Hello, my name's Santasha Nabananga Bamblet. I'm a proud Yr
the Order Kerney Whalbury and a waddery woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on a wondery country, acknowledging the elders, the ancestors and the next generation coming through as this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impact for tomorrow.
Let's get into it.
She's on the Money, She's on the Money.
We will face many stresses in our lives and findancel stress is the most common. Yet when we're in the thick of it, there can be tremendous shame, loneliness and a feeling like we'll never get out of the hole. So today on the show, we're going to discuss how to recover after a financial mess in joining you today on the Cheese on the Money are two women who have been in financial messes and gotten themselves out. My name is Beckside and joining me is Victoria Divine.
Hello, my friend, my financially messy friend. Is that where we're going with that intro? Yes, I feel like it is so true, and that is exactly why She's on the Money community exists. I have been in a financial pickle or two in my lifetime, and so have you, Beck. So I feel like we created Cheese on the Money. I mean, you didn't create Cheese on the Money. I did. But then the second I met you, I was like,
you're gonna come with us. I'm very grateful. It's kind of like a little cult one that I want to be part of. Yeah, Like, I mean, it's all positive, but I'm sure every cult leader says that. I guess
that's why She's on the Money exists. And I really created it honestly to create a space to discuss and support people during their financial journey, because, honestly, before I started She's on the Money, there wasn't a place online that I felt like I could ask money questions, or seek tips and tricks, or feel comfortable being like, Hey, how do I X Y Z. And while I was out of that financial pickle when I started She's on the Money, I just knew that there were so many
people in the same situations. As me and I kind of just I have that is it like a savior complex? Feel like that's what I've got where I see what you're saying, pick you up and help and hug you and put you in a better position, and like that's my way of doing that. So, yeah, I gave you culty. Maybe not. And obviously finance is a massive journey, and I feel like it takes lots of different twists and turns, and we go through so many different seasons in our life.
So I think it's so important that we kind of embrace that and talk about it and how much richer are we having known I guess other people's journeys and what they're going through, and just this idea that you're not alone, because, as you say in the intro, it can be lonely. You can feel shame, you can feel like you're never going to get out of this position, you can't see the light at the end of the tunnel. And then you've been through it. Now you're out the other side. How much better is it?
It's so much better and it totally know what you mean. It's kind of like you're also doing this for the younger version of yourself. The one that was lonely, and the one that did feel shame and the one that was embarrassed.
Yeah, she didn't deserve that.
She didn't deserve that, And there's no place for people who have something really really not embarrassing, but when you're in the moment, you feel like it's embarrassed, you know, like I was too embarrassed to say I have so much debt that I've accumulated on my own. You just worry about that kind of thing exactly. This is a really good place. No judgment ever, no judgment ever outa babes.
But there is a new NAB survey that has recently come out and I found it really interesting. It's surveyed two thousand Aussies and I found that forty percent of people were experiencing some form of financial difficulty. Where are those forty percent? Because I feel like all I'm saying on my feet at the moment is Europe trips yeap, So like that's not reflective with my experience and social media. But that's very true.
But it's also comforting to know, but like sad in a way, but also come to be like, hey, there are people out there that are just like you and.
The fact, oh my gosh, did this one had me riled up. Someone from the RBA, not to name names, came out and said, oh, did you see all of the spending that happened on Taylor Swift tickets? Obviously Australia is not under so much financial pressure as we once had anticipated. Beck, do you believe that because we all bought Taylor Swift tickets we are financially stable?
No?
But also really, there's like how many people in Australia twenty three million or something, and what like maybe one million people bought tickets, not even not even.
A million tickets. No, I need the math, so the MCG. I've done the maths because I wanted to know my probability of getting tickets, which I will have you know. I did get tickets because I am a hustler, if anything.
M hmm.
I didn't get them because I work in media, Because Beck, you and I both know Taylor Swift tickets weren't actually available to anybody working in media. And we you and I we work for radio station. Yes, a radio station. Who not to throw them under your buse, I love you dearly, but we thought that we might get early access because one of the benefits of working in radio, right is that often you get like the pre sale industry peeps, Ye shouldn't do that, So I did the
maths mcg it holds one hundred thousand people. She's now having three shows. That's three hundred thousand tickets. On the day there were more than eight million people trying to get tickets. Obviously, we just love Taylor Swift. Like, it's not actually about whether we can afford it or not. I feel like there were so many people who probably went into debt to get Kaylor Swift tickets exactly. But she's an icon.
