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She Took a Risk on a Seachange… and Accidentally Made the Best Money Move of Her Life · She's On The Money

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Speaker 1: My name's Aatasha Bamblet. I'm a proud First Nations woman
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Speaker 1: and I'm here to acknowledge country t Glenn Young Ganya
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Speaker 1: Nianar Kaka yah y and beIN Ahaka nian Our gay
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Speaker 1: In Nimbina yakarum jar Dominyama, Domaga Ithawakaman damon Imlan bomber
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Speaker 1: bang Gadabomba in and now in wakah ghan On yakram
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Speaker 1: jar Watnadaa. Hello, beautiful friends, we gather on the lands
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Speaker 1: of the Aboriginal people. We thank acknowledge and respect the
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Speaker 1: Abiginal people's land that we're gathering on today. Take pleasure
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Speaker 1: in all the land and respect all that you see.
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Speaker 1: She's on the Money podcast acknowledges culture, country, community and connections,
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Speaker 1: bringing you the tools, knowledge and resources for you to thrive.
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Speaker 2: She's on the Money.
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Speaker 3: She's on the Money.
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Speaker 4: Hello, and welcome to She's on the Money, the podcast
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Speaker 4: that lets you be pervy about other people's money habits
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Speaker 4: for educational purposes, of course. Welcome back to another one
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Speaker 4: of our Money Diaries episodes where I get the absolute
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Speaker 4: pleasure of sitting down and having a chat with one
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Speaker 4: of our She's on the Money community members all about
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Speaker 4: their money story, and let's jump straight into it, because
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Speaker 4: this week I got a message and it went just
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Speaker 4: like this, Hi, she's on the money. At the end
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Speaker 4: of twenty twenty, we took a big risk and sold
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Speaker 4: our house to move our family to the beach. I
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Speaker 4: left my permanent job for a temporary contract, and my
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Speaker 4: husband had no job to go to. At the time,
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Speaker 4: we were in debt and had no clue about money.
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Speaker 4: Fast forward five years later, and now we have our
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Speaker 4: house savings, we are consistently investing, and we are in
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Speaker 4: the process of buying an investment property. Money Diarist, what
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Speaker 4: a glow up.
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Speaker 2: Sounds so strained when you say it back.
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Speaker 4: It's my favorite thing reading your money story to you,
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Speaker 4: because then you go, hold on, I'm actually pretty cool,
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Speaker 4: aren't I?
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Speaker 2: Yeah, exactly, I love it.
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Speaker 4: Let's learn a little bit more about you before we
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Speaker 4: dive any further in. I want to know what would
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Speaker 4: your grade your money habits from A three to F
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Speaker 4: if I asked you to give them a grade.
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Speaker 2: I think now where we are now, I would give
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Speaker 2: myself probably a B A B.
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Speaker 4: All right, let's learn more about that money drives. I
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Speaker 4: want to know, tell me a bit more about your
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Speaker 4: money story.
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Speaker 2: Well, my money story started, I suppose when I was
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Speaker 2: a child. My mom and dad just very hard working people,
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Speaker 2: but also very conservative people. They raised me to work hard,
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Speaker 2: by a house, stay in the house, continue to work,
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Speaker 2: paid off, then you retire. So I didn't really know
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Speaker 2: much about investing. I didn't know much about investment properties
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Speaker 2: or anything like that. Yeah, they were just very safe people,
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Speaker 2: and when it came to money, I think we lived
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Speaker 2: a very sheltered life.
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Speaker 4: That seems fair, but how do you get to the
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Speaker 4: point where living a sheltered life you then go Okay,
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Speaker 4: my parents were pretty like conservative, I'm going to quit
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Speaker 4: my job, go to a like temporary contract, my husband
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Speaker 4: doesn't have a job when we're moving to the beach,
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Speaker 4: Like what happens in between that? Because to me, that like,
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Speaker 4: I love that for you, but my god, I would
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Speaker 4: have anxiety if my partner even suggested that to me.
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Speaker 2: Well, my parents did have a little bit of anxiety,
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Speaker 2: I think when I told them that that's what we
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Speaker 2: were planning on doing, their comments were and their advice
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Speaker 2: was very i don't know, for lack of better word, negative. Yeah, okay, yeah,
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Speaker 2: they didn't think it was a very good idea. And
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Speaker 2: you know, I can understand why.
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Speaker 4: You can see why when you're trying to protect someone,
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Speaker 4: you go, oh, babe, I don't know if that's a
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Speaker 4: good idea, like that seems pretty risky, like also twenty
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Speaker 4: twenty before or after COVID announcement.
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Speaker 2: Oh my gosh, yes, don't know. I just felt in
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Speaker 2: my heart that it was the right thing to do.
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Speaker 2: It was I was being I don't know, pulled in
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Speaker 2: that direction. Yeah, yeah, I just knew that if I
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Speaker 2: didn't take the risk, you'd regret it. I would, yeah,
4:12
Speaker 2: we would. We would regret it.
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Speaker 4: Yeah, And so tell me how that worked out, because yeah,
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Speaker 4: big risk, but you know what comes with big risk,
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Speaker 4: big reward and sometimes like you put your money where
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Speaker 4: your mouth is and then you're like, glad I did that,
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Speaker 4: because I'm in a much better position. How's the beach.
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Speaker 2: It's lovely. I mean a lot of the time it
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Speaker 2: does rain, but no, the beach. This is our home now,
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Speaker 2: this is where we call home.
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Speaker 4: A door and does it feel like home? Like you said,
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Speaker 4: or you were like, oh, I'm being pulled here, like
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Speaker 4: was there someone there or something there? Or you were
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Speaker 4: just like, no, we meant to live like over here.
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Speaker 2: No, well, my husband's parents live close by. But you know,
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Speaker 2: as much as we love them, we didn't move up
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Speaker 2: to the same area for them. It's lovely to be
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Speaker 2: close to them, it really is. But yeah, we just
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Speaker 2: we knew that that's the lifestyle we wanted to live
5:00
Speaker 2: and to give our boys. So that's what we did,
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Speaker 2: and we decided to take a risk.
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Speaker 4: I love that. And you said you have boys. Have
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Speaker 4: you got two kids?
