help to reduce tax / debt

[lollypops32]

regarding foxtel i know it's an extravagance but if i have $140 extra per month it's not going to suddenly solve all my problems. if i hadn't mentioned it, i would still be in the same position. comments along the lines of not being able to complain because of having foxtel aren't constructive. ditto the gym membership, my husband is out of the house 14 hrs a day, he has bad knees so can't run (as suggested before) he has a road bike that he uses frequently.
i am locked in on the mobile on plans, they are a necessary for the children as i have a concern for their safety travelling to and from school on public transport and also one has special needs.
the salary amount is net of tax and is what we receive each month to spend.
we pay the credit card bill off monthly we dont have 'debt' other than the large mortgage and 2 cars on novated lease which cost $3000 per month, including finance and all running costs, servicing etc.
my daughter needs new school shoes - she is a size 11 extra narrow fitting you don't see many of these in the op shop. she also needs new glasses but i can't afford those either. sheesh. she also needs an xray on her knee, ditto. my son and daughter have both got knee issues and need orthotics, i haven't bought these. my son has had a major growth spurt and needs new school trousers, they don't always have what you want, sorry, need at the op shop.
regarding pet insurance - having shelled out over $2,600 on vets bills for when my cat was hit by a car $45 per month seems like chicken feed and yes it is just a pet, i have a dog also, i wouldn't dream of saying oh she's ill....just euthanase her please, it's cheaper that way, if she got ill. one visit to the vets cost $80 for conjunctivitis.....that's 2 months insurance......insurance is the way to go where pets/vets are concerned!!
look i haven't joined this forum asking for sympathy, i know we have a salary most people would dream of, having foxtel and one gym membership hardly makes us reckless we don't live an extravagant lifestyle i can't remember the last time we ate out and when you have an enormous salary that kind of sucks.
the cars or the house have to go....as a start.
i don't have my husband on board with this at all.....he doesn't think we have a problem and if you have ever tried 'controlling' what a grown man spends then you'll realise it's easier said than done.

 

[vaughan]

regarding foxtel i know it's an extravagance but if i have $140 extra per month it's not going to suddenly solve all my problems....

my daughter needs new school shoes - she is a size 11 extra narrow fitting you don't see many of these in the op shop. she also needs new glasses but i can't afford those either. sheesh. she also needs an xray on her knee, ditto. my son and daughter have both got knee issues and need orthotics, i haven't bought these...

Actually $140 a month would solve all of these problems in just a couple of months.

Reality check, princess. Live within your means.

 

[wylie]

Stopping Foxtel for one month would pay for some shoes. You don't seem to want to hear what you MUST do to get out of this hole.

Either make changes to your spending (hard choices, I know) or live with your choices.

I've been in your shoes before. We sold an IP once to clear debt racked up by my choice to stay home with three children. I hated selling that IP but my choice was to go to work or sell an IP. I agree with you that putting three (in your case four) children into before and after school and holiday care would eat up most of any income I earned, so we made the tough decision to sell the IP. I still hated doing it, and still regret it now. But I would do it again.

You have mentioned a few things you "choose" to not live without and if you are of this opinion, or maybe you think your husband will not join you in attempting to keep your expensive house, then I believe you have only one option left, and that is to sell it.

But if your husband doesn't see there is a problem, how on earth are you going to get him on board to sell your house, downsize and all that goes with it?

P.S. You pick out two things (Foxtel and gym) and say it will not make any difference. But those two things add up to $280 per month, not to mention where your money is leaking elsewhere that doesn't seem to be able to be found. Once you add up ten "little things" it makes a huge difference when you add them all up.

 

[sanj]

I feel for your situation, i really do but ultimately all the good advice that has been given is almost entirely pointless if you dont first "grow up".

Take responsibility, find out everything there is to know about where your money is going etc and start looking at the positives instead of trying to find excuses.

