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FRIDAY DRINKS: Another Big Bank On The BNPL Bandwagon! · She's On The Money

0:00
Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
0:04
Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before
0:08
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
0:14
Speaker 1: of which this podcast is recorded on a wondery country,
0:18
Speaker 1: acknowledging the elders, the ancestors and the next generation coming
0:22
Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing
0:27
Speaker 1: and the storytelling of you to make a difference for
0:30
Speaker 1: today and lasting impact for tomorrow.
0:33
Speaker 2: Let's get into it.
0:34
Speaker 3: She's on the Money, She's on the Money.
0:57
Speaker 2: Hello, and welcome to She's on the Money, the podcast
1:01
Speaker 2: for millennials who want financial freedom. Today is Friday, My
1:04
Speaker 2: Loves We are back. We've been watching TikTok so that
1:07
Speaker 2: money Don'tjiggle Jiggle song is all that is stuck in
1:10
Speaker 2: my head and it is time to unpack our favorite
1:12
Speaker 2: moments from the week that was, and of course to
1:14
Speaker 2: celebrate the incredible She's on the Money community. As always,
1:17
Speaker 2: we are going to be sharing our favorite money wins.
1:19
Speaker 2: We're going to be discussing what's making news in the
1:21
Speaker 2: Finance World, and we're going to be helping to answer
1:24
Speaker 2: a very juicy money question, which this week is all
1:26
Speaker 2: about being paid fortnightly and having to move to monthly pay,
1:29
Speaker 2: which I think is a sticky situation a lot of
1:31
Speaker 2: us have found ourselves in historically. But first it is
1:34
Speaker 2: time to recap the week that was Miss Jess Grigi.
1:36
Speaker 2: What happened on Money Diaries.
1:38
Speaker 4: So this week's Money diarist was an international student. She
1:41
Speaker 4: came to Australia from the Philippines and she's been here
1:43
Speaker 4: for over five years, and whilst she was here, she
1:46
Speaker 4: was actually diagnosed with BPD, which is borderline personality disorder.
1:50
Speaker 2: Yes, I'm how frustrating I know.
1:52
Speaker 4: And it was really interesting to talk to her about
1:54
Speaker 4: the symptoms and how that manifests for her because one
1:56
Speaker 4: of the main symptoms she was talking about was impulsivity
1:59
Speaker 4: and how that impacts her because she would save and
2:01
Speaker 4: save and be really smart, but then if she ada,
2:05
Speaker 4: it'd all be gone. So super interesting to talk about
2:08
Speaker 4: that and actually a chance for me to plug something
2:10
Speaker 4: that we're working away on in the background, which will
2:12
Speaker 4: be a little series on neurodiversity and how that relates
2:16
Speaker 4: to your money, because turns out you can't actually sometimes
2:20
Speaker 4: help the things. You can have all of the positive
2:22
Speaker 4: habits in the world, but you can.
2:23
Speaker 2: Have the cash flow, and then you can be like
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Speaker 2: me and have ADHD and just be really impulsive and
2:28
Speaker 2: want to change things. And there's not a lot we
2:30
Speaker 2: can do about that except education, right, And the more
2:33
Speaker 2: we know, the more power we have, and the more
2:34
Speaker 2: power we have, the more likely we are to stick
2:36
Speaker 2: to our habits and goals that we set. Yeah, if
2:38
Speaker 2: your brain's wired differently, sometimes it just means that you
2:40
Speaker 2: need a different approach. And turns out, as we've said before,
2:43
Speaker 2: the world is made for a certain type of person,
2:46
Speaker 2: and once upon a time they'd be like, screw everybody else,
2:48
Speaker 2: fit in or get out, and we're not about that.
2:50
Speaker 2: We got up. That's what we did. We didn't get out,
2:52
Speaker 2: we got out.
2:54
Speaker 4: So yeah, that's something that you can look forward to
2:55
Speaker 4: you hopefully in the second half of this year. Yeah,
2:58
Speaker 4: getting in really early in that one. But time super
3:00
Speaker 4: excited about it.
3:01
Speaker 2: Me too, now that I know it's on our radar,
3:03
Speaker 2: So that's nice. It's funnier if I pretend I suggest
3:08
Speaker 2: something we've really seen on TikTok actually is with people
3:11
Speaker 2: being more open and honest and even within our community
3:13
Speaker 2: about their habits and their experiences. Sometimes seeing that you
3:17
Speaker 2: have these habits is a trigger for you to realize
3:19
Speaker 2: that you might actually have an undiagnosed condition, which I
3:22
Speaker 2: think is super interesting and now powerful. Yeah, now that
3:25
Speaker 2: we're talking about it more openly, I think that is
3:27
Speaker 2: such a fantastic outcome because as women were statistically more
3:31
Speaker 2: likely to go undiagnosed with things. Yeah, because it's also
3:33
Speaker 2: a man's world, So when it comes to medicine and
3:36
Speaker 2: the way things are portrayed, it's always how it's portrayed
3:39
Speaker 2: in a man, which is why so many things go wrong.
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Speaker 4: So yeah, a big thank you to our diarist for
3:44
Speaker 4: being so candid with us about her experience, because that's
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Speaker 4: something that we're really hoping to chat more about later
3:49
Speaker 4: this year. And she was really really I think a
3:52
Speaker 4: powerful episode.
3:53
Speaker 2: Yeah, I love that, Ji King. What happened on Wednesday?
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Speaker 5: So this week was another tax episode, ladies, but it
4:00
Speaker 5: was really really interesting.
4:02
Speaker 2: Did you like that? Did I sell it? You're not
4:04
Speaker 2: selling me? Oh gosh? Okay, So just told me before
4:07
Speaker 2: off air that I had to be more excited about
4:09
Speaker 2: the tax episodes and I have absolutely no intention of
4:13
Speaker 2: pretending I'm excited about them. Listen to the episodes I am.
4:17
Speaker 2: I would argue very engaging, I'm very nice, lady. I
4:20
Speaker 2: did some very good content. I did some very good research.
4:23
Speaker 2: You are high energy when you say how are the
4:25
Speaker 2: tax episodes? Like, I kind of just like low key
4:28
Speaker 2: laugh because like, who says that? Who says how are
4:30
Speaker 2: the tax episodes?
