In my eulogy I spoke of one of my dad’s favorite quotes (by George Bernard Shaw).  The reasonable man adapts himself to the world around him but the unreasonable man attempts to adapt the world around him to himself. Therefore all progress depends on the unreasonable man.

Unreasonable doesn’t mean being difficult

I don’t think being unreasonable always means to be difficult. For example – If I have to wait 10 minutes at McDonalds because they are busy – I don’t complain as I know the staff are working hard to get my meal.  

But at the same time –I have given tips to checkout staff at the supermarket on how to work more efficiently (use two hands people!).

4 Days a week

I recently negotiated to change from full-time work to work 4 days a week. While my main motivation was to care for my father, I also decided that I would like an extra day a week not working.

The reasonable man would work 5 days a week as everyone else does – but why not try to adapt the world to suit you?  (note that your work may not agree – but hopefully it doesn’t hurt to ask).

Another story I heard was of a top tax lawyer who used to leave work at 5:30 so that he could be home to have dinner with his family. He would then work in his office until 11pm usually. He chose to adapt the world to suit himself and his family.

Work Efficiency

You might notice that you waste time at work doing steps that do not seem necessary. Why not discuss them with your boss?

What would you change? Are you unreasonable?

I’m sure there are a few things you could think of.

If you could change the world to suit yourself – what would you change?

At work?

At home?

I realise I didn’t upload the video link.  Click Here to watch the video of me on A Current Affair

After watching the video you also might want to check out the Further Resources for A Current Affair viewers post that I posted at the time.

A few people have asked me:  Why are you doing the site?   to which I say: 

1. I have a passion for helping educate people (particularly young people) about financial stuff so that they can become financially astute and one day financially independent. 

2. In doing the above – I would like to earn income so that I become financially independent.  

People also ask me – Does the site earn money? and How does the site earn money?

How the site earns money now 

1. Google Adsense - (search adsense to see how it works) (I’m too lazy to find a link) 

2. Donations - if you enjoy the articles you may wish to donate a small amount to us www.nomoney.com.au/donate

How the site may earn money in the future 

3. No Money.com.au created Products and Services -I want to provide financial information for those with no money. The site will provide free resources (spreadsheets, etc.).  

However – if I spend 10 hours+ making a great resource – I will probably charge for it. 

4.Affiliate Income - where you click a link from this site and purchase somebody elses product or service. I only want to recommend products/services that I think will benefit YOU financially (not just because I could make a quick dollar – see more about this below). 

No Money Affiliates 

Currently No Money has signed up to be an affiliate of the below sites. (see also below affiliates where I write about how I only want to make money if it benefits you/doesn’t cost you anything):

(Please note that it is very important you CLICK the below links – so they know it came from nomoney.com.au): 

Shop at Amazon.com! (so if you click this link and buy anything from Amazon – No Money will earn a small commission) – It costs you nothing but because we are helping Amazon get business – they will pay us a commission. 

Aweber Email Newsletter Program Aweber is an email newsletter program which No Money has switched to. I started with somebody else but EVERYBODY seemed to recommend this site.  What We Get If you signup – 10% of what you pay (Cheapest option is $19/month – so $1.9 a month) 

(there are a few more but I’ll put them up later)

 How I DON’T WANT TO EARN MONEY 

Knowing how I Don’t want to make money to me is almost as important as how I DO want to make money. 

1. I don’t want to make money by selling you expensive investment products/services that might not help you.

2. I don’t want to make money by selling you financial products (like bank accounts/credit cards) that are not a good deal.

In short, I only want to make money by helping YOU. Otherwise I would feel bad – and it would not be in line with my goal up the top.

But from a comment I got re: Hoyts Candy bar workers being retrenched last week – I also thought that I don’t want to have the closure of the Hoyts snack bar on my shoulders (the quality of the stuff the sell if usually pretty good).

Given that I don’t want people losing their jobs - should I recommend the Hoyts Candy Bar for another reason?

I looked up Hoyts on wikipedia. Interesting story, Australian company. (note I also had a quick look at competitors and they were mostly Australian too).

Hoyts is owned by a Private Equity (wikipedia definition) firm called Private Equity Partners – (company website). 

Woolworths – wikipedia is the largest retailer in Australia. It is listed on the stock exchange.

So who do we support – Hoyts or Woolworths?

This is one reason why money questions are not easy (and why I can easily offend people with my articles).

To make a decision like this there are many financial, emotional and other variables.

