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Spending less than you earn, it’s the most important concept.

Discussion in 'General Chat' started by Value Collector, Oct 31, 2019.

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  1. Value Collector

    Value Collector Have courage, and be kind.

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    I was recently asked why I only spend 50% of my earnings, this seems super conservative to some people.

    But, I am traveling through the U.K. at the moment, and came across a stark reminder of the importance of spending less than you earn.

    Today we toured Lowther Castle, which was one of Britain’s most expensive and stately homes, home of the earl of Lonsdale, who had vast fortunes in farmland, forestry, coal mines, and London property.

    However Lowther castle now stands in ruins, after the 5th Earl of Lonsdale, squandered the families resources, living well above the earnings of his fortune.

    The 8th Earl is currently trying to rebuild, but the damage done by the 5th Earl is huge.

    ————

    Watch this video and see the below photos to see what spending more than you earn can do.

    The 5th Earl decimated the family fortune to such an extend, that in the 1940’s, their castle had its roof removed and was left to ruin.

     
  2. Value Collector

    Value Collector Have courage, and be kind.

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    58CC943B-2485-4AEC-AF18-5D0988206B71.jpeg E2FAC7F8-2AC7-4DB1-8B53-FD602F72F5F2.jpeg 81E6B2FC-F1D1-4B85-A0A4-1C0B7344845D.png 492E0841-3D5B-4D26-AC9B-8243DA9E98B5.png
     
  3. PZ99

    PZ99 ( ͡° ͜ʖ ͡°)

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    Nice pics :)

    Just one thing VC.... to spend less than you earn, you must earn more than you spend.

    Some low income earners can't do that - especially when they're renting.

    That's why the franking credits and penalty rates were so important to some people.
     
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  4. Value Collector

    Value Collector Have courage, and be kind.

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    I believe there is very few people that can’t live on less than they earn.

    and, I believe that there is very few people that can’t live on less than they earn, that couldn’t earn more if they tried.
    ———————

    however, my point was not about those unfortunate souls among us that through misfortune, injury or disability are faced with being relegated to the low income status and welfare lines forever.

    I am talking about the other 90% of us, who’s future quality of life will be determined by the amount we spend or invest each week.

    ——————

    The example I showed above is just an example of regardless of how rich you are, or how much you inherited or won in the lottery, if you consistently spend more each year than you earn, you will exhaust even the largest fortune.
     
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  5. SirRumpole

    SirRumpole

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    It's just commonsense isn't it ?

    If money out exceeds money in then you are heading for trouble. Weird how so many people keep getting caught in the debt trap.

    Pity to see such a heritage building go to waste , but there are quite a few of them going the same way I believe.
     
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  6. Value Collector

    Value Collector Have courage, and be kind.

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    It is atleast good to see the current Earl is doing a great job at rebuilding both his
    families fortunes and this estate (slowly) to its former glory.

    He has refurbished the left wing of the ruin into a nice visitor centre and cafe with a display about the rise and fall of his family.

    And slowly is refurbishing the vast surrounding gardens, it took me and the wife 4 hours to walk around the estate, some of the Gardens are beautiful, Some are wonderfully ruined versions of their former self.

    In their worst times right after the bankruptcy, the front lawns of the castle were converted to a pig farm, and large scale chicken sheds were in the rear.

    But piece by piece they are turning it back into a great garden estate, a beautiful venue.
     
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  7. sptrawler

    sptrawler

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    Spending less than you earn, as you say it is the most important thing.
    Unfortunately that is the very thing that advertising, peer pressure and even politicians, DON'T WANT YOU TO DO.
    With the advent of easy credit, the only thing that stops a person from spending more than they earn is self discipline and that is one of the most difficult things for an individual to do.
    That is why most don't achieve financial independence.
     
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