She's On The Money - FRIDAY DRINKS: Kimmie Reaches For The SKKY

Episode Date: September 22, 2022

It's Friday once again! That means it's time to recap this weeks episodes, celebrate your money wins and commiserate your losses. Also, V answers a Money Dilemma about creating an emergency fund, and the gals discuss the latest finance news with Kim Kardashian launching a private equity firm. Plus, a special announcement from Georgia King!Acknowledgement of Country By Natarsha 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. Victoria Devine and She's On The Money are Authorised Representatives of Infocus Securities Australia Proprietary Limited ABN 47 097 797 049 AFSL - AFSL 236523. See omnystudio.com/listener for privacy information.

Hello, my name is Natasha Nabanunga-Bamblett. I'm a proud Yorta Yorta, Kernai, Wolperi and Awadjeri woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on Awadjeri country, acknowledging the elders, the ancestors and the next generation coming through. As this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impact for tomorrow. Let's get into it. She's on the money. She's on the money.

Hello and welcome to She's On The Money, the podcast for millennials who want financial freedom. My loves, today is Friday, which means it is time to sit back with the girls with a bevy in hand to unpack our favorite moments of the week. And as always, to celebrate you, our incredible She's On The Money community. As always, we're going to be sharing our favorite money wins. We're going to be discussing what's making news in the finance world. And this week, we are going to be answering a juicy money question from our friend Julie, all about how to best build up an emergency fund. But before we get there, as always, it is time to recap the week that was. Miss Jessica Ricci, what happened on Money Diaries this week?

So Monday's diarist was a little spicy. She has an OnlyFans and she has been killing games. She's a single mom. She bought a house, an investment property, a Land Rover, and she did it all within 12 months, which is pretty wild. I feel like we've done a couple of OnlyFans diaries before and people always find them super interesting. Yeah, because we like being pervy because most of us are going to be like, oh, we would never do that. We don't judge people who do, but we'd never do that. But I want to know how you make money. Even I get a little bit pervy. I'm like, how much money do you make? That's sick. I think so. And I think it's worth noting, we sometimes get people sending us slightly terse messages when we do these kinds of things. And it's not about glamorizing a certain

lifestyle, but in our office, we really view sex work as just another form of work. And just like we would have any other diarist not to talk about their job. That's what this one did. Exactly. And if someone writes into our show and says, hey, I've got this great money diary, great, come on the show. If you want more content from more diverse areas, put it on the show, come and write into us. Like we only share what people are comfortable with. And if people are comfortable sharing their stories about OnlyFans, I'm going to give you that platform, my love. Exactly right. And it was really cool to see as a mum how she kind of navigated that world. She was very candid, which we really appreciated. And it was a cool listen.

and I really enjoyed it. I always enjoy them. Maybe because I'm pervy, but also because I just, I love money diaries in general. Same. I want to know what you're doing with money. Tell me. All right. Moving on. On Wednesday, we had a little bit of a deep dive. Miss Georgia King, what happened on Wednesday? Hello, ladies. This Wednesday, we spoke all about employee rights, which was super interesting. We spoke about industry awards and agreements, superannuation, OH&S, Unfair Dismissal, the Fair Work Tribunal, and plenty, plenty more. It was really, really empowering, was my main takeaway from that ep, because we just don't know what we're entitled to a lot of the time. You don't know what you don't know. You don't know what you don't

know. That's why content like this exists, so that then you know what you know, and then your employer's mad. Exactly right. We love that. Get what you deserve, queens. Yes. All right, moving on to my second favourite part of the week, because obviously Money Diaries is number one always. Miss Georgia King, it is time for you to share some of your budget direct money wins and confessions of the week. What have you brought out this week for us? We've got some goodies, girlies. So the first win of the week comes from Leah. I resonate with this one so much. Money win, my football team lost, so I saved $400 on grand final tickets. Trying to spin it the best way I can. Money win? Feel that pain. She probably goes for Melbourne, bloody losers. Sorry, I go for

Melbourne too, just in case you do, Leah. I'm not being mean. I'm just being mean to myself. That It was real nasty. Be kind to yourself. Yeah. Was that the one-pointer? Was that that game? No. That was gnarly.

