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What is a recession? What does it mean for us? · She's On The Money

• 0:00
  Speaker 1: She's on the Money.
• 0:02
  Speaker 2: She's on the Money. Hello and welcome to She's on
• 0:14
  Speaker 2: the Money, the podcast Millennials Who Want Financial Freedom. My
• 0:18
  Speaker 2: name is Georgia King. I'm a copywriter and journalism student,
• 0:21
  Speaker 2: and each week I have the pleasure of sitting down
• 0:24
  Speaker 2: with millennial money expert Victoria Divine Victoria.
• 0:27
  Speaker 1: Hello, Hello George King, how are you good?
• 0:29
  Speaker 2: Thanks buddy. Now, today's show is one we know you
• 0:33
  Speaker 2: guys will get a lot out of, and that is
• 0:35
  Speaker 2: how to manage your money during a Recession. It was
• 0:38
  Speaker 2: announced a couple of weeks ago. Now that Australia has
• 0:40
  Speaker 2: officially entered into a recession, so we decided it would
• 0:43
  Speaker 2: be worth dedicating a whole show to unpacking what this
• 0:46
  Speaker 2: means for you and how we can be best protecting
• 0:48
  Speaker 2: ourselves financially during this time, which I guess the point
• 0:51
  Speaker 2: of it is to hopefully leave you guys feeling okay
• 0:53
  Speaker 2: about things and in control of your financial wellbeing. Now,
• 0:56
  Speaker 2: sticking to the regular format, we will also be hearing
• 0:59
  Speaker 2: from a very inspirational money diarist and we'll be answering
• 1:03
  Speaker 2: a question from a listener about whether she should move
• 1:05
  Speaker 2: out of a toxic household or if she should stay
• 1:07
  Speaker 2: put at home and save. But first, Victoria, talk to me.
• 1:11
  Speaker 2: Money wins Confessions from the week that was, what have you.
• 1:14
  Speaker 1: Got for me, Georgia King, I have not a one,
• 1:17
  Speaker 1: but two money wins for you.
• 1:19
  Speaker 2: Get out of town.
• 1:20
  Speaker 1: I know, thank you. They are both not great, but
• 1:23
  Speaker 1: I just figured if I put two together it would
• 1:25
  Speaker 1: be so much better. So first things first, right now
• 1:29
  Speaker 1: at the supermarket, dollar fifty upon it for strawberries. If
• 1:32
  Speaker 1: that's not a money win, I don't know what is fantastic.
• 1:35
  Speaker 1: Second money win. I was on a walk yesterday around
• 1:38
  Speaker 1: my five kilometer radius and was having a very delightful time, Georgia.
• 1:43
  Speaker 1: As you'd know, this weekend, the weather was absolutely gorgeous
• 1:46
  Speaker 1: here in Melbourne, so I was definitely making the most
• 1:48
  Speaker 1: of my one hour outside prison time walk. And it's
• 1:53
  Speaker 1: hard rubbish in my suburb this week, and I walked
• 1:56
  Speaker 1: past an absolutely delightful I don't know what you'd call it.
• 1:59
  Speaker 1: Is it a is it a chest of draws? Is
• 2:01
  Speaker 1: it a mix of both? I don't know. It's two
• 2:04
  Speaker 1: gorgeous draws on some really nice tapered legs, great condition,
• 2:08
  Speaker 1: fantastic wood obviously needs a little bit of a diy
• 2:12
  Speaker 1: has no handles, that's okay. I asked the old man
• 2:15
  Speaker 1: in the front yard, who was clearly doing a bit
• 2:16
  Speaker 1: of cleanup, if it was okay, because I did feel
• 2:18
  Speaker 1: a little bit weird just taking something off his front
• 2:22
  Speaker 1: front yard. So Auston, he was absolutely delighted that I
• 2:25
  Speaker 1: was actually going to do something with it, because he
• 2:27
  Speaker 1: thought it was junk. But whatever, maybe it is. Maybe
• 2:29
  Speaker 1: I've just got di looted since of forty cents fashion.
• 2:32
  Speaker 1: But I'm very excited about this chest of draws. And
• 2:35
  Speaker 1: for those of you following me on my personal Instagram,
• 2:37
  Speaker 1: you already would have seen it. I'm actually going to
• 2:40
  Speaker 1: just document my little journey of like trying to flip this. Yeah,
• 2:43
  Speaker 1: it's cheap as possible, because Georgia, it's going to become
• 2:46
  Speaker 1: a ginber in my lounge.
• 2:47
  Speaker 2: A gin ber, a ginber.
• 2:50
  Speaker 1: I'm very excited. I'm going to put some nice trays
• 2:53
  Speaker 1: with my favorite gins on top and hopefully make it
• 2:56
  Speaker 1: look as fancy as the ones I've seen online that
• 2:58
  Speaker 1: I can't quite justify.
• 3:00
  Speaker 2: Yeah. A few two hundred, a few two hundred.
• 3:03
  Speaker 3: A few too many dollares, Yeah yeah, yeah, we got
• 3:06
  Speaker 3: that dollarus love that.
• 3:07
  Speaker 1: Yeah, a few too many dollars.
• 3:09
  Speaker 2: Is this something you would usually do? I feel like
• 3:11
  Speaker 2: you are not the hard rubbish type of gal. You
• 3:13
  Speaker 2: kind of there's a different vibe to you. You're a
• 3:15
  Speaker 2: little bit fancier dumb.
• 3:16
  Speaker 1: Okay, I'm not gonna say I feel attacked by that girl,
• 3:20
  Speaker 1: but I feel a little bit disappointed. No, it's absolutely
• 3:23
  Speaker 1: something I would do, And I just think that you
• 3:24
  Speaker 1: can actually find some really cool stuff there. In saying that,
• 3:28
  Speaker 1: I'm not someone who kind of goes around looking for
• 3:30
  Speaker 1: hard rubbish, but I'm a massive believer in secondhand and
• 3:33
  Speaker 1: you know, repainting things. Growing up, my mum was so
• 3:37
  Speaker 1: savvy at being really crafty and like making things for
• 3:40
  Speaker 1: us and like you know, changing furniture and like, yes,
• 3:44
  Speaker 1: we always had like really beautiful baskets that she'd kind
• 3:46
  Speaker 1: of found thrifted in our bedrooms and if they weren't
• 3:49
  Speaker 1: the right color, should like spray paint them. And I
• 3:51
  Speaker 1: always found that really cool. So I've wanted to thrift things,
• 3:55
  Speaker 1: but I often find that it has to match with
• 3:58
  Speaker 1: my house. So for me, it's not just about finding
• 4:01
  Speaker 1: a chair on the side of the road and being like,
• 4:02
  Speaker 1: ye yay a chair, Like I was genuinely looking for
• 4:05
  Speaker 1: something to go in my laund room as a gin bar,
• 4:08
  Speaker 1: and when I saw it, I was like, oh my gosh,
• 4:09
  Speaker 1: that would be beautiful. So it was kind of like
• 4:11
  Speaker 1: a really good coincidence. And that's why it's a money
• 4:14
  Speaker 1: win because it wasn't just a free piece of furniture.
• 4:16
  Speaker 1: It's actually saving me from purchasing inside I was going
• 4:19
  Speaker 1: to anyway, Oh.
• 4:20
  Speaker 2: That's a beautiful tail mother, happy for it.
• 4:22
  Speaker 1: Thank you. We have no idea how it's going to
• 4:24
  Speaker 1: turn out. It could be horrendous. You just wait. I'm
• 4:28
  Speaker 1: going to try some diy in iso George King. Though,
• 4:31
  Speaker 1: let's move on from my terrible, my terrible, hard rubbish
• 4:34
  Speaker 1: fines to your money win or confession? What have you
• 4:37
  Speaker 1: got this week?
• 4:38
  Speaker 2: I've got a fusion this week, guys. It is a
• 4:41
  Speaker 2: double wammy like yours, which is funny. I didn't know
• 4:43
  Speaker 2: you were going to have two, but I've got two
• 4:44
  Speaker 2: as well. So my money win is off the back
• 4:47
  Speaker 2: of last week's episode. My mum bought this schmancy shampoo,
• 4:53
  Speaker 2: didn't like it, so who ends up with it? This cat?
• 4:55
  Speaker 3: Yes, money wis money win, and I was needing more
• 4:59
  Speaker 3: as as you said, last week, Like I always have
• 5:01
  Speaker 3: like seven shampoo bottles and no conditioner, like full shampoos,
• 5:05
  Speaker 3: you know what I mean?
• 5:06
  Speaker 1: Like, why is that? I feel like that's serious, That's
• 5:09
  Speaker 1: very serious. I feel like it's actually an issue. And
• 5:12
  Speaker 1: I feel like I always buy shampoo and conditioner in
• 5:14
  Speaker 1: the same sized bottles. I should learn different sized bottles.
• 5:18
  Speaker 2: The other part of my little spiel here is my confession,
• 5:22
  Speaker 2: and that is what. I just spilt half of my
• 5:24
  Speaker 2: oat milk latte on my laptop, Georgia. It's still working
• 5:27
  Speaker 2: at this point, but that could set me back a
• 5:30
  Speaker 2: couple grand in like a week.
• 5:32
  Speaker 1: So have you got the milk out?
• 5:33
  Speaker 2: Well? I just grabbed my tail from the bathroom and
• 5:35
  Speaker 2: like patted it. But I'm a bit I'm a clumsy person,
• 5:38
  Speaker 2: and mum was in the other room, so I tried
• 5:40
  Speaker 2: not to make a big deal because she would have
• 5:41
  Speaker 2: yelled at me. Anyway. I'm twenty six, so yeah, good
• 5:43
  Speaker 2: on me.
• 5:44
  Speaker 1: And you're still worried that your m's gonna yell at you.
• 5:46
  Speaker 2: I love it, but yeah, watch this space. It might
• 5:49
  Speaker 2: be fine. But let's move across now to the Facebook community. Victoria.
• 5:53
  Speaker 2: It's been a busy week. It always is busy on
• 5:55
  Speaker 2: that little page. Have any posts stood out to you
• 5:58
  Speaker 2: this week?
• 5:59
  Speaker 1: Yes, Georgia, I have one from Jessica, and she wrote
• 6:01
  Speaker 1: a beautiful post this week. She said Moneywin. Just wanted
• 6:04
  Speaker 1: to say thank you to the pod and everyone in
• 6:07
  Speaker 1: this group for their inspiring stories and for motivating me
• 6:09
  Speaker 1: to save and get my finances in order. Nine months ago,
• 6:13
  Speaker 1: my partner and I were able to purchase our first home,
• 6:16
  Speaker 1: and I normally would be one to get the trades
• 6:18
  Speaker 1: people in for help, but since being in this group,
• 6:20
  Speaker 1: I figured what's the harm in giving it a go ourselves.
• 6:23
  Speaker 1: We spray painted our whole exterior, pulled down all wallpaper,
• 6:27
  Speaker 1: ripped up the shag carpet, painted and patched every single
• 6:31
  Speaker 1: wall ourselves. And that's just the start of it. We've
• 6:33
  Speaker 1: literally done hundreds of little things ourselves and saved literally
• 6:36
  Speaker 1: tens of thousands of dollars. So thank you all. And
• 6:40
  Speaker 1: I loved this because she's got this beautiful home. Honestly,
• 6:44
  Speaker 1: it looks stunning now if you guys have seen it
• 6:46
  Speaker 1: in the post. I'm not really sure why she got
• 6:49
  Speaker 1: rid of that our sixties wallpaper, but that's another story.
