Managing money to make life easier

[Clues_Of_Blue]

One of the big things that causes stress and sure kicks you about when you already have mental illness to play with is money. Whether you're in debt, just scraping by, or feel like you're working to much to maintain a lifestyle. Here is a place to talk about how to make your dollars go a bit further and take off some financial pressure.

I'll start with some basic pointers:

- Plan a little with food. Make work lunches, decide on meals for the week and stick to your shopping list. If you shop a bit later you're also likely to get a lot of fresh produce at a discount.

- Check regularly (every six months or so) on your utilities. Often there is a better plan out there to switch to. As customers, loyalty to a company usually just gets us a quietly growing bill instead of discounts or rewards. Vote with your feet.

- Same with your home loan, you can refinance to one with a better interest rate, just watch out for exit fees (and LMI if you still owe more than 80% of the house value)

If you have any tips or questions, feel free to share or ask.

[Clues_Of_Blue]

Hey EM,

Sorry you're feeling sick, that sucks. Me, not feeling too terrible - got my appointments out of the way yesterday, had a good sleep and am resting my shoulder today.

Yup, your choice of offset account sounds wholly appropriate to your situation. I currently lack any investments as I've been clawing my way back to having reasonable emergency savings and such from the last "financial fire" - oh, I have had so many of those!

I think it's worth clarifying the rego and insurance, as it looks like our systems are quite different. I'm not familiar with green slips. Compulsory insurance here is purely third party bodily injury and is part of the rego cost. Insurance for vehicles, third party or our own, is entirely up to us and not compulsory - that bit we choose to either undertake or not, and who we insure with - always has been.

Rego for my little 4-cylinder car is over $600 a year, at the very much reduced rate recently introduced. Comprehensive insurance (also recently reduced somewhat) is about the same (bearing in mind my car is worth little more than $3K). I could get cheaper, but given how many people have driven into me at the lights and such, knowing my company actually pay out when it's needed is peace of mind. Cheaper ones have a reputation for making it difficult. I have taken on board Barefoot's advice re having higher excess to reduce premiums. That wasn't an option with no savings, but my situation is slowly on the improve so I can give it more consideration.

I think this jump into the abyss for you will work out just fine. You know what you're doing, EM.

Is the extra super something you ask your payroll officer to take out, or do you pay it yourself? Just out of curiosity. I think it's a good move for you, if you don't miss it. I don't think it's a good option for me at this time, so I'll be taking a different direction.

My local council's website give precisely no hint of any kind of incentives like that. I have just e-mailed them to ask if there is anything on offer. I have my doubts, SA isn't much of a "helping people" kind of state, unfortunately. But we'll see. You don't know if you don't ask.

I can see that offer of LED bulbs being helpful, you'd be lucky to get three for that price at the shops.

Blue.

[ecomama]

Yeah SNAP on the Financial WILDFIRES!

High five (with your okay arm lol) for us getting through it, even with the mess of things.

Yes YOUR Compulsory 3rd party motor vehicle Insurance IS what we call a "Green Slip" here.
You have to buy that BEFORE they allow you to Register your vehicle (this is where we can choose WHOM to buy our 3rd Party through).
Can't register one without it.
So my "registration" (in SA configuration) is about $1000.

It would really help us all, including Insurers, to have a National Vehicle process.

RE: extra Super Contributions.
I allied with a company that our Govt Dept accepted and they work out all sorts of benefits for Employees.
Some ppl lease cars. I probably won't lol.
I will get their deal on new computer equipment when the time comes. The seller pays them a Commission but we get them for a 50% of normal cost.

Same with Super contributions.
Their deal with Super funds, they get paid Commission by the Super fund to attract more $$.

IF I dealt directly with my specific Super Fund then I can only INCREASE my contributions and they give no flexibility to reduce. They disadvantage you to DECREASE.
So it's all locked in - hence my hesitation previously.

Now I can or don't have to, increase or decrease, whatever I like and I like that freedom of choice.

Re: House Insurance etc
Yep, I've been with same one for 30y now and they've never let me down.
Last year was a freak year with months of bushfires and then huge floods here, so they took 9 months to approve my application.
I was okay with that to a point at about 8 months lol!
I wasn't homeless so I got it.

Although my friend who works with them said to push for a better deal, so I DID LAST YEAR!
lol... they sent me $200 worth of shopping vouchers for renewing with them. Funny thing.

Yes, I agree, each of us has a History of what's happened and we should Insure with whatever excess deal that suits us.

I do LOW Excess for House. $600 I think.
Middling for Car. Around same.

One son is getting an Independent Car Inspection on a car he's interested in buying in the City.
That's booked in for 2 day's time.
We might have another car here soon!

P.son will be happy to get his car back lol!

Love EM

[Clues_Of_Blue]

I knew you'd understand about that!

