September 25, 2025 • 37 mins
We’ve all heard HECS is a deal-breaker for your borrowing capacity… but is it really the villain it's made out to be? We’ve got the tea on how much your HECS actually matters when you’re trying to get a loan... and let’s just say, the maths might surprise you. And because Fridays love a little family drama, we’re also talking about the stress of parents making very questionable financial moves. Do you bite your tongue, or pull out the calculator and stage an intervention? We’ve got thoughts. Plus, the classics: money wins worth stealing, broke tips that actually deliver, and a sprinkle of financial chaos to make you feel seen.
Ready for more laughs, lessons, and unhinged money chats? Check out our oh-so-bingeable Friday Drinks playlist. Listen here.
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Acknowledgement of Country By Nartarsha Bamblett aka Queen Acknowledgements.
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 Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708, AFSL - 451289.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
My name is Tatasha Bamblet. I'm a proud First Nations
woman and I'm here to acknowledge country t Glenn Young Ganya, Niana,
Kaka yah y and beIN Ahaka nian Ar gay In
Mbini yakarum Jar Dominyamiga Umagahawaka Woman, Damon Imlan Bomba ban
Gadabomba in and now in wakah ghan On yak rum
Jar water Nadaa. Hello, beautiful friends, we gather on the
(00:24):
lands of the Aboriginal people. We thank acknowledge and respect
the Aboriginal people's land that we're gathering on today. Take
pleasure in all the land and respect all that you see.
She's on the Money podcast acknowledges culture, country, community and connections,
bringing you the tools, knowledge and resources for you to thrive.
Speaker 2 (00:45):
She's on the Money.
Speaker 3 (00:47):
She's on the Money.
Speaker 4 (01:08):
Hello and welcome to She's on the Money, the podcast
that makes personal finance fun, especially on Fridays. It is
our favorite day of the week because we get our
little team together and we get to celebrate you our
incredible She's on the Money Community. Miss Jesse Grici, She's
here and she's going to be sharing our favorite money
wins of the week. Miss Becksayed is here and she
has a lineup of very good road tips to share
(01:30):
with you. And we're going to be helping to answer
a money dilemma which is all about how your hex
step really affects your borrowing capacity and something that's lead
into our dms about what do you do when you
think your parents are going to make a bad money choice. Oh,
I feel like it's like backwards financial advice, but we
are all finding ourselves in positions like this more recently.
Speaker 5 (01:51):
Before we get there, though, guys, how have your weeks been?
Speaker 6 (01:54):
Yes?
Speaker 5 (01:55):
Go first please, I am having a great week.
Speaker 3 (01:57):
Oh not just a good week, I know, different from me.
Speaker 4 (02:01):
That's giving what's her name, Kylin?
Speaker 3 (02:03):
And you love Kylan?
Speaker 4 (02:06):
You know what you are chronically online like after?
Speaker 6 (02:11):
Yes, there's just lots of fun, exciting things happening in
my life right now that I am so happy about
and I can't wait to share with everybody. I know.
Speaker 4 (02:19):
I know you a little bit, you know, but like
we aren't telling people this secret. Yes, she's not pregnant,
just to be very clear.
Speaker 3 (02:31):
Not engage, no, but yes, anyway, we'll share the really seeds.
So that's really exciting.
Speaker 6 (02:35):
And you know what, today it's sunny. I was driving
and I had a really good day list on Spotify.
Speaker 5 (02:39):
Oh gorge, and I just like had.
Speaker 6 (02:40):
You know those really simple like it's like a very
ordinary life moment, just like, oh my god, like life
is worth living.
Speaker 4 (02:50):
Just to pay rise check?
Speaker 2 (02:53):
You know what?
Speaker 4 (02:54):
I was just you must have a really good boss.
Speaker 3 (02:58):
Live life, loving my way through life right now?
Speaker 4 (03:00):
That is so frizing, isn't the kicker? I think she's
just tu on an extra high.
Speaker 7 (03:05):
I am on a definitely sure, Yes, for sure, there's
something through like it's so warm, like it's very contagious.
Speaker 5 (03:12):
I'm like, oh my god, life is worth living, is
and like someone's coming. Like we're out of the cold,
We're out of the rut. Like I feel like everything's
looking up Millhouse. Ye, yes, my week has been gorgeous. Yes, lovely. Actually,
just hondering sun things, aciding to bloom.
Speaker 4 (03:32):
A girlfriend the other day actually, and she was telling
me that you were painting her bin.
Speaker 7 (03:37):
Yes, she really wants. I don't know if you've seen that,
that lady, that's like done. The looks cool, the bin
painting like stripes.
Speaker 3 (03:43):
Anyone who hasn't seen it.
Speaker 7 (03:44):
It's like green and red and blue and another color
I can't remember, and you just paint your bin. This
color was really cool because I kept making all these
like craft things because I haven't been working for so long,
but just as like please no more, but do things.
Speaker 5 (03:58):
They actually need my bin and so you pain and
it's just so much fun and it was like, oh yeah,
it like really brinds up a space.
Speaker 6 (04:06):
The bin driver loves seeing a fun bin because like
you look at the same bins, like how many bins
would you see in today?
Speaker 5 (04:12):
So many and really fun one.
Speaker 3 (04:13):
I feel like that would be excited totally.
Speaker 4 (04:15):
My mum under the bus here and Judy adore you
please don't hate me for saying this. In fact, turn
this off. But growing up, my mum decorated our bin
with these really large stickers. Like that sounds a bitt
in theory, but why did they have to be friend japannies?
And because they were always in the sun, they faded,
so I think they looked awful, but like she loved them.
Speaker 5 (04:35):
It was the eithnts exactly.
Speaker 4 (04:37):
She's ahead of her time. She was she was the
bin lady before TikTok that's here exactly.
Speaker 5 (04:43):
You know, great week, what about you. I'm glad.
Speaker 4 (04:45):
I'm just glad that the sun's coming back. Like I
feel like this winter, like both Jess and I we
get sad, which is like seasonal effective disorder, which is
why we love a hatch alarm clock. We're like, we'd
love doing you know, lots of just different things in
winter to help us feel better. But there's literally nothing
better than sunlight and like feeling like there's a little
(05:05):
bit of warmth in the air like the other day.
And this is so lame. Maybe this is just a
sign that I'm getting really old. I was walking to
the coffee shop lame, but someone who had just mowed
their lawn and it was the smell of mode lawn
and it was like a not freezing morning and I
was like, life is a worth a living.
Speaker 3 (05:23):
Yeah, truly, it really is. I love the smell of
fresh cut ground.
Speaker 1 (05:26):
Yeah.
Speaker 4 (05:26):
Like it was just like an on a morning when
I'm walking to the coffee shop and I wasn't wearing
like my jacket and my puffer and feeling really cold,
like sometimes I just like slog it to the coffee.
But it just it was a good day. To have
a good day. You know, Oh my god, this is lovely.
Whole episode is so sunny. I love it, and it's
all about not, I guess, spending any money. I suppose
a little thing.
Speaker 5 (05:47):
Literally, it really is. But speaking of like being on
a high, you were like, oh, it's so warm, it's
so good.
Speaker 4 (05:52):
We have a five star review. Would you like to
hear it?
Speaker 5 (05:54):
Plaicly so?
Speaker 4 (05:55):
Five star review from Perth Gal twenty three.
Speaker 5 (05:58):
I love it.
Speaker 2 (05:59):
I love it.
Speaker 4 (06:00):
And her title is from Delulu to money Queen, and
that's why I picked it, because I was like, same queen,
SAME's That's where I've come from. Yes, she said, I
am so happy I found this. My money story was
all about spending it before somebody else spent it for me.
I've learned to trust more of myself and that saving
through a rainy day is actually so much less stressful.
(06:20):
I listened to this religiously and I'm always waiting for
the next episode. Love the honesty, the tough love, and
the beautiful friendships that shine through the episode.
Speaker 5 (06:28):
Oh Cherry on top of godeous morning. Yeah, we're just friends.
We're just having a good time. Sorry, what do you mean?
Speaker 4 (06:37):
People gave us a podcast a yap on.
Speaker 5 (06:39):
Thank you so much, perth Gal.
Speaker 4 (06:41):
Thanks perth Gal twenty three. Really appreciate it very But
speaking of people in our community, Miss Jessicrici, I believe
that you have some money wins or confessions to share
with the group.
Speaker 5 (06:51):
I sure do.
Speaker 6 (06:52):
First Sunday Week comes from Casey, who said a new
Pilarti studio opened in her area and it had a
foundational membership.
Speaker 4 (06:59):
Okay, good deal, yeah.
Speaker 6 (07:00):
Which I only recently learned what a foundational membership is
for those who don't know, it's kind of when a
new gym or party studio or like any type of
place opens and you can get like a limited time like.
Speaker 3 (07:10):
Long term membership.
Speaker 6 (07:12):
And so Casey now pays forty four dollars a week
for unlimited Polarates classes and twenty four seven access to
the gym.
Speaker 4 (07:19):
That's so good.
Speaker 6 (07:19):
She said, her old studio, she's paying thirty dollars for
one class, so that's actually that is a money win.
Speaker 5 (07:24):
That's really good.
Speaker 4 (07:25):
Like I just feel like that's a like complete side note,
maybe not a positive side note, so sorry to bring
down the vibes, but like sorry, that's ridiculous, Like thirty
dollars for a Polarates class. Please don't get me wrong,
Like self care really important. I'm a pilates girl, but
I'm like, i'd say budget conscious Polarities girl. Like, as
you know, Jess and I tech, well, Jess and I
(07:45):
both do pilartis, but we'll like text each other about
Polarates packs and be like, oh they're on sale, Like
how good that stays nab On at twenty percent off,
because then class is like twenty one dollars each money win,
but like thirty dollars a class, that's just that's exorbitant.
Speaker 3 (07:58):
Yeah, it's a lot.
Speaker 4 (07:59):
That's so much money.
Speaker 6 (08:00):
I know, So very well done there to Casey. Next,
I have a money win. And I wanted to give
a little PSA from Alicia. So Alisia said her husband
has been off work this week to deal with his
late father's affairs. And I did comment this already, but
very sorry, sending lots of love to you and your
whole family. She said his workplace gives two mental health
days per year, and so he used two of those
(08:22):
for the week that he had to take off, and
he was able to just then use three annual leave days. Good,
but I replied to Malitia, and a good little fyi
for everybody.
