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FRIDAY DRINKS: Picking Apart Party Promises · She's On The Money

0:00
Speaker 1: Just before we get started, we'd like to acknowledge and
0:03
Speaker 1: pay respect to Australia's Aboriginal and torrest Rate islander people's.
0:07
Speaker 1: They're the traditional custodians of the lands, the waterways and
0:10
Speaker 1: the skies all across Australia. We thank you for sharing
0:13
Speaker 1: and for caring for the land on which we are
0:16
Speaker 1: able to learn. We pay respects to elders past and present,
0:19
Speaker 1: and we share our friendship and our kindness.
0:22
Speaker 2: She's on the Money, She's on the Money.
0:45
Speaker 1: Hello, and welcome to She's on the Money, the podcast
0:48
Speaker 1: Millennials who Want Financial Freedom. Today is Friday, my Friends,
0:53
Speaker 1: which means it is time to sit back with the girls,
0:55
Speaker 1: namely my girls, Jess and George, and we're going to
0:57
Speaker 1: sit back with a bev in hand, to unpack our
0:59
Speaker 1: favorite moments of the week and of course to celebrate
1:03
Speaker 1: you how incredible She's on the Money community. As always,
1:06
Speaker 1: we're going to be sharing our favorite money wins. We're
1:09
Speaker 1: going to be discussing what's making news in the finance
1:11
Speaker 1: world cough scimo cough, and we'll be helping to answer
1:15
Speaker 1: a very juicy money question, which this week is all
1:18
Speaker 1: about salary sacrificing But first things first, guys, it is time,
1:22
Speaker 1: as always to recap the week that was. Mistress Garrichi,
1:27
Speaker 1: can you please tell us what happened on our money
1:29
Speaker 1: Diary Monday? I sure can.
1:30
Speaker 3: This week's diarist was living the dream. She was working
1:34
Speaker 3: in an incredible role in a nonprofit making change, which
1:37
Speaker 3: is so incredible. She was really really passionate about the space,
1:41
Speaker 3: and particularly about getting women a seat at the table,
1:44
Speaker 3: getting voices of diverse people heard, which we need to
1:48
Speaker 3: see more of it. We talk about it all the time,
1:50
Speaker 3: so it was really incredible to hear her say that.
1:52
Speaker 3: But she actually realized that after a few years there,
1:55
Speaker 3: she wasn't feeling fulfilled anymore, and she had a few
1:58
Speaker 3: other things that she wanted to do, and she took
1:59
Speaker 3: a lee of absence, which she's currently still actually on,
2:02
Speaker 3: and we chatted a bit about what her plan looks
2:04
Speaker 3: like and what she'll be doing going forward. So at
2:07
Speaker 3: the moment she's just taking some time with her family,
2:09
Speaker 3: which I think is really special. But we delved really
2:12
Speaker 3: deeply into the nonprofit space and what it's like to
2:16
Speaker 3: be on a board as a woman, and why you
2:18
Speaker 3: should want to be on a board as a woman.
2:19
Speaker 3: Because I think for a lot of us, a board
2:21
Speaker 3: is a bit of.
2:22
Speaker 1: A like bougie. It's like so out of reach.
2:25
Speaker 3: Yeah, it's a concept that, to be honest, I've never
2:27
Speaker 3: really thought about. Like it's like I know that they exist,
2:30
Speaker 3: didn't know what they did.
2:31
Speaker 1: Really though, So true. And it's it's funny because I'm
2:34
Speaker 1: on a board and you work with me, but you
2:36
Speaker 1: wouldn't see any of that work I do because I
2:38
Speaker 1: don't do it during business hours, so you'd be like, oh, yeah,
2:40
Speaker 1: she's at a board meeting, like you have any idea
2:45
Speaker 1: what I do. And I find that quite funny because
2:48
Speaker 1: I'd never, i guess, thought about the fact that nobody
2:52
Speaker 1: really knows what I do in that space or how
2:54
Speaker 1: that works. But I also found it really cool because
2:57
Speaker 1: she is a friend of ours from across the ditch.
3:00
Speaker 1: She lives in New Zealand, and in New Zealand they
3:03
Speaker 1: have been far better at embracing diversity than we are
3:07
Speaker 1: here in Australia. They have embraced so many beautiful malady
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Speaker 1: people to come into Parliament as well, which I absolutely adore,
3:15
Speaker 1: and I think that, yeah, we've got a lot to
3:16
Speaker 1: learn from them. And she was so special But the
3:19
Speaker 1: other thing we touched on in that episode, which I
3:22
Speaker 1: thought was really cool. Nothing to do with boards. I'm
3:24
Speaker 1: sorry that could be a little bit dry, but it
3:27
Speaker 1: was actually income guilt. So she felt really guilty about
3:30
Speaker 1: how much money she was earning. Because she was quite senior,
3:34
Speaker 1: she did have quite a significant income, but she was
3:37
Speaker 1: still like, I'm an exec and I feel really guilty.
3:40
Speaker 1: Obviously working in a non for profit sector. She felt
3:42
Speaker 1: like that was you know, a lot of money that
3:44
Speaker 1: could be allocated, and I was like, yes, but like,
3:47
Speaker 1: you're working really hard and you're worth every cent, and
3:49
Speaker 1: I just think that no one should have guilt over
3:52
Speaker 1: what they're earning because you're literally earning.
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Speaker 4: It.
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Speaker 3: Correct very interesting, very interesting episode indeed, so highly recommend
3:58
Speaker 3: giving that one to listen.
3:59
Speaker 1: Skip on over to our Wednesday episode, Missus Georgia king a, hoy, hoy,
4:04
Speaker 1: how are you? My Lafe's are we? And happy? Is
4:08
Speaker 1: it because you saw Jess?
4:09
Speaker 4: Yeah?
4:09
Speaker 5: Well could have been that to be with my girls
4:11
Speaker 5: in the studio.
4:12
Speaker 1: What happened on our Wednesday episode my.
4:14
Speaker 5: Last on Wednesday this week, girls, we discussed weddings sad
4:19
Speaker 5: which it was. It was a good time because one
4:21
Speaker 5: of the three of us sitting at this table, is
4:23
Speaker 5: in fact planning her own weddings.
4:25
Speaker 1: Why didn't you tell? Using on my hand?
4:30
Speaker 5: But it was super interesting, of course, picking the brains
4:33
Speaker 5: of Victoria divine, part bride to be part financial advisor.
4:37
Speaker 1: It's the purpose, It's really not. It's really not.
4:42
Speaker 5: You had lots of tips.
4:43
Speaker 1: I tried to give lots of tips. It's interesting because
4:46
Speaker 1: after that episode, I had a few chats. I have
4:48
Speaker 1: a girlfriend who's also a financial advisor, and she planned
4:51
Speaker 1: her wedding to a t like absolute budget queen. Like
4:54
Speaker 1: you can learn a lot off this woman factuals. On
4:57
Speaker 1: the podcast Rebecca Pritchard, we talked about baby stuff. Yeah,
5:00
Speaker 1: she's gorgeous anyway, she planned it to an absolute teage
5:03
Speaker 1: and I feel like I'm trying really hard to do that.
