Latest / She's On The Money / FRIDAY DRINKS: Interest Rates, Inflation &....Horses? Oh my!

Transcript

FRIDAY DRINKS: Interest Rates, Inflation &....Horses? Oh my! · 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: for Millennials who want financial freedom. Welcome back to another
• 0:52
  Speaker 1: one of our Friday Drinks episodes where I'm getting really
• 0:55
  Speaker 1: sick of doing this intro, so I'm going to make
• 0:57
  Speaker 1: Georgia organize another one for next week. But as you
• 1:01
  Speaker 1: guys know, this episode is all about celebrating you and
• 1:04
  Speaker 1: getting to reflect on the week that was, talking about
• 1:07
  Speaker 1: our community sharing their money wins and sometimes a few
• 1:09
  Speaker 1: of their confessions, and we adore it, honestly, Jess, George
• 1:13
  Speaker 1: and I. Even though George this week is remote because
• 1:16
  Speaker 1: she forgot or a recording and now is in a wardrobe.
• 1:19
  Speaker 1: We always talk about you, guys, and your successes and
• 1:21
  Speaker 1: sometimes your little confessions regardless of where we are. Let's
• 1:25
  Speaker 1: start with you, miss jessic Garci. How was your week?
• 1:28
  Speaker 3: It was good, spopping along living the dream.
• 1:30
  Speaker 1: She brought a cricket into the She's on the Money
• 1:33
  Speaker 1: office today.
• 1:34
  Speaker 3: Yeah, we're making stickers.
• 1:35
  Speaker 1: It's fine, Yeah, okay, loving it and a Lisa, our producer,
• 1:39
  Speaker 1: and I learned what a cricket was. We also learned
• 1:41
  Speaker 1: what a weeding tool was and what smart vinyl is.
• 1:45
  Speaker 1: It's very cool. We will boast a photo, but in more.
• 1:49
  Speaker 1: She's on the Money news, jess What happened this week
• 1:52
  Speaker 1: on our money diar? This week's diarist had three kids
• 1:55
  Speaker 1: and three jobs. Just for that nice little bit of symmetry.
• 1:58
  Speaker 1: And it's just working her little too, trying to such
• 2:01
  Speaker 1: a hustler, Yeah, trying to get towards the financial freedom
• 2:03
  Speaker 1: she wants, which I think is incredible. She really wants
• 2:05
  Speaker 1: to build up on her assets, which we love to
• 2:08
  Speaker 1: see it. And yeah, it was just really interesting to
• 2:11
  Speaker 1: talk to her about how she kind of balances, you know,
• 2:14
  Speaker 1: the financial desires that she has and the goals that
• 2:17
  Speaker 1: she has against the ies challenges of working in so
• 2:21
  Speaker 1: many different places and obviously the time that that takes
• 2:24
  Speaker 1: along with having three kids, who I believe were all
• 2:27
  Speaker 1: under the age of three. Yeah, it was insane. I
• 2:29
  Speaker 1: was like, excuse me, what are you a supermum?
• 2:32
  Speaker 3: Like?
• 2:32
  Speaker 1: How absolutely wild? Here. I am being like, oh my gosh,
• 2:35
  Speaker 1: there's no way I'm ever going to find time to
• 2:37
  Speaker 1: have a baby, and she's like, what do you mean,
• 2:39
  Speaker 1: YaST time, hips, time, hips, jobs, hips of everything. I
• 2:43
  Speaker 1: was honestly in awe, But I think that money Diary
• 2:45
  Speaker 1: was really nice because I feel like we haven't had
• 2:47
  Speaker 1: that many mums on the pod. I mean, we've had
• 2:50
  Speaker 1: lots of young women who are doing really cool things,
• 2:52
  Speaker 1: but hearing from a mum's perspective how she was balancing
• 2:55
  Speaker 1: all of that and still putting herself first, I was
• 2:58
  Speaker 1: very impressed. But you know what else impresses me? Jess investing,
• 3:01
  Speaker 1: which is what we spoke about on this week's Wednesday episode,
• 3:04
  Speaker 1: Georgia King break it down for us.
• 3:06
  Speaker 2: Hello, I thought you were going to segue that Vie
• 3:09
  Speaker 2: by saying, you know what else impresses me? George's set
• 3:11
  Speaker 2: up this week, I'm coming at you from Ed's wardrobe
• 3:16
  Speaker 2: down at Blake Gowery, so apologies for the audio quality.
• 3:19
  Speaker 2: It is what it is. I'm a potato.
• 3:21
  Speaker 3: Definitely check out our Instagram because we will put up
• 3:23
  Speaker 3: a photo so you can see exactly what we see.
• 3:25
  Speaker 3: The first option Georgia gave us was tuning in with
• 3:28
  Speaker 3: a karaoke microphone, so it's only going up from here.
• 3:32
  Speaker 2: It's still an option, ladies, still an option. So on
• 3:36
  Speaker 2: Wednesday's show, guys, we discussed varying types of investing platforms,
• 3:41
  Speaker 2: and we spoke about micro investing platforms versus robo advice
• 3:44
  Speaker 2: versus share training platforms, and it was a really interesting chat.
• 3:48
  Speaker 2: I mean it was between the two of you, but
• 3:50
  Speaker 2: I loved listening because it was really interesting for anyone
• 3:53
  Speaker 2: who's thinking about investing slash, for anyone who has maybe
• 3:57
  Speaker 2: started micro investing but they're thinking about taking that next step,
• 4:00
  Speaker 2: if you will. So yeah, it was a really good,
• 4:03
  Speaker 2: good listen, And if you are on the fence about investing,
• 4:06
  Speaker 2: or you are thinking about graduating to something a little
• 4:09
  Speaker 2: bit more serious, then I'd definitely give it a listen.
• 4:13
  Speaker 3: I thought it was really interesting as well because we
• 4:16
  Speaker 3: kind of phrased it v in terms of primary school,
• 4:19
  Speaker 3: high school, and university and the idea that you can
• 4:21
  Speaker 3: kind of graduate up if you want to. But also
• 4:24
  Speaker 3: we chatted a lot about the fact that different platforms
• 4:26
  Speaker 3: offer people different benefits, and you know, depending on what
• 4:30
  Speaker 3: you want, you might just stay with one platform forever.
• 4:32
  Speaker 3: You don't necessarily have to graduate all the way through
• 4:35
  Speaker 3: to the point we have a financial advisor managing a
• 4:37
  Speaker 3: multi billion dollar portfolio for some people, so love to
• 4:40
  Speaker 3: be in that position. Oh yeah, me too, manifesting that
• 4:42
  Speaker 3: for all of us. But you know, if something really
• 4:45
  Speaker 3: services your needs, it doesn't necessarily mean that just because
• 4:48
  Speaker 3: it's not the furthest along or the most advanced, that
• 4:51
  Speaker 3: it's a bad thing. So I think it was really
• 4:53
  Speaker 3: cool to chat about what these different platforms offer so
• 4:56
  Speaker 3: people can make an informed decision about what might work
• 4:58
  Speaker 3: for them and they're wance and their needs.
