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FRIDAY DRINKS: High Cost Of Living! · 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 through.
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Speaker 1: As this podcast is about connecting, empowering, knowledge sharing and
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Speaker 1: the storytelling of you to make a difference for today
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Speaker 1: and lasting impact for tomorrow.
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Speaker 2: Let's get into it. She's on the Money, She's on
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Speaker 2: the Money.
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Speaker 3: Hello and welcome to She's on the Money, the podcast
1:00
Speaker 3: for millennials who want financial freedom. Today is Friday, my Friends,
1:05
Speaker 3: which means it is time to sit back with the
1:07
Speaker 3: girls with a bev in hand, to unpack our favorite
1:09
Speaker 3: moments of the week, and of course.
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Speaker 2: To celebrate you how incredible She's on the Money community.
1:15
Speaker 3: As always, we'll be sharing our favorite money wins, We're
1:18
Speaker 3: going to discuss what's making news in the finance world,
1:21
Speaker 3: and we'll be helping to answer a juicy money question,
1:23
Speaker 3: which this week is all about how to label your
1:26
Speaker 3: expenses when doing a bank account audit. But first it
1:29
Speaker 3: is time to recap the week that was.
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Speaker 1: Jess.
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Speaker 3: I'm going to start with Monday's money Diary, because this
1:34
Speaker 3: week was a spicy one.
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Speaker 2: We spoke to a money darist who got arrested, oh,
1:39
Speaker 2: because she.
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Speaker 3: Had her identity stolen. But to add insult injury, she's
1:45
Speaker 3: an adult. Okay, great, so the cops emailed her dad.
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Speaker 3: The cops literally emailed her dad to ask about her
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Speaker 3: and her whereabouts and what's going on. And this diarist
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Speaker 3: I almost used her name, awkward, like, what is this?
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Speaker 3: Why are you emailing my dad? She goes down to
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Speaker 3: the station. She literally got arrested, got fingerprinted, got processed.
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Speaker 3: Obviously she got let go because it wasn't her. She's
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Speaker 3: actually a very intelligent PhD student doing a lot in Papa,
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Speaker 3: New Guinea. But that is not the point of the
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Speaker 3: I guess main part of the story. The story is
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Speaker 3: the cops contacted her dad and she got arrested.
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Speaker 2: What the heck?
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Speaker 4: If I got a fail say well, Hi, it's the police,
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Speaker 4: I'd be like, no, we're investigating your daughter.
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Speaker 3: I actually could not believe this story because one that
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Speaker 3: just seems like a gross like overstep of personal boundaries.
2:38
Speaker 3: If I do something wrong as an adult, I don't
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Speaker 3: expect someone to call my dad.
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Speaker 4: Yeah, that's really really strange. And I think like, as
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Speaker 4: the dad, you'd also be like, what is going on?
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Speaker 4: What's happened? Like you'd probably stress him out. And if
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Speaker 4: she's old enough to have, you know, done a PhD
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Speaker 4: and stuff like, presuming that her dad is a little
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Speaker 4: bit older, so that would be like a lot for him.
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Speaker 2: Scam.
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Speaker 3: Yes, the police were emailing my dad, and my dad
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Speaker 3: called and said, honey, look the cops have emailed me.
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Speaker 2: I'll be like, Dad, sit down.
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Speaker 3: The cops did not email you as much as that
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Speaker 3: child messaging WhatsApp is true, Like it's just not a thing.
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Speaker 4: Yeah, don't give them a credit car taking credit card details.
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Speaker 3: But I just think it's so wild because Jess, can
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Speaker 3: you imagine someone just calling your parents to ask about
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Speaker 3: you if you're in that circumstance, Like, it's just a
3:22
Speaker 3: gross overstep of a boundary that honestly, anyway, I've got
3:27
Speaker 3: a lot to say about that. It was a super
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Speaker 3: interesting episode. She's now absolutely flourishing, but it was a
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Speaker 3: really good insight into what happens when your identity is stolen.
3:37
Speaker 3: And I feel like this past year, we've really been
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Speaker 3: talking about that because it's becoming more and more prevalent.
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Speaker 3: Like I had a friend the other day tell me
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Speaker 3: that one of her parents had their identity stolen.
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Speaker 2: I'm like, eighty to.
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Speaker 3: One hundred thousand dollars worth of personal loans taken out
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Speaker 3: in their name, and when they contacted the bank to
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Speaker 3: be like, hey, this is fraudulent, like there's three loans,
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Speaker 3: they were like, oh, yes, someone flagged the first loan
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Speaker 3: on your file as maybe not adding up, but no one.
