Latest / Two Broke Chicks / Mid-Year Money Reset: RICH GIRL ERA

Transcript

Mid-Year Money Reset: RICH GIRL ERA · Two Broke Chicks

0:00
Speaker 1: This podcast is recorded on gadigal Land Always was, always
0:03
Speaker 1: will be Aboriginal Land. Hey Chicks, I'm now and I'm
0:13
Speaker 1: sal and this is two broat Chicks, the show that
0:15
Speaker 1: shares life lessons and tips to help make you rich
0:18
Speaker 1: in life. And today's episode is all about your mid
0:21
Speaker 1: year reset and how you can make your regular spending
0:24
Speaker 1: turne into something remarkable, which is such a huge part
0:29
Speaker 1: of creating that rich girl erar life that we're talking
0:31
Speaker 1: about today, because the rich girl era is more about
0:34
Speaker 1: getting more from life and a midyear reset is the
0:37
Speaker 1: perfect time to do just that. But before we get
0:40
Speaker 1: into the episode, sour, what is your obsession of the week.
0:44
Speaker 2: My obsession of the week is a book I read
0:48
Speaker 2: and it's called The Burrow.
0:50
Speaker 1: Oh oh yes, yeah.
0:52
Speaker 2: So it's by an Australian author and it's actually been
0:55
Speaker 2: nominated for a bunch of awards. And it's a pretty
0:59
Speaker 2: short read, I would say, a relatively easy read, and
1:03
Speaker 2: a quick synopsis is that it's about a family based
1:06
Speaker 2: in Melbourne and it's two parents and then they've got
1:10
Speaker 2: a young daughter and then they had a baby who
1:13
Speaker 2: recently passed away, and it's sort of about their family
1:17
Speaker 2: and how they moved through the grief and they buy
1:21
Speaker 2: per a pet bunny, and so I don't want to
1:24
Speaker 2: give too much away, but it's really really beautiful and
1:28
Speaker 2: it's sad and heartwarming and I definitely recommend reading it.
1:32
Speaker 3: What's your obsession?
1:33
Speaker 1: My obsession of the week is a post I saw
1:36
Speaker 1: on Female invest and it was that women's unpaid labor
1:42
Speaker 1: is valued at ten point eight trillion annually, So if
1:48
Speaker 1: it was a country, it would be the world's third
1:51
Speaker 1: largest economy, so larger than Japan, the UK, and France combined.
1:58
Speaker 1: So if anyone is still yaping that there is an
2:01
Speaker 1: a gender pay gap, for free to whip that out, Yeah,
2:04
Speaker 1: because I do think we are talking about the unpaid
2:08
Speaker 1: labor of women a lot more, and I think it's
2:11
Speaker 1: great that we're having this conversation, but it's still very
2:15
Speaker 1: much present, Like it's still very much a thing that
2:19
Speaker 1: needs to be at the forefront of our money conversations,
2:24
Speaker 1: whether you're in a relationship, whether you're a mother, whether
2:27
Speaker 1: like however that looks, it needs to kind of also
2:31
Speaker 1: be something that's factored in. And it's something that I
2:33
Speaker 1: very actively talk about with my partner about like just
2:39
Speaker 1: that there is admin, and that is something that needs
2:42
Speaker 1: to be split because and he's great, like bare Mini
2:46
Speaker 1: mem as well, like, yeah, it shouldn't be like he's
2:48
Speaker 1: so good he does some of the admin. I'm like no, no, no,
2:50
Speaker 1: I'm like having the conversation is being like, you might
2:54
Speaker 1: not realize this task is here because this is the
2:56
Speaker 1: task that I'm doing, but I'm also doing all these
2:59
Speaker 1: tasks and I need you to pick up some of it.
3:01
Speaker 2: And it's annoying as well that sometimes people can go
3:05
Speaker 2: through life and they don't even realize that that's happening
3:08
Speaker 2: because they're in a privileged position that somebody has already
3:11
Speaker 2: always done it for that. But yeah, I do think
3:14
Speaker 2: that that is the reality of the world that we
3:16
Speaker 2: live in. And it's great that we acknowledge that there
3:19
Speaker 2: is this inequality in unpaid labor, but yeah, we actually
3:23
Speaker 2: need to do something about it.
3:26
Speaker 4: And it's annoying that a lot of the time it
3:27
Speaker 4: falls on us to have to.
3:29
Speaker 1: Educate people as well.
3:30
Speaker 2: I'm acknowledging that as well is unfair, But I think, yeah, definitely.
3:34
Speaker 4: Have those conversations with the people in your life.