• 5:00
  Speaker 1: Yeah, and I find it really interesting as well, because
• 5:02
  Speaker 1: obviously we get asked a lot of questions about this,
• 5:04
  Speaker 1: and we're not able to answer what is the best
• 5:07
  Speaker 1: because that doesn't exist. There's no best one platform. There's
• 5:11
  Speaker 1: just the best for your personal situation, and we don't
• 5:14
  Speaker 1: know what your personal situation is, unfortunately, because that would
• 5:17
  Speaker 1: make our lives much easier. But we see all the
• 5:19
  Speaker 1: time on money Diaries money dorists using a whole plethora
• 5:23
  Speaker 1: of platforms like they might be using Raise and Spaceship.
• 5:26
  Speaker 1: And then recently, Jess, we interviewed a money dirist who
• 5:28
  Speaker 1: was like, Yeah, I've got Rais and I've got Spaceship,
• 5:30
  Speaker 1: and I'm currently on Shares's and i also have self
• 5:32
  Speaker 1: Wealth and I was like, great, get it. Like we
• 5:34
  Speaker 1: use them all in different ways. So I think understanding
• 5:38
  Speaker 1: the difference between each level, or you know, the difference
• 5:41
  Speaker 1: between micro investing and share trading and what robo advice
• 5:44
  Speaker 1: actually is, is really powerful and helps you pick the
• 5:47
  Speaker 1: right one for your situation because too often we just
• 5:49
  Speaker 1: don't know what we don't know, Like, how do you
• 5:51
  Speaker 1: know what these platforms actually do?
• 5:54
  Speaker 3: I'm going maga spreadsheet. We love a spreadsheet. Put it
• 5:56
  Speaker 3: in a spreadsheet. It's very common phrase now of us.
• 5:58
  Speaker 1: I feel like it is because that then what we do,
• 6:00
  Speaker 1: and then we fawn over the spreadsheet instead of actually
• 6:03
  Speaker 1: doing the work. We probably should work on that. But George,
• 6:07
  Speaker 1: take us through what you think are the hottest takes
• 6:09
  Speaker 1: from our Money Wins and Confessions thread.
• 6:11
  Speaker 3: This week we.
• 6:12
  Speaker 2: Had some really good ones, guys, I think in last
• 6:15
  Speaker 2: week's show, maybe we said we were going to do
• 6:17
  Speaker 2: all confessions.
• 6:18
  Speaker 1: Yeah, I said I wanted to hear confessions.
• 6:19
  Speaker 2: So I threw that in the bin and I'm doing
• 6:22
  Speaker 2: wins because they were, honestly, so many good ones.
• 6:25
  Speaker 3: There weren't many.
• 6:26
  Speaker 1: Confessions, Okay. Well, I was like, I want to feel heard.
• 6:30
  Speaker 1: I want some relatable content. I've been a bit naughty
• 6:33
  Speaker 1: with money recently. I want to hear some confessions. And
• 6:35
  Speaker 1: You're like, straight in the bin with that.
• 6:37
  Speaker 3: So George, make a confessions thread separately.
• 6:39
  Speaker 1: Yeah, I don't need you. We're going to do it
• 6:41
  Speaker 1: on our own. Tell us though, what were some of
• 6:43
  Speaker 1: the wins this week?
• 6:44
  Speaker 2: All righty guys. So the first win it comes from Brian.
• 6:47
  Speaker 2: She said, I just moved to the Sunny Coast from Townsville.
• 6:50
  Speaker 2: I'm four months pregnant and I've just landed a contract
• 6:53
  Speaker 2: position which will take me right up to when I
• 6:56
  Speaker 2: need to stop working. The new workplace knows i'm pregnant,
• 6:59
  Speaker 2: so everything is out in the open and it will
• 7:01
  Speaker 2: qualify me for pay on your brand.
• 7:04
  Speaker 1: Very money, win.
• 7:06
  Speaker 2: Money win. The next one comes from Demirah. After reading
• 7:10
  Speaker 2: the first three chapters of She's on the money. I
• 7:12
  Speaker 2: realized I had no idea of the interest rates attached
• 7:16
  Speaker 2: to my savers accounts. I've called my bank to change
• 7:19
  Speaker 2: my emergency fund and short term savings from a flexi
• 7:22
  Speaker 2: saver zero point four or five percent perannum to a
• 7:25
  Speaker 2: goal saver account that's one point one five percent perannum,
• 7:28
  Speaker 2: and then I'm getting.
• 7:29
  Speaker 3: For free money.
• 7:30
  Speaker 1: I love this, Oh my gosh. And the fact that
• 7:32
  Speaker 1: she's already doing stuff after only reading three chapters of
• 7:36
  Speaker 1: my book Guys clearly the best book ever exactly.
• 7:39
  Speaker 2: I thought you'd like that one.
• 7:40
  Speaker 1: I've got a few tickets. The next one.
• 7:41
  Speaker 2: Comes from Chelsea. I became a single mum of three
• 7:44
  Speaker 2: last year. I'd set a savings goal to reach by
• 7:47
  Speaker 2: the end of the financial year to finally give me
• 7:49
  Speaker 2: peace of mind for emergencies, and I finally reached it
• 7:52
  Speaker 2: last week.
• 7:53
  Speaker 1: Oh my gosh. Yes, how good is that? Also, how
• 7:57
  Speaker 1: good is it that that's so quick after becoming angle
• 8:00
  Speaker 1: mum of three to be able to get to that goal. Like, Yes,
• 8:04
  Speaker 1: I love this.
• 8:05
  Speaker 2: It was very good and it was really cool to
• 8:07
  Speaker 2: see everyone in the community getting around that post as well.
• 8:10
  Speaker 2: It was one of the most popular in the threads
• 8:12
  Speaker 2: so well done to you, Chelsea, a massive achievement. The
• 8:16
  Speaker 2: next win comes from Campbell. I was offered a new
• 8:19
  Speaker 2: job with a forty thousand dollars salary increase, and if
• 8:22
  Speaker 2: I pass my probation, they will give me a company
• 8:25
  Speaker 2: car and a fuel card forty.
• 8:28
  Speaker 1: K I'm in the market for a new job now, Camber,
• 8:31
  Speaker 1: pass on the deets of your employer, because if your
• 8:33
  Speaker 1: probation doesn't work out, maybe I've got a hot shot
• 8:37
  Speaker 1: our jokes. No one would hire me.
• 8:39
  Speaker 3: I'd fire me.
• 8:40
  Speaker 1: Yess like, if I was an employee here, I would
• 8:43
  Speaker 1: have already been fired.
• 8:44
  Speaker 3: There's a reason she's the boss an employee.
• 8:47
  Speaker 1: See you buy.
• 8:49
  Speaker 2: The next win comes from Charlotte. I went to an
• 8:52
  Speaker 2: island mysterious with some friends for the weekend. I used
• 8:55
  Speaker 2: public transport and paid five dollars versus the fifty dollars
• 8:59
  Speaker 2: my friends spent the taxi. I only turned up maybe
• 9:02
  Speaker 2: ten minutes later than they did, and I'm so proud
• 9:04
  Speaker 2: of myself.
• 9:05
  Speaker 1: On your Charlotte, I'm impressed. I'm glad you had a money.
• 9:08
  Speaker 1: I don't understand any of that. How do you get
• 9:11
  Speaker 1: to an island using a taxi? I'm just there's a
• 9:16
  Speaker 1: lot of context missing here. Where's the way that I
• 9:18
  Speaker 1: read it?