Speaker 3 (08:31):
Everybody who works.
Speaker 6 (08:32):
Part time or full time nationally is entitled to two
days of bereavement when you lose a direct relation, So
go to the Fairwork website for more information. And this
is per loss, so god forbid, if you were to
lose two people close to you in one year, it'd
be two days per.
Speaker 3 (08:50):
Yeah, per person.
Speaker 6 (08:51):
So I come to Bach to relish and I said,
see if you can switch it over so he doesn't
have to use this annually. But it's good fyi for everybody,
because I don't know that all workplaces automatically tell you that,
but you're entitled to it.
Speaker 4 (09:03):
And you can also talk to your workplace as well
about using your sick and care is leaves because like,
you know, sorry, I'm not well, like not mentally well.
I know that lots of places and maybe this is
just me with a bee in my bonnet, like lots
of places off like mental health days, but like sorry,
if you need to use that, should that not be
built into your sickly Yeah, totally. You don't need to
(09:24):
justify to me what type of sick you are. You
could have the flu fantastic, or you could just like
need a bed rock day.
Speaker 3 (09:31):
Yeah, totally.
Speaker 4 (09:32):
You can shine at work the next day. Sorry, Like yeah, anyway,
And I've just got a lot of conversation about that.
But care is leaves should go into that because you go, Okay, cool,
Well I actually have to take time off to support
my family or my husband or my you know whatever,
my mum, because like that's a lot.
Speaker 6 (09:46):
Absolutely, it's sending you and your whole family lots of love.
But hopefully that's a little extra wind for you. Next,
I've got a money win from Daniel who said she
finally saved three months of expenses in her emergency fund.
And it's all because if she's in the money, stop it.
It's taken her years. She feels so secure knowing that
the money is there, and she's really proud of herself
for making it happen.
Speaker 4 (10:05):
So I can legitimately blow your mind. Yeah, like what
we do, like when we have a little yap and
have a good time and we're like talking about the
sunshine and like, yes we talk about other things too,
but people are changing their lives because of the content
that we make.
Speaker 5 (10:16):
Yeah, that's really cool, isn't that cool?
Speaker 6 (10:19):
I don't know if everyone can see the little badges
or it's just us because we're admins.
Speaker 4 (10:23):
But I think you can see the badgers because I'm
also in Glenn James's Facebook, Yes, and I can see
his badges.
Speaker 1 (10:29):
Oh there you go.
Speaker 6 (10:29):
Because it said Danielle was a rising contributor, so I
was just like, look at her, go what a queen. Next,
I've got a money in from Louise, who said she
got a smart meter for her electricity so she could
show her family the cost difference each day when they
were turning things off and not using that.
Speaker 4 (10:43):
She's my level of crazy.
Speaker 6 (10:45):
I love They've already say fifty dollars on their quarterly
bill and still water go money, we gorgeous, really good.
Speaker 5 (10:51):
And then you can lean into like the little bit
of Delulu, like we to measure everything.
Speaker 2 (10:56):
Why not?
Speaker 6 (10:57):
And then last of this week, I've got a money
in from Maddie said after listening to the Rich Girl
Mindset episode, she finally bit the bullet and bought a
big ticket item that she had saved four months ago
but had been too afraid to send the money on.
She now has a new split system hit her and
cooler and can no longer see her breath at night.
Speaker 4 (11:13):
I love that summer and future is gotten.
Speaker 3 (11:16):
Thank you well, money well spent, Maddie.
Speaker 4 (11:19):
Absolutely, it's hard when we've been stuck in this like
scarcity mindset, that even when we have the cash to
make these bigger financial decisions, because like, yes, you saved
for it, but also like what if I need it
for something else? Or like should I really be splurging
on this item, Like I don't technically need it, I
could put on another pair of socks, Like I just
think that that's a learning as well, to be actually
(11:40):
able to spend the money that you've saved because you've
got a plan. Absolutely, that's cool. That's really cool. Completely agree, everybody,
Well done everyone, miss x Yes, talk to me. What
have you got when it comes to broke tips?
Speaker 7 (11:54):
Okay, so this first one comes from Francis, who says,
my library has video games Xbox, PlayStation and Switch. It's
a good way to see which games the kids love
enough to shell out seventy dollars for such great that's.
Speaker 4 (12:06):
Actually such a good deal. I didn't know that they would.
I mean, I shouldn't be surprised. Libraries have everything. I
have everything. It's crazy.
Speaker 7 (12:12):
Love a library, as friends has said, you know, libraries
off of these video games and stuff like that. But
I thought i'd mentioned that because of the school holidays
at a gym. Yeah, I don't know why I'm on
top of school holidays. I actually you don't even ask kids.
Speaker 4 (12:23):
She is my kids.
Speaker 8 (12:25):
I have a mother.
Speaker 4 (12:26):
Actually, yeah, thank you.
Speaker 5 (12:27):
I just judge it by me on when I can
speed through the school though.
Speaker 4 (12:32):
Say yeah, yeah, okay, she's got a priority exactly. I
just like when there's less like traffic in the morning.
Speaker 5 (12:39):
Yeah yeah, really show I have to.
Speaker 4 (12:41):
Drive through like four school zones because like in relation
to where I live versus the studio, Like I'm not
on a freeway, like I have to go through like
residential areas and that's not a journey. But during school holidays,
I'm living it takes you like ten to fifteen minutes
to get to work.
Speaker 8 (12:58):
So good.
Speaker 7 (12:59):
I've always been curious and I don't want to spend
too much time. Is what do you do when you
have because I don't imagine we don't have school holidays off,
like if your child has school holidays.
Speaker 4 (13:08):
This is a conversation about ICEE, money and life. You've
got to work it out. That's insane to many parents
that I know, And this is really started. Maybe we
can do a whole episode on how to budget for
school holidays, you know, niche because not everyone in our
community is a mum, but interesting to know because like
we've a good friend that's a mum. A lot of
my friends are using that annual leave, Like they'll rely
(13:30):
on their grandparents a few days, but then they might
take three days of that annual leave so that they
can look after kids. They might do school holiday programs,
which I did a lot growing up, but like sometimes
you don't want to do that, or sometimes they're really
ridiculously expensive family cares. Sometimes families who you know have
a little bit more cash and go on holidays. That's
why they plan their holidays during school holidays, not just
(13:51):
because the kids are off school, but because they're like, well,
what else are we going to do with the kids? Yeah,
we may as well two for one. But in saying that,
I would say that traveling during school holidays is a
lot more expensive. As someone who's a relatively new mum,
I used to always avoid the school holidays when it
came to travel because I was like, sorry, I don't
want to be in Queensland. When every man in his
dogs in Queensland, it's going to be packed. But yeah,
(14:13):
there's a whole logistics conversation around that. And then to
add to that logistics conversation, it makes me think about
this conversation I was having with a friend last week
about how ridiculous work hours versus school hours are. Yeah,
like school hours nine till three, work hours eight thirty
two five?
Speaker 9 (14:31):
What what?
Speaker 4 (14:32):
Yeh?
Speaker 5 (14:32):
I don't like it. We're spending so much time.
Speaker 4 (14:33):
Anyway, I wait, different conversations, different an episode.
Speaker 5 (14:38):
Yeah, way, yes, anyway, sorry to derail.
Speaker 4 (14:41):
No, I think going to a good conversation.
Speaker 5 (14:43):
I think so.
Speaker 7 (14:44):
So this next one comes from Machelin, So sorry if
I'm saying that wrong. The wholesale beauty supply shop will
sell you twenty Leaders of body wash for fifty dollars
work twenty lids.
Speaker 5 (14:53):
Wow, what are you going to do with twenty Leaders
of body wash? You'll get through it. That's a life tippened.
Speaker 3 (14:57):
You always got to watch your body.
Speaker 5 (14:58):
Yeah, you're always got to wash your body.
Speaker 4 (15:01):
I like that. But are we taking the big twenty
liter bottle and putting it on the floor of the
shower with a pump on it, Like, what are we doing?
Speaker 1 (15:07):
Well?
Speaker 5 (15:07):
I guess it's like you just keep the one bottle
and then you keep refeeling.
Speaker 7 (15:12):
But the Machelin says, my kids keep making potions and
such in the shower, and with seven people in the house,
body wash in one liter bottles doesn't cut it. So yeah,
I can imagine that you, like you could put.
Speaker 5 (15:24):
The potions kid. I think been a potion's kid too.
I'm still a potion's kid.
Speaker 4 (15:29):
Yeah I am as well. So like my favorite body
wash is complete side note, also not that cheap? Are
the lush body washes?
Speaker 6 (15:36):
Yeah?
Speaker 4 (15:36):
Okay, the Sleepy Time wine and then the honey I
washed the kids one and my two favorites, but they're colored.
So in the shower, I turn into a kid and
I'm sorry, yeah yeah, yeah, so lovely. Yeah. And then
when my friends come over to stay, they're like, your
shower is so fun because you're just got like so
many different like bodyes, washes and just stuff the shower.
Speaker 5 (15:58):
Use it all, use it all you can make. Absolutely,
showering is time for whimsy. Yeah. I pretend I'm in
movies when I'm in the shower, you know, like I mean,
like I'm in.
Speaker 4 (16:08):
A A lot of people might go, I grew up
in the era of the drought, so like I did
as well, and like I can just remember my dad
banging on the bathroom draw, get out of the shower,
spend more than three minutes. So I carry that trauma
and think about that often while I sit on the
floor of my shower. Of course, wasting water.
Speaker 5 (16:28):
I suppose you could turn that into wimsy as well.
Speaker 4 (16:30):
That is whimsy, evil study farmer, but I could make
a cup of narrative.
Speaker 7 (16:36):
But anyway, I'm so sorry I keep derely, but I
just want to give my broach here, which is which
actinually not that great or helpful. But I was watching
this TikTok and these people were like, if you do
can't afford to travel, bring travel to you. And I
was really silly, and it's like, okay, we get all.
Speaker 4 (16:52):
That's very beck coded. Though definitely I love this kind
of thing because like you bring the movie cinema to
your house and everything to your house and you just
make it happy.
Speaker 7 (17:00):
It's so magical, and it's maybe more magical and way
less stressful than actually traveling. So you know, and this TikTok.