3:37
Speaker 1: It ties into the statistic of why more women are
3:41
Speaker 1: being choosing to be single, and that there's so many
3:44
Speaker 1: statistics that single women in their forties and fifties are
3:48
Speaker 1: actually happier than married women, and it's because they aren't
3:53
Speaker 1: having to do all this unpaid labor of life.
3:55
Speaker 2: Yeah, taking care of somebody's grown our son exactly.
4:00
Speaker 1: On that note, let's talk about how to enter your
4:04
Speaker 1: rich girl era.
4:10
Speaker 4: Our first st app are spending aesthetic audit.
4:16
Speaker 1: Anything with the word aesthetic in it.
4:17
Speaker 2: I'm like, tell me, yeah exactly, because we've spoken about
4:22
Speaker 2: this on the show before.
4:23
Speaker 1: But how when.
4:24
Speaker 2: You look at your expenses, they should be reflecting your
4:29
Speaker 2: values and where you want to be in life. So
4:32
Speaker 2: say you're telling yourself, I have a value of saving
4:36
Speaker 2: money for a house or like in the future, I
4:38
Speaker 2: want to buy my first apartment.
4:41
Speaker 4: But then when you look at.
4:41
Speaker 2: Your expenses and it's like, okay, you say that that's
4:45
Speaker 2: your value when really your values are online shopping and getting.
4:51
Speaker 1: Takeaway or cockie tails with the girls.
4:54
Speaker 3: Yeah exactly.
4:55
Speaker 2: So I think it's really good to take this time
4:59
Speaker 2: in the midyear reset to reassess what are my values,
5:03
Speaker 2: where do I want to be and is this actually
5:06
Speaker 2: being reflected in how I'm spending my money, and does
5:10
Speaker 2: it match your Pinterest board values?
5:14
Speaker 1: Like if you could think of how you spent your money,
5:17
Speaker 1: would automatically be created as a Pinterest board, like mentally
5:22
Speaker 1: as that practice, would you like what was on your
5:24
Speaker 1: Pinterest board?
5:25
Speaker 3: Yeah?
5:26
Speaker 1: And I think that's the thing that would kick me
5:28
Speaker 1: up the ass, Yeah, because like you put on your
5:32
Speaker 1: Pinterest board for example, Like, let's say the most common
5:35
Speaker 1: things people put on their Pinterest boards. Right, it's a house,
5:38
Speaker 1: it's a new car. Maybe it's traveling, it's eating good food,
5:42
Speaker 1: it's spending a lot of time. It's maybe working out
5:45
Speaker 1: or moving your body, spending time with friends.
5:47
Speaker 4: Right.
5:48
Speaker 1: But when we then look at what we're spending, if
5:51
Speaker 1: you were to then export that as a Pinterest board,
5:55
Speaker 1: would it match? And I think sometimes that is the
5:58
Speaker 1: thing that you're like, oh shah.
6:00
Speaker 2: Yeah, it's the visual reminder, yeah, of where your money
6:04
Speaker 2: is actually going.
6:04
Speaker 1: That's why things like a money diary are really helpful
6:08
Speaker 1: because it takes an active approach to understanding where you're
6:12
Speaker 1: spending your money. Yeah, and I did this when I
6:16
Speaker 1: sometimes go through like bad money habits stages. Yeah, Like
6:20
Speaker 1: I go through stages where I'm good with my money
6:23
Speaker 1: and like I'm very active, and then I go through stages.
6:25
Speaker 1: I think it's when I get stressed with work or
6:27
Speaker 1: blah blah blah, and I'm like, oh, do you know what,
6:29
Speaker 1: I'll just get I'll just get takeaway. I'll just do this,
6:31
Speaker 1: I'll just do that. And I did it as a
6:33
Speaker 1: practice when I felt like I was spending a lot
6:35
Speaker 1: of money on takeaway because I just was really, really exhausted.
6:40
Speaker 1: So I just couldn't be bothered to like meal prep,
6:42
Speaker 1: meal prep, think about what to cook, the idea of
6:45
Speaker 1: cooking dinner. After a day, I was like, Yeah, it
6:48
Speaker 1: got to the point that I was like, I'm spending
6:50
Speaker 1: way too much money on takeaway food. And so every
6:52
Speaker 1: time I went to order takeaway on my phone, I
6:57
Speaker 1: had to write it down, and the amount of time
7:00
Speaker 1: also just how fucking expensive it is now. It's crazy.
7:03
Speaker 1: It's like seventy dollars for like two meals, yeah, and
7:08
Speaker 1: thirty thirty five dollars for one person. Right that I
7:11
Speaker 1: would be like that's a lot of money, Like every
7:14
Speaker 1: time I write it down, and then when you look
7:15
Speaker 1: back at the week and you add it all up,
7:17
Speaker 1: you're like, that's where my money's going. Yeah, you're like,
7:20
Speaker 1: oh my gosh, because how often do we really like
7:24
Speaker 1: this is a practice we should be doing, But how
7:25
Speaker 1: often do we really go back over the week and
7:27
Speaker 1: be like, Okay, that's exactly how much I spent on
7:30
Speaker 1: takeaway this week And you're like, you know.
