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Life on a Pension · She's On The Money

0:00
Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
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Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before
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Speaker 1: we get started on She's on the Money podcast, I
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Speaker 1: would like to acknowledge the traditional custodians of the land
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Speaker 1: of which this podcast is recorded on a wondery country,
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Speaker 1: acknowledging the elders, the ancestors and the next generation coming
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Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing
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Speaker 1: and the storytelling of you to make a difference for
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Speaker 1: today and lasting impact for tomorrow.
0:33
Speaker 2: Let's get into it. She's on the Money. She's on
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Speaker 2: the Money. Hello, and welcome to She's on the Money,
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Speaker 2: the podcast for millennials who want financial freedom. Today, my friends,
1:04
Speaker 2: is Friday, which means it is time to get my
1:06
Speaker 2: little team together and celebrate you ow incredible. She's on
1:09
Speaker 2: the Money community. Today, we're going to be sharing our
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Speaker 2: favorite money wins of the week, or as always, miss
1:13
Speaker 2: Jess Gricci, you will be sharing the favorite money wins
1:16
Speaker 2: of the week. We're going to be helping to answer
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Speaker 2: a juicy money dilemma, which this week is all about
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Speaker 2: whether you should be using your savings to set up
1:22
Speaker 2: your small business or not. And we're going to be
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Speaker 2: unpacking something that you guys slid into our DMS about
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Speaker 2: living on a pension. I feel like this is going
1:30
Speaker 2: to be a really interesting juxtaposition talking about savings and
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Speaker 2: setting up a small business versus actually living on a
1:35
Speaker 2: pension and how to budget and how to save and
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Speaker 2: like actually how to survive. But let's start with our
1:40
Speaker 2: little team, Beck, how was your week really good? It's
1:44
Speaker 2: because you saw Jess and I right, Yes, that definitely
1:46
Speaker 2: helped that I saw you guys, of course, but also
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Speaker 2: I know that only u V might have context for this. Okay,
1:53
Speaker 2: well this is probably really good then to share on
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Speaker 2: a podcast to a billion people. Yeah, it could be
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Speaker 2: good because no one else will know what's going on.
2:00
Speaker 3: But I applied for a job this last couple of
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Speaker 3: weeks and I got it.
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Speaker 2: Yeah. I'm so excited. You got it.
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Speaker 4: I'm so excited.
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Speaker 2: And I mean that doesn't mean she's leaving. She's on
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Speaker 2: the money, guys, she just arrived and it's your full time,
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Speaker 2: legit job.
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Speaker 3: It means that I will be going from literally drowning
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Speaker 3: every single month to being a little bit more.
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Speaker 4: I'm so proud I got the job, that's all.
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Speaker 2: I'm actually so excited. I've been so low key, you
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Speaker 2: know how you shouldn't ask people like you shouldn't be like, oh,
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Speaker 2: did you get the job? And like obviously knew replied,
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Speaker 2: And we've been talking about it like you can't just go,
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Speaker 2: oh did you get it because like you might go, no,
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Speaker 2: I didn't get it, Like and that's that's a really
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Speaker 2: not a nice thing to bring up. And you might
2:45
Speaker 2: have been upset about it. Yeah, you waited deal.
2:47
Speaker 1: It was on the pod to.
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Speaker 5: Share that dirty dog.
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Speaker 2: I love it, Jess. I'm hoping you don't have the
2:54
Speaker 2: same news because I'll be sot a job.
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Speaker 6: No, no, no, I have nothing that could action. You know,
3:00
Speaker 6: when these peas don't leave me this.
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Speaker 4: I won't.
3:03
Speaker 6: Well, I will leave you, but I'll leave with you
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Speaker 6: to go. Where are we going, Sydney? Well, this week
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Speaker 6: we went to Perth and Brisbane.
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Speaker 2: We do. That's why we didn't know what Beck was.
3:12
Speaker 6: Literally well in Brobeck still love you were in Brisbane today.
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Speaker 6: Thank you so much to everyone who spent their morning
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Speaker 6: with us, and thank you so much everyone who came
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Speaker 6: out in Perth for our first time ever.
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Speaker 2: I actually can't stop. All I do is cry beck.
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Speaker 2: Like when we have live events, I find it so
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Speaker 2: overwhelming and I thought this would get better time and
3:29
Speaker 2: it's just no word. Yeah, it's actually so beautiful. Like
3:34
Speaker 2: you go to these events and it's full of people
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Speaker 2: all on the same page, right, like, and it's not
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Speaker 2: that common that you'll go to like I don't know,
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Speaker 2: you go to a concert, right, and you'll be in
3:43
Speaker 2: the same room as people who all have bonavert right,
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Speaker 2: and you're kind of like, yeah, cool, But we're all
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Speaker 2: eclectic and we just have this one shared like interest.
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Speaker 2: We don't actually have that much in common. But I
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Speaker 2: feel like when you get the Ches on the Money
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Speaker 2: community together, it's really it's a very similar personality type,
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Speaker 2: Like we all want the best for each other. All
4:00
Speaker 2: you know, care about our saving and our spending. We
4:02
Speaker 2: all care about similar things. And often people have really
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Speaker 2: beautiful personal stories that intertwine into the community and make
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Speaker 2: the community even stronger. And as much as I love
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Speaker 2: hearing them, I find them so overwhelming. Like if people
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Speaker 2: come up and they say, hey, they like, you know,
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Speaker 2: like so excited to be here, and I'll be so
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Speaker 2: excited too, Like I just wanted to let you know
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Speaker 2: that I listened to your podcast and got out of
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Speaker 2: debt because of you. Like that does not get old.
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Speaker 2: Like that to me, and Jess is exactly the same.
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Speaker 2: Like it's overwhelming to think that our little podcasts that
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Speaker 2: we you know, do from our studio every week in
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Speaker 2: our active wear and like have my dog here, like
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Speaker 2: that changes people's lives. Like and music is you know,
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Speaker 2: obviously really important. But when you look at a community
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Speaker 2: like She's on the money, you just know there are
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Speaker 2: people who've gotten out of traumatic relationships because of us.