It's like when you're sick at home and your mum sees you laughing, and what you mustn't be that what do you want me to do is sit here and just cry all night.
No, you've got to laugh when you can. Like, it's exactly the same, truly the same thing. How rude, so annoying. One out of ten for that comment. I'm sure that they've won a lot of friends making comments like that. I'm not one of them. Also, that tells us that the number of Australians that are under financial stress is currently at a three year high as households struggle with the rising cost of living and all of our interest rate hikes. Feel like that makes a lot of sense.
And then it has been said that this is quote the highest number since the start of the pandemic, and it includes those struggling with paying bills, covering rent or mortgage payments, paying for food and basic necessities, and having any money for emergencies. I feel like that all makes sense. RBA. I support you guys. You're trying to bring down inflation and look after the economy, but you don't need to say daft things that make everybody angry.
Yeah, and make us feel like you really don't get it. You're just outing yourself.
As not being in touch with the common man.
Doesn't get it at all, So that's very annoying. But you know what, the figures you just read out, it doesn't surprise me at all. Like I have been bankrupt before, as you know, and I understand that it's a common experience, but.
It honestly is such commony experience. According to the Australian Financial Security Agency, there were two thy four hundred and ninety four personal insolvencies in the March quarter twenty twenty three. Alone. Wow, So that's not like per year. That was in a quarter. And I feel like those things are only going to
increase as financial pressures, I guess increase over time. And it just really sucks because obviously this is my space, Like I spent a lot of time reading about it and learning about it, and I mean, I now have my own column, so I write about it, and I'm just obsessed with this space. But I also know that the worst has not come, and I don't want to be that doomsday predictor, but there's absolutely no way that the RBA can't raise prices again, Like they're going to
raise the cash rate. It's going to have to happen because inflation has not been chipped away enough. And ultimately the reason they're doing that is actually to put us in the best possible position. But it doesn't feel that way, does it. It feels like they're just kicking us, well we're down, when that's not the case at all. So I think it's like we need to have this balanced view of they're doing the right thing for the economy.
This is just a bad time. We're in a little bit of a pickle, and I guess that's what this episode is about right, yeah.
Scary though all kill Oh my goodness. But we go through many stresses in life. But it won't surprise you to know that financial stress is one of the leading contributors to separation in Australia.
Really, yeah, I had no idea, No, I definitely knew that. Relationships Australia actually says that financial stress is one of the main contributors to relationship breakdowns and also stated that seven out of ten couples find money causes tension in their relationships. I feel like money causes tension in every I think part of everybody's life. Yeah, I think so sad,
isn't it. It's not nice, like not nice. It's one of those things that I wish I could just take away because it's also the mix of money stories, like we spoke to a money today actually to record an episode for the future, and the episode was I don't know if it's come out or not yet, but it was with a diarist who was in her fifties and she's recently separated, and it was because of financial stress. He and her were on such different pages. She was
a saver, he was a spender. There was you know, obviously a lot more going on the covers, I think. But this idea of having not just like financial stress, right, yeah, because if you're on exactly the same page, like you know, Beck, if we're in a relationship and you and I we're working towards buying our first home, but we both just as committed, and I go, Beck, it's noodles for dinner tonight. You go, yeah, no worries, Like you don't care because
we're like working towards the same goal exactly. But if you were salty that, oh well, why can't we have steak? Yeah, and be like oh, we're trying to say even do this and do that, like it would be honestly exhausting. So it's not just oh, Beck, we're going through our financially tough time. Because sometimes those couples that are on exactly the same page during tough times, they just become a bit tougher. They go, oh, this is real trash, but we're in it together, and you know, we have
to do beans and noodles for weeks on end. And maybe they both get it. But I think when you have different money stories, and maybe one person is a spender and one is a saver, it just becomes even more exasperated, Like it just gets worse and worse. Like if you had a partner who was a spender and you're trying to save and everything just feels expensive and
you feel like they're being really frivolous. That's going to cause so much friction, Like that's going to cause like disrupt in a relationship to a point where it might not be able to be resolved. So I think it's important to point out that it's not just necessarily, you know, not having enough money. Sometimes it can be not being on the same page about money, or maybe you've been in a relationship. I can't relate to this, and I
don't think you can either. Well, money's never been a problem, right, And then all of a sudden something happens and it is and you realize that, oh wow, we're definitely very different people. I didn't think this would happen. Money's fickle. Money's fickle.