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Speaker 2: Two boys? Yes? So two boys, yeah, yeah, two boys,
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Speaker 2: one thirteen, the other one is ten. But at the
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Speaker 2: time they were oh, I think maybe five and eight.
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Speaker 4: That's crazy. How time flies, hay, Like twenty twenty feels
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Speaker 4: like yesterday at the same time as being forever a guy.
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Speaker 2: It's crazy.
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Speaker 4: It's actually insane. So like fast forward to now, like
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Speaker 4: you've obviously changed everything before I get into like what
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Speaker 4: you do and how much money you earn? Like what
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Speaker 4: changed because you go from going, oh, I had a
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Speaker 4: permanent job to a temporary contract and like my husband
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Speaker 4: had no job. So you get there, you've moved to
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Speaker 4: the beach. You had this temporary contract. What happened with that?
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Speaker 2: Well, I just stayed in that temporary contract in the
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Speaker 2: hope that it would become permanent. It eventually did.
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Speaker 4: Ah, money win, money win by life win.
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Speaker 2: Yeah, I don't work there anymore, that's okay, Yes, And
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Speaker 2: my husband. The irony of all of this is that
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Speaker 2: at the end of two thousand nineteen, he just graduated
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Speaker 2: from a Bachelor of Aviation Management.
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Speaker 4: Bougie.
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Speaker 2: Yeah, But twenty twenty came and the whole world shutdown.
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Speaker 4: So oh, that's that's not so bougie. That's not so good.
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Speaker 2: No, that was not bougie. That was very tough, and
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Speaker 2: I did feel for him. I felt so.
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Speaker 4: I mean, at least you were closer to the beach,
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Speaker 4: exactly exactly.
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Speaker 2: That was a good part of it. In the company
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Speaker 2: that he was working for, he had to drop his
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Speaker 2: hours to part time to be able to study full time,
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Speaker 2: and so when the world shut down and he couldn't
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Speaker 2: get a job in aviation, he tried to get his
6:34
Speaker 2: full time hours back and it didn't happen. And then
6:38
Speaker 2: he tried to get a transfer to where we were
6:40
Speaker 2: moving to and they weren't allowing that. So it was
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Speaker 2: very frustrating. I felt horrible for him, and I just
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Speaker 2: said to him, I said, babe, just quit. Just quit.
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Speaker 2: We'll sort it out. And that's how he ended up
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Speaker 2: with my job.
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Speaker 4: Oh well, you know what. Sometimes big risk, big reward.
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Speaker 4: So tell me before we get any further, how's your
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Speaker 4: husband now, kid? Does he have a job again?
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Speaker 2: He is?
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Speaker 4: He much better? He does, he does, because that would
7:04
Speaker 4: have been stressful.
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Speaker 2: Yeah, it was, it was, but we just sort of
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Speaker 2: took it day by day. He does have a job
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Speaker 2: now in the aviation industry, which is really good. So
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Speaker 2: I think he's Yeah, he's quite he's quite happy.
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Speaker 4: I love that. So now tell me a little bit
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Speaker 4: more about the personal situation. What do you do for
7:18
Speaker 4: work and how much money do you earn.
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Speaker 2: I used to work in healthcare, but the burnout is real,
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Speaker 2: so I had to take a step back from that
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Speaker 2: and I did that at the end of last year.
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Speaker 2: I now work for a higher education institution and at
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Speaker 2: the moment, I currently earn about eighty two thousand.
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Speaker 4: Oh, very nice, and.
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Speaker 2: With seventeen percent super on top of that.
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Speaker 4: Okay, that's very sexy.
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Speaker 2: That is a big draw card.
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Speaker 4: I feel like higher education in general is just so underrated,
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Speaker 4: Like so many people are always like, oh my god,
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Speaker 4: what can I do for my career and then girl
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Speaker 4: higher ed like work for a university, do something like
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Speaker 4: that because their superannuation is and also like they have
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Speaker 4: salary bands and stuff. So everything just keeps moving and
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Speaker 4: I think that that's really sexy. I need to be
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Speaker 4: really pervy. What kind of income does your husband earn
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Speaker 4: in the aviation industry?
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Speaker 2: He earned roughly this last financial year he learnt he
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Speaker 2: earns just on one hundred thousand, But yeah, he's in
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Speaker 2: the process of moving roles at the moment. We're just
8:23
Speaker 2: sort of waiting for that to happen.
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Speaker 4: Yeah, so household income of about one hundred and eighty
8:26
Speaker 4: two grand, which is good, which is nice. What does
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Speaker 4: that I obviously don't know a lot about what you
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Speaker 4: mean when you say you're moving to the beach. I
8:34
Speaker 4: can see guys being really perfy. She's based in Queensland,
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Speaker 4: so the beach is probably really nice. It's not some
8:40
Speaker 4: Melbourne beach. But when you say moved to the beach,
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Speaker 4: have we moved somewhere like this is obviously in New
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Speaker 4: South Wales, But like, are we moving to an expensive
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Speaker 4: beach like Bondai Beach or are we like a little
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Speaker 4: bit more rural but still coastal, Like, what type of
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Speaker 4: living expenses exist in the area you're in.
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Speaker 2: I mean, we are on the Sunshine Coast, so I
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Speaker 2: guess it depends on your budget. I mean, I personally
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Speaker 2: think that things are quite expensive.
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Speaker 4: So tell me a little bit more about you moved.
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Speaker 4: You said that you're in the process of buying an
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Speaker 4: investment property. You obviously have like bought the family home.
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Speaker 4: You're all good to go on that front. You've got
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Speaker 4: your house, You've got your savings. What are your big
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Speaker 4: money goals? What are you currently working towards?
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Speaker 2: Well, when I wrote in it was to get the
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Speaker 2: investment property. We found out yesterday that it's all sorted,
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Speaker 2: so we should be settling there.
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Speaker 4: Oh so you got congrats? How exciting?
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Speaker 2: That is really exciting. Yeah, I mean I still have
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Speaker 2: no idea what I'm doing, but we'll figure it out
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Speaker 2: as we go along.
