She's On The Money - FRIDAY DRINKS: Life's About To Get Even More Expensive!

Episode Date: June 9, 2022

In good news Victoria is back for this Friday Drinks episode! But in bad news the RBA has lifted the official cash rate for the second time in just over a month, which means life is about to get even more expensive! So the girls discuss the ins and outs of this decision.And as ever they wrap the week, celebrate your Money Wins AND answer a Money Dilemma all about paying tax overseas. You can submit your Money Dilemma here.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 free them. My friends, it is Friday, but also let's celebrate the fact that I'm back on my own show again, finally. But that means that it is time that we all sit back with a bev in hand to unpack our favorite moments of the week. And of course, to celebrate you guys, the incredibly supportive She's On The Money community. As always, we are going to be sharing Georgia King's favorite money wins. We're going to be discussing what's making news in the finance and She's On the money world. And we are going to be helping to answer a juicy, juicy money question, which is all about how to pay tax if you're going to go and work overseas. But first, it is time to recap

the week that was. Miss Jessica, are you cheap? I feel like I'm imposing on your show. Yeah, just behave yourself today. Yeah, just be careful. It's very strange. Like I'm not even sitting in my own recording chair. So I genuinely feel like this isn't my show. But that is okay. But Jess, What happened on Monday? What was our money diarist up to? So Monday, George and I spoke to a beautiful lady who came from kind of a lower income household, but her parents worked really hard, sent her to private school, and she dealt with a lot of bullying because of her background.

There was a lack of diversity. Why are people so awful? Yeah, it was really hard to hear. And she was saying, you know, because she was from a lower income family, she was working on school holidays, you know, 40 hours a week to be able to pay for things during the school term. while her friends were going on holiday to Europe. So that really shaped her relationship with money and her money story.

So it was super interesting to talk to her about that. And then she also has four kids, two of hers and two which she has joint kinship with. So they were fostered who then kind of became permanent parts of the family. This woman sounds so special. She really was. This is such a good money diary. Yeah. And talking all about how she juggles that and the responsibilities of working and studying

and being a mom and doing all of these crazy things. And it was a really good one. really interesting to hear her take on co-parenting and also just how her experiences in childhood shaped how she was handling things with her whole family now going forward. Which is kind of cool as well to just learn from her experience because that's one that I clearly like I haven't had I've never fostered kids I don't even have kids I don't know what that looks like but it just leans into how many incredible people are in our She's On The Money community and what they do and how they do it and it just it baffles me that people can be so unkind growing up whereas if you look at it now

you're like far out she's the type of person I want to be mates with yeah like I don't want to be mates with someone just because they went to Europe like I want friends who are hustlers who have like you know done cool things and are really tenacious like they're the types of people we want to be friends with why can't we just be kinder 100% she was also only 28 years old which is the same as us yeah yeah it was like a big what a queen yeah wake up call what a queen yeah you're like, yes. Get it together, G. Nah, don't get it together. We like Rogue G. Speaking of Rogue G, what did Rogue G think of this Wednesday's episode? It was a corker, my ladies. It was all about reporting season from companies. So that's the season. When you say corker,

you mean like we needed to uncorker a bottle of wine to deal with that episode? To make it kind of interesting. But no, it was. It was interesting. We spoke about what reporting season is, where we should be looking in a company's financials and what that can tell us about a company, how to read a dividend statement, what a dividend is, because I can never remember. Dividend to income. We want dividends. We love dividends. We love dividends. Very, very sexy. We also learned that it turns out you have to pay tax on your investment income. You do have to pay tax on any income you derive that is, you know, income.

