Living pay cheque to pay cheque!!

well we learn habits and also how the world works from our experiences, which is probalby why some people follow the same lifestyle as those before them.

We aren't taught these things by others such as employers or school before employers, I thought most people did it this way, or had heaps of extra money.. The only people I saw saving would save to buy something and that was it. I never had a discussion in literal $ terms, just an ethical lecture about not spending money which made me feel guilty for going out & maybe having a good time.. Trouble was, if I quoted figures I spent, they were not high, just high for my low wage. My biggest mistake was moving out of home with enough $ to pay for bond & 4 weeks rent to my name...and moving out on my own to boot, no one to share any expenses with. Had a g/f spend a decent amount on my c/card to, so that put me back a lot too. It was basically then that I started repaying that that it started to drop. Of course, I wasnt going to tell too many people what happened, I told my dad it was about $500

I don't mind living paycheck to paycheck if it was all just for us to spend on whatever we wanted Have ppor paid off, rent covers IP loans, cash in current a/c for all the rates and bills. Then we just save money we make from our property deals and spend up every cent of our paycheck on ourselves.

wanttobewealthy- i find that really surprising since bank tellers deal with lots of cash everyday.

I don't like having less than $50k immediate cash access and not a line of credit either. Usually at least $50k to $100k in high interest savings and minimum $10k in current account. I don't like car loans since I view cars as a necessity plus we don't lose much money on cars so it's just another investment. We pay cash and you get the best deals that way too.

I know what it's like living paycheck to paycheck and it's really hard to save that way too. You reallyneed a higher paying job or work another part time job.

Sim said:

My wife is now running the staffing office for a large hospital and deals with all their pool and agency staff - if there is ever a problem with pays, they get a LOT of upset people - missed rents, missed mortgage payments, etc ... she was always amazed at how little control people seemed to have over their finances.

... but then again I guess most of them don't have interest payments approaching $30,000 per month coming out of their accounts

Click to expand...

I was just reading this thread and it reminded me of the time in my life when I left golf and worked in the hospital alongside my wife.

Then I read this post, Sim. Funny you should say this....

It was just after our son was born, I was a PSA (nurse assistant and gopher) in the ICU. Did it for 2.5 years until we moved to the USA. Talk about an eye-opener. If you're wondering why I did it;it paid ok if you milked all the better paying shifts and gave me more flexible hours than proshops, so more free time to look after the baby.

Anyway; one week, I totally forgot to hand in my time sheet. The pays go in to your account a week later.

So, on payday, I go for the pay slip - none. OOPS. No big deal; we can survive.

So I head around to the pay office to let them know I stuffed up and join the queue with other employees who have had pay problems.

I was standing behind one old nanna (another PSA - they all seemed to be nannas); she turned to me and asked why I was there.

When I told her I forgot to hand in the timesheet - hence no pay - she audibly gasped and looked horrified, and said; "Oh my god; how will you live until you get paid?"

So, imagine these poor old biddies; working like a slave from week to week, until they drop, working in a really cr@ppy job, and being one day away from broke!

BayView said:

I was just reading this thread and it reminded me of the time in my life when I left golf and worked in the hospital alongside my wife.

Click to expand...

You must be getting old and senile, Marc! You posted this same story in this thread already, 6 posts ago!

Lol @ marc!

hubby did the same once although he missed SIX weeks of pay. (forgot his fortnightly timesheets 3 times in a row). I gave him an earbashing about it, luckily we didn't have any loans at that point (saving up for our PPOR deposit). Now he gets paid automatically into our offset account so nothing like that can ever happen again!

ianvestor said:

Ha reminds me I was at a meeting with a body corp manager once and it was realised by both of us that my fees were way overdue. I said, oh I'll just pay that now thanks and spontaneously pulled $800 cash out of my pocket. She gave me a really weird look.

No bank stuff-up can wipe out the cash in my pocket

Click to expand...

When Young Master Berlina started childcare, we were expected to pay a $600 deposit. The credit card POS device wasn't working, so I opened my wallet and pulled out 12 $50 notes. The manager's eyes nearly fell out of her head.

VYBerlinaV8 said:

The credit card POS device wasn't working, so I opened my wallet and pulled out 12 $50 notes.

Click to expand...

Your name's not Faroukh, is it?

(Think "The Castle": "what is it with wogs and cash?" at 5:20 in this clip)

ozperp said:

You must be getting old and senile, Marc! You posted this same story in this thread already, 6 posts ago!

Click to expand...

Hey; that was back in November, Trace!

I can't even remember what I did yesterday half the time.

ozperp said:

Your name's not Faroukh, is it?

(Think "The Castle": "what is it with wogs and cash?" at 5:20 in this clip)

Click to expand...