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Speaker 4: Tell me what do you mean when you say I
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Speaker 4: don't know what we're doing, like in terms of purchasing,
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Speaker 4: or in terms of like getting at least out, or
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Speaker 4: like just I don't even know where to start all
9:47
Speaker 4: of that.
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Speaker 2: All of that. I'm just trying to work out what
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Speaker 2: our new financial situation is going to be taking on
9:56
Speaker 2: an extra loan, trying to work out an instructure, how
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Speaker 2: that's going to work, and what that's going to look
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Speaker 2: like with our money and our income and our bank accounts,
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Speaker 2: and how we're going to structure it even like you said,
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Speaker 2: right down to getting a tenanty and how do I
10:10
Speaker 2: go about doing that? Yeah, so all of that stuff.
10:13
Speaker 4: If you've got any questions, just dm me. Turns out
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Speaker 4: I don't know a fair bit about property.
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Speaker 2: Amazing, thank you.
10:18
Speaker 4: Yeah, yeah, I know a guy who knows a guy,
10:20
Speaker 4: and I am the guy.
10:20
Speaker 2: I might take you up on that offer. Yeah, so
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Speaker 2: that settles next week.
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Speaker 4: That's so exciting.
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Speaker 2: I know it is exciting. But I think our big
10:28
Speaker 2: money goal, and we've been speaking about this for quite
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Speaker 2: some time, is overseas property. Okay, yeah, so my husband,
10:36
Speaker 2: luckily is a citizen of the EU.
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Speaker 4: Oh okay, yeah, oh I see where this is going.
10:42
Speaker 4: I was like, overseas property goal, what are you talking about?
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Speaker 2: Yeah? Yeah, yeah, yeah, So that's where I think eventually
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Speaker 2: we want to get to.
10:49
Speaker 4: So you've basically married a prince room Dubai. I love
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Speaker 4: this for us, So tell me about owning property overseas.
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Speaker 4: So for those of you playing along in the EU.
10:59
Speaker 4: How much text do you you pay money diarist?
11:01
Speaker 2: It's a great question. I haven't figured that out. And
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Speaker 2: does it depend on which country you are in?
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Speaker 4: It depends on which country you earned the income in.
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Speaker 4: But if you then purchased a property, like say in Dubai,
11:13
Speaker 4: they actually don't pay tax, which is a money win.
11:16
Speaker 4: But if you purchased a property there, any of the
11:18
Speaker 4: capital gains, any of the benefit to that property is
11:21
Speaker 4: also not taxed because that would have been earned over there.
11:24
Speaker 4: So I can see why maybe your partner is very
11:27
Speaker 4: interested in owning overseas. For a lot of people, it
11:30
Speaker 4: can be a I wouldn't say for everybody. So when
11:33
Speaker 4: I say for a lot of people, I mean for
11:35
Speaker 4: a lot of people who are citizens of the EU.
11:38
Speaker 4: Like that makes sense, But I think it's each to
11:42
Speaker 4: their own in terms of whether it's beneficial. But I
11:45
Speaker 4: wouldn't be like listening to this podcast and going wow,
11:48
Speaker 4: I never considered overseas property because that's really risky. But
11:50
Speaker 4: if you have ties to that country and can make
11:53
Speaker 4: it work, it could be potentially very beneficial. The thing, though,
11:58
Speaker 4: is where you are registered as a tax and you
12:00
Speaker 4: will have to talk to your accountant about that, because
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Speaker 4: there is the potential and I don't know property law
12:05
Speaker 4: over there, not well enough. I have a few XPACT
12:08
Speaker 4: clients so kind of know a little bit, but not
12:10
Speaker 4: enough to advise properly. But talk to an accountant. If
12:13
Speaker 4: you are based as a tax resident in Australia, it's
12:16
Speaker 4: very likely that any income you earned because you didn't
12:19
Speaker 4: spend any time in the other country is taxable based
12:22
Speaker 4: on Australia's tax law. So it would all be about
12:26
Speaker 4: trusts and how that's held and what that looks like,
12:29
Speaker 4: and like getting the right structure as well as the
12:31
Speaker 4: right property purchase. So like first thing I'd look at
12:34
Speaker 4: is accountant that's good with expats, that can tell you
12:37
Speaker 4: about the structure that you would need to be successful
12:40
Speaker 4: in that venture.
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Speaker 2: Good to know, yep, sorry side note, No, no, no,
12:44
Speaker 2: that's good to know because, like I said, it's a
12:45
Speaker 2: very long distance dream at this stage, but with how
12:48
Speaker 2: fast time flies, I feel like it's going to be
12:50
Speaker 2: here before you know it.
12:51
Speaker 4: And exactly twenty twenty was yesterday, exactly.
12:53
Speaker 2: We just need to get our ducks in a row.
12:55
Speaker 2: So good to know, thank you.
12:56
Speaker 4: But that's really fun and that could be like a
12:58
Speaker 4: fun adventure to go on, depending on what the financials
13:02
Speaker 4: around it are. So big money goal is potentially owning
13:05
Speaker 4: overseas property. What other goals are you currently working towards?
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Speaker 2: I think just getting ourselves to that point. I've always
13:13
Speaker 2: said that I don't want to work past fifty. I
13:14
Speaker 2: don't know whether that's going to eventuate or not, but
13:17
Speaker 2: I'm trying really hard. I'm trying really hard. Yeah, I
13:20
Speaker 2: don't want to be working until I'm sixty seven. I
13:22
Speaker 2: don't want to do that.
13:24
Speaker 4: I get that. All right, Let's go to a quick
13:26
Speaker 4: break because on the flip side, I want to know
13:28
Speaker 4: a little bit more about this plan to hopefully retire
13:31
Speaker 4: before fifty. And also I need to ask you about investments,
13:34
Speaker 4: because you can't just say, oh, we just settled like
13:37
Speaker 4: or we're settling next week on an investment property and
13:39
Speaker 4: I am not asking you about the numbers. So let's
13:41
Speaker 4: get into that after this break. All right, we are
13:47
Speaker 4: back money Rust, and I feel like this is a
13:49
Speaker 4: really fun money story. Like you took a massive risk,
13:52
Speaker 4: you moved from where you were living towards the beach,
13:55
Speaker 4: your husband didn't have a job, you were working on
13:57
Speaker 4: a temporary contract, and you've kind of had debt and
14:01
Speaker 4: no clue about money, and you've gone in the last
14:04
Speaker 4: five years. You have your family home, you have savings,
14:07
Speaker 4: you're consistently investing, which by the way, I can't wait
14:09
Speaker 4: to dive into. And you just bought your investment property. Like, sorry,
14:13
Speaker 4: that's a good deal. And we just learned that you
14:15
Speaker 4: have a household income of around one hundred and eighty
14:18
Speaker 4: thousand dollars, which I would say is very relatable. So
14:22
Speaker 4: I need to dig into this a little bit deeper.
