HOW MUCH IS ENOUGH?: The 4 consistent qualities of enoughness

"Enoughness” doesn’t mean voluntary poverty—it means discovering who you really are.

At a conference on alternative economics, I happened to sit at dinner with a man who had done our New Road Map Foundation course, Transforming Your Relationship With Money and Achieving Financial Independence. He told me this story about his own struggle to discover just how much was enough for him.

From time to time he goes to a rural monastery for a silent retreat. Meals are provided by the monks. The many acres of wooded land are laced with walking trails. There are several small sanctuaries with just a chair or two. Each room has a bed, a desk, a chair, a lamp and no more. The atmosphere is one of silence and peace. On one retreat he asked himself, “If I knew that everyone in the world would have enough if I had only this much, would this be enough for me?” The answer was a clear “yes.”

While all of us at the table could identify with the simplicity of that vision, we went on to discuss what things we might add to support not only our spiritual nature, but our work and sense of community as well. A telephone. Certain books. Certain files. Another chair for a guest. A computer, perhaps. The more we added, the more difficult it was to draw the line. Where did necessity end and excess begin?

Through my public speaking on personal economics, I come in contact with many people who are sufficiently awake to the needs of the world to have asked themselves that same question, “How much is enough for me?” So many of them, even those who speak out about the inequities and insanity of our consumer culture, feel they fall far short of the mark in practicing what they preach. They confess their “sins of luxury” to me with everything from sheepishness to painful guilt.

In my own experience, and through corresponding with many people, I’ve noticed a few consistent qualities in the lives of people who have come to know how much is enough for them.

1. They have a sense of purpose larger than their own needs, wants and desires. Desires are infinite. Fill one desire and another emerges. A sense of purpose, though, sorts real needs from whims and preferences and directs your attention to only those things that will really serve your mission—whether the “mission” is raising children, a garden, money or consciousness.

2. They can account for their money. They know where it comes from and where it goes. There’s a sense of clarity that comes from such precision and truthfulness. If you don’t know how much you have, you can never have enough.

3. They have an internal yardstick for fulfillment. Their sense of “enoughness” isn’t based on what others have or don’t have (keeping up with the Jones’, or down with the Ethiopians). It’s based on a capacity to look inside and see if something is really adding to their happiness, or is just more stuff to store, insure, fix, forget about and ultimately sell in a garage sale.

4. Like my friend at the dinner table, they have a sense of responsibility for the world, a sense of how their lives and choices fit into the larger social and spiritual scheme of things.

From these findings, I’ve developed a pledge that may help guide people in finding peace with what they have and what they need:

I pledge to discover how much is enough for me
to be truly fulfilled, and to consume only that.
I also pledge to be part of the discovery
of how much would be enough for everyone
not only to survive but to thrive, and
to find ways for them to have access to that.
Through this commitment to restraint
and justice, I am healing my life
and am part of the healing of the world.

“Enoughness” isn’t something to “live up to”—it’s something to discover through the process of truthful and compassionate living.

Thanks to Vicki Robin

Have your circumstances changed?

As unemployment rates rise across the world, and the likelihood of widespread redundancies increases, we suggest that you take steps to protect your financial well-being.

For those who are feeling unsettled by the recent spate of ‘lay-offs’ and are genuinely concerned about their job security the first course of action should be to put a away some wages away just in case.

With all that is happening in the economic landscape, no-one wants to be involuntarily out of work and/or be faced with prospect of looking for work in a very tight employment market,

In life, there will always be certain things that are beyond our control.

Take back some control

Most of us would have heard of the saying “save for a rainy day”. This is probably as relevant now as it has ever been.

What to do if you lose your job

If you lose your job you will need to think about the impact it will have on your finances. There are a number of issues you may need to consider.

Your entitlements

Before you make any decisions about your future, find out about your entitlements and the best way for you to deal with any money you may receive. You may be unable to reverse a decision you are unhappy about.

Your redundancy

If you receive a redundancy payout, you might want to seek professional financial advice. Make sure you understand the advice you receive and ask questions if you don't.

Your commitments

Depending on your age and your employment options, different financial issues will be a priority. Whatever your circumstances, you will probably need to review:

• your budget
• your credit cards, loans and mortgage
• your superannuation.

Take control of your finances and contact your lender as soon as you can if you want to make any changes to your loan repayments.

Talk to your superannuation fund about any benefit entitlements that apply on retrenchment. If your superannuation includes life or disability insurance, check whether it will continue when your employer stops contributing. Some funds may allow you to continue your cover but there may be only a small window of opportunity for you to make these arrangements.

Taking time out from the workforce?

If you don’t have another job lined up, plan on having an extended break or just want to change your lifestyle, you will probably need to make some changes to your finances.

A budget can help you work out what expenses you'll need to cover while you're not working. We can assist you with this if you are unsure how to proceed.

