By Amanda Morrall (email)
1) Time outs
Turning 40 has got to be bad enough without the added insult of being fat and then getting fired. But for Nigel Marsh, this trifecta of deflating f's proved a miracle in disguise.
When the high flying corporate exec was turfed from his perch, he didn't drown his sorrows in self-pity and triple decker cheeseburgers, he used his forced time out to save his marriage, get to know his kids, shed 40 pounds and translate the experience into a bestseller "Fat, Forty and Fired." Beautiful title.
Marsh's story is relayed in this article from the Globe and Mail. Marsh makes a similar pitch to economist Umair Haque (whose blog I linked to yesterday) about society needing to rethink and restructure work/life balance so that we begin to restore value to the relationships that count most of life. He suggests flex-time and alternative work arrangements, and job sharing be given greater consideration.
“The main lesson would be how sad it is that so often it takes a redundancy [job loss], bereavement, divorce or injury to get us to pause and reflect upon our lives and how we are living. The simple fact is that life is about human relationships. Having a successful career but a lonely old age full of regrets is not the way to go, yet so many fall into that pattern,” he says.
2) Bear markets
“We hear stories of people losing their jobs and finance companies still expecting them to repay their loans at the same rate. In other cases finance companies are repossessing vital household items, despite consumers only taking on loans of $1000 or less. This type of behaviour is not okay. With 0800 LOAN STRESS we are empowering people to make a complaint and seek protection when they are getting a raw deal from loan providers.”
Kirk Hope, executive director of the Financial Services Federation, recommends borrowers who find themselves in trouble financially talk to their lenders in the first instance as they could avail themselves of budgeting services to offset the loan stress.
According to the Ministry, the "Government is continuing to look at ways to protect borrowers from unscrupulous lenders, and last year announced an overhaul of consumer credit laws to further increase consumer protections. Proposed changes include new responsible lending requirements, amendments to the oppressive credit contracts and hardship provisions, and restrictions on financial providers who do not belong to an approved dispute resolution scheme."
4) Pay your fines
In in other ministerial news, starting next week the Ministry of Justice will begin releasing to credit reporting agencies information on overdue traffic penalties. Credit reporting agencies in turn will supply the ministry with contact details of debtors so they can be hunted down for payment.
By coincidence, I arrived home last night to a white enveloped from the Ministry of Justice confirming all this as I'd forgotten to pay some parking tickets. Yes, I know not a good look for personal finance editor. At least I wasn't speeding.
If I get it sorted swifted, I should be able to protect my clean record from any unsightly blemishes.
Also from April 1, I'll be credited for prompt payment of bills, rent and other financial transactions that have until now been excluded from one's credit profile as the country switches over to a positive credit reporting system.
5) Coffee crutch
And lastly, here's a confession from a fellow coffee addict who dutifully captured through a budgeting app called Datum, all his coffee splurges for 2011. After reading it, I actually felt like quite virtuous as I'm no where close to his record of 446 gourmet coffees in one year. Yikes!
To read other Take Fives by Amanda Morrall click here. You can also follow Amanda on Twitter@amandamorrall
15 Comments
4) Reminds me of a budget advice session I did for a couple a few years ago. I asked the wife how many coffees she had a day from the cafe. She said 3/4 a day @ $4 a pop.....I said that's cost you around $3600 a year.....the husband nearly fell off his chair.
Next came the dreaded question about how much she spent at the hairdresser :-)
I love these posts by the way. Who would have thought the tag "yoga" would appear on this website. I'm just imaging Bernard limbering up for a morning office yoga session!
Well, there has got to be exceptions. My mum always used to cut my hair, and now hubby does. On one occasion I didn't speak to him for a week afterwards (we were in the UK, I think he misunderstood cm for inches).
But then again, the one time I went to a nice hair salon and asked them to do something nice with my hair, I came out looking quite like a poodle (I'm not a dog expert, but I reckon that's fairly accurate and achieving that look with long hair is quite a feat). And I paid a lot for it too! Needless to say, I like hubby hair-cutting skills better :) As for shopping, I admit to buying books online, a fair amount of them but I blame that on raising bookworms (and we don't have TV so I rationalise that I'm in fact using my unused "Sky" allowance)... Apart from that I have shoppingmallitis (some sort of allergy that occurs within 30mn-1h of entering a packed mall, so a trip a year if needs be is more than enough for me).
I guess the downside of country living is the distance to a library. I think they are a great resource considering everyone pays for them, but only 3% of the population use them. Bonus is they seem to always have older books for sale at a $1 each, so I have run out of book shelf!
