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MONEY DIARIES: From Debt Hole to Property Portfolio! · She's On The Money

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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.
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Speaker 2: Let's get into it.
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Speaker 3: She's on the Money, She's on the Money.
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Speaker 4: Hello, and welcome to She's on the Money the podcast
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Speaker 4: a millennials who want financial freedom. Welcome back to another
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Speaker 4: one of our money diaries where we get to talk
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Speaker 4: with one of our incredible Shees on the Money community
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Speaker 4: members all about their journey. Let's jump straight in because
1:13
Speaker 4: this week I got a message and it sounded exactly
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Speaker 4: like this.
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Speaker 2: Hi, Victoria. I recently found my year.
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Speaker 4: Ten report card that flaunted c's, d's, and e's. I
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Speaker 4: dropped out in year twelve and proceeded to dive headfirst
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Speaker 4: into an eighty thousand dollar debt trap by my early twenties.
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Speaker 4: In twenty seventeen, I found myself skipping meals due to
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Speaker 4: the debt. I was in fast forward and I have
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Speaker 4: been a jack of all trades, working in everything from
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Speaker 4: childcare to funeral services. I currently work in the youth
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Speaker 4: justice system and now I salary sacrifice to my super
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Speaker 4: have almost twenty thousand dollars in my chesa's portfolio and
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Speaker 4: two investment properties, all before I turned thirty. I'm so
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Speaker 4: thrilled to share my unique journey with you and the
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Speaker 4: community Money Diarist.
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Speaker 2: What the heck? I know you did all of that
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Speaker 2: within the period of ten years I did.
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Speaker 4: Oh my lord, I am actually shook, like obviously reading
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Speaker 4: through that and like, this is wild. She's gone from
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Speaker 4: childcare to funeral services. And I fully expected you to go. Look,
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Speaker 4: I'm almost done paying off my debt, but what you
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Speaker 4: told me was so much more, and we're going to
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Speaker 4: need to dive in. I have so many questions, but
2:30
Speaker 4: I do try to be a little bit structured. So
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Speaker 4: let's start at the top. Are you ready?
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Speaker 2: I'm ready, all right, So let's.
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Speaker 4: Start with the first question I ask every money diarist
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Speaker 4: and that is, my friend, what grade would you give
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Speaker 4: your money habits from an A through to an F.
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Speaker 5: I'm going straight in for the A plus.
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Speaker 4: You're going A plus. That's a bit different to your
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Speaker 4: year ten report card.
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Speaker 5: Yeah, I'm changing that story.
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Speaker 4: Oh my gosh, you're not changing it. You have changed it.
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Speaker 4: I love it. But now the most exciting question of
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Speaker 4: the episode, my friend, can you tell me a little
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Speaker 4: bit more about your money story?
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Speaker 5: So it's obviously been all over the place. As I
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Speaker 5: mentioned in twenty seventeen, I was at a point where
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Speaker 5: I was having to skip meals and like the meals
3:14
Speaker 5: that I was eating would be like a bowl of
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Speaker 5: sweet potatoes because I bought a box of ten kilos
3:19
Speaker 5: because it was on special for eight dollars or like
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Speaker 5: something ridiculous. Like I was definitely malmourished. Like I'm so
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Speaker 5: grateful for that experience, because sitting with that experience and
3:30
Speaker 5: being in it made me realize, like, is this the
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Speaker 5: life that I want? Like this is not what I want?
3:36
Speaker 5: And so I decided, like I'd moved into state at
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Speaker 5: the time, so I was like, right, I'm not happy here.
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Speaker 5: I have no connection here because I have no money
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Speaker 5: to go out and do things and meet people. So
3:46
Speaker 5: I moved back to my hometown, and the first two
3:50
Speaker 5: weeks that I moved back, I was technically homeless, like
3:55
Speaker 5: I didn't not have a roof over my head, but
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Speaker 5: I didn't have a roof to call my own. I
3:58
Speaker 5: was living basically day by day being like, all right,
4:02
Speaker 5: whose couch can I sleep on tonight? And I just
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Speaker 5: made the choice. I was like, something has got to give.
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Speaker 5: I'm not doing this anymore, so I changed it.
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Speaker 4: Oh my gosh, tell me a bit more about how
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Speaker 4: you changed it, because I feel like so many people
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Speaker 4: are in that position where they're like, oh my gosh,
4:18
Speaker 4: it's literally day by day like I don't know what
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Speaker 4: to do, and obviously making a decision that large is
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Speaker 4: really daunting. But like, what happened next? You decided to
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Speaker 4: move back to your hometown. You then what got a
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Speaker 4: lease or what was the next step?
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Speaker 5: Yep. As soon as I moved back, I was looking
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Speaker 5: for places because I wasn't in a point in my
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Speaker 5: life where I had family that I could lean on
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Speaker 5: or you know, much of a support network. I remember
4:43
Speaker 5: there was one day I went to visit one of
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Speaker 5: my friends and I was at her house, and she
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Speaker 5: didn't know that I didn't have somewhere to stay that night,
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Speaker 5: and I kind of just lingered there until like ten pm,
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Speaker 5: until someone else had messaged me and said that I
4:53
Speaker 5: could stay there. And I was like so close to
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Speaker 5: just sleeping in my car because I didn't have somewhere.
