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I used to work with a girl who, no kidding, would come back from her lunch break once or twice a week with bundles of shopping bags. From clothing stores, Tiffany's, all kinds of crap. She told me at one point she was spending in excess of $400 or $500 a week on clothes. Now, this would be fine if she could afford it. But she was putting this all on credit cards. At one point she had a consumer debt of $4,000 all on clothes. The worst part? She had a salary of $75,000. I even sat down with her and created a budget with her - her expenses were much, much lower than her salary. She could have been saving about half of that. And she just blew all of that money on eating out, clothes, fancy dinners, all sorts of crap. She lived 10 minutes away from work by train but she would take the taxi nearly every day because she would sleep in. Now she lives in Paris.
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Jun 25, 2013 13:18
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I'd love to read that if you have the link handy.
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Sep 2, 2013 22:07
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Switchback posted:I was as good a liberal hippie as the rest of us here. Went to a liberal arts school where we discussed these institutional problems and how it's not their fault! The system! Hard work doesn't pay six-figure medical bills, or pay you a sustainable wage even though you work two and a half full time jobs. Hard work is important, yes. But only when you're in a position where that work can help you. Also, people can succeed without doing any hard work at all. Luck plays a factor.
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Sep 28, 2013 07:24
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Don't listen to Dave Ramsey, guy's a jerk.
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Sep 28, 2013 15:24
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Jastiger posted:Even planned, its bad with money. If I was saving and could afford it and had it all planned out that I was going to take a bath in $3500 a can Caviar, and blow $60k, its still bad with money. Its money that could have went towards other things like..feeding people. Hahahaha holy poo poo
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Sep 18, 2014 07:19
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I live in Australia where I'm looking at 350,000 minimum for a house. My friend told me, and I quote, "yeah you'll pay about 60% of your pay to the mortgage but it's worth it". He also took out a ten grand home equity loan to fix his broken chimney. Australians are idiots when it comes to property.
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Nov 10, 2014 21:04
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Devian666 posted:He must have hosed up if he's paying 60% of his pay into the house, or he stretched his finances and the interest rates went up. This is incredibly common in Australia and not seen as abnormal behavior at all. Property is religion here.
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Nov 10, 2014 21:22
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Yeah I'm.regularly told to dump all of my savings and an emergency fund into a deposit because "you'll make your money back in a year or two!!" Servicing a mortgage on one income here is completely impossible.
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Nov 10, 2014 21:36
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Rudager posted:Part of the problem is people are completely unwilling to even consider renting out a room or two as well because "they didn't buy a house to live with other people". My question is: how the hell does anyone in Australia manage to save 20% deposit on one income? It goes beyond "take your lunch to work" territory.
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Nov 10, 2014 22:39
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I make 4652 a month. Under 30% of my income would be a mortgage payment of no more than 1395. Impossible unless you live in a place with one bedroom (can't with a wife and kid) or live in the country, (stupid move), or have a deposit in the 150-200k range. I'm talking property of about 300k. Anything below that is either a one bedroom or fixer upper stuff. And I live 40kms out of the city. CelestialScribe fucked around with this message at 23:06 on Nov 10, 2014 |
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Nov 10, 2014 23:04
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Certainly most people I know in their late 20s who are buying are doing so because mum and dad are helping them out. It's just so hard here and the social pressure is massive. Most people I know with mortgages are spending over 50% of their take home pay on repayments. CelestialScribe fucked around with this message at 00:13 on Nov 11, 2014 |
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Nov 11, 2014 00:03
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Oh totally. I shudder over what's going to happen when they have kiss, lose one income or run into some sort of trouble.
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Nov 11, 2014 00:51
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Renting vs ruining your cash flow for a mortgage is bad with money though.
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Nov 11, 2014 05:00
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Another house buying point: People obsessed with property tell you to do the dumbest things including moving thousands of miles away *just* to own a house. I'm regularly told to move to the country, away from family and friends, in order to "get on the property ladder". I know people who have done this. I'm not bitter at all!
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Nov 11, 2014 21:27
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My income would drop dramatically if I moved to the country. Also consider no safety net of people you know? For a massive raise? Sure. For a massive drop in income and a black hole on my resume? No way.
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Nov 11, 2014 21:46
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Then it makes sense, for sure. I agree you should never just block moving as an option.
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Nov 11, 2014 22:00
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This, from my friend, perfectly encapsulates the Australian attitude toward property:quote:But my mate bought a town house on the water in Williamstown for about 600k he's on 90k and the property value has gone up by around 20k in that year. It's certainly doable, you just need a modest house. This same mate went on to say, "my mate earned $100,000 for a deposit during three years at uni, of course it can be done". Neglecting to mention of course that "mate" probably lived at home and didn't spend a time on rent or any other expenses.
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Nov 13, 2014 03:53
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It isn't just my friends. The average Australian thinks this way. Buying an investment property is socially seen as an excellent first move before you even buy a place for yourself. Dave Ramsey would kill people here.
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Nov 13, 2014 04:21
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fiery_valkyrie posted:I'm Australian too. No one I know thinks that way. brb moving to your location ASAP.
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Nov 13, 2014 04:53
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Rudager posted:It's definitely a thing, I wouldn't say everyone thinks like that, but FIFO miners on $150k who also have 2 out of every 3 weeks worth of living expenses covered while they're at work definitely do. For sure, my point is it's hardly the norm and not everyone can be expected to save that type of money in their own circumstances.