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Speaker 2: Looked into it. Your Joe care. That's awful, And do
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Speaker 2: you know what it was?
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Speaker 3: It turns out it was, like just because the story
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Speaker 3: is interesting, it turns out it was an ex real
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Speaker 3: estate agent who was a leasing agent and then obviously
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Speaker 3: submitted all of their personal details which were now being
4:22
Speaker 3: used to apply for personal loans. That is wild and
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Speaker 3: obviously so illegal and literally awful. But I'm telling you
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Speaker 3: because I have applied for rental properties before I've handed over,
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Speaker 3: you know, all of my personal details to people that
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Speaker 3: I thought I could trust, and it just turns out
4:40
Speaker 3: you've got to be super super critical.
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Speaker 2: Of where it is.
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Speaker 3: And I guess it's another reason why we should all
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Speaker 3: be checking our credit scores all the time and our
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Speaker 3: credit reports to just make sure nothing awrye comes up.
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Speaker 4: Yeah, and if you want to know more about identity
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Speaker 4: that we did an episode at the end of last
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Speaker 4: year all about what to do if your identity is
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Speaker 4: stolen or if you think it might be stolen. So
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Speaker 4: that's a really good episode to go back out as
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Speaker 4: a good jo.
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Speaker 3: Speaking of deep dives, Just what happened this week on
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Speaker 3: our segway, Yeah, it was real smooth until we pointed
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Speaker 3: it out.
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Speaker 4: This week we spoke all about setting up your investment
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Speaker 4: plan for the new year, New year, New me, new
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Speaker 4: investment plan. It seems like kind of the vibe.
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Speaker 3: New year, New me, New goals that I'm going to
5:18
Speaker 3: forget about by the end of January's where I'm at.
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Speaker 2: Yeah, absolutely not.
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Speaker 4: Because we spoke all about making sure it was sustainable. Yeah,
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Speaker 4: making sure we're setting realistic goals, making sure that we
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Speaker 4: have the room in our budget to achieve the investing
5:31
Speaker 4: goals that we want to say in place for ourselves.
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Speaker 4: So it was about setting yourself up for success in
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Speaker 4: the new year and really aligning that to what you're
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Speaker 4: hoping to achieve overall, as well as in your investment portfolio.
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Speaker 3: It's so easy to get super motivated at the start
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Speaker 3: of a year to then actually not achieve any of
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Speaker 3: those things because the goals that you set were unrealistic
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Speaker 3: or just not sustainable. Like how many times I don't
5:53
Speaker 3: know about you, Jet, but I don't know how many
5:55
Speaker 3: times I've set the New year's resolution to get fit
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Speaker 3: and be healthy and then I've written goals like go
6:00
Speaker 3: to the gym four times a week.
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Speaker 2: That's just never going to happen for me.
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Speaker 3: Yeah, Like, it's just unrealistic to expect me to do that,
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Speaker 3: And the same thing happens in your investment world and
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Speaker 3: in your money world. We actually just need to be
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Speaker 3: really realistic about it and set goals that work out
6:15
Speaker 3: for us.
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Speaker 2: Yeah.
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Speaker 4: Absolutely, So it's a really good step by step to
6:18
Speaker 4: set yourself up. We're all feeling good and, like you said,
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Speaker 4: really motivated at the moment, so let's harness that energy
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Speaker 4: and prep ourselves for a really good twenty twenty three.
6:26
Speaker 3: Exciting all right, Speaking of exciting, my favorite part of
6:29
Speaker 3: the show is actually talking about our community so let's
6:32
Speaker 3: jump straight into the budget direct, money wins and compassions
6:34
Speaker 3: of the week.
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Speaker 2: Jessica Rici, what are you bringing to the table?
6:37
Speaker 4: Starting off with a New Year's themed one from Lauren?
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Speaker 4: She said, pre ordered the She's and the Money budget
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Speaker 4: Journal through shot back a twenty twenty three money win.
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Speaker 2: Oh one hundred percent.
6:48
Speaker 3: And also that's just a little good casual plug. Did
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Speaker 3: you do that on purpose to remind the people that
6:52
Speaker 3: maybe don't follow us on social media?
6:54
Speaker 2: We have a budgeting journal that's come out so exciting.
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Speaker 2: It drops on the tenth of January, so so soon.