Ha. Yep, left arm high five.

Right, the thing we don't have to get (though should) is compulsory where you are. Technically I could just get rego with the compulsory bodily injury insurance and that's it, which would be a disaster if I had an accident, though the immediate overheads would be fairly low. When I first got a car the (non-compulsory) insurance I got was third party property, fire and theft with an uninsured motorists extension (i.e. for if someone without insurance ran into me, which happened very soon after I got on the road).

A national vehicle process sounds like a sensible idea. Can't see it happening though.

Interesting, what sort of company is it that you allied with? Sounds like a broker of sorts. Haven't heard of anything like that connected to my work, but we work in vastly different fields, I'm just a supermarket grunt. When the time comes, I'll have to look closer at what my super fund allows as far as choosing to increase or decrease contributions. Current focus, pay off mortgage.

Sounds like quite the muckaround with your insurance. Kind of understandable with the high risk factors in your area. Where I am is pretty low risk, so getting insured and even having higher excess wouldn't be a terrible move for me.

Glad your son has the good sense to get a car inspection before buying. I've done okay inspecting them on my own (when I couldn't afford an RAA inspection), got a bunch of things fixed pre-purchase, but it's better to have a mechanic look it over. Fingers crossed this car is a good one.

What are your thoughts on high interest savings accounts often forcing you to have a linked transaction account with conditions of using the debit card 5X per month? I'm seeing stuff like this (from reputable institutions) with way better interest rates than I'm currently getting, but I don't like the conditions. Still chewing it over.

Blue.

[ecomama]

Yeah our House Insurance isn't hard to get. We're not in a high risk area believe it or not lol.

Yep doubt there'd be a National Car Rego scheme either. Too sensible lol.

I can't remember many details of that company that's a go between BUT from memory I think it's a Govt Agency as well. It's in the Govt's best interests to have Govt Employees put stacks into their Super, hence all the other incentives. Costs nothing to "join".
Pretty smart thinking actually, charging everyone else and not the contributors.

It's in the Govt's best interest to have EVERYONE load their Super I'm sure lol!

Only a spot of money going IN from my pay check. Won't be upping it any time soon. I want the cash flow and savings for the cabin.

Yeah I'm not sure about those high interest accounts. My kids without mortgages all have them and linked to their everyday account and they keep tabs well. Their pays go straight into their High Interest and they transfer. This was p.son's idea at 15yo lol and he told them all about it.
He'll be an AWESOME Accountant! lol.

Alexa just called so I'm gonna go talk with her... talk soon.

Love EM

[Clues_Of_Blue]

Ah, I see. Just bad timing, huh? I'm sure during the fires here last Summer I might have had some delays too, good thing I didn't need to begin insurance then.

Ha, can't see it. The Australian government isn't renowned for streamlining things. They're great at pretending to streamline things (think Centrelink) whilst actually making them less efficient.

Sounds pretty handy, whatever it is. Yeah, I see your point about people having more super being beneficial to the government. Fair that you're keeping your extra contribution low for the moment, there are a lot of places for your money to be going.

Great that your son was keen to get everyone saving. My partner and I both had good savings accounts, then the bum fell out of the interest rate on them both. I've shopped around periodically, but options and reviews have had me questioning whether I'd lose the benefits with one of those accounts with so many conditions, and how secure my money will be in the institution of choice. More research to be done.

Hope chat with Alexa goes well.

I just did my partner's budget - I've been bugging him about it for ages, but he just hasn't had the same interest in it that I do. So I've just pored over his bank statements he had to give me for the refinance, and poked him a few times about details I couldn't glean from those. Within half an hour of doing it I got him a better mobile plan that halved his bill, and tweaked things a bit to get a finite bill he has paid off sooner. Go me!

Blue.

[ecomama]

Yes! GO YOU! LOL!!!

That's freaking awesome you did that! Freed up some money for the constant phone plans AND getting out of a loan sooner. Awesome Blue. So proud of you! lol.

Lucky that guy looks like Aragorn hey? hahaha. Mine looks more like a mixture of all those U.S. crooners with Italian descent like Tony Bennett, Dean Martin, Frank Sinatra - got one of THOSE smiles. Nice.

Ppl just don't look at things like that eg loans and getting out of them sooner.

I have a mortgage and one loan. That's the interest free Solar Panels loan lol, laughing because I'm a "non-loan" person. If I can't afford it, I won't buy it. I had the $ for the panels BUT thought why not have an Interest free loan over 3y... kept the money against the mortgage longer.

I worked out today that if I DO pay the extra $390 / month, just once a month, then it cuts back my mortgage by around 3 months every year.
Anyway I'm only doing it this year and looking at refinancing, then I'll only have 1y left of Panels loan. AND a Credit Card I can reduce limit on. Has a low limit anyway (I consider my Credit Card a loan also).

