She's On The Money - FRIDAY DRINKS: Hairs and Shares!

Episode Date: September 30, 2021

Happy Friday beautiful Starfish! A fun girl gang today chatting all things fees and shares and crypto! Happy weekend!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. Victoria Devine is an Authorised Representative of Australia Pacific Funds Management Proprietary Limited ABN 34 132 463 257 - AFSL 339151.See omnystudio.com/listener for privacy information.

She's on the money. She's on the money. Hello and welcome to She's on the money, the podcast for millennials who want financial freedom. Welcome back to another one of our Friday drinks episodes where we get to celebrate the money wins from our She's on the Money community. There are as always so many great wins and confessions that are shared in our community each and every single day and Tony, Jess and I have spent a very big part of our week this week talking about all the things you guys have been up to so today we get to

expand on that. Before we do that let's recap really quickly on what the She's on the Money pods were about this week. Tony, what did we do on our Monday Money Diary? Our Money Diaries this week talked about how she grew up with lots of money in her family and then her mum and stepdad split up and kind of went from having lots of money to having no money and there being lots of, you know, negative talk about money in her family and she had a family friend whose parents did really, really well and she kind of got a bit of inspiration from them and thought, how do I make my life like this? How do I become successful? And saved her butt off, worked really, really hard and now is earning six figures. She doesn't have a degree and she's got

investment properties and yeah, she's like fully turned her life around. It was a really inspirational one. I loved this one as I do all of our money diaries, but I genuinely felt after this money diarist, I'd made new best friend. I was like, oh my gosh, we are going to be best friends when you're in melbourne let us know so we can go out for drinks but i think that's my favorite thing about the money diaries you kind of go it's like a hard and fast relationship tony it is like you've gone out on this speed day and they've like told you everything about their life in the first hour and then you're like well i guess we're married now um so you just instantly feel so connected with the money diarists and i don't know it feels really special to have that relationship

yeah it's like a brand new friendship straight away which is great because it makes us feel super, super connected. And, and it's so lovely that people want to share their stories, but also like we get to revel in their achievements as well, even though we didn't really have anything. Oh, we had nothing to do with them and we just get cool friends, which I love. And I just feel like we've got this amazing little community of people that we are so connected with. In fact, completely off topic. I actually did an interview earlier this week and I was saying that, you know, our community genuinely feels like they're my friends. And I know that sounds really strange, But if someone slides into my DMS and wants to share a money winner, a confession with

me, I immediately just assume it's because we're, you know, in the community and that's what the community does. And I was trying to reflect on why that might be the case. Like, how come do I just assume that these people are my friends, even though, you know, other people might be like, oh, they're followers. They're just from your, your podcast. Like, why are you so interested? And I'm like, well, it's because everybody's come from somewhere and you two manage our

Facebook group. And every day we have people joining the community and nine times out of 10, you can see how they've come to our community. And it's actually because their friends have added them or their cousins have recommended them or their stepsister has done something to add them to the group. And you kind of just go, Oh, like, I know you might not know me, but we're friends by extension. Cause like your friends are my friends. And it kind of is just like this seven degrees of separation in a way from the original she's on the money group, because it's just compounded. It's not like someone just listened to the pod and joined the group. And, you know, even if that's the way you found us, like that's epic, but it just feels like you're in my little

inner circle, even though maybe that's not true. Cause there's like 200,000 of you. No, I think it's true. I think you can claim that and you can say, yeah, 200,000 of my closest friends. Yeah, but you just immediately, and I don't know if you guys do this either. And maybe I'm just in the really lucky position that people DM my personal page. Um, I just feel really lucky that people trust me so instantly with their stories or want to share a win with me because they know I'm just as excited about it. Like it's just cool stuff and I just really, really like it. But you know what else I like? Our Wednesday deep dive episode. Jess, what happened on this Wednesday's episode? This Wednesday was a fun one. It was a little

bit different. UNG did a Q&A. So we put a call out to the community asking for questions and we got so many. So, let us know if you enjoyed that episode and maybe if we should do a part two. But we had a heap of questions that you went through and just answering some really fun different things. Obviously, we get so many great suggestions for episodes and we try our best to make sure that when there's something that's really commonly asked for that we prioritize addressing that. And there's just so many things in the finance world that we could and will talk about. But it was really cool to be able to go through and just answer some more specific questions that we saw people were really liking or asking really frequently.

