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I browse a lot of Internet forums – Mountain biking, cars, property and so on. You wouldn’t believe how many people are talking about the 90 million dollar Oz Lotto tomorrow night.

“What cars would you buy?”, “Where would you buy a house and what sort?”, and so on. I was talking to the guys at work about it last week and I’m convinced that nothing “amazing” like winning 90 million will ever happen to me, but I take comfort that along with that I don’t believe anything terrible will happen to me in my life either. I’ll just ride the wave, enjoy it to the max, and then die one day.

Australia is the new America. Rampant consumerism, and while I like my “stuff”, it’s insane to think that my life could be that much better just with more money. In fact you only have to look to the “stars” to see how the money ends up owning them in the long run.

For instance – I am relatively healthy, in a good career and with my fiancee who makes me so very happy. I am lucky enough to know my passion – bikes. I love the outdoors and my freedom. Obviously I’m not going to say that money wouldn’t make some of these things easier to acquire – bikes for instance – I could have hundreds if I was loaded, but what is the point? Where is the satisfaction in having a few hundred bikes when in reality you will only ever ride maybe 5 of them regularly? Being rich is a false economy. I’m not going to love my fiancee any more if I’m rich, I’m not going to get any healthier if I’m rich, and I’m not going to feel any more free if I’m rich either.

I’m sure if you think about it in your life too, the benefits will be limited as well.

Winning a lump sum of money like this will just throw all frugality out of the window, and before long you will be “two steps back”.

Maybe I’m just sour about others winning, maybe I’m in denial, but I honestly think that people bank on money (no pun intended), that bit too much. If money is the thing that will make you the happiest in life, it’s time for a reality check. There is so much out there to make you smile, make you laugh, or give you a rush that doesn’t cost a cent!

I read an article yesterday that was just ridiculous. A 19 year old casual employee is already $42,000 in debt – the result of a car, plasma TV and an overseas holiday. While the article claims to be about how Generation Y are getting their act together financially, I’m just reading another piece of tripe by News Corp.

I’ve always had an issue with image. Not personally – as mentioned I’m a fairly resilient person, so I don’t hugely care what other people think of my lifestyle or how I look, but coming from a private school I was inevitably part of a competition to look as rich as possible, regardless of where I actually stood in the pecking order. It’s amazing how some parents push their kids out of the car in Ralph Lauren and Nautica, despite their car running on three cylinders.

Only now have I realised that a large part of a lot of males’ image is tied up with cars. I personally have had a few nice cars, and while I have never consciously bought them for the image factor, now that I think about it image is the only reason for your car to look good. While nowadays it’s easy for me to let go of that dream, I find that most Australians consider others to be “successful” dependant on how new their car is. Going on that judgement, I must be fairly unsuccessful, right?

Whether it be for a car, house, TV, boat, bike, clothes, laptop or so on – are people actually getting into debt purely just to boost their self-image? In this crazy world that we are living in, I’m a firm believer that nine times out of ten they are.

I don’t profess to be exempt from this, although I consider myself to have things under control – a good friend of mine asked the other day if I was sick of not having a car, and that “surely you could afford it”. Quite honestly, we could afford another car, but we just don’t need one at the moment – it doesn’t make any sense.

Nowadays you just don’t seem to get any kudos for paying down your loans and owning things freehold. To date I have never had a loan for a car, and only ever taken out a loan to buy our property. I wouldn’t have it any other way.

I wrote an article about the Minimalist Lifestyle not too long ago, and I feel that this ties in perfectly – to me, debt means stress. It is something that will always be in the back of your mind until it’s gone. Get rid of it and it will be one less thing to think about. Be content with less, and enjoy life rather than worry about it constantly.

I’ve come to the conclusion that a passive income has to be the best way to live – set yourself up now, and reap the rewards later!

For instance, I run a few websites at the moment, this one included. The goal is to see (it’s just a test) how much money you can actually make from having a few Google AdSense advertisements around the place. In around two months I have made a whopping US$13.01. I tell my friends about it and they just laugh at me, “It’s not worth the hassle” they say.

For $13.01, sure, it’s not. But what about after a year? That $13.01 becomes around $80. Now quite obviously I’m not going to be able to survive on $80 a year any time soon, but I think this is where most people give up. This is residual income – from time to time I need to add some content or do some maintenance, but essentially when I’m not directly working on making money, the content is still working for me.

Share dividends, interest on your savings and so on – there are plenty of ways to generate small amounts of income that can one day build up to a considerable amount. For some people, it’s all about investing money and supplementing their current income, whereas for others it’s about investing a small amount of money and time, to just earn enough to get by.

It’s typical of people nowadays to discount the little things. They discount the small amounts that they spend as nothing. $5 a day is easy to spend, but after a year that is $1825! Smokers for instance, have a real financial benefit from quitting, if nothing else. Turn it around, and imagine running 5 websites making $5 per day – that is over $9000 a year! I could invest that money into shares and use the dividends to generate more income too. It’s ongoing, but there is real potential in it.

What I need is an idea. The world is full of them, but unfortunately my head isn’t. I need to make more websites, I just can’t think what I should make them on and how I can make them different from everyone elses.

