Time to get "MONEY TIGHT" - Ways to save money

[BillC]

My Superanuation going down paying $3000.00 / year in fees & charges
I am getting DIY Superanuation for my wife and I costing $450.00
Annual audit = $1200.00 saving me $1350.00 in first year
Can get 8.25% interest for funds and will control my own destiny which I like

As I am retired selling a property that is negatively geared and keep the positive and neutral geared properties

Get rid of my managed funds and when the time is right buy direct shares

I have been using the living of equity theory but as interest rates increase and costs go up it is not working
Review stratagy

 

[Mr. Fabulous]

A lot of you are making some huge sacrifices to invest every last cent into IP's. While I have no right to tell anybody how to live there life, I'd rather live a balanced lifestyle and enjoy some of the luxuries in life now that I am fairly young. It's true, I probably won't end up with as much as I could, but I'd rather live an "entire life", not just the last 20 years or so of it when I'm too old to enjoy it.

Life is short.

Yeah bloody oath mate, I agree. I laugh when I see suggestions about 'not buying a coffee at work' or not having a beer or twenty down the pub. I might save a whopping 20 bucks a week, but I also miss out on a bit of social time and geez those coffees the local cafe makes me taste marvelous!

Balance is definitely the key. People seem to easily miss the forest for the trees. You could get hit by a bus tomorrow. Could also live to be 100, lol. Which is why the balance is essential.

Mark

 

[Dean1337]

I have a friend who uses an interesting philosphy. He makes an assumption that any hour of his life cost about $10 (just making the figure up). He uses this so that he doesn't waste time trying to save money when he could be making money.

For example, suppose cooking a meal takes 1 hour, eating it 30mins and cleaning 30mins. The price of the goods used, say $2.50. Therefore the total expense would be $20 plus $2.50, a total of $22.50.

Now suppose instead, he could get takeaway that costs $15. Eating the meal takes 30mins. During the rest of the 1.5 hours he could be earning $50 hour. So instead he earns $75 at the cost of $35, a positive return of $40.

 

[alexlee]

A lot of you are making some huge sacrifices to invest every last cent into IP's. While I have no right to tell anybody how to live there life, I'd rather live a balanced lifestyle and enjoy some of the luxuries in life now that I am fairly young. It's true, I probably won't end up with as much as I could, but I'd rather live an "entire life", not just the last 20 years or so of it when I'm too old to enjoy it.

Life is short.

Money stress can make it seem VERY long.

Each to his/her own, of course. But I'm 30. I've been saving and investing for the last 10 years, and as a result I've been able to enjoy a lot of luxuries (PPOR, travel, general feeling of comfort knowing I don't have money problems) as a result. My friends are about my age, and many of them stress about money. If you start early and do it diligently, you won't have that problem. Ever.

The necessary expenses can catch up to you very quickly. Especially once you get married, have children, etc. When you're single or don't have kids, it doesn't seem like a big deal to say 'I'll enjoy life and deal with the money stuff later'. As you get older and have more responsibilities, the issues are a lot more in your face.
Alex

 

[evand]

The amount most people lose with bad investment decisions, paying high bank fees, too much interest, paying too much for houses, cars etc etc absolutely dwarf the amount saved by being thrifty. Its mostly false economy.

And if people put a fraction of the energy & time they use to save money into making money, most wouldn't need to be a tight Ar5e.

So, i say enjoy your life. Its the only one you have, spend more and make more.

Sash, Korean cars have just about the highest depreciation in the car industry. European cars have the lowest.

If you buy a Kia for a song be prepared to sell it for a song and a half.

Most people don't take this into their vehicle expense calculations but it usually ends being a large amount. (see first sentence)

Also, i'm not much of a budgeter but i know you can save HEAPS at Aldi. A $300 trolley of groceries at Coles or Woolies will be $150 at Aldi.

If you do a shop like that one a fortnight thats about $4000!

 

[evand]

Or a life

If you start early and do it diligently, you won't have that problem. Ever.