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Speaker 4: There are a lot of people who have been asking
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Speaker 4: for text content.
4:34
Speaker 2: Are they going to be excited? We have been given
4:36
Speaker 2: the people what they want. The community wants it. I
4:38
Speaker 2: want it, as you guys know, I love paying tax
4:41
Speaker 2: because I genuinely think it's a massive privilege and I
4:44
Speaker 2: want to talk about that more. But yeah, what happened
4:46
Speaker 2: on this week's.
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Speaker 5: Taxip So this episode was all about whether or not
4:51
Speaker 5: your side hustle is tax compliant, which is super helpful
4:54
Speaker 5: because obviously in our community, so many of us are
4:56
Speaker 5: side hustlers.
4:57
Speaker 2: I'm a side hustler, just as a side hustler ust Oh,
5:02
Speaker 2: I thought you're so husty, But that's okay, sad. But
5:05
Speaker 2: this week we actually got to hear from one of
5:07
Speaker 2: my good friends, Tiffany, who spoke about the pickle she
5:09
Speaker 2: found herself in when she actually was side hustling and
5:12
Speaker 2: got some bad tax advice. So it's really important to
5:15
Speaker 2: trust your gut is what I got out of that.
5:17
Speaker 2: Trust your gut, always ask for a second opinion if
5:19
Speaker 2: you need one, and just remember that you are actually
5:22
Speaker 2: more powerful than you know, Like you have the ability
5:25
Speaker 2: to research this and look it up yourself and find
5:27
Speaker 2: out a lot of answers that arguably, if Tiff had
5:30
Speaker 2: done that, she might have found herself in a better position,
5:32
Speaker 2: but she just trusted the person who was giving her
5:35
Speaker 2: the advice. So I think it was good. I am
5:37
Speaker 2: very grateful to Tiff. Tiff love you, thank you for
5:38
Speaker 2: sharing that with us, because I feel like I just
5:40
Speaker 2: added another dimension to the podcast that really contextualized the
5:44
Speaker 2: topics that we're talking about. Because obviously I can say
5:47
Speaker 2: a million times over, like Jess, this is so important,
5:49
Speaker 2: and you go, they're cool, like to who to who? Though,
5:53
Speaker 2: and this one really put that in perspective for you guys.
5:56
Speaker 2: So I was really grateful for that. But let's get
5:59
Speaker 2: into it. I'd love to hear George King, what are
6:01
Speaker 2: your budget direct money wins? This week of the Shout
6:03
Speaker 2: Out it's going to be I've think a hungry.
6:05
Speaker 5: Yeah once again. Okay, So the first one here comes
6:08
Speaker 5: from Julia. I returned one hundred and thirty three bottles
6:13
Speaker 5: at ten cents each last week for thirteen dollars thirty
6:17
Speaker 5: I money.
6:17
Speaker 4: Win, really want bottle rest. I know that it's they've said,
6:20
Speaker 4: be so good at it. I would be that person
6:23
Speaker 4: like combing bins, going a like part like it's so
6:27
Speaker 4: smart because it's so good for the.
6:28
Speaker 2: Pinet and you make money. See what states do it?
6:30
Speaker 2: Just South Australia, No, New South Wales was as well.
6:34
Speaker 2: I'm I don't know. I just know that we don't
6:36
Speaker 2: do it because that's what I care about.
6:37
Speaker 5: Come on, Dan Andrews, let's get it together, son son,
6:40
Speaker 5: So I actually loved it, actually, so sorry. Let's move
6:43
Speaker 5: on to Morgan money win. I started using shop back
6:45
Speaker 5: but must have done it wrong as the purchase didn't
6:47
Speaker 5: go through. Then I put a claim in and they've
6:50
Speaker 5: given me this.
6:50
Speaker 2: They give it back purchase. Yeah, they give it back.
6:53
Speaker 2: Is that the same Morgan from last week who had
6:54
Speaker 2: a money win? Morgan hot tell me.
6:57
Speaker 5: If this one's different, there you'd go. She also wrote
7:02
Speaker 5: money loss. It was my birthday, so I got heaps
7:04
Speaker 5: of birthday vouchers and emails from lots of retailers. So
7:06
Speaker 5: I spent a fortune. That's a little trap to be
7:08
Speaker 5: mindful of.
7:09
Speaker 2: I thought you had the same money. Don't you want
7:11
Speaker 2: vouchers on your birthday? Like that's a good thing.
7:13
Speaker 5: Well, it adds to tend true, correct, I'm learning v
7:18
Speaker 5: The next win here comes from Emily. I needed a
7:20
Speaker 5: new top for a birthday dinner, and I found one
7:22
Speaker 5: in Witchery for sixty nine dollars ninety five. I didn't
7:25
Speaker 5: have a Witchery account, though, but my mom didn't. She
7:28
Speaker 5: was with me and she had seventy dollars. Incredible about sire,
7:31
Speaker 5: so she let.
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Speaker 2: Me use them. Thanks three top money when Happy birthday, Emily.
7:35
Speaker 2: That actually leans into the money when I had On
7:38
Speaker 2: the weekend, old guys went to the bookshop to pick
7:40
Speaker 2: up a book recently thanks Stimmix went in. They asked
7:43
Speaker 2: me if I had an account. I didn't, turns out,
7:46
Speaker 2: which is very strange because it turns out I've been
7:47
Speaker 2: putting it all under Steve's and so I gave them
7:49
Speaker 2: Steve's mobile number. Massive flex if you know your partner's
7:52
Speaker 2: mobile number off the top of your head, right, But
7:55
Speaker 2: they were like, oh, he has twenty dollars in credits,
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Speaker 2: got my book for free, amazing xactly like her, How
8:00
Speaker 2: good is this?
8:01
Speaker 5: I thought you were going to say. You pointed to
8:03
Speaker 5: the book and were like, do you know who wrote that?
8:04
Speaker 2: Your book?
8:05
Speaker 5: Oh?
