Other people's facepalm financial management
Discussion
Audemars said:
Careless spending will catch up those that can't afford it later down the line. Such people will live their old age blaming the government for their living conditions.
I know one guy who seems to avoid his careless spending catching up with him (I wish it had) he was £20k in debt a sum he could well have repaid over a few years but oh no the guy declared himself bankrupt 5 years of living in rented with his gf and he's back borrowing again and living beyond his means! How is that fair or even allowed? You hear it all the time even celebrities declaring themselves bankrupt and a few years later are loaded again?! Poor people always seem to pay more for things because of there desire for materialistic things. Look at the APR rates on items from brighthouse etc.
One thing that does make me cringe are when parents with no money go out and get a high APR loan to buy presents for their kids stating things like they wanted them to have a nice xmas etc. No doubt these kids will end up homeless because of the parents stupidity.
If you dont have money dont spend. There is nothing wrong with having no money nor material things.
One thing that does make me cringe are when parents with no money go out and get a high APR loan to buy presents for their kids stating things like they wanted them to have a nice xmas etc. No doubt these kids will end up homeless because of the parents stupidity.
If you dont have money dont spend. There is nothing wrong with having no money nor material things.
Edited by Audemars on Thursday 19th May 09:20
ThunderGuts said:
A couple I know earning ~£30k between them have decided they MUST have a new A6.
Neither is saving into a pension.
But hey, short term shiny shiny.
Must remember that phrase.Neither is saving into a pension.
But hey, short term shiny shiny.
Are they stupid? What are they planning to do when they retire? Kill their parents and cash in?
RenesisEvo said:
dingg said:
TwigtheWonderkid said:
So he's lost out on 10 yrs of 7% free contribution to his pension all because he wouldn't pay in 5% (on which he would have got 20% or 40% tax back anyway).
What a f
king moron.yes - I literally had to nag him for about 3 months until he signed up to it.
I just could not/cannot grasp why he hadn't signed up as soon as he joined the co.
Be interesting if there are any proper stats but they (especially in the NHS) hardly know anyone who has stayed in the pension scheme - they just see it as having 10% of the their salary taken off them at a time when they can't afford it especially on top of making student loan repayments.
The NHS staff, particularly, also think that by the time they get to retirement in 40 to 50yrs time the scheme, and indeed the NHS itself, won't exist anyway.
DoubleSix said:
I'm a stockbroker, got that covered... 
Besides, you really shouldn't look at property and equities as 'either/or' assets. All part of a diversified strategy alongside other investments.
Yup, very sound advice IMO! Besides, you really shouldn't look at property and equities as 'either/or' assets. All part of a diversified strategy alongside other investments.
The real tragedy is how little understanding there is of the stock market. "Waddayamean? 7,000 at the millennium and 6,100 today - it's obviously a loser's game innit?"
Nooooo!! Anyone who's invested steadily through the last 15 years has made an absolute packet - especially if it's in a tax-free vehicle like ISA and/or pension.
DoubleSix said:
Ozzie Osmond said:
DoubleSix said:
Yet I took on a 100% mortgage BTL in 2007 and am up a 100k (50%).
You could have saved yourself the trouble and expense of buying real estate and just invested in the stock market. Up 50%, nice income stream, no tenants to deal with, no transaction costs. Kushdi! 
Besides, you really shouldn't look at property and equities as 'either/or' assets. All part of a diversified strategy alongside other investments.
Edited by DoubleSix on Wednesday 18th May 21:46
I live in a middle class area, mostly people are reasonably well off but many are borrowing to keep up. Here's an example:
We went to a neighbour's for Christmas. She is a mobile hairdresser on pin money but drives a new car every 3 years and he is on about £50k, they had 2 kids 7 and 9. The wife said her budget for the kids Christmas stocking (small pressies) was £500. Each. They then got fancy micro scooters (nice enough!), ... oh and Ipod Nanos, engraved with names, when they first came out, and suitcases (bit crap but...) .... filled with laptops! Plus other 'normal' presents.
Also, I heard that the husband got made redundant but found a new job quickly. His redundancy cleared her cc of £25K and yet a few months later it was up to ..... yep, £25k again! Mental.
We went to a neighbour's for Christmas. She is a mobile hairdresser on pin money but drives a new car every 3 years and he is on about £50k, they had 2 kids 7 and 9. The wife said her budget for the kids Christmas stocking (small pressies) was £500. Each. They then got fancy micro scooters (nice enough!), ... oh and Ipod Nanos, engraved with names, when they first came out, and suitcases (bit crap but...) .... filled with laptops! Plus other 'normal' presents.
Also, I heard that the husband got made redundant but found a new job quickly. His redundancy cleared her cc of £25K and yet a few months later it was up to ..... yep, £25k again! Mental.
Frimley111R said:
I live in a middle class area, mostly people are reasonably well off but many are borrowing to keep up. Here's an example:
We went to a neighbour's for Christmas. She is a mobile hairdresser on pin money but drives a new car every 3 years and he is on about £50k, they had 2 kids 7 and 9. The wife said her budget for the kids Christmas stocking (small pressies) was £500. Each. They then got fancy micro scooters (nice enough!), ... oh and Ipod Nanos, engraved with names, when they first came out, and suitcases (bit crap but...) .... filled with laptops! Plus other 'normal' presents.
Also, I heard that the husband got made redundant but found a new job quickly. His redundancy cleared her cc of £25K and yet a few months later it was up to ..... yep, £25k again! Mental.