7:33
Speaker 2: Yeah, exactly. So that is a key part of this
7:36
Speaker 2: aesthetic order.
7:38
Speaker 1: Even look back at the last.
7:39
Speaker 2: Thirty days of your expenses and write it down and
7:43
Speaker 2: see if it does reflect that Pinterest board that you
7:45
Speaker 2: have in your mind of where you want your life
7:47
Speaker 2: to be. And then from there you can identify which
7:51
Speaker 2: habits you maybe want to replace or improve on.
7:54
Speaker 3: For the second half of the year.
7:56
Speaker 2: So to simplify, let's focus on one habit every month
8:01
Speaker 2: for the rest of the year to audit.
8:03
Speaker 3: And improve on.
8:04
Speaker 2: So, for example, you could choose takeaway food or your
8:09
Speaker 2: one hundred dollars spent on manicures or impulse shopping and
8:13
Speaker 2: tackle one thing at a time, because if you're trying
8:16
Speaker 2: to do everything.
8:17
Speaker 1: You'll be motivated for that one week and hard.
8:21
Speaker 2: Yeah, this audit can also include making a conscious decision
8:25
Speaker 2: about where your money is going and how it aligns
8:28
Speaker 2: to your values in other ways, So for example, you
8:32
Speaker 2: could switch to an ethical superfund, or every time you're
8:35
Speaker 2: replacing your beauty products, shop with cruelty free brands and be.
8:39
Speaker 3: More mindful in that way.
8:40
Speaker 2: I think that this aesthetic audit can look a few
8:45
Speaker 2: different ways depending on how you want to improve your
8:48
Speaker 2: spending choices.
8:49
Speaker 3: But the midyear is the perfect.
8:51
Speaker 2: Time to reflect on that and chart the course for
8:55
Speaker 2: the rest of the year.
8:56
Speaker 1: I think it's good as well because you can kind
8:58
Speaker 1: of look back because at the start of the day
9:00
Speaker 1: we're all like, yeah, fucker a millionaire. By the end
9:04
Speaker 1: of it, totally, you can kind of look and see
9:06
Speaker 1: where you started falling off and why and what it was,
9:10
Speaker 1: and be like, Okay, so obviously I was able to
9:13
Speaker 1: last one month with my financial goals. What happened there
9:18
Speaker 1: that like caused me to taper off? Was it, you know,
9:22
Speaker 1: getting back into work and not having enough time to
9:25
Speaker 1: cook meals? Maybe I need a meal prep on a
9:27
Speaker 1: Sunday or like whatever. I love how we're using food
9:29
Speaker 1: as like the one example, because that's what we always
9:33
Speaker 1: spend too much money on. But yeah, and I think
9:37
Speaker 1: as well, like I love small incremental tasks. I think
9:43
Speaker 1: consistency for me, I struggle with a lot, because I
9:48
Speaker 1: like things to be fun and fresh and new new project.
9:51
Speaker 1: Yeah yeah, I love a new project. Like the dopamine
9:53
Speaker 1: heat of a new project is like crack to me. Yeah,
9:58
Speaker 1: it's so good. And that that's why if picking one
10:02
Speaker 1: thing for the entire year maybe doesn't align to you,
10:06
Speaker 1: our second tip would be to schedule soft launch goals
10:10
Speaker 1: so we don't need to hard launch a near relationship
10:12
Speaker 1: with our finances. That's fine because it will probably break
10:14
Speaker 1: up three months later, but we can soft launch, so
10:17
Speaker 1: rather than waiting for January your mid year, think of
10:20
Speaker 1: it as like your new money era, and July could
10:24
Speaker 1: be I like this because it's like little projects. It's
10:27
Speaker 1: little challenges. Like think of it as like your thirty
10:29
Speaker 1: day money challenges every single month. So for example, July
10:33
Speaker 1: could be a no by month, August could be sell
10:36
Speaker 1: five things on Deepop, September could be plan my side hustle.
10:40
Speaker 1: Like it's little things, and when you kind of put
10:43
Speaker 1: it down to thirty days, it makes it a lot
10:45
Speaker 1: easier and a little bit more fun, and you could
10:48
Speaker 1: always repeat things. If you're like I really like selling
10:51
Speaker 1: things on deepop this month, next month, you could do
10:53
Speaker 1: sell tendings. Yeah. You know. My thing with deepop is
10:56
Speaker 1: sometimes I sell things and then I buy things with
10:58
Speaker 1: the things that with the money that I thought girl math.