• 9:19
  Speaker 2: You're fine, and Charlotte, don't let me get you down.
• 9:22
  Speaker 1: Where's this island? I don't know? Did you go to
• 9:26
  Speaker 1: Tazzy for the weekend?
• 9:27
  Speaker 3: Who knows?
• 9:28
  Speaker 2: Philip Island? Not sure? Okay, guys. The final win of
• 9:31
  Speaker 2: the day comes from Tammy money win. My partner and
• 9:34
  Speaker 2: I bought a house at the beginning of this year.
• 9:37
  Speaker 2: He earns about three times as much as what I do,
• 9:40
  Speaker 2: so we've just recently rediscussed the split of our mortgage
• 9:43
  Speaker 2: repayments and bills and expenses. My ex would have expected
• 9:47
  Speaker 2: me to pay half, no matter the difference in our incomes,
• 9:50
  Speaker 2: but my partner now is so open to discussing finances
• 9:53
  Speaker 2: and working as a team so that I'm not struggling
• 9:56
  Speaker 2: on my smaller wage equity.
• 10:01
  Speaker 1: Yay, Oh my gosh, that's a very good place to
• 10:04
  Speaker 1: leave it. I feel like those wins are very good.
• 10:06
  Speaker 1: Let's go to a quick break and when we get back,
• 10:08
  Speaker 1: we've got a listener question. We've got some content to
• 10:10
  Speaker 1: share with you, and George's going to tell you a
• 10:12
  Speaker 1: little bit more about her cupboard den.
• 10:19
  Speaker 3: All right, girls, last week it was announced that Australia's
• 10:22
  Speaker 3: inflation rate has risen to five point one percent over
• 10:24
  Speaker 3: the past twelve months, which is well above the target
• 10:28
  Speaker 3: and people have probably already seen that at the petrol pump,
• 10:31
  Speaker 3: at the grocery store. It basically just means it's more
• 10:34
  Speaker 3: expensive to be alive right now, which sucks. But a
• 10:37
  Speaker 3: lot of people are wondering what this means specifically for
• 10:40
  Speaker 3: their help debt, because help is obviously an indexed cost,
• 10:44
  Speaker 3: but with the inflation rate rising so rapidly, they're concerned
• 10:47
  Speaker 3: that HEX may not still be the cheapest debt you'll
• 10:50
  Speaker 3: ever have. So there's been a lot of questions in
• 10:52
  Speaker 3: the Facebook group saying, oh my gosh, I pay off
• 10:54
  Speaker 3: all of my help debt right now. Someone posted and
• 10:56
  Speaker 3: said it was going to be more expensive than their
• 10:58
  Speaker 3: mortgage interest rates. There seems to be a whole lot
• 11:01
  Speaker 3: of kerfuffle the So I thought I'd come straight to
• 11:03
  Speaker 3: the horse's mouth.
• 11:04
  Speaker 1: I love that you think I'm the horse's mouth one.
• 11:05
  Speaker 1: I'm not a horse too. I have absolutely nothing to
• 11:08
  Speaker 1: do with the RBA. I'm just a financial advisor who
• 11:10
  Speaker 1: interprets things on the internet in her own very unique way.
• 11:13
  Speaker 3: There are other parts of a horse that I could
• 11:15
  Speaker 3: arguably call you that a much less so rude.
• 11:21
  Speaker 1: Have I done something this week?
• 11:25
  Speaker 3: Is that not a saying? Would you like to go
• 11:26
  Speaker 3: to counseling like a horse's ass? That's a saying? Is
• 11:30
  Speaker 3: it not?
• 11:30
  Speaker 1: Okay? Well I didn't I didn't think that when you
• 11:33
  Speaker 1: called me that. I was just trying to be fun
• 11:35
  Speaker 1: and funny. We're trying to edit a show here and
• 11:39
  Speaker 1: you're just calling me name.
• 11:40
  Speaker 3: That's fine, Sorry, that's fine, that's fine, take it off, fine,
• 11:43
  Speaker 3: all right.
• 11:44
  Speaker 1: So it's definitely not straight from the horse's mouth. I
• 11:46
  Speaker 1: actually identify it as a unicorn. But if we want
• 11:50
  Speaker 1: to talk about it, HEX at the end of the
• 11:52
  Speaker 1: day doesn't have an interest rate on it, but it
• 11:56
  Speaker 1: is indexed by CPI each and every single year. So
• 12:00
  Speaker 1: CBI is a consumer price index, and that's how much
• 12:03
  Speaker 1: the cost of living increases each and every single year.
• 12:05
  Speaker 1: And we know if you've been listening to the news,
• 12:07
  Speaker 1: it has been everywhere because people are honestly scared, and
• 12:10
  Speaker 1: they should be because it is really overwhelming and it
• 12:13
  Speaker 1: can be really detrimental that we have had the highest
• 12:16
  Speaker 1: increase in indexation since two thousand and one.
• 12:20
  Speaker 3: I was going to say in ten years, but that's
• 12:21
  Speaker 3: in twenty years. Oh my lod it is.
• 12:23
  Speaker 1: A long time. But since two thousand and one, and
• 12:26
  Speaker 1: that is five point one percent since January this year
• 12:30
  Speaker 1: till March, so that is actually quite overwhelming. Hopefully it
• 12:33
  Speaker 1: doesn't continue to increase, but economics professionals are saying that
• 12:36
  Speaker 1: it is very set to increase because the cost of
• 12:39
  Speaker 1: living is increasing and they're expecting you to be paying
• 12:41
  Speaker 1: you a dollar more for your coffees in the morning,
• 12:44
  Speaker 1: which all makes sense, and it all comes back to
• 12:46
  Speaker 1: everything we've been through over the last few years and
• 12:49
  Speaker 1: distribution of product, and we could go on and on,
• 12:51
  Speaker 1: but at the end of the day, helpedebt or hextet
• 12:54
  Speaker 1: as somebody who's a little bit of an older millennial
• 12:56
  Speaker 1: refers to it as is indexed in that way. I'd
• 13:00
  Speaker 1: be interested to see how the government actually applies this though,
• 13:04
  Speaker 1: because so many people are going to be bucking at
• 13:07
  Speaker 1: the bit. Is that a good horse analogy? Thank you,
• 13:10
  Speaker 1: thank you, because I'd like to see how much they
• 13:13
  Speaker 1: pass on of that. So a lot of the time
• 13:16
  Speaker 1: they just apply it automatically and you accept it because
• 13:18
  Speaker 1: it might be like one point nine percent or two
• 13:20
  Speaker 1: percent and you just go whatever, like that's flying CPI,
• 13:23
  Speaker 1: no worries. But now it's five point one percent, people like, well,
• 13:27
  Speaker 1: it makes no sense. My strategy was to not pay
• 13:29
  Speaker 1: down HEX, and now I'm going to have to because
• 13:32
  Speaker 1: that five point one percent right now, if that gets
• 13:34
  Speaker 1: applied to my help debt, Jess, that's going to be
• 13:37
  Speaker 1: higher than my mortgage repayments in terms of like cost
• 13:40
  Speaker 1: of how much it's costing me. And I know that
• 13:42
  Speaker 1: we say it has no interest, but at the end
• 13:45
  Speaker 1: of the day, if that's how much my debt is
• 13:46
  Speaker 1: going to increase, even though it is in line with CPI,
• 13:49
  Speaker 1: that's still an increase I'm not willing to swallow. So
• 13:52
  Speaker 1: I don't know how other people are feeling about it,
• 13:54
  Speaker 1: but we will have to wait and see, because if
• 13:57
  Speaker 1: we look at historicals, they have always increase it by CPI. However,
• 14:02
  Speaker 1: I do feel as though the government, especially given its
• 14:06
  Speaker 1: in an election year and we're about to go into
• 14:08
  Speaker 1: an election, are going to announce something to say that
• 14:11
  Speaker 1: potentially there'll be a cap on what gets passed on
• 14:14
  Speaker 1: to HEX.