5:05
Speaker 1: I promise I would like to call myself the Queen
5:08
Speaker 1: of spreadsheets. But just because you have a spreadsheet and
5:11
Speaker 1: just because you're tracking, it doesn't mean you're not naughty
5:13
Speaker 1: and you're not overspendy. And I feel like recently I've
5:16
Speaker 1: just been like, yeah, but I really I really want
5:18
Speaker 1: the cute matching pajamas. And I didn't realize how expensive
5:20
Speaker 1: they were, and I want like all these other things
5:22
Speaker 1: that I'm like, all right, Actually I need to take
5:24
Speaker 1: a step back and reevaluate my budget because I had
5:27
Speaker 1: just assumed, like, this is so dumb because Peter Alexander pajamas.
5:31
Speaker 1: Obviously not everyone in my bridal party is getting Peter
5:34
Speaker 1: Alexander pajamas. Sorry, not sorry, but I just assumed that
5:37
Speaker 1: they were, like, you know, forty or fifty bucks just
5:39
Speaker 1: to get like some Plaine matching. No, everything's just blowing
5:43
Speaker 1: out of proportion. Guys. I am a wreck and I
5:46
Speaker 1: need help.
5:47
Speaker 3: Lots of people have been asking for the wedding contents,
5:49
Speaker 3: so I hope they were some happy people.
5:51
Speaker 5: Maybe a lot to come.
5:52
Speaker 1: Amah, there's so much more to come because I feel
5:54
Speaker 1: like I'm also learning a lot on this journey as
5:57
Speaker 1: well about values and priorities. And it's one of those
6:00
Speaker 1: things that you know, when you're buying a house, for example,
6:03
Speaker 1: with a partner, it's do we buy this house yes
6:05
Speaker 1: or no? Whereas with the wedding, there are so many
6:08
Speaker 1: different moving parts that we have to allocate different budgets towards,
6:12
Speaker 1: and Steve likes some things that I don't like. And
6:15
Speaker 1: Steve's priorities are quite different to mine. Like I think
6:18
Speaker 1: we've mentioned it before. He's a bit more of a
6:20
Speaker 1: party boy, whereas I'm kind of like, oh, I really
6:22
Speaker 1: want good wine and he's like, oh, I kind of
6:25
Speaker 1: don't mind. I love a good wine, but like I'm
6:27
Speaker 1: going to be drinking heaps of it, So well, oh
6:30
Speaker 1: that's not me at all. So there's just this consistent
6:33
Speaker 1: conversation of either compromise or not. And it's a lot
6:38
Speaker 1: harder than I thought it would be. Because as much
6:40
Speaker 1: as you know, we're very grateful to be going through
6:42
Speaker 1: this process with you know, easier budget, I would say,
6:47
Speaker 1: it doesn't mean that it's not hard to still pick
6:49
Speaker 1: and choose and oh my god, Florist's let's not even
6:51
Speaker 1: start on that too much to think about it too much,
6:53
Speaker 1: too hard, way too hard. You know what's not hardeg
6:59
Speaker 1: way of breaking the sheese on the money community. Who's
7:02
Speaker 1: with me? Girlies? Oh we are?
7:03
Speaker 3: I think you know what's not hard? Was going to
7:05
Speaker 3: go into direction, but it didn't.
7:08
Speaker 1: So let's get into out this week budget direct money
7:13
Speaker 1: wins guys.
7:13
Speaker 5: Let's do it very exciting. So the first win this week, Ladies,
7:17
Speaker 5: comes from Erin it's quite exciting. I have been offered
7:20
Speaker 5: a promotion after getting a new job just eight months ago.
7:23
Speaker 5: Between my new job and this promotion, I will have
7:25
Speaker 5: almost doubled my income in less than You're are amazing.
7:30
Speaker 5: The next win comes from Indiana Money Win. I normally
7:33
Speaker 5: spend seven dollars a day on coffee, five days a week.
7:37
Speaker 1: That adds up.
7:38
Speaker 5: So I trotted down to Coohl's and they had the
7:40
Speaker 5: Nest Cafe packets of twenty six sachets for eleven dollars.
7:44
Speaker 5: So now I make one every day before going to work.
7:47
Speaker 1: That's a hot saving of eighteen hundred and twenty dollars
7:50
Speaker 1: a year from scout. I also rate those Nest Cafe
7:56
Speaker 1: you know what, They're not that bad and they're not
7:58
Speaker 1: that bad. I feel like instant coffee gets a really
8:01
Speaker 1: bad rap. But I have a secret addiction. It's not
8:04
Speaker 1: so secret now to a million people, but a secret
8:08
Speaker 1: addiction to the ConA caramel one. You probably had it
8:12
Speaker 1: at my house, because if you come to my house,
8:14
Speaker 1: I'll be like, you're on a coffee we do have
8:16
Speaker 1: a coffee machine, or offer you that, but I'll also
8:18
Speaker 1: be like, do you want to Macona? Though you want.
8:20
Speaker 1: You want the good stuff. It's in the coverage. I
8:22
Speaker 1: love that.
8:23
Speaker 5: I'm gonna chop out and buy some later. The next
8:25
Speaker 5: one here, ladies, comes from may Read. There is a
8:27
Speaker 5: lot going on, so keep up. I'm apologies in advance.
8:31
Speaker 1: We are strapped in. I paid off the.
8:33
Speaker 5: Remainder of what I owed to my mum. I'm broke now,
8:36
Speaker 5: but at least that's finally done. That's point one, done
8:38
Speaker 5: and dusted. Nice so impulsively bought a Dyson air rap
8:42
Speaker 5: on Zippay. I know, I know dot dot dot si,
8:46
Speaker 5: but you guys can relate to that.
8:47
Speaker 1: I know that the air rap is epic. I mean
8:50
Speaker 1: the way you've acquired it, let's be honest, but you're
8:53
Speaker 1: quite clearly very aware of it.
8:55
Speaker 5: Yes, She then packed it up and posted it back
8:58
Speaker 5: to Dyson for a refund.
9:00
Speaker 1: I just said how good it was. I hope that
9:02
Speaker 1: that doesn't trigger any regrets.
9:04
Speaker 5: Maybe she can say for it and then by it
9:06
Speaker 5: at a more sensible time in her life.
9:07
Speaker 1: I agree. In fact, that's actually a really adult decision.
9:10
Speaker 1: Exactly how many times have you I can't say I've
9:13
Speaker 1: ever bought something and then returned it because I'm like,
9:15
Speaker 1: do you know what. This wasn't in budget. I've done
9:17
Speaker 1: it once. But that's really cool, isn't it.
9:20
Speaker 3: Yeah? I think I genuinely think, you know what, And
9:23
Speaker 3: in my situation, I feel like maybe in her situation
9:25
Speaker 3: as well, it was just like and in the moment,
9:26
Speaker 3: you're like, I deserve this, I'm going to get it,
9:29
Speaker 3: treat yourself, and you know what, you do deserve it. However,
9:33
Speaker 3: I think if it arrives and you're regretting it, you're
9:35
Speaker 3: going to continue to feel that regrets. So I think
9:37
Speaker 3: it's awesome that she's gone, actually, don't love this for me,
9:40
Speaker 3: I'm going to send it back.
9:41
Speaker 1: That takes real how that's a really good win? Yeah,
9:44
Speaker 1: love that, but it goes on girls. Oh.
9:48
Speaker 5: I then popped to my local library and picked up
9:50
Speaker 5: a copy of Victoria's book. Hopefully that will lead to
9:54
Speaker 5: more money wins.
