Poor V Rich mentality?

Yesterday we had to repair an older ladies car - 1975 Kingswood. She has had it since new, but it is now pretty stuffed. Still goes ok, but for how much longer?

She came in originally a couple a weeks ago for a service, and mentioned that in her last service there was a note to get something done about the radiator in the future. It had corrosion, but was not serious enough back then to repair/replace it.

I called the Holden manufacturer and found out they are no longer available as new - had to be second hand or reconditioned. We won't fit second hand parts supplied from elsewhere, so it had to be either repaired if we could do it, or a reco one which we sent them out to get done.

Anyway, we were able to repair it, and I dropped her home while the car was being fixed. On the way to her house, I copped the life story a bit - as you do.

But this is the story, and I was secretly shaking my head a bit. I did feel quite sorry for her; she's a nice lady, but I also didn't if that makes sense. It's the old; "if only she knew", or "you make you own luck" scenario I suspect.

There could be more to it; she may have had an enormous run of terrible bad luck financially in her life, but...

Her house is right next door to the local Motel, and the house is owned by the guy who owns the Motel. She has been living in - and renting - this house for 30 years. :eek: And, it is very, very basic.

She proceeds to tell me that the owner is now considering bulldozing the house to put in more Motel rooms, and she is going to be forced out of her house, it's not fair; I've been living (and renting) here for thirty years, he's loaded - has 5 houses, two motels, a plane - why does he need more money? It's just unnecessary, what am I going to do?

And so on. Getting stuck into the rich, greedy Landlord in not so many words.

Now, I do agree with her about not needing to extend the Motel and kicking her out because it is big enough, but at certain times of the year you could rent out each room 5 times over.

To me; it' all seems a bit self inflicted.

She smells like an ashtray, so you know that she has probably smoked a few house purchases in her years. Looks like a "career" smoker, and about 70 years old.

Had she not have done these 3 simple things;
1. Bought the car brand new in 1975 (when renting)
2. Smoking like a chimney I suspect for all that time (based on her smell).
3. Didn't buy a house for 30 years (houses in Dromana 30 years ago were a song even at those days' prices.)

The result could have been far different without too much alteration to her lifestyle.

The thing that irked me was her mentality towards the "rich" folk, and how she was poor.
 
I agree with you about those points. I see the same with people who buy expensive cars and holidays but dont buy a house because they percieve they cannot afford it.

I came back to Australia about 4.5yrs ago with less than $AU500 net assets (but with the asset of an aussie birth cert). For quite a while I was unemployed working casually then for most of those 4.5yrs I was on a below average income recently just moved to slightly above average income. But I own a house now with $110-125k equity that is because I saved really hard (and renovated very hard with no trades background at all when I grew up my father wasnt around so I didnt even know how to use basic tools). I dont own a car or a tv (actually my house is very underfurnished-most of the furniture I do have came from the side of road on throw out day). But my point is that it can be done on a less than average income. So couples with no children I meet or see in the newspaper who complain about prices even though they both have f/t jobs I dont have too much sympathy because they should be able to do it.

But having said that for this lady her background was probably different to those who do buy property.

Maybe her husband left her or something. Back when she was growing up women might not have been taught to be financially independent. So from her worldview if she didnt have a husband how could she ever get a house.

Maybe in the social circles she has always been in smoking was not condemned as strongly as in more well-off social circles.

I believe it is about education. If my parents never owned a house there may be a strong likelihood I wouldnt either. Financial skills (even pretty basic ones) still have to be learned from somewhere. So I would be careful to say someone like this lady was lazy - she just doesnt know any better.
 
Yep, there's that poor mentality...

I remember Current Affair championing the cause some years ago of some residents of a caravan park in Narrabundah, ACT. The land was owned by a developer who always intended to develop the land, but ran a caravan park in the meantime, presumably to offset holding costs, which included a substantial residential component.

So the time comes when it's profitable to develop the land, and the people living in the caravan park are absolutely *furious*. "Where are we going to live?" And the usual charities and NGOs are on TV slamming the greedy developers for kicking these people out of "the only home they've ever known". :rolleyes:

This was absolutely prime real estate, and the attitude seemed to be that the developers should forego millions in profit, in order to continue to provide subsidised housing for the poor. Since when is providing social programs the job of corporations? If the ACT Government was so keen on providing affordable housing to the poor, why didn't they buy the site at market value?

It infuriates me when profit-making entities are expected (by the public, NGOs, politicians, etc) to put social objectives ahead of their reason for existence. The cost of social programs - if the publicly overwhelmingly wants such a program - should be shared by all of us through our taxes, rather than the cost being concentrated and imposed on a single corporation. The entire reason the corporation bought that land was for development; in the meantime, they were able to provide affordable housing for 20 or 30 years to help offset holding costs. Instead of being lauded for having provided affordable housing for 20+ years, they're attacked for "eliminating" affordable housing when it comes to an end!
 
