A couple of emotions

This week, I had to visit the UK on very short notice. The reasons for the travel is not important to this story except that it put me in a couple of situations that evoked some strong emotions.

I was at Dusseldorf Airport, and was in the queue at the checkin desk. In front of me was a group of elderly Germans. They must be visiting the UK as a group. They were look quite happy and genuinely please to see each other. It looks they have seen each other for quite a long time. As I waited, another elderly couple joined them. They greeted with open arms and hugs, and immediately started to talk. I thought this is OK as they seem to be travelling in a group. However, when the last of the group has finished with the airline officer, the newly arrived couple walked the counter and proceed with the check in procedure. That action caused me to feel angry as I felt the order of things being upset. The fellow that is waiting behind me also voiced his opinion about the situation, which the elderly couple ignored. I can feel my emotion rising, and even proceed to give the elderly couple a nasty stare. None of their friends mentioned anything. These group of elderly Germans seem to have an air of superiority about them, a kind of "we have lived this life, and it is our turn to be respected and be privileged".  

After a few minutes, I calmed down after realising that there is nothing I can do to change the situation. In reality, the short delay will not make any difference in terms of the overall process of checking in and walking onto the airplane. In fact, they were held up in security check as I walked past them, and onto the nearest coffee house for some breakfast. Maybe karma got its back, in a small way.

The other emotion was when I returned from the UK. As I was waiting inline at the customs, waiting to be questioned by the customs officer. I noticed a couple on the booth on the right. They were going through their papers and pleading with the custom officer that they need a visa for 8 months for medical therapy. The customs officer said that with the evidence provided so far, they are only allow 3 months in Germany. For 8 months, the couple will need to provide further documentation. I didn't think too much about it, until the customs officer told them to proceed to an area where they can continue searching for the necessary documentation. As they turn around, I saw the lady carrying a child in her hands. The child looks to be sleeping, but I am unsure. It sounds like that the therapy could be for the child. The customs officer was kind enough to allow the couple as much time as they need to find the necessary paperwork. At this point, I feel quite upset. This family is so desperate to get help for their child that they are willing to come as far as the border of Germany without ensuring that the proper papers are at hand. They have travelled from Montenegro. I immediately thought about the boat people and asylum seekers that are such big news in Australia. It is so blatantly clear such enforcement at country's borders is so wrong. This situation could be decided if the child receive life saving medical care or be damaged for the rest of his life. For the sake of this family, lets just hope that my speculation is just that, speculation. 

Schuletüte and all that kind of great stuff, part 1

23rd of August is a special in our family. Our eldest son Albert begins the next phase of his life. Today is the first day for his primary school. Well, it is officially the first day, but his first full day is tomorrow. However, lets see about today.

Albert was extremely excited to start his next phase. I think he is also very nervous and eager to venture out into the unknown.

The day started at 6am. That is the usual time for the family, but the kids just sprang out of bed. Usually, we had to coax them out of bed and to start getting ready for the day. Today, we did not have to do much coaxing.

Today, Albert received a schuletüte, or a school bag. This contain special treats for him so that he remembers the day.

After breakfast, we visited the town where the school is located, Witzhelden. It is a nice quaint town about 9 km from our town. We were in a bit of rush as we had to drop Albert's younger brother to Kindergarten. 

The day starts at 8.10am at the local Church. As we arrived at about 8am, any car parks close to church were taken. So we parked close to the school and walk back to the church. Our first thought was that we are going to be late as everything is punctual in Germany. There were about three other families walking towards the church as well, so we just followed them to church and hope that know the time better than us.

The church service was fantastic. Although, it was conducted in German, I was able to get the gist of the service. Basically, the father blessed the children for their schooling career.

After the service, everyone walked back to the school for an assembly in the school hall. The second year students also arrived to do some performances to celebrate this special event. This is nice as it sets the scene for the interaction between the various years of the school.

The principal also made some announcements about the upcoming school year and help explained the performances. All the parents, including us, were very proud of their children starting their schooling as their names were announced.

Albert got a taste of class later in the morning. He had a one hour class session with his teacher. 

While Albert was in the class, the school served out a selection of pretzels, champagne and juice, brotchen and ham and salami. It gave a chance for the parents to mingle. Unfortunately, we kept to ourselves. Our dreaded language and the German social barrier popped up.