9:56
Speaker 1: Finally, So I thought she was going to say she
9:59
Speaker 1: went into the lib and there was an air raft
10:01
Speaker 1: and I was going to go this story to well
10:05
Speaker 1: recently that my local library. I don't know, I'm not
10:08
Speaker 1: telling you which one because that would be a bit
10:10
Speaker 1: too much personal information, but they rent out cake baking trays,
10:15
Speaker 1: so really yeah, So like if you want to make
10:17
Speaker 1: a dinosaur cake? Oh, I have it? Yeah, Like there's
10:21
Speaker 1: tubs of.
10:21
Speaker 3: Like can they to go alongside that? They have a
10:24
Speaker 3: copy of the Women's Weekly?
10:26
Speaker 1: Could borrow it?
10:28
Speaker 3: Can we have a competition?
10:29
Speaker 1: I don't remember.
10:29
Speaker 3: I saw something on TikTok where everyone made a Women's
10:32
Speaker 3: Weekly cake?
10:34
Speaker 1: Can we have the cake off? Let us know?
10:36
Speaker 3: Would you be interested in how she's on the money?
10:37
Speaker 1: Cake off? I reckon that would be so fun.
10:40
Speaker 3: It's not money related at all.
10:42
Speaker 1: I don't even care. Let's call mastership ask if we
10:45
Speaker 1: can borrow their kitchens. Our whole heap of novices who
10:48
Speaker 1: can't bake in to make a duck with chippy lips.
10:52
Speaker 1: I love that one?
10:54
Speaker 5: How good? The next one comes from Sophie. It's diy vibes.
10:57
Speaker 5: Yes you're listening. I was quoted eleven one thousand dollars
11:00
Speaker 5: for new flooring in my recently purchased apartment. I managed
11:03
Speaker 5: to knock off three thousand dollars by doing my own
11:06
Speaker 5: removal of the old floor and skirting boards. It was
11:09
Speaker 5: exhausting work, but at least it makes it more affordable.
11:12
Speaker 1: Incredible.
11:12
Speaker 3: I think a really good place to save if you're
11:15
Speaker 3: running v. You're going through this right now, and you
11:16
Speaker 3: guys did a bit of a dareut wide job as
11:18
Speaker 3: well in your backyard.
11:19
Speaker 1: We did, we did, I mean I did have some
11:21
Speaker 1: professional help. But floorboards. When we got the quotes for
11:24
Speaker 1: the floorboards, I was shook. So I love Pinterest right,
11:29
Speaker 1: and Pinterest blows our expectations completely out. For water, you go,
11:33
Speaker 1: I want that that doesn't look too hard, very clean,
11:35
Speaker 1: easy kitchen. They're like three billion dollars. No, I don't
11:39
Speaker 1: think so.
11:40
Speaker 3: Yeah, but if you don't have the skills to put
11:41
Speaker 3: something in yourself, maybe you can take it out because
11:44
Speaker 3: argument takes less skill to remove it and you can
11:47
Speaker 3: save yourself and get a big of aggression out.
11:49
Speaker 4: Yeah.
11:50
Speaker 1: Really expensive, and we got a quote that was very
11:53
Speaker 1: similar in cost, and we've now decided to just polish
11:56
Speaker 1: the pre existing floors and call it today because you
11:59
Speaker 1: have to have some level of compromising your budget when
12:01
Speaker 1: you're renovating, because otherwise it all just completely blows out.
12:05
Speaker 1: And as much as I wanted the beautiful herringbone floorboards,
12:09
Speaker 1: it just wasn't a money win day. Next time.
12:12
Speaker 5: The next week comes from Lauren. I paid off my
12:14
Speaker 5: after pay and closed the account after listening to the
12:17
Speaker 5: podcast every morning for the last two weeks.
12:19
Speaker 1: Oh my gosh, hi again, we've seen each other every day.
12:24
Speaker 5: For the first time in a decade. I'm going to
12:25
Speaker 5: have money leftover in my next fortnight's pay now onto
12:28
Speaker 5: financial freedom.
12:29
Speaker 1: That makes me so happy.
12:30
Speaker 5: Well done, Lauren.
12:31
Speaker 1: That must be such a good feeling to be like.
12:33
Speaker 1: I've never had money left over in my pain now
12:35
Speaker 1: I do.
12:36
Speaker 5: Yeah, really special stuff. The next weeen is from Ali
12:40
Speaker 5: Massive money Win. I went to Spotlight to buy some
12:42
Speaker 5: jars that were on sale to deck out my pantry.
12:45
Speaker 5: I walked to the car after paying, and I thought
12:47
Speaker 5: that was a little bit more expensive than I thought
12:49
Speaker 5: it would be. Looked at my receipt and lo and behold.
12:52
Speaker 5: It turns out the discount wasn't applied. So I went
12:55
Speaker 5: back in and the lady at the counter calculated my
12:57
Speaker 5: refund incorrectly, so instead of getting fit fifteen dollars back,
13:01
Speaker 5: I got seventy dollars back total. I walked away with
13:05
Speaker 5: thirty glass jars with bamboo leads for twenty five dollars,
13:08
Speaker 5: so like cool, no.
13:12
Speaker 1: Corporation, they'll rat.
13:14
Speaker 5: Finally, the last one here is.
13:15
Speaker 1: From Don't company Swotlight. Sorry, we still want to get sponsored.
13:19
Speaker 1: Jessica is really good at do I want to do now?
13:22
Speaker 3: I would love to do a DIY series. If anyone
13:24
Speaker 3: knows anyone's get lets sure.
13:27
Speaker 1: I'll refund. That's seventy bucks you guys, so that there's
13:31
Speaker 1: no qualm. Still please talk to us.
13:34
Speaker 5: The last one, guys, comes from Rose. I started a
13:36
Speaker 5: new job with a twenty thousand dollar pay rise working
13:39
Speaker 5: from home part time, so no fuel costs. How cool
13:42
Speaker 5: rat I successfully negotiated to work four days thirty hours
13:46
Speaker 5: over three days to save money on crazy childcare costs.
13:51
Speaker 5: I would have never had the balls to negotiate my
13:53
Speaker 5: new working arrangement without the support of my feminist husband,
13:56
Speaker 5: Victoria Divine.
14:00
Speaker 1: Thank you. I do I do for best husband?
14:04
Speaker 3: How iconic?
14:05
Speaker 1: Oh my god. Well I'm taking that and running with it.
14:08
Speaker 1: It's been great celebrating some of your budget direct money wins,
14:11
Speaker 1: who were the winners of the Cancer Insurer of the
14:14
Speaker 1: Year Award twenty twenty two. Budget Direct Insurance Solved. But
14:18
Speaker 1: now we're going to go to a really quick break.
14:24
Speaker 3: Alrighty guys, I've got a good one this week. It
14:27
Speaker 3: was requested so many times and before before I get
14:30
Speaker 3: anywhere out Victoria Divine, I know you're ready to go.
14:32
Speaker 3: I can see it in your eyes. You're ready to
14:34
Speaker 3: take someone down. I just want to say, because we
14:37
Speaker 3: got torn a new one on our Instagram, and just.
14:39
Speaker 1: Always get torn a new one on Instagram.
14:41
Speaker 3: For just a little reminder, Guys, when you're cracking onto
14:45
Speaker 3: you know a company's post, generally there's a very soft,
14:48
Speaker 3: very sad social media manager on the other side of that,
14:51
Speaker 3: and in our case that's me, So Jessica, it's been kinder.
14:56
Speaker 1: Sometimes it's very easy to make her cry.
