Friday, January 04, 2008

Poverty Strikes

Why do I feel like such a poor person? I work hard enough and I don't spend huge amounts on myself. Yes, bills are high, but on paper they look easily manageable. Clothes wise in six months I have bought a couple of shirts for less than $80 combined.

Everybody I know seems to have plenty of money to flit off overseas whenever they want, buy nice things, have a new car, bring up children, while I think I will have to do a cash advance on my credit card to survive for the next week.

Where have I gone wrong?


  1. Being a young 'un, I can't exactly give you financial advice, since my debt would drown an entire basketball team standing on each others shoulders. And I always feel like all my friends seem to have heaps of money to spend on whatever they want, they never seem to have to worry about buying dinner out, clothes every week etc. I have no idea how they do it.

    I however, am very undisciplined (word? not a word) with money. I didn't get pocket money as a kid, and I think this is part of it. I started working at 15, you would think this taught me the value of money but instead I thought 'woohoo this is my money and nobody can tell me how to spend it' and I would spend a whole $3-400 paycheck in one week, while I was at school and living at home. What have I got to show for it? Nothing at all. These days, I've been getting better results with budgeting - have a quick search for the Pear budget template, that's what I use. It sets everything out fairly easily so you can allocate your pay (whether weekly, fortnighly, monthly etc) to all your regular and anticipated expenses. I also find the best way to budget enough money is to overestimate how much everythng will be. A phone bill of $45? Assume $50 on your budget, and so on.
    It's also been easy for my friends to save because they're working towards a goal - house deposit, car loan, overseas holiday. Even if it's something like a new hard drive or whatever, you can plan to save for 2-3 months and thereby spread the cost a little.
    Oh an just to make this a total essay, I use a couple of accounts. I have a direct debit on pay day going straight into a savings account, so I never see my full pay check and think I have all that money to spend.
    You're probably not asking for advice or anything, just generally bemoaning the whole grass is greener thing, but oh well. maybe I should write a post on this instead of just writing essays on your blog?

  2. Hahaha my comment is longer than your post. And now I've done two! I am worst commenter ever!

  3. Ripper comment Non Blondie. At your age you should budget. At my age, I should not have to. I should be managing my investments. But then I never got pocket money either.

  4. Money? What's that?

    The root of all evil according to some.

    There y'go Shirl, I've fed you a good line. Run with it! :0)

    Belated Xmas and New Year's good wishes me ole china.

  5. Maybe it runs in my family - being crap with money. I have some successful family members who are sensible, but then one aunts hosue is still mortgaged to the hilt (possibly twice) after 25 years - although she is a single mum, and another married aunt who rents, doesnt own a car, and doesnt have investments.

    Pocket money is the key, I think!

  6. Missed you M'lord. Hugs to a straight man.

    Travelling Aussie in old blighty Non Blondie. You are doing fine.

  7. Andrew, don't touch that man, you don't know where he's been or what he's been doing or to whom.

    I have direct debits for all the utilities which cuts the pension a lot but it evens out the bills over a year. St George gave me a credit card but won't raise the limit unlike other banks. I'm up to the hilt bar $200 and most of that debt is dentist for me and vet for the cats (now deceased).

  8. His whiskers would tickle a lot I think.

    Well, you have two of three most expensive services Jahteh, vet and dentist. Avoid the hat trick and keep your HOUSE plumbing in order.

  9. Having never had much money I know what it's like. Friends going overseas, buying cars etc, hell some are even buying property; that's what friends seem to do. Mind you they all get paid more than me.

    What I recently did was put some of my savings in to a nice little INGDirect savings maximizer account. Just watching those savings mount up is amazing. I'd recommend looking in to it even if you can only spare a small amount each pay day.

  10. I think I will do that, or similar Ben, thanks. But my point is at my age I should not have to. I really do have to address my financial situation.

  11. Budgeting is overrated. That's why I never do it - although that is a lie. I have a travel account (though I don't have much other in the way of savings).

    Worrying about money is the supreme stress.

  12. Salary sacrifice Andrew!
    And get ruthless with non-essential spending.
    Set a realistic savings goal each week after bills and stick to it.

  13. You are back Rosanna! :)) Don't care for budgeting. Money come in, it goes out. But something has gone wrong this fortnight.

    I can't salary sacrifice Jayne, because of my defined benefit super or something like that. I have not spent much at all on non essential and apart from saving to buy my first house close to thirty years ago, I have never saved money since. You are right of course. Hopefully some recent public holiday penalties will help.