I think they wanted to like travel to Italy and
then they brought Italy to them. So it was just
like go out and like do a whole itly themed day.
Speaker 4 (17:15):
This gn my Instagram stories by a chance, because I
was talking about it like a few weeks ago on
my stories about like you can be in Italy by
cooking this Italy meal that I got on Mali's, and
you could be in France by cooking some wag used
steak like tomorrow we're in.
Speaker 5 (17:30):
Mexico because we're having tacos. That's actually very very similar
to me.
Speaker 4 (17:35):
Yeah, we're on the same page, but it was bringing it, yes,
exactly exactly expensive.
Speaker 7 (17:41):
I would even argue I would like I would i'ld
go as far as to say, you can like decorate
your house in that. Like so that's my broke tap,
which is not very helpful. I'm so sorry, but I
really just do like a themed date or day or
whatever because it's cheaper.
Speaker 5 (17:56):
It is still expensive, but it's cheaper than traveling and
so much I love that.
Speaker 4 (18:01):
All right, let's go to a really quick break because
on the flip side, we get to have a chat
about how your hex or your help debt for those
of you who are actually younger than me and don't
call it hex anymore, really affects your borrowing capacity if
you're thinking about purchasing a house and something that you
slid into our dms about this week, we're talking about
what do you do when you think your parents are
going to make a bad money decision? Because I don't
(18:22):
know anyway, guys, don't go anywhere.
Speaker 3 (18:29):
Welcome back, everybody. Let's take a listen to this week's
money dilemma.
Speaker 5 (18:34):
Hi, there, have you got a money dilemma you just
can't solve that. She's on the Money team is here
to help.
Speaker 9 (18:40):
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.
Speaker 4 (18:53):
Now, let's take a listen to this week's money dilemma.
Speaker 2 (18:58):
Hey, She's on the Money. I'm in the process of
staving to buy my first home and I'm trying to
grow a deposit. I have a question about hextet. I
have about twenty three thousand dollars remaining on my HEX.
I'm working full time, and I'm wondering if it's better
for me to pay down my HEX debt with additional
contributions or if it would be better to funnel that
(19:21):
money towards my deposit instead. I'm just wondering about the
hextet and how it's going to impact my capacity to borrow,
and the advice on this topic would be great. Thank
you so much.
Speaker 3 (19:31):
I feel like, surely you just take this one away.
Speaker 4 (19:33):
You just want me to take it away. Yeah, I'm
happy with that, all right. So the team of being
Lazy today talk to a mortgage broker, because that's a
fantastic question. But more often than not, it's actually not
about how much hex stet you have. It's about how
much savings you have and what that looks like. And
there's actually a lot of changes coming in with some
(19:56):
banks recently, and it's all different across the board, but
a few banks are starting to not even look at
your hex step. So if you go and pay off
your hex stet, because you go, you know, I should
be completely out of debt before I purchase this house,
because do you know what that feels logical? And then
you go to your mortgage broker and they go, oh,
you didn't need to pay that off. We could have
had an extra twenty grand sitting in your savings account
(20:18):
and you would have avoided LMI. I know what situation
I would have preferred to be in. So from the
perspective of someone who literally works in the industry, I
own a mortgage broken business called Zella Money, go and
talk to them and say, hey, this is the sitch
I want to be in, and you might actually find
yourself closer to the end goal than you thought you
were before. Sometimes we do have our clients pay off
(20:40):
a little bit of their hex debt, but I would
say most of the time, if I'm just broadbrush speaking
about the average, we often say, please don't do that,
because that actually doesn't benefit your situation. Looked at your situation,
we might get you to, I don't know, close a
credit card or like close a line of credit like
an after pay or a zip pay debt and go
get rid of that that off, like so it's not
(21:01):
even about paying it down. You might have a credit
card that has a two thousand dollar limit and we go, okay,
cool bank doesn't love that, just close that and then
we can talk about your mortgage, and you'll go, what
about my HEX, And we'll be like, do you know what,
It doesn't even factor into it because at the end
of the day, yes, and I don't want you to
think r V. So banks don't even look at HEX.
Most of them will look at your hex's debt, but
(21:22):
they just look at it as a payment that you make.
So you know your HEX every salary, let's pretend is
one hundred dollars. The bank isn't going to go, oh,
they've got a debt of twenty x thousand dollars and
you really should get rid of it. They're like, okay, cool,
Like she just has one hundred dollars less every month
that she could contribute towards this loan, and more often
(21:43):
than not, when we do the maths, I'd actually prefer
you to pay off that one hundred dollars a month
or one hundred dollars a week or whatever it ends
up being. Then pay off your HEX s deet in
its entirety, because having that cold, hard cash in your
hand is a lot more powerful towards your borrowing capacity
than not having a one hundred dollar pay come out
every single month. It is treated very differently to what
(22:04):
I categorize as bad debts. So bad debt is lines
of credit, car loans, things that actually don't help your wealth.
But when you have a HEX debt, if we just
look at probability, you're more likely to have a higher
paying job, You're more likely to have consistent gainful employment.
That's not saying that you have to go to university
or anything like that, but banks and people who are
(22:27):
assessing your credit risk are often like putting you in
buckets because that's their job to work out should we
lend to this person or not. They're going to put
you in some buckets, and that's not the worst one.
Speaker 8 (22:37):
To be in.
Speaker 4 (22:39):
So do you need to pay off all of your
hex's debt? The answer is talk to a broker to
get the best possible outcome, because there's no right or wrong, and.
Speaker 6 (22:48):
A very person to person bank to bank right, which
is why you need someone to kind of look at
your hole.
Speaker 4 (22:52):
Is exactly because I might go, oh yeah, actually, with
your situation, just extinguish it because I don't know. She
didn't tell us how much of a house deposit she has,
so I don't know, are you sitting on six hundred
grand and you know that's actually a drop in the
ocean in comparison, which point I might be like, Okay,
let's do some financial planning, and then we do and
it turns out that, yeah, let's just extinguish that never
think about it again. But like most of us, I
(23:15):
would say, are really trying to make the most of
every thousand dollars that we have totally and that can
make a really big impact. Y, Yeah, get advice and
you know what, A broke is going to do that
for free for you. We love that money win.
Speaker 3 (23:29):
Should we get into this week as susy dilemma?
Speaker 5 (23:31):
I can't wait.
Speaker 4 (23:32):
Hi, she's on the money. I'd love for this question
to be answered on the podcast. My mum is a
disability support worker who uses her car to get to
and from clients. This financial year, she wasn't able to
claim back as much tax on her car as it
had depreciated. She's adamant this means she should take out
a car loan to buy a new car so that
she can claim more on tax next year. She's looking
(23:54):
to retire in the next five or so years. How
do I explain to her that a car loan at
this point in her life is a terrible idea, And
spending all of that money on a car to try
and then save some money on tax doesn't actually come
out well in the wash. Are my assumptions even correct?
Or am I mistaken?
Speaker 5 (24:11):
Hmmmm? I assume she's not talking about anovated lease.
Speaker 4 (24:17):
No, no, And like, okay, just even of what was
anvated lease. Arguably, yes, buying a brand new, massive asset
to save some money on tax, yeah, rarely comes out
in the wash. No, well financially, but like we all
love the idea of saving tax and getting tax back,
but like, what does that even mean in the long term?
Speaker 7 (24:38):
I would think if it's like purely for tax reasons,
surely she knows that spending like twenty thousand dollars over
the year and saving maybe like a few thousand dollars
at tax time, or getting a few thousand extra dollars
at tax time, surely she knows Like that's silly, that
doesn't make sense. It's not you know, But maybe she's
just like I want a new car, you know, that's
(25:00):
the vibe I'm getting, because I can't imagine if the
math is very clearly like you're losing this much math
is not mathing.
Speaker 3 (25:07):
The math is mathing.
Speaker 7 (25:11):
I know this is not very helpful, especially because you're
not asking me for this kind of advice, But I
would just like.
Speaker 5 (25:18):
Find the root of this, because there's a part of
me that there.
Speaker 4 (25:20):
You're getting from mommy. You're just trying to justify a
new car because you want one different story.
Speaker 5 (25:25):
In which case, pop off girl a new car. You know,
it's been a long Line's almost probably not a choice.
Speaker 7 (25:33):
She's about to retire, lin live, you're spending all your
life working.
Speaker 3 (25:38):
Some new car.
Speaker 5 (25:39):
Just pop off right before your retirement, just go into
a little bit more debt.
Speaker 4 (25:43):
It's such a good idea. But maybe she's like, maybe
she's got the money for it, Maybe she's got the Dolulu,
maybe she's got the Dolulu. Who knows, Jess.
Speaker 3 (25:51):
I would just say, do the math to me.
Speaker 4 (25:54):
Don't be out here using logic against saying the math
is not mathing.
Speaker 6 (25:58):
I feel like if you put in front of her
and say, like, totally understand if you were to purchase
this new car at you know, the tax appreciation, et cetera,
this is what your current like if you kept your
current car, This is how the math that would work.
Out versus like, if you're to buy the new car,
you have obviously the cost of the new car, plus
the interest on the loan of that car, presumably, and
(26:19):
then factor in whatever she would say new cars.
Speaker 4 (26:21):
Aren't cheap, like you're not spending ten thousand dollars. I
don't know. I feel like so many people justify new
purchases because they go, I can claim it on.
Speaker 3 (26:29):
Taxing, yeah, which is like you it's like that thing,
what is it that's a write off? Like if that
works people, you don't.
Speaker 4 (26:37):
You don't write off the whole purchase price. You write
off some of the tax payable. And for most people
in Australia, their tax rate is thirty percent, so only
thirty percent of that asset is quote right off a bull.
And even with like depreciation, you're not getting that full
amount back in the first year. It takes a while.
Like let's like make an example of this, right, I
(26:58):
would say that an hour I've reached brand new cars
probably what forty grand, So forty thousand dollars. Your mom's
going to go out and she's like really want the
tax deduction, and let's pretend it's got nothing to do
with like any other reason Like, it's not because she
wants a new car because she's worked her whole life.
It's not because she like doesn't feel safe, like we're
not having those conversations. She just wants it for the tax.
