Rich/Poor mindset

Paul O Mahoney said:
Personal Balance Sheet is the measure of your wealth. There was a book " Habits of a Millionaire ", probably wrong title, but the Author studied people who were by there balance sheets wealthy.

But on visiting them he found that they employed "thrift " to everything but also knew the difference of value and cost and they had low/no debt

Most were still cutting " coupons " from the local newspaper or other publications, obviously a US study.

Book was "Millionaires Mind"
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Youd wonder what the point of having all the money was
 
Blackrock1 said:
Youd wonder what the point of having all the money was
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Well in our case "it's there "mostly our children's education. While our income covered those outlays our quite saving, pensions etc have opened our eyes recently and our children are on their path.

Money is only a medium of exchange and some hoard it some spend it and very few fully understand it.
 
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Paul O Mahoney said:
Well in our case "it's there "mostly our children's education. While our income covered those outlays our quite saving, pensions etc have opened our eyes recently and our children are on their path.

Money is only a medium of exchange and some hoard it some spend it and very few fully understand it.
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Slightly off topic but I hear constantly on AAM about education funds for kids . I don’t get it . Fees are circa 3k a year .18 year olds and over should be working part time to fund their social life’s . Vast majority of students are within traveling distance of a university. Why on earth are folks savings crazy amounts for the kids to go to college ?
 
Introuble83 said:
Slightly off topic but I hear constantly on AAM about education funds for kids . I don’t get it . Fees are circa 3k a year .18 year olds and over should be working part time to fund their social life’s . Vast majority of students are within traveling distance of a university. Why on earth are folks savings crazy amounts for the kids to go to college ?
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I guess it’s fine if you are like us. UCD is two miles from our door. Kids went to private schools with big fees. So, them going to College actually means we are saving money.

It’s a different story if you are from Donegal, Kerry or Mayo and your kids want to do the same course. Accommodation costs are a killer. In my job I sign off on remortgaging applications for folk (in their 50s) from these counties who are borrowing to put their kids through Third Level. A hard ask and fair play to them.
 
Farmer sells land for a few million. He's a multi millionaire.

But he's not rich?
 
garbanzo said:
I guess it’s fine if you are like us. UCD is two miles from our door. Kids went to private schools with big fees. So, them going to College actually means we are saving money.

It’s a different story if you are from Donegal, Kerry or Mayo and your kids want to do the same course. Accommodation costs are a killer. In my job I sign off on remortgaging applications for folk (in their 50s) from these counties who are borrowing to put their kids through Third Level. A hard ask and fair play to them.
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Very commendable no doubt . Should be better long term student loans to facilitate such scenarios . If someone is re mortgage a house to fund college SUSI is obviously not an option for them
 
T McGibney said:
Would it? For someone under 55, a €2m sale of land would equate to circa €1.5m-€1.7m after CGT. If average life expectancy at age 52 is say 87, they have 35 years left and their main asset and source of income is gone. €42k-€48k p/a ain't exactly the equivalent of large salary especially when inflation is counted.
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you could buy an income producing asset with the proceeds or invest it in the stock market , it would not be that difficult to put the money to work and derive an income from a sum like that
 
Introuble83 said:
Slightly off topic but I hear constantly on AAM about education funds for kids . I don’t get it . Fees are circa 3k a year .18 year olds and over should be working part time to fund their social life’s . Vast majority of students are within traveling distance of a university. Why on earth are folks savings crazy amounts for the kids to go to college ?
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Agreed but Mammy did all that part time work, lived in damp flats , got out with a PhD....and decided not to let her/our children suffer the same.

She earned that money and still does, and she can use it as she wishes its post tax .

I find it incredible that people find it incredible that people who work hard decide to make their children's life easier.

Thought that was the idea of being a parent.
 
Introuble83 said:
Very commendable no doubt . Should be better long term student loans to facilitate such scenarios . If someone is re mortgage a house to fund college SUSI is obviously not an option for them
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Why? Apparently its €3k a year in college without Grant's. Who needs to remortgage a home to facilitate a 3rd level education in Ireland?

In the US its different but this is Ireland.

What's SUSI?
 
garbanzo said:
I guess it’s fine if you are like us. UCD is two miles from our door. Kids went to private schools with big fees. So, them going to College actually means we are saving money.

It’s a different story if you are from Donegal, Kerry or Mayo and your kids want to do the same course. Accommodation costs are a killer. In my job I sign off on remortgaging applications for folk (in their 50s) from these counties who are borrowing to put their kids through Third Level. A hard ask and fair play to them
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So, why are they sending their children to 3rd level?
 
My friend has four children.

He tells me about the college costs.