8:05
Speaker 2: No, I do do that? Ask Jess. Every time we fly,
8:07
Speaker 2: which has been arguably every single month. We have been
8:12
Speaker 2: doing a lot of travel and going back and forth
8:13
Speaker 2: to Sydney. I literally point at the same bookshop every
8:17
Speaker 2: single time in Sydney Airport. I'm like, look, Jess, that's me,
8:20
Speaker 2: and she's like, shut up, get over it, get over it.
8:24
Speaker 2: You wait, it's going to be two by September. I'm
8:26
Speaker 2: gonna be like, look there and there, it's gonna be wild.
8:29
Speaker 5: The next win comes from Jennifer money Win. I sold
8:32
Speaker 5: a washing machine on marketplace. Hubs wanted fifty dollars for it,
8:35
Speaker 5: but I put it up for eighty dollars and the
8:37
Speaker 5: guy who bought it paid one hundred instead.
8:39
Speaker 2: What shit. That's not how that works. What ulterior universe
8:46
Speaker 2: or alternate universe do you live in? Because that's not
8:49
Speaker 2: how Facebook marketplace works. What happens is you should have
8:52
Speaker 2: put it up for one hundred dollars and they would
8:54
Speaker 2: have bartered you down to ten.
8:57
Speaker 5: She was in luck all right. The next win comes
8:58
Speaker 5: from Chloe's small money win here. I took my little
9:02
Speaker 5: two and a half year old to the supermarket yesterday
9:04
Speaker 5: and they have one of those cars where you put
9:06
Speaker 5: two dollars in they move, and the kids are always
9:08
Speaker 5: so attractive to those you know the ones I'm talking Yeah, same, Well,
9:11
Speaker 5: someone had left this one going, so little Missy jumped
9:14
Speaker 5: in and went for a short ride. It made her
9:16
Speaker 5: day and I didn't have to pay for it. I
9:18
Speaker 5: cannot tell you the number of times I've sat outside
9:21
Speaker 5: my local cafe and there's a little thing next to it,
9:23
Speaker 5: a little toy make bank.
9:25
Speaker 2: Do you reckon? Hi's someone's side hustle.
9:27
Speaker 4: Well, it's like the vending machine thing, Like just anybody
9:30
Speaker 4: can own a vending machine and put it somewhere, which
9:31
Speaker 4: blew my mind.
9:33
Speaker 2: So Eric, because do you need to permit?
9:35
Speaker 4: You'd probably, I mean it would probably very counsel a counsel.
9:38
Speaker 4: But like most of the time, I think I've been
9:39
Speaker 4: watching them on TikTok. People just get permissioned from like
9:42
Speaker 4: a shop owner or a business and say hey, can
9:44
Speaker 4: I put this here? And you get like, I pay
9:45
Speaker 4: you a fee to like.
9:46
Speaker 2: Yeah, and grab a little side hustle. Imagine if your
9:50
Speaker 2: side hustle was carousels, not burn that would be really cute.
9:54
Speaker 2: I would ride it all the time. If your side
9:56
Speaker 2: hustle is carousel, please call me. Oh my god, money diary. Okay, okay, okay,
10:01
Speaker 2: just outing Amy Lenardi again, who is one of our
10:03
Speaker 2: favorite people in the She's on the Money community. She
10:06
Speaker 2: had a carousel at her wedding. So yeah, she had
10:09
Speaker 2: a full blown carousel, and now I want one because
10:11
Speaker 2: it could be someone's side hustle. True, that sounds really
10:15
Speaker 2: expensive for me. And what's your next win?
10:18
Speaker 5: The final win of the day comes from Shay. I
10:21
Speaker 5: got a brand new dress with tags on it for
10:23
Speaker 5: twelve dollars fifty from the up shop and it's still
10:25
Speaker 5: one hundred and thirty dollars online.
10:27
Speaker 2: Oh my gosh money, little monkey face.
10:30
Speaker 5: Monkey emoji covering its mouth.
10:32
Speaker 2: Yeah, I love that. I love that. I love it
10:34
Speaker 2: when you describe them to me. Yes, it was like
10:37
Speaker 2: that time that you used to explain all of the
10:39
Speaker 2: emojis to me. It's a long time to bring that back.
10:41
Speaker 2: That was like season two. I was a listener then
10:44
Speaker 2: I didn't work here were you like George just sucks?
10:47
Speaker 2: Did you used to think George was so cool and
10:49
Speaker 2: then you met her and you're like, oh no, you
10:52
Speaker 2: felt about me. You exceeded my expectations. Oh, George absolutely
10:56
Speaker 2: did dark for me. Excuse me a podcast? So you did.
11:01
Speaker 2: You did such a good job, thanks, Matte. You did
11:03
Speaker 2: such a good job and you only cried a couple
11:05
Speaker 2: of times over that.
11:07
Speaker 6: Exactly right.
11:08
Speaker 2: Oh my gosh, Well, it has been so good celebrating
11:10
Speaker 2: some of your budget Direct money wins for reward winning
11:13
Speaker 2: insurance search budget Direct Budget Direct Insurance solved. Let's go
11:17
Speaker 2: to a break, and when we get back, we are
11:19
Speaker 2: talking about being paid monthly instead of fortnightly, and we
11:22
Speaker 2: have some hot tips of g King's gonna put on
11:24
Speaker 2: the table. All Right, we are back and we are
11:30
Speaker 2: going to talk about the spiciest topic that the She's
11:32
Speaker 2: on the Money community talks about. What is that you ask?
11:35
Speaker 2: I can hear you. Look how excited Jesse is. It's
11:38
Speaker 2: by now, pay later. And the question on everybody's lips
11:41
Speaker 2: I eat mine, is why does every single bank feel
11:45
Speaker 2: like they are coming out with a buy now, pay
11:47
Speaker 2: later at at the moment and where are their ethics
11:49
Speaker 2: and why are we doing this?
11:51
Speaker 4: Yeah, we've been slammed with dms this week from people
11:53
Speaker 4: sending us screenshots because NAB has just announced they're joining
11:57
Speaker 4: the foray of the buy and now Paylada, why.
11:59
Speaker 2: Are you doing miss?