It's hell, it ebbs and flows, it does. This might be different for different people, but other different phases in our lives where financial stress is more common. Yeah.
I talk about this all the time, as in the different seasons you go through in life, and sometimes you're going through a season where money's hard. Like maybe and this is the most stereotypical example, but like maybe you're newly married and have a young kid and you've got a mortgage and the interest rate has gone up and everything is just stressful because it's not panning out the
way that you thought it was. Sure. And I think that those seasons of life we need to remember that they're not forever, Like you're not always going to have a newborn, be stuck at home or maternity leave, and you know, only be living off one income, like your time is going to come around. But I think during these periods of time we put unnecessary pressure on ourselves because I used to be so good at saving. Yeah, but things are different now, Beck, Like your whole entire
life is different. Like maybe you you've just come back from overseas and you don't have as much savings as your friends or your family. Like there's gonna be different seasons and as you said before, money ebbs and flows.
But what the research tells us is and there was a US study by Bank Create and this is recent, so it's from April twenty twenty three, it said that middle generations are more stressed about money over younger and older generations, with sixty percent of Gen X, so those people between the ages of forty three and fifty eight, and fifty five percent of millennials, which I fall into. So that's people between the age of twenty seven to
forty two reporting that money is a large source of stress. Yeah, okay, okay, So it's not just in the US. I feel like money stress is universal. It's kind of comforting to know that other people are stressed about it. Is you're allowed to be comforted by the fact that it's not just you. Yeah. I feel like you said it at the start, like money can be isolating, it can feel lonely and like you've been through it before. I used to literally lie about how much debt I was in, like I didn't
want to talk about it. People would be like, oh, do you have debt? I don't know what you're talking about, absolutely not, Like what do you mean? Of course me? No, Never you look back on it, and I'm like, do you know how much additional pressure that put on me? Like I'm not lying to make it easier for myself.
In fact, if my friends had known, they might have suggested different activities or different things that we could have done or put less pressure on me to, you know, save as aggressively for thinks like it's so silly to be hiding these parts of our money story because we think that there's shame associated Beck. If you told me that you're in debt now, I'd be like, yeah, okay, what are we going to do about it? Is anything you need from me? Like, it's not a issue, I
don't think. I think it's something that How powerful is it when you go oh no, I am like, I'm just trying to work it out. Yes, let's get it. How good, let's do it? Absolutely, I really really like that. It's just so important and I think that we need to give ourselves a bit more compassion.
Yeah.
Absolutely, let's be kinder to ourselves. I agree.
I think let's take a quick break and after the break we'll go into like the practical tips and what to do.
To recover after a financial mess before we deserve a treat. So let's go to a break. Let's go to a quick break. Let's get back into a bit. I'm really excited. So V you and I made a list. We did make a list. We didn't check it twice we didn't check it twice, so this could be a little bit rogue. But it was on Christmas time, so no one reminded us to check our list twce.
But we did make a list of people who were naughty and nice just for the sake of it, just for the hell of it. But we also made a list to kind of figure out what we can do, like kind of take steps toward recovery.
I think about patch. Yeah, so what was first on our list? We have eight points that we have come up with. Yes, do you mind if you take it away? My love? Okay, well, I'll.
Just go with the first point everyone, so note assess your financial situation. Start by taking a close look at your income, expenses, debts, and assets if any. I always put zero dollars for my assets because unfortunately that's some pretty cool glasses on and probably plus twenty dollars. Yea, all right, big dog energy?
Thank you? Also have a broken fitbit I.
Do I know if I got a more big dog energy because about three dollars to spend.