This morning, Albert and his classmates were made to feel very special. It is surely a day for him and his classmates to remember.

Being receptive for an Asperger's husband

Since I last asked myself if I have Asperger's Syndrome, I starting to ponder how my life fits into my relationship with members of family, especially my wife.


Being a woman, their emotional needs are typically a lot stronger than that of a man. The needs to be loved and to be attended to are all part of being what I need to provide for their emotional needs. 


The other aspects of their emotional need comes from being receptive to their body language and their emotional signals. The emotional signal is something they project to give me a sense of how they are, emotionally. For example, she could give a particular look to say that I have problems and need someone to listen to when I talk about my problems. Being someone who has some Asperger's Syndrome, I would not necessary pick up to signals. Very often I would misinterpret those signals and arrive at a totally different conclusion.  


Imagine the scenario, I misinterpret the signals, and as a result of the misinterpretation, I apply an incorrect action to it. I know that what I providing could be right, but from my wife's perspective, I am totally wrong. Sometimes, I come across as an uncaring person. This is far from the case. This is totally my problem, and I need to way to overcome this problem.


I have not got a clue on how to overcome this problem. Anyone?

I think I may have Asperger's Syndrome

With all this investigation in Asperger's syndrome, it looks like that I have got a lot of similarities as an person with Asperger's syndrome. I have though my history of when I can remember, and the following signs are definitely Asperger's Syndrome behaviour. 


Typically, I don't really care for much emotional empathy for folks that I don't know. For folks that I know well, that emotional empathy is quite normal. This kinda shows that I have some emotional disconnect with the general population.


I am an engineer, a software engineer at that. Although I don't have an obsession with it, my interest is quite healthy.


I prefer to converse to other folks about objective topics than about subjective topics.

When I talk to other folks, I rarely look at them directly in the eyes. I would start to quite a little bit uncomfortable. I would usually talk to them with my eyes staring into the distance, and glanced at them on occasions. 


The question is whether I should go for an official assessment. I don't really know. What would I achieve. I am just making some sense on this. I shall let you know how I go.

Heart felt

In my small village of Leichlingen, a walk around town  brings us in contact with many interesting people. These are folks with an interesting background and history. My German is not good, and I am disappointed that I won't be able to talk with them,  and to enjoy hearing their stories.

My wife had a serendipitous encounter today. He is a gentleman, always well dressed with a tie and cap. To our children, he is known as "the funny man."  He laughs loudly and waves to all the children as he sees them. Other children are a little bit afraid of him as his laughs are quite loud and he seems to talk in a non-engaging manner. Some would even describe his condition as a little bit insane.

My wife regularly sees him catch the same bus as she does to Leverkusen. He is always by himself. One of our neighbours told us that he was quite normal, but it all changed after his wife passed away about two years ago. When I heard the story, it was just  story and did not make too much of it.

In today's serendipitous encounter, it goes something like this.

my wife: "are you catching to bus today?"

the funny man: "yes, I am."

my wife: "Great, are you going to Leverkusen today?"

the funny man: "yes."

and he starts to walk towards to the bus stop. He stops, turn around and looks at my wife and said "but not with my wife, cause she is away." The look on his face is a "I wish my wife here to take this bus trip with me." He continues his way to the bus stop.

Upon hearing this encounter from my wife, I felt this strong sensation in my body. I felt for him that he is missing life partner. My heart just felt for him.

Chris Himmelfahrt or Vatertag?

For the religious among us, the 17 May 2012 is a celebrated day when Christ ascended to Heaven. For the others who are not, there is vatertag to celebrate.


Our neighbour celebrated this tradition last year and he kindly invited me to join them this year. The participant only needs to be a dad (in loose terms) to join in, or have the potential to be a dad. This event is also popular with young men (in their twenties) as well.


For the trip itself, it need to meet some criteria for it  be traditional. Firstly, we need a group of men (see above). In our group, there were seven of us, all men and from the local neighbourhood.


Secondly, access to some beer is critical. The local brew is preferred. For us, that would the Kolsch, or Köln water. As there are seven of us, the organiser made an executive decision as got 4 kegs or 20 litres of beer. I also think that beer help to social aspects of the group of men.


