Hello, my name's Santasha Nabananga Bamblet. I'm a proud Yr
the Order Kerni Whaltbury 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. Hello and welcome to She's on the moneyodcast. That makes finance fun, especially on Fridays. It is again our favorite day of the week because we get to get our team together and celebrate you our incredible She's on the Money community, Mister Grieci is here with some
money wins again from the community. Beck has a number of Broake tips that she's gonna share with you, and this week we're going to be answering a money dilemma, which is all about exactly how credit card interest works and something that you slid into our DMS about we're chatting about dealing with what you think is outdated money views.
Oh, I know that one's going to go.
But before we get there, as always, we are going to share our favorite five star reviews from the podcast.
Miss Beck sayed, yes, how are you? I'm really good? How are you?
I am great? Have you got a good review to share with the team? I do?
This one comes from Emilee. I just love how easy Victoria, Jess and the team make money to understand. They make it really relatable and break down those gender and societal norms where only the men get to know this stuff.
And then you realize it's like really easy, and of course you can do it because like the boys can do it totally.
Boys can do a week and do it exactly.
It can't be that hard. It can't be that hard.
I've got one this week from Rookie who said, I'm gonna say it, Victoria divine is truly divine.
Oh I see we did that, Thank you, Thank you. This podcast is will take it. My dad says that that's.
A bit cute.
Podcast has been such a helpful tool in reaching a member of your community who has had very limited access to financial knowledge given my field of work. Thank you so much for sharing your knowledge, tips and insights. The skill of turning the dull and dry topic that is financial literacy into a fun learning opportunity must be applauded. Have been enjoying the banter from the co host Also keep up the great work.
Is that right? Thank you? Thank you is a fantastic groups.
Thank you nice. I also have another fantastic one. This one's from Lizzie and she says, longtime listener of the show, and I've been really enjoying the new vibe since Beck started last year. Isn't that so cute? It feels like the show has found its stride again with the three co hosts, and I am so enjoying your updated format. I really like hearing Beck's perspective. She and Victoria have
great energy together, which reminds me of Georgia King. So if you hadn't been around, Georgia used to be on the show, but then she moved to London. Yes, Beck got the gig.
Oh my god, I actually my stomach is like doing first.
That's so cute and yeah, this is all about you. I keep picking ones that are just like I'm going to die, and I really like how Beck represents the everyday person who might not have as much financial knowledge. Really enjoying the vibe of Friday episodes and hearing the three she's on the money ladies, keep up the great work, and please do some more content on weddings and bridesmaids and travel.
Okay, so much?
Isn't that cute?
It's really sweet? I love it. I love it.
But let's get back into the show. Enough ego stroking. If you would like to leave a review, obviously you can do that on Apple, So Apple allows you to type and you could even ask us questions in the review, which I might. Let's slip through to the keeper, you know, like, if you've come this far, you're doing us a solid. Will do you a solid? But onto the community, Jess, what's happened in our Money Wins and Confessions thread this week? Already?
Firstly this week we've got one Frihannon that started as a loss, but it turned into a win. She said she had to get a tire replaced on her car. She didn't check when she left it with the mechanic, and when she came back the next day, they changed the wrong tire, So she took her back the day afterwards and they changed. They do that that actually did to be changed, so she did it with two year free tires for the press.
That's amazing.
How did they change the wrong tire? I know. It's like when they hear and this is maybe wad to have my foot amputated, and then you come out You're like, that is the wrong foot? Fu, how do they get that wrong?
He's so bad.
My partner's a physio and he says whenever someone comes in for like something that's one like one leg, one shoulder, whatever, he always has them like point at the one just in case, because he doesn't want to like, yeah, go for the.
Wrong thing, hold on backtrack. If they only have one foot, he makes them point at their one.
Probably not in that case. I would imagine there might be some flexibily there. Next, I've got a money win from Sammy who said money win. I shopped stasher Bags Black Friday sale and bought a twelve pack of bags that seemed like a suspiciously good deal. Turns out the website had an error and they had accidentally listed the pack of twelve for the price of one. They have since offered to ship out the additional eleven bags for free to honor the purchase as they shoot a point, get eleven free.
Also, like Stasher bags are really expensive, so that definitely was an error.
Like that's a good win.
Next, I've got a money win from Alicia, who said she opened up her.
Shares his account. She obviously owned the SotM code. She invested in some shares and she got a divid end.
Of twenty cents. Incredible for all little things. Big things grow. That's not even going to get your Maca's cone yet, but it will will She's going to grow.
We love that. Incredible.
Next one from Melinda who said she just did the New South waleses toll relief rebate online and she got herself a very tidy three hundred and eighty dollars back.
So like free money.
I'm going to tell you, she said, if you go onto the Service New South Wales website to check if you're eligible, if you frequent the toll roads in Sydney it is Sydney specific sad for those of us in Melbourne, but if you're in the Sydney.
You do you drive up to the family, So great to know.
Jump on there.
Check it out the New South Wales website service New South Wales Nose. I've got money from Emmy who said she didn't feel like cooking on Saturday. I get that instead of doing takeaways, she went to col She got herself two frozen pizzas that were on special for dollars fifty for the duo and a three dollars fifty tharlic bread. She went to the checkout found out she had a ten dollars fly by as voucher pizza for two for six dollars fifty.
Okay, but like frozen pizzas, the what is the brand?
