What did your Parents Teach you about Wealth?
- Thread starter Xenia
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I was lucky in a lot of respects. My parents were hard working immigrants who sunk everything they had into the PPOR. They taught me the benefits of living within your means. My dad sold RE in Perth for over 30 years and I grew up answering calls for home opens etc. When I was a Uni student and during my 20's apparently my dad taught me about the benefits of equity/ leverage/ ocean views/ development blocks (having too much fun so missed those lectures). My dad built a strong portfolio of commercial/ resi but during the 80's was convinced to sell and invest in managed funds/ shares. Would have been so set if he had of kept the properties. I have already started teaching my kids (12 & 11yo) about RE and wealth creation so hope it starts the thinking. Anyways, like most parents this is our chance to improve/ move forward/ educate/ set up our kids
Great stories everyone, it looks like they are all mostly the same. And its pretty much the same on my side.
The one thing I do when evaluating advice or information someone has given me is has the person who said it actually acheived the result you want. If they have, do what they say, as they know what they are talking about. (some common sense must also be applied to that statement)
The one thing I do when evaluating advice or information someone has given me is has the person who said it actually acheived the result you want. If they have, do what they say, as they know what they are talking about. (some common sense must also be applied to that statement)
My parents taught me that earning money is not easy. Real life is complicated, and your job is the most important thing, it's your lifeline and is above your wife/gf.
Save as much as you can now, and save your later years in life for pleasure.
You are not supposed to be having fun at your age (24).
Save as much as you can now, and save your later years in life for pleasure.
You are not supposed to be having fun at your age (24).
From my Mum, I learnt to budget for everything. She had a series of glass jars that she would put set amounts into each payday. These would cover all sorts of things, ie: holidays, electricity, phone, etc.
From my Dad, I learnt that you need a good car. Buy a brand new one each two years. Invest a lot of money in smokes, beer and pokies. The local skating rink is cheap babysitter so you can do all those things you love without the inconvenience of children. When those children want to actually involve themselves in the SPORT of skating, they must find their own way to do it because it is too expensive. Money doesn't grow on trees, you know.
From my Dad, I learnt that you need a good car. Buy a brand new one each two years. Invest a lot of money in smokes, beer and pokies. The local skating rink is cheap babysitter so you can do all those things you love without the inconvenience of children. When those children want to actually involve themselves in the SPORT of skating, they must find their own way to do it because it is too expensive. Money doesn't grow on trees, you know.
I learn't more about investing from my lawyer than my parents. Parents taught me nothing cos they new nothing.
They said just get a job work hard and pay off your house otherwise you be renting for a long time.
So I listened to my lawywer and bought my first house at 21 after some compenasation money. Accumulated alot more over the years without any advice and then sold most of it because was not sure how to keep it and manage cashflows etc. Sold before the big boom and lost about $800K in equity.
Now starting all over again with 2 properties.
I have spent alot of money now self educating about finances, propeties, shares etc, and now looking at studying financial planning also, all the while saving and trying to invest in the next IP if money permits.
I will be teaching my kids alot more than what I was taught, I have already started typing up a list of ways to become financially independent, and hopefully when the kids are 18 they will be buying their own IP to rent out.
They said just get a job work hard and pay off your house otherwise you be renting for a long time.
So I listened to my lawywer and bought my first house at 21 after some compenasation money. Accumulated alot more over the years without any advice and then sold most of it because was not sure how to keep it and manage cashflows etc. Sold before the big boom and lost about $800K in equity.
Now starting all over again with 2 properties.
I have spent alot of money now self educating about finances, propeties, shares etc, and now looking at studying financial planning also, all the while saving and trying to invest in the next IP if money permits.
I will be teaching my kids alot more than what I was taught, I have already started typing up a list of ways to become financially independent, and hopefully when the kids are 18 they will be buying their own IP to rent out.
My dad got me into property the year I started my first full time job - subdivisable block that we owned 50/50. I was so worried about having a loan that I poured as much of my salary as possible into it. I have to say that I was a reluctant participant...
It took about 6 yrs after the purchase of that property for me to start getting an interest in property. And another 3 years after that to become truly passionate about it
Now i think he is regretting getting me into property in the first place as it is all that I think about!
But "forcing" me to get into property at a young age was the best gift he could have given me
It took about 6 yrs after the purchase of that property for me to start getting an interest in property. And another 3 years after that to become truly passionate about it
Now i think he is regretting getting me into property in the first place as it is all that I think about!
But "forcing" me to get into property at a young age was the best gift he could have given me
My folks taught me alot about wealth.
My Mum is poor and always has been, she prefers to 'enjoy life' and doesn't know anything about creating wealth.
My Dad has worked all his life, and was under the impression that that's what you do to make money and become rich, 'money doesn't grow on trees' was one of his favourites.
So I've learned I did not, under any circumstance want to follow the same road as any of them and they taught me alot.
So much so that I'm now going gung-ho to become wealthy early on, I only wish I'd started younger but still, no worries and I plan on being financially independant within the next two years.