Poor husband. Tell him a divorce is probably cheaper in the long run. We went to a neighbour's for Christmas. She is a mobile hairdresser on pin money but drives a new car every 3 years and he is on about £50k, they had 2 kids 7 and 9. The wife said her budget for the kids Christmas stocking (small pressies) was £500. Each. They then got fancy micro scooters (nice enough!), ... oh and Ipod Nanos, engraved with names, when they first came out, and suitcases (bit crap but...) .... filled with laptops! Plus other 'normal' presents.
Also, I heard that the husband got made redundant but found a new job quickly. His redundancy cleared her cc of £25K and yet a few months later it was up to ..... yep, £25k again! Mental.
Ozzie Osmond said:
It's the usual insanity - people think that if they can afford the monthly payments THIS month then they can't be living beyond their means...
I find the staff in our Southern office think like that - they get paid monthly, so they have all their costs on a monthly basis.They don't worry about losing their jobs - despite our industry contacting - they think they'll just walk into another job. If they don't, then they'll just stop the monthly payments as quickly as they can. If interest rates shoot up and they can't afford the mortgage? No problem, they'll sell the house.
Edited by Sheepshanks on Thursday 19th May 14:54
Mrs AD has a waste of space brother. 56 going on 18. Dead end job in a dead end town. Twice divorced. Total loser. Got himself into about £25k of CC debt, mortgage and service charge arrears and probably owed some money to his local dealer. Was afraid to answer his phone or the door . Fortunately for him his mother passed away and, after the house was sold, he was left £70,000 tax free. Which he quickly proceeded to piss away on Fender and Gibson guitars, expensive clothes and holidays for some bird he was living with and her three kids. You guessed it. Within two years he was stoney broke skint, back in debt, and afraid to answer his phone or the door.
I know of a few lads who are about 40yrs old who have never flown the nest and they somehow owe over 30k in loans and CC debts and have nothing to show for it.
They are all on good money and its not been spent on holidays or cars. They have a cheap telly in their bedroom and a console with a few games and a few clothes and that's it.
They are all on good money and its not been spent on holidays or cars. They have a cheap telly in their bedroom and a console with a few games and a few clothes and that's it.
ThunderGuts said:
Hoofy said:
Poor husband. Tell him a divorce is probably cheaper in the long run.
Makes me really appreciate my Yorkshire wife!I said to a date last week that I didn't want to eat at a restaurant every time we met as it was too expensive... so she invited me back to hers.
Apparently, the average man in London spends over £200 on a date including gifts and food. I think I have spent under £60 over 3 dates.
#keeper
Gregmitchell said:
DoubleSix said:
Ozzie Osmond said:
DoubleSix said:
Yet I took on a 100% mortgage BTL in 2007 and am up a 100k (50%).
You could have saved yourself the trouble and expense of buying real estate and just invested in the stock market. Up 50%, nice income stream, no tenants to deal with, no transaction costs. Kushdi! Besides, you really shouldn't look at property and equities as 'either/or' assets. All part of a diversified strategy alongside other investments.
Edited by DoubleSix on Wednesday 18th May 21:46
Property isn't my only pension investment though.
In a similar vein to those who've posted about pensions.......a few years ago I got 3 of my colleagues to join the company pension scheme, after much persuasion.
Each had more than 10 years service, and were on between £30-£50k and the company contributions were 10%.
It was only when I pointed out how much free money they'd given away, they suddenly realised it was a good idea and all joined the same week......
Each had more than 10 years service, and were on between £30-£50k and the company contributions were 10%.
It was only when I pointed out how much free money they'd given away, they suddenly realised it was a good idea and all joined the same week......
uuf361 said:
In a similar vein to those who've posted about pensions.......a few years ago I got 3 of my colleagues to join the company pension scheme, after much persuasion.
Each had more than 10 years service, and were on between £30-£50k and the company contributions were 10%.
It was only when I pointed out how much free money they'd given away, they suddenly realised it was a good idea and all joined the same week......
How can people be to short-sighted/unknowing?Each had more than 10 years service, and were on between £30-£50k and the company contributions were 10%.
It was only when I pointed out how much free money they'd given away, they suddenly realised it was a good idea and all joined the same week......
I started my job at 18, part of the induction told us that the company would contribute up to 5%. So right then I signed 5% of my pay to the pension to get 10%.
AndrewEH1 said:
How can people be to short-sighted/unknowing?
I started my job at 18, part of the induction told us that the company would contribute up to 5%. So right then I signed 5% of my pay to the pension to get 10%.
To be fair - Its utterly obvious - but who ever actually sat down with them and explained things? Christ knows my tax NI and pension contributions are horribly expensive and knocking the pension out would make a BIG difference. I dont know how many would see past that no matter how logical.I started my job at 18, part of the induction told us that the company would contribute up to 5%. So right then I signed 5% of my pay to the pension to get 10%.
My wife was told by her dad to plan for the future and so she did when she first started working. Her private pension pot of 2.5k is worth the square root of FA and a complete waste of money that we can't access and will never actually realise a meaningful return from 3 decades from now. Fortunately she has a better deal now and will most likely fold the former into the latter. For most though I can see why people think its pointless despite the breaks.
An interesting one for me though is do we pay for expensive schooling for our soon to be born baby or plough that money into a BTL that will be theirs in 20 years? It would cost a fraction of the price and we could give them the keys when they are 21. What a start that would be....
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