14:24
Speaker 4: Let's start with the investment property. What does it cost
14:27
Speaker 4: to get into an investment property? Like, tell me all
14:29
Speaker 4: the nitty gritty.
14:30
Speaker 2: Well, we bought our investment property, and it's probably in
14:35
Speaker 2: a little bit of a rural area. We paid four
14:38
Speaker 2: hundred and ten thousand, and I think just based where
14:41
Speaker 2: it is. I was having a chat with the real
14:44
Speaker 2: estate agent and she put me in contact with somebody
14:46
Speaker 2: else who said that they could probably lease it for
14:49
Speaker 2: about five sixty to five sec. Yeah, a week. So
14:54
Speaker 2: that's where we're at with the investment property.
14:56
Speaker 4: And how are you feeling about that?
14:58
Speaker 2: I am excited, I am excited. I'm quite proud of
15:00
Speaker 2: us for achieving this and coming this far. But again,
15:03
Speaker 2: I still have no real idea of what we're doing
15:06
Speaker 2: or how we're going to make it work. But yeah,
15:09
Speaker 2: I guess we will sort of just learn as we
15:11
Speaker 2: go along.
15:12
Speaker 4: And I feel like just doing some really quick maths
15:15
Speaker 4: off the top of my head. If you purchase for
15:18
Speaker 4: four hundred and ten thousand dollars and then you said
15:20
Speaker 4: that you were leasing it out, was it five sixty
15:23
Speaker 4: a week?
15:23
Speaker 2: Yeah, that's the hope.
15:24
Speaker 4: That's very nice because that's a rental yield of around
15:27
Speaker 4: seven just over seven percent, So that is, from my
15:31
Speaker 4: perspective as an ex financial advisor, pretty good. Damn rental property.
15:37
Speaker 4: Was that something that you were quite strategic about, because
15:41
Speaker 4: like rental yield, Like, if anybody's talking about rental properties,
15:44
Speaker 4: I don't care what it looks like. If you're like, oh,
15:46
Speaker 4: it's beautiful Victoria, it's got a bath, I get in
15:49
Speaker 4: the bin. I don't even care. We are talking about
15:51
Speaker 4: rental yield and creating wealth. We're not talking about our
15:54
Speaker 4: family home. We're talking about the amenities of the apartment
15:57
Speaker 4: block that you're buying in. I just want to know,
15:59
Speaker 4: can we secure good long term tenants? Can we look
16:03
Speaker 4: after them? And can I get a good rental yield
16:05
Speaker 4: on that property? Sorry, if you put a property and
16:07
Speaker 4: in front of me and said they cover up four ten,
16:10
Speaker 4: it'll pay seven percent. Okay, take my money. That's a
16:14
Speaker 4: good deal. That's a good deal. So I see why
16:16
Speaker 4: you've jumped into this. Did you have advice for this?
16:18
Speaker 4: Did you go shopping for this?
16:20
Speaker 2: How?
16:21
Speaker 1: Oh?
16:21
Speaker 2: Well, I've done a lot of this off my own back.
16:24
Speaker 2: I've done a lot of research. I spoke to a
16:26
Speaker 2: lot of people.
16:26
Speaker 4: See you said you don't know what you're doing in
16:28
Speaker 4: the first half of this episode, and I'm uncovering that
16:31
Speaker 4: maybe you're the mastermind behind all of it.
16:33
Speaker 2: Don't not a mastermind? I wouldn't say that. Oh my goodness,
16:36
Speaker 2: but I'd like to do the research first. I questioned
16:41
Speaker 2: my decision when I finally make it, and you know,
16:44
Speaker 2: I wonder, Oh, it's just the right thing to do.
16:46
Speaker 2: You know what if I have made the wrong choice.
16:49
Speaker 2: But I was looking, well, we were looking for investment
16:52
Speaker 2: properties every state of this country, everywhere like you name it.
16:55
Speaker 2: That's where we were looking. And we eventually settled on
16:58
Speaker 2: where we bought the property. And I think a little
17:02
Speaker 2: bit of it was luck, A little bit of it
17:05
Speaker 2: was planning.
17:06
Speaker 4: It's really funny how the more planning you do, the
17:08
Speaker 4: luckier you get, isn't it.
17:11
Speaker 2: Well maybe if that's the way it goes. I love that.
17:14
Speaker 4: I feel like it's actually not luck. It's all strategy
17:16
Speaker 4: and just like waiting and like people think they get lucky.
17:19
Speaker 4: It's like, I think that we create our own luck,
17:21
Speaker 4: and I think that putting it down to luck it
17:24
Speaker 4: diminishes all that research that you did, because like, if
17:27
Speaker 4: it was luck, you would have just pulled an investment
17:30
Speaker 4: property out of the hat and be like, it's so
17:31
Speaker 4: lucky we got one. No, that seven point one percent
17:36
Speaker 4: gross yield is very attractive.
17:38
Speaker 2: Yeah, good point.
17:39
Speaker 4: We're not lucky, we're strategic. We are strategic, so you
17:42
Speaker 4: don't have to obviously tell me more about that. So
17:45
Speaker 4: four hundred and ten thousand dollars purchase price, what type
17:47
Speaker 4: of deposit did you have to cough up for that?
17:49
Speaker 2: So we had to pull a bit of equity from
17:51
Speaker 2: our residential property where we live, and I don't exactly
17:55
Speaker 2: know how our broker worked out the numbers, but we
17:59
Speaker 2: ended up pulling a hundre thirty five thousand from our
18:02
Speaker 2: mortgage and we use that as a deposit.
