Getting Started

[WebBoard]

Jeremy

Reply: 4.1.1.1.1.1
From: Mike .


Re: Analysis Paralysis! Help!?
From: Jeremy
Date: 24 Jan 2001
Time: 20:03:02

Michael, Michael, Michael, Many a time the same road travelled! I achieved one notable success (and that was because I recognised that the subject WAS jealous, therefore to be as good you had to do this...), many jealousies and now say NOTHING.

You seem like me, I was like a born again christian with this stuff - especially when it *really* started to work. All you will achieve is to sound like you think you are better than them.

Look, people like success, but especially with 'close' friends you cannot be seen to be more successful than they. Be especially careful at work! People on this forum will appreciate what you are trying to do, you will appear like a religious/Amway salesman if not VERY careful.

 

[WebBoard]

NigelW

Reply: 4.1.1.1.1.1.1
From: Mike .


Re: Analysis Paralysis! Help!?
From: NigelW
Date: 24 Jan 2001
Time: 18:25:09

I agree with all the comments that an early step must be to get the budget in order. More must come in than goes out. Simple. Get them to do this in an automatic way so that they never see the money - as has been suggested above.

BUT Step 1 must be for you to find their personal motivation. They must have a powerful "WHY" before they can really tackle the "WHAT" & "HOW".

This may all sound a bit manipulative but its with good intentions.

Maybe "secure your children's future" is the button you need to push? OR the "You could retire a bit earlier and do the travelling you wanted..." (got to be careful with this one as it may in fact push them to borrow to travel *massive no-no!*)

MAYBE it could just be pure old fashioned GREED - get rich safely and in a reasonable time.

Remember sell the "sizzle" not the steak. [This is probably harder to do than it seems because I suspect that like most people on the road to riches you're living well below your means so you can't point to yourself and say "this lifestyle could be yours"...]

In any event - good luck. I'm ever so slowly doing the same thing with my family. Just remember if you can get them wanting it badly enough they'll break those 10-20 year habits - but it won't happen all at once.

Cheers N.

 

[WebBoard]

Gee Cee

Reply: 4.1.1.1.1.1.1.1
From: Mike .


Re: Analysis Paralysis! Help!?
From: Gee Cee MOTIVATION
Date: 25 Jan 2001
Time: 21:17:41

I have always been motivated. Yeah I used to buy the kids at schools push bikes. Give them a quick paint and sell them off. This went to cars then property.

Some people just are not motivated.

They will sit whinging & complaining about everything and say they will do it one day.

But if they are just not motivated it can all seem to much.

Sad thing is that success breads success. After you have done it you get more confident. You learn from your mistakes and you move upward.

If you never get out of that chair you will learn and do nothing.

Gee Cee

 

[WebBoard]

Anna

Reply: 5
From: Mike .


Re: Analysis Paralysis! Help!?
From: Anna
Date: 24 Jan 2001
Time: 11:11:59

Michael

Been there done that!

I have the same situation with a close relative although I just told her that if she ever needed help getting out of her rut I could help. And I said that she did not need to budget - this delighted her as she works out these painful budgets that never work and that she cheats on. She came to me about a 9 months ago and I set up a plan for her. All going well for a few months when she just went out on a crazy spending spree.

Came to me recently and said that she knew it worked and wanted to begin again. Told me that since we last worked on the plan she has not gathered any more debt...which is a miracle for her. She also started to talk to me about money shows she had listened to, properties she had inspected. She has been quietly making a mind shift that is only obvious to her.

I guess the moral of my story is that I showed her that I had the water and that she could come to drink whenever she wants. No judgments made. No budgets planned. A simple plan that doesn't ask her to be some-one else or give up the things she loves.

 

[WebBoard]

Jeremy

Reply: 5.1
From: Mike .


