Opinion Politics (warning, may contain political views you disagree with)

[poshman]

I wouldn't say they run a tight budget, but her husband is one the hardest working tradies I've ever known so he keeps them afloat. He is far less interested in where they live than she is, but he's terrible with money. Lots of fancy cars and water sport vehicles when we were all early twenties. Was a lot of fun, but he needed her to provide some focus.

No super payments, no investments for the future. Clock is ticking too.



Let's say you were leaving home with a job that paid you $x and wanted to find the cheapest place you could afford to live, where and what would that cost? Then how much can the minimum spend per week on food and bills be?

I'm trying to work out if building apartments with six bedrooms would be worthwhile for bulk shared housing.

The loss of time in your twenties is somewhat normal, although costly for compounding. As long as there isn't a huge trail of debt carried into the next decade or so from cars, boats, jetskis etc. Heaps of fun but the stress burden isn't the best.

Re: Super payments and investments. I work with a lot of tradies with my business. Spoke to at least 500-600 in depth an had 70ish as clients. Only one paid himself super before I worked with him and that was sporadic. None had investments. Scary.

How old is he? The goal is to have the business running with him not on the tools long term as that doesn't last forever.

 

[poshman]

Let's say you were leaving home with a job that paid you $x and wanted to find the cheapest place you could afford to live, where and what would that cost? Then how much can the minimum spend per week on food and bills be?

I'm trying to work out if building apartments with six bedrooms would be worthwhile for bulk shared housing.

I personally stay away from building anything in real estate, unless it was a 'forever home'. Which really means a ten - twenty year home.

I'd encourage you to look at the stuff from the property couch. Go over a lot of basics and get in depth.

The issue with building as an investment is the developer gets a lot of the value and then the owners usually wait for the value in the area to appreciate as services develop and the area matures. There are exceptions though.


To your question:

Budget wise, what I have seen is that your home, mortgage, insurances and utilities should not be more than 25-30% of your net income. Most people I talk with it is more like 45-70%.

I have a four person household - Me, Wifey, 2 girls (3.5 and almost 2). We are fairly frugal but not completely stingy (my Asian friends say we are 3/4 Asian - this makes me proud haha) and we spend around $7500 per month including our mortgage. Mortgage $1822 per month.

We are stacking money in the offset and will invest in starting another trades business this year ($35-55k) and we put $1-2k per month into index funds.

 

[poshman]

The list is long however one major financial mistake I think young couples with kids make is getting get sucked into building mansions in suburbs they can't afford. They saddle themselves with debt that is way higher than their income would dictate and takes them far too long to pay off.

Consequently the extra contributions they could have made into their superannuation when the house is paid off doesn't happen.

Part of the motivation for this is to keep up with the more wealthy parents at their school and not just restricted to their house. They also overspend on cars, clothes, overseas holidays etc etc. Seen it happen at lot when my kids were young.

These are a lot of my friends. They look a lot wealthier than me on appearance but are stressed (husband) and it seems that after three or four years their wives want more holidays and car upgrades.

If you don't own a business (even then I don't bother), most people should keep a car at least 10 years. And now you can keep them easily for far longer they are made so well.

My friends rotate cars every few years and the new cars are always more expensive models than the previous one. In the same catch ups that the husbands tell me they are stressed I also get teased about driving my 2013 Kluger.

Do you think people should look at percentages or wealth rather than fixed figures when considering what they can afford?

 

[poshman]

Some big mistakes I made:

Not knowing enough about money or knowing wealthier people when I was in my 20's. It isn't an action (and there were a lot of dumb things) mistake, but it costs people a lot. I think I would have a lot more put away if I knew how money worked from an earlier age.

Mostly I have found that a lot of them are willing to share and really cheer you on if you are half decent to them.

 

[King Huskii]

What is it with lefties hating on Christians of late while simultaneously giving Muslims a free pass ?

Who is hating on just Christians?

Some people are very touchy

 

[King Huskii]

George Carlin makes me laugh

He's funny as!

 

[King Huskii]

An honest discussion begins with you not falsely attributing views to me. It does not begin with me refuting views that you falsely attribute to me. Cut the s**t out.