You say you bought your house when interest rates were lower but you arent sure of the details, it might be worth you finding out those details. Perhaps you were initially on interest only but are now paying P+I. I think you are also extremely lucky because if interest rates were not at near historic lows you would be in the s.h.i.t.

You need a large mindset shift to prevent your situation from getting worse. Ultimately you still have $500k equity and an income of $13k after tax and after $3k in car payments. All is not lost, that is still a better situation than a signifcant % of people but you need to manage that situation better.

I would undoubtedly take Dazz up on his offer.

I realise you may think people are harping on about the foxtel and ultimately $140/month is not going to change things dramatically but it is also a mindset thing. Start taking control of your finances instead of being completely dominated by it. Also, surely that $140 would help pay for your daughters school shoes? Places like specsavers often have no gap glasses too

 

[Ideo]

Once again, justification for needless expenses.

Glasses? Go to Specsavers. Bulk billed eye tests and you will walk out of there with a decent set of glasses for maybe $40 as I am assuming you have private health cover.

$140 per month may not seem like a lot for foxtel but it will solve your glasses problem. And your kids clothing problems. There is nothing wrong with dressing kids in clothes from Target.

I survived being a kid without having a mobile phone. So did every other forum member on here. If you are serious about retaining the phones, then a $29 cheapy from Coles and $15 in credit. If they use that up then they pay for it.

If you cut out things like gym and foxtel for 2 months you would have enough to cover most of your requirements.

Yes. You do have a good income. But there is no point spending every last cent and over committing yourself. Kids are expensive. It costs money. So you can't expect the lifestyle of a childless couple on that kind of income.

Your choices add to your financial situation.

Sorry for being blunt once again, but you need to seriously reassess what is a requirement and what is a simple want. Especially for the next period of time. Get yourself in a better financial situation. Then you can have a better quality of life.

EDIT. Take Dazz up on his offer. He knows his stuff.

 

[Peter 14.7]

I am jumping in here and going to defend Lolly pop. It is not her that needs to grow up but her husband and the family to some extent.

How do you convince you partner to do something they don't agree with.

Easier said than done.

A slow but sure approach is better. Small things. Let Foxtel lapse and say to the kids, you never watch it anyhow or surf the net or do more homework.

Do picnics instead of eating out takeaway.

Buy at ALDI.

Dont do 2nd hand shoes....thats silly as it can wreck their feet. My daughter also is narrow fit. Ironically her riding boots @ $45 a pair fit best. Tight RM Williams type boots.

Hang in there, talk to hubby.

Get kids to take part time work at Mc Donalds for stuff if they complain.

Peter

 

[Peter 14.7]

Can I sugest the thing you need to put your case to Husband this.

• We have no assets other than house.
• If you lose you hob we are in trouble very quickly
• I dont want you to die from overwork, any job earning that much is usually long hours.
• We need investments like and IP that will save us Tax.
• Kids will be in Uni soon, where do we find the money for that.
• Do we need Foxtel when kids shoulls be studying anyhow.

ALSO

We never get to have a meal out, you and I.
When was our last holiday, we can save for that. A goal.

FYI

Peter 14.7

 

[wylie]

I think only one child is in high school, so they are too young to work.

I wonder if lollypops would show this whole thread to her husband?

Perhaps seeing it laid out like this will show him that changes need to be made, and he can then read some of the suggestions.

I still cannot see how lollypops has a chance of making any changes if her husband is not even thinking there is a problem.

 

[Peter 14.7]

I think only one child is in high school, so they are too young to work.

I wonder if lollypops would show this whole thread to her husband?

Perhaps seeing it laid out like this will show him that changes need to be made, and he can then read some of the suggestions.

I still cannot see how lollypops has a chance of making any changes if her husband is not even thinking there is a problem.

Agree but showing thread may be threatening to a man. Like , "you told the world we are poor". Having said that I don't know him and it may work.