14:59
Speaker 3: It really is, you know what, I need to grow
15:00
Speaker 3: a bit of a thick skin. But just very very clear,
15:03
Speaker 3: we as a podcast have not and will not be
15:05
Speaker 3: taking a political stance. It is not our place, and
15:08
Speaker 3: we so strongly encourage you. If you don't know who
15:10
Speaker 3: to vote for, head to the vote Compass website. Find
15:13
Speaker 3: a party that aligns with your personal values and your
15:16
Speaker 3: personal beliefs. We can't tell you who what when we're
15:18
Speaker 3: or how however, today we are going to talk about
15:21
Speaker 3: a proposed policy. We're not talking about the political party
15:24
Speaker 3: in question, just the policy. The policy in isolation, and
15:28
Speaker 3: if you follow Victoria Devine or Scomo if that's the thing.
15:32
Speaker 3: On Instagram, you may have seen her kicking up a
15:34
Speaker 3: bit of a fuss in the comments over this proposed
15:37
Speaker 3: new legislation.
15:38
Speaker 1: Ah, yes, sir, I regret nothing.
15:41
Speaker 3: Yeah, look, it was very funny.
15:42
Speaker 1: I will not lie to you. But there is a
15:44
Speaker 1: very big difference though, between She's on the Money, which
15:46
Speaker 1: is a platform that exists to educate you and provide
15:49
Speaker 1: as much information as possible, and sometimes our personal opinions
15:53
Speaker 1: do trickle into that because obviously we'll be like, oh,
15:55
Speaker 1: we love that or we don't love that. But this
15:57
Speaker 1: is a line that I think, you know, I've discussed
15:59
Speaker 1: with them, and I'm like, I don't care who you
16:01
Speaker 1: vote for. I care who I vote for, and I
16:03
Speaker 1: will share my opinion on my personal Instagram. But you
16:06
Speaker 1: don't come to Sheese on the Money to be told
16:09
Speaker 1: who to vote for. Like that isn't it. We are
16:11
Speaker 1: so deeply grounded in you guys having your own values
16:14
Speaker 1: and your own opinions, so it just seems really counterintuitive
16:18
Speaker 1: for us to then turn around and be like, okay, cool,
16:20
Speaker 1: so this is who we'd vote for. But over the weekend, yes, Jess,
16:24
Speaker 1: I did kick up a bit of a stink in
16:26
Speaker 1: Scott Morrison's comments section on his recent post, and it
16:29
Speaker 1: wasn't because of who posted it. It was actually the
16:32
Speaker 1: policy they were posting about, I felt like was a
16:35
Speaker 1: relatively cheap grab for vote that does not put any
16:40
Speaker 1: of our community in the best possible position.
16:43
Speaker 3: Yes, And just to be really clear, because I think
16:45
Speaker 3: some people were a little bit confused. When you see
16:47
Speaker 3: something scary online you kind of go, oh my god,
16:49
Speaker 3: how's that going to impact me? It is just proposed legislation.
16:52
Speaker 3: It's in effect, and even if his party were to
16:56
Speaker 3: be elected, there are no guarantees.
16:58
Speaker 1: But they actually do what they said that It originally pretty.
17:00
Speaker 3: Common that in you know, right now election run up,
17:03
Speaker 3: they just want your votes, so they're telling you what
17:04
Speaker 3: they know the experience. Whether or not that does come
17:07
Speaker 3: into effect remains to be seen, but regardless the policy
17:12
Speaker 3: Victoria to.
17:13
Speaker 1: Talk about it. So the Liberal government have come out
17:16
Speaker 1: and said that they are proposing that people will be
17:20
Speaker 1: allowed to take up to fifty thousand dollars worth of
17:23
Speaker 1: their superannuation out to purchase property. And I find this
17:27
Speaker 1: incredibly detrimental for a couple of reasons. So Firstly, they're
17:31
Speaker 1: saying that it will push property prices down. No, it
17:34
Speaker 1: absolutely will not. It will push property prices up, and
17:37
Speaker 1: it will make you more reliant on welfare if you're
17:39
Speaker 1: not properly structured in the future. So they've said it's
17:42
Speaker 1: up to fifty grand, which is forty percent of your
17:45
Speaker 1: super which is massive, and I find that to be
17:48
Speaker 1: It's very different to the first time super savor scheme,
17:50
Speaker 1: which is where you can put money into superannuation and
17:53
Speaker 1: you're able to then access it later for property.
17:56
Speaker 3: Because that's an additional contribution, not your mandated ten percent,
18:00
Speaker 3: and from your employees.
18:00
Speaker 1: So this would be digging into your pre existing superannuation balance,
18:05
Speaker 1: and from my perspective, that is so bad. We as females,
18:09
Speaker 1: especially as females, are already so behind when it comes
18:13
Speaker 1: to super that to then take that and put that
18:18
Speaker 1: on steroids is terrible and I don't want a stereotype.
18:22
Speaker 1: But the people that would be most reliant on this
18:26
Speaker 1: potential legislation are the people who are most at risk.
18:30
Speaker 1: They're the people who don't have enough financial literacy. They
18:33
Speaker 1: see it as a really easy ticket to get into
18:35
Speaker 1: the property market. Because I had so many conversations over
18:38
Speaker 1: the weekend in my DMS of me posting, Okay, this
18:41
Speaker 1: is what that means. So fifty thousand dollars of your
18:44
Speaker 1: super Jess, let's say you go and do this scheme.
18:47
Speaker 1: You are young, so you'll go. It doesn't matter. I'll
18:49
Speaker 1: make it back later. But that fifty grand and an
18:52
Speaker 1: average return of seven and a half percent, which is
18:54
Speaker 1: our market average when it comes to predicting potential increases
18:58
Speaker 1: in income, that becomes five hundred and seventy five thousand dollars.
19:03
Speaker 1: That is more than what the average female retires with.
19:07
Speaker 1: That's pretty crazy. What that's far more than what the
19:10
Speaker 1: average female retires within super. How is that normal?
19:14
Speaker 2: Like?
19:14
Speaker 1: How is that not putting you in the worst possible
19:16
Speaker 1: position ever? Yeah, that's wild.
19:18
Speaker 3: And like to put it in perspective, I'm gonna generalize
19:21
Speaker 3: a bit and say first home owners between you know,
19:25
Speaker 3: let's say twenty and maybe thirty five. That's kind of
19:28
Speaker 3: our approximate age in the podcast. I fall squarely within
19:30
Speaker 3: that bracket. As you guys know, I'm a first home
19:32
Speaker 3: or hope for a first home buyer. The average person
19:36
Speaker 3: aged between thirty and thirty four in Australia has fifty one,
19:41
Speaker 3: one hundred and seventy five dollars in their super. So
19:43
Speaker 3: that is like almost every dollar that you have in
19:46
Speaker 3: your super at the age of thirty four. And obviously
19:48
Speaker 3: you can be older or younger, or you might have
19:50
Speaker 3: more or less whatever, But I don't know that many
19:53
Speaker 3: people who would enough to take the full fifty Yeah,
19:57
Speaker 3: the fact that they're like fifty seems like a good number.
19:59
Speaker 3: How many people have that at our age?