And if I'm being really selfish, Jess, I really liked that episode. It was super fun because Georgia had collected a number of questions from the community and it was like just really quick fire. And I felt like we could give a lot of value in a short amount of time instead of just tackling one topic in an episode. It was like, all right, well, this is my advice on this and this is what I do here and this is what this means. And it was just, it was one of those things where it's like getting into a conversation with friends about money. It was just a whole heap of fun so yes if you want more of those i'm absolutely keen for it but moving on you guys might have noticed our best friend ryan john is working his little butt off today so hasn't

been able to join us to record our friday drinks episode so tony do you think you have feet big enough to fill those shoes i'm taking the helm and it feels weird i don't know how i'm gonna go So please direct any feedback to Victoria Devine. I know that all 200,000 of you are very good friends of hers. So any feedback, pass straight on to her. But I'll do my best, do my darndest. All right. So what have you got to share with us today?

All right. Alicia says that I finished my $10,000 money challenge after only starting at the beginning of the year, which is crazy. That's so exciting. Yeah. At the beginning of the year, $10,000, it's not even 12 months, mate. calm down i know and it's going to go towards um traveling or a new car if she can't travel when she finishes uni next year my gosh she's in uni as well she's studying as well oh it's so

scary that we're thinking that way oh if i can travel at the end of next year oh remember when we used to book trips more than a year in advance gone are those days well i actually need to um renew my passport at the moment. And I'm like, what's the point in spending $300 on this when I can't even do anything with it? Because there's so much more paperwork to do if you let it completely expire. That's why I'm going to be paying for mine. But yeah, mine is going to expire at the end of this year and I really need to redo it. But yeah, I just don't want it to expire because you have to get out your birth certificate and stuff. And that is an admin nightmare I'm not willing to engage with um we always get a lot of questions whenever we share on our stories photos

of the saving tax so we have four different saving tax a thousand two thousand five hundred five thousand and ten thousand they are available on our website if you go to she's on the money.com.au and click on freebies and there's those and a bunch of other cool resources you can check out nikki says money win her shares went up love that which is very cool that is a money win as always but we also need to normalize them going up and down over their life cycle but at the same time share going up great money win we can celebrate we can celebrate good job kind of win i am here for it tessa says money win this week was finding $399 pants that she's been obsessing over for weeks in an op shop what in her size for $12 oh that is it that is a very good money win

that never happened $400 pants for 12 bucks you weren't even gonna get it for that on sale she manifested it oh yeah she probably did she was probably like dear jess praying on the side of her bed the god of facebook yeah so today we're praying to the god of facebook um jess would really like a crystal um no please mark zuckerberg but can we flip this for a second what kind of person buys new season 400 pants and then it's just like oh i just send them to the op shop like who are you can i have your money diary because you're throwing money away i don't want your money diary i just want your money you obviously have enough of it i want to hear it i want all the pervy details like how can you afford to put four hundred dollar pants in the

op shop bin like what like i know it's for good and it goes to charity but like you really could have sold them on facebook marketplace for half the price and donated it to charity to get a bit donated that money anyway yeah exactly twelve dollars they didn't know what they had i know um another one for jess nicola says i've been looking at designer bags to spoil myself around four thousand dollars which was definitely out of my budget but found a versace couture bag on depop which retails for 340 and got it for 150 what oh my gosh that's so exciting and that is a really good compromise as well i mean a four thousand dollar handbag i'm not gonna argue with you if that is in line with your values and you go no v that's exactly what i want nope i want you