4:58
Speaker 5: And then yeah, it was about two weeks of CouchSurfing
5:01
Speaker 5: and I got a little, tiny, crappy place, but it
5:04
Speaker 5: was aline, and I just started there and the rent
5:08
Speaker 5: was as cheap as I could find for something that
5:10
Speaker 5: was safe. I started by reading The Barefoot Investor, like yeah,
5:14
Speaker 5: everyone else ever, and then yeah, I just loved it
5:17
Speaker 5: and was like, wow, this is so empowering. I can
5:20
Speaker 5: actually change it. So then I started looking out podcasts
5:23
Speaker 5: and more books and any article I could find and
5:26
Speaker 5: just learn as much as I could.
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Speaker 2: I love it.
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Speaker 4: And tell me a bit more about this career journey
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Speaker 4: of yours. So you've been everywhere from childcare to funeral services.
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Speaker 4: When you moved back to your hometown, what were you
5:39
Speaker 4: doing for work? How are you earning an income? How
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Speaker 4: were we paying for these sweet potatoes?
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Speaker 5: So I actually worked at the funeral home before I
5:47
Speaker 5: moved into State and they were very sad that I left.
5:50
Speaker 5: And then when I moved into State. Part of the
5:52
Speaker 5: reason for deciding to move back was that I got
5:55
Speaker 5: fired from my job. While I was up to my
5:57
Speaker 5: eyeballs in debt and miserable and just everything sucked. Then
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Speaker 5: I got fired, so I was like, Okay, I need
6:02
Speaker 5: to move back. And I messaged my bosses at the
6:04
Speaker 5: funeral home and was like, Hey, any chance you need
6:08
Speaker 5: me back, and they're like, oh my god, please come back.
6:10
Speaker 5: So I was so lucky that they took me back
6:13
Speaker 5: and I had a job. But now I've ventured even
6:17
Speaker 5: further from that. My careers plural because they've been so nonlinear.
6:21
Speaker 5: I actually just got a call before this money diary
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Speaker 5: and I have an interview on Friday for a job
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Speaker 5: in finance.
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Speaker 2: Oh my gosh, congratulations. What type of role in finance?
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Speaker 5: It's just an admin role, just to get my foot
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Speaker 5: in the door.
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Speaker 2: That's okay, we all have to start there.
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Speaker 5: Yeah, And I'm so excited. And it's in a financial
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Speaker 5: planning sort of firm and they focus on sustainability and
6:42
Speaker 5: people building their futures and it just absolutely lights me up.
6:46
Speaker 5: And I really really hope I get it.
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Speaker 2: Oh, I have no doubt that you will.
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Speaker 4: With this personality, people are going to want you in
6:52
Speaker 4: their practice. I don't know what you want to do
6:54
Speaker 4: in the future, but the amount of financial advisors I
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Speaker 4: know that started in admin and then they move into
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Speaker 4: para planning, and then from para planning they move into
7:03
Speaker 4: giving some advice as an associate, and then they become
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Speaker 4: a full blown financial advisor. I feel like it is
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Speaker 4: such a common pathway, and I mean I'm biased.
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Speaker 2: I just think it's a great one.
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Speaker 5: Yeah, I agree, And I mean, obviously, I've worked so
7:15
Speaker 5: many different jobs and like probably many more that haven't
7:18
Speaker 5: even been listed in this so far, finance actually just
7:22
Speaker 5: lights me up, Like, and I've helped a few of
7:24
Speaker 5: my friends get out of their own pickles from my
7:26
Speaker 5: own experience, and I just want to keep helping more
7:29
Speaker 5: people to do that.
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Speaker 4: I love that so much because obviously I resonate with
7:33
Speaker 4: that very deeply. I was in a pickle and then
7:36
Speaker 4: I help people get out of pickles now, and I
7:38
Speaker 4: feel like sometimes having been there, it means that you're
7:42
Speaker 4: far more empathetic to the journey of others because you're like, oh, no,
7:45
Speaker 4: I really get this. It is really challenging because I
7:47
Speaker 4: think for some people who've never been there, they just go, well,
7:50
Speaker 4: you just pay off the debt, right, And it's not
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Speaker 4: that simple.
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Speaker 2: So tell me a little bit more about how you.
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Speaker 4: Went from being an eighty thousand dollars worth of debt
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Speaker 4: to owning to investment. Ah.
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Speaker 5: I know, I just like worked my butt off. Like
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Speaker 5: I worked and worked and worked, and I went to
8:08
Speaker 5: work in the morning, and then I finished work, and
8:10
Speaker 5: I went straight from work to work, and then I
8:12
Speaker 5: went home for a nap, and then I went back
8:13
Speaker 5: to work and it just was never ending.
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Speaker 2: So you had multiple roles at one time.
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Speaker 5: Yeah, Because I was in debt, I always had to
8:21
Speaker 5: have multiple jobs because my expenses were so high I
8:24
Speaker 5: couldn't afford not to. And then I've just always had
8:28
Speaker 5: multiple jobs since then, and I still do have multiple jobs.