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Nov 13, 2014 08:25
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In Victoria, Aus, anything over more than...3% over the limit is a shitload of money. I was going 59 in a 50 zone and got a 300 dollar fine. Three demerit points. Nine more within three years and I get my license suspended for three months.
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Dec 1, 2014 19:23
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Obligatory "Australian complains about property worship in his country" post. A good friend explained to me that using 70% of take home pay to meet a minimum mortgage payment is good with money. Oh, you don't need savings. Just redraw on the house. 
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Dec 9, 2014 20:57
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Breetai posted:Australian house prices are poo poo. I've just given up altogether. No way I can save up $100,000 for a deposit, etc. Not going to happen in a one income household. I think I've talked about it before in this thread though so w/e.
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Dec 9, 2014 23:13
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I am a being of pure energy.
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Jan 5, 2015 21:04
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We've needed a new mattress for 5 years. The springs dig into my back. Waited for a 50% sale, got one yesterday for $1400. Somehow I think this is bad with money?
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Jan 18, 2015 21:01
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I live in Aus, which increases the price substantially. That price also includes delivery and a mattress protector, so the actual price was around 1200.
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Jan 18, 2015 23:46
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Merrill Grinch posted:The same thing is happening to my Dad too; after decades of frugal living his financial discipline apparently shattered with the passing of my mother. It might not be tangible but you will make great memories. When my wife and I got married, we decided not to save for a house and instead focus on travelling. Best decision we ever made. We were able to save money, stay out of debt, but travel because we had no kids. We were in our early 20s and thought, gently caress it. Do it now before we can't. Do I have anything tangible out of those experiences? Nope, but I have memories and my marriage is better for it. I don't think not going on vacation when you can afford it isn't bad with money - you just might be missing out on awesome experiences.
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Feb 1, 2015 06:00
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Yep it went through. No branding allowed.
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Feb 5, 2015 03:26
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I just got a red light ticket. One second too late in a turning lane. 369 bucks. That's Melbourne for you. If you get 12 demerits in a three year period you get your license suspended. Each offense is usually three demerits. Hell, they charge you 300 here for going less than 5k over the limit.
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Feb 10, 2015 05:36
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Is buying poo poo at 0% interest bad with money? I was going to buy an Apple Watch, which I've budgeted for, but they're offering me 0% interest on purchases made over 12 months. Tempted to take it up and just reduce my budgeted spending money by the payment rate,. Maybe subsidise it by cutting some things. It's me. I'm bad with money aren't I.
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May 22, 2015 06:46
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That's Australia for you. Many of my friends in their 20s are paying more than 50% of their income on mortgage repayments. No one bats an eye at this. "Gotta get on the property ladder somehow!" Don't have a 20% deposit? No problem. "Just get your parents to Co sign" is repeated so often here people believe it is common sense.
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Sep 19, 2015 22:04
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Nothing wrong with a cruise, but it's all about balance. I've spent the last three vacations with my wife jam packed with travel and seeking out little great things to see. I could do with a week on a deck chair and a book.
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Sep 20, 2015 01:38
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I saw a respected financial planner in this area and he legitimately told me to borrow money from my parents for a deposit, as such an amount around here would be at minimum 20%. I cut the meeting short. Because property is so expensive here there are a multitude of articles providing suggestions - these regularly include "stay at home and live with your parents" until you're 30, "avoid paying rent" and get parents to loam you money. No one I speak to grasps the fact that if you need to borrow money from your parents for a deposit, something is wrong. Unfortunately, prices in Melbourne and Sydney will continue to remain high because both cities have about 40 percent of the country's population.
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Sep 20, 2015 02:06
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How the gently caress do you have that much in cash 
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Sep 20, 2015 02:57
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I have like $30,000 in savings. Even if I save as much as I can I'll get to that point by the time I'm like, 60, maybe? (I'm 28).
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Sep 20, 2015 03:05
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I'd love to do that, but realistically supporting myself, my stay-at-home-mum wife and son on 20% of my single salary isn't really doable. As you say, buying a house in Australia on a single income in a major metropolitan city simply isn't achievable unless you put yourself in mortgage stress.
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Sep 20, 2015 04:19
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Lord Tywin posted:Sweden also has a serious real estate bubble with idiots trying to get onto the "property ladder" by borrowing from their parents , 80 % of Swedes think that the prices will just keep on increasing and right now they're increasing about 20 % per year. We had a bad property bubble in the 90s but somehow people have forgotten all about it because this time "it's different". The problem is it isn't a bubble here. Prices are going to remain high because we have few major cities.
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Sep 22, 2015 01:08
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Yeah that's true. It's just hard to accept the idea I may never buy a house. You can't buy a liveable place for a family here for less than 400,000, and I live 35kms from the city.
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Sep 22, 2015 02:05
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Devian666 posted:It's more of a cultural thing where New Zealanders and Australians will just hold onto the property rather than sell. It would take a major collapse destroying a bank to force enough people to sell. Something we haven't seen here (yet). Dunno about that, (haven't seen the numbers), but I think if you're going to live in Melbourne or Sydney on a single income you simply have to accept that housing just isn't going to be an option for you. (Translation: me).
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Sep 22, 2015 04:47
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Aussie friends telling me I can afford property by getting an interest-only loan. Preeeeetty sure IO for your main property is bad with money.
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Nov 5, 2015 22:33
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