Borrow to Buy. The Great Australian, American and British ‘Debt-Stress’ Dream

Want a bigger house?   Borrow money and buy one.
Want a newer car?   Borrow money and buy one.
Want a different TV?   Borrow money and buy one.
Want another Investment Property?   Borrow money and buy one.
Want the latest smartphone?   Borrow money and buy one.

Borrowing money to buy things we want is the new normal. It’s the Great Australian, American and British ‘Debt-Stress’ Dream.
Let’s face it.

  • Why would you drive around in a 20 year car – a car you bought second hand and paid for with cash from a work bonus, so in theory the car was free – when you can get a $100,000 low-interest loan for a brand new BMW and then work longer hours to pay back the lender?
  • Why would you use a 6 year old iPhone 4 when you can borrow money from the bank and get the new iPhone8?
  • Why would you live in a $400,000 house – a house where you’ve paid off the mortgage – when you can go to a broker, get a $990,000 mortgage for a million dollar house and then work like a mad thing giving most of what you earn to the bank for the next 30 years?

‘Borrowing to Buy’ has left us Overspent and in an awful lot of Debt-Stress. We’re spending more than we earn. We’re living off credit cards and spending money we don’t have on stuff we don’t need. We’re ‘Status shopping’ and buying to ‘keep up with the Joneses’ because we’re never satisfied with the things we already have and own. Our self-worth is based on what we buy, own and want to own.

Normal is getting dressed in clothes that you buy for work and driving through traffic in a car that you are still paying for – in order to get to the job you need to pay for the clothes and the car, and the house you leave vacant all day so you can afford to live in it” Ellen Goodman

Here’s the stark reality:

  • 81% of us don’t know how much money we spend on a daily, weekly or monthly basis.
  • 65% of men and 85% of women have no money saved. Zero cash savings.
  • 50% of people struggle to meet their day to day household expenses.
  • Financial stress for high income earners ($150,000+) has doubled in the last 2 years.

People tell me
“I’m too scared to look at our bank statements”
“I have no idea what our real financial situation is, but we look rich to our friends”.

I didn’t buy anything new or second-hand in 2014 and saved $52,680 in 12 months. I quit impulse shopping, changed my spending and transformed my savings. It started as a lifestyle experiment but it changed my life so I kept on going. You can break the habit of impulse shopping and save YOUR money with my Underspent book, programs and weekly blog + video. Weekly blog (Tuesdays) and weekly Facebook Live videos (Tuesday nights).

Making a budget isn’t hard work. Looking at your bank statements shouldn’t be scary. Knowing your ‘real not perceived’ financial situation is something we should all do.

I’m not a Financial Planner. I’m not a Financial Advisor. I’m not giving financial advice but I am happy to share my experiences. Here are 10 solutions that worked for me that you can do right now.

  1. Admit that doing things differently – saving not spending – is possible.
  2. Switch off the TV. Apparently we see 5,000 advertisements every day telling.
  3. Identify why your self-worth is based on what you buy, own and want to own.
  4. Be grateful
  5. Set up a monthly budget
  6. Create a Savings Plan
  7. Make a Spending Plan
  8. Lock away your credit card
  9. Get a 90 day Waiting List
  10. Get outside and have fun!

What to do next?
Buy the Underspent book – Buy the Underspent book, $2.99 or $12.95 available in paperback, e-book, iBook and Kindle formats from all online bookstores and most Dymocks and QBD bookstores as well as Folio Books in Mary Street, Brisbane CBD. Buy a signed paperback copy direct from me via http://www.cyclingrachelsmith.com/buy-the-underspent-book/
** BULK BUY SPECIAL OFFER ** During November 2017 purchase 500 OR 1,000 signed paperback copies of Underspent at discounted rates. The perfect corporate or workplace Christmas gift. Phone or email me for more details