How much debt do you have?

[Prospector]

As for ppl renting saving less, I find it the complete opposite. Many people I know around my age on good incomes who have gone out and bought a house are not only struggling to meet the repayments, but they somehow manage to afford to buy expensive cr@p that will look pretty in their new house... (alot of the time its interest free from Harvey Norman) .

Yeah, well, there will always be some people who cannot manage their money. Whether they rent or buy the property. Not sure if these examples actually prove anything.

 

[lioness]

Holy crap! May I ask what u do for a living?

I am a senior manager in WBC bank and my partner is a senior manager in a blue chip top 30 ASX listed company. She is also due for promotion very soon to a higher level. What I am saying is the rental property pulls 20K per year also so I don't see a problem with our level of debt.

We have 2 young kids which take out 20K per annum for a nanny though which is equivalent to 40K before tax. I still don't see a problem as we spend very little and manage to save one income net per year.

 

[2020hindsight]

I reckon I'll be pushing half a mill by the time I'm done with Uni. Lol.

lol, Know how you feel chops ..I have been in similar circumstances (worse actually considering I was much older) - house (part owned) second mortgaged to the bank - built a factory just before the commercial property crash - went into Asia just before the Asian crash.

Got to where I'd look at the occasion bottle of beer and say "gee, if there's a genie in there - can I win the lottery please ! - BUT no point unless there's at least a milion payout" lol.

PS My daughter's gonna be at uni for 5 years - to become a social worker of all things ! - Hecs is one thing - but when there's no chance of paying the thing off in one lifetime lol.

 

[nunthewiser]

lol, Know how you feel chops ..I have been in similar circumstances (worse actually considering I was much older) - house (part owned) second mortgaged to the bank - built a factory just before the commercial property crash - went into Asia just before the Asian crash.

Got to where I'd look at the occasion bottle of beer and say "gee, if there's a genie in there - can I win the lottery please ! - BUT no point unless there's at least a milion payout" lol.

PS My daughter gonna be at uni for 5 years - to become a social worker of all things ! - Hecs is one thing - but when there's no chance of paying the thing off in onelifetime lol.

please tell me what you will be investing in next m8










this post is posted with humour attached

 

[2020hindsight]

please tell me what you will be investing in next m8

lol
well for one thing - I'm getting smarter!!
I PRETEND to invest in something -
then at the last minute I change my mind and go for the exact opposite!!

and guess what - they BOTH lose lol.

So which do you want to know ? - the original bet,
or the exact opposite?

PS At least I employed 30 blokes for 10 years - And exported hundreds of tonnes of manufactured product

 

[nunthewiser]

lol
well for one thing - I'm getting smarter!!
I PRETEND to invest in something -
then at the last minute I change my mind and go for the exact opposite!!

and guess what - they BOTH lose lol.

So which do you want to know ? - the original bet,
or the exact opposite?

she,ll be right and sincerely hope you hit the motherload of right place to be at the right time

cheers

 

[2020hindsight]

I used to say "money is of no consequence - unless you have none"
Now I say "money is of no consequence - unless you've run out of plastics "

PS to be honest , this thread is pretty demoralising lol - closest I've been to depressed for a long time to find myself in the 85 percentile of debt.

PS to be honest, I'm astonished to find 50% with debts of $20K or less. = obviously ASF'ers are atypical!

 

[gav]

I am a senior manager in WBC bank and my partner is a senior manager in a blue chip top 30 ASX listed company. She is also due for promotion very soon to a higher level. What I am saying is the rental property pulls 20K per year also so I don't see a problem with our level of debt.

We have 2 young kids which take out 20K per annum for a nanny though which is equivalent to 40K before tax. I still don't see a problem as we spend very little and manage to save one income net per year.

I apologise, my 'holy crap' comment was on your combined income. Congrats, I'm sure you and your partner have worked very hard to get where you are

 

[theasxgorilla]

Inflation is an increase in prices.

I have to point out that an increase in prices alone does not inflation become. In fact an increase in prices is the expected symptom of inflation, but itself is not inflation.