8:32
Speaker 5: And I kind of just started learning to live on
8:36
Speaker 5: one pay and use the other pay towards my debt.
8:39
Speaker 5: And then once the debts were paid off, I was like, oh, okay,
8:42
Speaker 5: well I'm going to save for a car. And then
8:44
Speaker 5: so I started saving for a car. But once I
8:47
Speaker 5: saw tens of thousands of dollars in my bank account,
8:49
Speaker 5: I was like, what the heck, this is my money,
8:52
Speaker 5: not money that the bank loaned me. I don't want
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Speaker 5: to waste that on a car.
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Speaker 4: I love that mindset, all right. I want to get
8:58
Speaker 4: back into structured questions for a bit. Tell me now,
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Speaker 4: exactly what do you do for work? The multiple jobs
9:04
Speaker 4: and how much money do you earn for each of
9:07
Speaker 4: these jobs?
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Speaker 5: Okay, so that is like the million dollar question that
9:11
Speaker 5: my accountant always asks me and I don't know. So
9:14
Speaker 5: I work in youth justice and I work in youth
9:17
Speaker 5: support work, which are quite similar, but one's in a
9:21
Speaker 5: prison setting and one is in a home setting. Last year,
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Speaker 5: I earned somewhere between eighty and ninety thousand for the year.
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Speaker 2: Yeah, and what kind of hours are you doing for that?
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Speaker 5: I'm working casually in both of those roles, and I
9:34
Speaker 5: just do the hours that I can. I try my
9:36
Speaker 5: best to work, you know, five days a week. But
9:39
Speaker 5: I'm also studying finance, so I don't have heaps of
9:43
Speaker 5: time to work as much as I would like to,
9:46
Speaker 5: but I make it work.
9:48
Speaker 4: But eighty to ninety grand while you are studying is
9:51
Speaker 4: an epic income, which makes sense.
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Speaker 2: So tell me a bit more.
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Speaker 4: Right now, you are in the position where you've gotten
9:59
Speaker 4: out of date your own in esmate properties.
10:00
Speaker 2: What is currently your big money goal? What are you
10:02
Speaker 2: working towards?
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Speaker 5: So I can't decide. I've been thinking about this question
10:07
Speaker 5: all week because I'm like, what is my goal?
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Speaker 2: Sorry, no pressure, I don't think I have just one.
10:14
Speaker 5: I think definitely my first priority is getting my emergency
10:18
Speaker 5: fund back up to three months worth of salary, because
10:21
Speaker 5: it's currently not at that point. But I also just
10:24
Speaker 5: want to live freely after working so hard for so
10:28
Speaker 5: long to get out of get and then pivoting that
10:30
Speaker 5: to work so hard to buy properties and living so frugally,
10:34
Speaker 5: Like I want to travel, I want to do all
10:36
Speaker 5: of the things that I've been you know, limiting myself
10:39
Speaker 5: from because I've been focusing so hard on my goals.
10:43
Speaker 5: So yeah, I think just saving and just living and
10:46
Speaker 5: then pivoting for more properties in the future.
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Speaker 2: I love that.
10:49
Speaker 4: I feel like that's really relatable as well, because a
10:52
Speaker 4: lot of people will say to me, oh, V, what
10:54
Speaker 4: is your big money goal at the moment, And we're
10:56
Speaker 4: in the really fortunate position where we own our own home,
10:59
Speaker 4: and you know, I look at it and go, oh,
11:01
Speaker 4: I guess, just do more of what we've currently been doing,
11:05
Speaker 4: and like, to me, that feels a bit boring, but
11:08
Speaker 4: it's actually not. I'm like, Okay, maybe it needs to
11:10
Speaker 4: be a bit more about experience and about you know,
11:13
Speaker 4: really soaking in what we have achieved, because I think
11:17
Speaker 4: so many times people achieve things and then all they
11:19
Speaker 4: want to do is achieve more and they're not really
11:21
Speaker 4: appreciating where they've gotten to or you know, really settling
11:25
Speaker 4: into it. So I think it's really nice to hear
11:27
Speaker 4: somebody else who's like, look, I don't really know, but
11:29
Speaker 4: what I do know is that I want to do
11:31
Speaker 4: more of what I've done. Maybe we'll do more property
11:33
Speaker 4: stuff at some point, but I do want to travel
11:35
Speaker 4: and I do want to do these things and actually
11:37
Speaker 4: enjoy it.
11:38
Speaker 2: So that's really refreshing.
11:40
Speaker 5: Yeah, it is like that, because like, if it ain't broke,
11:44
Speaker 5: don't fix it. You know, like I'm loving what's happening now.
11:48
Speaker 4: You totally you don't need to be taking over the
11:51
Speaker 4: world at all times.
11:53
Speaker 5: Yes, just part time taking over the world.
11:56
Speaker 2: Yeah, part time taking over the world. I like it.
11:58
Speaker 2: Let's go to a quick break.