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Speaker 2: They've gotten out of abusive situations, they finally have savings,
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Speaker 2: they're not living paycheck to paycheck. They've you know, saved
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Speaker 2: for their first home, or they've just bought their first car,
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Speaker 2: or they've done something that has put themselves in the
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Speaker 2: best possible position. And I think it's just it's crazy. Anyway,
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Speaker 2: all I do is cry. So if you saw me
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Speaker 2: crying this week, sorry not sorry.
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Speaker 4: Yeah that's really amazing because I love you. An incredible
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Speaker 4: week all round for the team.
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Speaker 2: It sounds like, yeah, it's literally my favorite thing ever.
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Speaker 2: But let's get into this because this week we didn't
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Speaker 2: miss a beat. We also asked about our community money wins,
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Speaker 2: and we always want to know what you guys are
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Speaker 2: up to literally every week. So Jess, you've got a
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Speaker 2: few that you've pulled out that you would like to
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Speaker 2: share on the show. What are they? What have we
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Speaker 2: got do?
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Speaker 6: First money when this week comes from Kate, who said
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Speaker 6: I'm going to Europe for the summer.
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Speaker 2: Lucky hot girl.
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Speaker 4: I booked an intrepid tour for Portugal.
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Speaker 6: Ages ago and recently saw a twenty five percent off
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Speaker 6: sale for my tour day. Thought it wouldn't have to
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Speaker 6: ask if I could redeem the discount on my car.
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Speaker 6: That's a lot of money. Surprisingly, they said yes, and
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Speaker 6: I now have one thousand extra dollars to spledge on
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Speaker 6: Portuguese tarts.
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Speaker 2: Oh my god, amazing Portuguese tarts are good.
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Speaker 6: There are literally about six comments underneath her comments saying,
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Speaker 6: oh my god, I love Portuguese. I love it.
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Speaker 2: That's what people got out of this.
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Speaker 6: But also if you don't ask, you don't get I'm
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Speaker 6: really impressed that they honored it, to be honest, because
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Speaker 6: I need to drink it. My next money wind comes
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Speaker 6: from Bianca, who said life win settlement for my first
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Speaker 6: home was last week, and I'm feeling so silly, proud
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Speaker 6: of myself for being able to achieve this all on
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Speaker 6: my own.
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Speaker 2: I'm so pressed. Still feels surreal.
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Speaker 4: That it's mine.
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Speaker 6: And there's a cute little photo of her dogg O
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Speaker 6: living on her front.
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Speaker 2: No, I'm sure he lives.
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Speaker 4: That's his house.
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Speaker 2: Now, that's his house. That's so you bought a house
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Speaker 2: so that your dog could live their best life all
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Speaker 2: by yourself.
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Speaker 4: Good on you, queen.
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Speaker 6: My next money win comes from Murphy, who says it's
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Speaker 6: taken six years, but we are finally consumer debt free. Yes,
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Speaker 6: seventeen hundred dollars a month in personal loan repayments is
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Speaker 6: something I never want to go back to. My partner
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Speaker 6: and I were both stuck in the cycle paying off
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Speaker 6: one and taking on another. Never again. I'm so proud
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Speaker 6: of you, Murphy. Murphy's been in the community for a
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Speaker 6: really long time, and.
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Speaker 2: Name feels really familiar with your phone. Oh my gosh. No,
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Speaker 2: we do definitely know Murphy. Well done. That is a
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Speaker 2: month think about.
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Speaker 4: What Yeah, yeah, you're not going to know yourself.
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Speaker 6: Nah, it's going to be incredible. My next money win
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Speaker 6: comes from a Lease who said money win. I am
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Speaker 6: terrible at sticking to budgets because of FOMO. Until now,
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Speaker 6: I've had all my money in one big savings bucket,
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Speaker 6: and I've always dipped into it to overspend. Recently, I've
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Speaker 6: split my savings into sub accounts where I now put
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Speaker 6: how much I'm willing to spend for the year on
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Speaker 6: different categories like entertainment events, eating out, et cetera. And
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Speaker 6: when it runs out, it's out. So far, I'm already
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Speaker 6: way more conscious of my budget and I'm spending well
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Speaker 6: within my means.
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Speaker 4: Queen behavior, we love to see it.
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Speaker 6: And then my lucky last win for this week comes
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Speaker 6: from Georgia, who said, after almost a year off of
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Speaker 6: work battling with health issues, I finally got myself a
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Speaker 6: suitable job and I worked my first eight hour day
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Speaker 6: in as long as I can remember on Saturday. It's
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Speaker 6: a big money win for my partner and I who
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Speaker 6: have just been getting buy on one income. Oh congrats,
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Speaker 6: How exciting gratulations Georgia, and just goes to show the
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Speaker 6: importance of flexible roles and roles that can offer you
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Speaker 6: support or things that you need. Because she sounds she's
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Speaker 6: capable and she's excited to be working an eight hour day,
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Speaker 6: and I'm just so excited that you found an employer
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Speaker 6: who can let you do that.
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Speaker 2: I think we'll forget what a privilege that is like.
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Speaker 2: To be able to go to work for an entire
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Speaker 2: day and be able to have an uninterrupted work day
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Speaker 2: because our health allows us to like that is so special.
8:18
Speaker 2: Let's go to a really quick break, though, because, as
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Speaker 2: you guys know, I'm wildly passionate about small business and
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Speaker 2: the next question that is coming up after the break
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Speaker 2: is about whether you should spend your savings on setting
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Speaker 2: up a small business. And we're going to be discussing
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Speaker 2: getting by on a pension, So don't go anywhere, guys.
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Speaker 4: Welcome back, everybody.
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Speaker 6: Let's get into one of my favorite parts of the week,
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Speaker 6: the money dilemma.