We know he's not fun at parties but one of those guys at parties who will always have the last say and others will end up walking away and cracking a beer with a different group of people just to chill out.

The entire thread is totally dominated by him and he is never wrong and will argue everything to the enth degree and also twist things when he is cornered on his nonsense.

 

[Taylor]

Some big mistakes I made:

Not knowing enough about money or knowing wealthier people when I was in my 20's. It isn't an action (and there were a lot of dumb things) mistake, but it costs people a lot. I think I would have a lot more put away if I knew how money worked from an earlier age.

Mostly I have found that a lot of them are willing to share and really cheer you on if you are half decent to them.

I wish I had started putting aside even $5000 a year to invest in something back in my twenties other than the mortgage.

The trade friend of mine is later thirties. His wife's plan for their financial future rests on them building a real estate portfolio that they can live off the rental income. So far they own one home and have the better part of a million dollars in debt on it, although they do have quite a bit of equity in it now so it's not entirely a black hole of debt.

My own personal plan is invest whatever spare chunks of cash we have, along with owing the investment portfolio every dollar it makes every year so that it grows by at least the amount it generated each year.

It averages 8.6% a year in dividends. Part of me wishes I had borrowed more money during covid when we mortgaged the home a second time to pay for someone else to move out of their abusive relationship and tipped a bit extra into the investments.

I am very worried that the median super values for people are nothing close to what would constitute the ability to retire.

 

[poshman]

I wish I had started putting aside even $5000 a year to invest in something back in my twenties other than the mortgage.

The trade friend of mine is later thirties. His wife's plan for their financial future rests on them building a real estate portfolio that they can live off the rental income. So far they own one home and have the better part of a million dollars in debt on it, although they do have quite a bit of equity in it now so it's not entirely a black hole of debt.

My own personal plan is invest whatever spare chunks of cash we have, along with owing the investment portfolio every dollar it makes every year so that it grows by at least the amount it generated each year.

It averages 8.6% a year in dividends. Part of me wishes I had borrowed more money during covid when we mortgaged the home a second time to pay for someone else to move out of their abusive relationship and tipped a bit extra into the investments.

I am very worried that the median super values for people are nothing close to what would constitute the ability to retire.

It is a good thing to pay down the mortgage, however, I think having an offset you can use for leverage and investing in opportunities can be a better thing. As long as there are rules in the household in place. A mate's wife wanted to do a girls trip and he disagreed with the budget and she just took it out of the offset without saying anything.. They didn't stay together much longer.

My wife grew up in a upper middle class family and the differences are massive re: financial literacy. They expect to have a certain amount in savings, minimum. And to invest even a little each year.

I would encourage your friends to pay to get some solid advice and really plan out the next steps. It is amazing what being on the same page and plan can do. Seeing it all mapped out can help a lot with spending and where best to send the money.

If you can grow your investments each year by at least the amount it generates you will be winning big in a few years time. It may be difficult to maintain at a certain point, but it will be fun trying.

______________

Re: Bolded

8.6% is great! if you can keep that average you are onto something very nice there!

It is so good you were able to help someone in that position, that isn't an easy decision or process to go through. Good friends are priceless.

___________

I have the same concern for most people. There is going to be a lot of people in their fifties suddenly freaking out because they realise they won't have enough in there. Or even close to it. Especially when they realise it will be taxed.

 

[poshman]

Another personal mistake, Taylor reminded me about it. Was not understanding how much money I had, and then loaning money thinking I was fine.

This was a while back, more than a decade. I had saved $23k and a friend came to us saying she needed $9k for a few urgent things (they were genuine). I thought about it, agreed she could pay it back slowly and thought I was all good as I had $14k left over.

In the course of six months more things went wrong with cars, phones, computer, air con etc and that number was at $5k. It happened in what felt like the blink of an eye. And I lived with stress for the next six to twelve months because I didn't want anything else to break or need replacing etc.

It turns out I didn't really have the money to give, not really.

Now we keep a six month emergency fund in the offset at all times. It is never touched outside of true emergencies and if touched it is topped up as a priority. Anything we give to help or support over that we have to do from other savings. If something happens to me I don't want the wife and our girls to have any less than six months emergency fund to cover all the extras.