Right off, Let's pretend she has a thirty percent tax
(27:19):
rate like most people in Australia. She might get what
twelve grand back at tax Time's still for twenty eight
thousand dollars. Yeah, out of pocket, Like that's how she's
gonna have to come up with if you've got the cash, call,
we probably could have done a little bit more with that,
especially right before retirement. If you don't have the cash,
that's a twenty eight thousand dollars loan on what type
(27:40):
of interest rate, like usually a lot more. So, Yeah,
you get a deduction, but it's not a magic free
car that you can just claim. And I think another
way that you could put this is like, what if
I told you give me ten dollars, Yes, I'll give
you three dollars back. Is that a good deal?
Speaker 3 (27:58):
I mean it's not the best.
Speaker 4 (28:00):
Probably wouldn't do it right, but that's how tax deductions work. Yeah,
you beck, you give me ten bucks, I'll give you
three dollars. Okay, so that a good deal for free?
You would free three dollars. Like, no, you're losing money,
like you only get to save or keep a fraction
(28:21):
of what you've spent. And like just because you're getting
a discount doesn't make it a good deal. Yeah, like
that's how marketing works. I oh, sorry, I.
Speaker 7 (28:31):
Don't know who needs to hear this, and I could
be completely wrong, But for like an average person, let's
say me, less am earning. I'm definitely not earning one
hundred k, but that's just a number that works well
for me in my brain if you round numbers when
doing examples. Yes, yeah, so what I think when people say, like, oh,
that's a rite off or whatever. If you buy a
forty thousand dollars car and you can claim all of
(28:52):
that on tax, that means that your tax the amount
payable for that year is sixty thousand dollars.
Speaker 5 (28:58):
Now that's the amount you paying tax on. Is that
how that works?
Speaker 3 (29:01):
Yes, that's not as clean because you can't claim generally
the whole cost of the car.
Speaker 6 (29:06):
Can you know?
Speaker 4 (29:07):
You can't go hypothetically if you could, so you can't.
Even so even with your math, even if it made
got you, got you, got you? Okay, Like, let's pretend
your mum is earning enough to be in a thirty
thousand dollar tax bracker. Let's call it like eighty thousand dollars, right,
and then your mum goes out and buys a forty
thousand dollar car, Like she's gonna have to cough up
in her after tax money twenty eight thousand dollars for
(29:31):
a forty thousand dollar car because you can only claim
thirty percent of that car's value, which is twelve thousand dollars, right,
So like that math doesn't math, and a lot of
people will justify it, Oh, it's tax deductible whatever, Like
there's another like side of the coin. And some people
will be like, well I got a new car because
I haven't, and.
Speaker 2 (29:49):
Do you know what?
Speaker 4 (29:49):
There's always the like, yeah, but what people You see
them on TikTok, you see them on Instagram, you see
them like in the comments section. They've always got something
to say about this situation. But it's like not the situation.
Speaker 3 (30:02):
There's the exception to everything.
Speaker 4 (30:03):
There's an exception to every rule because like personally, I'm
young or I think I'm still four I'm young.
Speaker 5 (30:12):
Aging is a privilege. I am trying to cut.
Speaker 4 (30:15):
Out this conversation and be like, I'm getting so old.
Shut up, Victoria. That's a good thing anyway. I am young.
So like in my business, I have my car and
that's a part of like my big cash flow situation.
And I talk to my accountant and do you know
what more recently, obviously there were a number of other reasons.
I had a baby, so I needed a bigger cartoons
out of two door coupe was not ideal for a
(30:37):
car seat. But I got a new car, and part
of that is being able to claim it on tax.
And he said, Okay, like after about six years, we're
probably going to want to swap that car out anyway
because we'll no longer be able to claim the depreciation,
and like it just becomes an asset that's kind of
not claimable. It's not just good, which from a business
perspective kind of makes sense. But I'm not at the
(31:00):
end stage of my career where I'm talking about retirement,
and you know, I've got five years of planning, and
like twenty eight thousand dollars is a very big difference, right,
So for some people it's going to work out, and
for some people they're going to go, oh, well, it
makes a lot of sense to do that. For me,
we're not talking about you, baby cakes. We are talking
about this specific situation where it's probably a bad deal,
(31:24):
probably a bad idea.
Speaker 3 (31:25):
Just do the math.
Speaker 4 (31:26):
I feel like that's the simplest I mean, that sounds simple, yes,
but how many people actually do the math? Like and
please don't get me wrong, like doing the math sounds
really good, but lots of us just don't want to
do it because it actually doesn't lean into our narrative.
It doesn't think she might just want a new.
Speaker 5 (31:40):
Bloody car, saving saving, saving toward end exactly.
Speaker 4 (31:44):
So it doesn't mean that she's making a wrong decision.
But if she told you that the reason the decision
is being made is tax, yes, I would say that's
not a good decision. We also ask the community, obviously,
we said what do you think of her mum's tax strategy? Risingly,
sixty nine percent of you said the math ain't mathing,
(32:04):
twenty two percent said that's pretty risky close to a retirement,
and eight percent of you need a little bit of
a reality check. I'm sorry. This is where tough love.
Victoria comes in because eight percent of you said, makes
sense if she needs a new car.
Speaker 5 (32:17):
Where is the sense you're losing dollars?
Speaker 3 (32:22):
Very nice part from You've got done.
Speaker 5 (32:23):
Oh my god, I didn't mean a pun anyway.
Speaker 4 (32:28):
I saw the same thing.
Speaker 5 (32:29):
Yeah, sorry, yeah, thank you.
Speaker 4 (32:31):
It also went over my head and it came out
of my mouth. So the next thing we said was
how would you handle your parent making a big financial
decision that you don't particularly agree with. Seventy five percent
of you said I would try and educate them with
the numbers. Fourteen percent of you said, not my circus,
not my monkeys. I would respect their choice. Nine percent
of you said, be blunt, don't let it go. That's me.
(32:52):
Doesn't always work out that way. Don't just always be blunt.
Not everybody loves that. And one percent said I actually
avoid money to in any circumstance. Oh yeakay. We then
asked what is your two cents? And I would say,
this is my favorite question to ask the community. So
I've got a little round up. First person said, go
see a financial advisor. I think that's a good suggestion
(33:12):
close to retirement. If you're also making big money decisions like,
that's true. Probably, Like if there's a fair few things
going on, you're like, well, I'm planning for retirement, do
I want a new car?
Speaker 2 (33:21):
Like?
Speaker 4 (33:21):
Have I paid off my mortgage? Like, that's probably a
good time to like set things up. And there's no
such thing as being too late, Like literally five years
before retirement you could be in such a better financial
position when that day comes. So that is actually extrapolating
that out a bit, a really good decision or a
really good suggestion. Someone else said I actually had a
similar chat with my mum a month ago regarding a
car loan at sixty five. I think it's really tough
(33:44):
and she didn't really like it.
Speaker 3 (33:45):
Oh, I use this hard.
Speaker 6 (33:47):
When you like reverse the role, right, Like I feel like,
as a parent, you go, well, my role is to
educate my children, So to have that narrative flipped probably
would be kind of confronting.
Speaker 8 (33:55):
Yeah.
Speaker 4 (33:56):
Another person said, we actually just need to get better education.
And on tax and what that means. So many people
get attached to this idea of getting money back on tax,
but it's actually already their money.
Speaker 3 (34:07):
That's your favorite thing to say, Yeah, I mean that,
and like from.
Speaker 5 (34:11):
Little things big things grow. And I also say a lot,
not my circles, not my monkeys.
Speaker 3 (34:16):
Do you have a few If you're a doll, you'd
have a couple of catchphrases.
Speaker 4 (34:19):
You press the button, miss Rachel doll, but it's Victoria's doll.
And when you press the button because slay, Yes, I
feel like everyone would die because no one likes me
saying slay.
Speaker 3 (34:31):
I say, we hear it enough in real life.
Speaker 6 (34:32):
I don't.
Speaker 4 (34:33):
I don't even like saying slay. It just falls out
of my mouth.
Speaker 5 (34:36):
I know there are certain words like I ask queen
comes out of my mouth a lot as well. Yes,
there's some things that just fall out.
Speaker 4 (34:43):
I have been trying to teach my stim queen. I've
been like, say yes queen. He only says queen. We'll
get there, because like I want to be like, when
you see a really pretty person, what do you say?
Say clean?
Speaker 3 (34:57):
If I were a past a kidnap, that to me,
I do just feel.
Speaker 2 (35:00):
Like that's good.
Speaker 4 (35:01):
But anyway, anyway, someone said retirement is way too close.
It is not worth a couple of dollars back in tax.
Another person said, I really feel like this is the
generation my mum is almost sixty and she keeps talking
about taking out another car Loan?
Speaker 3 (35:15):
What is what's with the people?
Speaker 5 (35:17):
They were a party?
Speaker 6 (35:18):
I mean, I guess, yeah, I do get what you
were saying before about how like they've saved for so long,
like maybe they do want to live a life.
Speaker 5 (35:24):
Yeah, they've probably got to make that money.
Speaker 4 (35:26):
Totally get that. There was a lot of commentary, so
I won't get into like every single response, but there
was genuinely a lot of commentary just people saying, look,
there seems to be so many like people who have
misconceptions about getting money back on tax and I couldn't
agree more. Like I go on and on and on
about it. And then someone else said, I think she
just wants a new card and might be using this
(35:46):
as her excuse tbh. And that's probably a really good
place to leave it, because like everyone's kind of all
on the same train of like, it's really hard to
have money conversations with people who maybe aren't ready to
hear them. Also, it's really hard to talk about debt
with people who really want an asset. Play your cards right,
You're the only person that's going to know how your
mom's going to receive that, And like how to have
(36:08):
that conversation because like even conversing about this, if you
two had this idea and I was like, not so
keen on it, the way I'd approach Beck and the
way I approached Jess very different, right, So it's going
to be an each to their own situation. But yeah,
I agree with most people in the comments. We all
seem to think that getting money back on tax is
(36:29):
like the best thing ever, but like saving money is
actually better.
Speaker 6 (36:32):
Yeah.
Speaker 4 (36:32):
And then the last comment I'll leave you with someone
said you should get her to listen to this podcast.
Speaker 5 (36:37):
Ah, true exactly, So that's a really great place to
leave it.
Speaker 4 (36:41):
We have had a very fun time recording this episode
for you, guys, and we will see you bright and
early on Monday morning for a money Darius.
Speaker 5 (36:48):
Have a good weekend, Hi guys.