• 6:51
  Speaker 2: I actually like the wallpaper. I feel like you're joking,
• 6:54
  Speaker 2: But I was like, is that the after it before?
• 6:56
  Speaker 1: Because George King would be into it, Guys.
• 6:58
  Speaker 2: I'm not joking.
• 6:59
  Speaker 1: Yeah, I know I loved it. I think Ryan John
• 7:01
  Speaker 1: even got in on this and was like, what the wallpaper? Personally,
• 7:04
  Speaker 1: I do think it's hideous. So I'm glad it's gone.
• 7:07
  Speaker 1: But Georgia, if you love it, I'm sure she might
• 7:09
  Speaker 1: have some leftover because it looks like there's more than
• 7:11
  Speaker 1: enough of that to go around. But Georgia, do you
• 7:15
  Speaker 1: have a money win from our community that you want
• 7:17
  Speaker 1: to share this week?
• 7:18
  Speaker 2: Of course I do, be so mine is from Emily.
• 7:20
  Speaker 2: It's a short and sweet one. She has scored a
• 7:23
  Speaker 2: six hundred dollars plus lequer bike the two hundred and
• 7:26
  Speaker 2: fifty dollars on Marketplace. She's shared it there. It is gorgeous,
• 7:30
  Speaker 2: got the market on the basket on the front, rather
• 7:32
  Speaker 2: little bell. It's one of those classic, like very instagrammable.
• 7:35
  Speaker 1: That's one hundred percent instagrammable and it's in this like
• 7:38
  Speaker 1: Lemone color. Would you call that Lemone cream? With your
• 7:41
  Speaker 1: Lemone ten season handles? It is ten out of ten?
• 7:45
  Speaker 2: Bike?
• 7:45
  Speaker 1: Would ride that around in Io?
• 7:47
  Speaker 2: Yeah? So as she's written there it always pays.
• 7:49
  Speaker 1: To look around one hundred percent Already, let's.
• 7:52
  Speaker 2: Move on to the main chat of today's show, how
• 7:55
  Speaker 2: to manage our money during a recession. Now, recession is
• 7:59
  Speaker 2: a word that for me, any myself included, is shrouded
• 8:02
  Speaker 2: with fear and a kind of uncertainty, as it's not
• 8:04
  Speaker 2: something we've really lived through. There was, of course, the
• 8:07
  Speaker 2: GFC of two thousand and seven, but Australia fared relatively
• 8:10
  Speaker 2: well through that. However, the recession which we are currently
• 8:13
  Speaker 2: faced with does seem a little more real, though it's daunting.
• 8:17
  Speaker 2: We wanted to use today's show to take some fear
• 8:19
  Speaker 2: out of twenty twenty and provide a simple guide on
• 8:21
  Speaker 2: the best ways to manage your finances through this recession
• 8:24
  Speaker 2: so that you feel educated and in control rather than
• 8:27
  Speaker 2: unsure and vulnerable victoria. Before we do chat through the
• 8:30
  Speaker 2: things we need to do to safeguard our finances during
• 8:33
  Speaker 2: a crisis like this, you please define exactly what a
• 8:36
  Speaker 2: recession is and what the implications are likely to be
• 8:39
  Speaker 2: for our listeners.
• 8:40
  Speaker 1: Georgia, The definition which is used by economists is two
• 8:43
  Speaker 1: consecutive quarters, and a quarter is a three month period
• 8:46
  Speaker 1: within a year. And in each and every single year,
• 8:49
  Speaker 1: there are always four quarters when an economy declines or
• 8:52
  Speaker 1: two consecutive quarters of decline in GDP, and GDP stands
• 8:56
  Speaker 1: for gross domestic product. Recently, or in the last three months,
• 9:00
  Speaker 1: Australia's GDP has fallen by seven percent, which is the
• 9:04
  Speaker 1: biggest quarterly drop since the ABS actually began tracking it
• 9:07
  Speaker 1: in nineteen fifty nine, so that's quite significant. And generally
• 9:11
  Speaker 1: when we see a recession, we see kind of like
• 9:14
  Speaker 1: a domino effect that impacts pretty much all of us.
• 9:17
  Speaker 1: So it's not something that is only going on in
• 9:19
  Speaker 1: the share market. It is going to impact every single
• 9:22
  Speaker 1: part of the world. So, just to make it really clear,
• 9:25
  Speaker 1: if the economy stops growing, businesses need to really reduce
• 9:29
  Speaker 1: their costs, which means that people are going to sadly
• 9:31
  Speaker 1: lose their jobs or portions of their salaries because we're
• 9:34
  Speaker 1: not earning as much on an individual level. And then Georgia,
• 9:37
  Speaker 1: our personal reduction in spending then impacts local businesses who
• 9:40
  Speaker 1: have always had our support before, and then they have
• 9:43
  Speaker 1: to lay off staff because they aren't making enough money,
• 9:45
  Speaker 1: and it becomes a really vicious cycle. So it is
• 9:48
  Speaker 1: not something that is just in the share market. It
• 9:50
  Speaker 1: impacts us all and that's why we have to care
• 9:53
  Speaker 1: about it, and we have to understand what is going on,
• 9:56
  Speaker 1: because at the end of the day, we can control
• 9:58
  Speaker 1: what we are going through, but we can't necessarily control
• 10:01
  Speaker 1: what's going on with our jobs. And I think it's
• 10:03
  Speaker 1: really important, especially during a period like this, that we
• 10:06
  Speaker 1: do not see this stuff as a reflection of our
• 10:08
  Speaker 1: own capabilities, which is so easy. You often see during
• 10:12
  Speaker 1: a recession an increase in mental health issues and mental
• 10:16
  Speaker 1: health decline. So I think that's really important to call
• 10:19
  Speaker 1: out really early that if something like this is going
• 10:22
  Speaker 1: to ultimately impact you, you don't feel like it's a
• 10:25
  Speaker 1: reflection on your ability as a person, because it absolutely
• 10:29
  Speaker 1: doesn't mean that at all. Recessions are, surprisingly Georgia considered
• 10:32
  Speaker 1: a really normal occurrence and a part of the regular
• 10:35
  Speaker 1: fluctuations that actually occur in a nation's economy. Like this
• 10:39
  Speaker 1: is normal. This has been predicted for a while, and
• 10:41
  Speaker 1: they are often spurred on by an economic shock or
• 10:45
  Speaker 1: unanticipated events that create really serious financial damage. Obviously, this
• 10:50
  Speaker 1: recession is due to the economic shock of coronavirus, which
• 10:54
  Speaker 1: has essentially seen the entire world closed down for months,
• 10:57
  Speaker 1: and this has sparked a recession which we kind of
• 11:00
  Speaker 1: saw coming from the beginning. And it's not like people
• 11:03
  Speaker 1: weren't predicting that. It's just what has happened and it's
• 11:06
  Speaker 1: something that we will deal with. But the important part
• 11:08
  Speaker 1: to understand is that regardless of how long a recession lasts,
• 11:12
  Speaker 1: we do come out of it at the other side.
• 11:14
  Speaker 2: And what would you say, just to go back to
• 11:16
  Speaker 2: that question, what will the implications likely be for our listeners.
• 11:20
  Speaker 1: So in terms of what a recession actually looks like
• 11:22
  Speaker 1: and what it means for our listeners. In short, the
• 11:25
  Speaker 1: answer is it's going to look so different for everybody.
• 11:28
  Speaker 1: Generally speaking. Employment rates are greatly reduced, which we know
• 11:32
  Speaker 1: is the case in Australia, especially right now. Lots of
• 11:35
  Speaker 1: businesses close as they can't afford to stay open, the
• 11:38
  Speaker 1: value of stocks they plummet, wages are reduced, and there
• 11:41
  Speaker 1: is a rise in poverty. Sadly, people stop spending, there's
• 11:45
  Speaker 1: a higher government borrowing, and so on and so forth.
• 11:48
  Speaker 1: On a day to day level, though for our listeners,
• 11:50
  Speaker 1: I would say that the main thing that could be
• 11:52
  Speaker 1: compromised is employment and the ability to save and the
• 11:55
  Speaker 1: ability to get ahead financially, which if you're listening to
• 11:59
  Speaker 1: this podcast, I'm assuming is a priority for you. It
• 12:02
  Speaker 1: can also have a massive impact on our mental health,
• 12:05
  Speaker 1: which I touched on before, but we spoke about it recently, Georgia.
• 12:09
  Speaker 1: So if you go back and listen to our Money
• 12:10
  Speaker 1: and Mental Health episode, I think that was a really
• 12:13
  Speaker 1: powerful one because at the end of the day, nothing
• 12:15
  Speaker 1: is stable. We're really unsure of our finances, and we
• 12:18
  Speaker 1: can be really stressed out and actually become quite depressed
• 12:21
  Speaker 1: and vulnerable if we don't feel like we're in control
• 12:24
  Speaker 1: of our personal budgets. So, Georgia, this recession is going
• 12:27
  Speaker 1: to differ from the ron that we had between seven
• 12:30
  Speaker 1: and O nine, you remember Kevin O seven, but in
• 12:33
  Speaker 1: that it's going to really impact those in lower income areas,
• 12:37
  Speaker 1: like the leisure and tourism sectors, obviously because of coronavirus.
• 12:41
  Speaker 1: So while many of us are actually able to work
• 12:43
  Speaker 1: from home, those who can't will be absolutely more adversely
• 12:47
  Speaker 1: impacted as a consequence of this, which is really sad.
• 12:50
  Speaker 1: And we've already seen this for like the last six months.
• 12:53
  Speaker 1: So yeah, that's where out George King.
• 12:56
  Speaker 2: So how long you probably, I don't know if you
• 12:57
  Speaker 2: can answer this, but how long does a recept typically last.
• 13:01
  Speaker 1: Look Sadly, I can't actually answer this, and it totally varies.
• 13:05
  Speaker 1: And this imple answer is that we don't know. I'm
• 13:07
  Speaker 1: not going to pretend to be like, oh my gosh,
• 13:08
  Speaker 1: last for a year, last for four years, it'll last
• 13:11
  Speaker 1: for twelve years, like we cannot tell you how long
• 13:13
  Speaker 1: it's going to last. And I think that coronavirus is
• 13:16
  Speaker 1: going to be incredibly tied to this recession, and as
• 13:20
  Speaker 1: soon as we understand what's going on with COVID, we're
• 13:23
  Speaker 1: going to be able to understand what the financial or
• 13:26
  Speaker 1: the lasting financial impacts of a recession are going to
• 13:29
  Speaker 1: look like. So instead of having the global financial crisis,
• 13:32
  Speaker 1: whilst where ninety nine point ninety five percent of people
• 13:35
  Speaker 1: did not predict that once it started happening, people could
• 13:38
  Speaker 1: see where they fell short, whereas a virus is something
• 13:41
  Speaker 1: that we don't ultimately have control over the spread of,
• 13:44
  Speaker 1: and once we understand what's going on there, we'll be
• 13:46
  Speaker 1: better able to work out what this recession actually looks
• 13:50
  Speaker 1: like and the bigger impacts of it.