Thirdly, we need a wagon that can be pulled along. The wagon needs to big enough to carry all the beer, and food. Well, the food only consists of some cans of Pringles and the traditional Salt sticks.


An lastly, we need a route through the forest. The whole idea is the walk through the woods with beer in a wagon and have a good afternoon talk men stuff. Our organiser chose to start from the nearby town of Burscheid and walk downhill to our home town of Leichlingen. The trip is about 14km long, along a re-purposed railway track, and through some beautiful forests.


The trip started at 10am and we reached home by 6.30pm. We stopped at a local pub for a meal by 3pm. They were also plenty of chances to grab a wurst along the way as well.


My neighbour told me that this tradition is an important part of a man's life in Germany. I guess that it is a way for men to talk, share and do men stuff. When I heard about this last year, I was rather skeptical as to the value of it. Other than a sorry excuse to get drunk, I fail to see how it would add value. Well, I was totally wrong on many levels. After the walk and talk with the other dads, even with my limit German, I was able to get a sense of how the men of Germany live their lives. They are proud people and have many traditions to uphold. This walk is one of many. Personally, my participation allows me to form a bond and break the social barrier that an expat feels when living in a non-native speaking country. 


Contrasting this to the culture of men in Australia, I find it difficult why more of these type of events does happen back in Australia. Are the Europeans more cultured? Who really knows, but I do think that this type of events does give the men a more healthy lifestyle.

German hospital

In the last few days, I had some personal reasons to get intimate with a German hospital. I won't go into the details, but I have some respect the German health system.

Coming from Australia, the health system there can be best described as broken. Not slightly dented, or even worn out. It is simply broken.

I believe that health care for the people should be one of those things that needs to be free and be accessible for everyone. Australia is a developed country, and can provide plenty of advance health care, but unless you are able to afford private health insurance, that level care is usually not quite good enough. It usually takes too long to get something happening.

In Germany, My family and I have only the statutory health insurance. This is equivalent to Medicare in Australia. Even at this level of care, our entitlements are quite high. The care that they give to children is tremendous. All their prescribed medication are available without any further expenses, their visit to the doctors are also without any further expenses. The adult consultation is only charged at 10€ per quarter, but the medication incurs some expenses.

The hospital have a social worker that helps you with your home care, if required. This home care is part of your entitlement from the health insurance. Not only is home care available, assistance with the children are also possible. We are currently in the middle these discussions with our health insurance. I shall do another post when the details have finalised.

The German system is funded by the tax payers, very similar to the Medicare system. A percentage is calculated on your salary. I think that the Medicare system calculates the payment on the taxable income. The German system, calculates the gross income and the payable amount is capped. 

Speyer Technik Museum

It was a quick, "Let's head down to Speyer this weekend?" and just like that, we packed some bags into the car and headed south towards Speyer. I just returned from a business trip to Gothenburg, Sweden yesterday, and now I am heading to Speyer.


Apart from the nice historical centre of Speyer, there is another reason for heading to Speyer. Planes, trains and automobils. The Speyer Technik Museum was mentioned to us by a friend about 9 months ago, and after reading about it on the internet, it was one of the place for us to go.

The drive from Cologne was about 3 hours, with some stops here and there. When we arrived, we were a bit taken back by a full size Boeing 747 Jumbo Jet that is up in the sky. It was literally put on some pylons and is about 15meters up in the air.

Our two kids eyes became bigger and bigger as we got close to the museum. We found a car park and entered the museum. Once we are in, the whole place is packed with old cars, planes, old steam locomotives, planes, old motor bikes, and oh, did I mentioned planes. 

Many of the planes on display were either suspended over our heads by steel cables (inside display) or placed upon pylons (outside display). The planes that were displayed outside are usually the larger planes. A stair well usually is available for the inside of the planes to be entered. However, most of the interiors of the planes were gutted, and only the shell remain. The cockpit is also locked behind the original door, or a fenced off via a large piece of perspex.

The planes were from various dates, most of them were post second world war. There were also several replicas of flight instruments from the Leonardo da Vinci days.

The other main attraction at this museum is the real space shuttle on display. Well, it is the Russian version, the Buran. I am not sure if it actually made it into space, Wikipedia mentioned that Buran was only in space for 3 hours.