But my point is that it can be done on a less than average income. So couples with no children I meet or see in the newspaper who complain about prices even though they both have f/t jobs I dont have too much sympathy because they should be able to do it.

But my point is that it can be done on a less than average income.

This is the msg I never tire of.
 
Wealthy people admire other wealthy and successful people.
Poor people resent wealthy and successful people.

Poor people often look at other people's success with resentment and envy. They snipe, "They're just lucky," or whisper under their breath, "Those rich pr**ks."

You have to realise that if you view wealthy people as bad in any way and you want to be a good person, then you can never be wealthy. It's impossible. How can you be something you despise?

The Huna people of Hawaii have a philosophy that says, "Bless that which you want."

If you resent what people have, you can never have it.

Food for thought!
 
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It infuriates me when profit-making entities are expected (by the public, NGOs, politicians, etc) to put social objectives ahead of their reason for existence. The cost of social programs - if the publicly overwhelmingly wants such a program - should be shared by all of us through our taxes, rather than the cost being concentrated and imposed on a single corporation. The entire reason the corporation bought that land was for development; in the meantime, they were able to provide affordable housing for 20 or 30 years to help offset holding costs. Instead of being lauded for having provided affordable housing for 20+ years, they're attacked for "eliminating" affordable housing when it comes to an end!

aaah, but Trace; you need to put up a very big sign at the start of the caravan park enterprise to forewarn the residents that they are only there temporarily and to look at making other arrangements, and leave it there until the bulldozers move in...

I mean, they shouldn't have to take any responsibility for their own life, right?
 
I was listening to the Finance program on the ABC this morning. It was on how much do you need to plan for your retirement. It was very well done and explained why you needed $1m at 60 etc. I sat there thinking, ONLY $1m mmm...I was surprised.

Well, then the phone calls started, with the usual

"How am I expected to save $1m etc., etc."

The callers were asking did that $1m include the home they lived in?...the reply was

"well no it doesnt, unless you are going to sell it and live in a tent."

All the callers were struggling with the amount required.

What they didn't understand was that the $1m was just to maintain a basic lifestyle. To enjoy your retirement and have money to be able to purchase what you want and go wherever you want, you need far more than the $50k per year the $1m was to provide.

As usual, those that have made suffiicient plans for retirement did not phone in to contribute.

Chris
 
I have a number of relatives who quite clearly resent anyone who lives even slightly above the poverty line, and carry on about their lack of money. It's like some bizarre point of pride that they've been poor all their lives.

Personally, I think it's a bit stupid. And I get to have another round next weekend at a major family event (sigh).
 
Now, I do agree with her about not needing to extend the Motel and kicking her out because it is big enough, but at certain times of the year you could rent out each room 5 times over.

I don't agree. If the motel owner wants to build more rooms, which creates employment, earns more rates for the council, earns more tax for the ATO, etc.., he should kick her out. I get sick of these scumbag tenants that think that because they have lived in a place for donkeys years they own it. It wouldn't surprise me if the landlord has not increased the rent as much as he could because she is a little old lady. He probably feels sorry for her as you do. Kick her out I say.
 
I was listening to the Finance program on the ABC this morning. It was on how much do you need to plan for your retirement. It was very well done and explained why you needed $1m at 60 etc. I sat there thinking, ONLY $1m mmm...I was surprised.

Well, then the phone calls started, with the usual

"How am I expected to save $1m etc., etc."

The callers were asking did that $1m include the home they lived in?...the reply was

"well no it doesnt, unless you are going to sell it and live in a tent."

All the callers were struggling with the amount required.

What they didn't understand was that the $1m was just to maintain a basic lifestyle. To enjoy your retirement and have money to be able to purchase what you want and go wherever you want, you need far more than the $50k per year the $1m was to provide.

As usual, those that have made suffiicient plans for retirement did not phone in to contribute.

Chris

1 mill at 60 , is that all!, how much at 50 and em" 45 years old, but thats money mindset for ya!
 
Yep, there's that poor mentality...

I am being careful to distinguish between a 'poor mentality' i.e. one that makes people intentionally stay poor - bad attitudes (like another posters on here's relatives )

versus lack of knowledge and skills to grow wealth and no close associates with that knowledge and skills.

This is an important difference in my opinion.
 
its a good story, one could look at it like, seeing into the future, and where you don't want to be ,

So thats how it ends ??? if you take this path!:(
 
You need to remember some of these old people have been through terrible situations. Maybe they were not so lucky to be spoon fed or be given such a helping hand by their parents as are many of todays young people who resent the older & poorer. I just hope when I do become wealthy that I can still show compassion on the less fortunate.
 
You need to remember some of these old people have been through terrible situations. Maybe they were not so lucky to be spoon fed or be given such a helping hand by their parents as are many of todays young people who resent the older & poorer. I just hope when I do become wealthy that I can still show compassion on the less fortunate.