Classically, inflation is an increase in the money supply as a proportion of the supply of goods and services.

 

[MRC & Co]

I have to point out that an increase in prices alone does not inflation become. In fact an increase in prices is the expected symptom of inflation, but itself is not inflation.

Classically, inflation is an increase in the money supply as a proportion of the supply of goods and services.

Yes, I cannot remember all that ISLM junk, seems too long ago. But CPI is based on a basket of goods right? So an increase in prices is inflation, how is that an expected symptom of inflation? I don't get it

But higher global crude prices are probably the biggest influence on inflation right as they feed right though the system? Which has no relation to the Australian MS............

 

[Smurf1976]

You know this poll would be a lot more relevant if you asked what the net worth was as well. Who is better off someone with no debt and minimal assets, or a large amount of debt and LOTS of assets?

I'd argue it's the net position that counts. Assets - debts = net wealth.

Governments on the other hand have spent the past 15 years trying to convince us all that no debt and no assets is wealthy. If that's the kind of financial incompetence we've got running the place then there's not much hope for the rest of us.

 

[theasxgorilla]

Yes, I cannot remember all that ISLM junk, seems too long ago. But CPI is based on a basket of goods right? So an increase in prices is inflation, how is that an expected symptom of inflation? I don't get it

But higher global crude prices are probably the biggest influence on inflation right as they feed right though the system? Which has no relation to the Australian MS............

I'm no expert, so please don't take this as a lesson. Besides economics is extremely complex.

CPI is attempting to measure the end result of an increase in the money supply. Loosely the theory goes that if there is more money in circulation relative to goods and services the price of goods and services will increase to absorb the excess money. This is why printing money is not creating wealth.

I would say that an increase in oil prices might look like inflation, because fuel costs are measured in the CPI "basket", but that can be misleading. As you said, it can have very little to do with Aust money supply and more to do with market supply and demand. There could still be as much oil supplied to the market, relative to Australian money supply, but the Chinese and Indians bring their demand to the market and it drives prices up.

 

[mayk]

Yes, I cannot remember all that ISLM junk, seems too long ago. But CPI is based on a basket of goods right? So an increase in prices is inflation, how is that an expected symptom of inflation? I don't get it

But higher global crude prices are probably the biggest influence on inflation right as they feed right though the system? Which has no relation to the Australian MS............

And I thought Inflation is the decrease in the value of dollar (mostly because of excessive supply).

Supply and demand of a commodity essentially complicates things, and thus the reason for considering the whole basket. Those geniuses forgot to think that all the items in the basket are correlated (via energy or OIL), thus it complicates the whole inflation function.


I also think deflation is more of a worry than inflation for short to medium term (6-15months), but after 2-3 years inflation will hit the market with a bang. There is no good ending to this story.

 

[2020hindsight]

And I thought Inflation is the decrease in the value of dollar (mostly because of excessive supply)...

like .... This computer will cost you 300 Big Macs, whether you buy today or next year.
:topic Then again, if you buy the computer instead of the Big Macs, you'll grow the mind, instead of poisoning the body ... And there's certainly an excessive supply of Big Macs. XXX :1cent

Someone said that Big Macs are a great example of Quality Assurance - every time I buy one, it is always exactly the same quality! - I keep hoping ... but it's always the same.

PS Spare a thought for Zimbabweans trying to keep up with doubling of prices every day or hour or whatever it is these days.

 

[aleckara]

I'd argue it's the net position that counts. Assets - debts = net wealth.

Governments on the other hand have spent the past 15 years trying to convince us all that no debt and no assets is wealthy. If that's the kind of financial incompetence we've got running the place then there's not much hope for the rest of us.

Governments have been trying to tell you that the appreciation in your house is wealth. It isn't since really you own the same amount of stuff. It's just that your money is worth less. On another point I never understood why houses weren't included in the inflation figure - most people 'need' a house and consume it by living in it. I think that would get a better indication of how much wealth has been eroded. Assets while they have gone up can come down - debt stays constant. Need a buffer.