Who's in the grand final? Should I know that? You should. Sydney and Geelong. Go Cats, I think. Westside represent. Get behind them, gals. You didn't even know that till right then.

Yeah, but as a Westie, you've got to support your boys. I go for St Kilda, so I don't follow the football because I just know I'll be disappointed. That's fair enough. And the next win of the day comes from Tiana. Money win. I followed up with two of the places I booked my 2020 Euro trip with before COVID. They only offered credits as great laws changed following the pandemic.

I had a total of $3,000 refunded back to me in less than a week. Oh my God, money win. How good is that? And you didn't even know you were going to get that back. She probably assumed it was gone. That's a real bonus. Enjoy that, Tiana. The next win comes from Tili.

Money win. I rang and asked my bank to reduce my interest rate. Smart move. Very smart move. They said a drop from 4.18% to 3.6% would be a go. Pretty good. But then she suggested that Athena's rates were 3.29%. They said they're going to match that rate. Oh, that's sick. 15 minute phone call saved me a whole lot of moolah. Yeah. And just a little bit of Googling and you've got a comparison to throw their way often in banking world they can't suggest the rate that it goes down to you actually have to put it on the table so they'll have like their little schedule and if georgia king called up and said i want a better deal they're like oh we could drop it to x but if you bring up a

comparison then they actually have to consider it or so i have heard because they're not going to bring up their competitors to a client yeah yeah not a smart idea but if you bring up their competitors and you're like um i might leave look how good these other companies what are they going to do. Juicy. That's a hot tip from VD there, ladies. Can't give away too many. We've got a whole other show to go. The next one comes from Monique. I needed to have two wisdom teeth removed at the public community dentist and it didn't end up costing me a cent. What? I've had a very easy recovery with no swelling or bruising. Wish I could say the same for myself. Free? Yeah. Dentists are so expensive. Dentists are so expensive. We've had this conversation very

recently on the podcast. All right. Well, we're just excited about dental health, Jessica. Oh, yeah. I feel like I remember asking you guys if you go to the dentist. Yeah. And you were like, yes. Do you go to the dentist?

Oh, you know. Sometimes. Every decade or so. Let's move on. That's how Jess used to do it. Nice. Moving on. The next one comes from Beck.

Money win. I got big W to price match with Officeworks. I saved $11 up front plus fuel costs. I don't really get the fuel part of that, but that's okay. What's the fuel cost? I don't know. Maybe driving. Fuel docket, maybe.

It's like, you know, on the bottom of your seat, you've got four cents off, potentially. Maybe that's it. Jess is way more switched on than we'll ever be. She is. She's on the money. Guys, how do you actually price match, though? You just go up to a customer. No, you don't go up to a customer.

That's absolutely right. Cashier, you're right. You as the customer go up to the cashier. We do it all the time. I'm such a pest. Yeah. Yeah, do you just say, do you price match? Or, like, generally, I will have Googled ahead of time and I know that you price match.

And if they go, oh, no, we don't, I go, oh, really? Because it says on your website you do. I'm still so awkward about it. We did this the other day because I needed, we got a new staff member and I had to go buy another laptop at JB Hi-Fi, right? So I Googled the laptop and on my phone, I had screenshot the price of another competitor. I knew what I was going to do. Anyway, walk in, ask for the laptop. They're like, yep, no worries. And then I said to the guy, oh, I don't mean to be awkward, but like, I know you price match. So I just wanted to show you this. And he's like, oh, he's like, I actually know who you are. So I fully expected this.

I've only expected this. He's like, you're living up to your name. And I was like, oh, this is so embarrassing. But anyway, yeah, I do as I say. Don't worry. Exactly right. We love to see it. The last one for the day, ladies.

It's a win-loss-win and it comes from RIS. It's a win-loss-win. Win-loss-win. Yeah, exactly right. It's like feedback. The first win is I got a refund check for a surgery I had last year in the mail. Great. Win?

