What would you do to become debt free?

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Sinsemilla
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Re: What would you do to become debt free?

Postby Sinsemilla » Thu Jun 14, 2018 1:18 pm

blacklab99 wrote:rb,
That's called "empathy" and something not possessed by many these days.
Unfortunately, some end up on the wrong side of the scale in today's fast paced economic times, just simply left to fall between the cracks.
Not sure if there will ever be a zero count of them, tis a sad fact of life.
The day you feel no empathy for those less fortunate, is really a sad day, but life goes on unfortunately......

I'm picking that the way this discussion is heading, it wont be to long before the big black padlock gets put on the thread !
It's getting a tad personal. Everyone has opinions, sometimes some don't see the other side...........
not much you can do about that, another fact of life me thinks..

Col


Well Said Col.

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sarsi
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Re: What would you do to become debt free?

Postby sarsi » Thu Jun 14, 2018 1:22 pm

blacklab99 wrote:Well, it's an interesting topic.
We are looking at pulling up stumps in 3-4 years and migrating north. Spent a week up Ulladulla way in Febuary and can certainly see myself
living around there, not as hot as Queensland, not as cold as here, water nearby, very enticing.

Can you make more money investing in property, or compounding !
Probably could both ways, everyone has a different mind set or disposable income to throw at either.
I bought my first house, 36 year ago, had 2 mortgages, borrowed most appliances from family and friends and had a clapped out holden which
I couldn't afford the petrol for a full 5 days, so cycled at least one day some 8 mile each way. Wife back then stayed at home to be with the kids.
So is there really a difference in then and now ? I was earning about $130 odd dollars a week, first house cost $ 38000, do the math.

It comes down to, A certain time in the beginning, ya got to do it tough to get a foot in. Population increase has meant proximety has probably changed where you could live relatively close to where you were bought up, now there's more of a distance apart.
But I certainly wouldnt want to be starting out again,,, but believe me, we done it real tough in the first 5-6 year.

About 15 year ago,Superannuation, I realised, wasn't going to do it for me, remember for alot of us, it wasn't around when we started work, So I decided to concentrate on realestate. With out going into detail, we bought, renovated ourselves, sold, and so on, in just over 15 years of bloody hard graft, a recession, and some good buying choices ( some by luck) we got to where we are now, much more than I ever could of achieved pumping my money into shares or super. this will give us the lifestyle we both wanted when we finally pull up stumps in 3 or 4 years.

My pet gripe, and one that will generally get me fired up, is when people look at what we have and say, " your lucky" look at what you've got ! Well, I've worked "F in" hard for what I've got, still doing 6 days a week, while the ones saying I'm lucky sit on there fat arses all weekend and complain about why they aren't getting ahead, and just a side note, most of them earn far more than we do, they just have to have the latest car, latest appliances, overseas every year etc etc. We've travelled a fair bit, as well, and enjoyed ourselves along the way.

There's still plenty of good opportunities in this country to have a crack at what ever you want, be it property investing, share market investing, going into your own small business etc etc, it's up to you ! And maybe some people are just plain happy to retire in there own house, live off there super and pension and enjoy there retirement, every ones different, NO ONE is right or wrong in what ever path they decide to take and sometimes these changes happen a lot later in life when children and mortgages are not such a hinderence.

Just my perspective on things......

Col


I could not agree more.

Financial stability is 1% inspiration and 99 % perspiration. Set the goal, then work hard to achieve your goal. I was born dirt poor, migrated to Australia in 2008 and worked my butt out in a stressful work environment. We are now mortgage free, and I have since moved to a less paying but stress-free work where I have more time for family and my passions - fishing, gardening, basketball and more fishing!
Last edited by sarsi on Thu Jun 14, 2018 2:09 pm, edited 1 time in total.

Lightningx
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Re: What would you do to become debt free?

Postby Lightningx » Thu Jun 14, 2018 1:54 pm

Great to hear mate :thumbsup:

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Re: What would you do to become debt free?

Postby smile0784 » Thu Jun 14, 2018 1:56 pm

sarsi wrote:
blacklab99 wrote:Well, it's an interesting topic.
We are looking at pulling up stumps in 3-4 years and migrating north. Spent a week up Ulladulla way in Febuary and can certainly see myself
living around there, not as hot as Queensland, not as cold as here, water nearby, very enticing.

Can you make more money investing in property, or compounding !
Probably could both ways, everyone has a different mind set or disposable income to throw at either.
I bought my first house, 36 year ago, had 2 mortgages, borrowed most appliances from family and friends and had a clapped out holden which
I couldn't afford the petrol for a full 5 days, so cycled at least one day some 8 mile each way. Wife back then stayed at home to be with the kids.
So is there really a difference in then and now ? I was earning about $130 odd dollars a week, first house cost $ 38000, do the math.

It comes down to, A certain time in the beginning, ya got to do it tough to get a foot in. Population increase has meant proximety has probably changed where you could live relatively close to where you were bought up, now there's more of a distance apart.
But I certainly wouldnt want to be starting out again,,, but believe me, we done it real tough in the first 5-6 year.

About 15 year ago,Superannuation, I realised, wasn't going to do it for me, remember for alot of us, it wasn't around when we started work, So I decided to concentrate on realestate. With out going into detail, we bought, renovated ourselves, sold, and so on, in just over 15 years of bloody hard graft, a recession, and some good buying choices ( some by luck) we got to where we are now, much more than I ever could of achieved pumping my money into shares or super. this will give us the lifestyle we both wanted when we finally pull up stumps in 3 or 4 years.