11:00
Speaker 3: I think a lot of people do that.
11:02
Speaker 1: It's okay because I'm making no Alex Alex. Yeah, I'm
11:08
Speaker 1: like this episodes are for ourselves as well. They're like
11:11
Speaker 1: little diary entry.
11:12
Speaker 2: There really are listening back and I'm like, damn it,
11:15
Speaker 2: and like that's good advice.
11:17
Speaker 1: You should listen to her. Oh, it's me.
11:19
Speaker 2: It is.
11:20
Speaker 1: When you're mapping.
11:21
Speaker 4: Out these soft launch goals.
11:24
Speaker 2: Factor in big spend months, because especially Christmas is always
11:29
Speaker 2: a big spend sort of month, like that November December
11:33
Speaker 2: so soon going to be here so quick, Or if
11:36
Speaker 2: you know that you're going to be moving into a
11:38
Speaker 2: new apartment or you're traveling in July and August, account
11:42
Speaker 2: for those things as well. So maybe not be like
11:45
Speaker 2: I'm going to do a no spend month in August
11:48
Speaker 2: when you know that you're doing a eurosummer then you know,
11:51
Speaker 2: or I'm going to do a no spend month in
11:53
Speaker 2: November when that could be a time that you could be.
11:55
Speaker 1: Yeah, you're got to account for the context.
11:58
Speaker 2: Yeah, exactly, because if you don't do that, then you
12:01
Speaker 2: kind of set yourself up for failure, whereas you know,
12:03
Speaker 2: like work with your schedule and the things that you
12:05
Speaker 2: know that will work for you.
12:07
Speaker 3: I think that's a big part of it.
12:08
Speaker 1: Yeah, I love that what it kind of falls into
12:11
Speaker 1: as well, it's just giving you an eagle eye view
12:16
Speaker 1: of your finances because I know budget is a word
12:20
Speaker 1: that we all kind of hate. I don't know if
12:23
Speaker 1: I'm speaking for everyone here, but like the word budget
12:26
Speaker 1: is not sexy. But there's a famous quote that says
12:29
Speaker 1: having a budget is telling your money where to go
12:32
Speaker 1: instead of wondering where it went. And I was like, ow,
12:38
Speaker 1: that hurt my feelings, but it is so true. And
12:40
Speaker 1: it's like what we were saying before about that practice
12:42
Speaker 1: of even just writing down what you're spending as you
12:45
Speaker 1: spend it, even if you're writing it down in your notes.
12:48
Speaker 1: Every time you order takeaway food, write it down every
12:52
Speaker 1: time you order a coffee, like every time you spend money,
12:54
Speaker 1: write it down in your notes. And having that active
12:57
Speaker 1: perception will make you realize, oh, actually I don't want
13:00
Speaker 1: to spend that. Yeah, because you're going to look at
13:03
Speaker 1: this list in your notes app of money and be
13:06
Speaker 1: like fuck, that's like two hundred dollars that I've just
13:08
Speaker 1: spent in four days and on what and on what? Yeah,
13:12
Speaker 1: and a mediocre burrito that was spilled over my entire bag.
13:16
Speaker 1: Or they forgot my sweetens oursauce and they've ruined it
13:19
Speaker 1: and they didn't put a straw in it. Yeah, Now
13:22
Speaker 1: go sip it from the cut, which isn't as good
13:24
Speaker 1: because the ice always gets in.
13:25
Speaker 2: The way, you know, true, and then a half of
13:27
Speaker 2: it dribbles down my chin. It's a whole thing thing.
13:30
Speaker 1: It's a hot thing. A budget is all about, and
13:32
Speaker 1: that's what a budget it's all about. But I have
13:36
Speaker 1: a little hack. We love to get your budget sorted
13:39
Speaker 1: for free. So it's a chat GPT prompt to enter
13:43
Speaker 1: your rich girl era. So tell chat GPT you are
13:47
Speaker 1: a money expert trying to give me advice on how
13:49
Speaker 1: I should spend, save, and invest on my monthly paycheck.
13:53
Speaker 1: Look at my spending history, and give me a budget
13:56
Speaker 1: on how I should spend, save and invest each month
13:58
Speaker 1: that won't feel too different to how I'm currently living.