Win, I guess. The loss, I got a speeding fine in the mail on the same day. It was her first in about 10 years while running errands for her friend who had COVID. So she's a good woman. And then finally, the last win was that the fine wasn't as much as the refund. So she's still ahead and she wasn't expecting the money. So that's it for the week, ladies. That's all we've got, George King, as always.

It has been an absolute delight celebrating some of your Budget Direct money wins. Budget Direct, winner of CanStar's Insurer of the Year Award 2022. Budget Direct, insurance solved. How about we go to a really quick break and straight after this, I want to talk about emergency funds. We have some news from Georgia King and I'm going to bring up Kim Kardashian. Don't go anywhere.

All right. Two pieces of news for you guys this week. One from me and one from the lovely Georgia King. You're making a sad face at me across the table. It's hurting my heart. Because we're all sad. I know. George, share with the family.

What have you got to say? I'm going to cry. I am moving on from She's On The Money. Oh, my God, I'm actually going to cry. I think that's the first time. I've said it out loud. Yeah. Oh, my God, I am.

Stop, you're going to make me cry. We can't. I've known for ages, obviously, and it's really sad. It is really sad. But very exciting as well. I feel like I've also kind of made it sound like the girlies have fired me a little bit here with the tunes. They're pushing me off.

The opposite is true. This was a choice that Jay made. I have been desperadoly in the background trying to get her to stay. No bueno. Turns out she's a hot woman in hot demand. But no, so it's just, it's come time for me. I'm not going anywhere soon. I'm going to be hanging around and sharing the job with Jess for a little while longer. So you're stuck with me for a while to come. The decision was basically made because I want to start concentrating on my journalism a little bit more seriously. And I've just been burning the candle at both ends. I don't know if I've sounded tired on the podcast, but you always

sound like a delight. Thanks, guys. But yeah, it's just it's time. Time felt right. How fun that when you started, like when I was listening as a listener to the podcast, you were introducing yourself as I'm Georgia King. I'm a journalism student. And now you're like a master of journalism. I'm Georgia King, a journalist. Yeah, I guess I guess that's true. It's so cool. It is so cool and I mean George you're not going far like hop skip and a jump away you're still one of my little sister's best friends so good luck getting rid of me um and hopefully we can like drag her on the show for like little cameos like maybe if our engagement goes down Jess we'll be like bring back George but you're leaving the show but you're not leaving the community so like

not mad about it she'll still be floating around you might see her in the audience at a few she's on the money events because lord knows she'll always get a ticket but I'm really sad I hate this oh I know I know but yeah as you've said you're not getting rid of me I'll still be loitering in the background and stuff um but also I just wanted to say a big thank you to both Victoria and Jess I can't take this but also to the amazing community oh my god the voice this is way harder than I expected it to be um but yeah also to the community who have been so welcoming of me um since the start and I think we should talk about something else before I cry no this is really wholesome we're really grateful for you being here been here

literally you've recorded podcasts with me on the floor after a bottle of wine we won't tell you which episode that was um with you remember the time we recorded with beanies over our microphones because we couldn't find the pop those were the days like we just we've come so far together, Georgia King. But I think it's come as, you know, probably a surprise to the community. But at the same time, I don't think the community is going to be surprised at all because you are destined for very great things. And you started as a journalism student. Now you're a master of journalism. You've got to get the work done, George. We totally get it. So very grateful for you. Thank you for being part of our journey. Sorry for getting so emotional.

No, we also for those of you wondering, we don't actually have a plan for what happens to quote George's role on the show yet. We've decided, given how busy the rest of this year is, because obviously we've got a million things on, we're just going to see the year out. G will be here for most of it. And then if G is not around, Jess and I are going to roll solo together, and then we will make a decision in the new year as to what happens. Maybe we can get some new voices on the pod. Maybe we don't. Who knows? Time will tell. Time will tell. I'll be listening. But it'll be hard to replace you. Big shoes to fill. Massive. Tiny size A's. How do you feel? Oh, same, same, same.

