FRIDAY DRINKS: Another Big Bank On The BNPL Bandwagon!

Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr

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She's on the Money, She's on the Money.

Hello, and welcome to She's on the Money, the podcast for millennials who want financial freedom. Today is Friday, My Loves We are back. We've been watching TikTok so that money Don'tjiggle Jiggle song is all that is stuck in my head and it is time to unpack our favorite moments from the week that was, and of course to celebrate the incredible She's.

On the Money community.

As always, we are going to be sharing our favorite money wins. We're going to be discussing what's making news in the Finance World, and we're going to be helping to answer a very juicy money question, which this week is all about being paid fortnightly and having to move to monthly pay, which I think is a sticky situation a lot of us have found ourselves in historically. But first it is time to recap the week that was Miss Jess Grigi. What happened on Money Diaries.

So this week's Money diarist was an international student. She came to Australia from the Philippines and she's been here for over five years, and whilst she was here, she was actually diagnosed with BPD, which is borderline personality disorder. Yes,

Have the cash flow, and then you can be like me and have ADHD and just be really impulsive and want to change things. And there's not a lot we can do about that except education, right, And the more we know, the more power we have, and the more power we have, the more likely we are to stick to our habits and goals that we set. Yeah, if your brain's wired differently, sometimes it just means that you

So yeah, that's something that you can look forward to you hopefully in the second half of this year. Yeah, getting in really early in that one. But time super excited about it.

Me too, now that I know it's on our radar, So that's nice. It's funnier if I pretend I suggest something we've really seen on TikTok actually is with people being more open and honest and even within our community about their habits and their experiences. Sometimes seeing that you have these habits is a trigger for you to realize that you might actually have an undiagnosed condition, which I

So yeah, a big thank you to our diarist for being so candid with us about her experience, because that's something that we're really hoping to chat more about later this year. And she was really really I think a powerful episode. Yeah, I love that, Ji King. What happened on Wednesday?

So this week was another tax episode, ladies, but it was really really interesting.

Did you like that? Did I sell it? You're not selling me? Oh gosh?

Okay, So just told me before off air that I had to be more excited about the tax episodes and I have absolutely no intention of pretending I'm excited about them. Listen to the episodes I am. I would argue very engaging, I'm very nice, lady. I did some very good content. I did some very good research. You are high energy when you say how are the tax episodes? Like, I kind of just like low key laugh because like, who says that? Who says how are the tax episodes?

There are a lot of people who have been asking for text content. Are they going to be excited?

We have been given the people what they want. The community wants it. I want it, as you guys know, I love paying tax because I genuinely think it's a massive privilege and I want to talk about that more.

But yeah, what happened on this week's.

Taxip So this episode was all about whether or not your side hustle is tax compliant, which is super helpful because obviously in our community, so many of us are side hustlers. I'm a side hustler, just as a side hustler ust.

Oh, I thought you're so husty, But that's okay, sad. But this week we actually got to hear from one of my good friends, Tiffany, who spoke about the pickle she found herself in when she actually was side hustling and got some bad tax advice. So it's really important to trust your gut is what I got out of that.

So I think it was good. I am very grateful to Tiff.

Tiff love you, thank you for sharing that with us, because I feel like I just added another dimension to the podcast that really contextualized the topics that we're talking about. Because obviously I can say a million times over, like Jess, this is so important, and you go, they're cool, like to who to who? Though, and this one really put that in perspective for you guys. So I was really

Yeah once again. Okay, So the first one here comes from Julia. I returned one hundred and thirty three bottles at ten cents each last week for thirteen dollars thirty.

I money really want bottle rest. I know that it's they've said, be so good at it. I would be that person like combing bins, going a like part, like it's so smart because it's so good for the pinet and you make money. See what states do it? Just South Australia, No, New South Wales was as well. I'm I don't know. I just know that we don't do it because that's what I care about.

Come on, Dan Andrews, let's get it together, son son, So I actually loved it, actually, so sorry. Let's move on to Morgan money win. I started using shop back but must have done it wrong as the purchase didn't go through. Then I put a claim in and they've given me this.

They give it back purchase, Yeah, they give it back. Is that the same Morgan from last week who had a money win?

Morgan hot tell me if.

This one's different, there you'd go. She also wrote money loss It was my birthday, so I got heaps of birthday vouchers and emails from lots of retailers. So I spent a fortune. That's a little trap to be mindful of.

I thought you had the same money. Don't you want vouchers on your birthday? Like that's a good thing.

Well it liked to spend true.