12:00
Speaker 4: Everyone wanting to know now that I suppose a more
12:03
Speaker 4: quote unquote formal or official institution is doing buy now
12:07
Speaker 4: pay later, because historically it's just been platforms that exists
12:09
Speaker 4: that only offer that, so like an after pay or
12:12
Speaker 4: a Klana or one of those other platforms where that's
12:14
Speaker 4: just their whole wheelhouse. Whereas now you know, you could
12:17
Speaker 4: go to a bank for a home loan, you go
12:18
Speaker 4: to a bank for a personal loan, you go to
12:20
Speaker 4: bank for a bank account, or you could go get
12:22
Speaker 4: a buy and now pay later there. So some of
12:24
Speaker 4: the questions we've been seeing thee that I want to
12:25
Speaker 4: get your thoughts on, are is this going to impact
12:28
Speaker 4: potentially the way that banks for you buy now pay later,
12:30
Speaker 4: because you know, historically we've said could impact your you know,
12:34
Speaker 4: your serviceability for your loan.
12:35
Speaker 2: Or I don't think they care to be brutally honest.
12:37
Speaker 2: I think what they care about, and this is me
12:39
Speaker 2: being very glass half empty, is making money from you
12:43
Speaker 2: as a consumer. Right Like they're a bank, they're a business. Obviously,
12:46
Speaker 2: mortgage products are one product that they could offer you.
12:49
Speaker 2: And if Gking walks in and says, hey, I'd love
12:51
Speaker 2: to work with you, like, can I get a mortgage product,
12:54
Speaker 2: They'll be like, yeah, okay, let's look at your spending
12:56
Speaker 2: and make sure that our risk has been accounted for
12:59
Speaker 2: so that if they lend money to you, you're going
13:01
Speaker 2: to pay it back. But from my perspective, and this
13:04
Speaker 2: is my again very cynical approach on this, because it
13:07
Speaker 2: actually really frustrates me, I just I can't understand companies
13:11
Speaker 2: not caring more. I just can't understand why they're not
13:15
Speaker 2: putting people in better positions. But given the property market obviously,
13:19
Speaker 2: mortgages are quite inaccessible for most people nowadays, this for
13:22
Speaker 2: me feels a bit like they're getting the low hanging fruit.
13:26
Speaker 2: They're like, all right, well, if we can't get GM mortgage,
13:29
Speaker 2: how about we just find another product to make money
13:31
Speaker 2: off her for and that happens to be by now
13:33
Speaker 2: pay later. A lot of people have been using you know,
13:36
Speaker 2: as you said, after paying Klana and you know all
13:38
Speaker 2: these other options. I feel like if it's then being
13:42
Speaker 2: issued by your bank, you can feel safer about it.
13:45
Speaker 2: Not that that's what you should feel, but it's not
13:48
Speaker 2: that much of a step. It's not another company, right,
13:50
Speaker 2: like a already bank with NAB So how hard is
13:52
Speaker 2: it to then step into buy now Pay later? Like
13:55
Speaker 2: so easy? It's all through one app. Like to me,
13:57
Speaker 2: it just feels a little bit like they're taking advantage
14:00
Speaker 2: of the low hanging fruit and going, well, how else
14:03
Speaker 2: do we make money from other demographics, which is exactly
14:06
Speaker 2: what they're doing. They're a business, and if you look
14:07
Speaker 2: at from a business perspective, it's probably a very smart move.
14:11
Speaker 2: Given how big after Pay and Klana are and how
14:14
Speaker 2: big every other buy and now pay latter platform is.
14:16
Speaker 2: It kind of makes sense that the biggest dogs in
14:18
Speaker 2: the game, i A. The banks, like, well we want
14:21
Speaker 2: in on this because they're losing customers to companies like
14:24
Speaker 2: buy now Pay Later. So it just it makes sense,
14:27
Speaker 2: but it just makes me. It gives me the ick.
14:28
Speaker 4: Guys, So on that ap website, there's not a whole
14:31
Speaker 4: heap of information out yet because apparently earlier access is
14:34
Speaker 4: coming soon. They're currently building the hype. But it does
14:36
Speaker 4: say that there is no interest or late fees, which
14:39
Speaker 4: makes me wonder how they actually will be making money
14:41
Speaker 4: off of something like this, maybe with an annual feed.
14:44
Speaker 2: Yeah, I was looking into it. It says it's going to
14:45
Speaker 2: be launched in July twenty twenty two, which means their
14:48
Speaker 2: PDS is not available yet, which as a findactional advisor, guys,
14:52
Speaker 2: I really need to read your PDS so I can't
14:54
Speaker 2: judge you, like, I really need to know how you're
14:56
Speaker 2: actually making money, because from my perspective, it kind of
15:00
Speaker 2: d of makes sense that they're doing this, But how
15:03
Speaker 2: are they making money? Like, how is this profitable if
15:05
Speaker 2: there's no late fees or interest charges? Like are they
15:09
Speaker 2: actually doing this to put people in a better financial situation?
15:12
Speaker 4: I mean, on paper, no interest, no late fees, sounds
15:14
Speaker 4: like a step up. But without that information being available,
15:17
Speaker 4: you would think that people couldn't launch or tease a
15:20
Speaker 4: product or a financial product anyway without having that PDS
15:23
Speaker 4: and information available. So I was a little bit surprised
15:25
Speaker 4: about that. But we'll keep you posted once it does launch.
15:28
Speaker 4: I'm sure we'll have lots of thoughts and opinions. The
15:30
Speaker 4: one other thing I was going to say that I
15:32
Speaker 4: found really interesting when I did a little bit of
15:34
Speaker 4: research was it's got the how to get started in
15:37
Speaker 4: four easy steps. So you need to have an AB account,
15:39
Speaker 4: you download the app, you need to be over eighteen,
15:41
Speaker 4: and then all you need to do is pass a
15:43
Speaker 4: simple repayment assessment when you.
15:44
Speaker 2: Apply, so which I kind of like. And that leans
15:47
Speaker 2: into the question and I guess the thing I've jumped
15:50
Speaker 2: up and down about for a very long time, which
15:52
Speaker 2: is calling out for better regulation on buy now, Pay Later,
15:55
Speaker 2: and it hasn't happened yet, but you look at it
15:58
Speaker 2: and go, maybe they are going to be a little
16:00
Speaker 2: bit more responsible about this. There's a thousand dollars limit
16:03
Speaker 2: on it, which is obviously a lot of money, but
16:05
Speaker 2: having a limit is kind of good. Maybe with this
16:08
Speaker 2: survey that you were mentioning before, there's probably better regulation.
