You are formally invited to a EOFY Tax party...

This is your formal invitation to the We Talk Cent EOFY Tax Special, in your airwaves on Wednesday 30th June 2021. Have you got any burning tax Questions? Now's the time to ask them! Dan & Blaize also reflect what they've learned in the last financial year.

The following is a transcript taken from Episode 35 of the We Talk Cents podcast. The transcript is created by AI software so it might not be perfect - please forgive any imperfections or grammatical errors.

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Blaize Pengilly  00:09

Personal Finance budgeting cash flow and investing don't have to be scary words. The We Talk Cents podcast is here to help you learn more about money and take control of your personal finances.

Blaize Pengilly  00:26

We Talk Cents podcast is not a financial advisor. This podcast is made for entertainment and educational purposes only. All information shared is of a general nature and does not take into account your personal situation. You should consider whether the information is appropriate for your needs and where appropriate seek professional advice from a financial advisor. For more information,

Dan Jovevski  00:46

 check out wemoney.com.au/disclaimer. Welcome, welcome. This is Episode 35 of the We Talk Cents podcast on dangerous risky and I'm joined by my co host Blaize. How you doing?

Blaize Pengilly  01:02

I'm doing pretty well. I think I've woken up with a slight slightly under the weather today. But still feeling great in my brain and heart. Is that the way to say not so much in my physical body? How are you going?

Dan Jovevski  01:16

Well Blaize you had to get well soon. We'll have a tag team. You and I haven't seen each other but we've had out bouts of feeling feeling off. So hopefully get better soon.

Blaize Pengilly  01:25

That's right. So yep, you were a little bit sick last week. It's May this week. But you know what? I I'm I think I'll get better quickly. And that's just as well, because we actually have a special announcement today. We are essentially I mean, you guys used it. If you're a home listening. You probably used to saying this podcast pop up in your feed on a Monday morning. And yes, it's Monday today. But this week, we are doing a bonus episode to celebrate the end of financial year. So this week, you get not just one episode today, your Monday regular episode. But you will get a special bonus party episode on Wednesday to celebrate the end of financial year, which I am obviously super excited for because I can't help myself when it comes to parties down. So then are you excited for the end of financial year?

Dan Jovevski  02:21

I'm excited. I'm excited likes and I'd say 99. And a lot of our listeners will also probably share the jubilation that it's coming up for tax time, people are thinking about their tax returns and getting into text mode. So all the accountants around Australia are celebrating their end of financial year Eve and getting into the new financial year. So it's exciting times ahead. And we've got a great show this Wednesday. So I'm excited by it. And I hope everyone else has to.

Blaize Pengilly  02:48

Yes, we will chat a little bit more on tax later. But now, let's talk news. Now there is something I saw this week, Dan, that I am. I think it's I think it's a good thing. But I would love to know your opinion and why it's happening. I saw an article saying that the super right the right that your employer pays superannuation, which has been 9.5% of your salary for quite a while, is about to move up. They're about to bump up to 10% as of the first of July 2021. So the New Year's Day of the new financial year. That sounds like a win.

Dan Jovevski  03:24

It's an absolute win everything superannuation was introduced in Australia in the in the 90s. It's been nothing but a great success. People call for savings. But hey, it's better to get into your retirement with a few brass kangaroos up your sleeve rather than having nothing at all. So 10% is awesome. And I still remember this is probably how old I am blows. But I still remember when the superannuation right was like 8%. So it seems to be ratcheting up and you know, 10% is quite a hefty amount. You know, if you're on a median wage, like 80 grand per year, 1000 bucks for savings, a grand over, you know, 30 year period, you'd be saving yourself up quite a bit of money over that period of time that you can rustle away in your nest egg. So you enter into a comfy retirement so Blaize it's a win for everyone.

Blaize Pengilly  04:13

Brass kangaroo. Is that a 10 cent coin or am I completely lost?

Dan Jovevski  04:17

No, we should probably have Joel Ken Dyer again, because he'll be able to let us know that the wonderful coin is presumably made from brass play. So it's a wonder light coin with a kangaroo on there. Yeah, so you can use that one. If you like.

Blaize Pengilly  04:31

I need to brush up on my coin slang terminology. Then there was another article that I saw this week that I thought was really cool. And well, it's actually it's not an article it was in an article. It's a graph and it's called ASX and chill which made me have a bit of a chuckle. It's a chart looking at the people that have stuck accounts stock trading accounts in Australia

Dan Jovevski  04:57

Was off articles really super interesting. So if I have a look at, you know, pride COVID, you know, if you think about who opened up stock trading accounts, 47% of them would have been people in the boomer generation, right. And then if you look at, say, Gen Z and millennials, that probably represented about 16%. But during COVID, that graph completely changed. boomers went down to about 90% of all accounts opened, and Gen Z's and millennials ended up being close to 50% of all accounts open. It's a pretty remarkable shift when you really think about it, because you know, it's it's become, it's become, it's become a thing become the thing that young people do. And if that COVID zoning celebrated that trend, and yet, move away Netflix, and welcome stock trading or a six inch chilling. So yeah, it's pretty, pretty interesting numbers.