Speaker 4 (36:49):
Bye.
Speaker 8 (36:55):
The advice shared on Cheese on the Money is general
in nature and does not consider you're in 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.
Speaker 5 (37:14):
Tailored towards your needs.
Speaker 8 (37:16):
Victoria Divine and She's on the Money are authorized representatives
of Money Sherper Pty Ltd ABN three two one is
six four nine two seven seven zero eight AFSL four
five one two eight nine
My name is Tatasha Bamblet. I'm a proud First Nations
woman and I'm here to acknowledge country t Glenn Young Ganya, Niana,
Kaka yah y and beIN Ahaka nian Ar gay In
Mbini yakarum Jar Dominyamiga Umagahawaka Woman, Damon Imlan Bomba ban
Gadabomba in and now in wakah ghan On yak rum
Jar water Nadaa. Hello, beautiful friends, we gather on the
(00:24):
lands of the Aboriginal people. We thank acknowledge and respect
the Aboriginal people's land that we're gathering on today. Take
pleasure in all the land and respect all that you see.
She's on the Money podcast acknowledges culture, country, community and connections,
bringing you the tools, knowledge and resources for you to thrive.
Speaker 2 (00:45):
She's on the Money.
Speaker 3 (00:47):
She's on the Money.
Speaker 4 (01:08):
Hello and welcome to She's on the Money, the podcast
that makes personal finance fun, especially on Fridays. It is
our favorite day of the week because we get our
little team together and we get to celebrate you our
incredible She's on the Money Community. Miss Jesse Grici, She's
here and she's going to be sharing our favorite money
wins of the week. Miss Becksayed is here and she
has a lineup of very good road tips to share
(01:30):
with you. And we're going to be helping to answer
a money dilemma which is all about how your hex
step really affects your borrowing capacity and something that's lead
into our dms about what do you do when you
think your parents are going to make a bad money choice. Oh,
I feel like it's like backwards financial advice, but we
are all finding ourselves in positions like this more recently.
Speaker 5 (01:51):
Before we get there, though, guys, how have your weeks been?
Speaker 6 (01:54):
Yes?
Speaker 5 (01:55):
Go first please, I am having a great week.
Speaker 3 (01:57):
Oh not just a good week, I know, different from me.
Speaker 4 (02:01):
That's giving what's her name, Kylin?
Speaker 3 (02:03):
And you love Kylan?
Speaker 4 (02:06):
You know what you are chronically online like after?
Speaker 6 (02:11):
Yes, there's just lots of fun, exciting things happening in
my life right now that I am so happy about
and I can't wait to share with everybody. I know.
Speaker 4 (02:19):
I know you a little bit, you know, but like
we aren't telling people this secret. Yes, she's not pregnant,
just to be very clear.
Speaker 3 (02:31):
Not engage, no, but yes, anyway, we'll share the really seeds.
So that's really exciting.
Speaker 6 (02:35):
And you know what, today it's sunny. I was driving
and I had a really good day list on Spotify.
Speaker 5 (02:39):
Oh gorge, and I just like had.
Speaker 6 (02:40):
You know those really simple like it's like a very
ordinary life moment, just like, oh my god, like life
is worth living.
Speaker 4 (02:50):
Just to pay rise check?
Speaker 2 (02:53):
You know what?
Speaker 4 (02:54):
I was just you must have a really good boss.
Speaker 3 (02:58):
Live life, loving my way through life right now?
Speaker 4 (03:00):
That is so frizing, isn't the kicker? I think she's
just tu on an extra high.
Speaker 7 (03:05):
I am on a definitely sure, Yes, for sure, there's
something through like it's so warm, like it's very contagious.
Speaker 5 (03:12):
I'm like, oh my god, life is worth living, is
and like someone's coming. Like we're out of the cold,
We're out of the rut. Like I feel like everything's
looking up Millhouse. Ye, yes, my week has been gorgeous. Yes, lovely. Actually,
just hondering sun things, aciding to bloom.
Speaker 4 (03:32):
A girlfriend the other day actually, and she was telling
me that you were painting her bin.
Speaker 7 (03:37):
Yes, she really wants. I don't know if you've seen that,
that lady, that's like done. The looks cool, the bin
painting like stripes.
Speaker 3 (03:43):
Anyone who hasn't seen it.
Speaker 7 (03:44):
It's like green and red and blue and another color
I can't remember, and you just paint your bin. This
color was really cool because I kept making all these
like craft things because I haven't been working for so long,
but just as like please no more, but do things.
Speaker 5 (03:58):
They actually need my bin and so you pain and
it's just so much fun and it was like, oh yeah,
it like really brinds up a space.
Speaker 6 (04:06):
The bin driver loves seeing a fun bin because like
you look at the same bins, like how many bins
would you see in today?
Speaker 5 (04:12):
So many and really fun one.
Speaker 3 (04:13):
I feel like that would be excited totally.
Speaker 4 (04:15):
My mum under the bus here and Judy adore you
please don't hate me for saying this. In fact, turn
this off. But growing up, my mum decorated our bin
with these really large stickers. Like that sounds a bitt
in theory, but why did they have to be friend japannies?
And because they were always in the sun, they faded,
so I think they looked awful, but like she loved them.
Speaker 5 (04:35):
It was the eithnts exactly.
Speaker 4 (04:37):
She's ahead of her time. She was she was the
bin lady before TikTok that's here exactly.
Speaker 5 (04:43):
You know, great week, what about you. I'm glad.
Speaker 4 (04:45):
I'm just glad that the sun's coming back. Like I
feel like this winter, like both Jess and I we
get sad, which is like seasonal effective disorder, which is
why we love a hatch alarm clock. We're like, we'd
love doing you know, lots of just different things in
winter to help us feel better. But there's literally nothing
better than sunlight and like feeling like there's a little
(05:05):
bit of warmth in the air like the other day.
And this is so lame. Maybe this is just a
sign that I'm getting really old. I was walking to
the coffee shop lame, but someone who had just mowed
their lawn and it was the smell of mode lawn
and it was like a not freezing morning and I
was like, life is a worth a living.
Speaker 3 (05:23):
Yeah, truly, it really is. I love the smell of
fresh cut ground.
Speaker 1 (05:26):
Yeah.
Speaker 4 (05:26):
Like it was just like an on a morning when
I'm walking to the coffee shop and I wasn't wearing
like my jacket and my puffer and feeling really cold,
like sometimes I just like slog it to the coffee.
But it just it was a good day. To have
a good day. You know, Oh my god, this is lovely.
Whole episode is so sunny. I love it, and it's
all about not, I guess, spending any money. I suppose
a little thing.
Speaker 5 (05:47):
Literally, it really is. But speaking of like being on
a high, you were like, oh, it's so warm, it's
so good.
Speaker 4 (05:52):
We have a five star review. Would you like to
hear it?
Speaker 5 (05:54):
Plaicly so?
Speaker 4 (05:55):
Five star review from Perth Gal twenty three.
Speaker 5 (05:58):
I love it.
Speaker 2 (05:59):
I love it.
Speaker 4 (06:00):
And her title is from Delulu to money Queen, and
that's why I picked it, because I was like, same queen,
SAME's That's where I've come from. Yes, she said, I
am so happy I found this. My money story was
all about spending it before somebody else spent it for me.
I've learned to trust more of myself and that saving
through a rainy day is actually so much less stressful.
(06:20):
I listened to this religiously and I'm always waiting for
the next episode. Love the honesty, the tough love, and
the beautiful friendships that shine through the episode.
Speaker 5 (06:28):
Oh Cherry on top of godeous morning. Yeah, we're just friends.
We're just having a good time. Sorry, what do you mean?
Speaker 4 (06:37):
People gave us a podcast a yap on.
Speaker 5 (06:39):
Thank you so much, perth Gal.
Speaker 4 (06:41):
Thanks perth Gal twenty three. Really appreciate it very But
speaking of people in our community, Miss Jessicrici, I believe
that you have some money wins or confessions to share
with the group.
Speaker 5 (06:51):
I sure do.
Speaker 6 (06:52):
First Sunday Week comes from Casey, who said a new
Pilarti studio opened in her area and it had a
foundational membership.
Speaker 4 (06:59):
Okay, good deal, yeah.
Speaker 6 (07:00):
Which I only recently learned what a foundational membership is
for those who don't know, it's kind of when a
new gym or party studio or like any type of
place opens and you can get like a limited time like.
Speaker 3 (07:10):
Long term membership.
Speaker 6 (07:12):
And so Casey now pays forty four dollars a week
for unlimited Polarates classes and twenty four seven access to
the gym.
Speaker 4 (07:19):
That's so good.
Speaker 6 (07:19):
She said, her old studio, she's paying thirty dollars for
one class, so that's actually that is a money win.
Speaker 5 (07:24):
That's really good.
Speaker 4 (07:25):
Like I just feel like that's a like complete side note,
maybe not a positive side note, so sorry to bring
down the vibes, but like sorry, that's ridiculous, Like thirty
dollars for a Polarates class. Please don't get me wrong,
Like self care really important. I'm a pilates girl, but
I'm like, i'd say budget conscious Polarities girl. Like, as
you know, Jess and I tech, well, Jess and I
(07:45):
both do pilartis, but we'll like text each other about
Polarates packs and be like, oh they're on sale, Like
how good that stays nab On at twenty percent off,
because then class is like twenty one dollars each money win,
but like thirty dollars a class, that's just that's exorbitant.
Speaker 3 (07:58):
Yeah, it's a lot.
Speaker 4 (07:59):
That's so much money.
Speaker 6 (08:00):
I know, So very well done there to Casey. Next,
I have a money win. And I wanted to give
a little PSA from Alicia. So Alisia said her husband
has been off work this week to deal with his
late father's affairs. And I did comment this already, but
very sorry, sending lots of love to you and your
whole family. She said his workplace gives two mental health
days per year, and so he used two of those
(08:22):
for the week that he had to take off, and
he was able to just then use three annual leave days. Good,
but I replied to Malitia, and a good little fyi
for everybody.
Speaker 3 (08:31):
Everybody who works.
Speaker 6 (08:32):
Part time or full time nationally is entitled to two
days of bereavement when you lose a direct relation, So
go to the Fairwork website for more information. And this
is per loss, so god forbid, if you were to
lose two people close to you in one year, it'd
be two days per.
Speaker 3 (08:50):
Yeah, per person.
