How broke have you been?

BayView

BayView

I was just replying to Xenia's thread about what your parents taught you about money, and it reminded me of a time when I was absolutley flat broke when I was about 24.

I was living in my 1st PPoR with my girlfriend (so we weren't exactly poor).

I have been poorer than this, but not flat broke as in this story.

My golf teaching work was yet again returning next to zero income for an extended period, we had over-extended on our mortgage (of course! :D) for our $93k house :eek:

This one night, we reached the point where we both literally had no food in the fridge to eat dinner, no credit on the card ($500 limit) to buy groceries and no cash to buy any food.

It looked as though we were going to eat cereal. I still actually do this as my dinner (love cereal), but by choice.

We were both a bit depressed as the immediate future looked the same; not much income (from my end) and too much commitment.

I went out to the letterbox and there was a letter from Safeway in it. It was a $25 voucher as payment for some survey my GF did a few months earlier.

We both laughed our heads off. We were comtemplating no food for a few days until she got paid again, and all of a sudden we had money to buy dinner and a few incidentals.
 
There was a while in my life where getting back to broke was a Goal.

In the end, its only money, and you can almost always find a way to get by with basics in Australia in some way. Having lived overseas, I have learned that poor or broke is VERY VERY relative.

ta
rolf
 
We owed 500k in 1986 from a property perchase in 84, and got a massive hail storm in November which destroyed the wheat and sunflowers, and set back the sorghum. The wheat was insured, but underinsured. The other crops weren't. Pretty much a loss of full year income. High interest rates at the time, can't remember what they were, but at some time in the 80's we were paying 22%.

Nearly wiped us out.

See ya's.
 
Growing up I remember my parents being REALLY poor. There was a period of time where mum had no choice but to rely on donations from the local church group to feed us.

As a result I have always been very careful of my financial situation, I never want to feel as helpless as that.

However when DH and I were uni students things were very tight. we were living paycheck to paycheck (approx $600 p/fn in centrelink payments as a conbined income). By the time we paid two weeks rent, bought food, paid some on our utilities, and put fuel in the car - we would be lucky to have $20 left over for the f/n. But even when we had no money for a week or so until the next payment, We wouldn't go hungry - it just meant living off pasta for that period of time - and we were never behind in any rent or anything. If we ever actually got any extra money at all, we would use it to pay everything in advance and get ahead with our payments.
 
Agree that as you get more income and get used to money (larger and larger amounts) coming in and going out your definition of flat broke changes.

When we bought our first PPOR we went from being able to save $400 month to flat broke. No beer, no wine, basic food, got paid monthly, did big food shop, money would last for 3 1/2 weeks so for last 3 or 4 days of every pay cycle we had $0 cash. I reckon we did it like that for about 12months.

Just had a 5 week stint with no income, between contracts, missed 2 mortgage payments. Keep telling the kids we are broke but cash is still coming in and going out of the bank accounts. Still paying off creditors from failed business venture, but there is light at the end of the tunnel. We are broke but not as broke as when we where younger, still buying beer, wine and good food.

Cheers
Graeme
 
When my husband and I bought our first house when I was 21, I remember emptying out our money box to get some money together for groceries.

I look back now at how uncomplicated our one little loan of 125k was and have a little laugh! I would certainly not have ever thought I would own multiple properties and be in debt to millions of dollars! :p

It is an interesting thought. The hard times I went through back then, are in no comparison to the hard times I have recently indured, but I coped in pretty much the same way!:)

"Problems cannot be solved at the same level of awareness that created them." Albert Einstein

Thanks for the recollection and the realisation, Marc.

Regards JO
 
There's a big diff between being

- in debt with no income, young, strong, and healthy

- in debt with no income, young, weak, and unhealthy

IMHO, a healthy body and optimistic outlook is the diff between being broke or not. Not being able to see a way out of your limitations or muster the energy to get back on the horse, is a much greater challenge than financial debt.
 
josko said:
When my husband and I bought our first house when I was 21, I remember emptying out our money box to get some money together for groceries.
Click to expand...

I have a similar story. Many, many years ago I started a new job after being between contracts for a couple of months. Credit cards all maxed out and got to the end of the first week's work and NO pay cheque. Was advised they pay monthly :eek:

I used to collect all sorts of 50 cent coins. I raided my beautiful collection just to pay for petrol to get to work the next week. Got paid at the end of that week too - mid month. Was informed that although they pay monthly, they pay 2 weeks behind and 2 weeks in advance....what a relief :)

I can't bring myself to collect 50 c coins anymore :( (too many memories) :p
 
Growing up, we were real poor. Instead of eating Lobster on a weekly basis, we were forced to eat King prawns instead. :):):)

But in all seriousness, we weren't rich, but not poor either and certainly not broke. My parents, as do I, always budgeted for that "rainy" day. Fortunately, I have never been in that position, but you never know what's around the corner.
 
