"Whether you think you can, or you think you can't, you're right!"
Stewie Griffin - Family Guy
They say "it's the thought that counts" and in this context they are spot on. I've watched friends/family that are more educated, in better paid jobs and even few that have had a substantial financial windfall continue down the same path of financial hardship. Why? Because they lack the planning, they lack the forethought, they lack the incentive to achieve more than mediocre. They live in a bubble of consume, consume, consume and then when the money runs out, expect help because no one told them money doesn't last forever...
This was a harsh reality for me in my university days. I was 18, I wanted to party, I wanted long holidays somewhere exotic to shake off the study blues. Surprisingly this all cost money! When I woke up one morning after two hours sleep and had to drag my shabby run-down backside into my weekend job so that I could afford to pay my rent that week, I decided enough was enough. As a kid my parents ran their own architectural business, but when my mother ceased work to raise my brother and I, money in the household got tight. It was this experience that taught me money does not come easy and that to have the things in life I wanted, I had to work. Seeing as I was already working three jobs at this time in my life I decided something else had to give. As the bills weren't getting any smaller, I decided it could not be a job that I gave up, this left university or my social/party lifestyle...
So...I quit uni(mistake number 2). I continued working the three jobs, partying every night, dragging myself into work nearly every day after two hours sleep and eventually completely ran myself into the ground - what a surprise!
"Hindsight is always 20-20."
Billy Wilder
At this point being the stubborn eldest child that I am, I decided rather than seek help or advice I would simply get a better, higher paying job that would get me through - that way I could keep my lifestyle and work less - simple right? (mistake number 3) Without a degree, diploma or any other form of higher education, convincing an employer that your three casual retail / cleaning jobs qualify you for a managerial position is unlikely - but you may have better negotiation skills than I did at that point.
*It should also be noted that this period in my life was during high unemployment, so wasn't I a hog - taking three jobs!
Having been rejected for several better full time positions I did what any other 18 year old female would do...I went crawling to my mum...
Lucky for me - and I might add, this was the only 'luck' that I encountered on my journey to financial freedom - my mother had a position within her new job for an office manager and seeing as I was the boss's daughter, that qualification alone got me a tidy full time position. There was a condition attached though, I had to go back to school. As nursing was not really relevant to my current position, I chose accounting, which was the first 'win' during my financial journey. Education is one of the most valuable resources and yet one of the least expensive resources available to those just starting out. It doesn't have to be a degree, or even a tafe qualification - check out your local library - there are lots of self-help, DIY and biographies that we all can learn from.
After twelve months I had my certificate III in Accounting, I thanked my mum for all her help and I applied for a higher paying job with a Credit Union which I landed successfully. I was now living with my boyfriend, paying less rent, sharing bills and working an interesting full-time job on a decent salary. Now to clarify, when I say 'interesting' my translation is 'constantly surprising, at times a little scary, but an experience I can learn from.' I was employed as a debt collector and deceased estates manager...interesting - yes!
It was eye-opening to me what a negative role money can play in people's lives, in particular, when you run out of it! I had no personal debt at this point in my life, and was glad not to. During my time with the Credit Union I settled 20 applications for probate, repossessed four cars and one home (that was a miserable day)and made over four thousand phone calls to defaulters. I made a promise to myself that I would not get myself into this kind of trouble ever, but that's the problem with promises (that's all they are.)
So, after paying rent, repossessing cars and watch those around me spend money like it was going out of fashion, I decided it was time for me to invest my hard earned money into something more worthwhile. Things were going well between my boyfriend and I, so I suggested that we take the next step and buy ourselves a home. With my boyfriend having taken a job on a rural property, we decided it best for us to buy a home that was relatively close to both of our employers and Goulburn NSW was half way between both. So, as I was in a complete rush (my father always said I was born with a bull-at-a-gate mentality) I put an offer on the first home that was within our price range in Goulburn (mistake number 4.) This later turned out to be an over-priced run-down home in a well known 'bad area' of Goulburn...
Lesson 1 in property investment - always do your research on the area and on current prices and always speak to a local if you are unfamiliar with the area (real estate agents don't count for obvious reasons)
I lived in this property for a grand total of three months, when I decided I simply hated it and went back home to live with my then fiance's siblings. This was the creation of my very first investment property. Having done a little research and read all the relevant legislation for NSW tenancies I placed an ad in the paper and showed prospective tenants through the home (mistake number 5 - I was 20 years old, with no property management experience and was living in a town over 1 hour away - self-managing should not have been an option.)
I eventually found tenants whom I considered to be reasonable people and started a tenancy agreement. It was stipulated in this agreement that there was to be no smoking in the home and no pets. Everything seemed to go smoothly, rent was paid on time, no complaints were made from the neighbours so I assumed all was well. Upon first property inspection however, I arrived to find full ash trays in the lounge, dining, kitchen, and bathroom - yes bathroom ewww! Out the back we had a dog, two cats, a deer, a turkey, three chickens and two wallabies...So much for the no smoking, no pets. I advised the tenants they were to stop smoking inside and the pets all bar the dog had to go too.
Meanwhile back at home, I was tired of living with the soon-to-be in-laws, so my fiance and I purchased a new home just around the corner. Keen with the property investment bug I also convinced him it would be good for us to buy another investment property and a few months later we purchased a three bedroom unit in a near-by suburb that already had good tenants in place. This worked well for quite some time until we were married. My husband, prior to marriage was running his own landscaping business, that I was managing the books for it whilst also working full time as a public servant. Once we were married he decided he didn't like working outside any more and applied for a position that required him to go away on five months training, when he returned it was not the good life it had once been and unfortunately 18 months later we were separated.
This was a very challenging time in my life. Firstly I had cut back so much on the social scene I was so accustomed to prior to meeting my partner and buying property, so a lot of my friends were no longer anywhere to be seen. I had to adjust to living on just one income again and with divorce settlements, legal fees and my own bills slowly mounting I really felt as though I had hit rock bottom. We placed the property in Goulburn on the market and agreed that I would move into the three bedroom unit and he would keep the home near his family.
It took over twelve months for the house in Goulburn to sell and when it did, we lost over $15,000 in the decline in value.
A few months after moving into the unit I lost my grandfather to a stroke, I watched my father struggle to pay the funeral costs, I had two credit cards, an on-going argument with the bank as to who paid what mortgage and bills up to my eye balls. One afternoon after a second call from the credit card company, a notice of legal action in the mail and a phone call to my dad I had a little melt down. Several days later when I snapped out of it I decided it was really time to change, that I could no longer be a victim of my situation, that I was to take charge of my life, my finances and my own path.
This was the real beginning of my financial independence.
This blog is dedicated to the tight-asses, the stingy, the "I don't do shouts" people who have all taught me many valuable lessons that I adapted to suit my circumstances at the time. It's not about isolating oneself, it's not about penny pinching, it's about taking everyday tips and handy ideas and applying them to your own situation so that you may too achieve your own financial independence.
I am currently studying B Commerce at university, but my advice on this blog is of a non-professional nature and should be regarded as such.
"This blog is purely my own two cents, which in accounting terms, rounds down to nothing, so do with it what you will. Good luck on your journey"
Kind Regards
Shannon Allen
