The End of The World Is Nigh

L[Deactivated] on 07/04/2017 - 13:18

Sitting comfortably in a 'permanent' job on great money? Just done a reno? Big overseas trip? Huge credit limits?

Never thought it would happen to me. The vultures are circling. I'm in agency temp work paid by the hour. No sick leave, no holidays, public holidays = no pay. Mortgage, wife & kids, medical expenses, debts that would astound.

Each new assault on our life appears to be the last straw. Came very close to assaulting some outrageous arsehole at a sporting event recently.

Save your advice. I don't need or want any. Stick your 'I'm smart and you're dumb' comments where the sun don't shine.

Just interested on who here actually budgets properly, plans and accounts for every expense, and lives 100% within their means. I am working on this, and it is challenging when in tough circumstances considering I couldn't do it in the good times.

Financial

Comments

  • John Kimble on 07/04/2017 - 13:31
    +19

    Oh, I clicked on this thinking it was a reaction to the USA attacking Syria illegally…

    • indium on 07/04/2017 - 13:38
      +11

      lol same, after the first sentence I thought I was gonna read "well none of it matters anymore, we're all ****** "

      I overkill on managing my expenses, I document every cent I spend on a spreadsheet because when you right it down you realise that it was an unnecessary purchase or not and then don't make the same mistake. Sometimes I get lazy and don't do it and that's when I find my spending habits go back up and it's a reminder to start documenting expenses again.

  • geek001 on 07/04/2017 - 13:34
    +3

    Oh, I clicked on this expecting some religious nut job selling "discounted" bunkers..

    • [Deactivated] on 07/04/2017 - 13:44
      +4

      You wanna buy one?????

      • Kangal on 07/04/2017 - 16:39
        +2

        Sure, let's see what you got?

        Any variations in sizes, or custom jobs?
        How about a water purifier running on eneloops?

  • FiDad on 07/04/2017 - 13:50

    Thanks for letting us know Man.Never would have realized it otherwise.

    • [Deactivated] on 07/04/2017 - 14:13

      Thank you. Got a budgeting tool and have adapted even further through spreadsheets.

      Trying to implement the 'living off cash' method. So weird in this day and age.

  • John Kimble on 07/04/2017 - 13:54
    +4

    I doubt many people live within their means; especially people buying in Sydney at the moment!

    To answer your question about budgeting, I think it's similar to studying. Some people have a knack for it and some people don't. If it is important to you though (as with anything I suppose), you have to make the effort to do it?

  • weezlebub on 07/04/2017 - 14:00
    +5

    Hey chief, I'll throw in my 2c …

    Debt management is a tough one, I had a messy breakup and didn't work for 2 years, nearly had everything fall in a heap, but i picked myself up and sold some stuff as a temporary fix …

    So first thing first, look at your debt:

    • how many different debts? what's the interest rate?
    • you have a mortgage, do you earn enough that you can refinance and use your equity to pay down any outstanding debt? (personally, I'm thinking fixed rate, because it can't get much lower than it is now)

    Once you've addressed the old, time to look at your personal spending:

    • where do you spend your money?
    • now throw away those estimations and do it again, realistically
    • if you think you were realistic, next pay day, set aside the money you thought you needed and put the rest towards a bill (or give it to a parent to look after for you)

    Now you've got a baseline living cost and minimised your unnecessary expenses!!

    Bills, bills, bills:

    • if you pay by bpay, export your transaction histroy
    • work out your bills per year
    • separate that into a monthly amount
    • now align that to your pay cycle
    • pay off any overdue and attempt to put a month worth of bills into a savings account
      edit
      also look into your providers and usage to see if you can save anything

    Now you're not going to be surprised with any new bills and have effectively implemented your own bill smoothing!!

    On the flip side, if you own hardly anything of your house and you have a lot of debt, you could look into bankruptcy

    • [Deactivated] on 07/04/2017 - 14:09
      +1

      Appreciate the effort you've gone to. Did a budgeting course and working closely with a zero fee full service debt renegotiation group. Got all those controls locked down real tight. It's stopping casual spending that is killing me. I brought lunch and a bottle of home brand diet cola to work every day for 2 months and then cracked.

  • mskeggs on 07/04/2017 - 14:02
    +6

    I really feel for you.
    We had a decade when I was the sole income earner as my employer ran 5 or 6 rounds of redundancies.
    I was stuck in a 'permanent' job, but feeling extremely precarious, with the prospect of dramatic upheaval if I got the axe.
    While we had no debt except our fairly modest mortgage, we didn't have a good enough buffer of savings.
    Basically, we skipped a car refresh (now driving an 18yro) and instead of what would have been an overseas holiday was a week camping and locked that money away.
    I sleep a lot easier with half a year of salary in savings.
    We are a two income family again, and we are saving nearly all the second income, for things like a bathroom renovation, paying extra mortgage and extra into super.
    I hope you get back on your feet soon, but I don't think there is any shortcut except to build up some savings etc.