• 13:52
  Speaker 2: So instead of me talking at length and jumping in
• 13:54
  Speaker 2: with my questions, we thought it may be more digestible
• 13:57
  Speaker 2: to list the four most important things can be doing
• 14:00
  Speaker 2: to manage our money during a recession.
• 14:02
  Speaker 1: A love a list, Georgia. This is going to work
• 14:04
  Speaker 1: really well.
• 14:05
  Speaker 2: So the first step is to pay down our debts
• 14:08
  Speaker 2: as soon as possible. Can you please talk us through
• 14:10
  Speaker 2: why this is such an important step?
• 14:12
  Speaker 1: Obviously, debt reduction is one of the things I talk
• 14:15
  Speaker 1: about a lot on Cheese on the money and eradicating
• 14:17
  Speaker 1: bad debt is something that we are all striving towards,
• 14:20
  Speaker 1: but it is especially important during a recession. So during
• 14:23
  Speaker 1: a recession there are job losses which we've already seen
• 14:26
  Speaker 1: hundreds of thousands of them happening here in Australia, and
• 14:29
  Speaker 1: many people see their income decrease with little to no notice,
• 14:32
  Speaker 1: which can be absolutely devastating if you have repayments to
• 14:36
  Speaker 1: make that you can no longer afford. If you are
• 14:38
  Speaker 1: still employed and have debts, The main debt I want
• 14:40
  Speaker 1: you to really focus on paying down if it's possible
• 14:43
  Speaker 1: for you, is bad debt, and this is credit cards
• 14:46
  Speaker 1: and personal loans, so basically any debt that has a
• 14:49
  Speaker 1: high interest rate related to it. I really want you
• 14:52
  Speaker 1: to prioritize and concentrate on if you can get on
• 14:54
  Speaker 1: top of them now, then if the worst should happen
• 14:58
  Speaker 1: to you and you do lose your job, you're finances
• 15:00
  Speaker 1: won't be completely derailed because you've currently got a safety
• 15:03
  Speaker 1: net for yourself. But if you do have multiple personal loans,
• 15:06
  Speaker 1: you could make things a little bit more streamlined by
• 15:08
  Speaker 1: consolidating your debts. It is absolutely not integral right now,
• 15:12
  Speaker 1: Georgia for you to be paying off your HEX early,
• 15:14
  Speaker 1: as that's not alone that includes a high interest rate,
• 15:16
  Speaker 1: or any interest rate at all. So don't feel as
• 15:19
  Speaker 1: though during a procession you need to be making extra
• 15:21
  Speaker 1: contributions to those I care, far far more about concentrating
• 15:25
  Speaker 1: on your bad debt and concentrating on building a solid
• 15:28
  Speaker 1: emergency fund for you. I think at this point it's
• 15:31
  Speaker 1: also really important to remind you that whilst I know
• 15:33
  Speaker 1: a number of people in our community are focusing on
• 15:36
  Speaker 1: paying down their HEX debt earlier, which you know, you go,
• 15:39
  Speaker 1: friend like, do whatever makes you happy. If you do
• 15:43
  Speaker 1: not have a job, you do not have to pay
• 15:45
  Speaker 1: your HEX step back, So don't feel stressed or pressured
• 15:49
  Speaker 1: that if that happens, you've got one hundred thousand dollars
• 15:51
  Speaker 1: looming because you're in a situation where you have a
• 15:54
  Speaker 1: super high hex you only have to pay that back
• 15:56
  Speaker 1: once you meet a certain threshold. Really important as well
• 16:00
  Speaker 1: your debts and prioritize them. So I've talked about the
• 16:03
  Speaker 1: snowballing method, or you could use the avalanche method and
• 16:06
  Speaker 1: go back and listen to our debt episodes if you
• 16:08
  Speaker 1: don't know what I'm referring to, but use a method
• 16:11
  Speaker 1: to get rid of your debts and create a plan.
• 16:14
  Speaker 1: That's really really important. And if you are struggling or
• 16:17
  Speaker 1: have been let go and you don't have any idea
• 16:20
  Speaker 1: what to do, please remember our friends at the National
• 16:23
  Speaker 1: Debt Helpline, which is a service that gives you access
• 16:25
  Speaker 1: to financial counselors for free. Like these guys will actually
• 16:29
  Speaker 1: help you figure out a plan to move out of
• 16:31
  Speaker 1: debt and won't cost you anything. They are absolute legends
• 16:34
  Speaker 1: and some of the kindest people I know. We also
• 16:37
  Speaker 1: know that many banks are actually quite sympathetic to the
• 16:40
  Speaker 1: current situation, So give your bank lender a call and
• 16:43
  Speaker 1: see if they are offering either a financial hardship plan
• 16:46
  Speaker 1: or if you can differ some payments because you're definitely
• 16:49
  Speaker 1: not the only person feeling this way, and it's definitely
• 16:51
  Speaker 1: best to call and see if you can pause a
• 16:53
  Speaker 1: repayment rather than just missing it and racking up late
• 16:56
  Speaker 1: fees and getting into more debt and feeling really overwhelmed.
• 17:00
  Speaker 1: At the end of the day, these are things that
• 17:01
  Speaker 1: are beyond our control, and I think it's really really
• 17:04
  Speaker 1: important to just put your hand up and be like, cool,
• 17:07
  Speaker 1: something's impacting me. What can we do about it? Like
• 17:09
  Speaker 1: take the judgment away, take the bad feelings that you
• 17:13
  Speaker 1: potentially have about this away, and just ask. Because if
• 17:17
  Speaker 1: you don't ask, you don't get. And at the end
• 17:20
  Speaker 1: of the day, I know for sure, if you will
• 17:22
  Speaker 1: put in a position where someone said, look, let's just
• 17:25
  Speaker 1: defer that debt for six months, you would sleep so
• 17:28
  Speaker 1: much better during that time instead of wondering, oh my gosh,
• 17:31
  Speaker 1: what am I going to do about my home loan
• 17:32
  Speaker 1: or what am I going to do about my personal debt?
• 17:35
  Speaker 1: Like at the end of the day, the banks want
• 17:37
  Speaker 1: their debts paid back, so they're going to put you
• 17:39
  Speaker 1: in a position where you can pay back that debt reasonably.
• 17:43
  Speaker 1: But they are also very aware of the recession. They
• 17:45
  Speaker 1: are also very aware of what's going on with the
• 17:47
  Speaker 1: current economic situation. So I think just put your hand up,
• 17:50
  Speaker 1: ask for help when you need it, don't be too
• 17:52
  Speaker 1: proud like it's not a good idea, and then George
• 17:55
  Speaker 1: to continue my rant. Once your debts are paid down,
• 17:58
  Speaker 1: we really need to focus on building up your emergency
• 18:01
  Speaker 1: fund now. I don't believe in just getting rid of
• 18:04
  Speaker 1: all your debt and then focusing on an emergency fund.
• 18:07
  Speaker 1: I think that regardless of what debt you're in, you
• 18:10
  Speaker 1: should be creating an emergency fund. At the same time,
• 18:12
  Speaker 1: getting out of debt is really important. But if you're
• 18:15
  Speaker 1: putting in yourself in a position where you do not
• 18:17
  Speaker 1: have an emergency fund at all, and something bad happens,
• 18:21
  Speaker 1: you're going to end up in even more debt, which
• 18:24
  Speaker 1: is a terrible idea. So I talk about this a lot,
• 18:27
  Speaker 1: and there is no right or wrong when it comes
• 18:30
  Speaker 1: to having an emergency fund. Like, as I've said before,
• 18:33
  Speaker 1: I have clients who have three months worth of their
• 18:34
  Speaker 1: living expenses. I have a client who has three years
• 18:37
  Speaker 1: worth of her living expenses in her account. It is
• 18:40
  Speaker 1: so up to you what sits in that account. But
• 18:43
  Speaker 1: put in an account some money that would make you
• 18:46
  Speaker 1: sleep well at night, that would help you be in
• 18:48
  Speaker 1: a position where if you're suddenly out of work, you're
• 18:52
  Speaker 1: not in a position where you can't afford your grocery bill.
• 18:55
  Speaker 1: So for me, that is absolutely the priority. And Georgia,
• 18:59
  Speaker 1: I'll let you move on to step two because I
• 19:01
  Speaker 1: am very good at rant.
• 19:02
  Speaker 2: No, it's all good, I'm loving it, all right. So
• 19:04
  Speaker 2: the next step, which I think probably most of us
• 19:07
  Speaker 2: knew was going to be on this list, is to
• 19:09
  Speaker 2: overhaul our budget and cash flow and also limit our
• 19:13
  Speaker 2: non essential spending where possible. Can you please talk about
• 19:16
  Speaker 2: why this is such an important step now?
• 19:18
  Speaker 1: I talk about budget and cashlow all the time because
• 19:20
  Speaker 1: I truly believe that it is the only way we
• 19:22
  Speaker 1: can take control of our finances. Obviously, I'm wildly passionate
• 19:26
  Speaker 1: about investing and creating financial freedom. But if you don't
• 19:29
  Speaker 1: understand your budget and cash flow, you can't create financial freedom,
• 19:33
  Speaker 1: you can't start investing, you can't actually have an impact,
• 19:36
  Speaker 1: and you don't know what that IMPACT's going to be.
• 19:38
  Speaker 1: So if you listen to our recent budgeting and Cashlow episode,
• 19:41
  Speaker 1: you wouldn't always spoke at length about how to get
• 19:43
  Speaker 1: a handle on your budget and cash flow, and it
• 19:45
  Speaker 1: really just means establishing and understanding the money that you
• 19:49
  Speaker 1: have coming in versus the money going out, and where
• 19:51
  Speaker 1: your money is allocated to. Personally, I believe that it
• 19:55
  Speaker 1: is the best way to make sure that you are
• 19:57
  Speaker 1: putting yourself in a good financial position. And it's actually
• 20:01
  Speaker 1: the way I personally ensure that my spending remains in
• 20:04
  Speaker 1: line with my values and keeps me on track financially,
• 20:07
  Speaker 1: so that I know what I can spend. And it's
• 20:09
  Speaker 1: stupidly important during a financial climate lack now Like to me,
• 20:13
  Speaker 1: it's really really important to be in control of these things.
• 20:16
  Speaker 1: I think we really need to take our heads out
• 20:18
  Speaker 1: of the sand Georgia and just stop being worried about
• 20:21
  Speaker 1: checking our bank accounts. Like, remember it is what it
• 20:24
  Speaker 1: is like. Do not judge past you for you know,
• 20:27
  Speaker 1: the spending habits you had, or the debt you got
• 20:30
  Speaker 1: in or things that you regret, Like, there's no point
• 20:33
  Speaker 1: regretting anything. There is no point putting yourself in a
• 20:36
  Speaker 1: position where you are judging yourself or feeling overwhelmed or
• 20:40
  Speaker 1: upset about looking at it. And I know this is
• 20:42
  Speaker 1: common because I get so many messages from people They're
• 20:45
  Speaker 1: saying like, oh, Victoria, you talk about budgets. Really want
• 20:48
  Speaker 1: to start budgeting, but I just get so anxious looking
• 20:51
  Speaker 1: at my bank accounts. Like I get that, but at
• 20:54
  Speaker 1: the same time, don't feel bad looking at bank accounts.