to get that and i want you to be really happy with it but if you're like oh it's just because i want a really nice handbag she went and found something that was within her budget and within her values and i love that i want to see a picture of the bag though oh i'll ask i'll ask for a picture of the bag um tina says that she didn't realize that dodo were charging her twice they didn't cancel an account when she moved in january and they said too bad so sad she argued with them they offered half back she said no i have a right to a full refund because the other internet i couldn't even access it i've only been accessing one internet and they finally gave in they agreed to a full refund so 675 dollars back in her pocket and 75 less per month going forward

but also the audacity of that company to say hey we're really sorry that we of our mistake yeah to say hey we're really sorry that we stuffed up um you're just gonna have to deal with that that no no no no no i am so glad that she did the right thing she got her karen on sometimes it's okay um because she absolutely deserved that money back it would be unacceptable for them to try and do otherwise dodo your service is not so nice i want to pay twice hard no that's very funny i'm funny i'm funny guys congratulations what else have you got tony let's move on before anybody notices all right piper says i've been searching for ages for a cute white sneaker that won't cost an arm and a leg oh you know that uh-huh went into target to

buy a budget pair and actually found a feeler pair with a clearance sticker of 25 down from 60 flicked the tag over it was further discounted to 17 so i thought money win took them to the cash register and they were 11 so she actually ended up saving 48 and got a trendy pair of sneakers oh how cute i love that i love that she was trying to do the right thing and was rewarded for it uh-huh it's the manifestation it is and white sneaks go with everything they do go with everything they elevate every single look i will fight anybody that disagrees with me follow along for tony's fashion tips that she's on the money aus and very last one lucky last adriana says my loose leaf spinach wouldn't register on the scales at woollies because it wasn't heavy enough

so the attendant said just take it money i love when people do that it's not even your money to make that decision on but they're like i can't deal with that just go tony you used to work in a deli did you ever do stuff like that no I was the annoying person that was like I will weigh that before I give it to your child you have to pay for it you can't have it for free oh my gosh so you wouldn't even give kids free twiggy sticks no nothing I would weigh it and give them a sticker and make them pay for it Tony I'm sorry I like big corporations sorry Woolies Tony was an employee you really should have kept hold of i was saving the money okay you were you weren't would you do it again a hundred percent that's disappointing

all right tony and jess we are back and a couple of weeks ago we did an episode on how to start saving and investing for kids and teaching them the way and an article came out on news.com.au not to blow my own trumpet but I had an article come out on news.com.au this week um it wasn't that article hang on was this just an excuse for you to bring up an article about yourself you don't really have any information no no no I just wanted to talk about myself again but it actually wasn't my article that I wanted to talk about it was an article from somebody called Sarah Sharples who if she wants to work for us and do some copywriting please slide into my dms because I did enjoy this article but it was about some research behind how many kids

in australia are actually investing already and i was super surprised at the statistics and would love to know what you guys think because i was shocked and thought it would be more but i don't know what you guys think so essentially a survey was done to see how many kids are investing and it found that seven percent of children under the age of 12 have a shared trading account in their name and that is the equivalent of about 270 000 australian kids who are investing in the stock market. That's it. You said you thought it would be more. That sounds like heaps to me. I thought it would be more. I would think it would be way less. Yeah. I'm with Tony. So I thought it would be more in terms of numbers, maybe because I know nothing about how to calculate populations.

7% feels right, but 270,000 kids just, it felt like there would be more kids. But when you tell me it's, that's actually 7% of kids under 12, I'm like, oh, okay. Like that's, that's pretty close to 10 we could round that up a financial advisor would absolutely round up so is that parents opening it for children and investing on their behalf or is that just being like no put this into the asx for me you do need a guardian to actually do that it is kids who have an account in their name not necessarily they're whacking out their iphone and doing some trades like jess does yeah no no we're not making share trades at two um but it was also really interesting because obviously seven percent i think is a lot of kids under the age of 12 investing but the same

survey found that two percent of kids under 12 had a cryptocurrency account in their name really what two percent of kids under 12 doing crypto this is a slippery slope my friend do you I think it's because it's in vogue at the moment. So their mum or dad have been like, yeah, we saw it online. We bought some. We'll pop some in the kid's name as well. Look, it must be. I just didn't think, and I guess as a financial advisor who doesn't like crypto, and I'm happy to say that, crypto to me is not something that is long-term.

