She's On The Money - FRIDAY DRINKS: Superannuation Hacks

Episode Date: August 12, 2021

Friday has come around - and if you're like us and you're in lockdown - TGIF! We've got a great little superannuation hack for you guys. Love ya, stay safe xxThe 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 to another one of our Friday Drinks episodes where we get to celebrate the money wins from the She's On The Money community, sulk a little bit about lockdown being extended, and talk about accountability August, which is super fun. So before we jump straight into that, I wanted to wrap the week so that we could all get up to speed on exactly what you might have missed.

Toni Lodge, what did we miss on Monday's Money Diary this week? our money diarist on monday covered a topic that we've never really uh broached before from a money diary and she sent her money diary in to kind of reach out to the asian community of um she's on the money and talk about the reality of sending money to your parents every week and kind of broke the stigma or the thoughts around it being um mandatory or that you have to do it she kind of explained that she loves doing it she loves supporting her parents and kind of giving them the support that they gave her when she was a kid so it was actually yeah it was really really cool and just such a different culture to what I experience or you might experience or whatever so

if you're kind of interested in in what that looks like I definitely give it a listen because it was it was super cool I loved it and I actually got a few dms from people in our community who were like oh my gosh I resonated with that so much because I do that with my family and a couple of them actually shared photos of their families that they'd been sending money to and oh my gosh it made my heart so warm and I just am a bit upset that we hadn't reached the topic sooner because it seems that there are a lot of people out in our community who are sending money home and to be honest how noble is that like it's just something that makes me really proud to know people like that you know it was really special and like i said just something that i've never

really thought about or kind of thought oh imagine if you didn't have the money that week then do you kind of go without dinner because you've got to send money to your parents and she explained well actually no if i don't have the money my mom goes okay that's fine you know so it's it's not as kind of strict or like it's not like paying your taxes you know well i was just gonna say i lived in malaysia right and there was a lot of chat about what they would call double tax because you get taxed by the government and then I know taxes doesn't feel like the right word but like the family takes a cut and the government takes a cut and they always talked about this double double tax and then how it's harder for younger people to build personal wealth because you don't

build there's no personal wealth especially in Asian countries it's family wealth you know what I mean like if one person wins we all win and if you think about even in movies in the culture you can kind of see that once it's sort of been pointed out that like the whole family's rich we had a lot of really great feedback on socials following on from monday's post as well one girl i was chatting to she was like as a person of color this makes me feel really seen and i'm so excited to see you guys lifting up voices of people and i hope you can do more of those in the future and i just wanted to say we obviously are like so grateful and thankful that we get plenty of people sending through their money diaries wanting to share their stories but we

can only share the stories of people that come through um so and like you know heritage or culture or religion none of those are prerequisites for being a money diarist and we love hearing diverse stories so if you do have a story that you would like to share please send it through to us um and outline just a really brief overview of your story we get so many that we aren't able to get back to every single person i'm really sorry but we do really try to share a diverse range and the more people and the more stories and the more backgrounds that we get the better we're able to do that yeah and that's so special like when we get to share stories it is honestly my favorite part of my week it is the best part but let's move on because I could go on about money diaries

literally forever Jessica back to you what happened in this week's deep dive this week on the deep dive we spoke about job interviews and how they can be a really scary really tough thing if you're someone like me who gets super anxious with those high pressure situations so we went through a really great almost like a checklist of like things you can do beforehand things you can do in the interview any like aftercare or follow-up um to make you feel like you're super prepped and super empowered to shine your best light in that interview because it is a super competitive market um and i think there's a very small number of people who love going in for interviews and even if it's not your favorite experience there are some things you can do

to put your best foot forward i love job interviews how do you love job interviews tony i love talking about myself i was literally about to say i do not know one person who loves job interviews and you're like outing yourself before i even ask the question i do but why just because you love talking about yourself well in your last job interview victoria and i paid for your lunch so maybe that's it hey it was one coffee and we got rained out and then we had to but sorry are you complaining you got the job i am okay all right no lunch no problems we'll talk about this later tony lodge but as always we are going to go straight into our money wins from the community that ryan john pulls together ryan what have you got this week rachel morris has a win and

i think all of us can just nod our heads and go what an absolute lord i found a dress i wanted for an engagement party for $110 and like a lot of people in the group say, you know, put 24 hours between your purchase so you thought, oh, I might just see if I really want it, I'll sleep on it. She went back the next week to look at the same dress. Instead of being $110, it was $30. What?