• 20:57
  Speaker 1: It is what it is. Also, if you can cut
• 21:00
  Speaker 1: back on spending, I've mentioned this on the show before,
• 21:03
  Speaker 1: print out your last month of spending, take two highlighters
• 21:06
  Speaker 1: to signal essential and non essential spending, and then ask
• 21:09
  Speaker 1: yourself if there are any ways to cut down non
• 21:12
  Speaker 1: essential spending so that you can save a little bit more.
• 21:15
  Speaker 1: So it might be ubre, It's might be takeaway coffee,
• 21:17
  Speaker 1: it might be that online shopping that you're doing that
• 21:20
  Speaker 1: is building up anything that is sabotaging your saving efforts.
• 21:24
  Speaker 1: It's going and put you in a better financial position. Also, Georgia,
• 21:28
  Speaker 1: negotiation really important. Can you negotiate a lower interest rate
• 21:33
  Speaker 1: on your personal loan? Can you negotiate rates and payments?
• 21:36
  Speaker 1: There is absolutely no harm in asking. Can you call
• 21:39
  Speaker 1: your energy company and ask for a better deal. Can
• 21:41
  Speaker 1: you go on a comparison website and see if you're
• 21:43
  Speaker 1: getting the best value, like get bang for buck, especially
• 21:47
  Speaker 1: right now, all the little things they are going to
• 21:49
  Speaker 1: add up. And then Georgia. Another one is housing costs.
• 21:54
  Speaker 1: We know that housing is one of the biggest expenses
• 21:56
  Speaker 1: we have to fund, So consider where you can save
• 21:59
  Speaker 1: some money here, especially right now if you're renting, can
• 22:01
  Speaker 1: you read somewhere cheaper? If you actually own your own home,
• 22:05
  Speaker 1: refinancing right now to a lower interest rate could save
• 22:08
  Speaker 1: you so much money. We are actually in a very
• 22:11
  Speaker 1: lucky position. And I'm not sure if other people are
• 22:13
  Speaker 1: going to see it this way, but I see it
• 22:14
  Speaker 1: this way. Is that every other time we have been
• 22:18
  Speaker 1: in a recession, we've had really high interest rates on
• 22:21
  Speaker 1: home loans, whereas arguably we have some of the lowest
• 22:25
  Speaker 1: or we have the lowest interest rates at the moment, Like,
• 22:28
  Speaker 1: we can refinance your home loans to like two point
• 22:32
  Speaker 1: five percent quite easily, and that's something that we've never
• 22:35
  Speaker 1: seen before. And I think that that not never, but
• 22:38
  Speaker 1: you know, it's really really uncommon. So I think now
• 22:41
  Speaker 1: is a really great time to go. You know, what
• 22:43
  Speaker 1: can I save here? Because two point five percent? I know,
• 22:46
  Speaker 1: twenty years ago it was eighteen percent to get a
• 22:48
  Speaker 1: home loan, So at least we are not going through
• 22:50
  Speaker 1: a situation where we have eighteen percent home loans and
• 22:53
  Speaker 1: we are also taking on bigger loans. I'm not saying that,
• 22:57
  Speaker 1: you know, there aren't heaps of other factors in place,
• 22:59
  Speaker 1: like Don't get me wrong, I'm not saying, oh my god,
• 23:01
  Speaker 1: money is so cheap now, like just buy a property.
• 23:03
  Speaker 1: It's not the case at all. It's more just be
• 23:05
  Speaker 1: aware of this and you know, save money where you
• 23:08
  Speaker 1: can also really great. Can you compliment your earnings with
• 23:12
  Speaker 1: a side hustle or a second revenue stream that would
• 23:15
  Speaker 1: be so helpful. So Finder or our friends from Finder
• 23:19
  Speaker 1: found that you can earn up to ten four hundred
• 23:21
  Speaker 1: and ninety dollars per year with a side hustle. So
• 23:23
  Speaker 1: if you can consider the skills that you do have
• 23:25
  Speaker 1: and potentially monetize them, there could be a fair bit
• 23:28
  Speaker 1: of money in that. And we've seen a lot of
• 23:30
  Speaker 1: our community take to sewing masks at a time like
• 23:32
  Speaker 1: this as a really incredible little side gig with some
• 23:35
  Speaker 1: people jump on survey websites and air Tasker all a
• 23:38
  Speaker 1: great little money spiders and even Georgia. This week, I
• 23:42
  Speaker 1: was talking to one of my girlfriends and she said
• 23:44
  Speaker 1: that she was on Air Tasker just doing coffee. You're
• 23:46
  Speaker 1: writing jobs. It was like oh, I'm just responding to
• 23:48
  Speaker 1: people who want help writing their websites. Like, I didn't
• 23:51
  Speaker 1: even know that was a thing on Air.
• 23:52
  Speaker 2: Task That was you never know what there's a demand
• 23:55
  Speaker 2: for out there, right, like.
• 23:56
  Speaker 1: You percent honestly I thought airs for lak. You know, hey,
• 24:02
  Speaker 1: I have a table in Newport that I want picked
• 24:05
  Speaker 1: up and brought over to moll. Yeah, like I thought
• 24:07
  Speaker 1: that was a thing. Turns out the air Tasker is
• 24:10
  Speaker 1: so much more than that. So I think it's just
• 24:11
  Speaker 1: about you know, putting a hand up and having a
• 24:13
  Speaker 1: bit of a look around and seeing what you can do.
• 24:16
  Speaker 1: But even things like online surveys can be quite lucrative.
• 24:19
  Speaker 1: Like you know, I'm not saying you're gonna earn millions
• 24:22
  Speaker 1: from it, but like, can we please remember that cash
• 24:25
  Speaker 1: flow is cash flow, and any type of side hustle
• 24:29
  Speaker 1: is a hustle. Like it is amazing. Do a survey
• 24:32
  Speaker 1: takes twenty minutes, you might get five or ten dollars.
• 24:34
  Speaker 1: That's five or ten dollars you didn't have before.
• 24:37
  Speaker 2: Yeah, So just on that, guys, if you are struggling
• 24:39
  Speaker 2: with saving we obviously did a big bumper episode on
• 24:43
  Speaker 2: our saving Hacks last week. I actually I put it
• 24:47
  Speaker 2: out to the group to let me know their favorite
• 24:50
  Speaker 2: saving hacks, and I have compiled them into the biggest
• 24:53
  Speaker 2: blog post you've ever seen, so I might publish that.
• 24:55
  Speaker 1: I love it. I haven't even read it yet.
• 24:57
  Speaker 2: I know you've yet to be published, so I'll okay,
• 25:00
  Speaker 2: come up on Wednesday and everyone can have a read.
• 25:02
  Speaker 4: Ah.
• 25:02
  Speaker 2: Yeah, it'll be exciting. But yes, go over that to
• 25:05
  Speaker 2: see if there are some extra ways you can save.
• 25:08
  Speaker 2: So the next step here is to not sell our shares.
• 25:12
  Speaker 2: If we are investing, can you please talk through why
• 25:15
  Speaker 2: now is not the time to be selling our stocks
• 25:18
  Speaker 2: and how how should we be investing if we are
• 25:21
  Speaker 2: thinking of doing so right now? Is it a horrible
• 25:23
  Speaker 2: time to invest? Is it a good time?
• 25:24
  Speaker 1: All right? So there's no good slash bad time to invest? Sadly,
• 25:28
  Speaker 1: if I could tome the markets, i'd be a very
• 25:30
  Speaker 1: rich lady Georgia King. But at the end of the day,
• 25:33
  Speaker 1: I think it's really important, Like if you have not
• 25:35
  Speaker 1: listened to our investing episodes, and there are two of
• 25:38
  Speaker 1: them back in season one, go and listen to them
• 25:41
  Speaker 1: because we need to really deeply understand emotional investing and
• 25:45
  Speaker 1: how our emotions actually play into the way that we
• 25:49
  Speaker 1: make decisions about our money and the way that we
• 25:51
  Speaker 1: make decisions about shares. We know, during the global financial crisis,
• 25:56
  Speaker 1: and now this is obviously a very, you know, a
• 25:58
  Speaker 1: large thing to say, but a lot of people lost
• 26:00
  Speaker 1: a lot of money because they panic sold. And at
• 26:04
  Speaker 1: the end of the day, those people that were able
• 26:06
  Speaker 1: to hold their shares during the global financial crisis and
• 26:09
  Speaker 1: come out the other side are far wealthier today because
• 26:13
  Speaker 1: of it. So I think it's really important to not
• 26:15
  Speaker 1: panic sell your shares because you see them decrease in value.
• 26:19
  Speaker 1: It's really important to remember that a decrease in value
• 26:22
  Speaker 1: is not real lost money on your behalf. You are
• 26:25
  Speaker 1: only losing money Georgia if you are pulling that money
• 26:29
  Speaker 1: out of the share market and crystallizing those losses, which
• 26:32
  Speaker 1: means accepting those losses. So you might have a share
• 26:35
  Speaker 1: that's worth ten dollars Georgia, and then you go and
• 26:37
  Speaker 1: you look at the ASX and you're like, oh my gosh, Georgia,
• 26:40
  Speaker 1: it is worth you know, six dollars that it's plummeting.
• 26:44
  Speaker 1: I don't want to lose all my money. And you
• 26:46
  Speaker 1: pull your share out, you get your six dollars and
• 26:48
  Speaker 1: you walk away. What you're doing is accepting six dollars
• 26:52
  Speaker 1: for that share instead of waiting for that share to
• 26:55
  Speaker 1: increase back in value, and it might come back to
• 26:57
  Speaker 1: ten dollars, might go to eleven dollars. Do you know what?
• 27:00
  Speaker 1: It might even drop down to two dollars, But you
• 27:03
  Speaker 1: still own that one entire share and you only lose
• 27:07
  Speaker 1: money if you accept to sell that. Does that make sense?
• 27:10
  Speaker 1: I feel like I get on this high horse all
• 27:12
  Speaker 1: the time, and it makes a lot of sense. But
• 27:14
  Speaker 1: our emotions come into play, and I'm not gonna lie.
• 27:18
  Speaker 1: Obviously I'm an investor. When I see a drop in
• 27:21
  Speaker 1: my portfolio, I feel a little bit sick. I get
• 27:23
  Speaker 1: a little bit antsy, and I should know better, Like
• 27:26
  Speaker 1: I have a podcast on this stuff. But I'm not
• 27:29
  Speaker 1: going to say, by any stretch of the imagination that
• 27:31
  Speaker 1: I don't feel anxious when I see a loss on paper.
• 27:36
  Speaker 1: It does make you feel anxious. What we need to
• 27:38
  Speaker 1: do is make sure that we are educated enough to
• 27:40
  Speaker 1: make the right decision for us, and not invest via
• 27:43
  Speaker 1: how we are feeling. Because often we will invest or,
• 27:47
  Speaker 1: you know, sell shares when they go low, but then
• 27:49
  Speaker 1: also we'll buy shares when they're really overpriced.
• 27:52
  Speaker 2: YEA.
