She's On The Money - FRIDAY DRINKS: What's Ownhome?

Episode Date: February 10, 2022

WELCOME back to another Friday drinks! We've had a ripper of a week as a team, and this ep is HIGH energy because of it, we discuss the community wins (obviously!) answer a juicy listener question about managing your partners finances when they're just not as responsible as they want to be, AND we discuss the topic of the SOTM week - OwnHome and what it is.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 Infocus Securities Australia Proprietary Limited ABN 47 097 797 049 AFSL - AFSL 236523.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. Today is Friday, guys. It means it is time to sit back with our friends with a bev in hand to unpack our favorite moments of the week. And of course, to celebrate you, the incredible She's On The Money community.

As always, we are going to be sharing our favorite wins. We are going to be discussing what is making news in the finance world, and we'll be helping to answer a juicy money question all about managing your partner's money when maybe they're not as responsible as they'd like to be. So, just before we get there, Jessica Ricci, can you please take us through what happened on Money Diaries this week? Oh, my goodness. Monday's episode was quite the journey.

We spoke to a beautiful diarist. Oh, it was wild. It really was. I was not prepared. She had lived in many, many countries and done so many brilliant things, but she had also just dug herself into this hole of debt, and she took us through her journey that spanned literally five or six years and took us right through her and five continents took her through her emotions her feelings how that played out she had to do some things she said that at the time

she you know didn't want to or wasn't proud of but you know she pushed through she persevered she did what she had to and her and her partner have actually just recently moved to Australia which is really fun and exciting and after all of that she's now looking to buy property which i think is just incredible i found this story honestly a bit of a roller coaster i would be lying if i said it didn't give me anxiety when she was explaining it all and how different debts were in different currencies and then she moved to vietnam so she was being paid in dong but then owed money in australia and i cannot like i already struggle when i go overseas guys and have to remember the currency conversions like i suck at stuff like that in fact i'm the one

that goes overseas and goes a little bit unprepared. You know how if you were Jessica Ricci, you'd already know like which card had what transfer fee. Like I'm the absolute nimwit that believes that they have no international transaction fees and then get stung with the like really high conversion rate. Like I am a potato. So I cannot imagine having to deal with debt internationally. Like that just sounds terrifying. But the fact that she's out of it and she's on the right path and she's literally earning six figures in her dream job now, like just what she was incredible I was obsessed she was super cool she raised some really interesting points as you said around like the cost of sending money back home and the conversions

and the tax and things that I personally had never thought about as someone who's not half as adventurous as she is so definitely well worth the listen if you're interested I feel like George is just as adventurous but George you haven't been in personal debt so you can't relate to that but you would go and live in a million different countries on a whim, I feel. Oh, if I could, if COVID wasn't a thing, but I feel like I feel- We like it because we got to keep Georgia King. But no, I feel like I'm more like you, Vicky J. I'm more scattered when it comes to like understanding. Well, actually you totally understand the financial ramifications of

tax and what you're doing, but I wouldn't be as organized as Jess. Oh yeah. No, I get that. It's currency conversion that gets me overseas. Like I get tax, I get the ramifications of that. Like, Lord knows I know. But it's when you go overseas and you're like, don't want to think about it too much. And you're like, whatever, I'll just pop it on my card or I'll just go to this ATM and get some money out. And like, that's a very privileged thing to say, I feel. But I just had never considered it. And I remember coming home from Bali one time. I was there for a work conference and I came home and I was like, what is all of this? Like, I couldn't work out what the exchange rate charges were and why there

was so much money on my debit card. It turns out like they might not have had any fees, but they definitely had the exchange rate. Cool from me. Cool from me. But moving on from Monday's episode, George King, what did we talk about on Wednesday's deep dive? Victoria Devine. Look, it wasn't maybe as interesting as that money diary because that does sound quite fascinating. We spoke about mortgage refinancing. Joy to the world. I feel like it's exciting it can save you money yeah exactly well done Jess look it can save you money and it can be really sexy and I mean we didn't say it on the episode but we do have some very exciting news around the refinancing mortgage broking space coming up soon for Zella so keep

