Why are some people poor?

[wayneL]

My wife died last month and I am sad. You people are good to talk with Thank you

Very sorry to hear that cog'

 

[nioka]

So, what if my friend bought a different horse, what if that horse was injured early in its career, what if she had a career ending injury and sold that horse to somebody else before anyone knew how brilliant it was?

What if those yanks went to UK looking for horses instead of Oz?

Hard work is indipensible, and yes you can create situations where luck may find you....but it is still luck.

Never underestimate it.

OR ..........work hard at finding another good horse and work on finding another buyer. That is called making your own luck.

 

[CanOz]

My wife died last month and I am sad. You people are good to talk with Thank you

I too am very sorry to hear that Cog. I hope that somehow you manage through this rough time.

All the best.

 

[smoothsatin]

How's this for a story... bad timing, bad business, or bad luck?

I used to be in the furniture manufacturing game. One of my contemporaries was a Polish immigrant who came to OZ in the 60's and started a business making budget kitchen chairs in his father in law's garden shed.

The business grew over the years and in the mid eighties he was running a 50,000 sqft manufacturing plant in QLD... a big "small" business. He was doing very well, had the big house, latest high end merc etc etc.

The late 80's heralded in the previous housing boom which resulted in a big increase in demand for his product; he couldn't keep up with orders. So he decided to build on another 15,000 sqft of factory space, invest in more machinery, hire more people.

Well we all know what the late 80's early 90's heralded in too don't we? Those big interest rates and "the recession we had to have".

So just as he substantially increased his standing overhead, his sales dropped to below "pre" boom levels... catch 22.

He went BK, his wife left him etc.

He now lives in a humble home on the outskirts of Brisbane.. a broken man, and essentially "poor".

Bad timing, bad business, or bad luck?

Well it was good luck/business/timing to manufacture behind heavy tariffs, good timing to be part of the a speculative frenzy fuelled by deregulation that prompted the RBA to try and prick the bubble (yes it was an inevitable recession given how blunt and clumcy monetary policy is). Bad business/understanding of how an economy works and what is sustainable and what isn't. I guess this largely supports the luck theory!

 

[nioka]

Well it was good luck/business/timing to manufacture behind heavy tariffs, good timing to be part of the a speculative frenzy fuelled by deregulation that prompted the RBA to try and prick the bubble (yes it was an inevitable recession given how blunt and clumcy monetary policy is). Bad business/understanding of how an economy works and what is sustainable and what isn't. I guess this largely supports the luck theory!

Don't blame luck. That is what business is all about. In the 80's I went to a seminar held by acertain Terry M (a supposed genius at finance) and was convinced to borrow in swiss francs. The $350,000 I borrowed ended up being $990,000. I don't blame luck. I had bad advice and made a bad decision. I just had to find another "horse".( or 2 or3)

 

[wayneL]

OR ..........work hard at finding another good horse and work on finding another buyer. That is called making your own luck.

You can do that. It doesn't mean you'll find another million dollar horse though.

There are hundreds of riders who work their nuts off... and do very well as a result. But there are very few million dollar horses and you can't pick them in the raw.

 

[Julia]

Thanks to all for thoughtful and interesting responses.

I have to agree that luck does play some part. Here's an example of two couples who are friends of mine:

Couple A: self funded retirees in their 50's. They married at around age 20, had three perfect children. She was a schoolteacher and he worked in the Public Service. They both had lifetime contributions to Super. They have both been really healthy all their lives and their children caused no problems, either physical or psychological. There are now grandchildren and all is happy and content. They have a beautiful home, travel overseas at least twice a year and within Australia another three or four times a year.

Couple B: Second marriage. Neither had much of an education and consequently didn't have high earning careers or Super. Any assets accrued during the respective first marriages disappeared in the break-up. The stress involved with both marital splits encouraged somewhat excessive use of alcohol and tobacco in both partners. They manage to get enough cash together for deposit on an old house. Large mortgage. They both get sick.
Jobs have to go. Both are on Disability Pensions. Difficulty in making the mortgage payments. More alcohol and more cigarettes. The house, being old, develops lots of problems. They can't afford to fix these. More despair.
She gets cancer. Local health system is overloaded so the cancer has spread through her body by the time she is evaluated. She dies six months later.


When all this happens with Couple B, Couple A (who know couple B), are critical and say that it's all their own fault because they haven't planned properly.

What do you think?

Julia

 

[Milk Man]

Julia, I would hazard a guess that no-one inspired or encouraged couple B to do better for themselves. Also, if couple A were faced with the same situation, they probably wouldnt have done any different. What do you think?

 

[professor_frink]

OR ..........work hard at finding another good horse and work on finding another buyer. That is called making your own luck.

Here's a story that is nothing but luck

A couple that I know- generally hard working blue collar type people. Lovely people- they just never had any spare money left over at the end of every week- had fallen into the renting trap- couldn't put enough money aside for a house deposit. Husband had medical problems(nothing life threatening) and they were struggling to find the money to pay for his treatment.

The wife went out and bought a lotto ticket. Won 1.3 million.

They recently moved into their new home, and have enough money for their retirement.

Now that's luck!

 

[swingstar]

Why are some people poor?

Most people are poor because they don't seize opportunities, are close-minded and are afraid of leaving their comfort zone.

Luck has very little to do with it in most cases. Just IMO.

 

[nelly]

Hi y'all....my whole hearted sympathy cog'.....



