Tsk tsk tsk. Sometimes I really hate the way these enquiries are answered on this forum! Let’s all sit on the porch, have a cup of tea and calm down!
I’d personally keep your PPOR. Living in your your own home has it’s own emotional responses and effects, and IMHO, those feelings are more important. I put family ahead of everything. The family home is the base for this. Perhaps that’s just my own flawed mindset… I’m sure there’s worse things to be spending your money on!
That’s not to say it’s easy, but try and use the situation in a positive way. The best outcomes originate from the worst beginnings. Have you read Rich Dad, Poor Dad? Rich Dad said to pay yourself first, then everyone else last. This forces you to think, in particular about new ways to make money. I love this way of thinking!
In your situation, paying yourself first means paying the home loan, and surviving. On $50,000 a year I can’t imagine that would be easy. Not impossible, but not easy. Look around you, what are you good at? Look for problems, and ways to solve them. Use your situation to drive you further beyonf your “needs” and into the realms of “wealth”.
Hope my little emotional speel somewhat adds (or contridicts) to the argument of all the seasoned investors in this forum… [blush2]
Putting family first would surely include such niceties as feeding and clothing them, not just providing a roof over their heads? On $960 per week minus tax, plus welfare, minus $600 mortgage payments, I’d suggest one would need to be neglected…
F.[cowboy2]Originally posted by foundation:Putting family first would surely include such niceties as feeding and clothing them, not just providing a roof over their heads? On $960 per week minus tax, plus welfare, minus $600 mortgage payments, I’d suggest one would need to be neglected…
F.[cowboy2]Indeed F, indeed. One would surely be eating 2 minute noodles with water. However, that’s not the point I was trying to make.
I was trying to say, that by keeping the PPOR, he’d need to think differently about ways to make money, and keep a roof over his head, not that it would be impossible. By using the situation he’s in, in a positive way, rather then looking at all the negatives, new opportunites present themselves everyday!
In Australia you pretty much have to pay yourself Second in the majority of cases – TaxMan comes First ;o)
However, Second is still a pretty good place and you can do a lot to improve your position……
“Money is a currency, like electricity and it requires momentum to make it Effective”
Online Positive Cashflow and Renovating CalculatorsHi all! children are not that hard financially !!!! I agree with daniel ,property is not easy to keep,you must keep an eye on your position constantly!!! I dont know why people troll through these forums spruiking about historical interest rates, over borrowing,and all the doomsday conspiracy theories,these people own nothing , dont have kids and probably never will!!!! No!!! these forums are for positive ,optimistic,investors ,who know boom bust cycles and who should manipulate their finance position to suit….cheers!!! john…[medieval]
Funny enough we didn’t start investing till after our first child was 2 and we only had one income. Now, a short 4 years later, we have another child as well as 6 investment properties and our own home. We intend to buy another one this year.
How do we do it? Tough. We live on one income of $50,000 pre tax and we live a very simple lifestyle. I don’t consider it a sacrifice as I get to spend time with my young kids and that is a much more important than having the latest plasma tv and a house full of gadgets that we think they and we need!
A website I’d strongly recommend would be simple savings – just enter into google for the site – it is fabulous. Also, sell stuff on ebay (as suggested by someone else). We do this in order to pay for our properties.
Just get used to no holidays away from home, nights at home, no take aways, no alcohol etc etc and you can do it.
My mottos are “If you bite off more than you can chew, then chew harder!!” and “When the going gets tough, the tough gets going!”
Good luck…I wouldn’t put off kids for the sake of a property….life is far too precious!!!
Cheers,
Greenjoy
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