Tag Archives: saving

Clueless housewives

Ah, the simple little housewives whose husbands make all the money and pay all the bills. I see them regularly. They’re great at spending money,┬ábut have no clue how much comes in or goes out. He takes care of everything now, but if he dies or you split up, you’ll have no income, a mortgage to pay, and no clue about how all the money comes and goes. ┬áThen, you’ll give new meaning to the term Desperate Housewives. Get a clue!!

On the other end of the spectrum, I met a very unique twenty-something Irish migrant whose dad taught her to start saving while she was very little. He taught her, “if you don’t have it in your pocket, don’t spend it” and about the art of “selective spending”. She has great habits, but strangely, not really any plan or goal for it all. Whats up with that? Interesting mix.

Do you know either of these ladies?


What really creates wealth

What would you say is the x-factor that creates wealth? Choose the most correct answer:

  1. great investment strategy
  2. having a significant income
  3. saving money
  4. lucky dice

Most of these answers are important factors in your financial future. Someone recently shared with me an article by Australian money wiz, Peter Thornhill. He’d argue that answers 1 and 2 are too complicated and unnecessary. Answer 4 wouldn’t even get a glance from him. Here’s his take on what really creates wealth:

“Cash flow [is] the life blood of any good business… [Retained earnings] is what creates wealth for us as individuals as well as corporations, the sensible investment of a part of each year’s earnings.”

There you have it: retained earnings. This is a fancy word for “saving money”, and this is what creates wealth more than the lotto, big paychecks or snazzy investments. People with all three of those can still struggle and fail; I’d put my money on the saver.

What do you think?

Drop by next week to find out the simplest way to put this into action for yourself…

Mini Story, Large Success

If you look closely, you’ll see Brisbane’s happiest new Mini Cooper owner. After waiting for roughly 3 years, Ali is finally behind the wheel of her dream car, and was also happy to tell the story of how she did it.

“When we first moved to Australia, I was 14, was the first time I saw [a Mini] and I thought they were the cutest cars ever,” she tells. “I knew then that I would own one.”

Ali considered getting a loan for the car she wanted so badly, but was dissuaded by seeing a friend struggle with car repayments. She describes,

“the repayments were quite high and she never had time for anything socially. So I decided that I would save my money instead, and then I could do it on my own terms. I hate having debt, even $200 on my credit card will bother me, and I can’t let 2 weeks pass without paying it off. I have never payed interest on my Credit card in 5 years. I would rather go without something the next week than have debt.

The biggest challenges along the way were the waiting, as well as finding the right car for her budget. Ali tells how she could have had her car straight away by getting a loan, but says it was worth the wait.

This is a brilliant example of someone who’s obviously been taught some great money skills at a young age by her parents, and is now reaping the benefits of great decisions. It took discipline to patiently save money for those 3 years, but now Ali has her dream car! Plus, because her income isn’t tied up in repayments, so she gets to keep 100% of her net income. Imagine how great that must feel!

Ali says, “It is really great knowing that after all these years, my hard work has payed off and that I can enjoy the harvest of my savings.” Brilliant, brilliant work. Who knows what Ali will go on to accomplish with those skills. Let’s take a lesson or two from her story: lock on to your goal, don’t compromise, save regularly, be patient, and you’ll get what you want.