Hi everyone me again,
I was just wandering is there are any stories out there, where you are middle age (like hubby and me say 38 to 50 or older) and have nearly lost everything, and still had a lot of debt,(like us) but got there way out of it and are financial indept, or on the way?
Dont get me wrong I’m doing the 33:30 chanellenge on steve’s lastest book and can not wait until I pay my first 1000.00 of some debt.
But it would be nice to hear your stories and what was sacrifice along the way?
I’m finding it hard to get hubby and kids to take a life sytle cut so we can get out of all this debt,
regards
[thumbsupanim]Dr.Spock
“you never never know if you never give it a go”Come on there has to be someone??
Dr.Spock
“you never never know if you never give it a go”I can only tell you Spock that I had 10 very tough years in building up my business. Several times I did not think I would pull through and at one stage only my wife inheriting some money kept us afloat. Seven of those ten years we were on a health care card and my employees and subbies were making more money than us.
Half the roofing companies in Adelaide have owners who went broke at least once before.
I also know a guy who went broke with his regional airline and a guy who a skylight company.
I believe both of them have manage to buy another PPoR. I do not know about any IP.
Not sure if any of this is what you are after.
I think that most people who are into IP are less likely to go broke. Lavish Live styles, investing in Futures, Options, Shares, etc are much more likely to ruin you.
I wish you good luck with the 33:30 challenge and hope that you can convince your family the principle of delayed gratification.
Where can I find information regarding the 33:30 challenge?
Hi
I lost all my savings and ended up with heaps of debt when I was conned into purchasing a non existent business when I was 30. I learnt the meaning of due diligence and how to read contracts after that. I had enough money to put a purchase on a house but I thought I buying a business that would make a good return and I would buy later. Enough of that part of the story.
I ended up living back with my Dad. For just over five years I lived on a strict budget, drove old cars and didn’t do much. When I had nearly paid off the debts I recieved a letter offering me a pre-approved credit card and I realised that my credit position had improved. I decided that I wanted my own place so I went around the banks to see if I could get a loan, my Dad helped me out by guaranteeing the loan and using the equity in his place as security. So now I am on the rise again. I used the equity in my place to purchase a nearly positively geared property and I am hoping to make another investment this year.
I still count all my pennies and stick to a budget. You will have to draw up a budget or at least add up all your income and outgoings to show your family the position you are in at the moment and get them involved in some way to get everything under control, ie make it their problem as well.
Losing all brick and mortar assets and other material things does not mean you have lost everything. If you maintain the MINDSET that enabled you to accumulate those assets in the first place, you can do it again!
On the flip side, people with a poverty mentality will always lose everything even if they were given $10 million. This has been proven many times by lottery winners who were previously poor.
My parents lost EVERYTHING in a war in the 70’s, investment properties, PROP, savings, jobs, commercial buildings wehre they conducted their business from, cars, family, friends etc…
They were sponsored into Australia by family members and bought with them one suitcase between 2 adults (in their late 30’s and 2 children).
They did not lose their investor mentality! [biggrin]
Now they have more assets and more money than people who have been born in Australia and who have never lost anything!
Moral of the story, it’s not about money, its about being able to think in a particular way!!
Investment Property Management
http://www.adprop.com.auHello Dr. Spock
Here is a link to an article I was reading on getting rid of debt. You, and specially your husband, might find it an interesting read too.
Go to the PDF entitled “How To Become Debt Free (Including Your House & Cars) In 3 To 7 Years” by John Burley”
http://www.gatherumgoss.com/free_stuff.htm
Good luck [thumbsup2]
ElkaTo Dr. X – agree entirely. Mindset is everything. “Think and Grow Rich” – Napoleon Hill is a great example.
To Elkam – another great book by John Burley – “Money Secrets of The Rich” is actually a nuts and bolts guide to wealth for the non-rich.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hello L.A. Aussie
Is Money secrets of the Rich a “how to save” or “how not to have debt” book? If not can you please give me a very brief overview of it. The title sounds good. [smiling]
I’ve always had one rule. If I can’t pay cash for it (even a car) I can’t afford it. The only exception is for property.
I am coming to Australia next month to visit my family and am trying to make an “absolutely must have” list of books to buy while I’m there.
Thanks
ElkaJust something i read in a finance column (the barefoot investor courier mail qld ) don,t go to a morgage broker but a community-based financial counsellor, you can find one in your area by calling ASIC on 1300 300 630 they will look through your situation and provide you with some options the rest is up to you
Oh forsure , look at Bond his back up there again .
Been there myself once or twice too , mostly self inflicted mind you due to 10 yrs of travelling and too many sunny beaches instead buying a house like everyone else .
Almost lost my latest place just before Christmas , now l have two , well the 2nd is happening now through a strange twist and looking at a third . Go figure but it has been a three yr climb .
lt can all change in a heartbeat but the good news is for the better not only the worse , never right it off’s my thinking.Cheers
ps , ok it is poss’ Bondy might have had 20 bucks put away for a rainy day but eh .
What about the Kernel , on the dole at 60 .