11:59
Speaker 4: And on the flip side, I have a whole heap
12:01
Speaker 4: of questions for you about investments. I need to know
12:04
Speaker 4: a bit more about this debt that you had. And
12:06
Speaker 4: we're going to go through invest and worse money habits,
12:08
Speaker 4: so guys, don't go anywhere.
12:14
Speaker 2: Money darist.
12:15
Speaker 4: We are back and I want to dive straight in.
12:18
Speaker 4: I know you have investments, that's the next question, but
12:21
Speaker 4: I want to know about them. So you said that
12:24
Speaker 4: you have two investment properties. How do they work? How
12:26
Speaker 4: did you get them? What other investments do you have?
12:30
Speaker 5: Okay, so I have just under twenty thousand dollars in
12:33
Speaker 5: Chase eas mm hmm. You're going to laugh at this.
12:35
Speaker 5: I have a very small amount of crypto.
12:37
Speaker 2: No, I'm not going to laugh at that.
12:39
Speaker 5: No, No, you wait, you will. I started investing there
12:43
Speaker 5: because during COVID, one of my friends is like, this
12:45
Speaker 5: coin's going to take off, Like everybody falls into that trap.
12:48
Speaker 5: And I'm currently having back and forth disputes with the
12:51
Speaker 5: crypto wallet and they have said that the contract that
12:55
Speaker 5: I invested in has expired and I can't have my money,
12:58
Speaker 5: and I'm like, but that's mine and they're my coins,
13:02
Speaker 5: and yeah, so I'm currently in disputed about that. So
13:05
Speaker 5: I don't know if I can count.
13:06
Speaker 2: That that is wild. How much is it?
13:10
Speaker 5: Look? I put in about eight.
13:12
Speaker 2: Thousand, yeah, and what is it worth?
13:15
Speaker 5: It's currently worth just under two thousand.
13:18
Speaker 2: Oh god, But you still want that money?
13:20
Speaker 5: Yeah, exactly, but they're trying to not even give me that.
13:23
Speaker 5: So it's a nightmare. So you have always been right.
13:27
Speaker 5: No one should invest in crypto.
13:31
Speaker 4: I'm not going to laugh at that. I actually feel
13:32
Speaker 4: bad about that. And once we're off air, I want
13:35
Speaker 4: to know the company. I need to know all the
13:36
Speaker 4: deats because I am nothing if not pervy.
13:39
Speaker 5: Yep. I'm happy to tell you I have just over
13:42
Speaker 5: sixty thousand dollars in super which free me.
13:46
Speaker 2: That's pretty cool, isn't it.
13:48
Speaker 5: I am actually worried about it because I would like
13:51
Speaker 5: it to be so much more than what it's projected
13:54
Speaker 5: to be in my future, so I do salary sacrifice
13:56
Speaker 5: to that as well. And as you mentioned, I have
13:59
Speaker 5: two investments properties which I can't even believe. It's actually
14:02
Speaker 5: a duplex, but they're strata titled, so their individual properties.
14:07
Speaker 2: So you got two properties for the one purchase. Yes,
14:11
Speaker 2: money win.
14:12
Speaker 5: I know. It was so exciting. I couldn't believe it,
14:14
Speaker 5: and like it's kind of typical me fashion. I was like,
14:17
Speaker 5: I'm going to buy a house this year, and I
14:18
Speaker 5: bought two. But I just like couldn't believe it, and
14:24
Speaker 5: it was so stressful. But I got so lucky because
14:27
Speaker 5: I used a buyer's agent. They were amazing. I shed
14:30
Speaker 5: so many tears, and I was so stressed and I
14:32
Speaker 5: didn't understand anything that was happening. And they made everything
14:37
Speaker 5: so simple.
14:38
Speaker 2: Oh how good.
14:40
Speaker 5: I literally couldn't have done it without them, And they
14:42
Speaker 5: made everything so simple when I made it so complicated
14:45
Speaker 5: in my head.
14:46
Speaker 4: So, how did you buy property? You saved up a deposit?
14:49
Speaker 4: What was that deposit? How much did you spend on
14:53
Speaker 4: those properties? And then after we'll get into the debt
14:55
Speaker 4: you have on it.
14:56
Speaker 5: Yes, so I paid five hundred and eighty thousand or both,
15:00
Speaker 5: so two hundred and ninety thousand each. Yeah, they're technically
15:04
Speaker 5: units and they have two bedrooms, one bathroom, and one
15:08
Speaker 5: car sace each. It's just them on the block, so
15:10
Speaker 5: it's quite a large block. I reached out to them
15:13
Speaker 5: and said, I'm looking to buy a property. Can you
15:15
Speaker 5: guys help me? And they were like, yeah, we can help.
15:18
Speaker 5: And I loved their honest approach in the discovery call
15:22
Speaker 5: that I had with them and just knew in my
15:24
Speaker 5: gut that they were the right choice for me. And
15:27
Speaker 5: then they called me and said, look, I know it's
15:28
Speaker 5: a bit soon, but we've found this amazing property that's
15:31
Speaker 5: kind of two properties, and we think it will be
15:33
Speaker 5: an amazing opportunity. And at first I was like, no, no, no, no,
15:36
Speaker 5: I don't want to do that. No, thank you, I'm fine.