And this episode is actually one of many in the tax world. So strap yourselves in, ladies. It gets drier. Oh, wait, no, not drier. It gets better. No, we make it fun. In true She's on the Money fashion, we make boring topics a good time. We get tax questions all the time and people get really stressed about it and they think that they have to go to someone else. But besties, you can do it. We're going to teach you how. Strap in. We've got tax and it's in peach. Are you ready? Sit down, my friend. Sit down. Speaking of peach, the She's on the Money community facebook group image is peach a very good segue these are the segues with me it was rough but you're out of practice we'll let it slide excuse me i thought that was one of my

better segues i would like you to just say sorry jessica in saying that look how on brand she is today jessie's wearing a lskd peach puffer jacket she's i think she's like a little peach flushed in the cheeks now we've said that and she's sitting in front of her she's on the money screen So you look very on brand. Like a human marshmallow. I love it. I love it. All right, G, let's get into it and stop talking about how cute Jay Rick is,

which she absolutely is, and we could go on and on about that. But it is time to start celebrating some of our Budget Direct money wins. What have you got for us this week? Let's get into it. Okay, the first win of the week comes from Morgan. We've got a bub on the way at you early September. That's exciting. Who's with me?

We bought a cot. Wait, what do you mean, New Year's Eve? It's when they conceived. Oh. I've made it creepy. That is some quick math in your brain. That was very quick. I would simply never.

She's had a lot of times. She had to find these money wins earlier. I'm thinking like, I genuinely was like, what do you mean? Georgia King, the end of year is actually the end of December, not the end of September. I don't know where we're going with this. You're way too quick. They had a good New Year's Eve is what you're trying to say.

So Morgan bought a. Morgan had a good New Year's Eve. She did. She did indeed. We bought a cot on Marketplace for $50. It was barely used and it would have been $250 brand new. we also got a car seat for $289 down from $599 oh my gosh that's so good so just start with the wins money stuff is expensive we always forget my best friend Steph is pregnant and it's like

the best thing to ever happen to me ever and yeah we've been having some money wins like she got a free pram the other day I should get her on the show she's arguably the biggest she's on the money stand you've ever met love it where'd you get a free pram from oh her sister-in-law found it as someone was unloading it to put into a charity bin. So she found it in a parking lot. Well, it gets dodgy the more I explain it. Her sister-in-law found it as somebody was unloading it to put it into a charity bin and she was like, oh, hey, like, can I buy that off you?

And she got it for Steph. So it wasn't dodgy. It was a very good tale and it's a very cute looking pram. I'm just mainly excited to talk about my future niece or nephew. I hear you, girl. Let's move on to a money loss to bring the mood back down. This one's from Ali. This is going so well.

Money loss, we're moving house. That is all. That is, okay, I get it. As someone who's just moved house, that is expensive. It is. The next win is from Courtney. Money wins. Number one, I negotiated 0.6% off my mortgage.

Number two, I got one kilo of limes for free from Coles. Number three. Thanks, girlies. How? She didn't explain. But I wish I knew because limes are expensive. They'll set you back a pretty penny. It's like $5 for two or something ridiculous at the moment.

So she got a kilo of them. Number three, I spent $12 getting my brows and lashes done. Twelve. Rather than my usual $48. Good money win. Number four, she did DIY S&S nails, saving her $50. Incredible. That's pretty good.

Jess and I, we're pretty good at doing our own nails, I'd say. Look at that. You can come over for a manicure any day, J. King. Thank you. All right, the next win comes from Katie. I needed to fill up petrol and was dreading it because we all know how expensive petrol is right now. Petrol is a joke. I paid over $2 this week and wanted to cry.

That's disgusting. Straight up just bawling at the bowser. Bawling at the bowser is definitely a vibe. You need a father-in-law like Katie's. So instead of filling up, I got a call from my father-in-law saying he had some fuel in his boat that he needed to get rid of as it's heading into winter and he won't be using the boat again until summer. So I got a full tank of petrol from my father-in-law for free.

I'm not going to lie. I didn't know you could put boat petrol in your car. I didn't know that. Can you? I just don't have a rich family, so that's just not going to happen. Wouldn't know. What's it feel like? Guys, we've had a clarification from our producer because we were concerned about boat petrol.