Oh, very nice.
Straight after that, you're going to create a comprehensive list of your financial obligations, including any outstanding bills, loans, or credit card debts.
This is the stuff that makes me feel overwhelmed. Yes, so I feel like this step is the hardest step. It is so when you're in debt, Beck, how much persuading would it have taken for me to sit you down and be like, Beck, let's look at how much you earn, how much you spend, what you owe, and what you own realistically? And I know this for sure. I would never have done it, and I just would have been like, nah, thanks, Yeah.
I would have probably to make the situation less awkward. Yes, I'm going to do this, but I would never make it.
Less awkward for both of us. I'm just going to lie to you through my teeth.
But I just really I was not in any place to be doing anything like this is very scary and very I don't know. It just kind of like puts it into perspective.
What was the like tipping point for you to actually sit down and go, I need to get my stuff together.
Well, it's when I moved to Melbourne and I had like, I hope no payday loan companies listening to this, but I had just I hope they are they need to learn a few things. Maybe they do but I just got a few.
Don't come into our games about sponsoring us, because I'll say no no. I also hope no real estate agents are listening to this. You know, we like real estate agents.
We do.
But I had just been approved for a unit by myself, a one bedroom, but I didn't have any money.
I had no money. I don't know why I even did this. I don't know why I applied for this place, but I done it. I had to get like literally three or four pay day loans. Is that what they called?
Oh yeah, yeah, yeah.
I don't know why I keep forgetting the name after I've said it. It's good to forget that.
This is a good idea to forget about them. As soon as I mentioned them, and then I was so snowed under. I had so many different debts from different places, and I had no way to consolidate everything.
And so that's kind of what made me think I need to do so maybe I need to do something about it. It's true, though, I feel like these are the conversations we need to have, because how many times can I sit down and be like, Okay, you need to look at your financespec we need to look at what you earn spend owner. No, and you're gonna be like, yep, okay, that's a good idea. You're going to pull this podcast out of your ears, and then you're gonna go and
probably tap on your credit card to get another coffee. Yeah, we're not crucifying the coffee. But I think it's so important to just go. You know what, We know it's hard, We've actually been there. I tried to get out of debt because I got in a relationship and I didn't want to tell my now husband that I was in personal debt. I was mortified. I was like, oh, this is so embarrassing because when we got in a relationship, I had a really good job. I just started my
business like I was bopping along like on paper. If I didn't tell you all the bad things, I looked really good, right, But I didn't want to tell him that I had this massive debt that's embarrassing, Like I just feel like it's embracing. No, absolutely not, and like I only had the remnants of debt, like I'd paid most of it off, but I was still mortified by it. And you know what, if I just told him, do you know how much less stress I would have been
carrying I know. Do you know what? He didn't even care. When I finally did tell him, he was like, okay, and and I was like, is that it? That's your response, that's your response. And I've been working this up in my Headho, okay, no worries. Yes, all right, yes, exactly my favorite tip. So we're moving on to number two. Yep. So we've decided to look at our financial situation. Number two is creating a budget. You still haven't done this? No, no, but that's okay. I'll sit down with you later and
we can absolutely do this. I think that developing a realistic budget is really really important because at the end of the day, a budget it's not about restriction. It's about understanding how many dollars come in, how many dollars go out, and where they're flowing and what they're flowing to and from. And that, to me is really really important. Beck, Why haven't you got a budget yet?
Living in denial for me is comfortable right now. It's not getting anywhere, big river, but I should be really doing it.
I'll do it for you. How about that? I would love that? Is it a deal? It's a deal with shaking hands. It's a deal. I don't know if anyone on the podcast shaking hands, but just know that we're shaking hand. We can high five Reddy. Okay, ready, that was a terrible hard true. Oh we recorded the video of it.
Was a good sound of high five though, true. Yeah, yeah, yeah, right, Oh my god, I'm scared. So Beck is now going to create a budget. You're not in a financial pickle anymore, but that would turbo charge you to move forward and smash some goals. I reckon kind of like, I don't have any savings still, and I haven't told anyone this, but I have ten thousand dollars worth of Victoria fines that I need to pay off.
There, what's number three?