18:04
Speaker 4: Yep, good deal. And that's a good deal. So you
18:06
Speaker 4: didn't have to cough up any actual heart cash. You
18:09
Speaker 4: just worked on equity. Now, you would have purchased that
18:12
Speaker 4: property that we're talking about, this family home, within the
18:14
Speaker 4: last five years. When did you purchase your family home?
18:16
Speaker 4: Was I in twenty twenty when you moved to the beach?
18:18
Speaker 2: No, that was in twenty twenty one.
18:21
Speaker 4: Okay, so I've just got questions, good questions, I promise.
18:25
Speaker 4: How much did you purchase your family home for?
18:27
Speaker 2: We purchased it for seven hundred and forty six thousand.
18:32
Speaker 2: When we sold our house to move to the beach.
18:34
Speaker 2: We had a nice little profit at that time, and
18:37
Speaker 2: I think it was the profit that we made from
18:39
Speaker 2: that house was about one hundred and thirty thousand, which
18:43
Speaker 2: we used to put down on our house that we
18:46
Speaker 2: live in now. Yeah.
18:47
Speaker 4: Yeah, So you purchased that for seven hundred and forty
18:50
Speaker 4: six thousand dollars and now four ish years later, you've
18:54
Speaker 4: bought an investment property, which tells me you would probably
18:57
Speaker 4: have a recent bank valuation on the property that you
18:59
Speaker 4: live in. What is it worth today?
19:01
Speaker 2: I checked just the other day and it was just
19:04
Speaker 2: over the mill. Oh excuse me, yeah, I think it
19:08
Speaker 2: was like a million and sixty thousand or something like that.
19:11
Speaker 4: That is a money win. So you've increased your equity
19:13
Speaker 4: in your property within four years by like a literally
19:16
Speaker 4: quarter of a million dollars money win, and then you
19:19
Speaker 4: were able to use that to get into your next property.
19:22
Speaker 4: If I go back to the end of twenty twenty,
19:25
Speaker 4: when you took that really big leap of faith and
19:27
Speaker 4: say we're moving to the beach, and I got to
19:30
Speaker 4: be like, hey, so money diarist, you will have purchased
19:33
Speaker 4: your property. You would have like about two hundred I
19:35
Speaker 4: reckon in my head, just doing some mass you probably
19:37
Speaker 4: had about two hundred thousand dollars worth of equity. You'll
19:40
Speaker 4: take out one hundred and thirty and buy your first
19:41
Speaker 4: investment property. Is that the reality you saw happening for you?
19:44
Speaker 2: You got at all? Oh my goodness, not at all.
19:46
Speaker 2: Like like I said when I wrote in we were
19:49
Speaker 2: in debt, like we had two car loans. Oh sorry,
19:54
Speaker 2: maybe we just had one car loan at the time,
19:56
Speaker 2: but we were terrible with money. The only way I
20:00
Speaker 2: thought that we could get ahead would be to take
20:03
Speaker 2: a loan out or redraw on the mortgage, or we
20:06
Speaker 2: had no savings whatsoever, like at that time, we were
20:09
Speaker 2: living week to week.
20:10
Speaker 4: This makes me so excited you've done all of this.
20:13
Speaker 2: Yeah, it's quite exciting and heartwarming when you actually say
20:16
Speaker 2: it out loud, like you it's your lived experience.
20:18
Speaker 4: But you don't really you don't give yourself credit. No
20:21
Speaker 4: one ever does.
20:22
Speaker 2: Yeah, so I guess too. We have higher paying jobs
20:25
Speaker 2: than we did back then as well, I suppose, which
20:27
Speaker 2: obviously helps. But it was the podcast one of my
20:30
Speaker 2: good friends, was it actually Yeah, yeah, so one of
20:32
Speaker 2: my good friends. She's the only person I told that
20:34
Speaker 2: I was coming on the show, So shout out to you. Gosh,
20:37
Speaker 2: she knows who she is.
20:38
Speaker 4: Hi, friend, Hi, thank you for introducing my newest friend
20:41
Speaker 4: to me.
20:42
Speaker 2: She got me onto you and your podcast and the
20:44
Speaker 2: way that it was explained on She's on the Money,
20:47
Speaker 2: I'm like, oh my gosh, it just makes so much sense.
20:49
Speaker 4: It doesn't have to be that deep, does her.
20:50
Speaker 2: No, And when it makes sense and it's simplified, it
20:53
Speaker 2: gives you the drive to go out and do it,
20:57
Speaker 2: to save your money and to be more strategic with
20:59
Speaker 2: where you place your money in what you're spending it on,
21:01
Speaker 2: and yeah, that's just I never thought that we would
21:05
Speaker 2: be here and have that amount of money like just
21:09
Speaker 2: there and available, like the equity in our property. Like
21:12
Speaker 2: I never thought, what does that feel like?
21:14
Speaker 4: Because I feel like when you're just like because at
21:17
Speaker 4: the time, back in twenty twenty, you honestly, like I
21:20
Speaker 4: can see, you were just doing the best that your
21:21
Speaker 4: bloody could. You're like, let's move the family to the beach.
21:24
Speaker 4: That'll be a really good decision. Like you had a mortgage,
21:26
Speaker 4: so like you were in an okay position, but you
21:28
Speaker 4: still had debt, you still had your car loan, all
21:30
Speaker 4: of that. That can feel overwhelming, and I think it
21:33
Speaker 4: puts a lot more of a at tax on your
21:37
Speaker 4: well being than you think because you go, oh, well
21:39
Speaker 4: the debt doesn't matter, like we need the car, we'll
21:40
Speaker 4: pay it off one day, like Victoria, it's not that deep.
21:43
Speaker 4: But like if you compare your well being to now
21:46
Speaker 4: from then, what kind of change does that look like?
21:49
Speaker 4: Are you just like a bit more comfortable? You're like, no,
21:51
Speaker 4: I'm still stressing, Like where are we at?
21:53
Speaker 2: That was a pivotal moment, I think, and I think
21:55
Speaker 2: that had to happen for us, for the change to happen.
