Small Businesses Self-Destruct

If I need milk or bread or get a sugar craving, I TRY and buy from small businesses, milkbars and the like. Without small businesses the big ones, charge whatever they want and corner the market.

Small businesses of the retail kind are dying, like moths to a flame. They are self-destructing.

The reasons for self-destruct vary, from limited opening hours, to dirtiness to (and the worst IMHO) overcharging OR in this mornings’ instance, charging without advertising a further $0.50 to use EFTPOS.

Doesn’t matter I paid the same price for the item as I would at a service station, they had the gall to charge $0.50 without ANY advertising, NOT written, NOT verbal.

I try and support small business, but how can I continue to do so, when businesses do this to you and me, the bread and butter of their business? Small business is not just about opening the doors and customers (suckers) walk in and pay elevated prices for the same thing, they can get elsewhere, it’s about a smile, not ripping your customers off and making sure the place is clean.

I’m calling out the milkbar in New Street, Reservoir, I shall never darken your doors again, I would rather travel a further 1km and buy from the milkbar in Yarra Avenue, East Reservoir, they smile, the place is clean AND lo and behold, I’m NOT penalised for using EFTPOS.

I know the rules were changed to allow you to recoup costs for the use of EFTPOS, but guess what? A smart business person would bury that cost in the product cost, NOT bury excess profit in the product cost AND THEN charge to use EFTPOS as well.

While I’m on a rant, people who have a minimum EFTPOS charge, you too are doing yourself out of business, most people have less than $30 in their pocket at any one time and this is reducing all the time.

Get with the times and learn what running a small business is all about.

I have Private Health Insurance .......... but for how long?

I haven’t always had private health insurance, not because I chose not to – but because I couldn’t afford to. Now that I can afford private health insurance, I’ve taken it up (as is ‘my duty’) but I am struggling to afford it.

Firstly I’m being penalised because I delayed signing up after I turned 30 (because of finances, due to injuries that prevented me from working.) I joined as soon as I could afford to.

It means that I have a 10-15% loading (penalty) because I delayed. So with every hike in insurance costs, I get a further 10-15% penalty.

Alright – so the government said everyone MUST be insured and if you’re not – we are going to penalize you.

What about a ‘reward’ if you stay signed up for 12+ months? Something like, alright we penalise you for the time it takes you to sign up for health insurance, BUT for every 12 months you stay joined, you get a 1-2% discount every year. Until you are back to the regular rates. You’d still be penalised but not at a rate that may eventually cause you to drop out of said health policy?

Let’s play pretends (with nice round figures)

M’ship length - - Pr Mnth $ - - - % Penalty - - - Total cost - - - Discount - - - Total
1yr - - - - - - - - - -$200 - - - - - - - 10% - - - - - - $220 - - - - - - - 1% - - - - - $218
2yrs - - - - - - - - - $210 - - - - - - - -10% - - - - - - $231 - - - - - - - - 2% - - - - -$226
3yrs - - - - - - - - - $220 - - - - - - - -10% - - - - - - $242 - - - - - - - - 3% - - - - - $235
4yrs - - - - - - - - - $230 - - - - - - - - 10% - - - - - -$253 - - - - - - - - 4% - - - - - $243
5yrs - - - - - - - - - $240 - - - - - - - - 10% - - - - - - $264 - - - - - - - - 5% - - - - - $251
6yrs - - - - - - - - - $250 - - - - - - - - 10% - - - - - - $275 - - - - - - - - 6% - - - - - $259
7yrs - - - - - - - - - $260 - - - - - - - - 10% - - - - - - $286 - - - - - - - - 7% - - - - - $266

So in 8-10 years, things would be back to normal and you might be enticed to stay in said health policy rather than dumping out because you can no longer afford to stay and pay both the yearly hikes and the penalty.

What say you? Are you being penalised the same as me – or don’t you have private insurance because you can’t afford to have it?

I’m beginning to wonder if $250 a month is really worth it – would I be better off putting that money in a high-interest earnings account, paying the 48% interest for having savings in the bank and use that if I need to?

Would love your thoughts.

Noting that I found this artical regarding lifetime health cover loading AKA LHC. There is no expections, no exclusions, and there is a further 2% levy if you fail to maintain your cover (even if due to financial hardship) NO EXEMPTIONS.

When is a retail store sale not a sale?

The retail sector has been complaining for months that sales are not what they expected, not as good as what they should be, people aren’t spending money like they used to.

Retailers are complaining that people are shopping online, rather than going to bricks and mortar stores.

Of course people aren’t. They are sick of being lied to, they are sick of being treated like idiots, they are sick of just being seen as a cash cow.

I had the displeasure of going into a shopping centre Wednesday the 29th December 2010, looking for nothing in particular, just to pick up some essentials and get the hell out of there.

