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Support Thread on Taking back financial control? (Barefoot Investor inspired)


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#51 Chicken Pie

Posted 27 April 2017 - 04:03 PM

I think it might, might do it anyway and then she can use commbank less I think

#52 IamOzgirl

Posted 27 April 2017 - 04:51 PM

View Posthappygoluckyinoz, on 27 April 2017 - 10:41 AM, said:

Started on the insurances yesterday, got a refund of $278 on our home insurance by upping the excess and taking off personal items cover. Brought the premium down from $1,198 a year to $845.

Phoned the health insurance, removing extras saves us $780 a year. DH wants to get rid of it completely, I'm still nervous about doing that! Saves us $3,300 a year, but it's committing to having baby number 2 public and removing that safety net of private hospital.....

Hi,

Can you explain what his thoughts on insurance are - particularly home and contents?? I haven't read his books but religious read his blog and i thought he was onboard from having home and contents insurance but you have said you have reduced the personal affects?

We got home and contents insurances for the first time (we live in an apartment) and added my ring - we would you not add it? I woudl be devo if i lost !! and it wouldn't be high in priorities to replace it either... (esp if we go down ivf route...)

#53 happygoluckyinoz

Posted 27 April 2017 - 05:04 PM

View PostOzgirlKK, on 27 April 2017 - 04:51 PM, said:

Hi,

Can you explain what his thoughts on insurance are - particularly home and contents?? I haven't read his books but religious read his blog and i thought he was onboard from having home and contents insurance but you have said you have reduced the personal affects?

We got home and contents insurances for the first time (we live in an apartment) and added my ring - we would you not add it? I woudl be devo if i lost !! and it wouldn't be high in priorities to replace it either... (esp if we go down ivf route...)

So when I say reduced personal effects, I meant the ones insured outside the home. I did have cover for items like my ring and husbands expensive watch and also a $5k unspecified amount with $1k per item limit. I took those off (although kept the ring and watch specified within the home - so in the case of a breakin etc they would be covered) and increased my building excess to $750 and contents to $500.

His reasoning with personal effects outside the home is that if you lost your iphone/ipad etc it's not the end of the world, and with the accounts you have set up you can afford to replace it. Which thinking about how much extra I have paid in insurance over the years to cover these items and never claimed - I could have bought them 5x over already.

I would be devastated if I lost my engagement ring - but DH pointed out that insurance wouldn't bring back the ring I would have lost (and it's sentimental value) it would only replace it with another similar one.

#54 IamOzgirl

Posted 27 April 2017 - 05:31 PM

Ah okay - yeah we only have the ring covered outside the home - i will never leave it home so didn't makes sense to cover it in the home!!

We def don't have a misc amount - only tangible stuff!

The hardest was finding an insurer who lets us insurer a small amount of stuff (some had a min level like $50k and we def don't own that much stuff!)

#55 Teds

Posted 27 April 2017 - 05:32 PM

Interested in how people have started to invest. I have some of my own money and would like to invest, but is only a couple of grand... My dh thinks shares and the like are a mysterious evil that he doesnt want to go near... So I want to have a crack at it myself and show him how I am doing, and persuade him to put some of the family money in at some point. But I don't know where to start!  I saw the post with the link to tutorials,which I can look through when I get a chance, interested in where others here started.

#56 4keykne

Posted 27 April 2017 - 10:50 PM

In regards to investing Teds we started off many years ago with a managed share fund as I was not comfortable with choosing my own shares with little experience. The options he discusses in his book are good AFI (Australian Foundation investments) there is another company called Argo that do the same. Basically they buy shares in a number of blue chip companies as a collective, you chose how many shares you want of the collective. Dividends are then paid to you each 6 months. We purchased Argo their dividends are fully franked that means your tax liability is reduced. My understanding of the whole system is not deep but if you go to the ASX website they have tutorials which will explain franking credits and all other "jargon" associated with the share market.

For us we only invest what we are willing to loose overall we are ahead but having the attitude of only investing money I have rather than borrowing money to do so helps me sleep at night. I have friends who have marginal loans and the thought of it makes me feel ill, if the stocks plunged I would not manage those emotions well!

The chapters in the book in regards to investment properties were an eye opener. We "accidentally" had one for many years, we purchased the house and then needed to move interstate, we kept the house because at the time we did not have the time or energy to deal with the sale. Negative gearing really is negative and you pay 100% of a bill to get a maximum 48% benefit in tax reduction. I did benefit from capital gains but it wasn't a pleasant experience having to fix water systems at the drop of a hat deal with break ins etc. from that point of view the point he makes of a share you buy it you can forget about it and it keeps plodding along is very true.  

In regards to health insurance we would be paying the extra Medicare levy due to double income if we drop it so for only a small amount more to keep so I will keep that for now. Our extras we have chosen a low cost option were we pay only for services we need ours include Dental, Major Dental, optical and ambulance cover this costs about $500 per year and I claim about $1600 a year (my one root canal was $1000 alone last year) - I resisted extras for years then I realised I could benefit from it but not as a packaged option I have no need for massage, chiro, pharmacy etc etc

#57 purpleblaze

Posted 27 April 2017 - 11:28 PM

4keykne does that mean you have 2 separate health insurance policies, one for hospital and one for extras? And that comes out as more cost effective?

