58
  Speaker 2: what's going on, but I think it's really important as well.
• 32:01
  Speaker 2: Some people don't have the flexibility to just slowly pay,
• 32:05
  Speaker 2: you know, thirty dollars. Like automating things is obviously going
• 32:08
  Speaker 2: to make it really easy and make sure that it
• 32:11
  Speaker 2: actually happens each and every single week. Because I know
• 32:14
  Speaker 2: of all people that if I said you've got to
• 32:16
  Speaker 2: save thirty bucks a week about yep, easy done, I'll
• 32:19
  Speaker 2: do it. Am I actually going to transfer it every week?
• 32:22
  Speaker 1: No?
• 32:23
  Speaker 2: Absolutely not. I'll probably like transfer it one week, forget
• 32:26
  Speaker 2: for four. I have to transfer four weeks worth over
• 32:28
  Speaker 2: It'll become a mess. So for me, automated banking is
• 32:32
  Speaker 2: the way of the future Georgia. Yeah, and it helps
• 32:35
  Speaker 2: me so much. But at the same time, if someone
• 32:38
  Speaker 2: is saying, look, every single cent of my pay is
• 32:41
  Speaker 2: taken up, sometimes they don't just mean oh yeah, like
• 32:45
  Speaker 2: I just spend it all. Sometimes it's pre allocated in
• 32:48
  Speaker 2: their budget and they actually just don't have anything to spare.
• 32:51
  Speaker 2: But yeah, it's a really good idea to use features
• 32:53
  Speaker 2: like the upbank feature of rounding up like or micro investing,
• 32:57
  Speaker 2: because it all ticks away. Like on our Friday episodes,
• 33:00
  Speaker 2: we sometimes ask Ryan where his aunt with his He's
• 33:03
  Speaker 2: been investing on spaceship. He's been doing his five dollars
• 33:06
  Speaker 2: a day to supplement his income, and that is building up.
• 33:08
  Speaker 2: He has close to two thousand dollars in there now. Yeah,
• 33:11
  Speaker 2: and even a day and he hasn't noticed it. So
• 33:15
  Speaker 2: that's really lucky. But if you're not in that particular position,
• 33:19
  Speaker 2: I think not being too hard on ourselves is really important.
• 33:22
  Speaker 2: But then also just like what can we do instead
• 33:25
  Speaker 2: of going, oh, I just don't know what to do,
• 33:27
  Speaker 2: I'm telling you right now, check your budget, what are
• 33:29
  Speaker 2: you spending. Have you actually made sure that you're getting
• 33:32
  Speaker 2: the best deals on your utilities, your phone, have you
• 33:35
  Speaker 2: done your refinances?
• 33:37
  Speaker 1: What's going on.
• 33:37
  Speaker 2: With all of that, And then we can talk about
• 33:40
  Speaker 2: ways to increase your income.
• 33:42
  Speaker 1: Brilliant? All right, Moving on to Jess, who wants to
• 33:45
  Speaker 1: know if investing is a long term thing, then why
• 33:47
  Speaker 1: is it okay to micro invest one thousand dollars or
• 33:50
  Speaker 1: five thousand dollars and then pull it out for a
• 33:52
  Speaker 1: new purpose, be that investing in a larger platform or
• 33:55
  Speaker 1: putting it in savings. What are your thoughts on that question?
• 33:59
  Speaker 2: Yes, So when you say why is it okay to
• 34:03
  Speaker 2: micro investor thousand dollars or five thousand dollars? From my perspective,
• 34:07
  Speaker 2: I mean you could use microinvesting platforms forever if you
• 34:10
  Speaker 2: really wanted to, but they don't give you the option
• 34:14
  Speaker 2: of taking the dividends out in the same way that
• 34:16
  Speaker 2: a bigger platform would to create the income stream that
• 34:19
  Speaker 2: you want to in the long term. They have all
• 34:21
  Speaker 2: their dividends immediately reinvested because that's the way the apps work.
• 34:25
  Speaker 2: So from my perspective, and I mean, micro investing apps
• 34:28
  Speaker 2: are probably not going to like me saying this because
• 34:30
  Speaker 2: I'm telling people to leave their platforms, probably a way
• 34:33
  Speaker 2: I've never been sponsored by them, but that is okay.