Did I mentioned that this museum also has a maritime section? Well, there is a great collection of boats, rescue boats, tugs, hydrofoils and an old soviet submarine. Yep, an old submarine from the Soviets. It was quite eerie to climb down the hatch for a look inside the submarine. It was my first time inside a submarine. I was not claustrophobic, but I could imagine some submariners going insane being cramped up for weeks upon weeks. Life can't be easy for those folks.

The kids also climbed into the submarine. This is the only item on display where the insides did not suffer much renovations. There were buttons, switches, taps, dials, lights, doors and gizmos for the kids (and me) to push, turn, shout into and to stomp on. It was quite an amazing experience.

The museum also has a IMAX 3D theatre. We did not go for this as our children were a little too young for it.

If you are planning to go there as well, one word of warning. We did not see many little girls around the museum compound as we walked around. It was mostly boys and their parents, running around, looking at all the different planes, trains and automobils. It is very much a place for boys to get amount the machinery. Definitely, toys for the boys (big and small).


This the updated museum. The original Technik Museum is in Sinsheim, which is still exhibiting. This Sinsheim museum have the two versions on the Concorde (the Aeroflot version and the British Airways/Air France version), a large display of F1 cars and planes.


We will have to get the original museum one day. 

Getting access to cash while travelling

It is the middle of the summer holiday travelling season in Europe. The freeways are close to capacity as everyone gets on to road to their holiday destination.

I have just returned from England on a summer holiday. It was a great trip, and the family really loved it. It all went smoothly except for one thing, I miscalculated our access to cash. There were a couple of causes for these, I forgot to bring or remember the PIN for our international ATM cards (very seldom used at home) and did not withdraw enough cash before departing. When we discovered this, the family was not very happy.

We tried to get cash from a Bureau de Change in London via my credit card, but I didn't have enough identification. I usually would provide my German driver's license as my identification as I don't possess an ID card. The Bureau de Change did not accept this as it does not have expiry date on it. My only other alternative form of identification is my passport, which I did not bring along (who would be stupid enough to take their passport with them on a visiting trip into London! It could easily be stolen or lost.) 

Furthermore, the Bureau de Change informed that they would a whopping 12% surcharge for using my credit card! At the time, I was getting a bit frustrated and would have taken the hit on the high surcharge. Not being able to do much, we only visited places in London or purchased items that would accept credit card. Luckily, shops and tourist attractions are more likely to accept credit card than in Germany.

The next day when we visited Southend, I visited a travel agent with a Bureau de Change. I also made sure that I had my passport with me. When I ask them if I could purchase some British pounds, they said no. They said that there was a law against directly purchasing cash with credit card in England. I wasn't an expert so I accepted their decision. However, we came across the idea that I purchase some traveller's cheques in British pounds and then immediately cash them in at the same spot. It was a sensational idea as it allowed access to cash. After the lovely lady at the Bureau de Change check my identification and the necessary transaction, I walked out of the travel agent with some British pounds in my hands. The family was happy and we went to the beach for some lovely fish and chips.

Furthermore, the overheads for the traveller's cheques were quite low. It was a lot lower than the 12% surcharge. The travellers cheque cost 3% per 100 pounds to issue and the same amount to cash them.

I have learned some lessons from this trip. Always make sure that I have enough cash in the domination of the country I am visiting, before I depart. At least, make sure that I understand the methods for access to cash.

Converting an Australian driver's license to a German driver's license.

When I shifted to Germany with my family, one of the many things that needs to be converted are the driver's licenses for my wife and I. Initially, I suspect that it would have been a simple swap over. However, given that there are many, many different differences between the Australian driving laws and German driving laws, the reality is that I had to go through many tests before obtaining the German license.

To initiate the conversion process, I had to register at my local town hall that I want to convert my license. This is where I struck my first problem. My local town hall does not have a representative of the department that handles driver's license, and the department is located at the district town hall, which is about 35mins away. This caused some delays as all the documents had to be send to the district town hall to be processed.

I was under the impression that the original documents that I have shown to the local town hall is good enough for the district town hall as I assumed that both town halls has the same authorities . This is my second mistake. The I kept receiving letters back from the district town hall requesting for my originals to be shown. This caused several trips to the district town hall.