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Speaker 3: Yes, sorry, it wasn't available in times of Christmas. It
7:04
Speaker 3: turns out I didn't plan to make this until too
7:06
Speaker 3: late in the production schedule. But that's okay because you
7:09
Speaker 3: can still order it and get on track for twenty
7:11
Speaker 3: twenty three.
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Speaker 2: And I'm really excited.
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Speaker 4: Absolutely. It's packed full of tips and tricks. It's a
7:16
Speaker 4: really great way to track all of your spending and
7:18
Speaker 4: again your goals as well. There's check ins throughout the
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Speaker 4: years to help keep you on track. I feel like
7:22
Speaker 4: you did a really great job of designing it super
7:25
Speaker 4: thoughtfully in line with kind of the little tips and
7:27
Speaker 4: tricks that we've given in the past. So if you
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Speaker 4: wanted a Victoria Divine in your pocket, maybe this journal
7:33
Speaker 4: will be good for you. I feel like it's everything
7:34
Speaker 4: you would expect from machines on the Money Budget Journal too,
7:37
Speaker 4: so it's not just like rite down your budget, it's
7:40
Speaker 4: also like reflect on your goals and your money story
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Speaker 4: and what's going on. Like there's all the stuff that
7:45
Speaker 4: I think is really important to focus on as well,
7:47
Speaker 4: all right.
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Speaker 2: Next money Win Jess.
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Speaker 4: Comes from Emma and she said money Win only bought
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Speaker 4: groceries and fuel last week. I avoided the shops and
7:54
Speaker 4: deleted the incoming It's on sale emails to not tempt
7:57
Speaker 4: myself with unnecessary miscellaneous spending. Queen behavior absolutely. Next one
8:02
Speaker 4: comes from Kate, who said money Win, I couldn't afford
8:05
Speaker 4: the two hundred dollars ticket to go to a festival
8:07
Speaker 4: to see some bands I've always wanted to see. Then
8:10
Speaker 4: I saw that they needed volunteers. For a few hours,
8:13
Speaker 4: I helped out. Felt good, got to see the bands
8:16
Speaker 4: I wanted and it looks great on my resume.
8:18
Speaker 2: Oh my gosh, how good.
8:19
Speaker 3: That's actually a hot tip that I didn't know existed.
8:21
Speaker 3: While I was at UNI that I've only really recently
8:24
Speaker 3: discovered that you can actually volunteer for a lot of
8:26
Speaker 3: festivals to help set up or pack down or whatever
8:29
Speaker 3: it is, and often they'll give you a ticket to
8:31
Speaker 3: the festival's payment and tickets to festivals are so expensive, ridiculous.
8:35
Speaker 4: Well, we did the same thing last year and we
8:37
Speaker 4: did our Shees on the Money International Women's Day events.
8:40
Speaker 4: We got some people to help us to volunteer pack
8:42
Speaker 4: give bags. Don't forget that's coming up in March. So
8:44
Speaker 4: if you haven't got your ticket, head to the She's
8:46
Speaker 4: on the Money website.
8:47
Speaker 2: It's running out or at the moment.
8:48
Speaker 4: We have almost none left, So jump on there if
8:51
Speaker 4: you're wanting to join us, and keep an eye out
8:52
Speaker 4: because if we need volunteers, we'll be putting a call
8:54
Speaker 4: out on socials just like we did last year.
8:57
Speaker 2: That means free tickets you.
8:58
Speaker 4: Love to see it. Next week comes from Nicole who
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Speaker 4: said she went to an event on Friday night, got
9:03
Speaker 4: a discounted ticket for twenty nine dollars, pre booked her
9:06
Speaker 4: parking for fourteen, then walked away with quite a few
9:10
Speaker 4: free books. Some of them are going to go to friends.
9:13
Speaker 4: One of them was autographed, and others she hasn't read yet,
9:15
Speaker 4: but she's really excited to.
9:16
Speaker 3: Oh my gosh, genius. Also, what kind of event is
9:20
Speaker 3: only twenty nine bucks? Cheap parking and free books like
9:23
Speaker 3: line it up? I want to go to that event
9:24
Speaker 3: next year, The Ultimate Finance event next week. I've got
9:28
Speaker 3: few comes from Catherine, who said she's been saving her
9:31
Speaker 3: virtual spare change every day and has just about saved
9:35
Speaker 3: enough to pay for her holiday accommodation this month. Five
9:37
Speaker 3: hundred and fifty dollars saved since August, so it adds
9:40
Speaker 3: up really fast.
