Society & Culture Things in life you just don't understand - Part 2

[Catfish Alley]

Kids don't have to be that expensive in the first couple of years. It's more that families are usually cut down to one income. They are way more expensive as they get older.

 

[Scotland]

What???

What's the issue?

Assuming full time work paycheques are the same week to week. Expenses aren't. If you say 'Well I get $1000 a week so can only ever spend $800 so I save 20%' that's simplistic. What if you get a $100 a week pay rise? Do you then spend an extra $80 a week and save $20?

I get paid fortnightly and have bills monthly, two-monthly, half-yearly and yearly plus ad-hoc expenses. Around the middle of the year I'd be lucky to save anything as the annual bills come in. Other times I might have no bills coincide with a fortnightly period so will save heaps. I don't set hard and fast targets each fortnight because I know roughly how much money I earn and spend in a given year and the sort of lifestyle I can and cannot afford.

People who aren't good with money will look at a pay period with a heap of bills and stress out that they aren't going to save their x% and eat two minute noodles then get to the next pay period and go shopping because they're ahead on their budget. I've seen it.

 

[Scotland]

Kids don't have to be that expensive in the first couple of years. It's more that families are usually cut down to one income. They are way more expensive as they get older.

Depends if you buy $1000+ prams and whatnot. Some people go completely OTT. The baby industry is massive and I had no idea about any of it until friends starting breeding.

 

[Catfish Alley]

As I said, it doesn't need to be that expensive.

 

[Off The Couch]

What's the issue?

Assuming full time work paycheques are the same week to week. Expenses aren't. If you say 'Well I get $1000 a week so can only ever spend $800 so I save 20%' that's simplistic. What if you get a $100 a week pay rise? Do you then spend an extra $80 a week and save $20?

I get paid fortnightly and have bills monthly, two-monthly, half-yearly and yearly plus ad-hoc expenses. Around the middle of the year I'd be lucky to save anything as the annual bills come in. Other times I might have no bills coincide with a fortnightly period so will save heaps. I don't set hard and fast targets each fortnight because I know roughly how much money I earn and spend in a given year and the sort of lifestyle I can and cannot afford.

People who aren't good with money will look at a pay period with a heap of bills and stress out that they aren't going to save their x% and eat two minute noodles then get to the next pay period and go shopping because they're ahead on their budget. I've seen it.

What would you do if you lost your job. How long could you manage your expenses without your income.

We save x% of our pay and have done this by accounting for the expenses that occur over the year so that we never have to stress over any bill or "time of the year" and still manage to save and enjoy dining out, holiday etc. without ever having to resort to two minute noodles or forsaking our lifestyle. Contrary to not being able to "manage our money" by following this method it allows us to enjoy a stress free (money component) life.

Each to their own but it's certainly not a matter of not being able to manage money, I actually think it's the opposite

 

[Scotland]

I'm not saying don't save, I'm saying that sticking to a religious x% per pay period is silly. Sometimes you are able to save more, sometimes you cannot meet your target. I've seen people get hung up about it and still be terrible savers.

 

[MrsEddieBetts]

We save a % of each of our incomes and it works perfectly for us. Different strokes for different folks.

 

[Brad Goodman]

People define savings differently. If I save some money and then spend it on a holiday or a car service I haven't saved it. For me, saved money can only go towards investments. Others might not have such a strict definition.

 

[JG22]

Culture kings hiring a dj to play club mixes at midday on a Tuesday in a clothing store.

 

[Scotland]

Culture Kings is horrible. Complete oxymoron of a business name.

 

[Cruyff14]

Depends on your priorities and stage in life.

I still remember my first full time paycheque and it was less than I got working heaps of hours over the Christmas period in a supermarket but still way more than I was used to seeing on a regular basis as a uni student. Fast forward a decade and that paycheque wouldn't cover my current expenses. I'm not rich, but I'm not 22 either. I could live in a share house forever and drive a car that may die at any moment etc. and save like a mad kent but I'd prefer not to. Life's there to live.

I'm a firm believer in saving when you can. Saving a set x% of your paycheque each week is for people who can't manage their money. I just spend what I need and save the rest. If I got a 10% pay rise tomorrow I probably wouldn't spend any more each week because at the moment I don't need to.

Save what you can, but if you can save more, and still live, do so.

We moved into our place this month and our mortgage repayments are $1910/month. We put $500 a week on them. We've already made $3000 worth of repayments because we received some of our stamp duty back that we didn't expect, and additionally we gave my mum $3000 back we owed, and put more away into another account for an engagement ring.

People look at saving as a bad thing. I think it's one of the best things you can do. Get yourself into a great position financially and things are much easier.