• 27:52
  Speaker 1: Like right now we're seeing in our Facebook group a
• 27:54
  Speaker 1: lot of people posting about Tesla and after Pay. We're like,
• 27:58
  Speaker 1: oh my gosh, I bought after pay share. I bought
• 28:00
  Speaker 1: Tesla's shares, And you're like, wow, congratulations, Like you know,
• 28:03
  Speaker 1: you took a punt as a financial advisor. I don't
• 28:06
  Speaker 1: usually take a punt at all. I didn't buy these,
• 28:09
  Speaker 1: but you would have seen posts in our community about
• 28:11
  Speaker 1: people buying after pay. But at the same time, like
• 28:14
  Speaker 1: a lot of other people saw those and they're like, wow,
• 28:16
  Speaker 1: George King made a lot of money on after pay.
• 28:19
  Speaker 1: I'm going to go buy some That's a great investment
• 28:22
  Speaker 1: when that share is actually overpriced. So I think it's
• 28:25
  Speaker 1: really important to just you know, stay in your own lane,
• 28:28
  Speaker 1: watch your own stuff, and understand why you want to
• 28:31
  Speaker 1: make that decision. It is not saying, Georgia that if
• 28:34
  Speaker 1: you need access to that money, you shouldn't pull it out.
• 28:37
  Speaker 1: You know, if you lose your job and end up
• 28:39
  Speaker 1: in a situation where you need access to that, then
• 28:42
  Speaker 1: I totally get it. It is very different to panic
• 28:44
  Speaker 1: selling and selling something because you're worried about a future loss.
• 28:48
  Speaker 1: So for me, Yes, it's really important, really important to
• 28:51
  Speaker 1: remember that the share market is long term, Like it's
• 28:53
  Speaker 1: not just a six week or six month period that
• 28:55
  Speaker 1: you're investing. And I think it's really really important to
• 28:58
  Speaker 1: just understand that and you know, make sure that you're
• 29:00
  Speaker 1: staying solid on the decisions that you're making and not
• 29:04
  Speaker 1: being emotional about money decisions.
• 29:06
  Speaker 2: Yeah, and it does. It completely makes sense that people
• 29:08
  Speaker 2: would be emotional about it right now, like it's a
• 29:11
  Speaker 2: very fraught time. One of my friends actually did just
• 29:15
  Speaker 2: panic sell their shares and I was like, dude, why
• 29:19
  Speaker 2: did you do that? You literally had that stock for
• 29:21
  Speaker 2: like eight weeks And he was like, nah, I just can't.
• 29:24
  Speaker 2: I was like, ah, what would Victorious say? But yeah,
• 29:28
  Speaker 2: and I get it.
• 29:29
  Speaker 1: But that's really important, right Like, I feel like this
• 29:32
  Speaker 1: is such a convoluted area because you can obviously go
• 29:35
  Speaker 1: and buy shares yourself. It is not hard to go
• 29:38
  Speaker 1: and purchase the share there are so many platforms to
• 29:40
  Speaker 1: do that on. But seeing a financial advisor is going
• 29:43
  Speaker 1: to make sure that those shares are in line with
• 29:45
  Speaker 1: your values. And you get it and you're able to
• 29:47
  Speaker 1: sleep all at night and you fully understand the decisions
• 29:50
  Speaker 1: that you're making around it, and you also have someone
• 29:52
  Speaker 1: on your team who can bounce ideas off and go ah,
• 29:54
  Speaker 1: Victoria like can we sell those? I'm so stressed And
• 29:57
  Speaker 1: I sit you down and go, hey, all right, Georgia,
• 30:00
  Speaker 1: is that a good idea or not? And I think
• 30:02
  Speaker 1: that that's a really important thing to have and having
• 30:05
  Speaker 1: someone on your team is really important. But also if
• 30:08
  Speaker 1: you're thinking about it, like, that's what the She's on
• 30:09
  Speaker 1: the Money community is for as well. Whilst we can't
• 30:12
  Speaker 1: provide you personal advice, we can definitely you know, remind
• 30:15
  Speaker 1: you about emotional investing post in the group be like hey,
• 30:19
  Speaker 1: I'm really stressed out, Like, we can absolutely be on
• 30:21
  Speaker 1: your team. So that's what we are for one.
• 30:24
  Speaker 2: So sav if someone came to you like they're new
• 30:27
  Speaker 2: to She's on the Money and they're like, wow, investing
• 30:29
  Speaker 2: sounds great. I'm gonna be wealthy one day. Would you
• 30:32
  Speaker 2: say that now is not the time or it is
• 30:35
  Speaker 2: the time? I mean you said maybe that there's no
• 30:38
  Speaker 2: good or bad time, but is now not the time?
• 30:41
  Speaker 1: Wow?
• 30:41
  Speaker 2: What a weird question for me. But do you know
• 30:42
  Speaker 2: what I'm trying to say?
• 30:43
  Speaker 1: I know I know exactly what you're trying to say.
• 30:46
  Speaker 1: You're saying, is now a good time to invest? I
• 30:49
  Speaker 1: can't answer that yes or no, because it's going to
• 30:52
  Speaker 1: depend on your personal situation. If you've lost your job, No,
• 30:56
  Speaker 1: not a great time to start investing in shares because
• 30:59
  Speaker 1: you'll need access to that capital. We need financial security.
• 31:03
  Speaker 1: If you've been looking at some shares, though, I think
• 31:05
  Speaker 1: it's really important to follow that share and work out
• 31:07
  Speaker 1: what its journey looks like. Is it currently undervalued, is
• 31:10
  Speaker 1: it currently overvalued?
• 31:12
  Speaker 2: Like?
• 31:12
  Speaker 1: What does that actually look like? Because as much as
• 31:15
  Speaker 1: the share market has taken a hit, does that actually
• 31:17
  Speaker 1: mean that you're picking up a bargain? And we know
• 31:20
  Speaker 1: that during the GFC a lot of people made a
• 31:22
  Speaker 1: lot of money by buying really undervalued stocks. So maybe
• 31:26
  Speaker 1: it is a good time for you, but it would
• 31:28
  Speaker 1: have to be in line with your goals and your values,
• 31:30
  Speaker 1: and you would actually have to potentially get some advice
• 31:33
  Speaker 1: on that, especially if you're thinking about making a bigger punt.
• 31:36
  Speaker 1: But what I can say is that if you are
• 31:39
  Speaker 1: going to be putting your money into the market right now,
• 31:42
  Speaker 1: please do not expect to see a return. Don't go
• 31:45
  Speaker 1: get one of these micro investing platforms and say all right, Victoria, Well,
• 31:49
  Speaker 1: I started investing, it's been eight weeks. It was meant
• 31:51
  Speaker 1: to be a good time to buy, and all of
• 31:53
  Speaker 1: a sudden, you know, you're down another five percent, Like
• 31:56
  Speaker 1: it's going to keep going down. But at the end
• 31:59
  Speaker 1: of the day, the less the stock is valued at,
• 32:02
  Speaker 1: the more value you are buying in at, if that
• 32:04
  Speaker 1: makes any sense. So if you're buying ten one dollar
• 32:07
  Speaker 1: shares and they're a dollar and then they plummet down
• 32:10
  Speaker 1: to fifty cents a share, fantastic, You're getting double the
• 32:13
  Speaker 1: shares for the same amount of money. So I think
• 32:15
  Speaker 1: it's really important to understand that as well. Whether it's
• 32:18
  Speaker 1: a good time or not completely dependent on your personal
• 32:21
  Speaker 1: financial situation. It's so hard to answer.
• 32:24
  Speaker 2: And just quickly. Property is obviously looking a little bit
• 32:27
  Speaker 2: cheaper at the moment. Yes, would you say in a
• 32:29
  Speaker 2: recession it is a good time to buy because the
• 32:33
  Speaker 2: prices are low, or is it like risky because we'll
• 32:35
  Speaker 2: have mortgage repayments and we might lose our jobs, Like
• 32:37
  Speaker 2: what is your take on that?
• 32:39
  Speaker 1: Again, so hard to say and so hard to answer this.
• 32:43
  Speaker 1: But when the stock market is shaky, it's so tempting
• 32:46
  Speaker 1: to forget everything we've absolutely learned about investing and turn
• 32:49
  Speaker 1: our focus instead owned to property, which is not necessarily
• 32:53
  Speaker 1: a bad idea. It is a very stable choice, it
• 32:55
  Speaker 1: is less exposed to economic disasters, so on and so forth.
• 32:58
  Speaker 1: But I would still say you need to be doing
• 33:00
  Speaker 1: what is right for you. Buying property now is still
• 33:03
  Speaker 1: going to be locking you into a thirty year mortgage,
• 33:06
  Speaker 1: and that's a massive commitment, even if you're saving some
• 33:08
  Speaker 1: money at a time when jobs may not be stable
• 33:11
  Speaker 1: and our incomes may not be as healthy as they
• 33:13
  Speaker 1: once were. So if you're going to go down the
• 33:15
  Speaker 1: property line, really consider what you are purchasing and aim
• 33:18
  Speaker 1: for an area that is somewhat recession proof. Investing in
• 33:22
  Speaker 1: areas that are reliant on a single industry, like a
• 33:24
  Speaker 1: holiday destination, can be really risky, especially at a time
• 33:27
  Speaker 1: like now.
• 33:28
  Speaker 2: The last step I have here is all about superannuation.
• 33:32
  Speaker 2: So can you please talk to me be about why
• 33:35
  Speaker 2: you think pulling money out of your super is a
• 33:37
  Speaker 2: risky call? If I don't know if you do think that,
• 33:40
  Speaker 2: I'm assuming you do.
• 33:41
  Speaker 1: You know me too well, Georgia Key.
• 33:43
  Speaker 2: Yeah, Well, can you talk to me a little bit
• 33:45
  Speaker 2: about the whole super theme.
• 33:47
  Speaker 1: So essentially, it's all about future you, right, Like taking
• 33:50
  Speaker 1: ten thousand dollars out of your super right now, which
• 33:53
  Speaker 1: you know, if you're in a situation where you qualify
• 33:55
  Speaker 1: to do that, is going to ultimately be if you're twenty,
• 33:59
  Speaker 1: it ends up being like three hundred and fifty thousand
• 34:01
  Speaker 1: dollars due to compound interests that you're taking away from
• 34:04
  Speaker 1: future you. So whilst it might be nice to go, ah,
• 34:07
  Speaker 1: that'd be good, I'll take my ten grand out and
• 34:09
  Speaker 1: I'll you know, unfortunately, I've seen a lot of this
• 34:12
  Speaker 1: in our community and outside of our community, being like, oh,
• 34:14
  Speaker 1: I'm going to take that out. I really need a
• 34:16
  Speaker 1: new car and I don't want to get debt, like
• 34:18
  Speaker 1: I don't want to get a loan, or oh I've
• 34:20
  Speaker 1: got a personal debt and I'm just going to pay
• 34:22
  Speaker 1: that off with the ten grand, and then you kind
• 34:25
  Speaker 1: of go, great idea, but furthering that that ten thousand
• 34:29
  Speaker 1: dollars due to compound interest, is actually costing you hundreds
• 34:33
  Speaker 1: of thousands of dollars. I'd much prefer you to just
• 34:35
  Speaker 1: be in that personal debt for another year and smash
• 34:38
  Speaker 1: it down that way instead of kind of getting that
• 34:40
  Speaker 1: instant gratification of pulling it out and paying it off.
• 34:44
  Speaker 1: It's also not teaching you anything about getting out of
• 34:46
  Speaker 1: debt and gives you an easy exit point, so you
• 34:50
  Speaker 1: feel as though you know that didn't hurt as much.