9:40
Speaker 2: Oh, when you said virtual money, I was like, what
9:43
Speaker 2: are you talking about? Virtual money? Is it like yeah?
9:45
Speaker 2: Is it like pretend money?
9:46
Speaker 3: Is it like the money I used to make on
9:48
Speaker 3: neopets from doing games?
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Speaker 2: I was like, when you're we out with this?
9:51
Speaker 3: And when you said, oh, it's actual money, I was like,
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Speaker 3: that's actually even better than neopets money.
9:55
Speaker 4: I feel like it's like roundups, but maybe manually if
9:57
Speaker 4: her bank doesn't offer it or something like that.
10:00
Speaker 2: That word just threw me. That is very impressive.
10:02
Speaker 3: Also, five hundred bucks, that's a lot of money. I'm
10:05
Speaker 3: going to recheck my roundups because I feel like I
10:07
Speaker 3: could be doing more brilliant.
10:08
Speaker 4: And the last one I have today comes from Alissa,
10:10
Speaker 4: who said I had a bookcase, TV unit and two
10:13
Speaker 4: coffee tables that I needed to get rid of. After
10:15
Speaker 4: no bites on marketplace, I found out that Ikea does
10:18
Speaker 4: buy back their furniture.
10:20
Speaker 2: That's right.
10:21
Speaker 4: A quick trip to Ikea on Saturday, and now I've
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Speaker 4: got six hundred and thirty dollars in my back pocket.
10:26
Speaker 2: What the hell? How good is that?
10:28
Speaker 3: It wasn't selling a marketplace? So you just dragged it
10:30
Speaker 3: to Ikea and they brought their stuff back.
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Speaker 4: And I feel like every person on the planet had
10:35
Speaker 4: at least one piece of Ica.
10:37
Speaker 3: I have a Calix bookshelf that I don't need any more,
10:40
Speaker 3: and to be honest, I'd be embarrassed to sell it
10:42
Speaker 3: to somebody else because it's.
10:43
Speaker 2: Just really well loved.
10:45
Speaker 4: To Jessica, I'm a drag it back to Ikea, get
10:47
Speaker 4: you some money back.
10:48
Speaker 2: Ten out of ten idea.
10:49
Speaker 3: All right, let's go to a really quick break, and
10:51
Speaker 3: then after the break, I'm going to talk about the
10:53
Speaker 3: rising cost of living, and we're going to talk about
10:55
Speaker 3: how to label your expenses. When we're talking budget and
10:58
Speaker 3: cash flow, don't go anywhere.
11:04
Speaker 4: All right, everybody, welcome back. As you said before the break,
11:08
Speaker 4: the cost of living pressure is really dominating everyone's worries.
11:11
Speaker 4: I know that I have seen it. I've had to
11:13
Speaker 4: expand my budget for my groceries, for my utilities, for
11:17
Speaker 4: my petrol. It feels like everything is just getting so
11:19
Speaker 4: much more expensive, and it's really stressful. Turns out I'm
11:22
Speaker 4: not alone. Apparently fifty nine percent of people who were
11:25
Speaker 4: recently surveyed were concerned about the skyrocketing cost of grocery
11:29
Speaker 4: and electricity prices, soaring cost of rent, and the rising
11:32
Speaker 4: interest rates for twenty twenty three.
11:35
Speaker 3: Yeah, it gives me the ick, but it absolutely makes
11:38
Speaker 3: sense that in twenty twenty three, this is what people
11:40
Speaker 3: are worried about. Like, I just feel like, one, it's
11:43
Speaker 3: not fair, but two it sparks a really good conversation
11:47
Speaker 3: in our podcast, but also just in our business in general, Jess,
11:50
Speaker 3: when we're talking about content and how we can actually
11:53
Speaker 3: have the biggest impact on our listeners this year, because
11:56
Speaker 3: I just feel like for the last twelve months we've
11:59
Speaker 3: really focused on interest rates and investing, but it really
12:02
Speaker 3: seems that the crux of people's issues aren't just in
12:05
Speaker 3: being able to afford to invest. It's really about bringing
12:08
Speaker 3: down our grocery budgets and how to be as savvy
12:10
Speaker 3: as possible with electricity and those costs that we can't
12:13
Speaker 3: actually as easily control. And I feel like it's so
12:16
Speaker 3: easy to go, oh jes we just won't go out
12:18
Speaker 3: for dinner as much, but when the grocery bill is exorbitant,
12:21
Speaker 3: like what are we meant to turn? What are we
12:24
Speaker 3: meant to do? So I just think it's so interesting
12:26
Speaker 3: to understand. I guess what's going on. And obviously interest
12:30
Speaker 3: rate pressure is insane. And in December Jests, I think
12:33
Speaker 3: I've already told you this. I'm shocked, and I'm happy
12:35
Speaker 3: to share this with the community. Everybody knows I own
12:38
Speaker 3: a property. My partner and I have a mortgage, and
12:40
Speaker 3: I want to be super transparent about that. We probably
12:42
Speaker 3: have about nine hundred and fifty thousand dollars on that mortgage.