The two retails stores I did have the displeasure of entering, both had misleading advertising, one far worse than the other, You tell me, which you think is more misleading:-

Store Number 1 – Signs on window indicate 40% off ALL stock (small print, excluding items already marked down)
Turns out 90% of items were already marked down, so no savings to be had there, and the stuff that was on special was not to my liking, nor I bet the majority of shoppers who visited the store.
Thanks Colorado – I mean 40% is meant to be 40% of majority not minority.

Store number 2 – when is 32 inches only 31.5 inches? - when you are JB Hi-Fi
Check it out



I’m sorry – but I have this ‘thing’ about honesty, integrity and truthfulness in advertising. And these two examples just prove that I’m only a cash cow and nothing more in retailers eyes.

Learn from the masses, we don’t want lies, we don’t want to be treated like idiots, we just want what is right, what is truthful and honest. We want the best price without having to haggle, we want service, we want to be acknowledged when we enter anything other than a large department store.

Make the advertising real and employ more staff, you might find we will spend more money

EFTPOS usage – do you spend more money without cash?

Oh boy, here we go again, another blog post because of another interesting conversation. Why does this happen to me?

Someone made the comment they spend less if they use EFTPOS only. I disagree and the banking system disagrees with me also.

Let’s go back to the start of the use of EFTPOS. The banks and government wanted it introduced to reduce the cost of money handling. Yes handing money costs money, the damaged bills need to be sorted and destroyed. Coins need to be counted and damaged ones recycled. Tellers needed to be present in the bank to receive and distribute said money. See the cycle? It all costs money. So the businesses of the world thought that removing cash would remove the cost of the handling.

ATM’s became a common sight in the Streets of Melbourne in the early to mid 1980’s. The Commonwealth Bank Branch at the corner of Bourke and Russell Street installed theirs in 1986. People were quite confused by it, a staff member was rostered on to handle the number of queries raised in relation to it.

We all know how an ATM works, so no need to cover the ins and outs. People were encouraged by banking institutions to get a plastic card and a PIN number and use the machine in preference to using a teller inside the bank. The bank could see the financial benefit in reducing tellers and pushed hard for people to set up new style accounts and move people away from passbook style accounts. They did this using a variety of methods, from reducing passbook account interest rates, to penalizing people for using tellers with a fee per use charge.

Eventually ATM/EFTPOS usage became the norm rather than the abnormal.

The problem with this is that people actually forget how much they are spending on the plastic, be it their money or on credit. They honestly have no idea where the money goes.

The banks now ‘sell’ EFTPOS machine to retailers with recommendations like:-
“Typically customers will spend more with EFTPOS payments than when using cash, giving you the opportunity to maximise sales revenue”
“and your customers will be able to spend more and make more impulse purchases because they're not limited by the cash they're carrying with them.”

Now as a user, you should be made aware of the following:-
•Getting cash out at the same time you’re paying for goods using EFTPOS is a budget-friendly way to transact. The two transactions are only counted as one by your bank, so you pay a single fee instead of two.
•There are no fees for using cash, and you can't get into debt as easily using cash as you can with a credit card... but at the end of the month a credit card will allow you to see (and remember) where you spent your money. Cash does not (on it's own) have this same advantage
•It's easier to track spending using a card, where each purchase is recorded, than it is with cash for this reason.
•It’s easier to impulse buy when you don’t actually handle the cash. With the push a few buttons the money is gone.

Some people are really good with spending (or not spending) money, others……. Well……… they don’t manage as well.

I can be a bit of both, they do say that nothing beats a good shopping binge to brighten ones mood!

As a re-cap we have the banks pushing to retailers the benefits of a ‘cashless’ society where the customer will spend more, because they can’t handle and therefore miss the cash.
We have the banks pushing customers away with fee for use banking, where using a teller, sees some customer penalized.
We have the banks reducing interest rates on passbook accounts, to push people towards electronic banking.
We have banks removing face-to-face service in an attempt to force people onto electronic banking

Some retailers have shied away from using EFTPOS, some because they are wary of the fees, some discourage its usage by charging extra fees for each transaction or setting a minimum transaction costs and the customer sees no perceived benefit with either. Some retailers avoid EFTPOS because they perceive it all to be too hard. The benefits to retailers of using EFTPOS actually outweigh the inconvenience of not having EFTPOS. There is less cash to be counted at the end of the day, fewer trips to the bank, reduces the risk of theft, reduces the risk of burglary or armed hold-up.

As a consumer you need to be aware that you will spend more hard-earned money if you can’t actually pass the money over the counter. The risk of fraud is increasing with the number of compromised ATM’s and EFTPOS terminals. There is nothing more embarrassing than being caught with no cash, and no money in your account.

Personally I love electronic banking, saves me time, I can bank and pay my bills at anytime without concern for when the banks are or are not open. I can control my cash flow by withdrawing a small amount with each EFTPOS transaction and use that cash for smaller transaction, like coffee and similar.

Everyone is different and everyone has different needs. Some people can budget, some cannot. Life would be pretty boring if we were all the same.