We were worried for Katie and Katie's safety. Turns out it's just diesel. It's all above board. Can't put that in my carrier, can I? Even if I did have a rich uncle. Absolutely not. Hold on, hold on. So do people just go through the bowser when they're driving and they're like, oh, hey,

I'm at the bowser. There's Jess, she's balling and they fill their boats up. I've seen people pull through with like boats on the back of their car on the trailer. Actually, I don't think I've ever seen anyone put the pump into the boat, but I mean, I guess that's how it works. At least it's like, you guys are idiots. Must be nice. Petrol chats.

All right, let's move on to Dana. Money win, but also a money loss. I've been eyeing off a Dyson hairdryer for quite a while and finally it was on sale at DJ's and I got a $50 David Jones voucher for buying it through them on sale. What are you going to do with your 50 bucks? Happy with that. I have questions. It's a voucher, so she can't pop it into an investment.

That's okay, but I want to know what she's doing. I wasn't going to bully someone into investing. All right, Dana, send Victoria a message. Let's move on to Hayley. I cleaned out my wardrobe and made $130 in one night from selling clothes I don't wear. That is time well spent. My final win of the day, ladies, comes from Simone.

I was looking at an armchair for $450 and found one similar at the local op shop for $50. Hey, that's a funny win. Not bad at all. It's also very relatable because I was doing radio stuff the other day and we had a caller, Richard, if you're listening, hey, what's up? He said he got an $8,000 recliner for like $800 on Facebook Marketplace. Wow.

But my real question is who's spending $8,000 on a recliner? Can you imagine just being like, hey, you want to get me a Lazy Boy? $8,000. That's very expensive. So expensive. I don't rate it. Anyway, we should move on because I feel like this could go real downhill or it could recline. But it's been so great celebrating some of your Budget Direct money

wins. For award-winning insurance, search Budget Direct. Budget Direct, insurance solved. And with that, do you know what I'm going to do? We're going to go to a break. And then straight after the break, we're going to talk about whatever Jess brings to the table when it comes to news. And we're also going to talk about tax if you are working overseas. So don't go anywhere. all righty so we're gonna pretend that we're a news podcast for a hot second because breaking news the RBA has lifted the cash rate again and if you're wondering what that means head back a couple of episodes because we actually spoke about it on Friday drinks a few weeks back but essentially life's about to get more expensive for all of us as if it wasn't already expensive

enough. So it has lifted 0.5 of a percentage point. So it's now sitting at 0.85%, which is actually higher than what they were predicting. And when we spoke about this a few weeks ago, we did say that economists and people in the finance space in general were considering that there definitely would be more increases to be seen. But it feels like we only had this conversation a couple of weeks ago. I did not expect it to be so soon. We did. It's been pushed off because of the pandemic as well. I think Australia has really tried to shield us from any changes. And as much as it sounds incredibly dramatic, it definitely was a long time coming. Everyone in the finance industry is very much like, yeah, okay, like this makes sense. Obviously

there's implications, but to us, it's not this dire, oh my gosh, what is going to happen? And how does this work? Because we're kind of like, well, this was coming. In fact, we kind of expected it two and a half years ago, and it's only happening now. If you haven't been keeping up with it. It has gone from a record low of 0.1% and then it went to 0.35% in the lead up to the federal election. And we knew once the federal election was all done, they would increase it. And today, as in today when we're recording this, which spoiler guys, this week it was Tuesday. Jess was very excited because we had another content piece planned, but she whipped on in because she said, guess what's just been announced? It is 245 and it is the RBA increase. So we wanted

to talk about this get it on the pod asap so obviously this will be in your ears on friday so hi from tuesday guys jess jess jess people are going to be listening to this we'll be on a plane oh my gosh yes georgia king when people are listening to this because this podcast is going to drop 5 a.m on friday morning and we are playing five kill me now literally so we are pre-planning this which is why we're recording it on a tuesday and oh my gosh we're going to be on a plane guys So think about us. Send your well wishes and comfortable sleep remedies. So we will be in the air while you guys are listening to this podcast. That's kind of cool. Hi from the past. Taking guesses at how many times I've fallen asleep on VD at this point.

