The rise and fall of me. 2 years ago I was not married with no kids and living with my girlfriend in a 2 bedroom unit which was halved paid off. We made about 100K au per year approx. Now, 2 years on. I am married, one kid with another on the way and my lovely wife has stopped working. Our income is now about 60k au plus government extras. We made the tough call to rent our unit and move back with my parents. Import note: Kids are super costly! ps. Australia's dollar is about 60c to the us dollar.
Why would you have two kids if you can't afford the one? Also, does your wife plan on working again after she has the second baby? There is no shame in being poor, but your lack of planning made you poor. When I was little and it was just me and my mom, she had to work three jobs to keep us going. The funny thing is, I never knew. I knew she had one job, because I was in a great home-based daycare, but I didn't know about the other two jobs because she didn't go to them until I was asleep. She survived on about 3 hours of sleep most days in order to keep us afloat and save enough money so that we could move to a place with better jobs and schools. May I point out that when my mom chose to have me she was married, my biological dad was working, and she had an excellent job (that she returned to three weeks after having me - no maternity leave in the South at that time). Obviously, her er plans didn't work out as they seemed (a husband that turns into a child and deadbeat after he had a kid and wracked up major debt without my mom's knowledge will do that), but she took on the challenge and acted like an adult. It is great to be home with your kids if you can afford it. You obviously can't and now you rely on the grandparents to help take care of your family. I have to say, it seems like you two have the ability to fix the situation, but are choosing not to. Also, STOP HAVING KIDS THAT YOU CAN'T AFFORD. EDIT: I am not sorry if you are offended by this. Bad parenting and planing for children is inexcusable. Should a problem present itself, even after proper planning, you must sacrifice to ensure that you can provide for your family and possibly give your kids some college money or start-up money. Money isn't everything, and I understand if your wife couldn't work or you couldn't take on a second job. Is that really the case here? I doubt it.
Sounds like there's more to that story than what came out, but with what you gave us, I agree with Mrs. MacRoss. It sure looks like someone(s) made some bad decisions there.
Okay, I make 36k per year, which is by no means Mad Money. However, I pay my living expenses, put a little bit in savings, and manage to have an itsy bit left over for fun stuff. Sure, I live in a shady area, but it is by no means the worst place in my city. Sure, I drive a used car, but it gets good gas mileage, cost me less than 15k, and had less then 50k miles on it when I bought it. I made decisions based on my level of income and bought what I needed that I could afford. I get along just fine, without much hardship at all, on the income I have now. If I were making 2-3 times that much, then I would have a lot of additional spending cash. Thus the designation of Mad Money. I think the real test is not how much you make, but how much you have left over for discretionary stuff after you pay your regular bills. People that have kids are going to have to reach a much higher income level to have Mad Moneys. It's all relative to what you DO with it.
Okay, I make 36k per year, which is by no means Mad Money. However, I pay my living expenses, put a little bit in savings, and manage to have an itsy bit left over for fun stuff. Sure, I live in a shady area, but it is by no means the worst place in my city. Sure, I drive a used car, but it gets good gas mileage, cost me less than 15k, and had less then 50k miles on it when I bought it. I made decisions based on my level of income and bought what I needed that I could afford. I get along just fine, without much hardship at all, on the income I have now. If I were making 2-3 times that much, then I would have a lot of additional spending cash. Thus the designation of Mad Money. I think the real test is not how much you make, but how much you have left over for discretionary stuff after you pay your regular bills. People that have kids are going to have to reach a much higher income level to have Mad Moneys. It's all relative to what you DO with it.
That's basically my opinion. I make about the same as you, and I am pretty thrifty, so while I don't live extravagantly, I'm able to put quite a bit by in savings to pay off my student loans.
Thus the designation of Mad Money. I think the real test is not how much you make, but how much you have left over for discretionary stuff after you pay your regular bills.
Ah, then I have "mad money".
I live with my girlfriend, we are both self employed, we are both successful in our fields and we both earn plenty of money. We live in a cheap city, but neither of us do any work here, we travel and work elsewhere, meaning we are get paid way above what it costs to live here. We both claim very low taxes due to both having a studio in our home = half of all rent and home expenses are work expenses, and we have a van not a car, so that is claimed against tax too. Also, as we sometimes work together, I get to pay Pola for working for me, meaning we do what we can to equal out our earnings. We pretty much spend what we want to or need to for whatever we need or want, but as we don't have expensive hobbies nor expensive tastes. Meaning there isn't a single thing either of us need or want in life that we can't just pay for on the spot. To be honest, I've not checked my accounts recently to see how much I've earned, as my answer is "plenty for now".