your eyes and ears peeled but I find it sexy I was joking just then but uh George what did we talk about what were the takeaways well we spoke about what it is and for anyone who is completely unaware. It's basically just transferring your home loan from one bank or lender to another, or perhaps refinancing with the bank you are currently with to essentially get a better deal, meaning your repayments are lower, the life of your loan may be shorter, and there's lots of perks, but there also are some things to be mindful of. And we did run through the common mistakes that people make when refinancing. So, if you're interested, give it a listen. I feel like everybody thinks that refinancing is like the smartest thing to do if you've got

a mortgage like you should do it every year but you can actually end up shooting yourself in the foot so if you are one of those people go listen to the episode because it turns out guys I have an opinion and I shared it on the podcast so weird but moving on George because I don't want to talk about me anymore jokes I always want to talk about me George what happened in the Facebook group this week. What are the money wins that you are going to showcase? I've got some belters as always. They're quite long as well. So, brace yourselves, my friends. The first win of the week comes from Jacqueline. So, she had booked a hotel room for her besties hen's party, but then realized Booking.com was actually on Shopback. So, then she, yeah, I know. So, she canceled her original

booking through Booking.com and rebooked via Shopback to score $60 back in her pocket. $60 is better than no dollars she wrote shop back also money win for them they got a mention on two podcasts this week on the she's on the money podcast exactly everyone wins yes hit them up let them know um the final part of that win was that she also found her her pet food store on there so you bet she now orders all her dogs needs via shop back on the same website well done genius lovely what a genius the next win comes from mirin she has been trying to cut out her sushi and uber eats orders for a while now but she's just never quite been able to give it up for good she decided this year that instead of going cold turkey she'd teach herself how to

make it at home once a week it's been three weeks since her last uber eats which is saving her between 30 and 40 each time so what she has made is sushi she's taught herself how to create everyone's favorite little japanese dish that's so clever oh my gosh i love that i feel like that's far more complex than we actually give it credit as well like sushi rice is on a different level and i can't cook rice without burning the bottom of the pot so i always make sure yeah every time i always make sure there's extra rice in the pot so that that burnt bit can still happen and i just get the good rice off the top um yeah that's that's how victoria cooks that is why i do finance not food. She also attached a really cute photo of the sushi. So, I don't know, look out sushi,

sushi. There could be a new chef in town. Okay. Our next win is from Ali. So, this is actually more of a PSA for the girlies rather than a win of her own. So, she was discussing some frugal tips with her girlfriends over the weekend and she thought she'd share them with us, which we love. So, if she is wanting to purchase a product, but there isn't a readily available discount, she'll hit up the brand's instagram and go through the tagged posts until she finds a current influencer code and then she'll use that genius how smart that's actually so smart also that influencer is very grateful yeah i'm sure for you using their code like genius why does that is that because the influencer will then get like paid more or do they get more off what's you guys are

both influencers yeah but most of the time when i get a code i'm not getting paid for it just tells the business that I'm working with that their code is working and that like it worked and it's very nice when you know a brand has taken their time out to maybe send me a product like our friends at LSKD Jess they send us activewear sometimes and we both get that and so they share a code and I really like when I know my community's using it because it's like guys they sent me free activewear and you're like letting them know that it worked so I don't know I just really like it This is unrelated, guys, but they sent me stuff, too. They asked for my address.

I was like, oh, I'm not going to post about it because I have two followers. But it was so sweet. Oh, my gosh. The little She's on the Money LSKD crew. Like, oh, my gosh, Jess, we need to hit them up. Can you imagine? Wait for it. Peach Activewear.

They've never done it. I actually DM'd them a little while ago about they showed, like, men's pastel stuff. and I was like, please tell me it's coming in women's. You know what? I'm totally going to send her a DM and be like, hey, is that a thing? Because I would wear peach activewear. I don't understand who wouldn't wear peach activewear.

It has to be the right peach. So we'll need to work really closely with you guys to make sure it is the right peach. But, you know, Jess and I, we're willing. We're willing and able. Can you imagine? I'll put my body on the line. She's on the money activewear.