#58 4keykne

Posted 27 April 2017 - 11:57 PM

Yes I do it worked out $400 cheaper per year.

The bundles offer a lot of things you don't use. I have Top Hospital cover (as I don't see the point of having cover that excluded heart conditions pregnancy and dialysis). My extras cover allows me to chose what I want covered to package it together to have top hospital you are almost forced to take an extras package of stuff you don't need. Even with a corporate package offered at my workplace still works out cheaper to use two seperate companies.

My health insurance renewed before the price rise but just did an online quote and to package with one company costs $376 per month to have two different companies (and greater rebate at dentist and optometrist) is $270 so now $1200 odd cheaper

Edited by 4keykne, 28 April 2017 - 12:10 AM.


#59 TrixieMac

Posted 28 April 2017 - 09:49 PM

View Posthappygoluckyinoz, on 27 April 2017 - 05:04 PM, said:



His reasoning with personal effects outside the home is that if you lost your iphone/ipad etc it's not the end of the world, and with the accounts you have set up you can afford to replace it. Which thinking about how much extra I have paid in insurance over the years to cover these items and never claimed - I could have bought them 5x over already.



I remember re-reading this section today and he was particularly against extended warranties on products like iPhones. In my mind he was referring to those insurance policies where you pay say $7 per month to your phone provider on top of your phone and usage charges. Mine is covered within house and contents and did not affect the cost of the policy (probably because I'm always 2 models behind!).

#60 born.a.girl

Posted 30 April 2017 - 07:26 AM

View Post4keykne, on 27 April 2017 - 10:50 PM, said:

We purchased Argo their dividends are fully franked that means your tax liability is reduced. My understanding of the whole system is not deep but if you go to the ASX website they have tutorials which will explain franking credits and all other "jargon" associated with the share market.




Fully franked dividends come to you 'tax paid' at the company tax rate.

When your tax return is done, the gross (before tax) amount of dividend received by you is added to your income, and tax is calculated at your marginal rate.

You then get a credit for the tax that the company has paid.

If your own marginal tax rate is less than the company tax rate, your own tax liability will be reduced (or you will get a refund).

If your own marginal tax rate is higher than the company tax rate, your own tax liability will increase.

#61 8mimi8

Posted 01 May 2017 - 12:57 PM

Bought this today at big w for $20. Surprised that it was cheaper than bookdepository.

Dont think dh will want to do date nights as recommended. I am the one that do all bills and house admin stuff anyway.

It will work like this

Me: i think we should do x y z

Him: ok, just let me know what paperwork u need


No fun i guess but at least we are.moving into right direction

#62 wombats

Posted 01 May 2017 - 01:18 PM

Has anyone looked at what he suggests for kids saving? I'm not sure how complicated it would be.

#63 4keykne

Posted 01 May 2017 - 07:10 PM

8mini8 that is exactly what happens in our house!

#64 happygoluckyinoz

Posted 02 May 2017 - 01:19 PM

Ok so I've read the book and started to implement his changes.

ING accounts have been set up and have changed all the direct debits over. Next couple of months will only be able to manage 'daily expenses' and a 'splurge' account, as we previously had been spending everything on the credit card and clearing in full, so any extra is going on the credit card to clear that at the end of May as we normally would (to avoid interest). It's making May/June extremely tight - especially as full fees have kicked in for daycare!

Our aim is to have the three accounts working and $2k in Mojo by the 1st of July.

So far I've saved money on the home insurance, I'm still umming and ahhing over the health insurance. I can't commit to dropping the level of cover even though I know we should - it would save so much.

Car insurance is due at the end of the month - think that's going to be expensive as I had to claim because an uninsured driver hit me on the Freeway in December so my premium is most definitely going to go up :(

We are also considering selling our second car, we don't use it all that much, but it can be handy sometimes. We'd save $1,600 a year in running costs plus any maintenance. We'd get about $6k for it so could pay that off our other car loan and get moving on clearing that by the end of the year.

I have managed to get DH to read some of the book - I hand him a chapter and then we sit and discuss it. I think the chapters are short and easy to digest, so it only takes him 5-10 minutes to read it. If I handed him the whole book and asked him to read it I would have no chance!

#65 IamOzgirl

Posted 02 May 2017 - 02:53 PM

View Posthappygoluckyinoz, on 02 May 2017 - 01:19 PM, said:



Car insurance is due at the end of the month - think that's going to be expensive as I had to claim because an uninsured driver hit me on the Freeway in December so my premium is most definitely going to go up :(


Shop around on this - some places only ask the question "have you had any at fault claims" and you can honestly say no. Some go on and ask if you have made a claim - unfortunately you have . so find the company that doesn't ask!

Our insurance was an interesting one - we got a new car and it skyrocketed. but AAMI were super cheap.

But when we moved (further from the city &'safer' neighborhood) our premium went up by $200 and we only had 5mths left..

