A Twist On Money Mindset.

[craigb]

Their are threads about money mind set , but the one iam having trouble with is the rising costs of every thing, i don't know how the average income earners get through with thier lives, the week to week thing is somthig i could not cope with or i should say would require some time to adjust,
i understand an icy-pole ice block is no longer 20 cents, and i used to fill my small m/bike up for 1.20 i would ride through the bush all day, with this thing,
cars seem cheap to me at the moment, but some things a rediculas , the subies charging 5k plus to paint a home, and renderers, 7k for a 100 sq home,
Bricklayers charging $850 per thousand, they turn up with a trowl and the hand is out before the last brick is down , , so.. what gives , is this a sighn of me getting older, ?

 

[Bon]

yeah, it's awful to worry about money like that isn't it? I think a large part of the idea behind investing is that you create enough wealth, so that you can spend money to enhance your life without having to worry... rather than worrying about money, you start to view it as merely a tool to exchange for goods/services.

 

[melinda]

I have a friend who is a social worker. As past of her job she does budgets for people on disability support pensions and the like. Many people live on $80 a week after bills and rent. They have to eat, travel, buy medicines, clothes etc on that. Beats me how?

 

[melinda]

Hard to have a money mindset on $80 per week. What could you do? How to turn your life around if you can't work.

 

[craigb]

$80 wk omg, different strokes for different folks, i suppose, but mind you their are heaps of millionares that have a disability, i am sure!

 

[our obsession]

I think perhaps income is for one, relative. We may not be earning as much as some, yet we certainly earn far more than many.

Then it is what you do within those perimeters, hence why we initially legged into property investing in regional cities/towns rather than metro. Mainly because I was very familiar with the area(s), but also because it was (relatively/comparatively) affordable investing.

We live in a rural area, we have the opportunity to kill our (most of) our own meat, sorry if it disappoints you Edlev from Adelaide:

as long as you didnt go fishing or shooting im happy (its been 21 months)

We grow some of our own produce, fruit/vegetables.

We are able to rent cheaply.

By our very nature we are relatively uncomplicated, inexpensive people to maintain, doodads have never really held that much of an attraction, although horror! we have a relatively new vehicle, very important if you rely, literally on your life/health/business/hobbies/livelihood to have a vehicle that can meet the demands of woop woop country.

We do love to experience new culture, meet people, new experiences and travel, that does not necessarily involve high cost. For instance our small towns have become multi cultural areas, it is an amazing metamorphosis occuring.

We do see the big picture, taking charge of our wealth creation journey, and doing whatever it takes to keep on this path. And it's fun. We do not wealth create and therefore suffer!

We have a wonderful network of people (Team Obsession) to help us with this, plus good friends and supportive family.

I'm a firm believer of creating the dream and then living it, forming an abundance mindset. We do have so much abundance and wealth in our lives, it may look? quite relatively small income figures but it certainly is not perceived by us to be that.

You just do it.

We seem to have inspired and created some seed of thoughts...into action, on wealth creation through property investing within other people, some of which are considered relatively low income too, that is one hell of a buzz!

I do shop around for constructions, (and the alreadys too, for that matter), I feel that I do my homework well, get us the best deals that suit our requirements, buying well...I think tradies earn and are entitled to their income too. Good luck to them!

We all have different perceptions and temperaments and life experiences, I am very much enjoying my journey, but it is my journey, you may be experiencing stuff (and perceiving) very differently....

To me, for me, it is all a game, a very interesting game that I have studied and researched well and am playing to the best possible level I can. It costs me money, but I am building and creating far more wealth and assets than it has cost, bless that leverage stuff, bang for buck, IRR and equity.

 

[Aaron Sice]

yeah craig - i know what you're saying.