It's the like Doctor Restaurante, the rests one, like they're actually so good, the spinach one and they go on sale and they're like four dollars each.
Yeah, you want to make it bougie. This is what Steve and I do. Okay, we get two pizzas because like you need a whole one each because they're quite thin based, like that's a meal. So four dollars for your pizza and then you get a bag of what is it rocket or pizza? Yeah, but I'm not putting on pizza oh side, salad, oh side salad, diet coke, elite meal.
Oh that sounds amazing. It was a journey and a pair.
Oh yeah, but like that's a bit bougie. I'm sorry, I don't I don't want the pair, but apparently what you don't put pair in your salad? Pair and parmesan and salad.
Yes, I thought you mean on the pizza, and I was like, that's taking one of.
Pineapple but worse. No, one of my favorite pizza shops which is near my house. So I'm not going to name names, but if you know, you know they also sell the Blazing Pizza.
Very good, but they do.
A pair parmesan and goats cheese like pizza.
Unsure. No, you wouldn't do you know what? You wouldn't love it?
I don't put it beck and I would love it. Yeah, you'll order your margarita every single day of the happy I've actually ordered you the margarita from that place and we've had it together before and you said it was really really like, I guarantee these pizzas the Blazing Pizza. Okay, I'm just going to explain these.
You need to know.
So it's red sauce pizza bas like salami pepperoni, mint leaves, married as spokes, valley cheese and lemon.
Oh no, it's the mint got me the men.
Oh it's next level.
Okay, well maybe you can come to my house.
I'll order the pizzas report.
Yeah.
Yeah, they also do a very good chocolate moose.
I love chocolate moves.
Okay, so I can sell you. Yeah, anyway, back to frozen pizza. Four dollars money win pargain.
Lastly, this week, I've got one from Anna who said a money lost, but a happiness win. She went to the Wiggles show with her two toddlers and spent eighty dollars two bubble ones, so overprized.
And it kept them entertainer.
Wiggles, We've got to talk, no wonder you guys are all rich.
Literally.
May I suggest someone has said this in the group before, But if you're going to a kid's show, a Bluey a Disney on eye said, pre buy your toys Kmart, hide them in your back hack and just bring them out when you get there.
Kids, get the toys. It's a lot cheaper the bubbles.
Dollars for bubble ones is certifiedly that's criminal, that's highway robbery.
Like I actually can't.
I mean they're a bit of plastic ones probably dollars quarters for two.
Still yeah, I know, but still it's like I just can't imagine.
Do the pre shop, That's all I'm saying.
I do the pre shop absolutely when parents go to Disney, and that's obviously very like niche because it's American, But like I would be stuffing my bag for like they're not getting anything at Disney, Like no, absolutely not. Everything is so expensive. Wow, I got a Mickey cookie cut up Mickey sandwiches. Like it's just it's not happening.
You can pray buy like so many of the licensed things now, like Camar on Target.
Yeah. And one of the tips that I got when like someone messaged me while we're in the US, they said, go to the op shops near Disneyland if you're ever traveling, because a lot of the merch ends up there, so you can buy like the popcorn buckets, or you could buy like the bubble wands or whatever for super cheap and then you can take them to the parks exactly. So always check op shops for merch.
That's a great idea.
Not bad, not bad. What are your broke tips this week there.
Okay, just really quickly, I want to say, with the person who told us about her car tires, if anyone wants me to put a video up of how to change your own that I do the money I do, would.
Would would show you.
I'm actually gonna make it gold and cheese on the money if you're willing to be a actor, a paid unpaid actor. Yes, yeah, that would be really good content. Okay, great other day, did you see the other day, I was like, oh, I can change my own wiper blades. And I was like, oh, I buy them from wiper Tech. My dad told me to, like, you don't question my dad when it comes to cast stuff. So I ordered them and then I just changed them myself and it was so easy and so cheap. Yeah, it just it
made sense. But so many people don't know that you can just do it yourself. Yes, exactly.
It sounds like it's sponsor, but it's not.
But that wipe Tech brand is who I use too, because they've guarantee that if you can't put it on and they'll just give you money back.
Yeah.
I like that's so.
Yes, but that's a good deal. And I have actually DMed them and asked them for a discount coach because like they're surprisingly they're actually a small business. So I was like, oh, I like that, we're supporting them, and so I asked for a discount code. Foreshes all the money yet tear back. But if we get one, I will pop it in the show notes and I'll like pop it all over social media, because like we should just be doing this stuff ourselves. It feels over. It's
like finance. For so long we've been told like, oh, that's a man's game, like car stuff. It's easy. Yeah, it really.
It all makes sense as well, Like.
I changed my window over the weekends, finally did put all the panels off blah crazy and you know, your side mirrors, all these things, like you know, if you can do it, if one person can do it without the help of like big industrial size lifters and things, you can do it in your own backyard.
So I would love to.
I love so we're all just changing our wipers, we're topping up our wash of fluid, we're changing our oil. I love this for us.
Yep, completely great.
I think that's so good. So cool, Well I'll do that. I wouldn't have been clear out my my boot for the press. I'll just make it as possible.
Absolutely love this for us.
Okay, so my broke tips. This first one comes from Lisa, who says, stock up on all frozens.
I'm assuming you.
Know, like your turkey's your chickens on Boxing Day because of those things they stay, they stay good, and the next year you've got it all there. So it's also even if you paid full price for it this year, for next year, it will still once you get there feel like it was free.