Speaker 6 (08:51):
So I come to Bach to relish and I said,
see if you can switch it over so he doesn't
have to use this annually. But it's good fyi for everybody,
because I don't know that all workplaces automatically tell you that,
but you're entitled to it.
Speaker 4 (09:03):
And you can also talk to your workplace as well
about using your sick and care is leaves because like,
you know, sorry, I'm not well, like not mentally well.
I know that lots of places and maybe this is
just me with a bee in my bonnet, like lots
of places off like mental health days, but like sorry,
if you need to use that, should that not be
built into your sickly Yeah, totally. You don't need to
(09:24):
justify to me what type of sick you are. You
could have the flu fantastic, or you could just like
need a bed rock day.
Speaker 3 (09:31):
Yeah, totally.
Speaker 4 (09:32):
You can shine at work the next day. Sorry, Like yeah, anyway,
And I've just got a lot of conversation about that.
But care is leaves should go into that because you go, Okay, cool,
Well I actually have to take time off to support
my family or my husband or my you know whatever,
my mum, because like that's a lot.
Speaker 6 (09:46):
Absolutely, it's sending you and your whole family lots of love.
But hopefully that's a little extra wind for you. Next,
I've got a money win from Daniel who said she
finally saved three months of expenses in her emergency fund.
And it's all because if she's in the money, stop it.
It's taken her years. She feels so secure knowing that
the money is there, and she's really proud of herself
for making it happen.
Speaker 4 (10:05):
So I can legitimately blow your mind. Yeah, like what
we do, like when we have a little yap and
have a good time and we're like talking about the
sunshine and like, yes we talk about other things too,
but people are changing their lives because of the content
that we make.
Speaker 5 (10:16):
Yeah, that's really cool, isn't that cool?
Speaker 6 (10:19):
I don't know if everyone can see the little badges
or it's just us because we're admins.
Speaker 4 (10:23):
But I think you can see the badgers because I'm
also in Glenn James's Facebook, Yes, and I can see
his badges.
Speaker 1 (10:29):
Oh there you go.
Speaker 6 (10:29):
Because it said Danielle was a rising contributor, so I
was just like, look at her, go what a queen. Next,
I've got a money in from Louise, who said she
got a smart meter for her electricity so she could
show her family the cost difference each day when they
were turning things off and not using that.
Speaker 4 (10:43):
She's my level of crazy.
Speaker 6 (10:45):
I love They've already say fifty dollars on their quarterly
bill and still water go money, we gorgeous, really good.
Speaker 5 (10:51):
And then you can lean into like the little bit
of Delulu, like we to measure everything.
Speaker 2 (10:56):
Why not?
Speaker 6 (10:57):
And then last of this week, I've got a money
in from Maddie said after listening to the Rich Girl
Mindset episode, she finally bit the bullet and bought a
big ticket item that she had saved four months ago
but had been too afraid to send the money on.
She now has a new split system hit her and
cooler and can no longer see her breath at night.
Speaker 4 (11:13):
I love that summer and future is gotten.
Speaker 3 (11:16):
Thank you well, money well spent, Maddie.
Speaker 4 (11:19):
Absolutely, it's hard when we've been stuck in this like
scarcity mindset, that even when we have the cash to
make these bigger financial decisions, because like, yes, you saved
for it, but also like what if I need it
for something else? Or like should I really be splurging
on this item, Like I don't technically need it, I
could put on another pair of socks, Like I just
think that that's a learning as well, to be actually
(11:40):
able to spend the money that you've saved because you've
got a plan. Absolutely, that's cool. That's really cool. Completely agree, everybody,
Well done everyone, miss x Yes, talk to me. What
have you got when it comes to broke tips?
Speaker 7 (11:54):
Okay, so this first one comes from Francis, who says,
my library has video games Xbox, PlayStation and Switch. It's
a good way to see which games the kids love
enough to shell out seventy dollars for such great that's.
Speaker 4 (12:06):
Actually such a good deal. I didn't know that they would.
I mean, I shouldn't be surprised. Libraries have everything. I
have everything. It's crazy.
Speaker 7 (12:12):
Love a library, as friends has said, you know, libraries
off of these video games and stuff like that. But
I thought i'd mentioned that because of the school holidays
at a gym. Yeah, I don't know why I'm on
top of school holidays. I actually you don't even ask kids.
Speaker 4 (12:23):
She is my kids.
Speaker 8 (12:25):
I have a mother.
Speaker 4 (12:26):
Actually, yeah, thank you.
Speaker 5 (12:27):
I just judge it by me on when I can
speed through the school though.
Speaker 4 (12:32):
Say yeah, yeah, okay, she's got a priority exactly. I
just like when there's less like traffic in the morning.
Speaker 5 (12:39):
Yeah yeah, really show I have to.
Speaker 4 (12:41):
Drive through like four school zones because like in relation
to where I live versus the studio, Like I'm not
on a freeway, like I have to go through like
residential areas and that's not a journey. But during school holidays,
I'm living it takes you like ten to fifteen minutes
to get to work.
Speaker 8 (12:58):
So good.
Speaker 7 (12:59):
I've always been curious and I don't want to spend
too much time. Is what do you do when you
have because I don't imagine we don't have school holidays off,
like if your child has school holidays.
Speaker 4 (13:08):
This is a conversation about ICEE, money and life. You've
got to work it out. That's insane to many parents
that I know, And this is really started. Maybe we
can do a whole episode on how to budget for
school holidays, you know, niche because not everyone in our
community is a mum, but interesting to know because like
we've a good friend that's a mum. A lot of
my friends are using that annual leave, Like they'll rely
(13:30):
on their grandparents a few days, but then they might
take three days of that annual leave so that they
can look after kids. They might do school holiday programs,
which I did a lot growing up, but like sometimes
you don't want to do that, or sometimes they're really
ridiculously expensive family cares. Sometimes families who you know have
a little bit more cash and go on holidays. That's
why they plan their holidays during school holidays, not just
(13:51):
because the kids are off school, but because they're like, well,
what else are we going to do with the kids? Yeah,
we may as well two for one. But in saying that,
I would say that traveling during school holidays is a
lot more expensive. As someone who's a relatively new mum,
I used to always avoid the school holidays when it
came to travel because I was like, sorry, I don't
want to be in Queensland. When every man in his
dogs in Queensland, it's going to be packed. But yeah,
(14:13):
there's a whole logistics conversation around that. And then to
add to that logistics conversation, it makes me think about
this conversation I was having with a friend last week
about how ridiculous work hours versus school hours are. Yeah,
like school hours nine till three, work hours eight thirty
two five?
Speaker 9 (14:31):
What what?
Speaker 4 (14:32):
Yeh?
Speaker 5 (14:32):
I don't like it. We're spending so much time.
Speaker 4 (14:33):
Anyway, I wait, different conversations, different an episode.
Speaker 5 (14:38):
Yeah, way, yes, anyway, sorry to derail.
Speaker 4 (14:41):
No, I think going to a good conversation.
Speaker 5 (14:43):
I think so.
Speaker 7 (14:44):
So this next one comes from Machelin, So sorry if
I'm saying that wrong. The wholesale beauty supply shop will
sell you twenty Leaders of body wash for fifty dollars
work twenty lids.
Speaker 5 (14:53):
Wow, what are you going to do with twenty Leaders
of body wash? You'll get through it. That's a life tippened.
Speaker 3 (14:57):
You always got to watch your body.
Speaker 5 (14:58):
Yeah, you're always got to wash your body.
Speaker 4 (15:01):
I like that. But are we taking the big twenty
liter bottle and putting it on the floor of the
shower with a pump on it, Like, what are we doing?
Speaker 1 (15:07):
Well?
Speaker 5 (15:07):
I guess it's like you just keep the one bottle
and then you keep refeeling.
Speaker 7 (15:12):
But the Machelin says, my kids keep making potions and
such in the shower, and with seven people in the house,
body wash in one liter bottles doesn't cut it. So yeah,
I can imagine that you, like you could put.
Speaker 5 (15:24):
The potions kid. I think been a potion's kid too.
I'm still a potion's kid.
Speaker 4 (15:29):
Yeah I am as well. So like my favorite body
wash is complete side note, also not that cheap? Are
the lush body washes?
Speaker 6 (15:36):
Yeah?
Speaker 4 (15:36):
Okay, the Sleepy Time wine and then the honey I
washed the kids one and my two favorites, but they're colored.
So in the shower, I turn into a kid and
I'm sorry, yeah yeah, yeah, so lovely. Yeah. And then
when my friends come over to stay, they're like, your
shower is so fun because you're just got like so
many different like bodyes, washes and just stuff the shower.
Speaker 5 (15:58):
Use it all, use it all you can make. Absolutely,
showering is time for whimsy. Yeah. I pretend I'm in
movies when I'm in the shower, you know, like I mean,
like I'm in.
Speaker 4 (16:08):
A A lot of people might go, I grew up
in the era of the drought, so like I did
as well, and like I can just remember my dad
banging on the bathroom draw, get out of the shower,
spend more than three minutes. So I carry that trauma
and think about that often while I sit on the
floor of my shower. Of course, wasting water.
Speaker 5 (16:28):
I suppose you could turn that into wimsy as well.
Speaker 4 (16:30):
That is whimsy, evil study farmer, but I could make
a cup of narrative.
Speaker 7 (16:36):
But anyway, I'm so sorry I keep derely, but I
just want to give my broach here, which is which
actinually not that great or helpful. But I was watching
this TikTok and these people were like, if you do
can't afford to travel, bring travel to you. And I
was really silly, and it's like, okay, we get all.
Speaker 4 (16:52):
That's very beck coded. Though definitely I love this kind
of thing because like you bring the movie cinema to
your house and everything to your house and you just
make it happy.
Speaker 7 (17:00):
It's so magical, and it's maybe more magical and way
less stressful than actually traveling. So you know, and this TikTok.
I think they wanted to like travel to Italy and
then they brought Italy to them. So it was just
like go out and like do a whole itly themed day.
Speaker 4 (17:15):
This gn my Instagram stories by a chance, because I
was talking about it like a few weeks ago on
my stories about like you can be in Italy by
cooking this Italy meal that I got on Mali's, and
you could be in France by cooking some wag used
steak like tomorrow we're in.
Speaker 5 (17:30):
Mexico because we're having tacos. That's actually very very similar
to me.