22:00
Speaker 2: I mean, don't get me wrong, I still get worried
22:02
Speaker 2: and I still stress a little bit internally when it
22:04
Speaker 2: comes to finance. Is I just like I've got my
22:07
Speaker 2: budget scribbled down on this little piece of paper, like
22:11
Speaker 2: with highlighted.
22:12
Speaker 4: Is that your budget?
22:13
Speaker 2: That's my budget? Can I glow that up?
22:14
Speaker 4: I'm going to gift you my money masterclass, Like, that's
22:17
Speaker 4: not your budget anymore. I'm going to gift you my
22:18
Speaker 4: money with master Class. And you're going to do that
22:21
Speaker 4: and you're going to put everything in there, and then
22:23
Speaker 4: it's going to tell you exactly what bank account you
22:25
Speaker 4: need to put things in, what your mortgages are going
22:27
Speaker 4: to look like. It's going to clean all of that up.
22:29
Speaker 4: That is cute, I promise that is cute. Like, guys,
22:31
Speaker 4: she just held up to the screen and I can't
22:33
Speaker 4: show you. It's like a notebook with all like pen writing,
22:36
Speaker 4: but like color coordinated highlighterup, very very cute. But I
22:40
Speaker 4: can glow that up easily. I can help look.
22:42
Speaker 2: Thank you, Oh my gosh, it brought tears to my eyes.
22:44
Speaker 2: Thank you so being silly.
22:45
Speaker 4: And also, what a better time to redo your budget
22:48
Speaker 4: than right before your new property settles, so you know
22:50
Speaker 4: exactly what's coming out, and it's automated. I don't want
22:54
Speaker 4: to flex it too much, but like, all you have
22:56
Speaker 4: to do is put in your costs and then I've
22:58
Speaker 4: written all of the like coding in the background so
23:01
Speaker 4: that it just automatically will be like, Okay, well this
23:03
Speaker 4: percentage of your income goes here in this and yeah,
23:06
Speaker 4: you're going to be fine. This is going to be great.
23:09
Speaker 2: Thank you so much. That is so kind.
23:11
Speaker 4: So tell me a bit more.
23:12
Speaker 2: So.
23:12
Speaker 4: We've got the investment property, We've got some equity in
23:15
Speaker 4: our family home. You said that you're consistently investing though,
23:18
Speaker 4: so have you got a share portfolio? What's going on there?
23:21
Speaker 2: I have a Shara's account.
23:22
Speaker 4: I'll stop it, of course you do again started by
23:25
Speaker 4: you girls. We try, we try. We're trying to be
23:27
Speaker 4: like a cult. But as I was saying to my team,
23:29
Speaker 4: we need to like become the Pyramid scheme or something,
23:32
Speaker 4: because this is not profitable.
23:35
Speaker 2: Yeah, you got to make a buck out of this.
23:36
Speaker 4: Yeah, Like we've got to really find a way to
23:38
Speaker 4: take advantage instead of just making people take advantage of
23:41
Speaker 4: their own situations. So you've got your share Za's account
23:45
Speaker 4: and what does that look like?
23:47
Speaker 2: So we invest. Obviously, my husband and my pay is combined,
23:50
Speaker 2: so this is not just all my pay it is.
23:53
Speaker 2: So we invest one hundred dollars a fortnight in two
23:56
Speaker 2: Chareza's I started it way way back when and share
24:00
Speaker 2: these first kame on the podcast and I think I
24:02
Speaker 2: may have like fifty dollars in there, and I just
24:04
Speaker 2: let it sit and I was just like, oh whatever,
24:06
Speaker 2: But then I continued to listen and again it reignited
24:09
Speaker 2: like the flame in my belly. I'm like, I got
24:10
Speaker 2: to do this. Let's get back on the investing train.
24:12
Speaker 2: So yes, we invest one hundred dollars a fortnight. And
24:15
Speaker 2: that's I mean, it's nothing big. It's sitting at about
24:17
Speaker 2: three and a half thousand.
24:18
Speaker 4: Sorry, that is massive. You are consistently investing. You just
24:21
Speaker 4: told me you're a mum of a ten and a
24:23
Speaker 4: thirteen year old, you have a family income of about
24:25
Speaker 4: one hundred and eighty thousand dollars. You've got one mooad
24:27
Speaker 4: you're about to take on another. Sorry, that is really good.
24:30
Speaker 4: What types of investments are you picking up on that platform?
24:34
Speaker 4: You're doing ETFs you're doing direct shares, Like, where are
24:36
Speaker 4: you getting this advice from you?
24:38
Speaker 5: I'm getting the advice from you.
24:39
Speaker 4: No, no, no, no, no no, let's backtrack. I would never give
24:42
Speaker 4: you advice on what to pick, but I would present
24:45
Speaker 4: a number of options and then you picked. Why did
24:47
Speaker 4: you pick the ones that you picked?
24:49
Speaker 2: Well, just by listening to the podcast, the ETFs are
24:52
Speaker 2: obviously a mixed bag, a mix bucket of a little
24:56
Speaker 2: sample pack of everything. So that's what I decided to
24:59
Speaker 2: go with.
25:01
Speaker 5: So I've got.
25:01
Speaker 2: A I think maybe three three ETFs with Australian chairs.
25:08
Speaker 2: I think I might have two or three with international
25:12
Speaker 2: shares ETFs, and.
25:14
Speaker 5: Then I think I've got one more. I've got one
25:16
Speaker 5: with common.
25:17
Speaker 2: Wealth that's their direct share with them. And then there's
25:20
Speaker 2: something else that I just took a random punt on.
25:23
Speaker 4: See, I love this. This is where it gets a
25:25
Speaker 4: little bit fun, right.
25:26
Speaker 5: It was like two dollars a share. I was like,
25:28
Speaker 5: let's let's just see how this goes.
25:30
Speaker 4: That's cheaper than milk.
25:31
Speaker 5: It is cheaper than milk, yes, and it's we're in
25:34
Speaker 5: the green.
25:34
Speaker 4: I love this for us And what made you want
25:36
Speaker 4: to invest in that one?
25:37
Speaker 5: I just saw it and I was like, oh, yeah,
25:38
Speaker 5: why not.