• 14:15
  Speaker 3: Does that make sense, Yeah, it sure does. And so
• 14:17
  Speaker 3: for a little bit of context, indexation for the twenty
• 14:20
  Speaker 3: twenty one year for HEX help loans annually with zero
• 14:24
  Speaker 3: point six percent, which was the lowest it had been
• 14:27
  Speaker 3: in a very long time. It looks like it's averaging,
• 14:29
  Speaker 3: you know, kind of two and a half to three
• 14:31
  Speaker 3: percent over the last couple of decades. Yep.
• 14:34
  Speaker 1: Literally, it is Australia's worst inflation spike since two thousand
• 14:37
  Speaker 1: and one jes which is when GST was introduced. That
• 14:41
  Speaker 1: makes sense because obviously the costs of goods and services increased.
• 14:45
  Speaker 1: Albeit from my perspective, GST is a goods and services
• 14:49
  Speaker 1: tax which you guys would see, and if anybody has
• 14:51
  Speaker 1: a business that earns over seventy five thousand dollars per annum,
• 14:55
  Speaker 1: that is applied to the product that they sell or
• 14:57
  Speaker 1: the service that they render. So it makes sense because
• 15:00
  Speaker 1: it's obviously costing more. But from B to B, so
• 15:03
  Speaker 1: business to business, if I'm charging HEX, I'm also receiving
• 15:06
  Speaker 1: HEX and you pay that and it's kind of like
• 15:08
  Speaker 1: a left pocket, right pocket. But if you're a general
• 15:11
  Speaker 1: consumer and you're now paying GST on a product, you're
• 15:15
  Speaker 1: not claiming GST each in every single year. You're not
• 15:17
  Speaker 1: a business owner. So in that year products basically cost
• 15:21
  Speaker 1: you ten percent more if the business didn't account for
• 15:24
  Speaker 1: that increase in price.
• 15:25
  Speaker 3: It's kind of like the same concept right where we say,
• 15:27
  Speaker 3: you know, if the cost of living is increasing and
• 15:29
  Speaker 3: your salary isn't, you're losing money effectively. Yeah, so it's
• 15:32
  Speaker 3: the same kind of concept. So it'll be announced on
• 15:35
  Speaker 3: the first of June. The indexation and the estimates or
• 15:39
  Speaker 3: the calculations or the projections or whatever you want to
• 15:41
  Speaker 3: call it, that someone who is a lots better than
• 15:43
  Speaker 3: me has put together are predicting that it will be
• 15:45
  Speaker 3: at around three point nine percent, which is obviously a
• 15:48
  Speaker 3: huge jump, and I can totally see why people are
• 15:51
  Speaker 3: freaking out if that's the case. And if it does
• 15:53
  Speaker 3: jump so significantly, obviously we cannot provide advice, but would
• 15:57
  Speaker 3: people need to be reconsidering their strategy jeez, when it
• 16:00
  Speaker 3: comes to help debt if it does go up so high.
• 16:03
  Speaker 1: I would be, Yeah, I absolutely would be. And the
• 16:05
  Speaker 1: reason I would be is because I just don't want
• 16:07
  Speaker 1: more money looming over my head. In saying that, it
• 16:10
  Speaker 1: would be individual to each and every single person, and obviously,
• 16:13
  Speaker 1: like your situation, Jess, is very different to mine, and
• 16:15
  Speaker 1: whether I pay more or you pay more. It's completely different.
• 16:19
  Speaker 1: But I think the interesting thing there is how banks
• 16:22
  Speaker 1: might account for it. So hex and help debt is
• 16:26
  Speaker 1: one of the only debts that banks look on and
• 16:28
  Speaker 1: just go okay, like, Jess, it's not consumer debt, it's
• 16:30
  Speaker 1: not bad debt. You're not going to be, you know,
• 16:32
  Speaker 1: negatively impacted for this, but it will decrease your serviceability
• 16:37
  Speaker 1: because what happens when you go to the bank is
• 16:40
  Speaker 1: they go, okay, Jess, like, let's sit you down, and
• 16:42
  Speaker 1: you've done this recently. We're obviously real creepy on your
• 16:45
  Speaker 1: property journey watching you.
• 16:46
  Speaker 3: From afar, but also lack not that far.
• 16:49
  Speaker 1: And what happens is you go to the bank and
• 16:50
  Speaker 1: you go, okay, hey, here's my income and here are
• 16:53
  Speaker 1: my expenses. And one of the expenses they take into
• 16:55
  Speaker 1: consideration is your help debt. And because you have to
• 16:58
  Speaker 1: repay that on your basis or you might be repaying
• 17:02
  Speaker 1: it monthly out of your annual salary, they just take
• 17:05
  Speaker 1: that into consideration as a cost. And obviously the more
• 17:07
  Speaker 1: costs you have, the less serviceable alone is. But they're
• 17:11
  Speaker 1: not penalizing you for having that, They're just taking it
• 17:14
  Speaker 1: into consideration into your cash flow. They're not going to go, oh, yes,
• 17:17
  Speaker 1: you have helped itb therefore you're less serviceable. They're actually
• 17:19
  Speaker 1: look at it and go, oh, yes, you have helped it.
• 17:21
  Speaker 1: That means that you know, maybe two hundred bucks a
• 17:23
  Speaker 1: month is going towards paying that off. That means we're
• 17:25
  Speaker 1: not going to consider that two hundred bucks as money
• 17:28
  Speaker 1: that could pay off your mortgage, which makes sense when
• 17:30
  Speaker 1: you allocate it that way. And I think that in
• 17:32
  Speaker 1: our community a lot of people have said, oh my gosh, no,
• 17:35
  Speaker 1: they penalize you and will lend you less, and it's like, well,
• 17:38
  Speaker 1: yes they will, but they're doing that because at the
• 17:41
  Speaker 1: end of the day, you have a debt to repay,
• 17:43
  Speaker 1: and that's a pre tax debt that has to be paid.
• 17:45
  Speaker 1: It's not like a choice. But from my perspective, I'd
• 17:49
  Speaker 1: be interested to see how that changes, because if it
• 17:51
  Speaker 1: increases in cost, I e. It's going to cost me
• 17:55
  Speaker 1: five percent or something ridiculous for having my help debt
• 17:59
  Speaker 1: there and the moment, if I'm not paying off more
• 18:01
  Speaker 1: of that help debt, maybe in the future will prioritize that.