This is probably not a financial mistake and more a money mindset and understanding how it affects stress and quality of life post. Anyway - I hope this makes sense.

 

[BanjoRules]

Do you think people should look at percentages or wealth rather than fixed figures when considering what they can afford?

I think the process should start in your late teens.

Work out what your goals are, mine was to marry, have kids (as many as I afford and my wife agree to) build a family, hopefully provide a decent education and upbringing to my kids to do similar. Sadly these goals no longer are a driving force for many kids today. A huge problem.

People should then learn basic Excel skills and start doing projections on how much income you need to achieve these goals. Work on buyng a reasonable home, car etc, work in inflation etc etc.

Once you have a starting income work out what you need to do to achieve that income, make the sacrifices necessary and get to work.

There are many variables you can change if your income falls short including ways to increase your income.

I've used this system for my whole life so far. It works !

 

[Taylor]

This is probably not a financial mistake and more a money mindset and understanding how it affects stress and quality of life post. Anyway - I hope this makes sense.

Your perspective on the amount of savings you have available as a safety net is appropriate, the reality for a lot of people seems to be far worse. I don't know how much of this data is reliable given the survey has been extrapolated out to the entire population.

Millions of Australians with less than $1000 in savings

www.9news.com.au

 

[poshman]

Your perspective on the amount of savings you have available as a safety net is appropriate, the reality for a lot of people seems to be far worse. I don't know how much of this data is reliable given the survey has been extrapolated out to the entire population.

Millions of Australians with less than $1000 in savings

www.9news.com.au

It seems to line up with surveys from the US. They did one on the number of people who can afford a $1k emergency, and it was 70% couldn't.

The safety net isn't sexy, it is great for peace of mind and lets us invest happily. It is a big win once you have it.

 

[Taylor]

It seems to line up with surveys from the US. They did one on the number of people who can afford a $1k emergency, and it was 70% couldn't.

The safety net isn't sexy, it is great for peace of mind and lets us invest happily. It is a big win once you have it.

Quite a lot of the people I went to school with can't trust themselves with thousands of dollars in their accounts, they'll eventually come across something they want and they've definitely got the money to pay for it right there so they buy it, they have it and now have no savings.

There was a time I was considering having them "loan" me their surplus money and I'd hold it/invest it on their behalf so there was another hurdle in the way for them accessing it - but the risk is too high.

 

[poshman]

Quite a lot of the people I went to school with can't trust themselves with thousands of dollars in their accounts, they'll eventually come across something they want and they've definitely got the money to pay for it right there so they buy it, they have it and now have no savings.

There was a time I was considering having them "loan" me their surplus money and I'd hold it/invest it on their behalf so there was another hurdle in the way for them accessing it - but the risk is too high.

Yeah I have a lot of those friends and some family members like that. Go through a stressful time, get some money in savings and then book a holiday and spend it all as a reward. And the cycle continues.

They have been away many more times than my wife and I. A friend just asked me for some money and he and his wife had just got back from Bali. You either have the difficult conversations or give them the money but tell them you won't be able to loan or give them money again.

 

[Taylor]

Yeah I have a lot of those friends and some family members like that. Go through a stressful time, get some money in savings and then book a holiday and spend it all as a reward. And the cycle continues.

They have been away many more times than my wife and I. A friend just asked me for some money and he and his wife had just got back from Bali. You either have the difficult conversations or give them the money but tell them you won't be able to loan or give them money again.

It's why I think there are people who will always be in financial trouble, our household has a year of savings just in case but my cousins have nothing saved at all - even spending the GST money her husband takes in on his business. Fortunately for them when he was injured she could tall the ATO and tell them that their $40,000 bill would mean none of their children would be able to eat - so the ATO just wiped it all.

I'm very glad that happened for her but she hasn't learned anything from it.

 

[poshman]

It's why I think there are people who will always be in financial trouble, our household has a year of savings just in case but my cousins have nothing saved at all - even spending the GST money her husband takes in on his business. Fortunately for them when he was injured she could tall the ATO and tell them that their $40,000 bill would mean none of their children would be able to eat - so the ATO just wiped it all.