• 34:52
  Speaker 1: So I'm not worried about getting into debt another time,
• 34:55
  Speaker 1: and you're probably more likely to get into debt in
• 34:58
  Speaker 1: the future. Most of our listeners do are women, and
• 35:00
  Speaker 1: we already know that we are worse off super wise.
• 35:04
  Speaker 1: We already know that we have significantly less than men
• 35:06
  Speaker 1: in super so making these decisions not one that I
• 35:09
  Speaker 1: would take lightly. In saying that, I do think it's
• 35:12
  Speaker 1: a really beautiful option for people who are in terrible
• 35:15
  Speaker 1: financial situations. At the end of the day, that ten
• 35:19
  Speaker 1: thousand dollars or a total of twenty thousand dollars that
• 35:21
  Speaker 1: we can take out of super is going to potentially
• 35:25
  Speaker 1: be the difference between poverty and surviving for a lot
• 35:28
  Speaker 1: of people. So it would be very naive of me
• 35:30
  Speaker 1: to only mention, oh, you're taking lots of money away
• 35:33
  Speaker 1: from future you. But if you do find yourself in
• 35:36
  Speaker 1: a position where you do need to take money out
• 35:37
  Speaker 1: of SUPER, have a think about it first, make sure
• 35:40
  Speaker 1: it's the right decision. For you. Our friends at the
• 35:42
  Speaker 1: National Debt Hotline, they'll be able to tell you whether
• 35:44
  Speaker 1: it's a good idea or not for sure. But also
• 35:47
  Speaker 1: when you are in a better financial position, really try
• 35:49
  Speaker 1: to put that ten or twenty thousand dollars back, like,
• 35:52
  Speaker 1: really make some extra contributions, because I would hate to
• 35:55
  Speaker 1: see you guys behind. And the whole purpose of Sheese
• 35:58
  Speaker 1: on the Money is to make sure that we all
• 36:00
  Speaker 1: finish ahead.
• 36:01
  Speaker 2: Really well, said there, V. I think that does make
• 36:04
  Speaker 2: a lot of sense, and one hundred percent it's a
• 36:06
  Speaker 2: lifeline if you need it. But don't just be pulling
• 36:08
  Speaker 2: at it willy nearly like you need to be understanding
• 36:11
  Speaker 2: what you're taking away from your future self. So to
• 36:14
  Speaker 2: wrap this part of the show up, I thought would
• 36:16
  Speaker 2: make it really simple, do a bit of a quick
• 36:19
  Speaker 2: fire round where I give you a topic interesting. I'll
• 36:22
  Speaker 2: give you a topic and you give me like the
• 36:25
  Speaker 2: one liner of what we need to be taking away
• 36:27
  Speaker 2: from today's show in terms of the recession.
• 36:29
  Speaker 1: All right, I'm here for this, Georgia, let's do.
• 36:31
  Speaker 2: It, okay. So first one, jobs.
• 36:33
  Speaker 1: All right, So, Georgia, because of the rest session, there
• 36:36
  Speaker 1: are going to be fewer jobs, lots fewer jobs. That
• 36:39
  Speaker 1: might be super hard to believe, but given there is
• 36:41
  Speaker 1: an estimated one million of us who have already lost
• 36:44
  Speaker 1: their jobs or become unemployed, this is just going to increase.
• 36:46
  Speaker 2: Spending g king.
• 36:48
  Speaker 1: Fewer jobs mean fewer people are cashed up to buy stuff,
• 36:51
  Speaker 1: especially non essential stuff. So whilst our supermarkets might take
• 36:54
  Speaker 1: a little bit of a hit because we no longer
• 36:56
  Speaker 1: buying sirloin steak, it's the cafes and restaurants and pubs
• 36:59
  Speaker 1: and clothing and you know, small businesses that are actually
• 37:02
  Speaker 1: going to start falling over first. So I think it's
• 37:04
  Speaker 1: really important to put ourselves in positions where if we
• 37:07
  Speaker 1: can spend on small business right now is the time
• 37:10
  Speaker 1: to really prioritize them.
• 37:11
  Speaker 2: Salaries.
• 37:13
  Speaker 1: Oh, they're going to increase. Fewer jobs, unsurprisingly, means that
• 37:17
  Speaker 1: we will have stagnant salaries or even declining salaries. So
• 37:21
  Speaker 1: with more people chasing less jobs, there's less incentive for
• 37:24
  Speaker 1: employers to actually be really competitive on pay. So that's
• 37:27
  Speaker 1: definitely worth taking into consideration.
• 37:29
  Speaker 2: Got it. How about debt?
• 37:31
  Speaker 1: All right, so we've went over debt pretty significantly, But
• 37:34
  Speaker 1: if you are unemployed or underemployed or just working, the
• 37:36
  Speaker 1: same hours for less pay, your bills can actually add up.
• 37:40
  Speaker 1: Our government has already issued a plea to energy suppliers
• 37:43
  Speaker 1: and landlords and home loan finances to exercise compassion during
• 37:47
  Speaker 1: these times, but it doesn't necessarily mean it will happen.
• 37:49
  Speaker 1: So make sure you are putting yourself in the best
• 37:51
  Speaker 1: financial position right now, even if nothing has impacted you yet.
• 37:55
  Speaker 1: And property, look, we already talked about property. Probably not
• 37:58
  Speaker 1: time to buy first, or not time to invest in
• 38:01
  Speaker 1: a holiday home in an area where it potentially decreased.
• 38:05
  Speaker 1: But according to economists, if Australia's unemployment rates actually reach
• 38:10
  Speaker 1: ten percent, which is we're honestly not far off, which
• 38:12
  Speaker 1: is terrifying, then housing prices could drop as much as
• 38:15
  Speaker 1: twenty percent. So that's terrible news for anyone who sees
• 38:18
  Speaker 1: the outstanding balance on their home loan become higher than
• 38:21
  Speaker 1: the price of the property if they sell it, which
• 38:23
  Speaker 1: is a bit terrifying. That's actually called negative equity. But
• 38:27
  Speaker 1: during a time where you know you might end up
• 38:30
  Speaker 1: being in a really grateful position, where you are in
• 38:32
  Speaker 1: a stable, really good paying job, you might end up
• 38:35
  Speaker 1: getting a property that you were planning to already purchase
• 38:38
  Speaker 1: for a little bit less, which is not terrible.
• 38:40
  Speaker 2: And last rapid fire topic here is travel.
• 38:44
  Speaker 1: Okay, Well, I mean currently we're in a pandemic. This
• 38:47
  Speaker 1: recession has been triggered by a pandemic, So have fun
• 38:50
  Speaker 1: trying to travel. I don't think anyone's going anywhere for
• 38:53
  Speaker 1: a long time. But on the positive side, Georgia, our
• 38:56
  Speaker 1: recessions do not last forever. So in fact, they have
• 38:59
  Speaker 1: a lifespan between eighteen and twenty four months. It just
• 39:02
  Speaker 1: takes years to recover from one. So I think we
• 39:05
  Speaker 1: won't be traveling for a while, but at the same time,
• 39:08
  Speaker 1: like we'll be in for some hard times, probably for
• 39:10
  Speaker 1: about two years.
• 39:11
  Speaker 2: Yeah, but we'll.
• 39:12
  Speaker 1: See the impacts of this recession for a fair few
• 39:15
  Speaker 1: years to come after that.
• 39:16
  Speaker 2: If you had kind of one last little line for
• 39:19
  Speaker 2: our listeners, what would it be in terms of how
• 39:21
  Speaker 2: they should be thinking about the recession.
• 39:23
  Speaker 1: I think that this is just one of those things
• 39:25
  Speaker 1: that I say often it's just don't panic. Thing's going
• 39:28
  Speaker 1: to bounce back, Like this too is going to pass.
• 39:31
  Speaker 1: Like focus on you, focus on your mental health, focus
• 39:34
  Speaker 1: on just making sure that you get through this and
• 39:36
  Speaker 1: you're okay, and make sure that you always always remember
• 39:39
  Speaker 1: that none of this is a reflection of your personal performance.
• 39:42
  Speaker 1: If you get let down from a job or you
• 39:44
  Speaker 1: find yourself in a really upsetting situation, just remember that
• 39:48
  Speaker 1: this is so much bigger than just us, and it's
• 39:51
  Speaker 1: not you, it's Australia.
• 39:53
  Speaker 2: Yeah, the world. Also, I was wondering if you had
• 39:57
  Speaker 2: any insights on obviously a lot about listeners are maybe
• 40:01
  Speaker 2: finishing up at you need there, you know, younger people.
• 40:04
  Speaker 2: Is this going to have a massive impact on entering
• 40:07
  Speaker 2: the job mark?
• 40:08
  Speaker 1: So jog less jobs means that we're going to have
• 40:10
  Speaker 1: more competitive hiring processes. So if you've just finished university,
• 40:14
  Speaker 1: you're going to end up in a position where the
• 40:17
  Speaker 1: lower level roles and graduate roles are often the ones
• 40:20
  Speaker 1: that get cut the first, right because they're non essential,
• 40:23
  Speaker 1: like they're obviously doing a lot of really good work,
• 40:26
  Speaker 1: but because they are positions that you know, they go
• 40:29
  Speaker 1: all right, well, what can we cut without absolutely having
• 40:32
  Speaker 1: our business full over, there's honestly just going to be
• 40:34
  Speaker 1: less of them going around. So I think that we're
• 40:37
  Speaker 1: going to be in a position where you're applying for
• 40:39
  Speaker 1: grad roles or jobs and you actually put yourself in
• 40:42
  Speaker 1: a position where you're not going to hear back from
• 40:45
  Speaker 1: employers because they're going to be absolutely inundated. We are
• 40:48
  Speaker 1: going to feel really flat about this, or you might
• 40:51
  Speaker 1: lose your job in an area where you think, you
• 40:53
  Speaker 1: know what, like I should find a job really easily,
• 40:56
  Speaker 1: and then you might find yourself struggling a bit more.
• 40:58
  Speaker 2: So.
• 40:59
  Speaker 1: No, it's definitely not a good thing or a bit
• 41:02
  Speaker 1: like it's just one of those things that is going
• 41:04
  Speaker 1: to really suck. But as I was saying before, like
• 41:06
  Speaker 1: this too shall pass, Like we've just got to get through,
• 41:10
  Speaker 1: and a job is a job, Like at the end
• 41:12
  Speaker 1: of the day, you are super incredible if you're providing
• 41:15
  Speaker 1: an income for your family, whether you work a job
• 41:18
  Speaker 1: that you don't want to do or you're working your
• 41:20
  Speaker 1: dream job. Like I think just being employed is impressive,
• 41:24
  Speaker 1: and I think that not enough credit gets given to
• 41:27
  Speaker 1: people who are just doing the right bloody thing for
• 41:29
  Speaker 1: their family. Like if you're in a position where you've
• 41:33
  Speaker 1: lost your job, I think it's also really important to
• 41:35
  Speaker 1: not be too proud, like find a job, this too
• 41:38
  Speaker 1: shall pass. It'll be something that you can go find
• 41:40
  Speaker 1: your dream job later, like we're currently in a recession.