Now wealth vs poverty.....I think it has to do with a combination of education, upbringing and guts, just plain hard work might not get you there, you have to have the 'smarts' as well....... "you gotta know when to hold 'em and when to fold 'em."....apart from the chances of winnin' Lotto, I think you have to create your own luck...luck is seeing an opportunity and being prepared to take advantage of it.

cheerful

 

[Blitzed]

Speaking of luck (or lack of education etc) and lotto, what about those people who win it only to find themselves in the same financial mess or with nothing a year or two later.

I remember years ago in the USA they had a show on people who won the big lotto twice.....one man won and then turn the pattern of the numbers upside down and won again.

Then there was the incident I was told of when I was about 12 (it was in the local paper), of the man in our country town who decided to kill himself...he bought a sausage roll (or something similar) from a little shop, sprinkled it with the poison but changed his mind and left it on the table outside. Along came (what they thought) a poor old woman who ate it and died.....they found out later that she had heaps of money but hated to spend or waste anything. She Seized one to many opportunities.


And then the guy who died after he bought a sports car with some of his lotto winnings and crashed it.....hmmmm luck and bad luck.

Isn't life strange sometimes?

 

[petee]

Thanks to all for thoughtful and interesting responses.

I have to agree that luck does play some part. Here's an example of two couples who are friends of mine:

Couple A: self funded retirees in their 50's. They married at around age 20, had three perfect children. She was a schoolteacher and he worked in the Public Service. They both had lifetime contributions to Super. They have both been really healthy all their lives and their children caused no problems, either physical or psychological. There are now grandchildren and all is happy and content. They have a beautiful home, travel overseas at least twice a year and within Australia another three or four times a year.

Couple B: Second marriage. Neither had much of an education and consequently didn't have high earning careers or Super. Any assets accrued during the respective first marriages disappeared in the break-up. The stress involved with both marital splits encouraged somewhat excessive use of alcohol and tobacco in both partners. They manage to get enough cash together for deposit on an old house. Large mortgage. They both get sick.
Jobs have to go. Both are on Disability Pensions. Difficulty in making the mortgage payments. More alcohol and more cigarettes. The house, being old, develops lots of problems. They can't afford to fix these. More despair.
She gets cancer. Local health system is overloaded so the cancer has spread through her body by the time she is evaluated. She dies six months later.


When all this happens with Couple B, Couple A (who know couple B), are critical and say that it's all their own fault because they haven't planned properly.

What do you think?

Julia

hi all..firstly im not a great believer in luck,rather we reap what we sow..and secondly when people start on the idea that life is great and just dandy id say be very careful coz u dont know what disaster lurks just around the corner..we arent called to be critical but rather walk in love and compassion for one another

 

[tech/a]

My view is lack of education in Life Experience.

You can be as intelligent as Einstien and live like a pauper.

Quickest way to gain that experience is to seek out MENTORS.

Business,Trading,Property,Happiness,Health,Relationships,Kids,DIY.

Go and befriend an expert.

Life is as hard or as easy as we make it.

 

[nioka]

Here's a story that is nothing but luck



The wife went out and bought a lotto ticket. Won 1.3 million.

They recently moved into their new home, and have enough money for their retirement.

Now that's luck!

A 1.3 million to 1 chance. Not very good odds.

I had friends (who also borrowed swiss franks) try that . There was a drought at the time and their dams were half empty so they sold their stock. My dams were half full so I bought a lot of stock allowing for the fact that it always rains at the end of a dry spell. I paid off my loan, They didn't win lotto. They went to the wall, I'm still having fun. Now that's NOT luck.

 

[professor_frink]

A 1.3 million to 1 chance. Not very good odds.

I had friends (who also borrowed swiss franks) try that . There was a drought at the time and their dams were half empty so they sold their stock. My dams were half full so I bought a lot of stock allowing for the fact that it always rains at the end of a dry spell. I paid off my loan, They didn't win lotto. They went to the wall, I'm still having fun. Now that's NOT luck.

Sorry I should have phrased it better- she bought a lotto ticket nearly every week. Not because they were in a tight spot and needed to win.

Odds of winning lotto aside, how does luck NOT play a part in something like that happening?

Sure most of the time people make their own luck to a certain extent, but not everything in life can be planned for, a positive spin can't be put on every single situation in life. Sometimes people can have all the good intentions, plan accordingly, do everything in life that SHOULD get them ahead, and still end up living the life of a pauper. Or die before all the good planning and positive thinking pay off.

 

[nioka]

So, what if my friend bought a different horse, what if that horse was injured early in its career, what if she had a career ending injury and sold that horse to somebody else before anyone knew how brilliant it was?

What if those yanks went to UK looking for horses instead of Oz?

Hard work is indipensible, and yes you can create situations where luck may find you....but it is still luck.

Never underestimate it.

You make a point but the thread was "why are some people poor" Some people are luckilly rich but many are poor waiting for luck.

 

[tech/a]

In 1996 I started buying houses in the south of Adelaide because the Plans for the Southern expressway came across my desk.

Housing had boomed when the crafers Freeway went in and Glenelg boomed when holdfast shores developement went ahead.--So logically off I went.

The Housing boom un related to the southern expressway hit in 1997-2001.
I had many I/P's. Did very well.

So was it luck or Good management???

 

[TimmyC]

a few errors in judgement practiced every day

 

[Sultan of Swing]

From a newbie....

Some of it comes down to 'delayed gratification' and lack of planning.

Some people have high incomes and spend it all thinking the income will last forever and others may have a far lower income but put a portion away for later 'just in case'.

Who's going to be better off in the long term.

Others just want and 'need' everything NOW! They think there's plenty of time later to 'save' for retirement or think the government will look after us cos 'We've always paid taxes and now they 'owe' us a pension'. (They never do the sums and work out that the little tax they've often paid would equate to just a few years of pension payments.)

Just my 2 cents