12:45
Speaker 4: Right.
12:46
Speaker 3: I have calculated maybe I need to go see Kate
12:49
Speaker 3: from Zella Money, because if she listens to this, she's
12:51
Speaker 3: going to be horrified. But I calculated that from January
12:55
Speaker 3: twenty twenty two to December twenty twenty two, my interest pays,
13:00
Speaker 3: so on my mortgage, we're paying principle and interest. At
13:02
Speaker 3: the moment, my interest component of our mortgage has increased
13:06
Speaker 3: by twenty one hundred dollars.
13:08
Speaker 2: That is two one hundred.
13:10
Speaker 3: Dollars on my mortgage, which, let's be honest, is actually
13:14
Speaker 3: a very normal mortgage amount here in Melbourne. Like the
13:17
Speaker 3: average property price is more than a million dollars these
13:20
Speaker 3: days in Melbourne. It's even higher than that in Sydney.
13:23
Speaker 3: So it's actually a really normal amount of money for
13:27
Speaker 3: somebody who lives in the inner suburbs of Melbourne to have,
13:29
Speaker 3: you know, taken on, especially with a partner. But the
13:32
Speaker 3: idea that we are now under twenty one hundred dollars
13:35
Speaker 3: more financial stress than we were, Please don't get me wrong.
13:39
Speaker 3: I acknowledge our privilege and even being able to access
13:42
Speaker 3: a mortgage and being in that position, but it has
13:44
Speaker 3: really changed the way that we're investing and saving and
13:47
Speaker 3: setting financial goals because that's twenty one hundred dollars a
13:50
Speaker 3: month that has to come from somewhere else in our
13:53
Speaker 3: budget to be allocated to the interest payments. Because from
13:57
Speaker 3: my perspective, I just want to be smashing down my
13:59
Speaker 3: home loan as much as possible as I can, But
14:02
Speaker 3: where is that coming from? How is that going to work?
14:05
Speaker 3: And thankfully, as I said before, acknowledging all the privilege
14:08
Speaker 3: that I have in being able to pay it, but
14:11
Speaker 3: oh my gosh, the pressure that I feel right now,
14:13
Speaker 3: knowing that I just can't see how our community is
14:17
Speaker 3: as level headed as they are at the moment, I
14:19
Speaker 3: would be losing my mind as well as them.
14:21
Speaker 4: Yeah, And it really is coming back to that conversation
14:24
Speaker 4: around setting yourself up for success and being realistic with
14:27
Speaker 4: what you can do. Because this article said that just
14:29
Speaker 4: putting food on the table is the number one worry
14:32
Speaker 4: of people for the upcoming year, and you go, okay, well,
14:35
Speaker 4: if you can barely afford to feed you know, your
14:37
Speaker 4: family of for your family of two, or whatever that
14:39
Speaker 4: might be, how can you then be thinking about investing?
14:42
Speaker 4: And I think it's really easier then fall down that
14:44
Speaker 4: slippery slope of feeling like you're not doing enough and
14:47
Speaker 4: feeling really stressed. And it's important to remember that we
14:50
Speaker 4: are in a really tumultuous economic time, I think, and
14:53
Speaker 4: we're really looking forward to making sure that we as
14:56
Speaker 4: a team do everything that we can to support you
14:58
Speaker 4: guys this year with content that really helps to set
15:01
Speaker 4: you up so that you can feel confident and hopefully
15:03
Speaker 4: not quite so stressed.