Re: Analysis Paralysis! FUNNY (little sad, but FUNNY)
From: Jeremy (again)
Date: 24 Jan 2001
Time: 20:21:18

Had to add this. Friend of mine early 40's ( he has CC debt equal to value of one of my properties - in Syd!) zero assets - except the two (financed) BMW's and Bose sound system. His girlfriend went home and asked him for bridge toll money for way home. Reply 'But we worked out you were only spending $50 today - go the other way home!' She 'But ho much have you spent today' referring to the $1150 digital camera just purchased. He 'No we didn't work out a budget for me, I haven't broken mine!'

 

[WebBoard]

Adam

Reply: 5.1.1
From: Mike .


Re: Analysis Paralysis! Help!?
From: Adam
Date: 24 Jan 2001
Time: 11:52:09

I have a great idea to help them start investing. Tell them you know of a secret way of making millions of dollars out of Ostrich eggs, and or feathers, or that you are buying a used gold or opal mine that more than likely hides Lassiter's lost gold reef. Hey presto by the next day you will have a check for at least 10000 dollars. Invest that 10000 dollars in real estate they will be amazed by the returns, and you need never tell them what is really earning their money. Regards Adam

 

[WebBoard]

Michael

Reply: 5.1.1.1
From: Mike .


Re: Analysis Paralysis! Help!?
From: Michael
Date: 01 Feb 2001
Time: 17:08:53

Sorry for the delay, I've been on holidays and am now catching up.

Michael you have my sympathies, my parents are just like that and its cost my a sum (trying to pay their debts off) but the mentality isn't there. There's is some light, it looks like they are sorting themselves out (after 10 yrs of trying).

But enough about that, a few years ago I attended a seminar by Brad Sugars called Wealth Academy 101 and one of the many things I got out of it was a simple budget. The idea behind it was people get more encourage to continue something if they see results quickly.

People may or may know of this one, but I'll explain it here anyway. It may be of some use to people.

Lets say a family has the following list of debt and repayments;

Mortgage $150,000 $1050pm 143 payments Car #1 $ 20,000 $ 400pm 50 payments Car #2 $ 15,000 $ 250pm 60 payments Charge Card $ 5,000 $ 70pm 71 payments Credit Card $ 3,000 $ 100pm 30 payments -------- ----- total $193,000 $1870pm

(rough figures remember people)

Ok, so our couple here have a total of $1870 they pay each month.

Ok here we go;

Step 1:

Increase the total monthly payment by 10% (the couple have to find this from somewhere else, say reduce a few luxuries, 10% isn't too much to ask)

10% of $1870 = $187

Step 2:

Instead of increase each repayment by 10%, we add this 10% increase to the debt with the lease number of repayments which is Credit Card with 30 repayments.

$100 + $187 = $287pm

Step 3:

As the rest of the debts are being paid off as normal, Credit Card is being paid off quicker, showing a visible result. Once it is paid off you ad this payment amount to the debt with the next lowest number of repayments.

Car #1 with 50 repayments (less the number taken while credit card was being repaid)

$400 + $287 (previous credit card repayment) = $687

Step 4:

Repeat Step 3 until all is paid off.

This system doesn't target interest rates, it just focuses on getting quick visible result for psychological reasons. I think its nice and neat.

Michael

 

[WebBoard]

Michael Croft

Reply: 5.1.1.1.1
From: Mike .


Thank you! 'I love youse all!'
From: Michael Croft
Date: 25 Jan 2001
Time: 08:04:59

Hi Guys,

Thanx to all that offered advice on the Analysis Paralysis post. It's not like me, but I think I was losing heart on this one (blood being thicker etc.).

Warm regards, Michael

 

[WebBoard]

awww GROUP HUG!!!!

Reply: 5.1.1.1.1.1
From: Mike .


Re: Thank you! 'I love youse all!'
From: awww GROUP HUG!!!!
Remote Name: 202.139.64.36
Date: 25 Jan 2001
Time: 11:49:30

hey watch it, you'll spill me beer....