I questioned it and it seems that what made the policy cheap at our old address made it expensive at our new address.

At our old address we parked off street but not locked in a garage - turns out our new address, with locked garage, is more expensive cause AAMI don't care where you park your car, they base the risk on street address (assuming you may not always park your car in the garage) and or new street is a major road and high risk.

So we will def be shopping around when our new premium is up (very soon)

And i am assuming the insurance company thats asks where we park our car will be cheap cause it is in a locked garage.

#66 IamOzgirl

Posted 02 May 2017 - 02:56 PM

Speaking of insurance.

Please tell me you all shop around for your green slip EVERY. SINGLE.TIME.

9/10 out of 10 i go with the same provider but i always get it cheaper by going via http://www.greenslips.nsw.gov.au/

Yes the renewal is more expensive than goign fresh via above site. Cheeky buggars! (the lazy tax strikes again!)

#67 happygoluckyinoz

Posted 02 May 2017 - 02:58 PM

Yes I'll be shopping around, I've already got a few quotes ahead of time to see where we will be at with the renewal. I actually work for a major insurance company in WA and get 25% off - so you'd think it would be cheapest for me to insure with my employer - you'd be wrong! Crazy the differences really.

I don't know what a green slip is.... so assume that's a NSW only thing!

#68 IamOzgirl

Posted 02 May 2017 - 04:27 PM

Just googled!

Annoyingly you only have one provider (which i think is the same in CBR)

http://www.greenslip...surance-wa.html

But yeah i am not surprised that your employer is not your cheapest one. Seems silly to me.

I i was the boss of an insurance company i would be offering to match any offer from another company to my employees!

Same as banks. Their mortgage offerings are terrible to their staff!

#69 Kallie88

Posted 02 May 2017 - 05:34 PM

I'd really like to get some improvement in our finances, but my biggest obstacle is dh >.< whenever i try to sort out a budget or make changes he never gets on board, always seems to think we won't have enough money. So i do what i can with my finances, but it's only tutoring money and ftb, he's the main income earner (albeit low income) and i wish i knew how to get him onside!!
I'm currently trying to cut our grocery bill too lol

#70 Chicken Pie

Posted 03 May 2017 - 11:23 AM

Kallie88 it's similar here he listens but still does his own thing. I have to do everything financially! Joint accounts didn't work so we have our own but I manage his account as well to ensure he is paying his share in rent and utilities etc. but other than key bills each to their own.

So for now I'm focusing on mine and I hope he will get motivated eventually when he sees what I'm doing isn't hard. Challenge is im the bigger earner as well so money discussions blow up (he always pays his way but likes blowing what he has left each week)! He admits he has always been bad with money though.

I have though sorted his super accounts into one, trying to convince him to move as he is with Plum. Banks I can leave as he has no fees on his account, I paid off his credit card to combine with mine which he is paying off (wasn't huge) so I cut his up. This was a while ago though. He would have more money to save but I pays huge amounts on child support and while it's clear we being screwed we can't rock the boat

#71 happygoluckyinoz

Posted 03 May 2017 - 02:00 PM

My next saving - gas supply!

So in WA you have a choice of Alinta and Kleenheat. I've been with Alinta all the time and pretty much ignored all the offers from Kleenheat - DH said we should switch, so I completed their online application (took a couple of minutes) they were offering 20% discount and $50 credit.

Got a call from Alinta today offering 25% discount, backdated to last bill in Feb and for 2 years, plus the $50 credit. I then got put through to Kleenheat to cancel the switch - they then upped the discount to 30%!!

So I reckon I've just saved $300 from my annual bill without really having to do much at all :)

Next on my hit list is the mortgage, we are paying 4.25% which I think is too high.

#72 happygoluckyinoz

Posted 03 May 2017 - 04:28 PM

Can you tell I'm bored today...

So I've switched health insurers and made the decision baby #2 whenever I get pregnant is going to be public not private.

Saved us $1,349.92 a year!

I somehow need to chop another $179 a fortnight from our daily expenses to bring us to the 60% mark. Although DH keeps unhelpfully adding to it!

Also called the mortgage company, got my rate from 4.25% to 3.97% saving us $31,376 over the life of the loan.

Taking todays total savings to $33,026 - I think I'd call that a good day, THANK YOU BAREFOOT! :)

Edited by happygoluckyinoz, 03 May 2017 - 05:01 PM.


#73 Chicken Pie

Posted 03 May 2017 - 05:40 PM

Wow that's great well done happygoluckyinoz

May I ask who you ended up with for health insurance

#74 happygoluckyinoz

Posted 03 May 2017 - 05:46 PM

View PostPrincessPeanut, on 03 May 2017 - 05:40 PM, said:

Wow that's great well done happygoluckyinoz

May I ask who you ended up with for health insurance

Bupa ended up being the cheapest for us, went with their basic hospital and bronze extras.

#75 4keykne

Posted 03 May 2017 - 07:18 PM

You have done well today happygoluckyinoz😀

I am eagerly awaiting deregulation of electricity in WA would be nice to have choice there too. I got  my bank to 3.74% last year I doubt in the current market I could do better.




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