... and then it was gone ....

Discussion in 'Money Management & Banking' started by Lizzie, 25th Jun, 2018.

Join Australia's most dynamic and respected property investment community
  1. Lizzie

    Lizzie Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    3,532
    Location:
    Hunter Valley
    This is not a whinge but an interesting observation.

    We're on a pretty good income by today's standards - some would say wealthy ... but this week I paid farm/house/contents insurance, car rego (a boring 10 year old Corolla), had the coils replaced in the car and life insurance ... in one hit the entire monthly income ... gone :(

    Just as well we don't live from paycheck to paycheck - but cripes ...
     
    Redwing, samiam and inertia like this.
  2. Indifference

    Indifference Well-Known Member

    Joined:
    30th Jul, 2015
    Posts:
    713
    Location:
    Banana Republic
    Perhaps spare a thought for those less fortunate that would have run dry after the 2nd bill... then what....

    Unfortunately many costs have been rising much faster than inflation & wage growth for quite some time. It can be a little confronting how quickly even a large income can evaporate...
     
  3. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    4,271
    Location:
    Qld
    Some months are worse than others for expenses.
    The insurances and rego should not have been a surprise.
    Marg
     
    Phar Lap likes this.
  4. Kassy

    Kassy Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    542
    Location:
    Canberra
    Our last 3 months have been like that, this month will be as well but next month we turn the corner...
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,612
    Location:
    Sydney or NSW or Australia
    Just add quarterly BAS, GST, land tax installment, rates & water.

    It's character building. :rolleyes:
     
    tvadera and Lizzie like this.
  6. Lizzie

    Lizzie Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    3,532
    Location:
    Hunter Valley
    No surprises - just interesting how quickly it can dissipate.

    I often comment to others how hard it must be to be on a single average wage - by the time one adds up all the "must" expenses ... mortgage, two ordinary cars (servicing, fuel, rego, insurance), electricity, health insurance, school fees, rates, home insurance, food etc ... without any luxuries, already one is in the negative.

    Okay - could give up the health insurance (saved hubby's life) and school fees (non-denomination so not high) ...
     
  7. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,231
    Location:
    Brisbane
    Not a must expense
    One car is plenty for most households. God forbid someone had to walk to the letterbox to collect the mail.

    Try turning off the AC?
    Not a must expense. Australia provides excellent free health care.

    Not a must expense. Australia provides excellent free education.

    Let them eat cake!
     
    Gladys, miximitosis and Icarus like this.
  8. tvadera

    tvadera Well-Known Member

    Joined:
    20th Oct, 2015
    Posts:
    132
    Location:
    Vic

    I have the same feeling, approx 50k gone for a new car, fence replacement, new concrete, blocked drains, car insurance, parking ticket fine and a new dishwasher as old one gave away. Feel pretty bad, it's gone. Worst thing is more bills are coming up.
     
  9. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    180
    Location:
    AU
    I guess this is why I have always lived by the YNAB budgeting method (the classic version).
    How to Make a Budget Plan that Really Works

    As long as the categories are topped up monthly I never notice the big expenses.
     
    luckyone and Propagate like this.
  10. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,231
    Location:
    Brisbane
    Stop (not) whinging. If you're having trouble then...
    Buy one for less than $20k, or god forbid buy a used one - you can call it established if it make you feel better.
     
    Gladys likes this.
  11. balwoges

    balwoges Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    697
    Location:
    Lake Macquarie
    Since retirement I pay as many bills as possible monthly - Insurance car/house/contents, health insurance, newspaper paper delivery, netflix etc. That leaves just car rego, electricity, rates water/council to pay in lump sum.
     
    tvadera likes this.
  12. tvadera

    tvadera Well-Known Member

    Joined:
    20th Oct, 2015
    Posts:
    132
    Location:
    Vic
    Well not whinging, all expenses came up at the same time. Fences were due but neighbour was always overseas n hence had to move fast when he was available.

