It’s a question we ask one another generally speaking. But since Enrichmentality is a blog about enriching your future, I thought I should reflect on our journey over the past 1.5 years. And that means a spending review.
Tax time is a special time of year in that it forces us (at least those of us who do our own tax returns!) to take a look at our finances. We submitted our own returns last month, and have just received the refunds. But no matter the outcome – tax refund or tax bill – tax time can be full of pressure – and communication problems.
In the last post, we looked at the buzzword ‘negative gearing‘ (where the interest you are paying on the loan is more than the income), and why positive gearing (where your income is more than the interest) can be more attractive. But for anyone looking to retire early, or have the financial freedom to quit their job, pursue creativity, or raise a family, the concept of cash flow is perhaps even more important to know about than gearing. And it’s something we all need to know about – not just investors.
Last week we looked at the two ways you can earn money through investing: income and growth.
But how do you know which style is right for you?
It’s important that your investment strategy is aligned with your purpose. We all have different goals, and this means that a one-size-fits-all approach to investing simply won’t work for you.
According to Investopedia, investing is
Note that it says “the expectation of additional income or profit”. It’s far from guaranteed. But just how can you make money from investing?
Over the weekend, having recently returned from our overseas odyssey, I was thrilled to attend the opening of Hope: From Robe to Riches. The brainchild of my dear friend, and one of Enrichmentality’s first believers, Dr. Joanne Sullivan, the exhibition is currently on display at Gum San (金山) in Ararat. And it’s an exhibition that got me thinking about the concept of investment.
As Australians vote on marriage equality, and the phrase ‘diamonds are forever’ marks its 60th anniversary, I thought it appropriate to ask how much you should spend on an engagement ring.
One usual answer is “three months’ salary”. Sometimes you may hear “as much as you can afford”. There are even (extremely depressing) calculators to “help” hopeful fiances to calculate an appropriate figure.
If you’re a regular reader of this blog, however, you’ll realise “how much should you spend on an engagement ring?” is of course a trick question.
But it is one that is interesting for us all -of any gender, sex, sexual identity, or marital status – to consider.
I’ve been doing a lot of reading – and thinking – about retirement for a new project. In the last few posts, we’ve looked at net worth (including your home), and retiring. But what is the difference between ‘traditional‘ and ‘early‘ retirement? In this post – the 100th post on Enrichmentality! – we’ll tackle this question.
When it comes to talking about retirement, it surprises me how often I hear people say things such as ‘the government won’t let me retire until I’m 65’. Or, ‘by the time we’re ready to retire, they’ll have pushed it back to 70’.
But there’s no reason to assume that your retirement age will be the same as your superannuation preservation age or your pension eligibility age.
The typical mortgage in Australia comes with a 25 or 30 year term. But that doesn’t mean you should aim to pay off your mortgage over a three decade period.
The end date on your mortgage document is like a speed limit.
It’s not something to aspire to. It’s something you should try to stay well under.