Why don't normal people think like us?

Discussion in 'Investor Psychology & Mindset' started by Tim86, 18th Jul, 2015.

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  1. OC1

    OC1 Well-Known Member

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    Personally, i don't think about this issue anymore. Not everyone wants to be involved in property or investing for that fact. I'm sure those that sell up and travel the world think those that have millions in debt are crazy, yes? :)
     
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  2. 2FAST4U

    2FAST4U Well-Known Member

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    I believe in investing and I've got the mindset for it but it's not for everybody. Most people especially when they have a family and kids just want to work and pay off their PPOR so they have stability.
    Sometimes the consequences of poor investment decisions can be dire. One of my girlfriend’s colleagues committed suicide a few months ago from having too much debt. The guy had 4 kids and his wife was a nurse and they had a pretty nice PPOR but nothing extravagant. He got a job at the mines and bought 2 investment properties. Than he lost his job at the mines and went back to my girlfriend’s work because obviously he had bills, mortgages, debts etc. to pay so couldn’t be too fussy. Anyway the guy didn’t turn up to work for a week and they thought he was sick and they later found out he killed himself.
     
  3. Tim86

    Tim86 Well-Known Member

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    I wouldn't blame debt for his suicide.

    Suicide is caused by lots of things. But the debt was just a stressor.

    If your car was 40 years old and the engine was shot, and one day while driving up a hill the engine finally died and stopped working...you wouldn't tell everyone to avoid driving up that hill because it's going to wreck their car.
     
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  4. 2FAST4U

    2FAST4U Well-Known Member

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    Everyone has different circumstances and financial means. All I'm saying is that investing is not all sunshine and rainbows and provided an example of that.

    As for the original question it's probably because most people either don't care, think it's too much effort, or just simply don't have the financial capacity for it.
     
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  5. jaybean

    jaybean Well-Known Member

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    Because this stuff takes time and energy. Look at how much time the average person spends on this forum asking questions and reading. Too taxing for the average joe.

    Sure you could say a week here could save you 10 years working 9-5, but most people don't think beyond the next 7 days let alone 7 years.
     
  6. lightbulbmoment

    lightbulbmoment Well-Known Member

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    Exactly by looking at some peoples posts they are on here all day.

    Also Not everyone wants to be 2mill in debt so they can be set up by 50.
     
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  7. MTR

    MTR Well-Known Member

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    Absolutely
    Also, some feel this is very high risk, just not comfortable with debt.

    on the flip side you have some investors who view massive debt, end value of property as success, ignoring actual LVR or equity. Just have to read the API magazine, seems they follow this model.

    Sorry off the subject.

    MTR
     
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  8. Sackie

    Sackie Well-Known Member

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    I cant begin to tell you how many people in their late , 50s and early 60s tell me they wish they had thought differently when they were younger and bought an IP or a few. They said this as they reflected on their current financial hardship and great lack of options in life now as a result of not having at least financial security. Struggling to meet bills, cant help kids, having to work till at least 70 and beyond in many cases. Forget about living the great life upon retirement. Many of them flat out admitted they regret not making better financial decisions when they had the chance.

    Don't believe investing is not for everyone. IMO its essential. Even 1 or 2 ips makes a huge difference when you retire as opposed to none.
     
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  9. Sackie

    Sackie Well-Known Member

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    Perhaps they are financially free to do whatever they want, whenever they want as much as they want. :cool:
     
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  10. fols

    fols Well-Known Member

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    Yes. Me. I don't want to be $2m in debt. I want to be $10m in debt!
     
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  11. Steven Ryan

    Steven Ryan Well-Known Member

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    Here, here!
     
  12. D.T.

    D.T. Specialist Property Manager Business Member

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    I dont want to be in debt at all, I want to be in credit ie assets greater than debts :p;)
     
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  13. Jessproperty

    Jessproperty Well-Known Member

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    Investing isn't for everyone...a lot of people like to take the easy way out.
    Hubby and I used to drive all around Sydney to open homes on the weekends while all our friends went shopping, beach and to cafés for breaky. They used to laugh at us like we were crazy for wanting to put our money into renovating IP's.....then a few years later they started asking us how we accumulated properties and how they could do the same.

    We spent so much time and effort trying to explain the processes and their eyes just glazed over. I can't tell you how many of my friends I found IP's in their budget for them to invest in out of the kindness of my heart in wanting them to succeed...but they did nothing...

    So I give up! These people are having money stresses and aren't where they want to be in life...well not my problem! I tried! You can't change people...if you have the drive you will succeed!
     
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  14. AndrewTDP

    AndrewTDP Well-Known Member

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    Yep. It's 10.30 here.

    I had dinner at 9. I'm now working on my own stuff as well as a few tricky client issues.

    It's not easy. But nothing worthwhile ever is.
     
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  15. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Yeah, being in debt and having debt are a little different.
    The richer you get, the more debt you can hold, and likey at a lower debt ratio.
     
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  16. D.T.

    D.T. Specialist Property Manager Business Member

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    Yea, just play on words. Would love to have 8 figures of debt.
     
  17. jaybean

    jaybean Well-Known Member

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    I really like that quote.
     
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  18. Foxy Moron

    Foxy Moron Well-Known Member

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    Reminds me of my favourite Barnaby Quote :
    "If you do not manage debt - debt manages you!"
     
  19. Ace in the Hole

    Ace in the Hole Well-Known Member

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    This guy seems to have debt and also be in debt:

     
  20. hotmail

    hotmail Well-Known Member

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    There seems a sense of judgement or pride for a lot of people posting in this thread that they are better than people who don't invest in property or those who don't seek passive income/passive wealth or early "retirement".

    Firstly I think we should be happy that not everyone is obsessed about investing in property because that would create a lot more competition in the market for people who are researching and buying properties which would make our tasks infinitely harder and possibly less profitable.

    Secondly, I don't think we should look down upon people who will have to work for the rest of their lives for a living because at the end of the day, most jobs still contribute to services in the economy which all make our lives easier. We still need doctors, nurse, plumbers, electricians, lawyers etc for a functional society. Even if they may be doing it out of necessity or for a living, they are still benefiting their client and the rest of society by offering a tangible service. Society runs better with a whole range of services, not just a bunch of rental properties on the market. We need cures for cancer, our pipes fixed, legal disputes settled, our children educated etc. So I don't think we should denigrate or think less of people who don't have the mindset of being financially free and not having to work.

    That's not to say that financing accommodation for people to live in is not a service, but we need all different types of services for modern society to function.

    Also it's not to say that you can't still do work and contribute after you have the financial capability to retire.
     
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