20:01
Speaker 1: But not many unless they've really prioritized it or are
20:05
Speaker 1: super high income earners, which would really make me wonder
20:08
Speaker 1: why they're relying on superranuation to buy a first property,
20:11
Speaker 1: because they probably have enough disposable income, again generalizing to
20:14
Speaker 1: purchase a property. But I did the maths because obviously
20:18
Speaker 1: not all of us can rely on that fifty grand right,
20:21
Speaker 1: they said forty percent of your super up to fifty
20:24
Speaker 1: thousand dollars at a cap. So let's say that you
20:28
Speaker 1: know that twenty five to forty four year old bracket
20:31
Speaker 1: is what we're talking about. If you're twenty five to
20:34
Speaker 1: thirty four years old, which is about what our she's
20:36
Speaker 1: on the money demographic is, you only have thirty one thousand,
20:40
Speaker 1: eight hundred dollars in your superranuation. And then if we said,
20:44
Speaker 1: all right, well what's forty percent of that? That's twelve
20:47
Speaker 1: and a half thousand dollars. What house are you buying
20:49
Speaker 1: with a twelve and a half thousand dollars deposit to
20:52
Speaker 1: make taking that amount of money off you in retirement
20:54
Speaker 1: actually worth it? Like, twelve and a half grand is
20:57
Speaker 1: not a deposit on any property that I'm allf.
21:00
Speaker 5: So are we thinking that this is maybe then just
21:03
Speaker 5: a bit of a ploy for votes more than anything,
21:05
Speaker 5: and that people are going to read the headline only.
21:08
Speaker 1: It's insane because then if we look across the country,
21:10
Speaker 1: we know property prices in Melbourne and in Sydney are
21:13
Speaker 1: well on average, well above a million dollars, But across
21:17
Speaker 1: Australia the median house price is eight hundred and fifty
21:20
Speaker 1: one thousand dollars. But that means an average twenty percent deposit.
21:25
Speaker 1: We're not getting into the semantics of what a guarantry
21:28
Speaker 1: is or if you have less or more but a
21:30
Speaker 1: twenty percent deposit on that median house that's one hundred
21:34
Speaker 1: and seventy thousand dollars. So how is this strategy that's
21:38
Speaker 1: going to put us so far behind when retirement comes
21:42
Speaker 1: actually putting us in a better possible position to purchase property.
21:46
Speaker 5: It's not at all.
21:47
Speaker 3: And I kind of want to unpack this in two places,
21:50
Speaker 3: going back to what you kind of said at the start,
21:52
Speaker 3: where the most common responses we're seeing are people saying,
21:55
Speaker 3: oh my god, it's going to push the property prices down,
21:57
Speaker 3: and then oh my god, what is that going to
21:58
Speaker 3: mean for a tirem So let's talk about property first,
22:00
Speaker 3: because I feel like that's what people care about.
22:01
Speaker 1: I would just like to carry on about super for
22:04
Speaker 1: a really long time, but this is a very good time.
22:07
Speaker 3: We could talk about it all day. But obviously there's
22:10
Speaker 3: a bit of back and forth. The people who are
22:11
Speaker 3: in support are very much saying this is going to
22:13
Speaker 3: be great, like you can afford a house sooner, better, wonderful.
22:16
Speaker 3: Why is that not the case? What impact is this
22:19
Speaker 3: potentially going to have on property prices?
22:21
Speaker 1: So let's pretend for a hot second that everybody was
22:24
Speaker 1: able to get out fifty grand and then magically have
22:27
Speaker 1: their house deposit. They might already have some savings, or
22:30
Speaker 1: it might actually take them to the point where they
22:32
Speaker 1: have enough for the house of their dreams. Right, there's
22:34
Speaker 1: more people in the market, and the property market is
22:37
Speaker 1: driven by supply and demand. Are we building a whole
22:40
Speaker 1: heap of other houses to now keep up with the
22:42
Speaker 1: increased demand that is going to exist because there's going
22:46
Speaker 1: to be more people like Jess who have money to
22:49
Speaker 1: spend on property now because they've pulled it out of
22:51
Speaker 1: their subernuation. So Jess, you who has saved fort literally
22:55
Speaker 1: years to afford your first property, and you're now in
22:57
Speaker 1: this position where we're looking for one, and it's very
22:59
Speaker 1: exciting if this goes through and it happened, and let's
23:02
Speaker 1: be honest, none of that ever happens quickly. That will
23:05
Speaker 1: take a very long time. But if this happened, you
23:07
Speaker 1: now have more competition. There's no more houses, so that
23:10
Speaker 1: would increase property prices, not decrease them, just because people
23:14
Speaker 1: have a lower deposit amount.
23:15
Speaker 5: And it's also for that more affordable demographic. Right, it's
23:19
Speaker 5: all the same first home buyer is going for the
23:21
Speaker 5: same property, so that they're those practically driven up exactly.
23:24
Speaker 1: And we're not just talking about the property market across
23:27
Speaker 1: the board, like we need to talk about accessibility and
23:30
Speaker 1: what types of properties are actually being bought by millennials,
23:33
Speaker 1: because I think everyone goes, wow, the averages million dollars.
23:36
Speaker 1: I'm like, well, not every millennial is buying a million
23:39
Speaker 1: dollar property like that is a ridiculous amount of money
23:41
Speaker 1: to be spending. And lots of you are looking at
23:45
Speaker 1: like four hundred or five hundred thousand dollar property purchases,
23:48
Speaker 1: and that seems quite normal in our community. They're the
23:52
Speaker 1: ones that are going to increase significantly in value because
23:54
Speaker 1: they're the ones that are in demand. What another four
23:57
Speaker 1: hundred thousand dollar property is going to be popping up anywhere. No,
24:00
Speaker 1: because we don't have the capacity to do that. So
24:03
Speaker 1: I just think that it's a bit flawed in that
24:06
Speaker 1: if they're saying, oh, it'll make property more aft. How yeah,
24:10
Speaker 1: let's say it works.
24:11
Speaker 3: You get your property, you have your house, stoked on life,
24:15
Speaker 3: forty years goes by, when now sixty five and ready
24:18
Speaker 3: to retire, what does that potentially now look like with
24:21
Speaker 3: the impact of what we've withdrawn.
24:23
Speaker 1: So they're talking about how this is actually a good
24:26
Speaker 1: system because you'll put the money back in your super
24:29
Speaker 1: real apparently apparently. So let's pretend for a hot second
24:33
Speaker 1: that was mandated and you had to put your money
24:35
Speaker 1: back into super if you sold, Why are you selling
24:38
Speaker 1: your family home when you're retiring? Where are you planning
24:41
Speaker 1: on living? I guarantee the type of person, and this
24:45
Speaker 1: is not me stereotyping or being rude about it, I promise,
24:48
Speaker 1: but the type of person that needs to rely on
24:50
Speaker 1: their superannuation to pull money out buy their first property
24:53
Speaker 1: is not buying a house you can downsize from. You're
24:56
Speaker 1: not buying a five bedroom mega mansion that you can
25:00
Speaker 1: and then go down to a cute little two bedroom
25:02
Speaker 1: apartment like. No, you're actually buying the two bedroom apartment
25:05
Speaker 1: as your home you're going to get all the way
25:08
Speaker 1: through to retirement. You're going to retire. And most people
25:11
Speaker 1: who invest in their first home as their actual investment,
25:15
Speaker 1: which I don't believe it is. And I've said this
25:17
Speaker 1: a million times, your family home is not an investment.
25:20
Speaker 1: And I say that because I don't want you to
25:22
Speaker 1: be reliant on what your family home is worth when
25:25
Speaker 1: you retire to have to survive. We want to rely
25:27
Speaker 1: on investments and subernuation and things that actually put us
25:30
Speaker 1: in a position where how good is this. We've bought
25:33
Speaker 1: our two bedroom apartment and let's pretend we never buy
25:35
Speaker 1: another property again, we never sell it. We've lived there forever.
