I have often heard people who ridicule the poor, blaming them for their poverty. They consider the poor to be wasteful and foolish. They imagine that if they themselves were poor, they would be able to lift themselves quickly out of poverty. These people have usually never, themselves, been poor. I have been through hard times before, but I’ve always had the knowledge that my education, family, experience and connections would bail me out if I needed them.
In this article I will explore some of the obstacles that stand between poor people and the possibility of improving their financial positions.
The best opportunity for you, as a salaried worker, to improve your income is through the salary negotiations that occur when you are offered the job and usually every year after that. It is hugely important to negotiate the highest possible salary for yourself right from the start. This is because it sets a base for your future earnings. Annual reviews tend to be an increment on that initial base and it is difficult to negotiate a much higher salary once this base has been set.
Most people getting their first full time job are so relieved to get the offer they forget to negotiate their salary. The employer usually presents the salary to you as if it is an industry standard, or an afterthought, inconsequential in comparison with the big favor of offering you a job. Don’t be fooled by this. Although you are not in the strongest bargaining position, there are some factors that strengthen your position.
- Add up all the income you get each year, from your job, dividends, interest, gifts from family, everything. Allow for tax. Divide the total by 52 to give you your weekly income.
- Make a record of everything you spend. Check your bank statements to see your spending patterns. Think about big items that only come up once or twice each year.
- Work out a budget. Use a budgeting template from Google or from a government website (there are plenty). Make sure your budget is realistic, if you spend $30 on drinks, don’t put down $20.
- Add up your budget. If your spending is more than your income, try to find ways to bring your speding down or increase your income.
- Test your budget. Continue to track your spending. At the end of the month, if you find you have more or less savings than you expected, try to figure out the reasons for this. Update your budget and adjust your spending or saving pattern accordingly.
Knowing how much you can save, you can work out what date your goals will be met. Write your goals in a notebook as well as beside your budget.
If you’re the type to be tempted by having spare cash sitting around, consider putting it into a term deposit so you can’t get at it until you have reached your goal.
The main advantages in sharing a house or apartment are not just that it can save you a lot of money on rent, but it also allows you to live in a better neighborhood, closer to shops and work than you might otherwise be able to afford.
While it is advantage to be young and also to share the same culture as your flatmates, I have seen many cases of successful shared occupancy where the residents were older folk from different backgrounds. I think the trick to successfully sharing a house is to have rules which are acceptable to all.
I only have a few tips for you in this article:
Job opportunities are gradually drying up. This is a process which has been continuing since I started in the workforce, and probably before. Still, there are plenty of jobs out there, here are some ways to find them. You should try to use all of these methods in your search for a job.
Networking. Don’t make a secret of the fact that you want a job. Parents, friends, teachers, neighbours, the guy running the corner store… everyone potentially knows someone who can give you a job, and they can recommend you to that person. You might be surprised to hear that most people who are working got their job this way.
Online. In Australia, the most popular employment websites include Seek, Careerone and mycareer. Some employers post jobs on trading sites such as Gumtree or The Quokka. Commonwealth Government jobs are listed in Jobsearch and there are state government versions of this too. There are also specialist job sites and agents who post jobs online.
Being active in internet communities which are relevant to the kind of work you are seeking can also result in job offers, you never know who is lurking online.
What are the main employment websites in your country, or in your specialist field?
Newspapers. Job advertisements tend to be posted on one or two days of the week. So get up early and scan the listings.
Recruitment agencies. These tend to specialize in particular types of work. If you are unskilled or a student, try one that specializes in temp work.
(This video is a bit off topic, but it gives you an idea of what Rogers is like. The full documentary is about an hour and well worth watching to see how things used to be in China.)
The review starts here:
Seeing this book has six pages of index, I thought it would be packed full of useable information. In fact it’s a memoir of Rogers’ life and achievements.
Rogers has enjoyed a very successful and interesting life. From (apparently) humble beginnings he won scholarships to Yale and Oxford, learnt from some of the great investors of Wall Street, partnered with George Soros, made a fortune and retired at 37. But that wasn’t the end of it. He became a professor at Columbia University, traveled the world and became a highly regarded media commentator.
Sadly, the book does not reveal exactly how he achieved any of these things, except through hard work and good connections. But there are a few tips for traders.
Rogers advises the way to make a lot of money is:
Three items of news this week that sent my mind off.
Studies found an increase in the rate of suicide since the 2008 financial crisis began. It is assumed that the financial crisis was the cause. I have never understood why someone would deal themselves out of the game for such a minor thing as money. But I suppose if a person is already on the edge, a financial shock will be enough. So pay attention when someone you know loses a big amount.
A car dealer lost his franchise when news came out that he’d ripped off a vulnerable customer. I’ve always thought it’s good business sense to treat your customers fairly. There often don’t seem to be enough consequences for intolerable behavior, but in this case some justice has been served.
This final article shows the foolishness of making money solely for your children. It’s good to leave your descendents without money worries, but it takes more than money to make them into the type of person that you are proud to carry your name.
Supplement your vegetables with what you can easily grow yourself e.g. tomatoes, potatoes, beans, lettuce.
Keep your shopping budget in cash and only bring that cash when you go shopping. That way you will not overspend.
Make a shopping list before you go shopping. Find out what items you really need. Think about what you’re going to cook between this and your next shopping trip.
Know what price the things you buy normally sell for. If you can’t remember, keep a list of the most common items. That way you will know whether the bargain you see is really a bargain. Keep a spreadsheet, if you’re able to.
Buy the cheap meat, but buy the premium meat when it’s on special. Buy the smaller portions. Substitute meat with beans, tofu etc. whenever possible.
Meat that has been packaged (marinated, stuffed, wrapped etc.) is about twice the cost of preparing it yourself.
Buy fruit only when it’s in season.
Avoid packaged meals. Do your own cooking.
Ask the deli staff if they have cheap off cuts for sale. Make sure you consume these quickly, they might have been in the shop a longer time than usual.
Eat before you go. If you go shopping when hungry you’ll buy all sorts of junk and spend more than you wanted to. Supermarkets are starting to cook food in-house (bread, chicken) because they know you will be tempted by the smell.
Article continues with a whopping 25 more grocery tips:
The range of choices available to a property investor are many and varied. They are listed here roughly according to the amount of control an investor has over their management.
- vacant land;
- spec, or project home;
- commercial property;
- residential dwelling;
- country property;
- property syndicate; and
- property trust.
Vacant land. Land which does not have a building. Usually in the outer suburbs of a city. It can be a good investment if you don’t want to spend a lot of time managing your investment and you don’t need an income.
Spec, or project home. A building is constructed for the purpose of selling it for a profit. If you have good connections in the building industry and especially if you are empolyed in the building trade, this might be suitable for you.
Commercial property. Retail or industrial buildings enjoy higher rents and more control than residential properties. Some specialist knowledge is needed, though.
Residential dwelling. Most property investors start with this type because they know at least something about houses. Most of my property articles will refer to this category.
Posted in Investment Concepts
Tagged commercial, country, holiday home, property, property syndicate, property trust, residential, serviced apartment, timeshare, unit trust, vacant land