Tuesday, 20 May 2014

Hockey's Budget - Ok by me.



It is absolutely no secret that I am a financial idiot. I am a just middle class girl with an overused credit card, who has nearly always bought what I want when I want and worried about paying for it later. Yes, it's true, Steve has reigned me in somewhat in the last 10 years. I have worked - sometimes hard and sometimes not, and spent every penny I earned. My super, thankfully compulsory, is my rainy day account.

I am also not a stupid woman. I easily see that there are things that I just can't have cos there is not enough money. I can't head off at a moment's notice to somewhere exotic and not just cos of Dog. Money needs to be sourced and plans need to be made. I certainly do not expect some stranger to come along and hand me some cash so I can please myself.

Back in my single days when I my mortgage was running at 19% interest, I worked 2 or 3 jobs just to make the repayments. When things eased off and house prices started to climb, I was able to borrow a little pin money from time to time and add it onto the mortgage, but I always had a big chunk of equity in my house. Yeh I sometimes fudged the truth and the money for painting or extensions or repairs was used for holidays or new shoes, but that was my choice. Belly and I went on holidays rather than put in a new kitchen, which was no hardship for me cos I don't like to cook anyway. The mortgage was the first bill paid and when the rest of the money was spent we ate eggs and watched poor tellie until the next time I was paid. It was all quite hand to mouth but it seemed to work.

Nothing for nothing. Money was borrowed and only to a point of affordability. I was thrilled when I became mortgage free. Yippee! My money was all mine to spend as I wished and boy did I!!

Anyway the point here is that the Aussie Budget is getting a bad rap at the moment and whilst there are bits of it that don't seem fully resolved I can't see why it's so terrible.

Running the country must surely be done on principals similar to running your household. It's dangerous to spend more than you earn unless you are going to borrow from shysters at obscene rates cos you plan to do a runner and change you name, which is possible if you are some crook, living in a caravan, but more difficult if you are a fully fledged westernised nation.

Money is FINITE.

When I was married and we went from 2 wages to 1 and increased the number of people spending it by 50% we would pay all our bills and put the rest of our cash into a cigar box. No I am not making this up!! When the money was gone it was gone!!

Australia just cannot afford to keep paying out and paying out and paying out. Treasurer Joe Hockey says that the government spends more on Welfare than on education or health or defence. Something just has to give.

The welfare mentality needs to be replaced.

People should not expect something for nothing.