So I am genuinely surprised to think that parents are like, oh, this is such a good long-term investment. whereas you know a diversified etf exposing you to the top 200 companies in australia to me would be a little bit more akin to longevity i suppose over the long term especially if you're investing but i think that two percent of kids investing in crypto like it's along the right track but it makes me wonder how many parents are opening this and what type of parents are opening this and it makes me dive into the idea around you know how i always talk about risk profile and like what that actually means because recently i've been having a lot of chats about crypto and who owns it and what's going on with a number of our community members because i'm trying to just like

learn a bit more about what you guys really want me to talk about and how to educate in a i guess more relatable way and i was super surprised to find that there are a number of people in our community who were happy to buy crypto or some kind of cryptocurrency, but were not happy to invest on the Australian share market. And I was, I'm always taken aback by that because as an advisor, like my base is risk and whether you're willing to take on risk. And for me, risk is mitigated with time. There's a really great chart by Vanguard that shows you the performance of all asset classes in Australia over time and how they've performed. And if you look at that chart, it actually shows you that over 30-year periods or even over 10-year periods, it's the same.

Nobody's ever lost money if they stay invested for the long term. So for me, that's pretty solid evidence. That's pretty solid past performance. And as a financial advisor, I should say past performance is not a reliable predictor of future performance, Tony. but it's it's something where I'm like well that's tried and true like you know if you're investing for 30 plus years which I'm assuming you would be doing and would have that intention when you're investing for kids crypto hasn't even existed for that long and we've never been able to say there's a certain period of time that you can invest in crypto and not lose money so for me I'm like wow like why are you thinking this way like where is this come from so I guess I've got

some more research to do around money mindset and emotional investing because so many people were willing to invest in crypto but not the stock market but the stock market over time has been proven but crypto hasn't so i feel a little bit like this plays into herd mentality which i actually talk a lot about with my clients is that crypto has been talked about in abundance right all over the media our friends are talking about it i have no doubt you guys have friends who have been like oh i bought bitcoin oh i bought dogecoin like they've done something with crypto so you kind of get interested and you lose that idea of what risk actually means because the concept has been so normalized that you're like oh it's fine my friends are doing it no problems i think as

well everybody is interested in a get rich quick scheme oh yeah we should start mlm honestly you only ever hear the winners right yeah and so you heard everybody saying oh i bought um bitcoin or i had some and then i sold it for fifty thousand dollars and everyone's like oh well i'm going to buy it now because i want fifty thousand dollars and then all that like that's what takes off and we were just talking before we started recording about the impact that like the media can have over what stocks do and especially bitcoin and um other cryptocurrencies because they're so in vogue and it's been in vogue for you know the past five or six years that's what people are interested in just find it so pervy i suppose why they are trusting the purchase of

that asset, but won't go and invest in the share market or, you know, download our friends shares and start picking things that they feel passionate about. They're like, that's too much. But crypto was easy, even though it's a bigger hurdle and something for me as an advisor that is far harder to swallow. And yeah, what you're talking about, Tony, is the conversation we're having before this episode. And I was telling you guys about how there's actually been a crypto plunge in the last week or so because bitcoin and ethereum that both of their prices have absolutely gone through the floor because beijing issued a statement that essentially said that it will be the end of cryptocurrencies in china because they don't want them in china and you go oh like that decision

obviously bitcoin is international and china is one country obviously an incredibly impactful one when it comes to the economy but you look at it and you go oh they're making that decision has plunged it through the floor. Whereas if the same thing had happened in Australia and a decision was made about a stock, the same type of response wouldn't have happened. So it just, it's just real pervy and really interesting. And I like talking about this stuff. So thank you for coming to my TED talk. Yeah, I think it'll be interesting to see the impacts of it over a longer period as well. Just another really interesting point, the environmental impacts of cryptocurrency over the long term as well like the amount of energy needed to mine for it actually yeah yeah is um is really