But wait until it goes on sale.
Everything will go on half price even cheaper, probably when they get desperate and just stock.
Up if you have the space.
So love a Boxing day ham, Yeah, boxing hair, So like a boxing day ham obviously if you don't like Christmas ham weird but okay, but like baking a ham and then having ham sandwiches for the period of time that the kids are off school and like school holidays, and like you can use the hambones to make soup and like there's just so much you can.
Do with it.
But ham is usually really expensive. So yeah, that's also a hot tip, so you're not freezing it, but like that's a good mulchi purpose item that you could purchase and your money's worth and you can make like ham sandwiches, take them to the beach over summer. Like that's my childhood right there, Ham mustard sandwich with like fresh white bread.
Yep, fresh with fresh Eric.
Now it's freshly baked by Eric. My dad's taken up baking. Oh yeah, he bakes bread now. And so whenever I'm going down to his house, I like put in a little bread order. I've been really liking his rice aldo.
Yeah, will you bring some in?
Yes, I will bring some Eric bread for you. Thank you one hundred percent. You will be shocked at how good it is, because I was too when he said he was baking. I was like, oh, here we go, here we go. But it is very good. And also, do you know what, I'll ask him for the tips because he buys the really big boxes of bread flour. Yeah, and he's already done the maths on how much each loafer is costing him, and he's like, oh, baker's delight, this would have cost you seven dollars in my kitchen
two dollars eighty. Like he's a wizard. He's a wizard. Yeah, okay, that could be that far from it could be a broke tip. Maybe if you get those, yeah, Eric spread tips, get those to just get that bread.
Also devon instead of ham. I don't know if you guys ever dabbled, but anyway, Oh no, you guys call it something else.
I don't know. Don't you speak a different language right now? No, I always had devan. You call it true, we
No?
call it. But what do you mean if you ever dabbled?
That is all I would accept as a sandwich option growing up. Devon sauce, white bread, and the storm mustard. Oh that's way too fancy.
I haven't tried that one, but I will try that one.
Tomato sauce, stras stras sandwiches Victorians.
I'm not a meat Jesse also doesn't lack sandwich. I don't even know. I can't imagine. You got can buy a lot of love sandwich.
Like my favorite food, like not not favorite, but my most convenient lunch is the seven eleven sandwich, like through and through. Like if you know me in person, you know I'll be like one sambo like that's I'll shout, like I will go and get them. I drive from my office to get a seven eleven sandwich because in my head, that's the easiest lunch option for me.
Jessica doesn't eat them. Come on, I'll get a seven eleven piles something I know you do.
It's not the point. This isn't sponsored. This is just me genuinely having a very deep passion for seven eleven sandwiches. But like good cries, how can you not like an eggle lead of sandwich?
I think after a few bites, I'm like, okay, I've been here, have done that.
You know, chicken chicken abbow, I like you.
Like the chicken avo. They also do a very mean ham tomato cheese.
I just get really worried about gristles. You know, I don't like gristly meat.
Why would they use gristly meat? They would sell no sandwiches.
Scared someone just literally walked out of my grave. Give me sorry, Sorry, you got okay. Next one comes with my friend. Now.
I know this is it's kind of briefly mentioned before. I know, I know you've got that commerents. But Victoria, I know you don't like me reusing, so I don't think this is a technically round because we.
Should be getting the most value out of your segment. I know it gave you your whole segment, and you keep telling me the same thing.
I know it's cheating, but this one is a little bit of Australia.
But my friend, you have it.
My friend literally changed the trajectory of her life by doing a free course manifestation and that too. Oh no, that was a joke. What's the free course?
It was how to build.
A multi level mark feeling skeptical. I'm not gonna lie to you.
No, it was one of those you know, Victoria, I don't know if everyone does it, the free taste, the free tape courses. Okay, there was actually a good store, yeah, outdoor something. So she's like to guard and doing like all this kind of stuff.
Oh that's cool. So she did a free taste course and then got a new job. Is that what you're saying? You like, upskilled?
She upskilled, But she's like, actually just completely changed. Like she was a cartographer.
It's like a map person.
I don't really understand it now doing outdoorsy stuff, which is what she actually closed.
That's her passion.
And I just feel like Taifa is free too.
It is free and if you well, you know, particular courses and if you just like keep checking every year, I feel like they change, they update, and just just see what's going.
We're always looking because Jess and I we keep talking about wanting to do an olds Land course, but we haven't found one that's like accessible for both of us and on days that work, because the Odds Land course that we want to do, like is like the proper one, and I think it's our closest one is in the city and it's on like a night that doesn't work, and it's just it's not going to work out yet, but one.
Day we will get there.
This might be so cool.
That would be really cool.
I know one handed because my Grandma's death, so I could teach you that, but it's not very universe.
No, I like it. We've started doing sign language for Harvey actually, and so we've made sure that it is oz Land sign language, so I can do some small things. But maybe Harvey and I are learning together, like he knows eat and more, and he knows like all done, and he knows like milk, and he knows water mom and dad, so like there's like a heap of them that we've been slowly learning. But I think it's really important.
That's cute. That's a really really good one to learn.
Yeah, when you have an audio based product podcast exactly, exactly.
Okay, So this next one was obviously my own. It is Black Friday related.
And it is my Friday days.
That's perfect is today.
I was like, when the hell is black?
Actually today? That's today?