Thinking about ppl that would do anything to save money on Interest lol, I knew a woman who changed her Credit Card all the time to ones offering Interest Free periods. I think I'd lose my mind doing that but she LOVED it lol.

Yeah all my kids are good savers, really. P.son was encouraging them all the to have their money in savings work harder for them. P.son saved half HIS money against my mortgage, so for a while there I had an extra $3k of his helping out. He was hiding it from his GF I think!

Yvette's been offered a Traineeship at work and if her School can sign off on it then she's going to apply for it. Then she gets a full day off school to attend work. Gets paid for the work and already she's working around 24 hours this weekend ie Fri night, Sat & Sun. But goes to Part Time conditions and wages on the Traineeship.

I'm fine with whatever she does. The fact she's doing ANYTHING is amazing, so I'm happy. I can see her doing this for about 10 years till she gets more "grounded" in the world. She wants to study, so that's on her radar too.

EMxxxx

[Clues_Of_Blue]

You're a great cheerleader, EM. 🙂

Thanks. Not a loan, but a bill he's got on a payment plan. Knocking that on the head will free up about 11% of his income, so I'm pushing to get it gone.

No, not like Aragorn, he doesn't look like an Elf. My partner's got an Elf aesthetic. Think tall and slender, elegant and long-haired. Ah, the crooners. Of course I think of Vic from Deep Space Nine (your partner should know who I mean if he knows his Star Trek as well as I do). That begs the question... can he sing? 😉

You're right, they don't seem to. I only have my mortgage and a credit card with a low limit, maybe will have a solar loan upcoming, we'll see. Have thought about doing what the lady you mentioned has with credit cards. Too much effort. As for loans, I wouldn't borrow for anything that doesn't bring an advantage, like a home or solar. Wouldn't borrow for more than the most basic, reliable car (gotta get to work somehow) and for the most part haven't had to. Borrowing for luxuries is a no-no. I see your point about how you did things with the solar. And if the money is there in your offset, you are still able to pay the loan if you hit hard times.

That's a significant chunk of time cut off you loan doing it that way. Great work.

Glad your kids are good savers. My parents can't boast the same, my siblings are hopeless, they don't listen to me despite seeing me doing better than them on no more money. Can't force it, I guess. Nice that prodigal son's savings are helping you. Why do you suppose he would hide it from his girlfriend, though? Not the best sign for them.

Oh, nice. Fingers crossed for Yvette, hope all goes smoothly for her. She's well ahead of the game for her age. I'm sure she'll tackle study when she's ready. She may yet surprise you with the when.

Blue.

[ecomama]

Hey Blue!

Yes I took the solar loan ONLY because it was interest free, otherwise I wouldn't do it.

Alexa's hinting (alot lol) for me to get a new car, but if it ain't broke, don't fix it.
She agrees it's been a great car, and still is, so nope. I told her AFTER the cabin's built & had tenants in it for about 2y maybe THEN I'll look at it. Unless I have to beforehand ofcourse.

I think what you & I DO do is a very difficult mindset to get into for many other ppl for varying reasons.
But if they just realised HOW much of a difference they could make instead of existing on borrowed money and "the now"... the trait of "delayed gratification" is required, probably for anything worthwhile tbh.

Son bought a car! Lol. Inspection report for that $7k car whittled down to $5.5K came back with an AWFUL Car Report! The inspection guy said he wouldn't let us drive it out of the city without 4 brand new tyres OR a new muffler OR a myriad of other work to be done first. It was UNSAFE to drive. The computer system had been disabled so he couldn't see any work done on the motor - suspected foul play lol.
$250 WELL SPENT!
Son would've been in over his head if he'd bought it.

He bought his friend's VW Golf for $2k yesterday lol!
The last car this friend sold to us had been a beauty.
This friend is addicted to buying cars lol, about 1 per year.

Son is SO HAPPY! No need to borrow from me either which is awesome.

Yesterday I had to buy my first TV in about 30 years! LOL! We have 3 TVs in the house but all the kids bought them. My CCTV TV broke in an electrical storm but the $600 excess wasn't worth it. Alexa found a $350 TV, I bought it yesterday. I ALWAYS put an extra Warranty on stuff I buy - I got 2y extra for $50.
Brought it home, hooked it up ready for the CCTV guy to move one CCTV to a better place, repair one out front and wire it all.

Yes Blue you can lead a horse to water... pity your siblings don't listen. My brother is SO far better off financially, no kids, disabilities, working c6 days per week. He semi-retires a while lol then starts up again.

OH YES similar to Vic lol! But far better looking! lol. Much stronger physique. BF picked me up & carried me home one night in Switzerland when I was too tired to walk lol. His strides are 2 of mine! We'd travelled across Canada the night before to Europe and landed in Switzerland, I was beat. I'm like a little dolly to those big guys! LOL!