16:12
Speaker 2: So maybe it is in the space of buy now,
16:14
Speaker 2: pay later to pay Debil's advocate. Maybe it's a really
16:17
Speaker 2: positive step in a bad industry, Like maybe it's a
16:20
Speaker 2: really positive outcome of people needing to use this, but
16:24
Speaker 2: maybe here's a way that you can use it that
16:26
Speaker 2: isn't as detrimental as it could be saying that, obviously,
16:29
Speaker 2: I'm not standing behind those words until I see a
16:31
Speaker 2: PDS and can break it all down for you, because
16:33
Speaker 2: I don't know why they would do that if they're
16:35
Speaker 2: not making money from it, So how are they clipping
16:38
Speaker 2: the ticket along the way? And that's the question that
16:40
Speaker 2: should be on everybody's lips whenever you look at any
16:43
Speaker 2: type of product that jumps up and down about it
16:45
Speaker 2: being free, like how you're making money then, because if
16:48
Speaker 2: they're not making money by charging you as the customer,
16:51
Speaker 2: are they making money by selling data? Are they making
16:54
Speaker 2: money by doing something else, in which case you deserve
16:56
Speaker 2: to know how you are being profited off. I think
16:59
Speaker 2: it's a good question. Feel free to slide into my
17:02
Speaker 2: DMS nabin and hit me up and let me know.
17:05
Speaker 5: Having said that, V and j Rick, do we think
17:08
Speaker 5: that maybe it's just the big boys? You said the
17:10
Speaker 5: other banks are doing it as well, kind of reasserting
17:12
Speaker 5: their authority would be in that space.
17:14
Speaker 4: It bank for sure, Like all of a sudden, have
17:17
Speaker 4: any we've seen pop up from banking institutions in the
17:20
Speaker 4: last let's call it four to eight weeks.
17:22
Speaker 2: What's three. It's actually insane. There's been three or four
17:24
Speaker 2: of them come up. You're right, And the interesting thing
17:27
Speaker 2: you've said before about target market that's actually a part
17:30
Speaker 2: of their compliance regulation nowadays. So they have to do
17:33
Speaker 2: what's called a target market determination form. So you know
17:36
Speaker 2: how I always say, have a look on the website,
17:38
Speaker 2: read the pds, make sure you know what the product
17:40
Speaker 2: disclosure statement says. So we need to do that as well.
17:43
Speaker 2: But with banking and finance products, they will also release
17:46
Speaker 2: something called a TMD, and a TMD is a document
17:49
Speaker 2: that tells you who they're trying to attract. Because there's
17:52
Speaker 2: been so much backlash recently about or even just since
17:56
Speaker 2: the Royal Commission of people targeting the wrong people. I
17:59
Speaker 2: ate after pay trying to you know, if you can't
18:02
Speaker 2: afford it and you're broke, cues aughter pay like vibes,
18:05
Speaker 2: and it's just so unethical. Whether they actually stick to
18:09
Speaker 2: that with their marketing or not is a different story,
18:12
Speaker 2: NAB to be honest, and the bigger banks have been
18:14
Speaker 2: very good at this, So this is not me being
18:16
Speaker 2: cynical of them and being like, oh my god, they
18:18
Speaker 2: don't stick to their target market determination but I do
18:20
Speaker 2: think it's interesting that that exists and you can actually
18:23
Speaker 2: have a look at it, Like if you go to
18:24
Speaker 2: the NAB website, there's a pdf you can download that
18:27
Speaker 2: tells you who their target market is for NAB personal loans,
18:30
Speaker 2: and it's interesting because it says consumer needs and objectives.
18:34
Speaker 2: They actually have what their perfect client has in terms
18:38
Speaker 2: of financial situation. So it says, here, for someone who
18:41
Speaker 2: wants a personal loan from NAB, it's a person that
18:44
Speaker 2: requires a minimum credit amount of five thousand dollars up
18:47
Speaker 2: to fifty five thousand dollars, has access to sufficient income
18:50
Speaker 2: to satisfy NABS credit assessment requirements and to meet the
18:54
Speaker 2: following payments, so the principal amount due, the interest amount due,
18:57
Speaker 2: the application fee, and the monthly fee. I think it's
19:00
Speaker 2: really interesting because it's probably one of the first times
19:03
Speaker 2: that you guys are probably going, well, that's me or
19:05
Speaker 2: it's not me. But it's also interesting to see other
19:08
Speaker 2: players in the market that aren't the banks doing these TMDs,
19:13
Speaker 2: and then I would say going a bit rogue on
19:16
Speaker 2: what their actual marketing strategy is because if you look
19:19
Speaker 2: at their tmd they're saying people with consistent incomes, who
19:22
Speaker 2: can pay back this, who can do that? And then
19:24
Speaker 2: the marketing just feels like.
19:25
Speaker 4: Maybe that's not right kind of which is the exact
19:29
Speaker 4: opposite of what.
19:29
Speaker 2: You just say, especially and to talk about it again.
19:32
Speaker 2: And I know we've mentioned it on the podcast before,
19:34
Speaker 2: but during the Royal Commission, after paper was actually asked
19:37
Speaker 2: to stop targeting young millennial women. But I don't believe
19:40
Speaker 2: that that has actually happened. I would just say they
19:43
Speaker 2: changed their TMD to say no, we're not doing that,
19:46
Speaker 2: But then like, look at the marketing, who doesn't most
19:49
Speaker 2: like resonate with I would feel we're still in the
19:52
Speaker 2: firing line, my friends, regardless of what their TMD says.
19:56
Speaker 4: Going back to what you're saying before about kind of
19:58
Speaker 4: waiting to see whether this kind of you know, is
20:00
Speaker 4: a good step in the right direction in terms of
20:03
Speaker 4: seeing perhaps an example of how buy now, pay later
20:05
Speaker 4: could be done better or more correctly. Do you think
20:08
Speaker 4: that now that the big banks are doing it, we
20:10
Speaker 4: might actually see it become regulated because something we hope,
20:15
Speaker 4: I would pray, something that we've kind of kicked up
20:17
Speaker 4: a fuss about in the past is the fact that
20:19
Speaker 4: buying our pay later is not regulated, it's not considered
20:22
Speaker 4: a financial services product.