Credit Cards are a completely issue and I won’t even touch on them. That one’s WAY too complicated for me, suffice to say yes I do have a credit card and I do use it, but sparingly and with balance paid off each month

How to pick Fraudulent Credit Card Transactions

Email #1
Hello,

Good day I will kindly like to know if you carry ZYX if you do then I will be glad if you can get to me with the price per box so that we can proceed.Thanks

T
....................
Response #1
Hi T , do you want the disposable latex type?

......................................................
Email #2
Yes A how much do you sell a box and how many pieces are in them.Hope to hear from you soon.Thanks

T
........................
Response #2
Hi T the XYZ are $0.00 + GST (100 in a box).
........................

Email #3
Hi A,

Glad to hear from you and what I will be the total cost for 100 Boxes.Let me hear from you so that we can proceed on with this order.Thanks

T
...................................

Response #3
T there are 10 boxes of 100 in a carton do you want 10 cartons?
........................

Email #4
Yes A
.......................

Response #4
T am I sending these to you or are you picking them up?
.....................

Email #5
A OK sending them to me will be OK. So when can send my credit card for the order.Thanks
T
.....................

Response #5
Well first of all I require your address so I can work out freight ( Australia only)
......................

Email #6
Hello A,

Below is my payment details:

T
123 The Road, The Beach, A State, Australia

MASTERCARD#:

1234567890123456 EXPIRY:00/2000 CVV:000

1234567890126789 EXPIRY:00/2000 CVV:000

Run and split the charges on both cards and kindly let me hear back from you.Thanks
.......................

Response #6
Hi T unfortunately I am unable to process this order. Please contact out credit department for any queries.
.......................

Email #7
Hello A,

You mean my cards did not go through or if you did not process them I guess you can kindly forward it your credit card dept to process it for the order for me OK.Thanks

T
...........................
A formal response was sent from the credit department after this last email, no response has been received, regarding innocence or otherwise

The give-aways were:-
1. No Phone Number
2. Free email address
3. The address was a legitimate business, that did not know T
4. The cards were approx 3000 digits different in sequential order
5. No response has been received after the formal response
6. Both cards had the same expiry date
7. The clincher was the fact that cards are not from AU banks

Victoria Police were contacted - advised by phone to attend station, station was attended - once there advised that since no crime has been committed, unless you want to do the leg work, we aren't going to follow it up

It is believed (but NOT confirmed) that these 2 cards may be Citibank USA issued Mastercards, but this has NOT been proven at the time of posting.

Today being the day that the media are talking about EFT/Electronic fraud and ways to prevent it - I was gob-smacked at the response.

Take this as a warning - if you accept credit card payments over the phone or email in YOUR business

If you are USA based or are in Australia and want the full details, please leave a message via the comments section - it WILL NOT be published.
.......................................
My email to Mastercard worldwide regarding THEIR cards and possible problems:-

I believe the following details are stolen information, these cards were attempted to be used for an internet sale of approx $ABC and the ‘owner’ was requesting the charge be split between 2 cards.

That was the first alarm bell, the second was no phone number, the third was a yahoo.com email address for Australia, the 4th was the delivery is a real address for a real business, but they had never heard of a XYZ.

No transactions have been processed by us and no transaction will be processed by us, but these cards/accounts need to be de-activated IMMEDIATELY

Payment details:

**insert card details, including CCV)

Run and split the charges on both cards and kindly let me hear back from you.Thanks


Should you require any further information, please feel free to contact me

......................
Response from Mastercard Worldwide - Keeping in mind I DON'T and am unable to locate the bank concerned

You must contact the bank that issued your cards to alert them. MasterCard does not manage cardholder accounts or else we would. As such, we do not have access to these systems. There should be a telephone number on the back of your cards where you can call. If not, you can call the MasterCard Assistance Center at **Insert USA Number here** for assistance in getting this reported

.....................

A response WAS received overnight - perhaps my email responding to their inability to actually read emails sunk in?

Don't know, but here is the response

Thank you for contacting MasterCard. This information has been forwarded to our Fraud Team.

So I can lay straight in bed now - but if you need help for suspected fraud OR fraud, I'm not sure it's possible to get any help - noting that the above contact information was sent TO THE FRAUD DEPT of MASTERCARD WORLDWIDE!

The Plastic Fantastic I would suggest will go the way of the dodo, if the duty of care is not increased by the card issuer, the bank and the police.

Car salesmen and missed opportunities

As the saying goes – ‘never judge a book by it’s cover’ This saying has never truer than in the new and used car sales industry.

1970 – Grandfather wants to buy an upmarket vehicle – he can’t get anyone to attend to his needs – he returns home and Nanna says no wonder, you re dressed like a farm worker (grey overalls) standard dress for Grandpa as he worked for the sake of work, not the money. He returns to same yard (new, luxury car yard) in a tie an suit. Walks into the managers/owner’s office and advises them that they just lost a sale, due to their making judgement by the clothes a man wore and not what he actually wanted. Until his death he bought a NEW car every two years, same make from the ‘new’ dealer in the CBD, a dealer that didn’t judge a book by its cover.