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Speaker 2: Let's have a listen. Hi, there, have you got a
8:45
Speaker 2: money dilemma you just can't solve that. She's on the
8:47
Speaker 2: Money team is here to help. Every week we tackle
8:50
Speaker 2: your dilemmas, both big and small, to answer your most
8:53
Speaker 2: burning money, career and life questions. To get involved, simply
8:57
Speaker 2: head to our website and leave us a short voice
8:59
Speaker 2: recording and you, oh, I just find yourself on the show. Now,
9:02
Speaker 2: let's take a listen to this week's money dilemma.
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Speaker 4: Hi, She's on the Money.
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Speaker 5: My question is about small business. I am a sole trader,
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Speaker 5: and I am moving from my home office into a
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Speaker 5: commercial space that I'm turning into a clinic and office.
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Speaker 5: I am having the hardest time spending my savings to
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Speaker 5: set this up. I originally thought I would get a
9:23
Speaker 5: business loan, but I realized it makes a lot better
9:27
Speaker 5: sense to use my own money rather than be in debt.
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Speaker 5: But I'm just having the hardest time spending my own money,
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Speaker 5: my own savings. I'm not sure what's going on, but
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Speaker 5: I just can't seem to part with this money. I
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Speaker 5: know that investing in myself is going to bring me
9:42
Speaker 5: more money at the end of the day, but I
9:43
Speaker 5: just can't do it. Please give me some advice.
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Speaker 2: That is a really good question, and it's one that
9:49
Speaker 2: when I was setting up Shees on the Money and Zella,
9:52
Speaker 2: I felt sick about, like I would consistently not know
9:55
Speaker 2: if I was doing the right thing. From my perspective,
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Speaker 2: I think you are doing the right thing spending your
10:01
Speaker 2: money that you already have instead of getting a business loan. Obviously,
10:06
Speaker 2: business loans have higher interest rates than you know, a
10:09
Speaker 2: home loan, and at the moment, with the interest as
10:12
Speaker 2: high as it is, if you can do anything to
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Speaker 2: avoid that, that is fantastic. It is a massive privilege
10:18
Speaker 2: to have the savings to be able to invest into
10:21
Speaker 2: a business, and I think that's really really special. But
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Speaker 2: the thing I really struggled with guys was actually just
10:26
Speaker 2: not having a plan. I think when you are starting
10:29
Speaker 2: a small business, you just don't think enough. And you
10:32
Speaker 2: would think that a financial advisor or an ex financial
10:34
Speaker 2: advisor would have thought about the budget, but like when
10:36
Speaker 2: it comes to your own house or your own financial situation,
10:40
Speaker 2: sometimes you just don't do the maths in the way
10:42
Speaker 2: that you should. And it felt really hard to separate
10:45
Speaker 2: from the money. And let's talk about this clinic you're
10:47
Speaker 2: setting up. I'm assuming you're like, yep, I know, I've
10:50
Speaker 2: got savings. Let's start setting up the clinic. Have you
10:52
Speaker 2: got a budget? Have you actually worked out what that
10:55
Speaker 2: clinic's going to cost? We're talking rent and overhead expenses,
10:58
Speaker 2: we're talking about fit out, but what is it going
11:00
Speaker 2: to cost to you know, if you need a receptionist,
11:03
Speaker 2: what's that going to look like? Have we actually worked
11:05
Speaker 2: out what this is. How much is that business going
11:07
Speaker 2: to cost you per month to run? Like what is
11:11
Speaker 2: the minimum amount of money that you would need coming
11:13
Speaker 2: in the door for that business to make sense? And
11:16
Speaker 2: I think that once you have that structure and you
11:18
Speaker 2: can say, okay, well, actually i've worked out that you know,
11:21
Speaker 2: hypothetically rents one thousand dollars, my overheads are five hundred dollars,
11:24
Speaker 2: you know, all of the fit out over this period
11:27
Speaker 2: of time, because a fit out can be really expensive
11:30
Speaker 2: of a facility, right like when it comes to setting
11:32
Speaker 2: up an office. I don't think people understand how expensive
11:35
Speaker 2: it can be. Like rent often when you sign a
11:38
Speaker 2: lease usually is five years as a rental period for
11:41
Speaker 2: a commercial space. Then on top of that, if it
11:44
Speaker 2: doesn't come with like desks and chairs, and if you're
11:46
Speaker 2: starting up a clinic, you probably need something specific. We're
11:48
Speaker 2: talking ten twenty thirty thousand dollars to set you up
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Speaker 2: for success. So I can see why it's really hard
11:54
Speaker 2: to separate from that money. But what we need to
11:56
Speaker 2: do is actually create the structure. So if you go,
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Speaker 2: all right, well I'm going to spend thirty thousand dollars,
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Speaker 2: let's just say, on this fit out for this clinic,
12:03
Speaker 2: because obviously you've gotten to a point where your business
12:06
Speaker 2: is doing well and you want to take it to
12:07
Speaker 2: the next level. How are you paying yourself back? Let's
12:10
Speaker 2: pretend that's alone. Let's pretend that those savings are a
12:13
Speaker 2: loan facility and that you're just borrowing them off yourself
12:16
Speaker 2: to pay back later. So if that's thirty thousand dollars,
12:19
Speaker 2: let's go, all right, what period of time feels reasonable?