15:38
Speaker 5: And then as soon as it went live on the
15:40
Speaker 5: internet for other people to see it, I was like,
15:41
Speaker 5: I've changed my mind. I wanted, I want to.
15:45
Speaker 2: I love that.
15:45
Speaker 4: I feel like you do have to make sure it's
15:47
Speaker 4: the right decision for you, though, and if that's felt
15:49
Speaker 4: too soon, there's always going to be another opportunity. Tell
15:52
Speaker 4: me a bit more about I guess how that works
15:55
Speaker 4: for you when it comes to investment. Obviously, we're investing
15:58
Speaker 4: for a return. Are you expecting those properties to increase
16:02
Speaker 4: in value? And what kind of rental yield are you getting?
16:05
Speaker 5: Yes, so I don't know the percentage of rental yield,
16:09
Speaker 5: which is studying finance. I should probably work it out,
16:13
Speaker 5: but it's currently negatively geared. Unfortunately, because interest rates are
16:17
Speaker 5: ridiculous and being a single female. The banks deemed me
16:22
Speaker 5: as higher risk, which is really rude. So I get
16:25
Speaker 5: six hundred and sixty dollars a week rent and my
16:28
Speaker 5: mortgages are eight hundred and eight dollars a week.
16:31
Speaker 4: And that's six hundred and sixty dollars for both properties rent.
16:35
Speaker 5: Yeah, so each mortgage is four hundred and four dollars
16:38
Speaker 5: a week.
16:38
Speaker 2: Yeah, okay, cool. So that's like not breaking even.
16:41
Speaker 4: But it's also not the worst outcome in the entire
16:44
Speaker 4: world to keep hold of your properties.
16:46
Speaker 5: Yeah, it's definitely manageable. And the way I looked at
16:49
Speaker 5: it because when I first found out that I was
16:51
Speaker 5: going to be out of pocket, I was like, oh no,
16:53
Speaker 5: this is not what I wanted, Like I want to
16:55
Speaker 5: buyd investment properties to get rich, not to spend more money.
16:58
Speaker 2: And the reality of the world came crashing down.
17:01
Speaker 5: Yeah, it really did. And I just kind of had
17:03
Speaker 5: a long hard look at myself and thought, right, I
17:05
Speaker 5: have been saving more than it's going to cost me
17:08
Speaker 5: to hold them, so I know that I can manage
17:10
Speaker 5: it and future me will thank me. So I'm just
17:13
Speaker 5: going to do it.
17:14
Speaker 4: Yeah, I love it, And tell me about how you
17:16
Speaker 4: originally purchased a property. So you used a buyer's agent,
17:19
Speaker 4: but had you saved up like a ten percent deposit
17:22
Speaker 4: or a twenty percent deposit? And did you use a broker.
17:25
Speaker 5: I did use a broker, and I did not have
17:27
Speaker 5: a very good experience with them.
17:29
Speaker 2: Clearly, you didn't use my brokers.
17:31
Speaker 5: No, I didn't, and it's because I was silly, and
17:35
Speaker 5: I went to one that was local and recommended to
17:39
Speaker 5: me by a friend.
17:40
Speaker 4: Sometimes they can be the best mines ever, though, so
17:42
Speaker 4: like it's worth a crack.
17:44
Speaker 5: Sometimes, Yeah, they can be, but they can also suck.
17:48
Speaker 5: So I unfortunately got the model.
17:50
Speaker 2: That's fine, I'll fix it all up for you later,
17:51
Speaker 2: don't worry.
17:53
Speaker 5: Yeah, So I went to a broker. I had just
17:56
Speaker 5: under one hundred thousand dollars in my account, but unfortunately,
18:01
Speaker 5: with stamp duty and all of those sorts of things,
18:04
Speaker 5: I ended up having to pay LMI because I didn't
18:07
Speaker 5: quite have the twenty percent. That's okay though, which was
18:11
Speaker 5: very disheartening, But I was like, you know what, at
18:12
Speaker 5: least I'm in.
18:13
Speaker 4: Sometimes, when you do the maths, paying LMI right now
18:19
Speaker 4: means that you can get into the property market today
18:22
Speaker 4: instead of waiting another three or four years to get
18:25
Speaker 4: to the amount of deposit that you might need, which
18:28
Speaker 4: essentially those properties would have increased in value during that time.
18:32
Speaker 4: So a lot of the time, historically I used to
18:34
Speaker 4: be a financial advisor, I'd sit with my clients and go, well, actually,
18:39
Speaker 4: the LMI kind of cancels itself out, and you, over
18:43
Speaker 4: the long term, end up in a better position because
18:45
Speaker 4: you got into the market sooner. And we know that
18:48
Speaker 4: being in the market is more important than being able
18:52
Speaker 4: to pick the best time right, So time in the
18:55
Speaker 4: market is the priority over you know, picking the perfect
18:58
Speaker 4: time to invest. So a lot of the times we
19:01
Speaker 4: do the maths and el am I made a lot
19:04
Speaker 4: of sense to either jump in earlier or to just
19:07
Speaker 4: pay it and go.
19:07
Speaker 2: You know what, no worries.