Good to know, good to know.
So Woolworths are doing a I don't know if you've heard of Everyday Extra, but it's like I have, Yes, you can genuinely if you shop at will Words a lot, you can genuinely save like a fair bit of money every year, every month. Even so basically for thirty five dollars a year, you could save up to one hundred dollars every month. And so this particularly deal, Everyday Extra is half price because of Black Friday.
And I would recommend having.
A look because if it, yeah, and if Woolwards is doing it, I'm assuming that like Colds and Flybys and all this kind of similar deal. So but I just think, take advantage of these black write things. And if it's thirty five dollars once off and you're saving money for the whole year.
I don't know, that's a win win.
Yeah, and you get a I remember seeing Emma Edwards the broke and you get a free thing every so often, like it's random.
She was she.
Wanted the chocolate and then got the peppermints, and I was like, I would have been so annoyed by that too.
Yeah, but like you get quite often. I think, like you get to pick up a little freebie, which is kind of fun.
So that's me. I like that. No, I reckon that is a really good place to believe it. All right, let's go to a really quick break on the flip side. I'm excited for this. We've got a money dilemma about exactly how credit card interest works. And you slid into our dams about something that I think is gonna get a little bit spassy dealing with what you think is outdated money use. I don't go anywhere, guys. Welcome back everyone.
Let's take a listen to this week's money dilemma.
Hi, there, have you got a 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 short voice recording, and you might just find yourself on the show. Now, let's take a listen to this week's money dilemma. Hi, she's on the money.
Look. I work as a banker, and I've noticed that a lot of people really don't understand how interest works on credit cards, specially residual interest, and there's a lot of confusion around that. I think it would be absolutely awesome if you could explain how interest on credit cards work. Thank you bye.
This is a good question because I actually didn't realize until recently that my credit card interest period is more than the money. Like I'd always thought in my head that you whatever you spend in the month, you'll pay off by the end of the month.
Is it forty five days?
It is forty five days. And also it's like from the date of purchase. So within that month, if I spent one hundred dollars on the first and then one hundred dollars on the twenty eighth, I'm not paying the twenty eighth that much, which I didn't really I don't know why, like I just had obviously never taken the time to figure it out for myself. But say again to me what you're saying. So it's kind of like
a roving period, right. So, like my interest period on my personal credit card is forty five days, which obviously no month is forty five days, but it's also from the date of purchase, yes, like within the month. In order to avoid paying interest, I only have to pay for the things that I'd purchased within the last forty five days. Okay, got you got you got? Yes, And so I used to think that if you paid for something on the twenty.
Eighth, yeah, I fully just thought whatever balance was, which is really stupid, but I just thought, whatever's on my card needs to be paid before the end of the month.
Or a pay interest.
I mean not sure that's a healthy habit. Yes, it's a healthy It does give you a bit more flexibility knowing that it's forty five days. Most of them are forty five days. But you've got to make sure that you're privy to the terms and conditions of your credit card, which I would hope if you are signing up for a credit card, you read Jessica. But I also think before we get into this, credit cards like they are,
I think they're the devil, right. I think that they are one of the worst things that can happen to people who aren't good at money, But they are one of the best things that can happen to people who are great at money and are good at collecting points, like a few people in my She's on the money team, a fantastic at using credit cards, like Brook for example, she is our video producer and does our course content.
She is so good at points hacking that she always flies business class basically free, like wow, I am always so impressed. But she's also very financially responsible, could never be me Jess, very good with her credit card getting all of her points Beck. It's not that side of the table, Shu shun the non believer, like, it's just not relatable. So I think it's really important to preface this.
I don't know, I feel like whenever I talk about credit cards, I owe you guys a little bit of an explormation or like a disclaimer beforehand that this isn't going to work for everybody. But residual interest is something
we should all understand. So residual interest is sometimes called like trailing interest, so it's interest that follows the loan happens when you carry your credit card balance from one month or one period of forty five values to the next, and it builds up every day, so daily between the time that your new statement is issued and the day that your payment posts. So since it accruise after your billing period closes, you're not actually going to see it
on your current statement like they don't. So say your statement came out on like the twenty fifth of this month, on the thirtieth of this month, you would have had, you know, another five extra days of interest that has built up. So if you paid out your quote credit card in full on that day, you actually would have had this trailing interest that is building up as well.
So if you're planning on paying out your credit card in full, my recommendation is always call them up on the day and say, hey, can you please calculate my balance as at today and I will pay it today, because otherwise you'll have trailing interest that needs to be paid as well. So since it accrues, you can't see it. So even if you paid like the full amount as I was explaining, your next statement might come as a surprise because you accruede some interest in that five day
window or in the window between your statements. Does that make sense?
So I've written out an example because I'm like, this.
Is really important that you really get this so you never have to like calculate it yourself. In fact, it can almost be impossible to calculate it yourself. Your bank or your credit card issuer will be able to do that for you. But essentially you could estimate it, because it accrues every single day, you don't know at the time, whatever,
you could estimate it. So say you got like a whole heap of expenses a crew on a credit card bill and you just couldn't afford to pay it off all at once, and so you had one thousand dollars on your credit card from last month's statement, and maybe say that your annual interest rate is eighteen percent. I feel like eighteen percent is a pretty normal interest rate for credit cards these days, because most credit cards in Australia sit between like sixteen and twenty five percent as
an interest rate. So what you would do is you would divide your annual percentage rate of eighteen percent by how many days there are in the year. So you're going to divide eighteen by three hundred and sixty five days, and that takes it to being So the answer to that is point zero four nine three percent. So that's not going to make a lot of sense right now to you.