Correct, I'm learning v The next win here comes from Emily. I needed a new top for a birthday dinner, and I found one in Witchery for sixty nine dollars ninety five. I didn't have a Witchery account, though, but my mom didn't. She was with me and she had seventy dollars. Incredible about sire, so she let.

Me use them.

Thanks three top money when Happy birthday, Emily. That actually leans into the money when I had On the weekend, old guys went to the bookshop to pick up a book recently thanks Stimmix went in. They asked me if I had an account. I didn't, turns out, which is very strange, because it turns out I've been putting it all under Steve's and so I gave them Steve's mobile number.

I thought you were going to say. You pointed to the book and were like, do you know who wrote that?

Your book?

Oh?

No, I do do that? Ask Jess.

Every time we fly, which has been arguably every single month. We have been doing a lot of travel and going back and forth to Sydney. I literally point at the same bookshop every single time in Sydney airport.

I'm like, look, Jess, that's me, and she's.

Like, shut up, get over it, get over it. You wait, it's going to be two by September. I'm gonna be like look there and there, it's gonna be wild.

The next win comes from Jennifer money Win. I sold a washing machine on marketplace. Hubs wanted fifty dollars for it, but I put it up for eighty dollars and the guy who bought it paid one hundred instead.

What shit, That's not how that works. What ulterior universe or alternate universe do you live in, because that's not how Facebook marketplace works. What happens is you should have put it up for one hundred dollars and they would have bartered you down to ten.

She was in luck, all right. The next win comes from Chloe's small money win here. I took my little two and a half year old to the supermarket yesterday and they have one of those cars where you put two dollars in they move, and the kids are always so attractive to those you know the ones I'm talking, Yes, say, well, someone had left this one going, so little Missy jumped in and went for a short ride. It made her

To it, a little toy make bank.

Do you reckon kids someone's side hustle?

Well, it's like the vending machine thing, Like just anybody can own a vending machine and put it somewhere, which blew my mind. So Eric, because do you need to permit? You'd probably, I mean it would probably very counsel a counsel. But like most of the time, I think I've been watching them on TikTok, people just get permissioned from like a shop owner or a business and say hey, can I put this here? And you get like, I pay you a fee to like yeah, and grab a little side hustle.

Imagine if your side hustle was carousels, not burn that would be really cute.

I would ride it all the time.

If your side hustle is carousel, please call me.

Oh my god, money diary.

Okay, okay, okay, just outing Amy Lenardi again, who is one of our favorite people in the She's on the money community.

She had a carousel at her wedding.

So yeah, she had a full blown carousel, and now I want one because it could be someone's side hustle.

True. That sounds really expensive for me. And what's your next win?

The final win of the day comes from Shay. I got a brand new dress with tags on it for twelve dollars fifty from the up shop and it's still one hundred and thirty dollars online.

Oh my gosh, money, little monkey face.

Monkey emoji covering its mouth.

Yeah, I love that. I love that. I love it when you describe them to me. Yes, it was like that.

Time that you used to explain all of the emojis to me. It's a long time to bring that back. That was like season two.

I was a listener then I didn't work here were you like George just sucks?

Did you used to think George was so cool and then you met her and you're like, oh no, you felt about me.

You exceeded my expectations.

Oh, George absolutely did dark for me.

Excuse me a podcast? So you did.

You did such a good job, thanks, Matte. You did such a good job and you only cried a couple of times over that.

Exactly right.

Oh my gosh, Well, it has been so good celebrating some of your budget Direct money wins for reward winning insurance search budget Direct budget Direct Insurance solved. Let's go to a break, and when we get back, we are talking about being paid monthly instead of fortnightly, and we have some hot tips of Geeking's gonna put on the table. All right, we are back and we are going to talk about the spiciest topic that the She's on the Money community talks about.

What is that you ask? I can hear you. Look how excited Jesse is. It's by now, pay later.

And the question on everybody's lips I eat mine, is why does every single bank feel like they are coming out with a buy now, pay later at at the moment and where are their ethics and why are we doing this?

Yeah, we've been slammed with dms this week from people sending us screenshots because NAB has just announced they're joining the foray of the buy and now Paylada, why are you doing miss? Everyone wanting to know now that I suppose a more quote unquote formal or official institution is doing buy now pay later because historically it's just been platforms that exists that only offer that, so like an after pay or a Klana or one of those other

Or I don't think they care to be brutally honest. I think what they care about, and this is me being very glass half empty, is making money from you as a consumer. Right Like they're a bank, they're a business. Obviously, mortgage products are one product that they could offer you.

Now Pay later? Like so easy? It's all through one app.