15:04
Speaker 3: Yeah, and I just feel like investing content as much
15:07
Speaker 3: as it is super exciting. And please don't think it's
15:10
Speaker 3: going anywhere. In fact, I have a whole investing course
15:13
Speaker 3: planned for this year, so please don't think that we're
15:15
Speaker 3: going to reel back on that in any way, shape
15:18
Speaker 3: or form. But there will be so much more relatable
15:20
Speaker 3: content when it comes to savings and groceries and everyday
15:25
Speaker 3: living expenses and budgeting and debt reduction and what to
15:28
Speaker 3: do because Jess. Another thing that has come to light
15:31
Speaker 3: over the last twelve months, because obviously research has been done,
15:34
Speaker 3: the year is over, we now can look at it
15:36
Speaker 3: in reflection. Debt rates for Australians have increased by ten percent.
15:41
Speaker 3: So in twenty twenty one, twenty nine percent of Australians
15:44
Speaker 3: had some type of personal debt that was not a mortgage,
15:48
Speaker 3: and then in twenty twenty two that went.
15:50
Speaker 2: Up to thirty nine percent.
15:52
Speaker 4: Wow.
15:52
Speaker 3: And with the rising cost of groceries and putting food
15:55
Speaker 3: on the table and electricity and fuel, I feel like
15:57
Speaker 3: it is never ending and I cannot see that going
16:01
Speaker 3: down this year. I can only see it increasing. And
16:04
Speaker 3: I don't think that there's any shame in that, because
16:06
Speaker 3: at the end of the day, if our community is
16:09
Speaker 3: going into debt, I know they're educated enough to know
16:12
Speaker 3: why they are going into debt and how they are
16:14
Speaker 3: going to get out of it on the flip side,
16:17
Speaker 3: but it's just really upsetting that in the world we
16:20
Speaker 3: live in, people just are needing to rely on things
16:23
Speaker 3: like that, And as I said, absolutely no shame in it.
16:25
Speaker 3: What we want to do, though, is make the most
16:28
Speaker 3: educated decisions for our circumstance, and sometimes to put food
16:32
Speaker 3: on the table, put your kids through school, and put
16:34
Speaker 3: you in a position to actually thrive in the future.
16:37
Speaker 3: Sometimes you do need to take a step backwards, and
16:39
Speaker 3: I think that it is a really privileged thing to
16:42
Speaker 3: say just don't go into debt, because that's just not
16:44
Speaker 3: an option for a lot of people. So I think
16:46
Speaker 3: it's important to acknowledge that that if it's gone up
16:49
Speaker 3: in twenty twenty two and then in twenty twenty three,
16:52
Speaker 3: as you said before, Jess, our number one concern is
16:55
Speaker 3: groceries and fuel and energy, it's just going to increase
16:59
Speaker 3: even more.
17:00
Speaker 2: It's sad, but we've got this. We've got you.
17:01
Speaker 4: We're going to support you. And maybe we'll pop a
17:03
Speaker 4: thread up in the Facebook group this week and go
17:06
Speaker 4: ahead and leave a comment let us know what's stressing
17:08
Speaker 4: you out. What topics do you want us to cover
17:09
Speaker 4: this year? Because I mean, we're really here to help
17:12
Speaker 4: you guys, and.
17:13
Speaker 2: Makes our job really easy if you just tell us
17:15
Speaker 2: what to do. I'm out of ten.
17:17
Speaker 3: We don't even need a producer and Lisa yeat No,
17:21
Speaker 3: we keep a Melisa. We love Melisa, we love her.
17:24
Speaker 3: All right, let's move on. We have a listener question
17:26
Speaker 3: this week which is all about budget and cash flow,
17:28
Speaker 3: so I feel like it's really relevant.
17:30
Speaker 2: Let's have a listen. Hi, there, have you got a
17:34
Speaker 2: money dilemma you just can't solve that. She's on the
17:36
Speaker 2: Money Team is here to help.
17:38
Speaker 3: Every week we tackle your dilemmas, both big and small,
17:41
Speaker 3: to answer your most burning money, career and life questions.
17:45
Speaker 3: To get involved, simply head to our website and leave
17:47
Speaker 3: us a short voice recording and you might just find
17:49
Speaker 3: yourself on the show. Now, let's take a listen to
17:52
Speaker 3: this week's money dilemma.
17:56
Speaker 5: Hi, my name is Vanessa. I'm reading your book and
17:58
Speaker 5: I'm on the bank account out it and I have
18:01
Speaker 5: a question. We have two kids and we have swimming classes, basketball, soccer, gymnastics.
18:08
Speaker 5: Those expenses. Where do I put them on fixed? Like
18:12
Speaker 5: necessary or discretionary? Some of them we think are necessary,
18:20
Speaker 5: like swimming classes, we could agree the other ones are discretionary,
18:25
Speaker 5: but I'm not sure how do I put them or
18:30
Speaker 5: where do I put them? Thank you and your book
18:33
Speaker 5: has been very helpful. Thank you.