1994 – Husband and wife – driving through a small town spot a 4x4 they might be interested in purchasing. They are in the market for a new car, they do some towing, in fact they were towing a boat that very day. They walk into the dealership request a look at the vehicle (it is 3pm on a Saturday) the dealer says no – it’s too much trouble to get the car out and on the road.

The couple walk away, the couple do not identify themselves, they might be dressed in clothes more suitable for fishing, than buying cars, but their money is the same colour.

12 weeks later the wife returns with a baby on her hip, walks into the same showroom, the salesman, who is also the owner fawns all over her. She says – ‘you haven’t sold THAT car yet?’ (referring to the 4x4). “No” is the response. Reply “that doesn’t surprise me with your attitude. It would have been sold 12 weeks ago. You refused to show it to us. Instead we bought……………”(and points to a new vehicle sitting on the kerb). I then did the introductions and advised him that I am the daughter of so and so. His jaw hit the ground, he apologised profusely. I told him to make this a lesson learnt. NEVER EVER Judge a book by its cover.

He learnt his lesson the hard way. He lost not only that one sale on that one 4x4 but father like daughter, he lost a new car sale every two years. He begged, he rang, he tried bribery. All attempts failed. – Sometimes money is not the be all and end all.

Do you have similar stories? – Would love to hear them!

My Garden, My Food, My family, My Budget

March 2010

These last two weeks have been bountiful in the harvests, and our family has enjoyed eating fresh picked and home-grown food.

Some of the produce harvested this week – Over 10kg of Zucchini, 4kg of Almonds, 3 Chestnuts, 1 Mandarin, 500g of Blackberries. (Please no comment on the quantity of Chestnuts and Mandarines, this is the trees’ first fruiting season)

This week I’ve made Zucchini Chutney, Fig Jam (courtesy of the neighbours) every meal has had Zucchini in it and the Blackberries didn’t make it more than 2m from the bush, the same for the Mandarin and the Chestnuts which will have a ceremonial roasting when we light the fire.

There is currently a debate on eating locally, eating locally produced in-season food. I agree. Alright – you can have strawberries and apples in the middle of winter, but people just don’t realize is that cost of growing, storing and transporting those vegetables to places they are not meant to be in the middle of winter is huge, not just the dollar value – but the cost to environment and your health.

It is estimated that if a family were to eat ‘in-season’ i.e. fruit and vegetables that are grown in the area AND in season at the time of shopping, this could save as much as 20% in plain dollar terms. On the average bill of $50, that would mean a saving of $10 per week which is a whopping $500.00 saving per year. Simply by buying what is right not what is wanted.

Add to that cost, the cost of keeping and transporting out of season and out of area fruit and the cost to the environment is huge. The cost can add up to 500% to out of season fruit and vegetables. Imagine paying 500% for your electricity. Would you do that if you had alternative choices? I don’t think so.

Not everybody has access to a garden, but you have family and friends and often they have fruit trees that are bending, almost breaking with the weight of fruit. Why not stew some, jam some, eat some, just plain old use some.

The cost of good quality jam is around the $4.00-$5.00 mark – why not reduce that to $0.50-$1.00. I made fig jam this week and the cost was $2.00 for the sugar and about 3 hours effort with little monitoring. The jars, well you collect those all year, so the cost is nothing. I made 12 jars of Fig jam which will last for 12 months and there is enough to give away to friends.

My garden grows my food, as long as I look after it. My food is for my family and it must be of a high quality. We waste nothing, if we can’t use it immediately, we find something that can be made so the produce is not wasted. If all else fails we blanche the products and freeze for later use.

My budget for food shopping is pretty good, simply because we buy specials, we buy bulk items and we do without and supplement where we can. So mushrooms in the casserole? You can do without, without affecting the taste!

And if you are looking for a cookbook - look at Cookbook for Marysville

The Financial Woes of Our Youth. (Part 2)

You don’t know what to do – you think it will just go away if you move, or get your sister/brother or parents to say you don’t live here anymore. This DOES NOT work. You will be tracked down, be it in 1 year or 10 years. All these black marks will sit there and collect dust until the day you need your credit rating for something like a home loan or even a new car. You will be denied ALL of that UNLESS you act now.

First – you MUST seek help. Contact the people you owe money to and try and negotiate a repayment plan, see if they will reduce/stop the interest. You MUST maintain that payment plan, the first time you default, it will be worse and they will not enter into another agreement, ever with you.

SecondIf possible, try and consolidate your debts into one payment, the larger the debt, the less fees are charged and sometimes the interest rate is lower. But this will only work if you haven’t already ruined your credit rating.

ThirdAlways pay off the highest interest debt first, but you MUST maintain payment on smaller, lower interest debts also, or your will have considered as having defaulted.