14:02
Speaker 1: So that way, it's kind of like with budgets, we
14:05
Speaker 1: get really excited and we go like hell for leather
14:08
Speaker 1: and we're like, I'm going to save a billion dollars,
14:10
Speaker 1: I'm going to spend nothing, and I'm going to stick
14:13
Speaker 1: to this miraculously. Yeah, I'm going to and have this
14:15
Speaker 1: habit after doing nothing to achieve it. Yeah, but it's
14:19
Speaker 1: way better to start small. And then secondly, you can
14:22
Speaker 1: ask it to identify negative spending habits and the soft
14:26
Speaker 1: goals you can achieve each month to reach an end
14:29
Speaker 1: goal by the end of the year. So I like
14:31
Speaker 1: this approach because it's about gradually building up to a
14:34
Speaker 1: more financially savvy persona and spending habits, rather than just
14:38
Speaker 1: thinking you're magically going to wake up and be like, oh, look,
14:40
Speaker 1: I'm good with my money. Yeah, is that a all happened?
14:43
Speaker 1: Speaking from experience.
14:44
Speaker 2: Yeah, I really like that as well, because with budgets
14:48
Speaker 2: or managing your finances, there is a lot.
14:50
Speaker 3: Of anxiety about even looking.
14:53
Speaker 2: That's why there's that whole joke and meme about like
14:56
Speaker 2: people who don't even look at their bank statements. Ever,
14:59
Speaker 2: it's a real thing that anxiety is a real thing,
15:02
Speaker 2: and by doing this with something like chat GPT, it
15:06
Speaker 2: kind of like takes it out of your hands. Something
15:10
Speaker 2: else is doing it, but then you still get an
15:12
Speaker 2: overview and of what you need to do. So if
15:15
Speaker 2: the hardest part is the first step, I think this
15:18
Speaker 2: is a really good hack to actually get that started
15:22
Speaker 2: without having that anxiety or even like looking through the
15:25
Speaker 2: bank statements yourself.
15:26
Speaker 3: That makes sense.
15:27
Speaker 1: Yeah, yeah, agreed. Okay, moving on, Hot Chick tax tips,
15:32
Speaker 1: tell me sow.
15:33
Speaker 2: Hot chick tax tips. Hot chicks do their taxes, Hot
15:38
Speaker 2: cheeks do their ticks.
15:39
Speaker 1: The ticks is.
15:40
Speaker 2: Of course, we have to start by saying none of
15:43
Speaker 2: this is financial advice or tax advice.
15:46
Speaker 3: Where not accountants or financial advisors.
15:49
Speaker 2: Also, when it comes to tax time, everything is so individual,
15:53
Speaker 2: which is why it's so important to do your own research.
15:57
Speaker 3: And that leads me on to my first tip, which
16:00
Speaker 3: is get an accountant.
16:02
Speaker 1: Yeah.
16:03
Speaker 2: This obviously depends on your budget and your tax needs
16:07
Speaker 2: and whether or not you feel like you're capable of
16:09
Speaker 2: doing it yourself. But in our experience, we have found
16:13
Speaker 2: that outsourcing this to an accountant has been invaluable, literally
16:18
Speaker 2: because we know that this is not our area of expertise.
16:21
Speaker 1: But it's confusing.
16:23
Speaker 2: It's so confusing, it's really confusing, it's really scary, and
16:28
Speaker 2: you want to make sure that you're doing the right thing,
16:30
Speaker 2: but also maximizing the deductions that you can claim to
16:34
Speaker 2: hopefully get.
16:35
Speaker 3: As much money back as you possibly can.
16:38
Speaker 2: And in an article that was published by H and R. Block,
16:42
Speaker 2: people who did their own tax received a refund of
16:45
Speaker 2: two thousand, five hundred and seventy six dollars on average
16:48
Speaker 2: in twenty twenty two, while people who used a tax
16:52
Speaker 2: agent received an average of three thousand, five hundred.
16:55
Speaker 1: And fifty dollars. Wow.
16:57
Speaker 2: Yeah, and there's so many things that you probably wouldn't
17:00
Speaker 2: even realize that you could be claiming that, otherwise you'd
17:04
Speaker 2: just be like, I don't know. And also they can
17:06
Speaker 2: tell you what to do for the next year, like
17:08
Speaker 2: do you spend money on this? Well next year, make
17:10
Speaker 2: sure you save your receipts for that. And according to
17:13
Speaker 2: a guide published by Aditects Accounting Sydney, the cost of
17:17
Speaker 2: an accountant in Sydney for an individual tax return ranges
17:20
Speaker 2: between two hundred and fifty to five hundred dollars. So
17:24
Speaker 2: using this example, even if you paid five hundred dollars,
17:28
Speaker 2: you would still get nine hundred and seventy four dollars
17:30
Speaker 2: more using a tax agent than you would have if
17:33
Speaker 2: you did it on your own, So of course there
17:36
Speaker 2: is an upfront cost if you use an accountant, but
17:40
Speaker 2: I do think that a lot of the time you
17:42
Speaker 2: get your money back with a larger deduction and also
17:45
Speaker 2: knowing things that are being done properly.