• 34:38
  Speaker 2: I genuinely see microinvesting apps as really beautiful education tools.
• 34:43
  Speaker 1: I see it.
• 34:44
  Speaker 2: As us dipping our feet in the market and being
• 34:47
  Speaker 2: able to invest without having to put one thousand dollars
• 34:50
  Speaker 2: or five thousand dollars on the line, because that is
• 34:52
  Speaker 2: so much money. Whereas if I say to you Georgia, hey,
• 34:55
  Speaker 2: I know that investing can seem really overwhelming, but microinvesting,
• 34:59
  Speaker 2: maybe you try with your first five dollars, maybe you
• 35:02
  Speaker 2: try with one cent on the Chasis platform. These amounts
• 35:05
  Speaker 2: of money aren't going to ruin your life if you
• 35:08
  Speaker 2: quote lost them. And I think that that's a lot
• 35:11
  Speaker 2: of the apprehension that people have when it comes to investing.
• 35:14
  Speaker 2: So I love micro investing because it gets you into
• 35:18
  Speaker 2: the market. You get the app, you get to see
• 35:20
  Speaker 2: what's going on in the market platforms like Spaceship don't
• 35:24
  Speaker 2: even have any fees until you get to the five
• 35:26
  Speaker 2: thousand dollar mark and you're able to invest money, see
• 35:30
  Speaker 2: what the market's doing, follow the trends, see what they're
• 35:33
  Speaker 2: investing in, and get really comfortable with the process. Once
• 35:37
  Speaker 2: you get to that thousand or five thousand dollars amount,
• 35:40
  Speaker 2: that's where you maybe want to take up a bigger platform.
• 35:44
  Speaker 2: Maybe you've got your first five grand, you're like, oh,
• 35:46
  Speaker 2: really want something where I have a bit more control,
• 35:49
  Speaker 2: it's a little bit more monitored. I want to go
• 35:51
  Speaker 2: to a more quote legit platform for investors, and that's
• 35:55
  Speaker 2: where you might go, all right, it's finally time. I'm
• 35:58
  Speaker 2: going to go join six Park and Victoria platform, and
• 36:01
  Speaker 2: that is where you would then stay for the long term.
• 36:05
  Speaker 2: Whereas you know, being fully transparent, you can't invest on
• 36:09
  Speaker 2: the six Park platform with five dollars, it's not possible.
• 36:12
  Speaker 2: You need a minimum of two thousand dollars to get
• 36:14
  Speaker 2: good diversification up front. And even when you're at the
• 36:17
  Speaker 2: two thousand dollars, which I think is brilliant, you do
• 36:20
  Speaker 2: have less share selection and less etf options than you
• 36:24
  Speaker 2: do when you have five thousand dollars. So it's important
• 36:28
  Speaker 2: to remember the reason why you're investing, yes, investing for
• 36:32
  Speaker 2: the long term is that if you were saying, oh,
• 36:34
  Speaker 2: I use my micro investing platform to save one thousand dollars,
• 36:37
  Speaker 2: then I pull it out and spend it. I think
• 36:39
  Speaker 2: that is probably not the point of it. But if
• 36:42
  Speaker 2: we're pulling that thousand dollars out because it's just been
• 36:45
  Speaker 2: ticking away in the back, we've been doing some roundups,
• 36:48
  Speaker 2: it's been incidental, we've been learning, then going and putting
• 36:52
  Speaker 2: it on a bigger platform that is for the long term.
• 36:55
  Speaker 2: It's a really good idea in saying that if your
• 36:59
  Speaker 2: micro investor platform is not performing, I would absolutely be
• 37:03
  Speaker 2: waiting until it bounces back so that you don't end
• 37:06
  Speaker 2: up cashing out for a loss. So yes, I think
• 37:09
  Speaker 2: it's one of those things where, yeah, it's okay to
• 37:12
  Speaker 2: move platforms, but it's really important to remember that timing
• 37:15
  Speaker 2: is everything when selling.
• 37:17
  Speaker 1: Yeah, okay, Yeah, that's a really interesting question from Jess.