    • [Deactivated] on 07/04/2017 - 14:12

      Well done. It's the hard decisions e.g. your camping holiday that take the most effort - that sense of entitlement that you develop, and then there's your partner too.

      • Kangal on 07/04/2017 - 16:44

        You should really take the advice given above.
        Try to have some money/assets that can be sold quickly… at around the value of ~Half-Year's pay.

        I didn't even know about this strategy until much later, but have inadvertently been doing it myself.
        You really can sleep soundly knowing if something horrible happens… you can pick yourself up without being desperate.

        …..That or you just need to have a lot of family and friends that can support you in your darkest days.

  • Gronk on 07/04/2017 - 14:06
    +1

    I don't go to the extent of documenting things on paper or on a spreadsheet, although that might come soon enough.

    Before I buy anything significant I check our finances (banking app & bill calendar) to see how well we're doing - that normally helps me decide whether I really want something or not, it doesn't completely safeguard against impulse / un-necessary purchases but seems to keep us out of trouble.

  • [Deactivated] on 07/04/2017 - 14:18

    In case you missed it in a reply - currently working closely with a zero fee full service debt renegotiation group. Yes, read it again…..

    They even made me sign the fee agreement with zeros all over it.

    If you are in a circumstance like me - message me and I can provide details.

    • mskeggs on 07/04/2017 - 14:22
      +5

      Please double check the advice they offer. Unless they are a charitable body (there are some) they will be funded by commissions form the refinancing company, so may no give unbiased advice.

      • [Deactivated] on 07/04/2017 - 14:27
        +2

        100% Charitable funded 100% through donations. They are a religious organisation and have a large presence in the UK, NZ, and now reaching into Aus. Haven't tried to push the religion on us and as the full service debt centre is run in another state it's unlikely we'll get too much of that side. They provided four options and ruled out two, discussed the other two but recommended renegotiation for us. We were afforded the opportunity to seek independent legal advice before proceeding.

        Very early stages. They are calling off the hounds. Funnily enough - I used an ozbargain Kogan deal to change mobile numbers to stop the 20 calls each day!

  • seraphim2017 on 07/04/2017 - 14:19
    +5

    The cure for this is boredom, but it will take a very strong will to do so.

    Debt is a pain and esp. when things happen all at once, Now things are good we don’t splurge much and still maintain the habits we developed for the next time life decides to F us in the pie hole.
    The habits we had to make were:

    Write down every cent, I mean, every cent. Spent 50c on something, seriously, write it down.
    Whilst IN the situation (temp, medicals, debts etc.)
    Do you go to sporting events? $. Don’t
    Drink? $. Don’t
    Gamble? $ Don’t
    Smoke? $ Don’t (good time to quit, its incredible how much you give the gov for every $ spent on this stuff. )
    Eat out? $ Don’t
    Gym? $ Run/Walk/use free gym kit at the park instead (I ended up fitter so the gym is now just social)
    Coffee? $ Don’t
    Don’t carry cash if you spend it fast, OR don’t carry tap and pay (that’s worse) but just stick $10 emergency money in your pocket and try to make it last as long as you can.

    After a few months, treat yourself to a one off and don’t go nuts. Then right back on it, it becomes normal quickly enough.
    Speak to whoever you have debt with quickly to get a payment plan in place, you’ll get a better rate if they know they’d rather get back their investment plus some interest than nothing and write off a loss, this does work if you open dialogue with the bank fast.

    If it’s really bad, and you have home equity, downsize/downscale, and start again/lower down the ladder, better than falling off it altogether. If the house is huge and stretching you financially, ditch it.
    Basically, our life was already rubbish so the rubbish of having no joy was offset by the lack of guilt when doing any of those things, and when you see the progress you can make, it is better than a beer and guilt free. It’s the only way to improve the situation, other than also taking on a second job casually and saving every bit of that as well.
    Once in the clear, you do NOT earn 100% of what you take home, you earn 80%. Live to that 80% and accrue a buffer for the next time life sh4ts on you, because it will do so again, there is a reason they call nature a mother!

    Living within our means now is easy, and we have fun now regularly, but stick to the plan so we never descend back into the pit again. No one lives beyond their means, not for long anyway.