 

[alexlee]

Or a life

Everyone has their own definition. I traded going out drinking a couple of times a week for a lot of other things, such as a nice home, investments, the ability to take a few months off and travel, a real possibility of becoming financially free much earlier than 65..... everything has a cost.

There are a lot of intangibles associated with having investments and money. For example, my fiance chooses not to work. We are able to do that financially because of the investments (and my salary, granted). That way she has time to take care of the house and kids when we have them. I do know people who really stress over the fact that they want to stay home and take care of the kids, but can't afford to.

I (voluntarily) missed out on a few things when I was younger. Now I have a LOT more choices. Was it worth it? I think so. Others may not.
Alex

 

[sash]

The amount most people lose with bad investment decisions, paying high bank fees, too much interest, paying too much for houses, cars etc etc absolutely dwarf the amount saved by being thrifty. Its mostly false economy.

And if people put a fraction of the energy & time they use to save money into making money, most wouldn't need to be a tight Ar5e.

So, i say enjoy your life. Its the only one you have, spend more and make more.

Sash, Korean cars have just about the highest depreciation in the car industry. European cars have the lowest.

If you buy a Kia for a song be prepared to sell it for a song and a half.

After Commdores, Fords, & Magna yes. Note that after three years the depreciation rate slows down dramatically. So a Korean car bought for 22k will be worth about 14k....but in the next 3 years it is still worth about 11k-12k....so the depreciation is not as dramatic. Having said that.....one day I may get a Merc....when I am feeling my age.



Most people don't take this into their vehicle expense calculations but it usually ends being a large amount. (see first sentence)

Also, i'm not much of a budgeter but i know you can save HEAPS at Aldi. A $300 trolley of groceries at Coles or Woolies will be $150 at Aldi.

If you do a shop like that one a fortnight thats about $4000!

Agree about balance....I love travel and food! My weaknesses...other than pretty girls.

I never budget...just make changes as I find better deals from reading a lot of magzines and newspapers. I seem to buy what I want and need as it occurs. For example...I woke up one fine day in June 2006 and decided I would go on holidays.....ended up on a vacation for six week in Europe during July/Aug 2006. Just rewards for IP investing...no?

 

[lizzie]

i'm fed up with being money tight. we have been on (for us) a very restrictive diet for several years now - but seems to make no difference to the money going out ... $2,000 for rates last week ... $1,500 for various ip insurances the week before ... $1,000 a week over 6 months for land tax ... the list never ends.

hubby is on very good money, yet we have to scrimp for the last 3 years(with the occasional small splurge) and i'm sooooo over it.

we're selling all investments and will take a breather for 12 months getting the ppor debt down before launching back in.

 

[Witzl]

The amount most people lose with bad investment decisions, paying high bank fees, too much interest, paying too much for houses, cars etc etc absolutely dwarf the amount saved by being thrifty. Its mostly false economy.

And if people put a fraction of the energy & time they use to save money into making money, most wouldn't need to be a tight Ar5e.

So, i say enjoy your life. Its the only one you have, spend more and make more.

Sash, Korean cars have just about the highest depreciation in the car industry. European cars have the lowest.

If you buy a Kia for a song be prepared to sell it for a song and a half.

Most people don't take this into their vehicle expense calculations but it usually ends being a large amount. (see first sentence)

Thats why i drive a $1000 corolla.
Yes, granted im a car enthusiast and do ALL mechanical work myself, and know how to buy a bargain.... but still, that alone saves me several thousand dollars a year.
I just have to fit aircon to it and i'll be 100% happy. (already have the parts)

My line of thinking is much along the same lines as Alex and Sash... i dont mind living beneath my means for a few years, knowing that after those few years my means will be far grander than what i couldve achieved staying the normal "work hard and dave" course.

So that means i will be driving the same $1000 corolla for the next couple of years, until the girlfriend and I can afford a 2nd hand Lexus (under $20k nowdays).

Who needs a new car when a 7yo car is just as good and 1/5th the price!

 

[kathryn d]

We were supposed to be leaving for Australia tomorrow, but we didn't get our bills paid down enough to justify going into debt for.I want to be able to pay cash for the vacation.It is now on hold until November.