Okay, so let's go to number three. Seek professional advice. Consider consulting a financial advisor or credit counselor who specializes in helping people recover from financial difficulty. Yes, they can provide personalized advice based on yours and help you create a plan to get back on track.
They absolutely can. I have ranted and raved about the National Debt Helpline six hundred million times. The National Debt help Line are your friends? I promise they are not scary. I feel like picking up the phone can be the hardest part of that though. Yeah, So pick up the phone, go have a chat to them. They're all nice because I don't know if this makes you feel better or worse. Guarantee there's a worse story that they've dealt with. If
that makes you feel any better? True, true, true. I guess it kind of does and doesn't because I feel bad for whoever that worst story is.
I know.
But I think at this point in time, if you're just trying to take the first step, you're probably feeling like, oh my gosh, they're going to judge me. They're going to think this is the worst step up, babe. They're not no like they've seen it or whether they've heard about it, Like, there are going to be people out
there literally in your shoes. And to be honest, I guarantee, the second you pick up the phone and have a chat, you're gonna be like, oh, they were really nice, and then they're gonna go, oh, I've done this before, getting back in a better position, so easy, let's do it, yeap? How good is that? That's so? True? Ten out of ten. Number four prioritize debt repayments, So this one can be really hard and there's lots of different methods we could implement.
But if you have lots of different debts, I would look at focusing on paying off high interest step first or making minimum repayments on other debts. So consider your debt consolidation options as well. So if you have multiple debts like you did Beck, maybe we need to talk to someone to consolidate them all together.
Yep.
I do think that balance transfers on credit cards can be helpful, but they can also just end you up in a bigger pickle at the end of the day. So definitely go back to point number three and seek some professional advice because they'll be able to send you in the right direction. Because as much as that can be a good option, I don't want to be a
debbie downer. But sometimes debt consolidations not possible. So if you've got a really low credit score or you don't have a lot of income a lot of debt, like you might not be in a position for that to be an option, but I think we should look into it regardless. Yes, very good point. It is not always possible, but you know, have a look see what you can do. I agree now.
Number five, negotiate with creditors. So if you're struggling to meet your debt obligations, reach out to your creditors and explain your situation and they may be willing to negotiate newer payment terms, lower interest rates, or even accept a partial payment to settle the debt.
I feel like everyone should do this regardless. So yeah, first question, have you reached out to find Victoria? I haven't. All right, Well, what are you doing? You're not walking the walk, are you?
Yeah?
I didn't even know that was I do it. I love fights, Like, maybe I could let me add it. We will write a banging letter. So this is going to be a good example. You've got what teen grand worth? Are fine? I think it's like eight thousand or nine thousand norties? Wease I know. Are we allowed to know what you did? Is it real? Noughty? No, you're allowed to know.
It's just a bunch of like speeding fines and stuff that just accumulated avertar yeah, and paying seventy a month over ten years, and I don't really want to be doing that.
No, let's try and renegotiate that. That's a very good idea. I think it's a good idea. Okay, let's work it out. Let's work it out. I think it's quite smart. Can I add on to that? Sure? So not just creditors your bills, try and renegotiating. Yes, so, as you guys know, I love a good deal. A few of the girls in our team have been jumping online to their bill suppliers. It's a bill suppliers, who is it like your utility?
So they've been jumping online and they're looking at their phone bills, They're looking at their water and their electricity. It's honestly, beck become like a game inside group chat, like we have slack for work, and I swear that she's on the money. Group chat is just people in my team bragging about how they got a better deal. So a lot of them are with the same phone company, the one I'm not with, which is obviously not as good as a Masim. But that's fine if you guys
want to waste your money, no worries. But they've been negotiating to get like a different deal. So one of them was like, oh, I'm paying sixty bucks a month for my plan. I'm getting sixty gig and another was like, ah, that's a bad deal. You should be getting one hundred gig for x amount, And then they're trying to negotiate it with the people online. But the coolest thing I didn't realize is lots of utility companies have online chat. You don't even have to call them beck, you don't
have to be assertive vocally. You can just type out then no, I would like to see if there's a better deal. That's a little bit comfier. It's so much more comfy. It's to the downfall of our utility companies though, because all these millennials gen z we can type, we can type, we can type of big keyboard warriors. Who do you think invented the troll? Exactly exactly. We're gonna get a good deal, but no wheries if not, no worries. If not, thanks for looking anyway. So definitely try and
negotiate with your creditors. But also what bills can you bring down in the introm without a lot of confrontation. We all love that. Let's have a little look. See what's next.