Happy Valentine's Day Blue and all!

Love EM

[Clues_Of_Blue]

Hey EM,

Good call. I've backed right off from looking at solar, the refinance is dragging on and on, gotta sort that first. Ugh.

Good grief, why does she think you need a new car? I wouldn't be making any unnecessary changes, you have enough on your plate, that's just more money and stress you could do without.

In the circles I travel in, everyone is living hand-to-mouth. I honestly don't think they're capable of thinking more than a week ahead. It's not like I haven't been there - I dug myself a hole that way, & had to climb back out - by doing all the things I'm doing now. Definitely had to teach myself about delayed gratification, and getting my jollies from seeing my finances in the black instead of the red.

That car sounds like quite the lemon. Glad your son's friend had something good available, for so much less. I wonder about running costs, though. Here at least, VW parts would be expensive to source as they're not that common. Maybe different there? Or worthwhile for the better quality of the car? Excellent he didn't have to borrow more money.

Have you got surge protection for the new telly? A sound investment, if you don't, those storms can be a menace. Glad Alexa was able to help you keep your costs down. 🙂

Actually, my sister listened a bit. She let me at least do a preliminary financial plan for her (she has very limited patience for paperwork so didn't give me long for it), and has quit it with the Cash Converters loans, is on top of her bills (paying regular amounts into the bigger ones to stay ahead), and even has some spare cash to take me to lunch occasionally. She could be doing even better, but it's a good start. My brother, his money disappears so fast you can't see it for dust. Frustrating. Glad you have a sibling who can manage money!

Oh, you know who Vic is, there's hope for you yet! 😛 Sounds like a romantic escapade. My partner wouldn't have a prayer of lifting me, he's quite underweight and a tad fragile, and I'm not especially light (tallish and fairly muscular, not too tubby - though I do like my desserts). I can picture him trying to pick me up and just toppling over backwards, haha.

Sending some shortbread biscuits your way, it's the traditional Valentine's treat I make (partner loves them).

It looks like they've processed my concession request since getting my Health Care Card, finally - almost $80 off my water bill. That's quite significant, so I'm really happy about it. A small, belated win, but a win nonetheless!

Blue.

[ecomama]

OH YEAH! YES WE'LL TAKE IT! Lol omg finally! So does that mean it's $80 per QUARTER?
HOPE SO!

Sweet Blue, no tea towel flicking but I had to Google Vic LOL! Sci-Fi translated to me means "sleep time" lol. No hope lol 😂.

Yes refinancing CAN drag on. It's tricky!
In good time with solar etc.

Good grief all right lol! I KNOW!!! I feel like saying "talk to Aunty Blue for the billion reasons why I WON'T get another car!" like what IS that thinking?
But I just say milder things like "Why would I do that when my car is awesome still?" and I'm not doing that until the cabin's built and more money is rolling in... (unless I have to ofcourse).

I feel like pulling on her nose right now tbh.
She still hasn't paid the $5k back!
I hint and she says oh yeah, I need to do that OR I'll do that after I get off the phone.
But I know the dog and the kids and work's pressing... still it needs to happen asap now.
That's the Insurance money to repair my roof lol!

NO ONE will force me to spend money on things I DON'T WANT to spend money on Blue, rest assured it's a BIG NUP!

Never heard of surge protection? Can you please explain?
Oh yeah we have plenty of storms here.
Rained again today! Unseasonal the amount of rain we've had.

Yeah we know about the Euro car repair costs, yuck. A friend of Alexa's dad imports Euro car parts so if we're stuck, we're gonna ask him. Son is happy. It's a beaut car. Worth so much more than $2k for sure!
Needs new tyres in the next 6 months, that's the rub!

I am SO sorry ppl around you are living hand to mouth!
If your sis can gain ANY benefit from your advice, it's a PLUS!

Omg Blue a few things; Uncle menaced around and cut his way OUT of our house today! He couldn't unlock the screen omg, so there's a NEW handle / lock in there now and it's HARD to open grr.
He paid for it himself. The keys were RIGHT THERE. Still.
More money to be spent on 2 more louvres, the wall parts and the finish on the outside of the room. Plus the CCTVs - long story.

BUT I got paid my first FT wage today and I nearly fell over, shocked!
My Union fees PLUS that extra Super is already taken out, I'm blown away in a GOOD way.

Today I came home and our drier is busted lol, 15y old, did ok.
I need to buy one THIS week. The kid's work uniforms need to be washed every day.

But if I figure well...I CAN put the extra $390 in my mortgage. I'm gonna do it anyway.
Cop the fallout lol.
I HAVE to get my mortgage down, I'm sick to death of it lol.

Love EM