But when you.
Multiply this by your current DAN so you've got that current balance of one thousand dollars, the result is forty nine point three cents. So that's what you're going to add to the balance every single day that you don't pay. So you know how I was explaining, like, if your bill came on the twenty fifth and then it's due on the like, or you paid on the thirtieth, and you've got those five days, you would need to take that forty nine point three cents per day and accrue
that every single day. Now that doesn't mean it will be one hundred percent correct, but that's a good way
of like estimating it. So if I guess your billing cycle for that credit card bill that you you rolled over from last month because we just couldn't pay it off, is one thousand dollars, and it begins on the first of every month, And let's say you pay off the thousand dollars on the eleventh of that month, you would be charged approximately four dollars and ninety three cents in residual interest on that thousand dollars by the time the
payment was received. So does that make sense. So it's like this tiny amount of interest, which they were clear to you existed, But residual interest is the interest accrued between the day you got your bill and it was clear to you what you owed and then the day that you paid it.
And the interest is going on the amount that you owe or the entire so for example.
It'll be on the amount that you owe. So, like as Jess was saying before, like if you're in your and this is why credit cards start to get real complicated really quickly. Say you had that one thousand dollars that rolled over from last month, and that's there on the first of this month, and then two days in on like maybe let's say the third of this month, you made a new purchase. That interest wouldn't apply to that purchase that you just made because you're in your
forty five day interest free window. It would only apply to that one thousand dollars. But after that forty five days, if you had that one thousand dollars and your new purchase, the interest would accrue for that too.
Gotcha, okay, gotcha? Does that make sense? It does? It does.
So let's say, for example, because it's been a long time credit card, but let's say, for example, the entire credit card you have used like five thousand dollars of it, but the actual bill was like one hundred and thirty eight dollars. Ye, just to clarify the if your interest is being on that full five thousand, full five thousand, okay. Yeah, So that bill.
That you get in the mail, which is really frustrating to me, Like I want a bill to come in the mail and be like bexsied you wigh five grand?
Yeah, okay, But what.
They're going to do is this is the minimum repayment. You only have to pay us back one hundred and thirty eight dollars of this five grand. And you go, oh, that's not so bad.
I'll just pay that. Yeah.
But you know how we always talk about the magic of compound interest and how sexy that is, and that's the money that your money makes, and that money makes money over time. That's exactly how credit card debts work. But it's upside down. So every single day that you
hold credit card debt, you're essentially instead of paying. Like we know, the Australian share market, right on average, over the last thirty years, has returned about nine point two percent, right, your credit card debt is racking up way more than that. So like it's at eighteen percent. So like every month
you're paying the bank eighteen percent. So you can now see why it's such a good investment for banks to offer credit cards because they're getting eighteen percent return every single time you don't pay your bill, and it's not in their best interest to issue a statement that says, back, by the way, here's the total amount you owe. By the way, like work really hard to get rid of this.
They're going to go, hey, Beck, so you only also one hundred and thirty eight dollars because we'll just roll the five grand over and you can just pay interest on that. Usually your one hundred and thirty eight dollars is your interest payment. You just have to pay your
interest and keep it going. So, Beck, I've jumped onto the moneysmart dot gov dot au website, which we all know I adore, right, and they have a credit card calculator which if you have credit card debt you absolutely should go on here, But we use the example before you said, V what if I have a five thousand dollar credit card interest rate, We're going to go with
eighteen percent. If you make minimum repayments of that one hundred and thirty eight dollars each and every single month, Beck, that will take you thirty four years and seven months to pay that debt off.
Oh crazy, wow?
Right, And that's at minimum repayments, Okay. That means over that period of time, you will pay, in addition to the five thousand dollars that you borrowed, an additional ten thousand, six hundred and forty seven dollars because you borrowed the money from the bank at eighteen percent.
WHOA, it doesn't not just hurt your side?
I know I can totally see too how I mean, of course, like it just happened to me, but like how easy it is to just be snowed under it.
It's a slippery slope. Because you just got the letter in the mail and it said, Beck, your minimum repayment is one hundred and thirty eight dollars, and you said, fantastic, I'll just pay that then. But what you're choosing when you pay that as the minimum is you're choosing another thirty four years and seven months to pay that off, and you're choosing to pay an additional ten thousand, six hundred and forty seven dollars on the debt that you already owe. WHOA Like it's not worth it, is it?
But they don't want you to kind of know that. So the thing that they will highlight is that all you have to pay today is one hundred and thirty eight dollars. I mean, if you look at the rest of the statement, legally they are going to have you know your total amount owing and how long it will take you. But you didn't see that because it's in the fine print. It's down the bottom. Like they're not highlighting that. They're highlighting the pretty thing up the top
right hand corner. Usually that says minimum repayment due on the thirtieth of this month. There's one hundred and thirty eight dollars. And you think palatable too bad? One hundred and thirty eight dollars, I mean, oh, five grand, but at least to have new furniture for the house that I've just moved into, and it's taken a whole heap of stress off me. Don't get me wrong, We've all
been in that situation. But this is why we need to prioritize our debt reduction and paying off our credit cards, because it's stripping away more than ten grand of your money by choosing minimum repayments. Yeah, but the credit card company does not want to educate you on that because it makes them a lot of money opening They just turned that five grand that they lent to you into fifteen. Wow, geniuses. That mean I'll give anyway? So does that make sense? Yeah?