How many times have I put my feet on Jess? I think it's going to be fun. Anyway, we're going on a holiday together, but that's exciting. What's not so exciting is the RBA interest rise increase. And as you said before, Jess, we did a whole segment on this, and I think it's really important to talk through and understand because it can feel really overwhelming because this is the second increase in official interest rates since November 2010 and it does feel really overwhelming Jess like I'm glad you brought it up and really wanted to make this the priority because so many of us are wondering like what does it mean for our home loans what does it mean for our bank interest rates like how's this going to impact me more

deeply and we will be doing posts on social media to make sure that you guys are all across it But if you are concerned and you are worried about the impact of a rate rise on an average mortgage, let's say of $330,000, quarter of a percent is about $43, just to put that in a little bit more context for you. So yes, it is a lot, but at the moment I feel like it's an extra a lot as well because cost of living has increased as well. So I feel like we're just being hit from all angles at the moment. It's really expensive to be alive. I've really personally been feeling in my budget, the cost of groceries, the cost of gas and electricity. It's pretty hectic to think about. And unfortunately, it looks like it's going to stay that way because the RBA Governor

Philip Lau said, while inflation is lower than in most other advanced economies, it is higher than earlier expected. And the board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead. Because obviously that really low interest rate of 0.1% that we have been seeing for many, many years is not the standard. And I guess sooner or later, the shoe had to come off the other foot and they had to go, well, we've got to try and normalise the economy somehow because it wasn't, I guess, sustainable the way we were going on. But it is really hard for the everyday person like us because you then have to wear an additional cost when it already feels like things are costing you so much. So is the reason for the rise,

Is that to help with inflation? Is it ultimately going to be a good thing for more people or not really? Yeah, look, at the end of the day, this is actually going to benefit a few people. Yes, it's going to increase mortgages, but people who are aspiring home loans, you're going to have higher interest rates on your savings accounts at some point, hopefully relatively soon. Self-funded retirees who have big savings accounts are going to benefit. Investors are going to benefit. Banks also might feel the perks of this rate rise. There are a lot of people who are going to benefit. I think it's quite depressing when you think about it because it's like the people who were already financially secure are going to benefit a little bit more. Like you're

not in a bad position if you already have a home deposit in your savings account, but you will be a little bit more strapped for cash if you're going week to week and you're really trying to get the budget done because you've got two small kids and a mortgage and like your partner's not working and hasn't done since COVID. So I think there's a fair few people who will be a bit apprehensive and a bit worried about it. But if you are in a situation where you're thinking, oh my gosh, what am I going to do about this rate rise? Speak to a mortgage broker. Literally a shameless plug here of the mortgage broking matching tool on the She's On The Money website. Like it's going to put you in a better position. And at the end of the day, the best thing we can

do when we get news that might not benefit us is take action. And that's a very good action to take if you're worried about what a mortgage could look like for you or what that increase would look like. And I just think that we should be doing a bit more. Also, there's a free budget template on our website. Go and download that. Go fill it in and make sure that you are in the best possible position. So many of us just need to do a little bit more budgeting and it will be completely fine, but it can feel really overwhelming right now. And if you are seeing all of the media attention and you missed that episode, head back to the 13th of May. We discussed the impacts of the RBA rates much more in depth. It doesn't really make sense for us to rehash the same

thing a few weeks later right now, but we covered it across mortgages and all the different things and changes that you kind of can expect to see for yourself as a result of an increase. And that's still applicable now, even though the rate is a little bit higher. Epic. So that was 13th of May? Yeah. Perfection. All right. Well, George, we've got a money dilemma. We certainly do. Let's have a little listen. 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 girls or team, thank you for your podcast and all of the work you do. I think you're great. I had a question around self-employed income when you're traveling. So if you have a source of income that allows you to work from anywhere, how does that work in terms of tax? Like if you're only in the country for sort of three to six months, do you need to pay tax to those countries that you're in or do you just make your primary