25:39
Speaker 4: I love that for us. All right, so we're going
25:41
Speaker 4: to flip back around and talk about debt again. So
25:43
Speaker 4: we know that you've got that four hundred and ten
25:45
Speaker 4: thousand dollars mortgage. What do you still owe on your
25:48
Speaker 4: family home?
25:49
Speaker 2: We oh, I checked yesterday and it was five hundred
25:52
Speaker 2: and sixty three thousand.
25:54
Speaker 4: Okay, that's very nice to have purchased at seven hundred
25:58
Speaker 4: and forty six. And you said you had a deposit
26:00
Speaker 4: of about one thirty to be down to five sixty three.
26:03
Speaker 4: Have you guys aggressively been paying that off or like
26:06
Speaker 4: really prioritizing it.
26:07
Speaker 5: Yeah, we have.
26:08
Speaker 2: It would have been probably a little bit less, but
26:11
Speaker 2: we took some money out. We redrew some money to
26:14
Speaker 2: go on an overseas holiday for.
26:15
Speaker 5: My husband's birthday. So that's what we did. But yeah,
26:18
Speaker 5: essentially what we do is we live off my husband's.
26:21
Speaker 2: Pay, and my pay just purely goes straight to the mortgage.
26:25
Speaker 4: I love that. So is that something that you guys
26:28
Speaker 4: are consciously doing so that you get closer to retiring
26:31
Speaker 4: at fifty ish? Because I know that you said, look,
26:33
Speaker 4: I really don't want to work till i'm sixty seven
26:36
Speaker 4: in the first half of this episode, and like, I
26:39
Speaker 4: just feel like the more I'm digging into your little
26:41
Speaker 4: financial situation, the more I'm like, Oh, she's good. Oh
26:44
Speaker 4: she's good. So what does that look like to potentially
26:47
Speaker 4: be retiring at fifty?
26:49
Speaker 2: Well, before we decided to take on the investment property,
26:53
Speaker 2: I crunch some numbers, and if I've worked it out right,
26:56
Speaker 2: we would have with what I was just getting paid
26:59
Speaker 2: going straight onto the mortgage, we would have had that
27:02
Speaker 2: paid out in either ten to eleven years. So that
27:06
Speaker 2: would mean I am not fifty. But now that we've
27:10
Speaker 2: taken on the investment property, the broker that we're working with,
27:14
Speaker 2: he's really lovely love.
27:15
Speaker 5: Yeah.
27:16
Speaker 2: So he's saying to us that with the way that
27:18
Speaker 2: we can structure the loans, we could potentially have our
27:22
Speaker 2: property paid off in less time than that. So yeah, again,
27:25
Speaker 2: it's just working all of that out and finding our groove.
27:28
Speaker 4: Love love, And I feel like that's exactly how you
27:31
Speaker 4: have to do it. You can't just like sort it
27:33
Speaker 4: out all in a day, like takes a little bit
27:35
Speaker 4: of strategy. While we're still on their like investment debt conversation.
27:40
Speaker 4: You work for a higher education institution and you get
27:43
Speaker 4: seventeen percent super. Talk to me about your super? What's
27:46
Speaker 4: that looking like?
27:47
Speaker 2: I'm actually quite proud of this because I didn't realize
27:49
Speaker 2: how good it was until I started listening to the
27:51
Speaker 2: podcast and you were giving averages of like people women
27:55
Speaker 2: in my age group where our supers should be. But yeah,
27:59
Speaker 2: check yours and I have two hundred and fifty six thousand.
28:03
Speaker 4: Two hundred and fifty six thousand dollars in super. What
28:06
Speaker 4: have you been doing? Have you been like additionally contributing?
28:09
Speaker 4: Have you been working three jobs? Have you been doing backflips?
28:12
Speaker 2: Like?
28:12
Speaker 4: What have you been doing?
28:13
Speaker 5: To be honest, I don't really know how it got there.
28:16
Speaker 4: Compound interest, baby, because if it was like less than
28:18
Speaker 4: ten years ago, it would have been half that I
28:20
Speaker 4: can always guarantee.
28:21
Speaker 2: Yeah, I think you know, I'm sort of at that
28:23
Speaker 2: age where it really starts to kick in, the compound
28:25
Speaker 2: interest really starts to kick in. But I have added
28:29
Speaker 2: voluntary contributions and I have for most of my working career,
28:33
Speaker 2: but it's never really been huge amounts.
28:36
Speaker 5: It was, you know, sort of fifty dollars.
28:37
Speaker 4: A year, hundred dollars Dad up, didn't that it does
28:40
Speaker 4: it really does. You don't notice at the time and
28:43
Speaker 4: you think this is fruitless, but one hundred dollars here
28:46
Speaker 4: and there, I promise puts you in a better position.
28:48
Speaker 4: So to contextualize that for everybody listening, the average superannuation
28:52
Speaker 4: balance for someone between the age of thirty five and
28:54
Speaker 4: thirty nine, and you are thirty six money diarists is
28:57
Speaker 4: seventy one thousand, six hundred and eighty six dollars if
28:59
Speaker 4: you're a female and nine eight hundred and twenty two
29:03
Speaker 4: dollars if you're a male. And you are running rings
29:06
Speaker 4: around both of those.
29:07
Speaker 5: Yeah, yeah, I'm quite proud of that one.
29:09
Speaker 4: I must admit love and to be a little bit pervy.
29:12
Speaker 4: Do you and your husband talk about superannuation as a
29:15
Speaker 4: retirement strategy? If so, what does his look like?
29:18
Speaker 5: Is less than mine?
29:20
Speaker 4: We love to see women in stam.
29:22
Speaker 2: Yeah, we do talk about super often, and it obviously
29:27
Speaker 2: will be a part of our retirement plan.
29:29
Speaker 4: But not the sole INTI well, you can't access it
29:31
Speaker 4: at fifty, so it can't be your entire retirement plan.
29:35
Speaker 2: And you know that was part of my money story
29:38
Speaker 2: I think with my mum and dad was you know,
29:40
Speaker 2: buy house you're living at your retire and you live
29:42
Speaker 2: off your super I think gone are the days that
29:44
Speaker 2: we can do that.