• 41:43
  Speaker 1: Find something that will get you through if that means
• 41:45
  Speaker 1: you're stocking shelves at the supermarket sick like awesome job like.
• 41:49
  Speaker 1: I have absolutely no issue with any of that, and
• 41:52
  Speaker 1: I think that all of us should, really, you know,
• 41:54
  Speaker 1: see the value in that as well.
• 42:00
  Speaker 2: Hi Van, you've breached that she is on the Money
• 42:02
  Speaker 2: mail box. Do you have a money problem you're on
• 42:04
  Speaker 2: health solving? Do you have a money in dilemma you
• 42:06
  Speaker 2: just want to chat about. Victoria is here to help.
• 42:09
  Speaker 2: Every week we'll be playing your questions to help make
• 42:11
  Speaker 2: sense of a money mess you may have found yourself in.
• 42:13
  Speaker 2: Make a quick recording on your phone and send it
• 42:15
  Speaker 2: through to podcasts and she is on the Money dot
• 42:17
  Speaker 2: com dodau and you might even find yourself on the show.
• 42:20
  Speaker 2: But for now, here's today's listener question.
• 42:23
  Speaker 5: Hey, Victoria and Georgia. I'm after some money and life advice.
• 42:27
  Speaker 5: So I live at home with my parents in country
• 42:29
  Speaker 5: New South Wales, and we don't have a very good relationship.
• 42:32
  Speaker 5: I don't like being there and I'm finding it's having
• 42:34
  Speaker 5: a big impact on my mental health. But they also
• 42:37
  Speaker 5: don't make me pay rent, which I'm quite grateful for.
• 42:40
  Speaker 5: I'm twenty two and I don't have a lot of
• 42:41
  Speaker 5: savings behind me. But I'm wondering if you think I
• 42:44
  Speaker 5: should try and move out on my own and make
• 42:45
  Speaker 5: my own way for the sake of my mental health,
• 42:48
  Speaker 5: or do you think I should stay at home and
• 42:49
  Speaker 5: build up some savings before I leave. Thanks alrighty V.
• 42:53
  Speaker 5: This is obviously a very difficult one. What advice do
• 42:57
  Speaker 5: you have here?
• 42:58
  Speaker 1: I think this is a really terrible one. Actually, Like
• 43:00
  Speaker 1: I'm glad we've got it on the podcast because this
• 43:03
  Speaker 1: person cannot be the only person struggling with this. But
• 43:06
  Speaker 1: I think that your mental health is definitely worth more
• 43:10
  Speaker 1: than your savings. And I know that that's maybe not
• 43:12
  Speaker 1: what you wanted to hear from me on a money podcast,
• 43:16
  Speaker 1: But at the end of the day, if you're in
• 43:18
  Speaker 1: a super toxic situation, we have emergency savings to get
• 43:22
  Speaker 1: us out of situations like this, and I think we
• 43:25
  Speaker 1: should all have an emergency account, whether it's five hundred
• 43:29
  Speaker 1: dollars or five thousand dollars, that can get us out
• 43:32
  Speaker 1: of a situation we no longer want to be in.
• 43:34
  Speaker 2: Now.
• 43:34
  Speaker 1: I don't know how bad it is, and she's obviously
• 43:37
  Speaker 1: living with her parents in country New South Wales, but
• 43:40
  Speaker 1: at the end of the day. I think she just
• 43:42
  Speaker 1: needs to weigh up what that means. But right now,
• 43:45
  Speaker 1: as much as savings is super important and we need
• 43:47
  Speaker 1: to get you on track to make sure that that's
• 43:49
  Speaker 1: all well and good, I think that mental health is
• 43:52
  Speaker 1: arguably far more important, because if you've got bad mental health,
• 43:56
  Speaker 1: you actually will maybe put yourself in a position where
• 43:59
  Speaker 1: you can't earn an income, you won't have savings, and
• 44:01
  Speaker 1: it becomes something that just kind of dominoes from there.
• 44:04
  Speaker 1: So for me, yes, savings is important during a time
• 44:07
  Speaker 1: like this, But if you're in a toxic situation and
• 44:10
  Speaker 1: it's really bad, and you've got a really bad relationship
• 44:13
  Speaker 1: with your parents, then maybe it's better to move out,
• 44:16
  Speaker 1: find a sharehouse, find something cheap like. It doesn't actually
• 44:19
  Speaker 1: matter what that property looks like, it's just having your
• 44:23
  Speaker 1: own space if that's really important to you. In saying that,
• 44:26
  Speaker 1: if you just have a bad relationship with your parents
• 44:29
  Speaker 1: and you know it kind of sucks living with your parents,
• 44:31
  Speaker 1: maybe you could get some counseling or have a chat
• 44:34
  Speaker 1: with your parents about what's going on so that you
• 44:36
  Speaker 1: can better live together. But I really don't want to
• 44:39
  Speaker 1: put on her what my situation or what my outcome
• 44:43
  Speaker 1: should be because I really don't know the situation enough.
• 44:47
  Speaker 2: Yeah.
• 44:48
  Speaker 1: Yeah, And again like plugging our pals at the National
• 44:51
  Speaker 1: Debt Hotline, I just think that they're incredible and maybe
• 44:54
  Speaker 1: a really good resource to reach out to because they're
• 44:57
  Speaker 1: good at managing money on type budgets like they do
• 45:00
  Speaker 1: this every single day. So I think that you could
• 45:02
  Speaker 1: reach out to them and just say, hey, this is
• 45:04
  Speaker 1: my situation, like what do I do? And there are
• 45:06
  Speaker 1: a whole heap of resources which again Georgia will link
• 45:09
  Speaker 1: in the show notes that you could access to get
• 45:12
  Speaker 1: yourself in a better position. But do you have anything
• 45:14
  Speaker 1: to add to that, Georgia.
• 45:15
  Speaker 2: Nah, I just really second what you say. Your mental
• 45:18
  Speaker 2: health has to come first one hundred percent of the time.
• 45:21
  Speaker 2: Obviously that's maybe easier said than done, but I would
• 45:25
  Speaker 2: really make moving out a priority or speaking to those
• 45:29
  Speaker 2: amazing services. Also, I think I just swallowed to fly.
• 45:33
  Speaker 1: Thank you for sharing on the podcast.
• 45:35
  Speaker 2: Also, though I know houses regionally are less expensive than
• 45:40
  Speaker 2: living in like Sydney, CBD, so hopefully there are affordable
• 45:44
  Speaker 2: options out there for her if she does choose that route.
• 45:47
  Speaker 1: Yeah, and I think it's also you know, I think
• 45:49
  Speaker 1: we have to acknowledge our privilege, because I know if
• 45:52
  Speaker 1: I was in a situation like that, I am very
• 45:55
  Speaker 1: grateful that I'm in a situation where I could just
• 45:57
  Speaker 1: be like, all right, well, I'll move out. I know
• 45:59
  Speaker 1: a lot of people aren't in situations like that, so
• 46:01
  Speaker 1: I think we also need to just be like, okay, cool.
• 46:03
  Speaker 1: There are going to be some people listening to this
• 46:05
  Speaker 1: podcast who are in toxic living situations or in situations
• 46:09
  Speaker 1: that they don't want to be and they can't leave yet,
• 46:12
  Speaker 1: and I think it is very valid that you are
• 46:14
  Speaker 1: still there, like please, don't get me wrong, I want
• 46:16
  Speaker 1: you out of that situation sooner rather than later. But
• 46:19
  Speaker 1: at the end of the day, some people are financially
• 46:22
  Speaker 1: trapped there for one reason or another. And I think
• 46:25
  Speaker 1: too much judgment goes into people who get told like, oh,
• 46:28
  Speaker 1: I don't know why they didn't leave earlier, Like they
• 46:31
  Speaker 1: didn't leave earlier because they couldn't. And I think that
• 46:33
  Speaker 1: that is something that we really should acknowledge as well.
• 46:36
  Speaker 1: And yeah, Georgia, we spoke, and maybe I'm being quite dramatic,
• 46:39
  Speaker 1: but I think this is so important and I'm so
• 46:41
  Speaker 1: passionate about it. But we did have a whole podcast
• 46:44
  Speaker 1: episode on financial abuse, So go back and have a
• 46:47
  Speaker 1: listen to that, because we had so many great resources,
• 46:50
  Speaker 1: like Georgia, I know you and I did so much
• 46:52
  Speaker 1: research before we even brought that episode to the table
• 46:56
  Speaker 1: to make sure that it was a really comprehensive list
• 46:58
  Speaker 1: of resources that you could act success. So we'll link
• 47:01
  Speaker 1: that podcast in the show notes as well as the
• 47:03
  Speaker 1: resources to that so that you can be as empowered
• 47:06
  Speaker 1: as possible in this situation.
• 47:07
  Speaker 2: Yeah, one percent. So thanks so much for your question
• 47:09
  Speaker 2: and hopefully that helped you in any little way.
• 47:15
  Speaker 3: Hi.
• 47:16
  Speaker 4: I'm a twenty seven year old investing immigrant and this
• 47:19
  Speaker 4: was my money diary.
• 47:20
  Speaker 2: Let's get into our favorite part of the show, a
• 47:22
  Speaker 2: sneak peek into the financial lives of Perfect Strangers. It's
• 47:26
  Speaker 2: time for money diaries.
• 47:27
  Speaker 4: I was actually born overseas during a civil war and
• 47:31
  Speaker 4: immigrated to Australia when I was around six years old,
• 47:35
  Speaker 4: and so my parents basically started over back in ninety
• 47:39
  Speaker 4: nine coming here. So I guess it's not like they
• 47:42
  Speaker 4: ever told me. You know, you have to say every
• 47:44
  Speaker 4: set you have. But at the same time, I did
• 47:48
  Speaker 4: notice that we didn't have a lot of money, and
• 47:49
  Speaker 4: I remember making a deal with myself from when I
• 47:53
  Speaker 4: was really young that I wouldn't be in the situation
• 47:56
  Speaker 4: where we didn't have money and we you know, I
• 47:58
  Speaker 4: had to struggle for money. I think that really influenced me,
• 48:02
  Speaker 4: saving a lot of my paychecks from from when I
• 48:05
  Speaker 4: got my first job when I was nineteen, you know,
• 48:08
  Speaker 4: at an urself. So I don't think I really understood
• 48:12
  Speaker 4: the full effect of the war and what was going on.
• 48:16
  Speaker 4: You know, we always had food on the table, we
• 48:18
  Speaker 4: always had clothes in our backs, that kind of thing.
• 48:21
  Speaker 4: But yeah, definitely I noticed, you know, my dad working
• 48:24
  Speaker 4: really really hard to learn the language, and my mum
• 48:28
  Speaker 4: was the same to make a life for us. And
• 48:30
  Speaker 4: only ten years ago did we managed to buy a
• 48:32
  Speaker 4: house here. I've grown up around people, you know, saving
• 48:35
  Speaker 4: and kind of hustling and trying to make something in
• 48:38
  Speaker 4: a place where you don't really know the culture, to language,
• 48:40
  Speaker 4: the people, and you don't have those connections that make
• 48:43
  Speaker 4: you so privileged, I suppose.
• 48:45
  Speaker 2: So what does our investing immigrant do. How much does
• 48:48
  Speaker 2: she earn and how much is sitting in her bank account.