• 37:23
  Speaker 1: I think because we can kind of confuse investing the messaging.
• 37:27
  Speaker 2: That we Yeah, it's a really bad question.
• 37:30
  Speaker 1: Yeah, yeah, because you would think, oh, well, micro investing,
• 37:32
  Speaker 1: how is that different? Like long term is the goal,
• 37:35
  Speaker 1: but that's not necessarily the case with micro investing.
• 37:38
  Speaker 2: So that's it's just how I see it and can
• 37:41
  Speaker 2: see how the platforms work. And for the long term, yes,
• 37:44
  Speaker 2: maybe you get to your goal amount in your portfolio,
• 37:47
  Speaker 2: but you don't have the flexibility of taking certain income
• 37:50
  Speaker 2: streams and working out what's going on with it. And
• 37:52
  Speaker 2: I think it's it's a really easy way to start
• 37:55
  Speaker 2: your investment journey, but for me, it wouldn't be the
• 37:58
  Speaker 2: long term. And I guess that's why it's called micro investing.
• 38:01
  Speaker 2: And it's not just small amounts, but it's like the
• 38:04
  Speaker 2: start point, which I really like. And as I said,
• 38:07
  Speaker 2: I love the platforms. I just think that there is
• 38:09
  Speaker 2: a right platform for a right time, and not every
• 38:12
  Speaker 2: single platform works for every single person. Like that's why
• 38:15
  Speaker 2: there are so many. That's why she is on the
• 38:17
  Speaker 2: Money talks about so many different ones, because you might
• 38:20
  Speaker 2: adore shares Ese or you might adore something else, and like,
• 38:22
  Speaker 2: that's okay. My goal is actually not one platform.
• 38:26
  Speaker 1: It's to just get you invested.
• 38:28
  Speaker 2: But if we're talking about a particular platform on a podcast,
• 38:31
  Speaker 2: you know that they've been vetted by us. You know
• 38:33
  Speaker 2: that we like what they've got to offer and the
• 38:35
  Speaker 2: team are really good and they're legit, so I guess
• 38:38
  Speaker 2: it just goes to show that there are lots of
• 38:40
  Speaker 2: different options on the market and it's actually up to
• 38:43
  Speaker 2: you to choose.
• 38:44
  Speaker 1: Hundi p. I think we also did a whole episode
• 38:47
  Speaker 1: on micro investing. Yes we did, my friend, I can't
• 38:50
  Speaker 1: remember that far back, but that will be really helpful
• 38:53
  Speaker 1: for you as well, Jess. Okay, let's move on be
• 38:56
  Speaker 1: to our final question. This is no fun, okay, so
• 39:01
  Speaker 1: esther she is keen to know some tips for people
• 39:04
  Speaker 1: living in regional and remote Australia when it comes to finance.
• 39:08
  Speaker 2: This is such a good one Georgia, and we actually
• 39:10
  Speaker 2: have so many people in our community who are remote.
• 39:13
  Speaker 2: And that's the thing I love about podcasts. You could
• 39:16
  Speaker 2: be anywhere listening to our podcast. You don't have to
• 39:18
  Speaker 2: be in the city, you don't have to be in Melbourne.
• 39:21
  Speaker 2: You could be literally standing in the middle of Australia
• 39:24
  Speaker 2: looking at bu Laru getting financial advice in your ears.
• 39:27
  Speaker 1: Which I adore. And the thing.