I feel like discussing residual income. That was a good one, maybe even if it's not like your money dilemma. But you want to like pop a voice note in and send us a like, hey, could you explain this on the show? That would be really cool. I love that. Yeah, definitely, I love that because like we're always like, what should we do? What are you guys interested in? Like, how's that going to add value? You tell us?
Yeah?
So true.
And the intern, terrible intern actually deleted all of our voice notes that we had on our website. See the intern is Victoria. Yeah yeah, yeah, then I didn't know that they weren't backed up. I thought that like they would save somewhere else and they didn't save anywhere else. So now we have no voice notes, and we've got
like one or two left. So if anybody is feeling charitable and would like to help us top up our voice notes, you can head to our website and hit the podcast page and then there's like a record a voice note for the show. You can leave voice notes about questions you'd like on the show, love notes, whatever sets your heart on fire.
That's so cute.
Excellent, Well, let's set into the spicy spicy DM.
I can't wait.
Are you ready for the spicy DM? That's already Okay, here's the DM we got this week. Hey, she's on the money. I believe if one person takes a career break when looking after children, the other partner should contribute to their super But my dad thinks it's disrespectful to even suggest this, saying it's the kind of thing that could drive a partner to walk out the door. I'd love to hear your views and maybe get some AMMO to prove to him he's got a very outdated view.
Oh gosh, to start.
Hey Dad, did you ever change a nappy?
Literally?
It's giving boomer energy? Did you ever change a nappy? No interesting concept?
Did you?
How are you financial supporting mum? Dad?
I think it's like if you have a child.
It's so funny when when men say like they can only really empathize with women when they have a woman in their life that they care about. It, It's like I can still, I can empathize with a with a dog that's being hurt. I'm not a dog. Yeah, I don't own a dog. But I didn't see that that, you know what I mean. So I'm like, that's a funny. But anyway, I'm not to perentuate that.
I always find it so interesting, Yeah, but not to perpetuate that.
Like, you have a daughter, so you should understand.
But seriously, your daughter could be in a position where she's financially dependent on someone who is making her life miserable or literally so many other scenarios that could play out if your daughter doesn't have any money when it gets to retirement, you know. So I'm like, it's so you're saying you would actually prefer the financial freedom to sit in the hands your daughter's husband. Yeah, so that if something happens, she's fine financially scrooged and he's Okay.
So that's okay with you.
That's what it sounds like.
It's like, okay, well she might be and you know, Touchwood, but realistically, at that point when your daughter is ready for retirement, has maybe like thirteen thousand dollars in her super hopefully maybe less, maybe more, and you know, obviously the parents might be gone by then maybe something's happened to the husband Touchwood, hopefully not, and you're comfortable with the idea that your daughter has nothing really to you know, she can't really afford to live, she can't afford to cook,
she can't forward to This is a very extreme.
Story, obviously, but it's actually, sadly a very real scenario.
I really know that.
The biggest demographic of people experiencing homelessness are women in their fifties and sixties. Yeah, and it is because they weren't financially supported into retirement or they went through a divorce or a separation and ended up with no superinuation.
And it's the culmination of all of those tiny steps along the way, right, Like you might think, oh, no, it's fine, I'll just take a year off because like I really want to have a baby, and then you're letting your partner overtake you when it comes to career progression. Because so many times, oh so many times, when I was a financial advisor, I'd see women come to me and their partners were, you know, had really high incomes.
It doesn't matter what they did, but they had high incomes because of the sacrifices that their partners made to stay home and look after the family and contribute in that way. That then the partner would be like, no, I worked hard for my money, as though the sacrifice wasn't held as like the burden was on women the entire time.
Yeah, I know, it's so crazy that like two people are deciding to do this thing together. And let's say, I know I don't want to like in a baby too like a pet, but just for this scenario, just for this story.
Oh like the other I was sitting at the dining table and it was like a little bit of ham for my sound, a little bit of ham for my dog.
Like, but two people they want to say, for example, by a dog, imagine one of the two people. Let's take gender out of this completely, and now we're looking at just two figures. And now does it it does sound a little bit more ridiculous when you take gender out of it and you just look at two people and you're like, two people have decided to do this thing, only one of you.
Sorry, you can't work.
Actually you can't get any money.
You can't get any soup, but you can't get any like for you, actually just none for you, randomly for absolutely no reason, just some arbitrary reason.
There is a reason, you know, gap babies maybe need breast milk or whatever.
There's there's maybe many reasons why this one figure might have to stay home. But it's like when you look at it like that, you're like, but these two people made the decision, So why is only one getting all of these consequences? You know, it just seems so unfair, because yes, an unfair division of labor, sexual relationships work, Beck, I don't like that, and I just think.
So don't have a heterosexual relationship. Yeah, true, It's like I won't, but I think it is. It's super interesting because I don't even think that's outdated, Like I just think it's wrong, like even history, Like let's go back, let's go back to the nineteen fifties, Gregory, let's talk about it. Did you have a job that could put food on the table, a roof over the heads of your family, and go on a family holiday each and
every single year without your partner working. Great, you probably could have in twenty twenty four, that is not the reality. In fact, both parents need to work. And I'm sorry women are still being paid less, Like why aren't you as a girl? Dad mad that your daughter doesn't have the exact same opportunities as a boy born on the same day as her yep, Like I remember the day that I gave birth to Harvey because we didn't know his gender, Like, we had no idea if we're having
a boy or a girl. And I remember thinking like maybe it was the next day, Wow, you're a white male.
