Easy Come, Easy Go

Discussion in 'Investor Psychology & Mindset' started by kierank, 19th Sep, 2020.

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  1. kierank

    kierank Well-Known Member

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    I don't watch the show but the wife does.

    This couple won $209,000 in 2018 and have blown the lot on things like:
    1. Bought two above-ground pools and handed them out to friends like lollies :eek:.
    2. A chunk of the cash prize went on a big bet at the tennis. They bet against Ash Barty!!! :( How un-Australian is that?
    3. Paid off a friend’s car loan, bought two lawnmowers, ...
    4. Bought a block of land on Russell Island “without ever going to look at it” :eek:.
    5. Paid rent for a struggling stranger they came across on a community Facebook board
    In April that the husband's employment as a builder was terminated amid the COVID pandemic :(.

    I know $209,000 is not life-changing (that is, cant retire on it) but it is still a sizable chunk of money and could have been used to give one's investment journey a nice boost.

    I know it is their money and they can do what they like with it but ...

    Self-proclaimed ‘bogan couple’. Gotta agreed with that.

    Block stars have blown entire winnings
     
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  2. Gockie

    Gockie Life is good ☺️ Premium Member

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    If you can't handle money, this is what happens :(

    I once got a very good windfall from being made redundant from Amex with the GFC. What did I do with that money?

    Essentially... it was a deposit for an IP. Still have it. Now worth approx $200k more than what I paid for it. Sure some other investment may have been better, but I can't complain.
     
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  3. wylie

    wylie Moderator Staff Member

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    I recall them saying (I think) that this win is for the children, the future etc. Maybe I'm mixing them up with another couple.

    I assumed being on radio she would be on a good salary.

    It's sad to see they've not made those winnings work for them.
     
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  4. SatayKing

    SatayKing Well-Known Member

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    Ah, I see. Property investors. Typical. Should have known. :D
     
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  5. kierank

    kierank Well-Known Member

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    Last century, it was easy to get a small windfall.

    Whenever people changed jobs, they would get their Super balance sent to them as a cheque in their personal name ;).

    Most people would cash the cheque and used the funds to pay for a holiday, pay for a car, ... :eek:

    I only received one such cheque (from memory). I used the cash as a deposit on my second property. We have sold that property but used that money on our current PPOR when we upgraded.

    Great minds think alike :p.
     
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  6. kierank

    kierank Well-Known Member

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    The wife said the same thing and she is ALWAYS right :D.

    So, I believe you are right as well ;).
     
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  7. geoffw

    geoffw Moderator Staff Member

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    I put the proceeds towards a trip to Mexico. There was a lovely young lady I'd met the year before who I wanted to see again.

    So not only did I throw away the money on a trip, it contributed towards all the costs of being married for the next 30+ years. So financially a very big loss :)
     
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  8. Lacrim

    Lacrim Well-Known Member

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    Someone won $18m on Lotto on a couple of days ago.

    If I won $18m, first thing I'd do is:
    • park some in my offset accounts to the value of the loans being offset
    • buy $1million each of 8-10 long running LICs and ETFs
    • $2m in blue chip, dividend paying stocks and
    • maybe go on a big holiday if there's anything left
     
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  9. Joynz

    Joynz Well-Known Member

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    What terrible crimes they have committed! Helping friends and strangers. Buying not one but two lawn mowers; buying two pools ($5,000 each) for their friends...

    I say, put away the judgement.

    You can hardly blame them for not predicting Covid-19.
     
    Last edited: 20th Sep, 2020
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  10. Joynz

    Joynz Well-Known Member

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    Being able to ‘handle’ money is very subjective.

    Spending it is not necessarily indicative of not being able to ‘handle’ it.

    And ‘value’ is equally subjective.

    For example, if they had spent it on private school fees, would that have been more responsible? Or added an extra couple of rooms to their home? Or donated the money to charity?

    All of these are legitimate choices - I think some are a waste of money - but others will disagree - and there is no right answer.
     
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  11. Gockie

    Gockie Life is good ☺️ Premium Member

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    If they said they wanted the winnings for their kids and the future... then just spending on doodads isn't the way to go.

    I prefer, put on your own life vest and oxygen mask on first. A pool is just a nice to have. Perhaps even a liability. Not something that is needed.

    I hope they can be ok on just her salary.