Blaize Pengilly  05:48

Hey, you want to come over for some as extinction? It's got a bit of a ring. So yes, it's cool to see those numbers jump so much, especially for the younger generations. And hey, I've got to put my hand up. I am absolutely one of those percentages. I in November 2019, I did not have any of those accounts. And now you know, I've got my race. I've got my spaceship coin spot. I'm, I'm all over it. I'm not all over it. But I am certainly getting there. So I can definitely put my hand up and be charged as guilty for one of those millennials that has opened up a stock trading account in the since the pandemic,

Dan Jovevski  06:25

Congratulations on all those accounts opened. Sounds like you are quite a journey. Now. Let's transition into the tax party that we've got planned.

Blaize Pengilly  06:33

All right, let's do it.

Blaize Pengilly  06:40

TAX, three letter word. Very, very popular this time of year, Dan. And like we said in the intro, we're doing things a little bit differently on the podcast this week. So I would like you to imagine this episode as your formal handwritten invitation that is inviting you along to listen to our premiere event. The end of financial year Episode Four, We Talk Cents. Now, if this is imagine that the end of financial year parties like a New Year's party, or maybe even Christmas, if that's the case, then today is the day that you get to write your wish list. That's because we have an absolute tax Queen coming to join us. And she's going to answer all of your questions about that three letter word,

Dan Jovevski  07:31

Blaize. Looking forward to welcoming the tax Queen on the show. Tanya Christie is going to help us answer some questions that you've all got. And if you want to ask them questions, please send us a DM on Instagram at handle gateway money. And we'll queue up a questions for Tanya, or there'll be a link in the show notes where you can ask questions directly. For Wednesday, you're going to ask questions like can I claim the custom handkerchief that I made? Were in the office? It's my first year as a sole trader? What do I do? Tell us your tax questions. Nothing is going to be ridiculous. In fact, the more ridiculous they are the probably the better because everybody thinks about these things. You have all your questions that you've just thought about in the back of your mind come tax time, no question is off bounds. And we're looking forward to answering them on Wednesday.

Blaize Pengilly  08:17

I am so I'm excited to ask you a bunch of questions myself. And can you actually claim a handkerchief. Dan, I hope you asked me that on Wednesday when she comes in. Because I would love to know again, you claim your custom handkerchiefs that you watch the office? What can you claim? What can't you claim? What's the best way to go about claiming dents? Do you do it yourself? Or do you get an accountant?

Dan Jovevski  08:42

No, I used an accountant. And that really helped me out because I have a bunch of questions I answer for me, but I'm actually really interested Blaize because this year is going to be a full year for people that are knowledge workers that are working from home that are probably gonna have like a stack of questions about claiming things like utility bills or stuff that you do at home and how that all splits up. So it's gonna be really fascinating to say, you'd COVID or you work from home expenses and what can be covered off. So that's going to be my set of questions for attending this Wednesday. I'm sure others have got some similar questions, too. Yeah, looking forward to it.

Blaize Pengilly  09:17

All right. Yep. So if you've got any questions, any questions, anything tax related at all, please send us a DM. And we will ask you on the show and learn all about tax so we can really make the most of it and send off the end of the financial year with the bank.

Dan Jovevski  09:34

Just jumping in here, if you need a better picture of your finances, if you want to track multiple accounts and see where you're spending your money, then download the WeMoney app today, head to the Google Play store the Apple App Store and download WeMoney. And if you use the code podcast, you get to earn $5 simply connecting the eligible bank account. Yeah, back to the show.

Blaize Pengilly  09:54

That a couple episodes ago, we talked about doing homework because I'd learned something during the weekend, I'd signed up and started a crypto account, which I shared with you. Now for I thought we'd bring back the homework for this episode because I have a question for you thought it's the end of the financial year, why don't we take a look back and reflect about for us for ourselves personally, what something Have you either learned or achieved or accomplished in regards to your finances in the last financial year,

Dan Jovevski  10:25

What I've realized is power of compound interest. I know it's the thing that sounds obvious, and especially for us talking about it day in and day out. But, you know, thinking about my son like or thinking about his financial future and teaching him some really big lessons, and I thought to myself, Hey, how about we take the good stuff that we've learned at the show, and as I say, starting with the young, is start contributing towards my son's savings account and doing a ritual where he and I go to the bank and make a submission. And so he gets to develop the habits of getting some money from his birthdays and things like that, and then going to the bank and depositing that cash. And I think that's something that poured a lot of joy to me personally, because it I just realized that, hey, my financial plan, it's not just me, it's also going to be for my son. And that's anything I've ever had as a kid, I never had that opportunity to go and go and my mom to the bank, or would start up a kid savings account on my first bank account. I just remember going there. And almost the whole process myself alone was literally dropped the shops in goes grabbing every count. And I did. I don't think I had the money lessons that, you know, that I wish I had, especially when I was young. So hopefully that teaches and habits and I guess opinia through his whole life. Because, you know, before, I think what they say is before people are seven years old, they can't develop their long life habits. And I think it's more than that. I think he could also be, you know, potentially set up for, you know, a better financial life that perhaps I was so that that was my biggest takeaway for last financial year, haven't you? Because you've had a really big year and a great learning and growth theory. I'd love to hear it out what you would have changed or adapted in this financial year? Just past.