• 18:05
  Speaker 1: But at the same time I might not because it's
• 18:08
  Speaker 1: not consumer debt, and it doesn't have a timeline on
• 18:10
  Speaker 1: how fast you have to pay it back. And I
• 18:13
  Speaker 1: have a whole heap of assets that are performing above
• 18:15
  Speaker 1: and beyond that three to five percent, because we don't
• 18:17
  Speaker 1: know in stone what they might increase it by, but
• 18:19
  Speaker 1: we know that the last quarter has basically been five
• 18:22
  Speaker 1: point one percent. So let's be super dramatic for a
• 18:24
  Speaker 1: hot second. If it increases by that, a lot of
• 18:27
  Speaker 1: other things are going to follow suit. So it won't
• 18:31
  Speaker 1: just be your hextebt. It will be your home loans,
• 18:34
  Speaker 1: it will be your consumer debt loans, it will be borrowing,
• 18:38
  Speaker 1: it will be so many other things. And I think
• 18:40
  Speaker 1: that we would need to look at that in the
• 18:42
  Speaker 1: grand scheme of things as opposed to just looking at
• 18:44
  Speaker 1: it once, right, Because if it's going to cost you more,
• 18:47
  Speaker 1: but like you now have a higher mortgage, it doesn't
• 18:50
  Speaker 1: change your financial goals at all. You might go, well,
• 18:53
  Speaker 1: I am paying more for HEX, but if I pay
• 18:55
  Speaker 1: that off now, I'm not paying off my mortgage, or
• 18:57
  Speaker 1: I'm not putting money aside for that home too I
• 19:00
  Speaker 1: want to save for and therefore I'm pushing that goal
• 19:03
  Speaker 1: off into the future. And a lot of us just
• 19:05
  Speaker 1: want to achieve things now, so I'd be interested to
• 19:08
  Speaker 1: see how it falls. But the most important thing is
• 19:10
  Speaker 1: that you understand how that might impact you, and what
• 19:13
  Speaker 1: that might mean for you, and how that's going to
• 19:15
  Speaker 1: basically impact your cash flow, because at the end of
• 19:18
  Speaker 1: the day, that's what it's going to do, regardless of
• 19:20
  Speaker 1: what your financial goal is.
• 19:22
  Speaker 2: So off the back of that V, we know that
• 19:26
  Speaker 2: the higher your salary, the more HEX you have to
• 19:29
  Speaker 2: be paying back, right yeah, So then from their V,
• 19:33
  Speaker 2: if you do have that larger salary and your boss
• 19:35
  Speaker 2: is like, here's here's some extra for that cost of
• 19:38
  Speaker 2: living increase, then your HEX repayments will go up further,
• 19:42
  Speaker 2: right yes, But then if you're not receiving that and
• 19:45
  Speaker 2: you are on that lower income, then that's a complete
• 19:46
  Speaker 2: headache as well. So how do you manage this no
• 19:49
  Speaker 2: matter your situation? Like it's crazy?
• 19:53
  Speaker 1: So first, let's talk about the compulsory repayment threshold. So
• 19:56
  Speaker 1: you only have to start paying back your HEX step
• 19:59
  Speaker 1: this year in twenty twenty two if your income is
• 20:01
  Speaker 1: more than forty seven thousand and fourteen dollars, and next
• 20:05
  Speaker 1: year between the twenty twenty two to twenty twenty three
• 20:07
  Speaker 1: financial year that's going to increase to forty eight thousand,
• 20:10
  Speaker 1: three hundred and sixty one dollars. So if you're below
• 20:13
  Speaker 1: that threshold, you don't have to worry about hex just
• 20:16
  Speaker 1: yet because you won't be paying it back unless you're
• 20:18
  Speaker 1: doing voluntary contributions. But at the moment, the repayment rates
• 20:22
  Speaker 1: are banded, So for example, if you're earning between seventy
• 20:26
  Speaker 1: seven thousand and eighty one thousand ish, you're paying back
• 20:29
  Speaker 1: five percent, and if you're getting more income, you're going
• 20:32
  Speaker 1: to pay back more. But if the inflation rates end
• 20:35
  Speaker 1: up being applied directly to your help debt but you
• 20:39
  Speaker 1: don't get a salary increase, you won't be paying back more.
• 20:43
  Speaker 1: It'll just mean that the money you do pay back
• 20:45
  Speaker 1: is going less far. Does that make sense? So you'll
• 20:48
  Speaker 1: be paying back quote less percentage of what you owe,
• 20:52
  Speaker 1: but the same amount of money will be leaving your
• 20:54
  Speaker 1: account each and every single month. Does that make sense?
• 20:57
  Speaker 1: So it's going to mess a few people up as
• 21:00
  Speaker 1: especially if they get increases, but it won't be as
• 21:03
  Speaker 1: significant as I think a lot of people are making
• 21:05
  Speaker 1: it out to be. I think we get really stressed
• 21:07
  Speaker 1: about it because a lot of us go oh my gosh,
• 21:10
  Speaker 1: there's a help debt lauding over me. But at the
• 21:12
  Speaker 1: end of the day, it is quite manageable. And there
• 21:14
  Speaker 1: are actually percentage repayment rates that exist for bands, and
• 21:19
  Speaker 1: you can look them up on the Australian Government Study
• 21:21
  Speaker 1: Assist website and they outline it also that there's complete clarity.
• 21:25
  Speaker 1: But I think it's more about understanding what your compulsory
• 21:28
  Speaker 1: repayments are for your salary band and what that might
• 21:31
  Speaker 1: mean if you increase, because the problem I foresee is
• 21:34
  Speaker 1: if you increase sages you were on eighty one thousand
• 21:37
  Speaker 1: dollars and you were like, great, well I'm only paying
• 21:39
  Speaker 1: five percent, but you now are earning eighty two thousand dollars,
• 21:43
  Speaker 1: You're now paying five point five percent. I think understanding
• 21:46
  Speaker 1: those bands is going to be much more powerful than
• 21:49
  Speaker 1: worrying about how much percentage these CPI is going to
• 21:53
  Speaker 1: impact your actual HEXTEP. Does that make sense? It's actually
• 21:56
  Speaker 1: about what's going to leave your bank account and.
• 21:58
  Speaker 3: So to people maybe need to be looking at their
• 22:00
  Speaker 3: budgets now and going okay, potentially I'm going to be
• 22:03
  Speaker 3: taking home less because more is going to be allocated
• 22:05
  Speaker 3: to my hex repayment, So just being aware of maybe
• 22:08
  Speaker 3: where that wig or room is and if there are
• 22:10
  Speaker 3: things that should you need to cut back, you can
• 22:12
  Speaker 3: don't panic. We obviously can't really do too much until
• 22:15
  Speaker 3: those rates are officially announced, but I think it's really
• 22:18
  Speaker 3: great to see that so many people in our community
• 22:20
  Speaker 3: are aware of this change and how it's going to
• 22:22
  Speaker 3: impact them and impact their hex or their help. Sorry
• 22:24
  Speaker 3: I'm showing my age and knowing that that might have
• 22:27
  Speaker 3: a flow and effect to other parts of their cash
• 22:29
  Speaker 3: flow and their budget as well.
