Why has your household cut back on spending?

Discussion in 'Property Market Economics' started by Peter2013, 6th Dec, 2019.

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Why has your household cut back on spending?

  1. Cost of living exceeds wage growth

    22 vote(s)
    23.2%

  2. Unemployed/underemployed

    7 vote(s)
    7.4%

  3. Could lose job in 2020 recession

    9 vote(s)
    9.5%

  4. Too much household debt (Australia has the 2nd highest level of household debt in the world)

    23 vote(s)
    24.2%

  5. Lost confidence in government

    10 vote(s)
    10.5%

  6. Lost confidence in the RBA (will QE really work?)

    6 vote(s)
    6.3%

  7. Minimalism

    52 vote(s)
    54.7%

  8. Climate Change (Why kill the planet buying, transporting and manufacturing stuff you don't need)

    16 vote(s)
    16.8%

  9. Negative wealth effect from 2017/2018 housing correction.

    5 vote(s)
    5.3%

  10. Current Sydney/Melbourne Housing bubble unsustainable and could crash

    10 vote(s)
    10.5%
Multiple votes are allowed.
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  1. wylie

    wylie Moderator Staff Member

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    Hubby retired nearly ten years ago and each year as the premiums increased on life insurance and income replacement, we thought about stopping them. While we have debt we keep paying.
     
    wylie, 7th Dec, 2019
    #61
  2. kierank

    kierank Well-Known Member

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    I feel that there is no right or wrong answer here. Everyone will be different and it took us a long time to finally “pull the plug”.

    My guiding principle regarding insurance is:
    If you can’t afford to lose it, you can afford to insure it.​

    The corollary to this is:
    If you can afford to lose it, you don’t need to insure it.​

    I am guessing the first principle applies to you and the second one applies to us.

    The main thing is do whatever allows you to sleep at night.
     
    kierank, 7th Dec, 2019
    #62
    wylie likes this.
  3. Phar Lap

    Phar Lap Well-Known Member

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    Kind of fits the dont waste money on thread.
    Don’t waste money on life insurance unless you really need it.
     
    Phar Lap, 8th Dec, 2019
    #63
    kierank likes this.
  4. Heinz57

    Heinz57 Well-Known Member

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    Risk v expense. We were paying $16k a year in after tax dollars we don’t have any more
     
    Heinz57, 8th Dec, 2019
    #64
  5. Damo93

    Damo93 Well-Known Member

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    Perth
    judging by this list I’m a decade in front by studying 17-20 and buying the house and investing in my early-mid twenties! Bring on the 50’s! :D
     
    Damo93, 8th Dec, 2019
    #65
    Scott No Mates likes this.
  6. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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    Minimalism for me, if it serves no practical use I no longer buy it. I'm currently making my way through the house and donating all non essential items to Goodwill. I no longer eat out with the exception of a very rare Vegan pie at O'Connell st bakery and an Almond milk late at Cibo. Which brings me to my next point I have recently become vegan so no longer purchase any type of food animal products. I have also given up alcohol, haven't purchased a drop since July. I do all my own vehicle and home maintenance outside of licensed work.

    Longer term I will be downsing into an apartment in the Adelaide cbd, and will sell my only car. So I guess I'm partly to blame. :D
     
    ollidrac nosaj, 9th Dec, 2019
    #66
    C-mac, Anne11, Perthguy and 6 others like this.
  7. Codie

    Codie Well-Known Member

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    sounds like a good lifestyle to me!! I too aim to simplify and started doing a lot of the same

    it’s amazing how happy and at peace one becomes when you de-clutter and become more sustainable
     
    Codie, 9th Dec, 2019
    #67
    C-mac, Anne11, Damo93 and 4 others like this.
  8. Waterboy

    Waterboy Well-Known Member

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    Denial is Not a River in Egypt
    Less is More!

    I spend less on things so I can spend more on experiences!
     
    Waterboy, 9th Dec, 2019
    #68
    C-mac, George Smiley, Kelvin Cunnington and 1 other person like this.
  9. Sackie

    Sackie Well-Known Member

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    Vaucluse, Sydney.
    I rarely buy anything for myself anymore as I have everything I want at the moment. Spending ALOT on the little one though.
     
    Sackie, 9th Dec, 2019
    #69
  10. George Smiley

    George Smiley Well-Known Member

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    Same here. Without wanting to get overly philosophical, if one is able to find enjoyment and beauty in the simple and even mundane things of life, then spiritually richer that person becomes.
     
