Has anyone came back after losing everything

I can only tell you Spock that I had 10 very tough years in building up my business. Several times I did not think I would pull through and at one stage only my wife inheriting some money kept us afloat. Seven of those ten years we were on a health care card and my employees and subbies were making more money than us.

Half the roofing companies in Adelaide have owners who went broke at least once before.

I also know a guy who went broke with his regional airline and a guy who a skylight company.

I believe both of them have manage to buy another PPoR. I do not know about any IP.

Not sure if any of this is what you are after.

I think that most people who are into IP are less likely to go broke. Lavish Live styles, investing in Futures, Options, Shares, etc are much more likely to ruin you.

I wish you good luck with the 33:30 challenge and hope that you can convince your family the principle of delayed gratification.

Hi

I lost all my savings and ended up with heaps of debt when I was conned into purchasing a non existent business when I was 30. I learnt the meaning of due diligence and how to read contracts after that. I had enough money to put a purchase on a house but I thought I buying a business that would make a good return and I would buy later. Enough of that part of the story.

I ended up living back with my Dad. For just over five years I lived on a strict budget, drove old cars and didn’t do much. When I had nearly paid off the debts I recieved a letter offering me a pre-approved credit card and I realised that my credit position had improved. I decided that I wanted my own place so I went around the banks to see if I could get a loan, my Dad helped me out by guaranteeing the loan and using the equity in his place as security. So now I am on the rise again. I used the equity in my place to purchase a nearly positively geared property and I am hoping to make another investment this year.

I still count all my pennies and stick to a budget. You will have to draw up a budget or at least add up all your income and outgoings to show your family the position you are in at the moment and get them involved in some way to get everything under control, ie make it their problem as well.

Hello Dr. Spock

Here is a link to an article I was reading on getting rid of debt. You, and specially your husband, might find it an interesting read too.

Go to the PDF entitled “How To Become Debt Free (Including Your House & Cars) In 3 To 7 Years” by John Burley”

http://www.gatherumgoss.com/free_stuff.htm

Good luck [thumbsup2]
Elka

Hello L.A. Aussie

Is Money secrets of the Rich a “how to save” or “how not to have debt” book? If not can you please give me a very brief overview of it. The title sounds good. [smiling]

I’ve always had one rule. If I can’t pay cash for it (even a car) I can’t afford it. The only exception is for property.

I am coming to Australia next month to visit my family and am trying to make an “absolutely must have” list of books to buy while I’m there.

Thanks
Elka

Oh forsure , look at Bond his back up there again .
Been there myself once or twice too , mostly self inflicted mind you due to 10 yrs of travelling and too many sunny beaches instead buying a house like everyone else .
Almost lost my latest place just before Christmas , now l have two , well the 2nd is happening now through a strange twist and looking at a third . Go figure but it has been a three yr climb .
lt can all change in a heartbeat but the good news is for the better not only the worse , never right it off’s my thinking.

Cheers
ps , ok it is poss’ Bondy might have had 20 bucks put away for a rainy day but eh .
What about the Kernel , on the dole at 60 .
Actually l heard often people that make money early in life go broke later , dunno if it’s true.

Few yrs back we were DINK with good income in Melbourne.
we bought a block of land with potential to subdivide into 2 units. had no idea about value add or even neg gearing. so we built a 4 Br house [stretching ourselves].

Transferred to Brisbane and rented our brand new house in Melbourne. sold it just before the 2000 boom to repay a minor [10k] debt. no idea about refinancing!!!

Lost job and moved to sydney at low money. scrapping the bottom of the barrel. hand to mouth existence. lowest part of our life. this is when we opened our eyes and realised that we needed to do something.

Lost job in sydney!!! mioved to melbourne. got a job. started looking at IPs. now have 2 units and an almost complete Townhouse. also exploring other business opportunities and some look promising.

Moral of the story: sometimes you need a serious jolt in life to get you moving.

if we hadn’t hit the low in our life, we probably would have had
our own house and maybe one IP. we certainly would not have explored all other options to get out of the rut.

kattan

hi all
interesting post.
not many have said they have gone broke and come back this is very interesting to me as most very successfull people have been broke or near to it.
you only know the value of money when you don’t have it and then when you have been to the bottom of the barrell you know you are not going to level again and yes I have been there and I am a little higher on the investment ladder
but it also gives me that little edge when doing a negotiation.
for me I have been cleaned out three times but it has given me alot more knowledge on liquidatores, administrators and there powers
I remember a very good saying that the strongest rose is the one that fights for sunlight and have found this to be very true.
its not how many times you get knocked down, its how many times you get up or from rocky its not how hard they hit you but you get up and hit them harder these are all very true.
your post is have people been wiped out ?
simple yes

have they come back ?
yes
are they stronger ?
yes
not sure of the 30 30 challenge as I don’t rely on any books

as for the 1000 debt not sure
try 10,000,000 debt
debt is not a bad thing as long as you have a structure that covers the debt its a very different mind set(and I don’t sell books)

here to help
contact me [email protected]

In 1999 I divorced my wife & walked away with $10K worth of Telstra shares – which in time halved in value to be worth $5K. She kept the house & everything else we owned which was fair enough because she would be the primary care-giver to our one year old daughter.

In 2007 I own four properties with minimal debt and feel like I have come a long way since 1999….
I got here thanks to three main principles / approaches:

1. Always spend less than you earn. Never own a credit card. Always pay cash. Don’t get sucked in to being a consumer. I went without plenty of stuff at the time…But I don’t really remember what it was now – I don’t go without much at all now.

2. Invest what you save in growth assets. Wealth might not happen overnight but you will get there.

3. I happened to invest in real estate in Perth during the biggest real-estate boom we have ever seen. A fair bit of luck at play here.

I just hope all the “experts” who have made money in Perth real estate (like me) take the time to use the money wisely & make it last a lifetime. There probably won’t be another chance to do what we have done in the short time we have done it.

We are not experts. We just got lucky. It’s now up to us to use our brains and improve our lives & the lives of our family.
[biggrin]

Dr Spock

Just came across a great comprehensive website Understanding Money.

http://www.understandingmoney.gov.au/content/default.aspx

It has a useful budget planner, a financial calculator, and suggestions and links to help manage money better at any stage in our life cycle.

It is unbiased and educational. For me, it’s time to set things in motion for 2007.

Cheers
CT