Your mind might work like mine (don’t read the below paragraph its all mumbo jumbo):

Ok I’ll go to woolworths because it is cheaper (financial), but I don’t want Hoyts candy bar guys losing jobs (emotional),  if I support Hoyts profits go to Private Venture firm in Sydney (and people who started Hoyts would get a percentage), whereas if I support Woolworths goes to shareholders, wait Woolworths CEO gets a huge salary, but Woolworths shareholders are mostly Australians, wait but some are institutions like banks and managed funds, but those managed funds might hold super money of regular Australians.

The Final Decision (Tree)

So there is no final decision (and of course you will have to make up your own) but my ideas are….

IF I’m running late OR trying to impress a girl I’ll buy from Hoyts candy bar. IF I’m with friends/family I’ll probably bring from home or buy from Woolworths. IF I am not hungry I won’t eat anything!

Wow… that was a lot of words for such a simple question (I hope this somehow helps you to understand a bit about how big companies work!)… otherwise I might have wasted my time.

It is a work in progress so expect to see changes before we get it exactly how you want it.

Hopefully the new site is a little bit easier to navigate (rather than seeing a whole bunch of text).

If you have any ideas how we can make the site better – send me an email at nomoneyau@gmail.com

I got a comment regarding  my article: Hoyts Free movie ticket (responding to my comment that I usually buy snacks from Woolworths) -He said that he worked at Hoyts and some of his friends in the Candy bar had been laid off LAST WEEK. He asked what financial advice I had for his friends?

(To the guy who wrote the comment: email me as I have more I want to say to you - the email you provided didn’t work/was fake) 

(FYI If you write a comment on an article - Thanks to those who do – I do receive them – While I probably won’t put comments onto the site I hope to use them to improve the quality of information I provide, or ideas for new articles. So please leave your correct email address as I might contact you. Note the email address doesn’t get shown in the web comment and I won’t do anything with your email addresses)

Firstly – Guys* who have lost their jobs – I’m really sorry to hear that. Being laid off sucks and it is unfair and it makes you question a lot of things about life. And also YOUNG PEOPLE are often the first to be retrenched.

My tips for Young workers who have been retrenched 

1. Get another job – Try to get another job asap. Don’t wait until your cash runs out. (perhaps this is too obvious but I have written it down anyway).  10 tips on keeping your job may help with the next job you get (or those who have a job may wish to flick through)

2. Apply to Centrelink for benefits (perhaps they could get Newstart, Youth Allowance, etc.). Have a look at Centrelink’s individuals page.

3.Think about your plans -Take stock immediately of your situation - if you are renting – maybe you should consider moving back in with your parents if you are not sure you can get another job.

4. Use it to your advantage – Maybe you can get a better job (I have about 5 or 6 friends who were retrenched in the last year that I can think of. Most are happier where they are now). Or maybe you can get a different job that more suits the unique talents you have.

Maybe you can use the time off to travel/ travel and work overseas.

Further resources:

Being retenched could be an opportunity

Constructive Tips on how to cope with Retrenchment

When you go for your next job – Raising Redundancy in the interview

* By saying Guys I mean Guys and Girls

Start your engines and spin your wheels aimlessly

Sometimes when you are dealing with people you are both looking at things from different angles and making assumptions about the other party (there was a movie with the line when you make an assumption you make an ‘ass’ of you and me!). (I think ’spinning your wheels’ is a great way of saying you are getting NOWHERE!)

Example 1: I am a guitarist/singer and today I got a reply to my request for covers gigs on musician classified site www.rockstarhookups.com.au (love the punchline..Singles need help. So do musicians!).

The guy requested I tell him a bit about my experience, etc – which I did, I work full time, this website, in a band, have an encyclopedia knowledge of guitar songs, great guitar player/singer, yada yada yada (as readers will know I am not afraid of shamlessly promoting myself).

He comes back with -thanks but you don’t fit the bill because of X, Y.

Then I think what do I have to lose? – I msg back everything that will SELL him on me and answer anything that might NOT make him want me (or I say Yes I am  X, Y and I also can also do Z, A, B, C too).

But …. and here is the CRUCIAL BIT OF INFORMATION… The pub is IN ANOTHER CITY!!!!! And they want someone to play for 3+ weeks (which of course I can’t do working full time). (p.s. if anyone does want this gig… email nomoneyau@gmail.com)

At Work – and this happens a lot a work. One simple piece of information can change everything. A Boss might assume a junior staff member has considered something which they hadn’t. A junior staff member might question what the boss does even though (my article!)they don’t know what they don’t know.

In Investing - you might look at this site (or seen me on A Current Affair this week) and say – that idea about (my article!)the first home saver account idea that I told A Current Affair watchers. But if you set up one of these and then buy a house in 4 years but you haven’t contributed $1,000 a year – the money has to be transferred into your super account!!!.