12:22
Speaker 2: Are we going to pay it back over twelve months,
12:24
Speaker 2: maybe three years? What does that look like? Maybe I
12:27
Speaker 2: pay back ten thousand dollars a year towards that. So
12:29
Speaker 2: you're going to feel a lot more comfortable because you
12:32
Speaker 2: personally aren't being put at a detriment because you're setting
12:36
Speaker 2: up this small business. And sometimes as small business owners,
12:39
Speaker 2: we forget that we need to put ourselves first. We
12:42
Speaker 2: forget to pay ourselves. We don't pay ourselves super, we
12:44
Speaker 2: don't actually do the things that we're meant to do,
12:47
Speaker 2: and sometimes that means pouring all of our savings in
12:49
Speaker 2: and pretending like it's a lost cause. I think making
12:52
Speaker 2: sure that any money you put into your business, your
12:55
Speaker 2: business pays you back, and I think that if you
12:57
Speaker 2: can start seeing it that way, you'll be a bit
12:59
Speaker 2: more confident because you're then making an investment that's going
13:03
Speaker 2: to be paid back, and then that investment is going
13:05
Speaker 2: to generate more income. So, from my perspective, if you're
13:08
Speaker 2: setting up a small business and relying on your savings,
13:12
Speaker 2: pretend those savings are alone, but from yourself, we want
13:15
Speaker 2: to pay it back because I don't want you to
13:17
Speaker 2: be without that thirty thousand dollars hypothetically right, I actually
13:20
Speaker 2: want you to be in the best position. And if
13:22
Speaker 2: you want to be a little bit cheeky add an
13:23
Speaker 2: interest rate, be like, all right, well, I'm also going
13:25
Speaker 2: to pay back five percent. I'm going to be in
13:27
Speaker 2: a better off position. And then also my other advice
13:30
Speaker 2: would be please set up in that budget you to
13:32
Speaker 2: pay you super and make sure that you are being
13:34
Speaker 2: put first, because to bring the mood down for a
13:37
Speaker 2: hot second, most small businesses don't make it to ten years,
13:41
Speaker 2: and I don't want you in ten years time to
13:43
Speaker 2: be behind the apall when it comes to being able
13:46
Speaker 2: to retire. I want every small business owner that goes
13:49
Speaker 2: into business to be able to you know, if it's
13:51
Speaker 2: not working out, step away and not have been negatively
13:55
Speaker 2: impacted by that experience because it happens, right, small businesses
13:58
Speaker 2: might not work out, It might not be what you
14:00
Speaker 2: thought it was going to be. At least then you
14:02
Speaker 2: can go all right, just going to go get a
14:04
Speaker 2: salary and way journing job. This definitely wasn't for me,
14:07
Speaker 2: but you're not behind because you always put yourself first.
14:10
Speaker 2: There's a really good book. I've talked about it on
14:12
Speaker 2: the podcast before and I've also talked about it on
14:14
Speaker 2: the Business Bible, which is our business podcast, and it's
14:17
Speaker 2: called Profit First. And if you are a small business owner,
14:20
Speaker 2: I really recommend reading that because it's really about reverse
14:23
Speaker 2: engineering how profit is distributed in a business to make
14:26
Speaker 2: sure that you are financially okay. Because I think that
14:29
Speaker 2: there's this really toxic mentality of all right, you've got
14:32
Speaker 2: to be really hard and you've got to struggle for
14:35
Speaker 2: the first ten years and every single dollar needs to
14:37
Speaker 2: be reinvested into your business and if it's not, you're
14:40
Speaker 2: not going to have a successful business. I don't believe
14:42
Speaker 2: that to be true because they needs to be work
14:44
Speaker 2: life balanced and if I'm burning you out for the
14:46
Speaker 2: next ten years because you're sacrificing everything. You're not going
14:49
Speaker 2: to want the business in ten years, so let's make
14:51
Speaker 2: it sustainable. But back to the original question, I think
14:55
Speaker 2: that you're probably doing the right thing. You just don't
14:57
Speaker 2: have enough structure around how to implement. Meant that strategy
15:01
Speaker 2: and a budget literally going to be your best friend.
15:03
Speaker 6: And you'd want to be making sure as well that
15:05
Speaker 6: if you're pulling money out of your savings, like your
15:07
Speaker 6: personal savings, that you're leaving yourself one your own personal
15:10
Speaker 6: emergency fund to patent. Would we also be wanting to
15:13
Speaker 6: implement an emergency fund for the business as well, so
15:16
Speaker 6: that if the business has a bit of a crisis,
15:18
Speaker 6: you don't have to rely on your personal emergency fund.
15:21
Speaker 2: Very good, very genius. And Jess knows this well because
15:25
Speaker 2: she does know the back end if she's on the money,
15:26
Speaker 2: and she's on the money, does have an emergency fund.
15:29
Speaker 2: It makes me feel very confident when we make business
15:32
Speaker 2: decisions that I know that I can pay my team
15:35
Speaker 2: regardless of whether we get paid next month or not.
15:37
Speaker 2: And I wouldn't want that to be coming out of
15:39
Speaker 2: my personal income, not because I'm selfish, but because I
15:42
Speaker 2: think it gives me peace of mind knowing that the
15:44
Speaker 2: business is now self sufficient. I mean, we can't go
15:47
Speaker 2: on forever and ever and ever, and if something happens,
15:50
Speaker 2: I know, right sucks. We can't go on forever. But
15:53
Speaker 2: if something does happen, I know that we've got the
15:55
Speaker 2: cash as a backup. And I think that a lot
15:58
Speaker 2: of small business owners forget to do that as well.
16:00
Speaker 2: And you should really treat your business in the same
16:02
Speaker 2: way that we do a budget. Go all right, well,
16:04
Speaker 2: what does three months worth of expenses look like? How
16:07
Speaker 2: would I make sure that if you know, one month,
16:10
Speaker 2: what if invoices don't come in, because that's.
16:12
Speaker 4: So don't pay at the time. They just don't.
16:14
Speaker 2: They just don't, right like, And having run a small
16:16
Speaker 2: business for the last seven years, that statement could not
16:19
Speaker 2: be more true. People do not pay their invoices on time.
16:23
Speaker 2: It doesn't matter how big that company is. And you
16:26
Speaker 2: would be surprised at the people that poor Jess has
16:28
Speaker 2: had to chase up hysterically. Coming from a place of truth,
16:31
Speaker 2: it is embarrass Is it like wild?
16:33
Speaker 1: Is it like a.
16:33
Speaker 4: Benefit to like paying late or something?
16:35
Speaker 1: Like?
16:35
Speaker 4: Why do people know we started adding interest?