25:39
Speaker 1: We've now retired, we don't have a mortgage, were completely
25:42
Speaker 1: rent free, and we now rely on our super How
25:45
Speaker 1: good is that?
25:46
Speaker 3: But that't the fact that you got rid of half
25:48
Speaker 3: your stupid to get the house in the first place.
25:49
Speaker 1: For not half, not half. Don't be so dramatic, Jessica. Sorry, sorry,
25:54
Speaker 1: Let's say that you did that. You're putting yourself nearly
25:57
Speaker 1: half a million dollars more than half a million dollars
25:59
Speaker 1: beyrend in retirement by making that decision. And if we
26:03
Speaker 1: look at the property market as a bit more of
26:05
Speaker 1: a whole, I think that there still seems to be
26:08
Speaker 1: this bubble of people who are like property is the
26:11
Speaker 1: only option when it comes to investment because it's so powerful.
26:15
Speaker 1: Look how much, jess it's increased in last thirty years.
26:19
Speaker 1: You go, okay, but that's actually completely unsustainable. Yes, property
26:24
Speaker 1: is increasing, but it's definitely not increasing in the way
26:27
Speaker 1: that it has historically. There was obviously that bubble during
26:31
Speaker 1: COVID where regional properties increased significantly because we could work
26:35
Speaker 1: more remotely, and that made a lot of sense because
26:37
Speaker 1: that was related to demand. But our incomes have not
26:40
Speaker 1: increased in line with property growth, So how on earth
26:44
Speaker 1: is the average Australian going to actually afford a property.
26:48
Speaker 1: I think there's going to be a cap point. And
26:50
Speaker 1: when I say that, I don't mean, oh my gosh,
26:52
Speaker 1: property is going to cap out, it's going to be
26:53
Speaker 1: so reasonable.
26:55
Speaker 5: No.
26:55
Speaker 1: I think what's going to happen is there will be
26:57
Speaker 1: a point at which property won't increase that much. So
27:00
Speaker 1: if you buy a seven hundred thousand dollars house in
27:02
Speaker 1: ten years, it's probably going to be worth seven hundred grand. Again,
27:04
Speaker 1: it doesn't mean it's going to be more affordable, but
27:07
Speaker 1: will mean that there's not an increase in demand and
27:10
Speaker 1: therefore an increase in what your purchaser is willing to
27:13
Speaker 1: pay for that because they don't have the income to
27:15
Speaker 1: support that.
27:16
Speaker 3: Yes, that mean it's growing at the pace that it's growing.
27:18
Speaker 3: At some point, surely it's just going to get to
27:21
Speaker 3: a place where it's like no one can afford it.
27:24
Speaker 3: And I mean it's obviously approaching that point now where
27:26
Speaker 3: first home buyers like myself are finding it harder and
27:29
Speaker 3: harder and harder and stract further and further to get there.
27:32
Speaker 3: If it kept growing at the rate that it's growing out.
27:34
Speaker 3: Literally just no one would buy houses because they literally
27:36
Speaker 3: couldn't afford that exactly.
27:38
Speaker 1: And I mean there's so many dimensions that come into
27:40
Speaker 1: play here. People will be like, oh, well, interest rates
27:42
Speaker 1: have never been lower in this and that and the other.
27:44
Speaker 1: Let's take a step back. When my dad bought his
27:47
Speaker 1: first property, real cool guy bought it at like twenty
27:50
Speaker 1: one water bawler my dream, it was three and a
27:53
Speaker 1: half times his annual salary. Today, for the average Australian
27:58
Speaker 1: to purchase a prop it's a minimum of thirteen times
28:02
Speaker 1: their annual salary. Yeah, tell me how property prices are
28:06
Speaker 1: staying in line with rage growth? It's not so How
28:09
Speaker 1: is that sustainable? We are now bending over backwards to
28:13
Speaker 1: get into properties that we arguably can't afford anymore. For
28:17
Speaker 1: what for the you know, ability to say, oh my gosh, Yess,
28:20
Speaker 1: I own a house and like, please guys, I'm not
28:23
Speaker 1: throwing Jess under a bus. We've done some pretty significant
28:25
Speaker 1: financial planning for that woman, like we know that's the
28:28
Speaker 1: right decision for her. But looking at a lot of people,
28:31
Speaker 1: and it's a very hard reality to swallow because it
28:35
Speaker 1: is really sad. For a lot of people in our community,
28:39
Speaker 1: buying a property is not the best decision for them financially,
28:42
Speaker 1: because it's actually going to put them further behind because
28:46
Speaker 1: what they would pay in mortgage or payments impacts their
28:48
Speaker 1: lifestyle so significantly, and it impacts their ability to generate
28:52
Speaker 1: wealth so significantly that even if they got to retirement
28:55
Speaker 1: and they paid their entire home off in that thirty
28:57
Speaker 1: year mortgage period, they have nothing else to show for
29:00
Speaker 1: their wealth. They might own that apartment, or they might
29:02
Speaker 1: own that home, But what do you have in SUPER
29:05
Speaker 1: that can support you in retirement? Do you have any
29:08
Speaker 1: other assets, do you have savings? Do you have any
29:11
Speaker 1: type of investment outside of super? If you are stretching
29:14
Speaker 1: yourself so thin when it comes to mortgage or payments,
29:18
Speaker 1: you're probably going to find yourself in that position. And
29:21
Speaker 1: that's why I'm so pro education and so pro talking
29:24
Speaker 1: about other investment types, because you know, we could invest
29:28
Speaker 1: in shares thirty forty years ago, but the world has
29:32
Speaker 1: completely changed since then, and we need to look into
29:36
Speaker 1: other avenues of wealth generation and wealth creation so that
29:39
Speaker 1: we end up in the position we hope we end
29:41
Speaker 1: up in. Because it's not as easy as it used
29:43
Speaker 1: to be, and.
29:44
Speaker 3: There's no guarantee either that the education that needs to
29:46
Speaker 3: be there will be because a lot of people are saying, oh, well,
29:50
Speaker 3: you know we pulled money out during COVID. You could
29:52
Speaker 3: pull money out for super then yep. And I mean
29:54
Speaker 3: I would argue that it's a very different place when
29:57
Speaker 3: you know, pulling money out to survive. That's it's a
30:00
Speaker 3: very different circumstance versus purchasing a property, which arguably is
30:04
Speaker 3: a one. But we actually spoke about this at the
30:07
Speaker 3: time because we felt there was an anywhere near the
30:09
Speaker 3: level of education or awareness generated that needed to be.
30:12
Speaker 3: There was none people recognizing the impact of pulling out
30:15
Speaker 3: money out if you needed it one hundred percent, if
30:18
Speaker 3: that was the difference between you putting food on the
30:20
Speaker 3: table or losing your house or being homeless or whatever,
30:23
Speaker 3: of course that was a good decision, But there was
30:26
Speaker 3: no education about the long term impacts of that. And
30:29
Speaker 3: we spoke about it, and v You personally campaigned about
30:32
Speaker 3: it really strongly to make sure that people knew.