Like to me, it just feels a little bit like they're taking advantage of the low hanging fruit and going, well, how else do we make money from other demographics, which is exactly what they're doing. They're a business, and if you look at from a business perspective, it's probably a very smart move. Given how big after Pay and Klana are and how big every other buy and now pay

It gives me the ick. Guys, So on that ap website, there's not a whole heap of information out yet because apparently earlier access is coming soon. They're currently building the height. But it does say that there is no interest or late fees, which makes me wonder how they actually will be making money off of something like this, maybe with an annual feed. Yeah, I was looking into it.

It says it's going to be launched in July twenty twenty two, which means their PDS is not available yet, which as Findational Advisor guys, I really need to read your PDS so I can't judge you, like I really need to know how you're actually making money, because from my perspective, it kind of d of makes sense that they're doing this, But how are they making money? Like how is this profitable if there's no late fees or interest charges?

Like are they actually.

Doing this to put people in a better financial situation?

I mean, on paper, no interest, no late fees, sounds like a step up. But without that information being available, you would think that people couldn't launch or tease a product or a financial product anyway without having that PDS and information available. So I was a little bit surprised about that. But we'll keep you posted once it does launch.

And that leans into the question and I guess the thing I've jumped up and down about for a very long time, which is calling out for better regulation on buy now, Pay Later, and it hasn't happened yet, but you look at it and go, maybe they are going to be a little bit more responsible about this. There's a thousand dollars limit on it, which is obviously a lot of money, but having a limit is kind of good. Maybe with this survey that you were mentioning before, there's

I think it's a good question.

Feel free to slide into my DMS nabin and hit me up and let me know.

Having said that, V and j Rick, do we think that maybe it's just the big boys? You said the other banks are doing it as well, kind of reasserting their authority would be in that space.

It bank for sure, Like all of a sudden, how any we've seen pop up from banking institutions in the last let's call it four to eight weeks. What's three.

It's actually insane. There's been three or four of them come up. You're right, And the interesting thing you've said before about target market that's actually a part of their compliance regulation nowadays. So they have to do what's called a target market determination form. So you know how I always say, have a look on the website, read the pds, make sure you know what the product disclosure statement says.

I ate after pay trying to you.

Know, if you can't afford it and you're broke cues laughter, pay like vibes, and it's just so unethical. Whether they actually stick to that with their marketing or not is a different story. NAB to be honest, and the bigger banks have been very good at this. So this is not me being cynical of them and being like, oh my god, they don't stick to their target market determination.

Like, maybe that's not right kind of which is the exact opposite of what.

You just say, especially and to talk about it again. And I know we've mentioned it on the podcast before, but during the Royal Commission, after paper was actually asked to stop targeting young millennial women. But I don't believe

Going back to what you're saying before about kind of waiting to see whether this kind of you know, is a good step in the right direction in terms of seeing perhaps an example of how buy now pay later could be done better or more correctly. Do you think that now that the big banks are doing it, we might actually see it become regulated because something we hope, I would pray, something that we've kind of kicked up a fuss about in the past, is the fact that

Look, I would love to think and this is where, like I want to see people walk the walk, not just talk the talk. I'd love to see what actually happens here and the way they actually implement it. Because banks have a lot to lose if they do this wrong, but a lot to gain if they do it the right way. So I would think that it's going to be more regulated. By reading through whatever information is available on the NAB website, it does sound arguably like a

In to say don't use buy now, pay later.

Yeah, because there are a lot of people where this really works for them, and it does the right thing for them and their cash flow. And as we've seen in our community, there are actually a fair, fairly big handful of people who are using buy now, pay later companies quite strategically or using it to bolster their cash flow or put them in a better position or pay off something they were definitely going to purchase anyway, and it doesn't financially impact them anymore. So I think we

I've just turned my laptop around to the little marketing banner on the NAB website you have.

It's a it's a millennial female.

Having the time of her life, and it says now now behind it. So that's not like a family sitting around looking at the bills is it doesn't really match marketing.

So it's like and I'm a little worried, but I point and I feel like that's where we are very fair in being cynical and we want to see it happen.

Really we're just like, ah, this is wild.

I can buy a dress for a Friday night and then never wear that dress again, or I can buy things like food now on after pay, or beers out with your mates or espresso martinis. I just think let's be more thoughtful and responsible with our money and actually lean into these products to support us doing that as

Market available anywhere visa is accepted. Arguably could be a positive thing though with what you were saying about, because by our pay latter platforms, the way they work at the moment is they have approved retailers and those approved retailers are often paying a hefty fee to be on that list, which is why a lot of small businesses

Than but that's what it would lead into, right, that's potentially how NAB's going to make money. So they're going to lean into charging the retailer. What does that actually look like? And the question for me is around are we actually happy with charging our retailers? More like for small businesses, I don't want them to have an extra cost wherever possible. I'm not using after pay, so it's just it's an interesting conundrum. I think we can continue the conversation around in the future.