    A friend's sister won a lot of money when she was 18. Just a couple of years later, she had fritted away the lot. A major shame because she could have set herself up for life with that money, if she had used it to buy assets.
     
    Last edited: 20th Sep, 2020
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  12. kierank

    kierank Well-Known Member

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    WOW!!! That was a really bad use of money ripped out of Super :D.
     
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  13. geoffw

    geoffw Moderator Staff Member

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    It has had the effect of lots of really good Mexican food at home. They didn't have Uber Eats back then.
     
  14. kierank

    kierank Well-Known Member

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    Who said they committed a crime?
    Obviously they changed the plans after winning the money:

    “Jess confessed that the television series will be a huge advantage to their children. She told Current Affair,

    ‘IF WE GIVE OUR KIDS A HEAD START NOW WE HOPEFULLY SET UP OUR GRANDKIDS, THEIR KIDS, THEIR KIDS, THEIR KIDS,’ ‘SO TO BREAK THAT CYCLE OF “JUST GETTING BY” IS A REAL HONOR.’

    The couple is putting all the effort to win the prize money. And if they won the prize money; Jess said that it ‘would be life-changing for us and our family’.

    Speaking to New Idea, Jess to-be-husband said,

    ‘IF WE COULD WIN A FEW DOLLARS AND WIPE OFF A FEW DEBTS SO WE DON’T HAVE TO WORK AS HARD AND SPEND MORE TIME WITH THE KIDS, THAT WOULD MAKE IT ALL WORTH IT.’

    On the other hand, Jess admitted,

    ‘WE’RE TOO BROKE TO GET MARRIED. AND WE WANT TO HAVE ANOTHER BABY, BUT FINANCIALLY IT’S JUST NOT POSSIBLE, ...”

    The Block Jess Eva Wiki, Bio, Age, Height, Husband, Norm Hogan, Net Worth
    From the link in the OP:

    “During the chat, she admitted: “We’re not the greatest with money.”​

    Looks like they judged themselves for all to see :rolleyes:.
    But everyone knows that one should put a few dollars aside for a rainy day, in case the cow manure hits the fan, ...

    From the link in the OP:

    “We live week to week, so we need that money to pay our rent,” she said.”​

    “Now, she says they’ve put themselves on a savings plan, believing Jess’ job at Triple M is their second chance.“​

    Maybe they learnt that lesson now;).
     
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  15. willair

    willair Well-Known Member Premium Member

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    Had a mate who was a Taxi driver in ntn NSW maybe over 20 years ago..He played the same number's each week never missed..
    He won over 1--5 mil from memory and blew the lot within a year ..
    He could have back then bought the entire taxi company,but used to go too the Uki pub each morning run 4 pokies machines at once ,put beer coasters into the slot and just walk up and down putting money into each machine ..He could have bought property ,CBA and lived anything he wanted but never did ..
    That's the difference between with money if you never had 20 cents in your back pocket as he ended up again a Taxi driver after less then a year..
     
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  16. Lacrim

    Lacrim Well-Known Member

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    I guess if you're gonna do that, you don't deserve to win in the first place. At least he pumped the money back into the economy. The Govt thanks him.
     
  17. willair

    willair Well-Known Member Premium Member

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    Lacrim,I guess that's why a few **** on long term simple property investors who became ten twenty plus baggers investors over time ..
    Like Oscar Wilde once quoted .
    We are all in the gutter, only some only look at the stars ..
    I started in the gutter .
     
  18. jaybean

    jaybean Well-Known Member

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    It's basically the same story with anyone who inherits money before learning how to make it themselves.

    I have a saying: if you didn't make it, you won't get to keep it.
     
  19. kierank

    kierank Well-Known Member

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    So did I :p.

    Left home with $50 in my wallet - cash from my parents to buy myself a 21st birthday present :eek:.

    Every time I started to make my way out of the gutter, a storm would come and wash me down to the bottom again plus gouge out the gutter to make it deeper.

    It is not always easy but, with perseverance, one can get out of the gutter.
     
  20. MTR

    MTR Well-Known Member

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    in Australia Average age of inheritance is 50 years and older. As we are now living longer may increase

    Also median estate/inheritance in Victoria is around $500,000, this would be distributed amongst siblings??? So significantly less, dependent on number of siblings

    Grattan link below, could not find most recent, still interesting numbers. Perhaps someone could find 2020??

    Here's who is getting inheritances in Australia and here's why we need to rethink them
     
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