The exact same dress, brand new, from $110 to $30. So she bought it, it was on sale. Well done. Good job. Zara has a good one. I haven't taken any money out of my savings account for 63 days in a row. 63.

Well done. Get it. Get it. I love that. Rebecca Brown. During lockdown, I was bored, so I started playing around making masks because she's obviously good at knitting or sewing and just wanted to keep busy.

You know, we're all driving ourselves insane at home. I would assume sewing. Can you imagine a knitted mask? You'd cough and all of your stuff would just go straight through, like the most useless mask. It's like a crochet bikini, also useless. Could I sound any more like a middle-aged white guy just trying to explain, oh, if you just knit it together,

you pull the thing with the cord. I was just shaking my head being like, no, Ryan. They definitely didn't knit them up. Great story, Ryan. Keep telling them. She thought since she made them, she set herself a goal of, I'm going to make $500 by selling them on Facebook Marketplace in a month. Oh, is it an accountability August goal?

Well, $500 in a month. $500 in a month was the goal, But unfortunately, that will not be the result because in the first four days, she made $1,000. What? $1,000 in four days. She knits her way to $1,000, guys. She could knit herself a bank account.

Get the sewing pins and knitting needles out for wild times. Wow. And I can confirm, I have been in touch with Rebecca today and that $1,000 is now up to $1,038 because I have purchased some myself and she's sending them to my office. So thank you, Rebecca, for that. I love that.

And it's great to be a customer. Does she have like a business name that we can give a little scoop? Yeah, can we share it? Can you imagine if it was like triple that? Well, she actually said that it's gone wild. Like literally in the last week she can't keep up, but it's in the Facebook group. So let me ask her for some details and if we get a bit of an update,

I can reshare that into the group in a little link or something. Cool. But she's flat out. I don't want to overwhelm her and send 180,000 people from the group to her website. Her poor knitting hands won't be able to keep up. All right. Melissa said she received a letter from Optus.

Now, I think this was in the news, so some other people might have had something similar. I received a letter from Optus. They're compensating me $1,000 from the NBN that we had two years ago. And I think there was some sort of refund payout. They promised a certain speed that they couldn't end up delivering. It was one of those sort of stories. So, I mean, when you get slow internet, you kind of just get frustrated.

You don't really think about the legalities of it. but she has a cheque for $1,000 as a repayment. That's a good money win. That is really good. That's a money win you didn't see coming. Like, that's the truest of true money wins, I believe. Yep. Georgia Baker, and I don't know if you saw this photo in the group,

she took a screenshot of her phone because she was on hold for one hour and 57 minutes trying to get through to, on my Gov and Centrelink, it's been really hard for a lot of people. After countless hurdles and on hold for this long today, I finally got my disaster payment for being 14 days in quarantine because she was in a bit of a tricky spot. I can now pay my rent and bills without touching my emergency fund. What a massive relief.

She did point out, though, that it would have been more stressful, obviously, if she had not had the emergency fund. At least she would have then had an option to make. And she said, obviously, we never really want to use our emergency fund, but just having it there took a lot of stress off. And that, I guess, is the whole point of having it. So well done. Yeah, for sure.

