She's On The Money - She's On The Money Radio Recap - 29 October

Episode Date: October 29, 2022

Celebrate your Saturday with the She's On the Money Radio Show! This week, the team talk Census stats that say that Millennials are 3 times less likely to own a home outright than Boomers were at the same age. Plus listener Anthony wants to know what he should do about his mortgage that he's struggling to pay, and Victoria shares her thoughts! And don't miss Victoria's sneaky tips on how to keep more bucks in your bank account.You can catch us live on the KIIS network, or listen to your heart's content via the iHeartRadio app every Saturday from 9am - 10am. See omnystudio.com/listener for privacy information.

On air and iHeartRadio, She's on the Money Radio Show, with Victoria Devine, starts now. Hello everybody, welcome to the She's on the Money Radio Show, podcast edition, the podcast for young millennials trying to save my money, and get some bangs in your bank account, and go to Aldi and get the cheap ham, get the cheap cheese, get the cheap wine. We're not going to get cheap ham, that's disgusting. Also, how much do I owe you for serenading me on my own podcast? Well, that was a custom song. And yes, I'll sing at your wedding.

Oh, thank you. Thank you. You're so kind. What are your parent-in-law's names? What are your mum and father-in-law? My mother and father-in-law. We've got Marlene and Chris. Marlene and Chris!

You made this happen! You made your little son. And now he's marrying V. Do you know what? This is a lot. This is a lot. It's country. I went country.

That wasn't country. That was not country. It was rogue, but it wasn't country. Okay, fair enough. Listen, Trav Roebuck is out. He's horse racing, which I believe is unethical. Yeah, because Trav would never let this happen. Of course.

No, no, he wouldn't. He keeps a tight ship, Trav Roebuck. He is out. He should be back next week. He's out horse racing, which I'm not sure I agree with. How do you feel about this horse racing? I was going to say, he sent me a photo. He's like, look at my beautiful horse.

And I was like, I don't like that. I pretended it didn't come through. I'm like, sorry, no service. Oh, yeah, yeah, yeah. Message not delivered. Message not delivered. Yeah, it was a bit awkward. But anyway, we love Trav.

Sometimes it's just easier to not say anything than start an argument. Amen. So instead, we're going to take it to this podcast that gets listened to by 1.2 million people. And I can guarantee it's going to get back to him. Today on the show, guys, we had a boomer, Ellen. We did. She was so sweet.

Yeah, I was a bit nervous. I'm like, I'm going to fight with this boomer and I will get aggressive. But I fell in love with her. Oh, she was actually so sweet. I cannot believe that she only went out for dinner once a year while trying to pay her home off. Like, millennials these days, that's why boomers think we're entitled, because we are. Yeah, if you're a millennial and you think those boomers, they had it easier than us,

I think Ellen will actually shed some light on what it was like back in, she's from the 70s, she's also from Melbourne, but she was alive in the 70s, and she's got an interesting mortgage story, so she'll unpack that, we've got some money wins, we've got some Super Saver Saturday tips, it's a good show, V, right? We also talk about crocs a lot. We do talk about crocs. Honestly, I don't understand why people don't embrace the croc. They are practical.

They are comfortable. You look really hot in them. Yeah. Like, what is the problem? Amen. It's all in there. Enjoy the show. It's the She's On The Money radio show.

She's On The Money Croc merch coming soon. Happy Saturday, everybody. How are you, V? I am so good. I'm very excited because I think talking about mortgages, talking about finance and debt is absolutely my favourite part of every single week and we're doing even more of it today. Yeah. I didn't realise, but in 2021, Ryan, the Bureau of Statistics released an article saying that

Baby boomers have officially been overtaken as the largest generational group in Australia. Millennials, are you a millennial, V? I'm a millennial. Mitch, really? I run the podcast for millennials who want financial freedom. And you're like, oh, are you one though? Or are you just telling me how to suck eggs?

