Tuesday, September 22, 2009

Irresponsible Handouts

Verity Firth (NSW Education Minister) is preaching:

“We're committed to ensuring that our processes are followed right down to the school level so that everything's being done correctly and no money is wasted.”

Anthony Albanese (Federal Infrastructure & Transport Minister) is not apologising:

“We make no apology for acting early and decisively to insulate, to project Australians from the impact of the global financial crisis”


Only problem is that some schools don’t want the handout if it means having infrastructure thrust upon them, especially if it is not needed.

Baulkham Hills North Public School was one example in the news this week. They have been told they are getting a new hall costing $2.45million that will only house 50 extra people, leaving about 400 student with nowhere to sit. Due to strict deadlines if work doesn’t start by December 1st they risk losing the money all together.

Decisive or irresponsible?

It is fair enough having a strict deadline for such projects because otherwise nothing would ever get done. But if the spending is irresponsible to begin with then what does it matter about a deadline. For a real stimulus to work the infrastructure has to be needed and be of benefit to the public. In the above example it is obviously neither.

The buzzword came out via Kevin Rudd about having shovel ready projects. “Shovel ready” gives me the impression that all the problems we are now experiencing had long been ironed out, not so. So were they “shovel ready” to begin with, I think not.

What is the real motivation behind the program anyway? Well I think the massive signage erected alongside new building projects might give you a clue. But what schools are showing is that common sense does sometimes prevail and that political allegiances cannot be bought by throwing away huge amounts of cash.

Wednesday, September 09, 2009

Ignore Their Figures

There are so many figures from different agencies used to describe the state of the nation’s economy. Some give a positive outlook, others a negative outlook. It appears that you can grab figures to suit whatever your argument might be at any given time. Sometimes the same statistics can be used to tell different stories. The actual state of the economy is anyone’s guess.

It’s time to ignore the lot from now on, and forget those you may have already heard. I agree with the Barefoot Investor when he featured on channel 10’s ‘7pm Project’. He suggested focusing on your own household budget.

So how is the household budget going? Do you have one for starters? Spending within your means? Able to save and invest?

Work on this and it won’t matter what any politician might say. Your household budget should be able to withstand any crisis.

Wednesday, September 02, 2009

Stupid Man + Stupid Woman

Here is my simple mathematical equation for the week.

Stupid Man + Stupid Woman = Extra Marital affair

He’s stupid
  • Thinking he can get away with it – these things always catch up to bite
  • Parading around in public with his mistress – trophy girlfriend
  • Bragging about his exploits to his colleagues
  • Promising to leave his wife for her – was never going to do that
  • Boasting his political aspirations to her
  • Risking those aspirations for a fling

She’s stupid
  • Jumping into bed virtually straight away – doesn’t everybody these days?
  • Appealing to his giant ego
  • Acknowledging the existence of a wife yet continued anyway – for six months
  • Believing that he will leave his wife for here – not thinking that if he leaves his wife what will he do when he’s tired of you?
  • Describing him as a “spunk” “hot” and “sexy” – she must be delusional

Nothing New

I was interested this week in Monday’s Daily Telegraph (31/8/09) to read one of their feature articles in the ‘Your Money’ section about how to get on top of debt. I felt I was already on top of my debt and didn’t feel like I was drowning under the mortgage and car loan. I thought there might be something new being said that could be applied to my situation. Instead it was the same advice people have been giving for years, it’s just that no one has been listening. Now they are forced to listen as they deal with financial hardship.

The advice was:
  1. Get rid of bad debt. Well I don’t have any so I have no worries. They consider bad debt to be personal loans that incur high interest.
  2. Get rid of other debt. Believe me I’m all over that. Lump sums come off the mortgage quite regularly.
  3. Don’t get into bad debt. Sounds pretty basic doesn’t it? Yet to many people are sucked into interest free periods by the big retailers. Then if they can’t pay the amount in the prescribed time then they are given a rude shock when the have to pay a ridiculous amount of interest.
  4. Use debits cards instead of credit cards. Have seen more ads for these cards now. Perhaps banks are getting slightly more responsible. Debit means you’re spending your own money and therefore have to show a bit more restraint when it comes time for purchases

Simple advice. Get a budget and spend within your means and financial hardship will be given the boot.