Speaker 4 (17:35):
Yeah, we're on the same page, but it was bringing it, yes,
exactly exactly expensive.
Speaker 7 (17:41):
I would even argue I would like I would i'ld
go as far as to say, you can like decorate
your house in that. Like so that's my broke tap,
which is not very helpful. I'm so sorry, but I
really just do like a themed date or day or
whatever because it's cheaper.
Speaker 5 (17:56):
It is still expensive, but it's cheaper than traveling and
so much I love that.
Speaker 4 (18:01):
All right, let's go to a really quick break because
on the flip side, we get to have a chat
about how your hex or your help debt for those
of you who are actually younger than me and don't
call it hex anymore, really affects your borrowing capacity if
you're thinking about purchasing a house and something that you
slid into our dms about this week, we're talking about
what do you do when you think your parents are
going to make a bad money decision? Because I don't
(18:22):
know anyway, guys, don't go anywhere.
Speaker 3 (18:29):
Welcome back, everybody. Let's take a listen to this week's
money dilemma.
Speaker 5 (18:34):
Hi, there, have you got a money dilemma you just
can't solve that. She's on the Money team is here
to help.
Speaker 9 (18:40):
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.
Speaker 4 (18:53):
Now, let's take a listen to this week's money dilemma.
Speaker 2 (18:58):
Hey, She's on the Money. I'm in the process of
staving to buy my first home and I'm trying to
grow a deposit. I have a question about hextet. I
have about twenty three thousand dollars remaining on my HEX.
I'm working full time, and I'm wondering if it's better
for me to pay down my HEX debt with additional
contributions or if it would be better to funnel that
(19:21):
money towards my deposit instead. I'm just wondering about the
hextet and how it's going to impact my capacity to borrow,
and the advice on this topic would be great. Thank
you so much.
Speaker 3 (19:31):
I feel like, surely you just take this one away.
Speaker 4 (19:33):
You just want me to take it away. Yeah, I'm
happy with that, all right. So the team of being
Lazy today talk to a mortgage broker, because that's a
fantastic question. But more often than not, it's actually not
about how much hex stet you have. It's about how
much savings you have and what that looks like. And
there's actually a lot of changes coming in with some
(19:56):
banks recently, and it's all different across the board, but
a few banks are starting to not even look at
your hex step. So if you go and pay off
your hex stet, because you go, you know, I should
be completely out of debt before I purchase this house,
because do you know what that feels logical? And then
you go to your mortgage broker and they go, oh,
you didn't need to pay that off. We could have
had an extra twenty grand sitting in your savings account
(20:18):
and you would have avoided LMI. I know what situation
I would have preferred to be in. So from the
perspective of someone who literally works in the industry, I
own a mortgage broken business called Zella Money, go and
talk to them and say, hey, this is the sitch
I want to be in, and you might actually find
yourself closer to the end goal than you thought you
were before. Sometimes we do have our clients pay off
(20:40):
a little bit of their hex debt, but I would
say most of the time, if I'm just broadbrush speaking
about the average, we often say, please don't do that,
because that actually doesn't benefit your situation. Looked at your situation,
we might get you to, I don't know, close a
credit card or like close a line of credit like
an after pay or a zip pay debt and go
get rid of that that off, like so it's not
(21:01):
even about paying it down. You might have a credit
card that has a two thousand dollar limit and we go, okay,
cool bank doesn't love that, just close that and then
we can talk about your mortgage, and you'll go, what
about my HEX, And we'll be like, do you know what,
It doesn't even factor into it because at the end
of the day, yes, and I don't want you to
think r V. So banks don't even look at HEX.
Most of them will look at your hex's debt, but
(21:22):
they just look at it as a payment that you make.
So you know your HEX every salary, let's pretend is
one hundred dollars. The bank isn't going to go, oh,
they've got a debt of twenty x thousand dollars and
you really should get rid of it. They're like, okay, cool,
Like she just has one hundred dollars less every month
that she could contribute towards this loan, and more often
(21:43):
than not, when we do the maths, I'd actually prefer
you to pay off that one hundred dollars a month
or one hundred dollars a week or whatever it ends
up being. Then pay off your HEX s deet in
its entirety, because having that cold, hard cash in your
hand is a lot more powerful towards your borrowing capacity
than not having a one hundred dollar pay come out
every single month. It is treated very differently to what
(22:04):
I categorize as bad debts. So bad debt is lines
of credit, car loans, things that actually don't help your wealth.
But when you have a HEX debt, if we just
look at probability, you're more likely to have a higher
paying job, You're more likely to have consistent gainful employment.
That's not saying that you have to go to university
or anything like that, but banks and people who are
(22:27):
assessing your credit risk are often like putting you in
buckets because that's their job to work out should we
lend to this person or not. They're going to put
you in some buckets, and that's not the worst one.
Speaker 8 (22:37):
To be in.
Speaker 4 (22:39):
So do you need to pay off all of your
hex's debt? The answer is talk to a broker to
get the best possible outcome, because there's no right or wrong, and.
Speaker 6 (22:48):
A very person to person bank to bank right, which
is why you need someone to kind of look at
your hole.
Speaker 4 (22:52):
Is exactly because I might go, oh yeah, actually, with
your situation, just extinguish it because I don't know. She
didn't tell us how much of a house deposit she has,
so I don't know, are you sitting on six hundred
grand and you know that's actually a drop in the
ocean in comparison, which point I might be like, Okay,
let's do some financial planning, and then we do and
it turns out that, yeah, let's just extinguish that never
think about it again. But like most of us, I
(23:15):
would say, are really trying to make the most of
every thousand dollars that we have totally and that can
make a really big impact. Y, Yeah, get advice and
you know what, A broke is going to do that
for free for you. We love that money win.
Speaker 3 (23:29):
Should we get into this week as susy dilemma?
Speaker 5 (23:31):
I can't wait.
Speaker 4 (23:32):
Hi, she's on the money. I'd love for this question
to be answered on the podcast. My mum is a
disability support worker who uses her car to get to
and from clients. This financial year, she wasn't able to
claim back as much tax on her car as it
had depreciated. She's adamant this means she should take out
a car loan to buy a new car so that
she can claim more on tax next year. She's looking
(23:54):
to retire in the next five or so years. How
do I explain to her that a car loan at
this point in her life is a terrible idea, And
spending all of that money on a car to try
and then save some money on tax doesn't actually come
out well in the wash. Are my assumptions even correct?
Or am I mistaken?
Speaker 5 (24:11):
Hmmmm? I assume she's not talking about anovated lease.
Speaker 4 (24:17):
No, no, And like, okay, just even of what was
anvated lease. Arguably, yes, buying a brand new, massive asset
to save some money on tax, yeah, rarely comes out
in the wash. No, well financially, but like we all
love the idea of saving tax and getting tax back,
but like, what does that even mean in the long term?
Speaker 7 (24:38):
I would think if it's like purely for tax reasons,
surely she knows that spending like twenty thousand dollars over
the year and saving maybe like a few thousand dollars
at tax time, or getting a few thousand extra dollars
at tax time, surely she knows Like that's silly, that
doesn't make sense. It's not you know, But maybe she's
just like I want a new car, you know, that's
(25:00):
the vibe I'm getting, because I can't imagine if the
math is very clearly like you're losing this much math
is not mathing.
Speaker 3 (25:07):
The math is mathing.
Speaker 7 (25:11):
I know this is not very helpful, especially because you're
not asking me for this kind of advice, But I
would just like.
Speaker 5 (25:18):
Find the root of this, because there's a part of
me that there.
Speaker 4 (25:20):
You're getting from mommy. You're just trying to justify a
new car because you want one different story.
Speaker 5 (25:25):
In which case, pop off girl a new car. You know,
it's been a long Line's almost probably not a choice.
Speaker 7 (25:33):
She's about to retire, lin live, you're spending all your
life working.
Speaker 3 (25:38):
Some new car.
Speaker 5 (25:39):
Just pop off right before your retirement, just go into
a little bit more debt.
Speaker 4 (25:43):
It's such a good idea. But maybe she's like, maybe
she's got the money for it, Maybe she's got the Dolulu,
maybe she's got the Dolulu. Who knows, Jess.
Speaker 3 (25:51):
I would just say, do the math to me.
Speaker 4 (25:54):
Don't be out here using logic against saying the math
is not mathing.
Speaker 6 (25:58):
I feel like if you put in front of her
and say, like, totally understand if you were to purchase
this new car at you know, the tax appreciation, et cetera,
this is what your current like if you kept your
current car, This is how the math that would work.
Out versus like, if you're to buy the new car,
you have obviously the cost of the new car, plus
the interest on the loan of that car, presumably, and
(26:19):
then factor in whatever she would say new cars.
Speaker 4 (26:21):
Aren't cheap, like you're not spending ten thousand dollars. I
don't know. I feel like so many people justify new
purchases because they go, I can claim it on.
Speaker 3 (26:29):
Taxing, yeah, which is like you it's like that thing,
what is it that's a write off? Like if that
works people, you don't.
Speaker 4 (26:37):
You don't write off the whole purchase price. You write
off some of the tax payable. And for most people
in Australia, their tax rate is thirty percent, so only
thirty percent of that asset is quote right off a bull.
And even with like depreciation, you're not getting that full
amount back in the first year. It takes a while.
Like let's like make an example of this, right, I
(26:58):
would say that an hour I've reached brand new cars
probably what forty grand, So forty thousand dollars. Your mom's
going to go out and she's like really want the
tax deduction, and let's pretend it's got nothing to do
with like any other reason Like, it's not because she
wants a new car because she's worked her whole life.
It's not because she like doesn't feel safe, like we're
not having those conversations. She just wants it for the tax.
Right off, Let's pretend she has a thirty percent tax
(27:19):
rate like most people in Australia. She might get what
twelve grand back at tax Time's still for twenty eight
thousand dollars. Yeah, out of pocket, Like that's how she's
gonna have to come up with if you've got the cash, call,
we probably could have done a little bit more with that,
especially right before retirement. If you don't have the cash,
that's a twenty eight thousand dollars loan on what type
(27:40):
of interest rate, like usually a lot more. So, Yeah,
you get a deduction, but it's not a magic free
car that you can just claim. And I think another
way that you could put this is like, what if
I told you give me ten dollars, Yes, I'll give
you three dollars back. Is that a good deal?