You may find it helpful to get some independent information or advice to help you plan.

Government assistance

If you lose your job, you may be eligible for government assistance and services to help you find another job.

The bottom line

Review your budget and stay in control of your money.

If you think you may have problems keeping up loan repayments, contact the lender as soon as possible.

Don't ignore your debts - they won't go away.

Cut your credit card interest

Are you caught in a cycle of credit card debt? Here are some tips for bringing your balance under control.

For cardholders who carry an outstanding balance from one month to the next, credit cards have become an expensive form of debt.

It is easy to convince yourself that you are are paying off the balance each month, but the average account balance crept up from $3249 at the end of 2010 to $3309 at the end of last year – so many people are not as diligent as they think.

Research group Canstar has tracked the change in credit card rates in the past few years and found they have kept rising, whatever prevailing interest rates have been doing.

LOW RATE CREDIT CARDS
	Purchse Rate (%)	Cash Advance Rate (%)
Community First CU	9.99	9.99
Bankmecu	10.74	10.74
Bankwest	10.99	21.99
TeachersCU	11.50	11.50
Defence Bank	11.74	11.74
Heritage Bank	11.80	11.80
Citibank	11.99	21.74
Members Equity Bank	12.25	12.25
Intech CU	12.30	12.30
Suncorp Bank	12.74	21.99
Virgin Money	12.99	21.69
As at 31/02/2012	Source: infochoice.com.au

Low rate credit cards.

In the middle of 2007, when the Reserve Bank's official cash rate was 6.25 per cent, the average rate on a gold card was 17 per cent. Today, with the cash rate at 4.5 per cent, the average gold card rate is 19 per cent, with many card issuers charging more than 21 per cent.

Consumers have to consider whether a rewards card is worth the cost; whether a balance-transfer deal would save money; or whether to choose a low-rate, no-frills card instead.

The executive director of Financial Counselling Australia, Fiona Guthrie, says out-of-control credit card accounts are a common cause of financial hardship. She says even people on good incomes often fall into the trap of holding too many cards or accepting inappropriate credit-limit increases.

REWARDS ARE COSTLY

The chief executive of RateCity, Damian Smith, says consumers who spend $1000 a month on their cards will come out behind on the cost of a rewards program.

''Spending that much will get you about $100 worth of rewards each year,'' he says. ''But the annual fees on many rewards cards are higher than that. Only the big spenders get any value out of the rewards and then, only if they pay their full balance each month.''

Canstar classifies big spenders as people who outlay $60,000 or more each year. For those consumers, reward packages costing hundreds of dollars a year are worthwhile.

BALANCE-TRANSFER TRAPS

The consumer group Choice says a low-interest balance transfer can be a good way to get credit card debt under control but it warns that ''for the unsuspecting or undisciplined consumer, balance-transfer deals can be a disaster''.

It says consumers need to recognise that the low rate applies only to the balance they have transferred from their old card. In most cases, new purchases will be charged at the standard rate, which is usually, but not always, much higher than the balance-transfer rate.

Choice says consumers are often attracted by a low transfer rate, which is a short-term benefit, and are then saddled with a card that has a high rate, high fees, or features they don't need.

The choice of a zero rate, a longer term on the balance-transfer rate or a low revert rate will depend on how quickly you think you can make a significant reduction in your card debt.

NO-FRILLS CARDS BEST

Canstar classifies credit card users according to the amount they spend and whether they pay their balance each month.

There are the big spenders, the everyday spenders and the occasional spenders. Then there are the habituals - card users who struggle to pay off their cards and carry a balance from month to month.

Canstar's most recent review of credit cards includes a list of ''outstanding value'' cards for habituals. These cards tend to be offered by small financial institutions and generally have relatively low ongoing interest rates and no rewards programs.

Habituals who want a good deal need to look beyond their big local bank.

Card issuers on the list include bankmecu, Bankwest, Community First Credit Union, Greater Building Society, Heritage Bank, Horizon Credit Union and Intech Credit Union.

Virgin Money launched a new low-rate card, offering a rate of 12.9 per cent and a balance-transfer rate of 2.9 per cent for nine months. The annual fee is $59.

Rates for no-frills cards range between 10.99 per cent and 12.95 per cent. Some have no annual fee and for the rest, the range is between $30 and $99.

Key facts
Starting in July, credit card issuers will have to give applicants a key fact sheet that sets out the card features in a standard format. The idea is to make it easy for consumers to make comparisons.

It will include the minimum credit limit, the minimum monthly repayment, the interest rate on purchases and cash advances, any promotional rate and the period for which it applies, the balance transfer rate and any interest-free periods on purchases.

Details of the annual fee, any late-payment fee and any circumstances in which other fees would be charged will also be included. It will also give details of comparison websites.

Source:    www,snh.com.au