Budget

Questions like...

Do I actually need this? Or will I still want this tomorrow? Is this in my budget? What goal does this purchase compete with? And am I buying this because I actually value it or because I'm bored, stressed, tired, influenced, or just trying to feel in control? The pause is where your power is because when you don't pause, your money just follows your impulses.

But when you do pause, your money starts following your priorities and your decisions.

That is true wealth building behavior.

Okay, frugal habit number two, having a plan for income before you get it.

This second frugal habit is planning your spending before the money comes in.

And this is where budgeting, I think, gets a rebrand.

You already know I love budgeting, but this is where budgeting really comes into play.

all right okay 6 30 and i promised that we would start on time so i'm really quite excited uh today because you know if you're on this on this call you know that um the federal budget uh happened a few months ago and really kind of put a bit of a bomb up into the property market and really kind of well affected investors in in many ways um and so uh And so what we're seeing is that essentially people's borrowing capacities were really hampered because essentially what a lot of people found is that pre-budget, they could maybe buy something for 800 grand.

Post-budget, they were told they could maybe only buy something for 550.

And a lot of people went, oh, I'm not going to bother.

Then what am I going to get decent for 550? but what we're finding right now is that the banks are changing the way they are doing people's borrowing capacities and look i'm a buyer's agent you know that so i'm not a mortgage broker but that's why i'm really excited to have um aaron fooder yeah aaron's been broking since 2015.

So everything's become a little more specific.

But in this case, again, same thing, although we've got that existing one with the gearing position, we're still getting different results.

So pre-budget, we're at about 805, Post-budget, for that period, post-budget, pre-neutral gearing, we're sitting at about 600 extra borrowing.

And in the neutral gearing position, we're sitting at about 705.

But what are-

But the, the truth here it is-

Budgets, budgets are enormous.

Like, they are so enormous.

They're, they...

What I told people to book a meeting about in May, and it's still real, from the 1st of July 2027, there's a three-year window closing on the 30th of June 2030 to move everything out of the trust without capital gains tax on the transfer, usually into a company or a fixed trust.

And this is broader than we said on Budget Night.

It is, and I'll correct myself.

In May, I described it as relief for small businesses.

Are they working as closely as they should be? You say it's important the government works as a team, but, you know, there's very different messages there coming from Jack Chambers and Simon Harris, you know, working closely on the budget.

And it's not the first time we've heard different messages from Fine Gael and Fianna Fáil on some budget measures.

How united is this coalition really going into Budget 2027? And is there still a lot more backroom heated discussions or horse trading to go on before the 6th of October?

As you're well aware Alan there's a lot of issues out there to be dealt with.

And it's important that those issues are dealt with as good as possible.

As you're well aware, and the Tarnas team said this morning, He's not making any announcements until Budget Day, and hopefully what's announced on Budget Day will be positive for families going forward, who some of them are struggling at the moment.

You've just mentioned there that those middle, the squeeze, so-called squeeze middle, middle income earners would have been disappointed with the budget 12 months ago.

Who's going to be disappointed by budget 2027? Because there'll be some people who will say, well, why should a worker earning 50 grand get a tax cut when someone on a lower income who isn't paying much income tax gets little or nothing from that particular measure? Are they going to be the ones who will be annoyed in the aftermath of the budget announcement?

But a car is not... is not an investment.

Now, one word sort of puts a little bit of a twist to that.

You put in what you've got here, you put the idea that it's a reliable vehicle.

When my cars get to where they're not reliable, you get in, try to crank them, and they won't crank up, and we take really good care of them.

But be careful for how much money you spend on cars because they are a depreciating asset, not what I would consider a real investment.

OK, so and maybe a better way of framing that then would be like some of the things that we have.

And maybe I was thinking even You know, trying to kind of word that into the reliable transportation, but it could be like a classic car, for example.

You know, we consider that as an investment or it could be, you know, like boxes of old baseball cards.