No, although some of my wife's family comes from ethnica.

Talking about not getting paid...

At work we put in a timesheet for a semester 18 weeks, one of the girls I work with never approved hers so she didn't get paid for the whole semester. (Was only one day per week so 18 days pay in total)

Eventually she worked this out and informed our Manager but it was after the semester and the Manager had spent the money on other work things eg. furniture, equipment, stores etc.

The money had to come out of the next semester's budget which is OK but with such a small section I would have been calculating staff costs in my head and checking each month against the estimated wages bill.


Regards
Sheryn

belleran said:

I find it difficult to stand by and watch the way some close family members use their 'excess' money. It is just a different mindset. I'm not sure how much is genetic because I notice members of the same family seem to have a similar approach.

Click to expand...

It's not genetics...it's the sheep/herd mentality...monkey see, monkey do and all that...
And the basic fact that often money management isn't taught.

But I'm with you on that...it's very frustrating to watch how poorly family members utilise their money.

fokas said:

It's not genetics...it's the sheep/herd mentality...monkey see, monkey do and all that...
And the basic fact that often money management isn't taught.

Click to expand...

How true.

My kids are in grade 2 and prep. There is another family with children in the same classes as my 2. Their mother complains about the cost of the school fees and uniforms, but gives both kids $2 each EVERY day to spend at the canteen. Only when she is short of change do they "only" get $1.....so there is close to $20 per week on over-priced junk food, plus they get 2 lunch orders a week - so it's really closer to $35-$40 a week.

My kids have stopped asking me to "keep up with the Jones's". They do get money to spend on a treat once a week but that's it and know it's a treat. We started early with both of ours explaining what they could "choose" to spend their money on from toddler age - an ice-cream or merry-go-round ride, or save up and buy a toy type stuff.

I do feel sorry for the 2 kids who have cash - they think just because they have money they have to spend all of it every single day - not a great pattern for life, and a pattern that will most likely repeat itself.

Cheers
Buddybee

Kim5 said:

Had an interesting discussion with another work colleague today. There were a few of us sitting at a table working. She is new to our department. I commented about how I saw someones statement and they had just 73 cents to their name, and had a credit card bill of $2 K. I commented that I dont know how people live like that and that i wouldnt be able to sleep at night if I didnt have any money! I didnt tell her that they were on an income of $60 K gross!!


She thought it was all quite funny and was joking about he she went into negative equity to buy stuff. She said she was $500 overdrawn. She talks about how she likes to go on hoidays and that she's jealous that her friends are going away now and shes not. She buys her lunch everyday, buys a coffee in the morning, smokes. I talked about how I couldnt go on holiday if I didnt have any money, I'd feel too guilty to enjoy it. She said it doesnt matter and that she doesnt need money to go on holidays. I guess she meant she puts it on credit.


Now if she were to lose her job or get sick she'd be in big trouble, she has no money in the bank, she is in negative equity and I think I heard her say something about being in credit card debt, but I dont know how much.


The other day I mentioned that I have two bank accounts, and that I pay myself first before I pay for anything else, and I dont touch this 2nd account. I put in a bit from each pay. I said its a good way to save because you dont miss the money. She said a while ago she did something like that and she thinks its a good idea. Wander if she'll do it though, thats another thing.

Click to expand...

Turns out she wasnt in negative equity. She has never bought a house. She is just in debt


omg Here is the latest!! and I am quite stunned. Last week she briefly commented about looking for a place to buy and then today she was on the phone to an agent saying she wants to put an offer on a place. We chatted about it and she said that she had'nt viewed it but didnt care she just wanted it. I said I think its a good idea to look first so you can check things out etc.

She was sounding too desperate on the phone, the agent can smell her from a mile off because he knows how much she wants this place. She said she didnt care, that she wanted this place because another place she put an offer on a while ago someone else beat her to it. The asking price is around the $315 K mark. I suggested if she didnt mind paying full asking price perhaps start at around at least $5 K below and that way after counter offering the purchase price will end up around the $315-$320K mark. She'll probably end up paying $330 K the way shes going!

She wanted to see a lawyer to know what clauses to put in, but instead she made an appointment to view the property and I have a feeling shes gonna go like a bull at a gate and just jump in sign a contract. Before she left I said just make sure you put in the building inspection, pest and finace approval. I tried to talk her into waiting and thinking about the decision for a couple of hours at least after seeing the place.

Its like she has just gone out to purchase a flat screen tv or something, its a huge financial committment but no planning or research at all has gone into this at all. The other thing is she has no savings whatsover and is in debt. Her boyfriend is supposed to be coming back from overseas soon though. But he will have to look for work.