16:38
Speaker 2: Yeah, if you're a small business owner, always have that
16:42
Speaker 2: clause at the bottom of the invoice that says, if
16:45
Speaker 2: this is not paid on time, late fees will be incurred,
16:48
Speaker 2: and if it has to go to a debt collection,
16:50
Speaker 2: which sometimes that actually does happen, those fees will be
16:54
Speaker 2: added on top. Because if that's not on your invoice,
16:56
Speaker 2: that's coming out of the profit that you will make.
16:58
Speaker 2: So if that's not outlined clearly on the invoice that
17:01
Speaker 2: you gave to your client, you actually can't make them
17:05
Speaker 2: pay those fees if they are late. You can't just
17:07
Speaker 2: turn around and be like, oh, you've been late for ages,
17:09
Speaker 2: I'm going to start charging interest.
17:11
Speaker 1: None.
17:11
Speaker 2: No, no, it has to be in the terms and conditions.
17:13
Speaker 2: So we learned that the hard way, Yes, we did.
17:16
Speaker 2: We learned that the hard way, even though I knew
17:18
Speaker 2: that that was a thing the whole time. Don't trust yourself,
17:21
Speaker 2: don't trust for all of this whole story. Yeah, don't
17:24
Speaker 2: trust yourself. Yeah. But also like back yourself, right, So,
17:27
Speaker 2: like in a business, if you genuinely believe in that,
17:30
Speaker 2: create the structure so that you can see it down
17:33
Speaker 2: on paper and it just makes sense and you go, yeah,
17:34
Speaker 2: of course I'm going to put my money into that.
17:36
Speaker 2: Often we are a little bit apprehensive when there's a
17:38
Speaker 2: lack of clarity, and I think by giving yourself that clarity,
17:41
Speaker 2: you'll find you'd.
17:41
Speaker 4: Be more peace very interesting.
17:44
Speaker 2: So this week we got a message about living on
17:46
Speaker 2: the disability pension and I feel like this is a
17:48
Speaker 2: really interesting one. So they said, hi, Ve, I'm currently
17:51
Speaker 2: on a disability pension and I anticipate that I will
17:54
Speaker 2: be on this for the rest of my life. I'm
17:56
Speaker 2: making just over one thousand dollars each and every single fortnight,
17:59
Speaker 2: but it's not hitting the sites. What can I do
18:02
Speaker 2: to be a little bit more financially independent when it
18:04
Speaker 2: comes to a very strict income. Feel like this is
18:07
Speaker 2: really relatable and the amount, so I've looked it up
18:10
Speaker 2: to make sure that we're all on the same page.
18:12
Speaker 2: So if you've got the maximum amount of a disability
18:15
Speaker 2: pension here in Australia, every single fortnite, your maximum base
18:19
Speaker 2: rate plus your maximum pension supplement plus your energy supplement
18:22
Speaker 2: comes out to one and twenty six dollars fifty each
18:26
Speaker 2: and every single fortnite, which if we times out by
18:29
Speaker 2: twenty six and then divide that by twelve so that
18:31
Speaker 2: we get the amount per month. Because I feel like
18:33
Speaker 2: sometimes we all just function better on a month to
18:36
Speaker 2: month basis. That's twenty two hundred and twenty four dollars
18:39
Speaker 2: each and every single month as a total little money.
18:43
Speaker 2: It's total income. And I feel like that's a really
18:46
Speaker 2: relevant question because so many people are in their situation,
18:51
Speaker 2: and I mean, we've spoken about it off air. This
18:54
Speaker 2: conversation is really about how do you make the most
18:57
Speaker 2: of the money that you have and live the life
19:00
Speaker 2: that you want when you're quite restricted because you don't
19:03
Speaker 2: have the ability to go and earn additional income. You
19:05
Speaker 2: don't have the ability, and I mean you can, like,
19:07
Speaker 2: let's be honest. I know of people who have been
19:11
Speaker 2: on disability pensions and they have a little cash job
19:13
Speaker 2: that they can do for three hours once a month,
19:16
Speaker 2: and to be honest, I think that's great. Like I'm
19:20
Speaker 2: for that because I just think that's not much money
19:22
Speaker 2: and I don't think you know, being really let's just
19:25
Speaker 2: be a little bit spicy. I really don't think our
19:26
Speaker 2: government does nearly enough to look after people in those situations.
19:30
Speaker 2: And if you are on a disability pension, there's going
19:32
Speaker 2: to be a really good reason for it, because it's
19:33
Speaker 2: really hard to get on a disability pension. Like, we're
19:36
Speaker 2: not talking about being on centling here. We're not talking
19:38
Speaker 2: about people who maybe are taking advantage of the system.
19:41
Speaker 2: Let's admit, yes, those people exist, That's not who we're
19:44
Speaker 2: talking to in this community. And you know what, I
19:46
Speaker 2: really don't think that there are people in the She's
19:48
Speaker 2: on the Money community that're doing that because you're not
19:50
Speaker 2: going to care about your budget and your cash flow
19:51
Speaker 2: and making the most of things if that's your mentality,
19:54
Speaker 2: if you're someone who takes advantage of things, I just
19:56
Speaker 2: don't think that's a She's on the Money listener, you know, Like,
19:58
Speaker 2: I just think that the people that listen to our
20:00
Speaker 2: content are the types that just want the best for
20:03
Speaker 2: themselves and the situation that they're in. So I feel
20:07
Speaker 2: like that's not much money, but what can we actually
20:10
Speaker 2: do with it? So, do you guys have any suggestions?
20:12
Speaker 2: Before I dive in?
20:13
Speaker 3: I feel like we should ask my mum about this,
20:16
Speaker 3: because she did this. She's a mother of four children,
20:19
Speaker 3: and there was a time where she was definitely on Senelink,
20:23
Speaker 3: not the disability pension necessarily, and I don't actually know
20:26
Speaker 3: what it was, but I feel like I was like
20:28
Speaker 3: one second old not really, I was eighteen or something, but.
20:32
Speaker 2: She was really lucky.