I always have valued my wife is a frugal spender. She has stuff but thinks long and hard about it. She feels no need to upgrade car simply because it is old etc.. Dont ask about how much gets spent on the Hair though

Peter 14.7

 

[wylie]

Glasses? Go to Specsavers. Bulk billed eye tests and you will walk out of there with a decent set of glasses for maybe $40 as I am assuming you have private health cover.

Lollypops mentioned health cover and we all get two pairs of specs per year for no cost to us at all. You need to find an optometrist that does this (just charges your health fund - nothing from your pocket).

And your kids clothing problems. There is nothing wrong with dressing kids in clothes from Target. I agree with this.

I survived being a kid without having a mobile phone. So did every other forum member on here. If you are serious about retaining the phones, then a $29 cheapy from Coles and $15 in credit. If they use that up then they pay for it.

This will save a lot per month. And gives the younger children a link to home, but we didn't have it, and neither did our kids until they paid for their own phones. Youngest - age nearly 17 - still doesn't have a mobile.

If you cut out things like gym and foxtel for 2 months you would have enough to cover most of your requirements.

Your choices add to your financial situation.

Sorry for being blunt once again, but you need to seriously reassess what is a requirement and what is a simple want. Especially for the next period of time. Get yourself in a better financial situation. Then you can have a better quality of life.

EDIT. Take Dazz up on his offer. He knows his stuff.

Agree with all the rest too. You have to make hard decisions, so best start now instead of defending the lifestyle you have chosen thus far. You have found already that people on here are very willing to help, but you have to be willing to take the advice without pointing out continually why you will not, or can not, make the necessary changes.

 

[alexlee]

In the end, whether you get sympathy or not doesn't help you in any way.

You both made the choices to live the way you do, the way you spend your money. Classic rich lifestyle, but with only the job to back it up.

If you think it's too hard to change your husband, fine. continue the way you are and take your chances. You might get lucky and he gets massive stock options or whatever.

If you think it's worth trying to change directions, be prepared to have a few fights.

In a way, this is a harder situation than to convince someone on an average income of the need to invest. The higher your income, the easier it is to convince yourself you don't need to invest.

 

[HotRod]

Can I sugest the thing you need to put your case to Husband this.

• We have no assets other than house.
• If you lose you hob we are in trouble very quickly
• I dont want you to die from overwork, any job earning that much is usually long hours.
• We need investments like and IP that will save us Tax.
• Kids will be in Uni soon, where do we find the money for that.
• Do we need Foxtel when kids shoulls be studying anyhow.

ALSO

We never get to have a meal out, you and I.
When was our last holiday, we can save for that. A goal.

FYI

Peter 14.7

Agree.

Doing all these things will seem as punishment. It's important to reward yourself with something after achieving your goals (just not on credit).

From what I've read here's my suggestions:

• Send all your kids to state schools;
• Sell your cars and pay out the leaes and buy "cheaper" ones outright;
• Stop spending on "luxuries" (Foxtel, gym, pet insurance etc); and,
• If you are not emotionally attached to your home, sell it and buy cheaper. If you are attached, try and refinance it with a new IO period with possibly a fixed rate for 3 years.

What is important is that any savings you make go towards (in order of priority):

1. Pay down any consumer debt (personal loans/CC) you might have;
2. Putting mony aside to cover 6 to 8 month's worth of your living expenses in case your hubby loses his job (buffer account);
3. Contributing to your "reward"; then,
4. Paying down your mortgage debt.

Once you have achieved the first 3 above, you might reintroduce some of the "luxuries" you had to cut, as long as you don't reintroduce bad habits.

 

[vaughan]

I think only one child is in high school, so they are too young to work.

I wonder if lollypops would show this whole thread to her husband?

Perhaps seeing it laid out like this will show him that changes need to be made, and he can then read some of the suggestions.

I still cannot see how lollypops has a chance of making any changes if her husband is not even thinking there is a problem.

Hubby is at work from 5am in the morning to 7pm at night earning the money. It's the princess that's driving the fancy car, sitting in the mansion watching foxtel, enjoying the gym membership and chatting on the iPhone all day.