Now, Kiralee Hall, will we say she's a frequent commenter and great value on both Instagram and Facebook? She's all over it. Money loss. I bought a Nintendo Switch and a whole bunch of games and probably spent more than I would have liked, but I'm in lockdown and I work at Aldi,

so I think I deserve it. This is now in my self-care slash lockdown win and I'm taking it. Oh, no, good for you. And shout out to everyone who does work in an essential service, all of our supermarket workers and healthcare professionals because it's tough and I know that sometimes it can be hard when you see everyone else working from home

and obviously everything has its own challenges, but those people who are still getting up and going to work every day, you guys are my heroes. All right, V, you've got your phone in your hand. Type this into Instagram. I'm on it. Bells.build. So this is Bella.

She is 19 years old and she's just finished building her own house. She's built her own house and she's 19 years old. Stop it. When you say she built it herself, do you mean like she literally like nailed it together? I mean, there's more than nails holding it together, obviously. I was kind of a little miss. You sound like Ryan with kneading needles.

I was going to say, who's worse, me trying to describe how to make a mask or Jess describing how to build it? One, this house is so cute. It's beautiful, isn't it? Like her kitchen like runs rings around mine. The house is cute. The whole thing has been documented.

How fun. It really is fun. But to answer your question, Jess, There's obviously lots of other trades and specialists and stuff doing it. However, there are a lot of photos of her in the high-vis and the work boots on site. I don't know the extent, but she has managed this whole process. At age 19, way to make the rest of us all feel useless, Belle.

I feel terrible. And the sink tap in my bathroom doesn't even have hot water. Thank you, Belle. It's a problem. All right, we are back. and today I am so excited about this. Sounds like I'm going into an ad, but I'm not. I'm literally going to tell you how to convince the government to give you an extra 500 bucks in your super, which I think is a very exciting thing. I don't think any of you are actually eligible

because you guys earn too much money, but if you earn under $56,112 and you're currently making after-tax contributions to your super, you could be eligible for the government to make a co-contribution of $500 to your super fund, which is a money win if ever I heard one. That's huge. That's huge. So what do people actually have to do? We don't just get gifted, right? No, no, no.

You don't just get it, unfortunately. Why not? Why do they make it so difficult? No, they make it hard. It's not actually that hard. Just give me the money, please. I promise you it's really easy, but you've got to know about it. You've got to be in it to win it, right?

So if you make an after-tax contribution to your super fund, which you don't claim a tax deduction for, so you can't claim it on your tax. Then you lodge your tax return and have a total income of less than $54,837 in the 2021 financial year or the 2022 financial year, which is coming up, which is $56,112. You can receive the co-contribution. And Tony, you know how you said before, they always make you jump through hoops and apply for things. This one, you don't actually have to apply for the contribution, but you do need to make sure that your super fund has your tax file number. So they know whether or not that you claimed your super contributions or not. Then once you've lodged

your tax return with the ATO who have super fund guys, they will then use that information to work out your eligibility. And if you're eligible, the ATO will just automatically calculate the amount that is owed to you and put it in your super fund. And I think that's really fun. I don't know about you guys you don't seem as enthusiastic about this as me because you're like oh it's five hundred dollars is it worth it yes because i have done the math because oh here we go i'm rubbing my hands together v how much is it gonna be all right all right all right so if we calculated it out and worked out the compounding interest on five hundred dollars which is an exciting thing to do because i don't think many of us are like oh contributing five hundred dollars to super is it worth it is

it not it doesn't sound like very much it doesn't sound like a lot but i promise you over the long term, it absolutely is. And if we work off a base rate of 7.5%, we're not calculating into this any CPI or inflation. So just FYI, but hypothetically, if you were 20 years old and you got an additional $500 from the government, by the time you're almost ready to retire, Tony, do you want to have a stab? How much is that $500 worth? $5,000. No, it is $12,973. If you calculate it out, using the money smart government website compounding interest calculator which i think is so fun but that's only at 7.5 which is pretty conservative and i just think that that's really fun because in retirement you could have like 12 grand more simply by thinking about it now

which is a pretty bougie holiday or like that's a lot of money at the end of the day car guys the government will give you a car that they won't asterisk that is also let's remember on top of your already existing 10 super contributions that you are making today which i think is super fun and that is why super is super sexy and you guys don't agree with me and that that's cool we can talk about something else but if you are eligible i would be looking into that and that is one of the benefits of she's on the money because we just want to make you money we want to make you rich so basically the government's not giving you 500 asterisks asterisks we are giving you 500 asterisks asterisks asterisks so you're welcome yeah don't say we don't do anything for you

