Risk taking

[martinw-48]

I'm not a gambler.
I don't buy Lotto tickets.
Cham recently said that those who own their home could take out a line of credit to capatilise on the current market.
As someone who has failed at everything they've attempted except for achieving home ownership I feel it would be stupid to risk my one success to achieve something that doesn't drive me anyway, gaining money.
More money would be great but I have more money now I'm not paying for the roof over my head.
My girlfriend spends $100 a fortnight on Lotto.
I know she's had two big wins totalling fifteen thousand but in the ten years I've known her that's cost twenty six thousand.
In my mind I'm eleven thousand in front

[lyhargr_0]

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@brerrabbit585 wrote:

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@lyhargr_0 wrote:

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@*kazumi* wrote:

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@martinw-48 wrote:
Brer, I've been getting by on a low income since '93.
My house is worth very little.
Purchase price was twenty thousand.

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Where are you?  I am in not particularly expensive area, but just before christmas a fibro house in "original" 1940s condition on small block sold for over $600 000.  Houses in good condition and in brick are over $1 000 000.  I am sure your house is worth lot more than what you paid, BUT that does not mean you should be borrowing against it to gamble.  There is a high probability you would lose. 

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Houses where Martin lives are quite cheap to buy, I know, 'cause I also live there.   The house you describe would be lucky to sell for 100k here

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I'm also in a small country town.  Houses get snapped up really fast here and are usually bought by retirees or people who work from home because it's so much cheaper here than in the city.  The neighbours paid $150,000 about 18 months ago for a house that I think is a 50s or 60s Housing Commision fibro home on half an acre.

In 2002 I paid $130K for a 4 bedroom house on 5 acres in the Otways but the people who sold it to me only paid 30K for it a couple of years previously.  Some places are slow to catch up with increasing prices but prices can really jump when they do catch up.

Life is also a lot cheaper here - only septic systems and water is cheap.  My dearest water bill in 11 years was $200 but I didn't realise how much I was using on the fruit trees when I first planted them.  When I realised I cut way back and all my summer bills are way below $100.  

As to how much does one need to be happy, a lot of rich people aren't happy and they often have more relationship problems because they're never satisfied.  The more people get, the more they want.  They want things because they'll think things will make them happy, but when they get them they find they're not the answer so they want something else.  "Things" are not the answer to being happy!  If people are always wanting more it's just an indication of how empty their lives are.

If you read Rich Dad, Poor Dad the author mentions how his dad was on a good wage but died in debt and with practically nothing, and he says how many people are the same, yet those with less often have no debt because they've been forced to learn to live within their means.  

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Totally  agree, we are more than happy in our little cottage on our 1/4 block in town. We have everything we want ( not need ) and dont desire to accumulate heaps of $$$.

House prices dont rise dramatically here like they do  in the larger cities which means that young couples can afford to buy a house here and not have a very high mortgage. 

Whats the point in having a house worth zillions when every spare cent you earn in going to pay the mortgage? Not the sort I life I want to live.

[brerrabbit585]

My ex liked to live the high life (not things but 'having fun').  He wouldn't tell me before we got married, no matter how many times I asked, but afterwards he told me his philosophy was to use other people's money, which basically translates to living on credit (but he would never put it that way).  He paid a lot more for everything because of the interest but he argued it was still better to have things now than to go without them.  He wasn't interested in owning a house.  I don't know whether he changed on that later but I doubt it.  He was on a very good wage but couldn't go on a holiday without booking it up on his Diner's Card (a mere visa or mastercard wasn't good enough for him, not because it had extra benefits but because he was a snob). 

What really makes me laugh is that he always thought that as the firstborn son he should inherit EVERYTHING of his parents and his two sisters get nothing, but he wouldn't have got a cent and his sisters would have got it all because he died before his mother, and less than a month after his father died. And yes, his parents would have had something to pass on.

[lyhargr_0]

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@freddie*rooster wrote:

I am my Father's daughter if you can't pay cash for what you need/want you

go without until you can pay cash for it. We own our place bought it for a good

price now we are currently updating by using $$ we earn't in interest on our

investments. There is no way we would compromise our security or take risks

with our home.

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Very few people can save enough to pay cash for their house, especially if they are also paying rent while they are trying to save. so you did very well

[freddie*rooster]

I have never seen a headstone in a cemetery with the headstone

quotation "Here lies the richest person in the cemetery"

[icyfroth]

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@brerrabbit585 wrote:
My ex liked to live the high life (not things but 'having fun').  He wouldn't tell me before we got married, no matter how many times I asked, but afterwards he told me his philosophy was to use other people's money, which basically translates to living on credit (but he would never put it that way).  He paid a lot more for everything because of the interest but he argued it was still better to have things now than to go without them.  He wasn't interested in owning a house.  I don't know whether he changed on that later but I doubt it.  He was on a very good wage but couldn't go on a holiday without booking it up on his Diner's Card (a mere visa or mastercard wasn't good enough for him, not because it had extra benefits but because he was a snob). 

What really makes me laugh is that he always thought that as the firstborn son he should inherit EVERYTHING of his parents and his two sisters get nothing, but he wouldn't have got a cent and his sisters would have got it all because he died before his mother, and less than a month after his father died. And yes, his parents would have had something to pass on.