20:33
Speaker 3: And we were really lucky because we were in a
20:35
Speaker 3: situation where we were on a waiting list for a
20:39
Speaker 3: community housing place, and that wait list can be five,
20:44
Speaker 3: ten years years long, Like you have to wait for
20:47
Speaker 3: so long. We were in a position where I was like,
20:50
Speaker 3: you know, a bit more prioritize, a little bit more
20:52
Speaker 3: of an emergency. So we got a place maybe after
20:54
Speaker 3: a year. We were very, very lucky. And so the
20:58
Speaker 3: rent in that situation, I think it's like twenty five
21:01
Speaker 3: percent of your total income, So if you're making like
21:03
Speaker 3: fifty bucks, like it's really not that much money. So
21:07
Speaker 3: I think in that scenario it's a little bit better.
21:09
Speaker 3: But I'm not too sure if our community member is
21:12
Speaker 3: in a fixed lease or if they're in a community
21:16
Speaker 3: housing house. But it wouldn't hurt to put your name
21:19
Speaker 3: down for something like that, and just and I know
21:22
Speaker 3: it sucks, but if that's like, you know, something you
21:24
Speaker 3: haven't done yet, put your name down, you don't know,
21:26
Speaker 3: like you could get a house really quickly. You could
21:28
Speaker 3: be waiting ten years. As long as you're going, you're.
21:32
Speaker 2: Got to be in it, and that will just take
21:34
Speaker 2: a little bit.
21:35
Speaker 3: Of pressure off just that rent part of the equation,
21:38
Speaker 3: but there's all these other things as well.
21:40
Speaker 4: Then I would say twenty I.
21:42
Speaker 2: Make that feels so much, I might be wrong.
21:45
Speaker 6: In this scenario, that would leave you fifteen hundred dollars
21:48
Speaker 6: for a month. And then you've got to obviously consider
21:51
Speaker 6: you know, your bills, which conservatively, maybe if you were
21:55
Speaker 6: just by yourself, would be at least what two hundred
21:58
Speaker 6: bucks a month, I would say a minimum for gas,
22:01
Speaker 6: electricy and water. And that's I would say, being conservative.
22:04
Speaker 2: It's not leaving you with much like you're making. Like
22:07
Speaker 2: if we talk about it on an annual basis, which
22:09
Speaker 2: I think really drives home what's going on. That income
22:13
Speaker 2: that we're talking about is twenty six thousand, six hundred
22:16
Speaker 2: dollars a year, and if you were paying twenty five
22:19
Speaker 2: percent of your income towards rent, that's six thousand, six
22:22
Speaker 2: hundred and sixty four dollars per year, which leaves you
22:25
Speaker 2: with about nineteen thousand dollars to spend on absolutely everything else.
22:30
Speaker 2: That's not much at all. No, that's not especially Oh
22:33
Speaker 2: my gosh, your mum sounds like a wizard.
22:34
Speaker 6: Four kids.
22:35
Speaker 2: She really is. She she needs all the credit.
22:38
Speaker 4: I know she really is a wizard.
22:40
Speaker 3: Like looking back, I actually don't know how she did
22:42
Speaker 3: it because we didn't feel like we were struggling.
22:45
Speaker 2: But she just made it work.
22:46
Speaker 1: You know.
22:46
Speaker 2: Oh, I love her. I feel like I do want
22:48
Speaker 2: to have a combat that would be such a good
22:49
Speaker 2: money direst I want somebody like your mum on the podcast.
22:53
Speaker 2: If that's you, please reach out. So there are a
22:55
Speaker 2: few things that you can do, right, Like, obviously, if
22:57
Speaker 2: you're on a disability support pension, the idea that you
23:00
Speaker 2: can work might be elusive, like it might be something
23:03
Speaker 2: that's just not an option, Like it just might not
23:05
Speaker 2: be something that you can do because it's just not
23:07
Speaker 2: going to work. But if you can work, you can
23:09
Speaker 2: actually have paid work up to twenty nine hours per week,
23:12
Speaker 2: which is like just a little bit over part time,
23:15
Speaker 2: and you can do this without losing your disability support payment.
23:19
Speaker 2: And I think it's really important to talk about this too,
23:21
Speaker 2: because as much as that is income tested, so they'll
23:24
Speaker 2: make sure Like obviously, if you're earning one hundred grand
23:26
Speaker 2: from those twenty five hours, they're going to be like, man,
23:28
Speaker 2: you don't get this. They're going to make sure that
23:31
Speaker 2: you're in the best possible position, but you also need
23:33
Speaker 2: to do the maths because sometimes it just doesn't work out.
23:37
Speaker 2: If you're on a disability support pension and you know
23:40
Speaker 2: you're actually quite stressed about it. Is that compromise worth it?
23:43
Speaker 2: Is working twenty nine hours a week going to actually
23:46
Speaker 2: put you in your mental health first and put you
23:47
Speaker 2: in the best possible position. Like, we actually need to
23:49
Speaker 2: weigh up the pros and cons and I think it's
23:52
Speaker 2: one of those things where you just never know. So
23:54
Speaker 2: when it comes to surviving on a low income, obviously
23:57
Speaker 2: all of the basics still apply. But I think the
24:00
Speaker 2: first thing we need to acknowledge though, is you're not
24:03
Speaker 2: going to be able to budget yourself out of poverty
24:05
Speaker 2: if you feel like you're in that circumstance. Like unfortunately,
24:09
Speaker 2: the services that exist here in Australia, as much as
24:11
Speaker 2: we are very very fortunate to have them, because not
24:14
Speaker 2: every country supports their community in the same way that
24:17
Speaker 2: Australia doesn't. I mean, there's going to be a lot
24:18
Speaker 2: of hot conversation around this because a lot of people
24:20
Speaker 2: think that, you know, Australia doesn't do enough, and like
24:23
Speaker 2: that's a different conversation right, Like, that's not what we're
24:25
Speaker 2: talking about now. But I think it's really about talking
24:29
Speaker 2: about the fact that one in five Australians actually living
24:31
Speaker 2: on the disability support pension. That's a lot of people.