17:47
Speaker 1: When I was twenty and they would do it, like
17:50
Speaker 1: from my salary at like our old job and stuff,
17:52
Speaker 1: I think I was like one hundred and fifty dollars. Yeah, yeah, like,
17:55
Speaker 1: and that is also tax deductible, so it's so worth
17:59
Speaker 1: it in my eyes.
18:01
Speaker 2: Yeah, exactly. I think mine was around the same. Sometimes
18:04
Speaker 2: it would be a little bit higher if I was
18:06
Speaker 2: doing more freelance.
18:07
Speaker 3: Work, so it's more work for them to do.
18:09
Speaker 2: But exactly, it comes down to what you value and
18:14
Speaker 2: how you want to spend your time and money.
18:16
Speaker 3: But I definitely think.
18:18
Speaker 2: That that it's worth it, and the peace of mind,
18:22
Speaker 2: honestly is what's priceless. Moving on to the fun stuff,
18:25
Speaker 2: what you can claim. The ATO has a whole guide
18:28
Speaker 2: on all of the different deductions that you can claim,
18:31
Speaker 2: and because it is so individual, we'll link that in
18:33
Speaker 2: the description so that you can check it out and
18:35
Speaker 2: potentially bring.
18:36
Speaker 4: It up with your accountant if you do get one.
18:38
Speaker 2: But there are two main deductions that we want to
18:41
Speaker 2: discuss in today's episode, the Hot Cheek deductions, the Hot
18:45
Speaker 2: Cheek deductions, and that is your handbag and work from
18:49
Speaker 2: home expenses. So let's start with how to claim your
18:53
Speaker 2: handbag at tax time. You can claim a work bag
18:57
Speaker 2: up to three hundred dollars that you've purchased in the
19:00
Speaker 2: last financial year.
19:02
Speaker 3: But there is a butt.
19:04
Speaker 1: There is a butt. There are a.
19:06
Speaker 2: Lot of terms and conditions, So the types of bags
19:09
Speaker 2: that you can claim include a briefcase, a laptop bag,
19:13
Speaker 2: a satchel luggage and a handbag.
19:17
Speaker 4: In limited circumstances.
19:20
Speaker 2: So to claim a deduction for your work bag, you
19:23
Speaker 2: must pay for it and use the bag or case
19:26
Speaker 2: to only carry items for work, and you also must
19:31
Speaker 2: have a record of the purchase and how you use
19:34
Speaker 2: the bag. So eligible items that you can carry in
19:37
Speaker 2: your work bag which you can claim as a deduction
19:41
Speaker 2: may include laptops, tablets, work papers, protective equipment, or diaries,
19:46
Speaker 2: whereas items including gym gear, food, a personal phone, tablet,
19:53
Speaker 2: or laptop are not items you need to carry and
19:57
Speaker 2: use for work, and therefore these are considered private or
20:00
Speaker 2: domestic items. So in the example on the ATO website
20:04
Speaker 2: that they gear. They talk about somebody having one handbag
20:08
Speaker 2: which they carry all their work things in, and then
20:10
Speaker 2: they have a separate bag which has their lunch and
20:14
Speaker 2: their gym gear and their personal phone in it, and
20:16
Speaker 2: that's how they can claim it. I am not entirely sure.
20:20
Speaker 2: Talk to your acount, talk to your accountant about that.
20:23
Speaker 2: But yeah, very interesting because I think that a lot
20:26
Speaker 2: of us get really excited about the prospect of, oh,
20:29
Speaker 2: I can claim my bag as.
20:31
Speaker 1: A I think they've developed that in the last year.
20:34
Speaker 1: I think it's a little bit stricter this year compared
20:37
Speaker 1: to previous years, but.
20:38
Speaker 4: Again I think that's why if you can, if you can,
20:41
Speaker 4: that's a go for it.
20:43
Speaker 2: Yeah, definitely, but I think it's good to know before
20:45
Speaker 2: you try and claim, like maybe your little designer handbag.
20:48
Speaker 1: Yeah literally, because no, jack were more no claims.
20:53
Speaker 2: Probably not worth the time and yeah I do all
20:57
Speaker 2: the fine, Yeah, the time or the fun.
21:01
Speaker 1: Okay. Should we talk work from home expenses?
21:04
Speaker 2: Yes, because this is actually changing a little bit this
21:07
Speaker 2: financial year and according to an article published by the ABC,
21:11
Speaker 2: about four million Australians claimed expenses from working from home
21:15
Speaker 2: in the last financial year. Wow. So even though we've
21:18
Speaker 2: moved out of like lockdown COVID times.
21:20
Speaker 1: I don't say that word anymore.
