It's Pay Day, where we ask Australians the money questions we don't like to talk about. We aim to demystify personal finance and normalise conversations about what we earn and how we save it — or spend it.

Before COVID-19 Maddy MacRae was $15,000 in debt and working low-paying service jobs to support herself while pursuing acting. Then during a lockdown in 2020, bored and out of work, she started posting to TikTok and it changed her life.

Today Maddy is a successful content creator, with more than 3 million followers across social media. For Pay Day she talks about the dangers of credit card debt, the classic Australian book that helped her get out of it — and how quickly life can change.

How would you describe your financial situation right now?

I'm living pretty comfortably right now! A few years ago I was in enormous credit card debt (I don't know if it really was "enormous", but as a struggling actor working part time in retail it absolutely felt enormous), but now I'm out of debt and have a savings account I'm pretty proud of. Being a content creator was not on my bingo card but I'm so grateful for it and for what I've been able to achieve in three years.

How was money spoken about in your house growing up?

My parents are big big savers, always finding a bargain, and always preaching about financial security. We would earn pocket money for chores around the house and when I was 14, I got my first job at Maccas to pay for a school holiday.

We were the type of family that only ever got a main meal when eating out — never entrees, drinks or desserts. I think that's been really helpful to me now with my mentality around spending and splurging, although I do enjoy a cheeky dessert here and there.

What did you spend your first paycheck on?

Probably a haul at Supre for a fluoro graphic tee and matching headband (I'm not proud of it).

About how much of your income goes towards your rent or mortgage each week?

About 40 per cent of my monthly income goes to rent, a sad reality of living alone in Sydney.

What has been your biggest financial disaster?

Having a credit card in my early 20s without having the means to pay it off. It felt like free money when it definitely DEFINITELY wasn't.

And this wasn't a financial disaster per se, but living and working as a creative in Sydney has been really hard financially until very recently. Acting doesn't pay great unless you make it big and for a very long time I was working low-paying hospo or retail jobs to support my dream. That said, I'm really glad I stuck at it because it's definitely paid off now!

What's your guilty splurge?

Online shopping for sure! I am so easily influenced by social media ads, it's terrible.

Have you ever kept a secret about money?

Mum and Dad had a coin jar where they would dump their coins in and I frequently fished out the gold coins to take to the school canteen every day. I needed my daily Zooper Dooper fix, okay!

How much was the last loaf of bread you bought?

I'm a Helga's mixed grain gal — currently going for $4.90 at Woollies.

How many bank accounts do you have? How do you organise your money?

I have a personal account and a business account. My personal bank account is broken into three: a big savings account that I try not to touch, a daily spending account and a "splurge" account. And yes, I've read the Barefoot Investor … to be honest, that's how I got out of credit card debt a few years ago so I still live by his "bucket" principles.

What are you saving for right now and how are you doing it?

I'm thinking about buying a property (yikes), so I'm chatting to a broker about what I can afford. My sister who just bought an apartment has recently shared with me a budget spreadsheet (who doesn't love a good spreadsheet?) so I'm eager to figure out my spending habits and see where I can cut back.

I'm mostly concerned about the mortgage repayments because it's going to be so much more expensive than my rent so I want to be prepared for that now rather than having a rude shock once I make my first mortgage repayment.

What's the biggest lie you tell yourself about money?

"I need to earn more money" and "buying a house is impossible".

If you could tell 18-year-old you one thing about money, what would it be?

Don't get a credit card until you know how to use one. Please girl, the credit limit they give you is too much and it's not there to just spend on anything. Also, definitely start making TikTok videos, it will literally change your life.

Maddy MacRae is an actor and content creator based in Sydney.