24:34
Speaker 2: How do we budget? How do we save? And I
24:37
Speaker 2: think the first thing to do is actually again pull
24:39
Speaker 2: our heads out of the sand. If you feel like
24:41
Speaker 2: it's a terrible situation, wipe that out. It is not
24:44
Speaker 2: helping you. How good is it that? Full stop? End
24:46
Speaker 2: of story. We have an income that we can work with,
24:49
Speaker 2: What does that look like? How much money is coming in?
24:52
Speaker 2: What are your overhead expenses? How can we reduce those?
24:55
Speaker 2: What support can you reach out to? As you were
24:58
Speaker 2: saying before, beck be your favorite thing. And I feel
25:01
Speaker 2: like ego comes into it a lot, Like when I
25:03
Speaker 2: talk to people in these situations, they're like, oh, I
25:05
Speaker 2: didn't want to do it because I felt too bad,
25:07
Speaker 2: or there were people in worse off situations that may
25:10
Speaker 2: push that to a side. If you need help, you
25:12
Speaker 2: need helpful stop end of story. I don't want you
25:14
Speaker 2: to be suffering because you think somebody else has it worse,
25:17
Speaker 2: or you think that you're not eligible but you haven't checked.
25:20
Speaker 2: Please do please, go and check and don't feel ashamed
25:23
Speaker 2: to access these services. These services have such high barriers
25:28
Speaker 2: to entry that if you actually get through them, I
25:30
Speaker 2: promise you you deserve it. Like I promise you that's
25:33
Speaker 2: the position you are meant to be in. So see
25:36
Speaker 2: what you can do there. But then also get savvy.
25:38
Speaker 2: So when it comes to budgeting, there are going to
25:40
Speaker 2: be things that we can't change, like accommodation costs, Like
25:43
Speaker 2: we don't have a lot of control over those, But
25:45
Speaker 2: how do we get a little bit creative with food?
25:47
Speaker 2: We could look at our budget for that. And as
25:49
Speaker 2: much as you're probably already being super savvy, are we
25:53
Speaker 2: able to like think about the concept of bulk cooking, Like,
25:55
Speaker 2: if we're going to cook, can we rely on what's
25:58
Speaker 2: on special this week? Maybe we can backtrack what we're
26:01
Speaker 2: actually working on this We can go all right, well,
26:04
Speaker 2: I was probably going to do tacos, but actually this
26:07
Speaker 2: other thing is on sale. What can I do with this?
26:09
Speaker 2: What meals can I make that are under five bucks?
26:12
Speaker 2: What can I actually do? And I feel like it's
26:15
Speaker 2: not the sexiest conversation to have because I feel like
26:17
Speaker 2: a broken record and everyone's heard it before, right, They're
26:20
Speaker 2: like cool, here comes Victoria who thinks she knows everything
26:23
Speaker 2: about finance, and she's going to tell us to budget
26:25
Speaker 2: and scrimp and save. But I actually think it's also
26:28
Speaker 2: about taking the pressure off yourself, because, like you said,
26:31
Speaker 2: it doesn't feel good, Like you don't want to be
26:34
Speaker 2: in those circumstances, you don't want to talk about it.
26:36
Speaker 2: But like, I'm proud of you for reaching out for help.
26:39
Speaker 2: I'm proud of you that you've gone through this process,
26:41
Speaker 2: and I'm proud that you are living in a country
26:43
Speaker 2: where that's accessible to you. That's hot as hell.
26:46
Speaker 4: Absolutely, that's really cool.
26:48
Speaker 2: And I think that we need to look at it
26:50
Speaker 2: more as a pragmatic thing rather than a reflection of
26:53
Speaker 2: your value. And I think so often we tie our
26:56
Speaker 2: self worth to the income that we generate, and you
26:59
Speaker 2: assume it's incorrect, but you assume that the money you
27:02
Speaker 2: earn is reflective of how valuable you are as a
27:05
Speaker 2: human being, and that is not the case at all.
27:07
Speaker 2: In fact, it couldn't be further from the case. Like
27:09
Speaker 2: I would prefer to surround myself with people who have
27:12
Speaker 2: absolutely no income and are super kind and conscientious, and
27:16
Speaker 2: they're the type of people that are super empathetic than
27:19
Speaker 2: having really rich friends that have heaps of money and
27:21
Speaker 2: no empathy and get in getting it in, Like, it's
27:24
Speaker 2: never been the type of person that I have gravitated towards.
27:27
Speaker 2: It's one of those things that think about your circle
27:30
Speaker 2: around you. You probably have a beautiful circle. Think about
27:33
Speaker 2: the community that you're already in and the company that
27:36
Speaker 2: you keep, Like, there are so many ways to illuminate
27:38
Speaker 2: your life that don't necessarily mean spending more money. Like,
27:42
Speaker 2: I know that that sounds really flippant, but like, how
27:45
Speaker 2: grateful are we for our health? How grateful are we
27:47
Speaker 2: that the sun is shining? I mean, I'm not that
27:49
Speaker 2: grateful that the air condition is not working in the
27:51
Speaker 2: podcasts too? Yeah, but like what can you do? Can
27:55
Speaker 2: you implement some routine in your life that feels a
27:58
Speaker 2: little bit better. You might be making a cup of tea,
28:00
Speaker 2: I'm going for a walk in the mornings instead of
28:02
Speaker 2: staying at home. Like, none of these things need to
28:05
Speaker 2: be expensive, none of these things need to really impact
28:08
Speaker 2: your budget. But how do we create the life that
28:11
Speaker 2: you deserve on the income that you actually have.