all right moving away from super because as much as that's a really really exciting you guys don't look as enthusiastic about it as i know you are about our accountability august check-in So let's start with Ryan. Ryan, how are you going with your Accountability August Challenge? Well, first of all, I would just like to say thank you to all the people in the She's On The Money group who have been overly supportive because as I posted on Friday saying that I'm not going to spend any money on Uber Eats at the same time as Melbourne going back into lockdown,

I feel like we're very conflicting eras. And there is literally 1,000 comments on this post of people being like, lockdown doesn't count, it's totally fine, get your wife to buy it, support everyone's like do you need a voucher like we've got you so sorry you did this to yourself um and to be honest and i don't know if this sounds like a bit sophie but obviously we're all bummed out about lockdown but just reading through that thread of people just like making jokes about it and saying it doesn't count it was actually pretty funny and put a smile on my face so that was great uh but to answer your question how's it going not well uh not well at all

i think and i mean what a great cop out but when you can't really do much during the day and you don't really have much to look forward to, just being able to have some delicious food that someone else cooked is fantastic. And I just want to share my favourite comment. I don't know if it was a meme or a comment or a tweet or somewhere I saw it, but someone said, getting COVID means you might be short of breath.

Getting into lockdown means you're now allergic to all the food already in your fridge. It's of no interest. So I definitely feel that. I reckon I've had Uber Eats once or twice. It's still actually less than I probably used to. I think it might have been a few more times than once, Ryan, John. No, once or twice.

I think going direct to the restaurant was a loophole we discussed last week that may have been exercised again. But I'm just, I guess, more conscious of it as well and not just getting the worst option, even if it's a healthier Uber Eats than just always being pizza or burgers or something like that. There are a lot of, like, I live in Richmond, so there are a good of, like, really fresh, like, Vietnamese places

and stuff like that. So trying to not still be as fat as I was, but I'm fighting the good fight and still going. I'm so proud of you, Ryan. Congratulations. Thank you. I appreciate that. Jess, what is happening, though?

Where are you up to with yours? Because you were planning on selling a whole stack of things on Marketplace, right? Yes. Which is probably pretty hard if you can't have people coming over. Correct. So I was doing really well. Week one I had made $90, and then we went bang straight into lockdown.

And so I've pivoted, shall we say. Nice. And I'm selling a lot of stuff on my Depop, which means that I can just post things out to people. I pre-bought a bunch of postage things, so I don't have to be going out in public super often. I can just drop them in my local post box. Genius.

But I'm very excited to report that I did a big drop on the weekend with a heap of new beauty products that were obviously unused. That was gaming the system, Jessica. Definitely for you. I am currently sitting at a very tidy $475. Oh, yeah, yeah. For week two of lockdown, which is really exciting. There's heaps of stuff still.

That is so much money. If you want some clothes or some makeup, at JessicaRicky is my Depop handle. Help a girl out. All right. Calm it down. If you want to help me out, I'm at UberEat slash RhyanJohn. So I just start charging you guys advertising fees.

I feel like being in lockdown has actually been really good for me because I had already gone through and cleared everything out. But because I've got nothing else to do, I went through it. except your job yeah but like it's not like i'm commuting or i have so much more time and so i went through my closet again and i went through my house again and i was like oh wow like there's all this stuff that i missed the first time around is there anything left jess or are you just like sleeping on a milk crate because you've sold the bed and jess is just here naked i have nothing left no not at all but yeah it's been really good tony how are you going because