• 22:30
  Speaker 1: Absolutely agreed, And I think the other thing to take
• 22:33
  Speaker 1: into consideration is if you are struggling financially, you can
• 22:37
  Speaker 1: actually contact the ATO and have your compulsory repayments deferred
• 22:41
  Speaker 1: if you need that. So I don't want anyone to
• 22:44
  Speaker 1: feel like they are, you know, up up the proverbial
• 22:47
  Speaker 1: creek without a paddle. But from my perspective, it's really
• 22:51
  Speaker 1: important to just be super aware of your budget and
• 22:53
  Speaker 1: what that means and how that works, because talking to
• 22:56
  Speaker 1: the ATO is going to be arguably a bit more
• 22:58
  Speaker 1: powerful and pretend deferring a payment might actually take a
• 23:02
  Speaker 1: little bit of pressure off. So I think it's important
• 23:05
  Speaker 1: that you guys actually understand your rights and what you
• 23:07
  Speaker 1: can do, and if you're really stressed and overwhelmed, you
• 23:11
  Speaker 1: can always reach out for help.
• 23:12
  Speaker 2: Super convenient. Here, ladies, that this whole chat has been
• 23:15
  Speaker 2: about inflation, because that ties perfectly to this week's listener question.
• 23:20
  Speaker 1: Don't spoil it. I'm going to intro it this week
• 23:22
  Speaker 1: because gee, you're in a cupboard and your audio equality
• 23:25
  Speaker 1: is absolutely terrible. It's literally like she's in a cupboard
• 23:28
  Speaker 1: or something, Jess. But it is Friday, guys, which means
• 23:31
  Speaker 1: that it is time to answer your most burning finance,
• 23:34
  Speaker 1: career and life questions. If you need help untangling a
• 23:37
  Speaker 1: knotty dilemma, no matter how big or small, you can
• 23:39
  Speaker 1: send us a voice note directly through our website. We
• 23:42
  Speaker 1: have a built in voicemail on our website now, so
• 23:45
  Speaker 1: you can literally leave voice messages. You don't have to
• 23:48
  Speaker 1: just leave, you know, money questions and dilemmas. You can
• 23:50
  Speaker 1: always leave messages of encouragement if you think we're having
• 23:52
  Speaker 1: a bad week. You can also tell us how pretty
• 23:54
  Speaker 1: Jessus hair is. Honestly, you can tell us whatever you want,
• 23:58
  Speaker 1: so send us a voice note. Jump on the sh
• 24:00
  Speaker 1: She's on the money website and click the button that says,
• 24:02
  Speaker 1: ask us a question and we will help you find
• 24:04
  Speaker 1: the answer that you have been searching for. Now, let's
• 24:07
  Speaker 1: pressplay on today's money dilemma. Hi, girls, I was just wondering,
• 24:11
  Speaker 1: if the RBA increases the interest rate, does that mean
• 24:14
  Speaker 1: that my bank account will automatically have a higher interest
• 24:17
  Speaker 1: rate or is that not how it works? Thanks, long
• 24:20
  Speaker 1: story short to this, the answer is yes and no.
• 24:23
  Speaker 1: So no, because when the RBA increases its interest rate,
• 24:28
  Speaker 1: the banks are actually under no obligation to immediately increase
• 24:32
  Speaker 1: that and that's what we saw quite recently when they
• 24:35
  Speaker 1: didn't pass on the recent RBA increase to mortgages and
• 24:38
  Speaker 1: stuff like that. They just left it at the status quo.
• 24:41
  Speaker 1: So it's actually at the bank's discretion to make that decision,
• 24:45
  Speaker 1: and whether they increase it by the full amount or
• 24:47
  Speaker 1: a percentage is completely up to them, and I'm sure
• 24:49
  Speaker 1: they have all of these analysts working in the background
• 24:52
  Speaker 1: working out the impact of increasing the mortgage rates, and
• 24:55
  Speaker 1: it's important for them to take that into consideration regardless
• 24:59
  Speaker 1: of what the cost of money is. So when the
• 25:01
  Speaker 1: RBA increases the interest rate, it means they're increasing the
• 25:04
  Speaker 1: amount it's going to cost the bank to borrow the
• 25:07
  Speaker 1: money to lend to you, So they usually would pass
• 25:10
  Speaker 1: that on. But have a think about how many mortgages
• 25:13
  Speaker 1: exist and how many people have been through hardship over
• 25:16
  Speaker 1: the last two to three years given COVID, and how
• 25:19
  Speaker 1: many people might be, you know, still scraping through and
• 25:21
  Speaker 1: only able to just make the bare minimum repayments on
• 25:24
  Speaker 1: their mortgage. If their interest rate increases, they might end
• 25:28
  Speaker 1: up in a bit of a pickle and have to sell. Therefore,
• 25:30
  Speaker 1: the bank then loses the mortgage that they had, So
• 25:33
  Speaker 1: they need to weigh up the pros and cons of
• 25:35
  Speaker 1: whether they actually pass that percentage rate onto you or
• 25:38
  Speaker 1: pass a little bit of it, not the whole amount,
• 25:41
  Speaker 1: But they need to work it out at the same time.
• 25:44
  Speaker 1: As a business, if something is costing you more, you
• 25:47
  Speaker 1: need to be able to pass that cost onto a consumer.
• 25:50
  Speaker 1: And I don't want to disteal it down. It's quite complex,
• 25:53
  Speaker 1: but say there's a cost of a cup of coffee.
• 25:55
  Speaker 1: Jess and I go out and I buy my oat
• 25:56
  Speaker 1: latte and at my local cafe, I think it's like
• 25:59
  Speaker 1: four dollars eighty for my local oat laste, which is great,
• 26:02
  Speaker 1: but imagine if oat milk increased in price and it's
• 26:05
  Speaker 1: now costing the cafe far more money to give me that,
• 26:08
  Speaker 1: and they're no longer breaking even when I pay four
• 26:11
  Speaker 1: dollars eighty for my coffee, they genuinely need to pass
• 26:15
  Speaker 1: that on to remain a stable and good and profitable business.
• 26:18
  Speaker 1: So therefore my coffee is now going to cost five
• 26:21
  Speaker 1: dollars fifty instead of four dollars eighty, and it costs
• 26:23
  Speaker 1: me more, but it means that the cafe or in
• 26:27
  Speaker 1: this instance, the bank, can keep moving and grinding and
• 26:30
  Speaker 1: keeping up with everybody else, So it makes sense that
• 26:33
  Speaker 1: they would.
• 26:33
  Speaker 3: Pass it on.
• 26:34
  Speaker 1: From my predictions, I would assume that they would actually
• 26:37
  Speaker 1: have a bit more now surround passing on the full increase,
• 26:41
  Speaker 1: because it just doesn't make a lot of sense to
• 26:43
  Speaker 1: throw a whole heap of people into financial hardship. In
• 26:47
  Speaker 1: saying that inflation has always increased around wars because of
• 26:52
  Speaker 1: you know, animosity and people not being sure of what's
• 26:54
  Speaker 1: going on, and the cost of general transport and everything increasing.
• 27:00
  Speaker 1: Wouldn't be surprised if it does increase, But I'm waiting
• 27:02
  Speaker 1: to see what type of support the government's going to
• 27:05
  Speaker 1: come out with I genuinely cannot see how that much
• 27:08
  Speaker 1: of an increase will be passed directly onto consumers.