place of residence like maybe where you came from where you pay your tax a little bit confused thank you v this is a question that i have myself so thank you dear listener for asking it also i have questions what do you mean she loves us oh i love her too yeah but i'm a bit confused did you hear that just oh one day in the future are you leaving it's an ongoing question that i want to live in London one day. I thought that was your subtle way of saying it. Well, who is this? So it's complex. And the best answer you can get is from your accountant. Thank you for coming to my TED Talk. Goodbye. But literally, if you are planning on working overseas, I would touch base with your accountant before going to make sure everything is hunky

dory and you're in the best possible position. But the important thing here is that you are declaring income you made from Australian sources. From my understanding and from what the ATO website says, you only need to declare it in one tax region. Like if you are working and living in London, but you're working for an Australian company and deriving money in Australia and paying tax on it in Australia, you don't need to double handle it. So I would absolutely approach it that way. But I would also make sure that you are double checking with an accountant because I'm sure it's different everywhere in the world. Like who knows what countries expect what like There are so many different laws and I am obviously not able to be across all of them.

But from my understanding, freelancers can work from anywhere in the world. The important thing is paying tax on the income you receive in the country that you technically received it in. So if you were working with Australian companies, Georgia, let's say she goes overseas and does all of her freelancing from London. I'm still paying you in Australian dollars and you will still do an Australian tax return because it's still going into your Australian bank account. Right.

And also, I guess, beyond that, like, you're an Australian business, so it flows on that way, right? That's what I was going to say. I was going to say, like, I think, and correct me if I'm wrong, but I would assume it would depend vastly on where your business is registered. So, like, Georgia, you're registered for an ABN because you work here, you do your tax here, et cetera. So, if an Australian business is invoicing outwardly, that money's still coming back to a business that is Australian. It doesn't really matter where you're working from, generally speaking. obviously speak to an accountant. Speaking to an accountant is the number one thing here because obviously laws around the world are very different. I do know a number of freelancers. I do have a

number of clients who are freelancers who work from anywhere in the world and they're paying tax on it in the country that they derive that income from. But it would get a little bit complex. Say, George, if you move overseas, you were still working for She's On The Money. I'm still paying you in Australian dollars. And then you pick up a client over there and then they start paying you in pounds and you're deriving income there, you would need to adhere to their tax laws and declare it there. You would also then need to declare to the Australian government that you have made money overseas. Doesn't mean that you'll be double taxed. They just need to know what's going on and how you're generating an income. So it's all crisp and clean and clear.

Please don't leave me. I'm not going anywhere anytime soon. But no, that does make sense. Just talk to your accountant. I would talk to your accountant because obviously that's the number one rule when it comes to answering tax questions. I'm not a tax accountant, but I think it's important to talk about and definitely something to foreplan for. Like if you're planning to move overseas, that's so exciting, but it's really important to work out if you are doing that, how does that impact you with currency changes as well? Think about it. Jess and I, we're on a plane. Hi from the plane. But Jess and I, we're on our way to London right now. Turns out the exchange rate is shit. Turns out the exchange rate has been doing us a dirty. So what does

that mean for your everyday living if you're living in another country? Is it actually the smartest decision for you to be deriving an income in another currency? Or would it be better to pick up clients in the UK and just earn pounds and not have any currency conversion issues? So it's really different for everybody's personal circumstances, but I would be really thinking about that. Again, Georgia King, please don't leave us. We love you. Not anytime soon, my friends. We also did do a big episode on moving overseas and how to manage your finances, investments, all of that kind of thing a few months ago. Are you noticing this theme?

Georgia's just like slowly swindling in this idea to everybody that one day she's going to leave the She's On The Money podcast and go live in London and do something subpar. Anything that Georgia does will be full par, I'm sure. Okay, it would be full par. I wasn't talking about her energy or effort. I was talking about how no job would be better than working for She's On The Money.

Got it, got it, got it, got it. And on that note. I think we're done. How about we wrap the boring but important stuff? Alrighty, guys, 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 Devine and She's On The Money are authorised representatives of In Focus Securities Australia, Proprietary Limited, ABN 47097797049, AFSL 236523. See you on Monday, guys. See you Monday, guys. Bye.