Am I already at the peak of fulfillment?

My fiancé has a pet bird. This was almost a deal breaker on our second date because I thought keeping a bird locked in a cage was the height of animal cruelty. But I quickly learnt that Gabe sees his cage as his home. We always leave the door open, but he prefers to ‘stay in’ and play with his most beloved toy: a bell.

Knowing his love for bells, one weekend as I was preparing to leave (birds are great pets because they’re pretty self sufficient) I had the brilliant idea of putting both of his beloved bells in his cage at the same time. The idea being: twice the things - twice the fun. But quickly I realised this wouldn’t be the case. This is because Gabe can only play with one bell at a time and so the second bell would not bring him any greater happiness. Actually, the second bell, while perhaps a diversion from the first, would most likely just be in his way, taking up precious space in his cage. It was a revelation: twice the things not necessarily meaning twice the fun.

The reason it felt like an epiphany was because I’ve been reading about this concept in the finance book; Your Money or Your Life where they called it the ‘fulfilment curve’. They demonstrate this theory with a simple graph; an upside down U showing pleasure increasing with the attainment of goods and services (at a cost) and then the curve petering out after more and more money is spent on said goods and services. I had understood the concept, but I guess I wasn’t a believer. I couldn’t help thinking that another thing or experience would be great; an overseas trip, a new trinket for my house, another pair of shoes. I felt my fulfilment curve would be a never ending arrow to the sky if I could spend, spend, spend.

So seeing that Gabe had reached that elusive point of maximum fulfilment, the coveted ‘enough point’ in his life, I had to wonder why? How? And I found that the answer was to do with his lifestyle – i.e he lives in a cage. In his cage, no bell is boring, one bell is fun and two bells doesn’t leave much space to live. Could the same simple formula apply to my lifestyle? Doing the 100 Thing Challenge, where I reduced my clutter by limiting myself to 100 personal possessions, I discovered a small taste of what ‘enough fulfilment’ means. I discovered I had all these great hobbies collected over decades: painting, dancing, swimming, travelling, gardening, to name a few. But one of my lifestyle constraints: time, limited my enjoyment of all of these. Looking at my level of fulfilment I realised it was better to put my resources into pursuing only 1 or 2.

So while I originally thought that I’d never be the kind of person to find the peak of my fulfilment curve, my budgie showed me that all I need to do is look at fulfilment in context with my life. For me there is no point dreaming about travelling for a year as I continue to build my house ‘to settle down’. No point continuing my painting when I don’t really enjoy it. I think there is huge benefit to be gained from understanding and accepting the limitations in our lives, seeing the cage that we have and then making the most out of it. So while there is a big wide world out there with lots to buy and do, in my everyday lifestyle I’m really very happy with what I have. Perhaps I had reached my point of ‘enough’, of ultimate fulfilment, without noticing. Perhaps I have my bell, and now I also don’t need two.

Is My Superannuation Enough?

Retirement is always on the horizon. As citizens we hope that our government pensions will provide enough money to allow us a comfortable retirement. Unfortunately that is not the case for majority of Australian Citizens. Life expectancy has gradually increased over the last century. This is a double-edged sword. While women living to 82 and men to 77 will allow more time to enjoy our lives, we must keep in mind that it will mean that our superannuation pension must stretch further than ever before.  

How Money Much Do You Need For Retirement?

Bills don’t stop rolling in after you retire. Retirees will need to pay for rent, utilities, medical bills, auto insurance, and food. And that’s before adding in the entertainment that we hope that we can engage in after we retire. Current retirees who are fine with living a modest lifestyle will need:

·         $21,930 a year if they live alone

·         $31,675 if they live with a spouse.

Current retirees who are fine with living a modest lifestyle will need:

·         $40,407 of they live alone

·         $55,249 a year if they live with a spouse.

How Much Money Will Be Available to Us in Superannuation?

The amount of superannuation that seniors will receive is not a set amount because 9% of every paycheck that they have received over their lifetime been placed in their superannuation account. According to a study on retirement income conducted by Challenger, retirees will require over $600,000 if they want a comfortable retirement. Unfortunately the amount of superannuation that a lower or middle-class man or woman can expect is far lower. Current retirees have an average superannuation of:

·         $275,800 if they are men.

·         $218,600 if they are female.

This number will of course fluctuate based on when you began working, how much you earned throughout your life, and if you took any time off work. But the fact remains that the majority of lower and middle class Australians will have used their superannuation fund within 10 to 15 years.

The Answer to the Superannuation Problem?

I’m not sure what we can do as a nation to solve the retirement fund crisis that many of our seniors are currently experiencing. But we can make some personal changes to our own lives to ensure that our retirement funds will stretch a little further. You can do this by adding to your superannuation fund or creating a personal retirement savings account.

Before beginning to add money to tour superannuation or savings account, you should determine how much you will need to add to your retirement fund. You can do this by checking out this superannuation calculator here. To use the calculator you will need to know how much you currently have in superannuation and your yearly income. Once you have entered that data, the calculator will tell you how much you will have at retirement, when those funds will run out, and how much you will need to save to have the lifestyle you desire. All that is left is to work out how much you can afford to put towards your retirement now.

If you want a worry free and work free retirement, you need to carefully plan out your finances. Don’t expect your superannuation funds to provide all the support you desire. You may need to contribute money to your retirement fund. You can increase the amount you can add to your retirement fund with these money saving tips!

General Advice Warning

This information is of a general nature only and is not intended as financial planning, superannuation or investment advice. You must make your own assessment as to the suitability of products and/or strategies in respect of your own particular circumstances, objectives and needs. Before you make any investment decision, ensure that you have read the relevant product disclosure documents. We always recommend that you seek your own professional financial planning and superannuation advice by contacting us on 02 6583 7588 or enquiries@directadvisers.com.au.

Fred: I got off the treadmill

When I was younger, I hopped from one job to the next, believing that I would find that one perfect position, my dream job. In my dream job, I would be proud of my work, do good for the world, be respected as a high-status professional, and be paid handsomely. I often moved from one position to the next within a year or two, jumping whenever the grass appeared greener elsewhere. This constant dissatisfaction took its toll on me, leaving me always wanting more, always changing colleagues, and eventually becoming lonely and disconnected in my work. Because of this disconnect, my results weren't what they could have been.

I was working full-time at a job I enjoyed but didn't love. I was commuting about 1.5 hours per day. I never had enough time for all the outdoor activities I cherished. I wanted to be outside more, instead of spending the best part of each day in a cubicle. I spent a lot of money on new things that brought momentary happiness, only to end up with a cluttered garage. I had a wonderful dog, but not enough time to spend with her. I was always tired, drinking soft drinks and munching sugary snacks at work to stay awake. I was nearly 100 pounds overweight.

Then I discovered the Financial Integrity Program. Within five years of concerted effort, I crossed over to financial independence. Now I use my time for writing, volunteering, sailing and ultra marathon trail running. ). If I had begun following this nine-step program earlier in life, I would have reached financial independence even sooner! Clearly, the time to begin is now.

Financial independence can give us the ability to choose to do what we enjoy, rather than continuing on the paycheck-to-paycheck treadmill. Income opportunities have a way of falling into our laps when we're doing what we love. Repeatedly as I've helped other people with fun projects, I've been offered paid work. If I run short of funds, I'll accept!