18:35
Speaker 2: Oh that was the sweetest message ever. Hi, Vanessa.
18:38
Speaker 3: I'm really excited that you're asking this question because it
18:41
Speaker 3: actually opens up a conversation of values and beliefs. And
18:45
Speaker 3: there's actually not one actual answer to this because a
18:49
Speaker 3: lot of things that you're asking about, and I'm really
18:52
Speaker 3: grateful that your kids can do them are privilege. For
18:54
Speaker 3: a lot of other families that is not accessible. And
18:58
Speaker 3: as much as it for you, non negotiable. And you
19:01
Speaker 3: know what, growing up, swimming lessons for us were non negotiable.
19:04
Speaker 3: My parents did not let us get out of them,
19:06
Speaker 3: regardless of how much we didn't want to do it,
19:08
Speaker 3: were to love it. It was one of those circumstances.
19:11
Speaker 3: But growing up in Australia beside the beach. My parents
19:13
Speaker 3: were like, there's absolutely no way you are not going
19:16
Speaker 3: to learn to swim. So I get that that question
19:19
Speaker 3: of is it a necessary thing or not is really
19:23
Speaker 3: actually up to you and your family values.
19:25
Speaker 2: I think what you really need to.
19:27
Speaker 3: Do in this circumstances step backwards out of the budget
19:29
Speaker 3: categorization mode and actually into a conversation with your partner
19:33
Speaker 3: about values and what is discretionary and what isn't not
19:37
Speaker 3: necessarily What do your kids do right now? But what
19:40
Speaker 3: is a necessary expense versus how do we personally categorize
19:44
Speaker 3: something that's disposable? Because you know, swimming lessons and tennis
19:47
Speaker 3: lessons and all of those extracurricular activities you could argue
19:51
Speaker 3: are not necessary. But in some families you might go, no, absolutely,
19:55
Speaker 3: this is a necessary expense in our household that goes
19:59
Speaker 3: in that column. And I totally get that. But again
20:02
Speaker 3: it's quite personal. However, if you're in a position where
20:06
Speaker 3: you are trying to cut back and work out what
20:08
Speaker 3: is going on, maybe it is time to have a
20:11
Speaker 3: look at, well, how many discretionary things do the kids
20:14
Speaker 3: get to do? Do we allocate a specific budget to them?
20:18
Speaker 3: To spend on. You know, if they want swimming lessons
20:21
Speaker 3: and horse riding lessons and whatever else they're doing. Maybe
20:24
Speaker 3: we allocate a certain amount per week and the kids
20:27
Speaker 3: get to decide how that is made up of. Or
20:30
Speaker 3: I just think there's a few things. What do you reckon, Jess,
20:32
Speaker 3: how would you categorize it?
20:34
Speaker 4: I personally would probably put them in discretionary. However, that
20:38
Speaker 4: being said, I think the thing that's worth kind of
20:40
Speaker 4: keeping in mind here is that you can come back
20:42
Speaker 4: to this budget as many times as you want throughout
20:45
Speaker 4: the year. And you know, we're talking about how things
20:47
Speaker 4: are potentially going to get a little bit tougher as
20:49
Speaker 4: the year goes on. If you put something into necessity
20:53
Speaker 4: now and in six months time of year, oh my gosh,
20:56
Speaker 4: we need to find an extra two hundred dollars in
20:58
Speaker 4: the budget. Every month, you can come back to your
21:00
Speaker 4: budget and go, oh, you know what, maybe we pop
21:03
Speaker 4: the swimming lessons on hold for six months until we
21:05
Speaker 4: kind of back on our feet and things hopefully stabilize
21:08
Speaker 4: a little bit and we can bring them back in.
21:10
Speaker 4: Or maybe we go from two lessons a week to
21:11
Speaker 4: one lesson a week, and so you can always come back,
21:14
Speaker 4: and that's something that I do. I obviously use the
21:16
Speaker 4: Budget and cash Flow Master Class Plan for my budgeting
21:19
Speaker 4: and I review it every I would say, at a
21:22
Speaker 4: minimum two months, just to come back and make sure
21:24
Speaker 4: that it's all still working for me. So pop it
21:27
Speaker 4: wherever feels right to you now, But know that if
21:30
Speaker 4: you know as you go along it's not quite working out,
21:33
Speaker 4: you can change that. There's no rule that says that
21:35
Speaker 4: you can't.