It won’t be easy – but you must knuckle down. You will have to go without – you would be advised to go back on a pre-paid phone. Stay away from shopping centres, use public transport whenever and wherever you can. Stop buying takeaway, learn to cook. It will be 4-5 years until you have filled the hole in – but it will be a lesson learned and perhaps a lesson that will stay with you for the rest of your life.

Life is not free, life is not easy. Do not make the mistake many young people are making today and think that interest free is the way to go if you want something. If the old one is still working, keep it, save up and pay cash. Credit is an evil and dangerous thing, that will consume your life if you are not careful.

Help is only a phone call away. It will not be pleasant, it will not be easy. But you have to do it.

The Financial Woes of Our Youth. (Part 1)

I’ll admit it – I’ve been in the workforce 23 years, that makes me older than the youth I am about to discuss. But I’ve mentored several people from the youth group regarding finances and have tried to dig them out of the self-dug holes, they find themselves in.

It is so easy to get into trouble, you may not even realize it until it is too late.

You want the newest mobile phone, bugger going prepaid and finding the money for the handset, stuff it just go on contract. You don’t read the contract properly and you end up with a bill of $2000.00. This occurs because you are used to the service cutting off when you used pre-paid. This is the first error. Some kids are smart and will ask for help, others think it will just go away and this is the first step into the troubled lands.

You want a new laptop – easy – Harvey Norman are offering interest-free for 24 months, no problems, I’ll pay it off before then. You always have something else to pay and you don’t pay off the bill, even though you get sent monthly reminders. 2 years race by and suddenly that $2,000.00 laptop is going to cost $3,500.00 assuming you pay it off immediately, when you realize that they interest free period has expired. (27% interest, back dated AND compound)
This is assuming you have job and haven’t lost it yet, due to economic downturn.

The car that you drive, your parents helped you with the personal loan and probably went guarantor. Lucky you, but you haven’t paid the monthly loan amounts, you would much rather spend the money on partying, then paying stupid bills which will always be there. Suddenly your parents are receiving nasty letters, saying you have defaulted on your loan. You now owe another $500-$1000.00 in legal costs and you have your first black mark against your name.

Let’s add this up - $2000.00 phone bill, $3000.00 Harvey Norman, $500.00 court costs, $1200.00 loan costs. This totals approx $7000.00 in debt before you are even 21.

Look out for part 2 tomorrow. It will give you tools you need to fill in the hole you have dug.

Don’t Judge that Book by its Cover

A couple of 20yo’s walk into a well-established well-known restaurant, they have been there before, they have been there many times before.

They are treated like royalty. The always order the most expensive dishes, they always order cocktails. They are nicely dressed in tailored clothing.

They always pay the bill

That restaurant earnt the fees they charged for the meals and the services provided.

The same 20yo couple walk into a fine-dining establishment in a tourist area. They wish to see the menu before they take a seat. A verbal enquiry was made about the availability of one item on the menu.

The maître de enquired as to how the couple would be paying and then stated that no meals would be ordered unless a down payment was made.

This was down-right insulting and said couple walked out of the place.

Now these two incidents, occurred to the same couple, within weeks of each other. One establishment has ensured that the couple return. The other establishment has ensured that not only will the couple NOT return to that restaurant, but also ensured that the couple will not return to the area and will not recommend either the area or the restaurant.

To business owners out there, and I mean ALL business owners out there, never ever judge a book by its cover. It could cost you and business’s in your area cold hard cash.

Charging Board to School Leavers (or kids still at home)

(Reposted from other blog)
Sitting in the car, whilst Miss17 almost 18 drives me home, (she is on L Plates) School has now finished, last exam was mid-November. We were discussing what her movements would be until the exam results came in and between university.

Response went something along the lines, dunno, I suppose I could find something that’ll get me $100.00 a week. I said what? - $100.00, are you planning on allowing someone to pay you $20.00 a day?

Oh, I’m not going to work full-time. No-one else is. My response to this was, remember once the exam results come in – you are expected to pay board of $50.00 a week.

That’s not fair, I don’t have a job, I said that’s why you have to get a job, $50.00 is nothing. Her response – I can live in a flat for that.

Excuse me!!!!!!!!!!!!!! - $50.00 a week won’t even pay your telephone bill. Rent (Cheap) $120.00 per week, Food $100-$50.00 per week, electricity $50.00 per week, buying your fridge and washing machine and don’t forget your bed etc.

Oh……………………….. is it THAT much?

The head was returned to the shoulders and nothing else has been said, but come the 19th December, a bill of $50.00 has to be paid. It is now in her hands as to how that money is generated and the funds paid.

I’m not the only parent having this conversation, friends of ours, waited until their son finished university before they decided to charge board. He kicked up at the $50.00, same argument, same results.

When will kids learn, that nothing is for nothing and ‘digs’ like the parents are even more expensive if you want to move out.

How many rentals have someone to do the washing, cooking, cleaning AND pay the bills on time?
No commercial properties that I am aware of!