This blog is pretty much the exception to the rule. While I do have an ad on the page, it will never really generate much, if anything. Everything I am reading now is about Search Engine Optimization, page rankings, and so on. You really need to push the content towards the viewers, then almost manipulate them into clicking your ads. My blog has too much random content to actually get a high page ranking, and as a result it will never really receive the hits. This is “my place” on the internet, and what is say here is as biased or unbiased as I want it to be – it is just my honest thoughts, and there is nothing more to it.

Do some reading up on it some time – passive income is great, but it’s probably the hardest income to earn!

Enough with the grants already!

Australia already has a First Home Owners Grant to “help” people get into one of the most overinflated investment bubbles in the world.  Free money has been handed out to Australians as part of stimulus package, which will cost this country dearly in the future too. Now we have the Holden Owners Grant. Not actually a government grant of any kind, just clever advertising that will no doubt convince thousands of uneducated Australian’s that there’s never been a better time to buy an overpriced, poorly engineered piece of devaluing steel.

Whether it’s a car, a house, computer, clothing, or so on, if people can’t afford it it’s either one of those items that only a special few can afford to buy (which is part of it’s appeal), or quite simply the price is too high. For example, people pay big money for clothing brands like Prada. It’s high prices and label is what makes people aspire to wearing that label. Now obviously Prada are making a profit at their current prices, so their business model works. By selling only to the “elite”, they can turn a decent profit.

On the other end of the spectrum though is the brands that need economies of scale to make their products profitable. Holden is one of these brands. They need the masses to buy their cars, and in order to get the masses to purchase your product it needs to be affordable.

If these items aren’t affordable, quite simply your business is going to fail. Although housing is a tricky one to compare this all with, it’s still a similar situation. People can’t afford to buy houses at it’s current value so there needs to be a grant to get people into the market. All this does is keep the prices inflated and in the long term helps no one except for the “investors” already in the market.

A so called Holden Buyers Grant is just ridiculous. Obviously they can’t move Holdens at the moment at their recommended retail price, so they need the grant to sell their cars. Australians are more likely to buy cars from Asia and Europe as they are either cheaper, or a similar price and of a much higher standard.

For Holden it’s a simple case of provide the market with what they want, or fall down. Unfortunately they and many other Australian businesses fail to see this. In Australia I foresee this crash being harder than any other that we have had in the past, as it is going to be an enormous readjustment for our businesses, and as a result our people.

I write a lot on here about money and the economic situation of the world, and I’m usually pretty negative about things. Talking to those in my office, where pretty much everyone is under the age of 30, most others have the same attitude. That said, it’s only the opinion of the older generations that we are so negative. I’ll explain…

It’s well known that most Gen Y’s aren’t very loyal in a workplace sense. They are happy to jump ship after a short period of time just for some extra money here or there. Apparently the way we were brought up, we have a short attention span or something. I’m not sure, someone was telling me about it once but I wasn’t really listening… haha!

Does this extend further than just employment though? Local car manufacturer Holden is in a heap of financial trouble at the moment – being down the food chain from General Motors isn’t the best place to be in an economic crisis. Talking to the Baby Boomers, they think it would be a great loss to this country to lose Holden, but talking to the Generation Y’s paints a completely different picture. The general consensus is that Holden have been producing poorly built, inefficient and overpriced cars for too long now. Technology has moved in leaps and bounds for European and Japanese cars, but in Australia we are essentially using the same outdated technology as the yanks. It’s nobody’s fault that Holden is going under but their own, and good riddance.

In this specific example I see a crash and “the world coming down” as a massive positive. The US and Australia manufacturers will be brought to their knees and forced to produce more efficient cars and work with a business model that actually makes money rather than lose it. Lots of other people just see the doom and gloom and not the positives from it. These are usually the older generations.

Now does that make us positive or negative? Loyal or disloyal? Short term I can acknowledge that peoples lives will be “ruined”, but once again I see a positive in that. Without making too much of a generalisation about Holden employees, the meaning in their life is in their car, their TV and their Jim Beam. Now while I like cars, watch too much TV and enjoy the drink, I’d be stoked to live in a world where all three didn’t exist. Others would be literally lost, but before long find some real meaning in their life, and enjoy it for real rather than all the superficial crap that we live for nowadays.

While bankruptcy and losing your car and what not is a big negative in the short term, it offers such a huge positive in the long term.

All of this doom and gloom has enormous positives out of the other side, yet the Baby Boomers struggle to see this. Why so?

My father for one would be sad to see the Aussie icon that is Holden lost to the Global Financial Crisis, but I’m happy for it to sink. House prices crashing, banks falling, economies crumbling, exchange rates not so good. Baby boomers would faint if this stuff wasn’t sugar coated when it all happens. However what is bad for some is great for others, you just need to be able to open your mind and explore the situation, rather than just look at it with your blinkers on. Gen Y’s are able to see the positives in this situation much more easily than the Baby Boomers.

Gen Y’s are loyal, Baby Boomers just can’t see that in order for their country to become strong again they need to cut off the dead wood first.