The takeaway – the practical stuff

1. Ask the main detail/stupid questions first (ask where is the pub located, etc.). Don’t ask 50 million questions but in Example 1 obviously where the pub is makes a big difference. How many nights a week playing would also be important to me but I think this is less of an issue in this case (i.e. that is more negotiable)

2. Read the fine print – and Don’t follow anything on this Website! (see our disclaimer – I don’t know you that ONE CRUICAL bit of info (e.g. you will buy a house in 3.5 years instead of 4) can make ALL THE DIFFERENCE.

3. Try to understand exactly where the other person is coming from – or as Stephen Covey author of one of my top 10 books The 7 Habits of Highly Effective people says ‘seek first to understand, then to be understood‘ (Habit 5 go to the above link and click Habit 5 for more on this)

(open scene) (happy music playing trumpets, etc) so there I am on A Current Affair on Tuesday all dressed in suit and tie (Money by Pink Floyd playing “Money, get away. Get a good job with good pay and youre okay.” ) giving financial advice for generation Y (song fade and camera fade to black()!).

(narrative only.. black screen)but I’ve had a dirty secret for a while now…I have a credit card debt (silence) Two credit cards in fact! (Psycho -Shower screen screams). And since November I paid a large amount on my credit card to do a hair regrowth program (maybe I am a fool -see the full story in Christmas spending hangover)

Well the good news is my hair does seems fuller (bald Phil Collins – “I can see it coming in the hair tonight”)… but the bad news is a few branches have been chopped from my money tree (tuba low sad note).

The Damage – when it rains it pours

So the first problem was the few gorrilas on the hair regrowth program. Then of course car insurance, 2x strata repayments of $685 a quarter. Christmas… etc. etc. (worlds smallest violin starts playing)

Now I owe $4,640 on 1 card and $2,509 on another. Total $7,149 (large babble of voices what? why?)

Immediate Action Required – CUT UP THE CARD (sword slice!)

OK – so about mid December I realised that I was in the financial poo. I knew when I signed up for the hair program that it would be a few months before I could pay the credit card off (of course the salesman said it was cheaper to pay upfront and pay off your credit card in a few months than pay the monthly instalment option)   (Pantera guitar wailing in the foreground)

I’ve read financial books that tell you to cut up cards – or put them in the freezer so you need to wait for it to thaw before using it (laugh track used when jokes not funny)

What I did

1. I immediately have tried to pay everything possible on my 2nd credit card (an American Express or AMEX) (Stars and the stripes – Jimi Hendrix starts playing).

2. STOP THE SHOPING I cut (scissor sounds) going to the shops. Even though I have gift vouchers I know that a gift voucher means I’ll spend more in the shop so I am waiting until I go.

3. I have looked at payment due dates. In November I only paid $339 on my AMEX. I made sure I paid this before the due date so I kept my interest free days. Just to re-iterate this point – if you miss a credit card payment – ANY further purchases are immediately getting charged interest on them (rather than getting 30+ days interest free).

So I know that I will owe $2,409 on 4 February 2010(+I spent $100 on shopping a few days ago… there is only so long a man can live on tinned food, work biscuits and xmas leftovers).

I get paid on 15th so I’ll probably redirect my payment into the CBA credit card (which will reduce interest from 15 Jan rather than the AMEX which is only due on 4 Feb) (lightglobe turn on sound)

4. Hold off payments – there are some payments you might be able to hold off. I’ll wait until they send a 2nd reminder for the Water bill (p.s. I don’t really recommend this – could affect your credit rating when you go to borrow money but 1 missed bill should be OK – don’t make this a habit).

I have also told my parents – they were OK if I suspended payments on my loan to them (they lent me money when I bought my unit so I didn’t have to pay Lenders Mortgage insurance (definition at bottom))

Other Tricks

1. Reimbursement Trick -  I was on my work social club committee for 3 years (ending in Dec). Our Xmas drinks I put $1,500 on my Amex. Then I used the reimbursement payment onto my Commonwealth Credit Card.  So I have now recycled the debt to another interest free card.

2. Put dinner on your credit card – the poor cousin of the above. Everyone chucks in cash for dinner, then you take the lot and use your credit card. (I just came back from dinner with friends tonight and I did this!)VERY IMPORTANT – Pay the tip that your friends have given. If you do not do this that is stingy (you are already being a little unfair to the restaurant making them pay merchant charges for accepting your credit card – YOU MUST GIVE THEM THE TIP!).

Things that might not work as well.

1. The refund – In France I prebooked accomodation -instead of charging $30 Australian they charged $3,000! I checked my credit card statement and luckily they had sent me an email as well. But I don’t think this amount went against payments. (Also it is usually treated as refunded the same day).

