There is a lot of media hype now over the amount you need in super to retire – and I am a bit over it. And talk of increasing the retirement age to 70 is a little depressing. Currently, most people can access their super when they are 60, and age pension around 66 increasing to 67.
The reality is that superannuation or retirement savings is only one aspect to your financial independence, other things such as owing your own home, your human capital and other assets outside of super can all work together to create a lifestyle for you that doesn’t have you turning up at a desk at 8.30am Monday through Friday.
Take your family home for example with the explosion of AirBnB you can rent out some or all of your home for a period of time and earn some extra dollars, and some clever folks are even earning money from helping others with their AirBnB’s building side hustles, property managing several properties for others.
Go a step further, and that caravan that is sitting down the side of your house, can also be hired out. There are websites such as www.camptoo.com and www.camplify.com.au where you can list your caravan, motorhome, campervan etc for hire We recently picked up a motorhome from a lovely man in North Fitzroy, and cruised around for a week, in his fully decked out motorhome. I asked him how he found hiring it out – his answer “brilliant – we were going to put the van in storage for six months but discovered camptoo and instead have been able to generate some decent money”. Brian’s motorhome rents for approximately 20-30% less than your mainstream van hire companies – it’s a win win!
So, you have human capital which is your ability to work and earn an income, and you have financial capital which is what you have accumulated by using your number one asset, your ability to earn an income,
The goal has always been to reach the point where our financial capital covers all of our needs, and we don’t need the human capital anymore. That’s what we call financial independence, “I don’t need to work to get paid anymore.” But it’s still your choice about whether or not to harvest your human capital and turn it into additional dollars—and you can.
You can continue to “work in retirement.” That’s why I’m a huge fan the label of “financial independence” and not “retirement” because in reality what often happens is most people when they first retire, have some time off and then they realise they are kind of bored and they go back into some sort of work – and now work looks completely different for them. It may only be on a part time basis or in totally different role to what they were doing previously. I have a client who is a retired engineer who is having a ball working in a wine bar, mixing his two loves wine and chatting, no, he is not earning the same dollars but it’s an extra $20,000 per year he doesn’t need to draw from his super, and he is super happy!
When you consider that you can earn around $20,000 without paying any tax, and if you are over 60 any income you are drawing from super is tax free, with a little bit of planning now, you may be closer to financial independence that you think! So I encourage you to think outside the square and look at things a little differently 😊
After spending the past 30 years of my life working within the financial and accounting industry, starting and running my own business and raising two beautiful children, I have learnt along the way the power of your mind. I’m not just talking about the power of our knowledge and learning, I’m talking about the power that lies within your thoughts and positive thinking.
I often get asked the question, “ How do you remain so happy?” and “How do you stay so motivated?” The answer is, I choose to be. I choose to focus on the things that I love and bring me the most joy and happiness. Achieving a positive and clear mind frame drives us to want to achieve our goals and not to give up when we don’t.
Okay think about this, look at the most successful people in your life. Most of the time, these people are the happiest, most thriving and motivated people we know. They’re not happy and positive because they are successful; they are successful because of their positivity and motivation. The most successful people you know haven’t spent their lives and careers focusing on the negative parts of themselves and their skills and their jobs but have shifted their minds to focus on the good skills and opportunities they have, utilizing and making the most of them!
There’s extensive research that has been done that looks into the correlation between living healthier longer lives and being positive and optimistic. In 2010, researchers analysed the results of 83 studies measuring the impact optimism has on physical health. Optimists had better results when it came to overall longevity, survival from disease and pain tolerance. Additionally, a Yale study indicates a positive attitude helps keep your heart pumping an additional 7.6 years on average.
This is not to say that if you have a positive and healthy mind that success will just come to you easily and fall right in front of you but the likelihood of you succeeding is much higher. If you approach all things in life whether that be business, relationships and careers with a optimistic mind frame success will eventually follow.
Success is like a long distance running race. If you persist, keep motivated and positive and believe in yourself good things will come.
Sure, having “bad” days are a given. That’s life. We need those days to remind us of the good ones. The trick is not letting a “bad” day turn into a “bad” week or a “bad” month. It’s recognizing that things didn’t exactly go to plan that one-day but tomorrow will be better.
I have put together five easy tips to maintain and create a positive mind frame
1) Focus on the good Focusing on the good in every situation and aspect of our lives will create a positive mind frame, which will eventually lead to applying positivity everywhere. Reminding ourselves of the positive things in our lives instead of the negative will highlight how many great things are around us. Try making an effort to write down or event list off some of the good things and blessings in your life every single day.
2) Practice gratitude
Practicing gratitude is so important in maintaining positive. It reminds us of what we have and grounds us to be present. Try to mindfully appreciate everything you have, even the little challenges that can be annoying. Normally these “challenges” and hard times are there for a reason, which you will eventually realize!
3) Stay grounded and motivated Staying grounded and motivated is so important for remaining positive! We tend to lose these aspects when we’re overworking or overwhelmed by certain things. Try starting your day with five minutes completely devoted to yourself. Whatever you would like to do! Go for a swim; enjoy a cup of tea/coffee or anything that you enjoy. Doing this will start your day right so you can approach things from a positive perspective.
4) Give more Give more! The more you give, the more you receive. Not only does giving more and being generous to people make US feel good; it makes them feel good too! This could be something as simple as buying a friend a coffee or volunteering some of your time to a cause in need. The power of giving is pretty powerful stuff. Give it a try!
5) Invest in yourself
Lastly, invest in yourself! At the end of the day you are everything you’ve got. Invest in wanting to achieve a positive mind frame to be successful for you, no body else. Do things that you love and take time out for yourself. The better you feel, the better quality work you will do and the more motivated and positive you will be!
I hope you enjoy this blog post, stay positive!
Michele Purvis is an advisor with over 30 years experience working in the accounting and financial services industry helping clients to define and create their wealth.