30:34
Speaker 1: It angered me because too many people thought, wow, or
30:37
Speaker 1: just take that out, then if I can access it,
30:39
Speaker 1: it's my money. I know someone who used it to
30:41
Speaker 1: buy a car, and I'm sure even start any person
30:44
Speaker 1: that why I was having a rant obviously on Instagram
30:47
Speaker 1: over the weekend, but I ended up in a very
30:49
Speaker 1: good DM conversation with one of my friends who's a
30:51
Speaker 1: sex worker, and she says she knows a guy who
30:54
Speaker 1: took out of Super twice twenty grand and blew it
30:57
Speaker 1: all on sex workers. Wow. Like, if if you can
31:00
Speaker 1: do that, yeah, anyone can lose money. And we're not
31:04
Speaker 1: talking about what he spent the money on, but the
31:06
Speaker 1: fact he could access it to then have no accountability
31:09
Speaker 1: of where that money went like that, I promise you
31:12
Speaker 1: what he spent his money on wasn't a need that
31:14
Speaker 1: was an absolute want, and it didn't put him in
31:17
Speaker 1: a better financial position, and it didn't keep food on
31:20
Speaker 1: his table and a roof over his head, which is
31:22
Speaker 1: what claiming that should have been for.
31:24
Speaker 3: Yeah, and I mean obviously, because this is just a
31:26
Speaker 3: theoretical campaign run proposal, there's no real information on.
31:31
Speaker 1: You know what, the situation we're making all of that.
31:33
Speaker 1: But I just Jess George, I find it so irresponsible
31:37
Speaker 1: of them to say things like this, which they know
31:40
Speaker 1: are going to be relatively inflammatory. And when I say inflammatory,
31:43
Speaker 1: I don't mean they're trying to start an Instagram fight,
31:45
Speaker 1: which is what they got from me. But what I
31:48
Speaker 1: mean is people are going to pick it up and
31:50
Speaker 1: be like, Wow, that's so helpful. Yeah, I'll vote for
31:53
Speaker 1: him like that. It is a shameless grab of votes.
31:57
Speaker 1: And it makes me feel really icky because I'm like,
31:59
Speaker 1: we're not talking about the education around here, Like imagine
32:02
Speaker 1: if instead they were talking about a school financial literacy program.
32:07
Speaker 1: Or let's be a little bit brutal, let's talk about
32:11
Speaker 1: stamp judy, why are we still spending that? If you
32:14
Speaker 1: guys flipped that and said, do you know what first
32:17
Speaker 1: home buyers don't have to pay stamp duty? Do you
32:19
Speaker 1: know how many more people would be able to afford houses?
32:21
Speaker 1: Do you know how many more people wouldn't be compromised
32:23
Speaker 1: in retirement? Millions? So I just think that there's a
32:28
Speaker 1: lot they could do, a lot they're choosing not to do,
32:30
Speaker 1: and they're trying to market themselves so well, so they
32:33
Speaker 1: look like little angels. I could go on and on.
32:36
Speaker 1: I got a lot to say.
32:37
Speaker 5: Oh, there's so much to say, and Souper is just
32:39
Speaker 5: such an interesting conversation to have. And I think before
32:43
Speaker 5: I worked here, I didn't know anything about it. And
32:45
Speaker 5: now to all of my friends, I'm like, make sure
32:46
Speaker 5: you were paying yourself super if you're self employed.
32:50
Speaker 3: Exactly every time one of my friends gets they're paying
32:53
Speaker 3: into your super while you're not working.
32:56
Speaker 1: You guys must be nightmares like I do you want
33:01
Speaker 1: to come to my house and talk about super Laba?
33:04
Speaker 1: I was holding the one you bring the goodbbe Hi bear.
33:10
Speaker 5: Have you got a money dilemma you just can't solve?
33:12
Speaker 5: The Sheese on the Money Team is here to help.
33:15
Speaker 5: Every week, we tackle your dilemmas, both big and small,
33:18
Speaker 5: to answer your most burning money, career and life questions.
33:21
Speaker 5: To get involved, simply head to our website and leave
33:24
Speaker 5: us a quick voice recording and you may just find
33:26
Speaker 5: yourself on the show. Now, let's take a listen to
33:28
Speaker 5: today's money dilemma.
33:31
Speaker 4: Hi guys, just wondering what your thoughts were on the
33:34
Speaker 4: salary sacrificing. To sum up, I've been salary sacrificing since
33:39
Speaker 4: I started working three years ago. It was pretty much
33:42
Speaker 4: sold to us at orientation, and it seems like it's good.
33:46
Speaker 4: Like I salary sacrifice three hundred and forty dollars a
33:49
Speaker 4: fortnite to my rent, which covers my rent for the
33:52
Speaker 4: fortnite I live in a sharehouse, and one hundred and
33:54
Speaker 4: eight dollars to a meal entertainment car, which I find
33:57
Speaker 4: worthwhile because it's money that never comes into my account
34:00
Speaker 4: that I can use for like a night out or
34:03
Speaker 4: a brunch. But in saying that, it's like so much
34:08
Speaker 4: conflicting information, and I just don't know if it's actually
34:10
Speaker 4: the right thing to do financially.
34:11
Speaker 1: All right, Salary sacrificing has been a relatively spicy topic
34:15
Speaker 1: in the She's on the Money community, and I'm glad
34:17
Speaker 1: someone's asked the question because it's good and bad, right, Like,
34:21
Speaker 1: I obviously don't know your personal circumstances, so I can't
34:24
Speaker 1: be like, oh my gosh, you should be salary sacrificing X,
34:27
Speaker 1: Y and Z, because that makes the most sense. But
34:29
Speaker 1: I found the point in your question really interesting because
34:32
Speaker 1: you said it was basically sold to us at orientation,
34:34
Speaker 1: because that's how it works, right, and it sounds so good. Right,
34:37
Speaker 1: you can salary sacrifice stuff and it's pre tax money.
34:41
Speaker 1: So for those of you who don't know what salary
34:44
Speaker 1: sacrificing is, or it can be called like salary baggaging.
34:47
Speaker 1: It's basically to enable an employee, usually someone who works
34:51
Speaker 1: for like the government or in healthcare, to receive a
34:55
Speaker 1: combination of income and benefits in a super tax effective manner.
34:59
Speaker 1: The reason they do this is because they can't usually
35:02
Speaker 1: afford to pay even more salary to people, but they
35:05
Speaker 1: can use their tax structure to make sure you can
35:09
Speaker 1: access some pre tax benefits.
35:10
Speaker 4: Right.
35:11
Speaker 1: So it's usually in areas, as I said, like government
35:14
Speaker 1: and healthcare, where they don't have the ability to be like, oh, Jesse,
35:16
Speaker 1: you've been performing so well, like here's a massive pay rise,
35:19
Speaker 1: because it's usually government mandated or there's some reason why.
35:23
Speaker 1: There are also a lot of other employers who are like,
35:25
Speaker 1: this is a great benefit to our employees, like we're
35:27
Speaker 1: just going to add it on. But the background is
35:29
Speaker 1: that's why it basically exists. But essentially what happens is
35:32
Speaker 1: you take some of your remuneration in the form of
35:34
Speaker 1: concessionally taxed benefits instead of taking it as fully assessed income.
35:39
Speaker 1: This process is called salary sacrificing, which our listener she
35:42
Speaker 1: mentioned before, she's been sacrificing three hundred and forty dollars
35:46
Speaker 1: in rent every single fortnight and one hundred and eight
35:49
Speaker 1: dollars in meals and entertainment. So that's about eleven thousand
35:52
Speaker 1: dollars a year, or about eighty eight hundred dollars just
35:55
Speaker 1: for rent, which you go, all right, well, rent is
35:57
Speaker 1: a cost that you're going to have to pay regardless.
