Sorry its been so long between posts, but now if I would like to write one, I have to wait until between midnight and 6am (thanks DaisyRoo & Mrs NutShell :-) ), as I can't get miss diaryofasham off the ipad. So I'm trying to write this on my phone and support my lovely wife and her IBOT, so let's see how that works.
Have you ever wondered how the rich get richer, and we just seem to get by every week, living pay to pay. Well part of it boils down to this: us everyday consumers find things we love and just have to have. Maybe someone famous has it, or it's just the thing to be seen with at the moment.
Take for example soft drink. Everyone likes soft drink, and there are only a few big companies out there producing the stuff. We pay a premium for a small bottle and millions of them are sold around the world daily; some people just have to have it every day.
Now if the profit from a bottle was only $1.00 and they could sell a million bottles a day world wide, that's a pretty good income! Now let's say the profit in one bottle was only 10 cents over a year. This would still equate to $35million profit. If you and I just thought about what we really need each day and changed our thinking it's not going to make a huge difference to their pocket but could do for us. Okay it's not going to make us millions, but it sure is better off in our bank account than theirs, they already have enough.
We consumers make the world go round, well that's what we get told! In fact it would take 4562 people on $80k pa to turn over as much income before tax as what they would make in profit. Now dont get me wrong I love to support SMALL business selling the stuff: I just dont like the idea that people have to make billions of dollars and rip you and I off in the process. Let's be wise with our money, seek professional advice and not just the opinion of family & friends; they often mean well but can also be bias with their information.
Showing posts with label Jess. Show all posts
Showing posts with label Jess. Show all posts
Monday, August 22, 2011
Thursday, June 16, 2011
A Necessary Evil
Well nearly everyone wants a new car but who looks at the after effect of buying one. Who looks at the after effect of buying anything? Not my wife that's for sure, the only thing she thinks about is 'oh crap what is Tim going to say'. No really she is gorgeous she just loves to buy presents :-)
I now work in the motor industry and would make the worst car salesman ever! I see people every day making awful financial decision without them even realizing it. Now I'm by no way having a go at anyone as when I was a young lad did exactly the same thing myself. However I have studied into the temptation of buying that new car and what the costs really are and was hoping to share with anyone willing to listen,
Here is my first example:
I have a 2001 Nissan patrol 3ltr turbo diesel. I bought it nearly 5 years ago for $30,000 a very good price through my uncle at the current car dealership im working in.
Now at the time of purchase I was using this vehicle as a work car for my financial planning duties with BT Financial Group traveling thousands of km every month around the top end of Australia. Now my repayments on the car are about $500 a month so over 12 months my repayments alone cost me $6,000 annually and over 5 years that's $30,000. Now when I took out a loan for the car I took what they call a Balloon payment at the end to keep my payments down and my intentions were to trade it in on another vehicle every 5 years. So my balloon payment is $12,000 at the end of the contract. Now the trade in value of this car is going to go close to that and I may need to pay an extra 1 or 2 thousand difference, however my point is after this time we still own nothing! Just paid out over $30,000 and really don't have anything physical to show for it.
A mate of mine at work bought a RallyArt Lancer last year against my advice and he will pay in excess of $62,000 for it after the 5 years, and will have a car lucky to be worth $15,000. I had explained this to him before he purchased it but he was stuck in the emotion of the new car experience and regrets it now. ''Man, I should have listened to you' were his exact words
Cars really are a money pit but keep reading and I'll explain the necessary evil of a car. I'll discuss my experience in second hand cars and discuss cars that fit your lifestyle. Let me know if you have any questions.
I now work in the motor industry and would make the worst car salesman ever! I see people every day making awful financial decision without them even realizing it. Now I'm by no way having a go at anyone as when I was a young lad did exactly the same thing myself. However I have studied into the temptation of buying that new car and what the costs really are and was hoping to share with anyone willing to listen,
Here is my first example:
I have a 2001 Nissan patrol 3ltr turbo diesel. I bought it nearly 5 years ago for $30,000 a very good price through my uncle at the current car dealership im working in.
Now at the time of purchase I was using this vehicle as a work car for my financial planning duties with BT Financial Group traveling thousands of km every month around the top end of Australia. Now my repayments on the car are about $500 a month so over 12 months my repayments alone cost me $6,000 annually and over 5 years that's $30,000. Now when I took out a loan for the car I took what they call a Balloon payment at the end to keep my payments down and my intentions were to trade it in on another vehicle every 5 years. So my balloon payment is $12,000 at the end of the contract. Now the trade in value of this car is going to go close to that and I may need to pay an extra 1 or 2 thousand difference, however my point is after this time we still own nothing! Just paid out over $30,000 and really don't have anything physical to show for it.
A mate of mine at work bought a RallyArt Lancer last year against my advice and he will pay in excess of $62,000 for it after the 5 years, and will have a car lucky to be worth $15,000. I had explained this to him before he purchased it but he was stuck in the emotion of the new car experience and regrets it now. ''Man, I should have listened to you' were his exact words
Cars really are a money pit but keep reading and I'll explain the necessary evil of a car. I'll discuss my experience in second hand cars and discuss cars that fit your lifestyle. Let me know if you have any questions.
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