How broke have you been?

[The Fence]

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.

Inspiring to say the least...does anyone think that most immigrants arriving now and into the future will not have a real go at living here and taking advantage of what Australia does in fact offer to someone who is willing to embrace it...?

Good luck to you lenovo...I admire your resilience and the many others here who have posted their 'brokness' stories....

As far as my broke story...well we never had anything much...dad was a manager of a stock and station agency all his life and Mum worked doing clothes repairs/adjustments at home and they never had any money in the bank or any assets...the car and house were all part of Dads remuneration and I guess they got used to that always being there.
Then dad was faced with retirement and he took on the local agency in return for his entitlements as the company didn't want that particular branch.

In 7 years Dad and Mum worked that business to where they could buy their retirement home at Terrigal and also owned their house in the country where the business was and owned the car. Sold the business and retired happy on the coast...their wish...!

I still think my parents could/should have been self employed all their lives as their motivation in that 7 years was incredible compared to the previous 30 odd years of just plodding along and not accumulating anything at all...?

It did teach me though to get stuck into investing in a positive way to make a difference a fair bit earlier in life than make the mad dash at the end....

I also have been flat stoney stinking broke....and with no hope for the future thinking about people who have a mortgage for however many thousands of $$$ and thinking ...."me...a mortgage...own a house...?...never!"

I'm proud be have got where we are now from nowhere with no handouts/inheritances, just plain hard work and knowledge gained along the way.

But boy...to move to another country and soon have nothing left and face the future unklnown then turn around and start accumulatiing assets...that's inspiring.....good stuff lenovo...!

 

[Dazz]

I managed to scrape together $7 for petrol....Well needless to say, the coin collection went in petrol...

Having worked in the oil industry, on the receiving end of that money, it is pleasing to know that, despite how little you had at that time of your life, you were still prepared to pay cash upfront for our product.

Sounds to me like if the price of the product was doubled, you still would have bought it. I wonder ??

 

[cu@thetop]

Having worked in the oil industry, on the receiving end of that money, it is pleasing to know that, despite how little you had at that time of your life, you were still prepared to pay cash upfront for our product.

Sounds to me like if the price of the product was doubled, you still would have bought it. I wonder ??

Yes, but the price increases will get to a point where people will actively seek alternatives, go without (why pay $200 petrol a week to communte to a $400/wk jop and pay the extra $200 in rent) or alternative fuels then become economically viable. The secret is the maximum bleed but to still keep them on the hook (cf market review on exercise of option).

 

[Dazz]

Yes, but the price increases will get to a point where people will actively seek alternatives, go without

Agreed, for most products, but not for petrol. When prices got to $ 1.50 plus, I saw no appreciable evidence of people's personal habits changing to any great extent. They wore the extra cost and cut back in other discretionary areas.

(why pay $200 petrol a week to communte to a $400/wk jop and pay the extra $200 in rent)

I believe because they are inherently loathe to change their habits. The mums doing their pick up rounds in the afternoon and then going to the shop to pick up supplies for dinner will not change. During that high fuel cost mini period we had, I was out on the street observing every morning and afternoon doing my little crosswalk attendant job. Not much bike or pedestrian traffic. Vast majority of kids were dropped off and picked up at school, then there was the daily traffic jam of big 4WDs in the shopping carpark at 3:30pm.

alternative fuels then become economically viable.

I saw no evidence of that, of anything getting off the ground to challenge the large petrol retailers. Govt certainly was useless in containing the public disquiet. They all had a quiet whinge no doubt, but nothing substantial came of it, other than people paid up for the same product.

The secret is the maximum bleed but to still keep them on the hook (cf market review on exercise of option).

Quite right with your market review comparison, because the Tenant usually has many walk options. Petrol is not in the same category. They literally are out walking, and that is not something wealthy first world dwellers will put up with. They will most certainly pay far more before the majority will wean themselves off their dependence on petrol. All country people can be discounted immediately.

 

[cu@thetop]

Agreed, for most products, but not for petrol. When prices got to $ 1.50 plus, I saw no appreciable evidence of people's personal habits changing to any great extent. They wore the extra cost and cut back in other discretionary areas.



I believe because they are inherently loathe to change their habits. The mums doing their pick up rounds in the afternoon and then going to the shop to pick up supplies for dinner will not change. During that high fuel cost mini period we had, I was out on the street observing every morning and afternoon doing my little crosswalk attendant job. Not much bike or pedestrian traffic. Vast majority of kids were dropped off and picked up at school, then there was the daily traffic jam of big 4WDs in the shopping carpark at 3:30pm.




I saw no evidence of that, of anything getting off the ground to challenge the large petrol retailers. Govt certainly was useless in containing the public disquiet. They all had a quiet whinge no doubt, but nothing substantial came of it, other than people paid up for the same product.



Quite right with your market review comparison, because the Tenant usually has many walk options. Petrol is not in the same category. They literally are out walking, and that is not something wealthy first world dwellers will put up with. They will most certainly pay far more before the majority will wean themselves off their dependence on petrol. All country people can be discounted immediately.

Agreed with most of the points but I never said the last fuel crisis was severe enough to move to the big scale changes suggested.

I did see behaviour modified on an anecdotal level but as you say the 4wds lined up outside school 2.50pm each day.

 

[The Fence]

Having worked in the oil industry, on the receiving end of that money, it is pleasing to know that, despite how little you had at that time of your life, you were still prepared to pay cash upfront for our product.

Sounds to me like if the price of the product was doubled, you still would have bought it. I wonder ??

Mate....$1.50/ltr.....why are you walking...only reason I can think of is to get fit...
Still cheaper than beer and will never reach wine prices.....

 

[HiEquity]

Mate....$1.50/ltr.....why are you walking...only reason I can think of is to get fit...
Still cheaper than beer and will never reach wine prices.....

My thoughts as well. When we see a real doubling to $3 in today's money some alternatives will make themselves known. Until then, it's off to school with the big Volvo!