During the highest cost year, three of four were in college at same time, all in Dublin I think.

That year cost him 41-42k.

9k in fees plus 3x Dublin accomm bills.
 
Paul O Mahoney said:
Why? Apparently its €3k a year in college without Grant's. Who needs to remortgage a home to facilitate a 3rd level education in Ireland?

In the US its different but this is Ireland.

What's SUSI?
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Google is your friend Paul.

susi.ie

Student Universal Support Ireland [SUSI]

Student Universal Support Ireland [SUSI] is Ireland’s national awarding authority for all higher and further education grants. Applications for student grant funding can be made from early April to early November for an academic year. Check the SUSI Eligibility Reckoner to get started.
susi.ie susi.ie
 
Protocol said:
My friend has four children.

He tells me about the college costs.

During the highest cost year, three of four were in college at same time, all in Dublin I think.

That year cost him 41-42k.

9k in fees plus 3x Dublin accomm bills.
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But country people are quids in on much cheaper outlay on mortgages compared to Dubliners. But they don't put away the difference in their lesser mortgage payments to soften the blow of putting their kids through college "up above" in Dublin. So I dont have much sympathy for country folk when they moan about outlay for their kids for Dublin accom etc. Its tough but so it is for a Dub paying a Dublin property morgage for 20-25 years.
 
Rather than making sweeping generalisations, it’s probably better just not to make assumptions based on appearance.

Some people appear wealthy but aren’t. Some people don’t appear wealthy but are.

I do think it’s better to strike a balance and enjoy success though.
 
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To go back to the original point; I think a lot of people are guilty of lifestyle creep. If you can possibly afford it you should get it.

That coupled with very effective marketing and well trained sales people; you may end up buying the Audi when the Skoda did everything it could do, and met all of your needs. Then if we can afford the nice Audi why not get the Mercedes? May as well get the 19 inch tyres and leather seats etc.

Then the method of payment is swiping a card or doing an online transfer. If you have to go to the ATM or bank and physically saw the €100,000 you had to hand over for the fancy car, I think most people would pause and have a reality check.

But to each their own....

Some people like fancy clothes. Some people shop in Michael Guineys. Some have several expensive watches, some have a swatch, some use Nivea, some use Clinique.

I have to earn around €166 to pay for something that costs €100. I would not buy a €166,000 depreciating asset that is guaranteed to be worth nothing in time (classic cars excepted here)....
 
872117 said:
To go back to the original point; I think a lot of people are guilty of lifestyle creep. If you can possibly afford it you should get it.

That coupled with very effective marketing and well trained sales people; you may end up buying the Audi when the Skoda did everything it could do, and met all of your needs. Then if we can afford the nice Audi why not get the Mercedes? May as well get the 19 inch tyres and leather seats etc.

Then the method of payment is swiping a card or doing an online transfer. If you have to go to the ATM or bank and physically saw the €100,000 you had to hand over for the fancy car, I think most people would pause and have a reality check.

But to each their own....

Some people like fancy clothes. Some people shop in Michael Guineys. Some have several expensive watches, some have a swatch, some use Nivea, some use Clinique.

I have to earn around €166 to pay for something that costs €100. I would not buy a €166,000 depreciating asset that is guaranteed to be worth nothing in time (classic cars excepted here)....
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" lifestyle creep "

terrific term that
 
deanpark said:
But country people are quids in on much cheaper outlay on mortgages compared to Dubliners. But they don't put away the difference in their lesser mortgage payments to soften the blow of putting their kids through college "up above" in Dublin. So I dont have much sympathy for country folk when they moan about outlay for their kids for Dublin accom etc. Its tough but so it is for a Dub paying a Dublin property morgage for 20-25 years.
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Not always the same earning power in the country in the first place so no excess to put away. I worked in lending not in major cities or big town, mainly small town and rural customers. Anyway when sent on training courses to Dublin it always fascinated me the salaries that were pre populated on sample income certs for mortgages. I remember in particular a salary of 70k (many years ago) that training companies either in house or external thought was 'average' on a mortgage application! In my day to day experience I would seldom have seen that figure as a joint income not to mind sole income especially from employees.

Equally now when I read many of the finance threads on here I would just love to ask 'what is your job', the salaries are eye watering to me who still lives in same small town and doesn't know anyone on that sort of money, I know my daughter's friends who are in the 30/40s age bracket at this stage and there are some good salaries but nothing near the over 100k. I know one in her circle in that bracket who is in a very specialised area and is self employed.

So while housing is obviously way more expensive in the cities it's not comparing like with like to say the cheaper houses in the country give those people way more disposable income to put away to pay the college costs.
 
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