Unaffordable Aspirations

 

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After a particularly gruelling Huffy Puffy session yesterday, I made the gals a hot beverage and we sat in my living room, discussing the big topics. And it was over said beverages that the three of us began to unintentionally morph into octogenarians as we discussed what was really wrong with society today.

We agreed that in general, people were rude and selfish and put themselves before others. We agreed that family is the most important thing in the world, as were good friends. And we agreed that people are carrying a frightening amount of debt at present.

It is estimated that 40% of NSW households are under financial stress. Sydney especially is stupidly expensive, with the average home price narrowing one million dollars.

Fuck… a duck.

I find these two quotes very interesting from this article.

“That’s a phenomenon around the world – people want the nice home and the nice car and the kids in private schools. At the same time you have big mortgages and a rapid rise in cost of essentials such as utilities and telecommunications. It takes one unexpected event, such as someone getting ill or losing their job, and the debt becomes a problem.”

“A lot of marketing these days is specifically designed to make people feel like they’re not keeping up with the Joneses,” 

I am certainly very happy to leave the Joneses to their own devices, thank you very much. But yes, I would love to swim in your pool!

I worry about the boys when they are older. Say they went to university and racked up a $100K bill in the process. They graduate rolling in debt, enter a workforce that is rapidly changing and competitive, and sleep in their childhood bedrooms until they are 45 because they are busy paying off their debts and cannot afford a house anyway.

Had the plumber in this morning to fix a pipe under the sink. We chatted about this and that and I asked him, “How’s business?” He told me it was booming. I hope to GOD that my kids will consider doing a trade after high school.

The other thing that worries me about where we are headed is the rise of the Loan Sharks, evil motherfuckers who get fat off the desperateness of the poor. Otherwise known as Payday Lenders, outfits such as Nimble Loans, Perfect Payday, Payday King and Cashstop are marketing “quick loans from $200 to $1200) in a sing-song like manner. This industry is on the rise.

This ad does my head in for so many reasons. But what Nimble doesn’t tell you is that you will be charged eye-watering fees and penalise the pants off you if you default at all.

But back to my chat with the girls. We discussed the stupidity of paying full retail price for anything. And if you really wanted or needed a big-ticket item, you saved up and paid for it. Want to go on a holiday? Save up.  As for furniture? It is a bit like cars. It loses value the second you buy it. First home buyers now expect their purchase will be state of the art, with all the bells and whistles and are prepared to get into an extraordinary amount of debt to do so. People are insistent of living beyond their means because of those Joneses.

We continued to discuss how the world has gone to hell in a hand basket until those cups were drained, rinsed and put away. And that is when I noticed the leak under the sink. One of the upsides of being a renter is that I do not have to call Nimble to pay the plumbers bill.

Does Financial Stress have any effect on your family?

Any tips to live a more frugal life?

And what are your thoughts on paying 75% interest on a loan…