interesting and we won't go into it maybe we can do a whole episode tony on on bitcoin or on crypto and how it actually works not necessarily how you buy it but like bitcoin and cryptocurrencies are mined and people set up these elaborate computer systems to mine these and if you are interested in environment and ethical investing there's a lot of conversation to have there yeah it's very unethical in terms of the environmental impacts speaking of like fun markety update type things did anybody see that on thursday um olaplex went onto the market yes they had their very first ipo which as a very keen hair eccentric person very happy with it i love my olaplex and i love that i now own shares in it i was so excited when it went up because i also am like a user of it and

i love it and i feel like that's always a fun thing you know to sometimes purchase shares in a product that you actually really enjoy but there's also a really interesting like background on it because olaplex as a company has actually seen like a lot of really great successes over the past few years and i will start this off by saying this is not advice i am not saying go out buy Olaplex. We don't do that here. But it was like we did buy Olaplex here though, but we are talking about the performance of a company because it's really important. And do you know what? I'm so excited. Like I cannot like to preface this conversation. I cannot believe Jess that you joined us last December, had no idea how to invest. And now you're telling me about the

performance of a company because you have selected one of their IPO assets to purchase. Like what, who are you look at that growth we love some character development so they actually had 90 net sales growth from 2019 to 2020 which is 90 is astronomical to me that's some soft hair that is some luscious hair um but in addition to that there's also some really great things like i know that they're the number one hair care brand at sephora they are they also have a 2020 adjusted gross margin of 82%, which is massive, which I think it's really important to look at stuff like that. And I know that I guess we're being a little bit more technical on shares and over the next couple of months, hopefully I can get a little bit more technical

on shares and what that actually means because Olaplex is cool because I use it, but also it's cool because like looking into a company and understanding why you're purchasing it is even cooler. Like, and I know a couple of years ago, maybe Jess, you would be like, oh, it'd be cool to own shares in a haircare company that I use. Whereas now you're like, okay, cool. So I looked at their annual report and this is what I've learned. And that's literally what you're spitting back at us. And that's just real cool. It's really fun. And even just on like a less technical, I suppose, measurement, not that you shouldn't be using technical measurements, but if you go through their Instagram and go to their tagged photos, they're tagged in a photo literally like

once an hour at a minimum often like several times more than that like so crazy and i just a fun little cool thing that i thought was really interesting because it's something that i was like oh like that's something that i want to purchase shares in um and yeah we'd love to see it i'm really excited that you now know what you're talking about and what you're looking for and that it's not just personal interest it's like okay i've got a personal interest but i know what i'm looking for or i'm really impressed with their numbers and this is why i'm making that decision and that's what i want to see from our community because i say you know back to what we're talking about before with crypto a lot of people will tell you that they bought crypto because their

friend did or someone told them it was really good whereas you actually need to do your own research on whatever it is and it might not just be olaplex it could be any business but i want you to know why you're buying a certain asset class whether it is bhp whether it is woolies or Coles? Why are you choosing these assets in particular, not just, oh, I heard they were good to buy. Or I know the name. Exactly. And the reason for that obviously is because of performance and obviously because we want to be comfortable with what we're purchasing. But furthering that, there are going to be times where Olaplex's share price decreases and you'll look at your portfolio, Jess, and you'll be a little bit behind from where you started. You go, oh, damn. But deep

down you know why you still hold them because you've already valued that company to yourself you're already like yep that you know what their share price might be down but their turnover is good their business is good they are the number one in their category they are this they are that they are the other and to you you'll go yeah i see that the share price is down but i'm not worried about that because i have a basis for investment as opposed to oh i bought it because my friend didn't know it's off and oh i don't like that so and i might as well sell it exactly so we're making making educated decisions based on our interests, but also really validating those in addition. And I think that that's a really good example of that. And I'm grateful you brought it up, Jessica.