Speaker 3 (27:58):
I mean it's not the best.
Speaker 4 (28:00):
Probably wouldn't do it right, but that's how tax deductions work. Yeah,
you beck, you give me ten bucks, I'll give you
three dollars. Okay, so that a good deal for free?
You would free three dollars. Like, no, you're losing money,
like you only get to save or keep a fraction
(28:21):
of what you've spent. And like just because you're getting
a discount doesn't make it a good deal. Yeah, like
that's how marketing works. I oh, sorry, I.
Speaker 7 (28:31):
Don't know who needs to hear this, and I could
be completely wrong, But for like an average person, let's
say me, less am earning. I'm definitely not earning one
hundred k, but that's just a number that works well
for me in my brain if you round numbers when
doing examples. Yes, yeah, so what I think when people say, like, oh,
that's a rite off or whatever. If you buy a
forty thousand dollars car and you can claim all of
(28:52):
that on tax, that means that your tax the amount
payable for that year is sixty thousand dollars.
Speaker 5 (28:58):
Now that's the amount you paying tax on. Is that
how that works?
Speaker 3 (29:01):
Yes, that's not as clean because you can't claim generally
the whole cost of the car.
Speaker 6 (29:06):
Can you know?
Speaker 4 (29:07):
You can't go hypothetically if you could, so you can't.
Even so even with your math, even if it made
got you, got you, got you? Okay, Like, let's pretend
your mum is earning enough to be in a thirty
thousand dollar tax bracker. Let's call it like eighty thousand dollars, right,
and then your mum goes out and buys a forty
thousand dollar car, Like she's gonna have to cough up
in her after tax money twenty eight thousand dollars for
(29:31):
a forty thousand dollar car because you can only claim
thirty percent of that car's value, which is twelve thousand dollars, right,
So like that math doesn't math, and a lot of
people will justify it, Oh, it's tax deductible whatever, Like
there's another like side of the coin. And some people
will be like, well I got a new car because
I haven't, and.
Speaker 2 (29:49):
Do you know what?
Speaker 4 (29:49):
There's always the like, yeah, but what people You see
them on TikTok, you see them on Instagram, you see
them like in the comments section. They've always got something
to say about this situation. But it's like not the situation.
Speaker 3 (30:02):
There's the exception to everything.
Speaker 4 (30:03):
There's an exception to every rule because like personally, I'm
young or I think I'm still four I'm young.
Speaker 5 (30:12):
Aging is a privilege. I am trying to cut.
Speaker 4 (30:15):
Out this conversation and be like, I'm getting so old.
Shut up, Victoria. That's a good thing anyway. I am young.
So like in my business, I have my car and
that's a part of like my big cash flow situation.
And I talk to my accountant and do you know
what more recently, obviously there were a number of other reasons.
I had a baby, so I needed a bigger cartoons
out of two door coupe was not ideal for a
(30:37):
car seat. But I got a new car, and part
of that is being able to claim it on tax.
And he said, Okay, like after about six years, we're
probably going to want to swap that car out anyway
because we'll no longer be able to claim the depreciation,
and like it just becomes an asset that's kind of
not claimable. It's not just good, which from a business
perspective kind of makes sense. But I'm not at the
(31:00):
end stage of my career where I'm talking about retirement,
and you know, I've got five years of planning, and
like twenty eight thousand dollars is a very big difference, right,
So for some people it's going to work out, and
for some people they're going to go, oh, well, it
makes a lot of sense to do that. For me,
we're not talking about you, baby cakes. We are talking
about this specific situation where it's probably a bad deal,
(31:24):
probably a bad idea.
Speaker 3 (31:25):
Just do the math.
Speaker 4 (31:26):
I feel like that's the simplest I mean, that sounds simple, yes,
but how many people actually do the math? Like and
please don't get me wrong, like doing the math sounds
really good, but lots of us just don't want to
do it because it actually doesn't lean into our narrative.
It doesn't think she might just want a new.
Speaker 5 (31:40):
Bloody car, saving saving, saving toward end exactly.
Speaker 4 (31:44):
So it doesn't mean that she's making a wrong decision.
But if she told you that the reason the decision
is being made is tax, yes, I would say that's
not a good decision. We also ask the community, obviously,
we said what do you think of her mum's tax strategy? Risingly,
sixty nine percent of you said the math ain't mathing,
(32:04):
twenty two percent said that's pretty risky close to a retirement,
and eight percent of you need a little bit of
a reality check. I'm sorry. This is where tough love.
Victoria comes in because eight percent of you said, makes
sense if she needs a new car.
Speaker 5 (32:17):
Where is the sense you're losing dollars?
Speaker 3 (32:22):
Very nice part from You've got done.
Speaker 5 (32:23):
Oh my god, I didn't mean a pun anyway.
Speaker 4 (32:28):
I saw the same thing.
Speaker 5 (32:29):
Yeah, sorry, yeah, thank you.
Speaker 4 (32:31):
It also went over my head and it came out
of my mouth. So the next thing we said was
how would you handle your parent making a big financial
decision that you don't particularly agree with. Seventy five percent
of you said I would try and educate them with
the numbers. Fourteen percent of you said, not my circus,
not my monkeys. I would respect their choice. Nine percent
of you said, be blunt, don't let it go. That's me.
(32:52):
Doesn't always work out that way. Don't just always be blunt.
Not everybody loves that. And one percent said I actually
avoid money to in any circumstance. Oh yeakay. We then
asked what is your two cents? And I would say,
this is my favorite question to ask the community. So
I've got a little round up. First person said, go
see a financial advisor. I think that's a good suggestion
(33:12):
close to retirement. If you're also making big money decisions like,
that's true. Probably, Like if there's a fair few things
going on, you're like, well, I'm planning for retirement, do
I want a new car?
Speaker 2 (33:21):
Like?
Speaker 4 (33:21):
Have I paid off my mortgage? Like, that's probably a
good time to like set things up. And there's no
such thing as being too late, Like literally five years
before retirement you could be in such a better financial
position when that day comes. So that is actually extrapolating
that out a bit, a really good decision or a
really good suggestion. Someone else said I actually had a
similar chat with my mum a month ago regarding a
car loan at sixty five. I think it's really tough
(33:44):
and she didn't really like it.
Speaker 3 (33:45):
Oh, I use this hard.
Speaker 6 (33:47):
When you like reverse the role, right, Like I feel like,
as a parent, you go, well, my role is to
educate my children, So to have that narrative flipped probably
would be kind of confronting.
Speaker 8 (33:55):
Yeah.
Speaker 4 (33:56):
Another person said, we actually just need to get better education.
And on tax and what that means. So many people
get attached to this idea of getting money back on tax,
but it's actually already their money.
Speaker 3 (34:07):
That's your favorite thing to say, Yeah, I mean that,
and like from.
Speaker 5 (34:11):
Little things big things grow. And I also say a lot,
not my circles, not my monkeys.
Speaker 3 (34:16):
Do you have a few If you're a doll, you'd
have a couple of catchphrases.
Speaker 4 (34:19):
You press the button, miss Rachel doll, but it's Victoria's doll.
And when you press the button because slay, Yes, I
feel like everyone would die because no one likes me
saying slay.
Speaker 3 (34:31):
I say, we hear it enough in real life.
Speaker 6 (34:32):
I don't.
Speaker 4 (34:33):
I don't even like saying slay. It just falls out
of my mouth.
Speaker 5 (34:36):
I know there are certain words like I ask queen
comes out of my mouth a lot as well. Yes,
there's some things that just fall out.
Speaker 4 (34:43):
I have been trying to teach my stim queen. I've
been like, say yes queen. He only says queen. We'll
get there, because like I want to be like, when
you see a really pretty person, what do you say?
Say clean?
Speaker 3 (34:57):
If I were a past a kidnap, that to me,
I do just feel.
Speaker 2 (35:00):
Like that's good.
Speaker 4 (35:01):
But anyway, anyway, someone said retirement is way too close.
It is not worth a couple of dollars back in tax.
Another person said, I really feel like this is the
generation my mum is almost sixty and she keeps talking
about taking out another car Loan?
Speaker 3 (35:15):
What is what's with the people?
Speaker 5 (35:17):
They were a party?
Speaker 6 (35:18):
I mean, I guess, yeah, I do get what you
were saying before about how like they've saved for so long,
like maybe they do want to live a life.
Speaker 5 (35:24):
Yeah, they've probably got to make that money.
Speaker 4 (35:26):
Totally get that. There was a lot of commentary, so
I won't get into like every single response, but there
was genuinely a lot of commentary just people saying, look,
there seems to be so many like people who have
misconceptions about getting money back on tax and I couldn't
agree more. Like I go on and on and on
about it. And then someone else said, I think she
just wants a new card and might be using this
(35:46):
as her excuse tbh. And that's probably a really good
place to leave it, because like everyone's kind of all
on the same train of like, it's really hard to
have money conversations with people who maybe aren't ready to
hear them. Also, it's really hard to talk about debt
with people who really want an asset. Play your cards right,
You're the only person that's going to know how your
mom's going to receive that, And like how to have
(36:08):
that conversation because like even conversing about this, if you
two had this idea and I was like, not so
keen on it, the way I'd approach Beck and the
way I approached Jess very different, right, So it's going
to be an each to their own situation. But yeah,
I agree with most people in the comments. We all
seem to think that getting money back on tax is
(36:29):
like the best thing ever, but like saving money is
actually better.
Speaker 6 (36:32):
Yeah.
Speaker 4 (36:32):
And then the last comment I'll leave you with someone
said you should get her to listen to this podcast.
Speaker 5 (36:37):
Ah, true exactly, So that's a really great place to
leave it.
Speaker 4 (36:41):
We have had a very fun time recording this episode
for you, guys, and we will see you bright and
early on Monday morning for a money Darius.
Speaker 5 (36:48):
Have a good weekend, Hi guys.
Speaker 4 (36:49):
Bye.
Speaker 8 (36:55):
The advice shared on Cheese on the Money is general
in nature and does not consider you're in 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.
Speaker 5 (37:14):
Tailored towards your needs.
Speaker 8 (37:16):
Victoria Divine and She's on the Money are authorized representatives
of Money Sherper Pty Ltd ABN three two one is
six four nine two seven seven zero eight AFSL four
five one two eight nine
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