Thread: Mortgage Repayments

It's fine to give examples of people who went from bankrupt to millionaire, and other self-starters. Good on them. But the problem is that not everyone has the capability to do that, any more than we all have the capability to be top-flight sportsmen or artists. So, no point looking down on others for not using abilities they don't have.

The fact is that each of us have an earning ability, limited by talent, ambition and to some extent luck. The simple answer is whatever your earning ability, live inside it.

While it's a cliche, it really is true that money doesn't buy happiness. Just plan whatever finances you have, and accept that you may not be able to live the life you see others enjoying. Or, if you try, you'll come unstuck.

Problem is I think quite a few people don't have a basic grasp of maths, or consider the long-term and are vaguely hoping that the a combination of government benevloence, super, inheritance and luck will see them right in retirement.

What the government could do is fund some basic financial education classes. I'd prefer that to any bailouts or other rescue packages. Friend told me the other day they hadn't realised how little principal they'd repaid from their mortgage after the first year, and they signed the damn thing!

Personally interest rate rises don't bother me, we bought well within our means. There could be a Rangie Sport on our driveway, but there's not, there's a smaller mortgage with the bank instead.

Originally Posted by Numpty's Missus

Hmmm...well buckets, rubber and lots of soapy water come to mind and Diana will know where I am going

High, Hot and Hell-Ov-a-Lot I always say!

Diana

Originally Posted by stevo68

Ok, just so as no confusion I am specifically responding to what you have written. Look, I think the comment about CEO's was very generalised and correct me if I am wrong, based on commentary that is written in popular press without having any actual basis for forming an opinion, ie have you ever run a business, a multi national business, 100-1000++ staff, worked high up in corporate? Unless you have, of course you can comment, but you don't really know what it is like to be in a position of that nature, and lets not forget that shareholders play a part in determining salaries and bonuses etc.

Regards

Stevo

I remain convinced that (most) people have the capacity to understand/appreciate/visualise things they have not personally experienced, but I will have to leave that point for the moment because I want to focus on something else.

Originally Posted by stevo68

Whats not to say that the likes of Trujillo is getting paid his worth when you consider he is at the helm of a billion dollar business employing thousands and thousands of staff. Could you do it? I couldnt. I will also agree that there are then people who are not paid there worth, but is that not a choice? Also how do you justify your truth worth, can you as an individual do it or is it by what the market dictates, it is generally the latter. Ask anyone "Should I be paid more"...are they going to say no?

Regards

Stevo

I'm not sure if you're suggesting that it is the stress and the responsibility of the position that make high flying CEOs worth so much money. If not, then the following comments are in response to what others have suggested rather than a direct response to your post.

What is the worst thing that could happen to people running a small business who find that cheap imports from China and other factors mean that they have to make a decision whether to get out before they go broke, diversify, soldier on or whatever?
Any money that is lost by the business is their money.
If they get it wrong, they might finish up losing the business they have spent their whole life building up, their life savings, their house and their car.
They might have to move to where housing or rent is more affordable which means they would have to disrupt their kids' education by moving them to another school.
They might find it difficult after that to borrow money to establish another business or to invest in housing.

What is the worst thing that could happen to some of these CEO's?
Most of the money they lose comes out of the pockets of employees and shareholders.
They might get sacked or whatever the term is for getting rid of a CEO.
In that case they often seem to have some sort of a contract that gives them a golden handshake as a reward for their incompetence.
With the salary packages that some of them have enjoyed, the few millions they have left to survive on will, if properly invested, probably only give them a million or so to survive on each year.
Even if their credibility is so damaged that they are never able to work again, they will still enjoy a lifestyle most people can only dream about.

Which of those two has the most to lose? Which one is under the most stress? Which one feels the greatest sense of responsibility?

I don't accept that just because the company is bigger, the head of that company will suffer greater loss if he/she gets it wrong.

Before you ask; no I have not been in the position of trying to keep a small business profitable myself, but I have been close enough to someone who was to see the burden it places on them.

I know that CEO salaries are determined by such things as market forces and I'm sure they will continue to be paid outrageous sums of money, but I am not convinced that they have any greater stress or responsibility than a lot of small business people or even some employees.

I still think they are overpaid.

Originally Posted by Numpty's Missus

Hmmm...well buckets, rubber and lots of soapy water come to mind and Diana will know where I am going

Originally Posted by Lotz-A-Landies

High, Hot and Hell-Ov-a-Lot I always say!

Diana

I was right!
There are some things it is better not to know!

Originally Posted by Numpty's Missus

Hmmm...well buckets, rubber and lots of soapy water come to mind and Diana will know where I am going

With talk like that you girls could set up a website.................
Regards,
Tote

Originally Posted by Tote

With talk like that you girls could set up a website.................
Regards,
Tote

Don't have to they are already out there - although I do have a friend who manages a B & D Parlour.

I can give you the address (and maybe a discount) if you want?

Diana

P.S. At one point in my career, working for a special project of the Dept of Health, I got to teach some of the mistresses how to do their "art" in the correct sterile way. The place would make your hair stand on end! ENUF SAID!

Originally Posted by Lotz-A-Landies

Don't have to they are already out there - although I do have a friend who manages a B & D Parlour.

I can give you the address (and maybe a discount) if you want?

Diana

P.S. At one point in my career, working for a special project of the Dept of Health, I got to teach some of the mistresses how to do their "art" in the correct sterile way. The place would make your hair stand on end! ENUF SAID!

I don't imagine it was the hair they wanted standing on end .
Ahem.

jeaz finally caught up with the end of the thread....

Well thanks for scaring me. We just bought our first house last week,

Buying the house:

we saved, Our parents helped us out and we bought a fair way out so that we could actually afford some land.

We borrowed based on my salary and my fiance on casual basis to give us some leeway if anything went wrong.

We've done the maths and have brrowed responsibly with some equity in the purchase.

I don't want a handout or would ever assume I should get one.

What a constructive and interesting thread. Going to bed as this overworked underpaid proffessional has work in the morning.