We love an educated queen. We do. Did you just call yourself an educated queen, Toni? I stand by it. I definitely do too. Also guys, I know that we're running out of time, but I did really want to mention something else that's gone off in our group this week. and off in my emails, Toni. I have been contacted a number of times over what you're about to say. So Spaceship, which for anybody that doesn't know is a micro-investing platform in Australia, have just introduced monthly fees. So it went from being free and now on portfolios with

balances over $100, it's $2.50 a month or $30 a year. Yeah. From the start of November. So from the 1st of November, 2021, the introducing fees, which is totally fine. And do you know what I think I said, and I don't, I'm not willing to go through the content. I think I said on a podcast once that I guarantee that spaceships free investing won't last because when you're a brand new investing platform, the point is getting you guys on the platform and you've got to have a really good carrot on a really good stick for people to jump on board, especially when it comes to investing that now they're introducing a fee that I think is, you know, it's a nominal fee. It's going to make, it's going to mean that they can turn a profit and that they can actually keep

investing in the business. And I think it's really good, but it is something that you need to consider because if you only have a hundred dollars on the platform, $2.50, that's so much money to be paying in investment fees. So you really need to think hard about whether that is worth it or not. And I've said before as well, I adore micro-investing platforms because they go beyond just investing, right? So Tony, even if you only had a couple of hundred dollars on Spaceship, I still think that fee is potentially worth it because you are investing, you're able to actually follow the markets and you're getting financial education through that platform as well. You're getting exposure to the market without putting up your life savings, right? So I think we need

to quantify what this fee means in addition, not go, oh my gosh, I can't believe they're introducing it, but more like, oh, great. Like how cool is it that these businesses at a point where it can start turning a profit from their customers and they can actually start, you know, providing that value. And I am an investor on Spaceship as I am on Raise and as I am on Sharesies and also Superhero. Like I have them all because I want to make sure that I'm using all the platforms that everyone in our community is talking about. Cause how silly would that be if I wasn't, but it's one of those things where I'm like, oh, cool. Like they are charging a fee, but that's worth it so for me yeah it's interesting because a lot of people are blowing up about

you know being a bit frustrated that there's now fees on their free investing platform but like we got a pretty good run of free investing for a while from these guys like and $2.50 to invest at the end of the day that's pretty good it's also tax deductible my friends oh okay they put that in the fine print don't they I don't even know if they mentioned it but at the end of the day. It's a cost of investing and therefore it's a taxable deduction. So definitely mention that one to your accountant guys come June 30 next year. And the thing is like the really cool thing about living right now is that there are so many great platforms out there. And if that $2.50 is something that's really taxing, if you have a lower amount or if it's just money that you don't

want to spend, have a look at other platforms, do your research, different platforms have different fees and different offerings. And that's why we talk about so many different ones here on the show is because you know there's no one size fits all so if that fee is something that's stressing you don't be afraid to have a look and maybe go elsewhere if that's what suits your needs absolutely and just actually to bounce off that we've been asked in the community before like oh why are you talking about spaceship and sharesies and six park and that's the reason because they are all good investment platforms that we have vetted i like we vetted it as a team i vetted as a financial advisor and i go okay cool someone picks that it's not a bad option it is a really

good option and obviously they're all friends of the show but they all bring different things to the table they all have access to different things and that's what we say when we say do your research it's not just go with someone who's sponsoring the show it's go and look at what they've got on offer and i mean the benefit of knowing it's come from the she's on the money community is that we've vetted it we would personally be comfortable investing in that if that was something that we wanted to do but i think it's really important to actually just step back and go yeah okay like what do i want out of this and maybe before even looking at platforms go what am i trying to achieve is this long term do i want some advice associated with it in which

case you're probably going to go down a six park route whereas if you don't want advice and you just want to do diy stuff like maybe a sharesies or a superhero is something that you're going to look at because you can buy individual shares or if you just want like an etf or like a fund that you put money into maybe a razor a spaceship is more akin to what you're after so there is different things for different people but again there's just not one size fits all unfortunately be cool if there was people are so different though like it's never going to happen it's not possible hey so i just mitigate that risk by having them all jess so yeah i win anyway with that as always i think that is all we have time for guys so just before we head off

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afsl 339151 see you next week guys