It can be all brand. Yeah, we're willing. Keep an eye out. Hopefully coming to a store near you soon. the audacity we have in even thinking that's remotely going to happen like anyway i'll take my free leggings they're the best leggings i've ever worn just for the record oh really i haven't tried them on yet i like george literally literally i like them so much the base collection is literally so buttery and just to disclaimer this i'm only talking about them because i'm obsessed

with them not because they're paying me to talk about them like i could talk about lululemon in the same way but they ain't the same you guys can't tell i'm literally wearing a pair of the base leggings right now good flexibility for you there everyone can't see but i just for those of you who aren't georgia or i who actually can't see the podcast i just just did some uh tantric yoga to show us her her types and on that delightful note george what's the Okay. The next win comes from the lovely Olga. So, her 2022 resolution has been to stick to only one takeaway lunch per week when she's at work and the rest of the time she has to bring them from home. We love that. It's been working for her so far and she says it doesn't actually feel

as restrictive as she expected it to. So, that's amazing. That's win number one. Okay. Genius. Hold on. But can someone post in the Facebook group like actual lunch ideas? So, You know how like sometimes people be like, oh my God, take cut up cucumber and carrot and celery to like to work for lunch. And you're like, well, that's going to last a day before I want something else. Like, can we do a realistic lunch thread? Like what are you actually taking to work for lunch? Cause like Jessica Ricci, she's turned up to the office with just like, I wanted to bring lunch today. And I'll be like, what is that? And you'll be like, oh, all I had in the house was a I got corn chips. I get it. It's so relatable. You like want to take lunch to work sometimes

and you're like, well, I don't have all this time to do like an adult's version of a bento box. Like I get all of this like meal prep stuff. And if you guys are doing it, it can go on the realistic thread. But like, what'd you have for lunch today at work? Like, was it a can of tuna? Like, was it a packet of minute rice? Cause that's what I would do. Like Jess, you've seen what I like sometimes Jess I've literally been like oh I don't have time to make lunch I'm just gonna eat this whole avocado you'll be like what are you doing but I'm like I'm not buying lunch it's just not happening stick into the guns my friend and I when we were traveling in Bali when we were young and poor um we came up with this philosophy or this mantra I guess and it was called on a budget

not a diet so we just ate oh yeah we ate chips for dinner the cheaper the better vodka cruiser that'll do bintang um and it really has it stood the test of time maybe less so for my health but yeah not for your health but i do genuinely believe that there seems to be this like connection where if you're meal prepping it has to be you meal prepping like super healthy things to take to work like some kind of shame exists not in my world but some kind of shame seems to be existing where if you made like a big dirty spag bowl and you were like i'm gonna take an epic serving of this. Somehow that's not as acceptable as making a veggie platter. Like, I don't know. I want the spag bol, guys. Feels. So, I guess we're interested to hear what Olga

is bringing into lunch. Let us know. But beyond that, there's a couple more wins in here. One of her colleagues noticed that she was being frugal and she was like, Olga, love, why don't you start giving up coffee as well? Olga says, I respect that. I identify that that is a money drainer, but I love my coffee. It's not going to happen. Lunch is enough. That's my limit. Olga knows her values. Olga knows her values. I think that's really important. Like, I think it is so important to know what you're willing to compromise on and what you're not, because I'm with Olga. We aren't compromising on the coffee. Precisely. And it makes it more sustainable because you're not cutting everything out. Anyway, on Friday, Olga won a whole year of

coffee from a new coffee shop right next door to her work. So now she's getting a free coffee every day for the rest of the year. So, you know, she deserves that so much. That is karma. That's her being like, no, coffee's in line with my values. And that's like the she's on the money karma train coming around and being like, we see you, we hear you, but you're still saving. We produce the goods. She said she's putting all of the money she's saving from that coffee into her emergency fund as well. So, what a woman. I love that. Yes. Okay. The next win is from Alana. money win i pay it down my last personal loan payment this thursday then i'll finally be debt free after racking up over twelve thousand dollars of debt then falling too ill to work

and having taken guardianship of an at the time seven month old and then having my own child money has been extremely tight of late but i finally paid it all how special is that wow that's some powerhouse stuff over there like i love that of course money was tight for you that sounds like a lot. And with that epic money win, gals, I'll leave you with the final one here from Cassandra. She found $5 on the ground. Yes, money win. Takes me back to the OG story of George finding five bucks on the street once. Or was it 10? I don't remember. Alrighty, we're back. And I have an interesting one for you this week. A couple of people DM'd this to us and I just thought we had to talk about it because I found it really, really interesting, but we'll get into

it. So, you might have seen floating around, there's been quite a bit of PR done for this new startup. And I'll read you the title of the AFR article that I saw, which says, CBA backs live now, buy later startup that will ditch home deposits. So, of course, that got me intrigued. We all know how we feel about buy now, pay later. What? I haven't seen this yet, Jess. Please explain. So, it's not as scandalous as that title kind of leads you to believe. AFR seems to be getting a little click baby. But essentially, it's a platform called OwnHome, which is in the rent to own space, which we actually spoke about on the pod a couple of weeks ago, if anyone wants

