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Have you ever had one of those turning point days in life? You know, the type of day which stops you in your tracks, shakes you to your core and seemingly changes everything overnight. I know I have. In fact, I can still clearly remember the specific situations and experiences which made me truly question where I was at and more importantly where I would end up if I continued on my current path.

Now these momentous days can occur in regards to our health, finances, relationships, career, business, family, personal beliefs or any area of life. Interestingly, at the time they occur we may not welcome the insights they bring and may even try our best to avoid facing up to the choices they offer. However, ultimately these defining experiences can bring great gifts if we have the courage to learn and grow from them. Better still, they can be the catalyst to shift the course and trajectory of our lives forever.

Perhaps one of my all-time favourite examples of the day which turns your life around comes from the classic wisdom of the late, great speaker and author, Jim Rohn. He was a man who inspired millions around the globe and he also influenced many of today’s leaders in the personal development industry. Additionally, Jim was a wonderful story teller and often shared insights from his own life to teach the universal lessons of success he wished to share.

I hope you enjoy his simple yet powerful story, because sometimes it is the smallest of events in life which can have the greatest impact upon our future results.

The Day that Turned Around Jim’s Life

Born and raised on the family farm in Idaho, USA, Jim Rohn was the only son of the local minister and his wife. Growing up Jim learned the value of hard work and persistence, but not much about how to create the life he dreamed of. From these humble beginnings and after a year at college, he dropped out to get a job as a department store clerk. Reasoning that after a year of college he was, “…thoroughly educated.”

However, by the age of 25 with a wife and children to support he was going nowhere fast in his career. To make matters worse he was just scraping by on his meagre salary, in debt and with no savings or cash available. And even though he knew he should be doing better he felt stuck in a rut of his own making. Then one day a small incident changed his attitude forever.

It was a sunny spring Saturday morning and Jim was home alone as his wife and children were out. Hearing a knock at the door, he opened it to find a rosy cheeked young girl, immaculately dressed in her Girl Scout’s uniform holding a basket of the famous Girl Scout cookies. With a smile, the youngster enthusiastically launched into her simple sales pitch for selling the cookies and finished with a very polite question, “Would you like one box or two, Sir?”

Immediately Jim’s heart sank. He would have loved to purchase two boxes from the eager faced Girl Scout in front of him. The problem was, not only did he not have the $4.00 in his pocket to buy two boxes of cookies, he didn’t even have the $2.00 needed to buy one box. Feeling ashamed and embarrassed he quickly lied to the youngster that he didn’t like the Girl Scout cookies and hurriedly closed the door. But that was not before he saw the disappointment and defeat written across the little Girl Scout’s crest fallen face.

Jim was devastated. In fact, this seemingly simple encounter left him feeling so disgusted with himself and the circumstances in which he found himself that he resolved to do something about it. He vowed then and there that he would turn his life around. It was from that point onwards that Jim Rohn, a penniless, debt ridden young man began to change his life forever. He found himself a mentor coach, created a plan and began to alter his attitude and actions. Over time Jim went on to become a self-made multi-millionaire and one of the true legends of the personal development arena.

So if you are feeling you’d like to turn your home ownership dreams into a reality sooner rather than later, why not call one of our experienced and qualified Mortgage Coaches today. They can advise you on your options and help you plan for your property purchase.

Perhaps this could be the day that you begin to turn your financial life around?

To your success champions,
Harry

As you may know, at Mortgage Coach our coachess get an extra special kick out of helping First Home Buyers (FHB) get into their own homes. So we are always looking for ways to assist them with their goals and smooth the way forward with their home ownership dreams.

So this week, I’m sharing some cool insights from a fascinating and enlightening new research paper by the Reserve Bank of Australia (RBA). * Apparently the RBA have been looking at changes in activity and purchasing success within the First Home Buyer (FHB) sector in Australia over the last 10 to 15 years. Some of the interesting stats they discovered include:

  • There was a downward trend across the sector with less FHB actually transitioning to home ownership in the years from 2008 to 2014 forward, as compared with during the previous years from 2001 to 2007
  • The biggest fall in numbers within the FHB sector, amongst those who became home owners, was within the 25 to 34 year old age group. This group fell from just under 12% of all FHB to just under 9%, with them delaying purchasing and therefore effectively becoming part of generation rent.
  • This delay in entering the housing market seems to be strongly related to increasing house prices within many of the capital cities across Australia, which has been making it more difficult to save for a deposit.

However, the points which stood out most clearly to me from this report were:

  • Even though FHB numbers may have fallen during this time, it was noted that those who successfully made the transition to home ownership were likely to be more capable with handling their loan responsibilities. They were also more likely to pay down their loans sooner and reduce their debt more quickly over time.
  • However, the FBH across all age groups, who had received financial assistance from their family and/or friends to create their home deposit, were much more likely to experience financial distress and hardship over the lifespan of their loan. They were also more likely to have to later rely upon family and friends to assist them with their mortgages and financial affairs.

Now, from these very salient insights into the current FHB market, I think there are a few important take home points on the benefits of developing the saving habit for FHB.

  1. Learning How to Save is the Key: At any stage in life, possessing the discipline of saving is a powerful habit to develop. However, when it comes to FHB it is an absolutely essential skill to possess. Not only does it demonstrate that you can live within your means and spend less than you earn, it also shows that you have the ability to manage your money and your financial affairs over time.
  2. Savings Builds Financial Resilience: Once you have mastered the skill of saving on a small income, this can later be applied to larger amounts as your income and expenditures grow. It also means that you will be more likely to be able to handle your affairs if you ever experience financial challenges because you have a proven track record that you can be responsible with your money.
  3. Demonstrating that you Have Genuine Savings: Perhaps most importantly for FHB, by having a solid savings history and a healthy self-generated deposit for your home, your lender will see that you are a good candidate for a mortgage. Because, as these stats show, if you can save first and manage your money well to create a home deposit, you are more likely to be able to do so into the future. In this way everyone wins as FHB are better money managers, more financially resilient and more likely to pay off the home loans, whilst the banks and other lenders gain clients who are deemed to be lower risk and good financial managers.

So if you are looking for ways to improve your saving habits in regards to your home deposit or have some questions on how you can get on the fast track to home ownership, feel free to contact us at Mortgage Coach.

Until next time, wishing you happy saving,
Harry

* Source report from the RBA

 https://www.rba.gov.au/publications/rdp/2017/pdf/rdp2017-05.pdf

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