Two income households for the win!
And I agree completely with the above sentiments. We are good friends with a couple who had a baby beyond their means. Neither make much money and they now have to live miles away just to be able to afford a place big enough to raise a child, are continually counting pennies just to be able to get by and are almost completely supported by the state. Should have used protection!
It depends. I just bought a brand-new 2009 Honda Fit, but the reason I opted for the '09 model is that it has several nice features that I wanted that are not available on older models. Additionally, the engine was completely redesigned for '09; in effect, the latest model is a totally different car than the previous model years. So, it made sense to get the car first-hand.
It really depends heavily on the car in question and what you plan to do with it. If all you need to do is commute within a city, and you're like 3 miles from work, you can do what a coworker of mine did and get a 2000 Geo Metro. Cost him $1200 and he gets in excess of 50 mpg. It's only useful for commuting within the city, but hey, it serves him well.
I do travel long trips occasionally, and I need a car that can haul stuff to a con. Thus, I picked up a 2003 Toyota Camry. Big enough, decent mileage, will last a long time if I take proper care of it, etc etc. It was 5 years old with less than 50k on it...The price was excellent compared to the other Camrys available. My monthly payment is less than $300...I consider it a win.
If you're going to go with a used car, do your research and make sure it's a brand that holds its value. That generally means it will last you awhile. I'm hoping this car will last at least several years past the paying off of the loan. Also, get a pre-purchase inspection done at your maintenance place. Most places you can buy a car will give you a few days to return the car, but make sure you ask about the policy. Also make sure you have them check for corrosion, especially if you live near the beach or up North where they salt the roads a lot. Rust damage is irreparable.
If you're going to go with a used car, do your research and make sure it's a brand that holds its value.
No car holds its value. Cars are one of the worst investments a person can make, money-wise. The only thing you get from owning a car is some more freedom in your travelling.
If you're going to go with a used car, do your research and make sure it's a brand that holds its value.
No car holds its value. Cars are one of the worst investments a person can make, money-wise. The only thing you get from owning a car is some more freedom in your travelling.
No car holds 100% of its value. However, some cars hold more value for a longer time. Honda cars tend to be very reliable vehicles, and as such they don't depreciate quite as fast as some other vehicles. If you're planning on buying a car, new or used, you should always check into its reliability and long-term resale value.
If you're going to go with a used car, do your research and make sure it's a brand that holds its value.
No car holds its value. Cars are one of the worst investments a person can make, money-wise. The only thing you get from owning a car is some more freedom in your travelling.
Says the man who lives in a country with public transit that works well. It's not a matter of freedom here, a large percentage of this country is unacessable except by car.
And computers are a faaaaar worse investment than cars.
No car holds 100% of its value. However, some cars hold more value for a longer time. Honda cars tend to be very reliable vehicles, and as such they don't depreciate quite as fast as some other vehicles. If you're planning on buying a car, new or used, you should always check into its reliability and long-term resale value.
Exactly. Hondas and Toyotas are some of the least-quickly depreciating cars. Hondas are generally a little bit more expensive (probably because they're a little bit better).
Cars do lose value very quickly. However, if you keep a car for a very long time, the value increases! My 2006 car will be worth poop and more poop for 20 years or so, but in 2040 or 2050 it will be a classic. Of course, if you want a car to become a classic, used is as good as new for that purpose, as long as the car is in good condition. The only advantage of buying new in that case is to guarantee the car is well taken care of for its entire existence.
Also, some cars hold almost all of their value, or increase in value, right away. However, these are not cars normal people can buy. We're talking about limited edition cars like the Enzo Ferrari. We're talking about prototype cars like the Schigera. We're talking about custom jobs. We're talking about cars you have to wait in line for, like the Tesla cars. All special cases that don't apply to most people.
Oh yeah, there's also the chance that your car could become special in some way. For example, the Nissan Skyline GT-R is not street legal in the USA. It was not easily available very much outside of Japan. However, it is a very highly desired car, even all these years after its production. If you want to get one, especially one converted to be legal in the US, you just might end up paying more than the original price of the car, even though most cars of that same age would go for almost nothing.
It depends. I just bought a brand-new 2009 Honda Fit, but the reason I opted for the '09 model is that it has several nice features that I wanted that are not available on older models. Additionally, the engine was completely redesigned for '09; in effect, the latest model is a totally different car than the previous model years. So, it made sense to get the car first-hand.
Aw man, I just got the '08 model in May. What nice features are you talking about?