The bar has been raised, Initially, I gave myself a deadline of age 38 for financial freedom but that has since changed to 30, as my employer will close its doors in 2 years time and I am planning a small business to fall back on.
I have a total of 4 money trees that are performing well to date.
My Mum is poor and always has been, she prefers to 'enjoy life' and doesn't know anything about creating wealth.
My Dad has worked all his life, and was under the impression that that's what you do to make money and become rich, 'money doesn't grow on trees' was one of his favourites.
So I've learned I did not, under any circumstance want to follow the same road as any of them and they taught me alot.
So much so that I'm now going gung-ho to become wealthy early on, I only wish I'd started younger but still, no worries and I plan on being financially independant within the next two years.
The bar has been raised, Initially, I gave myself a deadline of age 38 for financial freedom but that has since changed to 30, as my employer will close its doors in 2 years time and I am planning a small business to fall back on.
I have a total of 4 money trees that are performing well to date.
I'm going to go somewhat against the flow; my parents taught me some great lessons.
My parents taught me that you largely get what you expect. If you think that money is scarce, it will be. You have to live within your current means, but if your current means aren't enough for you to live comfortably, then there are ways to improve your lot.
My parents always had multiple businesses, so I learnt the value of being entrepeneurial, and thinking of income-earning beyond being an employee.
Extravagances, in our family, are things like frequent travel to visit each other, things that make life more comfortable (cleaners, babysitters, high quality linen and mattresses, etc), and holidays. Wealth wasn't about fancy cars, labels, expensive jewellery or other status symbols, but about freedom, and the satisfaction of knowing that you've looked after yourself and not been a "taker" from society.
They taught me to be responsible with protecting what you do have - Trusts, life insurance, income protection, wills, public liability, etc.
They also taught me to be responsible with other people's assets. For example, I was told that if I couldn't afford comprehensive insurance, then I couldn't afford to have a car. It may be legal for a 17yo to not have third party property insurance, but it's certainly not ethical. Somebody with an Audi should not have to claim on their own insurance - causing their premiums to rise - because a teenager crashes a $500 car into their Audi, and doesn't have insurance to cover repairs. (Not that we ever had expensive cars!) So I didn't have a car until after I finished uni, and could afford comprehensive insurance. I found it frustrating when all my uni friends were getting around in bombs, and I was on the bus, but it was an important lesson.
Overall, I learnt that it's up to me to go out there and grab opportunities and make the most of them. I'm responsible for my own life.
My parents taught me that you largely get what you expect. If you think that money is scarce, it will be. You have to live within your current means, but if your current means aren't enough for you to live comfortably, then there are ways to improve your lot.
My parents always had multiple businesses, so I learnt the value of being entrepeneurial, and thinking of income-earning beyond being an employee.
Extravagances, in our family, are things like frequent travel to visit each other, things that make life more comfortable (cleaners, babysitters, high quality linen and mattresses, etc), and holidays. Wealth wasn't about fancy cars, labels, expensive jewellery or other status symbols, but about freedom, and the satisfaction of knowing that you've looked after yourself and not been a "taker" from society.
They taught me to be responsible with protecting what you do have - Trusts, life insurance, income protection, wills, public liability, etc.
They also taught me to be responsible with other people's assets. For example, I was told that if I couldn't afford comprehensive insurance, then I couldn't afford to have a car. It may be legal for a 17yo to not have third party property insurance, but it's certainly not ethical. Somebody with an Audi should not have to claim on their own insurance - causing their premiums to rise - because a teenager crashes a $500 car into their Audi, and doesn't have insurance to cover repairs.
(Not that we ever had expensive cars!) So I didn't have a car until after I finished uni, and could afford comprehensive insurance. I found it frustrating when all my uni friends were getting around in bombs, and I was on the bus, but it was an important lesson.Overall, I learnt that it's up to me to go out there and grab opportunities and make the most of them. I'm responsible for my own life.
??? But the teenager's 3rd party insurance covers the damage to the Audi. Why do they need fully comp? That's just so that the insurance covers the repair of your own car isn't it?
They also taught me to be responsible with other people's assets. For example, I was told that if I couldn't afford comprehensive insurance, then I couldn't afford to have a car. It may be legal for a 17yo to not have third party property insurance, but it's certainly not ethical. Somebody with an Audi should not have to claim on their own insurance - causing their premiums to rise - because a teenager crashes a $500 car into their Audi, and doesn't have insurance to cover repairs.
QUOTE]
McBrain
Third party (personal) insurance - the compulsory insurance which you pay with your vehicle registration - covers human injuries - not damage to property (e.g. the Audi).
As Tracey said in her post, third party property insurance is not compulsory. It is quite legal for someone not to have any motor vehicle insurance which covers damage to their own - or other - vehicles.
Cheers
LynnH
Somebody with an Audi should not have to claim on their own insurance - causing their premiums to rise - because a teenager crashes a $500 car into their Audi, and doesn't have insurance to cover repairs.
Overall, I learnt that it's up to me to go out there and grab opportunities and make the most of them. I'm responsible for my own life.
Great Post Trace; kudos sent.