• 27:12
  Speaker 3: So if they're trying to keep mortgages low for people
• 27:14
  Speaker 3: so that they can afford them, does that mean that
• 27:16
  Speaker 3: they're also likely to keep interest rates on savings account
• 27:19
  Speaker 3: slow because, as you were saying, they've got a break
• 27:22
  Speaker 3: even somehow.
• 27:22
  Speaker 1: Yeah. Absolutely, In fact, this increase means that savings is
• 27:27
  Speaker 1: going to go even further backwards. So I wouldn't expect
• 27:30
  Speaker 1: an increase in what you're going to be paid to
• 27:32
  Speaker 1: have a savings account open to increase at all. I'm
• 27:36
  Speaker 1: concerned about mortgages, but at the same time, I think
• 27:39
  Speaker 1: we just have to wait and see what that actually means,
• 27:42
  Speaker 1: because this is the biggest annual inflation rate that we've
• 27:44
  Speaker 1: had for twenty years since UST was introduced, and it
• 27:48
  Speaker 1: can be overwhelming and it can be really scary. But
• 27:52
  Speaker 1: if you went through a mortgage broke out, or even
• 27:54
  Speaker 1: if you just went to the bank directly to get
• 27:56
  Speaker 1: a mortgage, they wouldn't have assessed your mortgage at two
• 28:00
  Speaker 1: percent or whatever you're paying right now. They would have
• 28:02
  Speaker 1: actually assessed your cash flow at five or seven percent.
• 28:05
  Speaker 1: If you recently had your mortgage refinance, depending on how
• 28:09
  Speaker 1: long ago that happened, and that means that you technically
• 28:13
  Speaker 1: should be okay and not in any financial hardship to
• 28:16
  Speaker 1: service that mortgage because we did the cash flows we
• 28:19
  Speaker 1: organized it. The bank was like, do you know what
• 28:21
  Speaker 1: what happens if the interest rate increases? Will just still
• 28:24
  Speaker 1: be able to pay her mortgage? Because they don't actually
• 28:27
  Speaker 1: want to put themselves at risk that if the interest
• 28:29
  Speaker 1: rate increases then they lose you as a customer. They
• 28:32
  Speaker 1: need to assess you as being able to pay the
• 28:35
  Speaker 1: highest possible amount that they predict is going to happen,
• 28:38
  Speaker 1: and then they take you back down to two percent
• 28:40
  Speaker 1: and actually give you a mortgage that you're able to
• 28:43
  Speaker 1: comfortably service. So I'm hoping that that's the case for
• 28:46
  Speaker 1: most people, But I would be really interested to see
• 28:49
  Speaker 1: how this pans out, because there's a lot going on
• 28:52
  Speaker 1: in the world at the moment post COVID, We've got
• 28:54
  Speaker 1: a war going on. We don't know what the future
• 28:56
  Speaker 1: looks like, but this is all played into the increasing
• 29:00
  Speaker 1: interest rate.
• 29:01
  Speaker 2: So this is maybe a strange question, but from what
• 29:04
  Speaker 2: I can garner, it seems like at the moment it
• 29:07
  Speaker 2: is a really tough time to be I mean, obviously
• 29:10
  Speaker 2: we're extremely privileged, but it's a very expensive time to
• 29:13
  Speaker 2: be living in Australia. What does it look like overseas
• 29:16
  Speaker 2: at the moment in terms of costs of living? Have
• 29:18
  Speaker 2: you guys got any numbers for me?
• 29:20
  Speaker 3: So I've got inflation rates in a couple of other countries.
• 29:23
  Speaker 3: General consensus is we're kind of sitting in the middle.
• 29:25
  Speaker 3: We're not the best, We're not the worst, you know,
• 29:27
  Speaker 3: happy medium, maybe like fifth or sixth place if you're
• 29:29
  Speaker 3: running a relay with ten people. So a couple of
• 29:31
  Speaker 3: other countries that you might want to compare us to,
• 29:34
  Speaker 3: And if you are interested in seeing this in text form,
• 29:36
  Speaker 3: check at our Instagram because we popped this up this week.
• 29:38
  Speaker 3: Spain's current inflation rate is nine point eight percent wild
• 29:42
  Speaker 3: the US is eight point five, the UK is seven.
• 29:47
  Speaker 3: Our friends across the ditch in New Zealand are at
• 29:49
  Speaker 3: six point nine. Sweden, where everyone seems to want to
• 29:52
  Speaker 3: be living, is six, and then obviously we come in
• 29:54
  Speaker 3: at five point one.
• 29:55
  Speaker 1: So we're not that badly off, especially when we compare
• 29:58
  Speaker 1: ourselves to the U and to New Zealand. I feel
• 30:01
  Speaker 1: like those are the two locations that I would go,
• 30:05
  Speaker 1: you know, pragmatically, oh wow, it's worse off there. But
• 30:08
  Speaker 1: it's interesting as well because we're coming into an election
• 30:11
  Speaker 1: year and the RBA is kind of laying low because
• 30:14
  Speaker 1: they don't want to scare us, but they have officially
• 30:16
  Speaker 1: come out recently, and I think that that's why the
• 30:19
  Speaker 1: media is picking up on it. So they've said that
• 30:21
  Speaker 1: the COVID stimulus will be dialed back. So I think
• 30:24
  Speaker 1: that that sent a few people into a spin because
• 30:26
  Speaker 1: obviously we've had, you know, some smooth coasting when it
• 30:29
  Speaker 1: comes to interest rates, but at the same time, we
• 30:32
  Speaker 1: need to keep up with what's going on in the world,
• 30:34
  Speaker 1: and we can only live in a bubble of having
• 30:36
  Speaker 1: very low inflation for a very long period of time
• 30:39
  Speaker 1: because look at what's going on around the world, it's
• 30:41
  Speaker 1: so much higher. And that's just the outcome of the
• 30:45
  Speaker 1: world that we live in. And I know that that's
• 30:47
  Speaker 1: not what people want to hear, and they want to
• 30:48
  Speaker 1: hear some hack to avoid it and what that means.
• 30:51
  Speaker 1: But I think it's just about really understanding that. I
• 30:54
  Speaker 1: think that a lot of us are going to have
• 30:55
  Speaker 1: to have some hard conversations because you know, as a
• 30:58
  Speaker 1: small business, I'm going to have to review that and
• 31:01
  Speaker 1: make sure that my employees are looked after in line
• 31:04
  Speaker 1: with what the increased cost of living is, because I
• 31:07
  Speaker 1: don't think it's fair on new jests that I pay
• 31:09
  Speaker 1: you the same I did last year, but stuff's costing
• 31:12
  Speaker 1: you more. Therefore your lifestyle is suffering. It doesn't make
• 31:14
  Speaker 1: any sense to me. But I mean, you work for
• 31:16
  Speaker 1: shees on the money, so you would expect me to
• 31:18
  Speaker 1: be on top of that. But if you work for
• 31:20
  Speaker 1: a small to medium sized business, it's very likely that
• 31:24
  Speaker 1: they're not having these conversations because they're not increasing their
• 31:27
  Speaker 1: revenue and they're going to have to increase salaries. So
• 31:31
  Speaker 1: I think that a lot of us are going to
• 31:32
  Speaker 1: have to say, all right, well I need to talk
• 31:34
  Speaker 1: to my boss because I do need a raise. I
• 31:37
  Speaker 1: do need to have this conversation, and I am worthy
• 31:39
  Speaker 1: and I definitely deserve this. It's not a I'm doing
• 31:42
  Speaker 1: more work and I need to be remunerated. It's like, well, actually,
• 31:45
  Speaker 1: can you at least do it in line with CPI cheers, mate, Like, yes,
• 31:49
  Speaker 1: things are more expensive, Yes it sucks, but what can
• 31:52
  Speaker 1: we do personally to put ourselves in the driver's seat
• 31:56
  Speaker 1: as opposed to sitting at the back of the bus.
