Hi All,
Background: I have just moved to sydney with my wife and two kids. We live on my wage which is above average. But the costs of living in Sydney with a family are huge. At the end of the month we basically don’t have any money left to save.
So my Question is… How can I find some extra money? How have some of you that are in, or have been in simular situations managed to save? I mean even if I was able to start saving, it is looking like it would take at least 2 years before I would have enough for a deposit anyway [glum]
Please Help…. or send money [thumbsup2][tongue]
Many successfulinvestors have started by paying themselves first ie committing a figure to savings rather than spend and then see if anything’s left. A book on the subject is The Richest Man in Babylon
Life certainly can be expensive, but attitide is always the key to saving. Even as a student living away from home on under $7k per year I maintained a strict savings regime. This is obviously harder when it’s not just you, but also a partner and kids, but it can still be done (my parents raised 6 kids on one income! Also living in Sydney).
It means putting away a portion (usually 10%) into an untouchable savings account every pay day, and making do with what’s left over. Op- shop, buy fruit/veg/meat from a wholesaler or markets (such as Flemington markets at Homebush)be creative for school holidays – going to visit friends/relatives (no acomodation costs) or camping low budget, don’t buy brand name food or clothing… every time you reach for your wallet think: do we really need this? Is there a cheaper alternative?
You’d be surprised how often you buy a drink or a snack that you don’t really need (here’s a tip: keep a refillable bottle of water in your bag/car so you’re never tempted to buy a drink at high retail price.)
And only use your credit card as a money mangement tool – wiping it clear every month so that you’re never charged interest. Don’t spend more than you have in your spendings account.
Good idea to use a high interest savings account, such as provided by several online banks – ING, AMP, etc. You get about 5%interest pa (as opposed to regular banks that only offer this kind of rate on a long term deposit).
Agree with that book recommendation.
I gave all my employees a copy for Christmas this year.
The results are noticeable so I know my team are switched on and open minded, fantastic.
1. Asking less often for more money.
2. Asking more often for more work (more work more money).
3. More general happiness (who says money Can’t make you happy, I don’t, less fights, less stress, more charity).My suggestions are to-
1. Sit down with you better half and write out a plan of action.
Failing to plan = planning to fail.
2. Don’t compare your self or situation with others, as this is quick death to thinking and reasoning processes.
3. Spend every spare minute you can educating yourself (Sell TV), education is potential power.
A book is full of ideas so if you don’t have an idea go and get a book (forget the new idea they have no ….).
4. Look at other income options; most people these days have more than one stream of income.
Get a second job (Just Over Broke), I hated it but consider the possibilities from saving and investing all of it for a year or more.
Worth considering working life of 45 years (20 to 65) multiplied by 40 hours a week = 2080 hours a year or 93,600 hours.
Now consider if some of that time was saved early and invested, with compounding in a good investment why would you need to work for 45 years, remember property doubles every 7 to 10 years.
5. Start a business, write a book, become a consultant etc yes I also hate these things in my inbox but consider that there are many many options out there for an intelligent person with an idea.
Examine your skills and resources and look for a Niche market opportunity that suits you.
6. Experiment if something does not work dump it or improve it, but stay focused else you will stay too long on a sinking ship.
More discoveries are made by explorers.
7. Ask for help or network with others.
What you are doing now on this list is a good start.
8. Reward yourself when you achieve your goals (I like chocolate ice-cream).
Set small achievable goals to maintain momentum.
9. Don’t ask for money ask for ideas.
There is more money out there looking for an investment than investments looking for money.
How much an idea is worth depends on how it is used.
10. Smile [biggrin]Mastery
“Mastery is not something that strikes in an instant, like a thunderbolt, but a gathering power that moves steadily through time, like the weather.” — John Champlin Gardner, Jr.“I have studied the enemy all my life… I have studied in detail the account of every one of his battles. I know exactly how he will react under any given set of circumstances. And he hasn’t the slightest idea of what I’m going to do. So when the time comes, I am going to whip him.” — George S. Patton
“Nothing gives one person so much advantage over another as to remain cool and unruffled under all circumstances.” –Thomas Jefferson
“With more success, comes greater problems along with greater ability to solve them.” — Mark Victor Hansen
“Without inspiration the best powers of the mind remain dormant, there is a fuel in us which needs to be ignited with sparks.” — Johann Gottfried von Herder
“Opportunities multiply as they are seized.” — Sun TzuEmail [email protected].
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For all your CLEANING and GARDENING work.Zyleth,
By your own admission you are on above average wages. I think you are tackling your overall game from the wrong end.
_________________________________________________It appears like your “offense game” – bringing money in – it just fine…congratulations. I think improving this side of your financial game has limited upside, what with being good at it already, and things being taxed so heavily before it actually reaches your hand.
