Comments on: Rich Jems, Poor Jems

By: tricia

tricia — Fri, 24 Mar 2006 21:25:11 +0000

Have watched this thread with interest because we’re in similar situations on our side of the Pacific, ‘cept I work half time and only have one sprog to watch. Matty works mostly fulltime, but has been studying for his professional engineer (yeah, we’re geeks) exam (which has knocked him down to half time, too).

I cut back my hours to the minimum I could work and still get benefits (health, retirement, etc.). We rent our granny unit to our friend. We try to rent it to her for a fair price (cheaper than other rentals in town, pay for utilities, and share some meals together). For years, we resisted the whole landlord thing and kept the granny unit empty. Renting it out means that we can still afford the odd chocolate and beer and help with the mortgage (that’s French for “death pledge” after all).

We pay our credit cards in full every month. But we have our credit card tied to frequent flier miles, so we get to fly for free to NZ or Asia every few years.

We sock away as much as we can in our retirement. I had the goal of being retired by 55, but it will be realistically more like 60. House will be paid off by then. Anytime we get a raise, we chuck it into the savings or retirement accounts.

Have been putting $50 a month in sprog’s college fund (tax free interest and withdrawing for uni). Put any cash gifts he’s getting from rellies in there, too. We’ll start a savings acct. for him when he’s old enough to want things.

Drive two beater Japanese cars we own in full.

Buy food in bulk or when it’s on sale at the markets and mostly unprocessed. Same with detergents, soap, shampoo. Buy clothing only when it’s on sale and will be worn. Buy music quarterly and by then, things that I really want are still in the online shopping cart. Swap out old books at the used bookstore.

Geocaching is good free fun (besides the gas. We don’t use a GPS) for the family.

Have lots of potlucks in our backyard or at friends’.

We ski, but only when we can buy discounted annual passes.

Only get to the cafe once or twice a week for our espresso drinks. Drink French press on the other days. Saving heaps….like $20 a week…each!

Good luck with the whole work/school/family thing. Seems like you get to spend quality time together. Worth not being a rat in the rat race for a while, eh?

By: emily

emily — Fri, 24 Mar 2006 05:19:41 +0000

Hmm, thanks everyone, it’s all good advice. Look for the new improved fiscally responsible Emily at a store near you.

By: llew

llew — Thu, 23 Mar 2006 04:16:23 +0000

Get rid of personal debt! It is OK (I’m told) to hock yourself to the gills to buy investment properties, because that is tax deductable (cheaper debt).

And get rid of your liabilities (as opposed to assets), for instance, your car(s).

By: hers

hers — Tue, 21 Mar 2006 04:38:55 +0000

I’ll be following this thread with interest. As the world’s most hopeless businesswoman I’m always stuffed up dollars wise!

By: Lynne

Lynne — Tue, 21 Mar 2006 02:44:33 +0000

I’m no financial genius, but I do have a few tips. Firstly, always save a little of your income. I have mine automatically transferred into a high interest account. $40 a week becomes around $3k after 12 months! Do the same with super (not sure how the super situation works in NZ though). Find somewhere to buy in bulk (a food co-op of some sort), bulk is cheaper and with a family it might make sense.

By: Martha

Martha — Tue, 21 Mar 2006 00:23:09 +0000

I read that last year - pre-coffee cart (geddit?). I basically worked out that I’m not interested enough in being rich to put in the work and sacrifices.

I daresay Rich Dad Poor Dad would suggest you sell your house, buy 2 houses in Taita, and become a slumlord.

With your skills you should set up something clever on-line. Dating agency?