20:24
Speaker 2: Yeah, it's insane, but if.
20:25
Speaker 4: A bank is offering it, I would argue that absolutely
20:27
Speaker 4: it's a financial services product.
20:29
Speaker 2: Right. Look, I would love to think and this is where,
20:31
Speaker 2: like I want to see people walk the walk, not
20:34
Speaker 2: just talk the talk. I'd love to see what actually
20:36
Speaker 2: happens here and the way they actually implement it. Because
20:40
Speaker 2: banks have a lot to lose if they do this wrong,
20:42
Speaker 2: but a lot to gain if they do it the
20:44
Speaker 2: right way. So I would think that it's going to
20:47
Speaker 2: be more regulated. By reading through whatever information is available
20:51
Speaker 2: on the NAB website, it does sound arguably like a
20:55
Speaker 2: better product offering than what's on the market. I still
20:58
Speaker 2: don't agree with buying pay later because I'm very much
21:01
Speaker 2: of values based human being, right, Like, I really want
21:05
Speaker 2: the purchases you're making to be thoughtful and in line
21:07
Speaker 2: with your values and in line with your beliefs, and
21:09
Speaker 2: in line with everything that you're trying to achieve. And
21:12
Speaker 2: we're working towards you know, financial freedom together. So that's
21:17
Speaker 2: where I stand. But if there's a better way to
21:19
Speaker 2: do it, and it's a product that works for some people,
21:22
Speaker 2: like at the end of the day, it's a very
21:23
Speaker 2: privileged position to sit in to say don't use buy now,
21:26
Speaker 2: pay later. Yeah, because there are a lot of people
21:28
Speaker 2: where this really works for them, and it does the
21:30
Speaker 2: right thing for them and their cash flow. And as
21:33
Speaker 2: we've seen in our community, there are actually a fair,
21:35
Speaker 2: fairly big handful of people who are using buy now,
21:38
Speaker 2: pay later companies quite strategically or using it to bolster
21:43
Speaker 2: their cash flow or put them in a better position
21:45
Speaker 2: or pay off something they were definitely going to purchase anyway,
21:48
Speaker 2: and it doesn't financially impact them anymore. So I think
21:51
Speaker 2: we need to see it from the place of privilege.
21:54
Speaker 2: But I also think we have rights as a consumer,
21:57
Speaker 2: and as I guess a community that supports it's the
22:00
Speaker 2: consumer to demand better and to demand that we are
22:03
Speaker 2: looked after and that you know, people aren't deceptive with
22:07
Speaker 2: their marketing. So yeah, I think I've got a lot
22:09
Speaker 2: to say on that, as you guys.
22:11
Speaker 5: I've just turned my laptop around to the little marketing
22:14
Speaker 5: banner on the NAB website you have.
22:16
Speaker 2: It's a it's a millennial female.
22:20
Speaker 5: Having the time of her life, and it says now
22:22
Speaker 5: now behind it. So that's not like a family sitting
22:25
Speaker 5: around looking at the bills is it doesn't really match marketing.
22:28
Speaker 2: So it's like and I'm a little worried, but I
22:31
Speaker 2: point and I feel like that's where we are very
22:34
Speaker 2: fair in being cynical and we want to see it happen.
22:36
Speaker 2: And I think it's important to acknowledge privilege here and say, well, actually,
22:40
Speaker 2: I do feel quite privileged to not be in a
22:42
Speaker 2: position where I need this, because like, imagine how great
22:44
Speaker 2: by now paylater would be if you need to pay
22:47
Speaker 2: for an expensive dental appointment that you couldn't have otherwise afforded,
22:49
Speaker 2: and now you don't even need a credit card to
22:51
Speaker 2: do that, or you don't need to negotiate a payment plan,
22:53
Speaker 2: Like I think there are so many good examples of
22:55
Speaker 2: where by now pay later could put you back in
22:58
Speaker 2: the control seat, But fortunately too many of us are
23:01
Speaker 2: driving drunk. Really we're just like, ah, this is wild.
23:04
Speaker 2: I can buy a dress for a Friday night and
23:06
Speaker 2: then never wear that dress again, or I can buy
23:09
Speaker 2: things like food now on after pay, or beers out
23:13
Speaker 2: with your mates or espresso martinis. I just think let's
23:15
Speaker 2: be more thoughtful and responsible with our money and actually
23:20
Speaker 2: lean into these products to support us doing that as
23:23
Speaker 2: opposed to, you know, being really irresponsible. I'm sure with
23:26
Speaker 2: the NAB one you can probably buy some spresso martinis
23:29
Speaker 2: because like, why would they have less accessibility than the
23:32
Speaker 2: other players in the.
23:33
Speaker 4: Market available anywhere visa is accepted. Arguably could be a
23:38
Speaker 4: positive thing though with what you were saying about, because
23:40
Speaker 4: by our pay latter platforms, the way they work at
23:42
Speaker 4: the moment is they have approved retailers, and those approved
23:45
Speaker 4: retailers are often paying a hefty fee to be on
23:48
Speaker 4: that list, which is why a lot of small businesses
23:50
Speaker 4: can't offer it. So it could be potentially a good
23:53
Speaker 4: thing because it opens up the world of dentists or
23:56
Speaker 4: cairos or kind of more necessary purchase is that you
24:00
Speaker 4: need to make and you might want to break down.
24:01
Speaker 4: But anyway, we've spoken about for more than but that's
24:03
Speaker 4: what it.
24:03
Speaker 2: Would lead into, right, that's potentially how NAB's going to
24:06
Speaker 2: make money. So they're going to lean into charging the retailer.
24:09
Speaker 2: What does that actually look like? And the question for
24:12
Speaker 2: me is around are we actually happy with charging our retailers?
24:16
Speaker 2: More Like for small businesses, I don't want them to
24:18
Speaker 2: have an extra cost wherever possible. I'm not using after pay.
24:22
Speaker 2: So it's just it's an interesting conundrum. I think we
24:25
Speaker 2: can continue the conversation around in the future.