Shall we talk about Kim Kardashian? I feel like- What a loop, what a loop. This has been an emotional rollercoaster. This story, I feel like, combines two of all of our favourite things, finance and trashy reality TV. We all love it in this office. I don't know if you saw the news, gals, but Kim Kardashian and a former partner of hers

have recently launched a private equity firm focusing on investing in consumer and media businesses, which- I am obsessed. Like, she's living my dream. one day I want to have a private equity firm, like how cool would it be to be able to invest in other people's businesses? Well, yeah, the devil works hard. Kris Jenner really does work harder. And to be honest, I don't know a whole lot about what a private equity firm is. So VD, can you start by explaining to us what that is? And then we can maybe dissect the news a little

bit more. Can I like jump back to what it's called first though? Because it did make me laugh. Like you would think that any Kardashian business would start with a K, right? It doesn't. But it's called Sky Partners, but it's got two Ks in it. So it's S-K-K-Y Partners. She's good. As Jess said, the devil works hard. Kris Jenner works harder. But essentially, a private equity firm is just private money. And it's private money that is usually managed by an investment management company. So Kim Kardashian isn't doing this all on her own. She actually has someone who has experience in this. And it's a company that then provides financial backing and makes investments in private companies or startups or, you know, businesses that exist that need a little

bit more funding to go to the next level. And there's lots of ways of going about it, but essentially it's a company that invests in other businesses. And the purpose of doing that is to obviously see a return on their money. So Jess might start a business and be like, oh, I need $10 million to go to the next level. And Kim Kardashian's now going to sit down and be like, oh, that's a good idea, Jess. The interesting thing here though, from my perspective is obviously like the Kardashian family or the Kardashian-Jenner family carries so much weight and their Instagram and social feeds obviously have Instagram posts that, you know, cost upwards of a million dollars to talk about. Like imagine the backing and the like clout that you're going to get if the world

or the media finds out that Kim Kardashian's decided to invest in your business. Like that media and PR coverage would be insane. So I'm really interested to see how this goes because private equity, from my perspective, is something that, oh, like, I get so envious of people who get to work in this space because they, you know, get to work with other founders or, you know, founders that align to their goals and their values and partner with them to take them, you know, as I said, to that next level or run that business or, you know, I've got a passion, which I haven't spoken about very publicly before, for helping really small female independently owned businesses in mentoring and coaching and even sometimes financials

to get to the next level. But like this is on an entirely different level. Often the companies that private equity funds invest in are usually pretty large and they want to take a stake of that business. So they're not just going, oh, Jessica Ricci, have like some money and, you know, give me a return. They might go, have some money. I want to see a return, but I also want a 25% stake in your business. So think Shark Tank. Right. Think Shark Tank. And that's kind of like what's going on, but it's an actual business. So is the premise of this VD that it's a money making machine for the Kardashians because they need more money? Let's be real. It's not like an altruistic thing. They're not just helping out young female founders, for example. It's more

a money spinner? To be honest, it could be both. It's a very time and energy intensive way to make money because obviously, you know, let's use Jess's business that doesn't exist right now. as an example, right? Like, I don't guarantee that it's going to be a return. So the time, energy and effort it might take to do the research and the backing and all of that, it might not be worth it because, you know, for every five companies you invest in, maybe only one of them might be successful. So it's really risky in that aspect. So I would love to think that it's a little bit more altruistic than just being a moneymaking machine, especially because on a private equity investing journey, like, you know, there's obviously a lot of risk,

but there's also a lot of return, but you know, you get to back certain businesses that align to your values and like your goals and what, you know, what really resonates with you. So I'm hoping that the reason is because she's just like really passionate about female founded businesses and like really wants to push women forward. And one of the articles that I read was really just talking about how women comprise of only 12.7% of all senior employees at private equity firms. And like, I guess this is a really good step in the right direction. I mean, if Kim Kardashian can do it. We can do it. We can do it. I think Kim Kardashian's a lot more intelligent than she gets a rep for in the media. I don't think they could have been as successful as they are. She's

studying law or she has a degree now. I'm not 100% sure. But it's worth noting that her partner, who I think I said was her former partner, my mistake. He was a former partner at Carlisle Group Inc, which is a private equity firm. They had $376 billion in assets under management in their firm. His name is Jay Simmons. I would argue that Kim's probably not going to be sitting down with the female founders or whoever and talking them through it. I think it's pretty safe to bet that it's going to be a pretty significant firm from the get-go. He's got experience handling assets of that size. Kim obviously has a lot of experience in running a media business and they are intending on focusing on consumer products, hospitality, luxury, digital commerce, and media.