The type of documentation that was requested does not appear to make sense. One of the documents that they requested was some documentary evidence that I lived in Australia for 185 days or longer. At the time, they were after a certificate from an Australian authority that I lived in Australia for 185 days, and guess what, there is not such thing in Australia. Unlike some parts of the world, there is no need to register your place of residence at the town hall. The closest documentation that I could provide are my utility bills over a 185 day period with my Australian address on it. They seem to be happy with that.

As part of the conversion process, I need to complete a first aid emergency course (conducted only in German, of which I can hardly understand), and to pass an eye test. I also need to select a driving school for some driving lessons and assistance with the driving test. The driving tests are part theoretical and practical. The theoretical tests can be done in English or German but the practical test must be done in German. I am actually glad that I went through the process of studying for the theoretical tests as it introduced me to the many different road rules here in Germany, especially the 'priority' rules.

I almost completed the whole conversion process when I received news that Germany and Australia have agree to do a simple swap of the driving licenses. This website has more information.

The Australian driver's license is rather strange as the authority of issuing the driver's license is at the state level, not at the federal level. However, German's license is issued at a federal level. A simple swap would have to be on an Australian state vs German basis. As I was holding a full driver's license from Victoria, I am eligible to convert my license to a full German license. Yippee!!!

As a lesson learned from one of my earlier mistakes, I went to the district town hall instead of my local town hall, armed with a print out of the website, to change my license over. After paying them some more money, I got a provisional license. It is provisional as the actual license is being prepared. As I was saying thanks to the officer that served me, I saw a driver's license with my photo on it. I asked if I could have that license instead. The officer told me that if I completed through the whole process of passing the tests, I would have got this license. However, as I am now doing a simple swap, I will be getting a different license. I don't know what the differences are, or if there will be any restrictions.

Anyway, I am now a happy driver on the German roads!

Movember 2008

Hi All,

During Movember (the month formerly known as November) I'm growing a Mo. That's right I'm bringing the Mo back because I'm passionate about tackling men's health issues and being proactive in the fight against men's depression and prostate cancer.

To donate to my Mo you can either:

• Click this link and donate online using your credit card or PayPal account

• Write a cheque payable to 'Movember Foundation', referencing my Registration Number 1608361 and mailing it to:

Movember Foundation
PO Box 292
Prahran VIC 3181

Remember, all donations over $2 are tax deductible.

The money raised by Movember is used to raise awareness of men's health issues and donated to the Prostate Cancer Foundation of Australia and beyondblue - the national depression initiative. The PCFA and beyondblue will use the funds to fund research and increase support networks for those men who suffer from prostate cancer and depression.

Did you know:

• Depression affects 1 in 6 men....most don't seek help. Untreated depression is a leading risk factor for suicide.
• Last year in Australia 18,700 men were diagnosed with prostate cancer and more than 2,900 died of prostate cancer - equivalent to the number of women who will die from breast cancer annually.
  

Imagine if one of these men could be your father, your brother or your son.

For those that have supported Movember in previous years you can be very proud of the impact it has had and can check out the details at Fund Raising Outcomes.

Movember culminates at the end of month Gala Partés. If you would like to be part of this great night you'll need to purchase a ticket. The ticket can be purchased at Gala Tickets.

Thanks for your support.

More information is available at http://www.movember.com/.
Remember to make your online donation via this link: Donation

Movember is proudly grown by Holden and Schick.
Movember is proud partners with the Prostate Cancer Foundation of Australia and beyondblue - the national depression initiative.

Happy New Year

Happy New Year!

Today is the new day of the new financial year in Australia. For most of Australian businesses and general public, the financial year ends on the 30June, and the new one starts on the 1July.

So what can be expected for this financial year, from my perspective, I can't see as many positives as I can see the negatives. Lets start with the negatives.

• The interest rates are expected to rise. My prediction is that mortgage rates will hit 10% by the end of the year. Recent reports of the slowing down in the economy such as spending in retail and housing will probably stop the interest rate from going much further than 10%.
  