36:01
Speaker 1: Kind of cool that she can, you know, not pay
36:03
Speaker 1: tax on that amount, because think about it, marginal tax
36:06
Speaker 1: rates are pretty high. That means she's saving at least
36:08
Speaker 1: twenty five percent at a minimum on her rent. A
36:11
Speaker 1: bit of a money win. But essentially what you do
36:14
Speaker 1: is you salary sacrifice money and it gets paid back
36:17
Speaker 1: to you in a different way. So it could be
36:20
Speaker 1: paid back to you in the form of an entertainment
36:22
Speaker 1: and a meals card, or it might be paid directly
36:25
Speaker 1: to your rent, so you don't personally see that money usually,
36:28
Speaker 1: which is kind of cool because it can be like
36:30
Speaker 1: a little bit of making sure that your rent's paid
36:32
Speaker 1: in a forced saving sort of way. There are a
36:35
Speaker 1: fair few things you can salary sacrifice, so rent obviously,
36:39
Speaker 1: meals and entertainment obviously because our listener mentioned it, but
36:43
Speaker 1: you can also salary sacrifice car costs. You can salary
36:46
Speaker 1: sacrifice car parking, which is kind of cool because Jess
36:50
Speaker 1: and I look about how much costs to park at
36:53
Speaker 1: a time. You can obviously salary sacrifice superannuation, which is
36:57
Speaker 1: my favorite kind. But there are number of advantages which
37:01
Speaker 1: you guys probably have already alluded to. But I'll give
37:03
Speaker 1: you a very good example. So say our listener, she
37:06
Speaker 1: didn't tell us how much she earned. I always love
37:08
Speaker 1: knowing what people earn if they call up. So you
37:10
Speaker 1: just call up, be like, Vie, I earn this amount,
37:12
Speaker 1: and I'll be like, heck can Yeah. But let's just
37:15
Speaker 1: say someone earns one hundred grand a year and they
37:18
Speaker 1: want to buy a new car for work, and that
37:20
Speaker 1: car's worth twenty two thousand dollars. Had they entered into
37:23
Speaker 1: an employee salary sacrifice scheme, the twenty two thousand dollars
37:27
Speaker 1: would have been taken out of their pre tax income.
37:30
Speaker 1: So instead of being paid and then buying a car
37:32
Speaker 1: with the money that you've saved, it comes out of
37:34
Speaker 1: that before, which means actually decreases your marginal tax rate
37:38
Speaker 1: because you go into potentially not for everybody, because you
37:41
Speaker 1: might stay in the same salary bracket, but they would
37:44
Speaker 1: have ended up in a lower tax bracket because it
37:47
Speaker 1: decreases their taxable income to seventy eight thousand dollars a year.
37:51
Speaker 1: So there's a number of benefits there obviously, But what
37:55
Speaker 1: that means is you can make the most of your
37:58
Speaker 1: pre tax dollars. But the trippy thing here is that
38:02
Speaker 1: people get really caught up in it. They'll go, oh,
38:04
Speaker 1: I should buy a new car, Like my friend, did
38:06
Speaker 1: you need the new car or was it just a
38:08
Speaker 1: good idea? Like just because you're saving money, and this
38:11
Speaker 1: goes for anything, right, just because you're saving money doesn't
38:13
Speaker 1: mean that you need to spend it. Like you're spending
38:16
Speaker 1: money to save money, Like that's taking you backwards if
38:19
Speaker 1: it's actually something you didn't need or didn't actually plan
38:23
Speaker 1: on purchasing. And the same happens. And I do see
38:26
Speaker 1: this happen a lot. Is the food and beverage cards
38:29
Speaker 1: or the food and entertainment card that was mentioned that
38:32
Speaker 1: seems to get out of hand. Now I have absolutely
38:35
Speaker 1: no judgment how much you spend on food and entertainment,
38:38
Speaker 1: but a lot of people will be like, oh, I've
38:40
Speaker 1: got this like food and entertainment card through work, so
38:44
Speaker 1: let's just go out for dinner. Yeah, Okay, you need
38:47
Speaker 1: to use it, IP, yeah, I need to use it up.
38:48
Speaker 1: It's like not this mentality of well, actually that's my money, Like,
38:52
Speaker 1: it's a very different mentality. And I think we have
38:54
Speaker 1: to be really careful of that because our listener just said,
38:57
Speaker 1: I salary sacrifice one hundred and eight dollars per fight,
39:00
Speaker 1: which doesn't seem that much, but over a year, that
39:04
Speaker 1: adds up to be a couple of grand Like, that's
39:07
Speaker 1: not a small expense. And if she's going, yeah, just
39:10
Speaker 1: doing it on groceries and that's actually what my budget is,
39:12
Speaker 1: I'll be like great. But if you're just going out
39:16
Speaker 1: but you're trying to stay for a home or you're
39:17
Speaker 1: trying to be more budget conscious, like, it's still your
39:20
Speaker 1: money regardless of whether you're you know, making a good
39:23
Speaker 1: tax saving.
39:24
Speaker 4: On it or not.
39:25
Speaker 1: So I think the main thing with salary sacrificing is yeah, great,
39:29
Speaker 1: it makes a lot of sense. And if you need
39:30
Speaker 1: to buy a brand new family car because you're having
39:32
Speaker 1: a baby and there's all these other things, like, it
39:34
Speaker 1: might be a strategy that you make use of. But
39:37
Speaker 1: I do think that it can be a little bit
39:40
Speaker 1: of a slippery slope for people because they justify their
39:42
Speaker 1: spending because they're like, ah, but I've got this card,
39:45
Speaker 1: and I'm it's basically free money. It's actually not.
39:49
Speaker 5: So it's a very personal thing. Yeah, absolutely, But for
39:52
Speaker 5: anyone who is interested and wants to know more. We
39:55
Speaker 5: did do an episode all about salary sacrifice. He did
39:58
Speaker 5: That was April last year. Thank got your so scroll
40:02
Speaker 5: buck in your feed and we go really deep into
40:04
Speaker 5: that one.
40:04
Speaker 3: It's called Nice Salary Package. I'm pretty sure I came
40:07
Speaker 3: up with that name.
40:11
Speaker 1: That's an episode a year ago. You've just been sitting
40:13
Speaker 1: on that as like the best episode you've ever NATed.
40:15
Speaker 3: I think it's one of the best names I've ever done.
40:18
Speaker 1: Well, we've covered a lot in today's episode, but unfortunately, guys,
40:21
Speaker 1: I think that is all we have time for today.
40:24
Speaker 1: But just before we head off, Miss Georgia King, could
40:27
Speaker 1: you please wrap the boring but very important stuff.
40:30
Speaker 5: It would be an honor. Alrighty, guys. The advice shed
40:33
Speaker 5: on She's on the Money is general in nature and
40:35
Speaker 5: does not consider your individual circumstances. She's on the Money
40:39
Speaker 5: exists purely for educational purposes and should not be relied
40:42
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40:45
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40:47
Speaker 5: authorized representatives in Focus Securities Australia Propriety Limited ABN four
40:53
Speaker 5: seven zero ninety seven seven nine seven zero four nine
40:56
Speaker 5: AFOSAL two three six five two three See you next week.
41:00
Speaker 2: You got I fear
41:12
Speaker 5: H