I'm very glad that happened for her but she hasn't learned anything from it.

Business owners spending GST and not putting aside from tax happens in greater than 50% of the businesses I talk with.

And no, getting the tax wiped won't help them long term. It is why handouts often don't help long term. Money is often a behaviour issue, more than an amount or salary issue.

A year of savings is great!

 

[poshman]

Former immigration detainee released in wake of High Court decision arrested after brutal home invasion

A former detainee released after a landmark immigration High Court ruling is charged over a violent home invasion in Perth.

www.abc.net.au

How very sad. Why would they need to beat a 73 year old woman like that? Poor lady. I hope they get life if we can't deport them.

 

[Taylor]

I maintain that Australia does not have a duty to protect international people if they have proven to not be worthwhile members of our society.

We need a bill of rights in the constitution clearly drawing a distinction between a resident of Australia, a citizen of Australia and an international alien - with clearly distinct rights for each group.

 

[wahooo]

And here in lies the problem with modern day 'conservatism'. It's been hijacked by populist nationalism.

A true conservative would roll over in their grave at the thought of abandoning the principle of equality before the law.

Yet, here we see people who have decried the 'leftists' for seeking to undermine fundamental principles of our society advocating for enshrining inequality before the law.

A violent and ghastly crime of this nature should evoke an emotional response but the answer is not discarding fundamental principles. Justice can only be served if all are equal before the law.

Shame.

 

[Taylor]

And here in lies the problem with modern day 'conservatism'. It's been hijacked by populist nationalism.

A true conservative would roll over in their grave at the thought of abandoning the principle of equality before the law.

Yet, here we see people who have decried the 'leftists' for seeking to undermine fundamental principles of our society advocating for enshrining inequality before the law.

A violent and ghastly crime of this nature should evoke an emotional response but the answer is not discarding fundamental principles. Justice can only be served if all are equal before the law.

Shame.

Can you be more specific?

If you're talking about me wanting direct rights listed in the constitution making people who are not Australian and not welcome in Australia also then not falling under Australian protection then I think you're way off the mark.

Australia has a duty to all of Australians first. The people who pay the price for any other position are the Australian women and children hurt.

 

[poshman]

Can you be more specific?

If you're talking about me wanting direct rights listed in the constitution making people who are not Australian and not welcome in Australia also then not falling under Australian protection then I think you're way off the mark.

Australia has a duty to all of Australians first. The people who pay the price for any other position are the Australian women and children hurt.

The fact this is seen as a right wing thing shows you how far the left has moved left. Clinton and Obama have said exactly this many times. What should be seen as madness or far left is people who are promoting open borders. It is also deepy uncaring and heartless. If we can't look after our own sick and homeless or needy how can we take on more?

 

[BanjoRules]

If we can't look after our own sick and homeless or needy how can we take on more?

Look after and protect. How many criminals, rapists and all manner of bad people that don't belong in any civilised society have illegally entered the US and remain in the last 2 years.

Obama was the biggest repatriator of illegals. What has happened since then.

Biden and his supporters have a lot to answer for.

 

[stax on the mull]

Just wondering, when it comes to undesirables from countries that we don't have a cultural alignment with, did Australia deport Nicolaas Bester, the paedophile groomer school teacher from South Africa that sexually abused Grace Tame, then after his conviction continued to harass and threaten her online?

 

[Taylor]

Just wondering, when it comes to undesirables from countries that we don't have a cultural alignment with, did Australia deport Nicolaas Bester, the paedophile groomer school teacher from South Africa that sexually abused Grace Tame, then after his conviction continued to harass and threaten her online?

Oooo good point. At what level should access to Australia be revoked?

If Bester was on a visa he should have been shown the door immediately.
If he was already a permanent resident - can we revoke that? Would you want that status to effectively be a probationary period where crimes above a point are warranting expulsion?
Is he a citizen? Can that be stripped from someone who took up citizenship later in life, and can that be applied to people who acquired it by birth?

I'm content with him being removed from society on the basis of poor character.