How is she going to go when expenses come up. I had a huge electrical bill just now for work I had to have done but am able to pay it because I didnt go and buy the hd tv that i would have liked, i still have my 2004 analogue I bought when I moved out of home to rent. I didnt buy the new lounge I was tempted to buy, and I didnt buy the bi-fold doors I was tossing up whether to buy or not and Im glad I didnt because I have had a few expenses since moving in in January, some I knew I would have but some were unplanned. But I'm ok because I have been saving hard and have been responsible with my money.

Thanks for the story Kim5, we need more people like that so the values of our IPs hold up. Plus imagine if everyone was well informed and knowledged up? There would be no money to be made. I love the masses.

omg i dont f****kin believe it!! the agent put it up by another $ 9 K since lunch time. It has around 300 views. She has shot herself in the foot if she really does want it. He thinks he can get top dollar now. She will end up paying $340 K now

Kim5 said:

omg i dont f****kin believe it!! the agent put it up by another $ 9 K since lunch time. It has around 300 views. She has shot herself in the foot if she really does want it. He thinks he can get top dollar now. She will end up paying $340 K now

Click to expand...

Heh. Did she end up buying it?

nope


......

she is now looking for a casual job to supplement her income. I asked why she wanted another job she said that she wanted more money to spend. She spends all of her pay cheque from her full time job I guess.

living pay cheque to pay cheque

travelbug said:

How very narrow minded.

Just because people live from pay to pay it doesn't mean they are stupid, waste money or don't know how to budget. Some families pay $250 a week rent and pay $150 a week on food (more if they have kids). There's $20,000 and they haven't paid electricity, bought clothes and other necessities.


I am a very good saver and never buy frivolous things.

There was a time 16 years ago when I was at Uni with 2 kids and my hubby lost his job. We survived because he went to garage sales and sold stuff he bought at the markets and I worked 2 nights a week. Yes we lived from pay to pay for 12 months. Luckily our mortgage wasn't huge and we escaped the then 17% interest rates.

It's not a good idea to criticize others when you don't know their circumstances. How old are you? When you grow up and get a family I'm sure there will be times when you can't save $100 a week.

Click to expand...

I agree with travelbug . Some people dont have a clue and deal with money spending luxuries finances stupidly, and then there are others who are genuinely and tirelessly trying so hard in so many ways, and may have extra genuine challenges that set them back they deserve so much compassion, encouragement, recognition and if we can give it- some relief at times.



Encouragement and understanding are so energising and scrutiny judgement criticism actually is very spirit breaking and deenergising and sets people back. it makes them able to do less than they could otherwise accomplish and progress in, whether for a few hours days weeks. If they have kids it doesn’t help their kids to have a parent whose spirit is needlessly broken by others who have never been in their shoes and think they know better. People remember how others treated them and what was said especially while they are suffering. It is easier to hear information if it is said with gentleness, otherwise so much is wasted on feeling hurt and defensive, so we actually are more effective if we are gentle in our suggestions.

i know some genuine smart people who raise kids on their own, have extra issues in the family , maybe health problems, some have spouses who pay some dont, some have spouses who give them a physical break from the kids every second week or weekend, some dont they care for their kids year after year without these much needed regular breaks. some have their health and their kids health and some have a whole lot of extra serious crisis and issues to deal with that stretches their nerves thin and makes their pace of life and the demands on them so harsh, and wears at their health while also dealing with so much physically, emotionally, financially and the demands of raising kids on their own. Everything hits these people so hard, repairs, computers, education, childrens needs, transport, food, utilities rent or mortgage clothes health needs etc. No matter how hard they try they may have huge extra challenges for years physically and financially These may be smart decent genuine very hardworking people who could do with some encouragement or relief.



and then I also have around me the other type who just have no clue about finances and yes i might choose not to loan money to them or be involved in their dramas, but i would still try to encourage them in whatever way i could , influence them if i could and not scrutinise criticise which is very soul destroying. People learn in their own time and some dont learn but are doing their best and need still encouragement for whatever they are going through in life, even if we wouldnt loan to such people.



FRancine.

I work for a smallish company and being in the accounts department some of the staff come to me for advice how to budget knowing i have IPs and other projects on the go all at once.

1 particular person shocked me. he/she was questioning bankruptsy

Asked me for a bit of advice. I asked him/her to list all of her weekly, monthly and yearly outgoings on a piece of paper.

Top of the list was some Time share apartment in QLD. Im like, why have u got this going if u have no money, she/he is like, "i want it for my family to holiday in"

Im like "how many holidays are you going to go on when u have no money."

This alone was 30% of her weekly income.

Cant afford a safe car for the family, or to spoil the kids with new toys but has a 50" plasma, laptop and timeshare all on finance.