Remember the responsibility of board is a learning experience, so charge the kids and put the money aside for a house deposit or similar in later life. But charge them on principle, it teaches them another life lesson!

An Experiment in TV

It must be getting closer to Christmas, all the free-to-air (FTA)TV stations have reverted to repeats and treating the viewer like a guinea pig, or is that monkey? When you get a reward for acting the way they want you to.

Every year, early to mid November all the regular shows that I enjoy watching on FTA TV are removed or moved to some stupid time slot. Doesn’t matter that I record everything I watch, it matters that the timing of the recording is no longer relevant and I have to re-set everything.

So once were I might be watching CSI or Criminal Minds, or some other mildly interesting but mind-numbing show, I get some stupid show about ‘bewdiful’ people in the USA parading around on red carpet and acting the goat.

I’m sorry, that’s NOT why I watch your crappy channel and why I supplement my viewing with Foxtel.

Foxtel has its’ own dangers, too much garbage, made by second rate producers, but some and I stress some of the shows can be very interesting, if you can get past the introduction.

I watch Foxtel mostly for the factual/truth/discovery type programs and reserve the FTA viewing for my more light-hearted, less involved type viewing.

I don’t particularly like too much choice, it makes life confusing, why have 200 stations, when perhaps 50 with high quality content would suffice?

I remember when Foxtel first came on the scene, people thought it was the best thing out. I resisted acquiring Foxtel for many many years, remembering that Foxtel made its’ debut onto the Australia market in 1995. What I saw of it then, only impressed upon me the fact you were paying for repeat TV every 8-12 hours. In other words in Aussie slang, a wank of a feature. Only get if you wanted to impress your mates with how much money you have.

FTA TV remained my best friend for the next 12 years. I refused to pay for something that I could otherwise receive for free and the content was not often repeated.

One day things changed. I was stuck on the couch for 4 months and Foxtel saved my butt, or at least my mind. I still record everything I want to watch from FTA TV, and watch live anything that catches my fancy on Foxtel, when I get the time to sit down.

I still say that FTA TV has a place in our life and I believe that those less fortunate who can’t/or shouldn’t afford Foxtel, should still be able to learn something from FTA TV, even if it is how to clean the kitchen or do the odd home renovation. FTA TV is not for dummies, it is for Aussies, who shouldn’t have to pay for quality TV viewing in what the TV stations consider off-peak viewing periods.

**FTA = Free-to-Air TV

Schoolies – My Job as a Parent

My Job as a parent is almost over. My daughter will be 18 this month, she has finished Year 12, (with Certificate of Merit) and the exams are completed. All in all the year has been reasonable – not too stressful for either parent or student.

Ms almost 18 came to me last week and said I have been invited to go away for schoolies……… I was dreading the thought. Before I was able to comment, she then piped up………………. “But I don’t want to go, I don’t want to be babysitting them, while they get drunk and stuff”

This got me thinking – firstly I must have done a good job parenting, if she can already see this, secondly what is ‘and stuff?’

She told me some of what the girls are planning, getting drunk, trashing wherever they go, seeing if they can find some marijuana and get stoned. I imagine in there is the gratuitous sex, possibly unprotected. Oh I can’t bear to think about it.

In her wisdom, she said no. She realized it would lead to nothing but trouble, that she wouldn’t be able to enjoy herself as she would be babysitting the immature people of the party.

I understand that some people, both parents and children see muck-up-day and schoolies as a sign of growing up – what happened to getting your first car, getting your license, being allowed out late, your first legal drink.

My daughter already has a car, she is well on the way to getting her licence, she is allowed out late, (midnight) as long as I can pick her up. She may have tasted one or two alcoholic drinks but has certainly not been drunk.

These are all benchmarks in the growing up part of life. If parents think it is okay to allow the 15yo out after 10pm and not know where they are, that is not my problem. My problem is my child and where she is and what she is doing.

Schoolies is just another excuse for another party. What I want to know is where is the money coming from to fund this alcoholic binge? – If it is coming from the parents, they ought to be ashamed in permitting good money to be thrown away in this manner.

If this money is coming from government money, then they are being paid too much.

If this money is coming from part-time work, then the expenditure is fine, because the children have had to save the money and have learnt a lesson in doing do. My problem is that money could well be spent on something far more worthwhile.

Perhaps I am a party spoiler, perhaps I am too strict, but I certainly know where my children are, what they are doing and when they are doing it.

Schoolies is asking for trouble and from an accommodation point of view – I fully understand WHY certain establishments REFUSE all male or all female parties AND why around schoolies week they vet heavily AND increase costs. It’s called self-protection from a selfish minority.

If you have children attending ‘schoolies’ please please read them the riot act and hopefully no harm will come to them.

House ownership – for and against

I’m not sure why there is an argument regarding this issue. I really don’t know.

I’ve owned property since I was 19yo – simply because the price was right, the area was right and bugger paying someone else for me to live there.