    Good luck!

    • Cluster on 07/04/2017 - 15:27
      +4

      "Drink? $. Don’t"

      I would modify that to 'Drink in a bar/restaurant? Don't'. A glass of wine costs maybe $8 in a bar. For that you can buy the entire bottle. You can easily and very cheaply make your own beer and save lots of money while not giving up a tasty treat.

      "Coffee? $ Don’t "

      Drinking takeaway coffee is a great way to burn lots of money in little portions, but a bag of decent coffee beans is as low as $12 per kilo. That lasts me around 2 months of a double shot espresso every morning.

      • mskeggs on 07/04/2017 - 16:30
        +1

        Homebrew was my choice for years.
        Grind my own coffee is still my only choice.

        • Kangal on 07/04/2017 - 16:46

          Tastes better anyways :D

  • [Deactivated] on 07/04/2017 - 14:22

    Thanks. Great advice. And well done.

  • [Deactivated] on 07/04/2017 - 14:29
    +4

    Appreciate the sincere posts people. I like this forum.

  • Skramit on 07/04/2017 - 14:34
    +1

    It's the same mental battle that fat people have with dieting - self control. Once you learn self control, you will get on top of your finances. Income is never the problem, spending is always the problem and 99/100 times it comes down to self-control.

    • [Deactivated] on 07/04/2017 - 14:46
      +1

      Oh great…..

    • Diji1 on 07/04/2017 - 15:13
      +3

      You're an 18 year old male studying a tech or engineering subject at University.

  • Diji1 on 07/04/2017 - 15:12
    +1

    Not a surprising story when average wages have been falling since the end of the 1970's and status and importance in society is dictated buy how much you appear to spend.

    • mskeggs on 07/04/2017 - 16:36

      Real wages (accounting for inflation) have been growing pretty well in Australia for all but the last 3 years or so (in the USA wages have been as bad as you say, but that gets you Trump and other disasters).
      See here for a chart:
      http://www.abc.net.au/news/image/5480758-3x2-940x627.jpg

      Even lately, when wages have been pretty flat, inflation has been so low that average pay isn't going backwards. The issue is housing and energy costs have soared so that people have less disposable income.

  • chumlee on 07/04/2017 - 15:27
    +1

    Your first line sums up my current life and worries me most days about job security particularly as I am not getting younger and that makes finding a new job harder i reckon

    As my reno is finished and my wife is getting back into the workforce i am trying to smash down my mortgage with rates so low.

  • ihbh on 07/04/2017 - 15:55
    +7

    R U OK?

    Seriously - the recommendation when there's trouble on a plane to put the oxygen mask on yourself first before you help others applies here. If you fall ill or whatever, then think of the consequences for the family.

    One thing against budgets is that they encourage hitting the budget like public service departments, when you might be able to do better than it. Obviously it's important to plan when the big bills come in, etc.

    Try changing your mindset from sticking to your budget to living sustainably. Hopefully that will help you find some extra to get the debts down over time, and then once you're in the clear and even when things improve, you'll still maintain your sustainable lifestyle.

    • [Deactivated] on 09/04/2017 - 23:08
      +3

      Thank you for asking. I have good days and bad. We are struggling on. The kids help keep you focused on what is important in life.

      I am having full and frank discussions with my GP.

      Sustainability. That sounds much better in the soul.

  • Master Bates on 08/04/2017 - 02:41
    +3

    Unsolicited advice incoming, I recommend reading Scott Pape's book for simple non-nonsense financial advice.

  • pjrhino99 on 08/04/2017 - 08:10
    +2

    Barefoot investor provides simple practical advice on managing finances. You can receive free newsletters or checkout website. He has written two books on managing finances, your local library might have a copy.

    https://barefootinvestor.com/blog/

    https://barefootinvestor.com/barefoot-weekly-newsletter/

  • HeWhoKnows on 08/04/2017 - 16:02
    +1

    Always live within my means. Thats VERY important! Credit card paid off in full at the end of each month. Totally Debt free.
    All the result of some good long term planning and making commitments/sacrifices such as buying investment properties and paying off ASAP when I was young. Living comfortable now. Bulletproof.

    • [Deactivated] on 09/04/2017 - 23:10
      +1

      Every word but your last impressed me.

  • ozbjunkie on 08/04/2017 - 21:06
    +2

    Live within means, and I cut up the credit cards recently as I'd rather use debit cards and reaffirm a debt free lifestyle.

    I have no mortgage, no wife and no kids… But, I echo the advice above.

    Drinking, smoking, unnecessarytravel, luxuries, unnecessary tech updates, I don't do.