to head back and listen to it. It says in this article, it's much more common in the US than it is here, but it does float around and it has for a little while. But the thing that really intrigued me is that it's being backed by Commonwealth Bank, which obviously means that they're seeing a lot of value in this space. And the article does go on to say that at least initially cba is not going to add it to their current app that they have um but they anticipate that this kind of model of renting to own is going to become really really popular and i know that we already spoke about this a little bit on the podcast but i'm interested to know if knowing that a more legitimate i suppose option exists that's being backed by these big businesses if

that changes any of the perspectives we shared because i know we spoke about how it can be a little sketchy sometimes. Yeah. Well, this is very different. Like this is a very different product, I think, than the ones that we were talking about. And given it's being backed by CBA, I would assume, and this is definitely assumption, that it is a little bit more of a legitimate model that's not planning on taking advantage of first home buyers, especially because a big part of CBA's revenue is generated from mortgage owners. Like if you're going to give mortgages to people, you're not going to want to screw them over. It just makes sense that this might be a really legitimate option for first home buyers, especially in a

world where saving up for a home deposit can take literally 10, 15 years at our age, Jess. It's insane. To give a little bit more context, the way that it works is the own home will purchase the property for you. So they will initially buy it. They'll handle the deposit, the stamp duty. And so, you as the purchaser only pay 1.5% fee upfront and you can move in. So, they still own it, but you've moved in. So, you then go ahead and put an additional 1% to begin a purchase offset and then make monthly repayments. So, you'll build up equity over time. You should be putting in about 2.5% of the dwelling per year. And then at a later date, you can elect to buy the property for a pre-agreed price at any time between three or seven years. So, it is a little bit more

complicated. It sounds like there's quite a few steps there. I mean, what if you want to purchase the property 10 years out? I don't know if that's an option. I'd be really interested just in understanding and from what I can see, there's not a lot of clarity on this, but I would be interested in understanding the credit structure and exactly what that would look like for a mortgage owner. Like obviously, you know, they're saying all these great things and it sounds really good. And what I like about this is also that pre-agreed price because we know property over time goes up so the fact that you could be purchasing it for a pre-agreed price is that actually going to take into consideration inflation and like property growth are they

going to guesstimate that and guess that it'll be worth this or are they going to do it at the pre-agreed price I don't know I just feel like there's so many things that could be really beautiful about this but also things that could be like a little bit scary like what if in five to seven years your financial situation has changed dramatically like Jess what if you and your partner had broken up and now you can't afford the house on your own. Is that time wasted instead of saving for a home deposit? I don't know. I feel like there's a lot of lack of clarity around these structures and around what's going on in the credit space. I don't know. Everything's annoying me this way, guys. I feel like I'm sure you could jump on the website, read their PDFs

and find a little bit more information. But something that really stuck out to me in this particular article is it said a potential buyer could access a million dollar property with a $25,000 payment upfront, which is not a lot. Like, I guess it's good from a consumer perspective because you're like, oh, like how easy, but I worry as someone who, as we've said, is currently going through the process and assessing whether I can get a mortgage and don't ask me how that's going, but you know, is it almost misleading? Oh, I did. I wished I didn't. I know. But is it almost setting people up a little bit for failure by saying, hey, you can have this million-dollar property if you only have access to $25,000 right now?

And I understand it's really hard when people get stuck in the rat race of renting and doing this and doing that. I fully understand the challenges. I'm living them with you. But if you can only save a $25,000 deposit, does that potentially mean that you just should not be purchasing a million dollar property? Well, it's interesting because obviously on this podcast, I can't give you guys financial advice. I don't know your financial situations near deeply enough to go, well, actually that means this, that, or the other. But from a financial advisor who has a very diverse amount of clients, I've sat down with clients before and said, hey, client A, I've done my statement of advice and we're here to present it. And I'm sitting with a client and

I just say to them it's just not financially viable for you to purchase property I mean if you really really want to we can make that a goal and work in your financial goals around that but unfortunately because of the hurdle of the deposit and the fact that they didn't have you know any guarantors or anything like that they found themselves in a position where it just wasn't that financially viable to own their own property and have all the associated risk and additional costs and to create wealth, we ended up going down a different route in saying that, I guess, you know, to give you enough context that that was the right advice to give for them. They didn't mind which asset class they wanted. They essentially came to me and said,