• 39:30
  Speaker 2: About living remotely is lots of our listeners might not
• 39:33
  Speaker 2: even realize how expensive it can actually be to live
• 39:35
  Speaker 2: in more regional spots in Australia. So I guess it's
• 39:38
  Speaker 2: worth explaining a little bit about why that is, because
• 39:41
  Speaker 2: I first thought you might go, yeah, but probably so
• 39:45
  Speaker 2: cheap out there, and it's like, yeah, but do you
• 39:47
  Speaker 2: know how much food is out there? And the first
• 39:50
  Speaker 2: kind of quote opportunity cost Georgia is that people who
• 39:53
  Speaker 2: live regionally might not have the option to work in
• 39:56
  Speaker 2: high paying roles that larger corporations offer. For example, if
• 40:00
  Speaker 2: you're living in Melbourne, CBD and you don't like your role,
• 40:03
  Speaker 2: you can go work at another place Georgia. If you
• 40:06
  Speaker 2: were potentially working for a bank you don't like that,
• 40:09
  Speaker 2: you're probably able to go work in a different bank
• 40:11
  Speaker 2: branch in the city because there are so many that
• 40:14
  Speaker 2: are accessible. But if you live remotely, there might just
• 40:17
  Speaker 2: be one bank branch, and if you're a bank teller,
• 40:20
  Speaker 2: there's actually no other options without leaving your town, which
• 40:25
  Speaker 2: really limits choice and actually really limits opportunity. And there's
• 40:29
  Speaker 2: also the barrier of being able to afford access to
• 40:32
  Speaker 2: affordable groceries like I know, Georgia, you and I love Audi,
• 40:36
  Speaker 2: but that's not actually accessible to everybody in our community
• 40:40
  Speaker 2: because often AUDI isn't actually available to you. So we
• 40:43
  Speaker 2: say go shop at Audi. It's really cost effective, but
• 40:46
  Speaker 2: a lot of our community are going to go they
• 40:48
  Speaker 2: like AUDI, that's in another state. We can't even get
• 40:51
  Speaker 2: to it, and even some larger supermarkets aren't that accessible
• 40:55
  Speaker 2: for some of our community. Plus, produce in small supermarkets
• 40:59
  Speaker 2: can be so much more expensive because of how far
• 41:02
  Speaker 2: it's had to travel to actually be for sale on
• 41:05
  Speaker 2: the shelf in that shop. So there are also multiple
• 41:08
  Speaker 2: other factors and it's actually something that we are looking
• 41:10
  Speaker 2: into doing a whole episode on, including conversations with our
• 41:13
  Speaker 2: friends and family who live regionally, so watch this space.
• 41:17
  Speaker 2: But in terms of financial tips, Georgia make the most
• 41:20
  Speaker 2: of smaller, tight knit communities and set up a side hustle.
• 41:24
  Speaker 2: Fewer people ge makes it easier to network. So if
• 41:27
  Speaker 2: you're looking to make some extra casholer talk to people
• 41:29
  Speaker 2: about any services they need that you might be able
• 41:32
  Speaker 2: to help with. Babysitting, dog walking, lawn mowing. You can
• 41:35
  Speaker 2: do it all, my friend.
• 41:37
  Speaker 1: How do you mow a law in other news, have
• 41:40
  Speaker 1: you ever done it? Go, let's move on.
• 41:44
  Speaker 2: I mean I know the process. I know that my
• 41:47
  Speaker 2: dad puts petrol in his law mower, and you can
• 41:50
  Speaker 2: buy non petrol law mowers nowadays, but my dad says
• 41:53
  Speaker 2: they're not legit, so I don't really know at this
• 41:58
  Speaker 2: point in life. My partner who has a fascination with
• 42:01
  Speaker 2: lawns can actually keep that, and if anybody else's partners
• 42:04
  Speaker 2: is obsessed with lawns, as my partner, we should probably
• 42:08
  Speaker 2: start up. But helpfully Georgia, if buying property is something
• 42:11
  Speaker 2: you want to do, it's actually significantly more affordable to
• 42:14
  Speaker 2: do so in a regional town, which is a nice benefit.
• 42:16
  Speaker 2: But it can also be harder to shop more frugally
• 42:19
  Speaker 2: in small towns too, because as I said before, they
• 42:22
  Speaker 2: might not have huge supermarkets or audis. But think about
• 42:26
  Speaker 2: every other item that you need to purchase, like shoes
• 42:29
  Speaker 2: and clothes and hair accessories and literally make up. Everything
• 42:33
  Speaker 2: needs to either come from online or you need to
• 42:36
  Speaker 2: travel a significant distance. I et petrol, money and time
• 42:41
  Speaker 2: to go and get those things. So I think it's
• 42:43
  Speaker 2: more about accessibility. So I think when it comes to
• 42:45
  Speaker 2: living remotely, just being savvy about your shopping. What can
• 42:49
  Speaker 2: you order online? Can you do that remotely? Are the
• 42:51
  Speaker 2: things that you could do in your community or online
• 42:54
  Speaker 2: that could increase your income? So as much as I
• 42:57
  Speaker 2: don't have a whole heap of hot tips. I hope
• 42:59
  Speaker 2: that is helped and keep your ears peeled, because we
• 43:02
  Speaker 2: do have an episode coming in that space.