    If eating out, do on an ozbargain budget, use Dimmi 50% off, or pub 241 specials.

    Let supermarket specials dictate your eating habits. Fruit is cheap, buy in season. Limit junk.

    Adopt fun yet cheap hobbies, running, beach swimming, nature walks, museums, art galleries, free lectures.

    Change the mindset that living frugally is missing out. You don't need to keep up with anyone. Just keep up your health and positive outlook.

    All you'll miss out on is the debt treadmill.

    I shave my head, do my own beard. Shoes on new balance 50% off sales. Other clothes from target or similar.

    PC hardware join overclockerAU forums and buy second hand.

    That's all I can think of for now.

  • straphlinger on 09/04/2017 - 09:36
    +3

    Two years ago we made the decision to move out of the city. Yes, finding work is tougher and the pay is less. We looked at it and went 50% less income is well off set by 80% less mortgage. For the price of a small inner-city unit we now have a house on 10 acres. Now our debts are easily serviced by one average income and we live comfortably. One of us has a permanent job and the other does contract work. We still enjoy going to the city (read: Brisbane) for a day or so. Now it's 10 mins drive to work with no traffic lights and a lot less stress. Now we have some cows, chickens and a large green house, this covers a lot of the grocery bills. Cheaper? Yes, but you still have associated costs to produce the fresh food. This change is not for everyone, but consider this, if your not happy with what you are doing/what you've got, only you can change it. (Sounds schmucky, but it's the way we approached it.) So yes, we live well, within our means. We plan the major bills/expenses and play the rest by ear. When the contracts are good, we splash out on holidays and complete some of the major projects (fencing, more cows, major home maintenance). When there are no contracts we sit back and plan the next project/holiday.

    • sparkles on 14/04/2017 - 09:31

      Agree with this. "Downgrading" is nothing to be ashamed of. If you can't afford the big house, get a smaller one. Can't maintain the expensive car? Go cheaper and become debt free. Can't afford in the city? Move out and perhaps even be happier (P.S. The people in the country are infinitely nicer and less likely to shank you both personally and professionally). You'll be better off reaching retirement with a smaller home, than the health affects of a lifetime of stress to pay for the big one.

  • DisneyPrincess on 11/04/2017 - 01:44

    How are you with excel spreadsheets? When we (myself & my husband) when through a tight budgeting period, we had an excel spreadsheet with 4 columns: date, income, expenses, account balance. The last 3 columns would auto fill, so you could keep adding new rows for the date & you can predict what your future account balance will be when you get a bill. It was really good for figuring out what dates to pay our bills, expected account balance in the future, and also make the most of the interest free period on your credit card (but still always paid off in full before the due date).

    I don't do this, but my brother puts absolutely everything on his credit card. Each month he goes through the bill & itemises each expense (utilities, food, petrol, going out, etc). Then you'll see exactly how much you spend & where it's going (and then figure out if there's anything you can cut back on). For example, if you have a big spike in insurance compared to last year/quarter/month it may be time to look at changing insurance.

    If you're good with excel, you can make it auto graph the numbers so you can see trends over time (hopefully increasing income and/or decreasing expenses). If you do this long enough, it's actually quite interesting to see this data graphed over years & years. Hopefully income should be increasing over years, how does it compare to annual inflation rates? Also the cost of insurance, groceries & petrol over the years too. He obviously has too much time, but gave me a graph on how much he spends on my presents (like down to the cent for b'day, Christmas, etc) and how there's been a steady upward trend the last few years.

    It is really quite interesting to look a this kind of data over time. I am a really big excel nerd, but I think if you can find a way to make budgeting interesting it won't feel like such a chore or as difficult to stay motivated.

  • sparkles on 14/04/2017 - 09:36

    You'll always be living on the edge as an agency temp. I've worked as a temp and would never take on a mortgage knowing I might not even have a job tomorrow/next week/next month. Working temp can tend to give you a constant feeling of always being one step away from the unemployment line. It's ever present, and not nice. Have you considered a permanent job to give you a little more security?

    • [Deactivated] on 17/04/2017 - 12:13

      Unbelievable.

  • HeWhoKnows on 15/04/2017 - 16:33

    There have been huge changes in the last week with Trump formally taking the US into war in both Syria and Afghanistan. Putin is outraged. WW3 is now on the cards. Whilst we no longer need to worry about nukes and nuclear fallout we have the MOAB and the FOAB to worry about now and neither the US or Russia will hold back on using these non-nuclear weapons of mass destruction.
    Start praying as the end of the world as we know it is nigh

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