• 48:51
  Speaker 4: I'm a clinical psychologist working in the health department. I
• 48:55
  Speaker 4: earn one hundred and two thousand dollars a year and
• 48:58
  Speaker 4: currently I have approximately ooh, i'd say one hundred thousand
• 49:04
  Speaker 4: split over various accounts.
• 49:06
  Speaker 2: And what happens to her income once at eats her account?
• 49:09
  Speaker 4: So when I get paid approximately i'd say twenty percent
• 49:13
  Speaker 4: goes into my investment account. Approximately five hundred dollars for
• 49:18
  Speaker 4: the fortnight goes into my daily expenses, so my grocery,
• 49:22
  Speaker 4: my rent, that kind of thing, and the rest goes
• 49:25
  Speaker 4: into my house savings account.
• 49:27
  Speaker 2: What is her attitude to investing?
• 49:29
  Speaker 4: I play to high importance on investing. I've read a
• 49:33
  Speaker 4: whole bunch of books and she's on the money. Really
• 49:35
  Speaker 4: got me into it and really got me thinking about it.
• 49:38
  Speaker 4: So I do play to high importance, and I put
• 49:40
  Speaker 4: a significant portion on my earnings into my investing.
• 49:44
  Speaker 2: Yeah, and how does she invest?
• 49:46
  Speaker 4: So I invest via NAB Trade. I invest in LIC,
• 49:50
  Speaker 4: which is kind of like an index fund.
• 49:52
  Speaker 2: Does the investing immigrants have any debts?
• 49:54
  Speaker 4: I don't have any consumer debts. My only dad is
• 49:58
  Speaker 4: an eighty six thousand dollars Hey, step I don't like
• 50:01
  Speaker 4: having such a big hex set. However, the more research
• 50:04
  Speaker 4: I do into it, the more I realize there's no
• 50:06
  Speaker 4: point paying it off, and I really wouldn't have my
• 50:09
  Speaker 4: current job or be where I am without that hex set,
• 50:12
  Speaker 4: and that was the only way to get to it.
• 50:13
  Speaker 4: So my exset was definitely a good investment for me.
• 50:16
  Speaker 2: What is her best money habit?
• 50:18
  Speaker 4: So my best money habit is that I have pretty
• 50:23
  Speaker 4: good self control and inhibition when it comes to money,
• 50:27
  Speaker 4: so I can kind of think long term and put
• 50:30
  Speaker 4: off those short term purchases.
• 50:32
  Speaker 2: And what is her worst money habit?
• 50:34
  Speaker 4: I kind of really struggle when I have money to
• 50:37
  Speaker 4: know what to do with it. So, for example, I'm
• 50:39
  Speaker 4: getting a pretty good tax return in a couple of weeks,
• 50:42
  Speaker 4: and I've just spent days talking with my partner about
• 50:45
  Speaker 4: what do I actually want? What am I actually going
• 50:48
  Speaker 4: to do with this? Everything seems so frivolous other than
• 50:50
  Speaker 4: putting it in towards that saving goal. So I'd say
• 50:54
  Speaker 4: my worst thing is that I don't know actually how
• 50:56
  Speaker 4: to spend money when I actually have it.
• 50:57
  Speaker 2: What is her big money goal?
• 50:59
  Speaker 4: So my big money goal at the moment is saving
• 51:03
  Speaker 4: up for a property of some sort, though I am
• 51:07
  Speaker 4: thinking it over and deciding, well, is it better to
• 51:10
  Speaker 4: do a property or is it better to invest it,
• 51:12
  Speaker 4: but at the moment we're just saving. So my hesitation
• 51:15
  Speaker 4: about buying a house is the more I read about it,
• 51:18
  Speaker 4: the more I realize that it is. There's a lot
• 51:22
  Speaker 4: of upkeep when it comes to property, a lot of
• 51:24
  Speaker 4: hidden costs, So it's not as simple as your money
• 51:27
  Speaker 4: grows with the indexation or your money grows with time
• 51:31
  Speaker 4: or with the property market. You do actually have to
• 51:33
  Speaker 4: put a lot more money in, and it's a lot
• 51:35
  Speaker 4: of outlay at the start, and you have to go
• 51:37
  Speaker 4: into debt, whereas if you invest in a stock market
• 51:39
  Speaker 4: or an index fund, you can invest how much you have,
• 51:42
  Speaker 4: how much you want. You're not in debt. And also
• 51:44
  Speaker 4: there's no hidden costs. The money just grows at a
• 51:47
  Speaker 4: similar rate as the house.
• 51:49
  Speaker 2: And finally, what grade with a twenty seven year old
• 51:52
  Speaker 2: investing immigrant to give her money habits?
• 51:55
  Speaker 4: I think I'd give myself an A and mainly not
• 51:58
  Speaker 4: an A plus because I still haven't figured out my
• 52:01
  Speaker 4: insurance and through superannuation, I haven't done that. It's still
• 52:06
  Speaker 4: on my to do list, but I feel like it's
• 52:07
  Speaker 4: something big that I'm just putting off. But otherwise, and ay,
• 52:10
  Speaker 4: I think I'm pretty good.
• 52:14
  Speaker 2: Already. V What did you make of our investing immigrants?
• 52:17
  Speaker 1: Oh my gosh, I love her. Can you imagine how
• 52:20
  Speaker 1: proud her parents are of her?
• 52:22
  Speaker 2: Oh, they'd be so proud.
• 52:24
  Speaker 1: Oh my gosh. Like if you're an immigrant, I just
• 52:27
  Speaker 1: feel like your parents are bringing you to a country
• 52:30
  Speaker 1: like Australia to get, you know, a better lifestyle and
• 52:33
  Speaker 1: you know, get a lot of different you know, privileges,
• 52:37
  Speaker 1: and for a lot of people, that's a massive struggle.
• 52:39
  Speaker 1: And I just think that your parents, obviously, you know,
• 52:42
  Speaker 1: put in a lot of hard yards, gave you a
• 52:43
  Speaker 1: really great money story and taught you a lot about
• 52:46
  Speaker 1: wealth and wealth management. And now she's twenty seven and
• 52:49
  Speaker 1: has one hundred thousand dollars across accounts and has an
• 52:52
  Speaker 1: incredible income and what a legend. Like I literally love her.
• 52:56
  Speaker 1: I think that that's you know, just so inspiring. Like
• 52:58
  Speaker 1: I don't have any feedback for her because I just
• 53:01
  Speaker 1: feel like it's such an awesome story.
• 53:03
  Speaker 2: The only thing I wanted to ask you be was
• 53:05
  Speaker 2: about her perspective on property versus investing. What was your
• 53:10
  Speaker 2: take on that?
• 53:11
  Speaker 1: So I really liked that take because it's a super
• 53:13
  Speaker 1: valid point and meant we touched on it a little
• 53:16
  Speaker 1: bit earlier in this episode, where a mortgage is a
• 53:18
  Speaker 1: massive commitment, and I think that people forget that it's
• 53:21
  Speaker 1: so much more than just saving up for your home deposit,
• 53:24
  Speaker 1: and you know, then getting a mortgage like that mortgage
• 53:27
  Speaker 1: is going to be a very significant amount of money
• 53:30
  Speaker 1: that you owe a bank each and every single month,
• 53:32
  Speaker 1: and you can't get out of that. There's no flexibility
• 53:34
  Speaker 1: in a mortgage, like if it's a three thousand dollars
• 53:36
  Speaker 1: a month mortgage like that is three thousand dollars a
• 53:39
  Speaker 1: month that you're not putting somewhere else. Whilst I'm not
• 53:42
  Speaker 1: saying that property isn't an investment, well and truly is.
• 53:45
  Speaker 1: You just really need to make sure that you're there
• 53:47
  Speaker 1: for the commitment as well. And it sounds like she's
• 53:50
  Speaker 1: young and has a lot of goals and that while
• 53:52
  Speaker 1: she's saving for property, she also is very aware that
• 53:55
  Speaker 1: it's a massive commitment and so she's kind of diversifying
• 53:58
  Speaker 1: her investment options, which I think is really intelligent. Like Georgia,
• 54:02
  Speaker 1: the amount of women I see who you know, come
• 54:05
  Speaker 1: into my office or now into my Zoom meetings and
• 54:09
  Speaker 1: they're like Victoria, I thought I wanted to buy a
• 54:11
  Speaker 1: property and I have this house deposit, and now I
• 54:14
  Speaker 1: really just don't want that commitment. What can I do instead?
• 54:16
  Speaker 1: And we're finding alternative ways to invest their money so
• 54:18
  Speaker 1: that they're still creating wealth while not missing out because
• 54:21
  Speaker 1: obviously having one hundred plus thousand dollars sitting in a
• 54:24
  Speaker 1: bank account earning next to nothing because our savings interest
• 54:27
  Speaker 1: rates are not great. I just think it's really intelligent
• 54:30
  Speaker 1: to make the right decision for your personal situation.
• 54:32
  Speaker 2: Love it, love it. Thank you for your insights there.
• 54:36
  Speaker 1: I think that is all we.
• 54:37
  Speaker 2: Have time for today, Miss Victoria Devine.
• 54:39
  Speaker 1: I think it is Miss Georgia King. But just before
• 54:43
  Speaker 1: we head off, we'd really like to acknowledge and pay
• 54:45
  Speaker 1: respect to Australia's Aboriginal and torrest Right Islander people's, the
• 54:48
  Speaker 1: traditional custodians of the lands, waterways and skies across Australia.
• 54:52
  Speaker 1: We thank you for sharing and caring for the land
• 54:55
  Speaker 1: on which we are able to learn. We pay our
• 54:57
  Speaker 1: respects to elders past and present, and we share our
• 55:00
  Speaker 1: friendship and our kindness.
• 55:02
  Speaker 2: Now it's time for the boring but important stuff. The
• 55:05
  Speaker 2: advice shared on she Is on the Money is general
• 55:07
  Speaker 2: in nature and does not consider your individual circumstances. She
• 55:11
  Speaker 2: is on the Money exists purely for educational purposes and
• 55:14
  Speaker 2: should not be relied upon to making an investment or
• 55:16
  Speaker 2: financial decision and stressless, we promise. Victoria Divine is an
• 55:20
  Speaker 2: authorized representative of Australia Pacific Funds Management Proprioriti Limited ABN
• 55:25
  Speaker 2: three four one three two four six three two five
• 55:27
  Speaker 2: seven AFSL three three nine one five one And as always,
• 55:32
  Speaker 2: a big old thank you to Ryan John for putting together.
• 55:35
  Speaker 1: Today's podcast and for putting up with us. Guys. We
• 55:39
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• 55:41
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• 55:44
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• 55:50
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• 55:52
  Speaker 2: Find us on the Gram if you are.
• 55:54
  Speaker 1: I'm just getting cooler, Georgia. I'm just getting cooler as
• 55:57
  Speaker 1: time goes on. Thank you learning from you.
• 56:00
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• 56:03
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• 56:06
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• 56:08
  Speaker 2: everything you guys write, so we love. Hearing from you
• 56:11
  Speaker 2: really makes our date.
• 56:12
  Speaker 1: It totally does. And the amount of beautiful emails we
• 56:15
  Speaker 1: get Georgia King, Oh, you guys are delightful. Anyway, we
• 56:18
  Speaker 1: will see you guys next week.
• 56:20
  Speaker 2: The delight see you guys maybe