Trademe might also be good for books, although I have never tried. My Dad regularly walks through his local second hand book shop.
We do have a local library. Small obviously, but good enough for the kids still. We also have a library at home and apparently need to fill up every shelves, and there are lots of shelves.
Yep, Trademe is where I mostly buy the books. Just got 28 for our 7yo in the last week, at about $2 each, normally about $15 each so it's not too bad. My fault for having given them the habit of getting books when they do well. Not so good for my purse when they all do well a lot!
I'll wait another 3 years or so before reading the FFF book but spending winters in France is an idea we've toyed with, and the fx rate is certainly to our advantage right now. A few tiny downsides though: I don't like flying (or rather, I don't like the possibility of crashing and not being able to do a thing about it); tickets for 7 people are expensive even with child/baby's fares atm; and then there's the small detail of school & work which wouldn't be too much of a problem with the kids still young & self-employment but still something to consider.
As for living sensibly, I'd say you're right except for the fact that we are saving for a pool *cough*. But then again, considering the crap saving rates, inflation and small possibility that (according to some at least) the banks could well steal people's savings in the event of a crash, I reckon we might as well spend it. And I do swim a few kms a day and the kids are into it too. Nothing like rationalising, right :)
Amanda someone told me years ago that if you need to settle a debt of to IRD or the Courts then you can do it by drip feeding weekly. By statute the minimum amount you must contribute is "legal tender". Coins are not legal tender, but notes are. Therefore you can do a minimum of $5.00 per week. It works for traffic fines, I have tried it myself for that rare occurance. Just be a little creative when they ask your income and expenditure:-) Just remember when you are dealing with them on the phone, that you are talking to someone not smart enough to get a job anywhere else.
This is absolute nonsense. Legal tender simply menas a creditor cannot refuse payment by this method (compared with say credit cards, cheques or debit cards which they don't have to accept). Silver coins are legal tender for debts of up to $5, Gold coins up $100 and notes for any amount. Any minimum installment payment for fines is purely a policy matter for the MoJ, and has nothing to do with 'legal tender'. Oh and making a false declaration about income and expenditure is a very bad idea, especially if you do so in writing.
You sound like just the sort of person to work for one of these outfits. The difference between you and I is that I was trying to be helpful. Parking fines are one of the most moronic schemes ever though of, so I am happy to try and help Amanda, or others, ease the pain. Quite frankly I wouldn't want to go anywhere that invovled paying for parking, but that is a personal choice.
But you actually prove my point despite your claims. If Amanda wants to pay her fine off and it is over $100, then her minimum obligation is $5.00 per week. IRD and MoJ are just creditors like anyone else, Policy and Statute are different beasts. My terminology might have been wrong, afterall it was 20 years ago, but the application is correct. I know it is because I have done it.
Now on making a false declaration, well if they are happy to conduct information gathering over the phone then good luck to them. Income and expenditure can be a fluid thing, so it is your choice to call it at the highs or the lows.
How is spouting off incorrect nonsense helpful? I didn't prove your point at all. I have no idea what the MoJ's minimum installment payment is and clearly neither do you. It has nothing at all to do with the ide of legal tender.
It's also plain wrong to say the MoJ and IRD are just like any other creditor. Can any other creditor have you arrested for non-payment, seize all your financial records (and whatever they're stored on), and prevent you from leaving the country?
You're right that there's nothing wrong in being conservative (but truthful) about your current means. The inference I drew from your original comment was that you were advocating flat-out lying to them.
I don't like parking fines either, and also go out of my way to avoid them, but if I do get tagged (which so far has only ever happened once) I just sulkily pay it straight away.
Yes good point Ivan. During my friendly chat with MOJ yesterday I was informed of the possibility of an arrest warrant being issued, penalities of $120 a pop and some other unpleasant piece of business that's escaped my mind at this moment.
Here's a useful link for anyone else with outstanding parking problems.
So you are a law breaker to then Ivan:-P
I hate beureacracy so promote any opportunity to make it cost more to enforce the fine than it is worth. Set up an automatic payment via internet banking but every so often cancel it so they have to write you a letter:-P Well for parking fines anyway, one of the most idiotic conceptions ever.
I too have been guilty of accruing parking fines, Amanda. In fact I don't worry if I get them-perhaps it is a female perception thing as I know others like myself that are happy to overpark for 30-60mins and run the risk of a ticket. The MOTH is very happy we now live near a town that doesn't have parking meters! ;-)
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