So I think it's a nice melding of both of their experiences. How hands-on Kim's going to be remains to be seen. It could just be that, you know what I mean? She's the founder. She's definitely got the cash to start something up. And it sounds like Jay has the experience to back it in. So excited to see how it goes. Ultimately, I love seeing a woman doing something that isn't typically done by women. So I'm all about it. Yeah. And I mean, to get into the little nitty gritty of it, because like we are a money podcast, so I want to know more about the money. Kim Kardashian has come out and said that they're actually seeking to raise for Sky Partners, which is the equity firm, more than a billion dollars to completely debut the fund, which is

wild. But let's do some numbers here. If they typically operate in a model, which is called a two and 20 model, which assumes that the company should be making about 20% profit, which, you know, in the investment world, like if you're going to go all the way into private equity, like you want to be making a lot more money than what it would be if you just put your money into shares, right? Like if you just want to put your money in the share market, we know that the Australian share market on average has returned about 11% over the last 12 to 14 years. Obviously different percentages in other areas, but you're going to be chasing higher returns because it's higher risk, right? But if Sky is making a 20% profit on the $1 billion, they're making $20

million a year just operating this fund. That's worth it to me. That's some big dollars. So I think it's really interesting as well to see what they would do with that profit. Like are they reinvesting that into the fund or are they taking that as cash for themselves? Like I just want to see what the plan with the business model is. Because often when you start a private equity firm, you don't have names like Kim Kardashian floating around. So raising a billion dollars is really hard. And you usually reinvest every single dollar that that fund makes to grow the fund over time. And there might be an agreeance between the directors of the fund to go, all right, well, Jess, for the next 10 years, we're going to reinvest every single dollar. And then from

then on in, we might then look at taking profit. But I just want to know the business model, guys. I'm so pervy. I'll report back if there's any more news. As you know, we love a bit of reality TV. We love it. Maybe it'll be on the podcast. I'm very interested to know. But the interesting thing there, as I said before, they're looking to raise a billion dollars. That's not Kim's money. Like that's not Kim putting a billion dollars in. That's her looking for investors that believe in her fund Sky Partners and want to put money into it and therefore want to see a return. So interesting world. Very juicy. Good luck with it, Kim. Let's move on before I go on and on and on because I could though. Money dilemma time. All right, I'm ready. I'm ready. What have we got?

Hi there. Have you got a money dilemma you just can't solve? The She's On The Money team is here to help. Every week, we tackle your dilemmas, both big and small, to answer your most burning money, career and life questions. To get involved, simply head to our website and leave us a quick voice recording and you may just find yourself on the show. Now, let's take a listen to today's Money Dilemma. Hi, Victoria. I'm wanting to build an emergency fund. I was wondering, would it be better to have it in cash or have it as an ETF or an index fund? Love the show. Thank you. Oh, I love you too. That's so nice. Thank you. I love people when they tell me that they love me. Me too. It's always nice to hear. Really needy. Please keep telling me that my ego

needs help. This is a really interesting one. And I feel like we've answered it before on the podcast, but obviously not everyone listens to every single podcast. Who would do that? Jessica Ricci. Not me. Like a crazy person. But I think it's an interesting question because from a pragmatic point of view, like taking off my finance hat and looking at it, you go, oh my gosh, I hate the idea that my money would just be sitting there not making a return. but what we actually want to do is look at it properly like what is the job of your emergency fund like your emergency fund purely exists to be accessible in any emergency it needs to be easily accessible it needs to be always there it needs to be that strong dependent steed that you

know might not be doing a whole heap of work but when they work they work really hard it's kind of like the security guard like sometimes you see them wandering around not doing all that much You go, what are they up to? But if the proverbial hits the fan, they're there, they got you, you're safe, it's all good. That's exactly what your emergency fund is doing, right? Like it's one of those things I totally get that you want it to be working hard, but I think we need to acknowledge that your emergency fund is working hard by being in cash. It is doing exactly what it needs to do and it's actually really risky investing it. Because let's say we use Julie's example and she said, should it be in an ETF? Okay, well, no problems. Let's