Actually l heard often people that make money early in life go broke later , dunno if it’s true.Hi Elka,
J.B’s book is an A-Z of how to get out of debt, how to maximise your standard of living on your present income, and free up more cash for investing, and finally a section at the end about investing; but not a great deal of ‘nuts and bolts’ on that.
It also goes into the mindset of the wealthy; what they think about, how they manage money etc.
It has some fantastic stuff about everyday things such as insurance, buying cars and household stuff, how to pay off debt, credit cards etc, etc. and it is very in depth. It lists lots of websites to look at to help the reader, and there are many great little quotes from various famous (and unknown) people.
Excellent for both learning how to save and get rich, and how to get out of debt.
By the sounds of your post, he would be preaching to the converted when you read it!Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Few yrs back we were DINK with good income in Melbourne.
we bought a block of land with potential to subdivide into 2 units. had no idea about value add or even neg gearing. so we built a 4 Br house [stretching ourselves].Transferred to Brisbane and rented our brand new house in Melbourne. sold it just before the 2000 boom to repay a minor [10k] debt. no idea about refinancing!!!
Lost job and moved to sydney at low money. scrapping the bottom of the barrel. hand to mouth existence. lowest part of our life. this is when we opened our eyes and realised that we needed to do something.
Lost job in sydney!!! mioved to melbourne. got a job. started looking at IPs. now have 2 units and an almost complete Townhouse. also exploring other business opportunities and some look promising.
Moral of the story: sometimes you need a serious jolt in life to get you moving.
if we hadn’t hit the low in our life, we probably would have had
our own house and maybe one IP. we certainly would not have explored all other options to get out of the rut.kattan
Jason Whitton (Co-founder of Source Wealth) nearly lost everything before becoming a very successful property investor.
“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
hi all
interesting post.
not many have said they have gone broke and come back this is very interesting to me as most very successfull people have been broke or near to it.
you only know the value of money when you don’t have it and then when you have been to the bottom of the barrell you know you are not going to level again and yes I have been there and I am a little higher on the investment ladder
but it also gives me that little edge when doing a negotiation.
for me I have been cleaned out three times but it has given me alot more knowledge on liquidatores, administrators and there powers
I remember a very good saying that the strongest rose is the one that fights for sunlight and have found this to be very true.
its not how many times you get knocked down, its how many times you get up or from rocky its not how hard they hit you but you get up and hit them harder these are all very true.
your post is have people been wiped out ?
simple yeshave they come back ?
yes
are they stronger ?
yes
not sure of the 30 30 challenge as I don’t rely on any booksas for the 1000 debt not sure
try 10,000,000 debt
debt is not a bad thing as long as you have a structure that covers the debt its a very different mind set(and I don’t sell books)here to help
contact me [email protected]I read that Robert Kiyosaki and his wife were living out of their car for months after loosing it all in a failed business. He certainly came back from this.
Also, a family friend who was raised in an orphanage in sydney, managed to become one of the wealthiest men in Sydney. He lost and regained his wealth numerous times, but always came back stronger, bigger and more extravigantly.
wealth is not the breaks people get, but the mindset…
In 1999 I divorced my wife & walked away with $10K worth of Telstra shares – which in time halved in value to be worth $5K. She kept the house & everything else we owned which was fair enough because she would be the primary care-giver to our one year old daughter.
In 2007 I own four properties with minimal debt and feel like I have come a long way since 1999….
I got here thanks to three main principles / approaches:1. Always spend less than you earn. Never own a credit card. Always pay cash. Don’t get sucked in to being a consumer. I went without plenty of stuff at the time…But I don’t really remember what it was now – I don’t go without much at all now.
2. Invest what you save in growth assets. Wealth might not happen overnight but you will get there.
3. I happened to invest in real estate in Perth during the biggest real-estate boom we have ever seen. A fair bit of luck at play here.
I just hope all the “experts” who have made money in Perth real estate (like me) take the time to use the money wisely & make it last a lifetime. There probably won’t be another chance to do what we have done in the short time we have done it.
We are not experts. We just got lucky. It’s now up to us to use our brains and improve our lives & the lives of our family.
[biggrin]Hi.
While I can’t say that I’ve hit rock bottom I did have, at one point, ‘bad’ (read as Credit Card) debts totaling about 1/3 of my yearly income. With planning, solid professional advice, lots of self education and a little good luck (leveraged, I have no doubt by my positive attitude and education) I got out of the hole and now have a modest though growing investment portfolio and NO credit card debt.
The pivotal point for me was reading George S Clason’s classic and powerful ‘Richest Man in Babylon.’
As for the family’s attitude, why not begin by making barely discernible lifestyle changes like buying the cheaper brand at the supermarket (amazing how little changes make a difference over the long run)?
Best of luck!
Art.
‘Great spirits have always encountered violent opposition from mediocre minds.’ – Albert Einstein
Dr Spock
Just came across a great comprehensive website Understanding Money.
http://www.understandingmoney.gov.au/content/default.aspx
It has a useful budget planner, a financial calculator, and suggestions and links to help manage money better at any stage in our life cycle.
It is unbiased and educational. For me, it’s time to set things in motion for 2007.
Cheers
CT
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