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Karma gets you like that!

[rogevibe]

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@lyhargr_0 wrote:

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@brerrabbit585 wrote:

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@lyhargr_0 wrote:

---

@*kazumi* wrote:

---

@martinw-48 wrote:
Brer, I've been getting by on a low income since '93.
My house is worth very little.
Purchase price was twenty thousand.

---

Where are you?  I am in not particularly expensive area, but just before christmas a fibro house in "original" 1940s condition on small block sold for over $600 000.  Houses in good condition and in brick are over $1 000 000.  I am sure your house is worth lot more than what you paid, BUT that does not mean you should be borrowing against it to gamble.  There is a high probability you would lose. 

---

Houses where Martin lives are quite cheap to buy, I know, 'cause I also live there.   The house you describe would be lucky to sell for 100k here

---

I'm also in a small country town.  Houses get snapped up really fast here and are usually bought by retirees or people who work from home because it's so much cheaper here than in the city.  The neighbours paid $150,000 about 18 months ago for a house that I think is a 50s or 60s Housing Commision fibro home on half an acre.

In 2002 I paid $130K for a 4 bedroom house on 5 acres in the Otways but the people who sold it to me only paid 30K for it a couple of years previously.  Some places are slow to catch up with increasing prices but prices can really jump when they do catch up.

Life is also a lot cheaper here - only septic systems and water is cheap.  My dearest water bill in 11 years was $200 but I didn't realise how much I was using on the fruit trees when I first planted them.  When I realised I cut way back and all my summer bills are way below $100.  

As to how much does one need to be happy, a lot of rich people aren't happy and they often have more relationship problems because they're never satisfied.  The more people get, the more they want.  They want things because they'll think things will make them happy, but when they get them they find they're not the answer so they want something else.  "Things" are not the answer to being happy!  If people are always wanting more it's just an indication of how empty their lives are.

If you read Rich Dad, Poor Dad the author mentions how his dad was on a good wage but died in debt and with practically nothing, and he says how many people are the same, yet those with less often have no debt because they've been forced to learn to live within their means.  

---

Totally  agree, we are more than happy in our little cottage on our 1/4 block in town. We have everything we want ( not need ) and dont desire to accumulate heaps of $$$.

House prices dont rise dramatically here like they do  in the larger cities which means that young couples can afford to buy a house here and not have a very high mortgage. 

Whats the point in having a house worth zillions when every spare cent you earn in going to pay the mortgage? Not the sort I life I want to live.

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Status and public image is a major motivator. In some circles such must be maintained in order to garner continued critical support 

Is interesting actually that in the end regardless of household income the proportion paid for major ongoing acquisitions seem to remain much the same ratios relative to that income - the power of social conditioning and acquired sub-conscious desires in the ordered society 

[brerrabbit585]

Getting back to gambling and tattslotto, don't they say most people who've ever won a million or so have nothing to show for it within a few years? I remember watching a tv program about it several years ago (when a million was worth a lot more than now) and lots of people went crazy buying boats and cars and other things, even giving some away, but they weren't wise with it and couldn't handle it so they were soon back to where they started or even worse off.

To whoever said spending a little bit on a ticket makes you feel better because it gives hope, I disagree with that. If they need to buy one in order to feel hope, they're probably buying it because they're desperate to win, and that sort of attitude isn't going to make them feel positive at all. If they put that money in the bank (or in a jar) and watched how fast it grew they'd get much more satisfaction than having false hope in something.

[freddie*rooster]

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@lyhargr_0 wrote:

---

@freddie*rooster wrote:

I am my Father's daughter if you can't pay cash for what you need/want you

go without until you can pay cash for it. We own our place bought it for a good

price now we are currently updating by using $$ we earn't in interest on our

investments. There is no way we would compromise our security or take risks

with our home.

---

Very few people can save enough to pay cash for their house, especially if they are also paying rent while they are trying to save. so you did very well

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My Father built our first home whilst he and my pregnant Mum lived in a tent on the block

of ground. He worked his day job came home and back to building their home. By the time

Mum was due to have their first child the home was at liveable stage. Back in those days

our parents were happy to start at the bottom and work their way up. Nowdays the thinking

seems to be the big flash car the flash house and holidays and therein lies the problem. I'm 

happy to say my son is the same as me and his pop he has a succesful business a beautiful

home on acres and all the luxury items. He will not commit to buying an investment property

until he has the cash to pay for it outright. 

[lyhargr_0]

I think my home is beautiful, it's not it not posh/classy or on acres but it's my home and I love it. Im not into material things ( houses or other wise ), never have been

[rogevibe]

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@lyhargr_0 wrote:

I think my home is beautiful, it's not it not posh/classy or on acres but it's my home and I love it. Im not into material things ( houses or other wise ), never have been

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The human condition seems to respond positively to contrasts - day -night , sunshine - clouds , four seasons , new years cars , cricket season , footy season - ( conversely crimminal punishment is characterised by sameness of environment and extreme routine of living life) so some feeling of defined changes in the form of incremental material improvements I think is a healthy pursuit.