• 31:58
  Speaker 3: I love that. I know it's a tough conversation to have,
• 32:01
  Speaker 3: but you don't want to keep suffering at the hands
• 32:03
  Speaker 3: of something that's really got nothing to do with you, right, yeah, Like,
• 32:06
  Speaker 3: how do we.
• 32:06
  Speaker 1: Shift this mentality of like, oh my gosh, I can't
• 32:09
  Speaker 1: believe this is happening to us to how do we
• 32:12
  Speaker 1: make the most of this situation? And if that means
• 32:14
  Speaker 1: that you sit down with your boss and negotiate a
• 32:17
  Speaker 1: higher salary to make sure that you are accounting for this, Like,
• 32:21
  Speaker 1: we're not just negotiating a higher salary so that you've
• 32:23
  Speaker 1: got more money to save. Yes, we're negotiating a higher
• 32:26
  Speaker 1: salary so that you can keep up with the increase
• 32:27
  Speaker 1: in lifestyle costs that you're going to experience without having
• 32:30
  Speaker 1: any choice. Like, this isn't asking for you know, something
• 32:34
  Speaker 1: above and beyond. You're asking for the bare minimum from
• 32:37
  Speaker 1: your employer. I would like to be able to maintain
• 32:39
  Speaker 1: my lifestyle in the same way I have last year.
• 32:42
  Speaker 1: Like that makes sense, right, just seems fair. It just
• 32:45
  Speaker 1: seems fair. So I think that we really need to
• 32:47
  Speaker 1: take back the power in that way and go you
• 32:49
  Speaker 1: know what what am I going to do to make
• 32:51
  Speaker 1: sure this works? And we also need to have some
• 32:54
  Speaker 1: level of sympathy if you are working through a really
• 32:56
  Speaker 1: small business whose margins aren't increasing. I think having those
• 32:59
  Speaker 1: conversations around what you can do and how that might
• 33:02
  Speaker 1: work for you is definitely worthy of having because I
• 33:05
  Speaker 1: know that small business owners are going to be listening
• 33:07
  Speaker 1: to this and they're like, Victoria, don't promote my staff
• 33:09
  Speaker 1: to ask this, Like I can't afford it. Everything is
• 33:11
  Speaker 1: the bare mi in a moment the moment like I
• 33:13
  Speaker 1: have no profit, I have no this or that. Like
• 33:15
  Speaker 1: I get it. But at the same time, what can
• 33:17
  Speaker 1: you negotiate with your employees to make sure that they're
• 33:21
  Speaker 1: in the best possible position, Because if it's not cash,
• 33:24
  Speaker 1: it could be time, it could be more holiday time,
• 33:26
  Speaker 1: it could be you know, other benefits and other things
• 33:29
  Speaker 1: that come into play that mean that they feel value.
• 33:32
  Speaker 1: Don't you think that that's the most important thing here?
• 33:34
  Speaker 3: So can you work from home to save money on
• 33:37
  Speaker 3: petrol because petrol so expensive and paying for parking?
• 33:39
  Speaker 1: Can your employer pay for some of your parking? Can
• 33:42
  Speaker 1: your employer do something that takes the pressure off, like
• 33:45
  Speaker 1: if they have corporate spots. Can you be allocated one
• 33:48
  Speaker 1: of them? If you know, again you said it before,
• 33:51
  Speaker 1: can you work from home or regularly? That's basically what
• 33:54
  Speaker 1: everybody wants coming out of the pandemic. But like, I mean,
• 33:56
  Speaker 1: let's blame the interest rates for wanting to work from
• 33:58
  Speaker 1: home as well. Think it's about flexibility and what does
• 34:02
  Speaker 1: that actually mean? Maybe, And I've got a girlfriend who
• 34:05
  Speaker 1: did this recently where her employer said no to a
• 34:08
  Speaker 1: raise and she clapped back and was like, no problems.
• 34:10
  Speaker 1: I was just wondering, can I only work four days
• 34:12
  Speaker 1: a week?
• 34:12
  Speaker 3: Genius?
• 34:13
  Speaker 1: And she did and they approved it because they were like, well,
• 34:15
  Speaker 1: we didn't have budget, but like, yeah, if you want
• 34:17
  Speaker 1: to work four days a week, like she's just gotten
• 34:19
  Speaker 1: a whole day a week back. Yeah, that means that
• 34:22
  Speaker 1: she can allocate it towards something else that's going to
• 34:24
  Speaker 1: make her happy. And she's not going and doing a
• 34:26
  Speaker 1: side hustle or another job or anything in that time.
• 34:29
  Speaker 1: She's literally just using it to have the lifestyle she
• 34:32
  Speaker 1: wanted to achieve. So I think it's about being a
• 34:34
  Speaker 1: bit creative, like do you talk to your employer about that?
• 34:37
  Speaker 1: Or even if you don't want a whole day. Do
• 34:39
  Speaker 1: you just go, hey, you don't have to pay me more,
• 34:41
  Speaker 1: but can I just not come in till ten every day?
• 34:44
  Speaker 3: Yeah? Like there's a whole range. I feel like there are.
• 34:46
  Speaker 1: So many things that you can do and you can
• 34:49
  Speaker 1: you know, have as a part of your contract that
• 34:52
  Speaker 1: so many people aren't pretty too.
• 34:54
  Speaker 3: Yeah, and that will hopefully ease that financial burden the
• 34:57
  Speaker 3: world kind of feeling a little bit right now.
• 34:59
  Speaker 1: Exactly all right, Well, I think that that is it
• 35:02
  Speaker 1: from Victoria's rants, and I just want to pick people
• 35:05
  Speaker 1: up and be like, no, you can do it too.
• 35:06
  Speaker 1: It's okay. But I think that is all we have
• 35:09
  Speaker 1: time for today. So all right, George, back over to
• 35:12
  Speaker 1: you in your small Harry Potter cupboard.
• 35:14
  Speaker 2: Okay, guys, have the advice shared on She's on the
• 35:16
  Speaker 2: Money is general in nature and does not consider your
• 35:19
  Speaker 2: individual circumstances. She's on the Money exists purely for educational
• 35:24
  Speaker 2: purposes and should not be relied upon to make an
• 35:26
  Speaker 2: investment or a financial decision. And we promise Victoria divine
• 35:30
  Speaker 2: and She's on the Money is an authorized representative of
• 35:33
  Speaker 2: in Focused Securities Australia Propriety Limited ABN four seven zero
• 35:38
  Speaker 2: nine seven seven nine seven zero four nine afocl two
• 35:42
  Speaker 2: three six five two three.
• 35:43
  Speaker 1: See you next week, guys, ye hye guys,