[rant]

anything labour related is just ridiculous - when i budget for a trade, i allow $440 a DAY.

that's nearly $150k pa!!! for what? a barely-standard job that i have to be on your back about to do it RIGHT? and then when you tell them they messed something up - well, they'll be back in two weeks (and don't show up), then that's another week (don't show up) then it's "ill call the BRB now - i'm sick of this" then you get an apprentice out for the patch up at 7am the next morning who hasn't been filled in on the job details and can't do it anyway.

the costs of painting, tiling, rendering, electrics, plumbing and carpentry is ridiculous.

i KNOW copper pipe is expensive, i KNOW MGP10 timber is not F2 price, i KNOW how much a roll of wire costs and i KNOW what cement costs.

i can oxy. i can connect red, black and green. i know how to cut in and paint. i can tile and mix adhesive/grout to toothpaste consistency. i can measure and use trig to work out rise/runs for roof and cut using power tools and use nail guns.

i'm starting to think i shouldn't bother with trades anymore. it's cheaper to buy the tools you need and do it yourself. that way, you get a quality job, you spend just as much time doing it as you do on the phone trying to find someone and/or hunt them down to fix their shoddy work and you end up with something you are happy with AND have some cool tools left over you can put back on ebay and recoup some cost.

trades? i'm over them.

[/rant]

now, all trades are not equal. there are good and bad and even the good have bad days and the bad have wednesdays.

but i was amazed when i put the pressure on some painters i got quotes for $5k plus materials (no undercoat) and prep, then $5k with undercoat (includes prep) plus materials, then $5k including all materials and prep and now it's down to $3800 all inclusive.

this is over 4 months.

in the meantime, we've spent $285 and undercoated half the house and painted 2 rooms.

 

[quoll]

i'm starting to think i shouldn't bother with trades anymore. it's cheaper to buy the tools you need and do it yourself. that way, you get a quality job, you spend just as much time doing it as you do on the phone trying to find someone and/or hunt them down to fix their shoddy work and you end up with something you are happy with AND have some cool tools left over you can put back on ebay and recoup some cost.

Same issue only problems is when 1 (me) or 2 (me and wife) people are doing the work it takes a really long time compared to having 3 or 4 tradies rock up and do work around each other.

Somedays I think I should hire my own laborers but then you end up in the same spot where you are watching and correcting / supervising others instead of working.

Bit of a no win situation really.

Cheers
Graeme

 

[lizzie]

that's why i'm so thankful to have a team of good tradies to call on, who charge reasonably and are prompt.

however, there are still some things i just won't pay money for. we're reconfiguring the rear of the house for the reno (move kitchen and bathroom to create an extra living space) and i'm quite happy for the builder to come out, put in the beams required and rip out the walls ... but for the "rebuilding" side, i am doing that myself.

had the electrician out the other day - always have a list of things for him to do before i get him out - and one was to install an intricate light fitting in one bedrooms. once it was wired in i took over his ladder, while he moved onto other "electrical" work and i spent the next 40 minutes piecing together the fitting. i wasn't going to spend $50/hr for him to remove plastic protection stuff and hook on dangly bits!!

 

[Nathan]

BC get yourself a wagner airless. a lot better for painting the big jobs.

 

[Aaron Sice]

i'm olskool. i drive an old car, i saw timber with a hand saw, i plane with a hand planer and i paint with a brush

thanks anyway!!!

 

[GreatPig]

i'm olskool. i drive an old car, i saw timber with a hand saw, i plane with a hand planer and i paint with a brush

Maybe that's got something to do with this:

I’m stretched for time – in fact, if there was such a thing as “negative time”, I’d be in it.

GP

 

[silversands]

BC,

I realize this may be akin to cutting off your air supply but wouldn't you gain close to an extra hour a day of freed up time, to help you out with your time shortage crisis, if you both modernized your handyman skills and stayed off SS?

Did I really just write that?

 

[craigb]

every time i spend some big dollers on a new tool i cringe, but after o have it and use it , it changes my attitude about spending,
i bought a cheapie, jack hammer for footings , y'know the 450x450, for pergolas! well now i don't have to see the doctor for anti inflamitry drugs, just happy with the purchases , but i am a builder and use them heaps,

 

[BayView]

I have a friend who is a social worker. As past of her job she does budgets for people on disability support pensions and the like. Many people live on $80 a week after bills and rent. They have to eat, travel, buy medicines, clothes etc on that. Beats me how?