19:09
Speaker 4: It's not as big of an issue as I think
19:11
Speaker 4: a lot of people think it is. You just have
19:13
Speaker 4: to have a good broker, which unfortunately you didn't have.
19:16
Speaker 4: You have to have a good broker to talk you
19:17
Speaker 4: through that so that you're really comfortable with that decision
19:20
Speaker 4: if it's one you're wanting to make.
19:22
Speaker 5: Yeah, and I would definitely be using Zella next time.
19:26
Speaker 2: Thank you, We'll see you soon.
19:28
Speaker 5: I'm still grateful for it though, because it made me
19:32
Speaker 5: see what not to put up with with a broker,
19:36
Speaker 5: Like the negative experience showed me what I don't want
19:38
Speaker 5: so that next time I can do it better.
19:40
Speaker 4: No, a broker should be bending over backwards for you,
19:43
Speaker 4: and you should feel like they are basically your best
19:45
Speaker 4: property friend and you can ask them anything and they
19:48
Speaker 4: are super responsive and you never have to like poke
19:52
Speaker 4: or prod them for anything. In fact, we the ones
19:54
Speaker 4: that come back to you and go, hey, money, direst,
19:56
Speaker 4: where are.
19:57
Speaker 2: We at with this? What's going on? Oh, you're nervous?
19:59
Speaker 4: Okay, how can I help? Like, honestly, that is what
20:02
Speaker 4: a broking situation should be. They should be the person
20:05
Speaker 4: that you're like, oh my gosh, I couldn't have done
20:07
Speaker 4: it without you, because they not only got you finance,
20:10
Speaker 4: they also provided you a heap of support.
20:13
Speaker 5: I definitely didn't get that the broker that I was
20:16
Speaker 5: specifically speaking to from the office that I was dealing
20:19
Speaker 5: with when overseas and didn't even tell me oh no, no, yeah.
20:23
Speaker 5: While I was in the midst of my purchase, I
20:26
Speaker 5: was like, are you kidding me?
20:28
Speaker 2: Apparently not.
20:29
Speaker 4: Oh, sometimes people baffle me. All right, let's move on
20:35
Speaker 4: back to structured questions. My friend, I want to know
20:38
Speaker 4: what debt levels are you sitting at. We know that
20:40
Speaker 4: you purchased your properties for five hundred and eighty thousand
20:43
Speaker 4: dollars total. What does your mortgage sit out right now?
20:46
Speaker 4: And do you have any other debts?
20:48
Speaker 5: I have no other debts. I'm very proud to say
20:51
Speaker 5: that I have no consumer debt. I always stayed very
20:53
Speaker 5: far away from after pay because I knew that would
20:56
Speaker 5: be a simper slope for me. Actually, when I did
20:59
Speaker 5: get out of my debts years ago, I actually paid
21:02
Speaker 5: out that personal loan four and a half years early.
21:05
Speaker 4: Congrat How good is that? Can I be pervy? Why
21:08
Speaker 4: did you have eighty thousand dollars in debt?
21:10
Speaker 1: Like?
21:11
Speaker 2: What was that spent?
21:12
Speaker 1: On?
21:13
Speaker 5: Stupid things? Mostly cars? Like I got a new car
21:16
Speaker 5: and then I decided I didn't want that car, and
21:18
Speaker 5: then I upgraded it and just refinanced. And then I
21:21
Speaker 5: had credit cards, and every time I got a credit card,
21:23
Speaker 5: I was like, I'm gonna be good with this one,
21:25
Speaker 5: and then I was not good with that one, and
21:27
Speaker 5: it just spiraled, and I just kept refinancing and just
21:30
Speaker 5: making it bigger and bigger, and it was just silly,
21:33
Speaker 5: but it taught me what I know now, so I'm
21:37
Speaker 5: grateful for it.
21:38
Speaker 2: It's good to know how it happened.
21:40
Speaker 4: Are you now in a position where you're a bit
21:42
Speaker 4: like me and you're like, yeah, I'm not really a
21:44
Speaker 4: credit card girly, not because they're you know, the devil,
21:47
Speaker 4: but because I am when I have one in my hands. Like,
21:50
Speaker 4: do you have a credit card nowadays?
21:52
Speaker 5: No way, I'm too scared.
21:53
Speaker 2: You're like me, I can't trust me with a credit card?
21:56
Speaker 5: Yeah, no, because I just know that I am a
21:59
Speaker 5: spec and I will just go, Oh, it's fine, I'll
22:03
Speaker 5: pay it off by the end of the month, and
22:04
Speaker 5: then I'll just buy one more thing, because oh I've
22:06
Speaker 5: already bought this thing, so I'll just buy that next thing.
22:09
Speaker 2: So no, it's a slippery slope. I totally agree. All right,
22:13
Speaker 2: tell me about your mortgage. How much do you owe
22:15
Speaker 2: and how long have you got left on the loan?
22:17
Speaker 5: So the loan is only seven months old, so a
22:21
Speaker 5: long time to go. And sadly, because of the interest,
22:24
Speaker 5: the balance is actually going up instead of coming down
22:27
Speaker 5: because it's new.