This part reminds me of one of my past employees. Nice guy; very unorganised, bit idealist - "born again" and the big fella upstairs will provide, etc.
Always broke, always late; and this was a guy 40 years of age.
So, he rear-ends a car one day and has NO insurance.
I said; "why not?"
He replied: "my car isn't worth insuring".
Court case comes; he loses, has to pay $10 per week forever, becuase that's all he can afford. Couldn't care less.
Sorry to be pedantic - as alluded to by Lynn you can get cover for damage to third party property in addition to compulsory third party (people) insurance without going all the way and getting fully comprehensive cover.
Third party (property) covers the damage to the Audi but doesn't cover the damage to your own car. It is typically much cheaper than fully comprehensive cover (depending on the quality of the car you're insuring) and would be perfect for the uni student situation described by Tracey. IMO it's the "sweet spot" for car insurance costs, particularly if you aren't too fussed about your own means of transportation...
You used to be able to get "third party (property), fire and theft" cover in between as well but that seems to have gone out of fashion with most insurers for some reason...
Good point, and quite right. I amend my statement to "it's irresponsible to drive a car without third party (property) insurance".
oh ok. I was thinking of the 3rd party (fire and theft) (which is waht I always had). I guess the 3rd party human insurance is what you get on your rego.
So yes, I totally agree everyone should have at least 3rd party (fire and theft). I can't believe people don't?!!!!
I also can't believe people in the Vic bushfires who had no buildings insurance - and then got a bigger handout from the relief effort because they hadn't insured their homes! (I understand some may find that statement controversial, but that's my opinion)
So yes, I totally agree everyone should have at least 3rd party (fire and theft). I can't believe people don't?!!!!
I also can't believe people in the Vic bushfires who had no buildings insurance - and then got a bigger handout from the relief effort because they hadn't insured their homes! (I understand some may find that statement controversial, but that's my opinion)
That's right.
We're singing from the same sheet on both counts, McBrain. It's all about being responsible.McBrain said:
Interesting thread...
Dad speculated on property, buying low and selling high, got caught out and nearly went bankrupt. He did not recover financially. We moved from one big house to a smaller one, to an apartment, and then to a 2 BR flat. Parents often fought over money. Mum is a saver. They finalised their divorce last yr.
The wealth creation world opened up for me with Robert Kiyosaki's Rich Dad Poor Dad. I started reading a lot more when I left Singapore to studies in Melbourne. Learnt that being successful is first about a mindset, and ridding of emotional baggage is essential. My mum did teach me about saving, but that was as far as it went. Dad was no help.
My aunt, who also invest in IPs but in her own name, introduced the notion of PI to me, and the green shoots started from there.
Regards
Daniel Lee
Dad speculated on property, buying low and selling high, got caught out and nearly went bankrupt. He did not recover financially. We moved from one big house to a smaller one, to an apartment, and then to a 2 BR flat. Parents often fought over money. Mum is a saver. They finalised their divorce last yr.
The wealth creation world opened up for me with Robert Kiyosaki's Rich Dad Poor Dad. I started reading a lot more when I left Singapore to studies in Melbourne. Learnt that being successful is first about a mindset, and ridding of emotional baggage is essential. My mum did teach me about saving, but that was as far as it went. Dad was no help.
My aunt, who also invest in IPs but in her own name, introduced the notion of PI to me, and the green shoots started from there.
Regards
Daniel Lee
Skater, your Dad and mine sound similar! I was allowed to Tap Dance for a term but then no-one could be bothered taking me and it sort of fizzled out. I was Class Captain, Sports Captain, sang/played at the Opera House/Jazz Festivals on numerous occasions, danced on stage at shopping centres... my parents never attended one concert or performance. Luckily it never bothered me at the time but I reflect on it and will never miss an event any of my children are in.
Dad's philosophy: You sleep, eat and work. Money? What money?
My father passed away years ago and Mum is now renting and doesn't know how she will ever afford a rental increase. Luckily my brother owns the house she lives in.
What did my parents teach me about money?
To never rely on your wage to make you wealthy or the Government for support in retirement years.
Out of that seed came the knowledge that if anyone was going to teach me about money, it would first come from my desire to learn how to manage my finances and then from my actions in doing so.
I am teaching my children as they grow and my eldest son has already told me he doesn't want to buy a fancy car like his cousins and wants to buy a house when he is 18.
Daniel, Kiyosaki was one of the first author's that set me on this path too!
Regards JO
Dad's philosophy: You sleep, eat and work. Money? What money?
My father passed away years ago and Mum is now renting and doesn't know how she will ever afford a rental increase. Luckily my brother owns the house she lives in.
What did my parents teach me about money?
To never rely on your wage to make you wealthy or the Government for support in retirement years.
Out of that seed came the knowledge that if anyone was going to teach me about money, it would first come from my desire to learn how to manage my finances and then from my actions in doing so.
I am teaching my children as they grow and my eldest son has already told me he doesn't want to buy a fancy car like his cousins and wants to buy a house when he is 18.
Daniel, Kiyosaki was one of the first author's that set me on this path too!
Regards JO