No, I've never missed an episode. Anyway, millennials are through the roof. There's more millennials than boomers. But the problem is millennials can't afford a mortgage or to buy a house, whereas boomers can. So I think it's really interesting, V, that there's more millennials, yet boomers hold the percentage of market share in housing and whatnot. It's crazy.

Look, it is kind of crazy, but it's quite reflective of the times that we're in. Historically, properties would cost anywhere between two and three times an annual salary to purchase. And yes, interest rates were relatively higher. Interest rates, I think, in 1990 were sitting at around 17% or 18%, which is crazy talk now. Can you imagine if we were talking about interest rates at 17%?

People would lose their heads. What are they currently? Honestly, it depends where you're going to get your mortgage. But at the moment, they're sitting anywhere between two and a half and four percent, depending on the bank that you go with. And that's only increasing because the cash rate has been increasing recently, which means we are trying to battle inflation. Like when we say, oh, my gosh, our interest rates are increasing. I know it's really stressful for people who have mortgages, but it's actually trying to really slow down inflation. So, overall, it's actually better for us to have the cash rate increase

instead of bread and milk becoming $10 a loaf. Like, we won't be able to buy a coffee anymore for under a fiver. Oh, wait, Mitchie, you can't. I had to ask my barista for two cookies because that was my lunch. You know how they give you a little cookie on top of the coffee sometimes? That's my favourite part. I was like, can I get a second one? I started going to this new cafe that puts chocolate freckles

on top of their coffees. And, like, if you can see my desk in front of me, I actually went and bought more chocolate freckles because I was like, these are so good. Genius marketing. Such an underrated snack. And you know what? This is why we'll never afford a house.

Yeah, because we're all buying chocolate freckles. But back to my main point, I was saying before that houses cost historically between two and three times an annual salary. And Mitch, you live in Sydney, yours is cooked. It's now between 13 and 14 times an annual salary to purchase your first home. So it's not just that interest rates have gone down.

It's actually that our incomes aren't keeping up with the rising price of property, which, you know, puts us in a different position. So yes, millennials can't buy property as readily as they historically were able to. But I also think it's really about values. Do you actually want the mortgage? Is that something that we're working towards? Like, I don't know. I feel like as millennials, we have different goalposts and different things we want and

need. And from my perspective, I've shared this on the pod before, I got a mortgage because my partner really wanted to own a property. I was really against it. I just didn't want to. Because I was like, this does not make financial sense for me. Like, I would like to put all my money in shares and keep it there. I am happy renting, but my parents freak out at the thought of paying rent,

which could essentially be a mortgage repayment. Honestly, less cookies, more property. Yeah, I know. Well, listen, let's get a boomer in. So we found a boomer on the street. We held up a sign that said, we need Boomer. Her name is Ellen. She's a gorgeous Boomer.

Anyway, we'll see what car Ellen drives and what her mortgage set up is like. I'm a millennial, so are you, so we can give that side of the argument. Now, V, we have a guest in studio. We do. I'm excited for this. Very well-dressed. Ladies and gentlemen, please welcome the baby Boomer, Ellen. Hello, Ellen.

Hello, Mitch. Hi, Victoria. Hello. Thanks for coming on our show. Oh, delighted to be here. I don't know why, honestly. Well, I really do have to clear something up. Uh-oh.

Oh, my God. It's a Mazda CX-5. Yeah, okay, that's a boomer car too. That's a boomer car. What's your mortgage set up like? Do you have a house? Do you own a house? When did you get your mortgage?

Give us your sort of cash history. Certainly. First house purchased in 1972, in actual fact, was six times my husband's salary at the time. Oh, so she bought a real big house, Mitchie. No, 11 squares. Oh, my gosh. Wow.

So had that house for 45 years, served as well, had my extensions done to it, mortgaged twice. The first mortgage, which we paid off in 11 years. Wow, 11 years. V, is that normal? No, absolutely not. That is very impressive. I don't think you could do that,

what Ellen has done in today's times, right? Look, you absolutely can. And I think that one thing you guys probably don't know a lot about is that I actually do own a mortgage broking company. So I do work in the mortgage space quite a bit. And I feel like it's totally possible if, as Ellen is saying, you put your mind to it and you're on the same path and you're on the same track. I mean, you're not going to be able to buy a $1.7 million first home and then all of a sudden be able to pay it off. I think it's about being really reasonable with what that first home looks like and what that actually means today.