24:28
Speaker 4: Yeah, anyway, we've spoken about that for more than long enough,
24:31
Speaker 4: because we have a money dilemma.
24:33
Speaker 1: We do.
24:34
Speaker 2: Let's hear it. Hi, there have you got.
24:38
Speaker 5: Up money dilemma you just can't solve that. She's on
24:40
Speaker 5: The Money Team is here to help. Every week we
24:43
Speaker 5: tackle your dilemmas, both big and small, to answer your
24:45
Speaker 5: most burning money, career and life questions. To get involved,
24:49
Speaker 5: simply head to our website and leave us a quick
24:52
Speaker 5: voice recording and you may just find yourself on the show. Now,
24:55
Speaker 5: let's take a listen to today's money dilemma.
24:59
Speaker 6: Hi, ladies. For the past ten years, I've been getting
25:02
Speaker 6: paid on a fortnightly schedule and set up a budget
25:07
Speaker 6: appropriate for that. But I've just got a new job,
25:10
Speaker 6: which I'm really excited to start. But I'm going to
25:12
Speaker 6: be getting paid on a monthly schedule instead of fortnightly,
25:16
Speaker 6: and I'm just wondering if you can give me any
25:19
Speaker 6: tips for how to budget properly when you've got a
25:22
Speaker 6: budget for a month at a time rather than a
25:24
Speaker 6: fortnight Thank you very.
25:26
Speaker 2: Much, all right, I feel like I've got some hot
25:29
Speaker 2: tips here, guys, I have so many hot tips. But
25:31
Speaker 2: do you know who has hot tips? Just freaky because
25:33
Speaker 2: she gets paid monthly as we all do. Such a
25:37
Speaker 2: good point. I think that I actually really like it.
25:40
Speaker 2: I've to pay it. Actually, I've been paid monthly. We
25:42
Speaker 2: can negotiate this, we can change it if you really
25:44
Speaker 2: need off.
25:45
Speaker 4: No, I've been paid monthly for as long as I
25:47
Speaker 4: can remember, because a lot of corporate pays monthly, and
25:49
Speaker 4: I quite like it because one day a month.
25:53
Speaker 2: You're really rich.
25:55
Speaker 4: No, but one day a month, all of my money
25:57
Speaker 4: comes in, and I know exactly what that looks like,
25:59
Speaker 4: and it may really easy for me to immediately implement
26:03
Speaker 4: the breakdown of my budget.
26:04
Speaker 2: Yeah, it's like one day exact consistently.
26:08
Speaker 4: And you can have all of those auto transfers set.
26:10
Speaker 4: It's a little bit less confusing for someone like me
26:12
Speaker 4: who's not a huge numbers person, because you know there's
26:14
Speaker 4: not an equal amount of weeks in every month, and
26:17
Speaker 4: so you know I'm getting paid twelve times this year.
26:19
Speaker 2: It don't say I don't do anything for you, jes
26:21
Speaker 2: It make my.
26:21
Speaker 4: Life so much easier and spoiler alert, No, one's going
26:24
Speaker 4: to be surprised here has come out of my mouth.
26:25
Speaker 4: But the secret is budgeting.
26:29
Speaker 2: Don't tell them this secret. We're going to have no
26:31
Speaker 2: content left for the pod guy. I know, but yeah,
26:34
Speaker 2: I feel like that's the answer.
26:35
Speaker 4: Right.
26:35
Speaker 2: It's all about automation, right, and a budget is going
26:38
Speaker 2: to mean it's something different to each and every single person.
26:40
Speaker 2: I think we really need to step away from a
26:42
Speaker 2: budget having the same connotations as a diet, Like it's
26:46
Speaker 2: not restrictive, Like a budget is actually fully comprehending how
26:50
Speaker 2: many dollars come in and what's going out, and feeling
26:52
Speaker 2: really empowered about that. It's not about going okay, Jess,
26:55
Speaker 2: So on the fifteenth of every single month, you're going
26:57
Speaker 2: to get paid, and on that day you need to
27:00
Speaker 2: set a budget and you have to stick to it.
27:01
Speaker 2: Like it's not about that. It's actually about understanding what's
27:04
Speaker 2: coming into your account and going all right of that.
27:07
Speaker 2: I spend this on coffees, and I spend this on
27:09
Speaker 2: spresso martinis with my girlfriends, and I'm gonna go out
27:11
Speaker 2: for a brunch with Steve on Sundays. And this is
27:13
Speaker 2: what this is, like, it's actually taking that power back
27:16
Speaker 2: and putting the energy back into your money so that
27:19
Speaker 2: it's funneling in the ways you want it to. And
27:22
Speaker 2: I'm obviously so biased low KEI gonna plug my own
27:25
Speaker 2: budget and cash flow masterclass, but I would argue that
27:28
Speaker 2: for someone who is paid monthly, that's a game changer,
27:32
Speaker 2: because if you are someone who's like look, Ree, I
27:35
Speaker 2: see what Jess is saying every single month, that feels
27:38
Speaker 2: really big and overwhelming. It puts you back in the
27:41
Speaker 2: control seat of only having to worry about a weekly budget.
27:44
Speaker 2: It puts you back into this cash hub style of
27:48
Speaker 2: functioning when it comes to a budget, where you have
27:50
Speaker 2: a cash hub and all your money goes into this
27:52
Speaker 2: one account and then it gets distributed out to different
27:55
Speaker 2: accounts and then once every single week. Doesn't matter what
27:58
Speaker 2: day it is. For me, it's Thursdays. I have a
28:00
Speaker 2: set amount that goes from my cash hub to my
28:02
Speaker 2: debit card, and I know that that's my food money,
28:05
Speaker 2: my fuel money, and my fun money. So I know
28:08
Speaker 2: that I have enough to You know, you go to Frisbee, Jess,
28:10
Speaker 2: I have enough to pay Frisbee. I have enough to
28:12
Speaker 2: go to the supermarket. I have enough for my brunches.
28:14
Speaker 2: But I am working on a smaller amount of money
28:18
Speaker 2: that doesn't take into consideration rent or bills or overarching
28:22
Speaker 2: expenses that I need to allocate each and every single year.
