Can I Salary Sacrifice My Way to a Million Dollar Retirement?

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She's On The Money 44 min 4 speakers 8 chapters transcribed 10 days ago
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What is superannuation and why is it important for retirement?

Victoria Devine 0:00
She's on the money.
Bec Syed 0:02
She's on the money.
Natasha Bamblett 0:10
My name's Natasha Bamblett. I'm a proud First Nations woman, and I'm here to acknowledge country. Hello, beautiful friends. We gather on the lands of the Aboriginal people. We thank, acknowledge, and respect the Aboriginal people's land that we're gathering on today. Take pleasure in all the land and respect all that you see. She's on the Money Podcast acknowledges culture, country, community, and connections, bringing you the tools, knowledge, and resources.
Bec Syed 0:32
For you to thrive. Hello and welcome to another deep dive episode of She's on the Money, the podcast that helps you feel more in control of your financial future, even if that future seems years or even decades away. I'm Beck Side, and joining me today is the brilliant Victoria Divine to discuss a topic that affects us all. Well, everyone living in Australia, of course. I'm talking about superannuation.
Victoria Devine 0:52
Superannuation. Super annuation. I say superannuation. But there's no but there's no B superannuation.
Bec Syed 1:01
Superannuation. But I say superannuation.
Victoria Devine 1:03
I mean you you enunciated correctly.
Bec Syed 1:06
Oh that's the first time ever.
Victoria Devine 1:08
Well done. Thank you. Well done. I don't know if that's the right way because you know like how some words I know. Yeah, anyway. Advertisement, sorry. That's a different story. Or like some American states. Yes.
Bec Syed 1:22
I can't. I can't. Anyway. Too many pronunciations or uh potential. What about superannuation? Okay, so well, more specifically, how one might get their super to work harder for them in the long run through salary sacrificing. Oh sexy. Because if we've learned anything, it's that we're often rewarded for the duration of our investments, not simply the amounts we contribute.
Victoria Devine 1:43
You have learned a lot. I obviously am obsessed with superannuation. I love talking about it. I love being involved in it. I love being able to calculate at the end of a financial year how much additional I'm able to contribute to like make my cap, which is just really fun, but it's an absolute privilege to be able to do so. But at the same time, right now money is really hard for. people. Yeah. Yeah. And I'm finding that conversations about superannuation are slipping. And we need to be bringing them back to the forefront. Because if you've got no cash and you've got, you know, a really strict budget and you're just really scraping by, getting your super in order is something that you can usually do for free to put future you in a better financial position so that you don't have to be as stressed and you're still making money.
Victoria Devine 2:31
Yes. Like you can still make your money work for you, irrespective of the situation that you're in right now.
Bec Syed 2:37
That's so true. And knowing that kind of makes you feel really empowered, even if you are kind of living paycheck to paycheck. So, well, I feel like we've discussed superannuation a few times on the podcast, but I'm not sure if we've covered just how impactful salary sacrificing can be, depending on when you start. And I know a bunch of people in our community will want to know how it works.
Victoria Devine 2:54
Exactly. And I think I'll be really honest with you here. When I first started Shees on the Money. I was not in the financial position to be able to salary sacrifice. In fact, once I went out on my own and was a sole trader, I wasn't even paying myself any superannuation, even though I was on the podcast saying small business owners need to be paying their super because it's more of a do as I say, not as I do moment. Like I knew I was doing the wrong thing at the time, but I also didn't want to tell you that because I didn't want to give you The permission to be like, oh, it doesn't matter. But I think in the U.S. But I think in like hindsight, it's important to talk about this stuff too. Because if you're a small business or if you're a sole trader or if you're not able to salary sacrifice and you just have a salary and pay as you go job and you feel bad about it, you shouldn't.
Victoria Devine 3:41
Yeah. Because like we're all going through different seasons of life and sometimes it's harder and sometimes it's not.

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