I've got X amount. This is what I want to do. I want to create wealth. I want to work towards this. They weren't a client that came to me and said, Victoria, I desperately want to own property. And then I just burst their bubble. They literally were like, well, what do I do? and in that situation the outcome was cool property ain't it sis like that's not gonna work for you and I think that we need to come to this realization that that's not a bad thing it's just a smart thing for some people like we've got this pre-existing like idea in our head that purchasing property means that we've made it and it's just so far from the truth and it's so I guess hard to comprehend when you're not in that property owning position like Jess you're

not there yet. You're on the journey. And I know for sure without, you know, throwing you under a bus, that's not what I'm doing. But like you definitely romanticize property. Like you can't wait. Like you love it. I know you'll love it. I know because I'm also your financial advisor as well as your boss. I know that that's the right decision for you. But so often when we're not in that driver's seat of owning the property, we only see the romantic side of it. Whereas just in 12 months, you're going to have a property and you'll be like, ah, the hot water system broke. And you'll be like me like my air con is out and I don't want to pay for a new one so I'm sitting here sweltering right now going what am I going to do to save money while getting a new air con like

it's not as sexy as people make it out to be and yes it is gratifying and there's a lot of privilege in being a homeowner but I think that a lot of people think that you've quite made it once you own property like we talk about it on she's on the money all the time and we say you know it's definitely not an indicator of success like yes you could purchase property but does that mean that you're more financially stable? Not necessarily. Does that mean you have free cash flow to achieve all of your goals and the things that you want to achieve in life? No. Does that mean that you're going to retire with more money? Maybe not. It doesn't actually mean what you think it means. And even though I think I'm being incredibly clear in what I'm

saying to you guys right now, if I still said, hey, George, do you know old mate from down the road? She just bought a house. You'd be like, oh, good on her. What an achievement. As if it's something that you know should be celebrated and please don't get me wrong it absolutely is because it's the journey it's the savings it's the sacrifice that goes into creating this and Jess like when you purchase your home I'm going to be over the moon because you save so hard and you compromise so many things that you know I know you value because you value this goal more and like I get to be on that journey with you and I've spoken to you about it and I genuinely will be so excited and so proud that you've achieved that, but it won't be because I'm like,

oh my God, she's made it. She's achieved it. Like she's better than everybody else. Like it's crazy. But even though we're saying what we're saying right now, people are still going to be like, oh my gosh. Yeah. But it is a level of achievement. Like get that out of your brain. Can I throw in a bit of a spicy take here, ladies? Go for it. I love spicy takes. This week is all about spicy takes. Totally. It certainly is. But could someone perhaps argue that maybe this venture is kind of capitalizing on the instant gratification culture that's kind of been cultivated, I guess, throughout our generation? Like, you know how we're also used to having what we want now,

we'll deal with the consequences later. That's what Afterpay allows us to do. We'll deal with the pain later, if we're entering the property market with $25,000 and then in three to seven years, we're expected to take on a full mortgage, how can we be expected to afford that if in the first place we can't? How does that work? It is worth noting here that they did say that customers are being assessed individually like you would be at a bank and you're having to answer the same question. So, as much as the example that was provided was with $25,000, you could get a million dollar home i don't know that they're offering that to everybody there's obviously a level of due diligence that they're completing and i would imagine if a bank is backing that

that it would be pretty thorough more legitimate yeah okay i guess the concept is the same and i mean you could argue back and forth on you know there are government grants and things that assist and it's not easy getting into the property market is so challenging we all know that and i don't want to make a sweeping statement and say that people who haven't got a deposit are just not doing the right thing, because that's obviously not the case, because it is really challenging when you have families and other commitments. But yeah, I would really recommend people go back and listen to that episode, because like I said, we got a heap of DMs regarding this. And I think a lot of the things that you spoke about are applicable. It is just a slightly different model and one that

seems to be a little bit more legitimate. One more QJ, Rick. I'm not sure if it was in that article, but is the idea that you can like go up for any home that you're looking at and just click like the own home button or is it more that own home is buying like estates and then you're living in a designated area or is it like a viable option? That's actually a very good question. Oh, thanks, Scott. All right. I've just jumped on the website G2C and the first thing I see is it says, choose the home of your dreams and move in straight away. So, I'm assuming that you can kind of pick and choose, they will purchase on your behalf and then that model comes into play. But even there again, and to be very clear, they are not associated,