Number Numero six, Numero six, it sounds very classy. Yes, look to see if you qualify for any government support programs you genius eligible for things like income support payments, housing benefits, healthcare subsidies. Check with the relevant agencies to determine if you qualify.
For any support. Genius. I just think that's blanket. It's a great idea. National Debt help learn is going to know about that, sent links going to know about that. There's lots of places you can go. I feel like the best thing you can do is google financial support programs on your state and a lot will pop up. Yeah, genius, have a little looxi.
All right.
Number seven is arguably my favorite and should have been higher. We should have really done this checking list twice. Thing beck maybe, but we want people to remember because it's saved last. It's almost the last thing, all right. So this one is build an emergency fund when you're in debt. I think a lot of people think that they need to build an emergency fund once they get out of shore, or that no, no, no, I shouldn't have money sitting to the side if I'm in debt, it should go
to debt repayments. Like, I totally get that mentality, but I think it's so important to start setting aside a portion of your income into an emergency fund. Obviously, the goal might be whatever you want right It could be three months worth of your expenses or six months worth of your expenses. But I promise, if you're in significant personal debt or you're in a little bit of a financial pickle, that's unrealistic. So let's start with two hundred bucks.
Then let's talk about five hundred dollars. Because if you're in a financial pickle and something else pops up, the only option you're going to have is to go into more debt to pay that off. That's true. Do you know how empowering it is? If you're in a bit of a financial pickle and you know, a bill pops up, or you get another speeding fine like miss Beck across the table who thinks she's speedy Gonzales, you can pay it.
How empowering that on your journey of debt reduction, that you don't have to join back into the spiral of going back into debt. And you go, oh, my emergency fund paid for that, Look at my good financial planning, look at my changed habits. You're going to feel so empowered when you need to use that emergency fund because you're can be like, this is exactly what I've been planning for. Yeah, Like, no one plans to take on
more debt, No one wants that. But life is very, very unpredictable, and I think that one of the things you can do while in debt take a lot of the pressure off and start creating good financial habits is to actually just have an emergency fund that you can rely on a little bit so that you don't feel, as I guess, bound to debt repayments. I think it's really smart. That is very smart. What is the last tip?
Beck, Yes, so this one, I would arguably say, is maybe the most important, more important than that.
No, that's not such thing that is more important than an emergency fund. I take that back, right, number eight? What is it? Stay positive and patient? Oh we did write that one down, and I feel like it's really important though, exactly like recovering from a financial mess does take time and persistence.
Just avoid getting discouraged and stay folks from your goals, celebrate small victories along the way, and keep working toward long term financial stability. You will get there. It does sometimes feel exactly what you said, like you're maybe stuck in this cycle, like you're stuck in quicksand because something pops up and you're in debt orlready, you're going to go into more debt, and et cetera, et cetera. This
is why an emergency find is important. Whether it's ten dollars a month, five dollars a month, whatever you can afford, just put a little bit aside and stay patient with yourself and be kind to yourself.
Yeah, no, I love it all right. Well, I think unfortunately that is all we have time for today. But I guess this entire episode is hopefully making you feel a little bit more empowered, Yeah, a little less alone. This stuff can be really hard. And if you're not in debt and you've just listened to this whole episode, I promise learning more about this is going to help serve one our community so that they feel more heard.
But also you're going to run into a friend or a family member who's going through this and some of these tips or tricks or even just level of empathy can actually help them feel so much better about their journey. Very good point, V, So stick with it. You're all doing a great job, and I'm proud of every single one of you. Yes, we are. We love you all right, We'll see when Friday. Have the best week. Bye, guys. The advice shared on She's on the Money is general
in nature and does not consider your individual circumstances. She's on the Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS TMD and obtain appropriate financial advice tailored towards your needs. Victoria Divine and She's on the Money are
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