    George Smiley, 10th Dec, 2019
    #70
    C-mac, Propagate, Angel and 3 others like this.
  11. Perthguy

    Perthguy Well-Known Member

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    There is a saying that people spend what they earn. The thing is that someone who is happy on a $100,000 lifestyle won't be happier on a $200,000 lifestyle.

    I decided a long time ago to be happy with what I have. I am using the same computer, driving the same car and riding the same bike I bought years ago. And that makes me happy. Conversely, spending money on things I don't need doesn't make me happy.

    It's not minimalism exactly. It's more about being happy with what I have.
     
    Perthguy, 11th Dec, 2019
    #71
    Toon, Bunbury, ollidrac nosaj and 5 others like this.
  12. Piston_Broke

    Piston_Broke Well-Known Member

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    Why would i be cutting back?

    Been working for the last at least the few hundred years.
    The question is what would stop inflation that's been happening pretty much forever?
     
    Piston_Broke, 11th Dec, 2019
    #72
  13. Sackie

    Sackie Well-Known Member

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    Vaucluse, Sydney.
    What your talking about is living each day in a place of gratitude for everything you have in your life, the good and the not so good.

    I totally agree. Once you can shift from a place of glass half empty or need more full glasess to a place of total gratitude for just being alive each day, you'll reach a level of Inner peace and happiness most will never attain. It's a work in progress for me but I'm very close to being there. The more totally grateful I am for just everything, the happier and more at peace I feel.

    And your absolutely right. Getting more things will not make us happy long term. Personally I believe it's two things. 1. Living in a place of gratitude and 2. Making progress in our lives.
     
    Last edited: 11th Dec, 2019
    Sackie, 11th Dec, 2019
    #73
    Propagate, Perthguy, Toon and 2 others like this.
  14. jins13

    jins13 Well-Known Member

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    Cut back on buying coffee from a cafe and instead buying the $2 7-11 coffee instead. Also, buying alcohol from Dan Murphys when its a members sale/discount.
     
    jins13, 11th Dec, 2019
    #74
  15. Waterboy

    Waterboy Well-Known Member

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    Denial is Not a River in Egypt

    I don't even drive a car -- even though I can afford to buy a Porsche in cash!

    I just take the Train to/from work every day and just use Taxi / Uber if needed.
     
    Waterboy, 14th Dec, 2019
    #75
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  16. Someguy

    Someguy Well-Known Member

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    This is an interesting point. I feel for many people just using Uber is cheaper than car ownership and more convenient in many ways. No worries about parking and being dropped at the door for most locations (often illegally but the app allows it) counting drinks and estimating BAC is never an issue
     
    Someguy, 14th Dec, 2019
    #76
    wylie likes this.
  17. spoon

    spoon Well-Known Member

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    Curious where might be another place / country you are planning to go and why so I might consider too. If you care to share. :D
     
    spoon, 14th Dec, 2019
    #77
  18. Waterboy

    Waterboy Well-Known Member

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    Denial is Not a River in Egypt
    must be New Zealand
     
    Waterboy, 14th Dec, 2019
    #78
  19. Waterboy

    Waterboy Well-Known Member

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    Denial is Not a River in Egypt

    Owning a car costs at least $7,000 a year.
    Can get a Euro holiday for that instead!

    Cost of owning a car: fuel, depreciation & more
    (parking not included)

    Small car
    Kia Cerato S ($7,096)
    Volkswagen Passat 132 ($8,908)

    Medium car
    Toyota Camry Ascent Sport ($9,451)
    Volkswagen Passat 132 TSI ($11,654)

    Large car
    Holden Commodore RS ($11,573)
    Kia Stinger 330S ($15,094)

    4WD Ute
    Mitsubishi Triton GLX ($12,012)
    Toyota Landcruiser Workmate ($17,937)

    Sports
    Toyota 86 GT ($10,459)
    Ford Mustang Fastback ($13,974)

    Source: RACQ Running Costs Report, 2019
     
    Last edited: 14th Dec, 2019
    Waterboy, 14th Dec, 2019
    #79
    ollidrac nosaj likes this.
  20. spoon

    spoon Well-Known Member

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    I thought it might be Thailand or Vietnam or Myanmar where with an Aussie property one can live like a king :)
     
    spoon, 14th Dec, 2019
    #80
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