they are not a buy now, pay later platform. But as you said before, it is that kind of same instant gratification. It says, turning renters into homeowners, choose the home of your dreams and move in straight away. And I mean, I'm not condemning them. I haven't looked into them enough at all but it is once again it feels like capitalizing on that desire to have something so quickly yeah yeah it it seems crazy and i mean to absolutely pivot we were talking before jess and george about the credit industry you know being a bit crazy at the moment and jess you're going through the pre-approval process and that's you know really challenging and a couple of weeks ago, we spoke on the Friday drinks episode about how in the US Equifax are now putting Afterpay on

their credit reports. So, everything's becoming a little bit more official. But another finance news thing that happened this week was actually that a whole heap of financial experts came out at the end of last week and they, quote, predicted potential carnage for the buy now, pay later sector. And if, you know, you've been following me on socials, you know, I've been going a bit ham on Afterpay and money by Afterpay and their potential marketing and how I just feel like it's not potentially putting their consumers in the best possible position. And it makes me a little bit uncomfortable. So I've been talking a lot about that. And Glenn James from My Millennial Money and I have actually already recorded a podcast on that. And that will drop on our feed

in probably the next two weeks. We're just making sure it's perfect. Okay, guys, because we don't need to be starting fires or lighting fires that don't need to be lit. So we're just making sure we're doing the right thing by you guys as well as by Afterpay. But it's interesting to see that the buy now, pay later segment here or sector, you should say, here in Australia is actually worth more than $30 billion collectively, which that's a lot of money. And now on the ASX or the Australian Stock Exchange, there are 12 different buy now, pay laters that are on the ASX here in Australia. But George, Jess, did you know that buy now, pay later providers' bad debts are now astronomical and not one of those 12 listed providers have ever made a profit. None of them

have ever paid a dividend to their investors. And over the last week or two, share prices have absolutely plummeted. Have you seen that? I had seen someone talking about it online and I guess it's quite a shock, isn't it? Because we talk a lot about the extortionate amount of fees that these businesses collect every year. So it's wild to think that they're taking on so much debt that even with all of those late fees, they're not turning a profit. But I guess that makes it pretty clear as to why we spoke about last week or the week before these businesses work so hard to keep your business. That's why, because they've got debt to pay. Because they've got debt to pay because they're in debt themselves. So if anybody understands bad debt, and I was calling them out

for not understanding bad debt and quoting it. Guys, you should know you're in it. Up to your eyeballs. Guys, the fact that Afterpay and ZipPay's share prices over the last week have gone down dramatically. Like the Zip share price dropped 80%. Like one day it was $14 and then it went down to $2.90 a share. Like if you were a shareholder, what? Yeah. What caused that? So the cause of that was actually it's reporting season. So all the reports are coming out. They're starting to be really, they have to be because they're on the ASX, transparent about their debt levels and what their predictions are for the next 12, 18, 24 months and what they're foreseeing. But it's kind of one of those things where shareholders are talking with their money,

like shareholders are mass exiting, holding buy now pay later companies. And the reason they're doing that is because they're finally saying, cool, they're not turning a profit. Yeah, we might have gotten to a point where we sold for $14 and we only bought for $2 or whatever their situation was, but no person who owns after pay shares or zip pay shares or any of the listed buy now pay later shares has ever returned a dividend. And you know, when we talk about the share market and you know, Victoria, what do you invest in? And obviously I'm not going to ever share that with you guys. And exactly what makes up my portfolio would be from my perspective, really irresponsible of me to do that because I just sit in this, you know, I don't want to say