That's true; some old people did go through tough times.

In this woman's case, I'm sure smoking a King's ransom in ciggies certainly wouldn't have helped her cause.

And let's not forget; she bought a brand new Kingswood while she was renting. Now, that is two very large financial mistakes, and no-one made her do either I'm tipping.

Could easily have bought a very cheap second hand car and not smoked, and saved a decent deposit in a short time to buy one of the very cheap houses in her chosen suburb of Dromana where she was living at the time.

Me personally - never got any financial help in any shape or form from my parents - they were broke mostly.

Many people are not lucky - but make their own luck.
 
But my point is that it can be done on a less than average income.

Yeah see people dont realise they can do it on a below average income. I'm doing it! If you want it badly enough you'll find a way!

If they can afford a loan repayment for a brand new car ($300 or $400 a month) then they can afford the holding costs of an ip. You just need to spend a good 2or 3 years of disciplined saving to help with the deposit and then continue to live below your means whilst accumulating. This is too hard for many people. Its their mindset. They are doomed from the start because there subconsious is setting them up for failure. I've been reading a lot about this topic.
 
You need to remember some of these old people have been through terrible situations. Maybe they were not so lucky to be spoon fed or be given such a helping hand by their parents as are many of todays young people who resent the older & poorer. I just hope when I do become wealthy that I can still show compassion on the less fortunate.

OH' yes i was spoon fed for about two years , as i remember it , Thank you salvation army??? for the chicken you provided us for x-mass.

Its the real high flyers on here that started with ZIP , that why they are so passionate about money, its usually the silver spooners that struggle, and its the poor little ducklings that have learned to feed themselves so well, very early in life, its has not been gifts and candy cane for me either.
 
hear hear craig. although certainly not "poor", i was never taught anything about managing money - didn't even get any pocket money.

it then took me around 15 years, lots of aha moments, lots of reading, lots of mistakes and tonnes of learning to finally get control of my finances and understand the concept and process of money.

all self taught.
 
But my point is that it can be done on a less than average income. So couples with no children I meet or see in the newspaper who complain about prices even though they both have f/t jobs I dont have too much sympathy because they should be able to do it.

But having said that for this lady her background was probably different to those who do buy property.

Maybe her husband left her or something. Back when she was growing up women might not have been taught to be financially independent. So from her worldview if she didnt have a husband how could she ever get a house.

My neighbour at my first PPOR was a great example of what someone can do. She would be about 88 now.(I sold and moved about 4 years ago). She grew up in a family of 8 kids, they were very poor. I think her father died when she was in her early teens. Left school at 12 as many did then. Married and moved into the house she lived in her whole life (although was renting it then). Husband went away to war, son born whilst he was away and husband did come back, BUT he died of cancer after many years of illness during which time she nursed him. He was only 35, she was 31, son only about 6 or 7. I don't think there was any welfare in those days? The land lord wanted to sell the house and as she was now a widow, the banks wouldn't lend her any money. She had gone out to work doing the only thing she knew how to do- cleaning peoples houses. She managed to convince the landlord to sell her the house on vendor finance. I saw pictures of the house and it was a dump. Basic 2 bed miners cottage. She scrimped and scraped to pay the house, when her son left school he became an apprentice carpenter and fixed his mothers house up, put on an extension for a little more room, got an inside toilet. As she was from a poor family no one had the money to help her. She used to get up at 4 am to walk to work cleaning a couple of schools, then on to private houses. She has never had a car.She never remarried.

I really admired her. It would be hard for a woman now days to do that with a low income, let alone in the late 40's and early 50's.

Interestingly she retired at 55 and then went to live in Germany for 3 years as a nanny to a neices son.

So, a good example of what someone can do even with a impoverished background and unfortunate personal circumstances.


Renting for 30 years - I can beat that.
My husband is originally from Liverpool England and his grandparents lived in the same terrace house 2 streets back from Everton Football ground for 65 years. Rented it the whole time. Apparently they couldn't see the value in buying the place although being offered it many many times.:confused:
 
Its the real high flyers on here that started with ZIP , that why they are so passionate about money, its usually the silver spooners that struggle, and its the poor little ducklings that have learned to feed themselves so well, very early in life, its has not been gifts and candy cane for me either.

I'd say that i started with zip, but i'm not one of the high flyers here :confused: I'm like a low altitude cesna, feeling a little ripped off now :mad:
 
No one has walked in others shoes and havn't lived others lives, so please stop knocking and/or ridiculing those less fortunate.

Its very hard for many to understand and make money without growing up with proper role models, let alone grow up to be decent, contributing human beings. Some do (congrats to any on this forum) most don't and most likely can't.

Its great to have money and it's not great having none (i've been in both camps) but we all make up the tapestry that is this fantastic life. That's what its all about, they are not lesser people.

I might be alone here (nothing new there) but i find this line of thinking pretty bad form.
 
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