say you have a $10,000 emergency fund. What if the share market goes down? That $10,000 emergency fund is now no longer worth $10,000. We have seen the market become a bear market, which means a drop of 20% on average across the market, which means your $10,000 is now worth $8,000. If the proverbial hit the fan during that period of time, which let's be honest and look at the statistics of it, if your job is going to be at risk or anything is going to happen, unfortunately, it's probably when the share market's not doing that well, you are going to be in a position where you need to access that money. You are now crystallizing a loss. So you've instantly lost 20%, which means you've lost two grand, my friends, if you decide to take that money out of the account, but you can't get it

today. You have to go onto your share trading platform or call your financial advisor or transact in the way that you purchased it. Go online, submit a claim to sell down your portfolio. So that's day one. Day two, the company that you're with or your share portfolio manager sells down your shares. And then on day three, it will be transferred back to your account. Very likely that it's not within the same banking system. So it's going to take another day. So that's three or four days before that money hits your account. If things go to plan, if you're not loitering around and, you know, wondering which shares to sell or making decisions like it could stretch out to more than a week. And if there's any bumps along the road,

like your financial advisor needs you to sign a form or ask a question or do something like that is time between you and having access to an emergency fund and the emergency's already happened. Like that to me is not a good use of it. And I think what we need to do is really see money working in the way that it needs to work. It doesn't always have to be returning the most, but what it has to be doing is doing a job. And I say this all the time. And when I've talked about like my budget and cashflow masterclass, I always talk about having a cash hub and then delegating money from that cash hub so that every single dollar you have works as hard for you as you do for it, that does not mean that it is returning the most amount of money. That might

mean it is sitting in its emergency fund doing its job of protecting you and making you feel safe. So from my perspective, we wouldn't ever invest our emergency fund and that's where I will always be very steadfast. I don't believe in it. My emergency fund is definitely sitting in cash. Interestingly though, my emergency fund is in a offset account for my mortgage. That's what I was going to say. Is an offset a good alternative if you have a mortgage, which is a big if, but is that an alternative? If you have a mortgage, it's not a bad idea. It's offsetting my mortgage, which is good. But the reason I'm happy with that is the bank doesn't have any say over what that money does or how it works. I can access that because it's basically

a savings account. It's just as easy. It just means that that savings account is linked to your mortgage and offsets the interest money win. The same is not true for a redraw account on a mortgage. So I've had the question before like, oh V, well, I only have redraw. Should I put my emergency fund in that? And the answer from my perspective would be no, because when you put money onto your mortgage, you're paying off your mortgage and then you essentially can redraw or loan. Redraw just sounds sexier and it doesn't sound like a loan, but you can loan the money back from your mortgage. However, when financial times become a little bit tumultuous, banks sometimes go, oh, Jess, you might've paid an extra a hundred grand off your mortgage. We're actually going

to cap that. You can't take that money back out and redraw it. We're actually going to cap it at 10 grand. And that has happened a heap of times where people's redraws have been decreased because banks are like, oh, we need to keep as much cash as possible in the bank. We don't want people taking it out, whereas they don't have that same conviction or authority over an offset account. So an offset account is literally a savings account that is linked to your mortgage in a positive way, whereas a redraw operates in a very different way. People often see them as like lack for lack or same same. And I mean, you do you, but what I want you to do is be educated. So from my perspective, no, I wouldn't invest an emergency account in an ETF because I want you to have

immediate access to that cash in the event of an emergency. Perfect. Sorry, I didn't let anybody else speak. No, that was good. I have nothing else to say. Because you guys have heard that rant from me a million times. I'm sorry. I'm sorry. All right, let's go. Let's go grab a drink because we've got to celebrate, JK. Absolutely. All righty, guys, before we do the boring but important stuff, please remember that 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 a financial decision and we promise victoria divine and she's on the money are authorized representatives of in focus

securities australia proprietary limited abn 47097 797 049 afsl 236 523 see you next week guys Thanks for watching!