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  1. #11
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    Apr 2009
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    Quote Originally Posted by donna View Post
    Erosion of the middle class - as they end up paying for everything as sitting ducks, while the super rich continue to get a free ride. I suppose RBNZ are atleast saying the right stuff - even if it's just empty noise. What really can come of it?

    cheers,

    Donna
    What free ride is that?

  2. #12
    Join Date
    Apr 2005
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    2,944

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    Quote Originally Posted by DaveW View Post
    What free ride is that?
    Without thinking it through too deeply...

    I guess there are a couple of justifications for talking a profit.

    One is losing the use of a thing while someone else uses it.

    The other is taking a risk.

    And finally as a reward for supplying effort or a unique talent.

    I can see how the people in the financial world get profit by pretending to do all of these ..but not actuality doing any of them.
    Last edited by McDuck; 07-06-2018 at 08:16 PM.

  3. #13
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,489

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    Quote Originally Posted by Wayne View Post
    Unfortunately you still have bills to pay . . .
    A common refrain. The answer is simple.

    Akin to your general response: don't incur those bills if you don't want to have to pay them.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  4. #14
    Join Date
    Feb 2018
    Posts
    127

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    It's all about income vs expenditure.

    When I graduated from university and started my civil engineering career, I was earning $40k a year in 2004, which was a decent wage at the time.

    For the first few years I was living on a $250/wk budget. This included rent and food, and weekly expenses. I was driving a $3000 car which I overspent at the time.

    If someone is earning $1mil, and spends $1mil, this person will be broke.

    Unfortunately too many in society are in this category or worse.

  5. #15
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,489

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    The expenses expand to consume the money available, seems to be the motto.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  6. #16
    Join Date
    Jun 2004
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    10,635

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    Quote Originally Posted by Perry View Post
    Akin to your general response: don't incur those bills if you don't want to have to pay them.
    It's a mentality thing - I earn lots so I deserve lots more than the others.
    I read an article a while back discussing this - 'rich' people get more trapped because their expectations get higher.
    Poor people just want to survive.
    Apparently the stress on the rich is huge with worrying how they are going to pay for the illusion.

  7. #17
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    Jun 2004
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    10,635

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    Quote Originally Posted by GLin View Post
    If someone is earning $1mil, and spends $1mil, this person will be broke.

    Unfortunately too many in society are in this category or worse.
    It's when they earn $1mil and spend $1.01mil that they get caught.
    spending < income = OK
    spending > income = trouble

  8. #18
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    Sep 2004
    Location
    Hastings
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    Ahh, that famous and oft-quoted recipe for happiness in the sage words of Mr Micawber in Charles Dickens' David Copperfield:
    "Annual income twenty pounds; annual expenditure nineteen pounds nineteen shillings and sixpence; result: happiness.

    Annual income twenty pounds; annual expenditure twenty pounds and sixpence; result: misery."
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  9. #19
    Join Date
    Jun 2004
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    10,635

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    Quote Originally Posted by Perry View Post
    Ahh, that famous and oft-quoted recipe for happiness in the sage words of Mr Micawber in Charles Dickens' David Copperfield:
    Yip - still works.
    They knew a thing or two about poverty and personal responsibility back then.

  10. #20
    Join Date
    Mar 2009
    Posts
    157

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    When I was an apprentice I started on $5.50 an hour.
    I never desired any nice things. I was happy with a crappy car as long as it was reliable. Old clothes - no worries, they fit, they're comfy.
    Cell phones weren't a thing then, but when they did become a thing I bought a simple one not the most expensive one you could get.
    Most of my peers through that period made more money than me but many of them lived week to week because they spent it all. I lived comfortably. I never took a loan for anything that didn't make money.
    A few years after I got trade qualified I jagged a job in the mining industry. I worked with guys in NZ who were on $100-$150K and were still poor because they just spent it all. Some of them were in debt with no assets.
    I still stuck to the old "only borrow if it's for investment" rule.
    I moved to Australia in 2008 and worked in the mines there, most the guys on my crew were making $180K plus benefits and super, about a $200K AUD package and believe it or not there were quite a few who were living week to week. wtf. One bloke just knocked his missus up time and time again until he had 6 kids under 6 years old and couldn't afford his mortgage, car and personal loan payments.
    I stuck to my rules in Australia too.
    I retired at 37.
    Many of the guys I've worked with who earned more than me at the time and had more potential than me are still making the same poor choices. You can be poor no matter how much you earn if you're irresponsible or stupid, or if you just make poor choices that bake a certain amount of financial burden into your future.


 

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