28:14
Speaker 3: Sure, I don't know if this community member is in Victoria,
28:17
Speaker 3: but I know that there are you know, for example,
28:19
Speaker 3: near my house there's a outdoor pantry. I don't know,
28:22
Speaker 3: I don't know who put it there, but it's always
28:24
Speaker 3: stocked with food. So there are things like that around
28:26
Speaker 3: cheaper by miles. I'm not too sure if you've heard
28:28
Speaker 3: of it, but it's all this stuff that's either not
28:31
Speaker 3: not safe to eat, but it's kind of you know,
28:34
Speaker 3: on its last look in QR.
28:38
Speaker 2: And some things are.
28:39
Speaker 3: So in date but just haven't sold for whatever reason. Yeah,
28:43
Speaker 3: going to places like that where things are so cheap,
28:45
Speaker 3: Going to you know, communal pantries and things like that
28:48
Speaker 3: when you need to will be a really really big help.
28:51
Speaker 4: Accessing concession cards as well.
28:53
Speaker 6: If you're own disability, you probably would qualify for a
28:55
Speaker 6: concession and you would be surprised how many businesses be
28:59
Speaker 6: and small offer us some kind of concession or pension
29:02
Speaker 6: deal to help you out.
29:04
Speaker 3: And honestly, and this is really bad probably bad advice,
29:06
Speaker 3: but I would say it is very, very exhausting living
29:11
Speaker 3: like this, And I would even prioritize if you can
29:14
Speaker 3: every now and then doing something really nice for yourself,
29:17
Speaker 3: whatever that guilty pleasure is, if you can try and
29:20
Speaker 3: find a way to do that to keep your head
29:22
Speaker 3: above water and just kind of make you feel good
29:25
Speaker 3: because it is very exhausting, Yeah, on such low income
29:28
Speaker 3: for so long, So just try and remember to do
29:31
Speaker 3: that every now and then.
29:32
Speaker 2: I could not agree with that anymore than I actually
29:36
Speaker 2: love that, because I think that a lot of the
29:38
Speaker 2: time people assume that the advice coming from my side
29:40
Speaker 2: of the table would be like, well, if you have
29:42
Speaker 2: some spare income, you better say that, Like, sometimes that's
29:45
Speaker 2: actually not the best thing for your mental health. And
29:47
Speaker 2: I think that there's this balance when it comes to life.
29:50
Speaker 2: I also think one thing that you should prioritize is
29:53
Speaker 2: an emergency fund, which again very privileged. You might not
29:56
Speaker 2: have the cash flow to support that or even establish that.
29:59
Speaker 2: But even if it it's one dollar a month, one
30:01
Speaker 2: dollar a week, whatever it is that you have to
30:03
Speaker 2: the side. Maybe you've got a rebate that you didn't
30:05
Speaker 2: know was coming, Is there a way that you could
30:08
Speaker 2: put that to the side, Because I promise, once you
30:11
Speaker 2: start building up a little bit of a buffer, regardless
30:13
Speaker 2: of what your income is, the knowledge that an unexpected
30:17
Speaker 2: bill or maybe you needed to top up your mykey
30:19
Speaker 2: or your public transport card and you just completely forgot.
30:23
Speaker 2: I just think it's one of those things that a
30:25
Speaker 2: lot of us don't realize the financial freedom that can
30:28
Speaker 2: come from that. And financial freedom, to me is not
30:30
Speaker 2: necessarily you know, you might have heard, oh, we millennials
30:33
Speaker 2: who want financial freedom, like, and you assume everyone wants
30:36
Speaker 2: to be really rich. Yeah, of course people want to
30:39
Speaker 2: be rich, like that'd be great, but that's not actually
30:41
Speaker 2: what we're about. It's about creating financial freedom in the
30:43
Speaker 2: life that we have, and sometimes that is just having
30:46
Speaker 2: an extra hundred bucks to the side. That means that
30:49
Speaker 2: you sleep well at night knowing that if your kid
30:51
Speaker 2: goes to school tomorrow and something pops up and you
30:53
Speaker 2: need ten bucks, it's there and you can do that.
30:56
Speaker 2: And that's a financial freedom that I promise a lot
30:59
Speaker 2: of people would be like, oh my gosh, I wish
31:01
Speaker 2: I had that. So I feel like it's just yeah,
31:04
Speaker 2: consensus of this is actually take the pressure off and
31:07
Speaker 2: create some structure. So create some structure in your budget,
31:10
Speaker 2: create some structure in what you can do, really look
31:12
Speaker 2: at it pragmatically, what can you do and brainstorm out
31:16
Speaker 2: those things instead of just dismissing them. So I think
31:19
Speaker 2: sometimes you would go quick try. I can't change my
31:21
Speaker 2: budget for my food. It's just not happening. I've done
31:23
Speaker 2: it a million times. Have a think about it again,
31:26
Speaker 2: Maybe look at it from a different perspective. What would
31:28
Speaker 2: happen if you did one more meat free dish per week?
31:32
Speaker 2: What does that look like? How could that work like?
31:34
Speaker 2: And I know that they might not be the sexiest
31:36
Speaker 2: or the options that you immediately gravitate towards, because like fuck,
31:40
Speaker 2: lentils can get boring, but they can be really cool.
31:44
Speaker 2: And I think that it's one of those things that
31:46
Speaker 2: you know, have a look at all options from all
31:49
Speaker 2: viable sides of that equation, and you'll be in a
31:52
Speaker 2: better position. But also take the pressure off yourself because
31:54
Speaker 2: you are worth so much more than the income that
31:56
Speaker 2: comes into your bank account. And that does not dictate
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Speaker 2: who you are as a person, or how kind you are,
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Speaker 2: or how smart you are, or how important you are.
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Speaker 2: It means nothing.
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Speaker 4: Amen. Yeah, couldn't say it better.
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Speaker 2: All Right, Well, I think that's all we've got time
32:09
Speaker 2: for today because Jess and I need to go do
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Speaker 2: some planning because we have a whole extra week of
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Speaker 2: events next week, so we need to run. But Beck,
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Speaker 2: congrats on your job out of you.
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Speaker 4: Thank you so much.
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Speaker 2: Guys. We'll see you next week. Have the best weekend.
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Speaker 4: Bye bye.
32:29
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