22:28
Speaker 2: Don't forget this is a season of life.
22:30
Speaker 5: Yeah, so sad, so I've got five hundred and twenty
22:33
Speaker 5: three thousand owing on it.
22:35
Speaker 4: I mean that's less than what the properties are valued at.
22:38
Speaker 4: So we're in a good position still, so it's not
22:40
Speaker 4: the worst ever. But I think that sometimes we need
22:42
Speaker 4: to zoom out a bit and realize that interest rates
22:45
Speaker 4: come up and they go down over time, and sometimes
22:48
Speaker 4: you're going to go through a season of life where
22:50
Speaker 4: your property is negatively good and you do have to
22:52
Speaker 4: tip in a heap of extra cash. But that's what
22:55
Speaker 4: an investment is. It ebbs and it flows, and over
22:57
Speaker 4: the long term, hopefully it pays.
22:59
Speaker 2: To defy ends.
23:01
Speaker 4: Yes, I want to know at the very start, you said, nah,
23:04
Speaker 4: straight out the gates.
23:05
Speaker 2: I'm an A plus.
23:06
Speaker 4: Can you please give us all your A plus best
23:08
Speaker 4: money habits like we need them, my friend?
23:11
Speaker 5: So yes, we did just touch on that. I am
23:14
Speaker 5: a spender, So I think my best money habits would
23:17
Speaker 5: be that I have all my payments automated so that
23:21
Speaker 5: I don't have to go into my bank, I don't
23:22
Speaker 5: have to touch it, because that's when I bring awareness
23:26
Speaker 5: to how much I have there. And if I know
23:27
Speaker 5: how much is there, I know how much I can spend.
23:30
Speaker 5: So I make sure everything is automated. I make sure
23:33
Speaker 5: that one of my quote bills that I pay is
23:37
Speaker 5: money for me to spend.
23:39
Speaker 2: Yes. Smart.
23:40
Speaker 5: When I was in debt, I allocated every single dollar
23:43
Speaker 5: to my struggles and never had any leftover, So then
23:46
Speaker 5: I would spend money I didn't have and it would
23:48
Speaker 5: just lead to more debt.
23:49
Speaker 4: Yeah, it's a slippretty slope. How did you come up
23:52
Speaker 4: with that system? Have you implemented that yourself? Have you
23:55
Speaker 4: found a system from someone that works?
23:58
Speaker 5: I originally had the system from the Barefoot Investor, because that's,
24:03
Speaker 5: of course the first step that I took on my journey.
24:05
Speaker 5: But that never worked for me. I don't know why.
24:07
Speaker 5: I don't know if it was too simple or how
24:10
Speaker 5: it was, but that just didn't work for me. So
24:12
Speaker 5: I thought I needed something where it was more specific,
24:15
Speaker 5: where I had specific accounts that were for specific purposes,
24:18
Speaker 5: like one that's just for my car and one that's
24:20
Speaker 5: just for food, and separate like that. So every New
24:25
Speaker 5: Year's me and one of my best friends sit down
24:28
Speaker 5: together and we set our goals for the year, and
24:30
Speaker 5: we redo our budgets and set up our bank accounts
24:32
Speaker 5: and automate all of our spending.
24:34
Speaker 4: Can I join that sounds literally like my favorite way
24:36
Speaker 4: to spend New Years Like, that sounds elite, it's the best.
24:39
Speaker 5: And we watched the nine o'clock fireworks and then go
24:41
Speaker 5: to bed.
24:43
Speaker 3: No.
24:43
Speaker 2: I adore that. That is literally living to be.
24:46
Speaker 5: Yeah, and we just scribble it on a piece of
24:48
Speaker 5: paper and we just kind of brainstorm off each other
24:50
Speaker 5: and say, oh, but what about this or do you
24:52
Speaker 5: think this is going to work? And you know, do
24:54
Speaker 5: you think I can really save this much? And we
24:55
Speaker 5: just kind of pull each other up and say, there's
24:57
Speaker 5: no way you're going to save that much.
24:58
Speaker 2: That is so cool. I love it so much.
25:02
Speaker 4: So no set plan, it's back of the envelope stuff,
25:04
Speaker 4: but you've made it work for you.
25:06
Speaker 5: Yeah, and we do review it often. And one other
25:09
Speaker 5: thing that I include in that is that I always
25:11
Speaker 5: have everything paid in advance, So my rent, my phone bill,
25:15
Speaker 5: everything like that is paid in advance so that when
25:17
Speaker 5: it comes in it's already paid.
25:19
Speaker 4: I love that and I think it's really important. That's
25:21
Speaker 4: how I manage my money. That's how I wrote my
25:23
Speaker 4: money masterclass, which I'm actually going to gift you because
25:26
Speaker 4: you said you do it on the back of an envelope.