__________________________________________________
No, I think the real problem resides in your “defensive game” – letting the cash out. This is where it gets super tough, and where most of the population stumble.
It involves many people, and therefore you have many obstacles ;
1. Different social standing expectations – keeping up with this nonsense will send the wealthiest people down the gurgler.
2. Subtle pressure from wive’s friends…nuf said – everyone knows what I mean.
3. Not so subtle pressure from media bombardment – pouring cash into the Kerry’s and Rupert’s pockets – they love it.
4. Compromising with partners who do not share your ambition to invest. This can be a massive handbrake…insurmountable for many.What exactly are you prepared to sacrifice to attain your goal – which you haven’t outlined ??
Have a chat with a few wily old grumpy Scotsmen and women – frugality is the cornerstone of many a wealthy person’s fortune.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Question.
If most of us are always working hard and saving then why are so many of us not far from broke.
Many of my friends are multi millionaires and they all have one thing in common, they concentrate on making money first, saving second.
The time you spend to save a few dollars could have been better spent generating an idea and harvesting its fruits.
1. Earn an extra income stream.
2. Keep it separate from present financial situation.
3. Save all income from new income stream/s.
4. Invest all the savings.
5. Split income from investments 50/50, half is reinvested and half is your reward this you spend.
6. Don’t stress as your expenses grow each year because your income potential also grows by 50% a year.
7. Teach this to your kids, school never will.
“When a new idea comes our way, we must put it on our mental scales and weigh it carefully before deciding its value.” Jim Rohn“Ideas can be life-changing. Sometimes all you need is just one more good idea to set the future in motion.” Jim Rohn
‘The winds of change will blow you away or take you to new heights’ Richard Denny
‘Don’t wait for your ship to come in; row out to meet it’ Richard Denny
‘Problems are opportunities in work clothes’ Richard Denny
‘A wise man will make more opportunities than he finds’ Richard Denny
‘True wealth is what you are, not what you have’ Richard Denny
Email [email protected].
Fax 0246482374.
Mobile 0425201055.
For all your CLEANING and GARDENING work.‘Reality is seldom captured by glib, obtuse one liners from supposedly successful life-coaches’ ……..Dazzling
gday,
well 8 months ago i had a sports car with alot owing and was renting with absolutely no savings. so i decided it was time to buy a house.u must look at everything in your life and decide how to save money. i sold the car and got a little 4 cylinder, i sold everything i could think of that i no longer used on ebay. i did not indulge for 6 months on anything. sure, expenses pop up that u didnt expect but you must not let that be an excuse to lose your focus.
i redid my budget almost every single day….if i spent 5 dollars that day i redid my budget. u must become completely obsessed with your budget in order to save quickly and stick to your guns.
u must do without for a while in order to reap the rewards in the end.so yeah after 6 months i had enough for a deposit and bought my house…i saved more than i could of imagined in that time. i am still budgeting now end plan to for quite a while.
but i was lucky in that i am single and did not have to satisfy anyone but myself….it would be hard with a wife and kids but once again dont let it be an excuse.
Originally posted by Dazzling:‘Reality is seldom captured by glib, obtuse one liners from supposedly successful life-coaches’ ……..Dazzling
Yes, well spoken dazzling.
J.
Excellent advice guys, Keep it coming.
I will be sitting down with my wife and going over this thread step by step to see what we can change and to devise a plan to succeed.
Thanks for the advice again
Good morning Zyleth,
Education, Communication and planning are a good start.
Just remember Rome was not built in a day.
A thousand mile journey begins with the first step and momentum begins with the second step.
Too many of us start something and don’t finish.
Step 1 education, well you came to this group of mostly happy and helpful people, excellent.
Step 2 you are going to communicate with your better half, work with her, as she will have goals, ideas and questions too.Perhaps you could keep us all informed from time to time as to what you are going to do and how those decisions affect your life.
The learning process never stops for any of us.
Your new friend Colin.
“You’ve got to get to the stage in life where going for it is more important than winning or losing.” – Arthur Ashe, Tennis Player
“In any moment of decision, the best thing you can do is the right thing. The worst thing you can do is nothing.” — Theodore RooseveltEmail [email protected].
Fax 0246482374.
Mobile 0425201055.
For all your CLEANING and GARDENING work.Originally posted by Dazzling:‘Reality is seldom captured by glib, obtuse one liners from supposedly successful life-coaches’ ……..Dazzling
I agree, but they often make you stop and think about a situation in different ways that may result in a benefit being obtained. They can’t hurt.
The Mortgage Adviser
http://www.themortgageadviser.com.au
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Essential LinksHaving spent four years without a wage I have decided to give up being employed for a wage completely and have started a business. A book that might be good is Rich Dad Poor Dad and cash flow quadrant. I haven’t made a profit yet but I am looking at the long term rather than the short term.
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