That's going to be good to you.
And I remember thinking wow, like the burden is never
going to sit that heavily on your shoulders. And I hope I can educate you enough to understand what that burden is going to look like for maybe your sisters in the future, or for your partner, or for your friends or for your fan like I hope that I can do this justice and bring up like a feminist little boy who just cares about other people and wanting equality, Like I just remember being like, that's a burden to carry, Okay, no worries, but then at the same time being like, well,
you're not ever going to experience a genda pay cap, Like it's insane to me that other parents aren't immediately like protect my daughter protect Like to me, it's a protective mechanism, Like there's just I couldn't imagine my dad's saying that. I know anyway, you won't have any quote, ammo. I just have a lot of disappointment that I suggest the situation. Of course you can suggest.
I would say, kind of what you were getting to at the end, I would almost take gender out of it, because I think that the additional super contribution should be applicable regardless of you know, if it's two men, two women, to non conforming identitied people, if the male is choosing to be the stay at home parent, regardless of the situation, I think whatever person is taking time out of the
workforce deserves to have their superannuation contributed. And as you were saying, my husband and I have spoken about this, and I have and will contribute to my husband's superannuation into the future when he takes more time.
Off because I want more babies. Yeah, that's just how it's going to work.
Yes, I think the.
Argument of that is really just as you are kind of touching on that, whoever taking time out of the workforce is being put on the back foot. I feel like maybe your dad's perspective is also coming from, you know, a byproduct of again, his generation is largely people didn't really get divorced back in our parents' day.
I feel it's cool, mum, mum, when you divorce dad, don't forget it. And if you're not in Western Australia, you can take half his supers. So yeah, that if you get a good lawyer, you could have like sixty or seventy percent of be super anyway, moving on on, Yeah.
But I almost think that perhaps it's not safeguarding your future in that way. Isn't maybe something that occurs to him because it just simply wasn't something happened and that's not an excuse, Like I think, I completely agree. I think it's his mentality quite frankly is wrong from my perspective, but I think that maybe that's what he's thinking. And I think in terms of presenting your argument, because that's
what you've asked us about. I would be explaining, well, God forbid, if something does happen in the future and I need to leave, Like, do I not deserve to have the same opportunity the big opportunity cost of not contributing to SUPER, Because I guess the argument could be made, Oh, but you have access to the family bank account or the whatever is that's not compounding at the same rate
as Super. There's also additional tax benefits for contributing to SUPER, Like there's a lot of it is from choosing to go that route. And I think the bye and far the biggest one and the one that should be convincing him, not that you should need to convince him, is that it's putting you in the best possible situation. And I'm sorry, but any man who is going to walk out on you because you've asked him to contribute to your SUPER is not a man that she should be married to, dating,
sleeping with, or really breathing in the direction of. Like that is a recatcher, ridiculous, ridiculous sentiment. And I think our listener is totally right that that is very much a byproduct of you know him and his generation but ultimately the reason that you would do this is because both people who have chosen to have this child deserve to continue to have opportunity, regardless of the fact that the child has been born, and regardless of the gender
of the person who's staying at home. It's genuinely just about safeguarding the future or your future, and any partner who loves you should be on board with that.
One hundred percent. And also any partner that's like, I don't know why I'm contributing to your super, Jess, I'm sorry if you got plans to exit this relationship, because I'm pretty sure that we agreed on what's yours is mine and what's mine is yours, and aren't we planning on retiring together, then it's still our retirement fund, whether it's in my super with your super. The second you start going, oh but I don't want it in yours, go but why Yeah, what are you so worried about?
Like we are we not as solid as I thought that you were, Like, I just I have a lot of conversations, and I also I am probably on a very pessimistic side of TikTok at the moment where lots of women are like, let's just not have partners because they're burdens. And I'm like, I see you, queen.
Yeah, like I get it, which I can see you so unfair, it's actually insane you This is not the same. But like imagine you're like saying with your best friend, let's go on a trip to Japan together, like you're talking about fan but anyway together, and it's like only one of you pays for it, Like it just seems so like you know what, I keep li likening it too, like you're both making the decision.
You're both making a decision. Doesn't make any sense to me.
Yeah, I think equality is something that hasn't existed historically, so it makes a lot of sense that it's just not your dad's default. But I think it's a really beautiful learning opportunity to go. Okay, Like, hey, I can totally see that that might make I don't know, why would that make you walk out?
Dad?
Like is it because you're bringing up this is probably a good conversation to have about his money story? Like why would you think that my partner would walk out if I asked him to contribute to my super So that I'm okay, Oh, I would walk him straight out. You don't walk out, I'll hold the door open, don't let it hit you.
Yes, seriously, Well, it will change your addresses everywhere for you'll do with life admin see you later.
That's it.
And then flip it around like if you don't want to contribute my stuper okay, no problems. How about you be the stay at home parent because.
I don't want to sacrifice my financial future and.
Money for my stupor and you'll get nothing and then see how they feel about that.
