Just got onto the property ladder at 48....after a career in banking

She also helped control her love of shopping by embracing popular minimalist fashion challenge Project 333, which involves building a “capsule wardrobe” by dressing with just 33 wardrobe pieces for three months at a time.

 

I going to make a controversial post......well I always do..he ..he....

I see a lot of people in Sydney get trapped in keeping up with the Jones to the point of killing their financial security. I see people borrowing great incomes borrowing 1.5-.1.7m and buyinf luxury cars. A lot of these people earn combined salaries of over 400k-. But tax is the great equalizer...in the end they end up with around 260k-310k net.

Just on cars I have seen payments of 2-3k per month for a couple and a mortgage of 1.5m to 1.7m will cost about 110k. So at the top end of the above salaries...they have about 165k left over...add to that 2 kids in childcare and private schools they have very little left over. They are tied to fancy corporate jobs for the next 20 years....usually they earn this sort of money in their late 30s and early 40s. If they get axed their world could come crumbling down......

 

Ahh the poor millionaires... seems to be a growing demographic.

As for the OP I have seen this quite often since the 90s.
Basically she blew 20yrs of income, endless bad choices and now predicates.

 

@sash I can hear the world's smallest violin playing lol

 

Miniature Violin With Case Music Instrument Gift Collection Brand New Small Tiny | eBay

I literally bought one of these. I love bringing it out when people have a whinge. It shuts them up real quick.

 

I hope that was for investment not their first home...?

 

I actually admire this lady and this article!
To me it encompasses, change, courage, hope, determination, perseverance, basically it is never too late if someone is willing to change... and if they want something bad enough.
I try not to judge, we are all different and human, and this article also proves a dollar saved is a dollar earned in her situation. Good on her!
I always say.... "....it's not the money we earn but what is left that matters!".
Also, I like the other strategies mentioned, changes in savings, making it automatic, saying no, minimizing wastage.
Sorry, but I see this article as an inspirational story to others that it can be done if we realize that's what is most important to us and we are willing to change!
As my mentor Jim Rohn said, "The MAJOR Key To Your Better Future Is You!". Not all that other irrelevant noise out there....

 

Yep...I prefer a violin case with something else in it...to give dem an offer they can't refuse.

 

Sorry....


See quote below....

 

The difficulty with much of the western worlds view of wealth is summed up as:
People want to live like the rich, not work, struggle, save, invest, risk and go without, like someone who is looking for the security that comes with being rich.

And to start, always get the cheapest car and accommodation that you can get away with, until you’ve made it.

 

It seems the moral of her story is self control. Perhaps moving into an NPO woke her up to her ways. Maybe in the banking industry she was surrounded by people who splashed the cash around and she got caught up in it.

The things she did to help herself are really just things that others do anyway.
But there are all types and there are plenty of people who can't help themselves when it comes to a credit card in their hand.

I have another theory about why she was frivolously spending money previously and perhaps even still now (just not as bad), but I got a bit of stick on another thread for offering advice in this area, so... nart.

 

Looking back was the property a good investment ?

 

This is gold. Great advice Car tart.

My wife and I are planning to raise our future family in a modest PPOR home, so that we can be free to:
1) Invest in other income producing assets over time
2) Don't have a non-deductible mortgage so we are not making career decisions purely based on money
3) Spend more time with family and not be slave to our work and feel trapped
4) Our kids to grow up in an environment where they are not entitled and see what it takes to build their lives

That and we don't want to spend a lot of time cleaning / gardening!

 

it is very easy for you to fall in and keeping up with the Jones if you surrounded by them, only the one that has strong will discipline can break away from the pack and forge their own identity.

I know a few, lease car, send kids to private school even thought they cant afford it and often run into money trouble, living pay cheque to pay cheque, they tried to suck you into their circles but we manage to escape all that, well I did but my wife it took me a long time to explain to her and thank god she saw the light.

I know it very hard for people to break this cycle as they seeing driving an old car or kids going to public school is something to be ashamed off, I think it just people personality and mentality of how they brought up and this is very hard to change.

it is something I am very conscious off and lucky I have wipe this ideas from my kids head since they was young and now they see the benefits of living within your mean, stress free life style and never have to worry about money or work in Job they dislikes because of money

 

100% agree.....this charade is perpetuated by many in corporate jobs.

Most millionaires are met know the value of the dollar.

But there is a balance...I know some on this site still drive very old clunkers which unsafe and have taken to the extreme. There is a balance.

Unfortunately....this women probably expected to marry a rich knight...it did not happen. Well one of advice sisters have to do it for themselves. Women generally better than men with money...but the key is they still lack the confidence to build wealth....more aggressively. Though it is changing.

 

I can’t emphasise how important that is. We lived in worst house in best area and kids assumed we were poor as all their friends at school went on holidays overseas and we would spend a week on the Gold Coast in a rental. As the kids got into their mid teens, the 4 of them (3 yrs 5months between them) had a meeting with us and asked “Are we rich?” I then explained how we had a lot of assets but not a huge amount of income as everything goes in paying off mortgages and building the family business and that every dollar a parent spends could have been invested and would have doubled in 6-7 years.

They took this well. The three girls now own 3-4 investment properties each and were net millionaires in their late 20s. (now 31- 32)
My 34 yo son owns a little 1 bed unit, has no savings, lives with me and lives like a billionaire as he is an international entertainer working on cruise ships.
Each is happy with their life and there is no right and wrong.
But I wouldn’t take RE advice from my son or the 48 yo that the op is about.

 

That is because most people are sheep....they are followers not leaders...

I see the same on this forum...where people are buying in areas from people who APPEAR to have made it...but all they are doing is promoting their businesses. I laugh at this all the time....most are brokers or buyers agents. That unfortunately will not lead to riches. And the fact that they have down this path indicates they have poor judgement and business savy skills.

 

I was talking to my mate’s wife last week.

She is still ecstatic .

So, I guess so. Happy wife, happy life and all that !!!

 

Totally agree we don't drive an old bomb, but a balance between safety and price
when we have money we buy newer, safer car but no BWM or Porsches.
Newer Subaru, Toyota and Mazda drive just as good and comfortable

 

Yep...BMW and Porches are unreliable....the Japanese have the right mix of safety, feature and price.

I drive a Mazda 3 (near top of the line)...the new one (Mazda 3) is one of the safest cars on the road.