And I think that a lot of people today really want, especially millennials, they just want their dream home immediately. And that's just not something that's reasonable. often we have to go into a smaller home that becomes that stepping stone to either use equity in it to get into your next home or to sell that property for a profit to then have more of a deposit for the next step. Ellen, you mentioned before that your husband and you bought your first home for six times your husband's annual salary. Was that a really big decision at the time? Was that like within budget? Was that a stretch? What did that look like? Terrifying. Yeah, understandably so.

However, it was about trust and faith in each other. And because we had that plan, we knew what we had to do to achieve it. And also, it comes down to what you're willing to do. We only went out to dinner or had takeaway once a year. Okay, you don't need to point at me, Ellen. When you say that, Ellen, you don't need to look me directly in the eyes. Once a year. I used to also make most of the clothes.

I did all of the cooking. I made bread before even making your own bread was cool. Wait, wait, wait. You didn't TikTok it, Ellen? What are you talking about? You didn't film it? No, look, I see glimpses and things that happen with millennials that we experienced as well,

but in a slightly less hectic, demanding world. I've got one last question, though. What does that mean today? So you made a whole heap of sacrifices. Today, what does life look like? Life is comfortable. We worked hard and that's the thing. I think it wasn't all play and it hasn't always been all play

and it still isn't. I need the CX-5 to drive teenagers around in. But anything worth it is worth working hard for. Put that on a tea towel. Yes, anything worth it is worth working for it. I think that is a beautiful place to leave it, Mr Mitch Cheery. This is She's on the Money Radio Show. V, I'm falling more in love with these Crocs, by the way.

Sorry. Victoria's wearing Crocs if you're just tuning in. Honestly, Crocs are an underrated pair of footwear. I'm almost sold. Hey, we're about to do a Money Dilemma. Every week we bring someone's financial story on air, get Victoria's advice on what they should do. So Anthony sent us a DM.

He says, hi, V. I have a mortgage and it's killing me. Sorry, I'm very upbeat for this kind of message from Anthony. The mortgage is killing me. And Mitch is like, yay. Hi, V. I just can't seem to make ends meet. I've moved out of the city.

No, it's very serious. Into the burbs. I'm traveling to work every day. It takes me an hour each way. My mortgage is $3.8 per month, and he earns $6.7. So it's very hard. He's a qualified personal trainer. I have an amazing business idea.

He knows he can resell his home now and make a profit and perhaps use those profits to start up his own business. He knows it's a risk, but he's tired of working so hard, getting nowhere. He's 34. He doesn't feel like he has a life. Should he continue to get the mortgage paid off and sacrifice his dream, or does he take the risk? I feel like this is something that so many people in our community

are struggling with at the moment because things end up being really tight. So doing some really quick maths. Victoria's got a calculator out on her phone. All right, put your head in. But if you are earning $6,700 each and every single month and your mortgage is $3,800, that leaves you with about $669 each and every single week to live, which sounds like a lot of money, but it's actually not.

Because you take out some groceries, right? Mitchie, what are we spending on groceries? A week? Not you personally. $150, $190? Yeah, right. So we're spending $150. This is taking into consideration one person.

Like I don't spend $150 on groceries. I know it's a bit harder. People with kids would be spending even more. He's a personal trainer. He's got a lot of protein in there. Then we're down to $500 a week. That's not savings. That's just $500.

We haven't bought anything. we then have thousands of dollars in car registration and insurance, insurance for the home that you've just bought. We would then have things like our water bill, our electricity bill, our internet, our phone, and most average bills come in at about $1,500 each and every single month. So that's basically wiping out absolutely everything, and he can't even buy a pair of Crocs with that.