2. Credit Card Stoozing Savings guide have an article about this (as I haven’t tried this myself I’ll take their word for it)

The last  crazy idea

My last idea is an unusual one (keep saving). Why would you keep saving to get 4% interest when you can pay off credit card interest at 20%?? (no music pause… suspense builds) Its the mental thing. If you feel like you are going forward and saving 10% (or repaying your mortgage as I will be doing) you feel like you are getting ahead (rather than working back to ZERO).

This means that you are more inclined to go with the PLAN to pay off your credit card.

Well I hope so anyway and I’ll let you know how it goes (a guy walking in a city…you recognise the riff.. Bittersweet Symphony by the Verve… its a bittersweet symphony thats life, try to make ends meet you’re a slave to money then you die…hi…….(fade to black… sound of a man snoring because it is way past his bedtime)

Lesson Learned: Don’t rely on when the TV team told you would be on TV - Get confirmation  that they will be showing your interview that night -BEFORE telling everyone that you know!!.  (as the interview with me is so life changing – the A Current Affair team must have decided to hold the story off so they could advertise it more to boost their ratings!!!)*

I haven’t heard from ACA but my guess is that the show will air next week.

* Yes I do know that this is a very arrogent statement to make. I will soon post a blog entry about myself - similar in style to the one I wrote about Robert Kiyosaki, the author of Rich Dad, Poor Dad (because I feel bad that I might have been a bit harsh on poor Robert).

1. Save before you Spend – Building Wealth

Create an automatic transfer of 10% of your salary into another bank account (such as a high interest account).

It is important to do this when you get paid. You should pay yourself first.

When the gym takes their fee directly from your bank account – do you manage to survive – Yes.  Put in an automatic transfer and don’t ever stop it.

Even if you get a credit card debt. Pay off your credit card debt after the 10% (OK this part is debateable- some prefer to pay credit card debt first).

Saving 10% of your salary is like your parents getting you to eat your vegetables – you will enjoy the financial dessert some day.

Resources

http://nomoney.com.au/2009/09/29/the-one-trick-to-saving/

 - Book: The Richest Man in Babylon by George S Clayton (click on Right hand side to buy through Amazon.com)

2. First Home Saver Account – Saving for A Home

If you are 18 and plan to buy a home -start a First Home Saver account with your local bank.  It is a special account – Commonwealth Bank 4.25% & ANZ have them 4.5%

 You need $1,000 to start, and $1,000 a year deposited over 4 non-consecutive years.

 You get 17% contribution from Government + Bank Interest and only pay 15% tax (automatically deducted & sent to ATO).

 The Traps (MAKE SURE YOU READ THIS) – you need to have deposited $1,000 into the account for 4 years- otherwise it goes into your super fund. So if you buy a house after 2 years then the money is transferred to super.

 So start off slow – You could transfer $100 a month into this account for the first few years then up to $5,000/yr ($416/month) to get max Gov contribution benefit.

 Note that can still get FHOG if it lasts!

 Resources

Fido main site http://www.fido.gov.au/firsthomesaver

 Home Saver Calculator http://www.fido.gov.au/fido/fido.nsf/byheadline/First+home+saver+account+calculator?openDocument

 ATO re: First Home Saver http://www.ato.gov.au/content/downloads/MEI00155253n72406082008.pdf

 First Home Saver accounts

ANZ http://www.anz.com/personal/accounts/savings-accounts/home-saver-account/

 CBA -http://www.commbank.com.au/personal/accounts/firsthomesaver/default.aspx

(Westpac & NAB probably have them too but I couldn’t see when I flicked through their sites – maybe someone from Westpac and NAB want to email me nomoneyau@gmail.com and I’ll update this blog with your links)

 First Home Owner Grant -NSW $7k still available until 30/06/2010

http://www.osr.nsw.gov.au/benefits/first_home/  (Other states check go through fido links)

3. Spend less on having a good time

 Watch what you drink -if possible buy first round or avoid rounds of drinks altogether

 If you are not feeling it – go home or don’t go out

 So many fun things don’t actually cost that much

-Hanging out at a friends house, having a few (a few!!! like 3) drinks at the pub.

-Having coffee

-Going to the beach

 4. You can live cheap without being a tightarse (not sure if they’ll say tightarse on Channel 9 – but I’ll say what I want on my website!)

 A few quick ideas - Buy items on sale or 2^nd hand, Sell unwanted items on www.ebay.com.au, Bring your lunch to work

 5. Clear that debt & don’t make stupid decisions

 If you have a credit card debt make it a priority to pay it off. As credit cards charge 20% that is better than almost any investment.

 Pin your credit card statement to your fridge and look at it whenever you are about to go shopping.

 Don’t enter flexirent, etc.