• The petrol prices will continue to increase. Even though there was a recent conference among the oil producers to help reduce the cost of oil, I feel that the days of seeing the pricing at around $1.20/ltr are long gone. I expect to see the price of unleaded petrol to hit $2/ltr by the end of the year.
• Australian manufacturing industry to slow down dramatically. The current Australian economy is really riding on what the land can provide, more correctly, what the underground can provide in mining. Another industry such as manufacturing, services and farming will probably suffer due to environmental reasons and economic reasons. Personally, I would like to see the manufacturing industry enjoying the same economic boom as the mining industry, I don't think it will happen in the near future.
• Due to the on-going drought and increasing fuel pricing, the groceries prices will be increasing.
• Our superannuation fund is on its way to give one of the worst return ever. We can blame the US subprime problems for this.
  

Feel free to shoot me down in flames with these predictions, and I hope that I very wrong with some of these predictions.

A couple of the positives are

• The personal tax rates have changed, which means that you should be getting a little bit more in your pocket each payday.
• With the increase of petrol, focus on alternative energy are being looked at in a serious way. So hopefully, a commercially viable solution is not too far in the future.

With those predictions, let's try make the best of the new 08/09 financial year by viewing the negatives as problems which solutions are to be created for, especially on a personal finance level.

Lowest taxable income in metropolitan Melbourne

The Australian Tax Office has just released some tax statistics for the 2005-2006. Although the data is a few years old, it makes for interesting reading, in particular the data on personal tax.

One of the statistics that I noticed was that Frankston North has one of the lowest mean taxable income at $33,638 for each taxable resident.

We lived in Frankston North for about two years, just before we shifted to our current location. I must say that during our time in Frankston North, we can sense that the place is not a wealthy suburb, but from talking to our neighbour and the other Frankston North residents, the ambiance certainly does not give it that sense.

Living in such a low income area does have its concerns. We saw a lot of the typical events that you would expect to see. For example, we witnessed a police car chase in a residential street, regular thieving and stealing at the local shopping centres, and the occasional violence. We were always on our toes, trying to keep as safe and secure as possible.

Having said that, I am totally convinced that the majority of Frankston North residents are everyday people trying to make ends meet. I wonder if how long before Frankston North begin to move up the scale, if it ever will?

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Public Housing and the homeless

My recent participation in the CoPF #142, which has a homeless theme, has caused me to think about what kind of homes are available for the homeless.

To me, homeless means a few thing, but it boils down to not having a place where my family and I can feel safe and secure. The difficulty is obtaining that place, either buying or renting a house. The rental market in Melbourne is red hot, and the affordability of buying a house is at record low.

The Victorian government tries to ease the situation by provide public housing. Public housing is not free housing. Essentially, it is houses that are the Victorian government rents out the public. The differences between public housing and private housing is the criteria which the house are rented.

If you want to rent a house privately, prove to your landlord that you can afford to pay the rent, and not damage the property while you are renting, and the property is yours. The rental rate is set by the landlord. The rental market is so competitive that I have heard of landlord auctioning off the leases.

With public housing, you will need to meet the following criteria to be on the waiting list for a suitable housing to be available. According to this pdf document, there are close to 35,000 people on the list!

• not exceed the current general public housing income and asset eligibility limits.
• live in Victoria.
• not own or part own a house, unit or flat.
• have Australian citizenship or permanent residency status.
• repay any money that you still owe from a previous public housing tenancy or Bond Loan.

If your situation is extreme, you can be apply for early housing where, if suitable housing is available, your application will have a higher priority. These situation includes recurring homelessness, supported housing and special housing needs.

The key thing is that the rent rate is set at either market rate or rebated rate, whichever one is lower. Market rate is the going rate for a similar property in the private rental market. Rebated rate is calculated at 25% of the combined household income.

The Victorian Government's Office of Housing has a great website that has a lot of detail information.

My closest experience with homeless was when I sold up and went traveling around Australia about 5 years ago. I know that what I did was not even 5% of what a homeless person would experience because being homeless is not just a physical thing, it is also a mental state and also an emotional state. As I traveled around the country, I met many others in makeshift shelters, transient accommodations and hostels. It provided me with an opportunity allow me to talk and to get an indication of their lives. In some ways, I feel encouraged that they are able to survive on a day-to-day basis, given their extreme conditions. On the other hand, I also felt angry and disappointed that in this country that we are not able to do more for the homeless.

Photo credit: Piotr Ciuchta
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How will my financials change when No.2 arrives?

Preparation for your first child is not a task to be take lightly. Amount the physical needs of the child, their emotional needs as well as their financial needs must be catered for.