28:25
Speaker 2: Like my rego that's already done in the cash hub,
28:28
Speaker 2: because I've already set up that functionality to work for
28:31
Speaker 2: me so that I know when regro comes, I have
28:33
Speaker 2: that thousand dollars sitting in that account that I can
28:35
Speaker 2: instantly pay it with. I'm not like frittering away at
28:38
Speaker 2: a bank account because I only have one, and I go,
28:40
Speaker 2: oh my gosh, I blew out on this because I
28:43
Speaker 2: completely forgot that in a month they have redo or
28:45
Speaker 2: insurance d or there's this one overwhelming cost. So I
28:48
Speaker 2: think it's about taking the power back, but actually having
28:51
Speaker 2: an automated system that works for you, that's going to
28:54
Speaker 2: make you feel really empowered and puts you back in
28:56
Speaker 2: the seat of going all right, well, this is where
28:57
Speaker 2: my money's going, and this is how it works because
29:00
Speaker 2: I know you use my budget and cash flow system.
29:02
Speaker 4: Jo, Well, that's what I was going to say, is
29:03
Speaker 4: I do use that spreadsheet that is where my budget
29:06
Speaker 4: is based. And the thing that's really nice about it
29:08
Speaker 4: is the way that you've set it up if you
29:10
Speaker 4: plug in all your numbers for your spending, which you
29:12
Speaker 4: do when you set it up, there's a drop down
29:14
Speaker 4: tab on the side and you can actually with a
29:16
Speaker 4: single click change it from monthly to fortnightly to weekly,
29:21
Speaker 4: and it works it all out for you, which again
29:23
Speaker 4: for someone like me who's not like you, don't have
29:25
Speaker 4: to do it. You don't have to do it to anything.
29:26
Speaker 4: You just put in your expenses and what you're spending,
29:28
Speaker 4: plug it all in, and you can change it twice
29:30
Speaker 4: a day if you want to.
29:31
Speaker 2: I didn't build that spreadsheet so that you could do
29:33
Speaker 2: the work. Yeah, I built that spreadsheet so you put
29:36
Speaker 2: in all of your expenses and it spits out your
29:38
Speaker 2: cash flow plan. It doesn't just go hey JS, here's
29:41
Speaker 2: how to work it out. Do the maths. It says, hey, Jes,
29:44
Speaker 2: how much do you spend on groceries? Put it in
29:45
Speaker 2: this box. Hey Jess, how much has rent? Put it
29:47
Speaker 2: in this box? Hey JS, how much are you saving
29:49
Speaker 2: for your home to posit? Put in this box, and
29:52
Speaker 2: then it spits out an automatic cash flow plan that says, okay, Jess,
29:56
Speaker 2: sit down, this is what comes into your cash hub.
29:58
Speaker 2: This is what has to go into saving. This is
30:00
Speaker 2: what goes into your investment each and every single week
30:02
Speaker 2: or month, or or however you want to calculate it.
30:05
Speaker 2: And this is how much your weekly spending is. So
30:08
Speaker 2: pop this on a debit card each and every single
30:10
Speaker 2: week so that you can put yourself back in the
30:12
Speaker 2: control seat. And then every week, yess, or you have
30:14
Speaker 2: to worry about what's on your upcard. Right, Yeah, exactly,
30:17
Speaker 2: we shut a plug for UP because we still love them. Yeah,
30:20
Speaker 2: that's so true.
30:20
Speaker 4: And I think ultimately the biggest thing to remember is
30:22
Speaker 4: just because you're shifting to less pay cycles doesn't mean
30:25
Speaker 4: you're gonna have.
30:26
Speaker 2: Less money you're earning. The people freak out a little bit.
30:29
Speaker 4: They go, oh my god, I'm only getting paid once
30:31
Speaker 4: a month, but you have the same amount coming in.
30:34
Speaker 4: I mean, if you've changed jobs, maybe your pay has
30:36
Speaker 4: changed flightly, but like ignoring that, but I get to.
30:38
Speaker 2: Mentally, so I get that. And the reason people shy
30:41
Speaker 2: away from monthly pay is because it puts more responsibility
30:44
Speaker 2: on you as an individual on having to do the
30:46
Speaker 2: right thing with a bold amount of money, Whereas you know,
30:49
Speaker 2: being weekly paid, yess, like you only have to meet
30:52
Speaker 2: those things short term, and if you blow money all
30:54
Speaker 2: in one week, then it's all right because you're getting
30:57
Speaker 2: paid next week. And that's the mentality and that's not healthy,
31:00
Speaker 2: but it's the way people see it. Whereas if you
31:02
Speaker 2: got paid monthly and then you blue all of your
31:04
Speaker 2: month's pay, it's another month until you get it. So
31:07
Speaker 2: I think that that's the thing that puts anxiety inside
31:10
Speaker 2: people when it comes to money and budgeting and allocating it,
31:13
Speaker 2: which is why I'm such a staunch advocate of a
31:16
Speaker 2: really solid budgeting cashlow system, which I'll do absolutely for you,
31:19
Speaker 2: saying that this is a very good time to plug
31:21
Speaker 2: our budget cashlow master class. Yes, so if you use
31:23
Speaker 2: what is it, what's the code pod? Fifty Yeah, fifty
31:27
Speaker 2: bucks off you are. Don't say we don't do anything
31:29
Speaker 2: for you. I'll literally do your entire budget cash flow.
31:32
Speaker 2: But you're in anyway, George, can you wrap the boring
31:35
Speaker 2: but important stuff? Of course I can already.
31:37
Speaker 5: Guys, Please remember that the advice sheed on She's on
31:40
Speaker 5: the Money is general in nature and does not consider
31:42
Speaker 5: out your individual circumstances. She's on the Money exists purely
31:46
Speaker 5: for educational purposes and should not be relied upon to
31:48
Speaker 5: make an investment or a financial decision, and we promise
31:51
Speaker 5: Victoria divine and she's on the money. Are authorized representatives
31:55
Speaker 5: in Focused Securities Australia Proprietary Limited ABN four seven zero
31:59
Speaker 5: nine seven seven nine seven zero four nine a FO
32:02
Speaker 5: SAL two three seats five two three. See you on Monday, guys,
32:05
Speaker 5: sign see you