Yeah, anyway, we've spoken about that for more than long enough. Because we have a money dilemma.

We do.

Let's hear it.

Hi, there have you got up money dilemma you just can't solve that. She's on The Money Team is here to help. Every week we tackle your dilemmas, both big and small, to answer your most burning money, career and life questions. To get involved, simply head to our website and leave us a quick voice recording and you may just find yourself on the show. Now, let's take a listen to today's money dilemma.

Hi, ladies. For the past ten years, I've been getting paid on a fortnightly schedule and set up a budget appropriate for that. But I've just got a new job, which I'm really excited to start. But I'm going to be getting paid on a monthly schedule instead of fortnightly, and I'm just wondering if you can give me any tips for how to budget properly when you've got a budget for a month at a time rather than a fortnight Thank you very.

Much, all right, I feel like I've got some hot tips here, guys, I have so many hot tips.

But do you know who has hot tips?

Just freaky because she gets paid monthly.

As we all do. Such a good point. I think that I actually really like it. I've to pay it. Actually, I've been paid monthly.

We can negotiate this, we can change it if you really need off.

No, I've been paid monthly for as long as I can remember. Because a lot of corporate pays monthly, and I quite like it because one day a month you're really rich. No, but one day a month, all of my money comes in, and I know exactly what that looks like, and it make it really easy for me to immediately implement the breakdown of my budget. Yeah, it's like one day exact consistently, and you can have all

We're going to have no content left for the pod guy.

I know, but yeah, I feel like that's the answer.

Right.

It's all about automation, right, and a budget is going to mean it's something different to each and every single person. I think we really need to step away from a budget having the same connotations as a diet, Like it's not restrictive, Like a budget is actually fully comprehending how many dollars come in and what's going out, and feeling

Like it's not about that.

It's actually about understanding what's coming into your account and going all right of that. I spend this on coffees, and I spend this on spresso martinis with my girlfriends, and I'm gonna go out for a brunch with Steve on Sundays. And this is what this is, Like, it's actually taking that power back and putting the energy back into your money so that it's funneling in the ways

Too, well, that's what I was going to say, is I do use that spreadsheet that is where my budget is based. And the thing that's really nice about it is the way that you've set it up if you plug in all your numbers for your spending, which you do when you set it up. There's a drop down tab on the side, and you can actually with a single click change it from monthly to fortnightly to weekly, and it works it all out for you, which again for someone like me who's not like you, don't have

I didn't build that spreadsheet so that you could do the work. Yeah, I built that spreadsheet so you put in all of your expenses and it spits out your cash flow plan. It doesn't just go hey JS, here's how to work it out.

Do the maths.

It says, hey Jes, how much do you spend on groceries? Put it in this box. Hey Jess, how much has rent? Put it in this box? Hey JS, how much are you saving for your home to posit? Put in this box, and then it spits out an automatic cash flow plan that says, okay, Jess, sit down, this is what comes into your cash hub. This is what has to go into saving. This is what goes into your investment each and every single week or month, or or however you want to calculate it. And this is how much your

What's on your upcard.

Right, Yeah, exactly, we shut a plug for UP because we still love them.

Yeah, that's so true. And I think ultimately the biggest thing to remember is just because you're shifting to less pay cycles doesn't mean you're gonna have less money you're earning. The people freak out a little bit. They go, oh my god, I'm only getting paid once a month, but you have the same amount coming in. I mean, if you've changed jobs, maybe your pay has changed flightly, but like ignoring that. But I get to mentally, so I get that.

And the reason people shy away from monthly pay is because it puts more responsibility on you as an individual on having to do the right thing with a bold amount of money, Whereas you know, being weekly paid, yess like, you only have to meet those things short term, and if you blow money all in one week, then it's all right because you're getting paid next week. And that's the mentality and that's not healthy, but it's the way

Don't say we don't do anything for you.

I'll literally do your entire budget cash flow. But you're in anyway, George, can you wrap the boring but important stuff?

Of course I can already. Guys, Please remember that the advice sheed on She's on the Money is general in nature and does not consider out your individual circumstances. She's on the Money exists purely for educational purposes and should not be relied upon to make an investment or a financial decision, and we promise Victoria divine and she's on