It comes down to how much do you want it?

It can be done, and here's how:

First, you have to set your mind that you want to save for investing, or simply just improving you lifestyle.

Next, you have to settle on amount you can realistically save each week - 10% of income is an easy number, so $8 per week minimum. Is this enough? No, but it's a start, and over 5 years this plan I am setting out will provide miraculous results. Yes - 5 years; forget overnight wealth if you only have $80 p/w spare.

This is deposited into a high interest on-line account such as ING Savings maximiser, or the Bankwest version etc.

Eating - only ever eat food bought from the grocery stores and cooked at home, and don't buy bottled water or soft drinks and never buy take-away food. Look for specials every single time.

Travel - people on disabilities get very heavily subsidised travel costs on buses and trains. Don't use taxis. Don't own a car . Camping is the cheapest holiday you can have, or - no hols for 5 years.

Clothes - Red Cross and other thrift shops and places like "Savers". (I bought a perfectly good winter jumper yesterday for $6). Tight? not to me; I'm not a fashion victim or brand-name junkie.

Rent - people on pensions get subsidies here (same with home utilities and medicines). But look for something cheaper to live in - there is always something. Maybe it's a hovel, or smaller version of what you live in now etc, but we are thinking sacrifice for the longer term escape here. Boarding at someone's house is cheap. I did it for my entire low-paying apprenticeship life.

Entertainment - no Foxtel. Cinemas run specials at quiet times (pensioner concessions also); or don't go; watch tv. Libraries offer free books and cd/dvd's. No presents for people at Xmas etc - just a card - can be bought in packets of 12 etc at $2 shops. If they think you're being cheap; they are not worth the effort.

The above is just the start, and is very tough love. But, it's what you can (or have to) do.

 

[BayView]

yeah craig - i know what you're saying.

[rant]

anything labour related is just ridiculous - when i budget for a trade, i allow $440 a DAY.

that's nearly $150k pa!!! for what? a barely-standard job that i have to be on your back about to do it RIGHT? and then when you tell them they messed something up - well, they'll be back in two weeks (and don't show up), then that's another week (don't show up) then it's "ill call the BRB now - i'm sick of this" then you get an apprentice out for the patch up at 7am the next morning who hasn't been filled in on the job details and can't do it anyway.

the costs of painting, tiling, rendering, electrics, plumbing and carpentry is ridiculous.

i KNOW copper pipe is expensive, i KNOW MGP10 timber is not F2 price, i KNOW how much a roll of wire costs and i KNOW what cement costs.

i can oxy. i can connect red, black and green. i know how to cut in and paint. i can tile and mix adhesive/grout to toothpaste consistency. i can measure and use trig to work out rise/runs for roof and cut using power tools and use nail guns.

i'm starting to think i shouldn't bother with trades anymore. it's cheaper to buy the tools you need and do it yourself. that way, you get a quality job, you spend just as much time doing it as you do on the phone trying to find someone and/or hunt them down to fix their shoddy work and you end up with something you are happy with AND have some cool tools left over you can put back on ebay and recoup some cost.

trades? i'm over them.

[/rant]

now, all trades are not equal. there are good and bad and even the good have bad days and the bad have wednesdays.

but i was amazed when i put the pressure on some painters i got quotes for $5k plus materials (no undercoat) and prep, then $5k with undercoat (includes prep) plus materials, then $5k including all materials and prep and now it's down to $3800 all inclusive.

this is over 4 months.

in the meantime, we've spent $285 and undercoated half the house and painted 2 rooms.

This whole scenario is based on the equation of how much YOUR time is worth, your skillset for trades work, and how much free time you have.

For example; a non-handy doctor working 70 hours per week and earning $350k is better off to stay at work and pay tradies. For him to take time off, muck around and take twice as long as an efficient tradie is financially negative.

On the other hand, a casually employed bar tender on $20 per hour will have loads of free time and is earning less than any tradie. He/she (if they are handy) can spend their free time doing the renos and save money.