Yes, when we have these conversations before you actually choose to get pregnant as well, because like red flag run, yeah, big time. We asked the community obviously, we said what do you think of her dad's view? Eighty one percent of you said it's outdated, eight percent of you said he's got a point, oh what, and ten percent said I don't agree, but I know lots who do.
That's hard.
Another question we asked was, have you or do you plan to have the other partner contribute to the primary cares super Forty one percent of you said yes because it's only fair. For forty six percent of you, I get this said you hadn't considered it, but now you've gone right, yes, hopefully, and thirteen percent said no, it's not for us.
I said it to all of my friends when they got pregnant. Every friend I've said you should do your contribution.
I feel like I've done so well at molding you into a small, yappy version of me. I tell them this spread the good word if you would like to join the church or we also said all right, we need your two cents. So someone said, if your partner walks out because of this request, farewell, sucker genuinely. Someone said voted no, but only because I'm very fortunate my employer is still gonna pay me super on Matt Leaf. Oh that's great, great, that is very cool. Someone else said,
I'm so intrigued about the hadn't considered it results. Someone said, in a separation, wouldn't super get split anyway, But it is a smart way to maximize contributions.
But if your super gets split, then you both end up on the back foot. Yeah, it's fifty percent of what one person should have had.
Yeah, and yeah, it's also not a guarantee. So just because you're going through a divorce, it doesn't mean that you're gonna get part of your husband's superannuation. Like, if you have no money and you can't pay good legal representation and your husband is able to do that, I mean, this is a very you know, stereotypical example. And your husband's able to pay legal representation and scare the hell out of you and wear you down, you walk away with nothing.
Yeah yeah, yeah seriously, So, like, can.
We just set it up properly from the start, Like there are so many situations where women aren't able to advocate for themselves, or in a situation where the relationship has turned abusive and they would actually prefer to not have any money because they just don't want any confrontation and they want to walk away from this asap. Like there are so many reasons why, like bread and butter. Yeah, Like you would assume that in a separation you would
review all of your finances and split it fairly. However, that's not always the reality of it. And prevention is better than cure, right.
So true, But even if you do hypothetically stay together forever.
And but one person has like a million dollars in super, one person has like five thousand dollars in super, I don't know what the dynamics like there.
I just don't know that.
If I go out with my partner and I don't have any money and she has to pay for everything, I feel silly.
But she'sa mamma.
She is sugar mama. Sometimes she's my sugar mama.
I like it.
I like it, you know, like it's still like whether you separate or not. It's like you still don't want that.
Yeah, I get it, I get it.
Someone else said, I said, not for us, because I'm going through IVF. We still don't have a baby, but once we get there, there won't be extra cash for SUPER.
I understand.
I totally get that. Someone else said, it's either contribute to SUPER or pay for daycare, cleaner and all of the other unpaid roles. Which one is it?
Completely agree, completely agree. And the pain of it, like even if you went back to work, like as soon as you were able to, if that's a choice that you made, you still the time you have to take off, like you know, even if you push it right to the end, like a month maybe pre birth, and then however long post birth or where you physically cannot work.
No true true. Someone else said, it's giving boomer. I agree. I agree someone said money is tight or maternity leave. I can see how asking for super good add more money stress. So this is true, but we're not asking for post tax contributions from your budget. We are asking for your partner to redirect some of their subranuation that doesn't hit your bank account to be redirected into your supranuation. So I get this concept that, oh, money's already tight.
It's fine, Like that's a really good defense if it was coming from your bank account. But I'm actually asking for part of the contribution that you're employer or sorry, your partner's employer makes to their super to be split into two different super funds, one of which is yours. Your partner's employer is still paying the same percentage of superannuation to them in total, it's just going some into your account. So we're not asking for above and beyond. We're asking for split.
Yes, I can see how that might be confusing or like scare people off from doing it, but yes, exactly as you're same. You also could definitely like add extral that's definitely part of the conversation. But to you, we're not asking for the budget to be impacted because I know how expensive a baby is, Like, I get that it would be very tight. So that is what I've brought to the table when it comes to our DM and I feel like I've gotten a little bit heated.
So I'm sorry, but I'm also not sorry.
No, you're doing God's work.
But I also I just get so frustrated, Like we just want equality. I just want people to be paid what the job is worth, not what it is worth because you're a female. I want, like desperately for parents, especially in the generations that haven't had it before, to see the opportunity that this generation is creating for us in having a quality Like wouldn't you go, wow, that's a great idea, honey, Like wow, I really do want you to have everything and every opportunity afforded to you,
and this is another way of doing that. Yes, I wish that we'd had that information when I was growing up. I wish I was able to do that for your mum, Like, those are the conversations I want to be having, not Oh, that's outdated. Your man will walk out on you. Yeah, Dad, who are you ridiculous? Still? David, I feel like that's all we have time for today. But before that if you have been thinking about changing your money mindset, if you have been thinking about him, they're sting or doing
our money master class. Our bundle sale is still on until Monday. I'm going to pop all of the information for that into the show notes so that you can have a look. But it is a very good way of saving a whole heap of cash on our courses, and they're going to launch in January. It's going to be like our best year yet. I feel like I've been using the term thrive in twenty twenty five a lot, and it's becoming like my mantra, like next year is going to be the best year we've ever had. Jessica.
Oh, I hope, So I can't wait.
All right, have a good weekend, guys, and we will see you brite nearly on Monday for a money diary.
Bye, guys, say.
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