It depends. I just bought a brand-new 2009 Honda Fit, but the reason I opted for the '09 model is that it has several nice features that I wanted that are not available on older models. Additionally, the engine was completely redesigned for '09; in effect, the latest model is a totally different car than the previous model years. So, it made sense to get the car first-hand.
Aw man, I just got the '08 model in May. What nice features are you talking about?
It's not heated seats. Those and the turbocharger are the only things that make my car better than TheWhaleShark's. :P
Says the man who lives in a country with public transit that works well. It's not a matter of freedom here, a large percentage of this country is unacessable except by car.
Not my problem that you people stopped paying attention to mass transit and claimed such a huge landmass.
And computers are a faaaaar worse investment than cars.
Yes, computers are also one of the worst investments a person can make.
No car holds 100% of its value. However, some cars hold more value for a longer time. Honda cars tend to be very reliable vehicles, and as such they don't depreciate quite as fast as some other vehicles. If you're planning on buying a car, new or used, you should always check into its reliability and long-term resale value.
This is also true, but no matter what, it always goes down. And only if a car manages to survive long enough to be considered a classic, something which does not happen with cars that are made today, only then the price might rise again. And even then the costs to keep it working are so big. Not to mention, road tax, gas, insurance, cars are really bad investments. In the case of say a house, those prices rise mostly. Yes, once in a while the house market creaks and drops again, but afterwards it goes back up. That's what I meant with investment, faster or slower devaluation was not my point.
The only way to actually have a car be a decent investment is to buy it when it's already a classic, and thus is exempt from taxes (at least, over here), and not to drive it. Then after a while it will still work as great as when you bought it (if you bothered keeping it nice and clean) and will thus have increased in value. Any other way and a car is a horrible investment from an economical point of view.
Cars do lose value very quickly. However, if you keep a car for a very long time, the value increases! My 2006 car will be worth poop and more poop for 20 years or so, but in 2040 or 2050 it will be a classic. Of course, if you want a car to become a classic, used is as good as new for that purpose, as long as the car is in good condition. The only advantage of buying new in that case is to guarantee the car is well taken care of for its entire existence.
You won't make a single dime on it though. Keeping it in good condition costs a lot of money, and costs more and more the older it gets. You will have to hope that people would want to buy it as a classic later on.
Also, some cars hold almost all of their value, or increase in value, right away. However, these are not cars normal people can buy. We're talking about limited edition cars like the Enzo Ferrari. We're talking about prototype cars like theSchigera. We're talking about custom jobs. We're talking about cars you have to wait in line for, like the Tesla cars. All special cases that don't apply to most people.
This is true, but a point can be made that, while they can drive, these cars might as well be better classified as collectors items.
Oh yeah, there's also the chance that your car could become special in some way. For example, the Nissan Skyline GT-R is not street legal in the USA. It was not easily available very much outside of Japan. However, it is a very highly desired car, even all these years after its production. If you want to get one, especially one converted to be legal in the US, you just might end up paying more than the original price of the car, even though most cars of that same age would go for almost nothing.
The Nissan Skyline is awesome. But it too is near the zone of 'collectors item' if you ask me.
It depends. I just bought a brand-new 2009 Honda Fit, but the reason I opted for the '09 model is that it has several nice features that I wanted that are not available on older models. Additionally, the engine was completely redesigned for '09; in effect, the latest model is a totally different car than the previous model years. So, it made sense to get the car first-hand.
Aw man, I just got the '08 model in May. What nice features are you talking about?
Ready? The '09 Fit Sport has:
-A 118 HP i-VTEC engine - slightly more HP than the '08, and the incorporation of the i-VTEC allows for improved engine performance (as opposed to the standard VTEC used in older models)
-Daytime running lights: excellent safety feature
-Electronic Vehicle Stability Assistance: assists in preventing fishtailing and loss of vehicle control
-Tightened suspension and widened body: the '09 Fit Sport is slightly wider than previous years, and the suspension is noticeably sportier. This gives it better handling in turns; it actually handles like a small sedan as opposed to a small minivan
And the very nice one: optional satellite navigation system. Very handy tool.
There are a handful of other things that are different, but between the engine, suspension, and VSA, the '09 is very different than previous model years.
The '08 is still a great car, and is cheaper overall. I was just in the market for a car, and the '09 happened to be coming out just as I was looking.
Comments
EDIT: I am not sorry if you are offended by this. Bad parenting and planing for children is inexcusable. Should a problem present itself, even after proper planning, you must sacrifice to ensure that you can provide for your family and possibly give your kids some college money or start-up money. Money isn't everything, and I understand if your wife couldn't work or you couldn't take on a second job. Is that really the case here? I doubt it.