21:36
Speaker 3: And it's really fluid, like personal finance is just that, right.
21:38
Speaker 3: I say this all the time. It's personal, so it's
21:41
Speaker 3: up to you. But when it comes to budget, it
21:44
Speaker 3: is actually quite fluid. So as you said before, Jess,
21:46
Speaker 3: if you need to find it an extra two hundred
21:48
Speaker 3: bucks in the budget, what could you move from you know,
21:52
Speaker 3: essential over to discretionary and back and forth. Because it's
21:56
Speaker 3: kind of like, and I don't want to be too
21:57
Speaker 3: trivial about this, but I've got friends that I'm talking
22:01
Speaker 3: to at the moment that are saving up for like
22:02
Speaker 3: Europe trips or saving up for a car purchase, and
22:05
Speaker 3: I'm like, well, why don't you just put your TV
22:07
Speaker 3: subscriptions on hold until you achieve that goal because it
22:11
Speaker 3: might not be forever. And I think often when we're
22:13
Speaker 3: canceling something or putting something on the back burner, you
22:15
Speaker 3: just assume that's a finite decision, like that's it, Like
22:18
Speaker 3: all right, well, I've canceled my stand membership, therefore it's gone.
22:22
Speaker 2: No.
22:22
Speaker 3: Why not cancel it for three months, achieve your financial goal,
22:25
Speaker 3: and then get it back in line with the values
22:27
Speaker 3: that you hold. Because from little things, they really do
22:30
Speaker 3: add up. Like we say it on the pod. We've
22:32
Speaker 3: said it for years on the pod. From little things,
22:34
Speaker 3: big things grow. And I think you're right, maybe it's
22:36
Speaker 3: time to go, all right, well are we doing two
22:38
Speaker 3: classes a week? Could be dropped down to one? What
22:40
Speaker 3: is necessary? But it's all about discussing it with family
22:44
Speaker 3: as well. And I think that that's probably a really
22:47
Speaker 3: good place to even get your kids involved in the
22:49
Speaker 3: budgeting process, because I'm a big believer in kids being
22:53
Speaker 3: more involved in financial decisions as a family. But I
22:56
Speaker 3: also think it's too much of a burden to lump
22:59
Speaker 3: the entire budget on children and go, oh, this is
23:02
Speaker 3: how our entire family works, in our budget and our
23:05
Speaker 3: rent and now mortgage, in this and this, and because
23:07
Speaker 3: sometimes it's just a bit overwhelming, but that could be
23:09
Speaker 3: a really good gateway of Hey, guys, Mum and dad
23:12
Speaker 3: have done the budget.
23:13
Speaker 2: We have X amount to spend. Here's what this cost.
23:15
Speaker 2: This cost sits costs, what do you think?
23:17
Speaker 3: How do you think we should manage this? And it
23:19
Speaker 3: could actually be a really empowering way to get the
23:21
Speaker 3: kids involved. But each to their own and personal finance
23:25
Speaker 3: is just that, it's personal, so there's not a right
23:27
Speaker 3: or wrong in this circumstance.
23:28
Speaker 4: Oh my gosh, I love that. And if you're listening
23:29
Speaker 4: to this, going what is this amazing budgeting costs.
23:33
Speaker 2: The budget and cash flow course you've ever seen in
23:35
Speaker 2: your entire life.
23:36
Speaker 4: Absolutely, head to the She's on the Money website. It's
23:39
Speaker 4: the Shees on the Money, a budget and cash flow masterclass.
23:41
Speaker 4: And given it to the new year and everybody's working
23:43
Speaker 4: on getting their finances sortag. Should we give them a
23:45
Speaker 4: cheeky discount.
23:46
Speaker 2: To help them ount? Absolutely? What's the code you're going
23:49
Speaker 2: to make?
23:49
Speaker 4: Just plug in pod fifty and that will give you
23:51
Speaker 4: fifty dollars off. We'll keep that valid right through the
23:54
Speaker 4: end of the month for you, So get in and
23:56
Speaker 4: hopefully that will help you tear everything up and get
23:58
Speaker 4: really organized so you gets some sort of for twenty twenty.
24:00
Speaker 2: Three ten idea.
24:02
Speaker 3: All right, I think that is all we have time
24:03
Speaker 3: for today, JASICRICI have a beautiful weekend and She's on
24:06
Speaker 3: the Money listeners, I love you season Bye. The advice
24:15
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