Can you really help people who can not manage MONEY?

Friend got help with the issue and no longer has an over supply of things that aren't necessary.

 

This is my other half spot on. I do weekly food shopping it's around $150 when she does it $250-300. As an example decided to make tachos the other night she tells me there's a tacho kit in the cupboard, have a look in there and sure enough there is...... 4 of them. Can't even remember the last time we had tachos.

 

I dunno whats so hard about this

If i am happy living pay check to pay check then its my decision

If i want to save up for something then ill cut back on some things and try and save

Spending less then i earn is the way to save.

Im not going to pretend im the lord of saving......but whats so hard about it??
To me its no different in saying drivijg further means more petrol

 

I think we have the same Mrs...or at least twins haha

 

I am 33 and my parents give me pocket money. This is how it works …

Ok
Another article with a bit of a different view

Is it financial irresponsibility?
Living for the moment?
Or lets rely on the man to buy the house?

 

A couple that are friends of mine approach me about help with some simple tips managing money. Instead of going through a list of a hundred things I do or don't do we had a long discussion about everything except money management. It turned out they didn't have any goals or long term plans so we fixed that. Now they have goals and a long term plan they can see the bigger picture and drastically changed their lifestyle expenses to enable them to save money instead of spending it on luxury items and holidays. Huge change in their mindset. Works for some, doesn't work for others.

 

There is a Company called " my budget " for people who cannot save money.

 

Spoke to them last week, have now got a $25k loan to put a pergola up on their house. Didnt come out to dinner with everyone else because they couldnt afford to put fuel in their car.

 

And 25k for a pergola?? What the heck are they using. Gold plated timbers?

 

?? How did they get 25K for pergola??

 

Easy! A salesman straight-faced quoted my elderly mother $20K to build a timber deck out the back of her tiny townhouse and offer to arrange finance.

 

Horror!!

 

People can change but they have to want to change first ... and sometimes its feeling the pain that creates the desire to change.

 

I think some people have to lose everything before they actually wake up.

Met up for coffee with a friend yesterday and this person's property portfolio is in the main houses/development sites in WA Mining Towns Port Hedland, South Hedland, Newman and Karratha. As we all know values have dropped perhaps 40%+, same as rents.

She told me she is struggling to service current debt to the tune of $20,000 per month (yes that is correct) and is reliant on family to help at the moment. She operates a business but she still can not service this debt. I was surprised she told me.

What is really amazing is this person got involved in mining towns because she has been caught up with the Dymphia Boholt group perhaps 5 years ago. At that time she owned a property valued at least around $1.2M, she has used all the equity in this property, if she were to sell up she would still owe the bank money.

Unfortunately, No amount of help/advice will work, I have tried but its like hitting my head against a brick wall, that is why I believe she needs to lose the lot for change....and stop going to these spruiking seminars, they don't work.

MTR

 

Wow. That's a really tough position to be in. One moment they have a fully paid off million dollar PPOR. A few years later have negative equity.

What kind of advice did you give her for her current predicament?

 

I starting giving her advice years ago about the properties she was buying etc. However, she has stars in her eyes, expecting big profits but risky deals.

The problem you can give advice but does not mean they will listen and then again I don't see the point because she is not interested. In fact she thinks the next deal will fix the problem, they were her words.

MTR

 

@MTR That is a really hard position, wow there were some bad choices made there. But yeah..... tough situation for her. I hope she can see it through, or alternatively bite the bullet and start again. Good luck to her.

BTW, what is her approximate age? Is it likely that she can start again and rebuild in time...?

 

In late 40s.
Well she currently has apartments on the go in Perth, sold 6 OTP, needs to sell another 3 to source finance, this is a JV project someone in Sydney. Of course the investor in Sydney did not buy in boom time in Syd, but would you believe came to Perth where the market is falling... don't get me started.

She mentioned that this deal will be highly profitable, but building 19 apartments will take at least 2 years to complete.

I personally think she should declare bankruptcy and start again which I know she can do as she has skills that can make big $, problem is while she is tied up with this mentoring group she cant see this.
The mentoring group become their family, its almost like a cult.

MTR

 

@MTR So she is still tied up with this same group (DB) that potentially got her into this situation in the first place...??! Insanity.

 

yes, exactly