I'm so responsible for you guys, but I am. And I know that you guys know what I'm talking about. So you'd very likely just go out and replicate my portfolio. I get it. I would do that too. I've done that to other investors that I know when I follow them. Like it's not that uncommon of a concept, but that's one thing that when I'm looking at shares to put in my portfolio, they're not only going to increase in value but they also pay a dividend because a dividend is going to make up a very big portion hopefully of what my retirement payment is going to be like capital growth is great like Jess if I gave you a share tomorrow and said wow it was worth $10 today and $14 tomorrow it's only worth $14 if you sell it like I need that share to be

generating me income and income is the dividend so no one's ever made money from any of the buy our pay laters unless they sold their shares and that's not what we want to be forced to do when we're investing for the long term like we're investing for the long term so that the money that our money makes can make money and that's the money we live off like it just to me not such a good investment hey guys yeah i just think it's really interesting to have these conversations because you know it's not us going oh my god we knew like this is all common knowledge but it's just so interesting that it's happening at the same time that we're talking about it not because they're connected just because it's like, wow, like we were literally talking about this last

week, Jess. It's crazy to think that, you know, they're not even turning a profit and they're in bad debt. Yeah, 100%. And I guess I'll be really interested to take that, I guess, concept and apply it to businesses like Own Home who are, again, taking on extreme amounts of debt on behalf of a consumer. I mean, I'm sure there's going to be, unfortunately, situations where people can't pay that back. So, I'm interested to see how that model works and learn a little bit more about it as time goes on as well. Yeah, absolutely. It is Friday, which means it's time to answer your most burning finance, career, and life questions. If you need help untangling a naughty dilemma, no matter how big or small, send us through a voice note to podcast at

shesonthemoney.com.au and we'll help you find the answer you've been searching for. Now let's press play on today's listener question. Hello, that's my lovely She's On The Money gals. so I'm looking for some help in regards to my partner's spending and saving habits he spends like crazy and has no savings basically living paycheck to paycheck this year I've decided enough is enough and to take control and budget his money weekly and transfer any remaining funds into an account that only I am able to access as it's gotten to the point where I see no other option I'd love some advice on how to tackle this issue further to assist him and maybe ask, is this an extreme thing to do? Oof, what a question, guys. I'm a

financial advisor. I've seen this one before. What do you guys reckon as young gals in relationships? I feel like the important thing to touch on here, and it wasn't really clear in the question, is that this model is totally fine as long as both people in the relationship are comfortable and consenting because I think if it was a male doing this to a female we'd be really quick to jump up and down and say oh my god like this is sounding alarm bells just because it's a female doing it for a male I know that we as women take on that mental load significantly more in a partnership but just making sure everyone's comfy you know I'm assuming that she's had this conversation with her partner and that he's happy for her to take on the responsibility

yeah that's a really good call out Jess like we are operating under the assumption that her partner has turned around and said Jess take my money off me I can't be trusted and all parties are consenting yeah 100% let's have the conversation based on that assumption yeah yeah with that in mind my personal opinion is I mean if you're happy to do that to make your relationship work by all means I personally would find it incredibly frustrating to have to look after my partner's finances as well as my own, just in the sense of, I think that you can be bad with money and there's a whole bunch of reasons why. I'm neurodiverse friends. There's all these different factors that might make certain aspects of financial management more challenging for you.

But I think there's one thing to ask someone to help you or to set you up for success. And I think it's another thing to go, it's too hard, do it all for me. Because assuming you guys are together forever do you really want to be doing everything for him financially doing his budget all of that stuff for the next 60 years oh my gosh no no that just feels overwhelming like that feels like too much from my perspective george what do you reckon well it's it's a hard one and in the body of the email that she sent us she said that it has caused a lot of stress in their relationship which sucks And I mean, I am in a relationship where I am a little more responsible with my finances than my partner is.

So, I totally understand how hard it can be when you're kind of both working towards shared goals and one of you is definitely working harder and you see the other one being frivolous with their money, but it is their money. So, you do need to give them that level of freedom. But I mean, I would probably suggest sitting down and having a really good chat. And I mean, you probably have already done this, but talking through your money stories, the goals that you are working towards together and what you do want further down the line, be that five years, 10 years, if it is quite a serious relationship.

And then I think, yeah, just really reassessing and helping them understand that their behaviors around money are impacting you. And a level of sacrifice does have to take place if I guess you want to continue in this relationship because, yeah, it's hard. it's really hard that's such a good point g i think yes helping them set up processes so being like hey i want to help you i want to see you succeed like that's what a partner does i'm here to support you but that does in my opinion that doesn't necessarily mean that you should just take on all of the responsibility um by yourself that's a massive burden that you have to carry