Blaize Pengilly  12:12

Thanks. Thanks, Dan. Just before I get into what I learned, that's really cool that you're doing that with your son. There is there is someone in the WeMoney community that regularly updates how they put their kids pocket money into investment accounts. And their kids. I think three and five I forget I forget how old exactly, but it's really cool to see them also jumping on the compound interest. Because time is like Lacey Phillips said last week, time is the great equalizer. So starting young really gives plenty of ample time for that amount to really grow up. So that's really cool that you're doing that. For me personally, this financial year. It's so funny to be reflecting at the end of financial year, because this is usually something I say for Christmas time, you know, but I think it is it is really good to reflect and take stock of what you learned because you're completely right this financial year, the last one actually has been a massive, massive change. For me in my finances. Personally, I started the year without a job. I had lost my job due to COVID. I had no backup money, I had no savings. I know emergency fund I was supported by centerlink for four months or so there. And then yeah, starting this show with you and learning so much about money has been incredible. And it's been so fun learning so much about money. And yet I didn't even know what compound interest was a year ago. So to be able to sit here now and talk about compound interest of view is, I feel like a big achievement of the epic leap from where I was a year ago. But I think the greatest thing that I've learned is the power of I would say the power of investing. It's been so exciting, doing small investments through micro investing in through a little bit of crypto lately. I think that's been really beneficial. And just realizing that it is achievable. It is doable for someone like me who doesn't know too much about money or doesn't really know where to start. It's great to see that it's achievable. And it's something I can access. And I think if you're if you're someone listening going, Oh yeah, I want to get better with my money or I want to do a budget or what I get better with my finances, but you keep putting it off. I will tell you the same piece of advice that I was told maybe three weeks ago, actually, this is not financial advice. I'll just repeat something that was said to me a few weeks ago by a friend. A friend of mine said please, what's the greatest thing you've learned on the podcast? And I said probably that I should put a percentage of my money in like I should invest or save a percentage of my age, pay that or save every week or every fortnight or whatever it is. And he said, Okay, great. Are you doing it? And I said, Oh, no, I'm not actually that's something I learned but I didn't actually do. And so yeah, he really called me out on putting into action, the things that I've learned and from that conversation with that friend, that's, that's when I started opening up my accounts and, and really getting involved in investing and saving and putting money away. So yeah, I think it's been fantastic to learn all the lots of the theories and lots of the reasoning behind things, but also actually putting into practice and sticking to a plan of how to spend my money and how to use my money has been super beneficial for me. So yeah, I would say all in all very successful financial and very, very successful financial year in that I've now got an active interest in money in my money, how I managed it. And yeah, learning net curious to learn more and become better with it over time as well.

Dan Jovevski  15:42

Blaize that is absolutely incredible. Can't say I mean, I'm not your mom or your dad, but I am proud of you. And thanks. I feel like your your personal evolution, your journey has been so fascinating to watch. And so you take actions and get involved in the community has been incredible and also on the pot as well. So I think all of our listeners are also very proud of you as well. So well done.

Blaize Pengilly  16:06

Thank you, Dan. And thank you listeners if you agree. It's been a it's been a great journey learning lots about money, and I'm so excited to see where we take the pot over the next year as well. So looking forward to it. Thank you for tuning in for this Monday edition your invitation your formal invitation to our event on Wednesday. It's been a pleasure having you listen to the show.

Dan Jovevski  16:30

Don't forget to send us your questions on Instagram @getWeMoney  or via the link directly in the show notes. And it is this Wednesday is only a few slips away. Please send in all your questions. Anything that you curious about come tax time. We're going to have the tax Queen answer them. And hopefully you can submit with confidence this new financial year and get your software return if you're eligible for one.

Blaize Pengilly  16:53

We will catch you on Wednesday for our bonus episode. Tax time baby. I'll bring the party poppers you bring the champagne,

Dan Jovevski  17:00

let's do it Blaize. I'm excited. See Then see you later.

Disclaimer:

The author is not a financial advisor and the information provided is general in nature and was prepared for information purposes only. This article should not be considered to constitute financial advice. Accordingly, reliance should not be placed on this article as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation.

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