(03) 9020 2905For curly money questions, I seek higher authorities – Professor Google, Rosmerta and Warren Buffett.
But still, the internet, the Celtic goddess of wealth and the Oracle of Omaha simply can’t answer everything.
What perpetually mystifies me? Taxes, over-spending and financial arrogance.
Tax. Seriously! Governments globally are incredible at imposing taxes. But they’re even better at spending it.
The Australian Government will raise $376 billion this year. From just 23 million people (plus businesses)? But there will still be a deficit of $18 billion.
How can there not be change left over? Where the hell does it all go?
Number two is similar, but for households. Understood, many households truly struggle, because of an honest shortage of income. But what about the rest?
Far more households do earn enough money, but simply make dumb choices. Year after year, they get caught in an ever-deepening consumption hole.
How do you start to dig yourself out of a hole? You stop digging. The first rule of finance is “delayed gratification”. To create wealth later, you must spend less than you earn now.
The third is financial arrogance and selfishness. Too many people selfishly refuse to make smart choices, such as insurance, believing if their world falls apart, taxpayers should pick up the tab.
If people don’t insure their home, contents, car, income, life or health – because they would rather spend their money on something else than “waste it on insurance” – then why is it then left to others, who have paid for insurance, to pick up the tab? How’s that fair?
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.