Attempting to save X amount of dollars is a good way of doing it. Some weeks it's not going to possible, but most of the time it should be, particularly if you put money onto your bills each week/fortnight etc.

Yeah, got to say I'm similar. I'm a bit older I think and with kids so feel the need to plan. Also been lucky with a few things. The forced Super in Australia is a good thing. We don't have that here.

Planning is great. Always good to map out how much you're going to need, and what you can and can't afford etc.

No point going and blowing $1000 on a new suit when the rego is due or something.

 

[Scotland]

We save a % of each of our incomes and it works perfectly for us. Different strokes for different folks.

Again, saving a % of overall income is prudent. Saving a fixed % per pay is silly. Kind of like saying you have a budget of $20 a day so can only ever spend $20 in any single day.

I get paid fortnightly and my home loan comes out at the end of each month. So every second pay has a big chunk taken out of it almost immediately. With bills coming monthly, two monthly, annually etc. it's hard to normalise any one week/fortnight/month of expenses to set a target that has to be stuck to every week. I've worked out all my bills (roughly) on an annual basis, so I know that over the course of the year I'll spend say

I think we're all arguing for the same thing, I just think people get stuck following stringent rules that actually work to their detriment. I.e. they end up spending to 100% minus whatever their savings target is regardless of circumstance at the time when in reality to save say 10% you are going to be anywhere from spending more than you earn to saving 30 or 40% per pay.

 

[Off The Couch]

Tip: pay your mortgage fortnightly
You'll pay it off faster

 

[Scotland]

Save what you can, but if you can save more, and still live, do so.

We moved into our place this month and our mortgage repayments are $1910/month. We put $500 a week on them. We've already made $3000 worth of repayments because we received some of our stamp duty back that we didn't expect, and additionally we gave my mum $3000 back we owed, and put more away into another account for an engagement ring.

People look at saving as a bad thing. I think it's one of the best things you can do. Get yourself into a great position financially and things are much easier.

Attempting to save X amount of dollars is a good way of doing it. Some weeks it's not going to possible, but most of the time it should be, particularly if you put money onto your bills each week/fortnight etc.

Time is money, money is time.

It might take you a month to save say $500, but $500 is enough to get by for one week. So for every month you work to save the $500 you effectively save a week of not having to work. That's how I look at it. Work 12 months, save $6,000, see it as 12 weeks up your sleeve.

My most expensive month is usually around the middle of the year (car rego, house insurance, council rates all at once) so I keep enough aside for that month and then just go from there. People massively underrate minimising the stress of no having to worry about money and instead just buy lots of shit.

 

[edgie]

My default is save as much as possible and only spend if I need to. Some may not consider that fun but I don't find new things to equate to enjoyment.

This month I bought three new pairs of shoes (one for work), some star wars costume stuff, and a nice winter jacket. First things apart from video games, grog, and project car related expenses I've spent on myself for two years.

I feel guilty as shit about it.

Oh, just remembered I did buy the Port '97 heritage guernsey as well early last year.

Sent from mTalk

 

[GeelongFTW]

Tip: pay your mortgage fortnightly
You'll pay it off faster

anyone that doesn't do this is silly. total interest paid will decrease as your pumping payments in more regularly and funny enough you actually put in more payments fortnightly than monthly. ( Fortnights in a year =26; 12 months* 2 weeks =24)

 

[Scotland]

What if you have an IO loan with interest calculated daily and charged monthly?

 

[JG22]

To add :Shoe stores that hire utter morons to walk around and chat to their mates. When they do serve you they refer to you as 'man' or 'bro' without fail.

 

[perthblue]

instead of fussing around with savings, bank loans and mortgages, just spend all your money on overseas mongering. much more rewarding.

 

[Off The Couch]

What if you have an IO loan with interest calculated daily and charged monthly?

Why would you have an IO loan other than for an investment property

 

[Scotland]

Why would you have an IO loan other than for an investment property

For a future investment property.

 

[chargers 09]

Tip: pay your mortgage fortnightly
You'll pay it off faster

Depends how your lender calculates interest and break costs.


Sent from my iPhone using Tapatalk

 

[perthblue]

funny enough you actually put in more payments fortnightly than monthly. ( Fortnights in a year =26; 12 months* 2 weeks =24)

gonna need a source for this

 

[GeelongFTW]

gonna need a source for this

52 weeks / 2 = 26 fortnights?

 

[GeelongFTW]

if you really need a sauce

As some months have 30 or 31 days, over the course of a year, these ‘additional days’ make up two fortnights. So, by repaying your home loan fortnightly, you make 26 payments—the equivalent of 13 monthly repayments.

If you can afford to do it, it’s a simple yet effective strategy to drive down the cost of your loan.

https://www.amp.com.au/personal/new...ake-my-loan-repayments-fortnightly-or-monthly