Is the preparation for the second or the third child any different from the first child? Trent at the The Simple Dollar has some nice advice on how to prepare for the second arrival in a frugal manner.

For one thing, the on-going family expenses will be increasing. Therefore, planning on to the deal the change is key. Apart from the obvious items such as the medical bills, clothing etc, it is worthwhile to investigate the other part of your life that will need to be change and how much that will cost to change it.

1. If your car is not of the right size, you may need a purchase a larger car. It is also true that the current house you are in may not be larger house enough.
   
2. One of the parents being a full-time home maker. This will affect the household income. Being a full time home maker is a very personal decision, but sometimes the key reason may be due to financial reasoning. EG, unable to afford to put that many child in child care.
   
3. The work hours of the bread winner may have to be reduced to give more support to the full time home maker.
4. Increase in your life or income protection insurance, this usually means an increase in the insurance premiums. I believe that this particularly important as the number of family members has increased and the new addition's welfare must be looked after.
   
5. Ensure that your emergency fund is changed to ensure that it covers the new arrivals.

Photo credit: Joe Zlomek
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What are you really saving for?

Would you miss a meal to pay your rent?

The Age newspaper reported that some people are forgoing some of life necessities to pay their rent, in some extreme case, missing meals.

Missing meals is pretty extreme, and I am the first person to admit that for some people, the situation is extreme and it does call for sacrifices such as missing meals. I am very fortunate that I am not in that situation.

However, I try to imagine myself in an extreme situation such as that, and imagine what I would do. Firstly, determine if I am actually in trouble.

1. I would draw up a very detail map of where our spending is. Currently, we have a pretty good idea of where our money are going but we don't have a precise knowledge of where they are. By having a very precise view, we are counting the very last cent and accounting for its spending. The tools to accomplish an notebook to take a note of all your spending, and strict discipline to ensure that a log of the spending is kept. Every cent has to be accounted for!
2. From the detail plan, I would classify which of the spending are "must have", "should have" and "nice to have". Food, rental and utility bills falls into "must have". Newspaper and the morning coffee at Gloria Jeans are "nice to have".
3. Evaluate the items in the "must have" to ensure that it is actually a "must have".
4. Work out what income we have to pay for the "must have" expenses.
5. If the income coming in does not cover the expenses, we are in deep trouble.

Once we have establish that we are in trouble, we need a plan. Perhaps the following would work.

1. Inform the creditors that we are having problem paying the bills as early as possible, and attempt to negotiate a better deal. This is a definite must for the creditors providing the "must have" products and services.
2. Inform the family that there are going to be some tough time ahead, and prepare themselves for the tough times. However, tell them that there is a plan in place and I am committed to meeting the plan.
   
3. Looking into supplementing the current income, probably with a second job.
4. Over the recovery period, keep evaluating the items under the "must have". If the items ever get classified as a "should have" or a "nice to have", we are going to stop doing it.
5. The most important part, have a time frame which you can get out of trouble. An open ended plan is difficult to achieve as there isn't any targets to aim for.

At the end of the day, I can not begin to even appreciate the situations some of the families are going through and coming to a decision that they are going to miss a meals here and there.

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20th Teddy Bear's Picnic

If you from the Frankston area, or are thinking about visiting the Mornington Peninsula this Sunday, consider visiting the 20th annual Teddy Bear's Picnic. It is conducted by the Frankston Toy Library. The library service is something my family uses quite a bit and wholesomely support. It is a great day, and your kids will guarantee to have a great day.

The details of the picnic is

Date: Sunday, 24 February, from 11:00am-4:00pm
Location: Frankston's George Pentland Botanic Gardens, corner Foot and Williams
Cost: Entry is $2.50 each with children under 18 months free
Map: here

If you wish to give some support to the wonderful services that the Frankston Toy Library has provided for over 30 years, consider attending the picnic.

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Frankston Toy Library, a wonderful service

Don't Panic!

The current financial crisis that we are experiencing is quite nerve racking. Today, the All Ords feel by about 7% and all the gains, if not more, made over the last 12 months. Today, it closed at 5222 points, down by 408 points. As reported by The Age, this is the one day biggest drop in the share market in the 18 years, and the longest losing streak since January 1982.