29:46
Speaker 4: It's heartbreaking, isn't it. It just doesn't work that way anymore. Yeah,
29:49
Speaker 4: And that's why we have to kind of pivot and
29:51
Speaker 4: really think about what other investment opportunities are out there.
29:54
Speaker 4: Should I have an investment portfolio, Should I be looking
29:56
Speaker 4: at an investment property? How can I get myself ahead?
29:58
Speaker 4: And it looks like you are, like that is so
30:01
Speaker 4: flipping exciting. Talk to me about your best money habit though,
30:04
Speaker 4: because I feel like you're another quiet achiever. Like if
30:07
Speaker 4: I was going to put you in a bucket, you'd
30:08
Speaker 4: be like, oh no, I'm not that good. And I
30:10
Speaker 4: feel like we're about to have an argument as well,
30:12
Speaker 4: which is going to be really fun time. You're a
30:14
Speaker 4: quiet achiever. You we're like, oh, I'm a be but like, girl, sorry,
30:17
Speaker 4: you've gone in the last five years from not having
30:20
Speaker 4: your dream home to having your dream home, having an
30:22
Speaker 4: investment property, being able to use equity to do that.
30:24
Speaker 4: You've got two hundred and fifty six thousand dollars in soupers,
30:27
Speaker 4: so dollars, what are your good money habits?
30:30
Speaker 5: I think I've thought long and hard about this one.
30:33
Speaker 2: And I think my good money habit is also my
30:36
Speaker 2: bad money habit.
30:37
Speaker 5: It's the hyper focus.
30:39
Speaker 2: It's the hyper focus on if I want to save
30:43
Speaker 2: or if you're working towards a goal, I will move.
30:46
Speaker 5: Heaven earth to make that happen.
30:48
Speaker 2: So I think that that's yeah, that's also that's probably
30:51
Speaker 2: my best money habit.
30:52
Speaker 4: On the flip side, what are your bad money habit?
30:55
Speaker 2: If I want something or if I see something, Say,
30:58
Speaker 2: you know, I went and bought a new wall at
30:59
Speaker 2: the other day. I didn't need any wallet, but I
31:01
Speaker 2: was focused on it and I thought, I'm just going
31:03
Speaker 2: to go get it.
31:04
Speaker 5: So I do.
31:05
Speaker 2: Try to put that twenty four hours in between my
31:09
Speaker 2: spending and myself.
31:11
Speaker 5: But sometimes I'm just like, Nope, you're going to do it.
31:13
Speaker 4: No, Well, sometimes we're a little bit impulsive. But I
31:16
Speaker 4: need to know a little bit more about this, be
31:18
Speaker 4: at the very start, because I read you your money
31:21
Speaker 4: story and you were like, oh, that's pretty impressive, let's
31:23
Speaker 4: be honest, And I was like, absolutely, you have been
31:26
Speaker 4: working really hard. You've got good incomes, you've got good superannuation,
31:31
Speaker 4: you've got you know, your investment property, you've got your
31:33
Speaker 4: family home. You're investing on the side. Literally, I can
31:36
Speaker 4: see the budget really well, why not higher? And what
31:41
Speaker 4: would make you hire? Like, what would you have to
31:43
Speaker 4: be doing to be an a at money?
31:46
Speaker 2: I think I would probably like to invest more maybe, Yeah,
31:51
Speaker 2: just understand that a little bit better rather than just,
31:55
Speaker 2: you know, just one hundred dollars afore and I just
31:57
Speaker 2: keep putting it in.
31:58
Speaker 5: I'd like to understand that a little bit more.
32:00
Speaker 2: And I would also like to understand, like, although I
32:04
Speaker 2: feel like I'm okay with a budget, just staying on
32:07
Speaker 2: top of that because sometimes I feel like that can
32:09
Speaker 2: sort of get away from me. Yeah, So just being
32:12
Speaker 2: able to stay on top of that more, I think
32:15
Speaker 2: would push me up. I love that.
32:16
Speaker 4: And I feel like I'm semi helping here because I've
32:18
Speaker 4: set you up with our money master class in the background,
32:21
Speaker 4: and I feel like all of those things can basically
32:24
Speaker 4: be solved, and so I'm very excited to see how
32:26
Speaker 4: you go with this.
32:27
Speaker 5: You're not semi helping, You're all the way helping.
32:29
Speaker 4: Look, I'm really trying. I'm really trying, But at the
32:32
Speaker 4: end of the day, you actually have to do the work.
32:34
Speaker 4: So I made the spreadsheet, but you've actually got to
32:36
Speaker 4: sit down. You've got to do the budget like you've
32:38
Speaker 4: got a fility in and you've got to be consistent
32:40
Speaker 4: with it. So like the work part, that's you, and
32:42
Speaker 4: so I basically just gave you homework. So you're welcome.
32:46
Speaker 5: Thanks teacher.
32:47
Speaker 4: Oh my god, I have loved this money diary. Thank
32:49
Speaker 4: you so much. I wish we had so much more
32:51
Speaker 4: time because I feel like we could yap about literally
32:54
Speaker 4: all of this until the cows come home. But I
32:56
Speaker 4: really appreciated learning so much about your journey and just
32:59
Speaker 4: what you're up to and how you're doing it, because
33:01
Speaker 4: it's just really inspiring. So thank you so much.
33:03
Speaker 5: Oh, thank you so much for having me.
33:05
Speaker 4: Of course, the advice shared on She's on the Money
33:14
Speaker 4: is general in nature and does not consider your individual circumstances.
33:18
Speaker 4: She's on the Money exists purely for educational purposes and
33:22
Speaker 4: should not be relied upon to make an investment or
33:24
Speaker 4: financial decision. If you do choose to buy a financial product,
33:28
Speaker 4: read the PDS TMD and obtain appropriate financial advice tailored
33:32
Speaker 4: towards your needs. Victoria Divine and She's on the Money
33:35
Speaker 4: are authorized representatives of Money Sheper Pty Ltd. A b
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Speaker 4: N three two one six four nine two seven seven
33:43
Speaker 4: zero eight AFSL four five one two eight nine