you picked arguably the hardest one yeah um so i committed to a no spend month for the month of august it's the 13th of august today um so we're about halfway through it's actually going quite well and like ryan said before it just makes you so much more mindful so because in my mind i'm thinking okay i know i can't spend any money i'm actually not just scrolling through shops on online or seeing things on instagram being like oh yeah i am gonna click the shop now link because i'm like oh there's just no point yeah um but i did see this coat that i've had my eye on for a while um which was 190 dollars and was down to 90 dollars wow the other day i've had my eye on it for a while and i put the 90 dollars into my no spend month um up saver so i didn't actually buy

the coat i saved the money nice job self-control though thank you is this an unofficial lay-by oh maybe i've set the money aside yeah i'll pick it up at christmas it's just been really exciting actually like seeing the changes in my habits because of just and being in lockdown as well has been like challenge mode for all of us yeah um but yeah it's been really really good i'm really enjoying myself except i did put something on my story the other day about dixie drumsticks coming back oh my gosh i don't know if you guys remember those little crackers and somebody from the community messaged me and said isn't it a no spend month that's food and i'll be buying the dixie yeah you keep the dixies out of this you you just stop stop right there you're gonna hold back

dixie sticks from a woman in lockdown thank you i appreciate the world guys i like how you'd like probably want to scold them be like but thanks for listening yeah i was like coming tony's face guys she looked like she was about to cut someone instead of me scolding people about my no spend month how are you going uh taking lunch to work victoria that feels like another loophole to me you big brain have gamed the system i am an official genius i cannot not have lunch at home now because we're in lockdown and as of wednesday lockdown got extended so i'm not even gonna have the opportunity to slip out of this um for a whole other week exactly i have been eating lunch at home i can happily report that

i am not actually allergic to any of the food in my fridge which is very good but that has not been my experience no no but that's okay because that's not your month like you can do what you want when it comes to food and I did buy a cheeky dress the other day so that's a bit of a money loss but it's really cute and it'll be good for work and I calculated my cost per wear Tony so that I was about to ask that it'll work but on top of that not only did I wait literally a couple of weeks before purchasing it I also got some validation by sending a picture to Jess and saying should i buy this and she said yes so obviously if jess says yes it's okay yeah jess controls my finances as well i run a tight ship can we do an episode v a deep dive and we'll call

it enablers yes who is that person in your life that lets you do all the spending you don't need to do and this could like extrapolate out into an entire tv series and instead of having a tv show called say yes to the dress it's say yes to jess and we can just like ask jess for permission to buy things we don't need genius i like that will that be coming before or after jess's marketplace manifestations podcast and tv series i think jess it'll probably come as a follow-up but i'm also gonna spin off yeah i'm also planning on pitching to channel nine um the stock it's like the block but we build investment portfolios for people and we rate them each week and i'm hoping to get scotty cam yeah oh my god i love scotty cam like what a guy why did you pick vanguard esg

what's going on there victoria i mean if he shows up in his shorts and steel caps though i'd rather talk about superannuation what's going on tell me about the super again how do we get 500 fee you know what guys i think we're done here we have done our august accountability check-in And I think, Jess, with that, that is all we have time for today. Yeah, V, if you want to do the wrap-up, Tony, if you say some other things, Jess, go get some cold water for yourself, mate, and just pour it all over you.

Yeah, we'll get straight into that. But just before we head off, we would like to acknowledge and pay respect to Australia's Aboriginal and Torres Strait Islander peoples. They're the traditional custodians of the lands, the waterways and the skies all across Australia. We thank you for sharing and for caring for the land in which we are able to learn.

We pay our respects to Elders past and present and we share our friendship and our kindness. The advice shared on She's on the Money is generally nature and does not consider your individual circumstances or accountability augusts. She's on the Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision.

And we promise Victoria Devine is an authorised representative of Australia Pacific Funds Management, Proprietary Limited, ABN 34132463257, AFSL 339151. And if you haven't already, join the Facebook group. There's so many conversations there of people sharing tips and ideas and savings hacks, so it's really great. You can catch up on everyone else's Accountability August challenges as well. We'll jump on over to our Instagram, which is shizzonthemoneyaus.

And we are off to get Jess a cold glass of water. See you next week, guys. Bye. you