21:21
Speaker 2: Yeah, the period that shall not be named, A lot
21:24
Speaker 2: of us are still claiming work from home expenses, so
21:26
Speaker 2: I think a lot of you.
21:27
Speaker 3: Chicks will get some use out of this.
21:29
Speaker 2: But work from home expenses that you can claim include
21:32
Speaker 2: things like your internet and data, mobile and home phone,
21:36
Speaker 2: electricity and gas, stationery, and computer consumables like printer, ink
21:41
Speaker 2: and paper.
21:42
Speaker 4: And there are two key ways that.
21:44
Speaker 2: You can claim your work from home expenses, one of
21:47
Speaker 2: which is slightly changing this tax time. So there is
21:52
Speaker 2: the fixed rate method, which I think a lot of
21:55
Speaker 2: people use because it's kind of like the easier method
22:00
Speaker 2: or the less involved method. So with the fixed rate method,
22:04
Speaker 2: you can claim a fixed rate of seventy cents per
22:06
Speaker 2: hour you worked from home during the last year. This
22:09
Speaker 2: is a change from the last two financial years which
22:13
Speaker 2: was sixty seven cents per work hour. And then there
22:17
Speaker 2: is the actual cost method, And using this method, you
22:22
Speaker 2: work out your deductions by calculating the actual additional expenses
22:26
Speaker 2: you incur when working from home. So this is the
22:30
Speaker 2: one that is in a lot you have to go
22:32
Speaker 2: into a lot of death and this includes expenses you
22:36
Speaker 2: incur for the decline in the value of depreciating assets
22:39
Speaker 2: for example, home office furniture, phones, computers, and laptops, also
22:43
Speaker 2: electricity and gas, home and mobile phone, data and internet
22:46
Speaker 2: expenses stationary, and also cleaning.
22:49
Speaker 3: Your dedicated home office space.
22:52
Speaker 2: Yeah, but you can only claim the work related portion
22:56
Speaker 2: as a deduction, so you need to figure out how
22:59
Speaker 2: much time you're actually using these things for strictly work
23:05
Speaker 2: related purposes. And you also can't claim additional running expenses
23:12
Speaker 2: if other members of your household are in the same
23:15
Speaker 2: room as you as you're.
23:16
Speaker 3: Doing your work.
23:18
Speaker 1: Oh so if you're like work desk is in the
23:21
Speaker 1: living room and your housemate's watching TV, Yeah, you can't
23:24
Speaker 1: claim that. Yeah that's crazy.
23:27
Speaker 3: Yeah.
23:28
Speaker 4: Yeah.
23:28
Speaker 2: So the actual cost method is more hands on and
23:32
Speaker 2: will require a record that shows how many hours you
23:34
Speaker 2: work from home and the additional running expenses you incurred,
23:38
Speaker 2: such as bills or receipts, and also how you calculated
23:42
Speaker 2: that cost. Can't accountant and everything we've discussed today as
23:48
Speaker 2: well is a general overview.
23:51
Speaker 4: There are lots of terms begin show that come with
23:54
Speaker 4: these things.
23:55
Speaker 2: So this is the point of this part of the
23:58
Speaker 2: episode is to nudge you in the right direction to
24:00
Speaker 2: look into it, yeah, which is why we have the
24:02
Speaker 2: links in the description for you to check it out
24:03
Speaker 2: and do your own research. Our next Rich Girl error
24:07
Speaker 2: tip is to take advantage of end of financial year
24:09
Speaker 2: sales and the remaining sale events for the rest of
24:12
Speaker 2: the year. Yes, and we did share a breakdown of
24:16
Speaker 2: the mid year and nterfinancial year sales in a recent
24:20
Speaker 2: episode of News Arrivals, which we've linked in the description
24:23
Speaker 2: if you miss that. But midyear and and a financial
24:26
Speaker 2: year sales is a great time to invest in any
24:30
Speaker 2: pieces as retailers have discounted items on a lot of
24:34
Speaker 2: stock as they're trying to make money or clear out
24:37
Speaker 2: space for.
24:38
Speaker 3: New stock in the new financial year.
24:39
Speaker 1: Yeah, and while you're shopping end of financially sales or
24:43
Speaker 1: any of the remaining sale events for the rest of
24:44
Speaker 1: the year, I came across this thing called the three
24:46
Speaker 1: to three three rule for shopping, and it's how to
24:52
Speaker 1: figure out whether you will wear the item. And you
24:54
Speaker 1: ask the question will I wear it three ways? Will
24:58
Speaker 1: I wear it three occasions? And will I wear it
25:00
Speaker 1: three months from now? And it helps you kind of
25:02
Speaker 1: see whether you can get that cost per where out
25:05
Speaker 1: of the item, but as part of your medium money reset.