Okay, I make 36k per year, which is by no means Mad Money. However, I pay my living expenses, put a little bit in savings, and manage to have an itsy bit left over for fun stuff. Sure, I live in a shady area, but it is by no means the worst place in my city. Sure, I drive a used car, but it gets good gas mileage, cost me less than 15k, and had less then 50k miles on it when I bought it. I made decisions based on my level of income and bought what I needed that I could afford. I get along just fine, without much hardship at all, on the income I have now. If I were making 2-3 times that much, then I would have a lot of additional spending cash. Thus the designation of Mad Money. I think the real test is not how much you make, but how much you have left over for discretionary stuff after you pay your regular bills. People that have kids are going to have to reach a much higher income level to have Mad Moneys. It's all relative to what you DO with it.
I live with my girlfriend, we are both self employed, we are both successful in our fields and we both earn plenty of money. We live in a cheap city, but neither of us do any work here, we travel and work elsewhere, meaning we are get paid way above what it costs to live here. We both claim very low taxes due to both having a studio in our home = half of all rent and home expenses are work expenses, and we have a van not a car, so that is claimed against tax too. Also, as we sometimes work together, I get to pay Pola for working for me, meaning we do what we can to equal out our earnings. We pretty much spend what we want to or need to for whatever we need or want, but as we don't have expensive hobbies nor expensive tastes. Meaning there isn't a single thing either of us need or want in life that we can't just pay for on the spot. To be honest, I've not checked my accounts recently to see how much I've earned, as my answer is "plenty for now".
Two income households for the win!
And I agree completely with the above sentiments. We are good friends with a couple who had a baby beyond their means. Neither make much money and they now have to live miles away just to be able to afford a place big enough to raise a child, are continually counting pennies just to be able to get by and are almost completely supported by the state. Should have used protection!
It really depends heavily on the car in question and what you plan to do with it. If all you need to do is commute within a city, and you're like 3 miles from work, you can do what a coworker of mine did and get a 2000 Geo Metro. Cost him $1200 and he gets in excess of 50 mpg. It's only useful for commuting within the city, but hey, it serves him well.
If you're going to go with a used car, do your research and make sure it's a brand that holds its value. That generally means it will last you awhile. I'm hoping this car will last at least several years past the paying off of the loan. Also, get a pre-purchase inspection done at your maintenance place. Most places you can buy a car will give you a few days to return the car, but make sure you ask about the policy. Also make sure you have them check for corrosion, especially if you live near the beach or up North where they salt the roads a lot. Rust damage is irreparable.
And computers are a faaaaar worse investment than cars.
Also, some cars hold almost all of their value, or increase in value, right away. However, these are not cars normal people can buy. We're talking about limited edition cars like the Enzo Ferrari. We're talking about prototype cars like the Schigera. We're talking about custom jobs. We're talking about cars you have to wait in line for, like the Tesla cars. All special cases that don't apply to most people.
Oh yeah, there's also the chance that your car could become special in some way. For example, the Nissan Skyline GT-R is not street legal in the USA. It was not easily available very much outside of Japan. However, it is a very highly desired car, even all these years after its production. If you want to get one, especially one converted to be legal in the US, you just might end up paying more than the original price of the car, even though most cars of that same age would go for almost nothing.
The only way to actually have a car be a decent investment is to buy it when it's already a classic, and thus is exempt from taxes (at least, over here), and not to drive it. Then after a while it will still work as great as when you bought it (if you bothered keeping it nice and clean) and will thus have increased in value. Any other way and a car is a horrible investment from an economical point of view. You won't make a single dime on it though. Keeping it in good condition costs a lot of money, and costs more and more the older it gets. You will have to hope that people would want to buy it as a classic later on. This is true, but a point can be made that, while they can drive, these cars might as well be better classified as collectors items. The Nissan Skyline is awesome. But it too is near the zone of 'collectors item' if you ask me.
-A 118 HP i-VTEC engine - slightly more HP than the '08, and the incorporation of the i-VTEC allows for improved engine performance (as opposed to the standard VTEC used in older models)
-Daytime running lights: excellent safety feature
-Electronic Vehicle Stability Assistance: assists in preventing fishtailing and loss of vehicle control
-Tightened suspension and widened body: the '09 Fit Sport is slightly wider than previous years, and the suspension is noticeably sportier. This gives it better handling in turns; it actually handles like a small sedan as opposed to a small minivan
And the very nice one: optional satellite navigation system. Very handy tool.
There are a handful of other things that are different, but between the engine, suspension, and VSA, the '09 is very different than previous model years.
The '08 is still a great car, and is cheaper overall. I was just in the market for a car, and the '09 happened to be coming out just as I was looking.