Luckily, it does not really impact me significantly as we only own a small parcel of Telstra shares, which was purchased during the T2 offering. However, the real impact to us would be how our superannuation will be performing. Like many other Australians, some part of our superannuation are invested in the local Australian share market. With the investment mix of my superannuation, about 10%-15% is expose to movements of the sharemarkets. The way I view it, superannuation is a long term investment and is not due to mature for another 30 years for me. So I have decided not to panic and leave the investment mix alone to ride the down slide out.

My friend calls this the sleep factor. If the situation is affecting you to an extend that it is disturbing your sleep at night, it is probably time to be less aggressive with the investment mix.

The market did slide down quite significantly when the dot com bubble busted just after the turn of the century and my superannuation net worth actually went down, but it recovered in spectacular fashion.

For some people whom superannuation are about to be accessible in the next few years, these are certainly nervous times. I would say to them to get some profession advice.

Christmas 2007

The holiday season is just around the corner with a few days left to go.

First of all, I wish to thank all the regular readers and to those who have left comments, contributing the on-going discussion of personal finance.

Second of all, I must apologise to the same regular readers for the lack for articles over the last 6 or so weeks. My life getting complicated and blogging must take a back seat for the time being. However, a couple of updates.

1. We have change over to a new car, purchased on a novated leased agreement. The procees from the sale  of our previous car went to paying off all of our credit card debts (~$12K). The remainder was put into an online high interest bearing account.
2. Reduce our credit card liability by cutting the credit limit on the cards to $1000.
   
3. One of the complications was things are not being done, so I am trying to embrace the GTD or similar philosophy . Shall let you know how I go.
4. Start to think about schooling for our son, so expenses for these are sure to mount up.

Third of all, if you are able to spend some time with your love ones, please do so as they are the things that money can't provide.

Merry Christmas!

How we got a 32% discount on outdoor furniture!

We have an outdoor area just outside the back door which is disparately under utilised as it is quite bare without any outdoor furniture. So what do we do in this situation? We went shopping!

About half an hour drive away at Narre Warren, there is an large shopping area and includes many of the larger shops like Harvey Norman, BBQ Galores and Ray Tents city.

We finally arrived at one particular shop that specialise in outdoor furniture. We were looking for an aluminum framed furniture with cloth backed chairs. In one corner of the shop floor, we noticed a set for sale, it comes with six chairs and a glass table top. The whole ensemble fits our back area just right, and it is also on sale!

We started the bargaining process by asking if we are able to mix and match the table with a different set of chairs as we are not too keen on the standard chairs. Specifically, we pointed to set of wicker chairs that were also on sale.

The shop assistance went to the counter and came back with a price of $699 for the set. She told us that this is a special price to offload the last remaining stock of these items. We see this as an opportunity to reduce the price further. The RRP on these items were about $840. My wife and I had a chat about it, and asked if she could the deal at $600 as this was budget for the furniture. I was not too sure if she believed about the "budget" line, however after a few moments she relented but stated that this is a pick up price only. Sweet! We left a $100 holding deposit on the items and left the store extremely happy.

One week later, we received a phone call from the store manager saying that they could not find 2 of the 6 chairs that we ordered, and they will have to order it from their supplier if we still want to proceed with the order. Not wanting to let go of a good deal, I said yes. The store manager gave me a couple of choices.

1. pick the tables and the four chairs now, and return later for the other two chairs when they are available.
   
2. wait till the two chairs are available and pickup the all the items in one go.

I felt that there is an opportunity to get a bit more from the deal and suggest to the store manager that we will wait until the two chairs are available and that they throw in free delivery (a $45 cost) as this delay was caused by them. The store manager agreed after a few moments hesitation.

So far, we have gained a total of $295 or a discount of 33% on the package . That was a pretty good deal.

It gets better, the store manager rang my wife yesterday to inform us that they are not able to deliver the goods this week as their delivery truck is fully booked. I think this is their way of recuperating some cost. My wife stood her ground and told them they are not doing what they promise so they gave us a further $30 off the price. The cost of the outdoor furniture is now $570. At the end of the day, we prefer a further $30 discount instead of free delivery as we don't really pay for the delivery, but $30 is hard cash that doesn't get handed over.

So the final discount is a total of $270, or a discount of 32%. Still a pretty good discount.