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Newbie pregnant single mum, looking for advice

Discussion in 'Beginner's Lounge' started by shanna33, Jan 9, 2016.

  1. shanna33

    shanna33

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    Hi, I'm 33 with a 15 month old baby and another one due in 3 months. Hubby has done a runner. I have a mortgage and $50,000 of personal loan/car loan/credit card debt to take care of now. I work part time and get Centrelink and sometimes hubby pays his $100/wk Child Support. Sob story over.

    I was wondering if anyone had any advice for me... I can rustle up $1,000 to invest. What is the best way turn this $1,000 into $10,000 quickly? If I could do this five times, it would get rid of my credit card debts meaning I'd have a better chance of keeping up with my mortgage repayments and not losing the house.

    Should I try penny stocks?

    I just signed up with Westpac online investing as i already have a westpac account.

    Would appreciate any help or advice. Baby is due in 10 weeks and I'm pretty stressed out about how I'm going to keep on top of bills, debts, etc. Maybe I'm dreaming about making a quick buck, but I need to find a way forward out of debt which seems impossible while I have 2 babies, a mortgage and a part time job.

    Sorry for the long post... but thanks in advance for your help :)
     
  2. dutchie

    dutchie

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    Hi Shanna

    Welcome to ASF

    $1000 to $10,000 ? More likely it will be $1000 to $0.

    Not trying to be glib but the reality of starting off trading with only $1000 capital as a newbie is a recipe for disaster. Don't even think about it, it will only end in misery.

    Put the money in a bank account.

    Sorry if I've busted your bubble.

    I suggest that if you have time to learn the ropes about share trading/investing , reading some of the threads on this forum will help. It takes a while to know what to do (years).

    All the best.
     
  3. Gringotts Bank

    Gringotts Bank

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    If you're already stressed about money, you probably won't have the mindset required to trade well. Confidence is essential.
     
  4. McLovin

    McLovin

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    Sorry to hear of your predicament, sounds like a really tough spot to be in.

    Unfortunately, as dutchie has already said, your plan is totally unrealistic. If it was that simple to turn $1,000 into $10,000 everyone would be doing it.
     
  5. againsthegrain

    againsthegrain

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    The best advice would be to try downgrade/size everything and put everything towards paying off the debt you have.

    Don't know the situation but 3 bedrooms can be easily downgraded to 2 or even 1 with 2 babies, same goes for car, location etc

    Buying penny stocks and other risky investments especially for a newbie with 2 kids is too much risk.

    Maybye you already live in a 1 bedroom flat with a old corolla so hard to say, but unfortunately have to make compromises to make ends meet in such situations as yours, there is no quick easy money/answer
     
  6. Klogg

    Klogg

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    To be honest, speak to your bank/lender. You should be able to put a hold on any interest that is being charged due to financial hardship, whilst you start hammering down the amounts owed on the credit cards.

    That, along with cutting back on anything that's not necessary would be ideal.


    Attempting to make $10k from $1k is extremely dangerous.
     
  7. shouldaindex

    shouldaindex

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    Am I the only one who doesn't think this situation sounds THAT bad (making some assumptions too)?

    http://www.humanservices.gov.au/customer/services/centrelink/financial-information-service
    http://salvos.org.au/need-help/financial-assistance/financial-counselling/
    http://www.moneyhelp.org.au/

    I am glad you've asked this forum and not some others, because there are people probably on there who have taken the gambling route, and are now at desperation point where they need whatever they have bet on, to come good or you can imagine. They then spend all their time trying to talk others into getting into their position, so they can use them to get out.
     
  8. howmanyru

    howmanyru

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    Agree with everything said above, especially now because the stock market looks set for a downward cycle. Oh, and find a tradie, they are all rich.
     
  9. shouldaindex

    shouldaindex

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    Also think about what happens if for instance you took a 1 in 10 chance, and you lucked out.

    Then what? Do you spend more money on things because you think you've discovered an easy way to pay it all back? Do you start borrowing money working out the sums, if I borrowed 10k, I could turn it into 1 million just by doing what I did twice? Do you end up teaching your kids that their good life is due to gambling?

    So basically if you lose you'll lose, if you win you'll probably lose anyway.

    Management skills are more important than one offs and are in your complete control.
     
  10. skc

    skc Goldmember

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    Sorry to hear your situation. But with informed decision, determination and no bad luck, you will be able to work through it I am certain.

    No. You should not do this. You don't have the knowledge or skills to achieve this... and it's near impossible to achieve even with all the skills and knowledge in the world. You are better off keeping that $1k up your sleeve as emergency fund. Put this fund in your mortgage offset account should offer you the best combination of return and availability. This assumes that there is no complications with the title of the house etc between you and your run away hubby.

    What you need is a plan and a set of actions to increase income and reduce expenses.

    Increase income
    1. Find out from Centrelink your entitlements with 2 babies. Make sure you start to receive any higher payments as soon as the baby is born.

    2. Find out if you can receive higher child support from the runaway hubby now that there are two (assuming he's the father to both). Also find out if there are things the family court (or whoever administrates the court's decision - child support agency?) can do to make sure child support payment is made consistently (e.g. automatically taken out of his pay). I am not so sure about the second else there wouldn't be so much dispute.

    3. Extend your working hours. Without knowing what your part time job is... can you work extra 30minutes / 1 hour per shift? If you can do this you can increase your income without increasing too much costs (like travel costs to work, daycare for children etc).

    4. Can you work extra days? Often cost of childcare makes any additional income after tax quite minimal. But perhaps you do some babysitting at someone else's house while bringing your own children along? I have used a single Mum with a 3yr son to look after my young daughters and it actually worked quite well for all parties. Post yourself on Gumtree etc and build a network of potential clients.