Consequently I now live in an area that I want to – I am not yet mortgage free, but I am certainly better off paying a mortgage than paying rent – thus lining someone’s else pockets.

The average rent for an average house in suburbia is $300-$400 per week.

Using the same suburb, the median houses prices are $300-$400k – let’s assume you have $10-$20k stashed away somewhere. The average mortgage repayment would be $430.00 per week at 5.64% per annum.

The difference being $30.00 per week MORE for something that will be yours sometime down the track.

Notice I have worked on a slightly higher figure than the current rate – you have to be realistic.

Alright – so you have the maintenance costs, the rates costs, all that sort of thing, perhaps add another $50.00 per week to cover this expenditure.

The difference is now $100.00 per week (rounded up for the sake of convenience) more than renting.

I understand that some people rent for convenience, ie, their job requires that they move, they are testing the area, they are trying to locate a property in the area. There are many reasons to rent.

The problem I have with people renting, especially those that have an established income stream is that they are throwing money away.

Refer to this post Mortgages, Ownership and Interest Rates http://itaintalwaysso.blogspot.com/2009/10/mortgages-ownership-and-interest-rates.htmlwhere I make reference to affordability and being realistic. You can’t always have the best house in the best street, but you can be realistic and buy something you can afford and get ahead that way.

By considering a mortgage it will save you money in the long term – just like money in the bank. It won’t be easy, but I know I would prefer my money be in my pocket and not a landlords pocket.

This is a PERSONAL view, please consult a person with a financial background before committing to anything that you may see written here.

The Peanuts and the Elephants

I like analogies; they tell a lot about the situation, they tell a lot about the person.

They can convey a message without it seeming harsh, they can convey a very important message without losing the meaning.

I work in the financial field and often have to remind business owners that the elephants are not the bread and butter of business, they are the cream.

The peanuts are the small business owners – who more often than not pay their bills on time – who rarely screw you for price. Who are friendly and certainly less demanding than the big multi-national or even the national company.

How many times have you read in the news that company A has failed and with it company B and C are dragged down?

This is due to the fact that Company B and C failed to look after the peanuts, the smaller companies, the companies that pay their bills on time and are less demanding.

If company B & C had looked after the peanuts, the small fry, the small business, they would have these companies to fall back on – but often companies B & C are enticed by the lure of money, of the next big job, of the next big payment waiting to come in next week and they overlook the bread and butter.

Peanuts might be smaller, but they are far more numerous and certainly taste better than an elephant.

I would rather have 10 small companies owing me $10,000 in total, than one big company owing me $10,000. I know for a fact that 9 of those small companies can’t fail, whereas that one big one might just do that that.

If you are in business, regardless of the size, make sure you look after the peanuts, you can eat them, but elephants, they require much care and hard work before they are edible.

Mortgages, Ownership and Interest Rates

The news today is saying that interest rates are going up on mortgages. I see people are already panicking about this.

They curse the banks, they seem to think that it’s the banks fault they are struggling with their repayments. People look for others to blame for their problems.

Here is my story:-

**Purchased first home November 1987. A 10sq 1970’s brick house, close to amenities and schools, ripe for renovation and new carpet and paint
· Interest rates 17-18%
· Paid off March 1990
· We went without new cars, we went without new furniture, we went without renovations, we went without dining out, we went without entertainment.

**Purchased second home June 1996. A 8sq 1930’s weatherboard house, miles from anywhere with 5 acres attached. Or what is known in the industry as a ‘Renovators Delight’
· Interest Rates 5-9%
· Still paying off, but there has been illness and accidents
· We lived in the old house for 7 years, whilst saving and collecting for the ‘new’ house. We still did without new cars, new furniture, dining out and entertainment and had two children to support.

Now you are sitting back and saying that we suffered, that we did it too hard. That we must have had parents help, that we must have good paying jobs. Ummm sorry to shoot you down, but we had none of that. If fact we were 19yo and 23yo. No university degrees, no qualifications, nothing other than the desire to move ahead in life and do it with minimal distress.

What I am trying to impress upon my readers is that – to move into the ‘best’ suburb, to move into the ‘’best’ house in the ‘best’ street , may not actually be in your ‘best’ interests.

I will be able to when I am 50yo sit back and not have to worry about where the next rent payment is coming from, not have to worry about the where the next mortgage payment is coming from. Everything should be paid off soon.

You can’t have your cake and eat it too.

You must make your biggest life purchase, with the thought in the back of your mind, what happens if something goes wrong? What happens if there is a car accident? What happens if we accidentally become a family?

Life is interesting, life is fun, life is also unpredictable and you must be prepared.

There is no way possible that we would have been able to achieve what we did without finance. But we approached the idea of finance with the respect it deserves.

Be the interest rates of 5% or 17% you must be able to afford the worst case scenario. If you are unable to afford them, then perhaps you need to consider selling and moving into something smaller. Or starting again, using the period that you were paying the mortgage as a period in your life you lived rent-free.