    Car- well my car was13 years old n paint was peeling off n off late stereo stopped working , boot was not closing properly, n EOY deals were too good to miss.

    Blocked drains -out of my control

    I was saving for expenses , have done considerable Overtime to manage these expenses

    It's just happened at the same time n was over whelming.
     
  13. Angel

    Angel Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    4,232
    Location:
    Paradise, Brisbane
    I used to religiously pay all the big expenses annually to get the little discount; not any more. Sometimes there are too many bills in the month so I pay something for six months to flick it to the other end of the year.

    @Lizzie, I appreciate that you have stopped in your tracks to consider how these things affect everyone. That is very kind :)
     
    Lizzie likes this.
  14. Lizzie

    Lizzie Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    3,532
    Location:
    Hunter Valley
    two cars essential when you in a rural area with no public transport for 50km and no school bus ... even one car would be expensive for those on limited income

    electricity? have combustion fireplace and 5kw battery solar system - still get a bill as we're on pumps for water and septic on top of normal use but not particularly large ... others are not as fortunate

    health insurance saved hubby's life twice - once for bowel cancer where the public wait for an initial specialist consult was over 12 months, by which time he could've been past operating - second for a double hernia that, if had torn, could've bled out or, at least, been off work for 6 months ... we are getting older with creaky knees and all other older aging issues so not giving it up after watching an aunt wait two years, in extreme pain, for a knee replacement - and then she got put back to the end of the list of have her hip done ... no thanks but others are not so fortunate

    secondary education - quality? not the local public schools to where we live - public schools draw from a very welfare dependent/drug influenced area. everyone who can afford it send their kid to the private school. fees are around $5,000/yr but cover absolutely everything - excursions, extra curricular activities, apple computer with programs and upgrades etc. we do not get a "please pay" note for anything. hubby's older kids went to public school and barely a week went past without getting a note asking for payment for something ... I did the calcs and it came out not much more expensive than the public system for one child

    not everyone lives in the city with choice
     
    Last edited: 25th Jun, 2018
  15. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,030
    Location:
    Kimberley and NZ
    I'm selling 3 ips this year, sick of rates, insurance and maintenance :)
     
    Phar Lap, wylie and Sackie like this.
  16. Lizzie

    Lizzie Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    3,532
    Location:
    Hunter Valley
    No one is actually complaining - because we can afford it - but does make one pause and think about those on a lower income or less financially savvy.

    What are your basic essentials for a family of 4? - including insurances and school expenses (even public) and food and running one car legally and public transport and electricity and water and mortgage/rent and, if own, then rates and house maintenance and vet bill for the family dog etc ... they sure add up in a hurry and, if come at once or unexpectedly, can wipe out the budget.

    Makes one appreciative for the street smarts, financial ability and intelligence to get to where we are
     
    Noobieboy likes this.
  17. MTR

    MTR Material Girl Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    16,673
    Location:
    My World
    Good thread:)
     
  18. marmot

    marmot Well-Known Member

    Joined:
    23rd Jan, 2018
    Posts:
    983
    Location:
    N.S.W , W.A
    Not much use for many people if you have to wait months to get surgery done and you cannot work and pay the mortgage off .

    If people have a very large debt with no type of health insurance or income protection then they are a complete and utter fool , I generally put those people in the same group that travel overseas with no travel insurance.
     
    wylie and Angel like this.
  19. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,209
    Location:
    Bondi Beach
    #coffesonyou!
     
    ellejay likes this.
  20. Lizzie

    Lizzie Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    3,532
    Location:
    Hunter Valley
    Thanks - the suddeness of the month's cashflow disappearing was an interesting exercise as we approach retirement.

    Reinforcing that cashflow is all important.

    We were looking at several property options for the retirement setup - with one combination paying $16,000 less per year than the other. Still a good income and in a better location but paying enough less that I wasn't fully convinced.

    Clarified my thinking that the still-good-location-with-better-cashflow properties would be the way to go
     
    MTR, ellejay and Gockie like this.