25:09
Speaker 1: I also saw this TikTok come up, and it was like,
25:12
Speaker 1: what's like the one budgeting hack that changed your life? Like,
25:16
Speaker 1: I'm not talking about X or X. I'm being like
25:18
Speaker 1: the thing that literally is so unhinged, but you're like,
25:21
Speaker 1: oh my god, I actually am culle it. Yeah, And
25:25
Speaker 1: one of the comments had thousands and thousands of likes
25:28
Speaker 1: and it was a Swedish death clean This is crazy.
25:33
Speaker 4: Why does that sound so heavy metal?
25:36
Speaker 1: I know it is very it's a bit dark, but
25:38
Speaker 1: I was like, okay, so death cleaning is not about
25:42
Speaker 1: dusting or mopping up. It's a permanent form of organization
25:46
Speaker 1: that makes your everyday life run more smoothly, and you
25:49
Speaker 1: may even find the process it's self enjoyable. It's a
25:52
Speaker 1: delight to go through things and remember their worth and
25:55
Speaker 1: it's kind of morbid, but it's essentially decluttering your life
25:59
Speaker 1: with the idea of who would want this if I
26:01
Speaker 1: was no longer hear. So, like when you're going through
26:05
Speaker 1: your beauty cabinet and you have like seven different foundations,
26:09
Speaker 1: you're like, someone's gonna have to deal with these seven foundations.
26:13
Speaker 1: If I don't yeah, literally like it's hectic. Yeah, but
26:18
Speaker 1: like you kind of realize, oh, maybe I don't need
26:21
Speaker 1: this stuff. But yeah, that's like the concept of a
26:24
Speaker 1: Swedish death clean is when you're decluttering, you kind of think,
26:27
Speaker 1: is anyone going to want this?
26:29
Speaker 4: Yeah?
26:30
Speaker 1: Slash, people are gonna have to deal with this, And
26:32
Speaker 1: I'm like, well.
26:33
Speaker 2: I think that's good perspective because the people are either
26:37
Speaker 2: whoever you leave behind or you. You're gonna have to
26:40
Speaker 2: deal with it literally, so may as well deal with
26:43
Speaker 2: it now.
26:44
Speaker 1: And finally, for our rich girl er Teops, I wanted
26:48
Speaker 1: to read a post that I saw from How I
26:51
Speaker 1: Fund This because I think it was the perfect example
26:55
Speaker 1: on how to identify the everyday moments that are really remarkable,
27:00
Speaker 1: especially with your money. And it's basically the post was
27:04
Speaker 1: financial privileges that aren't little. Adding extra items to your
27:08
Speaker 1: grocery shop, ordering a takeaway when you've had a bad day,
27:12
Speaker 1: saying yes to events, having family help with childcare, being
27:18
Speaker 1: able to save money in this climate, leaving situations that
27:22
Speaker 1: no longer serve you, room in the budget for non essentials,
27:26
Speaker 1: and not having to choose the cheapest item on the menu. Now,
27:30
Speaker 1: this post received forty six point four thousand likes, which
27:35
Speaker 1: to me tells me people needed to hear that their
27:38
Speaker 1: finances weren't as bad as what they thought and what
27:41
Speaker 1: they were telling themselves. It's very easy to hear statistics
27:46
Speaker 1: about how much you're supposed to have saved and or
27:49
Speaker 1: like even just the goss of cheese. You know, what
27:52
Speaker 1: the fuck is up that they know? We'll hash that
27:55
Speaker 1: out another app.
27:56
Speaker 3: But there are dooplup trees.
27:57
Speaker 1: Yeah, but there are so many a wins that we
28:00
Speaker 1: overlook because they're outshone by these big milestones that majority
28:06
Speaker 1: of people, as shown by this post I think probably
28:11
Speaker 1: don't have, and that more people need to celebrate the
28:14
Speaker 1: small wins and the little privileges that aren't so little,
28:18
Speaker 1: especially with their finances.
28:20
Speaker 4: Yeah.
28:20
Speaker 2: I think that's so important, especially with the comparison trap
28:23
Speaker 2: that we find ourselves in on social media and seeing
28:26
Speaker 2: people celebrate these milestones or the clothes that they wear
28:29
Speaker 2: or the designer labels that they have, and it's a
28:32
Speaker 2: reminder that like, you're not falling behind, you're actually doing great.
28:36
Speaker 1: Yeah, and that well that is a rap. Chicky Chicks,
28:44
Speaker 1: thank you to m Ika made for making this episode
28:46
Speaker 1: of Two Preach Chicks happen. We love being in your
28:48
Speaker 1: ear holes. Magics Bad