just like yeah who could be bothered and it's not your responsibility yeah we'll get the professional's opinion in a second but just I would also be careful because if you are then managing his finances and this is again applicable if the roles were reversed I feel like you're setting yourself up for potentially a little bit of resent or a little bit of oh yeah that's a good factor or you know I just think you she as you said she mentioned that there's been a bit of a strain I don't necessarily think that taking that responsibility will completely mitigate that strain because if anything she's now going to have more oversight into what's happening and of course you never want someone to feel as if they've got to turn

around and be like please can i have my pocket money and it just it's really hard because obviously it's going to function differently with every relationship dynamic but i foresee a lot of pitfalls personally but v what do you think you actually probably are the most qualified to speak on this we've just been running our mouths back and forth qualified is not like this question is so much beyond just like financial advice you're asking for relationship advice and money's the factor and from my perspective if it was anything else that you were taking over for them like it's grow up in a way like i want you to be responsible for your own wealth for your own future and george if i said to you hey well can you be responsible for making sure i get out

of bed every day and go to the gym because i want to be fit like it just feels like that's not my responsibility or my burden to carry but i think it does really go but like firstly it's a very kind thing to do like if you've got somebody struggling and you're like nah i'm gonna be boots and in all i will manage this for you i've got you like that's an incredibly kind thing to do but then also it's kind of like are we working on it while this is happening or are you just taking it over because if you're taking it over I'd probably suggest that you start looking into well where is this coming from why aren't they good at money because I don't believe that people are good or bad with money like I just believe that people have their habits and if you would

like to change them you're more than welcome to and you absolutely have the power to do that and we've seen that so many times in our community people going from being in extreme debt and being extreme spenders to being these epic savers like we see it week in week out on our money diaries episode it is not impossible to change your situation and if you're like oh well I'm always going to be bad let's look at your money story let's look at what you can do but guys you've answered this like you've done a really good job of you know I guess prefacing it but from my perspective let's understand our money stories let's make sure that you're giving yourself enough room to breathe and if that's something that is a really heavy burden maybe put a time limit on it

be like I'm going to take it off you for six months and then in six months like you're going to do it but this is one of those things where a couple of people have actually asked me about this product before and that product is my budget and they are a company where you can go to them and they'll do your budget for you and get you out of debt and do whatever and they do charge a fee for their services okay understood but the thing I don't like is they don't teach you financial literacy. Like the day you leave them, you're not in a better, more educated position. You've just had your budget taken off you for a period of time. And yeah, it might be squeaky clean and perfect and all your debts are paid and you're in this great position, but you're not more

financially literate than the day you went in their doors. So I just think that this kind of plays into that mentality of like, you feel like you're saving them, but you're not actually in the long term giving them the tools and the resources they need to create their own success and regardless of who you are in a relationship what gender you are what view you have like I just think every single person should be able to stand on their own two feet financially and if you're just taking it from somebody you're not giving them that grace to learn that if that makes sense what's that saying you give a man a fish he eats for a day but you teach a man to fish and he eats for the rest of his life i feel like that's what you're saying yeah yeah you read the

bible that's so good you're so smart is that actually from the bible i i believe so oh i did not know that well there you go but yeah i think that that's a really relevant point and as you guys know i like to catastrophize as an anxious person really and i would just tack on to the end of that if you guys were to ever break up if you've been managing everything for him for however long and where touch wood you're gonna die together like that's not gonna be a problem but as i said not at the same time that's more you're gonna grow old hand in hand like in the notebook at the ripe old age oh my gosh yes that's the only option yeah um but you know should something go wrong as you know that's how i think he's arguably potentially gonna be in a worse situation because

he's become reliant on another person so i think you you really nailed it v when you said it's so kind of this listener to want to help but maybe when you have that conversation you look at approaching it around what options are there to further his education and eventually lead him to a position where he can comfortably be at least mostly independent i agree is that uh all we've got time for today guys she's on the relationship advice she's on the advice columns we'll be dolly doctor next week for anybody who is going to tune in then but till then i do think that that is all we have time for today so just before we head off we'd 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 and 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 victoria divine is an authorized representative of in focus securities australia proprietary limited abn 470977970 i'm sorry you just struggled so much are you okay you went to say the three numbers and you're like pretty sure that's okay okay let's go again so victoria divine that's you

you're an authorized representative of in focus securities australia proprietary limited abn 47097797049 afsl 236523 gosh that was hard three three nine one nine five one it's not like that yeah but you did it we got there i'm proud of you um yes for anybody who hasn't noticed i have changed dealer groups see you next week guys bye guys you