My pet gripe, and one that will generally get me fired up, is when people look at what we have and say, " your lucky" look at what you've got ! Well, I've worked "F in" hard for what I've got, still doing 6 days a week, while the ones saying I'm lucky sit on there fat arses all weekend and complain about why they aren't getting ahead, and just a side note, most of them earn far more than we do, they just have to have the latest car, latest appliances, overseas every year etc etc. We've travelled a fair bit, as well, and enjoyed ourselves along the way.

There's still plenty of good opportunities in this country to have a crack at what ever you want, be it property investing, share market investing, going into your own small business etc etc, it's up to you ! And maybe some people are just plain happy to retire in there own house, live off there super and pension and enjoy there retirement, every ones different, NO ONE is right or wrong in what ever path they decide to take and sometimes these changes happen a lot later in life when children and mortgages are not such a hinderence.

Just my perspective on things......

Col


I could not agree more.

Financial stability is 1% inspiration and 99 % perspiration. Set the goal, then work hard to achieve your goal. I was born dirt poor, migrated to Australia in 2008 and worked by butt out in a stressful work environment. We are now mortgage free, and I have since moved to a less paying but stress-free work where I have more time for family and my passions - fishing, gardening, basketball and more fishing!


Well done mate

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Re: What would you do to become debt free?

Postby rb85 » Thu Jun 14, 2018 6:22 pm

What I did to become debt free.

Thought id let any tempers ease before I comment again on this thread but I feel there is more to be discussed. Not going to go into exact money figures but people will get the drift.
Have only ever had two debts in my life a car loan and a home loan when I purchased a vehicle financed by a credit union I quickly learnt the impact of compound interest negatively in this case when I read the loan documents and saw the amount of interest payable if I pay the weekly amounts and no extra that alone put me to work to pay it off as quick as possible. Under 6 months rather than the 5 year term.

The second loan I had was for my home that I live in now and hope to for a long time into the future. My home isn't anything fancy has work to be done into the future to get it to how I want it but it's a short drive to the boat ramp and it's comfortable. When I secured a loan for my house I had to save hard for a deposit not only that but also to pay stamp duty and a few other fees money was tight.

Once again seeing the cost of interest on my mortgage I was determined to get ahead to lower repayments and the interest payed. This made me an absolute tightwad and would work any overtime I possibly could. A few years into the loan I started to work smarter not just harder refinancing for a lower variable interest rate with lower fees in an offset account. It was fortunate for me that I had a reasonable run of employment and had put all my money on the house as over a few years I experienced a couple of quiet periods for work that I relied on my offset account to survive week to week.
Eventually work picked up enough that I was fortunate enough to be able to pay off my home saving a few hundred thousand in potential interest.

Few things I would like to mention though is property prices were relatively low compared to now which was fortunate for me, interest rates were at all time lows throughout the majority of my mortgage and banks were more willing to throw cash at people then and now they tried to lend me more than I wanted/need.
Even though I had circumstances work in my favour it wasn't always easy if I had the added stress of extra debt it would have been worse. Now people are finding it harder to break into the property market with less than secure employment/larger casual workforce, higher property prices, higher rent prices making it harder to save for a deposit some people are even moving back in with parents to save and banks are less willing to loan money as they once were. Even if they are purchasing an hour out of the CBD it still isn't cheap.

This post isn't intended to brag some of us are fortunate that we got in at the right time.

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Re: What would you do to become debt free?

Postby rb85 » Thu Jun 14, 2018 6:39 pm

The motivating factors reason to be debt free is financial security and stability
Where to now not closer to the CBD thats too far from the boat ramp and will mean more debt. Will use the most tax effective investment possible salary sacrificing to lower my tax and grow my retirement nest egg may also start investing a bit of money I gradually save using compound interest to over time create a supplementary income stream and slowly add some extra comforts to my home.



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Re: What would you do to become debt free?

Postby 4liters » Thu Jun 14, 2018 6:46 pm

One thing that irks me is property investors saying how hard they worked for it without giving credit to the taxpayer funded handjob they’ve been getting over the last 20 years in the form of negative gearing and the CGT discount. Like sure, they probably worked full time plus a bit of overtime, but let’s not pretend the system isn’t weighted heavily in their favour.
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Re: What would you do to become debt free?

Postby rb85 » Thu Jun 14, 2018 6:57 pm

4liters wrote:One thing that irks me is property investors saying how hard they worked for it without giving credit to the taxpayer funded handjob they’ve been getting over the last 20 years in the form of negative gearing and the CGT discount. Like sure, they probably worked full time plus a bit of overtime, but let’s not pretend the system isn’t weighted heavily in their favour.


Not the way I would have put it but I do agree.

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Re: What would you do to become debt free?

Postby blacklab99 » Thu Jun 14, 2018 7:03 pm

4liters wrote:One thing that irks me is property investors saying how hard they worked for it without giving credit to the taxpayer funded handjob they’ve been getting over the last 20 years in the form of negative gearing and the CGT discount. Like sure, they probably worked full time plus a bit of overtime, but let’s not pretend the system isn’t weighted heavily in their favour.


That's true 4litres, but I was a property investor, renovated and lived in each one and never negative geared, and believe me, I busted my arse !
living in houses under construction, no floor boards etc etc.
Negative gearing, can be seen as, well, Taxpayer Funded handjob I suppose, But there's still a risk in doing it and there's a sh*t load of people out there that have bludged there entire life off the tax I pay too, it works both ways.
It's the same thing as people that put their balls on the line, start a business off, take on all the debt risk, but gets screwed by unions and crap taxes like pay roll tax.
I will never claim a pension, I will be self sufficient, so while I now do negative gear a comercial property, that I work out of, the 6 digit tax plus I pay each year vrs the saving in negative gearing, vrs never claiming a pension once retired, it all balances out.

I'll tell you one of the worst investments I ever made regarding return, owning a bloody boat !.
But you cant put a price on enjoyment I suppose. :-D



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