Financially smart or dumb?

[The Y-man]

Car? Luxury!

The Four Yorkshiremen

Ok a BIG car.....

http://www.idesignarch.com/the-ultimate-luxury-mobile-home-elemment-palazzo/

http://www.roamingtimes.com/rvreports/4/newmar-essex-luxury-motorhome.aspx

http://outlawcoach.com/


Park the rig at work during workdays and go away on the weekends

The Y-man

 

[BayView]

to me unless you have a huge income, or DINK, choosing to spend $700 per week for the average person is a bit extreme,

That's the point of the thread in a nutshell.

It's all relevant to your income level at that time, but also your goals.

All of us here are guilty of spending on champagne when we can only really afford lemonade, at various times in our lives. But eventually we get a bit smarter.

As you get more financially educated, you realise that a sensible balance has to be put into place to accelerate your path to wealth and freedom.

For an ordinary wage earner, spending $700 is not financially smart. It's nice to do once in a while of course, but if you are on a path to wealth, it's the wrong expenditure....

Unless of course it's accommodation in the pursuit of earning investing/earned income and can be claimed as a tax deduction somehow.

But even then; you still don't need to spend that much just because you can - spend a bit less and save some coin towards the next parcel of shares/business/IP, etc.

It's one of those financial decisions similar to buying the brand new car, or buying the ex-demo/12 month old version and saving several thousands/tens of thousands - we've all bought the brand new car at some stage - but now I know better - you don't buy the brand new car; you buy the exact same car a few thousand KM's old, or a year old...still basically brand new, but loads of money saved.

 

[TMNT]

Very good points everyone

 

[sanj]

That's the point of the thread in a nutshell.



For an ordinary wage earner, spending $700 is not financially smart. It's nice to do once in a while of course, but if you are on a path to wealth, it's the wrong expenditure....

Unless of course it's accommodation in the pursuit of earning investing/earned income and can be claimed as a tax deduction somehow.

But even then; you still don't need to spend that much just because you can - spend a bit less and save some coin towards the next parcel of shares/business/IP, etc.

It's one of those financial decisions similar to buying the brand new car, or buying the ex-demo/12 month old version and saving several thousands/tens of thousands - we've all bought the brand new car at some stage - but now I know better - you don't buy the brand new car; you buy the exact same car a few thousand KM's old, or a year old...still basically brand new, but loads of money saved.

Good points except you aren't exactly practicing what you preach

 

[ok180]

Good points except you aren't exactly practicing what you preach

8 infraction points for you!

 

[BayView]

Good points except you aren't exactly practicing what you preach

Why do you say that, Sanj?

 

[Angel]

Be careful what you wish for....they are called nursing homes.

Nah, it was definitely a resort at Mooloolaba where I first got the idea.

 

[AJ14]

Why am I not surprised by the closed minded posts on Somersoft?

It is extremely common for the expat crowd.

Would these people likely be crying for a government handout to help with a home purchase? Highly doubt it.

Back to living as a frog in the bottom of the well Somersoft/Australia!

 

[tobe]

Its the opportunity costs. $700 per week sounds expensive until you calculate the opportunity cost of living is a mortgage free house of up to $750k in value (not to mention the repairs rates and other costs).

Everyone wants to live in the mortgage free home, but they are paying more per week than living in a hotel (based on 5% home loan rates plus other holding costs).

Of course the hotel doesnt get capital gains, but comparing apples the hotel person would have $740,000 or so to invest in other assets that do have capital growth.

 

[boeman]

FIFO friend of mine spends his "home" swings at an all inclusive resort in Bali and surfs.

Doing it for 3 years, just for the hell of it. Pretty happy man. Or content.

Still yet to work out which is which...

 

[BayView]

Why am I not surprised by the closed minded posts on Somersoft?

It is extremely common for the expat crowd.

Would these people likely be crying for a government handout to help with a home purchase? Highly doubt it.

Back to living as a frog in the bottom of the well Somersoft/Australia!

I think there is a distinction which shapes everyone's views here on this;

For a permanent resident - not smart in most cases.

For a transient worker; probably the best way to do it, but would depend on income level a lot..

I still think the figure of $700 can be trimmed down and free up more dollars for other pursuits.

FIFO friend of mine spends his "home" swings at an all inclusive resort in Bali and surfs.

Doing it for 3 years, just for the hell of it. Pretty happy man. Or content.

Still yet to work out which is which...
02-07-2014 01:08 PM

That's pretty cool.