Hubby doesn't need to be convinced that changes are needed.

 

[matto_]

Agree with all the others. Definitely need to scale back and consolidate. If this means downsizing in terms of your "dream home" maybe this is the time.

We are still driving my old ford which I have been driving for 10 years, as we are still in the accumulation phase of our investing career. Additionally we cook at home (rather than take away) - definitely no Foxtel. Gym memberships....... no thanks.

It is all choices and what we choose to do.

In saying all that - you still have the ability to get out from under this - just need to make some tough choices.

 

[Peter 14.7]

Hubby is at work from 5am in the morning to 7pm at night earning the money. It's the princess that's driving the fancy car, sitting in the mansion watching foxtel, enjoying the gym membership and chatting on the iPhone all day.

Hubby doesn't need to be convinced that changes are needed.

Can't say that. If LP was a princess she would have never posted.

Dont under estimate how hard it is to change your partners mind set. I know that one personally: we could buy more IPs even +cf and mine says we have enough. Read Kiyosaki please....

Regards, Peter

 

[7smurfs]

Hubby is at work from 5am in the morning to 7pm at night earning the money. It's the princess that's driving the fancy car, sitting in the mansion watching foxtel, enjoying the gym membership and chatting on the iPhone all day.

Hubby doesn't need to be convinced that changes are needed.

Said with brute, however I applaud the OP for seeking advice in the first place

You need to cut down on your luxuries whether they look minor or not - and stop trying to justify it.

 

[vaughan]

Can't say that. If LP was a princess she would have never posted.

Dont under estimate how hard it is to change your partners mind set. I know that one personally: we could buy more IPs even +cf and mine says we have enough. Read Kiyosaki please....

Regards, Peter

Lollypops was the one who said that saving $140 a month by cancelling foxtel won't help anything...

Lollypops is just looking for sympathy. Poor thing. There there. Get a new kitchen it'll make you feel better and add value to the house!

 

[herewego]

Lollypops was the one who said that saving $140 a month by cancelling foxtel won't help anything...

Lollypops is just looking for sympathy. Poor thing. There there. Get a new kitchen it'll make you feel better and add value to the house!

Funniest thing I've read in a LONG time!

Sorry to OP, but that was gold, Vaughn

 

[Ajax]

You could make this into a team effort with all family members working on the problem.

This would be good financial training for teenagers...


Cut the foxtel.
Cancel the gym membership and take up walking, jogging/swimming. Take up fishing??? I have friends who save a lot each week by eating what they catch. Beats buying flathead fillets in Sydney at $38/kilo and its a serving of healthy protein..
Children and you on prepaid mobiles only.
Shop at Aldi if you have to (however I don't like some Aldi products). Other supermarkets may also be cheap. There used to be a Franklins Big Fresh supermarket in Sydney that saved me many $ when money was tight.
A good cost saving idea is to buy toilet paper in bulk, dishwashing detergeant in large containers/dispensers, laundry detergeant in bulk, bathroom cleaners in bulk, toothpaste, deodorant etc. All this can be done at Big W in one big shopping trip. I don't get why people pay more to buy these unavoidable items as they run out. Avoid using clothesdryer. Hang out clothes to dry.

 

[Mr. Fabulous]

I am jumping in here and going to defend Lolly pop. It is not her that needs to grow up but her husband and the family to some extent.

Bit rough on the husband there, Peter. It's pretty obvious she is the one making the overwhelming majority of the spending decisions. They are both at fault here, for getting into this much trouble. For all we know, the husband may have very little idea of how much trouble they are actually in. Remember, we are only getting one side of the story. 14 hour work days doesn't leave a lot of time for sussing the finances.

Did you miss all the posts she made, making excuses for not cutting back on this, that and the other. She, like most people in her situation - the one she mostly created - is looking for an easy fix, because she doesn't want to make the tough choices.

This is why I don't want to get married, LOL!