I remember when we came here in 2004 as new migrants, I thought we brought enough money to survive for at least 6 months. However due to rent, food, transpo, driving lessons, bills, etc. money was fast dwindling and we still haven't found jobs. We ate chicken wings ($1.99 a kilo at the time) and home brand canned goods almost everyday to lessen the spending. Luckily, after nearly 3 months of looking for work, both of us received news (coincidentally on the same day!) that we have finally been accepted! We were so happy and relieved. A week before our first salary, we only had less than $100 left in the bank.. talk about great timing!

Two years later, we bought a nice new 4-bedder for our PPOR and another two years after we bought another 4-bed IP which we plan to make our PPOR in 3-4 years time. We plan to buy every two years and accumulate around 4-5 IPs, try to pay them off, retire and live off the rent or sell them when needed. That's our strategy now anyway... it may change depending on future circumstances.

We still eat chicken wings and home brand goods occasionally by the way. We haven't changed much since we came here. Those first three months helped us learn a lot.
 
When I arrived in this country 20 odd years ago, I had 500 bucks in my pocket and did not know a single soul. After paying the bond money and 2 weeks rent in advance for a room in a North Melbourne guest/rooming house, I was left with $150. The room was extremely filthy and after dark a rat would help itself with any food that it could chew through the packaging. After seeing men in their 50s still renting in the guest/rooming house, I made the decision then the first thing I would do was to purchase my own house. I was not at all worried because I was young and Oz is a land of opportunities if one is willing to get ahead.
 
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Hi, good thread to while away these in between times of shall I buy or not?

I'd cheerfully give up all my properties if I could go back to when I had 5 cents left.

Serious. Yr 2 Uni lived on campus, food & laundry included. Didn't occur to me I needed money to live on.

I had to borrow $1 from my friend [bus fare to go into the city] to go cash the cheque my sister sent me.

Ah, to be 20 again!!

At 30, house number 1 had me in serious deep poo - had to look for $53000 in cash. my colleague asked 'Are you OK?' I put my head in my arms and wept!

On that day, some wires in my head must have shorted! I have since bought 11 houses, 5 units and 7 shops. Sold half of them.

Extreme neediness = extreme determination

I thank the day I was very very poor! It has made me very rich.

KY
 
back living at home we were the text book definition of 'poor'

Mum spent way more than she earnt. Poor mum worked super hard to keep up with the bills. We also living at my grandmas place due to lack of funds after a divorce where she got a large payout, but hoarded it in savings after buying doo-dads.

I feel for her as its certainly not a lack of effort, she never had to worry about the $ when married to my dad. Shes still locked into pay-cheque to pay-cheque rat race living at nans. Id love to be in a position to offer her a nice place with no rent after Ive got a fair few IPS under the belt. Let her supervise the CG and simply use the equity in the place to cover it & the LOC payments.

Ive only been out of home for 12m but it seems to make alot of cents to spend less than you earn, pay yourself first, etc.

Am i noticing a common theme of hard times leading to a huge spark in motivation to get these dollars under control and working for us?

A rich man can be broke, but a rich man cannot be poor.

I think its mindset over cashflow.

:)
 
Learnings said:
Am i noticing a common theme of hard times leading to a huge spark in motivation to get these dollars under control and working for us?
Click to expand...

I think it's that way it is for many if not most people. We all like to be lazy, and need a serious motivator kicking us up the butt to get things going... or is it just me?

picture.php

I can't post about motivation without a motivational poster.
 
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Well up until next Thursday we are still broke but its all good because there are only 2 mortgages that will be getting paid late and only by a week and after that our heads are officially back above water and we can start paying everything on time again!

Thanks to commissions coming through from work, property settlement at the end of the month and interest rates the light at the end of the tunnel that has been in sight for the last month or two is finally here. So from here on in we can start to get some of the cc debts down that helped to pull us through the last year and strengthen our position going forward.

It may not sound very good but considering the place we have been it is a fantastic position for us to be in now.
 
Learnings said:
Am i noticing a common theme of hard times leading to a huge spark in motivation to get these dollars under control and working for us?

:)
Click to expand...

I think this is pretty true.

Maybe not so much "hard times", but definitely the hunger to want a better life.

Preferrably sooner than later.

I've had the full spectrum of good dollars and no dollars, lots of freedom and little freedom.

The good dollars came with a heavy price tag - lots of hours; more than 70 per week, for several years. I don't regret it; it helped to set up up financially, but it was emotionally tough.

I chucked it in for a life and more time, but the price tag was low dollars.

That was the catalyst for action; I wanted the life, and the dollars.

It's amazing how as soon as you start to think about something you want, you automatically start moving in that direction without realising it.

It's going to have taken 10 years approx from the "chucking in the dollars" decision to get to that "life and dollars" scenario for us.
 
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