Things are tight. Yeah. So do you think he should, is it smarter for him to just keep paying off the mortgage, stay in his job, or should he try to sell the business, like you said, and offset it? Like, it's a big risk. Well, it really depends on what your values are, and I think that that's what we need to go back to.

Not everybody has to own property to be successful in life, and I think that there's just this massive misconception that in order to be successful, you must purchase a home, and I felt that pressure, and I feel like you start to feel that pressure once you get into your 30s, and as we know, Anthony's 34, to actually be successful in that space. And it just makes no sense because wealth is actually really private. It is something that is not on show. And I think a lot of us just assume that having a home means that we're successful. But in the way that he's explaining

his budget and what his mortgage is costing him, he's not financially able to get ahead in any other way than paying off his mortgage. So that's actually putting a lot of eggs in one basket to say we are betting that him paying off this mortgage is going to mean that at the end of this mortgage period he is going to be in a really strong financial position and something i always say and i know that this is lame as well but i don't think that your family home should ever be considered your best asset because in order for it to be considered an asset you have to sell it so i think the moral of this story anthony is don't listen to stereotypes and do your own thing boo your personal trainer you do you you do yeah it's the she's on the money radio show welcome

back across the country with victoria divine australia's number one finance podcaster she's here in studio i'm mitch cheery uh here as well time for this super saver saturday all right every week victoria gives us some sneaky little tips on how to keep more bucks in your bank account victoria i will say i actually have implemented quite a few of these and whenever i have like a win of my own i write it down i go i gotta tell v you text me you're literally like money win didn't get a parking fine for parking in a loading zone. Like, Mitch, that's not the type of money win that we're trying to promote on this show.

Yeah, I think I've got the definition wrong. But anyway. That's all right. A money win is a money win and we celebrate everything in this community. All right, what do we have? All right, this week I have a number of money wins for you. All right, first tip though, it's for Aldi.

We love Aldi. We love Aldi wine. You guys know I love the Aldi Lemuel Rosé. 10 out of 10. Amazing rosé. It's like 10 bucks a bottle. But you know what's even better? $4.99 a bottle.

We have recently, in my house, discovered the South Point Estate Pinot Grigio. It just took out the top prize for the double gold at the Melbourne International Wine Show, and it's $4.99, Mitch. Jeez, I love a good Pinot Gris. Turn up to the family dinner on a Sunday with a bottle of that, and you're going to be very popular but also very financially savvy. The next tip I've got, though, is Airtasker, and it's not using Airtasker in the way you would, Mitch,

which is to get other people to do stuff for you because you don't want to do it. It's actually you using Airtasker and picking up random tasks so you can earn like an extra $100 a week, which would work out to be just over $5,000 a year. That can be an absolute money win. And there are so many different types of tasks on there that don't require any kind of professional skills.

There's an app for everything. You've got a giant penis. OnlyFans, guys. There's money there. There's money to be made everywhere. Yes, yes. All right, next one. You wouldn't know about that, though.

So tip three is the super cool... Excuse you, I'll say. Turn your airdrop on. No, thank you. I am over and out. Okay, should we wrap up? No, no, no, I have one more money win for you. Hit me, baby.

It's from Audi, and I discovered it this week. How much is this Scandinavian brand paying you? I think they're German, but that's okay. Scandinavian is Ikea, but I'm obsessed with this cream from Mecca. It's called the Sol de Janeiro. See, our producer's now nodding at me. I've got the Sol de Janeiro in the yellow bottle. Guess who's duped it?

Audi. Audi has duped the Sol de Janeiro entire range. Wow. And it's $4.50. Also, after a couple $4.99 Pinot Gris from Audi, you won't know the difference. Exactly. It all smells the same.

You really won't. So I'm going to go pick up my La Mule Rose and some moisturiser and Audi is going to thank me later, honestly. They get so much free promo for me. And have a solid weekend. And we'll be back next week, everybody. I'm sticking around for Life Uncut radio show next. Otherwise, Victoria Devine, we'll see you in a week.

See you later.