25:28
Speaker 4: Don't tell anyone, but you could share it with your
25:30
Speaker 4: friend so that she has a copy of the spreadsheet
25:32
Speaker 4: as well. But that spreadsheet, I think is going to
25:35
Speaker 4: be next level for you because it will go through
25:36
Speaker 4: everything and it actually shows you what bank accounts to
25:40
Speaker 4: put what in based on your spending, and essentially you
25:43
Speaker 4: don't have to work it out. All you have to
25:45
Speaker 4: do is say, look, this is how much I spend
25:48
Speaker 4: on all these things. These are my goals, and it
25:50
Speaker 4: will allocate it for you, which I think is the
25:53
Speaker 4: smartest thing because it kind of like turbocharges what you're
25:55
Speaker 4: already doing. And I feel like, back of an envelope,
25:58
Speaker 4: you're going to make every single dollar that you earn
26:00
Speaker 4: work as hard as you do for it by actually
26:03
Speaker 4: like having a set in place plan because I can
26:06
Speaker 4: almost guarantee even though you are an A plus and
26:09
Speaker 4: I don't disagree with that, if I went through your
26:11
Speaker 4: budget with a fine tooth comb, there would be money
26:13
Speaker 4: trickling out somewhere to something that you'd forgotten about or
26:16
Speaker 4: like it wasn't as clean as.
26:18
Speaker 2: It could be.
26:18
Speaker 4: Like, you can take it to the next level with this,
26:20
Speaker 4: So I'm going to give that to you. Obviously I
26:23
Speaker 4: don't do that all the time, but I think that
26:25
Speaker 4: that will work really well for you, and you can
26:27
Speaker 4: share it with your friend. But don't tell everybody I
26:29
Speaker 4: said you could share it, because then people might abuse
26:31
Speaker 4: my master class, which I clearly don't care about because
26:34
Speaker 4: I would much prefer people to be financially savvy. I
26:36
Speaker 4: feel like that's a good money habit, and then my
26:38
Speaker 4: money masterclass can become your next good money habit.
26:41
Speaker 5: Perfect. Thank you so much.
26:43
Speaker 4: I adore it. But let's bring it back down. I
26:45
Speaker 4: need to know what are your worst money habits. Does
26:48
Speaker 4: someone who is in A plus have bad money habits?
26:51
Speaker 5: Yes, because everybody is human. True, My worst money habits
26:55
Speaker 5: would either be blowing my budget on gifts, like I
26:59
Speaker 5: don't have a bank account for gifts, and I know
27:02
Speaker 5: that I should because gifts is one of my love languages,
27:04
Speaker 5: so I always go over the top for anybody's birthdays
27:07
Speaker 5: or celebrations or getting injectibles.
27:12
Speaker 2: I like that we just transparent.
27:15
Speaker 4: I adore that, and I like that you're really clear
27:17
Speaker 4: about it, but also we are just human. Is the
27:20
Speaker 4: best thing I've heard in a long time, especially when
27:22
Speaker 4: it comes to money and from someone who says no, no, no,
27:25
Speaker 4: I'm an A plus, Like I still make purchases that
27:29
Speaker 4: not great, but it doesn't mean I'm any less than
27:32
Speaker 4: and I'm still an A plus money Diarist. Now that
27:35
Speaker 4: we've had a chat, I feel like I'm coming to
27:36
Speaker 4: the end of this episode and I have adored it.
27:39
Speaker 4: Obviously you're an A plus, But what is it going
27:42
Speaker 4: to take over the next few years for you to
27:44
Speaker 4: stay there?
27:46
Speaker 5: I think, to just keep doing what I'm doing, and
27:49
Speaker 5: you know, if I make a mistake or I have
27:51
Speaker 5: a splurge moment, or you know, have a hormonal day
27:54
Speaker 5: and I just spend too much, or you know, compare
27:57
Speaker 5: myself to what I see online and I go and
27:59
Speaker 5: get some more bowt like just forgiving myself for that
28:01
Speaker 5: and being like, that's okay. We can just continue on
28:03
Speaker 5: the path we're going. We're still going to get there.
28:06
Speaker 5: It doesn't matter.
28:07
Speaker 2: I love that.
28:08
Speaker 4: I think it's so good Money Diarist. Unfortunately, that is
28:11
Speaker 4: all we have time for today. But it has been
28:13
Speaker 4: an absolute pleasure having you on. Thank you for sharing
28:16
Speaker 4: your story with me and for giving me the opportunity
28:19
Speaker 4: to share it with my community. They are going to
28:21
Speaker 4: love this just as much as I have loved it
28:23
Speaker 4: so thank you, my friend.
28:25
Speaker 2: It's been a pleasure.
28:26
Speaker 5: Thank you so much for having me.
28:34
Speaker 4: The advice shared on She's on the Money is general
28:37
Speaker 4: in nature and does not consider your individual circumstances. She's
28:41
Speaker 4: on the Money exists purely for educational purposes and should
28:44
Speaker 4: not be relied upon to make an investment or financial decision.
28:48
Speaker 2: If you do choose to buy a financial.
28:50
Speaker 3: Product, read the PDS TMD and obtain appropriate financial.
28:53
Speaker 2: Advice tailored towards your needs.
28:55
Speaker 3: Victoria Divine and She's on the Money are authorized representatives
28:59
Speaker 3: of Money Super p T Y L t D A
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Speaker 3: b N three two one six four nine two seven
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Speaker 3: seven zero eight a F s L four five one
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Speaker 3: two eight nine