• 43:04
  Speaker 1: Honey, pe once again, I'd be really curious to hear
• 43:08
  Speaker 1: from our friends who do live regionally and remotely. To
• 43:12
  Speaker 1: hear firstly their struggles as we've tried to list that's
• 43:16
  Speaker 1: what we've gathered, but there's actually not that much information
• 43:18
  Speaker 1: out there at this stage. But also to hear their
• 43:21
  Speaker 1: financial tips and how they manage their money when they
• 43:25
  Speaker 1: don't have easy access to everything as we city folk do.
• 43:28
  Speaker 2: Yeah. Gee, straight under the bus for you today. You're
• 43:31
  Speaker 2: going to post in the Facebook group and we're going
• 43:33
  Speaker 2: to have a thread discussing exactly.
• 43:35
  Speaker 1: That stunning love it. I'll accompany it with a little
• 43:41
  Speaker 1: bit of a photoshop job. I right, Yeah, I.
• 43:43
  Speaker 2: Think that'll be good. Could you photoshop us regionally?
• 43:45
  Speaker 1: That would be really nice? Yeah, thank you, yes, done?
• 43:48
  Speaker 1: All right, Thank you again to everyone who's sent in
• 43:52
  Speaker 1: the questions. You're all bloody legends. And yeah, as we
• 43:55
  Speaker 1: said as well, if you did enjoy the episode, let
• 43:57
  Speaker 1: us know and we will look at doing a little
• 44:00
  Speaker 1: second EP, maybe a third.
• 44:02
  Speaker 2: Yeah, if you like Q and AS. I've had fun
• 44:04
  Speaker 2: answering these, and I think, gee, you had fun listening
• 44:07
  Speaker 2: to them.
• 44:08
  Speaker 1: I'd go with that. I was also surprised no one
• 44:12
  Speaker 1: asked how Victoria does her hair. I thought that would
• 44:14
  Speaker 1: come up like fifty today.
• 44:16
  Speaker 2: I have it in a ponytail, so very simply. My friends,
• 44:21
  Speaker 2: all right, they let's leave it there. Yeah, look, I
• 44:23
  Speaker 2: think that is all we have time for today. So
• 44:26
  Speaker 2: just before we head off, we'd like to acknowledge and
• 44:28
  Speaker 2: pay respect to Australia's Aboriginal and tourist rate islander people's.
• 44:32
  Speaker 2: They're the traditional custodians of the lands, the waterways and
• 44:36
  Speaker 2: the skies all across Australia. We thank you for sharing
• 44:39
  Speaker 2: and for caring for the land on which we are
• 44:41
  Speaker 2: able to learn. We pay our respects to elders past
• 44:44
  Speaker 2: and present, and we share our friendship and our kindness.
• 44:48
  Speaker 1: And remember, as always, guys, that the advice shared on
• 44:50
  Speaker 1: She's on the Money is general in nature and does
• 44:53
  Speaker 1: not consider your individual circumstances. She's on the Money exists
• 44:56
  Speaker 1: purely for educational purposes and should not be relied upon
• 45:00
  Speaker 1: to make an investment or a financial decision. And we promise.
• 45:03
  Speaker 1: Victoria Devine is an authorized representative of Australia Pacific Funds
• 45:07
  Speaker 1: Management Proprietary Limited ABN three four one three two four
• 45:11
  Speaker 1: six three two five seven AFSL three three nine one
• 45:15
  Speaker 1: five one nurse see you next week.
• 45:17
  Speaker 2: Guys.
• 45:18
  Speaker 1: Bye guys, Bay Games.
• 45:21
  Speaker 3: That was weird from two uh tony leave that in
• 45:26
  Speaker 3: no