In the meantime, we have started finding things Rob thinks I would enjoy visiting.We're not interested in spending a fortune.

Found a sight called 100 things to do and see in Melbourne for $10 or less.

 

[sash]

i'm fed up with being money tight. we have been on (for us) a very restrictive diet for several years now - but seems to make no difference to the money going out ... $2,000 for rates last week ... $1,500 for various ip insurances the week before ... $1,000 a week over 6 months for land tax ... the list never ends.

hubby is on very good money, yet we have to scrimp for the last 3 years(with the occasional small splurge) and i'm sooooo over it.

we're selling all investments and will take a breather for 12 months getting the ppor debt down before launching back in.

$1000pw for Land Tax.....yikes!

Yes....time to enjoy! But selling all your investments...???

I like balance......but can see some opportunites coming up.

 

[steveadl]

I have a friend who uses an interesting philosphy. He makes an assumption that any hour of his life cost about $10 (just making the figure up). He uses this so that he doesn't waste time trying to save money when he could be making money.

For example, suppose cooking a meal takes 1 hour, eating it 30mins and cleaning 30mins. The price of the goods used, say $2.50. Therefore the total expense would be $20 plus $2.50, a total of $22.50.

Now suppose instead, he could get takeaway that costs $15. Eating the meal takes 30mins. During the rest of the 1.5 hours he could be earning $50 hour. So instead he earns $75 at the cost of $35, a positive return of $40.

I take a similar attitude, although I haven't put an actual dollar figure on it. Why spend my one day off a week cleaning and maintaining the house and yards - I'd rather get someone else to do it. Same goes with cooking for the most part - I don't want to get home at 6pm then cook for an hour (then dishes etc) before 10pm sleep. To me, my spare time is more valuable than the money it costs me to have someone else do it.

I do however throw some Lenards chicken in the oven once or twice a week, as it's quick and easy.

 

[abacus]

Dear Daz

Can I assume you do not normally do the weekly shopping?
http://www.somersoft.com/forums/images/smilies/biggrin.gif

However, I do agree with you list of items that can be reduced when the need arises.

Don't forget, car mag subscriptions, tennis/golf memberships.

I've hardly met anyone in Oz that needs to really attack the supermarket purchases to get ahead. Food and groceries from Coles and Woolies, whilst getting more expensive by the day....are not where the really big savings are at.

The biggies are restricting all those "socially comparable" events.....i.e. when humans "go out and have a good time".


This is where, IMO, alot of the big dollops of after-tax paid cash are spent....and don't need to be. Of course, these are the items that cause the most resistance and angst when trying to reduce....cos apparently they are all absolutely vital and necessary ?????

I've always found, in comparison to these "fashionable items", scrimping on food and groceries bought from a supermarket to be false economy.

 

[Dazz]

Dear Daz

Can I assume you do not normally do the weekly shopping?

Yes - it's safe to assume that.

The wife and I play economic basketball. I'm captain of the offence team, with the responsibility of shovelling in as much in the front door as possible. The good wife is captain of the defence team, with the responsibility of letting as little out the back door as possible.

Shopping squarely falls within defence.


What tipped you off ??

 

[austini]

i'm fed up with being money tight. we have been on (for us) a very restrictive diet for several years now - but seems to make no difference to the money going out ... $2,000 for rates last week ... $1,500 for various ip insurances the week before ... $1,000 a week over 6 months for land tax ... the list never ends.

hubby is on very good money, yet we have to scrimp for the last 3 years(with the occasional small splurge) and i'm sooooo over it.

we're selling all investments and will take a breather for 12 months getting the ppor debt down before launching back in.

Lizzie, good on you. You definately deserve it.

In the last couple of years there have been way too many people (who are relatively young eg less than 55) within our circle of friends and acquantances who have died or are fighting life threatening conditions. Although I continue to take a positive view on life these situations remind me to enjoy life NOW. Of course plan for the future but don't forget to enjoy life as best you can now.

Cheers - Gordon