    5. With your hubby gone can you sub-let a room in your current residence? Both babies are young enough to be in the same room if you just have a single bed. Obviously it may be hard to find someone who's tolerant of baby noise.

    Reduce expenses
    1. Reduce living expense. Without knowing anything about how you spend, there is usually some discretionary items. It will involve some sacrifices but you need to do what you need to do. If you smoke, buy lotto tickets, have daily coffee etc, these are the low hanging fruits. Shopping at Aldi is known to be cheaper than Coles or Woolies so another low hanging fruit if you don't do it already. There are probably heaps of resources on the internet on how to be frugal - look them up.

    2. Get secondhand or free stuff, esp for babies. Lookup freecycle network in your suburb.

    3. Leverage your network (family, friends, co-workers). May be they can babysit for you once a week for free... even just for a few months. You can save childcare costs and be free to work more. Or you can offer them payment-in-kind, like look after their kids on a weekend, do some house work etc?

    4. Reduce your debt costs. Credit card debts / personal loans are most expensive, while mortgage debt is most important. Look for opportunity to consolidate your debt. May be you have equity buffer in your house your can draw down - don't use it all up as you need it for backup, but may be use some to pay back the more expensive loans so your total interest cost is reduced. Also, if possible, get a 0% interest credit card (usually introductory offer for 12 months on balance transfer) but make sure you are discipline enough with your credit card use.

    5. Downsize / sell your house. It may be a bit drastic but if your current place is no longer suitable to your needs / circumstance, there is nothing wrong with making those tough decisions.

    You might want to ask more detailed questions (like should I sell my house) with more detailed information to aid you in your decisions. Once you have your debt under control, you will then be in a much better position to think about investing / growing your capital.

    All the best and hope all goes well with the birth etc.
     
  11. qldfrog

    qldfrog

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    nothing to add to the previous advices, if you get any cash, cut the credit card debt , minimise costs and do not even think throwing your money away in an investment scheme, please please please to not be scammed if it is too good, it won't happen...Good luck and try to find a Mr right or at least Mr OK ASAP; sharing within a couple especially with kids helps a lot $ wise and of course mentally
    Genuinely wishing you the best
     
  12. Wysiwyg

    Wysiwyg Everyone wants money

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    Beats me why women hook up with losers when there are good men with healthy incomes that are caring and make great fathers but have no one. :( skc has some great advice (obviously a good man).
     
  13. shouldaindex

    shouldaindex

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    Great post skc.
     
  14. GlobeTrekker

    GlobeTrekker

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    Yep, all of the above. Your first priority money-wise should be to get rid of your credit card debt at the very least. I'm guessing you're paying around 15% interest on that. If you choose to invest in shares rather than paying off your credit card debt, you'll need to earn more than 15%pa consistently on them to be better off. As a newbie its highly unlikely that you will be able to achieve this, other than by sheer luck. If you're chasing penny stocks with no experience whatsoever, you might as well head to the casino and put everything you have on black.
     
  15. shanna33

    shanna33

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    Thanks for everyone's input. I guess it was a bit of a silly pipe dream. I've already done most of the practical things like Centrelink, child support, 0% balance transfer and taken in some boarders and bought baby stuff secondhand from facebook. So that just leaves sricking to my budget and using the "stack method" to pour all my spare cash onto one debt at a time.

    I'd like to think there are still some good men out there who'd like a family but for now, its up to me to look after my little family and maybe one day we'll find a nice step-dad to join us. My crystal ball must have malfunctioned when I married my husband. Oh well.

    Thanks guys.
     
  16. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Did you ever think that the women (not saying in this case) could be the bu**hole? There are two sides to every story. :2twocents
     
  17. shouldaindex

    shouldaindex

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    Good luck Shanna.

    You'll be raising 2 kids that the rest of the world will have to deal with at some stage, so we all have a stake in how things go.
     
  18. Faramir

    Faramir Very New Investor

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    Hi Shanna33

    I can't add anymore, especially to skc's post. I can say some of the strongest women I know are single mothers. Also some of the dumbest single mothers I know are those who think that they must have Mr Right (now) or they cannot tolerate being single or even worst, go from one abusive partner to another abusive partner: keeping their children trapped in the cycle of violence.

    Yes, you are about to face some of the toughest periods of your life. Yes, it will financially extremely hard. What has not being mentioned is how much tougher it will be emotionally. You will have guys hitting on you because they will think that you are "available". Your ex will cry poor, maybe try to be emotionally manipulative or even worst with the endless mind games. There are lots of horror stories out there.

    I really should say nothing because I know nothing about your relationship with your ex but more importantly: your relationship with yourself. My girlfriend had to remain single for over 5 years before she worked out who she was and what boundaries she would set herself. (This sounds simple but it isn't when you coming out of a relationship.)

    You could tell me to mind my own business and this is irrelevant to trading or investing. The point I believe is that anything that is money related carries lots of emotions. When I read some of my previous stocks picks that turned out really bad: I could see how emotionally immature I was. If your emotions go up and down like a yo-yo due to life situations and I guarantee it will: it makes you much more prone or desperate to find an easy fix, a quick gamble or making a really dumb mistake.

    I know your kids will become beautiful people. Cherish the relationship you will have them. I have read sayings where single mums prefer a life of struggle rather than concede control to a man. A man will not fix everything. There will be moments of joy, moments where you treasure your independence. This is where you can rational decisions to invest not just money but other things that money can't buy, into your children but more importantly, invest in yourself.

    I am only beginning my investment journey. The experience members can add much more than I can. There are some brilliant posts in this Beginner's Section. Please have faith that things will work out well in the long run. Show your children the true beautiful person that you are.
     
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