We now can go out to the occasional dinner, the occasional movie, we even bought a new car or two. But we looked at each major purchase and the ramifications of each purchase before purchasing.

Many people think that money comes easily.

Money does not grow on trees. It grows through hard work and respect.

Budgeting Money

Do you struggle pay the bills? Not because you don’t get paid enough – but all the money seems to disappear before your very eyes?

There is a really easy answer. It’s so simple you won’t quite believe how easy it can be.

I’m not selling anything, in fact I’m not even giving anything away – other than sharing with you a few tips that I have learnt whilst living life in the lean lane for many years.

First thing you need to do – calculate how much your bills really are, from the car registration to the insurance to the electricity bill and even your mobile phone and land rates. Everything that you have to pay on a monthly, fortnightly, monthly, quarterly or yearly basis – write these down on a piece paper, noting when the amounts have to be paid.

Now break these figures down into the same period that you get paid, so if you get paid weekly, divide the monthly due figures by 4.5, if yearly divide by 52. This will bring all figures into line with the pay period.

Example:-
I get paid weekly
Car Registration $600 per year, therefore $11.54 per week
Car Insurance $700 per year, therefore $13.46 per week
Mobile phone $50 per month, therefore $11.11 per week
Water rates $150 per year, therefore $2.88 per week

This is only part of my costs, but it works out at $38.99 per week, this is the amount of money I need EACH AND EVERY week to pay my bills, without anything else going wrong.

Go to your bank and set up a separate account into which this money is paid into directly from your wages account.

Then use that money to pay the bills when they come in – utilize the pay early discounts and set things up when you receive the bills – so they are automatically paid on the day. That way you don’t have to worry about remembering to do it when the bill is due.

Believe it or not – although it seems hard for the first couple of weeks/months, you will actually have more money and better cash flow because you are not taking chunks out of your regular account to pay the bills!.

It’s easy – do it now – don’t pretend it’s hard. The hardest bit is going to the bank and setting up the 2nd account.

It worked for me and I am still amazed at how much money I really have these days AND I am not worried about the bills AND I am managing to put some money away for a rainy day. That wasn't possible before!

Recycling and Re-Useable Carry Bags

Do you recycle? Can you be bothered recycling? Do you consider recycling to be in the too hard basket? Do you think recycling doesn’t make any difference so why bother?

I bother, not because I worry about future generations, but because I am lazy and also hate to see waste. Why wheel the bins down the street, when I can use a compost bin and my chooks to get rid of waste. I don’t buy things in single serve packaging, I just can’t be bothered buying 10 of them. I would rather buy one large item and use as needed. Plus it’s cheaper! This method both saves money and also excessive plastic packaging of the individual items.

Aluminum cans in our house are recycled, the kids collect them and then we transport them to the local steel recyclers. This is their pocket money for Christmas presents. People say why bother? – I bother because it teaches my children responsibility. Responsibility for their actions (they have to work all year to achieve the desired result) and also that money doesn’t grow on trees.

Plastic bags are another bug bear of mine – not because I hate them – but for 20 years I have NEVER bought a plastic bag off the shelf – I have always used the bags from the supermarket shopping for the bin liners, for the school excursion trip, for the lunch that hubby takes to work. For the dirty pair of shoes that needs to be packed. Even for the dirty/wet washing that needs to be packed when holidaying.

Soon I am going to be forced to BUY (God forbid) plastic bags for the bin liners, for the dirty shoes for the wet and dirty washing. This goes against my grain.

The ‘Green’ bags that you see people carting to the supermarket are not actually that ‘green’ friendly. Each green bag is ‘worth’ 1.2 thin plastic bags, and we will still be reaching for bags to line the bins with, pack the dirty shoes etc.

Green bags are not what I consider to be recycling, simply because their manufacture actually involves the same problems, along with disposal when they wear out. And new material is being taken off the shelves to replace what was previously recycled!

I know of some families that will not serve food left-over from the night before’s meal. They would rather throw the food out than be seen to be eating left-overs. I consider this to be grossly wasteful and these people should be ashamed that they are wasting perfectly good food for the sake of vanity.

In our house left-overs are probably the best meal we can have. Often a meal of left-overs involves meals from 2 or 3 nights, which means there is a variety of food available and often food tastes far better the 2nd time round.

We use a freezer to preserve the left-overs until we need/want them. Sometimes it will be because only ½ the family is home and something pulled from the freezer is just the right size for 2 or 3 people, rather than cooking a whole new meal.

This not only saves money and food, but also energy costs which in turn saves more money. It is rare for our family to cook exactly the required amount. Often we have extra heads for a meal, often some family members can’t make it home. So the meal is considered a meal for ‘Ron’ – meaning later on and placed in the freezer.

A saying that has my grandmother used to use and I think goes back to the 2nd World War – “Waste not, want not” and it is something that I live by and something that I am proud say my children also believe in.